Chapter 1: Intro to the Field of OB
Terms in this set (63)
The study of what people think, feel, and do in and around organizations.
Focus of OB
employee behavior, decisions, perceptions, emotional responses
Groups of people who work interdependently toward some purpose.
Organizations consist of people who...
communicate, coordinate, and collaborate in order to achieve common objectives
Key features of organizations
1) they are collective entities
2) their members have a collective sense of purpose
A broad concept represented by several perspectives, including the organization's fit with the external environment, internal-subsystems configuration for high performance, emphasis on organizational learning, and ability to satisfy the needs of key stakeholders.
What is organizational effectiveness considered as?
The "ultimate dependent variable" in organizational behavior
4 perspectives of organizational behavior
1) open-systems perspective
2) organizational learning perspective
3) high-performance work practices perspective
4) stakeholder perspective
A perspective which holds that organizations depend on the external environment for resources, affect that environment through their output, and consist of internal subsystems that transform inputs to outputs.
subsystems of an organization
processes (communication), work units (production, marketing), social dynamics (informal networks)
inputs in open system
raw materials, human resources, information, financial resources, equipment
outputs in open system
products/services, employee behaviors, profits/losses, waste/pollution
what do successful organizations do in an open-systems perspective?
monitor their environments & maintain a close fit with changing conditions
organizational efficiency (productivity)
The amount of outputs relative to inputs in the organization's transformation process.
(more goods/services, less labor/materials/energy = more efficient)
A cluster of practices to improve organizational efficiency by continuously reducing waste (muda), unevenness, and over-burden in the production process.
True or false? Efficiency = effectiveness
False. Efficiency is about doing things right. Effectiveness is doing the right things. You could be highly efficient at making a product, but this is ineffective if nobody wants the product.
Organizational learning perspective
A perspective which holds that organizational effectiveness depends on the organization's capacity to acquire, share, use, and store valuable knowledge.
What is the driver of competitive advantage in the organizational learning perspective?
When information is brought into the organization from the external environment
The distribution of knowledge throughout the organization
The application of knowledge to organizational processes in ways that improve the organization's effectiveness.
Ways that companies retain valuable knowledge (examples: employees, documenting best practices, keeping samples of past products)
The ability to recognize the value of new information, assimilate it, and use it for value-added activities.
A company's stock of knowledge, including human capital, structural capital, and relationship capital.
The stock of knowledge, skills, and abilities among employees that provides economic value to the organization.
The knowledge captured and retained in an organization's systems and structures, such as the documentation of work procedures and the physical layout of the production line.
The value derived from an organization's relationships with customers, suppliers, and others who provide added mutual value for the organization.
The storage and preservation of intellectual capital.
Removes knowledge that no longer adds value and, in fact, may undermine the organization's effectiveness
High-performance work practices (HPWP)
A perspective which holds that effective organizations incorporate several workplace practices that leverage the potential of human capital.
Four High-Performance Work Practices
1) employee involvement
2) job autonomy
3) employee competence
4) performance and/or skill-based rewards
Concerns of HPWP
Some HPWP practices lack theoretical foundation, HPWP can satisfy shareholder and customer needs at the expense of employee well-being.
Individuals, organizations, and other entities that affect, or are affected by, the organization's objectives and actions.
Who do stakeholders include?
Employees, shareholders, suppliers, labor unions, government, communities, consumer & environment interest groups, etc.
What position did Wal-Mart create to help manage stakeholder relationships?
Senior Director of Stakeholder Engagement
Relatively stable, evaluative beliefs that guide a person's preferences for outcomes or courses of action in a variety of situations.
The study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad.
Corporate Social Responsibility (CSR)
Organizational activities intended to benefit society and the environment beyond the firm's immediate financial interests or legal obligations.
What does the triple-bottom-line include?
Social (people), environmental (planet), and economic (profit) spheres of sustainability
True or false? Most American and European MBA students claim they would accept lower financial rewards to work for an organization with a better ethical/CSR reputation.
Types of work-related behavior (5)
1) task performance
2) organizational citizenship
3) counter-productive work behaviors
4) joining/staying with the organization
5) maintaining work attendance
Goal-directed behaviors under the individual's control that support organizational objectives.
Organizational citizenship behaviors (OCBs)
Various forms of cooperation and helpfulness to others that support the organization's social and psychological context.
Counterproductive work behaviors (CWBs)
Voluntary behaviors that have the potential to directly or indirectly harm the organization.
Organizations with _____ turnover suffer because of the high cost of replacing people who leave.
Absenteeism is ____ in organizations with generous sick leave.
Economic, social, and cultural connectivity with people in other parts of the world.
The observable demographic or physiological differences in people, such as their race, ethnicity, gender, age, and physical disabilities.
Differences in the psychological characteristics of employees, including personalities, beliefs, values, and attitudes.
born between 1946 and 1964
expect and desire more job security and are more intent on improving their economic and social status.
born between 1965 and 1979
expect less job security and are motivated more by workplace flexibility, the opportunity to learn, and "fun" organizations
born after 1979
noticeably self-confident, optimistic, multitasking, and more independent than even Gen-X co-workers
Advantages of diversity
can improve decision making and team performance; companies who win diversity awards have higher financial returns (short-run)
Consequences of diversity
teams with diverse employees tend to take longer to perform effectively, there can be communication problems, and becomes a source of conflict which can lead to morale problems and higher turnover
The degree to which a person minimizes conflict between work and nonwork demands
Work performed away from the traditional physical workplace by means of information technology.
OB should import knowledge from many disciplines (ex. psychological research, marketing).
Systematic research anchor
OB should study organizations using systematic research methods.
Involves forming research questions, systematically collecting data, and testing hypotheses against those data.
The practice of making decisions and taking actions based on research evidence.
Why do people have difficulty applying evidence-based management?
-corporate decision makers are bombarded with so many ideas from newspapers, books, consultant reports, and other sources that they have difficulty figuring out which ones are based on good evidence
-good OB research is necessarily generic
-many consultants and popular book writers are rewarded for marketing their concepts and theories, not for testing to see if they actually work
-people form perceptions and beliefs quickly and tend to ignore evidence that their beliefs are inaccurate
OB theory should recognize that the effects of actions often vary with the situation.
Multiple levels of analysis anchor
OB knowledge should include three levels of analysis: individual, team, and organization.