Chapter 1 a strategic approach to organizational behavior Michael A. Hitt C. Chet Miller Adrienne Colella Mary Triana

? Knowledge Objectives Define organizational behavior and explain the strategic approach to OB. Provide a formal definition of organization. Describe the nature of human capital. Discuss the conditions under which human capital is a source of competitive advantage for an organization. Describe positive organizational behavior and explain how it can contribute to associates’ productivity. Explain the five characteristics of high-involvement management and the importance of this approach to management.

Organizational Behavior Actions of individuals and groups in an organizational context.

Managing Organizational Behavior Actions focused on: acquiring developing applying knowledge and skills of people

Strategic OB Approach Organizing and managing people’s knowledge and skills to: implement strategy gain competitive advantage

Exhibit 1-1: Factors and Outcomes of a Strategic Approach to Organizational Behavior

Senior Managers Skills Activities Conceptualizing Discuss – vision, strategy, and other major issues Conceptualizing Communicating Understanding the perspectives of others

Senior Managers Skills Activities (cont.) Activities Skills Help middle managers define or redefine roles and manage conflict Listening Conflict management Negotiating Motivating Create and maintain the organization’s culture Interpersonal influence

Middle Managers Skills Activities Networking Communicating Influencing Champion strategic ideas and help firm to remain adaptive Process data and information for use by other individuals Analyzing Communicating

Middle Managers Skills Activities Communicating (cont.) Skills Activities Communicating Motivating Understanding values Managing Stress Deliver strategic initiatives to lower-level managers

Lower-level Managers Skills Activities Teaching Coach associates Listening Understanding personalities Managing stress Coach associates

Lower-level Managers Skills Activities Remove obstacles for associates (cont.) Skills Activities Remove obstacles for associates Deal with associates personal problems Negotiating Influencing others Counseling Understanding personalities

Lower-level Managers Skills Activities Analyzing (cont.) Skills Activities Analyzing Negotiating Group dynamics Design jobs, team structures, and reward systems

Importance of Understanding Organizational Behavior Behavioral Sciences: Psychology Social psychology Sociology Economics Cultural anthropology Enhance our ability to leverage people’s potential within the organization. Gain confidence in empowering associates to work toward solving problems. Integrate behavioral science knowledge to organizational applications.

‘Organization Defined: “Collection of individuals forming a coordinated system of specialized activities for the purpose of achieving certain goals over some extended period of time.”

Common Features of Organizations Network of individuals System Coordinated activities Division of labor Goal orientation Continuity over time, regardless of individual membership change

Human Capital Sum of skills, knowledge, and general attributes of people in the organization.

Human Capital as a Source of Competitive Advantage Able to perform some aspect of work better than competition offering customers added value. Value Individuals capable of supporting strategy for competing. Rareness Unique skills and talents of individuals. Imitability Extent that individual skills and talents can be copied.

Competitive Advantage Potential Are human resources in the firm . . . Valuable Rare Difficult to imitate Competitive implications Performance No --- Competitive Disadvantage Below Normal Yes Competitive Parity Normal Temporary Competitive Advantage Above Normal Sustained Competitive Advantage Supported by effective management Adapted from Exhibit 1-2: Human Capital and Competitive Advantage

Positive Organizational Behavior Nurtures individual’s strengths for personal and professional advantage.

High-involvement Management Dimensions Selective Hiring Extensive Training Decision Power Information Sharing Incentive Compensation

Demands on High-involvement Managers Empower Trust Use human capital to create competitive advantage

Exhibit 1-4: Managing Organizational Behavior for Competitive Advantage

Check out http://wileymanagementupdates.com/ Strategic Lens Check out http://wileymanagementupdates.com/ for daily articles related to management in the news .

Copyright Copyright © 2018 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.