1. 1-1©2005 Prentice Hall Understanding and Managing Organizational Behavior 4th Edition 1: Introduction to Organizational Behavior Chapter 1: Introduction to Organizational Behavior JENNIFER GEORGE & GARETH JONES

2. 1-2 ©2005 Prentice Hall Chapter Objectives  Define organizational behavior and explain how and why it determines the effectiveness of an organization  Appreciate why the study of organizational behavior improves a person’s ability to understand and respond to events that take place in a work setting  Differentiate between the three levels at which organizational behavior is examined

3. 1-3 ©2005 Prentice Hall Chapter Objectives  Appreciate the way changes in an organization’s external environment continually create challenges for organizational behavior  Describe the four main kinds of forces in the environment that post the most opportunities and problems for organizations today

4. 1-4 ©2005 Prentice Hall IKEA’s Global Approach to OB  IKEA strives to increase employees’ skills and knowledge  IKEA provides employees with rewards that encourage high performance  IKEA encourages employee commitment and cooperation

5. 1-5 ©2005 Prentice Hall What is an Organization?  An organization is a collection of people who work together to achieve individual and organizational goals –Individual goals –Organizational goals

6. 1-6 ©2005 Prentice Hall What is Organizational Behavior?  Organizational behavior (OB): the study of factors that have an impact on how people and groups act, think, feel, and respond to work and organizations, and how organizations respond to their environments  See Figure 1.1, 1.2, 1.3

7. 1-7 ©2005 Prentice Hall What is Management?  Management is the process of planning, organizing, leading, and controlling an organization’s human, financial, material, and other resources to increase its effectiveness

8. 1-8 ©2005 Prentice Hall Four Functions of Management  Planning  Organizing  Leading  Controlling

9. 1-9 ©2005 Prentice Hall Table 1.1: Mintzberg’s Managerial Roles  Figurehead  Liaison  Disseminator  Entrepreneur  Resource allocator  Leader  Monitor  Spokesperson  Disturbance handler  Negotiator

10. 1-10 ©2005 Prentice Hall Managerial Skills  Conceptual Skills: The ability to analyze and diagnose a situation and distinguish between cause and effect.  Human Skills: The ability to understand, work with, lead, and control the behavior of other people and groups.  Technical Skills: Job-specific knowledge and techniques.

11. 1-11 ©2005 Prentice Hall Challenges for Organizational Behavior  1: Changing Social/ Cultural Environment  2: Evolving Global Environment  3: Advancing Information Technology  4: Shifting Work/ Employment Relationships

12. 1-12 ©2005 Prentice Hall Changing Social and Cultural Environment  National culture  Organizational ethics and well-being  Diverse work force

13. 1-13 ©2005 Prentice Hall Diversity Challenges  Fairness and Justice  Decision-Making and Performance  Flexibility

14. 1-14 ©2005 Prentice Hall Evolving Global Environment  Understanding Global Differences  Improve Organization’s Behaviors and Procedures in Response to Those Differences

15. 1-15 ©2005 Prentice Hall Advancing Information Technology  Information  Knowledge  Information Technology  Organizational Learning  Intranets  Creativity  Innovation

16. 1-16 ©2005 Prentice Hall Shifting Work/ Employment Relationships  Downsizing  Empowerment and Self-Managed Teams  Contingent Workers  Outsourcing

17. 1-17 ©2005 Prentice Hall Appendix 1A: A Short History of Organizational Behavior  F.W. Taylor and Scientific Management  Mary Parker Follett  Hawthorne Studies  Theory X and Y

18. 1-18 ©2005 Prentice Hall F.W. Taylor and Scientific Management  Scientific management: the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency  The amount of and effort each employee expends to produce a unit of output can be reduced by increasing specialization and the division of labor

19. 1-19 ©2005 Prentice Hall Four Principles of Scientific Management  1. Study the way employees perform their tasks, gather informal job knowledge that employees possess, and experiment with ways of improving the way tasks are performed  2. Codify the new methods of performing tasks into written rules and standard operating procedures

20. 1-20 ©2005 Prentice Hall Four Principles of Scientific Management_2  3. Carefully select employees so that they possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures  4. Establish an acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level

21. 1-21 ©2005 Prentice Hall Mary Parker Follett  Management must consider the human side  Employees should be involved in job analysis  Person with the knowledge should be in control of the work process regardless of position  Cross-functioning teams used to accomplish projects

22. 1-22 ©2005 Prentice Hall The Hawthorne Studies  Hawthorne Works of the Western Electric Company; 1924-1932  Initiated as an attempt to investigate how characteristics of the work setting affect employee fatigue and performance (i.e., lighting)  Found that productivity increased regardless of whether illumination was raised or lowered

23. 1-23 ©2005 Prentice Hall The Hawthorne Studies_2  Factors influencing behavior: –Attention from researchers –Manager’s leadership approach –Work group norms  The “Hawthorne Effect”

24. 1-24 ©2005 Prentice Hall Douglas McGregor: Theory X and Theory Y Theory X  Average employee is lazy, dislikes work, and will try to do as little as possible  Manager’s task is to supervise closely and control employees through reward and punishment Theory Y  Employees will do what is good for the organization when committed  Manager’s task is create a work setting that encourages commitment to organizational goals and provides opportunities for employees to be exercise initiative