Chapter 1: Introduction to the Field of Organizational Behavior
Instructor’s Manual to Accompany
Organizational Behavior 8/e
by Steven L. McShane and Mary Ann Von Glinow
Chapter 1:
Introduction to the Field of
Organizational Behavior
Prepared by Steven L. McShane,
Curtin Graduate School of Business (Australia) and the
Peter B. Gustavson School of Business, University of Victoria
(Canada)
Page 1-!1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,Chapter 1: Introduction to the Field of Organizational Behavior
Introduction to the Field
1 of Organizational Behavior
LEARNING OBJECTIVES
After reading this chapter, students should be able to:
1-1 Define organizational behavior and organizations, and discuss the importance of this field of inquiry.
1-2 Debate the organizational opportunities and challenges of technological change, globalization, emerging
employment relationships, and workforce diversity.
1-3 Discuss the anchors on which organizational behavior knowledge is based.
1-4 Compare and contrast the four perspectives of organizational effectiveness.
CHAPTER GLOSSARY
corporate social responsibility (CSR) — organizational intellectual capital — a company’s stock of knowledge,
activities intended to benefit society and the including human capital, structural capital and
environment beyond the firm’s immediate financial relationship capital
interests or legal obligations
learning orientation — beliefs and norms that support
deep-level diversity — differences in the psychological the acquisition, sharing, and use of knowledge as well as
characteristics of employees, including personalities, work conditions that nurture these learning processes
beliefs, values, and attitudes
open systems — a perspective that holds that
ethics – the study of moral principles or values that organizations depend on the external environment for
determine whether actions are right or wrong and resources, affect that environment through their output,
outcomes are good or bad and consist of internal subsystems that transform inputs
into outputs
evidence-based management — the practice of making
decisions and taking actions based on research evidence organizational behavior (OB) — the study of what
people think, feel, and do in and around organizations
globalization — economic, social, and cultural
connectivity with people in other parts of the world organizational effectiveness — a broad concept
represented by several perspectives, including the
high performance work practices (HPWP) — a
organization’s fit with the external environment, internal
perspective that holds that effective organizations
subsystems configuration for high-performance,
incorporate several workplace practices that leverage
emphasis on organizational learning, and ability to
the potential of human capital
satisfy the needs of key stakeholders
human capital — the stock of knowledge, skills, and
organizational learning — a perspective that holds that
abilities among employees that provide economic value
organizational effectiveness depends on the
to the organization
organization’s capacity to acquire, share, use, and store
valuable knowledge
Page 1-!2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,Chapter 1: Introduction to the Field of Organizational Behavior
organizations — croups of people who work telecommuting — an arrangement whereby, supported
interdependently toward some purpose by information technology, employees work from home
one or more work days per month rather than commute
relationship capital — the value derived from an
to the office
organization’s relationships with customers, suppliers,
and others values — relatively stable, evaluative beliefs that guide a
person’s preferences for outcomes or courses of action in
stakeholders — individuals, organizations, or other
a variety of situations
entities who affect, or are affected by, the organization’s
objectives and actions work-life balance — the degree to which a person
minimizes conflict between work and nonwork
structural capital — knowledge embedded in an
demands
organization’s systems and structures.
surface-level diversity — the observable demographic or
physiological differences in people, such as their race,
ethnicity, gender, age, and physical disabilities
CHAPTER SUMMARY BY LEARNING OBJECTIVE
1-1 Define organizational behavior and organizations, and discuss the importance of this field of inquiry.
Organizational behavior is the study of what people think, feel, and do in and around organizations. Organizations
are groups of people who work interdependently toward some purpose. OB theories help us to (a) comprehend
and predict work events, (b) adopt more accurate personal theories, and (c) influence organizational events. OB
knowledge is for everyone, not just managers. OB theories and practices are highly beneficial for an organization’s
survival and success.
1-2 Debate the organizational opportunities and challenges of technological change, globalization, emerging
employment relationships, and increasing workforce diversity.
Technological change has improved efficiency, interactivity, and wellbeing, but it has also been a disruptive force in
organizations. Information technology has altered communication patterns and power dynamics at work, and has
had effects on our nonwork time, attention span, and techno-stress. Globalization, which refers to various forms of
connectivity with people in other parts of the world, has become more intense than ever before because
information technology and transportation systems. It has brought more complexity and new ways of working to
the workplace, requires additional knowledge and skills. It may be an influence on work intensification, reduced
job security, and lessening work–life balance.
