The Field of Organizational Behavior

Chapter 1
Edited for class presentation: Azhar Kazmi, KFUPM

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Learning Objectives
1.
2.

Define the concepts of organization and organizational behavior (OB).

Describe the field of organizational behaviors commitment to the scientific method and the three levels of analysis it uses. Trace the historical developments and schools of thought leading up to the field of organizational behavior today. Identify the fundamental characteristics of the field of organizational behavior.
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3.

4.

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Learning Objectives
5. Describe how the field of OB today is being shaped by the global economy, increasing racial and ethnic diversity in the workforce, as well as advances in technology. Explain how changing expectations about the desire to be engaged in work, the need for flexibility in work, and the pressure to promote quality have influenced the field of OB.

6.

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PREVIEW CASE: The talented chief of Taleo

Taleo, set up in 1996, is a company of 900 employees based in Burlingame, California. It is in the business of talent management: helping company select people through internet. It grew quickly in the initial years but faced challenges later as companies reduced hiring. Taleos CEO and chairman, Michael Gregoire recognized the challenges and managed to steer the company. His understanding of the dynamics of people in organizations helped him to do that. He encouraged his employees to avoid focusing on their personal uncertainties and pay attention to providing service to the clients.

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PREVIEW CASE: The talented chief of Taleo

The employees were asked to completely open about the companys problems but reassured the clients that the company would be around to help them in future. Gregoire believed that their clients purchased software based on the relationship that Taleo had with them. Instead of helping in hiring new employees, Taleo started helping the clients in identifying the skills that employees had and wished to develop and then moving them into those positions. Greogoires emphasis on transparency and emphasizing customer solutions has proved to be successful. No matter how good a company may be there can be no company without people.

Organization
A structured social system consisting of groups and individuals working together to meet some agreed-upon objectives.

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OB Field Characteristics
Applies scientific method to managerial problems
Studies individuals, groups, and organizations

Multidisciplinary in nature
Enhances organizational effectiveness and

individual well-being

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Practical Managerial Problems

How goals can enhance job performance
How jobs can be designed to enhance employee satisfaction

When individuals and groups make better decisions

How organizational communication can be improved How work-related stress can be alleviated How leaders can enhance team effectiveness

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Three Levels of Analysis

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Multidisciplinary Roots
Psychology Sociology

Anthropology
Political science Economics Management science

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OB Matters
Satisfied employees
More pleasant at work Lower costs Higher productivity Less likely to quit

Unsatisfied employees
Reject organization policies More likely to steal Increased mental and physical illnesses
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Fundamental Assumptions
No One Best Contingency Approach
Behavior Contingent upon certain conditions
contingency:

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OB History
Scientific management
Efficient design of jobs

Human relations movement

Hawthorne studies

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OB History
Classical organizational theory
Efficient organization structure Division of labor Bureaucracy

OB as a social science (draws heavily from other social sciences such as psychology) The Infotech age
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Prominent Trends
Increasingly Global Businesses
Multinational enterprises (MNE)
Repatriate (returning to ones own country) Culture shock (Initial confusion in new culture) Expatriate (living and working in other country)

Changing management perspectives

Convergence hypothesis (Principles of good management are universal)
Divergence hypothesis (Principles of good management vary according to culture)
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Prominent Trends
Increasingly Diverse Workforce

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Prominent Trends
Responding to Technology Changes
Leaner organizations creation
Downsizing Outsourcing

Virtual organization creation Increasing telecommuting use

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Prominent Trends
Responding to Changing Expectations
Increasing engagement (mutual help between employers and employees)

Increasing flexibility
Idiosyncratic ()work arrangements
Flexible hours Contingent workforce Compressed workweeks Job sharing Voluntary reduced work time
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