1. Chapter 1: Introduction to Organizational Behavior
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Chapter Objectives
Define organizational behavior and explain how and why it determines the effectiveness of an organization
Appreciate why the study of organizational behavior improves a person’s ability to understand and respond to events that take place in a work setting
Differentiate between the three levels at which organizational behavior is examined
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3. ORGANIZATIONAL BEHAVIOUR
Chapter Objectives
Appreciate the way changes in an organization’s external environment continually create challenges for organizational behavior
Describe the four main kinds of forces in the environment that post the most opportunities and problems for organizations today
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4. What is an Organization?
An organization is a collection of people who work together to achieve individual and organizational goals
Individual goals
Organizational goals
Individual goals are what people are trying to accomplish for themselves such as earning a lot of money, achieving power and prestige, and enjoying work.
Organizational goals are what the organization as a whole is trying to accomplish such as providing innovative products and services to customers, making a profit, and achieving high levels of market share.
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5. What is Organizational Behavior?
Organizational behavior (OB): the study of factors that have an impact on how people and groups act, think, feel, and respond to work and organizations, and how organizations respond to their environments
OB is important to study because most people will work for or with someone else at some point and will be affected both positively and negatively by their experiences at work.
OB provides a framework for understanding and appreciating the many forces that affect behavior.
OB helps us understand questions like:
Why are some motivated to join an organization while others are not?
Why do some people feel good or bad about their jobs?
Why do some people stay with an organization for 30 years while others change jobs regularly?
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6. Figure 1.1 What is Organizational Behavior?
Insert Figure 1.1 here
Figure 1.1 illustrates how organizational behavior concepts and theories allow people to correctly understand, describe, and analyze the characteristics of individuals, groups, work situations, and the organization itself.
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7. Figure 1.2 Levels of Analysis
Group Level
Individual
Level
Organizational Level
Organizational behavior can be examined at 3 levels: organizational, group, and individual.
OB is particularly important to managers.
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8. Figure 1.3 Components of Organizational Behavior
Figure 1.3 illustrates how the text covers the three levels of organizational behavior. Part I includes chapters 2-9. Part 2 includes chapters Part 3 includes chapters
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What is Management?
Management is the process of planning, organizing, leading, and controlling an organization’s human, financial, material, and other resources to increase its effectiveness
Managers are in a good position to improve their managerial abilities by understanding organizational behavior.
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10. Figure 1.4 Four Functions of Management
Planning
Decide on organizational goals
and allocate and use
resources to
achieve those goals
Organizing
Establish the rules and
reporting relationships that
allow people to
achieve organizational goals
Controlling
Evaluate how well the
organization is achieving goals
and take action to
maintain, improve, and correct
performance
Leading
Encourage and coordinate
individuals and groups
so that they work
toward organizational goals
OB and Planning: The study of OB reveals how decisions are made in organizations and how politics and conflict affect the planning process. It shows how group decision making and biases can affect planning.
OB and Organizing: OB offers guidelines on how to organize employees to make the best use of their skills and capabilities.
OB and Leading: The study of different leadership methods and of how to match leadership style to the characteristics of the organization and all its components is a major concern of OB.
OB and Controlling: The theories and concepts of organizational behavior allow managers to understand and accurately diagnose work situations in order to pinpoint where corrective action may be needed.
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11. Table 1.1: Mintzberg’s Managerial Roles
Leader
Monitor
Spokesperson
Disturbance handler
Negotiator
Figurehead
Liaison
Disseminator
Entrepreneur
Resource allocator
A role is a set of behaviors or tasks a person is expected to perform because of the position he or she holds in a group or organization.
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Managerial Skills
Conceptual Skills
Technical Skills
Human Skills
A skill is an ability to act in a way that allows a person to perform well in his or her role.
Managers need all three types of skills to perform their organizational functions and roles effectively.
Conceptual Skills refer to the ability to analyze and diagnose a situation and distinguish between cause and effect.
Human Skills refer to the ability to understand, work with, lead, and control the behavior of other people and groups.
Technical Skills refer to job-specific knowledge and techniques.
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13. Challenges for Organizational Behavior
1: Changing Social/ Cultural Environment
2: Evolving Global Environment
3: Advancing Information Technology
4: Shifting Work/ Employment Relationships
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14. Changing Social and Cultural Environment
National culture
Organizational ethics and well-being
Diverse work force
The first challenge is the changing social and cultural environment. Forces in the social and cultural environment are those that are due to changes in the way people live and work – changes in values, attitudes, and beliefs brought about by changes in a nation’s culture and the characteristics of its people.
