THE FIELD OF ORGANIZATIONAL

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Chapter
One
THE FIELD OF ORGANIZATIONAL BEHAVIOR
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After reading this chapter you should be able to

• 1. Define the concepts of organization and
  organizational behavior.
• 2. Describe the field of organizational
  behaviors commitment to the scientific method,
  and the three levels of analysis involved.
• 3. Trace the historical developments and schools
  of thought leading up to the field of
  organizational behavior.
• 4. Identify the fundamental characteristics of
  the field of organizational behavior.

• 5. Describe how the global economy shapes the
  field of organizational behavior today.
• 6. Explain how the workforce has become
  increasingly diversified and how this has led to
  the development of flexible working arrangements.
• 7. Describe how technology has led to the
  development of new organizational forms.
• 8. Explain how rising expectations about quality
  and ethical behavior have influenced the field or
  organizational behavior.

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Organizational Behavior (Pp. 3, 4) Defining the
Field - a field that seeks knowledge of all
aspects of behaviors in organizational settings
by the use of the scientific method
Characteristics of the Field Commitment to
scientific method - systematic observation and
measurement in order to - gain insights into
the effects of organizations on people -
apply insights to improve organizational
functioning
Analyze phenomena at the level of the -
individual - perceptions, attitudes, and
motives - group - communication and
coordination processes - organization -
effects on individuals and groups
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Focus - emphasized the importance of designing
jobs as efficiently as possible
Principles Careful selection and training of
employees Wages should be commensurate with
productivity One Best Way to perform the job
Methods Time and motion study - classified
and streamlined individual movements needed to
perform a job
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Human Relations Movement (Pp. 7-9) Personalities
Elton Mayo
Focus - the noneconomic, social social processes
in the workplace
Principles Worker effectiveness depends on the
physical aspects of working conditions and on
the social conditions they encounter
Methods - Hawthorne studies - illumination
studies - Relay Room - Bank Wiring Room
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Figure 1.4 Results from the Relay Assembly Test
Room
132
124
116
Percentage of Standard Output
108
100
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Classical Organizational Theory (Pp.
9-11) Personalities Henri Fayol Max Weber
Focus - the efficient structuring of overall
organizations
Principles Division of labor Managerial
authority Scalar chain Unity of
command Subordinate given initiative
Methods - describe the ideally-designed large
organization
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Contemporary Organizational Behavior (Pp. 11 - 15)
Fundamental Assumptions Work can be both
productive and pleasant Theory X - people are
lazy, irresponsible, and must be forced to
work Theory Y - people are capable of working
productively and accepting responsibility for
their work
There is no one best approach to managing
people Contingency approach - behavior is
contingent on many different variable at once,
including - personal characteristics -
situational factors - environmental context
Organizations are dynamic and ever-changing Open
systems - transform environmental resources
into output (e.g., finished product)
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Figure 1.7 Theory X Versus Theory Y
Theory X (traditional approach)
Theory Y (modern approach)
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International Business and the Global Economy
(Pp. 16 - 19) Globalization - process that is
interconnecting the worlds people regarding
the culture, political, technological,
and environmental aspects of their lives -
increase in international trade due to -
lowered costs of transportation and
communication - less restrictive trade
laws - expansion of exports from Third
World
International nature of todays
organizations Multinational Corporations (MNCs)
- have significant operations spread throughout
various nations but headquartered in a single
nation
Role of culture in organizations Convergence
hypothesis Divergence hypothesis
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Figure 1.10
High
Acceptance of New Culture
Low
1 2 3 4 5 6
Months Living in New Culture
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Trends Toward Diversity Within Organizations (Pp.
