An organization means an organized effort of people, which satisfies the society’s needs for its own purpose.

Human capital is one of the most important assets of organizations. This kind of capital includes knowledge, skill, ability and experience of individuals

Organizational culture is defined as the set of shared beliefs, values, attitudes, norms, goals and practices among the organizational members, so that these shared values and behaviors form a unique psychological and social organizational environment that characterize the organization.

Although it is primarily identified with psychology, OB field also emerged from sociology, political science and economics (Schneider, 1985). Besides, anthropology field has important contributions for OB. In addition to social sciences, engineering and medicine also contributed to its development

Frederick Winslow Taylor (1856-1915), who was an engineer and manufacturing manager at a steel company in U.S., is best known for defining scientific management techniques, in other words applying engineering principles to the study of work tasks

The researchers also discovered the attitudes and feelings of employees; manager’s behavior or leadership; social and interpersonal human dynamics, and the behavioral norms set by the task group, as critically important factors for productivity

Managing organizational behavior in today’s organizations is especially challenging for organizations which face many outstanding rapid changes in their external environment. These challenges can be grouped into four; which are, (1) increasing globalization, (2) need to understand diverse workforce, (3) advancing technology, and (4) managing ethical issues.

GDP (gross domestic product) is the total value of goods produced and services provided by a country’s economy within a specified time-period, which is usually one year.

Mobbing is defined as systematic psychological abuse of an individual or group; the ultimate purpose of mobbing is making the individual leave the organization as a result of damaging the reputation, honor and integrity of the individual.

As a result of increasing global economy, organizations’ workforce has more cultural diversity. Employees are working in teams with others who have different national origins, or they need to cooperate with them who work in the subsidiaries of their companies located in different countries. Therefore, team performance and effective communication among others arise as important OB topics

Schwartz (1987) distinguished between two views of organizations. The first one, which he defined as clockwork, represents an organization where everyone knows what the organization is about; and the other one, defined as snakepit, represents an organization where nobody knows what is going on.

Schwartz (1987) distinguished between two views of organizations. The first one, which he defined as clockwork, represents an organization where everyone knows what the organization is about; and the other one, defined as snakepit, represents an organization where nobody knows what is going on.

A team is defined as two or more people with shared leadership and fate, who work together and interdependent on each other’s support towards achieving a common goal; therefore, team members are jointly responsible for their outcomes.

A group is two or more people who interact with each other to achieve their individual goals which are not mutual goals.

In today’s conditions, engineering discipline impacts OB field in terms of occupational health and safety which has became a popular area of
research.

In 1776, Adam Smith suggested division of labor.

The Industrial Revolution which took place firstly in Great Britain during the late 1700s and early 1800s.

Frederick Winslow Taylor (1856-1915), who was an engineer and manufacturing manager at a steel company in U.S., is best known for defining scientific management techniques, in other words applying engineering principles to the study of work tasks.

Managing organizational behavior in today’s organizations is especially challenging for organizations which face many outstanding rapid changes in their external environment. These challenges can be grouped into four; which are, (1) increasing globalization, (2) need to understand diverse workforce, (3) advancing technology, and (4) managing ethical issues. These challenges should be addressed by organizations with increasing sensitivity for managing their human resources. "Difficulties in effective communication" is NOT on of these challenges.

Glass-ceiling, which was first coined by Hymowitz and Schellhardt in Wall Street Journal in 1986, defines an invisible barrier that prevents women (or the minorities) from rising above the hierarchical-level.

An organization means an organized effort of people,
which satisfies the society’s needs for its own
purpose. This definition covers three important
concepts. One of which is that organizations exist
for a purpose, either to earn profits (as it is the
purpose of most organizations) or to serve the
community and act for its welfare (purpose of
non-profit or charitable organizations is to fulfill
social mission). The second concept regarding the
definition is that organizations satisfy the needs
of the society in which they operate. The
final concept reflects the necessity of organized
effort of people who work for the organizations
so that they can satisfy the society’s needs and
achieve their purposes.
An organization is a composition of technologies.

The main assumption of organizational
behavior is that each individual is unique
in terms of their personality, needs,
expectations, or perceptions. Therefore organizations do not cover fully identical group of people.
Each individual is unique.

Hawthorne studies created a
new paradigm in human related
disciplines in terms of indicating the
importance of emotions and social
interaction among employees

As open systems, organizations must be in continuous interact with the environment. therefore have to
continually monitor and interact with the
external environment.
Organizations have to continually monitor and interact with the
external environment.

