Essential Concepts in Organizational Behavior and Management

Posted on Nov 16, 2025 in Energy Resources, Fuels, and Explosives Engineering

Organizational Behavior and Management Fundamentals

Organizational Behavior (OB) studies how people think, feel, and act in organizations.

OB uses models to simplify reality, analyzing independent (cause) and dependent (effect) variables to explain behavior.

Management: Art, Science, and Context

  • Management is not an exact science; it blends social science, art, and craft.
  • There is no single best way to manage; outcomes vary depending on context, people, and situations.

Leadership vs. Management

  • Leadership focuses on doing the right things.
  • Management focuses on doing things right.
  • Henry Mintzberg views management and leadership as inseparable. Peter Drucker views them as separate.

Mintzberg’s Managerial Roles

Managers perform roles involving information, people, and actions, both internally and externally.

Kouzes and Posner: Five Practices of Exemplary Leadership

  1. Model the Way
  2. Inspire a Shared Vision
  3. Challenge the Process
  4. Enable Others to Act
  5. Encourage the Heart

Foundations and Managerial Activities

  • OB and management draw from multiple disciplines including psychology, sociology, and social psychology.
  • Fred Luthans identified four types of managerial activity:
    • Traditional Management (planning, controlling)
    • Communication
    • Human Resource Management
    • Networking
  • Successful managers (promoted quickly) and effective managers (performed well) often focus on different activities.

Case Studies in Leadership Style

  • Netflix (Reed Hastings): Values freedom, feedback, and innovation. The “dream team” approach prioritizes performance and encourages 360-degree feedback.
  • Travis Kalanick (Uber): Aggressive, risk-taking approach led to growth but created a toxic culture.
  • Joy Mangano (Joy): Transformational leadership focused on resilience and emotional intelligence.

Self-Awareness: The Foundation of Managerial Skills

Self-awareness is the foundation of managerial skills—you must manage yourself before managing others.

Impact of Self-Awareness

Lack of self-awareness leads to poor understanding of personal motivations and impact on others. When present, it improves:

  • Confidence
  • Creativity
  • Decision-making
  • Communication
  • Authentic leadership

Types of Self-Awareness

  • Internal: How we see ourselves and our impact.
  • External: How others perceive us.

Case Study: Google and James Damore

  • Damore criticized diversity hiring policies, suggesting they reinforced gender stereotypes.
  • His firing raised questions about ideological bias, freedom of expression, and psychological safety in workplaces.
  • This sparked debate on quotas and whether diversity efforts may sometimes result in reverse discrimination.
  • Note: Nordic countries use quotas effectively, often achieving best-in-class outcomes for gender diversity.
  • Ideological echo chambers in companies can limit diversity of thought and open dialogue.

David Foster Wallace on Self-Centeredness

In his “This is Water” speech, Wallace illustrates how our default setting is self-centeredness. Real self-awareness requires breaking free from this default and seeing the “invisible” realities around us.

Tools for Developing Self-Awareness

  • Mindfulness
  • Psychometric Tests: Such as MBTI and cultural profiles.
  • Coaching & Feedback
  • Life Story Exercise: Reflecting on five pivotal life events to uncover patterns and core values.

Emotional Intelligence (EI) – Daniel Goleman Model

EI is crucial for managing self and others:

  1. Self-awareness: Recognizing your emotions.
  2. Self-regulation: Managing emotions constructively.
  3. Empathy: Understanding others’ feelings.
  4. Social skill: Applying these in relationships.

Emotional Intelligence and Workplace Dynamics

Why Emotions Matter at Work

Emotions are key in:

  • Motivation
  • Creativity
  • Decision-making
  • Leadership
  • Negotiation
  • Engagement
  • Customer Service
  • Job Attitudes
  • Ethics

Emotions are not a weakness; they are an essential tool to manage people.

Basic Universal Emotions

Anger, Fear, Sadness, Happiness, Disgust, Surprise.

Positive vs. Negative Emotions

Negative emotions are not inherently bad. They should not be suppressed, but rather acknowledged and managed. Forced positivity is fake and creates distrust. An authentic climate allows employees to express and manage emotions openly.

Emotional Labor

Emotional labor involves showing expected emotions at work.

  • Surface Acting: Faking emotions (leads to stress and burnout).
  • Deep Acting: Internally attempting to feel the required emotion (healthier).