An emerging employment relationship trend is the blurring of work and nonwork time, and the associated call for
more work–life balance (minimizing conflict between work and nonwork demands). Another employment trend is
telecommuting, whereby employees work from home one or more work days per month rather than commute to
the office. Telecommuting potentially benefits employees and employers, but there are also disadvantages and its
effectiveness depends on the employee, job, and organization. An organization's workforce has both surface-level
diversity (observable demographic and other overt differences in people) and deep-level diversity (differences in
personalities, beliefs, values, and attitudes). Diversity may improve creativity and decision making, and provide
better awareness and response to diverse communities. However, diversity also poses challenges, such as
dysfunctional conflict and slower team development.
Page 1-!3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
, Chapter 1: Introduction to the Field of Organizational Behavior
1-3 Discuss the anchors on which organizational behavior knowledge is based.
The multidisciplinary anchor states that the field should develop from knowledge in other disciplines (e.g.,
psychology, sociology, economics), not just from its own isolated research base. The systematic research anchor
states that OB knowledge should be based on systematic research, consistent with evidence-based management.
The contingency anchor states that OB theories generally need to consider that there will be different consequences
in different situations. The multiple levels of analysis anchor states that OB topics may be viewed from the
individual, team, and organization levels of analysis.
1-4 Compare and contrast the four perspectives of organizational effectiveness.
The open systems perspective views organizations as complex organisms that “live” within an external
environment, depend on it for resources, then use organizational subsystems to transform those resources into
outputs, which are returned to the environment. Organizations receive feedback to maintain a good “fit” with that
environment. Fit occurs by adapting to the environment, influencing the environment, or moving to a more
favorable environment. Effective transformation processes are efficient, adaptable, and innovative. The
organizational learning perspective states that organizations are effective when they find ways to acquire, share,
use, and store knowledge. Intellectual capital consists of human capital, structural capital, and relationship capital.
Knowledge is retained in the organizational memory; companies also selectively unlearn.
The high-performance work practices (HPWP) perspective identifies a bundle of systems and structures to
leverage workforce potential. The most widely identified HPWPs are employee involvement, job autonomy,
developing employee competencies, and performance-/skill-based rewards. HPWPs improve organizational
effectiveness by building human capital, increasing adaptability, and strengthening employee motivation and
attitudes. The stakeholder perspective states that organizations are more effective when they understand, manage,
and satisfy stakeholder needs and expectations. Leaders manage the interests of diverse stakeholders by relying on
their personal and organizational values for guidance. Ethics and corporate social responsibility (CSR) are natural
variations of values-based organizations. CSR consists of organizational activities intended to benefit society and
the environment beyond the firm’s immediate financial interests or legal obligations.
Page 1-!4
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Instructor’s Manual to Accompany
Organizational Behavior 8/e
by Steven L. McShane and Mary Ann Von Glinow
Chapter 1:
Introduction to the Field of
Organizational Behavior
Prepared by Steven L. McShane,
Curtin Graduate School of Business (Australia) and the
Peter B. Gustavson School of Business, University of Victoria
(Canada)
Page 1-!1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,Chapter 1: Introduction to the Field of Organizational Behavior
Introduction to the Field
1 of Organizational Behavior
LEARNING OBJECTIVES
After reading this chapter, students should be able to:
1-1 Define organizational behavior and organizations, and discuss the importance of this field of inquiry.
1-2 Debate the organizational opportunities and challenges of technological change, globalization, emerging
employment relationships, and workforce diversity.
1-3 Discuss the anchors on which organizational behavior knowledge is based.
1-4 Compare and contrast the four perspectives of organizational effectiveness.
CHAPTER GLOSSARY
corporate social responsibility (CSR) — organizational intellectual capital — a company’s stock of knowledge,
activities intended to benefit society and the including human capital, structural capital and
environment beyond the firm’s immediate financial relationship capital
interests or legal obligations
learning orientation — beliefs and norms that support
deep-level diversity — differences in the psychological the acquisition, sharing, and use of knowledge as well as
characteristics of employees, including personalities, work conditions that nurture these learning processes
beliefs, values, and attitudes
open systems — a perspective that holds that
ethics – the study of moral principles or values that organizations depend on the external environment for
determine whether actions are right or wrong and resources, affect that environment through their output,
outcomes are good or bad and consist of internal subsystems that transform inputs
into outputs
evidence-based management — the practice of making
decisions and taking actions based on research evidence organizational behavior (OB) — the study of what
people think, feel, and do in and around organizations
globalization — economic, social, and cultural
connectivity with people in other parts of the world organizational effectiveness — a broad concept
represented by several perspectives, including the
high performance work practices (HPWP) — a
organization’s fit with the external environment, internal
perspective that holds that effective organizations
subsystems configuration for high-performance,
incorporate several workplace practices that leverage
emphasis on organizational learning, and ability to
the potential of human capital
satisfy the needs of key stakeholders
human capital — the stock of knowledge, skills, and
organizational learning — a perspective that holds that
abilities among employees that provide economic value
organizational effectiveness depends on the
to the organization
organization’s capacity to acquire, share, use, and store
valuable knowledge
Page 1-!2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,Chapter 1: Introduction to the Field of Organizational Behavior
organizations — croups of people who work telecommuting — an arrangement whereby, supported
interdependently toward some purpose by information technology, employees work from home
one or more work days per month rather than commute
relationship capital — the value derived from an
to the office
organization’s relationships with customers, suppliers,
and others values — relatively stable, evaluative beliefs that guide a
person’s preferences for outcomes or courses of action in
stakeholders — individuals, organizations, or other
a variety of situations
entities who affect, or are affected by, the organization’s
objectives and actions work-life balance — the degree to which a person
minimizes conflict between work and nonwork
structural capital — knowledge embedded in an
demands
organization’s systems and structures.
