Demonstrate the importance of interpersonal skills in the workplace | Describe the manager’s functions, roles and skills|Define organizational behavior (OB)|Show the value to OB of systematic study|Identify the major behavioral science disciplines that contribute to OB|Demonstrate why few absolutes apply to OB| Identify the challenges and opportunities managers have in applying OB concepts| Compare the three levels of analysis in this book’s OB model.

1. What IsWhat Is
Organizational Behavior?Organizational Behavior?
1-1

2. Learning ObjectivesLearning Objectives
After studying this you should be able to:After studying this you should be able to:
 Demonstrate the importance of interpersonal skills in the workplace.Demonstrate the importance of interpersonal skills in the workplace.
 Describe the manager’s functions, roles and skills.Describe the manager’s functions, roles and skills.
 DefineDefine organizational behavior (OB).organizational behavior (OB).
 Show the value to OB of systematic study.Show the value to OB of systematic study.
 Identify the major behavioral science disciplines that contribute to OB.Identify the major behavioral science disciplines that contribute to OB.
 Demonstrate why few absolutes apply to OB.Demonstrate why few absolutes apply to OB.
 Identify the challenges and opportunities managers have in applying OBIdentify the challenges and opportunities managers have in applying OB
concepts.concepts.
 Compare the three levels of analysis in this book’s OB model.Compare the three levels of analysis in this book’s OB model.
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3. Demonstrate the Importance ofDemonstrate the Importance of
Interpersonal Skills in the WorkplaceInterpersonal Skills in the Workplace
 Understanding OB helping to determine managerUnderstanding OB helping to determine manager
effectivenesseffectiveness
 Leadership and communication skills that are criticalLeadership and communication skills that are critical
as a person progresses in a careeras a person progresses in a career
 Lower turnover of quality employeesLower turnover of quality employees
 Higher quality applications for recruitmentHigher quality applications for recruitment
 Better financial performanceBetter financial performance
1-3
LO 1
Interpersonal Skills Result In…

4. Describe the Manager’sDescribe the Manager’s
Functions, Roles And SkillsFunctions, Roles And Skills
 Manager: Someone who gets things done through other peopleManager: Someone who gets things done through other people
in organizations.in organizations.
 Organization: A consciously coordinated social unit composed ofOrganization: A consciously coordinated social unit composed of
two or more people that functions on a relatively continuous basistwo or more people that functions on a relatively continuous basis
to achieve a common goal or set of goals.to achieve a common goal or set of goals.
 Planning, organizing, leading, and controlling are the most oftenPlanning, organizing, leading, and controlling are the most often
studied.studied.
 Mintzberg concluded that managers perform ten different,Mintzberg concluded that managers perform ten different,
highly interrelated roles or sets of behaviors attributable tohighly interrelated roles or sets of behaviors attributable to
their jobs.their jobs.
LO 2
i1-4

5. Describe the Manager’sDescribe the Manager’s
Functions, Roles And SkillsFunctions, Roles And Skills
1-5
LO 2
Insert Exhibit 1.1

6. Describe the Manager’sDescribe the Manager’s
Functions, Roles And SkillsFunctions, Roles And Skills
 Management SkillsManagement Skills
 Technical Skills--The ability to apply specializedTechnical Skills--The ability to apply specialized
knowledge or expertise. All jobs require some specializedknowledge or expertise. All jobs require some specialized
expertise, and many people develop their technical skillsexpertise, and many people develop their technical skills
on the job.on the job.
 Human Skills--Ability to work with, understand, andHuman Skills--Ability to work with, understand, and
motivate other people, both individually and in groups,motivate other people, both individually and in groups,
describes human skills.describes human skills.
 Conceptual Skills--The mental ability to analyze andConceptual Skills--The mental ability to analyze and
diagnose complex situations.diagnose complex situations.
LO 2
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7. Effective VersusEffective Versus
Successful Managerial ActivitiesSuccessful Managerial Activities
Luthans and associates found that allLuthans and associates found that all
managers engage in four managerialmanagers engage in four managerial
activities.activities.
Traditional management.Traditional management.
Communication.Communication.
Human resource management.Human resource management.
Networking.Networking.
LO 2
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8. Effective VersusEffective Versus
Successful Managerial ActivitiesSuccessful Managerial Activities
LO 2
1-8
Insert Exhibit 1.2

