1
Solution Manual For
ORGB4, 4th Edition
Chapter 1
Organizational Behavior and Opportunity
In This Chapter, You’ll Find:
Chapter Overview
Learning Outcomes
Key Terms
PowerPoint Guide
Review Questions and Answers
Discussion & Communication Questions and Suggested Answers
Ethical Dilemma
Self-Assessments
Issues in Diversity
Experiential Exercises
Additional Examples
Case Study: Facebook
Video: Holden Outerwear
Student handouts:
Ethical Dilemma
What About You?: Analyze Your Perceptions of Change
Issues in Diversity: Women Triumph in Times of Recession—Really?
Experiential Exercise: What’s Changing at Work
Experiential Exercise: My Absolute Worst Job
Case Study: Facebook
, 2
Chapter Overview
This chapter provides an introduction to the subject of organizational behavior. It begins by
providing an overview of human behavior in organizations and the interdisciplinary influences
on that behavior. Next, it describes behavior in changing times. Third, it discusses the
organizational context in which behavior occurs and the open systems view of organizations.
This is followed by a discussion on formal and informal organization. Next, it describes the
diversity of organizations and the opportunities that arise in times of change. The chapter closes
with a discussion of the different ways that people learn about organizational behavior.
Learning Outcomes
After reading this chapter, students should be able to do the following:
1 Define organizational behavior.
Organizational behavior is defined as the study of individual behavior and group dynamics in
organizations. The study of organizational behavior is primarily concerned with the
psychosocial, interpersonal, and behavioral dynamics in organizations; organizational variables
that affect human behavior at work are also relevant to the study of organizational behavior.
Organizational behavior is a blended discipline that has grown out of contributions from
numerous earlier fields of study. The sciences of psychology, sociology, engineering,
anthropology, management, and medicine have all contributed to our understanding of human
behavior in organizations.
2 Identify four action steps for responding positively in times of change.
People often become rigid and reactive in the midst of change, rather than open and responsive.
This behavior works well in the face of gradual, incremental change. However, rigid and well-
learned behavior may be a counterproductive response to significant change. Eric Brown, CEO
of Johnson Products Company, Inc. recommends looking for the positive opportunities in change
and viewing challenge as a good rather than bad experience. His action steps for adapting to
change are to:
• Have a positive attitude
• Ask questions
• Listen to the answers
• Be committed to success
, 3
3 Identify the important system components of an organization.
Organizations are open systems of interacting components, including people, tasks, technology,
and structure. These internal components also interact with components in the organization’s
task environment. The organization as a system has an external task environment composed of
different constituents, such as suppliers, customers, and federal regulators. The organization
system takes works by taking inputs, converting them into throughputs, and delivering outputs to
its task environment.
4 Describe the formal and informal elements of an organization.
The open systems view of organizations suggests that they are designed like clockwork, with a
neat, precise, interrelated functioning. The formal organization is the official, legitimate, and
most visible part of the organization, and this is the part that enables people to think of
organizations in logical and rational ways. The informal organization is unofficial and less
visible. The informal elements of the organization are often points of diagnostic and intervention
activities in organizational development, though the formal elements must always be considered
because they provide the context for the informal.
5 Identify factors that contribute to the diversity of organizations in the economy.
Most attempts to explain or predict organizational behavior rely heavily on factors within the
organization and give less weight to external environmental considerations. Yet organizational
behavior always occurs in the context of a specific organizational setting. Large and small
organizations operate in each sector of the economy—the private, manufacturing, service,
government, and nonprofit sectors.
6 Describe the opportunities that change creates for organizational behavior.
Global competition, which is a leading force driving change at work, has increased significantly
during the past few decades. Corporate competition creates performance and cost pressures,
changes that have a ripple effect on people and their behavior at work. Although competition
may lead to downsizing and restructuring it also provides the opportunity for revitalization. Too
much change, however, leads to chaos, and too little change leads to stagnation. Global
competition has challenged organizations to become more customer focused, to meet changing
product and service demands, and to exceed customers’ expectations of high quality. Quality has
the potential to give organizations in viable industries a competitive edge against international
competition. Quality has become a rubric for products and services of high status. Quality
, 4
improvement enhances the probability of organizational success in increasingly competitive
industries. Organizations that do not respond to customer needs find their customers choosing
alternative product and service suppliers who are willing to exceed customer expectations. Over
and above the challenge of quality improvement to meet international competition, managing
organizational behavior during changing times is challenging for at least four other reasons:
• The increasing globalization of organizations’ operating territory
• The increasing diversity of organizational workforces
• The continuing demand for higher levels of moral and ethical behavior at work
• Continuing technological innovation with its companion need for skill enhancement
7 Demonstrate the value of objective knowledge and skill development in the study of
organizational behavior.
The study of organizational behavior is based on scientific knowledge and applied practice. It
involves abstract ideas, such as valence and expectancy in motivation, as well as concrete
matters, such as observable behaviors and medical symptoms of distress at work. Therefore,
learning about organizational behavior includes at least three activities:
• The science of organizational behavior requires the mastery of a certain body of objective
knowledge which results from research, experimentation, and scientific observation.
• The practice of organizational behavior requires skill development based on knowledge
and an understanding of oneself in order to master the abilities essential to success.
• Both objective knowledge and skill development must be applied in real-world settings.
Although organizational behavior is an applied discipline, students are not “trained” in
organizational behavior. Rather, they are “educated” in organizational behavior and are
coproducers in learning.
