Chapter 1
Organizational Behavior and Opportunity
In This Chapter, You’ll Find:
Chapter Overview
Learning Outcomes
Key Terms
PowerPoint Guide
Review Questions and Answers
Discussion & Communication Questions and Suggested Answers
Ethical Dilemma
Self-Assessments
Issues in Diversity
Experiential Exercises
Additional Examples
Case Study: Facebook
Video: Holden Outerwear
Student handouts:
Ethical Dilemma
What About You?: Analyze Your Perceptions of Change
Issues in Diversity: Women Triumph in Times of Recession—Really?
, Experiential Exercise: What’s Changing at Work
Experiential Exercise: My Absolute Worst Job
Case Study: Facebook
Chapter Overview
This chapter provides an introduction to the subject of organizational behavior. It begins by
providing an overview of human behavior in organizations and the interdisciplinary
influences on that behavior. Next, it describes behavior in changing times. Third, it discusses
the organizational context in which behavior occurs and the open systems view of
organizations. This is followed by a discussion on formal and informal organization. Next, it
describes the diversity of organizations and the opportunities that arise in times of change.
The chapter closes with a discussion of the different ways that people learn about
organizational behavior.
Learning Outcomes
After reading this chapter, students should be able to do the following:
1 Define organizational behavior.
Organizational behavior is defined as the study of individual behavior and group
dynamics in organizations. The study of organizational behavior is primarily
concerned with the psychosocial, interpersonal, and behavioral dynamics in
organizations; organizational variables that affect human behavior at work are also
relevant to the study of organizational behavior. Organizational behavior is a
blended discipline that has grown out of contributions from numerous earlier fields
of study. The sciences of psychology, sociology, engineering, anthropology,
management, and medicine have all contributed to our understanding of human
behavior in organizations.
,2 Identify four action steps for responding positively in times of change.
People often become rigid and reactive in the midst of change, rather than open and
responsive. This behavior works well in the face of gradual, incremental change.
However, rigid and well-learned behavior may be a counterproductive response to
significant change. Eric Brown, CEO of Johnson Products Company, Inc. recommends
looking for the positive opportunities in change and viewing challenge as a good
rather than bad experience. His action steps for adapting to change are to:
• Have a positive attitude
• Ask questions
• Listen to the answers
• Be committed to success
3 Identify the important system components of an organization.
Organizations are open systems of interacting components, including people, tasks,
technology, and structure. These internal components also interact with
components in the organization’s task environment. The organization as a system
has an external task environment composed of different constituents, such as
suppliers, customers, and federal regulators. The organization system takes works
by taking inputs, converting them into throughputs, and delivering outputs to its
task environment.
4 Describe the formal and informal elements of an organization.
The open systems view of organizations suggests that they are designed like
clockwork, with a neat, precise, interrelated functioning. The formal organization is
the official, legitimate, and most visible part of the organization, and this is the part
that enables people to think of organizations in logical and rational ways. The
, informal organization is unofficial and less visible. The informal elements of the
organization are often points of diagnostic and intervention activities in
organizational development, though the formal elements must always be considered
because they provide the context for the informal.
5 Identify factors that contribute to the diversity of organizations in the economy.
Most attempts to explain or predict organizational behavior rely heavily on factors
within the organization and give less weight to external environmental
considerations. Yet organizational behavior always occurs in the context of a
specific organizational setting. Large and small organizations operate in each sector
of the economy—the private, manufacturing, service, government, and nonprofit
sectors.
6 Describe the opportunities that change creates for organizational behavior.
Global competition, which is a leading force driving change at work, has increased
significantly during the past few decades. Corporate competition creates
performance and cost pressures, changes that have a ripple effect on people and
their behavior at work. Although competition may lead to downsizing and
restructuring it also provides the opportunity for revitalization. Too much change,
however, leads to chaos, and too little change leads to stagnation. Global
competition has challenged organizations to become more customer focused, to
meet changing product and service demands, and to exceed customers’ expectations
of high quality. Quality has the potential to give organizations in viable industries a
competitive edge against international competition. Quality has become a rubric for
products and services of high status. Quality improvement enhances the probability
of organizational success in increasingly competitive industries. Organizations that
do not respond to customer needs find their customers choosing alternative product
and service suppliers who are willing to exceed customer expectations. Over and
above the challenge of quality improvement to meet international competition,
managing organizational behavior during changing times is challenging for at least
four other reasons:
Organizational Behavior and Opportunity
In This Chapter, You’ll Find:
Chapter Overview
Learning Outcomes
Key Terms
PowerPoint Guide
Review Questions and Answers
Discussion & Communication Questions and Suggested Answers
Ethical Dilemma
Self-Assessments
Issues in Diversity
Experiential Exercises
Additional Examples
Case Study: Facebook
Video: Holden Outerwear
Student handouts:
Ethical Dilemma
What About You?: Analyze Your Perceptions of Change
Issues in Diversity: Women Triumph in Times of Recession—Really?
