Define organizational behavior (OB). Describe what managers do. Explain the value of the systematic study of OB. List the major challenges and opportunities for managers to use OB concepts. Identify the contributions made by major behavioral science disciplines to OB.

1. What Is Organizational
Behavior
Chapter One

2. 1–2
After studying this chapter,
you should be able to:
1. Define organizational behavior (OB).
2. Describe what managers do.
3. Explain the value of the systematic study of
OB.
4. List the major challenges and opportunities for
managers to use OB concepts.
5. Identify the contributions made by major
behavioral science disciplines to OB.
LEARNINGOBJECTIVES

3. 1–3
After studying this chapter,
you should be able to:
6. Describe why managers require a knowledge
of OB.
7. Explain the need for a contingency approach
to the study of OB.
8. Identify the three levels of analysis in this
book’s OB model.
LEARNINGOBJECTIVES(cont’d)

4. 1–4
What Managers DoWhat Managers Do
Managerial Activities
• Make decisions
• Allocate resources
• Direct activities of others
to attain goals
Managerial Activities
• Make decisions
• Allocate resources
• Direct activities of others
to attain goals
Managers (or administrators)
Individuals who achieve goals through other people.

5. 1–5
Where Managers WorkWhere Managers Work
Organization
A consciously coordinated social unit,
composed of two or more people, that
functions on a relatively continuous basis
to achieve a common goal or set of
goals.

6. 1–6
Management FunctionsManagement Functions
ManagementManagement
FunctionsFunctions
ManagementManagement
FunctionsFunctions
PlanningPlanningPlanningPlanning OrganizingOrganizingOrganizingOrganizing
LeadingLeadingLeadingLeadingControllingControllingControllingControlling

7. 1–7
Management Functions (cont’d)Management Functions (cont’d)
Planning
A process that includes defining goals,
establishing strategy, and developing
plans to coordinate activities.

8. 1–8
Management Functions (cont’d)Management Functions (cont’d)
Organizing
Determining what tasks are to be done,
who is to do them, how the tasks are to be
grouped, who reports to whom, and where
decisions are to be made.

9. 1–9
Management Functions (cont’d)Management Functions (cont’d)
Leading
A function that includes motivating
employees, directing others, selecting
the most effective communication
channels, and resolving conflicts.

10. 1–
10
Management Functions (cont’d)Management Functions (cont’d)
Controlling
Monitoring activities to ensure they are being
accomplished as planned and correcting any
significant deviations.

11. 1–
11
Mintzberg’s Managerial RolesMintzberg’s Managerial Roles
E X H I B I T 1–1
E X H I B I T 1–1Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973
by H. Mintzberg. Reprinted by permission of Pearson Education.

12. 1–
12
Mintzberg’s Managerial Roles (cont’d)Mintzberg’s Managerial Roles (cont’d)
E X H I B I T 1–1 (cont’d)
E X H I B I T 1–1 (cont’d)Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973
by H. Mintzberg. Reprinted by permission of Pearson Education.

13. 1–
13
Mintzberg’s Managerial Roles (cont’d)Mintzberg’s Managerial Roles (cont’d)
E X H I B I T 1–1 (cont’d)
E X H I B I T 1–1 (cont’d)Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973
by H. Mintzberg. Reprinted by permission of Pearson Education.

14. 1–
14
Management SkillsManagement Skills
Technical skills
The ability to apply specialized
knowledge or expertise.
Human skills
The ability to work with, understand,
and motivate other people, both
individually and in groups.
Conceptual Skills
The mental ability to analyze and
diagnose complex situations.

15. 1–
15
Effective Versus Successful Managerial
Activities (Luthans)
Effective Versus Successful Managerial
Activities (Luthans)
1. Traditional management
• Decision making, planning, and controlling
2. Communication
• Exchanging routine information and processing
paperwork
3. Human resource management
• Motivating, disciplining, managing conflict, staffing,
and training
4. Networking
• Socializing, politicking, and interacting with others
1. Traditional management
• Decision making, planning, and controlling
2. Communication
• Exchanging routine information and processing
paperwork
3. Human resource management
• Motivating, disciplining, managing conflict, staffing,
and training
4. Networking
• Socializing, politicking, and interacting with others

16. 1–
16
E X H I B I T 1–2
E X H I B I T 1–2
Allocation of Activities by TimeAllocation of Activities by Time
Source: Based on F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz,
Real Managers (Cambridge, MA: Ballinger, 1988).

17. 1–
17
Enter Organizational BehaviorEnter Organizational Behavior
Organizational behavior
(OB)
A field of study that
investigates the impact that
individuals, groups, and
structure have on behavior
within organizations, for the
purpose of applying such
knowledge toward improving
an organization’s
effectiveness.

18. 1–
18
Replacing Intuition with Systematic StudyReplacing Intuition with Systematic Study
Systematic study
Looking at relationships, attempting to attribute
causes and effects, and drawing conclusions based
on scientific evidence.
Provides a means to predict behaviors.
Intuition
A feeling not necessarily supported by research.

