MODULE 5

INTRODUCTION TO ORGANIZATIONAL BEHAVIOR

The foundations of organizational behavior can be traced back to the Industrial Revolution.
While the Industrial Revolution began to change company management styles in hopes of
increasing productivity, it was also changing the overall culture and behaviour of each
organization. For the first time, companies were growing at an alarming rate, forcing them to
change their workflow, company policies, and management styles. The first management
theory that helped establish the foundation for organizational behavior was Taylor’s Scientific
Management Theory. As we discussed earlier, Taylor placed a huge focus on productivity and
worked to establish the most efficient ways to accomplish every task, big and small. Taylor’s
theory impacted each organization’s productivity and it also changed the professional and
personal dynamic of its employees and managers. This classical approach to management was
later challenged by the onset of the human relations management movement which helped to
further develop the groundwork organizational behavior.
While effective for productivity, the scientific management theory was missing a key
component, human relations. In response to the classical management approach, human
relations management theory was born. The Hawthorne Studies were a shining example of how
much human relations and interactions can affect the workforce. A connection was finally
made between productivity and the people responsible for it. The Hawthorne Studies proved
that it was important for companies to take interest in their employees in order to increase
productivity and decrease turnover. Not only did the studies show that individuals performed
better when given attention, it also revealed that group dynamics were equally as important as
individual contentment. It was becoming clear that the individual and group dynamics in an
organization were equally important and directly related to the output of a company. It was
through this revelation that people began to study the behavior of organizations at multiple
levels; individual, group, and whole organization. Another big impact on the development of
organizational behavior was McGregor’s Theory X & Theory Y. The two theories are
extremely different. Theory X states that people are inherently lazy and need to be forced to
work. Theory Y on the other hand, says that people are motivated to work and argues the
importance of a team dynamic. Theory Y is the more effective of the two theories and is a
fundamental part of the foundation for organizational behavior.
While organizational behavior roots can be found in many management theories, it was not
officially recognized as a field of its own until the 1970s. Since the 1970s, organizational

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behavior has developed into its own unique field covering a wide variety of topics for
individual and group relations within organizations.

What is Organizational Behavior?

In a nutshell, organizational behavior is the study of how human behavior affects an
organization. Organizational behavior aims to learn how an organization operates through the
behaviors of its members. Instead of taking a strictly numerical approach to determine an
organization’s operations, it takes a more psychological approach. By understanding people,
you can better understand an organization.
Organizational behavior is intended to explain behavior and make behavioral predictions based
on observations. If you can understand behaviors, you can better understand how an
organization works. In addition, organizational behavior studies how an organization can affect
behavior. So, if you think about it, behavior affects an organization and an organization affects
behavior. Let that sink in for a second—it’s all connected! They each affect the other, creating
a never ending loop between the two. Therefore, in order to have a healthy and successful
organization, it is extremely important to understand the ins and outs of organizational
behavior!

Evolution of Organizational Behavior

The academic study of organizational behavior can be dated back to Taylor’s scientific theory
as we discussed earlier in this module. However, certain components of organizational
behavior can date back even further. In this section we will discuss how organizational behavior
developed into a field of its own. Looking back thousands of years we can find components of
organizational behavior. Famous philosophers like Plato and Aristotle discussed key
components of today’s organizations including the importance of leadership and clear
communication. While these seem like very basic and broad concepts today, at the time they
were innovative ideas and helped to lay the foundation for organizational behavior.

If organizational behavior were a simple topic, this course would be short and sweet. We could
simply say that organizational behavior is how people and groups act within an organization.
But it’s not so simple! When organizational behavior grew into an academic study with the rise
of the Industrial Revolution, it began to complicate what could appear to be simple topics.
People began asking a lot of questions and started critiquing how organizations operated. Like
many academic ventures, people began to deep dive into how behavior plays a role in

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organizations and why changes in behavior alter the way organizations operate. Along the way,
organizational behavior has grown to incorporate components of management, psychology,
leadership, personality traits, motivation, etc.
Organizational behavior has grown into its own niche within a wide variety of other genres.
This is exciting because it allows us to really investigate each and every aspect of behavior
within an organization! Today, organizational behavior is recognized as an essential
component of an organization. Scholars and businesses alike recognize its importance and
continue to help it adapt to current issues and new findings. One of the great things about
organizational behavior is that it is constantly changing.

Three Levels of Influence

If you have ever held a job, taken a class, or participated in an organized activity, you have
seen levels of influence. The three levels of influence are the individual, the group, and the
organization. The three levels are interconnected so it is critical to understand each one.
The Individual
The individual level includes each individual person within an organization. Each individual
acts differently which affects group dynamics and the organization as a whole. If there are a
lot of happy and efficient individuals, the work environment will be an efficient and productive
one. However, if there are a lot of negative and disgruntled individuals, it can create a toxic
environment. It is impossible for a company to study each individual employee’s behavior,
however, it is important for a company to create guidelines and expectations that will attract
employees with desirable behaviors. For example, a company may hire employees based on
their personality or how they answer behavioral based interview questions. At the same time,
companies can help influence individual behavior. They do this by creating a code of conduct,
establishing policy and procedure guidelines, and by developing incentives and consequences.
The Group
The group level includes any groups within an organization. Groups can range in size from a
couple people working together, to a large group with dozens or hundreds of members. As we
just discussed, individuals can affect a group and a group can affect an organization. And at
the same time, a group can affect individuals and an organization can affect a group. Imagine
organizational behavior as a large spider web over each organization. The spider web connects
each level of influence with the two others, creating a pathway between each one.

