Ch 1 - What is Organizational Behavior.updated-SV.pdf

What is Organizational Behavior? 1 What is Organizational Behavior? Organizational Behavior (OB): is a field of study devoted to understanding, explaining, and improving the attitudes and behaviors of individuals and groups in organizations....

What is Organizational Behavior? 1 What is Organizational Behavior? Organizational Behavior (OB): is a field of study devoted to understanding, explaining, and improving the attitudes and behaviors of individuals and groups in organizations. 2 OB Theories and concepts are derived from: ✓ Industrial and Organizational Psychology ✓ Social Psychology ✓ Sociology ✓ Anthropology ✓ Economics 3 Subdisciplines Leadership Ethics Diversity Social Responsibility Team Performance Organizational Structure Power, Influence, and Performance Management Politics Rewards Job Design Decision Making Work Motivation Conflict and Negotiation Communication Organizational Culture 4 5 Resource-Based View (RBV) Describes what makes resources valuable (capable of creating long-term profits). Resources include: ✓ Financial resources (revenue, equity) ✓ Physical resources (buildings, machines) ✓ Other resources (knowledge, decision-making, ability, culture) 6 RBV – Closer Look 7 Significance of OB Firms who valued OB had a 19% higher survival rate. Study of 100 Best Companies to Work For; OB practices were associated with firm profitability. 8  2022 Data from Fortune The “100 Best Companies to Work for” 1. Cisco Systems 50. First American Financial 81. Panda Restaurant G. 2. Hilton 51. Progressive 82. Ohio Health 3. Wegmans 53. Altar’d State 83. ServiceNow 4. Salesforce 54. SAP America 85. JM Family Ent. 5. Nvidia 55. Bain & Co. 86. W.W. Grainger 7. Rocket Companies 63. PricewaterhouseCoopers 88. Cox Enterprises 9. David Weekley Homes 70. Hyatt Hotels 90. Wellstar Health 10. Capital One Financial 73. Citrix Systems 91. Atlantic Health 24. Deloitte 74. Hilcorp Energy 93. DHL Express U.S. 32. Adobe 78. Genentech 95. Nugget Market 47. Atlassian 79. Baptist Health 97. CrowdStrike Hold. 49. Credit Acceptance 80. Experian 100. FedEx 9 Does OB Matter? 10 So What’s So Hard? The Rule of 1/8th ✓“One must bear in mind that 1/2 of organizations won’t believe the connection between how they manage their people and the profits they earn.“ ✓ "1/2 of those who do see the connection will do what many organizations have done--try to make a single change to solve their problems, not realizing that the effective management of people requires a more comprehensive and systematic approach." ✓“Of the firms that make comprehensive changes, about 1/2 will persist with their practices long enough to actually derive economic benefits.” 11 How Do We Know What We Know? Experience Science Intuition Authority 12 Sources of Research Insight Field Studies Laboratory Studies Case Studies Survey Studies Meta Analyses 13 Review of Correlations Represented as “r” Describes the statistical relationship between 2 variables. Range (-1 to 1) Correlation Table Strength Level r % Variance Explained Strong ≥.5 25% Moderate.3 9% Weak.1 1% No Relationship 0 0% 14 Causal Inference Establishing that one variable really does cause another – requires the validation of three things. The two variables are correlated. The presumed cause precedes the presumed effect in time. No alternative explanation exists for the correlation. 15 Evidence-Based Management (EBM) Is a paradigm for decision making; integrates research evidence with decision maker expertise. “…managers can practice their craft more effectively if they are…guided by the best logic and evidence – and if they relentlessly seek new knowledge and insight…” Data Experience 16