1 THE NATURE AND SCOPE OF ORGANIZATIONAL BEHAVIOR

Learning Objectives

1. Explain what is organizational behavior.

2. Summarize the research methods of organizational behavior.
3. Identify the benefits of studying organizational behavior knowledge.
4. Explain key events in the history of organizational behavior.
5. Understand how a person develops organizational behavior skills.

A. THE MEANING AND RESEARCH METHODS OF ORGANIZATIONAL BEHAVIOR

The Meaning of Organizational Behavior

Organizational behavior (OB) is the study of human behavior in the workplace, the
interaction between people and the organization, and the organization itself. It is the study
of how people behave in organizational settings. Its principles are applied with the goal of
making organizations and the people in them work more effectively together.

Organizational behavior research can focus on individual behavior within the

organization, how groups work together, how the organization itself behaves, and how all of
these are interconnected and impact each other.

The goals of OB are to explain, predict, and control behavior.

Importance of Organizational Behavior

The principles of effective organizational behavior can be applied to many aspects of

the workplace. It can be used to improve productivity and performance, boost employees’
satisfaction, increase motivation, foster better leadership, understand decision-making, and
facilitate better cross-team collaboration.

As an academic discipline, organizational behavior is studied in many business

administration programs. Organizational behavior is also researched and applied by a
number of business roles, such as consultants or organizational management experts.

Types of organizational behavior models

Organizational behavior has been studied for decades, leading to a number of

theories and models on effective organizational management. The following five
management models make up a popular framework for thinking about organizational
behavior:

 Autocratic: This model can be used to best describe historical workplaces,

particularly those during the industrial revolution. An autocratic model is based on power
and authority, demands employee obedience, and is built on dependency on the boss for
directions. Jobs within the autocratic model may provide no more than a paycheck for their
employees.
 Custodial: A custodial model is built on providing a sense of security and care from
the organization to employees, such as through providing a strong benefits package. The
aim with the custodial model is to provide incentives and economic resources that will build
loyalty toward the organization.

 Supportive: A supportive model is built on leadership motivating and inspiring

workers. Unlike the autocratic model, it assumes that employees are self-motivated. So a
manager’s job is to help foster that motivation by supporting the employee’s talents,
interests, and goals. This is built with the understanding that with the right support,
employees will take initiative and increase performance on their own.

Collegial Unlike the first two models, the collegial model acknowledges that social
factors are a key factor in employee satisfaction. This model is built on the idea of colleagues
working together as a team and fostering a sense of partnership. Power within the
organization is shared to a certain degree and it could feature a flattened hierarchy without
direct top-down direction.

System: This is the newest organizational behavior model, built on fostering

passion and a commitment to the organization’s goals. The idea is that by giving employees
a high level of meaning at work, workers will achieve greater satisfaction and performance .
This system expects managers to show compassion and care toward their direct reports and
work to establish a positive workplace culture.

Influences of organizational behavior

There are hundreds of factors that can influence organizational behavior. For example,
one of the earliest OB studies was designed to investigate how lighting impacts
productivity (in the process, the researchers discovered workers responded more to social
factors than environmental ones).

Influential factors can generally be boiled down to a few main groups:

Social: Leadership styles, coworker personalities, group dynamics, relationships, etc.

Environment: Lighting, aesthetics, office/desk set-up, etc.

Structure: Employee hierarchy, organizational structure of departments in business

units, etc.

Tools: Access to information, tools, and technology

Processes: Workflow management, reporting structures, project management styles,

etc.

B. RESEARCH METHODS OF ORGANIZATIONAL BEHAVIOR

1. Methods of data collection. Three frequently used methods of collecting data in

organizational behavior are surveys, interviews, and direct observation of behavior. The
type of survey questionnaire used by an organizational behavior specialist is prepared
rigorously.
Chapter 1/The Nature and Scope of Organizational Behavior 3

Survey Questionnaire – design to measure relevant issues about the topic being
employed.

Interview - used to obtain ideas for survey questions. It is helpful in uncovering

explanations about phenomena and furnishing leads for further inquiry.

Systematic observations – are made about the phenomena under study. One concern
about this method is that the people under observation may perform typically when
they know they are being observed.

Participant observation – the observer becomes a member of the group about which he
or she collects information.

2. Research methods. Four widely used research methods of organizational behavior

are case studies, laboratory experiments, field experiments (or studies), and meta-
analysis.

