1. 1 Introduction to the Field of Organizational Behavior Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

2. 1-2 Quicken Loans Quicken Loans has become one of America’s most successful companies through high involvement, a focus on creativity, a strong culture, and other effective organizational behavior practices.

3. 1-3 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  Collective entities  Collective sense of purpose

4. 1-4 Why Study OB?  Satisfy the need to understand and predict  Helps us to test/improve personal theories  Influence behavior – get things done  OB improves an organization’s financial health  OB is for everyone

5. 1-5 Organizational Effectiveness  The ultimate dependent variable in OB  Old approach – achieving stated goals  Problem with goal attainment  Could set easy goals  Company might achieve wrong goals

6. 1-6 Four Perspectives of Organizational Effectiveness Stakeholder Perspective High-Performance WP Perspective Organizational Learning Perspective Open Systems Perspective NOTE: Need to consider all four perspectives when assessing a company’s effectiveness

7. 1-7 Open Systems Perspective  Organizations are complex systems that “live” within, and depend on, the external environment  Effective organizations  Maintain a close “fit” with changing conditions  Transform inputs to outputs efficiently and flexibly  Foundation for the other three organizational effectiveness perspectives

8. 1-8 Products/services Shareholder dividends Community support Waste/pollution Technological subsystem Marketing /Sales subsystem Production subsystem Cultural subsystem subsystem Purchasing subsystem Engineerin g subsystem Accounting subsystem subsyste m Socialization subsystem subsystem Raw materials Human resources Information Finances Equipment Feedback subsystem Managerial subsystem Transforming inputs to outputs Open Systems Perspective External Environment

9. 1-9 Organizational Learning Perspective  An organization’s capacity to acquire, share, use, and store valuable knowledge  Need to consider both stock and flow of knowledge  Stock: intellectual capital  Flow: org learning processes of acquisition, sharing, use, and storage

10. 1-10 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

11. 1-11 Organizational Learning Processes Knowledge Acquisition Knowledge Sharing Knowledge Use Knowledge Storage Learning Scanning Grafting Experimenting Learning Scanning Grafting Experimenting Communicating Info systems Internal learning Training Observing Communicating Info systems Internal learning Training Observing Awareness of knowledge Sense making (locating knowledge) Autonomy to apply knowledge Awareness of knowledge Sense making (locating knowledge) Autonomy to apply knowledge Human memory Documentation Practices/habits Databases Human memory Documentation Practices/habits Databases

12. 1-12 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

13. 1-13 High-Performance Work Practices  Workplace practices that leverage the potential of human capital  Four HPWPs (likely others) 1.Employee involvement 2.Job autonomy 3.Develop competencies (training, selection) 4.Performance-based rewards  Need to “bundle” them – work best together

14. 1-14 Corporate Social Responsibility at MTN At MTN Group, Africa’s largest mobile (cell) phone company, employees help the community and environment through the company’s award-winning “21 Days of Y’ello Care” program. This photo shows MTN employees painting schools during a recent Y’ello Care event.

15. 1-15 Stakeholder Perspective  Stakeholders: entities who affect or are affected by the firm’s objectives and actions  Personalizes the open systems perspective  Challenges with stakeholder perspective:  Stakeholders have conflicting interests  Firms have limited resources to satisfy all stakeholder needs

16. 1-16 Stakeholders: Values and Ethics  Values and ethics 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

17. 1-17 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

18. 1-18 Globalization  Economic, social, and cultural connectivity with people in other parts of the world  Due to better communication and transportation systems  Effects of globalization on organizations  Larger markets, lower costs, more innovation  Increasing diversity  Increasing work intensification, less work-life balance (24/7 schedule)

19. 1-19 Increasing Workforce Diversity  Surface-level vs deep-level diversity  Implications  Better knowledge, decisions, representation, financial returns  Manage challenges of diversity (e.g. teams, conflict)  Ethical imperative of diversity

20. 1-20 Emerging Employment Relationships  Work/life balance  Minimizing conflict between work and nonwork demands  Virtual work  Using information technology to perform one’s job away from the traditional physical workplace  Telecommuting – issues of social isolation, emphasis on face time, employee self-motivated

21. 1-21 Organizational Behavior Anchors  Systematic research anchor  OB knowledge is built on systematic research  Evidence-based management – rely on research evidence, not fads, untested assumptions  Multidisciplinary anchor  Many OB concepts adopted from other disciplines  OB develops its own theories, but scans other fields

22. 1-22 Organizational Behavior Anchors (con’t)  Contingency anchor  A particular action may have different consequences in different situations  Need to diagnose the situation and select best strategy under those conditions  Multiple levels of analysis anchor  Individual, team, organizational level of analysis  OB topics usually relevant at all three levels of analysis

23. 1 Introduction to the Field of Organizational Behavior 1-23