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© 2003 Prentice Hall Inc. All rights reserved. PowerPoint Presentation by Charlie Cook
OBJECTIVES AFTER STUDYING THIS
CHAPTER,
YOU SHOULD BE ABLE TO:
1. Define organizational behavior (OB).
2. Describe what managers do.
LEARNING

3. List the major challenges and

opportunities for managers to use OB
concepts.

2
What Managers Do

Managerial
ManagerialActivities
Activities
••Make
Makedecisions
decisions
••Allocate
Allocateresources
resources
••Direct
Directactivities
activitiesof
ofothers
others
to
toattain
attaingoals
goals

3
Where Managers Work

4
Management Functions

Planning Organizing

Management
Functions

Controlling Leading

5
Management Functions
(cont’d)

6
Management Functions
(cont’d)

7
Management Functions
(cont’d)

8
Management Functions
(cont’d)

9
Mintzberg’s Managerial Roles

EXHIBIT 1-1a

10
Mintzberg’s Managerial Roles
(cont’d)

EXHIBIT 1-1b

11
Mintzberg’s Managerial Roles
(cont’d)

EXHIBIT 1-1c
12
Management Skills

13
Effective Versus Successful
Managerial Activities
(Luthans)
1.
1.Traditional
Traditionalmanagement
management
• •Decision
Decisionmaking,
making,planning,
planning,and
andcontrolling
controlling
1.
1.Communications
Communications
• •Exchanging
Exchangingroutine
routineinformation
informationand
andprocessing
processing
paperwork
paperwork
1.
1.Human
Humanresource
resourcemanagement
management
• •Motivating,
Motivating,disciplining,
disciplining,managing
managingconflict,
conflict,staffing,
staffing,
and
andtraining
training
1.
1.Networking
Networking
• •Socializing,
Socializing,politicking,
politicking,and
andinteracting
interactingwith
withothers
others

14
Allocation of Activities by
Time

EXHIBIT 1-2

15
Enter Organizational Behavior

16
There Are Few Absolutes in
OB

x Contingency
Variables y
17
There Are Few Absolutes in OB

 There are few, if any, simple and universal

principles that explain organizational
behavior. Human beings are complex.
Because they are not alike, our ability to
make simple, accurate, and sweeping
generalizations is limited.

18
 That does not mean, of course, that we
cannot offer reasonably accurate
explanations of human behavior or make
valid predictions. It does mean, however, that
OB concepts must reflect situational, or
contingency, conditions.

19
Contingency variables—
situational factors
 are variables that moderate the relationship
between the independent and dependent
variables. Using general concepts and then
altering their application to the particular
situation developed the science of OB.

20
Challenges and Opportunities
of OB

21
. Responding to Globalization
 Organizations are no longer constrained by national
borders.Globalization affects a manager’s people
skills in at least two ways.
 First, if you are a manager, you are increasingly
likely to find yourself in a foreign assignment.
 Second, even in your own country, you are going to
find yourself working with bosses, peers, and other
employees who were born and raised in different
cultures.

22
Managing Workforce
Diversity
 Workforce diversity is one of the most
important and broad-based challenges
currently facing organizations. While
globalization focuses on differences between
people from different countries, workforce
diversity addresses differences among
people within given countries..

23
Workforce diversity contd..
 Workforce diversity means that organizations
are becoming more heterogeneous in terms of
gender, race, and ethnicity.
 It is an issue in Canada, Australia, South Africa,
Japan, and Europe as well as the United States.
 A melting-pot approach assumed people who
were different would automatically assimilate.
 Employees do not set aside their cultural values
and lifestyle preferences when they come to
work

24
Contd.
 The melting pot assumption is replaced by one that
recognizes and values differences.
 Members of diverse groups were a small
percentage of the workforce and were, for the most
part, ignored by large organizations (pe-1980s);
now:47 percent of the U.S. labor force are women
 Minorities and immigrants make up 23 percent
More workers than ever are unmarried with no
children.

25
Contd.

 Workforce diversity has important

implications for management practice. Shift to
recognizing differences and responding to
those differences
 Providing diversity training and revamping
benefit programs to accommodate the
different needs of employees

26
. Improving Quality and
Productivity
 Total quality management (TQM) is a
philosophy of management that is driven by the
constant attainment of customer satisfaction
through the continuous improvement of all
organizational processes.Implementing quality
programs requires extensive employee
involvement .

