Chapter 1 Introduction Organizational Behavior in Changing Times

Chapter 1 Introduction: Organizational Behavior in Changing Times Nelson & Quick

Organizational Behavior The study of individual behavior and group dynamics in organizational settings Communications Performance appraisal Work design Human Behavior Organizational Structure Jobs Organizational Design Organizational Variables

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

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

Psychology the science of human behavior Sociology the science of society Interdisciplinary Anthropology Influences on the science of the Organizational learned behavior Behavior of human beings Management the study of overseeing activities and supervising people in organizations Engineering the applied science of energy & matter Medicine the applied science of healing or treatment of diseases to enhance an individual’s health and well-being

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 (ch 02)

Organizations Task environment: as Systems Competitors Unions Regulatory agencies Clients Inputs: Material Capital Human Structure Task Technology Outputs: Products Services 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 Mc. Nally, Chicago, 1965, p. 1145. Reprinted by permission of James G. March

Formal vs. Informal Organization Formal Organization - the part of the organization that has legitimacy and official recognition Informal Organization - the unofficial part of the organization Hawthorne Studies: studies conducted during the 1920 s and 1930 s that discovered the existence of the informal organization

Formal & Informal Elements of Organizations Formal organization (overt) Goals & objectives Policies & procedures Job descriptions Financial resources Informal organization (covert) Beliefs & assumptions about people, work, the organization Perceptions & attitudes Values Feelings, such as fear, rage, despair, & hope Group norms Social Surface

U. S. Gross Domestic Product Total $9. 3 Trillion 15% 6%12% 8% 40% 19%

Six Focus Organizations • • • Ford Motor Company Gateway, Inc. Southwest Airlines Starbucks Corporation Harpo Entertainment Group American Red Cross

Change • Too much change = chaos • Too little change = stagnation How do you view change? Threat Opportunity

International Competition in Business Thurow: the next several decades in business will be characterized by intense competition among the United States, Japan, and Europe in core industries. Success will require: • positive response to the competition in the international marketplace • responsiveness to ethnic, religious, and gender diversity in the workforce

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

Cannot be optimized Quality 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 increase the effectiveness of resources? YES means the idea should improve overall quality

Total Quality Management the total dedication to continuous improvement and to customers so that the customers’ needs are met and their expectations exceeded Total Quality is NOT - a panacea for all organizations - a guarantee of unqualified success

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

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

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

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

The Organizational Behavior Student is a critical consumer of knowledge related to organizational behavior-one who is able to intelligently question the latest research results and distinguish plausible, sound new approaches from fads that lack substance or adequate foundation.

Learning from Structured Activity New or modified knowledge or skills (e. g. , consensus group decisions are better) Individual or group structured activity (e. g. group decision activity) Conclusions based on the systematic review (e. g. , the group did better) Systematic review of the structured activity (e. g. , compare individual & group results)

Three Assumptions Required for Learning from Structured Activity • Each student must accept responsibility for his or her own behavior, actions, & learning • Each student must actively participate in the individual or group structured learning activity • Each student must be open to new information, new skills, new ideas, and experimentation

Skills Identified by U. S. Department of Labor • • Resource management skills Information management skills Personal interaction skills Systems behavior & performance skills • Technology utilization skills

Watchwords for Organizations in These Changing Times