National culture is the set of values or beliefs that a society considers important and the norms of behavior that are approved or sanctioned in that society. Over time, national cultures change and this affects the values and beliefs of each nation’s members.
Ethics scandals have hit many companies recently including Tyco, Adelphia, Enron, and Arthur Andersen. An organization’s ethics are the values, beliefs, and moral rules its managers and employees should use to analyze or interpret a situation and then decide what is the most appropriate way to behave. Ethical organizational behavior affects the well-being (happiness, health, and prosperity) of a nation, an organization, citizens, and employees. Metabolife International’s use of ephedra in its supplements is used as an example in the text.
Ethics also define an organization’s social responsibility – its obligations toward people or groups outside the organization that are directly affected by its actions.
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Diversity Challenges
Fairness and Justice
Decision-Making and Performance
Flexibility
Diversity is differences resulting from age, gender, race, ethnicity, religion, sexual orientation, and socioeconomic background, and capabilities/ disabilities. The increasing diversity of the work force presents three challenges for organizations and their managers: a fairness and justice challenge, a decision-making and performance challenge, and a flexibility challenge.
A goal to increase diversity can strain an organization’s ability to satisfy the aspirations of at least part of its work force. Actively recruiting and promoting minorities can lead to difficult equity issues.
How can organizations benefit from the attitudes and perspectives of people with diverse backgrounds?
The third diversity challenge is to be sensitive to the needs of different kinds of employees and to try to develop flexible employment approaches that increase their well-being. Examples include new benefits packages customized to needs of different groups of employees (e.g., domestic partner benefits), flextime, job sharing, and mentoring.
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Figure 1.6 Diversity
Figure 1.6 illustrates the characteristics used to define the bases of diversity.
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17. Evolving Global Environment
Understanding Global Differences
Improve Organization’s Behaviors and Procedures in Response to Those Differences
The challenge of responding to social and cultural forces increases as organizations expand their operations globally.
Global organizations like GM, Toyota, Kokia, PepsiCo, and Sony produce or sell their products in countries throughout the world.
Global organizations must appreciate the differences between countries and benefit from the knowledge to improve an organization’s behaviors and procedures.
People in different countries have different values, beliefs, and attitudes.
Global organizations must find ways to design processes to fit each culture while maintaining fairness and flexibility.
Global learning is the process of acquiring and learning the skills, knowledge, and organizational behaviors and procedures from global situations. More companies are rotating their employees to overseas operations so they can learn firsthand the problems and opportunities that lie abroad. Expatriate employees are employees who live and work for companies located abroad.
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18. Advancing Information Technology
Knowledge
Information Technology
Organizational Learning
Intranets
Creativity
Innovation
Information is a set of data, facts, numbers, and words that has been organized in such a way as to provide its users with knowledge.
Knowledge is what a person perceives, recognizes, identifies, or discovers from analyzing data and information.
IT consists of the many different kinds of computer and communications hardware and software and the skills designers, programmers, managers, and technicians bring to it. IT is used to acquire, define, input, arrange, organize, manipulate, store, and transmit facts, data, and information to create knowledge and promote organizational learning.
Organizational learning occurs when members can manage information and knowledge to achieve a better fit between the organization and its environment.
Intranets are networks of IT inside an organization that links its members.
Creativity is the generation of novel and useful ideas.
Innovation is an organization’s ability to make new or improved goods and services or improvements in the way they are produced.
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19. Shifting Work/ Employment Relationships
Downsizing
Empowerment and Self-Managed Teams
Contingent Workers
Outsourcing
Downsizing is the process by which organizations lay off managers and workers to reduce costs
Empowerment is the process of giving employees throughout an organization the authority to make important decisions and be responsible for their outcomes.
Self-managed team are work groups who have been empowered and given the responsibility for leading themselves and ensuring that they accomplish their goals.
Contingent workers are people who are employed for temporary periods by an organization and who receive no benefits such as health insurance or pensions.
Outsourcing is the process of employing people and groups outside the organization to perform specific jobs or types of work activities that used to be performed by the organization itself. This is accomplished sometimes by freelancers – independent individuals who contract with an organization to perform specific tasks.
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