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Chapter 1 Introduction to Organizational Behavior

Chapter 1 Introduction to Organizational Behavior. Organizations as Open Systems. The Organization’s Environment. Outputs (goods and services). Inputs (raw materials). Processes (how things are done). $. $. $. $. $. Open Systems Approach.

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Chapter 1 Introduction to Organizational Behavior

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  1. Chapter 1Introduction to Organizational Behavior

  2. Organizations as Open Systems The Organization’s Environment Outputs (goods and services) Inputs (raw materials) Processes (how things are done) $ $ $ $ $

  3. Open Systems Approach • Allorganizations are systems“competing” for success/survival. • The parts are all interrelated (synergistically). • They constantly interact with environment. • All organizations have access to same/similar inputs and outputs (so why do some prosper and others struggle?)

  4. The Open Systems Approach • Success is a function of competition and results can range from: • Extinction (demise) • Subsistence • Prosperity • Enduring prosperity • Some companies find a competitive edge(CE): • CE is almost always short term(because _____________?) • But sometimes a CEcan be enduring: • _________________________ • _________________________ • _________________________ • _________________________

  5. Behind the Scenes at SWA • No trade or business process secrets • No proprietary technologies • Highly competitive, no-frills “commodity” • Same capitalized infrastructure as other firms • BUT, highly productive, very motivated (and 87% unionized) workforce:

  6. Company Cultures and SustainableCE • People differ from all other inputs (“resources”) because: (a) (b) • How people are managed (via company culture) and its effect on employee behavior, is often viewed as “soft” side of business (it’s invisible, fuzzy, easily dismissed) • Enacted Culture is the overall “system of management practices,” a comprehensive philosophy, not just a few techniques or management fads

  7. Elements in a “System of Management Practices” Signaling Culture-based SCE Does the firm have a genuinely Enacted culture as its basis for a Sustainable Competitive Edge? • Employment security • Selective recruiting and hiring • LR view of training and skill development • Cross-training and cross-utilization of employees • Promotion and advancements from within • Information sharing • Genuine participation and empowerment • Self-directed teams • Appropriate levels of wage parity • Above average wages • Incentive pay (shared prosperity) • Employee ownership • Both symbolic and meaningful egalitarianism (Remember: Talk is cheap!)

  8. Why study org. behavior? • Organizations surround us everywhere • Organizational life is inevitable • Our work is carried out through them • They develop their own identities • They control many very important outcomes • OK. So, what is OB??

  9. What is org. behavior? • Organizational Behavior: • systematic study of the actions and attitudes that people exhibit within organizations • Systematic Study: • more rigorous than “common sense” or intuition • relies on scientific process and research methods • methodical studies/experiments • valid and reliable measurement • logical and rationally supported conclusions • repeatable and generalizable conclusions

  10. What are the goals of OB? OB strives to . . . • Explain • Predict • Control . . . human behavior

  11. The Levels of Analysis for OB Organization System Level Group Level Individual Level

  12. History of Mgmt. Ideas • Classical View • Scientific Management • Administrative Science • Humanistic View • The Hawthorne Studies • Human Relations Movement • Current Approaches • Contingency view • Open Systems model

  13. Psychology (Social and I/O) Sociology OB and Related Social Sciences Political Science Anthropology

  14. OB and Related Mgmt. Fields Organization Theory Human Resource Mgmt. Strategic Management

  15. Today’s OB Challenges and Opportunities Workforce Diversity Responding to Globalization Improving Quality and Productivity Improving Customer Service

  16. Today’s OB Challenges and Opportunities (cont.) Stimulating Innovation and Change Improving People Skills Coping with “Temporariness” Helping Balance Work-Life Conflicts

  17. Today’s OB Challenges and Opportunities (cont.) Declining Workforce Loyalty Improving Ethical Behavior

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