PART 1

Introduction to Organizational
Behavior

CHAPTER 1
An Overview of
Organizational Behavior
Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Chapter Learning Objectives
After studying this chapter you should be able to:
1. Define organizational behavior and describe how it impacts both personal and
organizational success.
2. Identify the basic management functions and essential skills that comprise the
management process and relate them to organizational behavior.
3. Describe the strategic context of organizational behavior and discuss the
relationships between strategy and organizational behavior.
4. Identify and describe contextual perspectives on organizational behavior.
5. Describe the role of organizational behavior in managing for effectiveness and
discuss the role of research in organizational behavior.
6. Summarize the framework around which this book is organized.

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 What Is Organizational Behavior?

• Organizational behavior (OB) is the study of:

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Nature of Organizational Behavior
Figure 1.1
The field of organizational behavior
attempts to understand human behavior in
organizational settings, the organization
itself, and the individual organization
interface. As illustrated here, these areas
are highly interrelated. Thus, although it is
possible to focus on only one of these
areas at a time, a complete understanding
of organizational behavior requires
knowledge of all three areas.

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Why Study OB?
• Studying OB can help you:
– Become a better employee
– Become a better manager
– Understand how people behave and why they do what they do
– Help you focus on developing a global mindset
• Organizations that successfully implement OB principles have:
– Motivated, engaged employees whose goals align with business
strategy
– Strong leadership and direction
– Better bottom lines

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Organizational Behavior and the Management
Process
• Management functions
– Planning
– Organizing
– Leading
– Controlling
• Resources used by managers
– Human
– Financial
– Physical
– Information

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Functions of Management
Planning Determining an organization’s desired future position and the
best means of getting there

Organizing Designing jobs, grouping jobs into units, and establishing

Leading Getting the organization’s members to work together toward

Controlling Monitoring and correcting the actions of the organization and

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Critical Managerial Skills
Planning Determining an organization’s desired future position and the
best means of getting there

Organizing Designing jobs, grouping jobs into units, and establishing

Leading Getting the organization’s members to work together toward

Controlling Monitoring and correcting the actions of the organization and

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Basic Managerial Functions
Figure 1.2
Managers engage in the four basic
functions of planning, organizing,
leading, and controlling. These functions
are applied to human, financial, physical,
and information resources with the
ultimate purpose of efficiently and
effectively attaining organizational goals.

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Human Resource Management
• Human Resource Management (HRM)
– The set of organizational activities directed at attracting, developing, and
maintaining an effective workforce
• Questions OB helps HR managers answer
1. Which applicants should be hired?
2. Which rewards will be more motivating than others?

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Strategic Context of OB
• Competitive advantage
– An organization’s edge over rivals in attracting customers and defending itself against
competition
• Sources of competitive advantage
– Innovation
– Distribution
– Speed
– Convenience
– First to market
– Cost
– Service
– Quality
– Branding

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Business Strategies (1 of 2)
Cost Leadership Striving to be the lowest-cost producer for a particular
level of product quality. Emphasizes operational
excellence: maximizing the efficiency of the
manufacturing or product development process to
minimize costs.
Differentiation Developing a product or service that has unique
characteristics valued by customers. Emphasizes
product innovation: developing new products or
services.
Specialization Focusing on a narrow market segment or niche and
pursuing either a differentiation or cost leadership
strategy within that market segment. Emphasizes
customer loyalty: delivering unique and
customizable products or services to meet customers’
needs and increase customer loyalty.

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Types of Business Strategies (2 of 2)
• Growth strategy
– Company expansion organically or through mergers and acquisitions
– Response to investor preference for rising earnings
– Success depends on company’s ability to find the right number and
types of employees to sustain growth
• Integrating business strategies and OB
– Implementation and change require large-scale organizational changes
▪ New organizational culture
▪ New employee behaviors

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Contextual Perspectives of Organizational
Behavior—A History (1 of 2)
• Scientific management
– First formal study of OB (1890s), abandoned after WWI
– Maximized productivity but led to monotonous, dehumanizing conditions
– Guiding principles
▪ Replace rule-of-thumb work methods with methods based on scientifically
studying the tasks using time-and-motion studies.
▪ Scientifically select, train, and develop all workers rather than leaving them
to passively train themselves.

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Contextual Perspectives of Organizational
Behavior—A History (2 of 2)
▪ Managers provide detailed instructions and supervision to workers to
ensure that they are following the scientifically developed methods.
▪ Divide work nearly equally between workers and managers. Managers
should apply scientific management principles to planning the work, and
workers should actually perform the tasks.

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 History of Organizational Behavior
• Human relations movement
– Inspired by the Hawthorne effect:
▪ Response to investor preference for rising earnings
– Viewed organizations as cooperative systems
– Treated workers’ orientations, values, and feelings as important parts of
organizational dynamics and performance
– Created a new era of more humane, employee-centered management
and highlighted the importance of people to organizational success
– But was hampered by unsound research methods

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Contemporary Organizational Behavior
• Contextual Perspectives on Organizational Behavior
– Systems Perspective
– Situational Perspective
– Contingency
– Interactional

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Systems Perspective (1 of 2)
• System
– An interrelated set of elements that function as a whole—inputs are
combined/transformed by managers into outputs from the system
• Value of the systems perspective
– Underscores the importance of an organization’s environment
– Conceptualizes the flow and interaction of various elements of the
organization

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Systems Approach to Organizations
Figure 1.3
The systems approach to organizations provides a useful framework for understanding how the
elements of an organization interact among themselves and with their environment. Various
inputs are transformed into different outputs, with important feedback from the environment. If
managers do not understand these interrelations, they may tend to ignore their environment or
overlook important interrelationships within their organizations.