9. DefineDefine
““Organizational Behavior” (OB.)Organizational Behavior” (OB.)
OB is a field of study that investigates theOB is a field of study that investigates the
impact that individuals, groups, andimpact that individuals, groups, and
structure have on behavior withinstructure have on behavior within
organizations for the purpose of applyingorganizations for the purpose of applying
such knowledge toward improving ansuch knowledge toward improving an
organization’s effectiveness.organization’s effectiveness.
LO 3
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10. Show the Value toShow the Value to
OB of Systematic StudyOB of Systematic Study
..
 Systematic Study of BehaviorSystematic Study of Behavior
 Behavior generally is predictable if we know how the personBehavior generally is predictable if we know how the person
perceived the situation and what is important to him or her.perceived the situation and what is important to him or her.
 Evidence-Based Management (EBM)Evidence-Based Management (EBM)
 Complements systematic study.Complements systematic study.
 Argues for managers to make decisions on evidence.Argues for managers to make decisions on evidence.
 IntuitionIntuition
 Systematic study and EBM add to intuition, or those “gut feelings”Systematic study and EBM add to intuition, or those “gut feelings”
about “why I do what I do” and “what makes others tick.”about “why I do what I do” and “what makes others tick.”
 If we make all decisions with intuition or gut instinct, we’reIf we make all decisions with intuition or gut instinct, we’re
likely working with incomplete information.likely working with incomplete information.
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LO 4

11. Identify the Major Behavioral ScienceIdentify the Major Behavioral Science
Disciplines That Contribute to OBDisciplines That Contribute to OB
Organizational behavior is an appliedOrganizational behavior is an applied
behavioral science that is built uponbehavioral science that is built upon
contributions from a number ofcontributions from a number of
behavioral disciplines.behavioral disciplines.
LO 5
1-11

12. Identify the Major Behavioral Science DisciplinesIdentify the Major Behavioral Science Disciplines
That Contribute to OBThat Contribute to OB
LO 5
1-12
Insert Exhibit 1.3

13. Identify the Major Behavioral Science DisciplinesIdentify the Major Behavioral Science Disciplines
That Contribute to OBThat Contribute to OB
 PsychologyPsychology
 Psychology is the science that seeks to measure,Psychology is the science that seeks to measure,
explain, and sometimes change the behavior ofexplain, and sometimes change the behavior of
humans and other animals.humans and other animals.
 Social PsychologySocial Psychology
 Social psychology blends the concepts of psychologySocial psychology blends the concepts of psychology
and sociology.and sociology.
LO 5
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14. Identify the Major Behavioral Science DisciplinesIdentify the Major Behavioral Science Disciplines
That Contribute to OBThat Contribute to OB
 SociologySociology
 Sociologists study the social system in whichSociologists study the social system in which
individuals fill their roles; that is, sociology studiesindividuals fill their roles; that is, sociology studies
people in relation to their fellow human beings.people in relation to their fellow human beings.
 AnthropologyAnthropology
 Anthropology is the study of societies to learn aboutAnthropology is the study of societies to learn about
human beings and their activities.human beings and their activities.
LO 5
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15. Few Absolutes Apply to OBFew Absolutes Apply to OB
There are few, if any, simple andThere are few, if any, simple and
universal principles that explainuniversal principles that explain
organizational behavior.organizational behavior.
Contingency variables—situationalContingency variables—situational
factors are variables that moderate thefactors are variables that moderate the
relationship between the independentrelationship between the independent
and dependent variables.and dependent variables.
LO 6
1-15

