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The Nature and Scope of Organizational Behavior: Objectives

This document discusses organizational behavior and highlights three companies that won Healthy Workplace Awards. Liberty Precision Industries helps employees develop new skills through consulting with a psychologist. South Carolina Bank and Trust cut turnover in half through an anonymous employee survey that led to new recognition programs. Sysco Food Services partnered with a university to provide coaching classes to executives that improved employee stress and satisfaction. The document emphasizes that understanding human behavior in organizations is important for business success.

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100% found this document useful (1 vote)
275 views

The Nature and Scope of Organizational Behavior: Objectives

This document discusses organizational behavior and highlights three companies that won Healthy Workplace Awards. Liberty Precision Industries helps employees develop new skills through consulting with a psychologist. South Carolina Bank and Trust cut turnover in half through an anonymous employee survey that led to new recognition programs. Sysco Food Services partnered with a university to provide coaching classes to executives that improved employee stress and satisfaction. The document emphasizes that understanding human behavior in organizations is important for business success.

Uploaded by

Lords Porseena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1

Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

The Nature and Scope of O B J E C T I V E S

Organizational Behavior After reading and studying this


chapter and doing the exer-
cises, you should be able to:
The Healthy Workplace Awards recognize organizations for their commit-
ment to programs and policies that enhance employee health and well-being. 1 Explain what organizational
Evaluators consider companies for the state-level awards across five areas: behavior means.
employee involvement, work–life balance, employee growth and develop-
ment, health and safety, and employee recognition.The top 10 companies are 2 Summarize the research meth-
ods of organizational behavior.
selected from a pool of more than 180 previous state-level winners.
“It is important to highlight those companies’ efforts in this era of busi- 3 Identify the potential advan-
ness challenges and workplace pressures,” says Russ Newman, the executive tages of organizational be-
director for professional practice at the American Psychological Association. havior knowledge.

“Many organizations are struggling to stem the forces that are whittling away
4 Explain key events in the his-
at their employees’ morale, productivity, and health,” says Newman. “These tory of organizational behavior.
Best practices honorees are setting an example by creating strong, vibrant or-
ganizational cultures that contribute to both employee health and well-being 5 Understand how a person de-
and the company’s bottom line.” velops organizational behavior
skills.
Three of the winners are:
Liberty Precision Industries. Based in New York, this machine-
building company helps its employees develop new, versatile job skills.
Liberty employees work with a consulting psychologist to identify spe-
cific areas in which they can improve job performance.
South Carolina Bank and Trust. The company’s employee expecta-
tion survey has cut turnover rates in half by allowing employees to
Source: Adapted from Mark Greer, “A Happier, Healthier Workplace,” Monitor on Psychology, December 2004,
pp. 28–29.
CHAPTER 1 The Nature and Scope of Organizational Behavior

2 anonymously voice concerns about the workplace. Management listens: It has added
employee recognition programs and new stock purchase options.
Sysco Food Services of New Mexico. The company partnered with the University,
of New Mexico to develop a coaching skills class that taught all executives, managers,
and supervisors skills such as collaborative decision-making, employee development, and
team-building. Employees report less stress and increased job satisfaction.

Now Ask Yourself: In what way does the information just presented il-
lustrate that paying careful attention to human behavior in the workplace
is an important part of an organization’s being successful? The purpose of
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

this book is to present systematic knowledge about people and organizations that
can be used to enhance individual and organizational effectiveness. Managers and
potential managers are the most likely to apply this information.Yet the same infor-
mation is important for other workers, including professionals, sales representatives,
customer service specialists, and technical specialists.
In the modern organization, workers at every level do some of the work that
was formerly the sole domain of managers.Team members, for example, are often
expected to motivate and train each other. One reason organizations get by with
fewer managers than previously is that workers themselves are now expected
to manage themselves to some extent. Self-management of this type includes
the team scheduling its own work and making recommendations for quality
improvement.
In this chapter, we introduce organizational behavior from several perspectives.
We will explain the meaning of the term, see why organizational behavior is useful,
and take a brief glance at its history. After describing how to develop skills in orga-
nizational behavior, we present a framework for understanding the field.An impor-
tant goal in studying organizational behavior is to be able to make sense of any
organization in which you are placed. For example, you might be able to answer the
question,“What is going on here from a human standpoint?”

THE MEANING AND RESEARCH METHODS


1 OF ORGANIZATIONAL BEHAVIOR
Explain what organiza-
tional behavior means.
A starting point in understanding the potential contribution of organizational be-
havior is to know the meaning of the term. It is also important to be familiar with
how information about organizational behavior is acquired.

The Meaning of Organizational Behavior


Organizational behavior (OB) is the study of human behavior in the workplace,
of the interaction between people and the organization, and of the organization
itself.1 The major goals of organizational behavior are to explain, predict, and con-
trol behavior.
Explanation refers to describing the underlying reasons or process by which phe-
nomena occur. For example, an understanding of leadership theory would explain
why one person is a more effective leader than another. The same theory would
help predict which people (such as those having charismatic qualities) are likely
to be effective as leaders. Leadership theory could also be useful in controlling
The Nature and Scope of Organizational Behavior CHAPTER 1

(or influencing) people. One leadership theory, for example, contends that group 3
members are more likely to be satisfied and productive when the leader establishes
good relationships with them.

Data Collection and Research Methods


in Organizational Behavior
To explain, predict, and control behavior, organizational behavior specialists must
collect information systematically and conduct research.The purpose of collecting
data is to conduct research.
2
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

Methods of Data Collection


Three frequently used methods of collecting data in organizational behavior are sur- Summarize the re-
veys, interviews, and direct observation of behavior.The survey questionnaire used by search methods of
organizational
a specialist in organizational behavior is prepared rigorously. Before preparing a final behavior.
questionnaire, a scientist collects relevant facts and generates hypotheses (educated
guesses) about important issues to explore.The questionnaire is carefully designed to
measure relevant issues about the topic being surveyed.Among the surveys included
in this textbook is the Creative Personality Test in Chapter 5.
Research about human behavior in the workplace relies heavily on the interview
as a method of data collection. Even when a questionnaire is the primary method of
data collection, interviews are usually used to obtain ideas for survey questions.
Interviews are also helpful in uncovering explanations about phenomena and fur-
nishing leads for further inquiry.Another advantage of interviews is that a skilled in-
terviewer can probe for additional information. One disadvantage of the interview
method is that skilled interviewers are required.
Observers placing themselves in the work environment collect much informa-
tion about organizational behavior. Systematic observations are then made about the
phenomena under study. One concern about this method is that the people under
observation may perform atypically when they know they are being observed. A
variation of systematic observation is participant observation. The observer becomes a
member of the group about which he or she collects information. For example, to
study stress experienced by customer service representatives, a researcher might
work temporarily in a customer service center.

