Organizational Behavior and Opportunity Organizational Behavior and Opportunity Chapter 1 Organizational Behavior Nelson & Quick 6th edition

Human Behavior in Organizations Clockworks or Snake pit? 4 Clockworks or Snake pit? Photos courtesy of Clips Online, © 2008 Microsoft Corporation 4

Organizational Behavior Organizational Behavior- the study of individual behavior and group dynamics in organizations Photos courtesy of Clips Online, © 2008 Microsoft Corporation

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

Organizational Behavior: Dynamics in Organizations Psychosocial Organizational Behavior Interpersonal Behavioral

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

Understanding Human Behavior External Perspective: Examining surrounding external events & environmental forces Thoughts Feelings Experiences External Events Behavioral Consequences Internal Perspective: Examining individuals’ history & personal values Environmental Forces Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Sociology Engineering Anthropology Medicine Management Psychology the science of human behavior Sociology the science of society 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

Positive Reactions to Change Open and Responsive Have a positive attitude Ask questions Listen to the answers Be committed to success Not Rigid and Reactive Photos courtesy of Clips Online, © 2008 Microsoft Corporation

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 tools, knowledge, and/or techniques used to transform inputs into outputs

Open Systems View of Organization Task environment: Competitors Unions Regulatory agencies Clients Structure Outputs: Products Services Inputs: Material Capital Human Technology Task 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 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 discovered the existence of the informal organization.

Formal & Informal Elements of Organizations Formal organization (overt) Goals & objectives Policies & procedures Job descriptions Financial resources Authority structure Communication channels Products and services Formal & Informal Elements of Organizations Social Surface Informal organization (covert) Beliefs & assumptions Perceptions & attitudes Values Feelings, such as fear, joy anger, trust, & hope Group norms Informal leaders Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved

U.S. Gross Domestic Product 7% 8% Total $13.2 Trillion 12% 41% 12% 20%

Six Focus Organizations Caribou Coffee Genetech, Inc. Google The Timberland Company American Express (AMEX) Toyota Motor Corporation

Global Competition in Business Global Competition in Business Four challenges to managers relating to change in organizations Globalization Workforce Diversity Ethics & Character Technological Innovation

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

Three key questions in evaluating quality-improvement ideas 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?

Six Sigma Six Sigma - a high-performance system to execute business strategy that is customer-driven, emphasizes quantitative decision making, and places a priority on saving money

Contrasting Six Sigma and Total Quality Management Six Sigma TQM Executive Ownership Business strategy execution system Truly cross functional Focused training with verifiable return on investment Business results oriented Self-directed work teams Quality initiative Largely within a single function No mass training in statistics and quality Quality orientated Return on investment Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Source: Matt Barney. “Motorola’s Second Generation.” Six Sigma Forum Magazine (May 2002), 13.

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

Learning about Organizational Behavior Learning Activity Pedagogical Features Mastery of basic objective knowledge* Science Theories, Research, Articles Development of specific skills** and abilities You Exercises, Questionnaires The Real World Application Of knowledge And skills Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Organizational & Work Context

Objective Knowledge Skill Development Objective Knowledge Knowledge that results from research and scientific activities Skill Development The mastery of abilities essential to successful functioning in organizations

Learning from Structured Activity 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) Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved

Three Assumptions Required for Learning from Structured Activity 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

Trends Affecting Managers Trends Affecting Managers TRUST Industrial restructuring Increased amount & availability of information Need to attract & retain the best employees Need to understand human & cultural differences Rapid shortening of response times in all aspects of business SECURITY PREDICTABILITY

Knowledge = Power in Understanding Trends Knowledge Base Information Facts Theories

Chapter 1: Reflect & Discuss 8 Mile Video Clip What to Watch for and Ask Yourself What is your perception of the quality of Jimmy’s job and his work environment? What is the quality of Jimmy’s relationship with Manny (Paul Bates), his foreman? Does it change? If it does, why? How would you react to this type of work experience? 8 Mile Jimmy “B-Rabbit” Smith, Jr. (Eminem) wants success as a rapper and to prove that a white man can create moving sounds. His job at the NDS (North Detroit Stamping) plant fills his days while he pursues his music at night—and sometimes on the plant’s grounds. The film’s title refers to Detroit’s northern city boundary, well known to local people. 8 Mile is a gritty look at Detroit’s hip-hop culture in 1995 and Jimmy’s desire for acceptance by it. Eminem’s original songs “Lose Yourself” and “8 Mile” received several award nominations. “Lose Yourself” won the 2003 Academy Award for best original song. The scene has two parts. It is an edited composite of two brief NDS plant sequences that appear in different places in the film. Part I of the scene appears early in the film in the sequence “The Franchise.” Part II appears in the last 25 minutes of the film in the “Papa Doc Payback” sequence. Jimmy arrives late for work in the first part of the scene, after riding the city bus because his car did not start. The second part occurs after his beating by Papa Doc (Anthony Mackie) and Papa Doc’s gang.. The film continues to its end with Jimmy’s last battle (a rapper competition). What to Watch for and Ask Yourself What is your perception of the quality of Jimmy’s job and his work environment? What is the quality of Jimmy’s relationship with Manny (Paul Bates), his foreman? Does it change? If it does, why? How would you react to this type of work experience? 28