Prepared by Charlie Cook The University of West Alabama © 2010 South-Western, a part of Cengage Learning All rights reserved. An Overview of Organizational Behavior Chapter 1

1–2 © 2009 South-Western, a part of Cengage Learning Chapter Learning Objectives Define organizational behavior. Identify the functions that comprise the management process and relate them to organizational behavior. Relate organizational behavior to basic managerial roles and skills. Describe contemporary organizational behavior. Discuss contextual perspectives on organizational behavior. After studying this chapter you should be able to:

1–3 © 2009 South-Western, a part of Cengage Learning What is Organizational Behavior? Organizational behavior (OB) is the study of:  Human behavior in organizational settings  The interface between human behavior and the organization  The organization itself Stockbyte at Getty Images®

1–4 © 2009 South-Western, a part of Cengage Learning Figure 1.1The Nature of Organizational Behavior

1–5 © 2009 South-Western, a part of Cengage Learning The Importance of Organizational Behavior Organizations can have a powerful influence on our lives:  Most people are born and educated in organizations  Most people acquire most of their material possessions from organizations  Most people die as members of organizations  Many of our activities are regulated by governmental organizations  Most people spend most of their lives in organizations

1–6 © 2009 South-Western, a part of Cengage Learning Why Study OB? Studying organizational behavior can clarify factors that affect how managers manage by:  Describing the complex human context of organizations  Defining the associated opportunities, problems, challenges, and issues  Isolating important aspects of the manager’s job  Offering specific perspectives on the human side of management

1–7 © 2009 South-Western, a part of Cengage Learning Why Study OB? (cont’d) Studying OB helps managers understand:  The behaviors of others in the organization Personal needs, motives, behaviors, feelings and career dynamics Attitudinal processes, individual differences, group dynamics, inter group dynamics, organization culture, power, and political behavior  Interactions with people outside of the organization and other organizations  The environment, technology, and global issues

1–8 © 2009 South-Western, a part of Cengage Learning Organizational Behavior and the Management Process Management Functions  Planning  Organizing  Leading  Controlling Resources Used by Managers  Human  Financial  Physical  Information

1–9 © 2009 South-Western, a part of Cengage Learning Functions of Management PlanningDetermining an organization’s desired future position and the best means of getting there OrganizingDesigning jobs, grouping jobs into units, and establishing patterns of authority between jobs and units LeadingGetting organizational members to work together toward the organization’s goals ControllingMonitoring and correcting the actions of the organization and its members to keep them directed toward their goals

1–10 © 2009 South-Western, a part of Cengage Learning Figure 1.2Basic Managerial Functions

1–11 © 2009 South-Western, a part of Cengage Learning Organizational Behavior and the Manager’s Job Basic Managerial Roles  Interpersonal  Informational  Decision-Making Stockbyte at Getty Images®

1–12 © 2009 South-Western, a part of Cengage Learning Table 1.1Important Managerial Roles

1–13 © 2009 South-Western, a part of Cengage Learning Critical Managerial Skills TechnicalSkills necessary to accomplish specific tasks within the organization InterpersonalSkills used to communicate with, understand, and motivate individuals and groups ConceptualSkills used in abstract thinking DiagnosticSkills to understand cause-effect relationships and to recognize optimal solutions to problems

1–14 © 2009 South-Western, a part of Cengage Learning Figure 1.3Managerial Skills at Different Organizational Levels

1–15 © 2009 South-Western, a part of Cengage Learning Contemporary Organizational Behavior Characteristics of the Field  Interdisciplinary in focus  Descriptive in nature Basic Concepts of the Field 1.Individual processes 2.Interpersonal processes 3.Organizational processes/characteristics

1–16 © 2009 South-Western, a part of Cengage Learning Figure 1.4 The Framework for Understanding Organizational Behavior

1–17 © 2009 South-Western, a part of Cengage Learning Contemporary Organizational Behavior Contextual Perspectives on Organizational Behavior Systems Perspective Situational Perspective Contingency Interactional

1–18 © 2009 South-Western, a part of Cengage Learning The Systems Perspective System  An interrelated set of elements that function as a whole—inputs are combined/transformed by managers into outputs from the system. Value of the Systems Perspective  Underscores the importance of an organization’s environment  Conceptualizes the flow and interaction of various elements of the organization.

1–19 © 2009 South-Western, a part of Cengage Learning The Situational Perspective  Recognizes that most organizational situations and outcomes are influenced by other variables The Universal Model  Presumes a direct cause-and-effect linkage between variables  Complexities of human behavior and organizational settings make universal conclusions virtually impossible

1–20 © 2009 South-Western, a part of Cengage Learning Figure 1.5The Systems Approach to Organizations

1–21 © 2009 South-Western, a part of Cengage Learning Figure 1.6Universal Versus Situational Approach

1–22 © 2009 South-Western, a part of Cengage Learning Interactionalism: People and Situations Interactionalist Perspective  Focuses on how individuals and situations interact continuously to determine individuals’ behavior  Attempts to explain how people select, interpret, and change various situations.

1–23 © 2009 South-Western, a part of Cengage Learning Figure 1.7The Interactionalist Perspective on Behavior in Organizations

1–24 © 2009 South-Western, a part of Cengage Learning Managing for Effectiveness Managers work toward accomplishing the various goals (outcomes) that exist at specific levels in an organization:  Individual-level outcomes  Group-level outcomes  Organizational-level outcomes

1–25 © 2009 South-Western, a part of Cengage Learning Figure 1.8Managing for Effectiveness

1–26 © 2009 South-Western, a part of Cengage Learning Organizational Behavior in Action Based on your reading of the chapter opening case:  Why is employee morale at Microsoft so low despite excellent pay, benefits, and working conditions?  Which basic managerial roles and skills does Microsoft’s Lisa Brummel need to use to convince her fellow Microserfs that the organization really cares about them?  At which level in the Microsoft organization are the most critical problems occurring?