Organizational Behavior:

An Introduction to
Your Life in Organizations
Chapter 1
Why Mastering Organizational
Behavior is Essential to Your Career
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• What is organizational behavior, and what kinds
of business challenges does it address?
• What economic and social issues challenge
today’s organizational leaders?
• What organizational processes help companies
compete in the modern economy?
• What will your career be like in modern
organizations?
• How will mastering OB help you in your career?
 What is Organizational Behavior
(OB)?
• Organization: a coordinated set of
individuals working together on a relatively
continuous basis toward common goals
• Organizational Behavior (OB): the study of
how people behave in organizations
• OB is a social science based on data
obtained through systematic study
 What challenges do managers face
at different organizational levels?
• How to motivate yourself and others
• How to work and stay healthy
• How power and politics shape careers and
organizations
• How leaders lead
• How managers design their companies to
meet worldwide competition
OB is not Human Resources
Management (HRM)

HRM is an organizational
function responsible for staffing
issues

OB is not a function, it is a set

of organization-wide processes
 Micro level & Macro level OB

Micro Level OB Macro Level OB

Individual, How human systems

Interpersonal and and organized,
Group Behaviors structured and
controlled

Also called
organizational theory
 Open vs. Closed Systems

Open Closed
System System

Permits the free

flow of
information into Restricts
and out of the information flow
organization
 What economic and social issues
challenge today’s organizational
leaders?

1. Globalization
2. The changing nature of work
3. The complex workforce
 Globalization
• Movement of trade, resources and
personnel across borders and regions
• Mixed opinion on its benefits
• Affects:
 The nature of the work
 Location of jobs
 How companies manage people
 The changing nature of work
• Job growth:
 Primarily in small and new companies
 Most will work for others
 Education and health services will be
strongest
• New grads in high demand
• Job disruption: downsizing, outsourcing,
productivity increases
• Contingent jobs are temporary
 The complex work force
• Diversity is increasing
• Factors that affect organizations:
 Aging workforce & the Millennial generation
 Gender representation
 Racial diversity
 Literacy
 Employability
 Union representation
What organizational processes help
companies compete in the modern
economy?

• Relying on teams
• Innovations in attracting and keeping
employees
• Adaptations in organizational design
Adaptations in organizational design

• Boundaryless organization
• Employee empowerment
• Process improvements
• Organizational learning
• Innovative culture
• Adopt new forms
 What will your career be like in
modern organizations?
• A complex and fast-paced business world
will require you to be adaptable
• OB skills will be necessary as businesses
change
• Recruiters value OB skills
• The special case for ethics
 Career Paths
• Primary labor market:
 Professional, managerial type jobs
 Higher incomes, relative security, good
benefits
• Secondary labor market:
 Little or no advancement possible
 Lower incomes, little security, few benefits
 Career Patterns
Steady State Career Spiral Career

Lifetime employment in one Follow a variety of interests

job around one core skill set
Change employers
infrequently

Transitory Career Linear Career

Move among many Stay within the same

different unrelated positions profession but change jobs
and companies fairly
frequently
 Career Anchors
1. Technical or functional competence
2. Managerial competence
3. Security and stability in your job
4. Creativity and entrepreneurship
5. Autonomy and independence in your
work
 Career Stages

Stage 5: Late Career

Stage 4: Middle Career

Stage 3: Early Career

Stage 2: Organizational entry

Stage 1: Preparation
 Career Roles

Independent Manager
Contributor

You work in a key job You manage others to

with no subordinates meet organizational
goals
 How will mastering OB help you in
your career?
• Studying OB will help you:
 Understand yourself
 Become familiar with techniques for solving
behavior-based organizational problems
 See the complexity in organizations
 Obtain the vocabulary and fundamentals for
continuing study
 Apply what you have learned
• World Class Company: Netflix
• Advice from the Pro’s
• Gain Experience
• Can you solve this manager’s problem?
 Summary – What is OB
• OB is the study of how people behave in
organizations
• OB is not HRM
• OB helps managers solve practical
problems
• An organization is a system with inputs,
processes and outputs
 Summary – Issues that challenge
leaders
• Globalization
• Changing nature of work: job growth, job
disruption, and contingent jobs
• Complexities of the workforce: age,
gender, race, literacy, employability, and
union representation
 Summary – Organizational
Processes
• Foster innovation & high quality decision
making
• Rely on teams & improve the way they
attract & retain workers
• Emphasis on ethics
• Adapting
 Summary – Your Career
• Career patterns
• Career stages
• Role choices
• Career anchors
• OB provides practical information and
insights for your life in organizations