Emotional Intelligence (EI) – Daniel Goleman (5 Elements)

The five elements help manage self and others and enhance team success. EI can be learned through reflection, feedback, and practice.

  1. Self-awareness
  2. Self-regulation
  3. Motivation
  4. Empathy
  5. Social skills

Emotional Regulation Tools

Techniques include: Thinking positively, Reframe, Relax, Distract, Suppress.

Diversity, Bias, and Psychological Safety

The Value of Difference

  • Similarity-Attraction Theory: People prefer to work with others like them (homogeneity aids communication).
  • Value of Difference: Encourages broader perspectives and enhances problem-solving, especially for non-routine tasks. Requires careful management of interpersonal difficulties to succeed.

Unconscious Bias and the Business Case

  • Unconscious Bias: Studies (e.g., at Google) show that changing applicant names reveals systemic hidden bias.
  • Business Case for Diversity: Driven by ethical and societal values, not just profit. Benefits include:
    • Attracting & retaining talent (especially minorities).
    • Enhancing customer relations and supplier diversity.
    • Improving workgroup performance.

Managing Diversity

  • Surface-level: Demographics (e.g., age, gender).
  • Deep-level: Values, personality, beliefs.

Three Types of Diversity

  1. Separation: Differences in opinions or geography.
  2. Variety: Categorical differences (e.g., gender, functional background).
  3. Disparity: Hierarchy or rank differences.

Psychological Safety (Amy Edmondson)

Psychological safety is a climate of trust and openness, allowing expression without fear. Leaders must be inclusive, model fallibility, and invite input. This concept is referenced in “The Fearless Organization”.

Fighting Bias in Organizations

Strategies to fight bias include:

  • Use of checklists and broader decision-making.
  • Mentorship and auditing decisions.
  • Exposure to counter-stereotypes.
  • Strong mentor networks help minorities succeed long-term.

Organizational Culture and Gender

  • Women leave fields like consulting at higher rates due to stigma around flexibility.
  • Uber under Travis Kalanick (TK): The aggressive, “cowboy” culture initially helped disrupt the industry but eventually harmed diversity and internal health. A more inclusive CEO was brought in after TK.

Balancing Leadership Styles

  • Confidence vs. Arrogance: Must be balanced with self-awareness.
  • Listening vs. Leading: Strong ideas are vital, but leaders must also remain open to input.
  • Cowboy vs. Team-based leadership: The latter fosters sustainability and inclusion.

Understanding Workplace Personality Traits

Personality Perspectives

  • Nomothetic: Measurable traits; same dimensions apply to everyone.
  • Idiographic: Personality is complex and unique to individuals.

Myers-Briggs Type Indicator (MBTI)

Four axes: Extrovert/Introvert, Sensing/Intuitive, Thinking/Feeling, Judging/Perceiving (16 types, e.g., ENTJ). Widely used, but research on validity is mixed. Helps improve group emotional intelligence.

Messaging by Type:

  • ST = Efficiency
  • SF = Service
  • NF = Growth
  • NT = Competence

The Big Five Model (OCEAN)

This is the preferred model in psychology:

  1. Openness to Experience
  2. Conscientiousness (most related to performance)
  3. Extraversion
  4. Agreeableness
  5. Neuroticism (emotional stability)

Situational Strength: Personality matters more in weak situations. Trait Activation Theory: Traits become relevant depending on the context.

The Dark Triad

These traits are linked to toxic behavior but can sometimes be useful in specific roles:

  • Machiavellianism: Manipulative; ends justify the means.
  • Narcissism: Entitlement, self-importance; can be useful in some leadership contexts.
  • Psychopathy: Lack of empathy, cold; hardest to justify.

Other Personality Dimensions

  • Locus of Control: Internal (I control outcomes) vs. External (outside forces control outcomes).
  • Type A vs. Type B: Competitive vs. relaxed personalities.

Idiographic Perspective Revisited

Each person is unique and not easily comparable. Self-concept forms through social interaction. The self is both active (“I”) and reflective (“Me”). We are shaped by how others treat us.

Values

  • Terminal Values: Desired end-goals (e.g., freedom, success).
  • Instrumental Values: Ways of behaving to reach those goals (e.g., honesty, discipline).

Perception, Attribution, and Decision Biases

What is Perception?

Perception is how we see and understand the world. People act on what they perceive.

How Perception Works

  • Bottom-up: Based on senses (what we see, hear, feel).
  • Top-down: Brain uses past ideas and feelings to make sense of sensory input.

