Introduction: Organizational Behavior in Changing Times Chapter 1 Nelson & Quick Introduction: Organizational Behavior in Changing Times Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Organizational Behavior The study of individual behavior and group dynamics in organizations

Organizational Behavior: Dynamics in Organizations Psychosocial Interpersonal Behavioral Organizational Behavior

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

Organizational vs. Individual Point of View Clockworks or Snake pit? Human Behavior in the Organization 4

Internal/External Perspective of Human Behavior Internal Perspective External Perspective Understand behavior in terms of Thoughts,feelings, past experiences, and needs External events, environmental forces, & behavioral consequences Explain behavior by examining Individuals’ history & personal value system Surrounding external events & environmental forces Each perspective has produced motivational & leadership theories.

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

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 intellectual and mechanical processes used by an organization to transform inputs into products or services that meet organizational goals (ch02)

Open Systems View of Organization Task environment: Competitors Unions Regulatory agencies Clients Structure Inputs: Material Capital Human Outputs: Products Services Task Technology 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 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 1920s and 1930s 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 & services Formal & Informal Elements of Organizations Informal organization (covert) Beliefs & assumptions Perceptions & attitudes Values Feelings, such as fear, joy anger, trust, & hope Group norms Informal leaders Social Surface Caterpillar is the world’s largest manufacturer of construction and mining equipment. What does Caterpillar reveal about its formal and informal organization at the “About Cat” section of the company’s Web site?

U.S. Gross Domestic Product Total $10.4 Trillion 7% 12% 9% 8% 44% 20%

Five Focus Organizations Brinker International Harley-Davidson Hewlett-Packard Patagonia American Heart Association

The Challenge of Change Too much change = chaos Too little change = stagnation How do you view change? Read more about specific issues concerning change and globalization at the Globalist Online. Search for articles and information related to the four main themes of change in contemporary organizations. Threat Opportunity

International Competition in Business Driving forces creating and shaping change at work Globalization Technology Success will require: positive response to the competition in the international marketplace responsiveness to ethnic, religious, and gender diversity in the workforce Diversity Ethics

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

Quality Cannot be optimized Is not a fad Is not an end in itself 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? YES means the idea should improve overall quality

Total Quality Management The total dedication to continuous improvement and to customers so that the customers’ needs are met and their expectations exceeded

CEOs Advance Total Quality by: Engaging in participative management Being willing to change everything Focusing quality efforts on customer service Including quality as a criterion in reward systems Improving the flow of information regarding quality-improvement successes or failures Being actively & personally involved in quality efforts The Malcolm Baldridge National Quality Award rewards quality and performance excellence in organizations. Awards are presented to organizations that have substantially benefited the economic or social well-being of the United States through total quality improvement. Learn more about the criteria for performance excellence and the award recipients who achieved the association’s high standards.

Seven Categories in the Malcolm Baldrige National Quality Award Examination Leadership Information and analysis Strategic quality planning Human resource utilization Quality assurance of products & services Quality results Customer satisfaction

Challenges to Managing Organizational Behavior 1. Increasing globalization of organizations’ operating territory 2. Increasing diversity of organizational workforces 3. Continuing technological innovation with its companion need for skill enhancement 4. Continuing demand for higher levels of moral & ethical behavior at work

Learning about Organizational Behavior Mastery of basic objective knowledge* Application of knowledge and skills Development of specific skills** and abilities * Objective knowledge knowledge that results from research and scholarly activities ** Skill development the mastery of abilities essential to successful functioning in organizations

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)

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 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 Trust & Security Knowledge

Watchwords for Organizations in These Changing Times