, Experiential Exercise: What’s Changing at Work
Experiential Exercise: My Absolute Worst Job
Case Study: Facebook
Chapter Overview
This chapter provides an introduction to the subject of organizational behavior. It begins by
providing an overview of human behavior in organizations and the interdisciplinary
influences on that behavior. Next, it describes behavior in changing times. Third, it discusses
the organizational context in which behavior occurs and the open systems view of
organizations. This is followed by a discussion on formal and informal organization. Next, it
describes the diversity of organizations and the opportunities that arise in times of change.
The chapter closes with a discussion of the different ways that people learn about
organizational behavior.
Learning Outcomes
After reading this chapter, students should be able to do the following:
1 Define organizational behavior.
Organizational behavior is defined as the study of individual behavior and group
dynamics in organizations. The study of organizational behavior is primarily
concerned with the psychosocial, interpersonal, and behavioral dynamics in
organizations; organizational variables that affect human behavior at work are also
relevant to the study of organizational behavior. Organizational behavior is a
blended discipline that has grown out of contributions from numerous earlier fields
of study. The sciences of psychology, sociology, engineering, anthropology,
management, and medicine have all contributed to our understanding of human
behavior in organizations.
,2 Identify four action steps for responding positively in times of change.
People often become rigid and reactive in the midst of change, rather than open and
responsive. This behavior works well in the face of gradual, incremental change.
However, rigid and well-learned behavior may be a counterproductive response to
significant change. Eric Brown, CEO of Johnson Products Company, Inc. recommends
looking for the positive opportunities in change and viewing challenge as a good
rather than bad experience. His action steps for adapting to change are to:
• Have a positive attitude
• Ask questions
• Listen to the answers
• Be committed to success
3 Identify the important system components of an organization.
Organizations are open systems of interacting components, including people, tasks,
technology, and structure. These internal components also interact with
components in the organization’s task environment. The organization as a system
has an external task environment composed of different constituents, such as
suppliers, customers, and federal regulators. The organization system takes works
by taking inputs, converting them into throughputs, and delivering outputs to its
task environment.
4 Describe the formal and informal elements of an organization.
The open systems view of organizations suggests that they are designed like
clockwork, with a neat, precise, interrelated functioning. The formal organization is
the official, legitimate, and most visible part of the organization, and this is the part
that enables people to think of organizations in logical and rational ways. The
, informal organization is unofficial and less visible. The informal elements of the
organization are often points of diagnostic and intervention activities in
organizational development, though the formal elements must always be considered
because they provide the context for the informal.
5 Identify factors that contribute to the diversity of organizations in the economy.
Most attempts to explain or predict organizational behavior rely heavily on factors
within the organization and give less weight to external environmental
considerations. Yet organizational behavior always occurs in the context of a
specific organizational setting. Large and small organizations operate in each sector
of the economy—the private, manufacturing, service, government, and nonprofit
sectors.
6 Describe the opportunities that change creates for organizational behavior.
Global competition, which is a leading force driving change at work, has increased
significantly during the past few decades. Corporate competition creates
performance and cost pressures, changes that have a ripple effect on people and
their behavior at work. Although competition may lead to downsizing and
restructuring it also provides the opportunity for revitalization. Too much change,
however, leads to chaos, and too little change leads to stagnation. Global
competition has challenged organizations to become more customer focused, to
meet changing product and service demands, and to exceed customers’ expectations
of high quality. Quality has the potential to give organizations in viable industries a
competitive edge against international competition. Quality has become a rubric for
products and services of high status. Quality improvement enhances the probability
of organizational success in increasingly competitive industries. Organizations that
do not respond to customer needs find their customers choosing alternative product
and service suppliers who are willing to exceed customer expectations. Over and
above the challenge of quality improvement to meet international competition,
managing organizational behavior during changing times is challenging for at least
four other reasons:
