1 Introduction to Organizational Behavior

Understanding and Managing Organizational Behavior

Fifth Edition Jennifer M. George Gareth R. Jones

2007 Prentice Hall

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 persons 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

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Learning Objectives
Appreciate the way changes in an organizations 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

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Management at Amazon.com
Rapid growth created need to motivate and coordinate employees to meet company goals Bezos emphasized

decentralized authority,
employee empowerment, employee well-being, leadership
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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

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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

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Exhibit 1.1 What Is Organizational Behavior?

Insert Exhibit 1.1 here

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Exhibit 1.2 Levels of Analysis

Organizational Level
Group Level

Individual Level

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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

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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

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What Is Management?
Management is the process of planning, organizing, leading, and controlling an organizations human, financial, material, and other resources to increase its effectiveness

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Exhibit 1.4 Four Functions of Management

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

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OB Today: Dicks Drive-In

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Managerial Roles
Figurehead Leader

Liaison
Disseminator Entrepreneur

Monitor
Spokesperson Disturbance handler

Resource allocator

Negotiator

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Managerial Skills

Conceptual Skills

Technical Skills

Human Skills

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Exhibit 1.6 An Open Systems View of Organizational Behavior

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Challenges for OB
1: Changing Social/Cultural Environment 2: Evolving Global Environment 3: Advancing Information Technology

4: Shifting Work/Employment Relationships

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Changing Social and Cultural Environment National culture Organizational ethics and well-being Diverse work force

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Diversity Challenges
Fairness and Justice

Decision Making and Performance

Flexibility

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Exhibit 1.7 Challenges Created by Diverse Workforces

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Evolving Global Environment

Understanding Global Differences Global Learning

Global Crisis Management

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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
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Advancing Information Technology

Information Organizational Learning Creativity Innovation

Knowledge
Information Technology

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Shifting Work/Employment Relationships Downsizing

Empowerment and Self-Managed Teams

Contingent Workers Outsourcing

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Appendix 1A: A Short History of Organizational Behavior F.W. Taylor and Scientific Management Mary Parker Follett Hawthorne Studies

Theory X and Y

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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

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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

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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
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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
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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
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The Hawthorne Studies_2

Factors influencing behavior:

Attention from researchers

Managers leadership approach Work group norms The Hawthorne Effect

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Douglas McGregor: Theory X and Theory Y

Theory X Theory Y

Average employee is lazy, dislikes work, and will try to do as little as possible Managers task is to supervise closely and control employees through reward and punishment

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
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