OB Chapter 1

[Audio] Welcome to Caldwell University's BU633 Organizational Behavior for Managers. I'm a virtual Doctor Gary Lieberman and I will be presenting the lecture for this chapter. For the BU633 course we will use the 19th edition of the textbook, Organizational Behavior by Robbins and Judge. This is considered among the most widely used O B textbooks in the world. Robbins and Judge are recognized as definitive aggregators of O B concepts, applications, and practices. The course and this book will provide you with a resource that will benefit you throughout your degree program and your professional life. I hope you enjoy the presentation, let's get started..

[Audio] The first chapter entitled "What Is Organizational Behavior?" begins by defining seven learning objectives for the chapter. These lay a foundational understanding for the origins of O B and its applications in management and organizational existence. You should focus on this chapter to ground yourself, and as a starting place for the more complex and significant concepts throughout the book. We will elaborate on each of these objectives to ensure that you acquire a base knowledge of the core O B competencies..

[Audio] Managers need a cadre of skills to create a productive workplace, including technical and quantitative skills. However, leadership and communication skills are critical to organizational success. When managers have solid interpersonal skills, there are positive work outcomes for the organization. These outcomes include lower turnover of strong employees, improved recruitment pools for filling employment positions, and a better bottom line..

[Audio] A manager is someone in the organization who gets things done through the efforts of other people, while a worker is someone who contributes to the accomplishment of goals. It is important to keep in mind that an organization is defined as a social entity comprised of two or more people and can be found at any level within the organization. The work of managers revolves around four functions: planning, organizing, leading, and controlling. When thinking about these functions, one realization comes forward: that they all involve the interpersonal skills of communication for their effective implementation..

[Audio] Henry Mintzberg looked at management differently when he defined the 10 roles of managers. Notice though that they again involve implementation through the interpersonal skills of communication..

[Audio] In fact, if you look at the three categories of roles suggested by Mintzberg, interpersonal, informational, and decisional, you will note the distribution of communication and interpersonal skills such as tact, diplomacy, and the like, focus on both internal and external audiences in the role's activities. For this reason, developing the interpersonal skills introduced in this course is essential to the professional development of young professionals and is essential to managerial success..

[Audio] What skills do managers need to effectively achieve their goals? Researchers have identified several skills that set successful managers apart from their less effective counterparts. These include technical skills, human skills, and conceptual skills..

[Audio] Luthans and his research associates found that all managers engage in four managerial activities. Traditional management is decision making, planning, and controlling. The average manager spent 32 percent of his or her time performing this activity. Communication involves exchanging routine information and processing paperwork. The average manager spent 29 percent of his or her time performing this activity. Human resource management includes motivating, disciplining, managing conflict, staffing, and training. The average manager spent 20 percent of his or her time performing this activity. Networking is socializing, politicking, and interacting with outsiders. The average manager spent 19 percent of his or her time performing this activity..

[Audio] Managers who were high performing in these activities were found to be fast-tracked through organizational promotion. Data from the pie charts in the format activities: percentage is as follows. Results of average managers. Traditional management: 32 percent. Communication: 29 percent. Human resource management: 20 percent. Networking: 19 percent. Results of successful managers. Networking: 48 percent. Communication: 28 percent. Traditional management: 13 percent. Human resource management: 11 percent. Results of effective managers. Communication: 44 percent. Human resource management: 26 percent. Traditional management: 19 percent. Networking: 11 percent..

[Audio] Organizational behavior (O B) is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations for the purpose of applying such knowledge toward improving an organization's effectiveness. More specifically, O B explores motivation, leader behavior and power, interpersonal communication, group structure and processes, attitude development and perception, change processes, conflict and negotiation, and work design..

[Audio] Many people say that the ideas and concepts of O B are commonsense. However, the systematic study of O B has come closer to finding ways to predict the behavior of individuals and groups through an understanding of the situation and composition of the people. Evidence-based management (E B M) complements systematic study by basing managerial decisions on the best available scientific evidence. "Intuition" is a decision-making approach advocated by numerous managers and pundits. However, if we make all decisions with intuition or gut instinct, we are likely working with incomplete information. E B M and the systematic study of behavior enhance the understanding of these internal contributors to organizational behavior..

[Audio] The recent availability of "big data" shows promise for the field of O B, potentially providing evidence that can be used to support intuition and experience..

