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Introducing

Organizational

Behavior

■ Bringing OB to LIFE BUILDING SKILLS TO SUCCEED IN A COLLABORATION ECONOMY

■ Worth Considering . . . or Best Avoided? TROUBLE BALANCING WORK AND HOME? HOME WORKING MAY BE THE ANSWER

■ Checking Ethics in OB IS MANAGEMENT A PROFESSION?

■ Finding the Leader in You MICHELLE GREENFIELD LEADS WITH A SUSTAINABILITY VISION

■ OB in Popular Culture MORAL MANAGEMENT AND JOHN Q

■ Research Insight WOMEN MIGHT MAKE BETTER LEADERS

The Key Point

■ What Is

Organizational

Behavior, and Why

Is It Important?

■ How Do We

Learn about

Organizational

Behavior?

■ What Is the Context

of Organizational

Behavior?

■ What Are the

Challenges of

Management in

Organizations?

■ What Are the

Challenges of

Leadership in

Organizations?

Chapter at a Glance

What’s Inside

People in all of their rich diversity are the basic building blocks of organizations.

Everyone deserves to be respected at work and to be satisfi ed with their jobs

and accomplishments. Th e fi eld of organizational behavior off ers many insights

into managing individuals and teams for high performance in today’s complex

workplace. ■

4 CHAPTER 1 ■ Introducing Organizational Behavior

Introducing Organizational Behavior

L E A R N I N G

R O A D M A P

WHAT IS ORGANIZATIONAL BEHAVIOR?

IMPORTANCE OF ORGANIZATIONAL BEHAVIOR

What Is Organizational Behavior?

If you pause to consider the vast eff ects of our recent economic and social turmoil,

there shouldn’t be any doubt that organizations and their members face huge chal-

lenges. Talk to friends and follow the news headlines. Preferred jobs are still hard to

come by for new college graduates, and unemployment remains high, especially for

candidates without strong career skills. Th ose with jobs often struggle to support a

desired lifestyle while balancing confl icting demands of work and family responsibili-

ties. Like it or not, this is your world. It’s the one you’ll have to master for both career

and personal success.

In this challenging era, the body of knowledge we call organizational behavior off ers

many insights of great value. Organizational behavior (OB) is the study of human

behavior in organizations. It is an academic discipline devoted to understanding individ-

uals, teams, interpersonal processes, and organizational dynamics. Learning about OB

can help you build solid job skills and expand your potential for career success in the

dynamic, shifting, and complex workplaces of today . . . and tomorrow.

Importance of Organizational Behavior

Th ink OB and great jobs! Th ink OB and career success! Th ink OB and overall life satisfac-

tion! Don’t think—OB and another course completed for my degree!

Th e real importance of OB boils down to how it helps you develop the skills needed for

a successful career in our ever-changing world. Th is is a time in which the normal com-

plexities of human behavior in organizations are ramped up by an environment of con-

stant change and the growing infl uence of social technology. Take the OB relevance test.

How prepared are you to excel in jobs with fashion-forward titles like these? 1

Relationship champion • Logistics ringmaster • Innovation game changer

• Collaboration pioneer • Market trends virtuoso

If you can describe in your own words what these job holders would be doing, you’re

already moving in the right direction. You’re starting to get a real sense of what it takes to

succeed in this emerging new workplace and why it pays to learn what OB can teach us

about human behavior in organizations.

Behind each of the prior job titles is a common foundation that comes to life as

“networking,” “connecting,” “ideating,” “collaborating,” “ helping,” “ linking,” “support-

ing,” “seeking,” and “performing.” These and other similar behaviors drive what can be

called a smart workforce, one in which you must be prepared to excel. 2 Smart work-

forces are communities of action whose members tackle constantly shifting projects

while sharing knowledge and skills to solve real and often complex problems. Smart

workforces are built through connections activated by relational skills and social

technologies and used to forge a powerful collective brain that keeps growing and

adapting over time.

Th is text helps you bridge the gap between OB as a body of knowledge and OB as a

pathway to career and life success. Our book is about people, everyday people like you and

like us, who work and pursue careers in today’s demanding settings. It’s about people who

seek fulfi llment in their lives and jobs in a variety of ways and in uncertain times. It’s about

Organizational behavior is

the study of human behavior

in organizations.

Members of a smart

workforce work in shifting

communities of action in

which knowledge and skills

are shared to solve real and

complex problems.

5Introducing Organizational Behavior

the challenges of leadership, ethics, globalization, technology, diversity, work–life balance,

and many social issues. And it is about how our complex ever-changing environment

requires people and organizations to continuously adapt and improve in the quest for

promising futures.

Th ere is no doubt that success with our life and career goals requires ongoing learning

and continuous attention to new trends, practices, and opportunities. Th e following

changes in what people expect and value in terms of human behavior in organizations

are of special interest in the study of OB. 3

■ Importance of connections and networks. Work is increasingly being done through

personal connections and networks. In this environment, building eff ective rela-

tionships face to face and online is a must-have career skill.

■ Commitment to ethical behavior. Highly publicized scandals involving unethical and

illegal practices prompt concerns for ethical behavior in the workplace; growing

intolerance for breaches of public faith by organizations and those who run them

are drawing new attention to business ethics.

BRINGING OB

TO LIFE Building Skills to Succeed in a Collaboration Economy Every time you log onto Facebook or LinkedIn, join a

multiplayer online game, or check Yelp for advice

on a good restaurant, you are part of a fast-moving

technology-driven, and very social world. But, are you

taking the skills honed in these everyday experiences

and developing them for career success in a new

“collaboration economy?” It’s a setting where work gets

done, customers get served, and ideas and information

get shared 24/7.

Dean Sally Blount of Northwestern’s Kellogg School

says that success is earned in our collaboration economy

by “people and companies who connect and collaborate

more eff ectively.” Jacob Morgan, author of Th e

Collaborative Organization (McGraw-Hill, 2012), says that

there is a great opportunity for “collaboration leaders”

who value and respect others as the most important

assets of organizations.

Collaboration leaders aren’t fi gureheads with formal

titles. Th ey are everyday leaders who are exceptionally

good at teamwork, information sharing, giving and

receiving feedback, providing peer support, and

recognizing the contributions of others. In other words,

collaboration leaders help make the people-to-people

connections that give life to collaborative organizations.

Th ey bring social technology together with face-to-face

interactions to harness the powers of knowledge,

creativity, and teamwork.

Th e collaboration economy presents a pretty stiff

career test. It calls for “hard” technology skills and real

job expertise to be combined with “soft” people skills

and a genuine personal presence. But that’s the great

opportunity of your course in organizational

behavior—a chance to learn more about yourself and

how people work together in organizations. Th e

question is this: Are you ready to jump in and let OB

help build your skills for success in a collaboration

economy?

“Collaboration leaders help make the people-to-people connections that give life to

collaborative organizations.”

� Trends with human behavior in organizations

6 CHAPTER 1 ■ Introducing Organizational Behavior

■ Broader views of leadership. New pressures and demands mean organizations

can no longer rely on just managers for leadership. Leadership is valued from all

members, found at all levels, and fl ows in all directions—not just top-down.

■ Emphasis on human capital and teamwork. Success is earned through knowledge,

experience, and commitments to people as valuable human assets; work is increas-

ingly team based with a focus on peer contributions.

