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1Introduction to Organizational
Behavior
Ridofranz/iStock/Thinkstock
Learning Objectives
After reading this chapter and studying the
materials, you should be able to:
1. Describe the essence of organizational behavior.
2. Explain how scienti�ic management and the human relations
movement helped shape the
�ield of organizational behavior.

3. Apply modern concepts present in organizational behavior to
individual and managerial
efforts.
4. Recognize the personal and managerial skills present in
organizational behavior that apply
to today's business environment.
5. Identify additional trends that affect the �ield of
organizational behavior and one's personal
career.
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1.1 The Nature of Organizational Behavior
Managers in organizations engage in a variety of activities
every day, among them supervising and directing employees.
Organizational behavior (OB) may be
de�ined as the investigation of the behavioral factors that affect
organizations and their management at the individual, group,
and organization-wide levels.
Organizational behavior concentrates on the people side of a
business, nonpro�it, or governmental entity. Understanding
organizational behavior concepts can
help a company or nonpro�it ful�ill its potential by creating a
satisfying and positive environment. In turn, a positive
environment can lead to pro�itability,

growth, and other measures of success, thereby connecting the
human element with the operational elements of an organization
(see, for example, OB in Action:
Quicken Loans). This textbook examines the behavioral factors
that dictate success (or failure) in the world of commerce and in
other organizations at each level.
In this �irst chapter, �ive topics are explored. This section
provides an overview of organizational behavior along with a
brief presentation of the disciplines
related to OB. A review of historical trends that in�luenced the
�ield follows. Next, an examination of the modern context of
management and organizational
behavior is provided. This is followed by a discussion of some
of the interpersonal managerial skills that lead to individual
success. The chapter concludes with
an evaluation of the context in which business currently
operates. These concepts set the stage for the remaining parts
and chapters in this text.
OB in Action: Quicken Loans
The mortgage lending business has �lourished in the United
States for a very long time. Recently, a new player moved into
the market and achieved great
notoriety due to both its �inancial achievements and its success
on a human level. In 2016, Quicken Loans jumped to �ifth
place in Fortune's Top 100
Companies to Work For (Fortune, 2016).
In terms of basic statistics, the company pays 100% of
employee healthcare costs, offers health insurance to part-time
employees, provides onsite child
care, offers compressed work weeks, provides paid sabbaticals,
and maintains an onsite �itness center and medical assistance
programs. The company

grants paid time off for volunteer activities and emphasizes
non-discrimination while providing same-sex partnership
bene�its.
Beyond these efforts, Quicken Loans has been credited with
helping revitalize part of the Detroit, Michigan, metro area,
which has suffered high rates of
unemployment and other problems. Led by CEO Dan Gilbert,
the company features a relaxed and fun atmosphere, which
stands in contrast to many more
"buttoned-down" companies in the industry. Inside the
company's campus, a high-energy atmosphere is maintained
with casually dressed employees and
recreational amenities such as mini-basketball hoops (Gallagher
& Reindl, 2013).
With Gilbert at the helm, Quicken Loans introduced a series of
innovative programs that have been replicated by other
organizations in the industry.
These include marketing and advertising campaigns designed to
attract customers at the peak of the 2008–09 mortgage crisis,
paperless mortgage
applications, and the current Rocket Loan program, which
makes the mortgage application process even faster using an
online application and nearly
immediate feedback.
The efforts to create a positive work environment for employees
coupled with an emphasis on community development and
renovation is responsible for
the many favorable reactions to the company. This approach
demonstrates the value of understanding the principles of
effective behavior management
described throughout this textbook.
Re�lection and Application Questions

1. Which elements of the Quicken Loans employment package
are most appealing to you?
2. How can a favorable image in the community in�luence the
internal workings of a company?
3. How can a fun-loving environment connect with innovation
and creativity? How can it create problems?
Organizational behavior is commonly known as a hybrid �ield,
which means that those who study the topic will encounter
concepts and theories generated in a
variety of academic disciplines. OB can also be described as
"interdisciplinary" or "multidisciplinary." In any case, the study
of organizational behavior in the
modern context requires a modest understanding of concepts
generated in the following �ields:
psychology
social psychology
sociology
organization theory
human resource management
history
research methods and statistics
anthropology
Each contributes unique insights into the study of methods used
to improve individual and organizational performance.
Psychology
Psychology, the study of individual mental processes,
profoundly in�luences the �ield of organizational behavior.
Psychologists examine many factors that are part
of organizational life, including stimuli, perception, learning,
personality, and motivation. By understanding how stimuli are

perceived, attention-getting factors
associated with learning can be designed to improve training
programs and create effective workplace safety practices.
Perception affects the subsequent
development of the attitudes, beliefs, and values that shape
citizenship within the �irm. Several motivation theories that
apply to the workplace were developed
or in�luenced by psychology.
Social Psychology
Social psychology, or the examination of social factors that
in�luence individual mental processes, includes a sweeping
number of topics that overlap with
organizational behavior. Roles and role theory, teams and
groups, decision-making processes, leadership, and
communication are topics studied by both social
psychologists and organizational behaviorists. Recent
contributions made by social psychology to the �ield of
organizational behavior include the concepts of
social information processing and the nature of inclusive or
exclusive language that can be used to alienate or discriminate
against others.
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Weber, like Blau, is known for his
contributions to social theory.
Fine Art Images/Fine Art Images/SuperStock

Reliability and Validity in Action
Watch as an instructor asks students to demonstrate the
principles of reliability and validity in this exercise.
Critical Thinking Questions
1. What might be some additional ways that one could
ensure reliability?
2. question
Sociology
Sociology is the study of social organizations. Organizational
design and structure, roles, and teams and
groups are subjects that sociology and organizational behavior
have in common. Many of the classic principles
of organizational structure �irst appeared in the writings of
sociologists, including Max Weber and Peter Blau.
Organization Theory
A strong overlap exists between sociology and organization
theory due to their emphasis on organization
design issues. The primary difference is that organization theory
approaches the topic from a stronger
business perspective. In both sociology and organization theory,
the organization constitutes the primary unit
of analysis rather than individual employees, teams, or groups.
Human Resource Management
Human resource management (HRM) and organizational
behavior share a parent �ield: management. Each

area (HRM and OB) is a management specialty. Both examine
the subjects of job design, union–management
relationships, and job satisfaction, including the indicators of
satisfaction (rates of absenteeism, tardiness,
turnover, accidents, grievances, and vandalism) in the
workplace. Many organizational behavior research
efforts aim at improving job satisfaction and its indicators.
History
The role of history in organizational behavior is related to
context. Early theories of motivation and job design
emerged during the Industrial Revolution, as did ideas regarding
organizational structure. Several of these
concepts resulted from the movement to factories and
centralized work places (rather than personal homes
and workshops). During World War II, new leadership theories
emerged as the United States government
sought to improve leadership skills among military of�icers. In
the 1960s, the ability to conduct more
sophisticated research and data analysis arose from the
development of computer technology and later from the
introduction of the Internet.
Research Methods and Statistics
Knowledge in the �ield of organizational behavior advances
through quality research. Research
methods and statistics programs seek to generate high-quality
experiments and empirical
investigations of constructs, postulates, hypotheses, and
theories. A construct is a term that is
used to represent an unobservable process. Motivation and
learning are constructs that cannot
be seen but that still take place. For example, a research study