Diversity and diverse workforce is a main result of globalized operations.
A diverse work force reflects both similarities and differences in terms of
individual characteristics. Organizations need to be
responsive to changing demographic trends.

According to the contingency theory, “the best way”
changes according to different situations; there is “no best way” and the solution depends on the conditions
at a certain time.
There is no best way of organizational structure.

Many MNCs in recent years benefited from
cost advantages of outsourcing, which is defined
as the completion of organization’s activities,
jobs or processes, outside the organization. To do
this, the organization makes an agreement with
a service provider (usually in a foreign country
with cost advantage) or an individual; and by
using outsourcing, organizations stop doing their
outsourced activity and have other organizations
with expertise to complete it with more efficiency.

Globalization created a competitive
environment which organizations may respond
with new products that meet the changing customer
demands. Companies ensure the development of
new ideas, through diversity. Diversity of workforce
brings different perspectives, due to interaction of
different skills, talents and experiences of employees,
which is an important driver of creativity leading
to innovation. New ideas and products develop
as a result of multiple ideas. Being aware of this,
organizations handle diversity management as an
ongoing activity. On the other hand, a culturally
diverse workforce helps organizations to overcome
language and cultural barriers. In addition,
organizations could also benefit from generational
diversity, by creating mentorship and coaching
programs for younger generations.
Diversity management refers to recognize
differences and respond to those differences
in ways that make each employee fulfilled.

The concept of “creative destruction”
was popularized by Schumpeter (1942), who
described it as the discovery of new ways of doing
things as a result of innovation, while the older
ways are abandoned. These new innovations could
destroy all of the business or in fact industries.

Organizations, besides developing ethical codes, should try to build an
ethical climate and should promote their managers
to act ethically. In addition, society encourages
whistleblowers, who inform the society and other
authorized parties about the unethical behaviors
of their organizations. Organizations would also
benefit from whistleblowing, when shareholders
or managers are aware of unethical conduct of
coworkers of whistleblowers.
Whistle blower is the person who informs the society and other
authorized parties about the unethical behaviors
of their organizations.

Psychology at the individual level, and sociology at the group level provide main contributions to organizational behavior (OB). The topics of industrial organizational psychology, such as motivation, power and leadership, employee training and development, performance appraisal; and in terms of sociology based topics such as inter-group behavior, social categories and systems, small groups and group dynamics are very similar to the topics of OB. Contributions of economics to OB are
mainly related with organizational structure. Economic pressures, as well as other factors, affect the organizational structure design and change, and the structure forms the basis for employee behavior. On the other hand, behavior of individuals and groups in a political environment is studied by political science. This field contributes to OB with the topics of power allocation, conflict resolution, individual interests and negotiation. Last but not least, anthropology discipline provides insights for understanding the relationship of human with the environment, and the contributions of this discipline to OB field are in terms of organizational culture and its effects on human behavior.

Taylor, who is best known for defining scientific management
techniques, indicated that with division of labor and work specialization, time and effort of employees for the production of a unit of product
will be reduced which results in a more efficient production process. Taylor not only focused on the efficiency; by focusing on work processes to increase efficiency, he also systematically studied human behavior and the interaction of people with their tasks and physical conditions. In order to achieve his goal of maximum output, he focused on developing stable and predictable work behaviors and eliminating or reducing variability resulting from human factors. Believing that the primary employee motivation was money, Taylor developed piece-rate systems of pay that is differential incentive systems based on extra completed work. On the other hand, Hawthorne studies led the researchers turn their attention to leadership in organizations, who believed that the productivity could be increased not only by financial rewards but with cooperative behavior of managers and supervisors with employees. Because, one of the influencing results of the Hawthorne studies suggested that employees perform better if they receive attention and recognition.

Mainly three stages exist in open-systems perspective. These stages are defined as input, transformation and output. Each of the stages is affected from each other and by the forces outside the organization. Basically, the organization obtains the resources necessary for production from its environment, transforms these resources into products, and delivers them back to its environment.

Early approaches for organization studies were about suggesting universal solutions for organizational problems; the general principle was about finding “one best way of organizing” that could be applied as a “formula” for identified situations. With contingency theory, this concept changed to an understanding that there exist no certain principles to determine the organizational behavior. This is due to the fact that none of the principles are appropriate for explaining a unique situation.

