1 Introduction to Organizational Behavior Understanding and Managing Organizational Behavior irre eli lg) Cau eae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 and respond to events that take place in a work setting " Differentiate among the three levels at which organizational behavior is examined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Management at [Link] = Rapid growth created need to motivate and coordinate employees to meet company goals Bezos emphasized — decentralized authority, — employee empowerment, — employee well-being, — leadership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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Exhibit 1.1 What Is Organizational Behavior? Organizational behavior Provides a set of tools that allow: 1 Managers to improve, enhance, People to understand, or change work behaviors so analyze, and describe that individuals, groups and behavior in organizations the whole organization can achieve their goals Crag neExhibit 1.2 Levels of Analysis Organizational Level Group Level Individual LevelExhibit 1.3 Components of Organizational Behavior Understanding organizational behavior requires studying Part One Individuals in Organizations Part Two Group and Team Processes Part Three Organizational Processes eee)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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ei eee im eee Management Planning " Organizing ™ Decide on organizational goals Establish the rules and and allocate and use —— reporting relationships that resources to | allow people to achieve those goals Beaten organizational goals | Controlling Leading a Evaluate how well the organization is achieving goals individuals and groups and take action to s0 that they work intain, improve, and correct ie performance [ igward organizational goals Encourage and coordinate Crag neOB Today: Dick’s Drive-In cer) Crag neManagerial Roles Figurehead Liaison Disseminator Entrepreneur Resource allocator Leader Monitor Spokesperson Disturbance handler NegotiatorManagerial Skills ~~, Conceptual Skills Technical Skills » ~ Human Skills Neoil yi ROMO) elt) CU View of Organizational Behavior ENVIRONMENT Conversion *Goods Organization Organization obtains inputs releases outputs to from its environment supplies of inputsChallenges for OB 1: Changing Social/Cultural Environment 2: Evolving Global Environment 3: Advancing Information Technology 4: Shifting Work/Employment RelationshipsChanging Social and Cultural Environment National culture Organizational ethics and well-being Diverse work forceDiversity Challenges « Fairness and Justice * Decision Making and Performance = FlexibilityExhibit 1.7 Challenges Created by PTET e Meld Ace) ees) Gender Capabilities/ Disabilities Socioeconomic Ethnici background Anny Sexual orientation Crag neEvolving Global Environment = Understanding Global Differences = Global Learning = Global Crisis Management Crag neCrisis Management Decisions Creating teams to facilitate rapid decision making and communication Establishing the organizational chain of command and 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Advancing Information Technology = Information = Organizational = Knowledge Learning = Information = Creativity Technology = InnovationShifting Work/Employment Relationships Downsizing Empowerment and Self-Managed Teams Contingent Workers Outsourcing yt ©2007 Prentice HallAppendix 1A: A Short History of ley feE Tlic m SEN ACle F.W. Taylor and Scientific Management Mary Parker Follett Hawthorne Studies Theory X and Y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Four Principles of Tel CU Com Ula le (ALLEL § = 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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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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The Hawthorne Studies _ 2 " Factors influencing behavior: — Attention from researchers —Manager’s leadership approach — Work group norms = The “Hawthorne Effect”Douglas McGregor: Theory X and Theory Y Theory X = Average employee is Theory Y = Employees will do 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 what is good for the organization when committed Managers must create setting to encourage commitment to goals and provide opportunities for initiative