1.2 Why Organizational Behavior (OB)Matters

The pandemic years of 2020 and 2021 have been ones of trauma and turmoil, world over. As each one of us experienced its effects in our own personal way, so did the individual at the workplace, the teams that she worked with and the organisation that she was a part of. As the world limps back to a new normal, individuals are questioning old routines like the 9-5 job that did not include hours spent in travel to and from the office. Many are now seeking opportunities that would allow them to have a better work-life balance. Teams find that using Zoom allow for on-time meetings and seamless coordination. Organisations are making attempts to adapt to new preferences by offering work from home or hybrid work.

OB therefore matters to three key stakeholders. Firstly, it matters to workers. OB can help employees become a more engaged organizational member. Getting along with others, doing great work, lowering stress levels, making more effective decisions, and working effectively within a team—these are all things OB addresses!

Secondly, OB matters to employers. People who are satisfied with the way they are treated on the job are generally more pleasant to their co-workers and bosses and are less likely to quit than those who are dissatisfied with the way others treat them (Judge & Church, 2000; Greenberg, 2005).

Finally, it matters to organizations. The best companies in the world understand that the people make the place. How do we know this? Well, we know that organizations that offer good employee benefits and that have friendly conditions are more profitable than those who are less people oriented (Bollinger, 1996; Greenberg, 2005).

Research shows that successful organizations have several things in common such as providing employment security, engaging in selective hiring, utilizing self-managed teams, being decentralized, offering competitive compensation, training employees, reducing status differences, and sharing information (Pfeffer & Veiga, 1999).

Research also shows that organizations that are considered healthier and more effective have strong OB characteristics such as role clarity, information sharing, and performance feedback. Unfortunately, research shows that most organizations are unhealthy, with 50% of respondents saying that their organizations do not engage in effective OB practices (Aguirre et al., 2005).

The OB Toolbox – preparing you for the world of work

Throughout the book, you will read through many OB Toolbox features. Our goal is to create something useful for you to use now and as you progress through your career. Sometimes we will focus on tools you can use today. Other times we will focus on things you may want to consider in the future. As you progress, you may discover some OB tools that are particularly relevant to you while others are not as relatable now. You can always go back and pick up tools later if they do not seem applicable right away.

The important thing to keep in mind is that the more tools and skills you have, the higher the quality of your interactions with others will be and the more valuable you will become to organizations that compete for top talent (Michaels, Handfield-Jones, & Axelrod, 2001). It is not surprising that, on average, the greater the level of education you have, the more money you will make (Education and training have financial payoffs as illustrated by these unemployment and earnings for workers 25 and older. Source: U.S. Bureau of Labor Statistics, http://www.bls.gov.)

Tom Peters is a management expert who talks about the concept of thinking of oneself as a brand to be managed. Isn’t that interesting? Just as you buy your favourite brands because of the many benefits, features and at times social status that they provide you with, so it is with your personal brand. Why you will be hired, become a welcome member of your team and grow in your career will depend much on how you manage your personal brand. The many concepts that you will learn through this book will help you develop your brand image.

OB is also important when determining whether an organization is effective or not. Organizational effectiveness requires assessing: (1) how well the organization performs, (2) how well the internal operations function, (3) what external factors are impacting the organization, and (4) the perceptions of shareholders, managers, and customers (Richard et al., 2009). There are various internal aspects of the organization that need to be examined, including the following:

• Decision Making
• Change & Learning
• Group Effectiveness
• Self-Organizing and Adaptive Systems

All of the above areas are studied in OB!

Isn’t OB Just Common Sense?

Have you ever had a job where people didn’t get along, nobody knew what to do, everyone slacked off, and your boss was, well, unpleasant? If you have, then you would not have liked working in that company at all.

Now, think of another position in which everyone was friendly. In such a situation, you are likely to be interested in going to work, doing your best, and taking pride in what you do. At the heart of these differences are all issues that are of great concern to Organizational Behavior scientists and practitioners.

You may be thinking “Okay, in some companies things are nice and smooth, but in others, relationships are rocky – does it really matter?” “How can the study and application of OB concepts make a difference.”?

As teachers, we have heard these question many times. The answer, as you might have guessed, is no—OB is not just common sense. As we noted earlier, OB is the systematic study and application of knowledge on how individuals and groups act within the organizations they work for. Systematic is an important word in this definition. It is easy to think we understand something if it makes sense, but research on decision making shows that this can easily lead to faulty conclusions because our memories fail us. We tend to notice certain things and ignore others. The way we frame information can affect the choices we make. Therefore, it is important to rule out alternative explanations one by one rather than assuming we know human behaviour just because we are humans.