Attribution (Finding Cause)

We guess why people do things. Internal cause = It’s their choice. External cause = The situation made them do it.

How We Decide Attribution

  • Distinctiveness: Do they act the same way in other situations?
  • Consensus: Do others do the same thing?
  • Consistency: Do they do this often?

Common Attribution Errors

  • Fundamental Attribution Error: We blame people (internal cause) rather than the situation (external cause).
  • Self-Serving Bias: Our wins are due to our skill (internal). Our failures are due to bad luck (external).

Perception Biases

  • Selective Perception: Seeing what fits what we already think.
  • Halo Effect: One good trait leads to the assumption that all traits are good.
  • Contrast Effect: Comparing a person with recent people encountered.
  • Stereotyping: Judging by group affiliation.
  • Projection: Thinking others are like us.
  • Similar-to-me: Liking people who are similar to us.

Quick Decisions: System 1 vs. System 2

  • System 1: Fast, emotional, gut reaction.
  • System 2: Slow, logical, deliberate thought.

Decision Biases

  • Overconfidence Bias: Thinking we know more than we do.
  • Anchoring Bias: The first piece of information sticks and unduly influences subsequent decisions.
  • Confirmation Bias: Looking only for proof that confirms existing beliefs.
  • Availability Bias: Picking information we remember fastest or most easily.
  • Escalation of Commitment: Staying with bad choices despite negative outcomes.
  • Randomness Error: Seeing patterns where none exist.
  • Hindsight Bias: Saying “I knew it” after an event happens.
  • Loss Aversion: The fear of loss is stronger than the desire for gain.

Ethics in Choices

  • Utilitarianism: What helps the most people.
  • Rights: Protecting fundamental freedoms.
  • Justice: Ensuring fairness to all.

Motivation Theories and Employee Engagement

Mental Models for Better Decision Making

The document “Mental Models I Find Repeatedly Useful” shares simple ways to think better and make smarter decisions. Key tools include breaking problems into smaller parts, thinking about long-term effects, learning from mistakes, and understanding what you don’t know. The main idea is that using multiple ways of thinking helps you understand things more clearly and avoid common thinking errors.

Defining Motivation

Motivation is the interaction between person and situation. It involves:

  • Intensity: How hard you try.
  • Direction: Effort toward organizational goals.
  • Persistence: How long effort lasts.

Content Theories (What Motivates)

  • Maslow’s Hierarchy of Needs: Five levels of needs (must satisfy lower before moving up).
    • Lower (External): Physiological, Safety.
    • Higher (Internal): Social, Esteem, Self-actualization.
  • Alderfer (ERG): Existence, Relatedness, Growth. Fewer categories, no strict order.
  • McGregor X/Y: Theory X – people dislike work. Theory Y – people enjoy responsibility.
  • McClelland’s Needs: Achievement, Power, Affiliation.
  • Herzberg Two-Factor Theory: Hygiene factors remove dissatisfaction. Motivators drive satisfaction (e.g., achievement).
  • Hackman & Oldham (Job Characteristics Model): Motivation is driven by:
    • Skill variety
    • Task identity
    • Task significance
    • Autonomy
    • Feedback

Process Theories (How Motivation Works)

  • Reinforcement Theory: Behavior is shaped by consequences.
  • Goal-Setting Theory: SMART goals plus feedback equals higher performance.
  • Expectancy Theory: Motivation = Expectancy × Instrumentality × Value.
  • Self-Efficacy: Belief in one’s ability increases effort.
  • Equity Theory: Motivation depends on the balance between input/output compared to others.
  • Self-Determination Theory: Motivation is enhanced by autonomy and internal goals.
  • Cognitive Evaluation Theory: Motivation increases when people feel control over their work.

Intrinsic vs. Extrinsic Motivation

  • Extrinsic: Money, rewards.
  • Intrinsic: Passion, purpose.
  • Money is complex: mostly extrinsic but tied to intrinsic values (freedom, family, power, esteem).

Employee Engagement and Motivational Tools

Employee Engagement involves involvement, satisfaction, and enthusiasm for the job. It is boosted by autonomy, recognition, and meaningful work.

Motivational Tools: Combine pay, growth, and feedback. Do not rely only on money. Offer development, time off, and autonomy.

Leadership Insight on Motivation

True motivation comes from liking what you do. Leaders influence others by making them believe the idea was their own (fostering intrinsic motivation).