Case study - is usually collected by an observer recording impressions in his or her

mind or on a notepad. It provide a wealth of information that can be used to explain
what is happening in a given situation.

Experiment – is the most rigorous research method. The essence of conducting an

experiment is making sure that the variable being modified(the independent
variable) influences the results. The independent variable is thought to influence the
dependent variable. The dependent variable is also known as the criterion (or
measure).

 Laboratory experiments – Is that conditions are supposedly under the

experimenter’s control. A group of people might be brought into a room to
study the effects of stress on problem-solving ability

 Field Experiments – attempt to apply the experimental method to real life

situations. Variables can be controlled more readily in the laboratory than in
the field, but information obtained in the field is often more relevant.

Meta-analysis- is a quantitative or statistical review of the literature on a particular

subject, and is also an examination of a range of studies for reaching a combined
results or best estimate. Meta-analysis is also a study of studies combining
quantitative information from them all. An important use of meta-analysis in
organizational behavior is to understand how moderator variables influence the
results of studies. An example would be how stress from personal life can influence
susceptibility to job stress.

B. BENEFITS FROM STUDYING ORGANIZATIONAL BEHAVIOR

Organizational behavior relates to the process—rather than the content—of
conducting managerial work.

1. Skill Development

An essential requirement for entering into, surviving, and succeeding in the

modern workplace is to have appropriate skills. Organizational behavior skills have
gained in importance in the modern workplace. A survey of 1,420 CIOs found that
53 percent of these managers offered information technology employees training
In areas outside of technology. Soft skills generally refer to interpersonal skills such
 as motivating others, communicating, and adapting to people of different cultures.
Hard skills generally refer to technical skills.

2. Personal Growth through Insight Into Human Behavior

Understanding others leads to personal fulfillment, and can also lead to enhanced
self-knowledge and self-insight. Insight is useful for such purposes as selecting
people for jobs and assignments, communicating, and motivating.

3. Enhancing Organizational and Individual Effectiveness

An important goal of organizational behavior is to improve organizational

effectiveness, the extent to which an organization is productive and satisfies the
demands of its interested parties. Substantial evidence has accumulated that
emphasizing the human factor increases productivity and gives a firm a competitive
advantage. One reason is that people-oriented management practices enable work
orders to use their wisdom and to receive appropriate training.

If a person develops knowledge about subject such as improved interpersonal

communication, conflict resolution, and teamwork, he or she will become more
effective.

4. Sharpening and Refining Common Sense

Organizational behavior sharpens and enlarges the domain for common sense.
Organizational behavior knowledge also refines common sense by challenging you
to reexamine generally accepted ideas that may be only partially true—such as
inactivity reduces stress for everybody.

D. A BRIEF HISTORY OF ORGANIZATIONAL BEHAVIOR

The history of organizational behavior is rooted in the behavioral approach to

management, the belief that specific attention to workers’ needs creates greater
satisfaction and productivity.

A common theme of the behavioral approach is a need to focus on people.

Five key developments in the history of organizational behavior are the classical
approach to management, the Hawthorne studies, the human relations movement,
the contingency approach to management and leadership, and positive organizational
behavior.

1. The classical approach to management encompasses scientific management and

administrative management, and contributed some insights into understanding workplace
behavior.

 The focus of scientific management was the application of scientific methods to

increase individual worker’s productivity. According to the principles of scientific
management, there is a division of work between managers and workers.
 Administrative management was concerned primarily with how organizations
should be managed and structured. The core of management knowledge lies within the
classical school, including the framework of planning, organizing, and controlling.
Chapter 1/The Nature and Scope of Organizational Behavior 5

2. The Hawthorne Studies. Without the insights gained from the Hawthorne studies,
organizational behavior might not have emerged as a discipline. The first Hawthorne study
examined the effects of lighting on productivity. A second study conducted in a relay
assembly room examined the relationships among rest, fatigue, and productivity. A major
conclusion from these studies was the workers reacted positively because management
cared about them (the Hawthorne effect). The Hawthorne effect is the tendency of people
to behave differently when they receive attention because they respond to the demands of
the situation.
The Hawthorne studies also led to many other conclusions, such as the fact that
effective communication with workers is critical to managerial success. Keep in mind that
the Hawthorne studies have frequently been criticized for lacking in scientific rigor.