■ Demise of command-and-control. Traditional hierarchical structures and practices

are being replaced by shared leadership, fl exible structures, and participatory work

settings that engage human and social capital.

■ Infl uence of information technology. As new technologies—including social media—

penetrate the workplace, implications for work arrangements, organizational

systems and processes, and individual behavior are continuously evolving.

■ Respect for new workforce expectations. Th e new generation is less tolerant of

hierarchy, more high tech, and less concerned about status. Balance of work and

nonwork responsibilities is a top-priority value.

■ Changing concept of careers. New economy jobs require special skill sets and a

continuous development. More people now work as independent contractors and

freelancers who shift among employers rather than hold full-time jobs.

■ Concern for sustainability. Issues of sustainability are top priorities. Decision making

and goal setting increasingly give attention to the environment, climate justice, and

preservation of resources for future generations.

Organizational Behavior as a Science

L E A R N I N G

R O A D M A P

SCIENTIFIC FOUNDATIONS OF ORGANIZATIONAL BEHAVIOR

HOW WE LEARN ABOUT ORGANIZATIONAL BEHAVIOR

How do we fi nd out what a new generation of graduates really wants and needs from work

and in careers? How do we learn how to integrate multigenerational workforces around

common goals and high performance expectations? How do we gain solid insights into

how these and other important issues of human behavior play out in day-to-day

organizational practice? Th e answer is found in one word: science.

Scientifi c Foundations of Organizational Behavior

More than a century ago, consultants and scholars were already giving attention to

the systematic study of management and organizational practices. Although the

early focus was on physical working conditions, principles of administration, and

industrial engineering, interest soon broadened to include the human factor. This

led to research dealing with individual attitudes, group dynamics, and the relation-

ships between managers and workers. Organizational behavior then emerged as a

scholarly discipline devoted to scientific understanding of individuals and groups in

organizations, and of the performance implications of organizational processes,

systems, and structures. 4

Interdisciplinary Body of Knowledge Organizational behavior is an inter- disciplinary body of knowledge with strong ties to the behavioral sciences—psychology,

sociology, and anthropology—as well as to allied social sciences such as economics and

7Organizational Behavior as a Science

political science. What makes OB unique is its desire to integrate the diverse insights of

these other disciplines and apply them to real-world organizational problems and

opportunities. Th e ultimate goal of OB is to improve the performance of people, groups,

and organizations, and to improve the quality of work life overall.

Use of Scientifi c Methods Th e fi eld of organizational behavior uses scientifi c methods to develop and empirically test generalizations about behavior in organizations.

OB scholars often propose and test models—simplifi ed views of reality that attempt to

identify major factors and forces underlying real-world phenomena. Th ese models link

independent variables—presumed causes—with dependent variables—outcomes of

practical value and interest. For example, the following model describes one of the fi nd-

ings of OB research: Job satisfaction (independent variable) infl uences, absenteeism

(dependent variable). Th e “�” and “�” signs indicate that as job satisfaction increases absenteeism is expected to go down, and as job satisfaction decreases, absenteeism

should go up.

AbsenteeismJob Satisfaction � �

��

As you look at the above model, you might ask what dependent variables other than

absenteeism are also important to study in OB—perhaps things like task performance,

ethical behavior, work stress, incivility, team cohesion, and leadership eff ectiveness.

Th ink also about job satisfaction as a dependent variable in its own right. What indepen-

dent variables do you believe might explain whether satisfaction will be high or low for

someone doing a service job, such as an airline fl ight attendant, or a managerial job, such

as a school principal?

Figure 1.1 describes methods commonly used by OB researchers to study models

and the relationships among variables. Th ese research methods are based on scientifi c

thinking. Th is means (1) the process of data collection is controlled and systematic,

(2) proposed explanations are carefully tested, and (3) only explanations that can be

rigorously verifi ed are accepted.

Models are simplifi ed views

of reality that attempt to

explain real-world

phenomena.

Independent variables are

presumed causes that

infl uence dependent

variables.

Dependent variables are

outcomes of practical value

and interest that are

infl uenced by independent

variables.

FIGURE 1.1 Common scientifi c research methods in organizational behavior.

Sources of research insight in OB

Field studies

in real-life organizational settings

Laboratory studies

in simulated and controlled settings

Meta analyses

using statistics to pool results of different empirical studies

Case studies

looking in depth at single situations

Survey studies

using questionnai and interviews in sample populations

res

8 CHAPTER 1 ■ Introducing Organizational Behavior

Focus on Application Th e science of organizational behavior focuses on applica- tions that can make a real diff erence in how organizations and people in them perform.

Some examples of the many practical research questions addressed by the discipline of

OB and reviewed in this book are:

What causes unethical and socially irresponsible behavior by people in organiza-

tions? • How should rewards such as pay raises be allocated? • How can jobs

be designed for both job satisfaction and high performance? • What are the ingre-

dients of successful teamwork? • How can a manager deal with resistance to

change? • Should leaders make decisions by individual, consultative, or group

methods? • How can win–win outcomes be achieved in negotiations?

Contingency Thinking Rather than assuming that there is one best or universal answer to questions such as those just posed, OB recognizes that behavior and practices

must be tailored to fi t the exact nature of each situation—this is called contingency

thinking. In fact, one of the most accepted conclusions of scientifi c research to date is

that there is no single best way to handle people and the situations that develop as they

work together in organizations.

Stated a bit differently, contingency thinking recognizes that cookie-cutter solu-

tions cannot be universally applied to solve organizational problems. Responses

must be crafted to best fit the circumstances and people involved. As you might

expect, this is where solid scientific findings in organizational behavior become very

helpful. Many examples are provided in the “Research Insight” feature found in each

chapter.

Quest for Evidence An essential responsibility of any science is to create and test models that off er evidence-based foundations for decision making and action. A

book by scholars Jeff rey Pfeff er and Robert Sutton defi nes evidence-based manage-

ment as making decisions on “hard facts”—that is, about what really works, rather

than on “dangerous half-truths”—what sounds good but lacks empirical substantia-

tion. 5 One of the ways evidence-based thinking manifests itself in OB is through a

Contingency thinking seeks

ways to meet the needs of

diff erent management

situations.

Evidence-based

management uses hard facts

and empirical evidence to

make decisions.

Something to Read —The Shift: The Future of Work Is Already Here As professor of management at the London Business

School, Lynda Gratton worries that students fail to

understand the nature, pace, and complexity of forces

shaping the future of work. Her book, Th e Shift

(HarperBusiness UK, 2011) describes fi ve key forces:

technology (helpful but time consuming), globaliza-

tion (workers from everywhere compete for the same

jobs), demography (more people, less space), society

(traditional communities under threat), and energy

resources (too few and shrinking). So “What’s the

worker to do?” she asks. Her answer is that we can

default and accept a

bleak future, or craft for

ourselves a bright one.

To work on the bright

side we have to shift

from “shallow general-

ist to serial master” of

things; from “isolated

competitor to innova-

tive connector” in vast

networks; and from

“voracious consumer to impassioned producer” more

focused on creating things than buying them.

Eamonn McCabe/Camera Press/ Redux Pictures

9Organizational Behavior as a Science

contingency approach in which researchers identify how diff erent situations can best

be understood and handled.

