Professional Documents
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What Is Organizational Behavior?: Mcgraw-Hill/Irwin
What Is Organizational Behavior?: Mcgraw-Hill/Irwin
What Is Organizational Behavior?: Mcgraw-Hill/Irwin
1 Organizational
Behavior?
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Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
Human Factor at the Workplace
1900’s: Scientific Management
Job analysis as the basis of
selection, training and
compensation
Pay for performance
The worker as an
economic actor
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1915’s:
World War I
The importance of selection
and training emphasized due
to army recruitment
Employment of Tests and
Assessments
Tight labor markets due to
army recruitment
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1930’s:
Hawthorne Experiments
The worker as a social
actor
Group identity
Group norms
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1950’s-1970’s
Socio-technical
systems
Job enrichment
concerns as technology
develops
Motivation theories
Motivating and
retaining a highly
qualified workforce Slide
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1980’s:
U.S. Demise, Japanese on the Rise
Japanese success investigated:
Intensive socialization
Extensive training
Teamwork
Lifetime employment
Seniority-based compensation
Differences in national culture
Collectivism: Long-term perspective on
relationships, strong normative pressures for
group welfare, conformity
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1990s and on:
The New Competitive Environment
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What Makes a Resource Valuable?
Rare
Resources, people
Inimitable
History
A collective pool of experience, wisdom, and knowledge that
benefits the organization
Numerous small decisions
People make many small decisions day-in and day-out, week-in
and week-out
Socially complex resources
Culture, teamwork, trust, reputation
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Illustrative case:
Southwest Airlines
No economies of scale
Existed after airlines deregulation
No unique technology (Boeing 737s)
Did all its marketing
Did not operate a hub-and-spoke route system
Flying non-stop origin to destination
Used uncongested airports
“No frills” service
Only drinks and snacks
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The Competition
Continental Lite gave up the fight, hired a new CEO, and has
successfully gone back to their original strategy.
Kiwi Air is in Chapter 11 for the 2nd time.
New low-cost airlines have emerged (e.g., Vanguard, Frontier,
Jet Blue, and Pan Am); some have already failed (Western
Pacific, Pan Am).
Delta and USAir have begun low-cost airlines, Delta Express
and MetroJet.
United’s Shuttle cut back flights on 4 of 10 routes in California
and is running at about breakeven.
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Southwest Airlines:
Competitive Advantage
COMPETITIVE ADVANTAGE:
Low cost airlines
Fewer personnel who work
efficiently
Lower turnaround time
Exceptional service
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Figure 1-1
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True or False?
Money is the best motivator
People generally shy away from challenges on the job
Specific goals make people nervous; people work
better when asked to do their best
Because “two heads are better than one”, groups
make better decisions than individuals
People who are satisfied with one job tend to be
satisfied with other jobs, too
People get bored easily, leading them to welcome
organizational change
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How Do We Know
Method of Experience – People hold firmly to some belief
because it is consistent with their own experience and
observations.
Method of Intuition – People hold firmly to some belief
because it “just stands to reason”—it seems obvious or self-
evident.
Method of Authority – People hold firmly to some belief
because some respected official, agency, or source has said it
is so.
Method of Science – People accept some belief because
scientific studies have tended to replicate that result using a
series of samples, settings, and methods.
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The Scientific Method
Figure 1-3
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Scientific Studies, cont’d
Correlation (r)
Describes the statistical relationship between two
variables
Can be positive or negative and range from 0 (no
statistical relationship) to ± 1 (a perfect statistical
relationship)
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Different Correlation Sizes
Figure 1-4
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Social Recognition & Job Performance
How often does social recognition lead to higher job
performance?
Burger King study
Correlation between social recognition
and job performance was .28
Restaurants that received training in social
recognition averaged 44 seconds of drive-
through time nine months later versus 62
seconds for the control group locations.
Correlation between social recognition and retention rates
was .20
Restaurants that received training in social recognition had a 16
percent better retention rate than the control group locations
nine months later.
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Establishing Relationships
It turns out that making causal inferences —
establishing that one variable really does
cause another — requires establishing three
things.
The two variables are correlated.
The presumed cause precedes the presumed
effect in time.
No alternative explanation exists for the
correlation.
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Meta-analysis
The best way to test a theory is to conduct many
studies, each of which is as different as possible from
the ones that preceded it.
Meta-analysis takes all of the correlations found in
studies of a particular relationship and calculates a
weighted average (such that correlations based on
studies with large samples are weighted more than
correlations based on studies with small samples).
.50 correlation is considered “strong,” a .30 correlation is
considered “moderate,” and a .10 correlation is
considered “weak.”
Form the foundation for evidence-based management —
a perspective that argues that scientific findings should
form the foundation for management education, much as
they do for medical education.
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Takeaways
Organizational behavior is a field of study devoted to
understanding and explaining the attitudes and
behaviors of individuals and groups in organizations.
More simply, it focuses on why individuals and
groups in organizations act the way they do.
The two primary outcomes - job performance and
organizational commitment.
A number of factors affect performance and commitment,
including individual mechanisms, individual characteristics,
group mechanisms, and organizational mechanisms.
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Takeaways, Cont’d
The effective management of organizational
behavior can help a company become more
profitable because good people are a valuable
resource.
Rare
Hard to imitate
History that cannot be bought or copied
Make numerous small decisions that cannot be observed
by competitors
Create socially complex resources such as culture,
teamwork, trust, and reputation.
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