Globalization implies a borderless world, which means the development of an increasingly integrated global economy. The organizations rotate their managers to other countries in which they
have operations; by this way, they can directly gain information about the problems and other necessary issues. These managers called as expatriate managers help the organizations to coordinate their activities in foreign countries with respect to organizational procedures and standards. Transforming means changing in character or condition and is a component of systems approach (transformation). Stereotyping is a way of demarcating one group from an alien ‘other’ and implicitly asserting superiority of the closely related group.

Although globalization has many benefits such as increase in sales due to activities in countries other than domestic country and reduction of costs, it also brings along some important risks in terms of organizational behavior. Because the foreign managers might have different views about the organizational purposes and strategies,
the coordination of global activities might arouse as a risk and the conflicts might occur due to inadequate communication.

Diversity reflects both similarities and differences in terms of
individual characteristics. Discrimination explains the treatment of one party in favor of the other. Although the societal roles of women are many (they are responsible for housework, child-care and elderlycare);
mostly they are supported to handle all the roles and as a result of these multiple roles, work-family conflict occurs. Mobbing is defined as systematic psychological abuse of an individual or group; the ultimate purpose of mobbing is making the individual leave the organization as a result of damaging the reputation, honor and integrity of the individual. Glass-ceiling, which was first coined by Hymowitz and Schellhardt in Wall Street Journal in 1986, defines an invisible barrier that prevents women (or other minorities) from rising above the hierarchical-level.

As a result of increasing global economy, organizations’ workforce has more cultural diversity. Employees are working in teams with others who have different national origins, or they need to cooperate with them who work in the subsidiaries of their companies located in different countries. There are many forms of diversity and in general
it can be classified into two dimensions as primary and secondary. Primary dimension, including especially gender and age, can be noticed easily; and the secondary dimension, including education, religion, income and others, might change with time and are not noticeable at first sight. Ability diversity is another form of diversity which is becoming more important. During the previous years, disabled people were generally underutilized in the workforce, but it is
expected that workforce representation of disabled people will increase in the near future.

Technology is defined as the application of scientific knowledge to design, produce, and utilize goods and services. Technology consists of systems, methods and tools, and used for practical purposes, that is transformation of inputs to outputs. Diversity management refers not to treat everyone alike. It refers to recognize differences and respond to those differences in ways that make each employee pleasant. Schumpeter (1934) defined innovation long ago, as new combinations of new or existing knowledge, resources, equipment, and other factors.

Business ethics is defined as the study of moral behaviors and principles that guide business activities. It helps managers to distinguish between what is “right” or “wrong”, and then make the right choice. Business ethics generally includes controversial issues, such as fraud, bribery, insider-trading, confidentiality of company records and employee rights such as equal employment opportunity and discrimination among employees, decision to produce unsafe or unhealthy products, polluting the environment.

The study of OB is primarily concerned with the individual characteristics, including personality, feelings, perception, values, attitudes, capabilities, motivation, and many other topics; and which of these characteristics are related with employees’ job outcomes (such as, motivation, performance, conflict, stress and burnout). Apart from individual characteristics, the team and/ or group characteristics and processes also matter for OB. Both team and group represent two or more people; whereas, a team is defined as two or more people with shared leadership and fate, who work together and interdependent on each other’s support towards achieving a common goal; therefore, team members are jointly responsible for their outcomes. Representing the team’s common identity, sports teams (i.e. football team) form an example and all the team members are responsible for the championship or bad league performance. The group members do not share characteristics of teams. A group is two or more people who interact with each other to achieve their individual goals which are not mutual goals. The correct answer is Choice A.

Being similar to the characteristics of a national culture; organizational culture is defined as the set of shared beliefs, values, attitudes, norms, goals and practices among the organizational members, so that these shared values and behaviors form a unique psychological and social organizational environment that characterize the organization. The correct answer is Choice B.

Imagine that you are the manager of human resource department in an organization, where relationship based conflict occurs frequently. To solve conflict, firstly, at the individual level analysis, you have to explore individual sources of conflict. This road takes you to analyze personalities and perceptions of the conflicting partners. At the group level analysis, you need to analyze communication patterns or look at the way conflicting partners interact. And finally at the organizational level, you need to focus on how people structure their working relations in HR department. The correct answer is Choice D.

