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Introduction to the Field of Organizational Behavior

Pixar Animation Studios

OB practices have helped Pixar Animation Studios to become the worlds most successful animation studio
Employee competencies People-centered

Teamwork and org learning


Constructive conflict

John Lassiter Chief Creative Officer of Pixar and Disney


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Organizational Behavior and Organizations

Organizational behavior
The study of what people think,

feel, and do in and around organizations

Organizations
Groups of people who work

interdependently toward some purpose

John Lassiter Chief Creative Officer of Pixar and Disney


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OB Foundations

Distinct field around the 1940s OB concepts discussed for more than 2,000 years Some pivotal scholars before OB formed include:
Max Weber Frederick Winslow Taylor Elton Mayo Chester Barnard (shown) Mary Parker Follett

Chester Barnard
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Why Study OB?


Satisfy the need to understand and predict Helps us to test personal theories Influence behavior get things done OB improves an organizations financial health OB is for everyone

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Old Perspective of Organizational Effectiveness


Goal oriented -- Effective firms achieve their stated objectives No longer accepted as indicator of org effectiveness

Could set easy goals

Some goals too abstract to

evaluate Company might achieve wrong goals

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Four Perspectives of Organizational Effectiveness


Open Systems Perspective Organizational Learning Perspective High-Performance WP Perspective Stakeholder Perspective
NOTE: Need to consider all four perspectives when assessing a companys effectiveness
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Open Systems Perspective

Organizations are complex systems that live within (and depend upon) the external environment Effective organizations
Maintain a close fit with changing conditions
Transform inputs to outputs efficiently and flexibly

Open systems perspective lays the foundation for the other three perspectives or organizational effectiveness
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Open Systems Perspective


Environment
Feedback Feedback

Feedback

Feedback

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Organizational Learning Perspective


An organizations capacity to acquire, share, use, and store valuable knowledge Need to consider both stock and flow of knowledge

Stock: intellectual capital


Flow: org learning processes of acquisition,

sharing, and use

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Intellectual Capital
Human Capital
Knowledge that people possess and generate

Structural Capital

Knowledge captured in systems and structures

Relationship Capital

Value derived from satisfied customers, reliable suppliers, etc.

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Organizational Learning Processes


KNOWLEDGE ACQUISITION
Extracting information and ideas from its environment as well as through insight

KNOWLEDGE SHARING
Distributing knowledge throughout the organization

KNOWLEDGE USE
Applying knowledge to organizational processes in ways that improves the organizations effectiveness

Examples in practice
Hiring skilled staff Posting case studies on intranet Giving staff freedom to try out ideas

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Organizational Memory
The storage and preservation of intellectual capital Retain intellectual capital by:

Keeping knowledgeable employees

Transferring knowledge to others


Transferring human capital to structural capital

Successful companies also unlearn

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High Performance Work Practices (HPWPs)


HPWPs are internal systems and structures that are associated with successful companies
1. Employees are competitive advantage 2. Value of employees increased through specific practices. 3. Maximum benefit when org practices are bundled

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High Performance Work Practices


No consensus, but HPWPs include:
Employee involvement and job autonomy (and

their combination as self-directed teams).

Employee competence (training, selection, etc.). Performance-based rewards

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Stakeholder Perspective

Stakeholders: any entity who affects or is affected by the firms objectives and actions Personalizes the open systems perspective

Challenges with stakeholder perspective:


Stakeholders have conflicting interests Firms have limited resources

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Stakeholder Perspective

Lockheed Martin is rated by engineering students as an ideal employer


Pays attention to its many

stakeholders Relies on values and ethics to guide decisions Strong emphasis on corporate social responsibility (e.g. photo shows clean-up after hurricane Katrina)

Lockheed Martin

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Stakeholders: Values and Ethics

Values and ethics prioritize stakeholder interests Values


Stable, evaluative beliefs, guide

preferences for outcomes or courses of action in various situations

Ethics
Moral principles/values,

determine whether actions are right/wrong and outcomes are good or bad
Lockheed Martin

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Stakeholders and CSR

Stakeholder perspective includes corporate social responsibility (CSR)


Benefit society and environment

beyond the firms immediate financial interests or legal obligations Organizations contract with society

Triple bottom line


Economy, society, environment

Lockheed Martin

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Types of Individual Behavior


Task Performance

Goal-directed behaviors under persons control

Organizational Citizenship

Contextual performance cooperation and helpfulness beyond required job duties

more
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Types of Individual Behavior


Counterproductive Work Behaviors

(cont)

Voluntary behaviors that potentially harm the organization

Joining/staying with the Organization

Agreeing to employment relationship; remaining in that relationship

Maintaining Work Attendance

Attending work at required times

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Globalization
Economic, social, and cultural connectivity with people in other parts of the world Effects of globalization on organizations

New structures

Increasing diversity
Increasing competitive pressures, intensification

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Increasing Workforce Diversity

Surface-level diversity
Observable demographic and other overt differences in

people (e.g. race, ethnicity, gender, age)

Deep-level diversity
Differences in psychological characteristics (e.g.

personalities, beliefs, values, and attitudes) Example: Differences across age cohorts (e.g. Gen-Y)

Implications
Leveraging the diversity advantage Also diversity challenges (e.g. teams, conflict) Ethical imperative of diversity
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Employment Relationships

Work/life balance
Minimizing conflict between work and nonwork

demands number one indicator of career success

Virtual work
Using information technology to perform ones job away

from the traditional physical workplace Telework issues of replacing face time, clarifying employment expectations

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Organizational Behavior Anchors

Multidisciplinary anchor
Many OB concepts adopted from other disciplines OB develops its own theories, but scans other fields

Systematic research anchor


OB researchers rely on scientific method
Should apply evidence-based management, but - Bombarded with theories and models - Challenge translating general theories to specific situations - Swayed by consultant marketing - Perceptual biases -- ignoring evidence contrary to our beliefs

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Organizational Behavior Anchors


(cont)

Contingency anchor
A particular action may have different consequences in

different situations Need to diagnose the situation and select best strategy under those conditions

Multiple levels of analysis anchor


Individual, team, organizational level of analysis OB topics usually relevant at all three levels of analysis

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