McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-1

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-2 Chapter Introduction to Organizational Behavior 1 1

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-3 Introduction Organizations are much more than only a means for providing goods and service They create the settings in which most of us spend our lives They have profound influence on employee behavior

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-4 The core 21 st century qualities needed to create the ideal work atmosphere begin with intelligence, passion, a strong work ethic, and a genuine concern for people.

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-5 Managing and Working Today and in the Future: Managers must become agile and flexible to help their firms develop and sustain competitive advantage To be successful, managers will need to harness the powers of: information technology human capital

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-6 Rapidity of Change New Worker- Employer Psychological Contract Technology Globalism Cultural Diversity Power of Human Resources Environmental Forces Reshaping Management Practice

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-7 Challenges of These Forces to Managers Resisting the reality of these forces will likely lead to: Unnecessary conflict Reduced managerial performance Reduced non- managerial performance Lost opportunities Resisting the reality of these forces will likely lead to: Unnecessary conflict Reduced managerial performance Reduced non- managerial performance Lost opportunities Failing to cope and deal with these forces will likely result in: Job dissatisfaction Poor morale Reduced commitment Lower work quality Burnout Poor judgment Unhealthy consequences Failing to cope and deal with these forces will likely result in: Job dissatisfaction Poor morale Reduced commitment Lower work quality Burnout Poor judgment Unhealthy consequences

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-8 The Origins of Management Frederic W. Taylor’s Scientific Management Principles Henri Fayol’s Functions of Management

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-9 Taylor’s Scientific Management Principles (1 of 2) Develop a science for each element of an employee’s work which replaces the old rule-of-thumb method Scientifically select and then train, teach, and develop the worker whereas in the past a worker chose the work to do and was self-trained

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved Taylor’s Scientific Management Principles (2 of 2) Heartily cooperate with each other to insure that all work was done in accordance with the principles of science There is an almost equal division of the work and the responsibility between management and non-managers

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved Impact of Fayol’s Functions of Management Emphasized the importance of carefully practicing efficient: planning organizing commanding coordinating controlling Emphasized the importance of carefully practicing efficient: planning organizing commanding coordinating controlling Management is a separate body of knowledge that can be applied in any type of organization A theory of management that can be learned and taught There is a need for teaching management in colleges Management is a separate body of knowledge that can be applied in any type of organization A theory of management that can be learned and taught There is a need for teaching management in colleges

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved Definition of Organizational Behavior (OB) The study of human behavior, attitudes, and performance within an organizational setting drawing on theory, methods, and principles from such disciplines as psychology, sociology, political science, and cultural anthropology to learn about individual, groups, structure, and processes

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved Key Points About OB 1. OB is a way of thinking 2. OB is multidisciplinary 3. There is a distinctly humanistic orientation within OB 4. The field of OB is performance-oriented 5. The role of the scientific method is important in studying variables and relationships 6. OB has a distinctive applications orientation 1. OB is a way of thinking 2. OB is multidisciplinary 3. There is a distinctly humanistic orientation within OB 4. The field of OB is performance-oriented 5. The role of the scientific method is important in studying variables and relationships 6. OB has a distinctive applications orientation

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-14Individual Group Organization OrganizationalBehavior Social Psychology Political Science Anthropology Psychology Sociology Discipline Unit of Analysis Output Contributions to the Study of Organizational Behavior

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved Studying Organizational Behavior Leaders and Organizational Behavior The Hawthorne Studies

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved Organizational Processes Organizational Structure Change and Innovation Understanding and Managing Individual Behavior Group Behavior and Interpersonal Influence The Organization’s Environment Topics in Studying and Understanding OB

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved The Basic Elements of a System InputsProcessOutputs Environment

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved Individual effectiveness Group effectiveness Organizational effectiveness Three Perspectives on Effectiveness

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved Time Dimension Model of Effectiveness QualityQualityQuality Productivity Productivity Efficiency Efficiency Satisfaction Satisfaction Adaptiveness Adaptiveness Efficiency Efficiency Satisfaction Satisfaction Survival Survival Short runIntermediate runLong run

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved Systems Theory and Effectiveness (1 of 2) Effectiveness criteria must reflect the entire input-process-output cycle, not simply output Effectiveness criteria must reflect the interrelationships between the organization and its outside environment

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved Systems Theory and Effectiveness (2 of 2) Organizational effectiveness is an all- encompassing concept that includes a number of component concepts The managerial task is to maintain the optimal balance among these components

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved Managers can lead the way to higher levels of effectiveness by: (1 of 2) Providing opportunities for training and continuous learning Sharing information with employees Encouraging cross-development partnerships Linking compensation to performance

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved Managers can lead the way to higher levels of effectiveness by: (2 of 2) Avoiding layoffs Being a supportive role model Respecting the differences across employees Being a good listener

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved Key Points (1 of 2) The key to an organization’s success is its human resources Organizations need human resources that: work hard think creatively perform excellently

McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved Key Points (2 of 2) Rewarding, encouraging, and nurturing the human resources in a timely and meaningful manner is what is required The behavior of employees is the key to achieving effectiveness