1 Introduction to Organizational Behavior

1. 1 Introduction to Organizational Behavior

2. Learning Objectives • Define organizational behavior and explain how and why it determines the effectiveness of an organization • Appreciate why the study of organizational behavior improves a person’s ability to understand and respond to events that take place in a work setting • Differentiate among the three levels at which organizational behavior is examined

3. Learning Objectives • Appreciate the way changes in an organization’s external environment continually create challenges for organizational behavior • Describe the four main kinds of forces in the environment that post the most opportunities and problems for organizations today

4. Management at Amazon.com • Rapid growth created need to motivate and coordinate employees to meet company goals • Bezos emphasized • decentralized authority, • employee empowerment, • employee well-being, • leadership

5. What Is an Organization? An organization is a collection of people who work together and coordinate their actions to achieve a wide variety of goals

6. What Is Organizational Behavior? Organizational behavior (OB) is the study of factors that have an impact on how people and groups act, think, feel, and respond to work and organizations, and how organizations respond to their environments

7. Exhibit 1.1 What Is Organizational Behavior? Insert Exhibit 1.1 here

8. Exhibit 1.2 Levels of Analysis Organizational Level Group Level Individual Level

9. Exhibit 1.3 Components of Organizational Behavior

10. Why Study OB? • To understand behavior in organizations • To learn to use and apply concepts, theories, and techniques to improve, enhance, or change behavior • To enable managers to direct and supervise the activities of employees

11. What Is Management? Management is the process of planning, organizing, leading, and controlling an organization’s human, financial, material, and other resources to increase its effectiveness

12. Exhibit 1.4 Four Functions of Management Planning Decide on organizational goals and allocate and use resources to achieve those goals Organizing Establish the rules and reporting relationships that allow people to achieve organizational goals Controlling Evaluate how well the organization is achieving goals and take action to maintain, improve, and correct performance Leading Encourage and coordinate individuals and groups so that they work toward organizational goals

13. OB Today: Dick’s Drive-In

14. Figurehead Liaison Disseminator Entrepreneur Resource allocator Leader Monitor Spokesperson Disturbance handler Negotiator Managerial Roles

15. Managerial Skills Conceptual Skills Technical Skills Human Skills

16. Exhibit 1.6 An Open Systems View of Organizational Behavior

17. Challenges for OB • 1: Changing Social/Cultural Environment • 2: Evolving Global Environment • 3: Advancing Information Technology • 4: Shifting Work/Employment Relationships

18. Changing Social and Cultural Environment • National culture • Organizational ethics and well-being • Diverse work force

19. Diversity Challenges • Fairness and Justice • Decision Making and Performance • Flexibility

20. Exhibit 1.7 Challenges Created by Diverse Workforces

21. Evolving Global Environment • Understanding Global Differences • Global Learning • Global Crisis Management

22. Crisis Management Decisions • Creating teams to facilitate rapid decision making and communication • Establishing the organizational chain of command and reporting relationships necessary to mobilize a fast response • Recruiting and selecting the right people to lead and work in such teams • Developing bargaining and negotiating strategies to manage conflicts that arise whenever people and groups have different interests and objectives

23. Information Knowledge Information Technology Organizational Learning Creativity Innovation Advancing Information Technology

24. Shifting Work/Employment Relationships • Downsizing • Empowerment and Self-Managed Teams • Contingent Workers • Outsourcing

25. Appendix 1A: A Short History of Organizational Behavior • F.W. Taylor and Scientific Management • Mary Parker Follett • Hawthorne Studies • Theory X and Y

26. F.W. Taylor and Scientific Management • Scientific management is the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency • The amount of and effort each employee expends to produce a unit of output can be reduced by increasing specialization and the division of labor

27. Four Principles of Scientific Management • 1. Study the way employees perform their tasks, gather informal job knowledge that employees possess, and experiment with ways of improving the way tasks are performed • 2. Codify the new methods of performing tasks into written rules and standard operating procedures

28. Four Principles of Scientific Management_2 • 3. Carefully select employees so that they possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures • 4. Establish an acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level

29. Mary Parker Follett • Management must consider the human side • Employees should be involved in job analysis • Person with the knowledge should be in control of the work process regardless of position • Cross-functioning teams used to accomplish projects

30. The Hawthorne Studies • Hawthorne Works of the Western Electric Company; 1924-1932 • Initiated as an attempt to investigate how characteristics of the work setting affect employee fatigue and performance (i.e., lighting) • Found that productivity increased regardless of whether illumination was raised or lowered

31. The Hawthorne Studies_2 • Factors influencing behavior: • Attention from researchers • Manager’s leadership approach • Work group norms • The “Hawthorne Effect”

32. Theory X Average employee is lazy, dislikes work, and will try to do as little as possible Manager’s task is to supervise closely and control employees through reward and punishment Theory Y Employees will do what is good for the organization when committed Managers must create setting to encourage commitment to goals and provide opportunities for initiative Douglas McGregor: Theory X and Theory Y