might seek to measure the
construct of "job satisfaction" at a local hospital.
In organizational behavior, a quality research project includes
reliability, where variables can
be measured consistently and repeatedly. The research project
must also possess validity,
meaning that the study measures the variable intended to be
measured, and thus its �indings
can be generalized to other groups. A research study that �inds
employees who work the third
shift in a hospital to be more dissatis�ied with their jobs than
those working the �irst or second
shifts exhibits reliability when the measures of the construct
"job satisfaction" can be repeated
and obtain the same results. The study has validity when the
�inding (greater dissatisfaction is
present) can be transferred to employees in other settings, such
as third-shift workers in
manufacturing plants, restaurants, and hotels.
Anthropology
Anthropology contributes to organizational behavior through the
emphasis on concepts such
as organizational climate and culture. The organizational
climate, or prevailing atmosphere
within an organization, dictates whether employees feel relaxed
and accepted or stressed and
fearful. Internal and external forces can change the climate of a
company. An external factor
such as a recession can cause organizational members to worry
about losing their jobs and
lead supervisors to exhibit a more directive management style.
An internal change in climate
results when top managers leave. Each new executive will

imprint his or her personality on the
organization, thereby causing a shift in the �irm's environment.
Anthropological methods include the "researcher as participant"
form of inquiry. Classic
studies by John Van Maanen in a police department and
Rosabeth Moss Kanter in a major
corporation have added new insights into what happens in the
workplace (Van Maanen,
Dabbs, & Faulkner, 1982; Kanter, 1977). Both argue that
organizations should be studied from
within rather than by using constructs imposed from outside.
Another anthropological element, culture, also affects
organizational behavior. Culture at the
national level in�luences many companies. The operation of a
�irm in Japan will likely be quite
dissimilar from that of a company in Mexico due to differences
in national culture.
Organizational culture constitutes the more enduring aspects of
life within a company. A
company's culture often begins with a founding story, such as
Mark Zuckerberg's tale at
Facebook or the story of J. C. Penney's �irst retail store. Over
time company stories, legends,
language, and rituals evolve and then become relatively �ixed
and dif�icult to change.
As this brief section indicates, organizational behavior has been
enriched by the theoretical
contributions and research �indings from a variety of related
�ields. More recently, concepts
Reliability and Validity—Core Concepts in Psycholog...

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The "researcher as participant" method is a
form of
qualitative research that requires immersion and
participation in the given environment.
Prathaan/iStock/Thinkstockderived from postmodernism,
including ideas about the construction and deconstruction of
language as well as views of the organization, hegemonic
processes, notions of subjectivity
and identity, and cultural imperatives have begun to in�luence
thinking about what happens in
the workplace (Baack & Prasch, 1997). Undoubtedly the future
will include even greater
expansion into other academic �ields to enhance understanding
of organizational processes.
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Mary Parker Follett was responsible for the
notion that
managers ought to guide and help their employees,
rather
than monitor them, thereby shifting the �ield's
focus to
human relations, and awayfrom simple productivity.
Hero Images Inc./Hero Images/SuperStock
1.2 Historical Overview: Scienti�ic Management
and Human Relations
Organizational behavior is a sub�ield of the larger �ield of
management. The management and organizational behavior
disciplines have evolved over time, from
relatively straightforward ideas about increasing productivity to
complex modern approaches. Historically, the scienti�ic
management approach was at the
forefront of the study of the �ield of management. It was
followed by the human relations movement and the subsequent
transition to modern organizational
behavior.
Scienti�ic Management
Historians trace the beginnings of the �ield of management to
the late 1800s, when Henry R. Towne (1886) presented a paper
entitled "The Engineer as
Economist" to the American Society of Mechanical Engineers.
The article argued that the study of management was equal in
importance to the study of
engineering, and therefore the �ield should create its own body
of research and have its own professional organizations
(Bedeian, 1986).

Within a decade, mechanical engineer Frederick W. Taylor
(1903, 1911/2010) developed the principles of scienti�ic
management, an approach that merged
classic scienti�ic principles with what was known about the
practice of management. The four principles are displayed in
Table 1.1. The use of these principles
produced dramatic increases in productivity levels of individual
workers. One notable example occurred in the Ford Motor
Company with the development of
the assembly line, which increased both productivity and
pro�its.
Table 1.1: Taylor's four principles of scienti�ic
management
1. Development of a true science of managing with clearly
stated laws, rules, and principles that replaced rule-of-thumb
methods
2. Scienti�ic selection, training, and development of workers
for speci�ic jobs
3. Cooperation with workers to make sure work is completed
using scienti�ic principles
4. Equal division of tasks and responsibilities between workers
and management
Source: Adapted from A. G. Bedeian (1986).
Management. Chicago, IL: The Dryden Press.
Later, Frank and Lillian Gilbreth (1915) incorporated the
principles of scienti�ic management into their time and motion
study. By observing work performance
using �ilm and a stopwatch, they designed more ef�icient
methods to complete tasks.

As these concepts and applications evolved in the United States,
Henri Fayol (1916/1949) wrote in his native French about the
importance of the classic
management functions of planning, organizing, staf�ing,
directing, and controlling. The ideas paralleled the principles of
scienti�ic management in the United
States and were widely implemented throughout Europe.
At the same time, however, criticisms emerged that scienti�ic
management programs dehumanized employees and created
sweatshop-like conditions. The U.S.
government and individual unions sought to protect workers
from unfair management tactics, such as the use of child labor,
pay scales not suf�icient to maintain
a standard of living, and abusive supervisors (Majority Report
of the Sub-Committee on Administration, 1912). The U.S. labor
movement achieved dramatic
legislative gains during the scienti�ic management era. Further,
one governmental response was to ban the use of a stopwatch to
measure work output.
Legislators argued it placed undue pressure on workers, almost
as a form of coercion (Bedeian, 1986).
The Human Relations Movement
The �ield of organizational behavior emerged from other
aspects of management following a
series of changes to the �ield of management as well as the
general conduct of business. Some
of the origins of organizational behavior are credited to Mary
Parker Follett, who questioned
the wisdom of scienti�ic management. She argued that the
system ignored the human element
of organizations (Follett, 1918). Follett believed that improved
communication between parts
of a company could be created by increasing employee

participation in the direction of the
�irm, especially when workers were given autonomy and
assigned into crossfunctional teams
to work together on projects. Follett concluded that managers
should serve as coaches and
facilitators rather than as monitors and supervisors. This idea
became the basis of the human
relations movement (Tonn, 2003), the focus of which is on the
behaviors of people rather
than solely on productivity. Two important elements of the
human relations movement
include the Hawthorne studies and Maslow's ideas regarding
humanism.
The Hawthorne Studies
The human relations movement in management began in earnest
in 1927 with the Hawthorne
studies. In the experiments, which ran from 1927 to 1932,
researchers Elton Mayo and Fritz
Roethlisberger altered different factors, most notably the level
of lighting, to determine the
effects on worker productivity. The primary �indings of the
research project were as follows:
1. The subjects responded to positive and pleasant interactions
with researchers by
increasing productivity rates on the job.
2. Some of the tasks performed by supervisors were eventually
assumed by entry-level
employees, who also generated higher levels of production
because the workers found
the experience to be "fun" and free of anxiety about being
disciplined for poor
performance.

