© 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. Learning Outcome Define organizational behavior. 1 Clockworks or Snake pit?

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

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

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

© 2009 Cengage Learning. All rights reserved. External 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 Each perspective has produced motivational & leadership theories. Explain behavior by examining surrounding external events and environmental forces

© 2009 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

© 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

Open Systems View of Organization Outputs: Products Services Inputs: Material Capital Human Task environment: Competitors Unions Regulatory agencies Clients 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 Reprinted by permission of James G. March People (Actors) Structure Task Technology

© 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 Hawthorne Studies: studies conducted during the 1920’s and 1930’s that suggested the importance of the informal organization

© 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