Essentials of

Organizational Behavior

Stephen P. Robbins & Timothy A. Judge

Chapter 1
Introduction to
Organizational Behavior
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 After reading this chapter, you s
hould be able to:

1. Define organizational behavior (OB).

2. Explain the value of the systematic study of OB.
3. Identify the contributions made to OB by major behavior
al science disciplines.
4. Describe how OB concepts can help make organizations
more productive.
5. List the major challenges and opportunities for manager
s to use OB concepts.
6. Identify the three levels of analysis in OB.
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 What is Organization Behavio
r?
An organization is a collection of people who
work together to achieve a wide variety of g
oals.
Organizational behavior (OB) is defined as
actions and attitudes of people in the organiz
ation. It is the study of human behavior in or
ganizational settings, how human behavior in
teracts with the organization, and the organi
zation itself.
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 The Field of Organizational Beha
vior
Organizational Behavior studies the influ
ence that individuals, groups and structu
re have on behavior within organizations
.

Its chief goal is to apply that knowledge

toward improving an organization’s effec
tiveness.

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 Usefulness of OB to Manager
s

It can help managers understand the comple

xity within the organization, identify the prob
lems, determine the best ways to correct the
m, and establish whether the changes would
make a significant difference.

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 The Nature of Organizational
Behavior

Environment

Individual
The Individual-
Human Behavior
Organization
In
Interface
Organization

The Organization

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 Historical Roots of Organizati
on Behavior
1. Scientific Management. One of the first appro
aches to the study of management during the 1900
s, was scientific management. Individuals who hel
ped develop and promote scientific management i
ncluded Frank and Lillian Gilbreth, Henry Gantt, Har
rington Emerson and Fredric Taylor scientific mana
gement is Taylor.
- Early in his life, Taylor developed an interest in eff
iciency and productivity. He scientifically studied all
jobs and developed a standardized method of perfo
rming each one.
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 Historical Roots of Organizati
on Behavior
- Taylor also installed a piece-rate pay system in w
hich each worker was paid for the amount of work
he completed during the workday rather than for th
e time spent on the job. He believed that money w
as the only motivational factor in the workplace. Hi
s innovations resulted in a marked increase in prod
uctivity and serve as the foundation of scientific ma
nagement. Quickly scientific management became
a mainstay of business practice.

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 Historical Roots of Organizati
on Behavior
2. Classical Organization Theory. During the sa
me era, another perspective on management theor
y and practice was also emerging, generally referre
d to as classical organization theory. This perspecti
ve is concerned with structuring organizations effec
tively. This theory focused on how a large number
of workers and managers could be most effectively
organized into an overall structure. The major contr
ibutors are: Henri Fayol, Lyndall Urwick, and Max W
eber.
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 Historical Roots of Organizati
on Behavior
Weber the most prominent, proposed a “bureaucrat
ic” form of structure that he believed would work fo
r all organizations. Weber’s model of bureaucracy e
mbraced logic, rationality, and efficiency. A bureauc
racy is an organization in which tasks are specialize
d under a given set of rules and hierarchy of author
ity. This model is characterized by division of labor.
Division of labor is the separation of work loads int
o small segments to be performed by one or more
people. Tasks are assigned through division of labo
r.
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 Historical Roots of Organizati
on Behavior
However, creativity of workers are low since
the procedures are invariable, the tasks assig
ned for each job become routine for the emp
loyee. It also lead to an impersonal work env
ironment, lacking incentives for extraordinary
task performance and ultimately limiting the
growth potential of individual employees.

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 Historical Roots of Organizati
on Behavior

In contrast to Weber’s view, contemporary organiza

tion theorists recognize that different structures ma
y be appropriate in different situations. However, c
lassical organization theory played a major role in t
he development of management thought. Weber’s
ideas and concepts associated with his bureaucratic
structure are still interesting and relevant today.

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 Historical Roots of Organizati
on Behavior
3. The Emergence of Organizational Beh
avior. Both scientific management and classi
cal organization theory ignored altogether or
gave minimal attention to the roles of individ
uals and groups in organization. However, fe
w early writers and managers recognized the
importance of individual and social processes
in organization.