Key Terms
Opportunities (p. 3)
Change (p. 3)
Challenge (p. 3)
Organizational behavior (p. 3)
Psychology (p. 4)
Sociology (p. 4)
Engineering (p. 4)
Anthropology (p. 4)
Management (p. 4)
Medicine (p. 4)
Task (p. 6)
Solution Manual For
ORGB4, 4th Edition
Chapter 1
Organizational Behavior and Opportunity
In This Chapter, You’ll Find:
Chapter Overview
Learning Outcomes
Key Terms
PowerPoint Guide
Review Questions and Answers
Discussion & Communication Questions and Suggested Answers
Ethical Dilemma
Self-Assessments
Issues in Diversity
Experiential Exercises
Additional Examples
Case Study: Facebook
Video: Holden Outerwear
Student handouts:
Ethical Dilemma
What About You?: Analyze Your Perceptions of Change
Issues in Diversity: Women Triumph in Times of Recession—Really?
Experiential Exercise: What’s Changing at Work
Experiential Exercise: My Absolute Worst Job
Case Study: Facebook
, 2
Chapter Overview
This chapter provides an introduction to the subject of organizational behavior. It begins by
providing an overview of human behavior in organizations and the interdisciplinary influences
on that behavior. Next, it describes behavior in changing times. Third, it discusses the
organizational context in which behavior occurs and the open systems view of organizations.
This is followed by a discussion on formal and informal organization. Next, it describes the
diversity of organizations and the opportunities that arise in times of change. The chapter closes
with a discussion of the different ways that people learn about organizational behavior.
Learning Outcomes
After reading this chapter, students should be able to do the following:
1 Define organizational behavior.
Organizational behavior is defined as the study of individual behavior and group dynamics in
organizations. The study of organizational behavior is primarily concerned with the
psychosocial, interpersonal, and behavioral dynamics in organizations; organizational variables
that affect human behavior at work are also relevant to the study of organizational behavior.
Organizational behavior is a blended discipline that has grown out of contributions from
numerous earlier fields of study. The sciences of psychology, sociology, engineering,
anthropology, management, and medicine have all contributed to our understanding of human
behavior in organizations.
2 Identify four action steps for responding positively in times of change.
People often become rigid and reactive in the midst of change, rather than open and responsive.
This behavior works well in the face of gradual, incremental change. However, rigid and well-
learned behavior may be a counterproductive response to significant change. Eric Brown, CEO
of Johnson Products Company, Inc. recommends looking for the positive opportunities in change
and viewing challenge as a good rather than bad experience. His action steps for adapting to
change are to:
• Have a positive attitude
• Ask questions
• Listen to the answers
• Be committed to success
, 3
3 Identify the important system components of an organization.
Organizations are open systems of interacting components, including people, tasks, technology,
and structure. These internal components also interact with components in the organization’s
task environment. The organization as a system has an external task environment composed of
different constituents, such as suppliers, customers, and federal regulators. The organization
system takes works by taking inputs, converting them into throughputs, and delivering outputs to
its task environment.
4 Describe the formal and informal elements of an organization.
The open systems view of organizations suggests that they are designed like clockwork, with a
neat, precise, interrelated functioning. The formal organization is the official, legitimate, and
most visible part of the organization, and this is the part that enables people to think of
organizations in logical and rational ways. The informal organization is unofficial and less
visible. The informal elements of the organization are often points of diagnostic and intervention
activities in organizational development, though the formal elements must always be considered
because they provide the context for the informal.
5 Identify factors that contribute to the diversity of organizations in the economy.
Most attempts to explain or predict organizational behavior rely heavily on factors within the
organization and give less weight to external environmental considerations. Yet organizational
behavior always occurs in the context of a specific organizational setting. Large and small
organizations operate in each sector of the economy—the private, manufacturing, service,
government, and nonprofit sectors.
6 Describe the opportunities that change creates for organizational behavior.
Global competition, which is a leading force driving change at work, has increased significantly
during the past few decades. Corporate competition creates performance and cost pressures,
changes that have a ripple effect on people and their behavior at work. Although competition
may lead to downsizing and restructuring it also provides the opportunity for revitalization. Too
much change, however, leads to chaos, and too little change leads to stagnation. Global
competition has challenged organizations to become more customer focused, to meet changing
product and service demands, and to exceed customers’ expectations of high quality. Quality has
the potential to give organizations in viable industries a competitive edge against international
competition. Quality has become a rubric for products and services of high status. Quality
, 4
improvement enhances the probability of organizational success in increasingly competitive
industries. Organizations that do not respond to customer needs find their customers choosing
alternative product and service suppliers who are willing to exceed customer expectations. Over
and above the challenge of quality improvement to meet international competition, managing
organizational behavior during changing times is challenging for at least four other reasons:
• The increasing globalization of organizations’ operating territory
• The increasing diversity of organizational workforces
• The continuing demand for higher levels of moral and ethical behavior at work
• Continuing technological innovation with its companion need for skill enhancement
7 Demonstrate the value of objective knowledge and skill development in the study of
organizational behavior.
The study of organizational behavior is based on scientific knowledge and applied practice. It
involves abstract ideas, such as valence and expectancy in motivation, as well as concrete
matters, such as observable behaviors and medical symptoms of distress at work. Therefore,
learning about organizational behavior includes at least three activities:
• The science of organizational behavior requires the mastery of a certain body of objective
knowledge which results from research, experimentation, and scientific observation.
• The practice of organizational behavior requires skill development based on knowledge
and an understanding of oneself in order to master the abilities essential to success.
• Both objective knowledge and skill development must be applied in real-world settings.
Although organizational behavior is an applied discipline, students are not “trained” in
organizational behavior. Rather, they are “educated” in organizational behavior and are
coproducers in learning.
Key Terms
Opportunities (p. 3)
Change (p. 3)
Challenge (p. 3)
Organizational behavior (p. 3)
Psychology (p. 4)
Sociology (p. 4)
Engineering (p. 4)
Anthropology (p. 4)
Management (p. 4)
Medicine (p. 4)
Task (p. 6)
