Colquitt, LePine, Wesson Ch1 [PDF]

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Chapter 1 What is Organizational Behavior? McGraw-Hill/Irwin



Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.



Learning Goals  What is the definition of “organizational behavior”?  What are the two primary outcomes in studies of organizational behavior? What factors affect those two primary outcomes?  Do firms that are good at organizational behavior tend to be more profitable? Why might that be, and is there any research evidence to support this tendency?  What is theory, and what is its role in the scientific method?  What does a “correlation” represent, and what are “big”, “moderate”, and “small” correlations? What is a metaanalysis? Slide 1-2



Discussion Questions  Think of the worst coworker you've ever had. What did that person do that was so bad?  Think of the best coworker you've ever had. What did that person do that was so good? Slide 1-3



Table 1-1



The Best of Coworkers, the Worst of Coworkers



Slide 1-4



Basic Elements of Organizational Behavior  Organizational behavior (OB)



 Human resource management



 Strategic management Slide 1-5



OB Foundations  Theories and concepts in OB are drawn from a wide variety of disciplines Industrial and organizational psychology Social psychology Sociology Economics



Slide 1-6



Integrative Model of Organizational Behavior  Individual Outcomes



 Individual Mechanisms



Slide 1-7



Integrative Model of Organizational Behavior, cont’d  Individual Characteristics



 Group Mechanisms



 Organizational Mechanisms



Slide 1-8



Figure 1-1



Integrative Model of OB



Slide 1-9



Does Organizational Behavior Matter?  Resource-based view Financial resources (revenue, equity) Physical resources (buildings, machines) Knowledge, decision-making, culture



Slide 1-10



Discussion Question  Is it really the people that make some companies more profitable than others?



Slide 1-11



What Makes a Resource Valuable?  Rare Resources, people



 Inimitable History



Numerous small decisions Socially complex resources Slide 1-12



Figure 1-2



What Makes a Resource Valuable?



Slide 1-13



Research Evidence  OB practices were associated with better firm performance  Firms who valued OB had a 19% higher survival rate than firms who did not value OB  Good people comprise a valuable resource for companies  There is no “magic bullet” OB practice – one thing that, in-and-of itself, can increase profitability  Rule of one-eighth  OB on Screen Office Space Slide 1-14



How Do We Know  Method of Experience



 Method of Intuition  Method of Authority  Method of Science Slide 1-15



Scientific Studies  Theory



 Hypotheses



Slide 1-16



Figure 1-3



The Scientific Method



Slide 1-17



Scientific Studies, cont’d  Correlation (r) Describes the statistical relationship between two variables Can be positive or negative and range from 0 (no statistical relationship) to ± 1 (a perfect statistical relationship)



Slide 1-18



Figure 1-4



Different Correlation Sizes



Slide 1-19



Figure 1-4



Different Correlation Sizes



Slide 1-20



Figure 1-4



Different Correlation Sizes



Slide 1-21



Social Recognition & Job Performance  How often does social recognition lead to higher job performance?  Burger King study  Correlation between social recognition and job performance was .28  Correlation between social recognition and retention rates was .20



Slide 1-22



Table 1-4



Notable Correlations



Slide 1-23



Meta-analysis  The best way to test a theory is to conduct many studies, each of which is as different as possible from the ones that preceded it.  Meta-analysis



Slide 1-24



Takeaways  Organizational behavior is a field of study devoted to understanding and explaining the attitudes and behaviors of individuals and groups in organizations. It focuses on why individuals and groups in organizations act the way they do.  The two primary outcomes - job performance and organizational commitment.  A number of factors affect performance and commitment, including individual mechanisms, individual characteristics, group mechanisms, and organizational mechanisms. Slide 1-25



Takeaways, Cont’d  The effective management of organizational behavior can help a company become more profitable because good people are a valuable resource.  Rare  Hard to imitate  History that cannot be bought or copied,  Make numerous small decisions that cannot be observed by competitors  Create socially complex resources such as culture, teamwork, trust, and reputation.  Good OB policies have been linked to employee productivity, firm profitability, and even firm survival. Slide 1-26



Takeaways, Cont’d  A theory is a collection of assertions, both verbal and symbolic, that specifies how and why variables are related, as well as the conditions in which they should (and should not) be related.  A correlation is a statistic that expresses the strength of a relationship between two variables (ranging from 0 to 1).  A meta-analysis summarizes the results of several research studies. It takes the correlations from those research studies and calculates a weighted average to give more weight to studies with larger samples. Slide 1-27