[Audio] O B is a behavioral social science that merges concepts from a number of different social sciences to apply specifically to the organizational setting at both the individual (or micro) and group (or macro) levels. The most significant social sciences are psychology, social psychology, sociology, and anthropology. Look at each for a moment..

[Audio] This exhibit shows the contributions made by other disciplines to the development of organizational behavior. Notice the predominant areas of psychology, social psychology, sociology, and anthropology. Each of the disciplines has contributed specific concepts and theories to the study of O B and its increasing applications. The predominant areas of behavioral science are psychology, social psychology, sociology, and anthropology. Psychology contributes to learning, motivation, personality, emotions, perceptions, leadership effectiveness, job satisfaction, individual decision making, attitude measurement, work stress, performance, ethical and unethical behavior, creativity and health. This then flows to the individual unit of analysis. Social psychology contributes to behavioral change, attitude change, communication, group processes, group decision making, diversity, justice, communication, power, conflict, intergroup behavior and politics. This leads to group analysis. Sociology contributes communication, power, conflict, intergroup behavior and politics which leads to group analysis and formal organization theory, organizational technology, organizational change, organizational culture and organizational climate which leads to organizational system analysis. Anthropology contributes to comparative values, comparative attitudes and cross-cultural analysis that leads to the group analysis and organizational culture, organizational environment and power that leads to organization system analysis. The individual, group and organizational system analyses leads to the output of studying the organizational behavior which in turn leads to the following applications: training, performance appraisal, employee selection, and work design..

[Audio] Psychology focuses on the individual level by seeking to measure, explain, and sometimes change behaviors in individuals. This area of study offers insights into such areas as learning, training, decision-making, and employee selection. Social psychology moves beyond individual analysis to look at group behavior and how individuals can influence one another. It blends together sociology and psychology and looks primarily at change, communication, and group interactions..

[Audio] Sociology looks at the relationship between people and their environment. Sociologists' main contribution to O B has been a better understanding of group behavior, particularly in formal and complex organizations. Another key area that sociologists contribute to in O B is organizational culture, a key factor in O B studies. Anthropologists study societies to learn about human beings and their activities. They help us understand the differences between different groups in terms of their values, attitudes, and behaviors..

[Audio] There are few absolutes in organizational behavior. When making decisions, you must always take into account the situational factors that can change the relationship between two variables. Every situation has the potential to have unseen factors or even known factors that can change rapidly. Opening your minds to detecting these changes and unseen factors, and to being ready with optional responses, is essential to effective management..

[Audio] As students of O B, we can investigate what factors lead employees to make various choices and how their experiences affect their perceptions of their workplaces. In turn, this can help us predict organizational outcomes. As shown in the O B Poll for example, the days when women stayed home because it was expected are just a memory in some cultures, while in others, women still face significant barriers to entry into the workplace. The horizontal axis is marked with years and ranges from 1970 to 2025 in increments of 5. The vertical axis is labeled with the percentage of working men and women and ranges from 30 percent to 100 percent in increments of 10 percent. The approximate data from the graph is as follows. The line for men starts from 76.2 percent in 1970 and has a decreasing and fluctuating trend till 69.1 percent in 2018. The lowest peak is at 62.5 percent in 2010. The line for women starts at 40.8 percent in 1970, grows with fluctuations and increases gradually till 57.1 percent in 2018..

[Audio] We are seeing more and more heterogeneity in the workplace. Managers today need to embrace diversity and find ways to manage it effectively. The changing demographics have shifted management philosophy in a way that recognizes and utilizes differences to create productivity, profitability, and welcoming workplace cultures..

[Audio] Globalization means that organizations now exist in an environment with no national borders. As a result, the manager's job has changed. Managers today need to have a broader perspective when making decisions. As foreign assignments increase, you will need to be able to manage a workforce that is different than what you may be used to, and which may bring different needs, aspirations, and attitudes to the workplace. You will also have individuals who come from different cultures coming to work in your own country. You will need to find ways to accommodate their needs and help them assimilate to your workplace culture. As more jobs move to countries with low-cost labor, managers will need to balance the needs of their organizations with the needs of the countries in which they operate. In the new global village, managers need to understand the implications of differing cultural and legal practices on their operations. Violating local regulations and practices could have serious consequences for the organization..

