Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Organizational Behavior and Opportunity Chapter 1 Organizational Behavior Nelson & Quick 6 th edition

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Clockworks Human Behavior in Organizations or Snake pit? Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Organizational Behavior Organizational Behavior- Organizational Behavior- the study of individual behavior and group dynamics in organizations Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved A Time of Challenge and Change Leads toOpportunities Leads to Opportunities The call to competition, contest or battle The transformation or modification of an organization and/or its stakeholders Favorable times or chances for progress and advancement

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Organizational Behavior: Dynamics in Organizations BehavioralPsychosocialInterpersonal Organizational Behavior

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Organizational Variables that Affect Human Behavior Human Behavior Organizational Structure Organizational Design Performance Appraisal Communication Work Design Jobs

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Understanding Human Behavior Thoughts FeelingsExperiences Internal Perspective: Examining individuals’ history & personal values External Perspective: Examining surrounding external events & environmental forces Environmental Forces External Events Behavioral Consequences Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Psychology the science of human behavior Management the study of overseeing activities and supervising people in organizations 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 Engineering the applied science of energy & matter Sociology the science of society Interdisciplinary Influences on Organizational Behavior

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Positive Reactionsto Change Positive Reactions to Change Not Rigid and Reactive Open and Responsive Have a positive attitude Ask questions Listen to the answers Be committed to success Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Components of an Organization Task - Task - an organization’s mission, purpose, or goal for existing People - People - the human resources of the organization Structure - 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 - Technology - the tools, knowledge, and/or techniques used to transform inputs into outputs

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Open Systems View of Organization Outputs: Products Services Inputs: Material Capital Human Task environment: Competitors Unions Regulatory agencies Clients 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 Reprinted by permission of James G. March People (Actors) Structure Task Technology Organizational Boundary

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Formal vs. Informal Organization Formal Organization - Formal Organization - the official, legitimate, and most visible part of the system Informal Organization - Informal Organization - the unofficial and less visible part of the system Hawthorne Studies: Hawthorne Studies: studies conducted during the 1920’s and 1930’s 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 and services Social Surface Informal organization (covert) Beliefs & assumptions Perceptions & attitudes Values Feelings, such as fear, joy anger, trust, & hope Group norms Informal leaders Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved U.S. Gross Domestic Product Total $13.2 Trillion 41% 12% 8% 7% 20%

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Six Focus Organizations Caribou Coffee Genetech, Inc. Google The Timberland Company American Express (AMEX) Toyota Motor Corporation

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Global Competition in Business Four challenges to managers relating to change in organizations Globalization Workforce Diversity Ethics & Character Technological Innovation

Copyright ©2009 South-Western, a division of 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

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved 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?

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Six Sigma Six Sigma - 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

Contrasting Six Sigma and Total Quality Management Six Sigma TQM Executive Ownership Business strategy execution system Truly cross functional Focused training with verifiable return on investment Business results oriented Source: Matt Barney. “Motorola’s Second Generation.” Six Sigma Forum Magazine (May 2002), 13. Self-directed work teams Quality initiative Largely within a single function No mass training in statistics and quality Quality orientated Return on investment Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Challenges to Managing Organizational Behavior Increasing globalization of organizations’ operating territory Increasing diversity of organizational workforces Continuing demand for higher levels of moral & ethical behavior at work Continuing technological innovation with its companion need for skill enhancement

Learning about Organizational Behavior Learning Activity Development of specific skills** and abilities Mastery of basic objective knowledge* Application Of knowledge And skills The Real World Theories, Research, Articles Exercises, Questionnaires Organizational & Work Context Science Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved You Pedagogical Features

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Skill Development ObjectiveKnowledge Knowledge that results from research and scientific activities The mastery of abilities essential to successful functioning in organizations

Learning from Structured Activity Conclusions based on the systematic review (e.g., the group did better) 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) Individual or group structured activity (e.g., group decision activity) Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Three Assumptions Required for Learning from Structured Activity 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

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved 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 PREDICTABILITY

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Knowledge = Power in Understanding Trends InformationTheoriesFacts Knowledge Base

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Chapter 1: Reflect & Discuss 8 Mile Video Clip What to Watch for and Ask Yourself What is your perception of the quality of Jimmy’s job and his work environment? What is the quality of Jimmy’s relationship with Manny (Paul Bates), his foreman? Does it change? If it does, why? How would you react to this type of work experience?