Research Methods
Four widely used research methods of organizational behavior are case studies,
laboratory experiments, field experiments (or studies), and meta-analyses.
Although cases are a popular teaching method, they are often looked on nega-
tively as a method of conducting research. Case information is usually collected
by an observer recording impressions in his or her mind or on a notepad. People
have a tendency to attend to information specifically related to their own inter-
ests or needs. Despite this subjective element in the case method, cases provide
a wealth of information that can be used to explain what is happening in a
given situation.
An 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 (such as a motivational
technique) is thought to influence the dependent variable (such as productivity).
The dependent variable is also known as the criterion (or measure).
CHAPTER 1 The Nature and Scope of Organizational Behavior

4 A major characteristic of the laboratory experiment is that the conditions are sup-
posedly 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.The stressor the ex-
periment introduces is an electronic beeping noise. In a field setting, assuming the
experiment was permitted, the experimenter might be unaware of what other stres-
sors the subjects faced at that time. A key concern about laboratory experiments,
however, is that their results might not apply to the outside world.
Field experiments (or studies) 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. An example of a
field experiment would be investigating whether giving employees more power
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

would have an effect on their motivation to produce a high quantity of work.The


independent variable would be empowerment, while the dependent variable would
be quantity of work.
A widely used approach to reaching conclusions about behavior is to combine
the results of a large number of studies. A meta-analysis is a quantitative or statis-
tical review of the literature on a particular subject, and is also an examination of a
range of studies for the purpose of reaching a combined result or best estimate. A
meta-analysis is therefore a review of studies, combining their quantitative informa-
tion.You can also view meta-analysis as a quantitative review of the literature on a
particular subject. For example, a researcher might want to combine the results of
100 different studies about the job performance consequences of group decision
making before reaching a conclusion. Many of the research findings presented
throughout this book are based on meta-analysis rather than on the results of a
single study.
An important use of meta-analysis in organizational behavior is to understand
how certain factors, referred to as moderator variables, influence the results of studies.2
For example, in the experiment mentioned previously about stress and problem-
solving ability, a moderator variable might be the amount of stress a study partici-
pant faces in personal life. Individuals who enter the experiment already stressed
might be influenced more negatively by the electronic beeping noise.
Meta-analysis gives the impression of being scientific and reliable because so
much information is assimilated, using sophisticated statistical tools. One might
argue, however, that it is better to perform one rigorous study than to analyze many
poorly conducted studies.

HOW YOU CAN BENEFIT FROM STUDYING


3 ORGANIZATIONAL BEHAVIOR
Identify the potential
advantages of organi-
Studying organizational behavior can enhance your effectiveness as a manager or
zational behavior professional. Yet the benefits from studying organizational behavior are not as
knowledge. immediately apparent as those derived from the study of functional fields such as ac-
counting, marketing, purchasing, and information systems. Such fields constitute the
content of managerial and professional work. Organizational behavior, in contrast,
relates to the process of conducting such work. An exception may be seen with
organizational behavior specialists whose content, or functional knowledge, deals
with organizational behavior concepts and methods.
Visualize an information systems specialist who has extremely limited interper-
sonal skills in communicating, motivating, and resolving conflict. She will have a
difficult time applying her technical expertise to organizational problems. She will
The Nature and Scope of Organizational Behavior CHAPTER 1

therefore fail in serving her clients because she lacks the ability to use effective in- Log on to http://www.
5
terpersonal processes. In contrast, if the same information systems specialist had solid thomsonedu.com/
infotrac. Perform a
interpersonal skills, she could do a better job of serving her clients. (She would prob- search on “soft skills”
ably also hold onto her job longer.) and find out what spe-
Studying and learning about organizational behavior offers four key advan- cific skills employers
look for in “well-
tages: (1) skill development, (2) personal growth, (3) enhancement of organiza- rounded” job
tional and individual effectiveness, and (4) sharpening and refinement of applicants.
common sense.

Skill Development
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

An essential requirement for entering into, surviving, and succeeding in the modern
workplace is to have the appropriate skills. A person needs both skills related to his
or her discipline and generic skills such as problem solving and dealing with people.
The study of organizational behavior contributes directly to these generic skills.
Later in this chapter, we provide details about how one develops skills related to
organizational behavior.
Organizational behavior skills have gained in importance in the modern work-
place. A relevant example is that many CIOs (chief information officers) now need
information technology professionals to get more involved in business concerns, to
interact with other departments, and to communicate more effectively with col-
leagues. Soft skills such as business acumen, communication, leadership, and project
management become more important as specialists such as information technology
professionals get more involved in the overall business.A survey of 1420 CIOs found
that 53 percent of these managers offered information technology employees train-
ing in areas outside of technology.3
The distinction between soft skills and hard skills is relevant for understanding
the importance of skill development in organizational behavior. Soft skills are gen-
erally interpersonal skills such as motivating others, communicating, and adapting to
people of different cultures. Hard skills are generally technical skills, such as infor-
mation technology and job design. Some skills, such as those involved with decision
making, have a mixture of soft and hard components.To make good decisions you
have to be creative and imaginative (perhaps a soft skill), yet you also have to weigh
evidence carefully (most likely a hard skill). The aforementioned survey classified
business acumen as a soft skill, yet some business strategy specialists would classify such
knowledge as a hard skill.