Cross-Cultural Awareness In a time of complex globalization, it’s important for everyone, from managers and employees to government leaders, to understand how OB

theories and concepts apply in diff erent countries. 6 Although it is relatively easy to

conclude that what works in one culture may not work as well in another, it is far more

diffi cult to describe how specifi c cultural diff erences can aff ect such things as ethical

behavior, motivation, job satisfaction, leadership style, and negotiating tendencies. OB is

now rich with empirically based insights into cross-cultural issues.

Learning about Organizational Behavior

Today’s knowledge-based world and smart workforces place a great premium on learn-

ing. Only the learners, so to speak, will be able to keep the pace and succeed in a con-

nected, high-tech, global, and constantly changing environment. But just what are we

talking about here?

Th ink of learning as an enduring change of behavior that results from experience.

Th ink also of lifelong learning as a process of learning continuously from day-to-day

experiences. When it comes to learning about OB, this book and your course are starting

points and launch platforms to make your experiences more meaningful. Th ere also is a

rich and ever-expanding pool of learning experiences available in the work events and

Learning is an enduring

change in behavior that

results from experience.

Lifelong learning is

continuous learning from

everyday experiences.

Research Insight

No one doubts there are good and bad leaders of both genders. But research by Alice Eagley and her colleagues at Northwestern University suggests that women are often perceived as more likely than men to use leadership styles that result in high performance by followers.

In a meta-analysis that statistically compared the re- sults of forty-fi ve research studies dealing with male and female leadership styles, Eagley and her team concluded that women are frequently described as leading by inspir- ing, exciting, mentoring, and stimulating creativity. They point out that these behaviors have “transformational” qualities that build stronger organizations through innova- tion and teamwork. Women also score higher on rewarding positive performance, while men score higher in punishing and correcting mistakes.

Eagley and her colleagues explain the fi ndings in part by the fact that followers are more accepting of a transfor- mational style when the leader is female, and that the style comes more naturally to women because of its emphasis on nurturing. They also suggest that because women may have to work harder than men to succeed,

Do the Research What do you think: Is this study on track? Conduct an interview study of people working for female and male managers. Ask this ques- tion: Do women lead differently from men? Organize the responses, and prepare an analysis that answers your research question. Although not scientifi c, your study could prove quite insightful.

Women Might Make Better Leaders

Source: Alice H. Eagley, Mary C. Johannesen-Smith, and Marloes I. van Engen, “Transformational, Transactional and Laissez-Faire Leadership: A Meta-Analysis of Women and Men,” Psychological Bulletin 24.4 (2003), pp. 569–591.

Possible Leadership Strengths of Women

• Transformational

• Good at mentoring

• Very inspiring

• Encourage creativity

• Show excitement about goals

• Reward positive performance

their leadership skills get tough tests and end up being better developed.

10 CHAPTER 1 ■ Introducing Organizational Behavior

activities, conversations with colleagues and friends, counseling and advice provided by

mentors, success models, training seminars and workshops, and other daily opportuni-

ties that consume your time. What is learned from all such experiences—now and in the

future—will in many ways be the key to your personal and career success. Th e “Bringing

OB to Life” feature helps you make these connections between OB and our everyday

experiences.

Figure 1.2 shows how the content and activities of the typical OB course fi t together in

an experiential learning cycle. 7 Th e learning sequence begins with initial experience and

subsequent refl ection. It grows as theory building takes place to try to explain what has

happened. Th eory is then tested in behavior. Textbooks, readings, class discussions, and

other course assignments and activities should help you practice the phases of the learn-

ing cycle.

Notice that Figure 1.2 assigns to you a substantial responsibility for learning. Along

with your instructor, our author team can off er examples, cases, and exercises to provide

you with initial experience. We can even stimulate your refl ection and theory building by

presenting concepts and discussing their research and practical implications. Sooner or

later, however, you must become an active participant in the process; you and only you

can do the work required to take full advantage of the learning cycle.

At the end of this book you’ll fi nd the rich and useful OB Skills Workbook. It provides a

variety of active learning opportunities that can help you better understand the practical

applications of OB concepts, models, and theories. Th e workbook contains cases for

analysis, team and experiential exercises, and a portfolio of self-assessments that includes

the popular Kouzes and Posner “Student Leadership Practices Inventory.”

Finally, don’t forget that opportunities to learn more about OB and yourself abound in

everyday living. Every team project, part-time work experience, student co-curricular

activity, or visit to the store is rich in learning potential. Even our leisure pastimes from

sports to social interactions to television, movies, and online games off er learning

insights—if we tune in. Th e “OB in Popular Culture” feature in each chapter is a reminder

to keep your learning dialed in all the time.

FIGURE 1.2 Experiential learning in an OB course.

Initial Experience

Experimentation

Theory Building

Reflection

• Personal thought • Class discussion • Informal discussion • Readings

• Theories in readings • Theories from lectures • Personal theories • Theories from other sources

• Trying new behaviors in work experiences class experiences everyday experiences

• Lectures

• Personal experiences • Classroom as an organization • In-class exercises, simulations • Group project assignments • Cases

• Written assignments

11Th e Context of Organizational Behavior

The Context of Organizational Behavior

L E A R N I N G

R O A D M A P

ORGANIZATIONS AND THE EXTERNAL ENVIRONMENT

THE INTERNAL ENVIRONMENT OF ORGANIZATIONS

DIVERSITY AND MULTICULTURALISM IN ORGANIZATIONS

Organizations and the External Environment

In order to understand the complex forces that infl uence human behavior in organiza-

tions, we need to begin with the nature of the “organization” itself. Simply stated, an

organization is a collection of people working together in a division of labor to achieve

a common purpose. Th is defi nition describes everything from clubs, voluntary

OB IN POPULAR CULTURE

Moral Management and John Q Moral managers try to act with ethical principles while immoral managers make decisions primarily on self- interest. To be sure, many decisions in organizations are quite complicated, and their ethical components may be hard to sort out.

The fi lm John Q depicts the story of a desperate father’s attempt to save his dying child. John Archibald (Denzel Washington) learns that his son, Mike, needs a heart transplant and he does not have suffi cient insurance coverage. He decides to take the heart surgeon hostage in the hospital’s emergency room. During a lull, the hos- tages and medical staff discuss how managed care insur- ance practices and hospital policies result in treatment decisions that are not always in the best interests of the patient. One hostage questions these practices in light of the medical profession’s Hippocratic Oath.

When Mike’s (Daniel Smith) condition worsens, John decides to commit suicide so that a heart will be avail- able. The heart surgeon initially balks for ethical reasons, then agrees to do the surgery. In the end, the sacrifi ce is

not necessary. The hospital gets word that a donor heart is available and on its way.

This movie is worth watching as a study in organiza- tional behavior. It illustrates that ethical lines can some- times be blurry. What’s “right” or “wrong” isn’t always clear or agreed upon. If an insurance company refuses to pay for preventive health screening, should the doctor order it? If someone can’t pay, should doctors and hospitals still provide medical care? Should a doctor adhere to hospital policies if they jeopardize the health of a patient?

Get to Know Yourself Better Take Assessment 5, Personal Values, in the OB Skills Workbook. The values we hold infl uence our ethical views. This is a good time to check yours by taking the assessment and asking yourself these questions: What did I learn about my values? Are they balanced? Do the results suggest anything about how I might approach situations with ethical components? Can the emphasis I place on certain values create pressures to act unethically?

New Line Cinema/Photofest

An organization is a

collection of people working

together to achieve a

common purpose.

