Building a conceptual argument: does OB matter? Resource-based view : what makes resources valuable? What makes them capable of creating long-term profits for the firm? A resource is more valuable when it is rare . Good people are rare. Resources are also more valuable when they are inimitable . -History – is irreplaceable-Numerous Small Decisions-cannot be copied, whereas big (public ones) can be-Socially Complex Resources – like culture, teamwork, trust and reputation Better OB practices are associated with better firm performance. Why companies don’t focus on it? No OB magic bullet that in itself increases profitability, rather effective management of OB requires a belief that several different practices are important, along with a long-term commitment to improving those practices. Rule of One Eighth – At best 1/8 or 12% of organizations will actually do what is required to build profits by putting people first Scientific Method: theory, hypotheses, data, verification. Meta-analysis: takes all of the correlations found in studies of a particular relationship and calculates a weighted average. Read and re-read the takeaways at the end of each chapter to study for tests