Personal Growth through Insight into Human Behavior


As explained by Robert P. Vecchio, an important reason for studying organizational
behavior is the personal fulfillment gained from understanding others.4 Under-
standing fellow human beings can also lead to enhanced self-knowledge and self-
insight. For example, while studying what motivates others, you may gain an
understanding of what motivates you. Participating in the experiential exercises and
self-assessments included in this textbook provides another vehicle for personal
growth.A case in point is the study of leadership in Chapter 11.You will be invited
to take a self-quiz about readiness to assume a leadership role. Taking the test and
reviewing the results will give you insight into the types of attitudes and behaviors
you need to function as a leader.
Personal growth, through understanding others and self-insight, is meritori-
ous in and of itself, and it also has practical applications. Managerial and professional
CHAPTER 1 The Nature and Scope of Organizational Behavior

6 positions require sharp insights into the minds of others for tasks such as selecting
people for jobs and assignments, communicating, and motivating. Sales represen-
tatives who can size up the needs of prospects and customers have a competitive
advantage. Another value of understanding others and self-insight is that
they contribute to continuous learning because the needs of others change over
time, and so might your needs. For example, people are more strongly motivated
by the prospects of job security today than they might have been in years
past. Continuous downsizings and outsourcing have enhanced the value of job
security.
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

Enhancement of Organizational and Individual Effectiveness


A major benefit from studying organizational behavior is that it provides informa-
tion that can be applied to organizational problems.An important goal of organiza-
tional behavior is to improve organizational effectiveness—the extent to which
an organization is productive and satisfies the demands of its interested parties. Each
chapter of this book contains information that is applied directly or indirectly by
many organizations. One visible example is the widespread use of teams in the
workplace. Certainly, organizational behavior specialists did not invent teams. We
suspect even prehistoric people organized some of their hunting forays by teams.
Nevertheless, the conclusions of organizational behavior researchers facilitated the
shift to teams in organizations.
The accompanying box presents fresh evidence about the link between treating
employees well and a firm’s financial performance. The argument is particularly
interesting because it is presented by a financial analyst.
Why does paying more attention to the human element improve business per-
formance? One explanation Jeffrey Pfeffer offers is that people work harder when
they have greater control over their work environment and when they are en-
couraged by peer pressure from teammates. Even more advantage comes from
people working smarter. People-oriented management practices enable workers
to use their wisdom and to receive appropriate training. Another contribution to
improved performance stems from eliminating positions that focus primarily on
watching and controlling workers.5 Much of organizational behavior deals with
people-oriented management practices. Many of these practices will be described
in later chapters.
Understanding organizational behavior also improves organizational effective-
ness because it uncovers factors that contribute to or hinder effective performance.
Among these many factors are employee motivation, personality factors, and com-
munication barriers. Furthermore, an advanced understanding of people is a major
contributor to managerial success.This is especially true because so much of a man-
ager’s job involves accomplishing tasks through people.
Organizational behavior also contributes insights and skills that can enhance
individual effectiveness. If a person develops knowledge about subjects such as
improved interpersonal communication, conflict resolution, and teamwork, he or
she will become more effective. A specific example is that knowledge about orga-
nizational behavior can contribute to high performance. Executive coach Lisa
Parker observes that managers sometimes neglect to give encouragement and
recognition to good performers because these workers are already performing
well.Yet if these same solid performers were given more encouragement, coach-
ing in the form of advice, and recognition, they will often develop into superstars
(high performers).6
The Nature and Scope of Organizational Behavior CHAPTER 1

7
ORGANIZATIONAL BEHAVIOR In Action

Equity Analyst Evaluates the Importance of Treating Employees Well


I have been an equity research analyst for more They produce a higher quality of customer ser-
than 15 years, the past 10 devoted to analyzing vice, which becomes a competitive advantage
consumer service stocks, including restaurants, for the company.
hotels, casinos, and cruise companies.These are Working in a busy coffee bar can be a
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

labor-intensive sectors.As part of my analyses, I tough job, but Starbucks Corporation is at the
have quizzed senior management on the steps forefront of trying to treat its workers with res-
they take to manage labor costs. It has been con- pect. Howard Shultz, who has led Starbucks
ventional wisdom that reducing wages and ben- through more than 18 years of growth, has set
efits improves profit margins, earnings, and even the tone from the top and made it clear that his
stock price because, generally, investors reward company is not going to leave its people be-
companies that cut these expenses. In reality, it’s hind. For instance, employees who complete a
not that simple. minimum of 20 hours of work or more a week
I don’t think enough investors have asked could become eligible for health benefits and
the more important question: Can companies may receive a stock option grant.There is a fi-
be even more successful by focusing on opti- nancial benefit: Starbucks’ employee turnover is
mizing each employee’s contribution, rather toward the bottom of the industry range and its
than simply looking for ways to reduce the cost service levels are high.And since the IPO [ini-
of employing them? Perhaps, we as investors, tial public offering] in June 1992, the share of
need to be more conscious of how these peo- Starbucks have risen an eye-popping 3500%.
ple who clean our hotel rooms, cook our meals, Treating employees well is certainly not the
and deal our cards are treated and paid, rather only reason that the companies alluded to here
than simply looking to see whether the ex- have outperformed.The strength of their pro-
pense can be cut further. Staff motivation, ducts, the skills of management, and market
although difficult to quantify, should be part conditions have also had a significant impact. I
of the investment analysis. believe that investors should look beyond cost-
At the risk of stating the obvious, it is ap- cutting initiatives and ask whether the company
parent that treating employees with respect and is getting the very best out of its people. In
paying them fairly goes a long way to establish- other words, is it well managed?
ing an efficient and creative organization. Most
Questions
corporate executives say that they do this and
that they don’t put shareholder interests ahead 1. What in your mind constitutes being
of their workers. But, a significant number of treated well by an employer?
companies who say they subscribe to this phi- 2. What is the tie-in between this opinion
losophy don’t live up to it. piece and organizational behavior?
This is surprising because the service com-
panies that go that extra mile often derive tan- Source: Steven Kent, “Happy Workers Are the Best Workers,” The
gible benefit from adopting these practices. Wall Street Journal, September 6, 2005, p. A20.

Sharpening and Refining of Common Sense


A manager commented after reading through several chapters of an organizational
behavior textbook, “Why should I study this field? It’s just common sense. My job
involves dealing with people, and you can’t learn that through a book.” Many other
students of organizational behavior share the sentiments expressed by this manager.
CHAPTER 1 The Nature and Scope of Organizational Behavior

8 However logical such an opinion might sound, common sense is not an adequate
substitute for knowledge about organizational behavior. This knowledge sharpens
and enlarges the domain for common sense. It markedly reduces the amount of time
necessary to learn important behavior knowledge and skills, much as law school re-
duces the amount of time that a person in a previous era would have had to spend
as a law apprentice.
You may know through common sense that giving recognition to people is
generally an effective method of motivating them toward higher performance. By
studying organizational behavior, however, you might learn that recognition should
be given frequently but not every time somebody attains high performance. (You
specifically learn about intermittent rewards in your study of motivation.) You might
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

also learn that the type of recognition you give should be tailored to the individual’s
personality and preferences. For example, some people like flamboyant praise, while
others prefer praise focused tightly on the merits of their work. Formal knowledge
thus enhances your effectiveness.
Organizational behavior knowledge also refines common sense by challenging
you to reexamine generally accepted ideas that may be only partially true. One such
idea is that inactivity is an effective way to reduce stress from a hectic schedule. In
reality, some hard-driving people find inactivity more stressful than activity. For them,
lying on a beach for a week might trigger intense chest pains. For these people,
diversionary activity—such as doing yard work—is more relaxing than inactivity.