3. Workers tended to form groups that were cohesive and loyal
to one another. Anyone
who overproduced became a "slave" or "speed king" and was
derided or even physically
punched in the arm ("binging") by group members. Anyone who
failed to do his fair
share of work was labeled a "chiseler" and admonished to keep
up with the group.
Mayo and Roethlisberger concluded that workers are motivated
by more than money. Social interactions constitute a key part of
the organizational experience.
Individual attitudes and collective employee morale were
signi�icant determinants of productivity levels. The researchers
suggested company managers should
account for human emotions and interactions to achieve higher
levels of success (Urwick, 1960; Bedeian, 1986).
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Although criticisms of the research methods used have emerged
and questions regarding the exact nature of the �indings and
conclusions related to those
�indings exist, what remains clear is that the studies altered the
course of investigation into the nature of management of social
organizations. In essence, the
recommendations made by Mayo and Roethlisberger, that
managers should pay close attention to the human element of
their operations, created a dramatic
impact on the �ield of organizational behavior and the practice

of management at a more general level.
Abraham Maslow and Humanism
The �ield of organizational behavior has been shaped, in part,
by the �ield of psychology, a trend which increased during the
human relations movement era.
Prior to that time, the classical approach to psychology included
the belief that human nature was essentially weak and prone to
evil (Hjelle & Ziegler, 1981). Not
surprisingly, from that vantage point, workers were viewed by
management as only being motivated by money (pay) and fear
(termination, docking pay, pay
cuts). In essence, management in general took a carrot-and-stick
approach to supervising entry-level employees.
Clinical psychologist Abraham Maslow was among the �irst to
shift views regarding the nature of the human experience.
Maslow reasoned that the basic inner
nature of a person is inherently good, a perspective which
became known as humanism. Maslow expanded the argument by
suggesting that life is the process of
"getting better." At each new stage of life, the individual
becomes more concerned with connecting to, assisting, and
serving others. The ultimate expression of
life, known as self-actualization, results from performing
helpful and meaningful work while staying true to one's own
sense of self. This countervailing
perspective regarding the nature of people transferred to the
workplace. Employees could be viewed as being intelligent,
innovative, motivated, and capable of
learning and growth. One outcome from this perspective
included new theories about the nature of management, such as
those summarized in McGregor's
Theory Y in the next section.
In addition to organizational behavior and management,

Maslow's writings in�luenced the �ields of psychology, social
psychology, sociology, and marketing. Much
of the research and theory-building that took place in the years
following the publication of Maslow's theory included humanist
assumptions. In essence,
scienti�ic management, which relied on money and fear as
primary motivators, was being supplanted by newer, more
positive views of employees. Human
relations theories incorporate the concept that positive
employee attitudes, combined with praise and recognition by
supervisors and interesting work, can
contribute equally to workplace motivation and productivity
(Maslow, 1954, 1998).
Douglas McGregor and Theory X/Theory Y
Perhaps the most insightful book related to the �ield of
organizational behavior is Douglas McGregor's The Human
Side of Enterprise (1960). McGregor proposes
two companion theories, summarized in Table 1.2, that
crystallize the differences between scienti�ic management and
the human relations movement. Theory X
expresses the negative assumptions leaders have about their
followers: for example, they want to avoid work and
responsibility. The logical conclusions
managers would draw would be that they should use fear or
money to motivate employees. Theory Y represents the
opposing perspective, in terms of both
assumptions and conclusions made by leaders: for instance, that
it is natural for people to want to work, and that motivation
comes from within.
Table 1.2: McGregor's Theory X and Theory Y
Assumptions of Theory X Assumptions of Theory Y
1. People dislike work. 1. Wanting to work is natural.

2. People avoid responsibility. 2. People seek responsibility.
3. People prefer direction. 3. People enjoy autonomy.
4. Most people have little ambition. 4. Most people are only
partially utilized in terms of talents and abilities.
5. Given the opportunity, employees will generate ideas to help
themselves and the company.
Assumptions of Theory X Assumptions of Theory Y
1. Leaders should be production oriented. 1. Leaders should be
people oriented.
2. Employee motivation is derived from money and fear. 2.
Motivation comes from within the individual.
McGregor believed that the Theory X leadership style was
ineffective because workers would be underutilized and their
potential contributions would be lost.
He argued that Theory Y leaders unleash human potential and
would help employees and the overall organization achieve at
higher levels.
The human relations movement began to wane as technology
became more sophisticated. It became apparent that what the
Gilbreths had called the quest to
identify the "One Best Way" was impossible. Workplace
situations are complex and differ from one another.
Consequently, neither the scienti�ic management
approach nor the humanistic vantage point can provide complete
answers as to how an individual can effectively direct a
department or an overall organization.
This has led to new ideas and concepts about how to manage
employees.

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1.3 Modern Management and Organizational Behavior
During the 1950s, 1960s, and early 1970s, a series of political,
social, and technological trends in�luenced the academic world
and the world of commerce. Laws
regarding discrimination were enacted; issues regarding gender
equality arose; and the government underwent a great deal of
scrutiny, most notably as a result
of the Vietnam War and the Watergate scandal. The baby boom
generation and its insistence on greater freedom gave rise to
new social trends. Technology
played a major role in shaping the nature of research and the
methods used to conduct business. Computerization,
miniaturization, and robotics dramatically
in�luenced the workplace and the classroom.
The �ield of organizational behavior evolved with the times. In

the 1950s, the related college course was often called
"industrial psychology" and was taught in
psychology departments. As the content moved into schools of
business, the most common name for the class was "human
relations." Eventually the name
shifted to organizational behavior.
Early in the modern era, two concepts in�luenced the overall
practice and study of management: systems theory and
contingency theory. These two theories
created a new context for organizational behavior studies and
set the stage for programs like positive organizational
behavior.
Systems Theory
Chester I. Barnard introduced systems concepts to the practice
of business. Barnard (1938/1968) believed organizations
consisted of a series of physical,
biological, personal, and social components that form into a
cooperative system, which pursues distinct goals and ends.
Later, systems theory conceptualized an
organization as a set of interrelated parts working together in a
holistic fashion. Figure 1.1 portrays a system. The model
applies to biological, mechanical, and
social systems.
Figure 1.1: A system
Chester Barnard developed systems concepts, which later
became systems
theory. Systems theory demonstrates how an interrelated set of
parts evolves
into a holistic process.
In a business system, inputs include raw materials, �inancial

resources, and human resources. The transformation process
is the company's production function,
including the assembly of physical products and the delivery of
intangible services. Outputs are the �inished, �inal goods and
services sold to the public. The
feedback mechanism provides correction and adjustment,
keeping the organization in tune with its environment. Control
systems, such as performance
appraisals of individual employees and annual accounting
statements for overall companies, are feedback mechanisms.
Two major developments emerged from systems theory: �irst,
the concept that organizations constantly change, and second,
that organizations must adapt to
the larger environment to continue operations. Prior to systems
theory, �irms were often viewed more as a snapshot than as a
moving picture. For example,
Twitter at its inception was a simple messaging system that did
not seek to make a pro�it. But in its current form it is a far
different organization. Thus, a single
image from years ago would not suf�ice to describe the
company.
The need to adapt to the environment led to biological
analogies. The �irst, the life-cycle concept, suggests that
organizations are born, grow, reach a maturity
stage, and eventually decline and die. The second, natural
selection, notes that organizations that do not adapt to the
environment will be selected out.
Systems concepts apply to employees as well. Humans are
biological systems and go through life-cycle phases. Motives
and work skill sets evolve over their lives.
At the beginning of a career, what is most important to workers
may differ greatly from what will motivate them as they
approach retirement.

Natural selection also applies to individuals. Workers with
skills not suited to the economic environment cannot �ind jobs,
which means they are selected out.
Such has been the case for many coal workers in the United
States as that industry has begun to wane.
Contingency Theory
If one phrase summarizes contingency theory, it might be,
"There is no one best way to
manage." Contingency theory suggests that organizational
variables should be matched with
or adapted to the situation at hand. This new approach makes it
possible to incorporate
advances in technology (speci�ically computers) into research
programs. It recognizes that
organizational life is complex and requires a more in-depth
analysis of the factors involved. In
contrast to the concept of searching for a "best way," which
appears in both scienti�ic
management and the human relations movement, contingency
theory proposes a more
complex approach to management.
In organizational behavior, no one best motivational system,
leadership style, or form of
organizational structure and design exists. Instead, if → then
approaches to management are
required. Many of the theories that have evolved in
organizational behavior re�lect
contingency thinking, where managers adapt to the situation,
company, employees, and other
circumstances.

