MBA 552 Organizational Behavior and Leadership
Organizational behavior (OB) The study of what people think, feel, and do in and around organizations.
Values Stable, long-lasting beliefs about what is important in a variety of situations
What are Organizations? Groups of people who work interdependently toward some purpose • Structured patterns of interaction • Coordinated tasks • Work toward some purpose © N. B. Scott
Why Study Organizational Behavior Understand organizational events Organizational Behavior Research Predict organizational events Influence organizational events
Organizational culture The basic pattern of shared assumptions, values, and beliefs governing the way employees within an organization think about and act on problems and opportunities
Trends: Information Technology • Affects how employees interact • Virtual teams • Telecommuting • Affects how organizations are configured • Network structures -- alliance of several organizations
Trends: Globalization • Global companies: • Extend their activities to other parts of the world • actively participate in other markets • compete against firms in other countries
Trends: Globalization • Implications of globalization: • New organizational structures • Different forms of communication • More competition, change, mergers, downsizing, stress • Need more sensitivity to cultural differences
Network structure An alliance of several organizations for the purpose of creating a product or serving a client
Virtual teams Cross-functional groups that operate across space, time, and organizational boundaries with members who communicate mainly through information technologies
Contingent work Any job in which the individual does not have an explicit or implicit contract for long-term employment, or one in which the minimum hours of work can vary in a nonsystematic way.
Trends: Employment Relationship • Employability • employees perform many tasks, not a specific job • Contingent work • no explicit or implicit contract for long-term employment • Telecommuting • working from home, usually with a computer connection to the office • Virtual teams • operate across space, time, and organizational boundaries; mainly communicate through electronic technologies
Trends: Changing Workforce • Primary and secondary diversity • More women in workforce and professions • Different needs of Gen-X, Gen-Y, and baby-boomers • Diversity has advantages, but firms need to adjust through: • cultural awareness • family-friendly • empowerment
Primary Dimensions of Diversity • Ethnicity • Race • Mental/Physical Qualities • Age • Gender • Sexual Orientation
First Language Life Experiences Geographic Location Behavioral Style Education Income Work Experience Work Style Parental Status Marital Status Occupation Religion Secondary Dimensions of Diversity
More women in workforce and professions Women represent 50% of the paid workforce. Women represent 50% of professional accountants Women represent 43% of medical school enrollment Women represent 4% of the leadership of corporations
Different needs of Gen-X, Gen-Y, and baby-boomers Baby-boomers born 1946-1964 desire job security and are workaholics Gen-X born 1964-1977 less loyal seek and expect less security Gen-Y born 1978 – 88? Expect plenty of responsibility and involvement in the employment relationship. Different generations bring different values and expectations
Trends: Values and Ethics • Values • Stable, long-lasting beliefs about what is important • personal, cultural, organizational, professional • Importance of values • Globalization -- more awareness of different values • Values replacing command-and-control • More emphasis on ethical business conduct • Ethics • Moral principles/values -- determines whether actions are right/wrong and outcomes are good/bad
Organizational Behavior Anchors Multidisciplinary anchor Organizational Behavior Anchors Open systems anchor Systematic research anchor Multiple levels of analysis anchor Contingency anchor
Multidisciplinary Anchor Psychology – Motivation, perception, attitudes, personality, job stress, leadership Sociology- Team Dynamics, roles, socialization, communication patterns, organizational power Anthropology- Corporate culture, organizational rituals, cross-cultural dynamics Political Science- Inter-group conflict, coalition formation, power and politics, decision-making Economics- Decision-making, negotiation, power
Multidisciplinary Anchor Industrial engineering- job design, productivity, work measurement Communications- Knowledge management, electronic mail, corporate culture, employee socialization Information systems- Team dynamics, decision-making, knowledge management Marketing- Knowledge management, creativity, decision-making Women’s studies- Organizational power, perceptions
Systematic Research Anchor Systematic collection of data about organizational principles and practices
Scientific method A systematic, controlled, empirical, and critical investigation of hypothetical propositions about the presumed relationships among natural phenomena
Contingency Anchor It depends ------ on the situation Selection of the best strategy depends on the conditions under which a decision must be made.
