1. Chapter 1: Organizational Behavior: An Overview Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. What is Organizational Behavior? Organizational behavior (OB) is a field of study devoted to understanding, explaining, and ultimately improving the attitudes and behaviors of individuals and groups in organizations. OB theories and concepts are derived from: »industrial and organizational psychology »social psychology »sociology »anthropology »economics 1-2

3. Integrative Model of Organizational Behavior Individual Outcomes »Job performance »Organizational commitment Individual Mechanisms »Job satisfaction »Stress »Motivation »Trust, justice, and ethics »Learning and decision making 1-3

4. Individual Characteristics »Personality, cultural values, and ability Group Mechanisms »Teams »Leadership Organizational Mechanisms »Organizational structure »Organizational culture Integrative Model of Organizational Behavior, cont’d 1-4

5. Does Organizational Behavior Matter? Resource-based view »Financial resources (revenue, equity) »Physical resources (buildings, machines) »Other resources –Knowledge, decision-making, ability, culture 1-5

6. 1-6 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, trust, reputation What Makes a Resource Valuable?

7. Research Evidence OB practices were associated with better firm performance Firms who valued OB had a 19% higher survival rate than firms who 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 1-7

8. 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. 1-8

9. Scientific Studies Theory »A collection of assertions—both verbal and symbolic—that specify how and why variables are related, as well as the conditions under 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 1-9

10. 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) Scientific Studies, cont’d 1-10

11. Social Recognition & Job Performance How often does social recognition lead to higher job performance? »OB in Sports »Burger King study »Correlation between social recognition and job performance was.28 –Restaurants that received training in social recognition averaged 44 seconds of drive-through time nine months later versus 62 seconds for the control group locations. »Correlation between social recognition and retention rates was.20 –Restaurants that received training in social recognition had a 16 percent better retention rate than the control group locations nine months later. 1-11

12. 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). »In OB research, a.50 correlation is considered “strong,” a.30 correlation is considered “moderate,” and a.10 correlation is considered “weak.” 1-12