1. Chapter 1 Organizational Behavior and Opportunity
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2. Learning Outcome Define organizational behavior
Identify four action steps for responding positively in times of change
Identify important system components of an organization
Describe formal and informal elements of an organization
Identify factors that contribute to diversity of organizations in the economy
Describe opportunities that change creates for organizational behavior
Demonstrate value of objective knowledge and skill development in the study of organizational behavior

3. LO 1.1 - Define Organizational Behavior

4. Organizational Behavior
Study of individual behavior and group dynamics in organizations

5. Models of Human Behavior: External and Internal Perspective
Studies a worker’s mind to understand their behavior
Focuses on thoughts, feelings, past experiences, and needs of the individual
External perspective
Focuses on factors outside the person to understand behavior
Includes external events, consequences, and environmental forces

6. Interdisciplinary Influences on Organizational Behavior
Psychology
Science of human behavior
Sociology
Science of society
Engineering
Applied science of energy and matter
Anthropology
Science of human learned behavior
Management
Overseeing activities and supervising people
Medicine
Applied science of healing or treating diseases

7. LO 1.2 - Identify Four Action Steps for Responding Positively in Times of Change

8. Steps for Adapting to Change
Have a positive attitude
Ask questions
Listen to answers
Be committed to success

9. LO 1.3 - Identify Important System Components of an Organization

10. 1.1 An Open-Systems View of Organization

11. LO 1.4 - Describe Formal and Informal Elements of an Organization

12. Formal and Informal Organization
Official, legitimate, and most visible part of the system
Formal organization
Unofficial and less visible part of the system
Hawthorne studies: Studies conducted during the 1920s and 1930s suggest the importance of informal organization
Informal organization

13. Formal and Informal Elements of Organizations
Social Surface
Formal organization (overt)
Goals and objectives
Policies and procedures
Job descriptions
Financial resources
Authority structures
Communication channels
Products and services
Informal organization
(covert)
Beliefs and assumptions
Perceptions and attitudes
Values
Feelings (fear, joy, anger, trust, and hope)
Group norms
Informal leaders

14. LO 1.5 - Identify Factors that Contribute to Diversity of Organizations in the Economy

15. Sectors of the U.S. Economy
Private sector
Nonprofit sector
Large and small organizations
Manufacturing sector
Government sector
Service sector

16. Describe Opportunities that Change Creates for Organizational Behavior
LO Describe Opportunities that Change Creates for Organizational Behavior
LO - 1.6
Describe Opportunities that Change Creates for Organizational Behavior

17. Impact of Global Competition on Business
Results in drastic changes
Is characterized by intense rivalry
Puts increased pressure on employees to:
Increase productivity
Add value to the firm

18. Key Questions in Evaluating Quality-Improvement Ideas
Does the idea improve customer response?
Does the idea accelerate results?
Does the idea increase effectiveness of resources?

19. Six Sigma High-performance system for executing business strategy
Customer-driven
Emphasizes quantitative decision making
Places a priority on saving money
Phases for tackling problems
Measure
Analyze
Improve
Control

20. 1.1 Contrasting Six Sigma and Total Quality Management

21. Seven Categories in Malcolm Baldrige National Quality Award Examination
Leadership
Information and analysis
Strategic quality planning
Human resource utilization
Quality assurance of products and services
Quality results
Customer satisfaction

22. Challenges to Managing Organizational Behavior
Increasing globalization of organizations’ operating territory
Increasing diversity of organizational workforces
Continuing demand for higher levels of moral and ethical behavior at work

23. LO Demonstrate Value of Objective Knowledge and Skill Development in the Study of Organizational Behavior
LO - 1.7
Demonstrate Value of Objective Knowledge and Skill Development in the Study of Organizational Behavior

24. 1.3 Learning About Organizational Behavior

25. Learning About Organizational Behavior
Objective knowledge: Result of research and scientific activities
Skill development: Proficiency in the abilities a firm needs to function successfully
Skills identified by the U.S. Department of Labor
Resource management
Information management
Personal interaction
Systems behavior and performance
Technology utilization

26. 1.4 Learning from Structured Activity

27. In Good Company
The film sequence shows three people interacting in a work environment. Which aspects of organizational behavior and management, discussed earlier in this chapter, appear in this sequence?
The three people in this sequence represent different management levels in a company. Which levels do you attribute to Carter Duryea, Dan Foreman, and Mark Steckle?
Critique the behavior shown in this sequence. Enlist the positive and negative aspects.
A corporate takeover brings star advertising executive Dan Foreman (Dennis Quaid) a new boss who is half his age.
Carter Duryea (Topher Grace), Dan’s new boss, wants to prove his worth as the new marketing chief at Sports America, Waterman Publishing’s flagship magazine. Carter applies his unique approaches while dating Dan’s daughter, Alex (Scarlett Johansson). This sequence follows Foreman’s reaction toward the end of a speech given by Globecom CEO Teddy K. (Malcom McDowell).
Ask your students:
1. The film sequence shows three people interacting in a work environment. Which aspects of organizational behavior and management discussed earlier in this chapter appear in this sequence?
2. The three people in this sequence represent different management levels in the company. Which levels do you attribute to Carter Duryea, Dan Foreman, and Mark Steckle?
3. Critique the behavior shown in this sequence. What are the positive and negative aspects of the behavior shown.

28. What are the challenges of globalization for managers at Holden?
Holden Outerwear
Using the open-systems view of organizations, describe Holden Outerwear’s internal and external environment.
How has globalization influenced Holden’s business and created opportunity?
What are the challenges of globalization for managers at Holden?
Like many other American brands, Holden apparel is made in China. LeBlanc explains that while he would like to manufacture lines in the United States, government
regulations, labor costs, and high corporate tax rates are too heavy a burden. Availability of material is another reason for producing goods in China, since most of the
fabrics, buttons, and snaps that Holden uses come from Asian suppliers. In addition to such procurement problems, garment making requires skilled labor—something
LeBlanc says is rare in the United States. Despite the many challenges Holden faces as a small business competing in a global economy, LeBlanc’s knack for navigating
global markets is as sharp as his ability to tame even the most challenging downhill courses.
Ask your students:
Using the open systems view of organizations, describe Holden Outerwear’s internal and external environment.
How has globalization influenced Holden’s business and created opportunity?
What are some challenges of globalization for managers at Holden?

29. Key Terms Anthropology Objective knowledge Change Opportunities
Challenge
Engineering
Formal organization
Hawthorne studies
Informal organization
Management
Medicine
Objective knowledge
Opportunities
Organization behaviour
People
Psychology
Skill development
Sociology
Structure
Task
Technology

30. Summary
Organizational behavior studies individual behavior and group dynamics
To respond positively to change
Have a positive attitude, ask questions, listen to answers, and be committed to success
Task, people, technology, and structure are important components of an organization
Formal organization is the visible part of the system whereas informal organization is the less visible part
Major sectors of the economy are private, manufacturing, service, government, and nonprofit

31. Change creates opportunities
Summary (continued 2)
Change creates opportunities
Increases global competition
Improves quality of the products and workplace environment
Objective knowledge is derived from research and scientific activities
Skill development refers to being proficient in the tasks a firm needs to function smoothly