Chapter 1 Organizational Behavior and Opportunity Define organizational behavior. Identify four action steps for responding positively in times of change. Identify the important system components of an organization. Describe the formal and informal elements of an organization. Understand the diversity of organizations in the economy. Describe the opportunities that change creates for organizational behavior. Demonstrate the value of objective knowledge and skill development in the study of organizational behavior. © 2011 Cengage Learning. All rights reserved.

Clockworks or Snake pit? Learning Outcome 1 Define organizational behavior. Clockworks or Snake pit? © 2011 Cengage Learning. All rights reserved.

Organizational Behavior the study of individual behavior and group dynamics in organizations © 2011 Cengage Learning. All rights reserved.

Organizational Behavior: Dynamics in Organizations Psychosocial Organizational Behavior Interpersonal Behavioral © 2011 Cengage Learning. All rights reserved.

Organizational Variables that Affect Human Behavior Communication Organizational Structure Performance Appraisal Human Behavior Work Design Jobs Organizational Design © 2011 Cengage Learning. All rights reserved.

External Perspective Internal Perspective Understand behavior in terms of external events, environmental forces, and behavioral consequences. Internal Perspective Understand behavior in terms of thoughts, feelings, past experiences, and needs. Explain behavior by examining individuals’ history and personal value System. Explain behavior by examining surrounding external events and environmental forces. Both perspectives have produced motivational & leadership theories. © 2011 Cengage Learning. All rights reserved.

Interdisciplinary Influences on Organizational Behavior Sociology the science of society Psychology the science of human behavior Engineering the applied science of energy & matter Interdisciplinary Influences on Organizational Behavior Medicine the applied science of healing or treating diseases to enhance health and well-being Anthropology the science of the learned behavior of human beings Management the study of overseeing activities and supervising people in organizations © 2011 Cengage Learning. All rights reserved.

© 2011 Cengage Learning. All rights reserved. Learning Outcome 2 Identify four action steps for responding positively in times of change. © 2011 Cengage Learning. All rights reserved.

© 2011 Cengage Learning. All rights reserved. Reactions to Change Rigid and Reactive Open and Responsive © 2011 Cengage Learning. All rights reserved.

© 2011 Cengage Learning. All rights reserved. Learning Outcome 3 Identify the important system components of an organization. © 2011 Cengage 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 © 2011 Cengage Learning. All rights reserved.

Open Systems View of Organization © 2011 Cengage Learning. All rights reserved.

© 2011 Cengage Learning. All rights reserved. Learning Outcome 4 Describe the formal and informal elements of an organization. © 2011 Cengage 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 suggested the importance of informal organizations © 2011 Cengage 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 © 2011 Cengage Learning. All rights reserved.

© 2011 Cengage Learning. All rights reserved. Learning Outcome 5 Understand the diversity of organizations in the economy. © 2011 Cengage Learning. All rights reserved.

Sectors of the U.S. Economy Manufacturing Nonprofit organizations Service Government © 2011 Cengage Learning. All rights reserved.

© 2011 Cengage Learning. All rights reserved. Learning Outcome 6 Evaluate the opportunities that change creates for organizational behavior. © 2011 Cengage 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 © 2011 Cengage Learning. All rights reserved.

© 2011 Cengage Learning. All rights reserved. [QUALITY] Can give organizations in viable industries a competitive edge in international competition A rubric for products and services of high status A customer-oriented philosophy of management with implications for all aspects of organizational behavior A cultural value embedded in successful organizations © 2011 Cengage 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? © 2011 Cengage Learning. All rights reserved.

© 2011 Cengage Learning. All rights reserved. Six Sigma a high-performance system for executing business strategy that is customer-driven, emphasizes quantitative decision making, and places a priority on saving money. © 2011 Cengage Learning. All rights reserved.

Six Sigma vs. Total Quality Management © 2011 Cengage Learning. All rights reserved.

© 2011 Cengage 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 © 2011 Cengage Learning. All rights reserved.

Challenges to Managing Organizational Behavior Increasing globalization of organizations’ operating territory Increasing diversity of organizational workforces Continuing technological innovation with its companion need for skill enhancement Continuing demand for higher levels of moral and ethical behavior at work © 2011 Cengage Learning. All rights reserved.

© 2011 Cengage Learning. All rights reserved. Learning Outcome 7 Demonstrate the value of objective knowledge and skill development in the study of organizational behavior. © 2011 Cengage Learning. All rights reserved.

Learning about Organizational Behavior Learning Activity Mastery of basic objective knowledge Science Theories, Research, Articles The Real World Development of specific skills and abilities Organizational and Work Context You Application of knowledge and skills Copyright ©2011 Cengage Learning. All rights reserved Assessments & Exercises

Learning from Structured Activity Individual or group structured activity (e.g., group decision activity) Systematic review of the structured activity (e.g., compare individual & group results) New or modified knowledge or skills (e.g., consensus group decisions are better) Conclusions based on systematic review (e.g., the group did better) Copyright ©2011 by Cengage 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 © 2011 Cengage Learning. All rights reserved.

Copyright ©2011 Cengage Learning. All rights reserved AFFECTING MANAGERS TRENDS 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 Copyright ©2011 Cengage Learning. All rights reserved

The film sequence shows three people interacting in a work environment The film sequence shows three people interacting in a work environment. Which aspects of organizational behavior and management discussed earlier in this chapter appear in this sequence? The three people in this sequence represent different management levels in the company. Which levels do you attribute to Carter Duryea, Dan Foreman, and Mark Steckle? Critique the behavior shown in this sequence. What are the positive and negative aspects of the behavior shown. In Good Company A corporate takeover brings star advertising executive Dan Foreman (Dennis Quaid) a new boss who is half his age. Carter Duryea (Topher Grace), Dan’s new boss, wants to prove his worth as the new marketing chief at Sports America, Waterman Publishing’s flagship magazine. Carter applies his unique approaches while dating Dan’s daughter, Alex (Scarlett Johansson). This sequence follows Foreman’s reaction toward the end of a speech given by Globecom CEO Teddy K. (Malcom McDowell). Ask your students: 1. The film sequence shows three people interacting in a work environment. Which aspects of organizational behavior and management discussed earlier in this chapter appear in this sequence? 2. The three people in this sequence represent different management levels in the company. Which levels do you attribute to Carter Duryea, Dan Foreman, and Mark Steckle? 3. Critique the behavior shown in this sequence. What are the positive and negative aspects of the behavior shown.