19 - 21) Melting pot - people from different
racial, ethnic, and religious backgrounds are
transformed into a common American culture
Cultural pluralism - social harmony does not
require people from various cultures to
assimilate or melt together into one but that
peoples separate identities should be maintained
and accepted by others
Demographic trends creating the diverse
workforce - greater participation by women in
workforce - greater participation by racial and
ethnic minorities - people live and work
longer - baby boom generation - generation of
children born in the economic boom period
following World War II
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Flexible, New Working Arrangements (Pp. 23 -
25) Flextime programs - employees have
discretion over when they can arrive and
leave work, thereby making it easier to adapt
their work schedules to the demands of their
personal lives lives - leads to improvements
in performance and job satisfaction - results
in drops in employee turnover and absenteeism
Compressed workweek - work fewer days each week
but longer hours each day (e.g., four 10-hour
days)
Job sharing - form of regular part-time work in
which pairs of employees assume the duties of a
single job, thus splitting its responsibilities,
salary, and benefits - often a temporary
arrangement
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Flexible, New Working Arrangements
(cont.) Voluntary reduced work time (V-time) -
allow employees to reduce the amount of time
they work by a certain amount with a
proportional reduction in pay - typically a 10
to 20 percent reduction in time - popular among
various state agencies in the U.S.
Telecommuting - use of communications technology
to perform work from remote locations (e.g., the
home) Flexplace IBM study - telecommuting
resulted in - 55 percent reduction in real
estate space - reduced the number of fixed
computer terminals necessary for work -
improved customer satisfaction - 83 percent of
employees preferred telecommuting to
traditional office environment
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New Organizational Forms (Pp. 25 - 28) Leaner
organizations - technology has made it possible
for fewer people to do more work than ever
before
Informate - process by which workers manipulate
objects through inserting data between
themselves and those objects - information
technology changes a physical task into one
that involves manipulation of a sequence of
digital commands
Outsourcing - hiring outside firms to perform
non-core business operations (i.e., peripheral
tasks) - core competency - organizations key
capability
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New Organizational Forms (cont.) Leaner
organizations (cont.) Contingent workforce -
temporary employees hired to work as need for
finite periods of time - includes freelancers,
subcontractors, and independent
professionals - enables organization to shrink
or grow as needed - growing numbers of people
in contingent workforce
Virtual corporation - a highly flexible,
temporary organization formed by a group of
companies to a specific opportunity - various
companies come together for special projects
(e.g., making a movie)
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Quality Revolution (Pp. 28 - 30) - making things
better Total Quality Management (TQM) -
organizational commitment to improving customer
satisfaction by developing techniques to
carefully manage output quality - W. Edwards
Deming - make whatever innovations
are necessary to improve quality
Benchmarking - process of comparing ones own
products or services with the best from ones
competitors
Quality control audits - careful examinations of
how well a company meets its standards
Malcolm Baldridge Award - given annually to
U.S. companies that practice effective
quality management and significantly improve the
quality of their goods and services
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Corporate Social Responsibility (Pp. 30 - 33) -
public is increasingly intolerant of unethical
business activity Promoting ethical behavior in
organizations
Code of ethics - describes what an organization
stands for and the general rules of conduct it
expects from employees (e.g., to avoid conflicts
of interest, to be honest, and so on)
Ethics audit - process of actively investigating
and documenting incidents of dubious ethical
value within a company
Challenge rationalizations - examine excuses for
unethical behavior
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Appendix
Chapter One
THEORY AND RESEARCH TOOLS FOR LEARNING ABOUT
BEHAVIOR IN ORGANIZATIONS
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Theory in Organizational Research (Pp. 43-45)
Theory - a set of statements about the
interrelationships between concepts that allow
us to predict and to explain various processes
and events
Theory - serves three important functions
Organize large amounts of data into meaningful
propositions Hypotheses - logically derived
statements that follow from theory
Summarize knowledge by making sense of bits of
information
Guide scientists to areas needing research
Theory - must be testable - purpose of research
is to test theory
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Figure A.1 Theory Testing The Research Process
Theory proposes relationships between concepts
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Surveys- questionnaires in which people report
how they feel about various aspects of
themselves, their jobs, and their organizations
Three Steps in Survey Approach Identify