27
Improving productivity
contd….
 Process reengineering asks the question:
“How would we do things around here if we
were starting over from scratch?” Every
process is evaluated in terms of contribution to
goals Rather than make incremental changes,
often old systems are eliminated entirely and
replaced with new systemsTo improve
productivity and quality, managers must
include employees

28
Responding to the Labor
Shortage
 If trends continue as expected, the U.S. will have a
labor shortage for the next 10-15 years (particularly
in skilled positions).
 The labor shortage is a function of low birth rates
and labor participation rates (immigration does little
to solve the problem).
 Wages and benefits are not enough to keep
talented workers. Managers must understand
human behavior and respond accordingly.

29
Improving Customer Service and
People Skills
 The majority of employees in developed countries
work in service jobs—jobs that require substantive
interaction with the firm’s customers. For example,
80 percent of U.S. workers are employed in service
industries.
 Employee attitudes and behavior are directly
related to customer satisfaction requiring
management to create a customer responsive
culture.
 People skills are essential to managerial
effectiveness.OB provides the concepts and
theories that allow managers to predict employee
behavior in given situations.

30
Empowering People
 Today managers are being called coaches, advisers,
sponsors, or facilitators, and in many organizations,
employees are now called associates. There is a blurring
between the roles of managers and workers; decision
making is being pushed down to the operating level, where
workers are being given the freedom to make choices about
schedules and procedures and to solve work-related
problems. Managers are empowering employees. They are
putting employees in charge of what they do. Managers
have to learn how to give up control.
 Employees have to learn how to take responsibility for their
work and make appropriate decisions.

31
Coping with “Temporariness”
 H. Managers have always been concerned with
change:What is different today is the length of time
between changes
 Change is an ongoing activity for most managers.
The concept of continuous improvement, for
instance, implies constant change
 In the past, managing could be characterized by
long periods of stability, interrupted occasionally by
short periods of change.

32
Temporariness contd…..
 Today, long periods of ongoing change are
interrupted occasionally by short periods of stability!
 Permanent “temporariness”: Both managers and
employees must learn to live with flexibility,
spontaneity, and unpredictability The jobs that
workers perform are in a permanent state of flux, so
workers need to continually update their knowledge
and skills to perform new job requirements.
 Work groups are also increasingly in a state of flux.

33
 Predictability has been replaced by temporary work
groups, teams that include members from different
departments and whose members change all the time,
and the increased use of employee rotation to fill
constantly changing work assignments.
 Organizations themselves are in a state of flux. They
reorganize their various divisions, sell off poor-
performing businesses, downsize operations,
subcontract non-critical services and operations to other
organizations, and replace permanent employees with
temporarie s.

34
I. Stimulating Innovation and
Change
 Successful organizations must foster
innovation and the art of change.Companies
that maintain flexibility, continually improve
quality, and beat their competition to the
marketplace with innovative products and
services will be tomorrow’s
winners.Employees are critical to an
organization’s ability to change and
innovate.

35
Helping Employees Balance
Work-Life Conflicts
 The creation of the global workforce means work no
longer sleeps. Workers are on-call 24-hours a day or
working non-traditional shifts.Communication
technology has provided a vehicle for working at any
time or any place.Employees are working longer hours
per week—from 43 to 47 hours per week since 1977.
 The lifestyles of families have changes creating conflict:
more dual career couples and single parents find it hard
to fulfill commitments to home, children, spouse,
parents, and friends.Employees want jobs that allow
flexibility and provide time for a “life.”

36
Improving Ethical Behavior
 In an organizational world characterized by
cutbacks, expectations of increasing worker
productivity, and tough competition, many
employees feel pressured to engage in
questionable practices.
 Members of organizations are increasingly finding
themselves facing ethical dilemmas in which they
are required to define right and wrong

37
 conduct.Examples of decisions employees
might have to make are:“Blowing the whistle”
on illegal activitiesFollowing orders with
which they do not personally agreePossibly
giving inflated performance evaluations that
could save an employee’s jobPlaying politics
to help with career advancement, etc.

38
 Organizations are responding to this issue
by:Writing and distributing codes of ethics
 Providing in-house advisorsCreating protection
mechanisms for employees who reveal internal
unethical practicesManagers need to create an
ethically healthy environment for employees where
they confront a minimal degree of ambiguity
regarding right or wrong behaviors.

39
The Evolution of Management
Theory

Figure 2.1
40
Job Specialization and
the Division of Labor
Adam Smith (18th century economist)
 Observed that firms manufactured pins in

one of two different ways:

- Craft-style—each worker did all steps.
- Production—each worker specialized in one
step.