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Contingency theory leaves roomfor changing
circumstances, and can be useful for unconventional
work
environments to which more prescriptive theories
may
not apply.
Blend Images/Blend Images/SuperStock Positive
Organizational Behavior
Positive organizational behavior is the study and application
of positively oriented human
resource strengths and psychological capacities for performance
improvement in today's
workplace. Positive OB has its roots in the positive psychology
movement, which began in the
late 1990s. Positive psychology primarily focuses on building
human strength and was
translated from the �ield of psychology to the �ield of
organizational behavior by Fred Luthans. Instead of the quick-
�ix self-help approaches often found in the
popular press, positive organizational behavior seeks to identify
human resource strengths and capabilities that can be measured,
developed, improved, and
managed. To do so, positive organizational behavior is built on
the principles summarized by the acronym CHOSE (Luthans,
2002):

1. Con�idence and self-ef�icacy: I believe I control my own
destiny.
2. Hope: I think there is a good chance I will make my numbers
this year.
3. Optimism: Even though our team is being asked to do more
with fewer resources, we can use this as a chance to shine.
4. Subjective well-being: Each situation requires a unique
response.
5. Emotional intelligence: The ability to adapt to change and
environmental turbulence.
The positive organizational behavior approach stresses an
encouraging work environment in which managers are
approachable and employees feel free to
express ideas and seek to develop their full potential. This
bodes well for every aspect of their organizational lives and
includes achieving personal success while
increasing company pro�itability and growth.
The basis of positive organizational behavior can be found in
concepts such as open-door management, wherein managers
offer access to employees, who can
ask questions or discuss ideas or problems. It incorporates an
emphasis on employee participation as well as Theory Y.
Positive organizational behavior
emphasizes nurturing and empowering employees.
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1.4 Organizational Careers: Personal and Managerial
Factors
While an understanding of organizational behavior contributes
to overall company success, the study of organizational
behavior can contribute to personal
success as well. An effective manager—or future manager—
understands people. First, however, managers must understand
and improve themselves in order to
achieve career success.
Self-Management and Personal Success
"Personal success" may be a dif�icult concept to de�ine. For
one individual, the concept suggests wealth or fame. For
another, success results from moving to the
top of the organizational chart and assuming the role of chief
executive of�icer (CEO). Another still may view personal
success in terms of serving people,
including family, friends, and even strangers.
For purposes here, the concept of personal success speci�ically
addresses one's career and time spent in business organizations.
Whereas management can be
de�ined as accomplishing work and organizational goals by
assisting, training, and leading others, self-management
involves all efforts designed to pursue
personal and professional goals. The primary concepts that
apply to personal success in that context include
training and preparation
�inding the right person–organization �it
continuous improvement
achieving balance
building and maintaining a personal moral and ethical code

Each component contributes important elements to a satisfying
career.
Training and Preparation
The concept of lifelong learning has swept through much of the
academic and business world. New technologies and methods of
operation require continuous
study. A successful personal career likely includes formal
training in the academic world, such as undergraduate and
master's degrees; participation in
managerial training programs in individual companies; personal
efforts to improve skills through conferences, seminars,
professional reading, and online
research; and discussion with mentors and experts.
Finding the Right Person–Organization Fit
For most people, �inding the ideal workplace will not happen
with the �irst employment experience. It takes time and several
jobs to discover what someone
wants in a company. An individual may most value social
interaction, the work itself, the opportunity to be promoted, or
numerous other, less visible aspects of
organizational life. Figure 1.2 models the person–organization
�it concept. It implies that when an employee has found the
right employer, a series of bene�icial
outcomes emerge. Part of career management involves personal
awareness regarding what you think is important, combined
with seeking to �ind the company
that offers the best chance to achieve.
Figure 1.2: A person–organization �it model
The person–organization �it concept suggests that positive
outcomes occur when an employee �inds the right employer.

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A careful self-examination will be part of �inding the right �it.
Some people belong in a category called "cosmopolitans":
persons who �ind the greatest ful�illment
in serving the larger profession rather than a speci�ic
organization. "Locals" focus on succeeding within the employer
company (Goldberg, 1976). In �inding a �it
with an organization, cosmopolitans are suited to companies
that grant greater autonomy and derive recognition from the
external professional activities of
employees. Locals �it in most organizations, so long as
professional requirements do not eliminate them for obtaining
jobs or limit them from being promoted.
Continuous Improvement
Beyond lifelong learning, a successful career includes honing
personal skills, building relationships, and taking new
challenges as time passes. Improving
computer skills will make an employee valuable to a range of
employers. And individuals who take the initiative to learn a
foreign language and better
understand the customs of another country may be rewarded
with new assignments or business trips abroad.
Early in a career, one form of improvement might involve
�inding a mentor who is willing to help a young employee
navigate the challenges of a speci�ic company
and occupation. Later, continuous improvement involves
becoming a mentor to assist and develop others. These and other

relationships help make for a ful�illing
career based on more than mere on-the-job accomplishments.
AchievingBalance
Robert Dubin noted that some employees tend to view work as a
central life-interest while others do not. Part of career success
includes understanding the role
of work in your life. Then, achieving balance helps ensure that
work does not dominate to the point that personal time is lost or
cannot be enjoyed (Dubin,
Champoux, & Porter, 1975).
Experts in the �ields of stress management and time
management emphasize the importance of rest and taking a
mental vacation from the demands of work.
Finding ways to maintain a positive life away from work can
lead to improved productivity on the job and greater life
satisfaction in general. The opposite,
burning the candle at both ends, often results in burnout, a
shorter life expectancy, and a less successful career.
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Achievinga balance between work and personal time is
an
important career objective.
Hero Images Inc./Hero Images/SuperStock
Work-life balance has been the subject of scrutiny in popular

press advice as well as in a great
deal of academic research. The concept has been linked to
levels of job satisfaction as well as
overall organizational performance (Beauregard & Henry, 2009;
Abendroth & Dulk, 2011).
In summary, a series of steps must be taken to build a personal
career. Success begins with
�inding an organization that provides a good personal �it.
Then employees can tend to their
evolving assigned tasks while also enhancing personal attributes
that are of value to the
companies they work for. The �inal building block, �inding a
balance between life at work and
away from the of�ice, helps guarantee that at the end of a
career, the individual can take
satisfaction in a job well done and a life well lived.
Beyond these aspects of personal career enhancement, one
pervasive issue exists: the role of
personal ethics. Every part of an organization's operations is
affected in one way or another
by ethical dilemmas. In organizational behavior, personal
conduct, methods of employee
training, evaluation, and personnel decisions (hiring, �iring,
promoting) can be tinged by
unethical actions by individuals or an environment that ignores
or even encourages such
behaviors. Career success and personal outcomes, in many
ways, begin and end with
individual decisions regarding how to respond to ethical
challenges, many of which are
presented in the coming chapters. At this point, consider how
ethical concerns affected one
company in OBin Action: Wells Fargo.

