OB Fundamentals
OB Fundamentals
Manager: Someone who gets things done through other people in organizations.
• Organization: A consciously coordinated social unit composed of two or more people that functions on a
relatively continuous basis to achieve a common goal or set of goals.
– Planning, organizing, leading, and controlling.
• Mintzberg concluded that managers perform ten different, highly interrelated roles or sets of behaviours
attributable to their jobs.
Organizational behavior (OB) is a field of study that investigates the impact that individuals,
groups, and structure have on behavior within organizations for the purpose of applying such
knowledge toward improving an organization’s effectiveness.
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6. Complementing Intuition with Systematic Study
• Systematic Study of Behavior
– Behavior generally is predictable if we know how the person perceived the situation and what
is important to him or her.
• Evidence-Based Management (EBM)
– Complements systematic study.
– Argues for managers to make decisions based on evidence.
• Intuition
– Systematic study and EBM add to intuition, or those “gut feelings” about “why I do what I do”
and “what makes others tick.”
– If we make all decisions with intuition or gut instinct, we’re likely working with
incomplete information.
7. Big Data
• Background:
– The use of Big Data for managerial practices is a relatively new area, but one that holds
convincing promise.
• Current Usage:
– The reasons for data analytics include predicting any event, detecting how much
risk is incurred at any time, and preventing catastrophes.
• New Trends:
– The use of Big Data for understanding, helping, and managing people is
relatively new but holds promise.
• Limitations:
– Use evidence as much as possible to inform your intuition and experience.
8. Identify the Major Behavioural Science Disciplines That Contribute to OB
• Organizational behaviour is an applied behavioural science that is built upon contributions from a
number of behavioral disciplines:
– Psychology
– Social psychology
– Sociology
– Anthropology
Exhibit 1-3 Toward an OB Discipline
• • Psychology
– seeks to measure, explain, and sometimes change the behaviour of humans and
other animals.
Social psychology
– blends the concepts of psychology and sociology.
• Sociology
– studies people in relation to their social environment or culture.
• Anthropology
– is the study of societies to learn about human beings and their activities.
9. Demonstrate Why Few Absolutes Apply to OB
There are few, if any, simple and universal principles that explain organizational behaviour.
• Contingency variables situational factors are variables that moderate the relationship between the
independent and dependent variables.
10. Identify the Challenges and Opportunities of OB Concepts
• Inputs
– Variables like personality, group structure, and organizational culture that lead to processes.
– Group structure, roles, and team responsibilities are typically assigned immediately before or
after a group is formed.
– Organizational structure and culture change over time.
• Processes
– If inputs are like the nouns in organizational behavior, processes are like verbs.
– Defined as actions that individuals, groups, and organizations engage in as a result of inputs, and
that lead to certain outcomes.
• Outcomes
– Key variables that you want to explain or predict, and that are affected by some other variables.
12. Outcome Variables
• Attitudes and stress
– Employee attitudes are the evaluations employees make, ranging from positive to negative,
about objects, people, or events.
– Stress is an unpleasant psychological process that occurs in response to environmental
pressures.
• Task performance
– The combination of effectiveness and efficiency at doing your core job tasks is a
reflection of your level of task performance.
• Organizational citizenship behavior
– The discretionary behavior that is not part of an employee’s formal job
requirements, and that
contributes to the psychological and social environment of the workplace, is called
organizational citizenship behavior.
• Withdrawal behavior
– Withdrawal behavior is the set of actions that employees take to separate
themselves from the organization.
• Group cohesion
– Group cohesion is the extent to which members of a group support and validate one
another at work. • Group functioning
– Group functioning refers to the quantity and quality of a group’s work output.
• Productivity
– An organization is productive if it achieves its goals by transforming inputs into outputs at the
lowest cost. This requires both effectiveness and efficiency.
• Survival
– The final outcome is organizational survival, which is simply evidence that the organization is
able to exist and grow over the long term.
• Perception is a process by which individuals organize and interpret their sensory impressions to give meaning
to their environment.
• It is important to the study of OB because people’s behaviors are based on their perception of what reality is,
not on reality itself.
Exhibit 5-1 Factors That Influence Perception
Stereotyping – Judging someone based on one’s perception of the group to which that person belongs.
We have to monitor ourselves to make sure we’re not unfairly applying a stereotype in our
evaluations and decisions.
