4e
Nelson/Quick
Chapter 1
Organizational
Behavior and
Opportunity
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Learning Outcome
 Define organizational behavior
 Identify four action steps for responding positively
in times of change
 Identify the important system components of an
organization
 Describe the formal and informal elements of an
organization
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Learning Outcome
 Identify factors that contribute to the diversity of
organizations in the economy
 Describe the opportunities that change creates for
organizational behavior
 Demonstrate the value of objective knowledge and
skill development in the study of organizational
behavior
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Learning Outcome
Define organizational behavior
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Human Behavior in Organizations
 Opportunities: Favorable times or chances for
progress and advancement
 Change: Transformation or modification of an
organization and/or its stakeholders
 Challenge: Call to competition, contest, or battle
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Organizational Behavior
Study of individual behavior and group
dynamics in organizations
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Organizational Behavior: Dynamics in
Organizations
Psychosocial
Organizational
Behavior
Behavioral
Interpersonal
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Organizational Variables that
Affect Human Behavior
Jobs
Work Design
Communication
Performance
appraisal
Organizational
design
Organizational
structure
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External and Internal Perspective
Internal perspective
External perspective
• Looks at workers’ minds
to understand their
behavior
• Focuses on the
thoughts, feelings, past
experiences, and needs
of the individual
• Focuses on factors
outside the person to
understand behavior
• Includes external events,
consequences, and
environmental forces
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Interdisciplinary Influences on
Organizational Behavior
Psychology
Sociology
Engineering
• Science of human
behavior
• Science of society
• Applied science of
energy and matter
Anthropology
Management
Medicine
• Science of human
learned behavior
• Overseeing
activities and
supervising people
• Applied science of
healing or treating
diseases
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Learning Outcome
Identify four action steps for responding
positively in times of change
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Reactions to Change
Rigid and
Reactive
Open and
Responsive
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Learning Outcome
Identify the important system components of
an organization
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Components of an Organization
Task
• Organization’s mission, purpose, or goal for existing
People
• Human resources of the organization
Technology
• Tools, knowledge, and/or techniques used to transform inputs into
outputs
Structure
• Tools, knowledge, and/or techniques used to transform inputs into
outputs
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Figure 1.1 - An Open-Systems View
of Organization
SOURCE: Based on H. Leavitt, “Applied Organizational Change in Industry: Structural, Technological, and Humanistic Approaches,” in J. G. March, ed.,
Handbook of Organizations (Chicago: Rand McNally, 1965), 1145. Reprinted by permission of James G. March.
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Learning Outcome
Describe the formal and informal elements of
an organization
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Formal vs. Informal Organization
 Formal organization: Official, legitimate, and most
visible part of the system
 Informal organization: Unofficial and less visible
part of the system
 Hawthorne studies: Studies conducted during the
1920s and 1930s that suggested the importance of
the informal organization
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Figure 1.2 - Formal & Informal
Elements of Organizations
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Learning Outcome
Identify factors that contribute to the
diversity of organizations in the economy
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Sectors of the U.S. Economy
Private sector
Nonprofit
sector
Large and
small
organizations
Government
sector
Manufacturing
sector
Service sector
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Learning Outcome
Describe the opportunities that change
creates for organizational behavior
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Global Competition in Business
Increased Global Competition
Radical Change
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Global Competition in Business
 Characterized by intense rivalry
 Employees face increased pressure to be productive
and to add value to the firm
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Quality
 Gives organizations a competitive edge in
international competition
 Total quality management (TQM) - Total dedication
to continuous improvement and to customers
 Focuses on meeting customer needs and exceeding
their expectations
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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?
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Six Sigma
High-performance system for executing business
strategy
• Is Customer-driven
• Emphasizes quantitative decision making
• Places a priority on saving money
Phases for tackling problems
•
•
•
•
Measure
Analyze
Improve
Control
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Table 1.1 - Contrasting Six Sigma and
Total Quality Management
SOURCE: M. Barney, “Motorola’s Second Generation,” Six Sigma Forum Magazine (May 2002): 13.
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Behavior and Quality at Work
 Ways to advance total quality
 Engaging in participative management
 Willingness to change
 Focusing quality efforts on customer service
 Including quality as a norm in reward systems
 Improving the flow of information regarding qualityimprovement successes or failures
 Being actively and personally involved in quality
efforts
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Seven Categories in Malcolm Baldrige
National Quality Award Examination
Leadership
Information and
analysis
Strategic quality
planning
Human resource
utilization
Quality assurance
of products and
services
Quality results
Customer
satisfaction
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Challenges to Managing
Organizational Behavior
 Increasing globalization of organizations’ operating
territory
 Increasing diversity of organizational workforces
 Continuing technological innovation with its
companion need for skill enhancement
 Continuing demand for higher levels of moral and
ethical behavior at work
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Learning Outcome
Demonstrate the value of objective
knowledge and skill development in the study
of organizational behavior
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 1.3 - Learning about
Organizational Behavior
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Objective Knowledge
 Knowledge that results from research and scientific
activities
 Provided by organizational behavior by:
 Theories
 Conceptual models
 Research findings
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Skill Development
 Mastery of abilities essential to successful
functioning in organizations
 Essential skills identified by the U.S. Department of
Labor
 Resource management skills
 Information management skills
 Personal interaction skills
 Systems behavior and performance skills
 Technology utilization skills
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 1.4 - Learning from Structured
Activity
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Three Assumptions for Learning
from Structured Activity
Each student must accept responsibility for his/her
own behavior, actions, and learning
Each student must actively participate in the
individual/group structured learning activity
Each student must be open to new information, new
skills, new ideas, and experimentation
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Application of Knowledge and Skills
 Structured, experiential learning helps explore new
behaviors and skills in a comparatively safe
environment
 Educates students rather than training them in
organizational behavior
 Students become coproducers in learning
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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In Good Company
 The film sequence shows three people interacting in a
work environment. Which aspects of organizational
behavior and management discussed earlier in this
chapter appear in this sequence?
 The three people in this sequence represent different
management levels in the company. Which levels do
you attribute to Carter Duryea, Dan Foreman, and Mark
Steckle?
 Critique the behavior shown in this sequence. What are
the positive and negative aspects of the behavior
shown.
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Holden Outerwear
 Using the open systems view of organizations,
describe Holden Outerwear’s internal and external
environment.
 How has globalization influenced Holden’s business
and created opportunity?
 What are some challenges of globalization for
managers at Holden?
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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