12 CHAPTER 1 ■ Introducing Organizational Behavior

organizations, and religious bodies to entities such as small and large businesses,

schools, hospitals, and government agencies.

Figure 1.3 shows that organizations are dynamic open systems. Th ey obtain resource

inputs from the environment and transform them into fi nished goods or services that are

returned to the environment as product outputs. If everything works right, suppliers

value the organization and continue to provide needed resources, employees infuse work

activities with their energies and intellects, and customers and clients value the organi-

zation’s outputs enough to create a continuing demand for them.

Organizations are also complex adaptive systems. Because the environments they

interact with are constantly evolving and changing, organizations must adapt

to survive. And in a world that is increasingly complicated—socially, politically, and

economically—this process of adaptation is never ending. Organizations today are embed-

ded in environments whose components are so highly interconnected that changes in one

have consequences—sometimes unpredictable and even uncontroll able—for other parts.

A recent IBM Global Chief Executive Offi cer Study identifi es this rise of complexity as the

biggest challenge facing world leaders today. One CEO says: “Th e time available to capture,

interpret and act on information is getting shorter and shorter.” 8

It can be useful to describe and analyze the external environments of organizations in

terms of stakeholders—people, groups, and institutions that are aff ected by and thus

have an interest or stake in an organization’s performance. Key stakeholders from an OB

perspective include an organization’s customers, owners, employees, suppliers, regula-

tors, and local communities, as well as future generations.

Although an organization should ideally operate in ways that best serve all stakehold-

ers, the realities are that confl icting interests add to the complexity faced by decision

makers. Consider possibilities such as these. Customers want value pricing and high-

quality products, owners want profi ts and returns on investments. Employees want

secure jobs with good pay and benefi ts, suppliers want reliable contracts and on-time

payments. Regulators want compliance with laws, local communities want good organi-

zational citizenship and community support. Present generations want the benefi ts of

available natural resources, future generations want preserved and protected for long-

term sustainability.

Open systems transform

human and material resource

inputs into fi nished goods

and services.

Complex adaptive systems

interact and adapt with their

environments to survive.

Stakeholders are people and

groups with an interest or

stake in the performance of

the organization.

FIGURE 1.3 Organizations are open systems that create value while interacting with their environments.

Environment Supplies Resource Inputs

Information Materials Technology Facilities Money People

Organization Creates Value

Consumer Feedback

Transformation Process

Work Activity

Environment Consumes Product Outputs

Finished Goods and Services

13Th e Context of Organizational Behavior

The Internal Environment of Organizations

Th e internal environment of organizations also creates an important context for human

behavior. Th ink about it. Do you act diff erently when you are with your friends, at school,

or at work? In many cases the answer is probably “yes,” and the question then becomes

“Why?” Th e answer is that the context is diff erent. To understand behavior in any setting,

we must always ask how contextual factors infl uence it and in what ways. And, we must

also consider how we or other people are aff ecting the context. Th e question in this

respect is: How do our behaviors contribute to what is happening to us and around us,

and in both positive and negative ways?

One of the strongest contextual infl uences on human behavior is organizational

culture—the shared beliefs and values that infl uence the behavior of organizational

members. Former eBay CEO Meg Whitman calls it the “character” of the organization.

She says organization culture is “the set of values and principles by which you run a com-

pany” and becomes the “moral center” that helps every member understand what is right

and wrong in terms of personal behavior. 9

Organizational cultures infl uence the way we feel and act as members. In more

authoritarian and hierarchical cultures, people are hesitant to make decisions and take

action on their own. So, they withhold initiative and wait for approval. In competitive

cultures, people can be extremely aggressive in the quest for rewards. Still other cultures

are known for their emphasis on speed and agility in dealing with markets and environ-

ments, and in generating new ideas and innovations.

Th ere is also something called organizational climate—the shared perceptions

among members regarding what the organization is like in terms of management policies

and practices. You have probably noticed that relations among managers and employees

are relaxed and communication is free-fl owing in some climates. But in others, managers

act distant and communication is restricted.

Just how an organization’s culture and climate aff ect members depends on some-

thing called “fi t”—the match of internal environment and individual characteristics.

People who fi nd a good fi t tend to experience confi dence and satisfaction. Th ose with

a bad fi t may be prone to withdraw, experience stress, and even become angry and

aggressive due to dissatisfaction. Th e sidebar suggests possible fi t preferences for

today’s graduates.

Diversity and

Multiculturalism in

Organizations

People are an important aspect

of the internal environment of

any organization. Consultant R.

Roosevelt Th omas makes the

point that positive organizational

cultures tap the talents, ideas,

and creative potential of all

members. 10

Th is focuses attention

on workforce diversity, the

presence of individual diff erences

based on gender, race and ethnic-

ity, age, able- bodiedness, and sex-

ual orientation. 11

It also highlights

Organizational culture is a

shared set of beliefs and

values within an organization.

Organizational climate

represents shared perceptions

of members regarding what

the organization is like in

terms of management policies

and practices.

Workforce diversity

describes how people diff er on

attributes such as age, race,

ethnicity, gender, physical

ability, and sexual orientation.

Th ey’re called “Generation F,” short for the Facebook Generation. Management

scholar and consultant Gary Hamel says they are bringing new expectations to

the workplace.

• All ideas deserve a hearing.

• Contributions overrule credentials.

• Authority is earned, not given.

• Leaders are chosen, not assigned.

• Power comes from information sharing.

• Wisdom lies within the crowd.

• Teams are self organizing.

• Community grows from shared decision making.

• Recognition and joy count along with money as motivators.

• Rabble rousing is embraced, not discouraged.

Today’s Grads Take Values to Work

14 CHAPTER 1 ■ Introducing Organizational Behavior

multiculturalism as an attribute of organizations that emphasize pluralism, and genu-

ine respect for diversity and individual diff erences. 12

And in respect to Th omas’s point

again, organizations benefi t when the variety of ideas and perspectives of a diverse work-

force help them deal with complexity through innovation and adaptability.

Demographic trends driving workforce diversity in American society are well recog-

nized. Th ere are more women working than ever before. Th ey earn 60 percent of college

degrees and fi ll a bit more than half of managerial jobs. 13

Th e proportion of African Amer-

icans, Hispanics, and Asians in the population is now above 43 percent and increasing.

By the year 2060, six out of every 10 Americans will be a person of color, and close to

30 percent of the population overall will be Hispanic. 14

A key issue in any organization is inclusion—the degree to which the culture embraces

diversity and is open to anyone who can perform a job, regardless of their diversity attri-

butes. 15

In practice, however, valuing diversity must still be considered a work in progress.

Women still earn only about 75 cents per dollar earned by men; female CEOs earn 85

cents per dollar earned by males. At Fortune 500 companies women hold only 15 CEO

jobs and 6.2 percent of top-paying positions; women of color hold only 1.7 percent of

corporate offi cer positions and 1 percent of top-paying jobs. 16

Indeed, when Ursula Burns

was named CEO of Xerox, she became the fi rst African-American woman to head a

Fortune 500 fi rm. 17

Management and Organizational Behavior

L E A R N I N G

R O A D M A P

EFFECTIVE MANAGERS • THE MANAGEMENT PROCESS

ESSENTIAL MANAGERIAL SKILLS • ETHICAL MANAGEMENT

Eff ective Managers

A manager is someone whose job it is to directly support the work eff orts of others.

