Learning Outcomes

• Define organizational behaviour and explain why it is important for managers.
• Identify the four principles of total quality management (TQM).
• Define the term e-business, and specify five ways the Internet is affecting the management of people at work.
• Describe the four layers of diversity in an organization's workforce. Explain three general diversity management practices.
• Define globalization and explain the OB research finding that is particularly significant in this regard.

Chapter Summary

1. Define organizational behaviour and explain why it is important for managers. Organizational behaviour (OB) is a field of study dedicated to better understanding and managing people at work, both individually and in groups. OB is important for managers because of the increasing evidence that there is a strong connection between how organizations manage their people and the economic results achieved by the organization.

2. Identify the four principles of quality management. The four principles of quality management are (a) do it right the first time to eliminate costly rework, (b) listen to and learn from customers and employees, (c) make continuous improvement an everyday matter, and (d) build teamwork, trust, and mutual respect.

3. Define the term e-business, and specify five ways the Internet is affecting the management of people at work. E-business involves using the Internet to more effectively and efficiently manage every aspect of a business. The Internet is reshaping the management of people in the following areas: e-management (networking), e-communication (email and telecommuting), goal setting and feedback, organizational structure (virtual teams and organizations), job design (desire for more challenge), decision making (greater speed and employee empowerment), conflict and stress triggered by increased speed, rapid change and inevitable conflict and resistance, and ethical problems such as overwork and privacy issues.

4. Describe the four layers of diversity in an organization's workforce. Explain three general diversity management practices. The four layers of diversity are:

(1) personality, which is unique to every individual,
(2) internal dimensions such as age and race,
(3) external dimensions such as religion and marital status, and
(4) organizational dimensions such as job title. Three general diversity management practices are: (a) accountability practices to ensure that diverse employees are treated fairly, (b) development practices to prepare diverse employees for greater responsibility and advancement, and (c) recruitment practices to attract diverse job applicants at all levels.

5. Define globalization and explain the OB research finding that is particularly significant in this regard. Globalization is the extension of business operations to markets around the globe. The contingency approach to OB is particularly relevant here, as it suggests that it is better to use management tools and techniques in a situationally appropriate manner than to rely on "one best way" to manage.