4 A BRIEF HISTORY OF ORGANIZATIONAL BEHAVIOR


Explain key events in
the history of organiza-
The history of organizational behavior is rooted in the behavioral approach to
tional behavior. management, or the belief that specific attention to workers’ needs creates greater
satisfaction and productivity. In contrast to the largely technical emphasis of scien-
tific management, a common theme of the behavioral approach is the need to focus
on people. Scientific management did not ignore people altogether, and in some
ways it contributed to organizational behavior. For example, scientific management
heavily emphasized financial incentives to increase productivity. Yet the general
thrust centered on performing work in a highly efficient manner.
Organizational behavior is also heavily influenced by sociology in its study of
group behavior, organization structure, diversity, and culture. In addition, the insights
of cultural anthropologists contribute to an understanding of organizational culture
(the values and customs of a firm). In recent years, several companies have hired an-
thropologists to help them cultivate the right organizational culture. Organizational
behavior also gains insights from political science toward understanding the distrib-
ution of power in organizations.
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 organiza-
tional behavior.

The Classical Approach to Management


The study of management became more systematized and formalized as a by-product
of the Industrial Revolution that took place from the 1700s through the 1900s.
Managing these factories created the need for systems that could deal with large
numbers of people performing repetitive work. The classical approach to manage-
ment encompassed scientific management and administrative management, and
contributed some insights into understanding workplace behavior.
The Nature and Scope of Organizational Behavior CHAPTER 1

The focus of scientific management was the application of scientific meth- 9


ods to increase an individual worker’s productivity.An example would be assembling
a lawn mower with the least number of wasted motions and steps. Frederick W.
Taylor, considered the father of scientific management, was an engineer by back-
ground. He used scientific analysis and experiments to increase worker output. A
key part of his system was to convert individuals into the equivalent of machines
parts by assigning them specific, repetitive tasks. Other key contributors to scientific
management were Henry Gantt and Frank and Lillian Gilbreth. (Gantt charts for
scheduling activities are still used today.)
Taylor tackled the dilemma of management wanting to maximize profits, and
workers wanting to maximize possible wages. Disputes between management and
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

labor centered on what each side saw as incompatible goals.Taylor believed that his
system of scientific management could help both sides attain their goals, providing
each would undergo a “mental revolution.” Each side had to conquer its antagonis-
tic view of the other. Taylor believed that management and labor should regard
profit as the result of cooperation between the two parties. Management and labor
each needed the other to attain their goals.7
Scientific management is based on four principles, all of which direct behavior
in the workplace:8
• Careful study of the jobs to develop standard work practices, with standardiza-
tion of the tools workers use in their jobs
• Selection of each worker using scientific principles of personnel selection
• Obtainment of cooperation between management and workers to ensure that
work is accomplished according to standard procedures
• Plans and task assignments developed by managers, which workers should carry out
According to these principles of scientific management, there is a division of
work between managers and workers. Managers plan and design work, assign tasks,
set performance goals, and make time schedules. Managers also select and train
workers to do the tasks according to standard procedures, and give the workers feed-
back about their performance.Workers are rewarded with financial incentives when
they increase their productivity.9
Administrative management was concerned primarily with the manage-
ment and structure of organizations.The French businessman Henri Fayol and the
German scholar Max Weber were the main contributors to administrative manage-
ment. Based on his practical experience, Fayol developed 14 management principles
through which management engaged in planning, organizing, commanding, coor-
dinating, and controlling. Weber suggested that bureaucracy is the best form of
organization because it makes highly efficient management practices possible.
The core of management knowledge lies within the classical school. Its key
contributions come from studying management from the framework of planning,
organizing, leading, and controlling. The major strength of the classical school was
providing a systematic way of measuring people and work that still exists in some
form today. For example, United Parcel Service (UPS) carefully measures the out-
put and work approaches of the delivery workers.The major limitation of the clas-
sical school is that it sometimes ignores differences among people and situations. In
addition, some of the classical principles for developing an organization are not well
suited to fast-changing situations.

The Hawthorne Studies


Many scholars pinpoint the Hawthorne studies (1923–1933) as the true beginning
of the behavioral approach to management.10 Without the insights gleaned from
CHAPTER 1 The Nature and Scope of Organizational Behavior

10 these studies, organizational behavior might not have emerged as a discipline. The
purpose of the first study conducted at the Hawthorne plant of Western Electric (an
AT&T subsidiary) was to determine the effect of changes in lighting on productiv-
ity. In this study, workers were divided into an experimental group and a control
group. Lighting conditions for the experimental group varied in intensity from 24
to 46 to 70 foot-candles.The lighting for the control group remained constant.
As expected, the experimental group’s output increased with each increase in
light intensity. But unexpectedly, the performance of the control group also changed.
The production of the control group increased at about the same rate as that of the
experimental group. Later, the lighting in the experimental group’s work area was re-
duced.This group’s output continued to increase, as did that of the control group. A
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

decline in the productivity of the control group finally did occur, but only when the
intensity of the light was roughly the same as moonlight. Clearly, the researchers rea-
soned, something other than illumination caused the changes in productivity.
The relay assembly test room produced similar results over a 6-year period. In this
case, relationships among rest, fatigue, and productivity were examined. First, normal
productivity was established with no formal rest periods and a 48-hour week. Rest
periods of varying length and frequency were then introduced. Productivity increased
as the frequency and length of rest periods increased. Finally, the original conditions
were reinstated.The return to the original conditions, however, did not result in the
expected productivity drop. Instead, productivity remained at its usual high level.
One interpretation of these results was that the workers involved in the experiment
enjoyed being the center of attention.Workers reacted positively because management
cared about them.The phenomenon is referred to as the Hawthorne effect. It is the
tendency of people to behave differently when they receive attention because they
respond to the demands of the situation. In a research setting, this could mean that the
people in an experimental group perform better simply because they are participating
in an experiment. In a work setting, this could mean that employees perform better
when they are part of any program—whether or not that program is valuable.
The Hawthorne studies also produced other findings that served as the founda-
tion for the human relations movement.Although many of these findings may seem
obvious today, documenting them reinforced what many managers believed to be
true. Key findings included the following:
1. Economic incentives are less potent than generally believed in influencing
workers to achieve high levels of output.
2. Dealing with human problems is complicated and challenging.
3. Leadership practices and work-group pressures profoundly influence employee
satisfaction and performance.
4. Personal problems can strongly influence worker productivity.
5. Effective communication with workers is critical to managerial success.
6. Any factor influencing employee behavior is embedded in a social system. For
instance, to understand the impact of pay on performance, you have to under-
stand the climate in the work group and the leadership style of the manager.
Furthermore, work groups provide mutual support and may resist management
schemes to increase output.
Despite the contributions of the Hawthorne studies, they have been criticized
as lacking scientific rigor.The most interesting criticism contends that the workers
in the control group were receiving feedback on their performance. Simultaneously,
they were being paid more as they produced more.The dual impact of feedback and
differential rewards produced the surprising results—not the Hawthorne effect.11
The Nature and Scope of Organizational Behavior CHAPTER 1