19. 1–
19
Replacing Intuition with Systematic StudyReplacing Intuition with Systematic Study
The
Facts
Preconceived
Notions ≠

20. 1–
20
E X H I B I T 1–4
E X H I B I T 1–4
Source: Drawing by Handelsman in
The New Yorker, Copyright © 1986
by the New Yorker Magazine.
Reprinted by permission.

21. 1–
21
There Are Few Absolutes in OBThere Are Few Absolutes in OB
ContingencyContingency
VariablesVariablesx y
Contingency variables
Situational factors: variables that moderate the
relationship between two or more other
variables and improve the correlation.

22. 1–
22
Challenges and Opportunities for OBChallenges and Opportunities for OB
 Responding to Globalization
– Increased foreign assignments
– Working with people from different cultures
– Coping with anti-capitalism backlash
– Overseeing movement of jobs to countries with low-
cost labor
 Managing Workforce Diversity
– Embracing diversity
– Changing U.S. demographics
– Implications for managers
• Recognizing and responding to differences

23. 1–
23
DomesticDomestic
PartnersPartners
DomesticDomestic
PartnersPartners
Major Workforce Diversity CategoriesMajor Workforce Diversity Categories
RaceRaceRaceRace
Non-ChristianNon-ChristianNon-ChristianNon-Christian
NationalNational
OriginOrigin
NationalNational
OriginOrigin
AgeAgeAgeAge
DisabilityDisabilityDisabilityDisability
E X H I B I T 1–5
E X H I B I T 1–5
GenderGenderGenderGender

24. 1–
24
Challenges and Opportunities for OB (cont’d)Challenges and Opportunities for OB (cont’d)
 Improving Quality and Productivity
– Quality management (QM)
– Process reengineering
 Responding to the Labor Shortage
– Changing work force demographics
– Fewer skilled laborers
– Early retirements and older workers
 Improving Customer Service
– Increased expectation of service quality
– Customer-responsive cultures

25. 1–
25
What Is Quality Management?What Is Quality Management?
1. Intense focus on the customer.
2. Concern for continuous improvement.
3. Improvement in the quality of everything
the organization does.
4. Accurate measurement.
5. Empowerment of employees.
E X H I B I T 1–6
E X H I B I T 1–6

26. 1–
26
Improving Quality and ProductivityImproving Quality and Productivity
 Quality management (QM)
– The constant attainment of customer satisfaction
through the continuous improvement of all
organizational processes.
– Requires employees to rethink what they do and
become more involved in workplace decisions.
 Process reengineering
– Asks managers to reconsider how work would be done
and their organization structured if they were starting
over.
– Instead of making incremental changes in processes,
reengineering involves evaluating every process in
terms of its contribution.

27. 1–
27
Challenges and Opportunity for OB (cont’d)Challenges and Opportunity for OB (cont’d)
 Improving People Skills
 Empowering People
 Stimulating Innovation and Change
 Coping with “Temporariness”
 Working in Networked Organizations
 Helping Employees Balance Work/Life Conflicts
 Improving Ethical Behavior

28. 1–
28
Basic OB Model, Stage IBasic OB Model, Stage I
E X H I B I T 1–7
E X H I B I T 1–7
Model
An abstraction of reality.
A simplified representation
of some real-world
phenomenon.

29. 1–
29
The Dependent VariablesThe Dependent Variables
x
y
Dependent variable
A response that is affected by an independent variable.

30. 1–
30
The Dependent Variables (cont’d)The Dependent Variables (cont’d)
Productivity
A performance measure that includes
effectiveness and efficiency.
Effectiveness
Achievement of goals.
Efficiency
The ratio of effective
output to the input
required to achieve it.

31. 1–
31
The Dependent Variables (cont’d)The Dependent Variables (cont’d)
Absenteeism
The failure to report to work.
Turnover
The voluntary and
involuntary permanent
withdrawal from an
organization.

32. 1–
32
The Dependent Variables (cont’d)The Dependent Variables (cont’d)
Organizational citizenship
behavior (OCB)
Discretionary behavior that is not
part of an employee’s formal job
requirements, but that nevertheless
promotes the effective functioning of
the organization.

33. 1–
33
The Dependent Variables (cont’d)The Dependent Variables (cont’d)
Job satisfaction
A general attitude toward one’s job, the difference
between the amount of reward workers receive and the
amount they believe they should receive.

34. 1–
34
The Independent VariablesThe Independent Variables
IndependentIndependent
VariablesVariables
IndependentIndependent
VariablesVariables
Individual-LevelIndividual-Level
VariablesVariables
Individual-LevelIndividual-Level
VariablesVariables
OrganizationOrganization
System-LevelSystem-Level
VariablesVariables
OrganizationOrganization
System-LevelSystem-Level
VariablesVariables
Group-LevelGroup-Level
VariablesVariables
Group-LevelGroup-Level
VariablesVariables
Independent variable
The presumed cause of some change in the dependent
variable.

35. 1–
35
Basic OB
Model,
Stage II
Basic OB
Model,
Stage II
E X H I B I T 1–8
E X H I B I T 1–8