1. Chapter 1 © 2011 Cengage Learning. All rights reserved.

2. Organizational Behavior the study of individual behavior and group dynamics in organizations

3. © 2011 Cengage Learning. All rights reserved. 1-3 What is an Organization? A structured social system consisting of groups and individuals working together to meet some agreed-upon objectives. What objectives are we interested in and why?

4. © 2011 Cengage Learning. All rights reserved. Psychosocial BehavioralInterpersonal Organizational Behavior: Dynamics in Organizations Organizational Behavior

5. © 2011 Cengage Learning. All rights reserved. Organizational Variables that Affect Human Behavior Organizational Design Jobs Work Design Performance Appraisal Organizational Structure Communication Human Behavior

6. © 2011 Cengage Learning. All rights reserved. External Perspective Understand behavior in terms of external events, environmental forces, and behavioral consequences. Internal Perspective Understand behavior in terms of thoughts, feelings, past experiences, and needs. Explain behavior by examining individuals’ history and personal value System. Both perspectives have produced motivational & leadership theories. Explain behavior by examining surrounding external events and environmental forces.

7. © 2011 Cengage Learning. All rights reserved. 1-7 Kurt Lewin Behavior is a function of both the person and the environment (system). B = f (P/E)

8. © 2011 Cengage Learning. All rights reserved. Your explanation for the behavior that you observe (caused by a combination of person and environment factors) is critical because it determines your reaction to the behavior, and the thing you control the most at work is your own personal behavior.

9. © 2011 Cengage Learning. All rights reserved. Psychology the science of human behavior Management the study of overseeing activities and supervising people in organizations Anthropology the science of the learned behavior of human beings Medicine the applied science of healing or treating diseases to enhance health and well-being Engineering the applied science of energy & matter Sociology the science of society Interdisciplinary Influences on Organizational Behavior

10. © 2011 Cengage Learning. All rights reserved. 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, and the overall organization are designed at the macro level Technology – the tools, knowledge, and/or techniques used to transform inputs into outputs

11. © 2011 Cengage Learning. All rights reserved. SUPPLIERSSUPPLIERS CUSTOMERSCUSTOMERS InputsOutputs Process A process is a series of related tasks; A system is a group of related processes

12. © 2011 Cengage Learning. All rights reserved. 1-12 Time for an exercise?

13. © 2011 Cengage Learning. All rights reserved.

14. equipment Total Process methods training supervision measurement staffing Individual effort materials 15%

15. © 2011 Cengage Learning. All rights reserved. 1-15 Sterman (1994) “When we attribute behavior to people rather than system structure, the focus of management becomes the search for extraordinary people to do the job rather than designing the job so that ordinary people can do it.”

16. © 2011 Cengage Learning. All rights reserved. 1-16 Grade distribution Spring 2012 A = 11 (48%) A- = 3 (13) B+ = 3 B = 4 B- = 1 C = 1 D = 0 F = 0 How do you explain the fact that 61% made an A?

17. © 2011 Cengage Learning. All rights reserved. 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 suggested the importance of informal organizations

18. © 2011 Cengage Learning. All rights reserved. Formal & Informal Elements of Organizations Formal organization (overt) Goals and objectives Policies and procedures Job descriptions Financial resources Authority structure Communication channels Products and services Social Surface Informal organization (covert) Beliefs and assumptions Perceptions and attitudes Values Feelings, such as fear, joy anger, trust, and hope Group norms Informal leaders

19. © 2011 Cengage Learning. All rights reserved. 1-19 Total Quality Management (TQM) The total dedication to continuous improvement and to customers so that customers’ needs are met and their expectations exceeded. Who is the customer? How do you know their expectations? How do you know if you are meeting their expectations?

20. © 2011 Cengage Learning. All rights reserved. [ QUALITY ] Can give organizations in viable industries a competitive edge in international competition A rubric for products and services of high status A customer-oriented philosophy of management with implications for all aspects of organizational behavior A cultural value embedded in successful organizations

21. © 2011 Cengage Learning. All rights reserved. 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?

22. © 2011 Cengage Learning. All rights reserved. Seven Categories in the 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