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The Organization
Finally, the organization level incorporates the organization as a whole. In case you haven’t
picked up on the trend, it’s important to point out that the organization impacts the individual
and group behavior and that individual and group behavior impacts an organization.

CONTEMPORARY ISSUES AND TOPICS IN ORGANIZATIONAL BEHAVIOR

Organizational behavior is constantly evolving. Modern issues and current events have an
effect on organizational culture and behavior alike. Changes in society impact how
organizations operate. While it is important to understand the history of organizational
behavior, it is equally important to understand how contemporary issues affect organizational
behavior.

Telecommuting
The Industrial Revolution was just that, revolutionary. Since then, technology innovation has
accelerated and now plays a huge role in day-to-day life. Many would claim that technology
makes life easier, allowing people access to information at the drop of a hat. Others, however,
would disagree and argue that technology is detrimental to human interactions and negatively
impacts relationships. Without a doubt, technology has changed the face of modern society and
the organizations within it.
Since technology plays a prominent role in organizations, it impacts organizational behavior.
Technology allows organizations to be in constant communication. With cell phones, emails,
and video conferencing, people are readily available at any time of day or night. This can be
beneficial for many people, providing them a continuous connection to their workplace or it
could be damaging to work-life balance. New technology innovations have also made once
time-consuming tasks much more efficient, allowing people to accomplish more in less time.
With all of the great things technology brings to the table, it also brings challenges. One
contemporary issue facing organizations today is telecommuting. Telecommuting is a work
arrangement which allows employees to work remotely, often from home, while completing
their tasks. Telecommuting has many benefits and also presents a number of challenges. To
better understand how telecommuting impacts organizational behavior, let’s learn more about
how it works.
According to Global Workplace Analytics 2018 Telecommuting Trend Data, telecommuting
numbers are on the rise. There are currently over 4.3 million employees that work from home,
at least half of the time. In addition, the telecommuter population has grown 11.7% over the

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last year, which is the largest yearly growth since 2008. It is obvious that telecommuting is
changing the way employees interact with their peers and supervisors. Let’s move on and
discuss how telecommuting both challenges and improves organizational behavior. First, let’s
discuss the positive impact telecommuting has on organizational behavior. Telecommuting
allows people to work from anywhere, anytime. This is appealing to many people because it
allows them to better balance their work and personal life. People who telecommute are
oftentimes self-motivated and efficient as they do not have the typical distractions of a
traditional workplace environment. Telecommuters are often happier in their jobs and are
therefore more motivated to perform on a higher level. This in turn benefits the organization
and ensures better employee retention. In addition, telecommuting allows companies to hire
from a larger pool of candidates which gives them the ability to be more selective in the skill
sets and personalities of their employees.
Telecommuting can also save companies a lot of money by limiting the amount of office space
and supplies needed to operate their business. So far, telecommuting sounds great! However,
there are some challenges to managing telecommuters. Being self-motivated is a huge key to
success for telecommuters. If they cannot find a productive place to work, telecommuters may
become easily distracted and not meet their deadlines. This becomes a challenge because
organizations need to rethink how they will manage telecommuters. Since the managers and
employees are not housed in the same building, managers cannot stop by their office to see
first-hand how they are doing. Instead, they need to rely on other electronic methods to ensure
their team is meeting deadlines. Telecommuting also cuts back on daily interactions with other
employees. While conference calls and video conferencing is common practice today, some
telecommuters may feel isolated and struggle with the lack of face-to-face communication.
This can have an impact on morale. Finally, another popular practice in today’s organizations
is having employees that telecommute only part-time. This can create an organization where
some employees telecommute all the time, others telecommute part of the time, and the
remainder work from the office all the time. A 2010 study of the effects telecommuting had on
non-telecommuters revealed some interesting findings. First, non-telecommuters were
frustrated with telecommuters. Some even grew to be envious towards the telecommuters’
working arrangement. This has the potential to create a toxic work environment and have a
negative impact on productivity. There are, however, some key things organizations can do to
help limit these issues. It is extremely important for organizations that offer telecommuting to
establish clear and concise policies and procedures for their telecommuters. These policies and
procedures need to include accessibility expectations, communication requirements,

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mandatory technology capabilities, etc. As you can see, with forethought and a clearly defined
and executed plan, telecommuting can be extremely beneficial to organizations.