[Audio] Social media is a difficult issue for today's manager, presenting both a challenge and an opportunity for O B. Advances in technology have facilitated a virtual workplace, but in doing so, new challenges are created. For example, virtual workers may feel that they are not part of the team. Achieving a work–life balance is harder in an "always-on" culture..

[Audio] Increased scrutiny by society and governmental entities has increased business concerns with ethical behavior. Lapses in ethical behavior have resulted in everything ranging from public sanctions against businesses to legal penalties against a firm and its managers. Ethical dilemmas require managers to make decisions involving right and wrong conduct. Managers and leaders must clearly define what constitutes appropriate, ethical behavior by the organization and its people, and they must lead by example..

[Audio] Committing to corporate social responsibility (C S R) has become increasingly important in the working world. C S R is good for the planet and for people. In fact, C S R positively affects worker attitudes, turnover intentions, and performance. It can encourage workers to identify more strongly with their organizations and experience a sense of meaningfulness. CSR also positively impacts the bottom line. Keep in mind though, that not all efforts are equally meaningful for employees, even though participation is often expected or even prescribed. Pressuring people to engage in C S R when it's not a good fit for them can backfire..

[Audio] Creating a positive work environment has been found to be a basis for employee satisfaction, increased productivity, and longevity of skilled personnel. Positive organizational scholarship studies what is "good" about organizations..

[Audio] About one-fifth of American workers are part of the Gig Economy. For many workers, this translates into financial instability, job insecurity, and career path uncertainty. At the same time, the autonomy inherent in the Gig Economy gives many workers flexibility in their location of work and their schedule..

[Audio] About one-fifth of American workers are part of the Gig Economy. For many workers, this translates into financial instability, job insecurity, and career path uncertainty. At the same time, the autonomy inherent in the Gig Economy gives many workers flexibility in their location of work and their schedule. Categories of employment lists the following: employed, underemployed or underutilized, re-employed, unemployed or jobless, entrepreneur, retired, job seeking, furloughed, and laid off. Types of employment lists the following: full-time, part-time, flextime, job share, contingent, independent contractor, temporary, reduced hours and intern. Places of employment lists the following: anchored in office or cubicle, floating in shared space, virtual, flexible and work from home. Conditions of employment list the following: Local, expatriate, short-term assignee, flexpatriate, international business traveler, visa employee, and union or nonunion employee. Compensation for employment lists salary, hourly, overtime, bonus, contract, time off, and benefits..

[Audio] Managing during crises is just as hard, if not harder, than managing during good times. In good times, managers focus on how to reward, satisfy, and retain employees. In bad times, the focus shifts to issues like stress, decision making, and coping..

[Audio] This textbook proposes three types of variables—inputs, processes, and outcomes—at three levels of analysis: individual, group, and organizational. The basic O B model here proceeds from left to right, with inputs leading to processes and processes leading to outcomes. Notice that the model also shows that outcomes can influence inputs in the future. The basic O B model proceeds from left to right, with inputs leading to processes and processes leading to outcomes. The outcomes can influence inputs in the future. Data from the inputs is as follows. Individual level lists diversity, personality and values. Group level lists group structure, group roles and team responsibilities. Organizational level lists the structure and culture. Data from the processes is as follows. Individual level lists emotions and moods, motivation, perception ad decision making. Group level lists communication, leadership, power and politics, and conflict and negotiation. Organizational level lists human resource management and change practices. Data from the outcomes is as follows. Individual level lists attitudes and stress, job performance, citizenship behavior and withdrawal behavior. Group level includes team performance. Organizational level lists productivity and survival..

[Audio] Inputs are factors that exist in advance of the employment relationships. For example, individual diversity characteristics, personality, and values are shaped by a combination of an individual's genetic inheritance and childhood environment. Group structure, roles, and team responsibilities are typically assigned immediately before or after a group is formed. The levels of analysis is as follows. Individual level lists diversity, personality and values. Group level lists group structure, group roles and team responsibilities. Organizational level lists the structure and culture..

[Audio] Processes are actions that individuals, groups, and organizations engage in as a result of inputs, and that lead to certain outcomes. At the individual level, processes include emotions and moods, motivation, perception, and decision making. At the group level, they include communication, leadership, power and politics, and conflict and negotiation. Finally, at the organizational level, processes include human resource management and change practices. The levels of analysis is as follows. Individual level lists emotions and moods, motivation, perception ad decision making. Group level lists communication, leadership, power and politics, and conflict and negotiation. Organizational level lists human resource management and change practices..

