Organizational Behavior and Management: Key Concepts and Theories

Organizational Behavior (OB)

The study of how people behave within organizations and how organizations can be structured to improve effectiveness.

Human Resource Management (HRM)

Strategic approach to managing people in an organization to maximize performance.

Strategic Management

Formulation and implementation of major goals and initiatives to achieve competitive advantage.

Resource-Based View (RBV)

Perspective that a firm's competitive advantage comes from its unique resources and capabilities.

Inimitable resources

Hard-to-copy resources (e.g., culture, reputation, unique skills).

Socially complex resources

Resources like trust, teamwork, and organizational culture.

Numerous small decisions

Competitive advantage can emerge from many small, unique choices over time.

Rule of One-Eighth

Only 12-13% of organizations successfully implement and realize the benefits of OB practices.

Methods of Knowing

Experience, Intuition, Authority, Science.

Theory

A collection of assertions explaining relationships among variables.

Hypotheses

Testable predictions derived from theory.

Correlation

Statistical relationship between two variables.

Causal inference

Determining if one variable directly affects another.

Meta-analysis

Statistical technique that combines results of multiple studies to find overall trends.

Evidence-Based Management

Making decisions based on the best available scientific evidence combined with organizational data and practitioner expertise.

Job Performance

The value of the set of employee behaviors that contribute, either positively or negatively, to organizational goals.

Task Performance

Employee behaviors directly related to the technical core of the job.

Routine task performance

Regular, predictable tasks (e.g., answering emails, processing orders).

Adaptive task performance

Responses to novel or unexpected tasks (e.g., crisis management).

Creative task performance

Developing new ideas or approaches that improve performance or efficiency.

Job Analysis

Process of identifying the tasks, duties, and responsibilities of a job.

O*NET

Online database providing standardized information about job characteristics and requirements.

Citizenship Behavior

Voluntary behaviors that contribute to the organization beyond formal job requirements.

Counterproductive Behavior

Employee behaviors that harm the organization or its members.

Knowledge work

Jobs focused on cognitive skills, information processing, problem-solving.

Service work

Jobs focused on serving others, emphasizing customer satisfaction.

Management by Objectives (MBO)

Setting specific measurable goals jointly by manager and employee.

Behaviorally Anchored Rating Scales (BARS)

Rating system linking performance ratings to specific behaviors.

360-Degree Feedback

Collecting performance feedback from multiple sources (managers, peers, subordinates).

Organizational Commitment

The degree to which an employee identifies with and is involved in an organization.

Types of Commitment

Affective commitment, Continuance commitment, Normative commitment.

Withdrawal Behavior

Psychological withdrawal: Mentally distancing oneself from work; Physical withdrawal: Physically leaving work.

Psychological Contracts

Unwritten expectations between employees and employers.

Job Satisfaction

A pleasurable or positive emotional state resulting from the appraisal of one's job or job experiences.

Value-Percept Theory

Satisfaction depends on the extent to which job provides what employees value. Formula: Satisfaction = Σ (Vwant − Vhave) × Vimportance

Pay satisfaction

Contentment with salary, benefits, pay structure.

Promotion satisfaction

Contentment with opportunities for advancement.

Supervision satisfaction

Contentment with manager's style and support.

Coworker satisfaction

Contentment with colleagues.

Satisfaction with the work itself

Direct enjoyment and interest in tasks.

Meaningfulness of Work

Influenced by three psychological states.

Variety

Job requires different skills and activities.

Identity

Job allows completion of whole, identifiable work.

Significance

Job has substantial impact on others.

Responsibility for outcomes

Degree of control over results.

Knowledge of results

Feedback about performance effectiveness.

Job Characteristics Theory

Designing jobs to enhance the five core characteristics leads to higher satisfaction.

Autonomy

Freedom and discretion.

Feedback

Clear information about performance.

Moods

General, long-lasting affective states; not tied to a specific cause.

Flow

Complete absorption in a challenging, rewarding task; high satisfaction.

Affective Events Theory

Work events trigger emotional reactions, which influence job satisfaction and behavior.

Emotional Labor

Managing emotions to fulfill job requirements.

Life Satisfaction

Overall evaluation of one's life; influenced by job satisfaction and personal experiences.

Motivation

The processes that account for an individual's intensity, direction, and persistence of effort toward achieving a goal.

Employee engagement

Level of enthusiasm and dedication employees show toward their work.

Expectancy Theory

Motivation is the product of Expectancy × Instrumentality × Valence.

Expectancy

Belief that effort leads to performance.

Instrumentality

Belief that performance leads to outcomes/rewards.

Valence

Value or attractiveness of outcomes to the individual.

Extrinsic motivation

Driven by external rewards (pay, promotions).

Intrinsic motivation

Driven by enjoyment or satisfaction of the work itself.

Goal-Setting Theory

Goals increase motivation when they are specific, challenging, and accepted.

Equity Theory

Employees are motivated by fairness and compare their input-output ratio to others.

Psychological Empowerment

Intrinsic motivation derived from feeling control and impact at work.

Personality

The enduring patterns of thoughts, feelings, and behaviors that distinguish individuals.

The Big Five Personality Traits

Conscientiousness, Agreeableness, Neuroticism, Openness to Experience, Extraversion.