OB in Action: Wells Fargo
Sometimes the actions of executive management may not seem
clearly linked to what takes place at the operational level. At
best, this lack of connection
can confuse employees or external stakeholders. At worst, it can
re�lect an organization in crisis.
In the fall of 2016, Carrie Tolstedt, a key of�icial at Wells
Fargo who over saw the consumer banking unit, resigned her
position, for feiting millions of
dollars in compensation and bonuses. And following blistering
criticism by, among others, Senator Elizabeth Warren, Wells
Fargo CEO John Stumpf also
turned down $41 million in stock awards (Egan & Wattles,
2016).
These dramatic events were precipitated by a program created
by Wells Fargo top management in an effort to stimulate
company growth. The program
was an employee incentive system designed to increase the
number of accounts individual Wells Fargo customers held. At
the time in the banking
industry, the average number of accounts a single customer held
with one �inancial institution was three. The goal at Wells
Fargo was to increase that
number to eight because, in the words of one executive, "Eight
rhymes with great." That is, the more accounts a customer held,
the more money the bank
could collect in interest and fees potentially.
Unable to persuade enough customers to open more accounts
and feeling the pressure to meet the new goal, many employees
resorted to tactics such as
creating small new checking or savings accounts for customers
without their knowledge. Accounts were opened and then closed

not long after, often
leaving the customer responsible for small �inancial penalties
and charges for checks that had bounced. Other employees
created credit card accounts for
customers without informing them. Many employees reported
fears of being terminated for failing to meet objectives, and
some begged friends and
relatives to open accounts to help them meet their quotas.
Some employees felt uncomfortable with the program as soon as
it was implemented. One employee reported that he reported his
concerns to an ethics
hot line and was soon terminated. Such less than subtle pressure
undoubtedly had an impact on other employees (Egan, 2016).
When the problems began to surface, Wells Fargo responded by
terminating more than 5,000 employees who had created at least
two million bogus
accounts. Several employees later reacted by �iling a lawsuit
against the company for basically coercing them to behave
unethically and illegally.
Damage to Wells Fargo took the form of a sharp drop in stock
price as well as a barrage of negative publicity. It may take
years for the organization to
bounce back from what was essentially a motivational program
rooted in questionable goals and granting objectionable
rewards.
Re�lection and Application Questions
1. Who is the most responsible for the unethical acts in this
scenario, low-level employees or top-level managers?
2. If you were an employee at Wells Fargo who encountered this
program, how would you respond?
3. What can the executive management team at Wells Fargo do

to restore employee, consumer, and governmental con�idence
in the company?
Which organizational behavior concepts apply?
4. Would you be willing to go to work for Wells Fargo? What
would the company need to do to entice workers to apply in the
future?
Build and Maintain a Personal Moral and Ethical
Code
As the experience at Wells Fargo indicates, employees often
encounter situations in which they are forced to respond to
mandates posed by others that violate
personal moral principles. The many examples of legal and
ethical violations presented in this book, along with other
similar challenges that arise in one's career,
enhance the value of developing and maintaining a personal
code of ethics. Many organizations provide tools to assist in
dealing with ethical dilemmas; however,
an advisable �irst step is for each person to consider what he or
she believes are acceptable and unacceptable behaviors prior to
commencing any career or
joining any organization.
Managerial Skills
While the world of business has changed dramatically over the
past several centuries, certain aspects of management remain
largely the same. One continuing
aspect is the basic distinction between managerial levels. At the
core of nearly every company, there are three levels of
management:
�irst-line supervision (operational managers)
middle management (tactical managers)
top management and CEO (strategic managers)

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Over time, as individuals move within the ranks of an
organization, their orientations, duties, and required skill sets
evolve. Concepts derived from
organizational behavior can assist in acquiring and re�ining the
talents needed to succeed at each level.
For most employees, the �irst position taken in a company will
be at either the entry level as a line worker or as a �irst-level
supervisor or manager trainee. Over
time and with promotion, the primary focus and duties at each
level of management shift along four dimensions (Guest, 1956):
technical, conceptual, managerial orientation
speci�ic versus general tasks
time orientation: short- versus long-term
degree of human relations orientation
First-line supervisors and operational managers are far more
likely to be concerned with speci�ic, technical matters. An
of�ice manager in a physician's practice
will be consumed with making sure that the paperwork
associated with billing patients, �iling insurance claims,
ordering medical equipment, and other
medically-related tasks are correctly completed. A line manager
in a manufacturing plant will concentrate on quotas, deadlines,
and defects associated with
production. A department manager in a retail store spends a

great deal of energy managing inventories, creating ingenious
displays, teaching effective selling
techniques, and engaging in other on-the-�loor activities.
In essence, the managerial orientation rests with the task at
hand. Not surprisingly, then, the focus largely remains short
term. Deadlines must be met,
paperwork must be completed, employee schedules must be
�illed out, and other matters that take place in the coming
weeks or months receive the greatest
amount of attention. At the same time, a �irst-line supervisor
spends signi�icant amounts of time working directly with
people. In this area, concepts learned
from organizational behavior are of great value in completing
the more technical, speci�ic, and short-term elements of the
job, especially in the areas of
motivation, leadership, communication, problem solving, and
con�lict resolution.
Middle managers and tactical managers oversee sets of
departments or operations. They often hold titles such as plant
manager, division head, or operations
manager. The increasingly complex nature of meshing various
tasks and operations together requires more complex managerial
thinking skills that move away
from speci�ic tasks to more general processes. Also, even
though immediate outcomes remain important, the middle
manager is often asked to think about
tactical, mid-range subjects, such as plant modernization,
acquisition and application of new technologies, or shifts in
marketing methods. The decisions have
implications that last much longer than the short term. Middle
managers also engage with other people, and the roles they play
are more complex. The concept
of "having a boss while being a boss," or the superior–
subordinate syndrome, indicates that middle managers must

understand when they have authority and
when they do not. They must know how to effectively lead and
follow. A wider range of human relations skills becomes
necessary.
Organizational behavior may be especially helpful to middle
managers in two areas. The �irst evolves from applying
knowledge to various situations, which
improves a person's conceptual thinking skills while completing
longer-range projects. The second results from a greater
understanding of maintaining quality
relationships with people of higher and lower rank.
Top-level managers, strategic managers, and the chief executive
of�icer encounter a vastly different set of responsibilities that
require a different orientation
from other managerial levels. Top managers must see the big
picture. They are required to understand how all parts of an
organization's operation are brought
together in a smooth, ef�icient, and effective manner.
Therefore, conceptual skills and managerial skills are at a
premium. Daily routines are more general,
consisting of a series of managerial roles that must be played.
Table 1.3 displays Henry Mintzberg's classic set of roles played
by top managers.
Top-level managers think strategically. Issues that will arise in
the long term deserve attention by those in charge of moving the
company forward into the next
decade. Interpersonal skills remain a vitally important resource,
as a manager interacts with employees, suppliers, customers,
government of�icials, the general
public, union leaders, and other publics. Public speaking skills
are a major asset at this level.
In summary, managerial orientation requires technical skills at

the lowest ranks that evolve into more conceptual challenges as
the person is promoted to middle
and top management. Managerial skills are present at all levels,
while the managerial tasks performed are somewhat different.
The job itself shifts from a
speci�ic set of tasks to more general duties at higher levels,
and the amount of time spent planning increases. Organizational
behavior offers training, models, and
concepts that can assist a manager at any rank in the
organization, especially in the area of interpersonal relations.
Table 1.3: Roles played by top managers and
the chiefexecutive of�icer
Interpersonal roles
Figurehead attends ceremonial, symbolic events
Leader acts as visible director of activities
Liaison interacts with internal departments and external publics
Informational roles
Monitor collects information internally and externally
Disseminator transmits information to internal constituents
Spokesperson transmits information to external constituents and
publics
Decisional roles
Entrepreneur develops new ideas, concepts, products, and
brands