16. Few Absolutes Apply to OBFew Absolutes Apply to OBLO 6
Situational factors that make the main relationship
between two variables change—e.g., the relationship
may hold for one condition but not another.
1-16

17. Identify the Challenges andIdentify the Challenges and
Opportunities of OB ConceptsOpportunities of OB Concepts
Responding to Economic PressureResponding to Economic Pressure
In economic tough times, effectiveIn economic tough times, effective
management is an asset.management is an asset.
In good times, understanding how toIn good times, understanding how to
reward, satisfy, and retain employees isreward, satisfy, and retain employees is
at a premium. In bad times, issues likeat a premium. In bad times, issues like
stress, decision making, and copingstress, decision making, and coping
come to the fore.come to the fore.
LO 7
1-17

18. Identify the Challenges andIdentify the Challenges and
Opportunities of OB ConceptsOpportunities of OB Concepts
Responding to GlobalizationResponding to Globalization
Increased Foreign AssignmentsIncreased Foreign Assignments
Working with People from DifferentWorking with People from Different
CulturesCultures
LO 7
1-18

19. Identify the Challenges andIdentify the Challenges and
Opportunities of OB ConceptsOpportunities of OB Concepts
Managing Workforce DiversityManaging Workforce Diversity
Workforce diversity acknowledges aWorkforce diversity acknowledges a
 workforce of women and men;workforce of women and men;
 many racial and ethnic groups;many racial and ethnic groups;
 individuals with a variety of physical orindividuals with a variety of physical or
psychological abilities;psychological abilities;
 and people who differ in age and sexualand people who differ in age and sexual
orientation.orientation.
LO 7
1-19

20. Identify the Challenges andIdentify the Challenges and
Opportunities of OB ConceptsOpportunities of OB Concepts
Improving Customer ServiceImproving Customer Service
Today the majority of employees inToday the majority of employees in
developed countries work in servicedeveloped countries work in service
jobs.jobs.
Employee attitudes and behavior areEmployee attitudes and behavior are
associated with customer satisfaction.associated with customer satisfaction.
LO 7
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21. Identify the Challenges andIdentify the Challenges and
Opportunities of OB ConceptsOpportunities of OB Concepts
Improving People SkillsImproving People Skills
People skills are essential to managerialPeople skills are essential to managerial
effectiveness.effectiveness.
OB provides the concepts and theoriesOB provides the concepts and theories
that allow managers to predict employeethat allow managers to predict employee
behavior in given situations.behavior in given situations.
LO 7
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22. Identify the Challenges andIdentify the Challenges and
Opportunities of OB ConceptsOpportunities of OB Concepts
Stimulating Innovation and ChangeStimulating Innovation and Change
Successful organizations must fosterSuccessful organizations must foster
innovation and master the art of change.innovation and master the art of change.
Employees can be the impetus forEmployees can be the impetus for
innovation and change or a majorinnovation and change or a major
stumbling block.stumbling block.
Managers must stimulate employees’Managers must stimulate employees’
creativity and tolerance for change.creativity and tolerance for change.
LO 7
1-22

23. Identify the Challenges andIdentify the Challenges and
Opportunities of OB ConceptsOpportunities of OB Concepts
 Coping with “Temporariness”Coping with “Temporariness”
 Organizations must be flexible and fast in order toOrganizations must be flexible and fast in order to
survive.survive.
 Managers and employees must learn to cope withManagers and employees must learn to cope with
temporariness.temporariness.
 Learning to live with flexibility, spontaneity, andLearning to live with flexibility, spontaneity, and
unpredictability.unpredictability.
 OB provides help in understanding a work world ofOB provides help in understanding a work world of
continual change, how to overcome resistance to change,continual change, how to overcome resistance to change,
and how to create an organizational culture that thrivesand how to create an organizational culture that thrives
on change.on change.
LO 7
1-23

