The Study of Organizations

I. The Importance of Organizations Organizations exists because they accomplish things that cannot be achieved by individuals.

Organizations are GOAL-DIRECTED They pursue goals and objectives that can be achieved more efficiently by the coordinated actions of groups and individuals.

Why study organizations It is where we spend most of our lives Schools, work, church, fraternities, etc. All are forms of organizations

Importance of Studying Organizational Behavior Organizational Behavior is the study of human behavior, attitudes, and performance within an organizational setting; drawing on theory, methods, and principles from such areas as psychology, sociology, and cultural anthropology to learn about capacities, and actions while working in groups and within the total organization analyzing the external environment’s effect on the organization and its human resources, missions, objectives, and strategies.

A Framework for Studying Organizations 1. Based on the Situation or Context--Contingency Approach 2. Based on Structure and Process

Contingency Approach (Situational) to management. The process of managing is based on the situation. There is no one best way to manage. A good manager diagnosis the characteristics of the individuals and groups involved, the organizational structure, and his/her own leadership style before acting on a situation.

Structure and Process 1. Structure - formal pattern of how its people and jobs are performed. Usually depicted by an organizational chart. 2. Process - activities that “give life” to the organizational chart. i.e. Communication, decision making, performance evaluation, etc.

A Framework for this course Organizational Environment The whole system customers and client needs, legal and political constraints

The Individual Understanding the Individual is the foundation of Organizational Behavior. Individual Characteristics What makes people individuals with their own values, attitudes, etc. Individual Motivation Rewards and Punishment Stress - State of imbalance based on such things as role conflict and role overload.

Groups and Interpersonal Influence 4 aspects

1. Group Behavior Arises from both management and individual efforts. Groups are formal and informal Formal - instituted by the organization. Informal - instituted because of friendships, consequences, etc.

2. Intergroup Behavior and Conflict Groups develop their own individuated structure, norms, roles, and processes. However, since each group has their own identity and purpose, conflict can arise between groups when they have to cooperate or compete.

3. Power and Politics Managers must derive their power from both organizational and individual sources - both formal and informal groups.

4. Leadership Found in both formal and informal groups. An effective leader recognizes both. A formal group leader must obtain support from the informal group leader in order to be successful. Two major theories on leadership - Trait and Situational

The Structure of Organizations Job Design - The process by which managers specify the contents, methods, and relationships between jobs to satisfy organizational and individual needs. Organizational Design - refers to overall organizational structure. a picture of task and authority relationships. functional, product, matrix the organizational chart

Processes of Organizations 1. Communication How do managers receive , transmit and act on information. 2. Decision making process Good decision making depends on developing good goals and objectives.

E. Processes of Organizations... 3. Performance Evaluation The purpose of performance evaluation is to decide on rewards, identify training needs, and providing feedback to employers. 4. Socialization and Career Process Bring into congruence the individual aware of the expectations of the organization.

Organizational Change and Development Planned attempt by management to improve individual and group performance by altering behavior, structure, and processes.

Managing Individual, Groups and Organizational Effectiveness

The ways of winners T.J. Peters and R.H. Waterman’s In Search of Excellence 8 Basics of Management Excellence

1. A bias for action (Quick Action) Based on four activities Emphasize informal, open, and intensive communication throughout the organization Corporate winners maintain “chunking,” small, action-oriented, and informal groups that generate ideas, develop them, and solve problems. These companies emphasize experimenting and trying out new ideas. Winners encourage simplicity.

2. Staying close to the needs and problems of customers. Customer service is an obsession with these companies. Use of toll free numbers and access to upper management by customers.

3. Autonomy and Entrepreneurship Give employees the resources to try out new ideas. Encourage competition between divisions Maintain “Championing Systems”

1. The Product Champion 2. Executive Champion 3. The Godfather These systems are characterized by individuals who assume one of three roles. 1. The Product Champion the person with a specific product idea. 2. Executive Champion typically a former product champion who protects the idea from barriers. 3. The Godfather an aging leader who provides the role model for championing.

4. People as the Key to Productivity Winners emphasize their people through intensive training, and by developing caring relationships with employees. They avoid quick layoffs etc.

5. Simple Organizations Excellent companies strive to keep organizational structure simple by minimizing the size of corporate staff and using a product division for structure.

6. Strong Corporate Culture Maintain strong corporate culture by basing it on clear, well understood guiding values.

7. Loose and Tight Control Emphasize “Loose” principle such as autonomy, entrepreneurship, and innovation by employees, yet maintain a tight system of discipline, values, and objectives.

8. Stick to the Basics Winners restrict their business activities to things they know best.

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