Green Business Practices

Close your eyes and try to picture yourself walking around during the Industrial Revolution.
What do you see? Maybe rows and rows of employees with their heads down, working away
on the task at hand. Maybe you see an assembly line, quickly working a product down the row.
You may picture managers in early 1900s clothing, observing their employees from an
observation deck as they work. Or maybe you picture the outside of a factory, with smoke
billowing out of smokestacks, evidence of the production occurring within the building.

Let’s focus on those smoke stacks for a minute. Do you think that companies during the
Industrial Revolution cared about their carbon footprint? Do you think they even knew that
their business could have a negative impact on our environment? If they did, do you think they
would care enough to change their practices? Do you think their customers and local citizens
would demand better environmental practices if they knew the impact of pollution? While these
may not have been important questions back in the day, they are critical in today’s society, as
climate change becomes an ever-present issue. You may have heard of modern terms like
sustainability, going green, carbon footprint, or triple bottom line. These terms play an
important role in modern society and sustainability specifically, is becoming common practice
as consumers are becoming more aware of the impact companies have on the environment.

Sustainability is a balancing act. It is the ability to successfully perform tasks in the present,
while also doing what is necessary to protect the future. Sustainability in regards to the
environment includes reducing your carbon footprint and changing operations to be more
environmentally friendly. Companies that choose to practice sustainability face many
challenges. While many organizations are in agreement that sustainability is important, few
have found a way to successfully implement sustainable practices. Change towards
sustainability starts with the organizational level but is executed at the individual and group
level. Organizational behavior needs to change on all three levels in order to be successful.

The paper usage example, in a nutshell, explains the complications of sustainability in today’s
society. It’s easy to set a goal to become more sustainable. It becomes more complicated to
create a plan to reach the goal of sustainability. More difficult still is the ability of an

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organization to follow-through and instill the plan within their culture. Changing an
organization’s behavior to meet sustainability goals is not a quick and easy thing. It takes lots
of time, energy, consistency, and motivation to successfully lessen an organization’s carbon
footprint. While most organizations recognize the importance of going green, many are still
struggling to successfully evolve their organization’s behavior to meet sustainability goals.

Outsourcing
Before we get started, it is important to define outsourcing. Outsourcing is the practice of hiring
external assets to provide services to help perform job functions typically done by internal
employees. Companies in the United States outsource for a variety of services including but
not limited to call centers, information technology (IT), human resources, and manufacturing.
Outsourcing is a hot button topic in America. Keeping jobs within the United States is a big
concern for many Americans whom argue the importance of employing citizens before hiring
outside of the country. If outsourcing is considered such a taboo practice, then why do
companies continue to outsource? For starters, outsourcing can save companies a lot of money.
The appeal of increasing profit margins can oftentimes outweigh the value put on hiring
American workers. If companies can hire employees to do the same job as their current
employees but for a lower cost, why wouldn’t they? This is a controversial topic in today’s
business world. Outsourcing effects each level of influence within an organization differently.
However, outsourcing, without a doubt, has an impact on a company’s organizational behavior.

Modern technology has connected every corner of the world. Within seconds, people on
opposites ends of the world can “meet” through emails, phone calls, video conferences, etc.
This has allowed outsourcing to become a more feasible business practice than in past decades.
Employees that once all lived in similar locations are now scattered across the country, or the
world, bringing together a wider variety of backgrounds and experiences. Managing
international teams can be a challenge and may create a disconnect between managers and
employees. Even company employees whose jobs are not directly impacted by outsourcing
may be affected. For example, if a company outsources their human resources division, it may
have an indirect effect on the marketing department. While the employees within the marketing
department have job security, their interactions with human resources may pose a challenge as
there would be lack of familiarity and relatability. This has the potential to lead to frustration
and disconnect. While companies may control the outsourcing process, they give up partial
control by hiring a third party. Changing company procedures or practices used to be completed

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in house, but with outsourcing they now have a much lengthier modification process. This new
process may cost additional resources, time, and money.

Freelancing is another form of outsourcing that is becoming more popular. Companies use
freelancers for a variety of reasons. Sometimes, there are special projects that require an outside
perspective or expertise. Other companies frequently use freelancers in order to keep their full
time employee count low and to incorporate a variety of backgrounds and experiences. While
there are a number of benefits to using freelancers, there are some challenges that accompany
them. Hiring too many freelancers (or outsourcing too many positions) can make uniformity
extremely challenging. Keeping company standards and/or products consistent with high
quality may prove to be difficult when there are too many cooks in the kitchen. Constant
turnover or changes in staffing may create a challenging work environment and make it
difficult to maintain effective employee relationships.

So, what do you think? Is outsourcing good or bad for an organization? Obviously the answer
depends on the situation and circumstances of each company. However, regardless of your
feelings or opinions towards outsourcing, one thing is certain: outsourcing impacts
organizational behavior.

