1. Organizational Behavior and Opportunity
Organizational Behavior and Opportunity
Chapter 1
Organizational Behavior
Nelson & Quick
6th edition

2. Human Behavior in Organizations Clockworks or Snake pit? 4
Clockworks
or Snake pit?
Photos courtesy of Clips Online, © 2008 Microsoft Corporation 4

3. Organizational Behavior
Organizational Behavior- the study of individual behavior and
group dynamics in organizations
Photos courtesy of Clips Online, © 2008 Microsoft Corporation

4. A Time of Challenge and Change
The call to competition, contest or battle
A Time of Challenge and Change
The transformation or modification of an organization and/or its stakeholders
Leads to Opportunities
Favorable times or chances for progress and advancement

5. Organizational Behavior: Dynamics in Organizations
Psychosocial
Organizational
Behavior
Interpersonal
Behavioral

6. Organizational Variables that
Organizational Variables that
Affect Human Behavior
Organizational
Structure
Design
Performance
Appraisal
Communication
Work Design
Jobs
Human
Behavior

7. Understanding Human Behavior
External Perspective:
Examining surrounding
external events &
environmental forces
Thoughts
Feelings
Experiences
External
Events
Behavioral
Consequences
Internal Perspective:
Examining individuals’
history & personal values
Environmental Forces
Photos courtesy of Clips Online, © 2008 Microsoft Corporation

8. Sociology Engineering Anthropology Medicine Management
Psychology
the science
of human behavior
Sociology
the science
of society
Engineering
the applied science
of energy & matter
Interdisciplinary
Influences on
Organizational
Behavior
Anthropology
the science of the learned behavior of human beings
Medicine
the applied science
of healing or treatment of diseases to enhance an
individual’s health and
well-being
Management
the study of overseeing
activities and supervising
people in organizations

9. Positive Reactions to Change
Open and
Responsive
Have a positive attitude
Ask questions
Listen to the answers
Be committed to success
Not
Rigid and
Reactive
Photos courtesy of Clips Online, © 2008 Microsoft Corporation

10. Components of an Organization
Task - an organization’s mission, purpose, or goal for existing
People - the human resources of the organization
Structure - the manner in which an organization’s work is designed at the micro level; how departments, divisions, & the overall organization are designed at the macro level
Technology - the tools, knowledge, and/or techniques used to transform inputs into outputs

11. Open Systems View of Organization
Task environment:
Competitors Unions
Regulatory agencies Clients
Structure
Outputs:
Products
Services
Inputs:
Material
Capital
Human
Technology
Task
People
(Actors)
Organizational Boundary
Based on Harold Levitt, “Applied Organizational Change in
Industry: Structural, Technological, and Humanistic Approaches,” in J.G.
March (ed.), Handbook of Organizations, Rand McNally, Chicago, 1965,
p Reprinted by permission of James G. March

12. Formal vs. Informal Organization
Formal vs. Informal Organization
Formal Organization - the official, legitimate, and most visible part of the system
Informal Organization - the unofficial and less visible part of the system
Hawthorne Studies: studies conducted during the 1920’s and 1930’s that discovered the existence of the informal organization.

13. Formal & Informal Elements of Organizations
Formal organization
(overt)
Goals & objectives
Policies & procedures
Job descriptions
Financial resources
Authority structure
Communication channels
Products and services
Formal & Informal Elements of Organizations
Social
Surface
Informal organization
(covert)
Beliefs & assumptions
Perceptions & attitudes
Values
Feelings, such as fear, joy
anger, trust, & hope
Group norms
Informal leaders
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South-Western, a division
of Cengage Learning
All rights reserved

14. U.S. Gross Domestic Product7% 8%
Total
$13.2 Trillion
12%
41%
12%
20%

15. Six Focus Organizations
Caribou Coffee
Genetech, Inc.
Google
The Timberland Company
American Express (AMEX)
Toyota Motor Corporation

16. Global Competition in Business
Global Competition in Business
Four challenges to managers relating to change in organizations
Globalization
Workforce Diversity
Ethics & Character
Technological Innovation

17. Quality
A potential means for giving organizations in viable industries a competitive edge in international competition
A rubric for products and services that are of high status
A customer-oriented philosophy of management with implications for all aspects of organizational behavior
A cultural value embedded in successful organizations

18. Three key questions in evaluating quality-improvement ideas
Three key questions in evaluating quality-improvement ideas
1. Does the idea improve customer response?
2. Does the idea accelerate results?
3. Does the idea raise the effectiveness of resources?