variables of interest Measure variables as
precisely as possible Determine how variables
are related to one another
Analyzing survey results Correlation
coefficient - direction of relationship -
strength of relationship - varies between
1.0 and -1.0 - stronger the relationship,
more accurate predictions
Limitations of Survey Research Correlation does
not imply causality - several viable
interpretations of a correlation
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Figure A.2 Positive and Negative Correlations
(High)
Perceived Fairness of Pay
(Low)
(Low)
(High)
(High)
(Low)
Willingness to Help Co-worker
Interest in Quitting
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Experimental Research The Logic of Cause and
Effect (Pp. 48-51)
Experimental Method - a research technique used
to determine cause-and- effect relationships
between the variables of interest (i.e., the
extent to which one variable causes another)
Experimental Logic - basic elements Random
assignment of participants to experimental
conditions Independent variable - a variable
that is systematically manipulated by the
researcher to determine its effects on
behavior Dependent variable - the behavior that
is being measured by a researcher that is
dependent on the independent variable
Drawing Valid Conclusions from Experiments - all
experimental conditions other than the
independent variable must be kept constant -
differences in the dependent variable may be
attributed to the independent variable
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Figure A.5 Trade-offs Between Lab and Field
Experimentation
(High)
Amount of Realism and Control
(Low)
Lab
Field
Experimental Setting
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Qualitative Research Methods (Pp. 51,52)
Qualitative Research - a nonempirical type of
research that relies on preserving the natural
qualities of the situation being studied - two
types
Naturalist observation - a research technique in
which people are systematically observed in
situations of interest to the researcher Partici
pant observation - people systematically
observe what occurs in a setting by becoming an
insider (i.e., part of that setting itself) -
given its strengths and weaknesses, observational
research considered useful in providing basic
insights rather than definitive knowledge
Case method - a research technique in which a
particular organization is thoroughly described
and analyzed to understand what occurred in that
setting - results may have limited
generalizability
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Chapter
Two
PERCEPTION AND LEARNING UNDERSTANDING AND
ADAPTING TO THE WORK ENVIRONMENT
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After reading this chapter you should be able to
1. Distinguish between the concepts of perception
and social perception. 2. Explain how the
attribution process works and how it helps us to
understand the causes of other peoples
behavior. 3. Describe the various sources of bias
in social perception and how they may be
overcome. 4. Understand how the process of social
perception operates in the context of performance
appraisals, employment interviews, and the
cultivation of corporate images.
5. Define learning. 6. Describe the concepts of
operant conditioning and observational
learning. 7. Describe how principles of learning
are involved in organizational training and
innovative reward systems. 8. Compare how
organizations can use reward in organizational
behavior management and can use punishment most
effectively when administering discipline.
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Perception - the process through which people
select, organize, and interpret information -
active processing of sensory inputs
Social Perception - the process of combining,
integrating, and interpreting information about
others to gain an accurate understanding
of them - various aspects, including the
attribution process
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Attribution - the process through which
individuals attempt to determine the causes
behind others behavior
Correspondent Inferences - judgments about
peoples dispositions, traits, and
characteristics that correspond to what we
have observed of their actions Challenges in
judging others accurately - many possible
causes of behavior - people sometimes disguise
their true characteristics Making accurate
inferences about others - focus on behavior in
situations with low demand for social acceptabi
lity - focus on behavior for which there is
only one logical explanation
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Figure 2.2 Correspondent Inferences Judging
Dispositions Based on Behavior
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Causal Attribution of Responsibility Internal
causes of behavior - explanations based on
actions for which the individual is
responsible External causes of behavior -
explanations based on situations over which the
individual has no control
Kellys theory of causal attribution - internal
and external attributions based on Consensus -
extent to which other people behave in the same
manner as the person who were judging Consistenc
y - extent to which the person who were
judging acts the same way at other
times Distinctiveness - extent to which a person
behaves in the same manner in other contexts
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Figure 2.3 Kellys Theory of Causal
Attribution A Summary
You observe an individual complaining about the
food, service, and decor in a restaurant. To
answer Why? you note that...