It is generally considered that systematic organizational studies began as an academic discipline, after the Industrial Revolution which took place firstly in Great Britain during the late 1700s and early 1800s. This is the first milestone for OB. The emergence of scientific management represents the peak of this development, which dates back to the end of 19th century. Frederick Winslow Taylor (1856-1915), who was an engineer and manufacturing manager at a steel company in U.S., is best known for defining scientific management techniques, in other words applying engineering principles to the study of work tasks. Although, many people criticize his approach for treating the employees rather like machines(According to Morgan’s (1986) “machine” organizational metaphor, people are expected to work similar to clockwork, with certain procedures and repeat them mechanically.) not humans, his lasting approach formed the basis of modern management studies. The correct answer is Choice C.

After the First World War, the effect of human and psychological factors became the main focus of organizational studies, which formed the second milestone of OB history. Most of the studies followed the footsteps of Taylor, and focused on efficiency of work activities. During 1925 to 1932, a series of studies known as Hawthorne Studies, conducted at Hawthorne Plant of the Western Electric Company; the studies at first was influenced from the scientific management principles, but developed to be the major research advancement in understanding of human behavior in organizations. The research at the Hawthorne Plant, which consisted of four separate studies that last over a seven-year period was directed by Fritz Roethlisberger; but Elton Mayo was the influential researcher who encouraged the organization’s management to further develop the Hawthorne studies which were preceded by a series of studies focusing on the effect of illumination conducted by himself in Philadelphia textile industry. These studies, consisting of several experiments, were initiated to investigate the effect of characteristics of work setting (specifically the lighting or illumination level) on the productivity of employees consisting of test groups (for whom the level of illumination varied) and control groups (for whom the level of illumination held constant). Unexpected results of the experiments surprised the researchers who discovered that employee productivity increased approximately at a same rate, for both test and control groups. This particular effect which lacks the direct cause and effect relation, derived from the first experiments, became known as the Hawthorne effect. It suggests that human motivation, which was not included in the research, has an important role in work settings. The researchers found out that the surprising results they obtained were due to the effect of many factors influencing the behavior of Hawthorne employees. The employees, receiving attention of the research team, behaved differently when being studied than they might otherwise, and they were willing to cooperate with the researchers to reveal their desired results. After this first experiment, other important results were derived from the following experiments. The researchers also discovered the attitudes and feelings of employees; manager’s behavior or leadership; social and interpersonal human dynamics, and the behavioral norms set by the task group, as critically important factors for productivity. The correct answer is E.

With an emphasis on human side of organizations, human relations view attracted many research; but later important criticisms occurred due to its emphasis on mostly small and informal groups and the relations among the group members. The human relations approach ignored the formal organization and its relation with the environment. The correct answer is Choice C.

Systems theory fundamentally focuses on the interactions among the smaller parts and opensystems theory identifies the relations between the different parts of the organization, and between the organization and its environment. The organization is considered as a system with input-output relations. The correct answer is Choice E.

Contingency theory, which was first termed in 1967 by Lawrence and Lorsch who investigated the effect of uncertainty and variance on organizations; represents an important part of systems approach. Within the scope of contingency theory, organizations are studied as a system. The theory focuses on both the relations of sub-systems of the organization and the relation of these sub-systems with the situations outside the organizations. Contingency theory did not totally remove the assumptions of prior approaches, but it brought a new perspective to them, which were the consideration of environmental factors and the fit of organizational factors with these external factors. The correct answer is Choice B.

Managing organizational behavior in today’s organizations is especially challenging for organizations which face many outstanding rapid changes in their external environment. These challenges can be grouped into four; which are, (1) increasing globalization, (2) need to understand diverse workforce, (3) advancing technology, and (4) managing ethical issues. The correct answer is Choice E.

Globalization created a competitive environment which organizations may respond with new products that meet the changing customer demands. Companies ensure the development of new ideas, through diversity. Diversity of workforce brings different perspectives, due to interaction of different skills, talents and experiences of employees, which is an important driver of creativity leading to innovation. New ideas and products develop as a result of multiple ideas. Being aware of this, organizations handle diversity management as an ongoing activity. Diversity management refers not to treat everyone alike. It refers to recognize differences and respond to those differences in ways that make each employee pleasant. The correct answer is Choice D.

Individual, group and organizational levels are the levels of organizational behavior. Correct answer is (E)

Business ethics is defined as the study of moral behaviors and principles that guide business activities. Correct answer is (E).

Both team and group represent two or more people. Correct answer is (A).

OB should be multidisiplinary, so the first premise is wrong. The other two premises, ii and iii, are true. The correct answer is (D).

Mobbing is defined as systematic psychological abuse of an individual or group; the ultimate purpose of mobbing is making the individual leave the organization as a result of damaging the reputation, honor and integrity of the individual. The correct answer is (E).

People born between the years of 1946 and 1964 are known as “baby-boomer” generation. People that were born between 1965 and 1980 are known as Generation-X. Generation-Y represents people who were born between the years of 1981 and 1999. Generation-Z consist of people who were born after 1999. Correct answer is (B).

Organizations are not systems that develop spontaneously without any plan. On the contrary, they are systems that need to progress in a timely and planned manner. Correct answer is (E).

The study of OB is primarily concerned with the individual characteristics, including personality, feelings, perception, values, attitudes, capabilities, motivation, and many other topics. Therefore, organizational behavior does not aim to createa an uniform employee profile.

Activities are not among the main factors affecting organizational behavior. Correct answer is (E).

The nature of people and organizations are the basic concepts of organizational behavior. Correct answer is (A).

Human capital is one of the most important assets of organizations. This kind of capital includes knowledge, skill, ability and experience of individuals. As can be understood from the information given, the correct answer is E.

The study of OB is primarily concerned with the individual characteristics, including personality, feelings, perception, values, attitudes, capabilities, motivation, and many other topics; and which of these characteristics are related with employees’ job outcomes (such as, motivation, performance, conflict, stress and burnout).
A team is defined as two or more people with shared leadership and fate, who work together and interdependent on each other’s support towards achieving a common goal; therefore, team members are jointly responsible for their outcomes.
A group is two or more people who interact with each other to achieve their individual goals which are not mutual goals.
Being similar to the characteristics of a national culture; organizational culture is defined as the set of shared beliefs, values, attitudes, norms, goals and practices among the organizational members, so that these shared values and behaviors form a unique psychological and social organizational environment that characterize the organization.
Organizational structure is defined as how people are organized or the division and coordination of jobs; the basic dimensions of organizational structure are the key organizational parts responsible for its success or failure, coordination mechanism, and type of decentralization.
As can be understood from the information given, all definitions in the answer choices are correct, so the correct answer is E.

The design of organizational structure, either hierarchical or collaborative, among other things, is a primary factor that defines supervision and manager-employee relations, decision-making, problem-solving, power relations, communication, standardization of work processes. As can be understood from the information given, the correct answer is E. All the components given in the answer choices are defined by the design of the organizational structure.

It is clear that psychology at the individual level, and sociology at the group level provide main contributions. The topics of industrial-organizational psychology, such as motivation, power and leadership, employee training and development, performance appraisal; and in terms of sociology based topics such as inter-group behavior, social categories and systems, small groups and group dynamics are very similar to the topics of OB. As can be understood from the information given, the correct answer is E. All topics in the answer choices are related to industrial-organizational psychology.

Behavior of individuals and groups in a political environment is studied by political science. This field contributes to OB with the topics of power allocation, conflict resolution, individual interests and negotiation, so the correct answer is A.
Anthropology discipline provides insights for understanding the relationship of human with the environment, and the contributions of this discipline to OB field are in terms of organizational culture and its effects on human behavior.
Contributions of economics to OB are mainly related with organizational structure. Economic pressures, as well as other factors, affect the organizational structure design and change, and the structure forms the basis for employee behavior.
In today’s conditions, engineering discipline also impacts OB field in terms of occupational health and safety which has became a popular area of research.
Medicine discipline with its concern on psychical and psychological health, also contributed to the development of the field, the main topics are related to work-stress and well-being.

The history of OB starts with the most influential Greek philosophers, whose thoughts are still valid for today’s organizations. The roots of OB can be traced back to the writings of Plato who mentioned essence of leadership and specialization, and Aristotle who addressed persuasive communication. During Renaissance time in Italy, Machiavelli, who was considered as the founder of history and political science, discussed power and politics. Later, in 1776, Adam Smith suggested division of labor. The modern history of OB, based on these ancient roots, is also not a new field of study; there had been more than one hundred years of progress about the field. As can be understood from the information given, the correct answer is E. All statements given in the answer choices are correct.

The emergence of scientific management represents the peak of this development, which dates back to the end of 19th century. Frederick Winslow Taylor (1856-1915), who was an engineer and manufacturing manager at a steel company in U.S., is best known for defining scientific management techniques, in other words applying engineering principles to the study of work tasks. But, also with an engineering background, as he applied the scientific principles to human behavior in organizations, emphasizing human productivity and efficiency in work-behavior; Taylor’s work is generally recognized as the beginning of the history of modern organizational behavior. Taylor indicated that with division of labor and work specialization, time and effort of employees for the production of a unit of product will be reduced which results in a more efficient production process. Taylor not only focused on the efficiency; by focusing on work processes to increase efficiency, he also systematically studied human behavior and the interaction of people with their tasks and physical conditions. In order to achieve his goal of maximum output, he focused on developing stable and predictable work behaviors and eliminating or reducing variability resulting from human factors. Believing that the primary employee motivation was money, Taylor developed piece-rate systems of pay that is differential incentive systems based on extra completed work. As can be understood from the information given, the correct answer is E. All statements related to scientific management given in the answer choices are correct.