41
Job Specialization and
the Division of Labor
 Job Specialization
 process by which a division of labor occurs as
different workers specialize in specific tasks over
time

42
Job Specialization and
the Division of Labor
 Workers who specialized became much
more skilled at their specific tasks
 Increasing job specialization increases
efficiency and leads to higher organizational
performance

43
F.W. Taylor and Scientific
Management
Scientific Management
The systematic study of the relationships
between people and tasks for the purpose
of redesigning the work process to increase
efficiency.

44
Four Principles of Scientific
Management
1) Study the way workers perform their tasks,
gather all the informal job knowledge that
workers possess and experiment with ways of
improving how tasks are performed
• Time-and-motion study

45
Four Principles of Scientific
Management
2) Codify the new
methods of
performing tasks into
written rules and
standard operating
procedures

46
Four Principles of Scientific
Management
3) Carefully select workers who 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

47
Four Principles of Scientific
Management
4) Establish a fair or acceptable level of
performance for a task, and then develop
a pay system that provides a reward for
performance above the acceptable level

48
Problems with Scientific
Management
 Managers frequently implemented only the
increased output side of Taylor’s plan.
 Workers did not share in the increased output.

 Specialized jobs became very boring, dull.

 Workers ended up distrusting the Scientific

Management method.
 Workers could purposely “under-perform.”
 Management responded with increased use of

machines and conveyors belts.

49
The Gilbreths

1. Break up and analyze every individual

action necessary to perform a particular
task into each of its component actions
2. Find better ways to perform each
component action

50
The Gilbreths

3. Reorganize each of the component actions

so that the action as a whole could be
performed more efficiently-at less cost in
time and effort

51
Behavioral Management
Theory
Behavioral Management
 The study of how managers should personally
behave to motivate employees and encourage
them to perform at high levels and be committed
to the achievement of organizational goals.

52
Behavioral Management

Mary Parker Follett

 Concerned that Taylor ignored the human

side of the organization

 Suggested workers help in analyzing their jobs
 If workers have relevant knowledge of the task,
then they should control the task

53
 ELTON MAYO
THE
HAWTHORNE
STUDIES
Studies carried out at the Hawthorne
Plant of the Western Electric Company
in Chicago between 1927 and 1932
HUMAN RELATIONS SCHOOL

 Due to unrest caused by Taylor’s scientific

principles in the 20’s and 30’s work was
carried out based in the ‘human side’ of
workers – not focusing on money
 Elton Mayo was one of the main theorists
involved.

55
Background on Mayo

 Born in Adelaide, South Australia in 1880

 Died in Surrey in 1949
 Worked in Australia, UK and the USA on
various projects and lecturing

56
History of the Hawthorne
Studies
 Background: Mayo wanted to find out what
effect fatigue and monotony had on job
productivity and how to control them through
variables such as
 Rest breaks
 Work hours
 Temperatures
 Humidity
57
In the process….

 He found a principle of human motivation that

would help to revolutionise the theory and
practice of management

58
The experiment

 6 women from an assembly line

 Segregated them from the rest of the factory
 Put them under the eye of a supervisor (a
friendly observer)
 Made frequent changes to their working
conditions
 Always discussed and explained the changes
in advance
59
The changes

 Changed the hours in the working week and

in the working day
 Increased and decreased the number of work
breaks and the time of the lunch hour
 Occasionally he would return the women to
their original, harder working conditions

60
The findings

 Under normal conditions with a 48 hour

week, including Saturdays and no rest
pauses:

 Team produced 2400 relays per week each

61
 Findings during
experiment
 They were put on piecework for 8 weeks

 Output went up

 Rest pauses were introduced for 5 weeks

 Output went up

62
 Rest pauses were lengthened to 10 minutes

 Output went up

 Six 5-min pauses were introduced and the girls

complained that their work rhythm was broken

 Output fell very slightly

 Return to 2 rest pauses the first with a hot meal

supplied free of charge

 Output went up

63
 Group were dismissed at 4.30 pm instead
of 5.00 pm

 Output went up

 They were dismissed at 4.00 pm

 Output remained the same

 Finally all improvements were taken away

and the team went back to the conditions
at the beginning of the experiment

 Output was the highest ever recorded at

3000 relays per week per person

64
What happened during the
experiment?
 The individuals became a team and the team gave
wholehearted co-operation with the experiment
 They were happy in the knowledge that they were
doing what they wanted to do
 They felt they were working under less pressure than
before
 They were not pushed around or bossed by anyone
 Under these conditions they developed an increased
sense of responsibility which came from within the
group itself

