There are a number of factors to consider when offering a definition of organizational behavior as aspects of it bridge lines of disciplines. Psychology and sociology have improved our understanding of organizational behavior by providing insights about the ways in which employees relate to their organizations differently now than in the past. Changing variables in society and in the economy have caused people to relate to their work in a way that is distinct from previous generations. Employees’ motivation for pursuing and remaining in a job are markedly different in a more expansive and competitive business environment and as a result, it is even more important that employers and managers understand the complex relationships that exist between sociological and psychological forces and how these are important to productivity and other employment-related issues. In the past, it was not uncommon for employees to spend the entirety of their careers in a single organization; today, though, it is more likely that an employee will work in several different positions over the course of his or her professional life.
With this concept of shifting employment paradigms in mind, it is now commonplace to see employees who switch careers altogether (Orazem, Bouillon, & Doran, 2004). Such changes influence the main elements of organizational behavior and professional practices, including the recruitment and retention of employees, the ways in which they are trained, the efforts that are made to elevate morale and the employee’s commitment to the organization, and the strategies used to capture the knowledge and skills of departing employees (van Knippenberg, van Dick, & Tavares, 2007). Psychologists and sociologists suggest that it is more effective for an organization to acknowledge and respond to these trends, rather than fight them and demand the perpetuation of the status quo.
Globalization is one of the variables that is changing the processes and practices of organizations. For managers, the effects of globalization are particularly important, particularly in terms of the way it influences personal and professional relationships. As geographical boundaries in the business world are erased and companies based in one country expand their presence across the world, managers must develop new areas of competence and knowledge (Sabelis, 2004) which are not only related to issues of language, but culture and how different cultural forces complicate business and professional relationships. For the companies that are competing in global markets, managers must attend to the economic, cultural, legal, linguistic, and social norms that may differ in countries in which they operate (Malloy, 2005). In addition to assessing their own skills and knowledge and filling in any gaps, managers are also responsible for determining the level of cultural competence among their employees and providing adequate training to prepare them for the globalized organization.
Another variable which is contributing to the evolution of the theories and practices of organizational behavior is the paradigm shift from intuitive based decision making to systematic, structured schema. While it is true that many managers and organizations prefer intuitive approaches to systematic ones (Khatri & Alvin, 2000), there is a substantial amount of empirical evidence that suggests the benefits of a structured approach to the study and management of organizational behavior. As Clarke and Mackaness (2001) report, for example, people who make decisions on behalf of their organization using intuitive rather than systemic approaches “trade-off depth for breadth of information” (p. 147). In other words, the intuitive impressions used to make decisions fail to consider historical precedents and other factors within the organization that can affect the outcome of the decision. Clarke and Mackaness (2001) also indicate that intuitive decision makers “use personal experiences, surrogate indicators, and typologies to rationalize their decisions” (p. 147). The personalization of the decision-making process therefore challenges and compromises the need to be objective about the decision at hand. Intuitive approaches to studying and managing organizational behavior pose at least one other danger. Intuitive approaches cannot provide a framework that can be used by all employees and against which outcomes can be measured and their impacts assessed. Both strategies and evaluative instruments lack precision and fail to provide a cohesive and common set of standards that all organizational members should follow.
As Recascino Wise and Tschirhart (2000) observe, intuitive schema and assumptions based on personal knowledge and experience also have implications with respect to workforce diversity, which is another subject that has become increasingly important in the study and practice of organizational behavior in recent years. Their research determined that many managers use “largely untested assumptions as a basis for [determining] diversity policies, strategies, and actions” (p. 386). One of these assumptions is that diversity policies, strategies, and actions should only refer to or include a consideration of gender and race or ethnicity. Diversity, however, can refer to age, extent of professional skill and experience, and a number of other demographic characteristics. Managers and organizational behavior experts must consider diversity in an increasingly broad range of contexts, especially in response to globalization and the ways in which it transforms organizational relationships and practices (Triandis, 2003). As organizations develop relationships with other countries and begin to expand their businesses abroad, organizational members should be prepared for new kinds of cultural, linguistic, and professional diversity. Managers play a central role in all of these issues.
References
Clarke, I., & Mackaness, W. (2001). Management “intuition”: An interpretative account of structure and content of decision schemas using cognitive maps. Journal of Management Studies, 38(2), 147-172.
Khatri, N., & Alvin, H. (2000). The role of intuition in strategic decision making. Human Relations, 53(1), 57-86.
Malloy, R.P. (2005). Real estate transactions: Policy considerations for law, technology, and globalization. Law & Policy, 27(1), 81-99.
Orazem, P.F., Bouillon, M.L., & Doran, B.M. (2004). Long-term attachments and long-run firm rates of return. Southern Economic Journal, 71(2), 314.
Recascino Wise, L., & Tschirhart, M. (2000). Examining empirical evidence on diversity effects: How useful is diversity research for public-sector managers? Public Administration Review, 60(5), 386-394.
Sabelis, I. (2004). Global speed: A time view on transnationality. Culture and Organization, 10(4), 291-301.
Triandis, H. (2003). The future of workforce diversity in international organizations: A commentary. Applied Psychology, 52(3), 486.
Van Knippenberg, D., van Dick, R., & Tavares, S. (2007). Social identity and social exchange: Support and withdrawal from the job. Journal of Applied Social Psychology, 37(3), 457- 477.
