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    Organizational Behavior

    OrganizationalBehaviorJohn Middleton

    Fast track route to understanding and managing human behaviorin organizations

    Covers the key areas of OB, from understanding individual andgroup behavior patterns and attitudes to work to buildingsuccessful organizations and improving your personaleffectiveness in the workplace

    Examples and lessons from some of the worlds most successfulbusinesses, including Tesco, Sears, Sundaram-Clayton and TheNatural Step, and ideas from the smartest thinkers includingCharles Handy, Jack Wood, Edgar Schein and Shoshana Zuboff

    Includes a glossary of key concepts and a comprehensiveresources guide

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  • 07.10



    Fast track route to understanding and managing humanbehavior in organizations

    Covers the key areas of OB, from understanding individualand group behavior patterns and attitudes to work to buildingsuccessful organizations and improving your personaleffectiveness in the workplace

    Examples and lessons from some of the worlds mostsuccessful businesses, including Tesco, Sears, Sundaram-Clayton and The Natural Step, and ideas from the smartestthinkers including Charles Handy, Jack Wood, Edgar Scheinand Shoshana Zuboff

    Includes a glossary of key concepts and a comprehensiveresources guide

    John Middleton

  • Copyright Capstone Publishing 2002

    The right of John Middleton to be identified as the author of this work has beenasserted in accordance with the Copyright, Designs and Patents Act 1988

    First published 2002 byCapstone Publishing (a Wiley company)8 Newtec PlaceMagdalen RoadOxford OX4 1REUnited Kingdom

    All rights reserved. No part of this publication may be reproduced, stored in aretrieval system, or transmitted, in any form or by any means, electronic, mechan-ical, including uploading, downloading, printing, recording or otherwise, exceptas permitted under the fair dealing provisions of the Copyright, Designs andPatents Act 1988, or under the terms of a license issued by the CopyrightLicensing Agency, 90 Tottenham Court Road, London, W1P 9HE, UK, withoutthe permission in writing of the Publisher. Requests to the Publisher should beaddressed to the Permissions Department, John Wiley & Sons, Ltd, Baffins Lane,Chichester, West Sussex, PO19 1UD, UK or e-mailed to faxed to (+44) 1243 770571.

    CIP catalogue records for this book are available from the British Libraryand the US Library of Congress

    ISBN 1-84112-285-8

    This title is also available in print as ISBN 1-84112-217-3

    Substantial discounts on bulk quantities of ExpressExec books are availableto corporations, professional associations and other organizations. Pleasecontact Capstone for more details on +44 (0)1865 798 623 or (fax) +44(0)1865 240 941 or (e-mail)

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  • Introduction to

    ExpressExecExpressExec is 3 million words of the latest management thinkingcompiled into 10 modules. Each module contains 10 individual titlesforming a comprehensive resource of current business practice writtenby leading practitioners in their field. From brand management tobalanced scorecard, ExpressExec enables you to grasp the key conceptsbehind each subject and implement the theory immediately. Each ofthe 100 titles is available in print and electronic formats.

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  • ContentsIntroduction to ExpressExec v

    07.10.01 Introduction 107.10.02 Definition of Terms 507.10.03 The Evolution of Organizational Behavior 1107.10.04 The E-Dimension 2307.10.05 The Global Dimension 3307.10.06 The State of the Art 4107.10.07 Organizational Behavior in Practice 5707.10.08 Key Concepts and Thinkers 7507.10.09 Resources 8707.10.10 Ten Steps to Making it Work 103

    Frequently Asked Questions (FAQs) 119

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    0 .01

    Introduction The field of organizational behavior (OB) draws from the behavioral

    science disciplines of psychology, social psychology, and culturalanthropology.

    The areas on which OB focuses are individuals who will often beworking within groups, which themselves work within organiza-tions.

    OB is as much a practical set of tools as an area of theoretical interest.


    Smirk all you like about the Organization Man; his trade-offmade possible the 30-year mortgages and college educations thatthe great American dream was historically made of . . . the oldunderstanding is dead. Interred with it is much of the conventionalwisdom on retaining and motivating the American worker.1

    New York Times staff writer Mary Williams Walsh

    An organization is more than a formal arrangement of functions, morethan an organization chart, more than a vision statement, more than aset of accounts. An organization consists of people and so it is also asocial system.

    In this book, we will be looking at and seeking to explain humanbehavior within organizations. The field of organizational behavior (OB)draws primarily from the behavioral science disciplines of psychology,social psychology, and cultural anthropology. The areas on which OBfocuses are individuals who will often be working within groups,which themselves work within organizations, as well as all the inter-relationships between them. Some of the specific themes embracedby OB are personality theory, attitudes and values, motivation andlearning, interpersonal behavior, group dynamics, leadership and team-work, organizational structure and design, decision-making, power,conflict, and negotiation. Some OB thinkers go further and suggest thatthe behavior within the organization has to be viewed partly in thewider context of the outside worlds effect on the organization and itshuman resources, missions, objectives, and strategies.

    These are not merely areas of theoretical interest. They underpinpractical organizational activities. A discussion with an underper-forming team member requires an understanding of individual moti-vation; running an effective meeting needs an appreciation of groupdynamics; dealing with colleagues, suppliers, or customers from anothercountry calls on a sensitivity to cultural differences; helping two teammembers to resolve a difference can involve conflict resolution andnegotiation skills; and so on.

    To complicate matters further, OB is not a static field. Just lookat whats happened to the world of work over the past century orso and think about how attitudes to, behavior at, and expectationsof work have changed. Mass production; the rise of organization


    man; management by objective; the technological explosion of the1960s; personal computers; the decline of manufacturing; businessprocess re-engineering; outsourcing; downshifting; portfolio workers;globalization; the fall of organization man amid a dramatic fall in jobtenure; the war for talent; the ascent and descent of the dot-coms;all have impacted on organizational thinking and individual behaviorover the years.

    In this book, youll find a broad overview of OBs key themes, as wellas some practical guidance on how you might improve your personaleffectiveness in the workplace. Theres also a section on resources,which will point you towards sources of further information that willhelp you explore in greater depth. You wont find answers to all thehuman issues that confront the modern organization, but you shouldfind plenty to reinforce that well-used cliche from many an annualreport: that a companys most precious asset is its people.


    1 Walsh, M.W. (2001) New York Times, 6 April.

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    0 .02

    Definition of Terms What is organizational behavior? One definition: The study of

    the structure, functioning and performance of organizations, and thebehavior of groups and individuals within them.

    Key areas of focus are individuals, groups, and the whole organi-zation, and the interplay between them.

    Macro OB is a pre-occupation with the organization in organiza-tional behavior; micro OB is a pre-occupation with the behavior.Different levels can be used for analyzing organizational issues.


    Organizations are social arrangements, constructed by peoplewho can also change them. Organizations can be repressive andstifling, but they can also be designed to provide opportunitiesfor self-fulfillment and individual expression. The point is thathuman consequences depend on how organizations are designedand run.1

    David Buchanan and Andrzej Huczynski

    Organizations are a system of co-operative activities and theirco-ordination requires something intangible and personal that islargely a matter of personal relationships.2

    Chester Barnard

    There are a number of definitions that we can draw on to illuminate anddee