Workforce Generations
Think about your most recent family gathering. Were your grandparents there? Maybe your
parents, nieces, or uncles? What did conversations around the dinner table sound like?
Sometimes family reunions are accompanied by a lot of drama and differing opinions. While
some differences may be caused by opposing beliefs, other differences may be something a
little less obvious. Generational differences can include lifestyle differences, motivational
differences, etc. Although you may view these differences as quirky things your Aunt Susie or
Grandma Betty say or do, there may actually be reasons they act a certain way. Understanding
generational differences may help to shed some light on why your family acts the way they do.
More importantly, learning about generational differences may provide helpful insight into
how your coworkers operate. This can be extremely beneficial in creating healthy working
relationships and developing a stronger team.
There are three generations currently active in today’s workforce; Baby Boomers, Generation
X, and Generation Y. Let’s break down each one and examine some similarities and

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differences! Keep in mind, these are generalizations and there are exceptions within each
generation.
 Baby Boomers: born between 1946 and 1964. Baby Boomers have been working the
longest and have extensive knowledge and experience. They want and oftentimes
expect others to value their input and opinions. Baby Boomers believe that hard work
equates to long hours and that integrity in the workforce should be top priority. They
are known to “live to work” and place extreme value on career advancement and
promotion. They enjoy working in a team environment and are said to have created
meeting culture.
 Generation X: born between 1965 and 1981. Generation X has been through a roller-
coaster of economic events. Downturns and upswings have impacted their career
choices, career successes, and career futures. Unlike the Baby Boomers, Generation X
has a more “work to live” mentality and value their life outside of the workplace. While
they have a good work ethic, their work-life balance is of highest importance to them.
 Generation Y: born between 1982 and 1997. Generation Y, also known as Millennials,
are the youngest members of the current workforce. Generation Y typically grew up
with two working parents and a to-do list constantly on display throughout their
childhood. Because of this, Generation Y has the ability to multitask and also values
work-life balance. However, differently from Generation X, Generation Y believes they
need to accomplish things on their to-do list in order to enjoy their free time. Therefore,
Generation Y tends to be very goal oriented and efficient.
 Generation Z: born between 1997 and today. Generation Z has never known a world
before technology. They have grown up in an “always on” world where technology is
readily available and used on a regular basis. Technology has been utilized as a
babysitter by many parents of this generation and it is also present in the classroom.
This constant access to technology makes Generation Z extremely tech savvy but has
also changed behavior and lifestyle. Whether or not these behavioral and lifestyle
changes will carry on into their adulthood is yet to be determined. Generation Z is the
next group to enter into the workforce with the oldest members turning 22-years-old in
2019.

Why can’t we all just get along?

Although there are many differences between the three workplace generations we discussed,
there are certain things that all three can agree on. All three generations place a huge value on

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family. In addition, all three generations believe training and feedback is extremely important
for a successful career. Finally, change is hard. Young, old, or somewhere in the middle, most
people do not enjoy change. Regardless of your personal opinions and preferences, getting to
know your coworkers and how they operate is extremely beneficial to all three levels of
influence.

PERSONALITY AND BEHAVIOR IN THE WORKPLACE

Every work environment is different. While there may be similarities between them, every
organization is comprised of different people which creates a unique groupings of personalities.
While every organization is different, there are certain similarities we can discuss to comprise
a “typical” contemporary work experience. Understanding personality traits is the key to
predicting behavior and understanding how situations can influence individuals.

Personality Traits
Recognizing your personality traits is the first step in successfully achieving your goals. Being
able to capitalize on your strengths and also understanding how to strengthen your weaknesses
is the cornerstone of success. When we use our personality to make decisions best suited for
ourselves, we are more likely to find long-lasting happiness and satisfaction. Similarly,
understanding the personalities of others will help us to form stronger relationships. In some
ways, finding someone with differing personality traits can be beneficial. Relationships
involving individuals with opposite personalities can challenge each person to view situations
from a different perspective. In the workplace, differing personality traits are important to
creating a diverse workplace where creativity and varying ideas can thrive. At the same time,
it is also important to surround yourself with people who have similar core beliefs, values, and
goals. If you are generally a positive person but choose to surround yourself with negative
people, you will most likely become more pessimistic. This type of toxic personality trait can
be detrimental to the workplace. Hiring employees while taking their personality into
consideration (through behavioral based interview questions, personality tests, etc.) can help
foster an inclusive and positive work environment.
Before we dive into the varying types of personalities and how personality traits can be
categorized we first need to address the difference between personality and character. Though
the two are often used interchangeably, they are indeed two different topics. Personality is

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fairly easy to identify early in a relationship. Even when just first meeting someone, it is easy
to tell if that person is outgoing, talkative, funny, or energetic. It is also easy to determine if
someone is boring, negative, or shy. On the other hand, character traits such as loyalty, honesty,
kindliness, etc. are harder to identify immediately upon meeting someone. Character traits
require experience with an individual to fully understand and interpret their choices and
actions. While having a strong character is extremely important for any strong relationship, for
the purpose of this section, we will focus primarily on personality.
Thousands of personality traits have been identified over the years. It would be nearly
impossible to find an effective way to identify each and every one of an individual’s personality
traits. To help streamline the process, multiple types of personality tests are available to help
individuals recognize their strengths, preferences, communication style, among many other
important characteristics. Let’s look into some of the most popular personality tests used today.

