Chapter 1. Welcome to the world of OB
Ø Management and organizational behaviour
1. Good people skil s are important
§ Good places to work have superior financial performance.
§ Developing managers’ interpersonal skil s helps attract and keep high-
§ There is a strong association between the quality of workplace
relationships and employee job satisfaction, stress, and turnover.
§ Increasing OB principles can foster social responsibility awareness.
Ø Organizational behaviour
o Studies the influence that individuals, groups, and structure have on behaviour
o The study of what people do in an organization and the way their behaviour
affects the organization’s performance.
§ Its chief goal is to apply that knowledge toward improving an
- Core topics of OB:
2. Leader behaviour and power
3. Interpersonal communication
4. Group structures and processes
5. Attitude development and perception
6. Change processes
7. Conflict and negotiation
8. Work design
Ø Effective versus successful managerial activities
1. Four managerial activities:
§ Traditional management
• Decision making, planning, control ing.
• Exchanging routine information and processing paperwork.
§ Human resources management
• Motivating, disciplining, managing conflict, staffing, and training.
• Socializing, politicking, and interacting with outsiders.
- Among managers who were successful, networking made the largest relative
contribution to success and HR management activities made the least relative
contribution, which is the opposite of the average manager.
§ Defined in terms of speed of promotion within their organizations.
- Managers who explain their decisions and seek information from col eagues and
employees – even if the information turns out to be negative – are the most
Ø Complementing intuition with systematic study
1. Underlying the systematic approach is the belief that behaviour is not
§ Your “gut feeling” explanation of behaviour
• An instinctive feeling not necessarily supported by research.
3. Systematic study:
§ Looking at relationships, attempting to attribute causes and effects, and
drawing conclusions based on scientific evidence.
• Data is gathered under control ed conditions
• Data is measured and interpreted in a reasonably rigorous manner.
4. It improves ability to accurately predict behaviour.
§ Assumes behaviour is not random
§ Fundamental consistencies underlie behaviour
§ These can be identified and modified to reflect individual differences.
5. Evidence-based management (EBM):
§ The basing of managerial decisions on the best available scientific
• Complements systematic study
• Forces managers to become more scientific in their thinking.
6. Big data:
§ The extensive use of statistical compilation and analysis.
• Identify persistent and predictive statistics
o Create targeted marketing strategies.
§ Using big data for managerial practices:
• Define objectives, develop theories of causality, test the theories to
see which employee activities are relevant to the objectives.
Ø Disciplines that contribute to the OB field (Exhibit 1-1, page 37)
1. The major contributions to the study of OB
• The science that seeks to measure, explain, and sometimes change
the behaviour of humans and other animals.
§ Social psychology
• An area of psychology that blends concepts from psychology and
sociology to focus on the influence of people on one another.
• The study of people in relation to their social environment or culture.
• The study of societies to learn about human beings and their