1-1 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-2 Introduction to Organizational Behavior McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. What is an Organization? 1-3 • An organization is a collection of people who work together to achieve individual and organizational goals • Individual goals • Organizational goals McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Introduction 1-4 • Organizations are much more than only a means for providing goods and service • They create the settings in which most of us spend our lives • They have profound influence on employee behavior McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. What is Organizational Behavior? 1-5 • Organizational behavior (OB): 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 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-6 The core 21st century qualities needed to create the ideal work atmosphere begin with intelligence, passion, a strong work ethic, and a genuine concern for people. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Managing and Working Today and in the Future: 1-7 • Managers must become agile and flexible to help their firms develop and sustain competitive advantage • To be successful, managers will need to harness the powers of: • information technology • human capital McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Environmental Forces Reshaping Management Practice 1-8 Power of Human Resources Globalism Rapidity of Change McGraw-Hill/Irwin Cultural Diversity New WorkerEmployer Psychological Contract Technology © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-9 Challenges of These Forces to Managers • Failing to cope and deal • Resisting the reality of with these forces will likely these forces will likely lead result in: to: • Job dissatisfaction • Unnecessary conflict • Poor morale • Reduced managerial • Reduced commitment performance • Lower work quality • Reduced non• Burnout managerial performance • Poor judgment • Lost opportunities • Unhealthy consequences McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. The Origins of Management Frederic W. Taylor’s Scientific Management Principles McGraw-Hill/Irwin 1-10 Henri Fayol’s Functions of Management © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Taylor’s Scientific Management Principles 1-11 (1 of 2) • Develop a science for each element of an employee’s work • which replaces the old rule-of-thumb method • Scientifically select and then train, teach, and develop the worker • whereas in the past a worker chose the work to do and was self-trained McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Taylor’s Scientific Management Principles 1-12 (2 of 2) • Heartily cooperate with each other to insure that all work was done in accordance with the principles of science • There is an almost equal division of the work and the responsibility between management and non-managers McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-13 Impact of Fayol’s Functions of Management • Emphasized the importance of carefully practicing efficient: • planning • organizing • commanding • coordinating • controlling McGraw-Hill/Irwin • Management is a separate body of knowledge that can be applied in any type of organization • A theory of management that can be learned and taught • There is a need for teaching management in colleges © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-14 Definition of Organizational Behavior (OB) • The study of human behavior, attitudes, and performance within an organizational setting • drawing on theory, methods, and principles from such disciplines as psychology, sociology, political science, and cultural anthropology • to learn about individual, groups, structure, and processes McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Key Points About OB 1-15 1. OB is a way of thinking 2. OB is multidisciplinary 3. There is a distinctly humanistic orientation within OB 4. The field of OB is performance-oriented 5. The role of the scientific method is important in studying variables and relationships 6. OB has a distinctive applications orientation McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Contributions to the Study of Organizational Behavior Discipline Unit of Analysis 1-16 Output Psychology Individual Sociology Social Psychology Organizational Behavior Group Anthropology Organization Political Science McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Studying Organizational Behavior Leaders and Organizational Behavior McGraw-Hill/Irwin 1-17 The Hawthorne Studies © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-18 Topics in Studying and Understanding OB The Organization’s Environment Understanding and Managing Individual Behavior Organizational Processes McGraw-Hill/Irwin Group Behavior and Interpersonal Influence Organizational Structure Change and Innovation © 2005 The McGraw-Hill Companies, Inc. All rights reserved. The Basic Elements of a System Inputs Process 1-19 Outputs Environment McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Three Perspectives on Effectiveness Individual effectiveness McGraw-Hill/Irwin Group effectiveness 1-20 Organizational effectiveness © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-21 Time Dimension Model of Effectiveness Short run Intermediate run Long run Quality Quality Quality • Productivity • Efficiency • Satisfaction McGraw-Hill/Irwin • Adaptiveness • Efficiency • Satisfaction • Survival © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-22 Systems Theory and Effectiveness (1 of 2) • Effectiveness criteria must reflect the entire input-process-output cycle, not simply output • Effectiveness criteria must reflect the interrelationships between the organization and its outside environment McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1-23 Systems Theory and Effectiveness (2 of 2) • Organizational effectiveness is an allencompassing concept that includes a number of component concepts • The managerial task is to maintain the optimal balance among these components McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Managers can lead the way to higher levels of 1-24 effectiveness by: (1 of 2) • Providing opportunities for training and continuous learning • Sharing information with employees • Encouraging cross-development partnerships • Linking compensation to performance McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Managers can lead the way to higher levels of 1-25 effectiveness by: (2 of 2) • Avoiding layoffs • Being a supportive role model • Respecting the differences across employees • Being a good listener McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Key Points (1 of 2) 1-26 • The key to an organization’s success is its human resources • Organizations need human resources that: • work hard • think creatively • perform excellently McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Key Points (2 of 2) 1-27 • Rewarding, encouraging, and nurturing the human resources in a timely and meaningful manner is what is required • The behavior of employees is the key to achieving effectiveness McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. IKEA’s successful approach to organizational behavior 1-28 • IKEA is the largest furniture chain in the world. IKEA follows a no-frills approach. Most managers rose through the ranks and there are no executive dining rooms. Everyone dresses casually. Each year, IKEA holds a “breaking the bureaucracy week” during which time executives are required to do store and warehouse work. • IKEA offers opportunities for promotion, training, above-average pay, generous bonus system, and personal well-being for committed employees. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