19. Six Sigma
Six Sigma - a high-performance system to execute business strategy that is customer-driven, emphasizes quantitative decision making, and places a priority on saving money

20. Contrasting Six Sigma and Total Quality Management
Six Sigma
TQM
Executive Ownership
Business strategy execution system
Truly cross functional
Focused training with verifiable return on investment
Business results oriented
Self-directed work teams
Quality initiative
Largely within a single function
No mass training in statistics and quality
Quality orientated
Return on investment
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South-Western, a division
of Cengage Learning
All rights reserved
Source: Matt Barney. “Motorola’s Second Generation.” Six Sigma Forum Magazine (May 2002), 13.

21. Challenges to Managing Organizational Behavior
Challenges to Managing Organizational Behavior
Increasing globalization of organizations’ operating territory
Increasing diversity of organizational workforces
Continuing demand for higher levels of moral & ethical behavior at work
Continuing technological innovation with its companion need for skill enhancement

22. Learning about Organizational Behavior
Learning Activity
Pedagogical Features
Mastery of
basic objective
knowledge*
Science
Theories, Research, Articles
Development of specific skills** and abilities
You
Exercises, Questionnaires
The Real World
Application
Of knowledge
And skills
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South-Western, a division
of Cengage Learning
All rights reserved
Organizational & Work Context

23. Objective Knowledge Skill Development
Objective
Knowledge
Knowledge that results from
research and scientific activities
Skill Development
The mastery of abilities essential
to successful functioning in
organizations

24. Learning from Structured Activity
Learning from Structured Activity
Individual or group
structured activity
(e.g., group decision
activity)
New or modified
knowledge or skills
(e.g., consensus
group decisions are
Better)
Systematic review
of the structured
activity (e.g.,
compare individual
& group results)
Conclusions based on the systematic
review (e.g., the
group did better)
Copyright ©2009
South-Western, a division
of Cengage Learning
All rights reserved

25. Three Assumptions Required for Learning from Structured Activity
Three Assumptions Required for Learning from Structured Activity
Each student must accept responsibility for his/her own behavior, actions, & learning
Each student must actively participate in the individual/group structured learning activity
Each student must be open to new information, new skills, new ideas, and experimentation

26. Trends Affecting Managers
Trends Affecting Managers
TRUST
Industrial restructuring
Increased amount & availability of information
Need to attract & retain the best employees
Need to understand human & cultural differences
Rapid shortening of response times in all aspects of business
SECURITY
PREDICTABILITY

27. Knowledge = Power in Understanding Trends
Knowledge Base
Information
Facts
Theories

28. Chapter 1: Reflect & Discuss
8 Mile Video Clip
What to Watch for and Ask Yourself
What is your perception of the quality of Jimmy’s job and his work environment?
What is the quality of Jimmy’s relationship with Manny (Paul Bates), his foreman? Does it change? If it does, why?
How would you react to this type of work experience?
8 Mile
Jimmy “B-Rabbit” Smith, Jr. (Eminem) wants success as a rapper and to prove that a white man can create moving sounds. His job at the NDS (North Detroit Stamping) plant fills his days while he pursues his music at night—and sometimes on the plant’s grounds. The film’s title refers to Detroit’s northern city boundary, well known to local people. 8 Mile is a gritty look at Detroit’s hip-hop culture in 1995 and Jimmy’s desire for acceptance by it. Eminem’s original songs “Lose Yourself” and “8 Mile” received several award nominations. “Lose Yourself” won the 2003 Academy Award for best original song.
The scene has two parts. It is an edited composite of two brief NDS plant sequences that appear in different places in the film. Part I of the scene appears early in the film in the sequence “The Franchise.” Part II appears in the last 25 minutes of the film in the “Papa Doc Payback” sequence. Jimmy arrives late for work in the first part of the scene, after riding the city bus because his car did not start. The second part occurs after his beating by Papa Doc (Anthony Mackie) and Papa Doc’s gang.. The film continues to its end with Jimmy’s last battle (a rapper competition).
What to Watch for and Ask Yourself
What is your perception of the quality of Jimmy’s job and his work environment?
What is the quality of Jimmy’s relationship with Manny (Paul Bates), his foreman? Does it change? If it does, why?
How would you react to this type of work experience? 28