1. 1 What is Organizational Behavior? McGraw-Hill/Irwin
Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

2. Learning Goals
What is the definition of “organizational behavior” (OB)?
What are the two primary outcomes in studies of OB?
What factors affect the two primary OB outcomes?
Why might firms that are good at OB tend to be more profitable?
What is the role of theory in the scientific method?
How are correlations interpreted?

3. The Best of Coworkers, the Worst of Coworkers
Table 1-1

4. Organizational Behavior Defined
Organizational behavior (OB) is the field of study devoted to understanding, explaining, and ultimately improving the attitudes and behaviors of individuals and groups in organizations.
Human resource management takes the theories and principles studies in OB and explores the “nuts-and-bolts” applications of those principles in organizations.
Strategic management focuses on the product choices and industry characteristics that affect an organization's profitability.

5. OB Foundations
Theories and concepts in OB are drawn from a wide variety of disciplines
Industrial and organizational psychology
Job performance and individual characteristics
Social psychology
Satisfaction, emotions, and team processes
Sociology
Team characteristics and organizational structure
Economics
Motivation, learning, and decision making

6. Integrative Model of Organizational Behavior
Individual Outcomes
Job performance (Chapter 2)
Organizational commitment (Chapter 3)
Individual Mechanisms
Job satisfaction (Chapter 4)
Stress (Chapter 5)
Motivation (Chapter 6)
Trust, justice, and ethics (Chapter 7)
Learning and decision making (Chapter 8)

7. Integrative Model of Organizational Behavior, cont’d
Individual Characteristics
Personality and cultural values (Chapter 9)
Ability (Chapter 10)
Group Mechanisms
Teams: characteristics and diversity (Chapter 11)
Teams: processes and communication (Chapter 12)
Leadership: power and negotiation (Chapter 13)
Leadership: styles and behaviors (Chapter 14)
Organizational Mechanisms
Organizational structure (Chapter 15)
Organizational culture (Chapter 16)

8. Integrative Model of OB
Figure 1-1

9. Does Organizational Behavior Matter?
Resource-based view
Financial resources (revenue, equity)
Physical resources (buildings, machines, technology)
Knowledge, decision-making, culture, ability, wisdom
Image, culture, goodwill

10. Discussion Question
Is it really the people that make some companies more profitable than others?

11. What Makes a Resource Valuable?
Rare
Resources, people
Inimitable
History
A collective pool of experience, wisdom, and knowledge that benefits the organization
Numerous small decisions
People make many small decisions day-in and day-out, week-in and week-out
Socially complex resources
Culture, teamwork, trust, reputation

12. What Makes a Resource Valuable?
Figure 1-2

13. Research Evidence
OB practices were associated with better firm performance
Firms that valued OB had a 19% higher survival rate than firms that did not value OB
Good people comprise a valuable resource for companies
There is no “magic bullet” OB practice – one thing that, in-and-of itself, can increase profitability
Rule of one-eighth
OB on Screen
Office Space

14. Survey Questions Designed to Assess High Performance Work Practices
Table 1-2

15. Some of the “100 Best Companies to Work For” in 2009
Table 1-3

16. How Do We Know
Method of Experience – People hold firmly to some belief because it is consistent with their own experience and observations.
Method of Intuition – People hold firmly to some belief because it “just stands to reason”—it seems obvious or self-evident.
Method of Authority – People hold firmly to some belief because some respected official, agency, or source has said it is so.
Method of Science – People accept some belief because scientific studies have tended to replicate that result using a series of samples, settings, and methods.

17. Scientific Studies Theory Hypotheses
A collection of assertions—both verbal and symbolic—that specify how and why variables are related, as well as the conditions in which they should (and should not) be related
Tells a story and supplies the familiar who, what, where, when, and why elements found in any newspaper or magazine article
Hypotheses
Written predictions that specify relationships between variables

18. The Scientific Method
Figure 1-3

19. Scientific Studies, cont’d
Correlation (r)
Describes the statistical relationship between two variables
Can be positive or negative and range from 0 (no statistical relationship) to ± 1 (a perfect statistical relationship)

20. Different Correlation Sizes
Figure 1-4

21. Meta-analysis
The best way to test a theory is to conduct many studies, each of which is as different as possible from the ones that preceded it.
Meta-analysis takes all of the correlations found in studies of a particular relationship and calculates a weighted average (such that correlations based on studies with large samples are weighted more than correlations based on studies with small samples).
.50 correlation is considered “strong,” a .30 correlation is considered “moderate,” and a .10 correlation is considered “weak.”
Form the foundation for evidence-based management — a perspective that argues that scientific findings should form the foundation for management education, much as they do for medical education.