The Human Relations Movement 11

The human relations movement is based on the belief that there is an important
link among managerial practices, morale, and productivity.Workers bring various so-
cial needs to the job. In performing their jobs, workers typically become members
of several work groups. Often these groups provide satisfaction of some of the work-
ers’ needs. Satisfied workers, it was argued, would be more productive workers.The
challenge for managers was to recognize workers’ needs and the powerful influence
that work groups can have on individual and organizational productivity.
A second major theme of the human relations movement is a strong belief in
workers’ capabilities. Given the proper working environment, virtually all workers
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

would be highly productive. Significant amounts of cooperation between workers


and managers prove critical to achieving high levels of productivity. A cornerstone
of the human relations movement is Douglas McGregor’s analysis of the assump-
tions managers make about human nature, delineated in two theories.12 Theory X is
a set of traditional assumptions about people. Managers who hold these assumptions
are pessimistic about workers’ capabilities. They believe that people dislike work,
seek to avoid responsibility, are not ambitious, and must be supervised closely.
McGregor urged managers to challenge these assumptions about human nature
because they may be untrue in most circumstances.
Theory Y is an alternative, and optimistic, set of assumptions.These assumptions
include the ideas that people do accept responsibility, can exercise self-control, have
the capacity to innovate, and consider work to be as natural as rest or play. McGregor
argued that these assumptions accurately describe human nature in far more situa-
tions than most managers believe. He therefore proposed that these assumptions
should guide managerial practice.

The Contingency Approach


Beginning in the early 1960s, organizational behavior specialists emphasized the dif-
ficulties in finding universal principles of managing people that can be applied in all
situations. To make effective use of knowledge about human behavior, one must
understand which factors in a particular situation are most influential.
The contingency approach to management emphasizes that there is no
one best way to manage people or work. A method that leads to high productivity
or morale in one situation may not achieve the same results in another.The contin-
gency approach is derived from the study of leadership styles. Experienced managers
and leaders know that not all workers respond in the exact same way to identical
leadership initiatives. A recurring example is that well-motivated, competent team
members require less supervision than those who are poorly motivated and less
competent. In Chapter 11, we present more information about the contingency ap-
proach to leadership.
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. Its major problem is that it is often used as an excuse for not
acquiring formal knowledge about organizational behavior and management. If
management depends on the situation, why study organizational behavior or man-
agement? The answer, of course, is that a formal study of management helps a man-
ager decide which factors are relevant in particular situations. In the leadership
example just cited, the relevant factors are the skills and motivation of the group
members.
CHAPTER 1 The Nature and Scope of Organizational Behavior

12 Positive Organizational Behavior


An emerging movement in organization behavior is a focus on what is right with
people. The human relations movement was a start in this direction. However, the
movement toward focusing on strengths rather than weaknesses stems directly from
positive psychology, with its emphasis on what is right with people, such as love, work,
and play. Fred 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.13
The criteria of being measurable and developmental are significant because they
separate positive organizational behavior from simply giving pep talks and inspira-
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

tional speeches to employees. An example would be the concept of self-efficacy,


or having confidence in performing a specific task. A worker might be asked
how confident he or she is to perform a difficult task, such as evaluating the risk of
a particular investment. If his or her self-efficacy is not strong enough, additional
experience and training might enhance the person’s self-efficacy.
An everyday application of positive organizational behavior would be for a
manager to focus on employee strengths rather than weaknesses. It is well accepted
that encouraging a worker to emphasize strengths will lead to much more perfor-
mance improvement than attempting to patch weaknesses. Assume that a person is
talented in interpersonal relationships but weak in quantitative analysis.This person
is likely to be more productive by further developing strengths in a position calling
for relationship building. The less productive approach would be overcoming the
weakness in quantitative analysis and attempting to become a financial specialist.
(The point here is not that working on weakness is fruitless, but that capitalizing on
strengths has a bigger potential payoff.)
In general, positive organizational behavior focuses on developing human
strengths, making people more resilient, and cultivating extraordinary individuals,
work units, and organizations.14 All of this is accomplished by careful attention to
well-developed principles and research, rather than simply cheering people on.

5 SKILL DEVELOPMENT IN ORGANIZATIONAL BEHAVIOR


Understand how a per-
son develops organiza-
Developing skill in organizational behavior means learning to work effectively with
tional behavior skills. individuals, groups, and organizational forces. The greater one’s responsibility, the
more one is expected to work well at these three levels.
The distinction between hard skills and soft skills mentioned previously is not
necessarily the distinction between difficult and easy. Hard skills are not better than
soft skills, and vice versa. A chief executive officer (CEO) may have a difficult job,
yet she uses mostly soft skills such as leading others and bringing about organiza-
tional change. In contrast, an entry-level financial analyst might use hard skills in
preparing an analysis. His job, however, might be considered easier than the CEO’s.
Notice also that possessing soft skills often helps a person earn hard money.
Developing most organizational behavior skills is more complex than developing
a structured skill such as conducting a physical inventory or arranging an e-mail ad-
dress book. Nevertheless, you can develop organizational behavior skills by reading
this textbook and doing the exercises.The book follows a general learning model:
1. Conceptual knowledge and behavioral guidelines. Each chapter in this book presents
research-based information about organizational behavior, including a section
titled “Implications for Managerial Practice.”
The Nature and Scope of Organizational Behavior CHAPTER 1

13
Learner Uses
1. Conceptual knowledge and
Exhibit 1-1
behavior guidelines Skill A Model for Developing
2. Conceptual information and Development Organizational Behavior
examples in Organizational
3. Experiential exercises Behavior Skills
4. Feedback on skill
utilization Organizational behavior
5. Frequent practice skills can be developed
by using a systematic
approach.
2. Conceptual information and examples. These include brief descriptions of organi-
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

zational behavior in action, generally featuring managers and leaders.