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Perceptual Biases - predispositions to
misperceive others that interfere with making
completely accurate judgments Fundamental
attribution error - tendency to attribute others
actions to internal causes while largely
ignoring external factors - strong bias because
it is easier to attribute actions to
others traits than to recognize the
complexity of others situation
Halo effect - tendency for overall impressions of
others to affect objective evaluations of their
specific traits Positive halo - good impression
causes us to view what the person does in
favorable terms, even if we have no knowledge
about the specific behaviors - results in
consistently high ratings Negative halo -
results in consistently low ratings
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Figure 2.4 The Halo Effect A Demonstration of
Positive Halo
Characteristic 1
low
high
Characteristic 2
low
high
Characteristic 3
low
high
Characteristic 4
low
high
The more favorably someone is perceived on some
characteristics,

Characteristic N
low
high
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Perceptual Biases (cont.) Similar-to-me-effect -
tendency to perceive in a positive light
others who are believed to be similar in any of
several different says - greater empathy for
and better relations with others who seem
similar
First-impression error - tendency to base
judgments of others on our first impression of
them - error may take very subtle forms
Selective perception - tendency to focus on some
aspects of the environment and to ignore
others - narrowing of our perceptual fields
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Figure 2.5 First-Impression Error A Summary
Initial Performance
Initial Impression
Poor
Poor
Excellent
Excellent
Quality of Actual Work Performed
Evaluation of Work Performed
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Stereotypes Fitting Others into Categories -
beliefs that all members of specific groups share
similar traits and are prone to behave in the
same way
Why do we rely on stereotypes? - minimizes
cognitive work in thinking about others - leads
to premature judgments about people
Dangers of using stereotypes in organizations -
run the risk of causing miscommunication and
conflict
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Performance Appraisal - process of evaluating
employees on various work-related dimensions An
inherently biased process - process is far from
objective - ratings depend on extent to which
performance is consistent with raters
initial expectations - ratings reflect
similar-to-me bias - ratings qualified by the
nature of attributions made about performance
Cultural differences in performance evaluations -
evaluations of others work influenced by the
nations from which they come
Impression Management in the Employment Interview
- efforts by individuals to improve how they
appear to prospective employers Self-promotion -
asserting that one has desirable characteristics
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Corporate Image - the impressions that people
have of an organization - result of impression
management by organizations - strongly relates
to peoples interest in seeking employment with
it
Factors contributing to corporate image - amount
of information contained in recruitment ads -
longer ads typically associated with
more positive images - annual report -
official statement for stockholders
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Learning- a relatively permanent change in
behavior resulting from experience - cannot be
observed directly - must be inferred from
permanent changes in behavior
Operant (Instrumental) Conditioning - learning in
which people associate the consequences of their
actions with the actions themselves - behaviors
with positive consequences are acquired, i.e.,
repeated in the future - behaviors with
negative consequences - are eliminated Law of
Effect - tendency for behaviors leading to
desirable consequences to be strengthened and
for behaviors leading to undesirable
consequences to be weakened
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Figure 2.9 The Operant Conditioning Process An
Overview
Steps in the Operant Conditioning Process
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Operant (Instrumental) Conditioning (cont.)
Reinforcement contingencies - relationships
between a persons behavior and the consequences
resulting from it
Positive reinforcement - process through which
people learn to perform behaviors leading to the
presentation of the desired outcomes
Negative reinforcement (avoidance) - process
through which people learn to perform acts that
lead to the removal of undesired events
Punishment - decreasing undesirable behavior by
following it with undesirable consequences
Extinction - process through which responses
that are no longer reinforced tend to gradually
diminish in strength
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Operant (Instrumental) Conditioning (cont.)