Applications of Shortcuts in Organizations
– Employment Interview
Evidence indicates that interviewers make perceptual judgments that are often inaccurate.
Interviewers generally draw early impressions that become very quickly
entrenched.
–Studies indicate that most interviewers’ decisions change very little after the first four
or five minutes of the interview.
Performance Expectations
– Evidence demonstrates that people will attempt to validate their perceptions of reality, even
when those perceptions are faulty.
Self-fulfilling prophecy, or the Pygmalion effect, characterizes the fact that people’s expectations
determine their behavior.
Expectations become reality.
Performance Evaluation
– An employee’s performance appraisal is very much dependent upon the perceptual process.
Many jobs are evaluated in subjective terms.
Subjective measures are problematic because of selective perception, contrast effects, halo effects, and so
on.
Personality
1. Describe Personality, the Way It Is Measured, and the Factors that Shape It
• Defining Personality
– Personality is a dynamic concept describing the growth and development of a
person’s whole psychological system.
– The sum of ways in which an individual reacts to and interacts with others.
• Measuring Personality
– Managers need to know how to measure personality.
Personality tests are useful in hiring decisions and help managers forecast who is
best for a job.
– The most common means of measuring personality is through self-report surveys.
• Personality Determinants
– Is personality the result of heredity or environment? – Heredity refers to those factors that were
determined at conception.
The heredity approach argues that the ultimate explanation of an
individual’s personality is the molecular structure of the genes, located in
the chromosomes.
• Early research tried to identify and label enduring personality characteristics.
– Shy, aggressive, submissive, lazy, ambitious, loyal, and timid.
These are personality traits.
2. Strengths and Weakness of the MBTI and Big Five Model
• The most widely used personality framework is the Myers-Briggs Type Indicator
(MBTI).
• Individuals are classified as:
– Extroverted or Introverted (E or I)
– Sensing or Intuitive (S or N)
– Thinking or Feeling (T or F)
– Perceiving or Judging (P or J)
• INTJs are visionaries.
• ESTJs are organizers.
• ENTPs are conceptualizers.
• The Big Five Model
– Extraversion
– Agreeableness
– Conscientiousness
– Emotional stability
– Openness to experience
Exhibit 4-1 Traits That Matter Most to Business Success at Buyout Companies
Most Important Less Important
Efficiency Flexibility/adaptability
Detail Orientation Social Skills Competitive Innovatio Dealing with Time Pressure
Required Required Work n Angry People (Deadlines)
Required
• Maslow’s need theory has received wide recognition, particularly among practicing managers.
– It is intuitively logical and easy to understand and some research has validated it.
– However, most research does not, and it hasn’t been frequently researched since the 1960s.
Exhibit 7-2 Comparison of Satisfiers and Dissatisfiers
• Expectancy theory helps explain why a lot of workers aren’t motivated and do only the
minimum.
• Three questions employees need to answer in the affirmative if their motivation is to be
maximized: – If I give maximum effort, will it be recognized in my performance appraisal?
– If I get a good performance appraisal, will it lead to organizational rewards?
– If I’m rewarded, are the rewards attractive to me?
5. Forms of Organizational Justice
Exhibit 7-7 Equity Theory
Ratio Comparisons* Perception
IA=OIB O Equity
• When employees perceive an inequity, they can be predicted to make one of six choices:
– Change inputs.
– Change outcomes.
– Distort perceptions of self.
– Distort perceptions of others.
– Choose a different referent.
– Leave the field.
• Justice Outcomes
– All the types of justice discussed have been linked to higher levels of task performance and
citizenship. – Third-party, or observer, reactions to injustice can be substantial.
• Promoting Justice
– Adopting strong justice guidelines in an attempt to mandate certain managerial behavior isn’t
likely to be universally effective.
• Culture and Justice
– Inputs and outcomes are valued differently in various cultures.
Note: Society for Human Resources Management (SHRM) survey of 501 individuals and how drinking is
viewed in their organization at a range of workrelated activities.
• Ingroups and Outgroups
o Ingroup favoritism occurs when we see members of our group as better than other
people, and people not in our group as all the same.
o Whenever there is an ingroup, there is by necessity an outgroup, which is sometimes
everyone else, but is usually an identified group known by the ingroup’s members.
• Social Identity Threat
o Ingroups and outgroups pave the way for social identity threat, which is akin to
stereotype threat. – Individuals believe they will be personally negatively evaluated due
to their association with a devalued group, and they may lose confidence and
performance
o effectiveness.
