Michael A. Hitt C. Chet Miller Adrienne Colella a strategic approach to organizational behavior

K NOWLEDGE O BJECTIVES  Define organizational behavior and explain the strategic approach to OB.  Provide a formal definition of organization.  Describe the nature of human capital.  Discuss the conditions under which human capital is a source of competitive advantage for an organization.  Describe positive organizational behavior and explain how it can contribute to associates’ productivity.  Explain the five characteristics of high-involvement management and the importance of this approach to management. ?

O RGANIZATIONAL B EHAVIOR Actions of individuals and groups in an organizational context.

M ANAGING O RGANIZATIONAL B EHAVIOR  Actions focused on ;  acquiring  developing  applying knowledge and skills of people.

S TRATEGIC OB A PPROACH  Organizing and managing people’s knowledge and skills to;  implement strategy  gain competitive advantage

S TRATEGIC A PPROACH Adapted from Exhibit 1-1: Factors and Outcomes of a Strategic Approach to Organizational Behavior Organizational Factors Productivity of Individuals and Groups Satisfaction of Individuals and Groups Organizational Success Individual Factors Interpersonal Factors

S ENIOR M ANAGERS Activities Skills Discuss – vision, strategy, and other major issues Conceptualizing Communicating Understanding the perspectives of others Help middle managers define or redefine roles and manage conflict Listening Conflict management Negotiating Motivating Create and maintain the organization’s culture Interpersonal influence

M IDDLE M ANAGERS Activities Skills Champion strategic ideas and help firm to remain adaptive Networking Communicating Influencing Process data and information for use by other individuals Analyzing Communicating Deliver strategic initiatives to lower-level managers Communicating Motivating Understanding values Managing Stress

L OWER - LEVEL M ANAGERS Activities Skills Coach associates Teaching Listening Understanding personalities Managing stress Remove obstacles for associates Deal with associates personal problems Negotiating Influencing others Counseling Understanding personalities Design jobs, team structures, and reward systems Analyzing Negotiating Group dynamics

I MPORTANCE OF U NDERSTANDING O RGANIZATIONAL B EHAVIOR  Enhance our ability to leverage people’s potential within the organization.  Gain confidence in empowering associates to work toward solving problems.  Integrate behavioral science knowledge to organizational applications. Behavioral Sciences: Psychology Social psychology Sociology Economics Cultural anthropology

‘O RGANIZATION ’ D EFINED : “Collection of individuals forming a coordinated system of specialized activities for the purpose of achieving certain goals over some extended period of time.”

C OMMON F EATURES OF O RGANIZATIONS  Network of individuals  System  Coordinated activities  Division of labor  Goal orientation  Continuity over time, regardless of individual membership change

H UMAN C APITAL Sum of skills, knowledge, and general attributes of people in the organization.

H UMAN C APITAL AS A S OURCE OF C OMPETITIVE A DVANTAGE  Value  Individuals capable of supporting strategy for competing.  Rareness  Unique skills and talents of individuals.  Imitability  Extent that individual skills and talents can be copied. Competitive Advantage: Able to perform some aspect of work better than competition offering customers added value.

C OMPETITIVE A DVANTAGE P OTENTIAL Are human resources in the firm... ValuableRare Difficult to imitate Competitive implicationsPerformance No--- Competitive Disadvantage Below Normal YesNo--- Competitive Parity Normal Yes No Temporary Competitive Advantage Above Normal Yes Sustained Competitive Advantage Above Normal Supported by effective management Adapted from Exhibit 1-2: Human Capital and Competitive Advantage

P OSITIVE O RGANIZATIONAL B EHAVIOR Nurtures individual’s strengths for personal and professional advantage.

H IGH - INVOLVEMENT M ANAGEMENT Dimensions  Selective Hiring  Extensive Training  Decision Power  Information Sharing  Incentive Compensation

D EMANDS ON H IGH - INVOLVEMENT M ANAGERS  Empower  Trust  Use human capital to create competitive advantage

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