Chapter 1 Organizational Behavior and Opportunity Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Outcome Define organizational behavior Identify four action steps for responding positively in times of change Identify important system components of an organization Describe formal and informal elements of an organization Identify factors that contribute to diversity of organizations in the economy Describe opportunities that change creates for organizational behavior Demonstrate value of objective knowledge and skill development in the study of organizational behavior

LO 1.1 - Define Organizational Behavior

Organizational Behavior Study of individual behavior and group dynamics in organizations

Models of Human Behavior: External and Internal Perspective Studies a worker’s mind to understand their behavior Focuses on thoughts, feelings, past experiences, and needs of the individual External perspective Focuses on factors outside the person to understand behavior Includes external events, consequences, and environmental forces

Interdisciplinary Influences on Organizational Behavior Psychology Science of human behavior Sociology Science of society Engineering Applied science of energy and matter Anthropology Science of human learned behavior Management Overseeing activities and supervising people Medicine Applied science of healing or treating diseases

LO 1.2 - Identify Four Action Steps for Responding Positively in Times of Change

Steps for Adapting to Change Have a positive attitude Ask questions Listen to answers Be committed to success

LO 1.3 - Identify Important System Components of an Organization

1.1 An Open-Systems View of Organization

LO 1.4 - Describe Formal and Informal Elements of an Organization

Formal and Informal Organization Official, legitimate, and most visible part of the system Formal organization Unofficial and less visible part of the system Hawthorne studies: Studies conducted during the 1920s and 1930s suggest the importance of informal organization Informal organization

Formal and Informal Elements of Organizations Social Surface Formal organization (overt) Goals and objectives Policies and procedures Job descriptions Financial resources Authority structures Communication channels Products and services Informal organization (covert) Beliefs and assumptions Perceptions and attitudes Values Feelings (fear, joy, anger, trust, and hope) Group norms Informal leaders

LO 1.5 - Identify Factors that Contribute to Diversity of Organizations in the Economy

Sectors of the U.S. Economy Private sector Nonprofit sector Large and small organizations Manufacturing sector Government sector Service sector

Describe Opportunities that Change Creates for Organizational Behavior LO 1.6 - Describe Opportunities that Change Creates for Organizational Behavior LO - 1.6 Describe Opportunities that Change Creates for Organizational Behavior

Impact of Global Competition on Business Results in drastic changes Is characterized by intense rivalry Puts increased pressure on employees to: Increase productivity Add value to the firm

Key Questions in Evaluating Quality-Improvement Ideas Does the idea improve customer response? Does the idea accelerate results? Does the idea increase effectiveness of resources?

Six Sigma High-performance system for executing business strategy Customer-driven Emphasizes quantitative decision making Places a priority on saving money Phases for tackling problems Measure Analyze Improve Control

1.1 Contrasting Six Sigma and Total Quality Management

Seven Categories in 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

Challenges to Managing Organizational Behavior Increasing globalization of organizations’ operating territory Increasing diversity of organizational workforces Continuing demand for higher levels of moral and ethical behavior at work

LO 1.7 - Demonstrate Value of Objective Knowledge and Skill Development in the Study of Organizational Behavior LO - 1.7 Demonstrate Value of Objective Knowledge and Skill Development in the Study of Organizational Behavior

1.3 Learning About Organizational Behavior

Learning About Organizational Behavior Objective knowledge: Result of research and scientific activities Skill development: Proficiency in the abilities a firm needs to function successfully Skills identified by the U.S. Department of Labor Resource management Information management Personal interaction Systems behavior and performance Technology utilization

1.4 Learning from Structured Activity

In Good Company 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 a company. Which levels do you attribute to Carter Duryea, Dan Foreman, and Mark Steckle? Critique the behavior shown in this sequence. Enlist the positive and negative aspects. 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.

What are the challenges of globalization for managers at Holden? Holden Outerwear Using the open-systems view of organizations, describe Holden Outerwear’s internal and external environment. How has globalization influenced Holden’s business and created opportunity? What are the challenges of globalization for managers at Holden? Like many other American brands, Holden apparel is made in China. LeBlanc explains that while he would like to manufacture lines in the United States, government regulations, labor costs, and high corporate tax rates are too heavy a burden. Availability of material is another reason for producing goods in China, since most of the fabrics, buttons, and snaps that Holden uses come from Asian suppliers. In addition to such procurement problems, garment making requires skilled labor—something LeBlanc says is rare in the United States. Despite the many challenges Holden faces as a small business competing in a global economy, LeBlanc’s knack for navigating global markets is as sharp as his ability to tame even the most challenging downhill courses. Ask your students: Using the open systems view of organizations, describe Holden Outerwear’s internal and external environment. How has globalization influenced Holden’s business and created opportunity? What are some challenges of globalization for managers at Holden?

Key Terms Anthropology Objective knowledge Change Opportunities Challenge Engineering Formal organization Hawthorne studies Informal organization Management Medicine Objective knowledge Opportunities Organization behaviour People Psychology Skill development Sociology Structure Task Technology

Summary Organizational behavior studies individual behavior and group dynamics To respond positively to change Have a positive attitude, ask questions, listen to answers, and be committed to success Task, people, technology, and structure are important components of an organization Formal organization is the visible part of the system whereas informal organization is the less visible part Major sectors of the economy are private, manufacturing, service, government, and nonprofit

Change creates opportunities Summary (continued 2) Change creates opportunities Increases global competition Improves quality of the products and workplace environment Objective knowledge is derived from research and scientific activities Skill development refers to being proficient in the tasks a firm needs to function smoothly