1. Introduction: Organizational Behavior in Changing Times
Chapter 1 Nelson & Quick
Introduction: Organizational Behavior in Changing Times
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

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

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

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

5. Organizational vs. Individual
Point of View
Clockworks or Snake pit?
Human Behavior
in the Organization 4

6. Internal/External Perspective of Human Behavior
Internal Perspective
External Perspective
Understand behavior in terms of
Thoughts,feelings, past experiences, and needs
External events, environmental forces, & behavioral consequences
Explain behavior by examining
Individuals’ history & personal value system
Surrounding external events & environmental forces
Each perspective has produced
motivational & leadership theories.

7. Sociology Psychology Engineering Anthropology Medicine Management
the science
of society
Psychology
the science of
human behavior
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

8. 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 intellectual and mechanical processes used by an organization to transform inputs into products or services that meet organizational goals (ch02)

9. Open Systems View of Organization
Task environment:
Competitors
Unions
Regulatory agencies
Clients
Structure
Inputs:
Material
Capital
Human
Outputs:
Products
Services
Task
Technology
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

10. 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 1920s and 1930s that discovered the existence of the informal organization

11. Formal & Informal Elements of Organizations
Formal organization
(overt)
Goals & objectives
Policies & procedures
Job descriptions
Financial resources
Authority structure
Communication channels
Products & services
Formal & Informal Elements of Organizations
Informal organization
(covert)
Beliefs & assumptions
Perceptions & attitudes
Values
Feelings, such as fear, joy
anger, trust, & hope
Group norms
Informal leaders
Social
Surface
Caterpillar is the world’s largest manufacturer of construction and mining equipment. What does Caterpillar reveal about its formal and informal organization at the “About Cat” section of the company’s Web site?

12. U.S. Gross Domestic Product
Total
$10.4 Trillion 7%
12% 9% 8%
44%
20%

13. Five Focus Organizations
Brinker International
Harley-Davidson
Hewlett-Packard
Patagonia
American Heart Association

14. The Challenge of Change
Too much change = chaos
Too little change = stagnation
How do you view change?
Read more about specific issues concerning change and globalization at the Globalist Online. Search for articles and information related to the four main themes of change in contemporary organizations.
Threat
Opportunity

15. International Competition in Business
Driving forces creating and shaping change at work
Globalization
Technology
Success will require:
positive response to the competition in the international marketplace
responsiveness to ethnic, religious, and gender diversity in the workforce
Diversity
Ethics

16. 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

17. Quality
Cannot be optimized
Is not a fad
Is not an end in itself
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?
YES means the idea should improve overall quality

18. Total Quality Management
The total dedication to continuous improvement and to customers so that the customers’ needs are met and their expectations exceeded

19. CEOs Advance Total Quality by:
Engaging in participative management
Being willing to change everything
Focusing quality efforts on customer service
Including quality as a criterion in reward systems
Improving the flow of information regarding quality-improvement successes or failures
Being actively & personally involved in quality efforts
The Malcolm Baldridge National Quality Award rewards quality and performance excellence in organizations. Awards are presented to organizations that have substantially benefited the economic or social well-being of the United States through total quality improvement. Learn more about the criteria for performance excellence and the award recipients who achieved the association’s high standards.

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

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

22. Learning about Organizational Behavior
Mastery of
basic objective
knowledge*
Application
of knowledge
and skills
Development of
specific skills**
and abilities
* Objective knowledge
knowledge that results
from research and
scholarly activities
** Skill development
the mastery of abilities
essential to successful
functioning in organizations

23. 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)

24. 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

25. Trends Affecting Managers
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
Trust & Security
Knowledge

26. Watchwords for Organizations in These Changing Times