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Ch. 1 Introduction to Organizational Behavior

Organizational behavior
The study of what people think, feel, and do in and around organizations
Groups of people who work interdependently toward some purpose
What is organizational effectiveness considered in organizational behavior
Ultimate dependent variable
Organizational effectiveness
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
Perspectives of organizational effectiveness
Open systems, organizational learning, high performance work practices, stakeholder
Open systems perspective of organizational effectiveness
Organizations depend on the external environment for resources, affect that environment through output, and consist of subsystems that transform inputs to outputs
Organizational efficiency
Organizational learning perspective of organizational effectiveness
The organization’s effectiveness depends on its capacity to acquire, share, use, and store valuable knowledge
Intellectual capital
Company’s stock of knowledge, including human, structural, and relationship capital
Human capital
Stock of knowledge, skills, and abilities among employees that provide economic value to the organization
Structural capital
Knowledge embedded in an organization’s systems and structures
Relationship capital
Value derived from an organization’s relationships with customers, suppliers, and other
Four organizational learning processes
Knowledge acquisition, knowledge sharing, knowledge use, knowledge storage
Knowledge acquisition
Individual learning, environment scanning, grafting, experimentation
Knowledge sharing
Communication, training, information systems, observation
Knowledge use
Knowledge awareness, sense making, autonomy, empowerment
Knowledge storage
Human memory, documentation, practices/habits, databases
Absorptive capacity
The ability to recognize the value of new information, assimilate it, and use it for value-added activities
How do organizations retain intellectual capital?
Keeping knowledgeable employees, systematically transfer knowledge to other employees, transfer knowledge to structural capital
High performance work practices perspective of organizational effectiveness
Effective organizations incorporate several workplace practices that leverage the potential of human capital
How do high performance work practices improve organizational effectiveness?
Builds human capital, which improves performance; superior human capital improves the organization’s adaptability to rapidly changing environments; strengthens employees’ motivation and attitudes towards the employer
Stakeholder perspective of organizational effectiveness
Organizations’ abilities to understand, manage, and satisfy the interests of their stakeholders
Corporate social responsibility
Organizational activities intended to benefit society and the environment beyond the firms’ immediate financial interests or legal obligations
Whether actions are right or wrong and outcomes are good or bad
Contemporary challenges of organizations
Globalization, workforce diversity, new employment relationships and work environments
Economic, social, and cultural connectivity with people in other parts of the world
Surface-level diversity
Observable demographic or physiological differences in people, like race, ethnicity, gender, age, etc.
Deep-level diversity
Differences psychological characteristics of employees, like personalities, beliefs, values, and attitudes
Work-life balance
Being able to minimize conflict between work and non-work demands
Virtual work
Work performed away from the traditional workplace by using information technology
Anchors of organizational behavior knowledge
Systematic research, multidiscipline, contingency, multiple levels of analysis
Systematic research anchor of organizational behavior knowledge
OB should study organizations using systematic research methods
Evidence based management
Making decisions and taking actions based on research evidence
Multidisciplinary anchor of organizational behavior knowledge
OB should import knowledge from other disciplines, not just create its own knowledge
Contingency anchor or organizational behavior knowledge
OB theory should recognize that the effects of actions often vary with the situation
Multiple levels of analysis anchor
OB events should be understood from three levels of analysis: individual, team, and organization

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