Myers-Briggs Type Indicator

First, let’s examine the Myers-Briggs Type Indicator (MBTI). This test was created by Isabel
Myers and her mother, Katherine Briggs. They made the first assessment in the 1940s based
on their familiarity with Carl Jung’s theory on personality types. Myers and Briggs did not
intend to point out people’s flaws but instead aimed to help people better understand
themselves so they could live a happier life. They used four different scales in their assessment:
1. What energizes you and gets you excited?
 Extraversion (E): Are you a person who draws energy from the outside world of people,
things, activities or interaction most of the time? (Keywords: external, outside thrust,
talks out, thinks of many things, involved with people/things, interaction, action, do-
think-do)
 Introversion (I): Are you a person who draws energy from the internal world of ideas,
emotions or impressions most of the time? (Keywords: internal, inside thrust, hold back
on comments, thinks deeply of few things, involved with own thought, work alone,
reserve, think-do-think)
2. Where do you put most of your attention?
 Sensing (S): Do you prefer to take in information through the five senses, noticing what
is here and now most of the time? (Keywords: The five senses, what is real, practical,
present orientation, facts, using established skills, utility, step-by-step)

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  Intuition (N): Do you prefer to take in information through a “sixth sense,” noticing
what might be most of the time? (Keywords: sixth sense, hunches, what could be,
theoretical, future possibilities, insight, earning new skills, novelty, leap around)
3. What do you value most when making a decision or judgment?
 Thinking (T): Do you prefer organizing and structuring information and deciding in a
logical, objective way most of the time? (Keywords: head, logical system, objective,
justice, critique, principles, reason, firm but fair)
 Feeling (F): Do you prefer organizing and structuring information to decide in a
personal, value oriented way most of the time? (Keywords: heart, value system,
subjective, mercy, compliment harmony, empathy, compassionate)
4. What do you show outwardly most of the time?
 Judging (J): Do you prefer living a planned and organized life and are strong on decision
making most of the time? (Keywords: plan oriented, regulate, control situation, settled,
run one’s life, set goals, decisive, organized)
 Perceiving (P): Do you prefer for living a spontaneous and flexible life and are strong
on information gathering most of the time? (Keywords: spontaneous oriented, flow
along, adapt to situation, tentative, let life happen, gather information, open, flexible)
Based on how they answered questions in each category, participants receive a four letter code
using one letter from each of the four categories listed above (e.g., ISTJ, ENFP). These four
letter codes categorize individuals into 16 different personality types.

The Big Five

Another popular way to assess a person’s personality is the The Big Five. The Big Five is a
psychology based assessment that focuses on five wide-ranging categories that describe
personality. The acronym used for The Big Five is OCEAN and include openness,
conscientiousness, extraversion, agreeableness, and neuroticism.

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Openness: People high in openness are more likely to be creative thinkers and enjoy taking on
new activities and challenges. People low in this trait tend to be less imaginative and may not
do well with change.
Conscientiousness: People high in conscientiousness are good at planning ahead, organizing
details, and meeting deadlines. They are also mindful of others and understand how their
decisions and actions can influence those around them. People who are low in
conscientiousness procrastinate on or fail to complete tasks. They also tend to be shy away
from schedules and live unorganized lives.
Extraversion: People high in extraversion enjoy meeting new people and inserting themselves
into gatherings and conversations. They tend to make friends easily and have a large group of
friends. People low in extraversion, also known as introverts, prefer seclusion over company.
They also try to avoid small talk and being at the center of attention.
Agreeableness: People high in agreeableness show a genuine concern for others. They are
known for helping others in need and feeling empathy for the struggles of others. On the other
hand, people low in agreeableness tend to act rude and inconsiderate towards others or even
use manipulation to put their own needs above anyone else.
Neuroticism: Someone high in neuroticism tends to be very moody, stressed, and anxious.
They may get stressed and upset easily. People low in neuroticism tend to be emotionally stable
and do not allow stressors to effect their mood.

Each personality test we discussed are used today to help companies better understand their
employees or employee candidates. It is important to remember that there are thousands of
different personality traits. Each individual has their own unique set and combination of
personality traits. While each of the personality tests we discussed in this module are effective
in their own right, there is no exact science to identifying each and every personality trait

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present in an individual. In addition, many personality tests are based upon an individual’s self
assessment and results may differ from day to day. Personality tests may help to confirm things
you already believed to be true or they may open your eyes to a side of yourself you didn’t
realize existed. Let’s move onto the next section to examine how an individual’s personality
can help to predict their choices and behavior.