[Audio] Scholars have emphasized individual-level outcomes such as attitudes and stress, job performance, citizenship behavior, and withdrawal behavior. At the group level, team performance is the focus. Finally, at the organizational level, we look at overall profitability and survival. Because these outcomes will be covered in all of the chapters, we will briefly discuss each of them on the following slides, so you can understand what the "goal" of O B will be. The levels of analysis is as follows. Individual level lists attitudes and stress, job performance, citizenship behavior and withdrawal behavior. Group level includes team performance. Organizational level lists productivity and survival..

[Audio] The belief that satisfied employees are more productive than dissatisfied employees has been a basic tenet among managers for years, though only now research has begun to support it. Some people might think that influencing employee attitudes and stress is purely soft stuff, and not the business of serious managers, but as we will show, attitudes often have behavioral consequences that relate directly to organizational effectiveness..

[Audio] Task performance is the most important human output contributing to organizational effectiveness, so in every chapter we devote considerable time to discussing how task performance is affected by specific topics..

[Audio] In today's dynamic workplace, where tasks are increasingly performed by teams and flexibility is critical, employees who engage in good citizenship behaviors help others on their team by volunteering for extra work, avoiding unnecessary conflicts, respecting the spirit as well as the letter of rules and regulations, and gracefully tolerating occasional work-related impositions and nuisances..

[Audio] Employee withdrawal can have a very negative effect on an organization. The cost of employee turnover alone has been estimated to run into the thousands of dollars, even for entry-level positions. Absenteeism also costs organizations significant amounts of money and time every year. For instance, a recent survey found the average direct cost to U.S. employers of unscheduled absences is 8.7 percent of payroll. Like a sports team's performance, group functioning is more than the sum of individual performances. A team can perform effectively in different ways..

[Audio] Popular measures of organizational efficiency include return on investment, profit per dollar of sales, and output per hour of labor. Service organizations must include customer needs and requirements in assessing their effectiveness. These measures of productivity are affected by the behaviors of managers, employees, and supervisors. Increased productivity leads to the ultimate goal of most organizations, which is the survival of the firm..

[Audio] As you can see in this exhibit, we will deal with inputs, processes, and outcomes at all three levels of analysis, but we group the chapters as shown here to correspond with the typical ways that research has been done in these areas. The chapters listed are as follows. Individual analysis lists: Inputs which includes diversity in organizations in chapter 2 and personality and values in chapter 5. Processes includes emotions and moods in chapter 4, motivation in chapter 7 and 8, and perception and decision in chapter 6. Outcomes include attitudes in chapter 3 and stress in chapter 18, job performance, citizenship behavior, and withdrawal behavior in all the chapters. The group level analysis lists: Inputs which includes the group structure in chapter 9 and 10, group roles in chapter 9 and 10, team responsibilities in chapter 9 and 10. Processes includes communication in chapter 11, leadership in chapter 12, power and negotiation I chapter 14. Outcomes includes team performance in chapter 9 and 10. The organizational level analysis lists: Inputs which includes structure in chapter 15 and culture in chapter 16. Processes includes human resource management in chapter 17, and change practices in chapter 18. Outcome includes productivity and survival in all the chapters..

[Audio] The skills you'll learn throughout this text will make you an attractive job candidate or will be useful if you decide to start your own business..

[Audio] This first chapter has provided a firm foundation that will be the basis for the study and application of concepts and practices that make the young professional more successful in productivity, job satisfaction, and career development. The systematic study of O B can improve predictability of behavior and, while it is not perfect, it provides excellent roadmaps to guide managers and leaders. These studies help to ensure that contingencies are in place to better understand people's behaviors and how to influence them for the success of the employee and the organization..

[Audio] It is important for managers to develop their interpersonal "people skills" to be effective. Understanding O B makes their organizations work more effectively by improving productivity, reducing absenteeism, turnover, and deviant workplace behavior, and increasing organizational citizenship behavior and job satisfaction..

[Audio] Thank you for taking the time to watch to this lecture. I sincerely hope you enjoyed the content and the virtual presentation. Goodbye, for now, and I hope to see you in the next chapter presentation..