Hawthorne studies formed a basis to understand social and psychological behavior in organizations, and revealed that the complex human behavior including feelings, perceptions, thoughts, and behaviors of group members and managers were critical for understanding performance. The Hawthorne studies implied managerial and group behavior in organizations is important in explaining employee performance as well as the technical aspects of work. Developing as a myth, in social psychology, which covers industrial and organizational psychology, management theory, industrial sociology (Gillespie, 1993); Hawthorne studies led the researchers turn their attention to leadership in organizations, who believed that the productivity could be increased not only by financial rewards but withcooperative behavior of managers and supervisors with employees. This was mainly because that one of the influencing results of the Hawthorne studies suggested that employees perform better if they receive attention and recognition. As can be understood from the information given, the correct answer is E. All statements related to Hawthorne studies above are correct.

It is generally considered that systematic organizational studies began as an academic discipline, after the Industrial Revolution which took place firstly in Great Britain during the late 1700s and early 1800s. This is the first milestone for OB.
The emergence of scientific management represents the peak of this development, which dates back to the end of 19th century. Frederick Winslow Taylor (1856-1915), who was an engineer and manufacturing manager at a steel company in U.S., is best known for defining scientific management techniques, in other words applying engineering principles to the study of work tasks.
Developing as a myth, in social psychology, which covers industrial and organizational psychology, management theory, industrial sociology; Hawthorne studies led the researchers turn their attention to leadership in organizations, who believed that the productivity could be increased not only by financial rewards but with cooperative behavior of managers and supervisors with employees. This was mainly because that one of the influencing results of the Hawthorne studies suggested that employees perform better if they receive attention and recognition. “Human relations”, defined as “motivating people in organizational settings to develop teamwork that accomplishes the individual, as well as organization’s goal efficiently”
With Hawthorne Studies, an essential part, the effect of employee motivation on organizational performance, was discovered; however there was still something missing to understand the fullpicture. With an emphasis on human side of organizations, human relations view attracted many research; but later important criticisms occurred due to its emphasis on mostly small and informal groups and the relations among the group members. The human relations approach ignored the formal organization and its relation with the environment. In 1960s, a major shift of thinking occurred, which was represented as a new scientific paradigm; this identified a third milestone in the OB history. The development of systems-theory in life-sciences as a multidisciplinary approach affected the way of thinking in organizations.
Systems theory changed the way of thinking in organizational studies; starting from 1960s, research which were undertaken within the framework of contingency theory dominated the organizational behavior field. Contingency theory, which was first termed in 1967 by Lawrence and Lorsch who investigated the effect of uncertainty and variance on organizations; represents an important part of systems approach. Within the scope of contingency theory, organizations are studied as a system. The theory focuses on both the relations of sub-systems of the organization and the relation of these sub-systems with the situations outside the organizations. Contingency theory did not totally remove the assumptions of prior approaches, but it brought a new perspective to them, which were the consideration of environmental factors and the fit of organizational factors with these external factors.
As can be understood from the nformation given, the correct answer is E. All developments given in the answer choices formed the milestones of OB history.

Managing organizational behavior in today’s organizations is especially challenging for organizations which face many outstanding rapid changes in their external environment. These challenges can be grouped into four; which are;

1. increasing globalization
2. need to understand diverse workforce
3. advancing technology
4. managing ethical issues