Contingency approach The idea that a particular action may have different consequences in different situations
Multiple Levels of Analysis Anchor Individual Level - includes the characteristics and behaviors of employees including thought processes such as motivation, perception, personalities, attitudes, and values.
Multiple Levels of Analysis Anchor Team Level – considers interaction of people, teams dynamics, decisions, power, organizational politics, conflict, and leadership. Organizational Level- focuses on how people structure working relationships and how organizations interact with their environment
Open Systems Anchor Organizations that take their sustenance from the environment and, in turn, affect that environment through their output
Feedback Feedback Subsystem Subsystem Subsystem Subsystem Open Systems Anchor of OB Inputs Outputs Organization
Stakeholders Shareholders, customers, suppliers, governments, and any other groups with a vested interest in the organization. They influence the firm’s access to inputs and ability to discharge outputs.
Knowledge Management Defined Any structured activity that improves an organization’s capacity to acquire, share, and use knowledge for its survival and success
Intellectual capital The sum of an organization’s human capital, structural capital, and relationship capital
Intellectual Capital • Human capital • Knowledge that employees possessand generate • Structural capital • Knowledge captured in systems and structures • Relationship capital • Value derived from satisfied customers, reliable suppliers, and others
Knowledge Management Processes • Knowledge acquisition • Grafting • Learning • Experimentation • Knowledge sharing • Communication • Communities of practice • Knowledge use • Awareness • Freedom to apply knowledge
Grafting The process of acquiring knowledge by hiring individuals or buying entire companies
Organizational Memory • The storage and preservation of intellectual capital • Retain intellectual capital by: • Keeping knowledgeable employees • Transferring knowledge to others • Transferring human capital to structural capital
Fully describe intellectual capital, and explain how an organization can retain this capital Intellectual capital is the sum of an organization's human capital, organizational capital, and relationship capital. Human capital refers to the knowledge that employees possess and generate. Structural capital is the knowledge captured and retained in an organization's systems and structures. Relationship capital is the value derived from satisfied customers, reliable suppliers, and other external sources that provide added value.
Intellectual capital retention continued Retaining intellectual capital refers to retaining organizational memory. This includes keeping good employees and systematically transferring their human capital into structural capital when they must leave. It also includes documentation -- bringing out hidden knowledge, organizing it, and putting it in a form that can be available to others. It also includes embedding knowledge in the organization’s systems and structures.
Communities of practice: Informal groups bound together by shared expertise and passion for a particular activity or interest.
Organization Culture • Defining culture • Does it matter? • Describing culture • Acquiring culture • Changing culture
Defining Culture • What is it? • “...the shared patterns of thought, belief, feelings, and values that result from shared experience and common learning” • “system of shared meaning” • “The social glue that holds the organization together” • Characteristics: • Holistic • Historically determined • Socially constructed (perceptions) • Soft • Difficult to change
Climate vs. Culture • Climate = actual events • Culture = individuals’ perception of events
Does It Matter? • Enhances group members’ ability to adapt and survive • Reduces uncertainty about what to do and how to do it (and thus, reduces anxiety) • Provides sense of mission • Strong or widely-held culture may lead to high performance (jury’s out on this one)
Single or Multiple Cultures ? • Multiple cultures may be a sign of conflict • Mergers • Top-down attempts to “manage” culture • Subcultures (core culture + adaptations) • Countercultures
What is Included? • Common language and conceptual categories • Group boundaries and criteria for inclusion and exclusion • Power and status • Intimacy, friendship, and love • Rewards and punishments: what is rewarded and punished, as well as what rewards and punishments are • Ideology and “religion”: that is, how to manage the unmanageable and explain the unexplainable
Events: Rites Ceremonials Rituals Communications Myths Sagas Legends Stories Folktales Things Symbols Language Gestures Physical setting Artifacts Really minor distinctions among these Recognizing Culture
Rituals Heroes Values Layers of Culture Symbols Practices
Cultural Dimensions (Hofstede) • Process vs. results • Employee vs. job • Parochial vs. professional • Open vs. closed • Loose vs. tight • Normative vs. pragmatic