65
Mayo’s Conclusions

 Individual workers cannot be treated in isolation but

must be seen as members of a group
 Monetary incentives and good working conditions are
less important to the individual than the need to
belong to a group
 Informal or unofficial groups formed at work have
strong influence on behaviour
 Managers must be aware of these ‘social needs’ and
cater for them to ensure that employees work with
the organisation rather than against it

66
Understanding Organization
Behavior
Organizational Behavior
 The study and application of knowledge about how
people – as individuals and as groups – act within
organizations.

Goals of Organizational Behavior

 Describe
 Understand
 Predict
 Control

67
Understanding Organization
Behavior
Forces

 People
 Make up the internal social system of the organization

 Structure
 Defines the formal relationship and use of people in

organizations
 Technology
 Provides the resources with which people work and affects the

tasks that they perform

 Environment
 It is where organizations operate

68
Fundamental Concepts

Figure 1-1

Key forces
affecting
organizationa
l
behavior

69
Fundamental Concepts

Figure 1-2

The interaction of theory, research, and practice in

organizational behavior

70
Fundamental Concepts
The Nature of People
 Individual Differences
 Perception
 A Whole Person
 Motivated Behavior
 Desire for Involvement
 Value of the Person

The Nature of Organizations

 Social Systems
 Mutual Interest
 Ethics

71
Fundamental Concepts

Figure 1-4

Mutual interest provides super ordinate goal for

employees, the organization, and society

72
Fundamental Concepts

Figure 1-7

Cost benefit analysis of organizational behavior

options

73
Continuing Challenges

 Seeking Quick Fixes

 Varying Environments

 Lack of a Single Definition

74
Chapter Two

Models of
Organizational Behavior

76
Chapter Objectives

 To understand:
 The elements of an organizational behavior
system
 The role of management’s philosophy and
paradigms
 Alternative models of organizational behavior and
their effects
 Trends in the use of these models

77
An Organizational Behavior
System
 An organizational behavior system is…
 Purposely created and used
 Regularly examined and updated
 Typical outcomes…
 Performance (measured by the quantity & quality of
products & services)
 Employee satisfaction (measured by absenteeism,
turnover)
 Personal growth and development (measured by the
acquisition of skills and knowledge)

78
An Organizational Behavior
System

 Elements of the System

 Fact (our view of how the world behaves) and value premises
(desirability of certain goals and activities)
 Vision (a possible and desirable future)
 Mission (the reason for its existence)
 Goals (short-, intermediate-, long-term)

79
An Organizational Behavior
System

80
Models of Organizational
Behavior
 Based on the theory of human behavior
managers hold (McGregor)
 Theory X
 Theory Y
 Managers tend to act as they think

81
DOUGLAS MCGREGOR
THEORY X AND THEORY Y
 McGregor, an American social psychologist,
proposed his famous theory in his book

 “The Human Side of Enterprise”

 In his book he examined theories on
behaviour of individuals at work , he has
formulated 2 models

82
THEORY X ASSUMPTIONS
(Authoritarian Management
Style)
 The average human being has an inherent

dislike of work and will avoid it if he/she can

 Most people must be controlled/threatened if
they are to work hard
 The average human prefers to be directed,
dislikes responsibility, is unambiguous, and
desires security above everything else
 Similar view to FWT
83
THEORY Y ASSUMPTIONS
(Participative Management Style)
 Effort in work is as natural as work and play
 Control and punishment are not the only ways to
make people work man will direct himself if he is
committed to the goals of the org
 If a job is satisfying then the result will be
commitment to the organisation
 The average man learns not only to accept but to
seek responsibility
 Similar view to Mayo

84
 Imagination, creativity and ingenuity can be
used to solve work problems by a large
number of employees
 Under the conditions of modern industrial life
the intellectual potential of the average man
is only partly utilised

85
SO… managerial style can be
seen as:-

X MANAGERIAL STYLE Y
 Manager has Theory Y
 Manager has attitude towards staff
Theory X attitude  Workers are creative
toward staff  Workers given
 No worker responsibility
initiative
 Autocratic