PERSONALITY AND BEHAVIOR

As we discussed in the last section, personality traits do not fall under a one-size-fits-all
category. Every individual has their own unique personality that helps to form their outlook on
life and shapes their interactions with others. Imagine being able to take an individual’s
personality fingerprint and predict how they would act in any given scenario. While seeing into
the future is impossible, using personality traits to predict an individual’s behavior is on the
spectrum of possibilities.
Personalities have been studied and discussed dating back to Ancient Greece and Roman times.
Research has been conducted for years and years to try to determine how to properly predict
behavior using an individual’s personality traits. However, in the 1970s, after years of research
and testing, psychologists Daryl Bem and Walter Mischel had limited success in making
consistently successful predictions. Their frustrations led them to believe that situational
factors and stressors were more responsible for decisions than an individual’s personality. So
which is it? Is it personality or the situation that plays a leading role in influencing a person’s
behavior? The short answer is both. Many people expect a clear-cut answer to the question.
However, that is an impossible task when it comes to predicting behavior. It is important to
take into account the individual’s personality in addition to the situation they find themselves
in. The next section will discuss how situations can influence behavior, but for the purpose of
this section, let’s explore the benefits and limitations of using personality to predict behavior.
Personality traits are all on a spectrum. The more extreme an individual is on the spectrum, the
easier it is to predict their behavior. Since many personality tests focus on broad traits (OCEAN
for example), there is a wide range for interpretation. Let’s look at introverts versus extraverts
as an example. Everyone falls somewhere on the introvert vs. extravert scale. Even if you are
more of an extravert than an introvert you may still not be considered a very outgoing person.
Depending on the group of individuals you find yourself with may also change others’
perception of you. For example, if you are surrounded by extremely extraverted people, you
may appear to be introverted, even though you consider yourself an extravert. Similar to weight
or height, everyone has a measurement unique to them but it may appear to be higher or lower

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when compared to that of others. According to McAndrew, Research has shown that the more
to one of the extremes a person falls on a trait, the more consistently the trait will be a factor in
his or her behavior.
It is also important to take into consideration that observing personality traits in multiple
scenarios can be more accurate in predicting behavior. Trying to make a prediction based on a
single interaction does not paint a completely accurate picture of an individual. Being able to
observe the varying degrees of an individual’s personality can help to better understand a
person and determine the best way to maximize their strengths and support their weaknesses.

So how is predicting behavior helpful in the workplace? Using personality traits to form
workgroups and teams can be extremely beneficial in the long run. As we discussed in previous
modules, diversity is important to success. At the same time, pairing together like-minded
individuals can help to promote efficiency and collaboration. Using personality traits and tests
to form teams can help to bring together a beautifully balanced group. It is important to keep
in mind; however, that observing an individual’s personality multiple times may provide
additional insight into how they operate. It is extremely important to utilize new found
information and observations to rearrange team dynamics.
Personality traits alone cannot successfully predict behavior. Situations also play an important
role in determining how an individual will act. Let’s move onto the next section to better
evaluate and understand the role situations play in determining behavior and influencing
personality.

Situational Influences on Personality

Certain situations and circumstances can influence a person’s day in a positive or negative way.
Depending on the circumstance, a normally positive person may become more negative. On
the other hand, a traditionally pessimistic person may appear to be more positive. So how is
this possible? You have experienced both triumphs and tribulations in your lifetime and
whether or not you realized it, they most likely impacted the way you acted and altered your
personality for that period of time. It is human nature for emotions and personalities to differ
depending on what is happening in our lives.
Even if we are not aware of what others may be going through, it is reasonable to assume that
certain situations in the lives of all individuals impacts their personality. For example, you are
out with friends, and you see your friend Lorenzo, who is the most extroverted person in the
group, crying in the corner. Does this mean Lorenzo is no longer an extravert but rather an

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introvert? Or could he be crying because he just heard some upsetting news? Chances are, the
latter option is a more realistic one. While the news may have changed his personality during
that social setting on that day, it most likely did not alter it permanently. Let’s look at another
example. The coworker you disagree with most, Kayla, who constantly argues against your
ideas, comes into work Monday morning with a pep in her step. At your team meeting, she
completely supports your proposed project idea and offers to help execute it. Has Kayla turned
a corner and has decided to end the feud between you two? Possibly. But odds are there is
something in her life that has temporarily altered her personality. What you may not know, is
that over the weekend her all time favorite team won the Super Bowl. Her excitement from the
day before spilled over into Monday, presenting a much version of Kayla that seems to like
you a great deal more.
These are just two small examples of how situations in people’s lives can alter the way they
act. People can also change their personality based on who they’re around. If the person you’re
with makes you uncomfortable, you’re not likely to be very talkative and offer up good
conversation. However, if you’re on the phone with a friend you haven’t talked to for awhile,
you’re likely to have an animated conversation.

If situations can influence personality and personality can predict behavior, then situational
influences also contribute to predicting behavior. It also brings into question whether or not
personality traits are consistent since they are easily influenced by situations. In 1968, Walter
Mischel published a book entitled Personality & Assessment. In his book, Mischel argued that
an interactionist approach was best suited when exploring personality, situations, and behavior.
This interactionist approach believes that both personality and situational circumstances create
behavior. In addition, Mischel explained that personalities tend to differ across a range of
situations (personality at work versus home); however, they keep consistencies within similar
situations (work meetings). This revelation created an upset in the traditional view of
personality by arguing that personality stability and instability can each exist at the same time.

There are two main correlations to remember here:

1. Situations can influence an individual’s personality.
2. An individual’s personality paired with the situation can help to predict behavior.
Companies can use these correlations to create stronger and more efficient teams. While unique
circumstances may arise, understanding personality traits is the first step in developing a strong
organization.

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WORKPLACE INFLUENCE ON INDIVIDUALITY
Today’s workforce is a balancing act. It is important to promote diverse thinking while also
aligning all employees to the company mission and goals. It is important to streamline
processes within an organization while also allowing room for creativity and out-of-the-box
thinking. So how can a company successfully balance all of these expectations? In this section,
we will explore a variety of strategies companies can use to become both more unique and
more uniform. While this sounds like an oxymoron, it is actually a feasible goal. By outlining
acceptable behavior, companies can set guidelines for their non negotiable company standards.
It is also important to understand that diversity and individuality are not the same. While they
each have their benefits, they should not be used interchangeably. We will also explore
different management approaches that can be used to better develop an organization. Finally,
with the continued growth of technology in the workplace, it is important to understand how
technology can impact organizational behavior. Understanding its influence can help
companies to better prepare and adapt to challenges. Let’s jump in and explore conformity
versus individuality in the workplace!

Individuality vs Conformity
Diversity and individuality are vital components of today’s workforce. Differing perspectives
and experiences have the ability to meld together and create a more productive workplace.
There is a huge push in today’s society for support of individuality in the workplace. The idea
behind the importance of promoting individuality is that if people feel supported and have the
ability to do their job the way they want to, they are more likely to enjoy their work. Employees
with high job satisfaction are more likely to perform better for the company.

Therefore, if a company wants to be more successful, they should let employees do what they
want at work, right? Well, not exactly. Equally as important as diversity is a company’s ability
to bond their employees together and work towards common goals and values. To do this,
companies need to have regulations and guidelines in place to help streamline and regulate
output standards and maintain brand integrity. Therefore, both individuality and conformity are
important to modern organizations but balancing the two may prove to be challenging.
Fostering an environment of diversity and individuality is important but it also needs to be done
within parameters. Allowing employees to come to work and perform when and how they want
to is not conducive to running a successful business. This is where conformity comes into play.

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Conformity is typically defined as the expectation of employees to adapt to company policies
and standards and use traditional business practices to complete job functions. This type of
outlook is what gives conformity a bad wrap. Successful conformity in today’s workplace does
not include limiting individuality and forcing employees to conform to societal norms. Instead,
conformity includes setting boundaries for which employees are expected to complete their job
functions. Both the MBO strategy and competency models we discussed in the last section are
examples of conformity guidelines to help direct employees towards company goals. In this
case, conformity is not the evil villain but is instead a sidekick to help lead employees to reach
success and meet expectations.

As we discussed in the topic “Ethics in Business”, the easiest way to narrow the range of
acceptable behavior for ethical concerns is to create and enforce a code of conduct. There are
also legal guidelines and standards to consider when making decisions. While these are both
great examples of outlining acceptable behavior, there is much more a company can do.
Acceptable behavior does not simply mean “right” or “ethical” behavior. It should also include
quality of work standards, meeting deadlines, working well on a team, etc. These types of
expectations may not be as cut and dry as ethics, but there are tools leaders and organizations
can use to help guide their teams to act within the limits of acceptable behavior.

First, let’s explore the idea of Management by Objective (MBO). The main idea behind MBO
is the importance of goal setting. MBO can be practiced on varying levels at different
organizations. Some companies may follow its outlines very strictly and others may use it as a
general guideline when developing goals. In general, the focus of MBO is to have employees
and supervisors work together to set clear and realistic goals. Instead of passing down orders
from one level to the next, using MBO creates an opportunity for an open dialogue around the
task at hand and the best way to accomplish it. (We’ll talk about MBO again in Module 6:
Motivation in the Workplace.)
When creating goals within the MBO strategy, it is important to create SMART goals. SMART
stands for Specific, Measurable, Achievable, Relevant and Time-bound. By using this goal
setting standard, you are able to create realistic goals and have details in place to hold your
team accountable to meeting them. Working together to create goals gains the buy-in of
everyone involved and helps maintain accountability for those responsible. Competency
models are another way to define and outline acceptable behavior. Competency models define

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requirements for job success. These requirements include both the knowledge and skills
required to perform the job. Many competency models also have varying degrees of success
outlined. There are standards set for successfully completing a job and other standards in place
to show when an employee goes above and beyond the job expectations. These differing
expectations can help a company identify employees that are average versus great.
Competency models are extremely useful to everyone within an organization but specifically
within the human resources departments. These models help to create job openings with clear
descriptions of what is expected of the candidates. Equally as important, competency models
help to develop training and development courses to ensure employees have what they need to
be successful in their position. Finally, competency models are used to assess employee
performance during employee reviews. Competency models should be discussed and provided
on day one and used as a guideline while an employee is performing their job functions.
Therefore, reviewing each part of a competency model should easily reveal whether or not an
employee met the company’s expectations.
Companies that utilize both MBO and competency models are setting both their managing team
and employees up for success. By clearly outlining and discussing expectations and goals,
organizations are able to narrow the range of acceptable behavior and minimize confusion.
Establishing clear standards and goals makes it easier for companies to identify top performers
and also makes it easier to identify employees that need additional assistance or those that may
not be a good fit for the organization.

It is important to keep in mind that when applying for any job there are certain company
expectations you will be asked to comply with. This is how companies maintain their brand
integrity, company reputation and desired output. While individuality is welcomed on many
levels (differing communication styles, varying approaches to a project, innovative ways to
tackle a problem, etc.) it must still fall within the general parameters of the company’s
guidelines and regulations.
While individuals can influence the modern workplace in a variety of ways, it is important to
keep in mind that all three levels of influence in organizational behavior are at play in every
workplace. As we just discussed, individuality is important to a successful company. At the
same time, group and organizational guidelines and regulations equally shape the workplace
into what it is today.

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Individualized Management
When asked what type of company college students want to work for when they graduate, a
common answer includes working at a place where the student believes they can make a
difference and feel valued. Finding meaningful employment seems to be a top priority for many
individuals entering the workplace today. In previous decades, people tended to value company
longevity over meaning; their primary goal was to work their way up through the ranks.
Nowadays, with more visibility into company actions than before, there is a big focus on
finding a company that is right for each individual.
So how can the business world piece together the intricate puzzle of the right employee for the
right job? Today, not only should applicants market themselves to companies, but companies
need to also market themselves towards the types of employees they want working for them.
Applicants can show their personal brand through a resume, networking, and interviewing. So
how does a company present itself as a desirable place to work?
First, it is important for a company to let employees be themselves. As we have discussed in
many previous sections, fostering a diverse work environment is the first step to allowing
individuality in the workplace. However, an individualized management approach takes it a
step further. For example, allowing employees to choose their own hours or wear what they
want to the workplace allows for a truly individualized work experience. While these are not
globally accepted ideas, they can be extremely beneficial to fostering a happy and healthy work
environment.
Encouraging an environment where opposites can work together and thrive allows all
employees to feel valued and work together towards common goals. In this case, opposites
does not simply include people from different cultures, but rather people with differing
intellectual abilities and expertise. This means creating a workplace where the artistic and the
analytical can work together without conflict, to create, market and sell products. Arup, an
engineering and design firm responsible for the Sydney Opera House and the Beijing Water
Cube, go to great lengths to incorporate people from all specialties into their planning process.
They describe it as a holistic approach that incorporates not only engineers but also artists,
scientists, politicians, etc. to view a project from every perspective and consider all possibilities
and ideas when working on their projects.
Another ground breaking strategy Arup uses is their unique employee development model.
While managers provide clear expectations to their employees, they do not provide clear
guidelines on how to meet those expectations. Instead, each individual employee is able to
decide on their own how they want to achieve the task at hand. Furthermore, there is not a set

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promotional standard or path in place for employees. Instead, each individual is responsible for
their own development and success with support from the company.

TECHNOLOGY AND ORGANIZATIONAL BEHAVIOR

How does technology impact your daily life? How long could you last without your cell phone,
your computer, your television? Just as technology influences your daily life, it also influences
the modern workplace. As you can see, technology has an impact on every aspect of the
workplace. Let’s further explore some major categories where technology plays a leading role.

Communication
Technology has made communication easier than ever before. Long gone are the days where
you send a letter and wait for a written response or have to use an operator to connect a call.
Emails, texts, interactive documents, and video conferences all make communication easier
and faster than ever before. Electronic communication brings another level of complexity to an
organization as inflection and tone is much harder to detect in text versus a face-to-face
conversation. Utilizing concise and friendly electronic communication can be challenging but
is extremely important to maintaining a professional work environment.

Workplace Environments
Technology has shifted the way the workplace looks today. While many people still go into the
office for their workday, other employees have the option to work remotely. Some companies
even operate strictly online and do not require a brick and mortar workplace. In addition, video
conferences have replaced in-person meetings and changed the dynamic of many professional,
working relationships.

Organization and Efficiency

Technology allows companies to be more organized than ever before. Filing a document can
be done instantaneously and retrieved just as easily. The speed of the internet and the
availability of technology allows for a much more efficient workday. Documents can now be
signed electronically and sent wherever they need to go quickly. Training and development can
now be offered online and allows individuals to complete training on their own time,
eliminating the need to work around many schedules to conduct a training event.

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Accessibility
Technology enables people to be constantly in touch with their work. Email and smartphones
oftentimes prevent people from unplugging from their job. While this can be avoided by setting
aside technology when you are off work, some companies now expect an immediate response
to questions or concerns. While for some this may be a welcomed advantage, for other it can
potentially lead to burnout and frustration. Accessibility of technology is a necessity for almost
every organization. A power outage or lack of internet access can completely shut down a
company.

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