© 2009 Cengage Learning. All rights reserved. Learning Outcomes 2, 3 Identify four action steps for responding positively in times of change. Identify the important system components of an organization. © 2009 Cengage Learning. All rights reserved.

© 2009 Cengage Learning. All rights reserved. Reactions to Change 1. Rigid and Reactive 2. Open and Responsive © 2009 Cengage Learning. All rights reserved.

Open Systems View of Organization Task environment: Competitors Unions Regulatory agencies Clients Structure Inputs: Material Capital Human Outputs: Products Services Task Technology People (Actors) 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 Organizational Boundary © 2009 Cengage Learning. All rights reserved.

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, and the overall organization are designed at the macro level Technology – the tools, knowledge, and/or techniques used to transform inputs into outputs © 2009 Cengage Learning. All rights reserved.

© 2009 Cengage Learning. All rights reserved. Learning Outcome 4 Describe the formal and informal elements of an organization. © 2009 Cengage Learning. All rights reserved.

Chapter 1 Organizational Behavior and Opportunity 1 Define organizational behavior. 2 Identify four action steps for responding positively in times of change. 3 Identify the important system components of an organization. 4 Describe the formal and informal elements of an organization. 5 Understand the diversity of organizations in the economy. 6 Evaluate the opportunities that change creates for organizational behavior. 7 Demonstrate the value of objective knowledge and skill development in the study of organizational behavior. © 2009 Cengage Learning. All rights reserved.

© 2009 Cengage Learning. All rights reserved. Learning Outcome 1 Define organizational behavior. © 2009 Cengage Learning. All rights reserved.

Organizational Behavior The study of individual behavior and group dynamics in organizations © 2009 Cengage Learning. All rights reserved.

Organizational Behavior: Dynamics in Organizations Psychosocial Organizational Behavior Interpersonal Behavioral © 2009 Cengage Learning. All rights reserved.

Organizational Variables that Affect Human Behavior Organizational Design Jobs Work Performance Appraisal Structure Communication Human Behavior © 2009 Cengage Learning. All rights reserved.

External Perspective Internal 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 Each perspective has produced motivational & leadership theories. © 2009 Cengage Learning. All rights reserved.

Anthropology Management Sociology 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 © 2009 Cengage Learning. All rights reserved.

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 © 2009 Cengage Learning. All rights reserved.

Formal & Informal Elements of Organizations Formal organization (overt) Goals and objectives Policies and procedures Job descriptions Financial resources Authority structure Communication channels Products and services Social Surface Informal organization (covert) Beliefs and assumptions Perceptions and attitudes Values Feelings, such as fear, joy anger, trust, and hope Group norms Informal leaders Formal & Informal Elements of Organizations © 2009 Cengage Learning. All rights reserved.

© 2009 Cengage Learning. All rights reserved. Learning Outcome 5 Understand the diversity of organizations in the economy. © 2009 Cengage Learning. All rights reserved.

U.S. Gross Domestic Product Total $10.9 Trillion © 2009 Cengage Learning. All rights reserved.

© 2009 Cengage Learning. All rights reserved. Learning Outcomes 6, 7 Evaluate the opportunities that change creates for organizational behavior. Demonstrate the value of objective knowledge and skill development in the study of organizational behavior. © 2009 Cengage Learning. All rights reserved.

Global Competition in Business Four challenges to managers relating to change in organizations Globalization Technological Innovation Workplace Diversity Ethics and Character © 2009 Cengage Learning. All rights reserved.

© 2009 Cengage Learning. All rights reserved. [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 © 2009 Cengage Learning. All rights reserved.

© 2009 Cengage Learning. All rights reserved. Six Sigma A high-performance system to execute business strategy that is customer-driven, emphasizes quantitative decision making, and places a priority on saving money © 2009 Cengage Learning. All rights reserved.

Contrasting Six Sigma and Total Quality Management TQM Executive ownership Self-directed work teams Business strategy execution system Quality initiative Truly cross-functional Largely within a single function Focused training with verifiable return on investment No mass training in statistics and quality return on investment Business results oriented Quality oriented Source: Matt Barney. “Motorola’s Second Generation.” Six Sigma Forum Magazine (May 2002), 13.

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 © 2009 Cengage Learning. All rights reserved.

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 Copyright ©2009 by Cengage Learning. All rights reserved Assessments & Exercises

Learning from Structured Activity Individual or group structured activity (e.g., group decision activity) Systematic review of the structured activity (e.g., compare individual & group results) New or modified knowledge or skills (e.g., consensus group decisions are better) Conclusions based on the systematic review (e.g., the group did better) Copyright ©2009 by Cengage Learning. All rights reserved

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 © 2009 Cengage Learning. All rights reserved.

AFFECTING MANAGERS TRENDS Industrial restructuring Increased amount and availability of information Need to attract and retain the best employees Need to understand human and cultural differences Rapid shortening of response times in all aspects of business Copyright ©2009 by Cengage Learning. All rights reserved