2. Describe the Punctuated Equilibrium Model
Exhibit 9-1 The Punctuated-Equilibrium Model
Show How Role Requirements Change
• Role: a set of expected behavior patterns attributed to someone occupying a given position in a
social unit. – Role perception: one’s perception of how to act in a given situation.
– Role expectations: how others believe one should act in a given situation.
▪ Psychological contract
• Role conflict: situation in which an individual faces divergent role expectations.
– We can experience interrole conflict when the expectations of our different,
separate groups are in opposition.
• Role Play and Assimilation
– Philip Zimbardo’s prison experiment.
▪ Participants easily and rapidly assumed roles that were very different from their
inherent personalities.
3. Show How Norms Exert Influence On An Individual’s Behavior
• Norms:
– Acceptable standards of behavior within a group that are shared by the group’s members.
• Norms and Emotions
– A recent study found that, in a task group, individuals’ emotions influenced the group’s
emotions and vice versa.
– Researchers have also found that norms dictated the experience of emotions for the
individuals and for the groups – in other words, people grew to interpret their shared
emotions in the same way.
Exhibit 9-2 Examples of Cards Used in Asch’s Study
Property Sabotage
Exhibit 9-4 Relationship Between Group Cohesiveness, Performance Norms, and Productivity
• Diversity: degree to which members of the group are similar to, or different from, one
another.
– Increases group conflict, especially in the short term.
• Culturally and demographically diverse groups may perform better over time.
– May help them be more open-minded and creative.
• Faultlines
6. Group Decision Making
• Strengths of group decision making: – More complete information and
knowledge – Increased diversity of views
– Increased acceptance of solutions
• Weaknesses of group decision making: – Time consuming
– Conformity pressures
– Dominance of a few members
– Ambiguous responsibility
• Effectiveness and efficiency of group decisions: – Accuracy
– Speed
– Creativity
– Acceptance
• Groupthink: situations in which group pressures for conformity deter the group from
critically appraising unusual, minority, or unpopular views.
• Groupshift: a change between a group’s decision and an individual decision that a member
within the group would make.
• Most group decision making takes place in interacting groups.
– Members meet face-to-face and rely on both verbal and nonverbal interaction to
communicate with each other.
• Interacting groups often censor themselves and pressure individual members toward conformity of
opinion.
• Brainstorming can overcome pressures for conformity. – In a brainstorming session:
▪ The group leader states the problem.
▪ Members then “free-wheel” as many alternatives as they can.
▪ No criticism is allowed.
▪ One idea stimulates others, and group members are encouraged to “think
the unusual.”
• The nominal group technique: restricts discussion or interpersonal communication during the
decision making process.
– Group members are all physically present, but members operate
independently.
– Permits the group to meet formally but does not restrict independent thinking, as does the
interacting group.
• Nominal groups outperform brainstorming groups.
• Steps for a nominal group:
– Each member independently writes down his/her ideas on the problem.
– After this silent period, each member presents one idea to the group.
– The ideas are discussed for clarity.
– Each group member rank-orders the ideas.
– The idea with the highest aggregate ranking determines the final decision.
• Team Processes
– Common Plan and Purpose
▪ Reflexivity
– Specific Goals
– Team Efficacy
– Team Identity
– Team Cohesion
– Mental Models
– Conflict Levels
– Social Loafing
4. Explain How Organizations Can Create Team Players
• Creating Team Players
– Selecting: hire team players
– Training: create team players
– Rewarding: incentives to be a good team player
5. Decide When to Use Individuals Instead of Teams
• When not to use teams…
• Ask:
– Can the work be done better by one person? – Does the work create a common
goal or purpose? – Are the members of the group interdependent?
6. Implications for Managers
• Effective teams have adequate resources, effective leadership, a climate of trust, and a performance
evaluation and reward system that reflects team contributions. These teams have individuals with
technical expertise, and the right traits and skills.
• Effective teams tend to be small. They have members who fill role demands and who prefer to be part
of a group.
• Effective teams have members who believe in the team’s capabilities, are committed to
a common plan and purpose, and have an accurate shared mental model of what is to
be accomplished.
• Select individuals who have the interpersonal skills to be effective team players, provide
training to develop teamwork skills, and reward individuals for cooperative efforts.
• Do not assume that teams are always needed. When tasks will not benefit from
interdependency, individuals may be the better choice.