BUS272 TB

Chapter 1 What Is Organizational Behaviour? 3
ancouver-based Lululemon Athletica is
V
known for its fashionable yoga wear, as
well as its promotion of yoga. 1 Founded in
1998 by Chip Wilson, the company has
grown rapidly, although not without some stumbles.
The company originally manufactured all of its
clothing in Canada, but by 2007 only 50 percent
of its factories were in Canada, and by 2014 only
3 percent of its factories were in Canada. By locating
so much of its manufacturing in other countries,
Lululemon no longer has complete control over
the production of its clothing. This became
embarrassingly clear when black yoga
pants had to be pulled off the
shelves in 2012 because they
were too sheer to be worn.
Christine Day, the former CEO,
said at the time that Lululemon had given too much control over production
to its overseas partners rather than staying personally involved. “If there were 10
technical specs,” she said, “we were probably controlling four. Every single factory has
all the same patterns now.”
Lululemon has acquired cult-brand status, with sales of $1.37 billion in 2012. Wilson
no longer heads the company, although he worries that the board of directors has lost sight
of what Lululemon is about. He also believes the board is focused on short-term goals, to
the detriment of the overall vision of the company.
The challenges that organizations such as Lululemon face illustrate several concepts
you will find as you study the field of organizational behaviour. Let’s take a look, then, at
what organizational behaviour is.
THE BIG IDEA
OB helps managers
and employees
make sense of the
workplace and also
applies to work in
groups of all kinds.
THE CANADIAN PRESS/Jonathan Hayward
OB IS FOR EVERYONE
• Why do some people do well in organizational settings while others
have difficulty?
• Do you know what a “typical” organization looks like?
• Does job satisfaction really make a difference?
• What people-related challenges have you noticed in the workplace?
• Why should you care about understanding other people?
• Are you ready to take on more responsibility at work?