Schedules of reinforcement - rules governing the
timing and frequency of administering
reinforcement
Continuous reinforcement - schedule in which all
desired behaviors are reinforced
Partial (intermittent) reinforcement - schedule
in which only some desired behaviors are
reinforced - fixed interval - a fixed period of
time must elapse between reinforcements
- variable interval - a variable period of time
(based on some average) must elapse
between reinforcements
- fixed ratio - a fixed number of responses must
occur between reinforcements
- variable ratio - a variable number of
responses based on some average) must
occur between reinforcements
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Observational Learning (Modeling) - people
acquire new behaviors by systematically
observing the rewards and punishments given to
others - knowledge acquired vicariously -
behavior of a model is imitated
Steps in observational learning - pay careful
attention to the model - good retention of the
models behavior - behavioral reproduction of
the models behavior - person motivated to learn
from the model
Examples - much of what is learned about how to
behave in organizations can be explained by
observational learning - formal job training -
absorbtion of norms and traditions
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Training - process of systematically teaching
employees to acquire and improve job-related
skills and knowledge Varieties of training -
both formal and informal
Apprenticeship programs - formal program, often
used in the skilled trades, involving both
on-the-job and classroom training, usually over
a long period
Cross-cultural - systematic way of preparing
employees to live and work in another country
Executive training - systematic development of
top company leaders, either in specific skills
or in general managerial skills
Corporate universities - centers devoted to
handling a companys training needs on a
full-time basis
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Training (cont.) Keys to effective training -
principles
Participation - active involvement in the
learning process - greater participation is more
effective
Repetition - repeatedly performing a task so that
it may be fully learned
Transfer of training - degree to which skills
learned during training may be applied to
performance of ones job - training is more
effective to the degree that it matches the
demands and conditions on a job
Feedback - knowledge of the results of ones
behavior - 3600 feedback - collection of
performance feedback from multiple sources at
various organizational levels
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Figure 2.12 3600 Feedback An Overview
You
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Innovative Reward Systems - based on various
principles of learning
Skill-based pay - people are paid based on the
number of different skills they have learned
relevant to performing one or more jobs in the
organization
Team-based rewards - employees are paid based on
their teams performance
Organizational Behavior Management (OB Mod) -
principles Pinpoint the desired behavior -
specify new, desired behavior Perform baseline
audit - measure level of behavior to be
changed Define a criterion standard -
performance goal Choose a reinforcer - nature of
reward for desired behavior Selectively reward
desired behavior - shaping Periodically
re-evaluate the program - careful monitoring -
OB Mod has successfully stimulated a variety of
behaviors in many different organizations
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Discipline - systematically administering
punishment to eliminate undesirable
organizational behaviors Disciplinary practices
- characteristics of discipline programs
Progressive discipline - gradually increasing the
severity of punishments for employees who
exhibit unacceptable job behavior
Clarify contingencies - publicize punishment
rules - employees should know what behavior will
not be tolerated
Punish all instances of inappropriate behavior -
doing nothing creates chronic and serious
problems
Take immediate action
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Discipline (cont.) Keys to using punishment
effectively Deliver punishment immediately
after undesirable behavior occurs Give
moderate levels of punishment - not to high or
too low Punish the undesirable behavior,
not the person - be impersonal - focus on
what person can do to avoid disapproval Use
punishment consistently - all the time, for all
employees Clearly communicate reasons for
the punishment - identify undesirable
behaviors that precipitated the disciplinary
action Do not follow punishment with
noncontingent rewards - represents inadvertent
reward for unwanted behavior
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INDIVIDUAL DIFFERENCES PERSONALITY AND ABILITIES
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After reading this chapter you should be able to
1. Define personality, and describe its role in
the study of OB. 2. Distinguish between a tests
reliability and its validity. 3. Identify the big
five dimensions of personality, and explain how
they relate to serveral aspects of OB. 4. Explain
positive and negative affectivity and how they
affect behavior in organizations. 5. Distinguish
between Type A and Type B behavior patterns and
how they influence behavior in organizations. 6. D
escribe the nature of self-efficacy, and explain
how this differs from self-monitoring.
7. Describe Machiavellianism and the conditions
under which individuals possessing high amounts
of this trait tend to be most successful. 8. Expla
in achievement motivation (or need for
achievement) and the performance differences
between people showing high and low amounts of
this characteristic. 9. Describe the difference
between morning and evening persons and the
relevance of this individual difference to on the
job behavior. 10. Describe practical
intelligence, emotional intelligence, and the
roles each plays in career success relative to
cognitive intelligence.
