1.3 The Historical Foundations of Organizational Behavior

In order to fully understand organizational behavior and utilize its teachings in your education and future career, it is important to understand the constantly evolving nature of the workplace. Before the industrial revolution of the mid-1700s, daily activity was much different than it is today. With the emergence of centralized factories, work became something one did under strict instructions from a manager; it also became much more hierarchical, bringing prestige and power to a few. Changes in the workplace brought about changes in many organizations. Unionism arose due to conflicts between assemblers and managers; after complaints and massive uprisings, governments became more active in protecting workers’ rights. The industrial revolution transformed our ideas about organizations and the roles that organizations have in our lives.

The latter part of the 20th century saw the emergence of an equally profound revolution in the workplace. Jobs that were once abundant became scarce as manufacturing was outsourced to other countries. Today, most new job opportunities in the United States and Europe are in the service industries and require specialized training. Furthermore, today’s jobs often offer much less security when compared to the jobs of the past. This, combined with increased competition and the short-term focus of organizations, has led many individuals to change employers more frequently than in the past.

These changes are partially due to the globalization of the world economy. Globalization has occurred due to the reduction of political trade barriers, more efficient transportation, and remarkable advancements in technology. The globalization of the economy has also led to a diversification of the typical employee as people often move across states and even countries for employment. Today's job applicants are more diverse in their education, work and life experience, ethnicity, age, and lifestyle than applicants in the past.

What is particularly interesting about the changing workplace is the evolution of the meaning of work. In the past, work was physical in nature and often seen as a noble endeavor. However, for many of us, our attitudes toward work have changed. Whereas a steady job still brings status, pride, dignity, and self-definition, unemployment can result in depression, anxiety, and lowered self-esteem. Today many more people view work as an unpleasant and undervalued activity that economic necessity demands they perform.

The above types of workplace changes are more sudden and more far-reaching than most of us probably realize. These changes offer both opportunities and challenges to those who study and participate in organizational behavior. To understand these changes through the lens of organizational behavior, it is important to understand the early research that developed before these changes took place. It is upon this historical foundation that OB researchers are able to understand the complex changes occurring in organizations today.