Chapter 1 Introduction:Organizational Behavior in the 1990s Nelson & Quick

Organizational Behavior The study of individual behavior and group dynamics in organizational settings Organizational Variables Performance appraisal Work design Human Behavior Communications Organizational Design Organizational Structure Jobs 2

Organizational Vs Individual Point of View Clockworks or Snake pit? Human Behavior in the Organization 4

Internal/External Perspective of Human Behavior Understand human behavior in terms of External events, behavioral consequences, & external forces Thoughts,feelings, past experiences, and needs Explain human behavior by examining Surrounding external events & environmental forces Individuals’ history & personal value system Internal Perspective External Perspective Each Perspective has produced motivational & leadership theories.

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 Anthropology the science of the learned behavior of human beings Medicine the applied science of healing or treatment of diseases to enhance an individual’s health and well-being Management the study of overseeing activities and supervising people in organizations

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, & the overall organization are designed at the macro level Technology - the intellectual and mechanical processes used by an organization to transform inputs into products or services that meet organizational goals (ch02)

Organizations as Systems Outputs: Products Services Inputs: Material Capital Human Task environment: Competitors Unions Regulatory agencies Clients Structure Task Technology People (Actors) Organizational Boundary Based on Harold Levitt, “Applied Organizational Change in Industry: Structural, Technological, and Humanistic Approaches,” in J.G. March (ed.), Handbook of Organizations, Rand McNally, Chicago, 1965, p. 1145. Reprinted by permission of James G. March

Formal vs Informal Organization Formal Organization - the part of the organization that has legitimacy and official recognition Informal Organization - the unofficial part of the organization Hawthorne Studies: studies conducted during the 1920’s and 1930’s that discovered the existence of the informal organization

Formal & Informal Elements of Organizations Formal organization (overt) Goals & objectives Policies & procedures Job descriptions Financial resources Formal & Informal Elements of Organizations Social Surface Informal organization (covert) Beliefs & assumptions about people, work, the organization Perceptions & attitudes Values Feelings, such as fear, rage, despair, & hope Group norms

U.S. Gross Domestic Product Total $8.1 Trillion 6% 15% 12% 8% 40% 19%

Six Focus Organizations Ford Gateway 2000 Southwest Airlines Starbucks Harpo Entertainment American Red Cross

Change Too much change = chaos Too little change = stagnation How do you view change? Threat Opportunity

International Competition in Business Thurow: the next several decades in business will be characterized by intense competition between the U.S., Japan, and Europe in core industries. Success will require: positive response to the competition in the international marketplace responsiveness to ethnic, religious, and gender diversity in the workforce

Quality 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

Quality Cannot be optimized Is not a fad Is not an end in itself 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? YES means the idea should improve overall quality

Total Quality Management the total dedication to continuous improvement and to customers so that the customers’ needs are met and their expectations exceeded Total Quality is NOT - a panacea for all organizations - a guarantee of unqualified success

CEOs Advance Total Quality by: Engaging in participative management Being willing to change everything Focusing quality efforts on customer service Including quality as a criterion in reward systems Improving the flow of information regarding quality improvement successes or failures Being actively & personally involved in quality efforts

Seven Categories in the Malcolm Baldrige National Quality Award Examination Leadership Information and analysis Strategic quality planning Human resource utilization Quality assurance of products & services Quality results Customer satisfaction

Challenges to Managing Organizational Behavior 1. Increasing globalization of organizations’ operating territory 2. Increasing diversity of organizational workforces 3. Continuing technological innovation with its companion need for skill enhancement 4. Continuing demand for higher levels of moral & ethical behavior at work

Learning about Organizational Behavior Mastery of basic objective knowledge* Application of knowledge and skills Development of specific skills** and abilities * Objective knowledge knowledge that results from research and scholarly activities ** Skill development the mastery of abilities essential to successful functioning in organizations

The Organizational Behavior Student is a critical consumer of knowledge related to organizational behavior--one who is able to intelligently question the latest research results and distinguish plausible, sound new approaches from fads that lack substance or adequate foundation.

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

Three Assumptions Required for Learning from Structured Activity Each student must accept responsibility for his/her own behavior, actions, & 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

Skills Identified by U.S. Department of Labor Resource management skills Information management skills Personal interaction skills Systems behavior & performance skills Technology utilization skills

Watchwords for Organizations in These Changing Times