24. Identify the Challenges andIdentify the Challenges and
Opportunities of OB ConceptsOpportunities of OB Concepts
Working in Networked OrganizationsWorking in Networked Organizations
Networked organizations are becomingNetworked organizations are becoming
more pronounced.more pronounced.
Manager’s job is fundamentally differentManager’s job is fundamentally different
in networked organizations. Challengesin networked organizations. Challenges
of motivating and leading “online”of motivating and leading “online”
require different techniques.require different techniques.
LO 7
1-24

25. Identify the Challenges andIdentify the Challenges and
Opportunities of OB ConceptsOpportunities of OB Concepts
 Helping Employees Balance Work-Life ConflictsHelping Employees Balance Work-Life Conflicts
 The creation of the global workforce meansThe creation of the global workforce means
work no longer sleeps.work no longer sleeps.
 Communication technology has provided aCommunication technology has provided a
vehicle for working at any time or any place.vehicle for working at any time or any place.
 Employees are working longer hours per week.Employees are working longer hours per week.
 The lifestyles of families have changed—The lifestyles of families have changed—
creating conflict.creating conflict.
 Balancing work and life demands nowBalancing work and life demands now
surpasses job security as an employee priority.surpasses job security as an employee priority.
LO 7
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26. Identify the Challenges andIdentify the Challenges and
Opportunities of OB ConceptsOpportunities of OB Concepts
 Creating a Positive Work EnvironmentCreating a Positive Work Environment
 Organizations have realized creating a positiveOrganizations have realized creating a positive
work environment can be a competitivework environment can be a competitive
advantage.advantage.
 Positive organizational scholarship or behaviorPositive organizational scholarship or behavior
studies what is ‘good’ about organizations.studies what is ‘good’ about organizations.
 This field of study focuses on employees’This field of study focuses on employees’
strengths versus their limitations as employeesstrengths versus their limitations as employees
share situations in which they performed atshare situations in which they performed at
their personal best.their personal best.
LO 7
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27. Identify the Challenges andIdentify the Challenges and
Opportunities of OB ConceptsOpportunities of OB Concepts
 Improving Ethical BehaviorImproving Ethical Behavior
 Ethical dilemmas are situations in which anEthical dilemmas are situations in which an
individual is required to define right and wrongindividual is required to define right and wrong
conduct.conduct.
 Good ethical behavior is not so easily defined.Good ethical behavior is not so easily defined.
 Organizations are distributing codes of ethicsOrganizations are distributing codes of ethics
to guide employees through ethical dilemmas.to guide employees through ethical dilemmas.
 Managers need to create an ethically healthyManagers need to create an ethically healthy
climate.climate.
LO 7
1-27

28. Three Levels of AnalysisThree Levels of Analysis
in This OB Modelin This OB Model
LO 8
Exhibit 1-4 1-28

29. Three Levels of AnalysisThree Levels of Analysis
in This OB Moin This OB Modeldel
•InputsInputs
•Inputs are the variablesInputs are the variables
like personality, grouplike personality, group
structure, andstructure, and
organizational cultureorganizational culture
that lead to processes.that lead to processes.
•Group structure, roles,Group structure, roles,
and teamand team
responsibilities areresponsibilities are
typically assignedtypically assigned
immediately before orimmediately before or
after a group is formed.after a group is formed.
LO 8

30. Three Levels of AnalysisThree Levels of Analysis
in This OB Modelin This OB Model
•ProcessesProcesses
•If inputs are like theIf inputs are like the
nouns innouns in
organizationalorganizational
behavior, processesbehavior, processes
are like verbs.are like verbs.
•Processes areProcesses are
actions thatactions that
individuals, groups,individuals, groups,
and organizationsand organizations
engage in as a resultengage in as a result
of inputs and that leadof inputs and that lead
to certain outcomes.to certain outcomes.
LO 8

