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EXECUTIVE SUMMARY

ORGANIZATIONAL
BEHAVIOR AND
EFFECTIVE
MANAGEMENT
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Organizational behavior is the study of how people act, think, and feel in organized settings. The roots of the field go back thousands of years. Since the 1900s, major perspectives on organizational behavior have included scientific management, the human relations approach, and the contingency approach.

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Adopting a contingency orientation means recognizing that organizational behavior is complex and driven by a variety of factors. Consequently, pat (or “cookbook”) answers are elusive. Managers must develop their own answers, at least to an extent.

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Outstanding managers possess four sets of skills that allow them to effectively navigate the process of managing behavior. That process involves (1) identifying the behavioral challenge; (2) identifying the causes of current behavior; (3) choosing a strategy for attaining behavioral goals; and (4) implementing and adjusting the chosen strategy as needed.

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The behavioral challenges managers face today are exacerbated by the increasing complexity of the work environment and the fast pace of demographic and technological changes.

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The work force is becoming increasingly diverse. Most of the growth in the work force is being driven by women and various racial or ethnic minorities. Increasing internationalization is also bringing people from a variety of cultural backgrounds together in the workplace.

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Being able to manage diversity well is more important than ever because decisions are increasingly made in cross-functional teams and task forces. But most corporations still have a long way to go to create a work environment in which diversity is embraced.

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Likewise, managers need to understand that people who traditionally have been discriminated against (e.g., gays, people with disabilities) represent valuable pools of employee talent.

References: 1. (1998). Can America’s workforce grow old gracefully? The Economist, July 25, 59–60; and Hymowitz, C 2. Pfeffer, J., and J. F. Veiga (1999). Putting people first for organizational success 3. Colvin, G. (1997). The changing art of becoming unbeatable. Fortune, November 27, 299–300. 5. (1999). It’s the manager, stupid. Fortune, October 25, 366–368; Buckingham, M., and C 6. (1997). 8 rules for office workers at the Boston Herald, 1872 7. Kanigel, R. (1997). The one best way: Frederick Winslow Taylor and the enigma of efficiency 8. Sonnenfeld, J. A. (1985). Shedding light on the Hawthorne studies 9. Byrne, J. A. (1997). Management theory—or fad of the month? Business Week, June 23, 47; Munk, N 10. (1999). Know thyself. The Economist, October 30, 76. 11. Coy, P. (2000). The creative economy. Business Week, August 28, 76–82. 12. Valbrun, M. (2000). Immigrants find economic boom brings more than higher pay 13. Malpass, A. (1998). Ready for that job on the street? Business Week, March 16, 118. 14. Crockett, R. O. (1998). Invisible—and loving it. Fortune, October 5, 124–128; and Stepanek, M 15. Gentile, M. C. (1996). Managerial excellence through diversity. Chicago, IL: Irwin; and Joplin, J. R. W., and C. S. Daus (1997). Challenges of leading a diverse workforce. 16. Joplin, J. R. W., and C. S. Daus (1997). Challenges of leading a diverse workforce. Academy of Management Executive, 11, 32–47; and Robinson, G., and K. Dechant (1997). 17. Robinson, G., and K. Dechant (1997). Building a business case for diversity. Academy of Management Executive, 11, 21–31. 18. Edmondson, G. (2000). See the world, erase its borders. 19. (1999). E-xaggeration: The digital economy is much smaller than you think 20. McFarlin, D. B., and P. D. Sweeney (1998). International management: Trends, challenges, and opportunities. 21. Glasgall, W. (1995). Hot money. Business Week, March 20, 46–50. 22. Katz, I. (2000). Adios, Argentina—hello, Brazil. Business Week, January 17, 56. 23. McFarlin, D. B., and P. D. Sweeney (1998). International management. 24. Brown, E. (1999). A day at Innovation U. Fortune, April 12, 163–166; and Port, O., and J 25. Koretz, G. (1999). Who’s stressed out at work. Business Week, April 12, 26. 26. Veiga, J. F., and K. Dechant (1997). Wired world woes: WWW.help 27. Koretz, G. (1999). Who’s stressed out at work. 26. 28. (1998). The big picture: Who needs you most? Business Week, June 22, 8. 29. Shellenbarger, S. (1997). More family members are working together to care for elders. The Wall Street Journal, July 23, B1. 30. Shellenbarger, S. (1997). Work gets wilder as employees insist on stable family life 31. Hammonds, K. H., and A. Therese (1998). The daddy trap 32. (1998). Can America’s workforce grow old gracefully? 59–60; and Hymowitz, C