Being a manager is a unique challenge with responsibilities that link closely with the fi eld

of organizational behavior. At the heart of the matter, managers help other people get

important things done in timely, high-quality, and personally satisfying ways. And in the

workplaces of today, this is accomplished more through “helping” and “supporting” than

through traditional notions of “directing” and “controlling.” You’ll fi nd that the word

manager is increasingly being replaced in conversations by such terms as coordinator,

coach, or team leader.

Inclusion is the degree to

which an organization’s

culture respects and values

diversity.

A manager is a person who

supports the work eff orts of

other people.

Technology Makes Crowdsourcing Grades Easy, But Is It a Step Too Far? As colleges and universities face fi nancial and political

pressures to increase “productivity” in academic

programs, online course off erings are proliferating.

Instructors are experimenting with new ways to deliver

and grade online content.

One innovation is to take grading away from the

instructor and give it to the “crowd.” An assignment is

graded by averaging scores assigned by the online

students reading each other’s work.

It’s an attractive

option since productivity

goes up as instructors

can easily handle more

student enrollments. But

critics view it as an

unfortunate change in

the instructor’s role.

Professor Adam Falk of

Williams College asks if the educational outcome is the

“equivalent of a highly trained professor providing

thoughtful evaluation and detailed response?”

Multiculturalism refers to

pluralism and respect for

diversity in the workplace.

15Management and Organizational Behavior

FIGURE 1.4 The management process of planning, organizing, leading, and controlling.

Controlling

Measuring performance and ensuring results

Organizing

Creating structures and work systems

Team leaders

Managers

Planning

Choosing goals and means to achieve them

Leading

Inspiring people to work hard

Whatever the label used, someone who is an eff ective manager helps other people

achieve both high performance and job satisfaction. Th is defi nition focuses attention on

two key outcomes, or dependent variables, that are important in OB. Th e fi rst is task

performance. Th ink of this as the quality and quantity of the work produced or the

services provided by an individual, team or work unit, or organization as a whole. Th e

second is job satisfaction. It indicates how people feel about their work and the work

setting.

OB is quite clear that managers and team leaders should be held accountable for both

task performance and job satisfaction. Performance pretty much speaks for itself. Satis-

faction might give you some pause for thought. But just as a valuable machine should not

be allowed to break down for lack of proper maintenance, the talents and enthusiasm of

an organization’s workforce should never be lost or compromised for lack of proper care.

In this sense, taking care of job satisfaction today can be considered an investment in

tomorrow’s performance potential.

The Management Process

Anyone serving as a manager or team leader faces a challenging and complicated job.

Th e nature of managerial work is often described and taught through the four functions

shown in Figure 1.4—planning, organizing, leading, and controlling. Th ese functions

make up the management process and involve the following responsibilities.

Four functions of management

■ Planning. Defi ning goals, setting specifi c performance objectives, and identifying

the actions needed to achieve them.

■ Organizing. Creating work structures and systems, and arranging resources to

accomplish goals and objectives.

■ Leading. Instilling enthusiasm by communicating with others, motivating them to

work hard, and maintaining good interpersonal relations.

■ Controlling. Ensuring that things go well by monitoring performance and taking

corrective action as necessary.

In what has become a classic study, Henry Mintzberg described how managers enact the

management process in a busy, hectic, and challenging work context where they are

move among many tasks and face many interruptions. 18

He went on to point out that the

An eff ective manager helps

others achieve high levels of

both performance and

satisfaction.

Task performance is the

quantity and quality of work

produced.

Job satisfaction is a positive

feeling about one’s work and

work setting.

Th e management process

involves fulfi lling the four

responsibilities of planning,

organizing, leading, and

controlling.

Planning sets objectives and

identifi es the actions needed

to achieve them.

Organizing divides up tasks

and arranges resources to

accomplish them.

Leading creates enthusiasm

to work hard to accomplish

tasks successfully.

Controlling monitors

performance and takes any

needed corrective action.

16 CHAPTER 1 ■ Introducing Organizational Behavior

four management functions are fulfi lled more simultaneously than step-by-step. Th ey are

also accomplished while a manager acts out the set of ten managerial roles shown in

Figure 1.5.

A manager’s interpersonal roles involve working directly with other people, hosting

and attending offi cial ceremonies ( fi gurehead), creating enthusiasm and serving people’s

needs (leader), and maintaining contacts with important people and groups (liaison).

Th e informational roles involve managers exchanging information with other people,

seeking relevant information (monitor), sharing it with insiders (disseminator), and shar-

ing it with outsiders (spokesperson). A manager’s decisional roles involve making deci-

sions that aff ect other people, seeking problems to solve and opportunities to explore

(entrepreneur), helping to resolve confl icts (disturbance handler), allocating resources to

various uses (resource allocator), and negotiating with other parties (negotiator).

Essential Managerial Skills

We all need skills to do well in work and life. It’s no diff erent for managers and team

leaders—it takes skill to perform well. Formally stated, a skill is an ability to translate

knowledge into action that results in a desired performance. Robert Katz divides the

essential managerial skills into three categories: technical, human, and conceptual. 19

Technical Skills A technical skill is an ability to perform specialized tasks using knowledge or expertise gained from education or experience. A good example is skill in

using the latest communication and information technologies. In the high-tech workplaces

of today, technical profi ciency in database management, spreadsheet analysis, presenta-

tion software, video chats and conferencing, and social media is often a hiring prerequi-

site. It’s also helpful to think “skills” in respect to your college major. Recruiters today don’t

just want to know that you are a marketing or fi nance or MIS major with high grades. Th ey

want to know what skills in the major you are going to bring with you to the job.

Human Skills Central to all aspects of managerial work and team leadership are human skills, or the ability to work well with other people. Th ey show up as a spirit of

trust, enthusiasm, and genuine involvement in interpersonal relationships. A person

with good human skills will have a high degree of self-awareness and a capacity for

understanding or empathizing with the feelings of others. People with this skill are able

to interact well with others, engage in persuasive communications, and deal successfully

with disagreements and confl icts.

A manager or team leader’s human skills should contain a strong base of emotional

intelligence (EI). As defi ned by Daniel Goleman, EI is the ability to understand and

A skill is an ability to turn

knowledge into eff ective

action.

Technical skill is an ability to

perform specialized tasks.

Human skills comprise the

ability to work well with other

people.

Emotional intelligence is

the ability to manage oneself

and one’s relationships

eff ectively.

FIGURE 1.5 Mintzberg’s ten roles of effective managers.

Interpersonal Roles

How a manager interacts with other people

• Figurehead • Leader • Liaison How a manager uses information

in decision making

• Entrepreneur • Disturbance handler • Resource allocator • Negotiator

Decisional Roles

How a manager exchanges and processes information

• Monitor • Disseminator • Spokesperson

Informational Roles

17Management and Organizational Behavior

manage emotions well, both personally and in relationships with others. 20

Th e building

blocks for emotional intelligence are:

■ Self-awareness—ability to understand your own moods and emotions

■ Self-regulation—ability to think before acting and to control bad impulses

■ Motivation—ability to work hard and persevere

■ Empathy—ability to understand the emotions of others

■ Social skill—ability to gain rapport with others and build good relationships

Human skills in emotional intelligence and interpersonal relationships are essential to

success in each of the managerial activities and roles previously discussed. If you don’t

have the human skills you can’t connect with other people in a positive way. Managers and

team leaders need these skills to develop, maintain, and work well with a wide variety of

people, both inside and outside the organization. 21

Th ese include task networks of specifi c

job-related contacts, career networks of career guidance and opportunity resources, and

social networks of trustworthy friends and peers. 22

It can be said in this sense that strong

human skills are the pathways to obtain social capital in the form of relationships and

networks that can be called upon as needed to get work done through other people.