Disturbance handler deals with unforeseen events and crises
Resource allocator spends resources and designs/signs budgets
Negotiator completes contracts with unions, suppliers, buyers
Sources: Henry Mintzberg(1973). The Nature of
Managerial Work. New York, NY: Harper & Row;
Henry Mintzberg(1975). The Manager's Job,
Folklore and Fact, Harvard Business Review, 53 (4),
pp. 49–61; Arthur G. Bedeian (1986).
Management. Chicago, IL: The Dryden Press.
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The evolution of the workplaceis always subject to
all
manner of external forces. For instance, the
election of the
�irstAfrican-American president, Barack Obama, marked

a cultural precedent that has impacted the entire
nation.
Everett Collection/Everett Collection/SuperStock
1.5 Management and Organizational Behavior in the
21st Century
The concepts presented in the previous section can help an
individual build a foundation for a successful career. Ideas
regarding training and preparation,
�inding the right person–organization �it, seeking continuous
improvement, achieving work-life balance, and building a
strong personal and moral ethical code
have been emphasized by management writers for several
decades. They remain as key ingredients in the quest to enjoy a
high quality work life and professional
career. More recently, however, these activities, while clearly
valuable, should be supplemented by an understanding of and
adaptation to the new challenges and
opportunities that have arisen in the workplace, in individual
companies, and in the global arena.
The �ield of organizational behavior has been affected by
several trends. The areas that stand out include an evolving
workplace as well as globalization. Each
alters what is taught in an organizational behavior course and
its application in the world of business. They also in�luence
personal training and preparation,
seeking continuous improvement, �inding the right
organization, and they contain new ethical challenges. In
essence they constitute new factors that play roles
in achieving success in today's world of work and in
successfully managing in such rapidly evolving circumstances.
The New and Evolving Workplace

Traditional principles of management textbooks examine �ive
main forces present in the non-
controllable external environment that demand a manager's
attention: political, social,
economic, technological, and competitive. The 21st century has
already witnessed dramatic
shifts in each of these areas. From the election of the �irst
African-American president to the
most recent presidential election, the political arena continues
to evolve. Numerous social
trends affect culture, business, and everyday life. The Recession
of 2008 increased
unemployment and profoundly in�luenced many companies.
Technology introduced a
sweeping number of new products and product features that
have made the pace of business
even faster. Competition has shifted to a worldwide
marketplace.
The rate of change in the world of business continues to
increase. Only a few decades ago,
overnight package delivery was not possible. Contracts and
documents traveled via the postal
system, making any transaction take longer to complete. Air
travel was the fastest mode of
transportation, but now, with teleconferencing and other
devices, interpersonal meetings
with people around the world take place in real time. Terms
such as "tweet" and "going viral"
did not exist. Managers in the 21st century are expected to
complete their functions while
coping with a series of trends and changes in the workplace,
including the following:
innovation and change
connectivity and networked organizations

employment of temporary workers
Innovation and Change
Technology's impact tends to be widely discussed and
evaluated. New technologies have changed everyday lives of
people, both at work and off-site. An
evaluation of technology would suggest that technological
innovation comes in many forms, including those displayed in
Figure 1.3.
Managers are expected to adapt to an increasing number of
changes. The emergence of 3-D printing is likely to create
dramatic effects on a variety of industries,
from medicine at one extreme to the building of weapons at the
other. Digital technologies have rapidly transformed various
entertainment companies, from the
production and delivery of music to television programs and
movies. Technology also in�luences how employees interact,
via social media and other devices
rather than in-person, as well as how entire companies transmit
information to employees and customers.
Figure 1.3: Technology and change
As technology changes, managers are expected to adapt. This
�igure presents examples of recent technological advances
that impact the business environment.
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(http://www.shingo.org/)
At the same time, in terms of change, technology only
represents part of the equation, especially in the workplace.
Dramatic changes continually take place in
four additional areas: political and legal forces, social trends,
economic shifts, and competitor actions.
The political and legal environment is in a constant state of
�lux. Laws regarding privacy, identity protection, and other
personal matters in�luence what
managers can and cannot examine. Medical records may be
increasingly available but should not be viewed by anyone other
than licensed physicians and
medical personnel. In 2011, challenges to the rights of unions
were made by legislatures in both Ohio and Wisconsin. As the
political landscape shifts, other
regulatory changes that affect employees can be expected.
In the interaction between the social and legal environments,
the 2015 Supreme Court decision regarding same-sex marriage
has changed the landscape for
many companies and their employees. Other court actions
regarding responsibilities for providing insurance, especially
for personal issues such as birth control,
have created con�lict and controversy. In addition, diversity
and illegal immigration issues persist in the national
consciousness. Managers are expected to go
beyond understanding the questions surrounding these issues to
�ind workable solutions.
Economic forces have an impact on national and international
companies, and are frequently in �lux. Downturns and layoffs
were prevalent in the early part of
the 2000s. Deciding who to rehire and when is one of many
managerial considerations affected by economic conditions.

Competitive forces continue to change the jobs managers
perform. They are expected to respond to competitive efforts in
the areas of acquiring customers and
making sales, but also in terms of hiring and keeping the best
workers, obtaining loans in competitive lending situations, and
developing and adapting
relationships with the best suppliers.
Connectivity and Networked Organizations
Another category of trend that managers must adjust to is in the
realm of connectivity and networked organizations. The virtual
workplace, in which
employees and departments are connected digitally, is a recent
innovation in the world of business. Networked organizations
establish high-speed connections
between members of the company around the world. This type
of connectivity makes it possible to manage a �irm more
ef�iciently. Employees have vital
information at their �ingertips. Better decisions can be made
without the same level of speculation and lost time that took
place previously.
A networked company can better serve employees and
customers. Use of cloud computing enables individuals and
organizations to collect and store information
in new ways. For example, a service employee with access to
customers' preferences and shopping patterns can better address
their needs. The employee will
have access to information about previous contacts with the
customer, both positive and negative. Entire organizational
records regarding a variety of company
functions can be stored on the cloud.
Many �irms have virtual connections with other companies.
Project management may be shared by two cooperating �irms.

Other companies submit orders,
create packing labels, track shipments, send bills, and receive
payments electronically. The virtual workplace means that two
individuals do not have to be in the
same room to work together. The rapid growth of mobile
technologies makes it possible to make contact with others
around the world in an instant.
The potential problem with connectivity is inundation with too
much information and too many messages. Any manager who is
away for a week returns to an
onslaught of emails that have backed up. Messages may become
lost when too many arrive at the same time. Further, computer
hacks into company systems
cause serious problems and concerns for managers and their
employees.
http://www.shingo.org/
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Globalization has changed and continues to change
the
landscape of business in the United States and
abroad.
Oliver Burston/Ikon Images/SuperStock
Personal privacy issues have grown, as many �irms maintain
large amounts of information about individual employees and
customers. At times such information

is sold to other companies or is taken by hackers for purposes of
exploitation.
At the least, the 21st-century manager will be expected to use
connectivity in daily work activities. Connectivity will
in�luence how managers do their own work
as well as how they interact with employees, customers, and any
other individuals who make contact with the company.
Employment of Temporary Workers
Many 21st-century managers also cope with a less stable work
force. Firms hire temporary workers to reduce labor costs and
cope with economic downturns.
These individuals are not entitled to the same bene�its as full-
time, permanent employees. To the manager, the challenge is
constant training and making sure a
temporary worker is able to perform assigned tasks. The
individual will be less loyal to the company and not share the
same degree of mental involvement. Most
temporary workers will have less experience at a given task and
reduced knowledge about the employer �irm. Managers can
expect to be involved in more
hands-on, day-to-day direction of these types of workers.
It is nearly impossible to keep up with or predict what will
happen in the coming years. Popularity and usage of the various
social media platforms is in constant
�lux, and improvements in these technologies are introduced
nearly every day. Each of the trends noted in this section, from
changes in the workplace to
increased connectivity, increased use of temporary workers, and
greater challenges to the work-life balance, may evolve into
some new form. Just as many
television providers are beginning to offer 3-D programming,
the impact of technology on the workplace and the nature of the
managers will continue to

