Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 Organizational Behavior: Foundations, Realities, & Challenges Nelson & Quick, 5 th edition Organizational Behavior and Opportunity

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Clockworks or Snake pit? Human Behavior in Organizations

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Organizational Behavior The study of individual behavior and group dynamics in organizations

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Psychosocial BehavioralInterpersonal Organizational Behavior: Dynamics in Organizations Organizational Behavior

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Organizational Design Jobs Work Design Performance Appraisal Organizational Structure Organizational Variables that Affect Human Behavior Communication Human Behavior

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved External Perspective Understand behavior in terms of external events, environmental forces, and behavioral consequences Explain behavior by examining surrounding external events and environmental forces Internal Perspective Understand behavior in terms of thoughts, feelings, past experiences, and needs Explain behavior by examining individuals’ history and personal value system Each perspective has produced motivational & leadership theories.

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Psychology the science of human behavior Management the study of overseeing activities and supervising people in organizations Anthropology the science of the learned behavior of human beings Medicine the applied science of healing or treatment of diseases to enhance an individual’s health and well-being Engineering the applied science of energy & matter Sociology the science of society Interdisciplinary Influences on Organizational Behavior

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Reactions to Change Rigid and Reactive Open and Responsive

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Components of an Organization Task – an organization’s mission, purpose, or goal for existing People – the human resources of the organization Structure – the manner in which an organization’s work is designed at the micro level; how departments, divisions, and the overall organization are designed at the macro level Technology – the tools, knowledge, and/or techniques used to transform inputs into outputs

Open Systems View of Organization Outputs: Products Services Inputs: Material Capital Human Task environment: Competitors Unions Regulatory agencies Clients Organizational Boundary Based on Harold Levitt, “Applied Organizational Change in Industry: Structural, Technological, and Humanistic Approaches,” in J.G. March (ed.), Handbook of Organizations, Rand McNally, Chicago, 1965, p Reprinted by permission of James G. March People (Actors) Structure Task Technology Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Formal vs. Informal Organization Formal Organization – the official, legitimate, and most visible part of the system Informal Organization – the unofficial and less visible part of the system Hawthorne Studies: studies conducted during the 1920’s and 1930’s that discovered the existence of the informal organization

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Formal & Informal Elements of Organizations Formal organization (overt) Goals and objectives Policies and procedures Job descriptions Financial resources Authority structure Communication channels Products and services Social Surface Informal organization (covert) Beliefs and assumptions Perceptions and attitudes Values Feelings, such as fear, joy anger, trust, and hope Group norms Informal leaders

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved U.S. Gross Domestic Product Total $10.9 Trillion

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Six Focus Organizations Cisco Systems The Coca-Cola Company Pixar Animation Studios Virgin Group Ltd. Whole Foods Market, Inc Canine Companion for Independence

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Global Competition in Business Four challenges to managers relating to change in organizations Globalization Technological Innovation Workplace Diversity Ethics and Character

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Quality A cultural value embedded in successful organizations A potential means for giving organizations in viable industries a competitive edge in international competition A rubric for products and services that are of high status A customer-oriented philosophy of management with implications for all aspects of organizational behavior

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Three key questions in evaluating quality-improvement ideas 1. Does the idea improve customer response? 2. Does the idea accelerate results? 3. Does the idea raise the effectiveness of resources?

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Six Sigma A high-performance system to execute business strategy that is customer- driven, emphasizes quantitative decision making, and places a priority on saving money

Contrasting Six Sigma and Total Quality Management Six Sigma TQM Executive ownership Business strategy execution system Truly cross-functional Focused training with verifiable return on investment Business results oriented Self-directed work teams Quality initiative Largely within a single function No mass training in statistics and quality return on investment Quality oriented Source: Matt Barney. “Motorola’s Second Generation.” Six Sigma Forum Magazine (May 2002), 13. Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Seven Categories in the Malcolm Baldrige National Quality Award Examination Leadership Information and analysis Strategic quality planning Human resource utilization Quality assurance of products and services Quality results Customer satisfaction

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Challenges to Managing Organizational Behavior 1.Increasing globalization of organizations’ operating territory 2.Increasing diversity of organizational workforces 3.Continuing technological innovation with its companion need for skill enhancement 4.Continuing demand for higher levels of moral and ethical behavior at work

Learning about Organizational Behavior Learning Activity Development of specific skills and abilities Mastery of basic objective knowledge Application of knowledge and skills Science The Real World You Theories, Research, Articles Organizational and Work Context Exercises, Questionnaires Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved

Learning from Structured Activity Conclusions based on the systematic review (e.g., the group did better) New or modified knowledge or skills (e.g., consensus group decisions are better) Systematic review of the structured activity (e.g., compare individual & group results) Individual or group structured activity (e.g., group decision activity) Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Three Assumptions Required for Learning from Structured Activity Each student must accept responsibility for his/her own behavior, actions, and learning Each student must actively participate in the individual/group structured learning activity Each student must be open to new information, new skills, new ideas, and experimentation

Trends Affecting Managers Industrial restructuring Increased amount and availability of information Need to attract and retain the best employees Need to understand human and cultural differences Rapid shortening of response times in all aspects of business TRUSTTRUST SECURITYSECURITY KNOWLEDGEKNOWLEDGE Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved

Watchwords for Organizations in These Changing Times Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved