Chapter 1 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. Identify factors that contribute to the diversity of organizations in the economy. Describe the opportunities that change creates for organizational behavior. Demonstrate the value of objective knowledge and skill development in the study of organizational behavior. Learning Outcomes © 2013 Cengage Learning

Clockworks or Snake pit? 1 Learning Outcome Define organizational behavior. Clockworks or Snake pit? © 2013 Cengage Learning

Organizational Behavior the study of individual behavior and group dynamics in organizations © 2013 Cengage Learning

Organizational Behavior: Dynamics in Organizations Psychosocial Organizational Behavior Interpersonal Behavioral © 2013 Cengage Learning

Organizational Variables that Affect Human Behavior Communication Organizational Structure Performance Appraisal Human Behavior Work Design Jobs Organizational Design © 2013 Cengage Learning

External and Internal Perspectives External Perspective Understand behavior in terms of external events, environmental forces, and behavioral consequences. Internal Perspective Understand behavior in terms of thoughts, feelings, past experiences, and needs. Explain behavior by examining individuals’ history and personal value System. Explain behavior by examining surrounding external events and environmental forces. Both perspectives have produced motivational & leadership theories. © 2013 Cengage Learning

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 Medicine the applied science of healing or treating diseases to enhance health and well-being Anthropology the science of the learned behavior of human beings Management the study of overseeing activities and supervising people in organizations © 2013 Cengage Learning

2 Learning Outcome Identify four action steps for responding positively in times of change. © 2013 Cengage Learning

Reactions to Change Rigid and Reactive Open and Responsive © 2013 Cengage Learning

3 Learning Outcome Identify the important system components of an organization. © 2013 Cengage Learning

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 wide range of tools, knowledge, and/or techniques used to transform inputs into outputs © 2013 Cengage Learning

Open Systems View of Organization © 2013 Cengage Learning.

4 Learning Outcome Describe the formal and informal elements of an organization. © 2013 Cengage Learning

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 suggested the importance of informal organizations © 2013 Cengage Learning

Formal & Informal Elements of Organizations © 2013 Cengage Learning

5 Learning Outcome Identify factors that contribute to the diversity of organizations in the economy. © 2013 Cengage Learning

Sectors of the U.S. Economy Nonprofit organizations Manufacturing Government Service © 2013 Cengage Learning

6 Learning Outcome Describe the opportunities that change creates for organizational behavior. © 2013 Cengage Learning

Global Competition in Business Increased Global Competition Radical Change © 2013 Cengage Learning

[QUALITY] Can give organizations in viable industries a competitive edge in international competition A rubric for products and services of high status A customer-oriented philosophy of management with implications for all aspects of organizational behavior A cultural value embedded in successful organizations © 2013 Cengage Learning

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? © 2013 Cengage Learning

Six Sigma a high-performance system for executing business strategy that is customer-driven, emphasizes quantitative decision making, and places a priority on saving money. © 2013 Cengage Learning

Six Sigma vs. Total Quality Management © 2013 Cengage Learning

Seven Categories in the 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 © 2013 Cengage Learning

Challenges to Managing Organizational Behavior Increasing globalization of organizations’ operating territory Increasing diversity of organizational workforces Continuing technological innovation with its companion need for skill enhancement Continuing demand for higher levels of moral and ethical behavior at work © 2013 Cengage Learning

7 Learning Outcome Demonstrate the value of objective knowledge and skill development in the study of organizational behavior. © 2013 Cengage Learning

Learning about Organizational Behavior Learning Activity Mastery of basic objective knowledge Science Theories, Research, Articles The Real World Development of specific skills and abilities Organizational and Work Context You Application of knowledge and skills © 2013 Cengage Learning Assessments & Exercises

Cognitive mastery of theories Objective Knowledge Cognitive mastery of theories Research Findings Conceptual Models © 2013 Cengage Learning

Three Assumptions Required for Learning from Structured Activity Each student must accept responsibility for his/her own behavior, actions, and 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. © 2013 Cengage Learning

Application of Knowledge and Skills With structured, experiential learning, people can explore new behaviors and skills in a comparatively safe environment. Students are “educated” rather than “trained” in organizational behavior and are coproducers in learning. © 2013 Cengage Learning

The film sequence shows three people interacting in a work environment 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 the company. Which levels do you attribute to Carter Duryea, Dan Foreman, and Mark Steckle? Critique the behavior shown in this sequence. What are the positive and negative aspects of the behavior shown. In Good Company 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. © 2013 Cengage Learning

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? Holden Outerwear 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? © 2013 Cengage Learning 32