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 Historical Roots of Organizati
on Behavior
a. Precursors of Organizational Behavior.
In the early 19th century, Robert Owen (
British Industrialist) attempted to improve th
e conditions of industrial workers – improved
working conditions, raised minimum ages for
hiring children, introduced meals for employe
es, and shortened working hours.

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 Historical Roots of Organizati
on Behavior
In the early 20th century, Hugo Munster
berg (German Psychologist) argued that the f
ield of psychology could improve important i
nsights into areas such as motivation and hiri
ng of new employees.
Another writer in the early 1900s, Mary
Parker Follett, argued that organizations sho
uld strive harder to accommodate their empl
oyees’ human needs.
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 Historical Roots of Organizati
on Behavior
The views of Owen, Munsterberg and F
ollett, however, were not widely shared by pr
acticing managers. Not until 1930’s did notab
le change occur in management’s perception
of the relationship between individual and th
e workplace. A series of classic research stud
ies led to the emergence of organizational be
havior in the filed of study.

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 Historical Roots of Organizati
on Behavior
b. The Hawthorne Studies.
The Hawthorne studies were conducted betw
een 1927 and 1932 at Western Electric’s Hawthorne
plant in Chicago. Several researchers were involved
, the best known being Elton Mayo and Fritz Roethli
sberger (Harvard University faculty members and c
onsultants) and William Dickson (chief Employee of
Hawthorne Employee Relations Research Departme
nt).

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 Historical Roots of Organizati
on Behavior
The Hawthorne researchers concluded t
hat human element in the workplace was co
nsiderably more important, individual and so
cial processes are too important to ignore. Li
ke its precursors, the Hawthorne Studies wer
e major factor in the advancement of organiz
ational behavior.

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 Historical Roots of Organizati
on Behavior
c. The Human Relations Movement
The basic premises underlying the human rel
ations movement are that people respond primarily
to their social environment, that motivation depend
more on social needs than economic needs, that sa
tisfied employees work harder than unsatisfied emp
loyees. This theory shift away from the philosophy
and values of scientific management and classical o
rganization theory.

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 Historical Roots of Organizati
on Behavior
The Behavioral Theory of Management
holds that all people have complex needs, de
sires and attitudes. The fulfillment of needs i
s the goal which employees are motivated. E
ffective leadership matches need-fulfillment r
ewards with desired behaviors (tasks) that a
ccomplish organizational goals.

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 Historical Roots of Organizati
on Behavior
The values of human relationists are exemplifi
ed by the works of Douglas McGregor and Abraham
Maslow.
- McGregor in his classical book Human Side
of Enterprise identified two opposing perspectives t
hat he believed typified managerial views of employ
ees. He labeled it Theory X. Theory X, which takes
a pessimistic view on human nature and employee
behavior. A much more optimistic and positive vie
w of employees is found in Theory Y.
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 Historical Roots of Organizati
on Behavior
In 1943, Abraham Maslow published a p
ioneering psychological theory applicable to
employee motivation that became well know
n and widely accepted among managers kno
wn as Abraham Maslow’s Hierarchy of Needs
.

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 Historical Roots of Organizati
on Behavior
d. Toward Organizational Behavior
The emergence of organizational behavi
or as a mature field of study began in the lat
e 1950s and early 1960s. That period saw th
e field’s evolution from simple assumptions a
nd behavioral models of human relationists t
o the concepts and methodologies of a scient
ific discipline.

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 Contemporary Organization Beh
avior
Organizational Behavior studies the influenc
e that individuals, groups and structure have on
behavior within organizations
Characteristics of Organizational Behavior:
1. An Interdisciplinary Focus. OB synthesize
s several fields of study such as:
a. Psychology – organizational psychologists spe
cifically address the behavior of people in organi
zational settings.

