Dr. Rick D. Hackett Hong Kong University of Science & Technology Department of Management of Organizations College of Business & Management Management of Organizations (OB) MGTO121

Chapter 1 Management of Organizations

Agenda/Road Map What is Organizational Behaviour? What is Organizational Behaviour? – OB, Org. Strategy, HR Strategy and Org. Culture Subject Matter of OB Subject Matter of OB Science versus intuition Science versus intuition Contributing Disciplines to OB Contributing Disciplines to OB OB Challenges; Goals OB Challenges; Goals Relevancy of OB to Management Relevancy of OB to Management

Raw Materials Financial Capital Human Resources Intellectual Capital INPUT Transformation of Resources THROUGHPUT Products Services OUPUT Organizational Cycle

Overview: Strategic Role of HR HR Planning Recruitment Assessment Orientation Training Selection Performance Management Career Planning Sustaining Compensation & Rewards Work Environment Leadership Non work Environment HR Strategy

What do Managers Do? Plan: define goals, set strategy, develop plans, coordinate Plan: define goals, set strategy, develop plans, coordinate Organize: What to do, Who does what? How to coordinate efforts? Organize: What to do, Who does what? How to coordinate efforts? Lead: Motivate, direct, communicate, resolve Lead: Motivate, direct, communicate, resolve Control: mentoring, correcting, directing Control: mentoring, correcting, directing

Organizational Behaviour Focus on: Focus on: – Individuals – Groups – Structure For For – Improving organizational effectiveness – Promoting individual well-being

Intuition Vs. Systematic Study Systematic study of behaviour, employing appropriate controls, facilitates prediction Systematic study of behaviour, employing appropriate controls, facilitates prediction Intuition, while sometimes helpful, is often misleading. Intuition, while sometimes helpful, is often misleading. Is what we know “intuitively” supported under more rigorous (scientific) study? Is what we know “intuitively” supported under more rigorous (scientific) study?

Scientific Terms Independent Variable Independent Variable Dependent Variable Dependent Variable Control Variable Control Variable

Key Dependent Variables in OB Productivity Productivity Absenteeism Absenteeism Turnover Turnover Organizational citizenship Organizational citizenship Job satisfaction Job satisfaction

Key Independent Variables In OB (Individual-level) Demographics Demographics Work values Work values Experience Experience Leadership style Leadership style Work design Work design Personality Personality

Key Independent Variables in OB: (Group-level) Group design Group design Group incentives Group incentives Organizational culture Organizational culture Organizational leadership Organizational leadership Organizational reward systems Organizational reward systems

Contingency Variables: Few Absolutes The impact of one variable on another is contingent upon some third variable – Leadership style that is most effective is contingent upon organizational and societal culture

The Study of Organizational Behavior Individual Group Organization Study of OrganizationalBehavior Social Psychology Political Science Anthropology Psychology Sociology

Challenges and Opportunities Globalization (overseas transfers) Globalization (overseas transfers) Workforce diversity (gender, race, ethnicity); Workforce diversity (gender, race, ethnicity); – European Union; Germany, Portugal, Italy, France Improving Quality and Productivity Improving Quality and Productivity --TQM; Re-engineering

OB Challenges: (Continued) Improving People Skills Improving People Skills Empowering People Empowering People Coping with ongoing change Coping with ongoing change Improving ethical behaviour Improving ethical behaviour

Goals of Organizational Behavior Explanation-“Why did this happen?” Prediction-“What might be the impact of the change?” Control-“How can I ensure I obtain the results I am seeking?”

Relevancy of OB to Managers: (Plan, Organize, Lead Control) Understanding enhances prediction Understanding enhances prediction Prediction enhances influence Prediction enhances influence Influence directs and enhances behaviour Influence directs and enhances behaviour Behaviour results in performance Behaviour results in performance Performance impacts productivity Performance impacts productivity Productivity enhances organizational well- being Productivity enhances organizational well- being

What Is Productivity? Goal Achievement Goal Achievement – Effectiveness – Efficiency

Context OUR FOCUS: – PEOPLE UTILIZATION AND RETENTION IN ORGANIZATIONS; AND, A SUPPORTING ORGANIZATIONAL STRUCTURE – EFFECTIVE MANAGEMENT OF ORGANIZATIONS