Chapter 1 Introducing Organizational Behavior People Make the Difference Copyright © 2014 John Wiley & Sons, Inc.

Chapter Learning Objectives What is organizational behavior and why is it important? How do we learn about organizational behavior? What is the context of organizational behavior? What are the challenges of management in organizations? What are the challenges of leadership in organizations? Copyright © 2014 John Wiley & Sons, Inc.

What is organizational behavior and why is it important? Study of human behavior in organizations. An interdisciplinary field devoted to understanding individual and group behavior, interpersonal processes, and organizational dynamics. Copyright © 2014 John Wiley & Sons, Inc.

What is organizational behavior and why is it important? Importance of Organizational Behavior OB relevance test – fashion forward titles like these: Relationship champion, Logistic ringmaster, Innovation game changer, Collaboration pioneer, Market trends virtuoso Smart workforce – common foundations with similar behaviors drive job titles, such as networking, connecting, collaborating, helping, linking, supporting, seeking and performing. Copyright © 2014 John Wiley & Sons, Inc.

What is organizational behavior and why is it important? Trends with human behavior in organizations Commitment to ethical behavior Broader view of leadership Emphasis on human capital and teamwork Demise of command-and-control Importance of connections and networks Influence of information technology Respect for new workforce expectations Changing concept of careers Concern of sustainability Copyright © 2014 John Wiley & Sons, Inc.

What is organizational behavior and why is it important? What are the scientific foundations of organizational behavior? Interdisciplinary Body of Knowledge Use of Scientific Methods Models – simplified views of reality that attempt to explain real-world phenomena Independent variables – presumed causes that influence dependent variables Dependent variables – outcomes of practical value and interest that are influenced by independent variables Copyright © 2014 John Wiley & Sons, Inc.

Figure 1.1 Common Scientific Research Methods in Organizational Behavior Copyright © 2014 John Wiley & Sons, Inc.

What is organizational behavior and why is it important? Scientific thinking is important to OB: The process of data collection is controlled and systematic. Proposed explanations are carefully tested. Only explanations that can be rigorously verified are accepted. Copyright © 2014 John Wiley & Sons, Inc.

What is organizational behavior and why is it important? Contingency thinking Seeks ways to meet the needs of different management situations. Recognizes responses to solutions must be crafted to best fit the circumstances and people involved. Copyright © 2014 John Wiley & Sons, Inc.

What is organizational behavior and why is it important? Evidenced-based management Uses hard facts and empirical evidence to make decisions. Evidence-based thinking manifests itself through a contingency approach which researchers identify how different situations can best be understood and handled. Copyright © 2014 John Wiley & Sons, Inc.

What is organizational behavior and why is it important? Cross-Cultural Awareness Understanding from managers, employees to government leaders and true understanding of how OB theories and concepts apply in different countries Copyright © 2014 John Wiley & Sons, Inc.

How do we learn about organizational behavior? Learning – an enduring change of behavior that results from experience Lifelong learning – involves learning continuously from day-today experiences Copyright © 2014 John Wiley & Sons, Inc.

Figure 1.2 Organizations as Open Systems Interacting With Their Environments Copyright © 2014 John Wiley & Sons, Inc.

How do we learn about organizational behavior? Get to Know Yourself Better Take assessment 5, personal values, in the OB skills workbook What did you learn about your values? Are they balanced? Do the results suggest how you would react in situations of ethics? Copyright © 2014 John Wiley & Sons, Inc.

How do we learn about organizational behavior? Organizations and the External Environment Organizations are collections of people working together to achieve a common purpose. Open systems transform human and material resource inputs into finished goods and services. Complex adaptive systems interact and adapt with their environments to survive. Copyright © 2014 John Wiley & Sons, Inc.

Figure 1.3 The Management Process of Planning, Organizing, Leading, and Controlling Copyright © 2014 John Wiley & Sons, Inc.

How do we learn about organizational behavior? Stakeholders People, groups, and institutions that are affected by and thus have an interest or “stake” in an organization’s performance. Copyright © 2014 John Wiley & Sons, Inc.

How do we learn about organizational behavior? Internal Environment of Organizations Organizational culture is a shared set of beliefs and values within an organization. Organizational climate represents shared perceptions of members regarding what the organization is like in terms of management policies and practices. Copyright © 2014 John Wiley & Sons, Inc.

How do we learn about organizational behavior? Workforce diversity Presence of Individual differences based on gender, race and ethnicity, age, able-bodiedness, and sexual orientation. Copyright © 2014 John Wiley & Sons, Inc.

How do we learn about organizational behavior? Multiculturalism refers to pluralism and respect for diversity in the workplace. Inclusion the degree to which an organization's culture respects and values diversity. Copyright © 2014 John Wiley & Sons, Inc.

What is the context of organizational behavior? Manager someone whose job it is to directly support the work efforts of others. Effective manager helps others achieve high levels of both performance and satisfactions. Copyright © 2014 John Wiley & Sons, Inc.

What is the context of organizational behavior? Task performance quality and quantity of the work produced or the services provided by an individual, team, or work unit, or organization as a whole. Job satisfaction indicates how people feel about their work and the work setting. Copyright © 2014 John Wiley & Sons, Inc.

What are the challenges of management in organizations? The management process. Planning Organizing Leading Controlling Copyright © 2014 John Wiley & Sons, Inc.

Figure 1.4 The management process Copyright © 2014 John Wiley & Sons, Inc.

Figure 1.5 Mintzberg’s 10 roles of effective managers Copyright © 2010 John Wiley & Sons, Inc.

What are the challenges of management in organizations? Managerial skills and competencies Skill an ability to translate knowledge into action that results in a desired performance. Copyright © 2014 John Wiley & Sons, Inc.

What are the challenges of management in organizations? Technical skill Ability to perform specialized tasks. Human skill Ability to work well with other people. Copyright © 2014 John Wiley & Sons, Inc.

What are the challenges of management in organizations? Emotional intelligence Ability to understand and manage emotions both personally and in relationships with others. Self-awareness Self-regulation Motivation Empathy Social skill Copyright © 2014 John Wiley & Sons, Inc.

What are the challenges of management in organizations? Ethical Management – includes ethics in decision-making. Immoral manager Amoral manager Moral manager Practices ethics mindfulness. Copyright © 2014 John Wiley & Sons, Inc.

Figure 1.6 Moral Leadership, ethics mindfulness, and the virtuous shift Copyright © 2014 John Wiley & Sons, Inc.

What are the challenges in leadership in organizations? Effective Leaders are individuals who use influence to create change that benefits the mission and vision of the organization. Figure 1.7 Copyright © 2014 John Wiley & Sons, Inc.

What are the challenges in leadership in organizations? Leadership Process involves individuals (followers) being influenced by others (leaders). Copyright © 2014 John Wiley & Sons, Inc.

What are the challenges in leadership in organizations? Essential Leadership Skills Framing means tailoring communication in ways to encourage certain interpretations and discourage others. Social Exchange means that people build human relationships and trust through exchanges of favors based on reciprocity. Law of reciprocity says that if someone does something for someone else it will involve a sense of obligation to return the favor. Copyright © 2014 John Wiley & Sons, Inc.

What are the challenges in leadership in organizations? Essential Followership Skills Upward Delegation means passing problems or responsibilities upward in the hierarchy. Copyright © 2014 John Wiley & Sons, Inc.