progress.
Globalization and Global Management
The reach of even the smallest business has changed. The
Internet and improved shipping capabilities have made it
possible for smaller companies to attract
customers around the world. At the same time, global
conglomerates continue to adapt and expand. Mergers,
acquisitions, partnerships and trade relationships,
and a growing number of trade agreements among nations have
affected the ways in which business is conducted.
Globalization has a noticeable impact on the availability of
products and services to
customers. The rising number of product choices has improved
the standard of living for
many people. The spread of mobile communications products
serves as an example. People
around the world have access to cell phones and the Internet
through handheld devices. As
the new century unfolds, the trend toward a greater number of
product choices will continue
(World Trade Organization, 2011).
The global marketplace also affects how managers operate. A
series of new challenges awaits
anyone interested in conducting international business,
especially in the area of human
resources. Managers engaged in international trade can expect
to encounter issues in the
following areas:
selection of home- versus host-country employees and managers
understanding of how cultural and language differences
in�luence business activities

reaction to international trends
Employee and Manager Selection
An organization's general strategic approach forms the basis for
all other business operations.
It affects many of the company's business activities, including
employee selection processes.
Each �irm exhibits one of three mindsets: ethnocentric,
polycentric, or geocentric. Each
presents a set of options (Baack, 2005).
In the �irst approach, ethnocentric management, home-country
employees will be selected and
trained for overseas assignments. The strategy is often preferred
by companies exporting to
regions with the same or a similar culture. For example, a
Canadian company might hire
someone and train that individual for assignments in the United
States and Great Britain,
simply because it would be the easiest choice. Persons in those
countries speak the same
language and practice the same or similar religions. The
relatively low level of cultural
adaptation required makes it possible to simply assign a current
employee to one of these
new international locations. Such individuals are called
"expatriate employees," or "expatriate
managers" when they serve in supervisory roles. Some
expatriates require training in a
foreign language and must have an open mind regarding cultural
differences. For example, an
expatriate manager assigned by a U.S. company to a branch in
France would �ind it useful to
speak French and to understand the nuances of life in that
country. Such nuances are not signi�icantly different in many
ways from those in the U.S. but still do

exist.
A second option, polycentric management, involves hiring
someone from the target host country. These individuals have
the natural advantage that comes from
knowing the culture of the host country. They will need to be
trained to understand how the home country's business operates,
including managerial practices.
They might discover that the leadership style is different and
that the company will need to respond to motives and incentives
that differ from those that drive
local companies. In polycentric organizations, people in the
�irm may communicate differently. In essence, they do not
have to adapt to a new country, but rather
to a new company.
Some companies employ geocentric management, in which
third-party nationals are often hired. These employees are not
citizens of the home or host country.
At times, someone with a truly international point of view has
the greatest advantage. They can adapt to a wider range of
cultural variations.
Cultural and Language Differences
Business is conducted in diverse ways, depending on the culture
of the country. Successful business people investigate these
differences prior to visiting a
foreign land. Some examples of cultural nuances include
activities such as building relationships before talking business,
dining and meals as part of the business
interaction, gift-giving protocols, the use of titles and surnames,
and even presenting a business card.
The �irst requirement for any international assignment is
acceptance that there will be differences in culture. Culture
shock is a feeling of disorientation that

often occurs when an individual �irst arrives in a new country.
Many customs will seem different, beginning with something as
simple as a greeting (a bow versus
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Effective managers must stay abreast on major
geopolitical events, such as the United Kingdom's
exit
from the European Union in 2016. Events like
this one,
which is colloquially named "Brexit," have
implications for
organizations all over the world.
Richard Levine/age fototstock/SuperStock
a handshake). Cultural sensitivity is the ability to understand
and accommodate individuals from other cultures. It includes
awareness of differences in religion,
manners, dining and foods, and other matters associated with
everyday living and the conduct of business. Those who do not
or cannot accommodate other
cultures exhibit ethnocentrism, or the belief that one's culture is
inherently superior to others. Such individuals will experience
major problems on
international assignments.
Language skills are useful in many international business
relationships. At the least, knowing how to greet someone in his

or her native language often begins a
transaction on a much more cordial note. Those who know a
second language have a distinct advantage in today's
employment marketplace, and in general,
international business includes adaptation to foreign languages.
Someone from France conducting business with a person from
the United States will need to
�ind a language that both can understand. Slang complicates
the issue of language barriers. Even someone trained to speak
French will soon discover that natives
use a great deal of terminology not taught in formal classes.
Additional barriers to international communication include
(Baack, Harris, & Baack, 2012) the
following:
not knowing if it is appropriate to address someone directly or
to speak in a deferential manner
not knowing whether it is culturally acceptable to make eye
contact or avert one's eyes
displaying ethnocentrism and stereotyping of other cultures
failure to understand differences in the meanings of nonverbal
cues
not knowing how to deal with personal space issues
not comprehending the use of symbols and cultural icons
Successful international managers are aware of differences in
communication patterns. They then adapt in ways that make
business transactions comfortable
while reducing the potential for con�lict and misunderstanding.
Ethics awareness, another key aspect of cultural difference,
means being aware that cultural values and methods of
conducting business vary. What might be
considered a gift in one country will be viewed as a bribe in
another nation. Many countries allow bribery and allow the
amounts given to serve as tax write-offs.

Gender roles are substantially different in various parts of the
world. In some cultures, women may not be allowed to speak or
take part in business transactions.
Labor laws do not protect workers in many nations, which
means child labor is used, living wages are not paid, and safety
procedures are limited or do not exist.
Each individual and company decides what is acceptable and
what is not (Baack & Baack, 2009). Many companies employ a
cultural assimilator to assist in
these matters. The assimilator is someone well versed in the
local culture who helps others adapt to the foreign situation.
Evolving International Trends
In 2011, a series of nations in the Middle East experienced
upheaval. Egypt, Syria, Bahrain,
Iran, and other countries underwent protests and attempts to
transform local governments.
At about the same time in the United States, anti-Muslim
sentiment rose to new heights, as
evidenced by the negative reaction many had to the construction
of an Islamic activity center
in New York City, near the site of the World Trade Center.
More recently, the decision by Great Britain to leave the
European Union (Brexit), the in�lux of
refugees from Syria into numerous other countries, the growth
and in�luence of ISIS (or ISIL),
combined with numerous terrorist attacks around the globe have
increased sensitivities
regarding activities as basic as visiting foreign countries and as
complex as the seeking to
engage in international trade. The Trans-Paci�ic Partnership
(TPP) agreement became a
contentious issue in the 2016 election cycle, as some in the
United States opposed the
agreement while others favored it.

Any political or economic event that in�luences another
country has a potential impact on
international business relationships. Effective global managers
consider these events and try
to understand how their company's interests may be affected.
Political knowledge includes
keeping up with current events and seeking counsel to
understand how those events affect
business operations. Many times, political con�licts result from
cultural misunderstandings
and ethnocentrism.
Organizational behavior can be expected to change with
increasing globalization. A greater
amount of research will be dedicated to understanding cultural
differences. The GLOBE project is a research program in the
area of leadership that addresses
cultural nuances. The project is made up of scholars from 61
different cultures who are working together to develop a theory
of how cultural variables affect
leadership and organizational processes throughout the world.
Other programs will undoubtedly be designed to help employees
cope with international
assignments (Hill, 2003).
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Summary and Resources
Chapter Summary
Organizational behavior (OB) is the investigation of the
behavioral factors that affect modern organizations and their
management at the individual, group, and
organization-wide levels.
Organizational behavior includes concepts from the �ields of
psychology, social psychology, sociology, organization theory,
human resource management, history,
research methods and statistics, and anthropology. OB is a
hybrid �ield that incorporates ideas from these and other
disciplines.
Historically, the scienti�ic management approach came �irst.
Frederick W. Taylor developed the principles that merged
scienti�ic concepts with the practice of
management. Frank and Lillian Gilbreth incorporated the
principles to create the time and motion study. Henri Fayol
wrote about planning, organization,
staf�ing, directing, and controlling at about the same time.
Scienti�ic management was challenged by the human relations
movement, beginning with the work of Mary Parker Follett. The
Hawthorne studies, Maslow's

views of humanism, and the concepts found in Theory X and
Theory Y followed.
Modern management and organizational behavior approaches
include systems theory, contingency theory, and positive
organizational behavior.
Management is accomplishing work and organizational goals by
assisting, training, and leading others. Self-management
personal goals. Self-management requires training, preparation,
�inding the right person–organization �it, continuous
improvement, achieving balance, along
with building and maintaining a personal moral and ethical
code.
Managerial skills need to evolve as a person is promoted from
�irst-line supervision to middle and top management roles.
Technical, conceptual, and managerial
orientation change, tasks move from speci�ic activities to more
general work, the manager's time orientation tends to move
toward the longer term, and the
degree of human relations orientation evolves as a person moves
upward through the organization's ranks. Top-level managers
engage in interpersonal,
informational, and decisional roles.
The �ields of management and organizational behavior have
been in�luenced by elements of the non-controllable external
environment. These include rising
levels of diversity in the workforce, new ethical challenges, an
evolving workplace and increasing globalization. The evolving
workplace has witnessed higher
levels of connectivity and networking among individuals on the
job. Social media and other technologies continue to in�luence
the ways in which people work.

Further, all employees and managers will be exposed to cultural
differences, both within a country and in dealings with
individuals and organizations from other
nations. Language skills and cultural sensitivity become
valuable assets in those settings.
CASE STUDY: The New Supervisor
Jose Torres drove to work for his new assignment with a big
smile. He was excited about becoming the manager of a mobile
phone retail store. His duties
included serving customers, problem solving, creating an
inviting store environment, training and motivating the other
salespeople, tracking inventory,
and designing special events. Even though he was 26 years old,
and two of his employees were over 30, Jose was ready for the
challenge.
Within a week, the smile was gone. Jose quickly discovered that
the two older workers were more than willing to take shortcuts.
Some of the things they
said to customers bordered on being false, or misleading at best.
The two employees also would count sales until the monthly
quota was reached, and
then "bank" any extra to get a good start on the next month.
This hurt the store's potential pro�itability statements and
would make Jose look bad.
Jose's boss, Marcia, deemed herself "old school." She warned
him that her view was that retail store employees were only
there because they couldn't �ind
or hold better jobs. She expected them to cheat on quotas and
basically "live down" to her expectations. "The only thing that
keeps them here is a
paycheck, so you'd better use it to your advantage. You can
always cut their hours or schedule them at times when there is

less traf�ic—to make the point
that you are in charge."
Marcia's advice ran counter to what Jose believed. He knew that
the economy was tough, which may have led some to take jobs
that were not the best �it.
At the same time, he sincerely believed no one takes a job
wanting to fail.
Unfortunately, it was not long before Jose began hearing that
some employees complained that they were working at Taco
Bell, partly due to his ethnic
background and because a greater number of Hispanic
customers had begun to visit the store. Other ethnic slurs
followed. Although he was never
confronted directly, it was clear that most of the workforce did
not respect him. Jose observed that most of the disrespect came
from male employees.
Jose called a meeting. He handed each employee a review of his
time with the company. It showed that he had set sales records
nearly every month in his
previous store, where he was not a supervisor. He told them that
it was possible for each one of them to raise their sales and
increase their bonus checks,
if they would simply listen to his counsel. One of the older
workers responded, "That will never happen. Even if we sell
more, Marcia �igures out a way to
make our pay come out the same." It was clear that some kind
of change was in order.
Case Questions
1. Describe Jose's basic workplace philosophy. Does it �it this
situation?
2. What organizational behavior concepts apply to management?

To employees?
3. What type of leader is Marcia? Does her style make better
sense for this company?
4. How could Jose build a better environment in the store? Or
should he simply terminate the workers and start over?
Review Questions
Click on each question to see the answer.
De�ine organizational behavior.
(http://content.thuzelearning.com/books/Baack.3633.17.1/sectio
ns/cover/books/Baack.3633.17.1/sections/cover/books/Baack.36
33.17.1/sections/cover/books/Baack.3633
Organizational behavior (OB) may be de�ined as the
investigation of the behavioral factors that affect modern
organizations and their management at the
individual, group, and organization-wide levels.
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er/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.
1/sections/cover/books/Baack.3633.17.1/sections/cover/books/B
aack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/
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What academic disciplines are related to
organizational behavior?
Organizational behavior includes concepts from the �ields of
psychology, social psychology, sociology, organization theory,
human resource management, history,
research methods and statistics, and anthropology.
De�ine scienti�icmanagement. Who �irstproposed the
principles of scienti�icmanagement?
Scienti�ic management merged classic scienti�ic principles
with what was known about the practice of management. It was
proposed by Frederick W. Taylor.
What is a time and motion study?

A time and motion study involves the use of a stopwatch or
�ilm to develop more ef�icient methods of completing work
tasks.
What were the primary �indings of the Hawthorne
studies?
The subjects responded to positive and pleasant interactions
with researchers by increasing productivity rates on the job.
Some of the tasks performed by supervisors were eventually
assumed by entry-level employees, who also generated higher
levels of production, because
the workers found the experience to be "fun" and free of anxiety
about being disciplined for poor performance.
Workers tended to form groups that were cohesive and loyal to
one another. Anyone who overproduced became a "slave" or
"speed king" who was
derided and even physically punched in the arm ("binging") by
group members. Anyone who failed to do his fair share of work
was labeled a "chiseler"
and admonished to keep up with the group.
What is humanism? How did beliefs about
humanism affect the �ields of management
and organizational behavior?

Humanism is the belief that the inner nature of a person is
inherently good and that life is the process of "getting better."
Scienti�ic management, which relied on
money and fear as primary motives, was being supplanted by
newer, more positive views of employees. Human relations
theories incorporate the concept that
positive employee attitudes, combined with praise and
recognition by supervisors and interesting work, can contribute
equally to workplace motivation and
productivity.
What are the assumptions and conclusions of
Theory Y?
Theory Y assumes that wanting to work is natural, people seek
responsibility, people enjoy autonomy, most employees are only
partially utilized in terms of
talents and abilities, and, given the opportunity, employees will
generate ideas to help themselves and the company. It concludes
that leaders should be people
oriented and that motivation comes from within the individual.
Explain the parts of a systems theory model in
terms of a business organization.
In a business system, inputs include raw materials, �inancial
resources, and human resources. The transformation process is
the company's production function,
including the assembly of physical products and the delivery of
intangible services. Outputs are the �inished, �inal goods and

services sold to the public. The
feedback mechanism provides correction and adjustment,
keeping the organization in tune with its environment. Control
systems, such as performance
appraisals of individual employees and annual accounting
statements for overall companies, are feedback mechanisms.
In terms of positive organizational behavior, what
roles do popular-press books and scienti�ic
research play?
Popular press offers a quick �ix. Positive organizational
behavior seeks to identify human resource strengths and
capabilities that can be measured, developed,
improved, and managed.
De�ine management and self-management.
Management is accomplishing work and organizational goals by
assisting, training, and leading others. Self-management
personal goals.
What ingredients help builda solid business career?
Self-management requires training, preparation, �inding the
right person–organization �it, continuous improvement, and

achieving balance.
What threelevels of management require quality
interpersonal skills?
First-line supervisor, middle management, and top-level
management.
What are the four managerial orientations and
duties that shift by hierarchical rank in a
company?
Technical, conceptual, and managerial orientations change,
tasks move from speci�ic activities to more general work, the
manager's time orientation tends to
move toward the longer term, and the degree of human relations
orientation evolves as a person moves upward through the
organization's ranks.
What global management skills are vital to
21st-century managers?
Skills include selecting home- versus host-country employees
and managers, adaptation to the local language, understanding
how cultural differences in�luence
business activities, and reacting to international trends.

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