These challenges should be addressed by organizations with increasing sensitivity for managing their human resources.
Challenge I. Increasing Globalization
Although globalization has many benefits (increase in sales due to activities in countries other than domestic country and reduction of costs, are the most outstanding ones), it also bring along some important risks in terms of OB. First, because the foreign managers might have different views about the organizational purposes and strategies, the coordination of global activities might arouse as a risk and the conflicts might occur due to inadequate communication. In order to manage the risks associated with this, the organizations rotate their managers to other countries in which they have operations; by this way, they can directly gain information about the problems and other necessary issues. These managers called as expatriate managers (also briefly called as ‘expat’), help the organizations to coordinate their activities in foreign countries with respect to organizational procedures and standards. On the other hand, global organizations should also consider the risks of terrorism; environmental disasters, such as hurricanes, earthquakes and other crises. Global organizations might become the targets for terrorist attacks due to their country of origin. The threat of terrorism has an important but negative effect on global operations. It is not only about damaging the foreign organizations’ property which is indicated as a symbol of the organization’s countryof-origin; but there is the threat of kidnapping or murdering organizations’ managers or employees. Furthermore, global organizations are also found to be responsible of environmental destruction (i.e. pollution, global warming). Besides to these, the challenge of managing an increasingly diverse workforce is related to globalization.
Challenge II. Need to Understand Diverse
Globalization created a competitive environment which organizations may respond with new products that meet the changing customer demands. Companies ensure the development of new ideas, through diversity. Diversity of workforce brings different perspectives, due to interaction of different skills, talents and experiences of employees, which is an important driver of creativity leading to innovation. New ideas and products develop as a result of multiple ideas. Being aware of this, organizations handle diversity management as an ongoing activity. On the other hand, a culturally diverse workforce helps organizations to overcome language and cultural barriers. In addition, organizations could also benefit from generational diversity, by creating mentorship and coaching programs for younger generations.
Challenge III. Advancing Technology
By increasing productivity, reducing production costs and prices, and helping to raise real wages, the process of innovation initiated by technological progress can help to transform economies and improve living standards. Recent technologies helped to increase effectiveness by product quality improvement and low-costs, and in addition, creativity and innovation also enhanced effectiveness. In accordance, advances of technology have tremendous effects on organizational behavior. First of all, the technological progress in all fields creates automation at workplace. This implies substantial transformations at workplace and changes for all employees. This means that an important portion of existing jobs would be lost and new jobs would be gained. This requires development of new skills for employees. Because new technology usage brings new skill requirements, continuous training is essential. Since technological change is so rapid, organizations should find ways for their employees to constantly make them learn and adapt these changes.
Challenge IV. Managing Ethical Issues
Ethics is important for OB because it can enhance or reduce the motivation, loyalty and well-being of employees. Concern for ethical issues increased due to major corporate scandals. Ethical norms and standards within the organization specify the actions of organizations for making profits, therefore it is necessary to document these principles as code of ethics. For fulfilling their actions ethically, organizations should establish an ethical code and create a system based on rewards and punishments for the enforcement of their ethical code. Developing ethical codes help organizations to protect their reputations. These codes are important for managers and employees to understand how to behave when faced with ethical issues. However, since the distinction between ethical and unethical behavior is not clear, ethical codes may not be comprehensive, and as a result organizations probably face ethical dilemmas.
As can be understood from the information, the correct answer is E. All of the following answer choices i.e. “increasing globalization”, “need to understand diverse workforce”, “advancing technology” and “managing ethical issues” are the challenges for Organizational Behaviour in changing environment.

Both team and group represent two or more people; whereas, a team is defined as two or more people with shared leadership and fate, who work together and interdependent on each other’s support towards achieving a common goal; therefore, team members are jointly responsible for their outcomes. Representing the team’s common identity, sports teams (i.e. football team) form an example and all the team members are responsible for the championship or bad league performance. The group members do not share characteristics of teams. A group is two or more people who interact with each other to achieve their individual goals which are not mutual goals. The correct answer is Choice C.

Organizational culture is defined as the set of shared beliefs, values, attitudes, norms, goals and practices among the organizational members, so that these shared values and behaviors form a unique psychological and social organizational environment that characterize the organization. The behaviors of organizational members are mainly regulated by the unique environment created by the culture of organization. The correct answer is Choice A.

Imagine that you are the manager of human resource department in an organization, where relationship based conflict occurs frequently. To solve conflict, firstly, at the individual level analysis, you have to explore individual sources of conflict. This road takes you to analyze personalities and perceptions of the conflicting partners. At the group level analysis, you need to analyze communication patterns or look at the way conflicting partners interact. And finally at the organizational level, you need to focus on how people structure their working relations in HR department. The correct answer is Choice B.