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 Contemporary Organization Beh
avior
b. Sociology – because a major concern of or
ganizational behavior is the study of organiza
tion structures, the field clearly overlaps with
areas of sociology that focus on the organiza
tion as a social system.
c. Anthropology – culture is a major influenc
e on the structure of organization as well as
on the behavior of individual people within th
e organization
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 Contemporary Organization Beh
avior
d. Political Science – areas in political science like h
ow and why people acquire power, political behavio
r, decision-making, conflict, the behavior of interest
group, and coalition formation are also major areas
of interest in organizational behavior.
e. Economics - organizational behaviorists share th
e economist’s interests of topics such as labor mark
ets dynamics, productivity, human resource plannin
g and forecasting, and cost-benefit analysis.

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 Contemporary Organization B
ehavior
f. Engineering – work measurement, work flo
w analysis and design, and labor relations ar
e obviously areas relevant to organizational b
ehavior.
g. Medicine – recently medicine has influence
d organizational behavior in connection with
the study of human behavior at work, specifi
cally in the area of stress.

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 Contemporary Organization B
ehavior
2. Descriptive in Nature. The primary goal
of organization behavior is to describe relatio
nships between two or more behavioral varia
bles.

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 Focal Points of OB

• Jobs
• Work
• Absenteeism
• Employment turnover
• Productivity
• Human performance
• Management

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 Challenges and Opportunities
for OB
• The workplace is contains a wide mix of culture
s, races, ethnic groups, genders and ages
• Employees have to learn to cope with rapid cha
nge due to global competition
• Corporate loyalty has decreased due to corpora
te downsizing and use of temp workers
• Managers can benefit from OB theory and conc
epts

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 Responding to Globalization
• Increased foreign assignments
 Differing needs and aspirations in
workforce
• Working with people from differ
ent cultures
 Domestic motivational techniques
and managerial styles may not wo
rk
• Overseeing movement of jobs t
o countries with low-cost labor

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 Managing Workforce Diversit
y

Workforce diversity:
organizations are beco
ming a more heterogene
ous mix of people in ter
ms of gender, age, race,
ethnicity, and sexual ori
entation

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 Diversity Implications

“Managers have to shift their

philosophy from treating ever
yone alike to recognizing diffe
rences and responding to tho
se differences in ways that en
sure employee retention and
greater productivity while, at
the same time, not discrimina
ting.”

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 OB Offers Insights Into:

• Improving quality and pro

ductivity
• Customer service and build
ing a customer-responsive
culture
• Developing people skills

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 OB Aids in Dealing With:
• Stimulating Innovation an
d Change
• Increasing “temporariness
” in the workplace
• Helping employees balanc
e work-life conflicts
• Improving ethical behavio
r

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 Thinking Positive

• Creating a positive work environment can b

e a competitive advantage
• Positive Organizational Scholarship (P
ositive OB):
 Examines how organizations develop human st
rengths, foster vitality and resilience, and unlo
ck potential.
 Focus is on employee strengths, not their wea
knesses.
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 Interactionism
Interactionism is a relatively new approach to u
nderstanding behavior in organizational settings
. This view assumes that individual behavior res
ults from a continuous and multidirectional inter
action between the characteristics of a person a
nd characteristics of a situation. More specificall
y, interactionism attempts to explain how peopl
e select, interpret, and change various situation
s.

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 Three Levels of OB Analysis

Chapters 14 - 16

Chapters 8 - 13

Chapters 2 - 7

Plan of the Book

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 Implications for Managers

• OB helps with:
 Insights to improve people skills
 Valuing of workforce diversity
 Empowering people and creating a posit
ive work environment
 Dealing with labor shortages
 Coping in a world of temporariness
 Creating an ethically healthy work envir
onment

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 Keep in Mind…

• OB’s goal is to understand and predict hum

an behavior in organizations.
• Fundamental consistencies underlie behavi
or.
• It is more important than ever to learn OB
concepts.
• Both managers and employees must learn
to cope with temporariness.
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 Summary

1. Defined Organizational Behavior (OB).

2. Explained the value of the systematic study of OB.
3. Identified the contributions made to OB by major b
ehavioral science disciplines.
4. Described how OB concepts can help make organiza
tions more productive.
5. Listed the major challenges and opportunities for m
anagers to use OB concepts.
6. Identified the three levels of analysis in OB.
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-41