MGMT 620 ORGANIZATIONAL BEHAVIOR IndividualTeamDepartment Facility, Plant, etc. DivisionOrganization ORGANIZATIONAL THEORY

ManagementManagement ä The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources

OrganizationOrganization ä A formally structured collection of individuals working toward common goals. ä A social entity that is goal directed, designed as deliberately structured and coordinated activity systems, and linked to the external environment.

Why Study Organizations? OrganizationalResearch Understandorganizationalbehavior Predictorganizationalbehavior Influenceorganizationalbehavior

Scientific Approach ä Seeking information in a ä systematic and ä unbiased manner

Scientific Approach General Methods of Behavioral Research--- A Continuum: Case / Case / Natural Field Lab. Natural Field Lab.

Scientific Approach THE FURTHER TO THE RIGHT: -The higher the control of the Independent Variable(s). -The higher the precision in measuring the Dependent Variable(s). -The lower the realism.

Laboratory Experiment “Impressions of Organizational Responses to Whistleblower Accusations” – Decker & Calo Dependent Variables: 1) Respondents’ ratings of Firm 2) Respondents’ ratings of Whistleblower Independent Variables: 1) Firm Admits Guilt vs. Firm Denies 2) Whistleblower is Fired vs. Not Fired 3) Company Product: Tires vs. Paint 4) Customer: Individuals vs. Govt. Agencies

People Money Machines Materials Doing the right things Efficiency = Getting the most out of resources Effectiveness = Choosing worthwhile goals and achieving them to the fullest Doing things right

The Four Functions of Mgmt Planning Select goals & ways to attain them Organizing Assign responsibility for tasks Leading Use influence to motivate Controlling Monitor activities & make corrections

Levels of Management Top Managemen t Middle Lower (Supervisory, Operational, First-Line) Management Examples: President, CEO, Executive V-P Examples: Regional Manager, Plant Manager Examples: Account Manager, Office Manager

How Do You Learn to Manage ? (Based on a study of successful managers at Honeywell) ä 50% from job experience ä 30% from other persons ä 20% from education & training

Effective Managers’ Attributes ä Conceptual, Technical, Human Skills ä Self-Objectivity ä Analytic Thinking ä Creative Thinking ä Oral Communication ä Written Communication ä Resistance to Stress ä Tolerance of Uncertainty

Classical Perspective (1900+) ä Emphasized a rational, scientific approach to study of management and sought to make workers and organizations like efficient operating machines

Classic. Perspective Categories ä Scientific Management ä Frederick Taylor ä Frank and Lillian Gilbreth ä Bureaucratic Organizations (rational) ä Max Weber ä Administrative Principles (rational) ä Henri Fayol

Characteristics of Classical Mgmt. Scientific Bureaucratic Administrative Emphases Rules Rationality Emphases Rules Rationality Focus Whole organization Benefits Fairness Efficiency Drawbacks Rigidity Slowness Emphases Training routines Financial motivation Emphases Training routines Financial motivation Focus Workers Benefits Productivity Efficiency Drawbacks Overlooks social needs Emphases Management functions Chain of Command Emphases Management functions Chain of Command Focus Managers Benefits Clear structure Guiding Principles Efficiency Drawbacks Oversimplified, doesn’t consider environment

Shift in Management Thinking Following the Hawthorne Studies FromTo Classical Management Humanistic Approach - Rationality - Efficiency - Standardization Recognition of importance of workers’ Social Environment

Humanistic Perspective (1920s+) ä Behavior Science Appr. ä e.g., Hawthorne Studies ä Human Relations Approach ä Emphasizes enlightened treatment of workers ä Human Resources Appr. ä Emphasizes power sharing between managers and employees ä e.g., Theory Y

Management Science Perspective (1940+) ä Involves Mathematics, Computers ä Examples: ä Forecasting ä Inventory control ä Scheduling ä Break-even analysis

Systems Theory (1950+) ä How the parts fit together ä How the organization interacts with its environment

Systems Theory InputsTransformation Outputs Raw materials * Human resources * Information * Financial resources * Raw materials * Human resources * Information * Financial resources Products/services * Profits/losses * Employee satisfaction * Products/services * Profits/losses * Employee satisfaction

Contingency View (1960+) ä Integrates many of the other views ä “No one best way to manage - the best way depends on the situation (e.g., have few rules in a small organization, many rules in a large one)

Current Challenges in Organizations Global Competition Global Competition Organizational Renewal Organizational Renewal Reengineering, Virtual Orgs. Reengineering, Virtual Orgs. Strategic Advantage Strategic Advantage Total Quality, Knowledge Management, Total Quality, Knowledge Management, Employee Relationships Employee Relationships Team-based Orgs., Inspirational Leadership Team-based Orgs., Inspirational Leadership Diversity (incl. Global) Diversity (incl. Global) Ethics and Social Responsibility Ethics and Social Responsibility

Contemporary Organizational Trends to Meet the Challenges ä Companies stressing vision and values ä Organizations “knowledge-based”, stressing “life-long learning” ä Quality a forethought, not afterthought ä Companies smaller ä Organizations “flatter” ä Structures more team-based and “boundaryless”

Contemporary Organizational Trends (continued) ä Employees more empowered (Managers moving from being bosses to being facilitators) ä Companies changing from monocultural to multicultural

Evolution of the 21st-Century Manager Past ManagersFuture Managers Order giver, privileged elite, manipulator, controller Facilitator, team member, teacher, advocate, sponsor, coach Periodic learning, narrow specialist Continuous life-long learning, generalist with multiple specialties Time, effort, rank Skills, results Primary Role Learning & Knowledge Compensation Criteria Cultural Orientation Monocultural, monolingual Multicultural, multilingual

Evolution of the 21st-Century Manager (cont.) Past ManagersFuture Managers Formal AuthorityKnowledge (technical interpersonal) Potential problemPrimary resource Afterthought Forethought Limited input for individual decisions Multicultural, multilingual Primary Role View of People Ethical Considerations Decision Making Style Primary Communication Pattern Vertical Multidirectional

Evolution of the 21st-Century Manager (cont.) Past Managers Future Managers Nature of Interpersonal Relationships Competitive (win-lose) Cooperative (win-lose) Handling of Power and Key Information Hoard and restrict access Share and broaden access Approach to Change ResistFacilitate