Organizational Behavior CHAPTER 1 Organizational Behavior Opportunity and

Organizational Behavior: CHAPTER 1 Organizational Behavior, Opportunity and Challenges For Managers © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Objectives 1 Define organizational behavior. 2 Identify four action steps for responding positively in times of change. 3 Identify the important system components of an organization. 4 Describe the formal and informal elements of an organization. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2

Learning Objectives continued 5 Understand the diversity of organizations in the economy, as exemplified by the six focus organizations. 6 Recognize the opportunities that change creates for organizational behavior. 7 Demonstrate the value of objective knowledge and skill development in the study of organizational behavior. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3

Organizational Behavior Defined Organizational behavior is individual behavior and group dynamics in organizations. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4 ^ ^

The call to competition, contest or battle Times of Challenge and Change The transformation or modification of an organization and/or its stakeholders Lead to Opportunities Favorable times or chances for progress and advancement © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 ^ ^

Organizational Variables that Affect Human Behavior Communication Performance Appraisal Organizational Design Work Design Jobs Human Behavior Organizational Structure © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6 ^ ^

Two Perspectives on Human Behavior Internal Understands behavior through factors inside the person Interprets behavior through thoughts and feelings External Understands behavior through factors outside the person Interprets behavior through external events and environmental factors © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7 ^ ^

UNDERSTANDING HUMAN BEHAVIOR Thoughts Needs Feelings Experiences Internal Perspective: Examining individuals’ history & personal values External Perspective: Examining surrounding external events & environmental forces External Events Behavioral Consequences Environmental Forces Copyright © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible web site, in whole or in part. 8 © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Photos courtesy of Clips Online, © 2008 Microsoft Corporation

^ ^ Anthropology Psychology the science of human behavior Sociology the science of society the science of human learned behavior Engineering applied science Interdisciplinary the of energy and Influences on matter Organizational Behavior Medicine the applied science Management of healing or the study of overseeing treatment of activities and supervising diseases to enhance people in organizations an individual’s health and wellbeing 9 © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Behavior in Times of Change • In the midst of change, people often become rigid and reactive, rather than open and responsive • See the opportunity in change • • Have a positive attitude Ask questions Listen to the answers Be committed to success © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 ^ ^

Organizations as Open Systems • Organizations are open systems of interacting components • People, tasks, technology, and structure come together for a purpose • Internal components interact with external components in the task environment • Competitors • Customers • Vendors © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11 ^ ^

Internal Components of an Organization Task – an organization’s mission, purpose, or goal for existing People – the human resources of the organization Technology – the tools, knowledge, and/or techniques used to transform inputs into outputs Structure – the systems of communication, authority and roles, and workflow © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 ^ ^

^ ^ © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied

The Formal and 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 The importance of employees’ moods, emotions, and dispositional affect is a key factor in critical organizational outcomes. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14 ^ ^

Six Focus Organizations • Netflix, Inc. • Ford Motor Company • Oracle Corporation • Groupon • Dyson • Quik. Trip © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 ^ ^

The Challenges of Change Three challenges for managers relating to change in organizations: 1. Globalization leads to intense rivalry 2. Workforce diversity ◦ Ethnic ◦ Religious ◦ Gender 3. Ethics © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17 ^ ^

Quality Is… • 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 © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18 ^ ^

Three Key Questions in Evaluating Quality-Improvement Ideas • Does the idea improve customer response? • Does the idea accelerate results? • Does the idea raise the effectiveness of resources? © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19 ^ ^

Six Sigma • A philosophy for company-wide quality improvement • Characterized by • Customer-driven approach • Quantitative decision making • A priority on saving money © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20 ^ ^

Managers Act to Advance Total Quality �Engage in participative management �Be willing to change everything �Focus quality efforts on customer satisfaction (not cost cutting) �Include quality as a reward criterion �Communicate quality improvement successes (or failures) �Be actively and personally involved in quality efforts © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22 ^ ^

Challenges to Managing Organizational Behavior • Increasing globalization of organizations’ operating territory • Increasing diversity of organizational workforces • Continuing demand for higher levels of moral and ethical behavior at work © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23 ^ ^

Learning about Organizational Behavior • First, the science of organizational behavior requires the mastery of a certain body of objective knowledge from research and scientific activities • Second, the practice of organizational behavior requires skill development based on knowledge and an understanding of yourself • Third, both objective knowledge and skill development must be applied in real-world settings © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24 ^ ^

Trends Affecting Managers • Industrial restructuring • A dramatic increase in the amount and availability of information • A need to attract and retain the best employees • A need to understand a wide range of human and cultural differences • A rapid shortening of response times in all aspects of business activities © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 27 ^ ^

The Challenge for Managers Today Reweaving the fabric of human relationships within, across, and outside the organization requires • Trust • Predictability • A sense of security © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 28 ^ ^

Knowledge Becomes Power Information Theories Facts Knowledge base © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 29 ^ ^

Challenges for Managers © 2013 Cengage Learning. All Rights Reserved. May not be scanned,

Learning Objectives 1 Describe the dimensions of cultural differences in societies that affect workrelated attitudes. 2 Explain the social and demographic changes that are producing diversity in organizations. 3 Describe actions managers can take to help their employees value diversity. 4 Discuss the assumptions of consequential, rule -based, and character theories of ethics. 5 Explain six issues that pose ethical dilemmas for managers. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 31