3. Experiential exercises. The book provides an opportunity for practice and person-
alization through cases and self-assessment exercises. Self-quizzes are included
because they are an effective method of helping you personalize the informa-
tion, 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 exercises appear at
several places in the book. Implementing organizational behavior skills outside
the classroom will provide additional opportunities for feedback.
5. Frequent practice. Readers who look for opportunities to practice organizational
behavior skills outside the classroom will acquire skills more quickly. An impor-
tant 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. Con-
trast this with the individual who participates in a creative-thinking exercise
once, and then attempts the skill a year later when the need is urgent. As in any
field, frequently practicing a skill the right way leads to skill improvement.
As you work through the book, keep the five-part learning model in mind.To
help visualize this basic learning model, refer to Exhibit 1-1.
Developing organizational behavior skills is also important because it contributes
to your lifelong learning. A major theme of the modern organization is that to stay
competitive, a worker has to keep learning and developing.A relevant example is that
as work organizations have become more culturally diverse, it is important to keep
developing one’s skills in working effectively with people from different cultures.

A FRAMEWORK FOR STUDYING


ORGANIZATIONAL BEHAVIOR
A challenge in studying organizational behavior is that it lacks the clear-cut bound-
aries of subjects such as cell biology or French. Some writers in the field consider
organizational behavior to be the entire practice of management. Others focus or-
ganizational behavior much more on the human element and its interplay with the
total organization. Such is the orientation of this textbook. Exhibit 1-2 presents a
basic framework for studying organizational behavior.The framework is simultane-
ously a listing of the contents of Chapters 2 through 17.
Proceeding from left to right, the foundation of organizational behavior is
the study of individual behavior, presented in Chapters 2 though 7. No group or or-
ganization is so powerful that the qualities of individual members do not count.
CHAPTER 1 The Nature and Scope of Organizational Behavior

14
Exhibit 1-2 Individual Group and Interpersonal Relations
Individual differences, mental, Interpersonal communication
A Framework of Studying ability, and personality Group dynamics
Organizational Behavior Learning, perception, and attribution Teams and teamwork
Attitudes, values, and ethics Leadership in organizations
To better understand Individual decision making Power, politics, and influence
organizational behavior, and creativity Conflict, stress, and well-being
Foundation concepts of motivation
recognize that behavior at Motivational methods and programs
the individual, group, and
organizational system and
global environment levels
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

is linked.

The Organizational System


and the Global Environment
Organizational structure and design
Organizational culture
Organizational change and
knowledge management
Cultural diversity and international
organizational behavior

Visualize a famous athletic team with a winning history. Many fans contend that the
spirit and tradition of the team, rather than individual capabilities, carry it through
to victories against tough opponents.Yet if the team has a couple of poor recruiting
years or loses a key coach, it may lose more frequently.
Key factors in understanding how individuals function include individual dif-
ferences, mental ability and personality, learning, perception, attitudes, values, attri-
bution, 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 1-2, the various levels of study are inter-
connected. Understanding how individuals behave contributes to an understanding
of groups and interpersonal relations, the second level of the framework.This will be
studied in Chapters 8 through 13. The topics include communication, group
dynamics (how groups operate), teams and teamwork, and leadership. Although
leadership relates directly to interpersonal relationships, top-level leaders are also
concerned with influencing the entire organization. The study of power, politics,
and influence is closely related to leadership. Conflict, stress, and well-being might
be classified at the individual level, yet these processes are heavily dependent on
interaction with others.
Finally, the third level of analysis in the study of organizational behavior is the
organizational system and the global environment, as presented in Chapters 14
through 17. Components of the organizational and environmental level studied here
include organizational structure and design, organizational culture, organizational
change and knowledge management, cultural diversity, and international (or cross-
cultural) organizational behavior. International organizational behavior could just as
well have been studied before the other topics. Our position, however, is that every-
thing else a person learns about organizational behavior contributes to an under-
standing of cross-cultural relations in organizations.
The connecting arrows in Exhibit 1-2 emphasize the interrelatedness of
processes and topics at the three levels. Motivation provides a clear example. A
The Nature and Scope of Organizational Behavior CHAPTER 1

person’s motivational level is dependent on his or her individual makeup as well as 15


work-group influences and the organizational culture. Some work groups and orga-
nizational cultures energize new members because of their highly charged atmos-
pheres. The arrows also run in the other direction. Highly motivated workers, for
example, improve work-group performance, contribute to effective interpersonal
relationships, and enhance the organizational culture.

IMPLICATIONS FOR MANAGERIAL PRACTICE


Each of the following chapters includes a brief section explaining how managers
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

and professionals can use selected information to enhance managerial practice. Our CVS Stands for Con-
first lesson is the most comprehensive and perhaps the most important: Managers sumer Value Store
should raise their level of awareness about the availability of organizational behavior Visit www.thomsonedu.
com/management/dubrin
information. Before making decisions in dealing with people in a given situation, and watch the video for
pause to search for systematic information about people and organizations. For this chapter. In what
example, if you need to resolve conflict, first review information about conflict res- ways do you think the
olution, such as that presented in Chapter 13.The payoff could be improved man- Emerging Leaders
Program helps achieve
agement of conflict. good person–job fit at
Another key implication from this chapter is to search for strengths and talents CVS?
in others and yourself, and then capitalize on these strengths as a way of improving
organizational and individual effectiveness. Weaknesses should not be ignored, but
capitalizing on strengths has a bigger potential payoff.