3. The Human Relations Movement. The human relations movement was based
on the belief that an important link exists among managerial practices, morale, and
productivity. Key points of the movement are that satisfied workers are more productive
and that, given the proper working environment, virtually all workers would be highly
productive. A cornerstone of the human relations movement is Theory X and Theory Y of
Douglas McGregor. Theory X is the somewhat stern and pessimistic traditional assumptions
about worker capabilities. Theory Y is an alternative, and optimistic, set of assumptions.

4. The Contingency Approach. The contingency approach to management

emphasizes there is no one best way to manage people or work. The contingency approach
is derived from the study of leadership styles. The strength of the contingency approach is
that it encourages managers and professionals to examine individual and situational
differences before deciding on a course of action.

5. Positive Organizational Behavior. An emerging movement in organizational

behavior is a focus on what is right with people. Luthans defines positive organizational
behavior as the study and application of human resource strengths and psychological
capacities that can be measured, developed, and managed for performance improvement.
The criteria of being measurable and developmental are significant because they separate
positive organizational behavior from simply giving pep talks and inspirational speeches to
employees. In general, positive organizational behavior focuses on developing human
strengths, making people more resilient, and cultivating extraordinary individuals, work
units, and organizations.

E. SKILL DEVELOPMENT IN ORGANIZATIONAL BEHAVIOR

Developing skills in organizational behavior refers to learning to work effectively with

individuals, groups, and organizational forces. Skill development in organizational
behavior follows a general learning model, using the following components:

1. Conceptual information and behavioral guidelines. Each chapter in this book

presents research-based information about organizational behavior including a section
titled “Implications for Management Practice.”

2. Conceptual information and examples. These include brief descriptions of

organizational behavior in action, generally featuring managers and leaders.

3. Experiential exercises such as self-assessment exercises. The book provides an

opportunity for practice and personalization through cases and self-assessment exercises.
Self-quizzes are included because they are an effective method of helping you personalize
the information, assisting you in linking conceptual information to your own situation. For
example, you will read about creative problem solving and also complete a quiz about
creativity.

4. Feedback on skill utilization or performance, from others. Feedback exercise

appears at several places in the book. Implementing organization behavior skills outside the
classroom will provide additional opportunities for feedback

5. Frequent practice. Reader who look for opportunities to practice organizational

behavior skills outside the classroom will acquire skills more quickly. An important example
is the development of creative thinking skills. The person who looks for imaginative
solutions to problems regularly is much more likely to become a more creative thinker, and
be ready to think creatively at a given moment. Contrast this with the individual who
participates in a creative-thinking exercise once, and then attempts the skills a year later
when the need is urgent. As in any field, frequent practicing s skill the right way leads to skill
improvement.

Developing organizational behavior skills is also important because it contributes to

lifelong learning.

F. A FRAMEWORK FOR STUDYING ORGANIZATIONAL BEHAVIOR

The three levels of study in organizational behavior are (a) individual level, (b)
groups and interpersonal relations level, and (c) organizational system and the global
environmental level.

Figure 1.1
Individuals
Individual differences, mental, ability,
and personality
Learning, perception, and attribution
Attitude, values, and ethics Group and Interpersonal Relations
Individual decision making and creativity Interpersonal communication
Foundation concepts of motivation Group dynamics
Motivational methods and programs Teams and teamwork
Leadership in organizations
Power, politics, and influence
Conflict, stress, and well being

The Organizational System and

the Global Environment
Organizational structure and design
Organizational culture
Organizational change and knowledge
management
Cultural diversity and international organizational
Visualize a behavior famous athletic
team with a winning history. Many fans
Chapter 1/The Nature and Scope of Organizational Behavior 7

contend that the spirit and tradition of the team, rather than individuals’ capabilities, carry it
through to victories against tough opponents. Yet if the team has a couple of poor recruiting
years or lose a key coach, it may lose frequently.
Key factors in understanding how individuals’ functions include individual
differences, mental ability and personality, learning, perception, attitudes, values
attribution, and ethics. It is also important to understand individual decision making
creativity, foundation concepts of motivation, and motivational programs.
As suggested by the arrows in Exhibit 1.1, the various levels of study are
interconnected. Understanding how individuals behave contributes to an understanding of
groups and interpersonal relations, the second level of the framework.

VI. IMPLICATIONS FOR MANAGERIAL PRACTICE

Managers should raise their level of awareness about the availability of organizational
behavior information. Before making decisions about dealing with people, pause to
search for systematic information about people and organizations. Search for
strengths and talents in others and yourself, and then capitalize on these strengths as a
way of improving organizational and individual effectiveness.