86
DIAGRAM THEORY X

MANAGEMENT

Authoritarian and repressive

style. Tight control, no
development. Produces
limited depressed culture

STAFF

87
DIAGRAM THEORY Y

STAFF

Theory Y – liberating and

developmental, control and
achievement

MANAGEMENT

88
Findings

 McGregor sees the 2 theories as quite

different attitudes

89



X
Can range from soft to hard approach
It is part of the managers job to exercise authority and there
are cases when this is the only method that will get results
 Much of behaviour in organisations reflects the Theory X view
 X is limited and unrealistic and relies on authority as the
primary means of control
 Hard approach results in hostility, purposefully low output and
hard union demands
 Optimal approach would be somewhere between hard and soft
– middle ground

90
The problem with X

 X relies on money to motivate

 Once the need for money subsides the drive
for motivation is lost
 Does not allow workers to reach higher levels
of motivation as shown by Maslow

91
Y
 Theory Y is difficult to put into practice on the shop floor
 Level of maturity of staff will play a large part
 Y can be used initially in the managing of management
 Y is conducive to participative problem solving
 Y will lead to higher motivation
 Y can be seen in the successful Japanese Management
technique - TQM

92
Implications for management

 Decentralisation and Delegation can be used

freely in a Y environment
 Delayering and reduction in management
levels – flatter structures
 Job enlargement – broadening the scope of
an employee’s job adds variety

93
 Participative Management – consulting
employees in the decision making process
taps their creative capacity
 Performance Appraisals having the
employees set objectives and participate in
evaluation

94
Models of Organizational
Behavior
 Managerial paradigms…(possible explanations about
how things work)
 Influence managerial perceptions of the world
 Define boundaries and for how to behave
 Encourage resistance to change
 Consciously or unconsciously affect one’s behavior
 New paradigms provide alternative ways of viewing the
world and solving problems
 Man on the train
 Having a child
 Paradigm test

95
Models of Organizational
Behavior

Autocratic, Custodial, Supportive, Collegial,

System

96
Model Characteristics

97
The Autocratic Model

 Based on power and authority

 Leads to tight control of employees
 Is intensely disliked by many employees
 Orientation is obedience to a boss
 Psychological result is dependence
 Useful for accomplishing work
 Principal weakness is high human cost

98
The Custodial Model

 Designed to dispel employee insecurities,

frustrations, and aggressions
 In its worst form, is paternalism
 Evolved from 1930’s welfare programs
 Success depends on economic resources
 Leads to dependence on the organization
 Employees become psychologically preoccupied
with economic rewards and benefits
 Does not produce top productivity, motivation, or
desire to grow
99
The Supportive Model

 Originated with the “principle of supportive

relationships”
 Sparked by Hawthorne studies
 Depends on leadership, not power or money
 Management orientation is to support the employee’s
job performance
 Supportive behavior does not require money
 Works well with both employees and managers
 Theory is difficult to put into practice
 Especially effective in affluent nations
100
The Collegial Model

 An extension of the supportive model

 Embodies a team concept
 Most useful with unscripted work, intellectual
environment, and considerable job freedom
 Depends on partnership between management
and employees
 Managerial orientation is teamwork
 Psychological result is self-discipline
 Can produce moderate enthusiasm

101
The System Model

 The result of a strong search for higher

meaning at work by today’s employees
 Managers must demonstrate caring, compassion,
sensitivity
 Reflects positive organizational behavior
 Requires authenticity and social intelligence
 Management role is facilitating employee
accomplishments
 Employees experience psychological ownership and self-
motivation
 Can engender passion and commitment to goals

102
Conclusions About the Models

 Evolving Usage
 Function of prevailing employee needs
 No permanently “best” model
 Monitor effectiveness of current model
 Relation of Models to Human Needs
 Compare to Maslow (chapter 5)
 Adaptive approach (based on the needs of people
at that moment)
 Build on previous models
103
Conclusions About the Models

 Increasing Use of Some Models

 Trend toward supportive, collegial, and system
models will continue
 Top managers of giant, complex organizations
cannot be authoritarian (not effective)
 Contingent Use of All Models
 One model may be used most
 Some uses for other models will remain
 More advanced models will have growing use

104
Conclusions About the Models

 Managerial Flexibility
 Managers must identify their current behavioral
model
 It must be kept flexible and current
 There is great danger is paradigm rigidity

105
Human Relations Guidelines
1. Be
2. Be optimistic 3. Be
positive genuinely
interested in
others
4. Smile and 5. Call people
develop a by name
sense of
humor

6. Listen to
others 7. Help others

8. Think 9. Create a
before you act win-win Exhibit 1.4

situation 106