Challenges To Remaining Competitive Managers must overcome these challenges: 1. Globalizing the firm’s operations 2. Leading a diverse workforce 3. Encouraging positive ethics, character, and personal integrity © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 32 ^ ^

Changing Business Perspectives International • Nationality is held strongly in consciousness Globalization • The world is free from national boundaries © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 33 ^ ^

Changing Business Perspectives Multinational • Doing business in several countries Transnational • Operating globally with multicultural staff © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 34 ^ ^

Changes in the Global Marketplace • Growing interest in China’s large emerging economy • To work with Chinese managers, Americans must build guanxi, the practice of building networks for social exchange • New opportunities within the integrated markets of the European Union • Reduction in trade barriers in accordance with the North American Free Trade Agreement © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 35 ^ ^

Understanding Cultural Differences Individualism – a cultural orientation in which people belong to loose social frameworks; primary concern for self and family Collectivism – a cultural orientation in which individuals belong to tightly knit social frameworks; depend on large extended families or clans Power distance – the degree to which a culture accepts unequal distribution of power Uncertainty avoidance – the degree to which a culture tolerates ambiguity and uncertainty © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 36 ^ ^

Understanding Cultural Differences Masculinity – the cultural orientation in which assertiveness and materialism are valued Femininity – the cultural orientation in which relationships and concern for others are valued Time orientation – whether a culture’s values are oriented toward the future (long-term orientation) or toward the past and present (short-term orientation) © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 37 ^ ^

U. S. Culture Individualism High power distance High uncertainty avoidance Masculinity Long-term orientation Collectivism Lowpower distance Low w uncertainty Low uncertaintyavoidance Femininity Short-term Short term orientation © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 39 ^ ^

Management Careers with a Global Dimension Expatriate manager – a manager who works in a country other than his or her home country International executive – an executive whose job has international scope © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 40 ^ ^

Competencies and Attributes of International Executives Key Competencies • Integrity • Insightfulness • Risk taking • Courage • Ability to bring out the best in others Learning Attributes • Cultural adventurousness • Flexibility • Openness to criticism • Sensitivity to cultural difference © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 41 ^ ^

Developing Cross-Cultural Sensitivity • • Use of mentor/protégé relationships Cultural sensitivity training Cross-cultural task forces/teams Global view of human resource management • • • Planning Recruitment and selection Compensation Training and development Multinational legal system knowledge Knowledge of global economics, culture, and customs © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 42 ^ ^

The Diverse Workforce Diversity: Diversity all forms of differences among individuals • Culture • Gender • Age • Ability • Religion • Personality • Social status • Sexual orientation © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 43 ^ ^

Changing U. S. Demographics By 2020, minorities will constitute more than one-half of the new entrants to the U. S. workforce. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 44 ^ ^

Women in the Workforce • By 2010, 70 percent of new entrants into the workforce will be women and/or people of color • Women now own nearly 10. 4 million American businesses • The glass ceiling is an intangible barrier that keeps women (and minorities) from rising above a certain level in organizations • In 2010, women held only 14. 4 percent of corporate officer positions in Fortune 500 companies • Median weekly earnings for women are 80% of their male counterparts © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 45 ^ ^

Age Diversity Silent Generation Baby Boomers Intergenerational Workplace Generation X Generation Y Direct experience with older workers reduces younger workers’ negative beliefs © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 46 ^ ^

Ability Diversity • Individuals with disabilities are an underutilized human resource • The Americans with Disabilities Act requires employers to make reasonable accommodations to permit workers with disabilities to perform jobs • A person with a disability is “anyone possessing a physical or mental impairment that substantially limits one or more major life activities” © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 47 ^ ^

Toughest Ethical Problems Reported by Managers • Employee theft • Environmental issues • Comparable worth of employees • Conflicts of interest • Sexual harassment © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 49 ^ ^

Ethical Theories Consequential theories Rule-based theories Character theories • Emphasize the results of behavior • Determine right and wrong based on consequences • Emphasize the character of the act itself • Based on universal moral rights and wrongs • Emphasize the character of the individual and their intent • Based on personal virtue © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 50 ^ ^

Employee Rights • Privacy issues related to technology • Drug testing • Free speech • Downsizing and layoffs • Due process • HIV/AIDS © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 51 ^ ^

Sexual Harassment Gender harassment • Crude comments or jokes and behavior that disparage gender Unwanted sexual attention • Unwanted touching or repeated unwanted pressures for dates Sexual coercion • Implicit demands for sexual favors with job-related threats or promises © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 52 ^ ^

Organizational Justice Distributive justice • The fairness of outcomes individuals receive Procedural justice • The fairness of the process by which outcomes are allocated Whistle-blowers inform authorities of wrongdoings by their company or coworkers © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 53 ^ ^

Social Responsibility • The obligation of an organization to behave ethically in the social environment in which it operates • Current concerns include • • The environment Worker safety Social issues Community investment © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 54 ^ ^

Codes of Ethics Codes of ethics must be anchored in a moral and ethical framework Individual codes Professional oaths Organizational credos © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 55 ^ ^