The Case for Good Jobs (Mercadona)

Employee well-being leads to better company performance. Bad jobs result in high turnover and low service. Mercadona demonstrates that good pay, treatment, and training lead to better service, low prices, and loyalty.

Team Dynamics and Group Performance

Groups vs. Teams

  • Group: People working on individual goals.
  • Team: Shared goal, skills, accountability, and synergy.

Types of Groups

  • Formal: Command, Task.
  • Informal: Interest, Friendship.

Stages of Group Development

  1. Forming
  2. Storming
  3. Norming
  4. Performing
  5. Adjourning

Teams generally improve across these stages. Punctuated-Equilibrium Model: Temporary teams shift pace midway through their lifespan.

Roles and Norms

  • Roles: Expected behaviors. The Prison Experiment showed identity can be lost in group roles, leading to high conformity.
  • Norms: Acceptable behavior standards. The Asch Experiment showed people conform to the group even when the group is wrong.
  • Conformity: Fitting in. Deviance: Breaking norms.

Status, Size, and Cohesiveness

  • Status: Based on power, skills, and traits. High-status members are often assertive and less rule-bound.
  • Size: Large groups risk social loafing (individuals exerting less effort). This can be fixed with goals, peer review, and rewards.
  • Cohesiveness: Bond and motivation to stay. Boosted by shared goals, small size, and time together.

Group Decision Making

Group Strengths and Weaknesses

  • Strengths: More information, diversity, buy-in.
  • Weaknesses: Slow, pressure to conform, dominance by individuals.

Decision Pitfalls

  • Groupthink: Fear of disagreement overrides realistic appraisal of alternatives.
  • Groupshift: Decisions become more extreme than the initial individual positions.

Decision Methods

  • Interacting
  • Brainstorming
  • Nominal Group Technique
  • Electronic Meetings

High-Performing Teams

Teams increase performance, motivation, and learning. Good teams ensure everyone contributes. Avoid dominating or withdrawing behaviors.

Google Study on Team Success

Team success depends on:

  1. Equal Talk (contribution equity)
  2. Social Sensitivity
  3. Psychological Safety

Other factors include trust and dependability.

Leadership for Team Success (Amy Edmondson)

Requires situational humility and humble listening (listening to understand, not to win).

Self-check: Leaders must assess whether they help or block team success.

Organizational Case Studies

  • Buurtzorg: Focuses on autonomy, well-being, and innovation, prioritizing values over profit.
  • Toyota Production System (TPS): Uses Lean thinking to cut waste and add value. Four pillars:
    • Genchi Genbutsu: Go and see the actual process.
    • Jidoka: Quality built in.
    • Poka-yoke: Error prevention.
    • Kaizen: Continuous improvement.
    The culture emphasizes respect, training, and teamwork (Just-in-Time efficiency).

Leadership Models: Classical, Contingency, and Contemporary

Classical Leadership Theories

  • Trait Theory: Leaders are born with traits (e.g., extroversion, emotional intelligence), but everyone can lead in their own way.
  • Behavioral Theory: Leaders are made. Two key styles:
    • Initiating Structure: Task-focused (goals, productivity).
    • Consideration: People-focused (trust, relationships).

Contingency Theories (Situation Matters)

  • Fiedler’s Model (Most Supported): Effectiveness depends on style + context (trust, task structure, position power). Uses the LPC scale.
  • Hersey & Blanchard (Situational Leadership): Style depends on follower readiness (ability + willingness).
  • Vroom & Yetton Model: Determines how participative leaders should be. Five styles: two autocratic, two consultative, one group consensus.
  • Leader-Member Exchange (LMX): Focuses on relationships. Distinguishes between the In-group (trusted, close) and the Out-group (less access, less influence).

Contemporary Leadership Approaches

  • Charismatic Leadership: Uses strong vision, communication, and personality to inspire. Can sometimes be ego-driven.
  • Level 5 Leadership: Combines extreme humility + fierce will. Leaders prioritize the company, take blame, and build future leaders.
  • Transactional vs. Transformational:
    • Transactional: Structure, rewards, clear roles.
    • Transformational: Inspiration, vision, long-term change.
  • Authentic Leadership: Ethical, self-aware, values-based, transparent, and builds trust.
  • Servant Leadership: The leader serves the team, supporting follower growth and development.

Moneyball Example

The case contrasts traditional, consensus-based scouts with the autocratic, data-driven, and transformational manager. This shows how leadership style significantly affects outcomes.