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.

5 Understand the diversity of organizations in the economy, as exemplified by the six focus organizations. Recognize the opportunities that change creates for organizational behavior. Demonstrate the value of objective knowledge and skill development in the study of organizational behavior.

Organizational Behavior Defined Organizational behavior is individual behavior and group dynamics in organizations.

Times of Challenge and Change The call to competition, contest or battle Times of Challenge and Change The transformation or modification of an organization and/or its stakeholders Lead to Opportunities Favorable times or chances for progress and advancement

Organizational Variables that Affect Human Behavior Jobs Work Design Communication Performance Appraisal Organizational Design Organizational Structure

Two Perspectives on Human Behavior Understands behavior through factors inside the person Interprets behavior through thoughts and feelings Internal Understands behavior through factors outside the person Interprets behavior through external events and environmental factors External

Interdisciplinary Influences on Organizational Behavior Anthropology the science of human learned behavior Psychology the science of human behavior Engineering the applied science of energy and matter Interdisciplinary Influences on Organizational Behavior Medicine the applied science of healing or treatment of diseases to enhance an individual’s health and well-being Sociology the science of society Management the study of overseeing activities and supervising people in organizations

Behavior in Times of Change In the midst of change, people often become rigid and reactive, rather than open and responsive See the opportunity in change Have a positive attitude Ask questions Listen to the answers Be committed to success

Organizations as Open Systems Organizations are open systems of interacting components People, tasks, technology, and structure come together for a purpose Internal components interact with external components in the task environment Competitors Customers Vendors

Internal Components of an Organization Task – an organization’s mission, purpose, or goal for existing People – the human resources of the organization Technology – the tools, knowledge, and/or techniques used to transform inputs into outputs Structure – the systems of communication, authority and roles, and workflow

The Formal and 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 The importance of employees’ moods, emotions, and dispositional affect is a key factor in critical organizational outcomes.

Six Focus Organizations Netflix, Inc. Ford Motor Company Oracle Corporation Groupon Dyson QuikTrip

The Challenges of Change Three challenges for managers relating to change in organizations: Globalization leads to intense rivalry Workforce diversity Ethnic Religious Gender Ethics

Quality Is… 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 A cultural value embedded in successful organizations

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

A philosophy for company-wide quality improvement Characterized by Six Sigma A philosophy for company-wide quality improvement Characterized by Customer-driven approach Quantitative decision making A priority on saving money

Managers Act to Advance Total Quality Engage in participative management Be willing to change everything Focus quality efforts on customer satisfaction (not cost cutting) Include quality as a reward criterion Communicate quality improvement successes (or failures) Be actively and personally involved in quality efforts

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

Learning about Organizational Behavior First, the science of organizational behavior requires the mastery of a certain body of objective knowledge from research and scientific activities Second, the practice of organizational behavior requires skill development based on knowledge and an understanding of yourself Third, both objective knowledge and skill development must be applied in real-world settings

Trends Affecting Managers Industrial restructuring A dramatic increase in the amount and availability of information A need to attract and retain the best employees A need to understand a wide range of human and cultural differences A rapid shortening of response times in all aspects of business activities

The Challenge for Managers Today Reweaving the fabric of human relationships within, across, and outside the organization requires Trust Predictability A sense of security

Knowledge Becomes Power Knowledge base Facts Information Theories

In Good Company Video Clip Which aspects of organizational behavior and management discussed earlier in this chapter appear among the three people in this work environment? These three people represent different management levels in the company. Which levels do you attribute to Carter Duryea, Dan Forman, and Mark Steckle? Critique the behavior in the sequence. What are the positive and negative aspects of the behavior shown?