Principles of Organizational Behavior, 3rd Edition

Introduction¹

This handbook is about management principles; each chapter is written by an expert in the field – but why do we need principles?

To quote Ayn Rand (1982, p. 5):

… abstract ideas are conceptual integrations which subsume an incalculable number of concretes – and without abstract ideas you would not be able to deal with concrete, particular, real-life problems. You would be in the position of a newborn infant, to whom every object is a unique, unprecedented phenomenon. The difference between his mental state and yours lies in the number of conceptual integrations your mind has performed.

You have no choice about the necessity to integrate your observations, your experiences, your knowledge into abstract principles.

What, then, is a principle? A “principle” is a general truth on which other truths depend. Every science and every field of thought involves the discovery and application of principles. A principle may be described as a fundamental reached by induction (Peikoff, 1982, p. 218).

Everyday examples of principles that we use (or should use) in everyday life are:

“Be honest” (a moral principle)

“Eat plenty of fruits and vegetables” (a nutrition principle)

“Exercise regularly” (a health principle)

“Save for the future” (a personal finance principle)

“Do a conscientious job” (a work or career principle)

“Do not drive under the influence of alcohol or text while driving” (personal safety principles)

It would be literally impossible to survive for long if one ...