The history of OB starts with the most influential Greek philosophers, whose thoughts are still valid for today’s organizations. The roots of OB can be traced back to the writings of Plato who mentioned essence of leadership and specialization, and Aristotle who addressed persuasive communication. During Renaissance time in Italy, Machiavelli, who was considered as the founder of history and political science, discussed power and politics. Later, in 1776, Adam Smith suggested division of labor. The modern history of OB, based on these ancient roots, is also not a new field of study; there had been more than one hundred years of progress about the field. As it will be discussed, the major milestones within the history of OB represent the spirit of its time. It is generally considered that systematic organizational studies began as an academic discipline, after the Industrial Revolution which took place firstly in Great Britain during the late 1700s and early 1800s. This is the first milestone for OB. The correct answer is Choice B.

It is generally considered that systematic organizational studies began as an academic discipline, after the Industrial Revolution which took place firstly in Great Britain during the late 1700s and early 1800s. This is the first milestone for Organizational Behavior. Major transitions in terms of economic and technical conditions occurred with the Industrial Revolution which developed nations to an industrial society from an agricultural society. The transitions were mainly due to the use of steam as a power instead of human or animal power, and the invention and adoption of machines used for production instead of hand-made products. The correct answer is Choice C.

The emergence of scientific management represents the peak of this development, which dates back to the end of 19th century. Frederick Winslow Taylor (1856-1915), who was an engineer and manufacturing manager at a steel company in U.S., is best known for defining scientific management techniques, in other words applying engineering principles to the study of work tasks. But, also with an engineering background, as he applied the scientific principles to human behavior in organizations, emphasizing human productivity and efficiency in work-behavior; Taylor’s work is generally recognized as the beginning of the history of modern organizational behavior. The correct answer is Choice E.

After the First World War, the effect of human and psychological factors became the main focus of organizational studies, which formed the second milestone of OB history. Most of the studies followed the footsteps of Taylor, and focused on efficiency of work activities. During 1925 to 1932, a series of studies known as Hawthorne Studies, conducted at Hawthorne Plant of the Western Electric Company; the studies at first was influenced from the scientific management principles, but developed to be the major research advancement in understanding of human behavior in organizations. The research at the Hawthorne Plant, which consisted of four separate studies that last over a seven-year period was directed by Fritz Roethlisberger; but Elton Mayo was the influential researcher who encouraged the organization’s management to further develop the Hawthorne studies which were preceded by a series of studies focusing on the effect of illumination conducted by himself in Philadelphia textile industry. The correct answer is Choice E.

With an emphasis on human side of organizations, human relations view attracted many research; but later important criticisms occurred due to its emphasis on mostly small and informal groups and the relations among the group members. The human relations approach ignored the formal organization and its relation with the environment. In 1960s, a major shift of thinking occurred, which was represented as a new scientific paradigm; this identified a third milestone in the OB history. The development of systems-theory in life-sciences as a multidisciplinary approach affected the way of thinking in organizations. There exist mainly three stages, defined as input, transformation and output, which each of the stage are affected from each other and by the forces outside the organization. The input stage consists of acquisition of raw materials, machinery and equipment, financial resources and human resources as well. At this stage, recruitment of skilled employees, training them both for work procedures and obtaining the other necessary resources at a reasonable cost and time are the key issues to be considered. After the organization obtain the necessary resources, next at the transformation stage, the inputs are converted to outputs that are finished ready-to-sell products, by using human skills and machinery and equipment. In order to produce the products (either goods or services) which satisfy the customers’ needs, the managers should create the necessary procedures and motivate the employees to behave accordingly to complete their tasks. It is also necessary to develop the skills of the employees, due to the occurrence of changes, such as new technologies, changing customer demands, or regulations. The organization offers its products in its external environment to the customers, as outputs, at the output stage. The correct answer is Choice C.

Systems theory changed the way of thinking in organizational studies; starting from 1960s, research which were undertaken within the framework of contingency theory dominated the organizational behavior field. Contingency theory, which was first termed in 1967 by Lawrence and Lorsch who investigated the effect of uncertainty and variance on organizations; represents an important part of systems approach. Within the scope of contingency theory, organizations are studied as a system. The theory focuses on both the relations of sub-systems of the organization and the relation of these sub-systems with the situations outside the organizations. Contingency theory did not totally remove the assumptions of prior approaches, but it brought a new perspective to them, which were the consideration of environmental factors and the fit of organizational factors with these external factors. The correct answer is Choice is C.

Managing organizational behavior in today’s organizations is especially challenging for organizations which face many outstanding rapid changes in their external environment. These challenges can be grouped into four; which are, (1) increasing globalization, (2) need to understand diverse workforce, (3) advancing technology, and (4) managing ethical issues. These challenges should be addressed by organizations with increasing sensitivity for managing their human resources. The correct answer is Choice E.