Introduction to Organizational Behavior Understanding and Managing Organizational

Introduction to Organizational Behavior Understanding and Managing Organizational Behavior Chapter 1 Sixth Edition Jennifer M. George & Gareth R. Jones Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -1

Learning 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 respond to events that take place in a work setting • Differentiate among the three levels at which organizational behavior is examined Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -2

Learning 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 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -3

Xerox’s CEOs turn the company around At Xerox, Mulcahy and Burns found a way to create a set of new organizational behaviors • Favorable work situation has been created because Xerox: Strives to increase employees’ skills and knowledge Provides employees at all levels with rewards to encourage high performance Creates a work setting in which employees develop a longer- term commitment to their organization Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -4

What Is an Organization? An organization is a collection of people who work together and coordinate their actions to achieve a wide variety of goals Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -5

What Is Organizational Behavior? Organizational behavior (OB) is 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 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -6

What Is Organizational Behavior? Exhibit 1. 1 Insert Exhibit 1. 1 here Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -7

Levels of Analysis Exhibit 1. 2 Organizational Level Group Level Individual Level Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -8

Components of Organizational Behavior Exhibit 1. 3 Part One Individuals in Organizations Understanding organizational behavior requires studying Part Two Group and Team Processes Part Three Organizational Processes Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -9

Why Study OB? • To understand behavior in organizations • To learn to use and apply concepts, theories, and techniques to improve, enhance, or change behavior • To enable managers to direct and supervise the activities of employees Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -10

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 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -11

Four Functions of Management Exhibit 1. 4 Planning Organizing Decide on organizational goals and allocate and use resources to achieve those goals Establish the rules and reporting relationships that allow people to achieve organizational goals Controlling Evaluate how well the organization is achieving goals and take action to maintain, improve, and correct performance Leading Encourage and coordinate individuals and groups so that they work toward organizational goals Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -12

OB Today: Trader Joe’s a Success Story Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -13

Managerial Roles Leader Figurehead Monitor Liaison Spokesperson Disseminator Disturbance handler Entrepreneur Negotiator Resource allocator Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -14

Managerial Skills Conceptual Skills Technical Skills Human Skills Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -15

An Open Systems View of Organizational Behavior Exhibit 1. 6 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -16

Challenges for OB 1: Changing Social/Cultural Environment 2: Evolving Global Environment 3: Advancing Information Technology 4: Shifting Work/Employment Relationships Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -17

Changing Social and Cultural Environment • National culture • Organizational ethics and well-being • Diverse workforce Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -18

Diversity Challenges Fairness and Justice Decision Making and Performance Flexibility Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -19

Challenges Created by Diverse Workforces Exhibit 1. 7 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -20

Evolving Global Environment Understanding Global Differences Global Learning Global Crisis Management Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -21

Crisis Management Decisions Creating teams to facilitate rapid decision making and communication Establishing the organizational chain of command reporting relationships necessary to mobilize a fast response Recruiting and selecting the right people to lead and work in such teams Developing bargaining and negotiating strategies to manage conflicts that arise whenever people and groups have different interests and objectives Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -22

Advancing Information Technology Organizational Information Learning Creativity Knowledge Innovation Information Technology Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -23

Shifting Work/Employment Relationships Downsizing Empowerment and Self-Managed Teams Contingent Workers Outsourcing Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -24

A Short History of Organizational Behavior Appendix 1 A: • F. W. Taylor and Scientific Management • Mary Parker Follett • Hawthorne Studies • Theory X and Y Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -25

F. W. Taylor and Scientific Management Scientific management is 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 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -26

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 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -27

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 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -28

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 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -29

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 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -30

The Hawthorne Studies_2 • Factors influencing behavior: Attention from researchers Manager’s leadership approach Work group norms • The “Hawthorne Effect” Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -31

Douglas Mc. Gregor: Theory X and Theory Y Employees will do what is good for the organization when committed Managers must create setting to encourage commitment to goals and provide opportunities for initiative 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 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 -32

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