University of Melbourne · S1 2026 · FACULTY OF BUSINESS & ECONOMICS

MGMT20001 · Organisational Behaviour

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Chapter 1 of 11 · MGMT20001

Introduction to OB

Organisational behaviour (OB) is the systematic study of how people think, feel and act in and around organisations — and MGMT20001 sorts the whole field along one spine. A micro half studies individuals and groups (perception, values, motivation, teams, conflict); a macro half studies the organisation as a whole and its environment (ethics, change, culture, communication, power). The same split maps onto the three classic levels of analysis — individual, group, organisation. The unit’s founding claim is that systematic evidence beats ‘common sense’: OB borrows from psychology, sociology, anthropology, political science and economics, takes a contingency (‘it depends’) stance, and learns by the case method. Get the micro/macro split straight and the entire syllabus has a shape.

In this chapter

What this chapter covers

  • 01What OB is — the systematic study of people in organisations
  • 02The micro vs macro lens (the unit's organising spine)
  • 03Three levels of analysis: individual / group / organisation
  • 04Where management knowledge comes from — the multidisciplinary roots
  • 05Evidence-based management & 'is management still a science?' (Freedman 1992)
  • 06The myths-vs-evidence diagnostic & the case-method answer spine
Worked example · free

Worked example: place the scenario — which lens, which level?

Q [4 marks]. A manager notices two problems on the same team: one employee keeps misreading a colleague's intentions and reacting badly, and separately the team as a whole has stalled, bickering over who does what. For each problem, name the lens (micro or macro) and the level of analysis, and say why OB would not answer with ‘just common sense’.
  • +1Problem 1 — classify: one person misreading another is a perception/attribution issue — micro lens, individual level.
  • +1Problem 2 — classify: a team stalling and arguing over roles is team dynamics / conflictmicro lens, group level (a process, not personality, problem).
  • +1Declare the lens, then the level: opening an OB answer by naming lens + level signals you know the field's structure and frames the rest of the answer.
  • +1Why not common sense: the evidence-based stance replaces intuition with systematic findings — e.g. the storming/role conflict is normal team development, not a sign the team is broken.
Problem 1 = micro / individual (perception & attribution); Problem 2 = micro / group (team development & conflict). Both are read through systematic OB theory, not folk wisdom — declaring the lens and level first is the move the unit rewards.
Glossary

Key terms

Organisational behaviour (OB)
The systematic study of how people think, feel and act in and around organisations, at the individual, group and organisational levels, in order to improve organisational effectiveness.
Micro vs macro
The unit's organising spine: micro OB studies individuals and groups (Modules 1–7); macro OB studies the organisation as a whole and its environment (Modules 8–12).
Levels of analysis
The three lenses OB problems sit at — individual, group, and organisation — mapping almost exactly onto the micro/macro split.
Evidence-based management
Replacing gut feel and 'common sense' with systematic study, while accepting the social world is messier than physics. Freedman (1992) frames the question 'is management still a science?'
Contingency ('it depends')
Because OB borrows from many disciplines that disagree, there is rarely one best answer — the right move usually depends on the situation.
FAQ

Introduction to OB FAQ

What does 'micro vs macro' mean in MGMT20001?

Micro OB studies the processes affecting individuals and groups — perception, values, motivation, teams, conflict (Modules 1–7). Macro OB zooms out to the organisation as a whole and its environment — ethics, change, culture, communication, power (Modules 8–12). The split maps onto the three levels of analysis: individual, group, organisation.

Why does OB insist on 'evidence over common sense'?

Because much of what we 'know' about managing people is folk wisdom the evidence overturns — e.g. a bonus reliably lifts productivity, job satisfaction strongly drives performance, all conflict hurts a team. The Week-1 myths-vs-evidence quiz plants exactly these so later modules can bust them.

What are the multidisciplinary roots of OB?

OB is a borrowing field: psychology (the individual), social psychology (influence, attitudes), sociology (groups, structure, culture, power), anthropology (shared meaning), political science (power, politics) and economics (incentives). Because the sources disagree, the unit takes a contingency stance.

How does the unit teach — and how should I answer?

By the case method: every module pairs theory with a real case (Theranos, Boost Juice, CBA, Uber, Musk). The answer spine the unit rewards is define + link to theory → apply with case evidence → recommend.

Study strategy

Exam move

Make the micro/macro map the first thing you can draw from memory — it gives the whole syllabus a shape and lets you place any topic instantly. Practise the opening move on every OB question: declare the lens (micro/macro) and the level (individual/group/organisation) before you answer. Keep a running list of the Week-1 'common-sense' myths and the evidence that overturns each — the exam loves a stem that sounds obviously true. And rehearse the define → apply → recommend spine here, because every later case answer reuses it.

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