1. Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Introduction to the Field of Organizational Behavior Chapter One

2. 1-2 John Lassiter Chief Creative Officer of Pixar and Disney Pixar Animation Studios OB practices have helped Pixar Animation Studios to become the world’s most successful animation studio  Employee competencies -- Pixar finds the best people  People-centered -- Pixar has long-term employment, not short-term projects  Teamwork and org learning -- Pixar supports teams and encourages cross-fertilization

3. 1-3 John Lassiter Chief Creative Officer of Pixar and Disney Organizational Behavior and Organizations Organizational behavior  The study of what people think, feel, and do in and around organizations Organizations  Groups of people who work interdependently toward some purpose — Structured patterns of interaction — Coordinated tasks — Have common objectives (even if not fully agreed)

4. 1-4 Why Study Organizational Behavior? OB theories help you to make sense of the workplace  Question and rebuild your personal theories for work  Important -- much of our time is in organizations OB provides knowledge/tools to work with others  Helps you to get things done OB improves an organization’s financial health

5. Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Lockheed Martin Perspectives of Organizational Effectiveness Introduction to the Field of Organizational Behavior

6. 1-6 Old Perspective: Achieving Goals Effective firms achieve their stated objectives No longer accepted as a perspective of org effectiveness  Companies could set easy goals  Some goals too abstract to know if achieved  Company might achieve goals but go out of business by achieving wrong goals

7. 1-7 Four Perspectives of Org. Effectiveness 1.Open systems: they have a good fit with their external environment 2.High-performance work practices: their internal subsystems are configured for a high-performance workplace 3.Organizational learning: they are learning organizations 4.Stakeholder: they satisfy the needs of key stakeholders NOTE: Need to consider all four perspectives when assessing a company’s effectiveness

8. 1-8 Open Systems Perspective Organizations are complex systems that “live” within (and depend upon) the external environment Effective organizations  Maintain a close “fit” with those changing conditions  Transform inputs to outputs efficiently and flexibly Open systems perspective is the foundation on which the other three effectiveness perspective are built

9. 1-9 Open Systems Perspective Subsystems  processes, task activities, social dynamics within the system Transformation process  subsystems transform inputs into various outputs Feedback  information from environment about value of outputs/availability of inputs Feedback Environment

10. 1-10 Organizational Learning Perspective An organization’s capacity to acquire, share, use, and store valuable knowledge Need to consider both stock and flow of knowledge  Stock: intellectual capital  Flow: org learning processes of acquisition, sharing, and use

11. 1-11 Intellectual Capital Relationship Capital Value derived from satisfied customers, reliable suppliers, etc. Structural Capital Knowledge captured in systems and structures Human Capital Knowledge that people possess and generate

12. 1-12 Organizational Learning Processes Applying knowledge to organizational processes in ways that improves the organization’s effectiveness Distributing knowledge throughout the organization Extracting information and ideas from its environment as well as through insight KNOWLEDGE ACQUISITION KNOWLEDGE ACQUISITION KNOWLEDGE SHARING KNOWLEDGE SHARING KNOWLEDGE USE KNOWLEDGE USE Examples in practice Hiring skilled staffPosting case studies on intranet Giving staff freedom to try out ideas

13. 1-13 Organizational Memory The storage and preservation of intellectual capital Retain intellectual capital by:  Keeping knowledgeable employees  Transferring knowledge to others  Transferring human capital to structural capital Successful companies also unlearn

14. 1-14 High Performance Work Practices (HPWPs) HPWPs are internal systems and structures that are associated with successful companies 1. Employees important for competitive advantage 2. Value of employees increased through specific practices. 3. Maximum benefit when org practices are bundled

15. 1-15 High Performance Work Practices No consensus, but HPWPs include:  Employee involvement and work autonomy (and their combination as self-directed teams).  Employee competence (training, selection, etc.).  Performance-based rewards

16. 1-16 Stakeholder Perspective Lockheed Martin is an “ideal” employer, according to undergrad engineering students The company pays attention to its many stakeholders Relies on values and ethics to guide decisions Strong emphasis on corporate social responsibility (including clean-up of New Orleans following Hurricane Katrina, shown here) Lockheed Martin

17. 1-17 Lockheed Martin Stakeholder Perspective Stakeholders: any entity who affect or is affected by the firm’s objectives and actions Personalizes the open systems perspective  Identifies social entities in the environment  Stakeholder relations are dynamic Problem:  Stakeholders have conflicting interests  Firms have limited resources

18. 1-18 Stakeholders: Values and Ethics We rely on values and ethics to prioritize stakeholder interests Values  Stable, evaluative beliefs, guide preferences for outcomes or courses of action in various situations Ethics  Moral principles/values, determine whether actions are right/wrong and outcomes are good or bad Lockheed Martin

19. 1-19 Stakeholders and CSR Stakeholder perspective includes corporate social responsibility (CSR)  Benefit society and environment beyond the firm’s immediate financial interests or legal obligations  Organization’s contract with society Triple bottom line  Economy, society, environment Lockheed Martin

20. Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Types of Individual Behavior Introduction to the Field of Organizational Behavior

21. 1-21 Types of Individual Behavior Organizational Citizenship Performance beyond the required job duties Task Performance Goal-directed behaviors under person’s control more

22. 1-22 Types of Behavior in Organizations (con’t) Maintaining Work Attendance Attending work at required times Joining/staying with the Organization Goal-directed behaviors under person’s control Counterproductive Work Behaviors Voluntary behavior that potentially harms the organization

23. Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Contemporary Challenges for Organizations Introduction to the Field of Organizational Behavior

24. 1-24 Globalization Economic, social, and cultural connectivity with people in other parts of the world Higher connectivity (and interdependence) due to better information technology and transportation systems Globalization has many effects on organizations, as discussed throughout this book  e.g., leadership, diversity, conflict, org structures

25. 1-25 Increasing Workforce Diversity Surface-level diversity  Observable demographic or physiological differences in people (e.g. race, ethnicity, gender, age, physical disabilities)  Increasing surface-level diversity in U.S. and other countries  Shifting demographics of Americans Deep-level diversity  Differences in the psychological characteristics of employees (e.g. personalities, beliefs, values, and attitudes)  Example: Differences across age cohorts (e.g. Gen-X, Gen-Y) Implications  Leveraging the diversity advantage  Also challenges of diversity (e.g. team development, conflict)  Ethical imperative of diversity

26. 1-26 Employment Relationships Work hours  Less separation from work  24/7 work schedule  Due mainly to info technology and globalization  Push for more work-life balance — minimizing conflict between work and nonwork demands Virtual work  Perform jobs away from traditional workplace (e.g. telecommuting)  Some benefits, but also suited more to some types of people

27. Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Anchors of Organizational Behavior Knowledge Introduction to the Field of Organizational Behavior

28. 1-28 Organizational Behavior Anchors Multidisciplinary anchor  Many OB concepts adopted from other disciplines  OB develops its own theories, but also scans other fields Systematic research anchor  OB researchers rely on scientific method  Should apply evidence-based management  Problems applying evidence-based management — Bombarded with theories and models from many sources — Challenge translating general OB theories to specific situations — People swayed by heavy marketing of some theories/models — Perceptual biases -- we ignore evidence contrary to our current theories

29. 1-29 Organizational Behavior Anchors (con’t) Contingency anchor  A particular action may have different consequences in different situations  Need to diagnose the situation and select best strategy under those conditions Multiple levels of analysis anchor  Individual, team, organizational level of analysis  OB topics usually relevant at all three levels of analysis

30. Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Introduction to the Field of Organizational Behavior Chapter One