surface-level diversity — the observable demographic or
physiological differences in people, such as their race,
ethnicity, gender, age, and physical disabilities
CHAPTER SUMMARY BY LEARNING OBJECTIVE
1-1 Define organizational behavior and organizations, and discuss the importance of this field of inquiry.
Organizational behavior is the study of what people think, feel, and do in and around organizations. Organizations
are groups of people who work interdependently toward some purpose. OB theories help us to (a) comprehend
and predict work events, (b) adopt more accurate personal theories, and (c) influence organizational events. OB
knowledge is for everyone, not just managers. OB theories and practices are highly beneficial for an organization’s
survival and success.
1-2 Debate the organizational opportunities and challenges of technological change, globalization, emerging
employment relationships, and increasing workforce diversity.
Technological change has improved efficiency, interactivity, and wellbeing, but it has also been a disruptive force in
organizations. Information technology has altered communication patterns and power dynamics at work, and has
had effects on our nonwork time, attention span, and techno-stress. Globalization, which refers to various forms of
connectivity with people in other parts of the world, has become more intense than ever before because
information technology and transportation systems. It has brought more complexity and new ways of working to
the workplace, requires additional knowledge and skills. It may be an influence on work intensification, reduced
job security, and lessening work–life balance.
An emerging employment relationship trend is the blurring of work and nonwork time, and the associated call for
more work–life balance (minimizing conflict between work and nonwork demands). Another employment trend is
telecommuting, whereby employees work from home one or more work days per month rather than commute to
the office. Telecommuting potentially benefits employees and employers, but there are also disadvantages and its
effectiveness depends on the employee, job, and organization. An organization's workforce has both surface-level
diversity (observable demographic and other overt differences in people) and deep-level diversity (differences in
personalities, beliefs, values, and attitudes). Diversity may improve creativity and decision making, and provide
better awareness and response to diverse communities. However, diversity also poses challenges, such as
dysfunctional conflict and slower team development.
Page 1-!3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
, Chapter 1: Introduction to the Field of Organizational Behavior
1-3 Discuss the anchors on which organizational behavior knowledge is based.
The multidisciplinary anchor states that the field should develop from knowledge in other disciplines (e.g.,
psychology, sociology, economics), not just from its own isolated research base. The systematic research anchor
states that OB knowledge should be based on systematic research, consistent with evidence-based management.
The contingency anchor states that OB theories generally need to consider that there will be different consequences
in different situations. The multiple levels of analysis anchor states that OB topics may be viewed from the
individual, team, and organization levels of analysis.
1-4 Compare and contrast the four perspectives of organizational effectiveness.
The open systems perspective views organizations as complex organisms that “live” within an external
environment, depend on it for resources, then use organizational subsystems to transform those resources into
outputs, which are returned to the environment. Organizations receive feedback to maintain a good “fit” with that
environment. Fit occurs by adapting to the environment, influencing the environment, or moving to a more
favorable environment. Effective transformation processes are efficient, adaptable, and innovative. The
organizational learning perspective states that organizations are effective when they find ways to acquire, share,
use, and store knowledge. Intellectual capital consists of human capital, structural capital, and relationship capital.
Knowledge is retained in the organizational memory; companies also selectively unlearn.
The high-performance work practices (HPWP) perspective identifies a bundle of systems and structures to
leverage workforce potential. The most widely identified HPWPs are employee involvement, job autonomy,
developing employee competencies, and performance-/skill-based rewards. HPWPs improve organizational
effectiveness by building human capital, increasing adaptability, and strengthening employee motivation and
attitudes. The stakeholder perspective states that organizations are more effective when they understand, manage,
and satisfy stakeholder needs and expectations. Leaders manage the interests of diverse stakeholders by relying on
their personal and organizational values for guidance. Ethics and corporate social responsibility (CSR) are natural
variations of values-based organizations. CSR consists of organizational activities intended to benefit society and
the environment beyond the firm’s immediate financial interests or legal obligations.
Page 1-!4
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
