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What Is Organizational Behavior? Chapter 1 Copyright © 2015 Mc. Graw-Hill Education. All rights What Is Organizational Behavior? Chapter 1 Copyright © 2015 Mc. Graw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of Mc. Graw-Hill Education.

What is Organizational Behavior? • A field of study devoted to understanding, explaining, and What is Organizational Behavior? • A field of study devoted to understanding, explaining, and ultimately improving the attitudes and behaviors of individuals and groups in organizations 1 -2

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Buying the Textbook • Aside from your local bookstore, the book is available on Buying the Textbook • Aside from your local bookstore, the book is available on Amazon • There is a Kindle version 1 -4

Buying the Textbook • You can also buy it through the Inkling app, which Buying the Textbook • You can also buy it through the Inkling app, which is available on the App Store for your i. Pad ๏ Can buy by the chapter ๏ Chapters are specially formatted for the i. Pad ๏ Can also use the app on your i. Phone 1 -5

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Does OB Matter? • Do firms who do a good job managing OB concepts Does OB Matter? • Do firms who do a good job managing OB concepts become more profitable as a result? 1 -7

Does OB Matter? • The resource-based view of the firm 1 -8 Does OB Matter? • The resource-based view of the firm 1 -8

Does OB Matter? 1 -9 Does OB Matter? 1 -9

Does OB Matter? Retention Sales/employee Market value Profitability 1 -10 Does OB Matter? Retention Sales/employee Market value Profitability 1 -10

So What’s So Hard? ๏ The Rule of 1/8: ๏ “One must bear in So What’s So Hard? ๏ The Rule of 1/8: ๏ “One must bear in mind that 1/2 of organizations won’t believe the connection between how they manage their people and the profits they earn. 1/2 of those who do see the connection will do what many organizations have done--try to make a single change to solve their problems, not realizing that the effective management of people requires a more comprehensive and systematic approach. Of the firms that make comprehensive changes, probably only about 1/2 will persist with their practices long enough to actually derive economic benefits. ” 1 -11

How Do We Know Things About OB? • Where does the knowledge in this How Do We Know Things About OB? • Where does the knowledge in this textbook come from? • Understanding that requires an understanding of how we know things, in general 1 -12

How Do We Know Things about OB? • Methods of Knowing ๏ Experience ๏ How Do We Know Things about OB? • Methods of Knowing ๏ Experience ๏ Intuition ๏ Authority ๏ Science • What are the benefits of the last one, relative to the other three? 1 -13

How Do We Know Things about OB? • Scientific method 1 -14 How Do We Know Things about OB? • Scientific method 1 -14

How Do We Know Things about OB? • Theory ๏ A collection of assertions How Do We Know Things about OB? • Theory ๏ A collection of assertions (both verbal and symbolic) that specify how and why variables are related, as well as the conditions in which they should (and should not) be related 1 -15

How Do We Know Things about OB? • To test our theory we gather How Do We Know Things about OB? • To test our theory we gather data on the variables included in our hypotheses • We then use variants of the correlation coefficient to test hypotheses, to see if they verify our theory 1 -16

How Do We Know Things about OB? • The correlation ๏ Perfect positive relationship: How Do We Know Things about OB? • The correlation ๏ Perfect positive relationship: 1 ๏ Perfect negative relationship: -1 ๏ Strength of the correlation inferred from judging the compactness of a scatterplot of the X-Y values ๏ More compact = stronger correlation ๏ Less compact = weaker correlation 1 -17

The Correlation 1 -18 The Correlation 1 -18

The Correlation 1 -19 The Correlation 1 -19

The Correlation 1 -20 The Correlation 1 -20

The Correlation • Important Disclaimer ๏ Correlation does not prove causation • Proving causation The Correlation • Important Disclaimer ๏ Correlation does not prove causation • Proving causation requires: ๏ Correlation ๏ Temporal precedence ๏ Elimination of alternative explanations 1 -21

How Do We Know Things about OB? • The correlations from multiple studies get How Do We Know Things about OB? • The correlations from multiple studies get averaged together using a technique called meta-analysis • Meta-analyses can then form the foundation for evidence-based management--the use of scientific findings to inform management education and practice 1 -22