31. Three Levels of AnalysisThree Levels of Analysis
in This OB Modelin This OB Model
•OutcomesOutcomes
•Outcomes are the keyOutcomes are the key
variables that youvariables that you
want to explain orwant to explain or
predict, and that arepredict, and that are
affected by someaffected by some
other variables.other variables.
LO 8

32. Variables of InterestVariables of Interest
 Attitudes and stressAttitudes and stress
 Employee attitudes are the evaluations employees make,Employee attitudes are the evaluations employees make,
ranging from positive to negative, about objects, people, orranging from positive to negative, about objects, people, or
events.events.
 Stress is an unpleasant psychological process that occursStress is an unpleasant psychological process that occurs
in response to environmental pressures.in response to environmental pressures.
 Task performanceTask performance
 The combination of effectiveness and efficiency at doingThe combination of effectiveness and efficiency at doing
your core job tasks is a reflection of your level of taskyour core job tasks is a reflection of your level of task
performance.performance.
LO 8
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33. Variables of InterestVariables of Interest
Citizenship behaviorCitizenship behavior
 The discretionary behavior that is not part of anThe discretionary behavior that is not part of an
employee’s formal job requirements, and thatemployee’s formal job requirements, and that
contributes to the psychological and socialcontributes to the psychological and social
environment of the workplace, is calledenvironment of the workplace, is called
citizenship behavior.citizenship behavior.
 Withdrawal behaviorWithdrawal behavior
 Withdrawal behavior is the set of actions thatWithdrawal behavior is the set of actions that
employees take to separate themselves fromemployees take to separate themselves from
the organization.the organization.
LO 8
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34. Variables of InterestVariables of Interest
Group cohesionGroup cohesion
Group cohesion is the extent to whichGroup cohesion is the extent to which
members of a group support and validate onemembers of a group support and validate one
another at work.another at work.
Group functioningGroup functioning
Group functioning refers to the quantity andGroup functioning refers to the quantity and
quality of a group’s work output.quality of a group’s work output.
LO 8
1-34

35. Variables of InterestVariables of Interest
 ProductivityProductivity
 An organization is productive if it achieves its goals byAn organization is productive if it achieves its goals by
transforming inputs into outputs at the lowest cost.transforming inputs into outputs at the lowest cost.
This requires both effectiveness and efficiency.This requires both effectiveness and efficiency.
 SurvivalSurvival
 The final outcome we will consider is organizationalThe final outcome we will consider is organizational
survival, which is simply evidence that thesurvival, which is simply evidence that the
organization is able to exist and grow over the longorganization is able to exist and grow over the long
term.term.
LO 8
1-35

36. Variables of InterestVariables of InterestLO 8
1-36
Insert Exhibit 1.5

37. Managerial SummaryManagerial Summary
Organizational behavior uses systematicOrganizational behavior uses systematic
study to improve predictions of behaviorstudy to improve predictions of behavior
over intuition alone.over intuition alone.
Because people are different, we need toBecause people are different, we need to
look at OB in a contingency framework,look at OB in a contingency framework,
using situational variables to explainusing situational variables to explain
cause-and-effect relationships.cause-and-effect relationships.
Organizational behavior offers specificOrganizational behavior offers specific
insights to improve a manager’s peopleinsights to improve a manager’s people
skills.skills.
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38. Managerial SummaryManagerial Summary
 It helps managers to see the value of workforceIt helps managers to see the value of workforce
diversity and practices that may need to be changeddiversity and practices that may need to be changed
in different countries.in different countries.
 It can improve quality and employee productivity byIt can improve quality and employee productivity by
showing managers how to empower their people, andshowing managers how to empower their people, and
help employees balance work–life conflicts.help employees balance work–life conflicts.
 It can help managers cope in a world of temporarinessIt can help managers cope in a world of temporariness
and learn how to stimulate innovation.and learn how to stimulate innovation.
 Finally, OB can guide managers in creating anFinally, OB can guide managers in creating an
ethically healthy work climate.ethically healthy work climate.
1-38