SUMMARY OF KEY POINTS


1 Explain what organizational behavior means. common sense. Substantial evidence has accumu-
Organizational behavior is the study of human lated that substantiates that emphasizing the human
behavior in the workplace, the interaction between factor increases productivity and gives a firm a com-
people and the organization, and the organization petitive advantage. Organizational behavior skills
itself. Organizational behavior relates to the process, have increased in importance in the modern work-
rather than the content, of managerial work. place, partly because of the prevalence of diverse
teams.
2 Summarize the research methods of organizational
behavior. 4 Explain key events in the history of organizational
Three frequently used methods of collecting data on behavior.
organizational behavior are surveys (typically ques- The history of organizational behavior parallels the
tionnaires), interviews, and direct observation of behavioral approach to management, including con-
behavior. Four widely used research methods are tributions from classical management. The classical
case studies, laboratory experiments, field experi- approach to management encompasses both scien-
ments, and meta-analysis. The essence of conducting tific and administrative management, and con-
an experiment is to make sure that the independent tributes some insights into understanding workplace
variable influences the results. behavior. The behavioral approach formally began
with the Hawthorne studies. Among the major impli-
3 Identify the potential advantages of organizational cations of these studies were that leadership prac-
behavior knowledge. tices and work-group pressures profoundly influence
Knowledge about organizational behavior offers four employee satisfaction and performance. The human
key advantages: skill development, personal growth, relations movement and the contingency approach
the enhancement of organizational and personal to management are also key developments in
effectiveness, and sharpening and refinement of the history of organizational behavior. The human
CHAPTER 1 The Nature and Scope of Organizational Behavior

16 relations movement was based on the belief that 5 Understand how a person develops organizational
there is an important link among managerial prac- behavior skills.
tices, morale, and productivity. Analysis of Theory X Organizational behavior skills can be developed by fol-
versus Theory Y (pessimistic versus optimistic as- lowing a general learning model that includes the use
sumptions about people) is a key aspect of the move- of conceptual knowledge and behavioral guidelines,
ment. The contingency approach emphasizes taking experiential exercises, feedback on skill utilization, and
into account individual and situational differences in frequent practice. The framework for studying organi-
managing people. An emerging movement in the zational behavior in this textbook emphasizes the in-
field is positive organizational behavior, which fo- terconnectedness of three levels of information: indi-
cuses on measurable human resource strengths and viduals, groups and interpersonal relations, and the
capacities. organizational system and the global environment.
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

KEY TERMS AND PHRASES


Organizational Behavior, 2 Hawthorne Effect, 10
The study of human behavior in the workplace, the inter- The tendency of people to behave differently when they
action between people and the organization, and the orga- receive attention because they respond to the demands of
nization itself. the situation.
Meta-Analysis, 4 Human Relations Movement, 11
A quantitative or statistical review of the literature on a par- An approach to dealing with workers based on the belief
ticular subject; an examination of a range of studies for the that there is an important link among managerial prac-
purpose of reaching a combined result or best estimate. tices, morale, and productivity.
Organizational Effectiveness, 6 Contingency Approach to Management, 11
The extent to which an organization is productive and The viewpoint that there is no one best way to manage
satisfies the demands of its interested parties. people or work but that the best way depends on certain
Behavioral Approach to Management, 8 situational factors.
The belief that specific attention to the workers’ needs Positive Organizational Behavior, 12
creates greater satisfaction and productivity. The study and application of human resource strengths and
Scientific Management, 9 psychological capacities that can be measured, devel-
The application of scientific methods to increase workers’ oped, and managed for performance improvement.
productivity.
Administrative Management, 9
A school of management thought concerned primarily with
how organizations should be structured and managed.

DISCUSSION QUESTIONS AND ACTIVITIES


1. Find somebody in your network who works for, or 5. Work by yourself, or form a small brain-
has worked for, Starbucks (including you) to com- storming group, to furnish an example from
ment on employee treatment by management. physical science in which common sense proves to
2. What contributions might organizational behavior be untrue.
knowledge make in the Internet age? 6. Have you ever worked for a manager who held The-
3. What does it mean to say that organizational behav- ory X assumptions about people? What was the
ior relates to the process—as opposed to the impact of his or her assumptions on your motivation
content—of a manager’s job? and satisfaction?
4. Give a possible explanation why meta-analysis is 7. Get together with a few classmates. Develop a list of
considered so important in evaluating the effective- strengths of group members that you think if further
ness of prescription drugs. developed would be career assets, and explain why
these strengths might be assets.
The Nature and Scope of Organizational Behavior CHAPTER 1

17
CASE PROBLEM: The Hands-On CEO of JetBlue
The first thing you notice when getting on board is the A320’s 180-seat maximum. Flyers are ecstatic about
new-car smell. “No wonder,” says the flight attendant, the JetBlue experience. It begins with pricing, which is
hearing your remark. She points to a metal plaque on competitive and doesn’t torture consumers with require-
the doorway rim that says the Airbus A320 was deliv- ments like Saturday-night stays. JetBlue is attracting
ered 1 month ago. Other notable features are the free business travelers, the industry’s most valuable passen-
cable on your personal video screen and the leather gers and the source of up to 50 percent of its profits.
seats. Flight attendants are trained on how to give ser- A JetBlue spokesperson said, “We see our cus-
vice with a retro flair. All attendants have to learn how to tomers as the same ones who can afford more but shop
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

strut proudly, as if there were an imaginary string at Target because their stuff is hip but inexpensive.”
between their chin and belly button. That kind of thinking drove decisions like JetBlue’s
JetBlue attendants have a sense of fun about their choice of leather seats instead of less expensive cloth.
jobs, and the can-do pilot informs over the public ad- “It’s a nicer look, a better feel,” says Neeleman, in full
dress system that yes, there’s a major storm coming into salesman mode. Nevertheless, as JetBlue became sev-
the New York City area but that we’ll get there on time eral years old, their sections of airline terminals, such as
anyway. And the plane and passengers do. So the trav- JFK (serving New York City), had the same worn-down
eler wonders. Is this for real? Or maybe the right ques- look with cracked leather seats as other airlines.
tion is, “How long can they keep up this nonsense?” Neeleman obsesses over keeping employees happy,
JetBlue was rated highest in customer satisfaction of all and with good reason. Airline watchers say JetBlue’s
U.S. airlines in Condé Nast Traveler magazine’s 2005 ability to stay union-free is critical to its survival as a low-
Business Travel Awards—the fourth time in 6 years. cost carrier. The industry’s labor-relations record is weak.
Just as discontent with airlines was mounting in “But if there is anyone who realizes the importance of
2000, JetBlue Airlines came into being with a new atti- treating their employees right, it’s the management team
tude, new planes, and a new concept of service. What at JetBlue,” says airline analyst Holly Hegeman.
perfect takeoff timing for a carrier that is trying to bring JetBlue employees get profit-sharing checks,
pleasure and even style back to flying. JetBlue is low- amounting to 17 percent of their salary in recent years.
price and all-coach, like Southwest Airlines, yet hip and Also, 84 percent of JetBlue employees participate in a
sassy, like Virgin Atlantic. In the air, JetBlue offers the company stock purchase program, in which they can
plush seats and satellite TV; on the ground it offers a buy stock at a 15 percent discount.
high level of efficiency. On September 21, 2005, JetBlue Flight 292 in Los
JetBlue has achieved an impressive profit picture. Angeles narrowly escaped a crash when its front land-
Of the hundreds of start-ups since the industry was ing gear stuck sideways, so the plane had to land while
deregulated in 1978, only Southwest Airlines and metal scraped the runway instead of the wheels rolling
JetBlue have sustained their success. For 2005, JetBlue in their intended manner. The day after the mishap
had a net income of approximately $60 million for Neeleman released a statement acknowledging the
$1.3 billion in revenue, with over 80 percent of seats problem, and thanking everyone concerned for their as-
being filled. sistance and emotional support. Neeleman’s public
Credit CEO David Neeleman, who founded the firm statement included these words:
at age 41, for piloting JetBlue past the early disasters
The crew of Flight 292 has asked us to communi-
that typically befall fledgling carriers. For starters,
cate their appreciation to the 140 customers on
Neeleman raised $160 million from investors—almost
board for their cooperation, and they are also
triple what other new airline entrants have managed to
grateful for the messages of support sent to Jet-
obtain. The hefty sum is insurance against any unfore-
Blue by thousands of people. The crew looks for-
seen cash crunch.
ward to returning to their families and loved ones,
Consumers are usually concerned about the safety
and to their normal lives as quickly as possible.
issue with “new” airlines that fly 25-year-old planes.
JetBlue flies only factory-fresh, state-of-the-art A320s. Neeleman is one of seven siblings, and has nine
Neeleman has fitted each with 162 seats—versus the children of his own. He has been dreaming about
(continued)
CHAPTER 1 The Nature and Scope of Organizational Behavior

