LO 1-1 Explain the basic concept of organizational behavior and its value in organizations.

Organizational behavior studies how and why individual employ­ees and groups of employees behave the way they do within an organizational setting. The three main reasons for studying orga­nizational behavior in your organization are to be able to explain it, predict it, and influence it.

LO 1-2 Describe the key role of managing human capital in creating a sustainable competitive advantage for organizations.

Human capital is essential for gaining competitive advantage, the edge that gives organizations a more beneficial position than their competitors and allows them to generate more profits and retain more customers. Three main aspects of human capital enhance true competitive advantage: value, rareness, and inimitability.

LO 1-3 Identify the major behavioral science disciplines that contribute to OB.

Psychology is the scientific study of the human mind that seeks to measure and explain behavioral characteristics. Sociology is the study of the behavior of groups and how they relate to each other in a social setting. Social psychology blends concepts from sociology and psychology and focuses on how people influence each other in a social setting. Political science stud­ies the behavior of individuals and groups within a political envi­ronment. Anthropology is the study of people and their activities in relation to societal, environmental, and cultural influences.

LO 1-4 Demonstrate the value of critical thinking in the context of organizational behavior.

Critical thinking is the ability to use intelligence, knowledge, and skills to question and carefully explore situations and arrive at thoughtful conclusions based on evidence and reason. The critical-thinking approach is a powerful analytical method that helps managers consider intended and unintended consequences of behaviors on their teams, organizations, and communities.

LO 1-5 Identify the major challenges and opportunities in the field of OB.

The process of globalization has had a huge influence on OB. The economy has had a significant effect on OB. Organizations are continually strategizing to overcome economic stumbling blocks by hiring talent and focusing on the skill sets of their workforce to find new, innovative ways to differentiate them­selves from the competition. Workforce diversity develops when organizations foster working environments that do not discrim­inate against others regardless of gender, race, ethnicity, age, sexual orientation, and disability. Organizations are creating customer-responsive cultures to meet the increasing needs and changing demands of their customer base. Managers and employees must have excellent people skills to use on the job to work harmoniously with their fellow colleagues. Organizations need to simulate innovation and change by becoming faster and more agile than the competition. There is a growing commitment to fostering an ethical culture and improving ethical behavior in the workplace. Many organizations are striving to build a more sustainable and responsible global marketplace by taking envi­ronmental factors into consideration during decision-making and goal-setting practices.

LO 1-6 Describe the importance of ethical behavior in global organizations.

Ethics are moral principles that guide our behavior. Ethical scandals in recent years have made many people more aware and less tolerant of perceived unethical behavior. An organiza­tion is unethical if it violates the basic rights of its employees and ignores health, safety, and environmental standards. In many organizations, employees attend training programs, work­shops, and seminars that present ethical dilemmas and how to overcome them. In most workplaces there is a growing intol­erance for unethical behavior and an expectation that employ­ees will align their work practices with the organization’s code of ethics.

LO 1-7 Differentiate the three basic levels of analysis at which OB may be examined.

There are three main levels of analysis within the OB model: indi­viduals, teams, and organizations. Individuals are the foundation of organizations: the way they work and behave either makes or breaks a business. The role of managers is to integrate indi­viduals into the organization, nurture their skills and attributes, and balance their needs and expectations accordingly. Teams or groups exist in all organizations, large or small, and have a sig­nificant influence on the behavior of individual team members. Managers who understand the dynamics of a team and how it is structured gain more knowledge about the underlying behav­iors of individuals within the group. Individuals and groups work within the formal structure of organizations. Organizations pro­vide employees with the tools and systems to achieve objectives and goals. The attitudes and behavior of employees are influ­enced by the way organizations are structured.

LO 1-8 Outline the benefits of positive organizational behavior and high-involvement management.

Positive organizational behavior focuses on the strengths, vir­tues, vitality, and resilience of individuals and organizations. High-involvement management occurs when managers empower employees to make decisions, provide them with extensive training and the opportunities to increase their knowledge base, share important information, and provide incentive compensa­tion. This type of approach works only when the right employees are selected to work in an organization. When high-involvement management is effective it helps to build strong relationships between individuals and teams, fosters trust, and increases job satisfaction and productivity.