Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Introduction to the Field of Organizational Behavior Chapter One Dr. Jamshaid Ahmed Chapter One Dr. Jamshaid Ahmed

1-2 Learning Objectives 1. Explain what organizational behavior means. 2. Summarize the research methods of organizational behavior. 3. Identify the potential advantages of organizational behavior knowledge. 4. Explain key events in the history of organizational behavior. 5. Describe how focusing on the human element can contribute to organizational and managerial effectiveness. 6. Understand how a person develops organizational skills.

1-3 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 1–31–3 The Meaning of Organizational Behavior Organizational behavior (OB) is  the study of human behavior in the workplace,  the interaction between people and the organization,  and the organization itself. Organizational behavior’s major goals are to  explain, predict, and control behavior.

1-4 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 1–41–4 Benefits of Studying Organizational Behavior  Develop skills to function effectively in the workplace.  Grow personally through insight into human behavior.  Enhance overall organizational effectiveness  Sharpen and refine common sense.

1-5 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 1–51–5 Key Developments in OB History The Human Relations Movement  Based on belief that managerial practices, morale, and productivity are strongly linked and that the proper working environment enhances worker capabilities.  Douglas McGregor — Theory X –Managers assume people dislike work, avoid responsibility, lack ambition, and need close supervision. — Theory Y –Managers assume people enjoy work, accept responsibility, are innovative, and are self-controlling.

1-6 Key Managerial Practices of Successful Organizations 1. Employment security. 2. High standards in selecting personnel. 3. Extensive use of self- managed teams and decentralized decision making. 4. Comparatively high compensation based on performance. 5. Extensive employee training. 6. Reduction of status differences between higher management and other employees. 7. Information sharing among managers and other workers. 8. Promotion from within. Source: Jeffery Pfeffer, The Human Equation (Boston, MA: Harvard Business School Press, 1998), pp. 64–98; Joanne Cole, Interview with Jeffery Pfeffer: “Putting People First,” HRFOCUS, April 1998, pp. 11–12; Pfeffer, “Producing Sustainable Competitive Advantage through the Effective Management of People,” Academy of Management Executive, February 1995, pp. 64–65. EXHIBIT 1-1

1-7 John Lassiter Chief Creative Officer of Pixar and Disney Organizational Behavior and Organizations Organizational behavior  The study of what people think, feel, and do in and around organizations Organizations  Groups of people who work interdependently toward some purpose — Structured patterns of interaction — Coordinated tasks — Have common objectives (even if not fully agreed)

1-8 Why Study Organizational Behavior? OB theories help you to make sense of the workplace  Question and rebuild your personal theories for work  Important -- much of our time is in organizations OB provides knowledge/tools to work with others  Helps you to get things done OB improves an organization’s financial health

1-9 Intellectual Capital Relationship Capital Value derived from satisfied customers, reliable suppliers, etc. Structural Capital Knowledge captured in systems and structures Human Capital Knowledge that people possess and generate

1-10 Organizational Learning Processes Applying knowledge to organizational processes in ways that improves the organization’s effectiveness Distributing knowledge throughout the organization Extracting information and ideas from its environment as well as through insight KNOWLEDGE ACQUISITION KNOWLEDGE ACQUISITION KNOWLEDGE SHARING KNOWLEDGE SHARING KNOWLEDGE USE KNOWLEDGE USE Examples in practice Hiring skilled staffPosting case studies on intranet Giving staff freedom to try out ideas

1-11 Organizational Memory The storage and preservation of intellectual capital Retain intellectual capital by:  Keeping knowledgeable employees  Transferring knowledge to others  Transferring human capital to structural capital Successful companies also unlearn

1-12 High Performance Work Practices (HPWPs) HPWPs are internal systems and structures that are associated with successful companies 1. Employees important for competitive advantage 2. Value of employees increased through specific practices. 3. Maximum benefit when org practices are bundled

1-13 High Performance Work Practices No consensus, but HPWPs include:  Employee involvement and work autonomy (and their combination as self-directed teams).  Employee competence (training, selection, etc.).  Performance-based rewards

1-14 Stakeholders: Values and Ethics We rely on values and ethics to prioritize stakeholder interests Values  Stable, evaluative beliefs, guide preferences for outcomes or courses of action in various situations Ethics  Moral principles/values, determine whether actions are right/wrong and outcomes are good or bad Lockheed Martin

1-15 Stakeholders and CSR Stakeholder perspective includes corporate social responsibility (CSR)  Benefit society and environment beyond the firm’s immediate financial interests or legal obligations  Organization’s contract with society Triple bottom line  Economy, society, environment Lockheed Martin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Types of Individual Behavior Introduction to the Field of Organizational Behavior

1-17 Types of Individual Behavior Organizational Citizenship Performance beyond the required job duties Task Performance Goal-directed behaviors under person’s control more

1-18 Types of Behavior in Organizations (con’t) Maintaining Work Attendance Attending work at required times Joining/staying with the Organization Goal-directed behaviors under person’s control Counterproductive Work Behaviors Voluntary behavior that potentially harms the organization

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Contemporary Challenges for Organizations Introduction to the Field of Organizational Behavior

1-20 Globalization Economic, social, and cultural connectivity with people in other parts of the world Higher connectivity (and interdependence) due to better information technology and transportation systems Globalization has many effects on organizations, as discussed throughout this book  e.g., leadership, diversity, conflict, org structures

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Dynamics of Behavior in Organizations

Dynamics of Behavior in Organizations Employees and managers bring their individual differences to work each day Differences in attitudes, values, personality, and behavior influence  how people interpret an assignment,  whether they like to be told what to do  how they handle challenges  how they interact with others Manager’s Challenge: Quick Eagle Networks Managers need to understand the way individuals & groups act

Dynamics of Behavior in Organizations Attitudes Personality Perception Learning Stress management