Chapter 1 Nelson Quick Introduction Organizational Behavior in

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

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

Organizational Behavior: Dynamics in Organizations Psychosocial Interpersonal Organizational Behavioral

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

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

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

Sociology Psychology the science of society the science of human behavior Anthropology the science of the learned behavior of human beings Engineering the applied science of energy & matter Interdisciplinary Influences on Organizational Behavior Management the study of overseeing activities and supervising people in organizations 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)

Open Systems View of Organization Inputs: Material Capital Human Task environment: Competitors Unions Regulatory agencies Clients 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 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 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 Authority structure Communication channels Products and services Informal organization (covert) Beliefs & assumptions Perceptions & attitudes Values Feelings, such as fear, joy anger, trust, & hope Group norms Informal leaders Social Surface

U. S. Gross Domestic Product Total $9. 3 Trillion 17% 6%11% 8% 38% 20%

Six Focus Organizations w w w Brinker International Enron* Harley Davidson Hewlett-Packard Patagonia American Heart Association *NOTE: Enron was in a state of turmoil at the time the book went to press. Visit the Nelson/Quick web site for updates on its current situation.

The Challenge of Change w Too much change = chaos w Too little change = stagnation How do you view change? Threat Opportunity

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

Quality w A potential means for giving organizations in viable industries a competitive edge in international competition w A rubric for products and services that are of high status w A customer-oriented philosophy of management with implications for all aspects of organizational behavior w 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 raise 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

CEOs Advance Total Quality by: w w w 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 w Being actively & personally involved in quality efforts

Seven Categories in the Malcolm Baldrige National Quality Award Examination w w w w 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

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 w Each student must accept responsibility for his/her own behavior, actions, & learning w Each student must actively participate in the individual/group structured learning activity w Each student must be open to new information, new skills, new ideas, and experimentation

Trends Affecting Managers w w w 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

Watchwords for Organizations in These Changing Times