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Situational Perspective (2 of 2)
• The situational perspective
– Recognizes that most organizational situations and outcomes are
influenced by other variables
• The universal model
– Presumes a direct cause-and-effect linkage between variables
– Complexities of human behavior and organizational settings make
universal conclusions virtually impossible

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Universal versus Situational Approach
Figure 1.4
Managers once believed that they could identify the “one best way” of solving problems or
reacting to situations. Here we illustrate a more realistic view, the situational approach. The
situational approach suggests that approaches to problems and situations are contingent on
elements of the situation.

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Interactionalism: People and Situations
• Interactionalist perspective
– Focuses on how individuals and situations interact continuously to
determine individuals’ behavior
– Attempts to explain how people select, interpret, and change various
situations

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Managing for Effectiveness (1 of 8)
• Managers’ goals
– Enhance behaviors and attitudes
– Promote citizenship
– Minimize dysfunctional behaviors
– Drive strategic execution

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Managing for Effectiveness (2 of 8)
• Individual behaviors
– Productivity
▪ Narrow measure of efficiency: number of products or services created per
unit of input
– Performance
▪ Broader concept made up of all work-related behaviors
– Commitment
▪ The degree to which an employee considers himself or herself a true
member of the organization, overlooks minor sources of dissatisfaction,
and intends to stay with the organization

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Managing for Effectiveness (3 of 8)
• Organizational citizenship
– Behaviors that make a positive overall contribution to the organization
– Encompasses all factors outside the strict requirements of the job
– Examples
▪ Willingness to train new hires
▪ Works late/overtime
▪ Good attendance
▪ Represents the organization well
▪ Personal values consistent with the organization

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Managing for Effectiveness (4 of 8)
• Dysfunctional behaviors
– Behaviors that detract from, rather than contribute to, organizational
performance
– Examples
▪ Absenteeism
▪ Turnover
▪ Theft, sabotage
▪ Harassment, bullying, violence
▪ Politicized behavior (spreading rumors, etc.)
▪ Incivility, rudeness
▪ Workplace violence

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Managing for Effectiveness (5 of 8)
• Strategic execution
– The degree to which managers and their employees understand and
carry out the actions needed to achieve strategic goals
– Assessed at the individual/group level, the organizational level, and in
terms of financial performance
– Often requires balancing seemingly contradictory outcomes
▪ For example, paying high salaries can enhance satisfaction and reduce
turnover, but detracts from bottom-line performance.

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Managing for Effectiveness (6 of 8)
• Quality of information: How do we know what we know?
– “Common” sense and intuition and are often wrong—examples where
one thing doesn’t necessarily lead to the other
▪ Goals and confidence
▪ Satisfaction and productivity
▪ Rewards and motivation
– OB relies on the scientific method

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Scientific Method
Figure 1.5
The scientific method is a useful
approach to learning more
about organizational behavior.
Using theory to develop
hypotheses and then collecting
and studying relevant data can
help generate new knowledge.

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Managing for Effectiveness (7 of 8)
• The scientific method
– A theory is a collection of verbal and symbolic assertions that specify
how and why variables are related, and the conditions under which they
should and should not relate.
– A hypothesis is a written prediction specifying expected relationships
between certain variables.
– The independent variable is the variable the researchers set.
– The dependent variable is the variable the researchers measure.
▪ Example: In an experiment to determine the effect of employee wages on
employee satisfaction, wages are the independent variable and satisfaction
is the dependent variable.

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Managing for Effectiveness (8 of 8)
• Correlation—the strength of the relationship between the two variables
– Ranges between −1 and +1
– A correlation of +1 is a perfect positive relationship: as one variable
increases, the other always increases
– A correlation of −1 is a perfect negative relationship: as one variable
increases, the other always decreases
– A correlation of 0 means that there is no relationship between the two
variables
• Meta-analysis is used to combine the results of many different
research studies done for a variety or organizations and jobs
• There may not be global replication of behaviors
Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Interpreting Correlations
Figure 1.6
Correlations between variables can
range from −1 to +1. By studying
correlations we can learn more about
how two variable are related.
Correlations of −1 or +1 are unusual, as
is a correlation of 0. Fortunately, we can
still learn a great deal from correlations
that are statistically significant.

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Framework of the Text
• How our textbook is organized
– Part 1 (chapters 1–2): environmental factors
– Part 2 (chapters 3–6): individual factors
– Part 3 (chapters 7–10): group factors
– Part 4 (chapters 11–13): leadership
– Part 5 (chapters 14–16): organizational factors

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Organizational Behavior Framework
Figure 1.7
An array of environmental, individual,
group and team, leadership, and
organizational characteristics impact
organizational behavior. If managers
understand these concepts and
characteristics they can better promote
organizational effectiveness.

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Organizational Behavior in Action
• Based on your reading of this chapter:
– Some people have suggested that understanding human behavior at
work is the single most important requirement for managerial success.
Do you agree or disagree with this statement? Why?
– Why will learning about OB help you to get a better job and a better
career, and be a better manager?
– What intuitively seems like it should improve employee productivity, but
may not prove to be true if tested systematically? How could you apply
the scientific method to test this theory?

Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.