Conceptual Skills In addition to technical and human skills, managers should be able to view the organization or situation as a whole so that problems are always solved

Social capital is a capacity

to get things done due to

relationships with other

people.

WORTH CONSIDERING ...OR BEST AVOIDED?

A group of Stanford University researchers wondered if allowing work to be done at home was really worth it to employers. Seeking real facts upon which to base a conclu- sion, they set up a fi eld experiment using call center workers at a large Chinese travel agency.

Using odd or even birth dates, 255 volunteers were ran- domly assigned to “at home” or “in the offi ce” work shifts for 9 months. Their performance was monitored and an overall evaluation made at the end of the research period. Results showed that telecommuters were online for more minutes, took more calls per hour, and were less likely to quit. They also reported more positive moods and greater job satisfac- tion than did the offi ce workers. working at home also result- ed in fewer break times while on shift and fewer days of sick leave.

When productivity gains, reduced training and hiring costs, and offi ce rentals were tallied, the company calculated it saved $2,000 for every $3,000 spent on telecommuter salaries. And when the experiment was over and workers were given the chance to switch groups if they wished, those that ended up in the telecommuter group became even more productive.

Do the Analysis What’s your take? Do the fi ndings make sense in terms of your impressions and experience? Does this study suggest that everyone should be given the option to work from

Trouble Balancing Work and Home? Home Working May Be the Answer

home at least part of the time? What conditions might you set on the types of jobs and job holders that qualify for work from home? Is the evidence from this study good enough to make real-world decisions about the use of telecommuting?

� Core building blocks of emotional intelligence

18 CHAPTER 1 ■ Introducing Organizational Behavior

for the benefi t of everyone concerned. Th is capacity to think analytically and solve com-

plex and sometimes ambiguous problems is a conceptual skill. It involves the ability to

see and understand how systems work and how their parts are inter related, including

human dynamics. Conceptual skill is used to identify problems and opportunities, gather

and interpret relevant information, and make good problem-solving decisions.

One fi nal point about Katz’s model of essential managerial skills is worth thinking about.

He suggests that the relative importance of these skills varies across the diff erent levels of

management. Technical skills are considered more important at entry levels, where supervi-

sors and team leaders must deal with job-specifi c problems. Senior executives require more

conceptual skills as they face more complex problems and deal with strategic issues related to

organizational mission and fi tness. Human skills, which are strongly grounded in the founda-

tions of organizational behavior, are consistently important across all managerial levels.

Ethical Management

Having managerial and leadership skills is one thing; using them correctly to get things

done in organizations is quite another. And when it comes to ethics and morality, scholar

Archie B. Carroll draws a distinction between immoral managers, amoral managers, and

moral managers. 23

Th e immoral manager essentially chooses to behave unethically. She or he doesn’t

subscribe to any ethical principles, making decisions and acting to gain best personal

Conceptual skill is the ability

to analyze and solve complex

problems.

An immoral manager

chooses to behave unethically.

CHECKING ETHICS IN OB

Is Management a Profession? Does it surprise you that a Harvard Business Review article claims managers are losing the public trust? To help change things for the better, the authors call for business schools to address management as a “profession” that is governed by codes of conduct that “forge an implicit social contract with society.” One response to their call is MBA Oath, a nonprofi t organization. Its goal is to create a community of graduating MBA students from any univer- sity that voluntarily sign an oath that pledges them to “create value responsibly and ethically.” So far over 250 schools are represented in the community. A student signing the MBA Oath accepts statements such as these:

“I will manage my enterprise with loyalty and care, and will not advance my personal interests at the expense of my enterprise or society.”

Make Ethics Personal What is your position on the MBA Oath? Would you take it, and sincerely try to live up to it in day-to-day practice? How about the whole concept of management being a profession like medicine and law? Can professionalizing management really make a difference in terms of ethical accountability and everyday managerial behavior?

Jin Lee/Bloomberg/Getty Images, Inc.

“I will refrain from corruption, unfair competition, or business practices harmful to society.”

“I will protect the human rights and dignity of all people affected by my enterprise, and I will oppose discrimination and exploitation.”

19Leadership and Organizational Behavior

advantage. Perhaps the best examples are disgraced executives such as Bernard Madoff ,

whose unethical acts made national and world headlines. Th e amoral manager, by con-

trast, acts unethically at times but does so unintentionally. Th is manager fails to consider

the ethics of a decision or behavior. Unintentional ethical lapses that we all must guard

against include prejudice from unconscious stereotypes and attitudes, showing bias

based on in-group favoritism, and claiming too much personal credit for performance

accomplishments. 24

Th e moral manager incorporates ethical principles and goals into

his or her personal behavior. Ethical behavior is a goal, a standard, and even a matter of

routine; ethical reasoning is part of every decision, not just an occasional afterthought.

Carroll believes that the majority of managers tend to act amorally. If this is true, and

because we also know immoral managers are around, it is very important to understand

personal responsibilities for everyday ethical behavior and leadership. All organization

members can and should be ethical leaders. Th is includes always acting as ethical role

models and being willing to take stands in the face of unethical behavior by those above,

below, and around them.

A review article by Terry Th omas and his colleagues describes how the “ethics center

of gravity” shown in Figure 1.6 can be moved positively through moral leadership or neg-

atively through amoral leadership. 25

In this view, a moral manager or moral leader always

sets an ethics example, communicates ethics values, and champions ethics mindfulness.

Th is is defi ned as an “enriched awareness” that causes one to behave with an ethical con-

sciousness from one decision or behavioral event to another.

Moral managers and moral leaders contribute to the “virtuous shift” shown in Figure 1.6.

Th ey help create an organizational culture in which people encourage one another to act

ethically as a matter of routine. One of the themes of this book, as refl ected in the “Ethics in

OB” feature in each chapter, is that ethics is the responsibility of everyone in the organization.

Leadership and Organizational Behavior

L E A R N I N G

R O A D M A P THE LEADERSHIP PROCESS • EFFECTIVE LEADERS • EFFECTIVE FOLLOWERS

The Leadership Process

Th e job of a manager or team leader has never been more demanding than it is in today’s

dynamic and hypercompetitive work environments. But the fact is, not all managers are

An amoral manager fails to

consider the ethics of a

decision or behavior.

A moral manager makes

ethical behavior a personal

goal.

Ethics mindfulness is an

enriched awareness that

causes one to consistently

behave with ethical

consciousness.

FIGURE 1.6 Moral leadership, ethics mindfulness, and the virtuous shift.

Source: Developed from Terry Thomas, John R. Schermerhorn Jr., and John W. Dinehart, “Strategic Leadership of Ethical Behavior in Business,” Academy of Management Executive 18 (May 2004), pp. 56–66.]

Leader’s impact on

ethics mindfulness

Organization’s Ethics Center of Gravity

Moral leadership, “Virtuous shift”

Amoral leadership, “Negative shift”

20 CHAPTER 1 ■ Introducing Organizational Behavior

good leaders. And even if they were, the challenges facing organizations are too complex

for managers alone to resolve. Organizations today require leadership at all levels, not

just from those holding the formal titles.

Leadership occurs when leaders and followers work together to advance change that

benefi ts the mission and vision of the organization. Leadership is a process, not just the

leader’s behavior. As shown in Figure 1.7, it requires leaders and followers to partner in

jointly producing leadership outcomes. Eff ective following is an essential—perhaps the

most important part—of the leadership process. Without followers there can be no leaders.

Interestingly, leadership doesn’t always have to be intentional. Sometimes others

follow because they see leadership potential in someone, or they like what a person says

and how they say it. Th is means that leadership is not only downward infl uence, it also

involves infl uencing upward and side to side. You can be a leader by convincing higher

management to adopt new practices suggested from your level. You can be a leader

among your peers by becoming the person people turn to for advice, support, or direc-

tion. And, remember the notion of the manager as “coach” and “coordinator”? Every time

you act in ways that fi t these descriptions, there’s no doubt you’re being a leader.

Eff ective Leaders

Eff ective leaders contribute to the leadership process by using their infl uence to advance

positive outcomes. Leaders are those who are willing to proactively envision new ways of

doing things and take initiative in promoting needed changes in organizations. Organiza-

tions are full of leaders, managers and non-managers alike. Th ese are people who get lis-

tened to by their peers, their bosses, and people below and higher up in the organization.

Leaders know that competence and reputation, being an eff ective communicator, and

developing relationships and infl uence are vital to their success. Th erefore they work to

develop these skills. Eff ective leaders, for example, frame communication in ways that

others will listen. Framing in this setting means tailoring communication in ways to

encourage certain interpretations and discourage others. An eff ective leader recognizes

that focusing on organizational interest (e.g., “We can increase productivity if we give

people more time to rest and rejuvenate”) will be a more eff ective frame than focusing on

self-interest (e.g., “We’ve been working too hard and want time off ”).

Eff ective leaders also know how to build relationships. Th ey do what they can to be

trustworthy, reliable, and respectful in not sharing or spreading information inappropri-

ately. Th ey understand that relationships are developed through social exchange, so

they manage exchange processes and reciprocity to build partnerships and networks.

Th ey help others out when needed because they know that the law of reciprocity will

invoke a sense of obligation by the other to return the favor (“if I do something for you,

you will do something for me later if I need it”). Th is helps them build networks and rela-

tionships that serve as a key source of leadership infl uence.

Leaders succeed when people follow them not because they have to, but because

they want to. Th ey are followed because others see the value of their ideas and

Framing means tailoring

communication in ways

to encourage certain

interpretations and

discourage others.

Social exchange means

that people build human

relationships and trust

through exchanges of favors

based on reciprocity.

Th e law of reciprocity

states that if someone does

something for someone else

it will invoke a sense of

obligation to return the favor.

Th e leadership process

involves leaders and followers

jointly producing leadership

outcomes.

FIGURE 1.7 The leadership process.

Leadership

Leading (influencing)

Following (deferring)

Leading (influencing)

Outcomes

21Leadership and Organizational Behavior

suggestions. Th is positive infl uence emerges from leaders’ competence, persuasiveness,

and human skills. Managers and team leaders, by virtue of their positions of authority,

have the opportunity to act as leaders. But they don’t always do so, or do so successfully.

Th e “Finding the Leader in You” feature in each chapter is designed to provide role mod-

els and get you thinking about developing your leadership potential.

Eff ective Followers

Eff ective followers are those who work with leaders to produce positive outcomes. Th ey

support leaders by being willing to collaborate and defer when needed, rather than work-

ing against leaders or trying to undermine their power. At the same time, eff ective follow-

ers are not blindly obedient or subservient and passive. You are being an eff ective follower

when you assume responsibility for telling leaders information they need to know, and not

avoiding responsibility for passing along the “bad” news as well as the “good” news.

Th e best followers do not have to be micromanaged. Th ey take responsibility for their own

attitudes and behaviors and view themselves as partners with leaders in the leadership pro-

cess. Th ey help the manager by avoiding engaging in upward delegation, or passing their

problems on to managers and burdening them with even more work. Th e best followers bring

solutions along with problems. Overall, they try to identify things that could cause problems

for leaders and then work to seek solutions before the problems escalate into big issues.

Organizations today are undergoing major transitions. Th ey require successful leadership

at all levels, and the need for more eff ective followership is on the rise. Followers today

cannot get away with shrugging off responsibility or passing along blame as they might have

Upward delegation means

passing problems or

responsibilities upward in the

hierarchy in ways that burden

managers with more work.

Michelle Greenfi eld Leads with a Sustainability Vision

W hen she was named as a recipient of the Ohio Department of Development’s Keys to Success Award, Michelle Greenfi eld said, “It’s exciting. It’s kind of nice to be recognized as a good business owner. The goal is not to have the award, the goal is to have a good busi- ness and do well.” She and her husband, Geoff, certainly do have a good business; it’s called Third Sun Solar Wind and Power, Ltd.

The Greenfi elds began by building a rural home that used no electricity in rural Athens County, Ohio. Solar power was the replacement, and they have yet to pay an electric utility bill. As friends became interested, they helped others get into solar power, and the business kept growing from there. It has been ranked by Inc. magazine as thirty-second among the fastest-growing energy busi- nesses in the United States. Third Sun is the largest pro- vider of solar energy systems in the Midwest and has experienced a 390 percent growth in 3 years. Quite a story for an idea that began with a sustainable home!

Soon after its birth, Third Sun moved into a business incubator dedicated to helping local fi rms grow and pros- per. Michelle says that they lived very frugally in their rural home, and this helped them start the business on a low budget. They have also benefi ted from tapping the local workforce in a university town and from having MBA students work with their fi rm in consulting capacities.

As their com- pany grew, Geoff focused on tech- nical issues while Michelle spent most of her time on the business and managerial ones. She’s now the CEO and pri- marily concerned with strategic issues as the fi rm grows. “I do a lot of mar- keting,” she says, “I do speaking engagements . . . I serve on the Board of Directors of Green Energy Ohio.”

What’s the Lesson Here? Michelle Greenfi eld is proud of her accomplishments and says, “I think it’s nice to be able to point out that there are women in the fi eld that also have enough brains to be successful.” She also points out that the name Third Sun was chosen to represent a “third son” for the couple, one requiring lots of nurturing in order to help it grow big and strong. Michelle’s leadership combines entrepreneurship with vision to help save our planet. Could more people, even you, follow her path?

Christian Baird Photography

IN YOU FINDING THE LEADER

22 CHAPTER 1 ■ Introducing Organizational Behavior

in the past. Th ey are expected to question and challenge leaders when needed, and to bring

new ideas and creativity to their work. But to do so eff ectively they must act with respect, and

keep the higher purpose in mind—the focus is on working with leaders in ways that advance

the mission and purpose of the organization. And when leaders and followers partner eff ec-

tively together, the result is a more meaningful, engaging and fulfi lling work experience.

Key Questions and Answers What is organizational behavior, and why is it important?

• Organizational behavior (OB) is the study of human behavior in organizations, focusing

on individuals, teams, interpersonal processes, and organizational dynamics.

• OB is a body of knowledge with real applications to everyday living and careers, particularly

in respect to a smart workforce where connections and collaboration are the keys to success.

• Trends and issues of interest in OB include ethical behavior, the importance of human

capital, an emphasis on teams, the growing infl uence of information technology, new

workforce expectations, changing notions of careers, and concerns for sustainability.

• OB is an applied discipline developed through scientifi c methods and taking a contin-

gency perspective that there is no single best way to handle people and the situations

that develop as they work together in organizations.

How do we learn about organizational behavior?

• Learning is an enduring change in behavior that results from experience.

• Lifelong learning about organizational behavior requires a commitment to continuous

learning from one’s work and everyday experiences.

• Most organizational behavior courses use a variety of instructional methods—self-

assessments, experiential exercises, team projects, and case studies—to take advantage

of the experiential learning cycle.

What is the context of organizational behavior?

• An organization is a collection of people working together in a division of labor for a

common purpose.

• Organizations are open and adaptive systems that change over time while interacting

with their environments to obtain resource and transform them into useful products

and services.

• Key stakeholders in the external environments of organizations include customers,

owners, suppliers, regulators, local communities, employees, and future generations.

• Th e organizational culture is the internal “personality” of the organization, including

the beliefs and values that are shared by members.

• Positive organizational cultures place a high value on workforce diversity and multicul-

turalism, emphasizing respect and inclusiveness for all members.

What are the challenges of management in organizations?

• Eff ective managers directly support and help others reach high levels of both perfor-

mance and job satisfaction; they are increasingly expected to act more like “coaches”

and “facilitators” than like “bosses” and “controllers.”

Study Guide1

23Self-Test 1

• Th e four functions of management are planning—to set directions; organizing—to

assemble resources and systems; leading—to create workforce enthusiasm; and

controlling—to ensure desired results.

• Managers use a combination of essential technical, human, and conceptual skills while

working in networks of people to fulfi ll a variety of interpersonal, informational, and

decisional roles.

What are the challenges of leadership in organizations?

• Eff ective leaders are individuals who successfully use infl uence to create change that

benefi ts the mission and vision of the team or organization.

• Not all managers are good leaders that attract followers because their ideas or sugges-

tions are valued and others choose to go along or align with them.

• Essential leadership skills include building competence and reputation, being an eff ec-

tive communicator, and developing relationships and infl uence.

• Essential followership skills involve being supportive of leaders, not delegating upward,

and proactively anticipating problems or issues that could disrupt the team or the

leader’s ability to meet organizational goals.

Terms to Know Amoral manager (p. 19)

Complex adaptive systems

(p. 12)

Conceptual skill (p. 18)

Contingency thinking (p. 8)

Controlling (p. 15)

Dependent variables (p. 7)

Eff ective manager (p. 15)

Emotional intelligence

(p. 16)

Ethics mindfulness (p. 19)

Evidence-based

management (p. 8)

Framing (p. 20)

Human skills (p. 16)

Immoral manager (p. 18)

Inclusion (p. 14)

Independent variables

(p. 7)

Job satisfaction (p. 15)

Law of Reciprocity (p. 20)

Leadership process

(p. 20)

Leading (p. 15)

Learning (p. 9)

Lifelong learning (p. 9)

Management process

(p. 15)

Manager (p. 14)

Models (p. 7)

Moral manager (p. 19)

Multiculturalism (p. 14)

Open systems (p. 12)

Organization (p. 11)

Organizational behavior

(p. 4)

Organizational climate

(p. 13)

Organizational culture

(p. 13)

Organizing (p. 15)

Planning (p. 15)

Skill (p. 16)

Smart workforce (p. 4)

Social capital (p. 17)

Social exchange (p. 20)

Stakeholders (p. 12)

Task performance (p. 15)

Technical skill (p. 16)

Upward delegation (p. 21)

Workforce diversity (p. 13)

Self-Test 1 Multiple Choice

1. Which of the following issues would be most central to the fi eld of organizational

behavior (OB)?

(a) How to improve advertising for a new product.

(b) How to increase job satisfaction and performance among members of a team.

(d) Designing a new management information system.

24 CHAPTER 1 ■ Introducing Organizational Behavior

2. What is the best description of the context for organizational behavior today?

(a) Command-and-control is in.

(b) Th e new generation is similar to the old.

(d) Work–life balance concerns are in.

3. Th e term workforce diversity typically refers to diff erences in race, age, gender,

ethnicity, and among people at work.

(a) social status (b) personal wealth

4. Which statement about OB is most correct?

(a) OB seeks “one-best-way” solutions to management problems.

(b) OB is a unique science that has little relationship to other scientifi c disciplines.

(d) OB is so modern that it has no historical roots.

5. In the open-systems view of organizations, such things as technology, information,

and money are considered .

(a) transformation elements (b) feedback

6. If the organization culture represents the character of an organization in terms of

shared values, the represents the shared perceptions of members

about day-to-day management practices.

(a) value chain (b) organization climate

7. Which of the following is not a good match of organizational stakeholder

and the interests they often hold important?

(a) customers—high-quality products (b) owners—returns on investments

8. Which word best describes an organizational culture that embraces multicultural-

ism and in which workforce diversity is highly valued?

(a) inclusion (b) eff ectiveness

9. Th e management function of is concerned with creating enthusiasm

for hard work among organizational members.

(a) planning (b) motivating

10. In the management process, is concerned with measuring perfor-

mance results and taking action to improve future performance.

(a) transforming (b) organizing

11. Among Mintzberg’s ten managerial roles, acting as a fi gurehead and liaison are

examples of roles.

(a) interpersonal (b) informational

25Steps to Further Learning 1

12. When a manager moves upward in responsibility, Katz suggests

skills decrease in importance and skills increase in importance.

(a) human, conceptual (b) conceptual, emotional

13. A person with high emotional intelligence would be strong in , the

ability to think before acting and to control disruptive impulses.

(a) motivation (b) perseverance

14. When a person’s human skills are so good that he or she has relationships with other

people who can be confi dently asked for help and assistance at work, these skills

have created social capital for the individual.

(a) analytical capacity (b) ethics mindfulness

15. Class discussions, “debriefs,” and individual papers based on case studies, team

projects, and in-class activities are all ways an instructor tries to engage students

in which part of the experiential learning cycle?

(a) initial experience (b) refl ection

Short Response

16. What are the key characteristics of OB as a scientifi c discipline?

17. What does “valuing diversity” mean in the workplace?

18. What does “self-regulation” mean in the context of emotional intelligence?

19. When is a manager an eff ective leader?

Applications Essay

20. Carla, a college junior, is participating in a special “elementary education outreach”

project in her local community. Along with other students from the business school,

she is going to spend the day with fourth- and fi fth-grade students and introduce

them to the opportunities of going to college. One of her tasks is to lead a class dis-

cussion of the question “How is the world of work changing today?” Help Carla out

by creating an outline of the major points she should discuss with the students.

Case for Critical Thinking

Team and Experiential Exercises

Self-Assessment Portfolio

• Trader Joe’s • Leadership Training

Dilemma

• My Best Manager • My Best Job • Graffi ti Needs

Assessment

• Learning Styles • Student Leadership

Practices Inventory • Managerial Assumptions • 21st-Century Manager • Turbulence Tolerance Test

Steps to Further Learning 1

Top Choices from Th e OB Skills Workbook

Th ese learning activities from Th e OB Skills Workbook found at the back of the book

are suggested for Chapter 1.

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