18
CASE PROBLEM (Continued)
airplanes since he saw a red one on his second birthday To manage the company, Neeleman emphasizes
cake. A serial travel entrepreneur, he has launched four the quality of supervisors. The company has one
airlines, including Morris Air and Canada’s WestJet supervisor for every 80 employees. Neeleman tells the
Airlines, with each one being more successful than the supervisors, “You can know 80 people. You can know
last. Neeleman, with a strong interest in information who they’re married to, you can know who their kids
technology, developed the computer system that are, and what their challenges are.” In this way
became the basis for e-ticketing. JetBlue employees know there is a personal touch to
Neeleman notes that despite heavy competition, the company.
Andrew J. DuBrin, Fundamentals of Organizational Behavior, 4/e, Mason, OH:Thomson South-Western, 2007

JetBlue’s profit margins are the highest in the industry.


He attributes part of the company’s success to selecting Case Questions
the right people, which is especially important because 1. In what way does Neeleman demonstrate an
an airline is a people business. “We have a saying at Jet- understanding of organizational behavior?
Blue that you’re either serving a customer or serving 2. So what’s wrong with a pilot staying in the cockpit
someone who is serving a customer.” in terms of being a contributor to a people-oriented
An example of the selection process at JetBlue was business?
an applicant pilot who was furious about being rejected. 3. How else might Neeleman make use of organiza-
The pilot telephoned Neeleman and explained that he tional behavior knowledge to improve the chances
had 15,000 hours of flying experience. Neeleman then of JetBlue Airlines staying successful?
spoke to the interviewer, who said that she asked the Sources: Sally B. Donnelly, “Blue Skies: Is Jet Blue the Next Great Airline—
pilot, “You’ve flown for 15,000 hours, tell us one thing Or Just a Little Too Good to Be True?,” July 30, 2001 Time, pp. 24–27; Eric
Gillin, “JetBlue Soars Past Profit Targets,” TheStreet.com, July 25, 2002;
that you’ve done besides just sitting there and flying the (http://www.thestreet.com/pf/tech/earnings/10034305.html); “On the Record:
airplane.” He couldn’t come up with a single example. David Neeleman, JetBlue Airways, http://www.sfgate.com, September 12,
He retorted, “What do you mean by that? I’m a pilot, and 2004; JetBlue Airways Voted Best in Class and Best Value for Cost . . .
Again,” www.primezone.com, September 29, 2005; “Statement by JetBlue
that’s what I do.” The interviewer explained that the CEO David Neeleman Regarding Flight 292, http://www.primezone.com,
pilot was not somebody JetBlue wants in the company. September 22, 2005.

ENDNOTES
1. Gregory Morehead and Ricky W. Griffin, Organizational Behav- 8. Frederick W. Taylor, Principles of Scientific Management
ior: Managing People and Organizations, 4th ed. (Boston: (New York: W. W. Norton, 1911), p. 9.
Houghton Mifflin, 1995), p. 3. 9. Champoux, Organizational Behavior, p. 12.
2. Piers D. Steel and John D. Kammeyer-Mueller, “Comparing 10. E. J. Roethlisberger and W. J. Dickson, Management and the
Meta-Analytic Techniques under Realistic Conditions,” Journal Worker (Cambridge, MA: Harvard University Press, 1939);
of Applied Psychology, February 2002, p. 107. Wertheim, pp. 2–3.
3. Jon Surmacz, “The Hard Truth: Soft Skills Matter,” CIO Maga- 11. H. McIlvaine Parsons, “What Caused the Hawthorne Effect? A
zine, January 15, 2005, p. 1. Scientific Detective Story,” Administration & Society, November
4. Robert P. Vecchio, Organizational Behavior: Core Concepts, 1978, pp. 259–283.
6th ed. (Mason, OH: South-Western/Thomson Learning, 2003), 12. Douglas McGregor, The Human Side of Enterprise (New York:
pp. 5–6. McGraw-Hill, 1960), pp. 33–57.
5. Jeffrey Pfeffer, The Human Equation (Boston: Harvard Business 13. Fred Luthans, “Positive Organizational Behavior: Developing
School Press, 1998), p. 59. and Managing Psychological Strengths,” Academy of Manage-
6. Cited in Anne Fisher, “Turn Star Employees into Superstars,” ment Executive, February 2002, p. 59.
Fortune, December 13, 2004, p. 70. 14. Kim Cameron, Jane Dutton, Rover Quinn, and Gretchen Spreitzer,
7. Joseph E. Champoux, Organizational Behavior: Essential “What Is Positive Organizational Scholarship?” http://www.
Tenets (Mason, OH: South-Western/Thomson Learning, 2003), bus.umich.edu/Positive/WhatisPOS/, accessed September 29,
pp. 11–12; Edward G. Wertheim, “Historical Background of 2005.
Organizational Behavior,” http://web.cba.neu.edu/~ewertheim/
introd/history.htm, accessed March 16, 2006.

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