Chapter One What Is Organizational Behavior?
Learning Objectives
After studying this chapter, you should be able to do the following:
• 1.1: Define the concept of organizational behavior (OB).
• 1.2: List and give examples of the four sources of information used in evidence-based management (EBM).
• 1.3: Define critical thinking, and explain the critical thinking skills leaders need.
• 1.4: Describe the scientific method used in OB research.
• 1.5: Discuss five types of outcome variables studied in OB.
• 1.6: Compare the levels of analysis in OB research.
• 1.7: Develop plans for using OB research to improve employee job performance.
• 1.8: Compare and contrast Theory X and Theory Y assumptions.
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A Crisis of Leadership?
Recent polls conducted by the Gallup organization show that about 70% of people who hold full-time jobs in the United States either hate their jobs or have “mentally checked out.”1 In December 2015, the majority of workers were “not engaged” (50.8%), while another 17.2% were “actively disengaged.” This is a large impact considering that an estimated 100 million people work full time in the United States. Even worse, many of the Gallup survey respondents reported actively engaging in destructive behavior by spreading their dissatisfaction throughout their organizations. Workers who hate their jobs affect the organization’s bottom line. One recent analysis estimates that low engagement costs U.S. companies over $350 billion in revenue every year, and disengaged employees are more likely to quit their jobs, resulting in another $11 billion that employers spend to replace them, according to statistics from the Bureau of National Affairs.2 One of the most important things the Gallup study found is that the source of dissatisfaction is not pay or the number of hours worked, however.
Most employees in Gallup’s studies consistently report that the reason for their disengagement from work is their boss. And this is not new. This study was a follow-up of an earlier study conducted since 2010, which showed similar discontent with work and bosses. The graph in Figure 1.1 shows that employee engagement has been stagnant over the years, with no significant improvement. Why? Isn’t there something that can be done to improve the well-being, motivation, and productivity of people at work? Is anyone working on addressing the concerns of the workforce? The answer is yes. There is a field of study called organizational behavior (or sometimes called OB for short) that studies the challenges leaders face in the workforce. Unfortunately, much of the knowledge that could help leaders improve the experience of work is tucked away in scientific journals that few managers have the time to read.
Figure 1.1 Employee Engagement Stagnant
Source: Gallup (2016). Employee engagement in U.S. stagnant in 2015. Retrieved from http://www.gallup.com/poll/188144/employee-engagement-stagnant-2015.aspx
The goal of this book is to help you become an effective leader—not the kind of leader described in the Gallup poll that produces discontented and unengaged workers. You can choose to be a leader who understands the fundamentals of OB—how to motivate followers, resolve conflicts, lead teams, and even help them manage stress during change. For example, effective communication is essential for leadership, and this is covered in Chapter 12. After reading this textbook, your approach to leading others will be grounded in the most important and current research conducted on organizations.