1. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 1-1 Chapter 1 Introduction to Organizational Behavior Essentials of Organizational Behavior, 10/e Stephen P. Robbins & Timothy A. Judge

2. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-2 After reading this chapter, you should be able to: 1.Define organizational behavior (OB). 2.Explain the value of the systematic study of OB. 3.Identify the contributions made to OB by major behavioral science disciplines. 4.Describe how OB concepts can help make organizations more productive. 5.List the major challenges and opportunities for managers to use OB concepts. 6.Identify the three levels of analysis in OB.

3. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-3 The Field of Organizational Behavior Organizational Behavior studies the influence that individuals, groups and structure have on behavior within organizations. Its chief goal is to apply that knowledge toward improving an organization’s effectiveness.

4. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-4 Focal Points of OB Jobs Work Absenteeism Employment turnover Productivity Human performance Management

5. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Focus of OB OB focuses on three determinants of behavior in an organization :  Individual  Group  Structure 1-5

6. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Core Points to be Focused Motivation Leader behavior and Power Interpersonal Communication Group Structure and Process Learning Attitude Development and Perception Conflict and work design 1-6

7. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Complementing Intuition with Systematic Study Each of us – student of behavior Reading people all our lives Understanding the behavior of others and predicting their behavior in different conditions. Casual approach leads to erroneous predictions. To improve predictive ability – Replace intuitive opinions with systematic approach. 1-7

8. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-8 Complementing Intuition with Systematic Study Intuition: the “gut feeling” explanation of behavior. Systematic study improves ability to accurately predict behavior.  Assumes behavior is not random.  Fundamental consistencies underlie behavior.  These can be identified and modified to reflect individual differences.

9. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Absence of Fundamental Consistencies Absence leads to difficulty in predicting behavior Eg: Unpredictable driving behavior Eg: Elevator 1-9

10. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-10 Systematic Study Examines relationships. Attempts to attribute causes and effects. Bases conclusions on scientific evidence:  On data gathered under controlled conditions.  Data is measured and interpreted in a reasonably rigorous manner.

11. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-11 Evidence-Based Management Complements systematic study. Bases decisions on the best available scientific evidence. Forces managers to become more scientific in their thinking.

12. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-12 Contributing Disciplines to the OB Field PsychologySocial PsychologySociologyAnthropology Micro: The Individual Macro: Groups & Organizations

13. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Psychology Focus is on individual. Psychology is the science that seeks to measure, explain and sometime change the behavior of humans and animals. Psychologist – attempt to understand the individual behavior Others involved – learning theorists, personality theorists, counselling psychologist,industry and organization psychologist. 1-13

14. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Social Psychology Concepts of psychology + sociology Focus is on people’s influence on one another. One major area - change Social psychologist make contributions –in areas of measuring, understanding and changing attitudes They contribute to the study of group behavior, power and conflict. 1-14

15. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Sociology Study of people in relation to social environment. Sociologist – contribute to OB – by study of group behavior. Contributed to research on organizational culture, formal organization theory and structure, organizational technology, power and conflict. 1-15

16. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Anthropology Anthropology is the study of societies for the purpose of learning about human beings and their activities Contribute to - cultures and environments. Understand the differences in fundamental values, attitudes and behavior among people in different organization. 1-16

17. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-17 Few Absolutes in OB Impossible to make simple and accurate generalizations Human beings are complex and diverse OB concepts must reflect situational conditions: contingency variables

18. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Responding to Globalization Organization no longer constrained by national borders. British firm owns Burger king Exxon Mobil – US company – 75% sales revenue outside US Nokia – Finland Based Company – Non Finns outnumber Finns. Car companies - Honda in Ohio, Ford in Brazil, Mercedes in South Africa. 1-18

19. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-19 Challenges and Opportunities for OB The workplace is contains a wide mix of cultures, races, ethnic groups, genders and ages Employees have to learn to cope with rapid change due to global competition Corporate loyalty has decreased due to corporate downsizing and use of temp workers Managers can benefit from OB theory and concepts

20. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-20 Responding to Globalization Increased foreign assignments  Differing needs and aspirations in workforce Working with people from different cultures  Domestic motivational techniques and managerial styles may not work Overseeing movement of jobs to countries with low-cost labor

21. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-21 Managing Workforce Diversity Workforce diversity: organizations are becoming a more heterogeneous mix of people in terms of gender, age, race, ethnicity, and sexual orientation

22. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Work Force Diversity A diverse workforce – women,men,senior citizens,people disabled etc… Managing diveristy – Global Concern Eg:Managers in US – Large crowd of Asian workers. Workforce diversity – important implication for management practice. 1-22

23. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Managing Diversity Diversity Managed well :–  Increases creativity and innovation in organization  Improves decision making by providing different perspective on problems. Diversity not managed well :-  Potential for higher turnover  Difficult communication and conflicts 1-23

24. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-24 OB Offers Insights Into: Improving quality and productivity Customer service and building a customer- responsive culture Developing people skills

25. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-25 OB Aids in Dealing With: Stimulating Innovation and Change Increasing “temporariness” in the workplace Helping employees balance work-life conflicts Improving ethical behavior

26. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall OB helps Service Industry Help managers create a customer responsive culture. Friendly and courteous Accessible Knowledgeable Prompt in responding customer need. Willing to do what’s necessary to please customer. 1-26

27. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Stimulating Innovation and Change Successful organization –  Should foster innovation and master the art of change.  Maintain flexibility, improve quality  Beat the competition – by introducing innovative products and services  Some Examples – Dominos,Dell,Amazon book shop. 1-27

28. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-28 Thinking Positive Creating a positive work environment can be a competitive advantage Positive Organizational Scholarship (Positive OB):  Examines how organizations develop human strengths, foster vitality and resilience, and unlock potential.  Focus is on employee strengths, not their weaknesses.

29. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-29 Implications for Managers OB helps with:  Insights to improve people skills  Valuing of workforce diversity  Empowering people and creating a positive work environment  Dealing with labor shortages  Coping in a world of temporariness  Creating an ethically healthy work environment

30. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-30 Keep in Mind… OB’s goal is to understand and predict human behavior in organizations. Fundamental consistencies underlie behavior. It is more important than ever to learn OB concepts. Both managers and employees must learn to cope with temporariness.