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Personality - the unique and relatively stable
pattern of behaviors, thoughts, and emotions
shown by an individual
Role of Personality in Organizational Behavior -
knowledge, skills, and ability determine whether
a person can do the job - personality determines
whether a person wants to do the
work Interactionist perspective - behavior
results from a comlex interplay between
personality and situational factors
Person-job-fit - extent to which individuals
possess the traits required for specific jobs
Personality Measurement Objective tests -
questionnaires and inventories that measure
various aspects of personality - most widely
used measurement method - normative available
as a basis for comparison Essential
requirements Reliability - consistency in
measurement Validity - test measures what it
claims to measure
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Big Five Dimensions of Personality - most
fundamental traits Conscientiousness - degree
of diligence, perseverance, and
organization - related to job performance
across many occupations - related to
absenteeism Extroversion-introversion - degree
of gregarious, assertiveness, and
sociability - related to performance in jobs
that required interpersonal interaction Agreea
bleness - degree of cooperativeness and
warmth Emotional stability - degree of calmness
, self-confidence, and sense of security -
related to job performance across many
occupations Openness to experience - degree of
creativeness, curiosity, and culture -
related to success in training
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Tendencies Toward Feeling Good or Bad Mood
states - temporary feelings based on current
conditions Positive affectivity - tendency to
experience positive moods and feelings in many
settings and under many different conditions -
overall sense of well-being experience other
people and conditions in a positive
light Negative affectivity - tendency to
experience negative moods in many settings and
under many different conditions - individuals
and teams with negative affective tone do
not perform as well as those with positive
affective tone
The Type A Behavior Pattern - a pattern of
behavior involving high levels of
competitiveness, time urgency, and
irritability Type B behavior pattern - a pattern
of behavior characterized by a casual,
laid-back style - Type A - overall edge in job
performance, especially tasks involving time
pressure or solitary work impatient with
coworkers - Type B - perform better on complex
tasks that require accuracy rather than speed
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Figure 3.6 Why Type As Often Dont Make It to
the Top
The Top!
Type As
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Self-Efficacy - an individuals beliefs
concerning her/his ability to perform specific
tasks successfully - components Magnitude -
level of performance believed possible Strength
- confidence in ability to perform at that
level Generality - extent to which feelings of
self-efficacy extend across situations -
development Direct experience - feedback from
past performance Vicarious experience -
observing the success of others - formal
training based on these elements can increase
feelings of self-efficacy
60
Self-Monitoring - the extent to which individuals
adapt their behavior to specific situations,
primarily to make the best possible
impression on others Work performance - high
self-monitors do better in jobs
requiring boundary spanning activities Career
success - high self-monitors tend to be promoted
more often Interpersonal relationships - form
less stable relationships Social chameleons -
viewed as manipulative
Machiavellianism - a willingness to manipulate
others for ones own purposes in a ruthless
manner Characteristics - glib and charming -
little remorse about harming others - display
little empathy Job success - not related to
performance on jobs with a great deal
of autonomy where coworkers can avoid the
clutches of high Machiavellianism
individual - high Machiavellianism individuals
are more successful in loosely structured
organizations
61
Achievement Motivation - strength of an
individuals desire to excel, to succeed at
difficult tasks, and to do them better than
others Attraction to difficult tasks - high
need achievers prefer tasks that are moderately
challenging and of intermediate
difficulty Managerial success - high need
achievers tend to be - promoted more
rapidly - less inclined to delegate - more
interested in performance feedback - more
interested in merit-based pay than in
seniority-based pay
62
Figure 3.9 Achievement Motivation and Task
Preference
High
Task Preference
Low
Easy
Difficult
Task Difficulty
63
Individual Differences in Times of Day When
People Feel Alert - are both real and important
when it comes to job performance Morning
persons - feel most energetic and alert early in
the day Evening persons - feel most energetic
and alert late in the day
64
Figure 3.10 Time of Day and Academic Performance
Grades
Morning Students
Evening Students
65
Cognitive Intelligence - ability to understand
complex ideas, adapt effectively to the
environment, learn from experience, engage in
various forms of reasoning, and overcome
obstacles - information processing
Practical Intelligence - adeptness at solving
practical problems of everyday life Tacit
knowledge - knowledge about how to get things
done - action oriented - allows one to
achieve personal goals - acquired without help
from others
Emotional Intelligence - cluster of skills
relating to the emotional side of life - ability
to recognize and regulate our own emotions, to
influence others, to self-motivate, to form
effective long-term relationships
Other Cognitive Abilities
66
Types of Physical Abilities Strength - capacity
to exert physical force Flexibility - capacity
to move ones body in an agile manner Stamina -
capacity to endure physical activity for
prolonged periods Speed - the ability to move
quickly - many jobs require blend of physical
and intellectual abilities - companies are
introducing measures to promote the health and
well-being of employees performing
physical tasks