CHAPTER ONE
ORGANIZATIONAL BEHAVIOR AND OPPORTUNITY
LEARNING OBJECTIVES
After reading this chapter, you should be able to do the following:
1.
Define organizational behavior.
2.
Identify four action steps for responding positively in times of change.
3.
Identify the important system components of an organization.
4.
Describe the formal and informal elements of an organization.
5.
Understand the diversity of organizations in the economy, as exemplified by the six focus
organizations.
6.
Recognize the opportunities that change creates for organizational behavior.
7.
Demonstrate the value of objective knowledge and skill development in the study of
organizational behavior.
CHAPTER OUTLINE
Chapter 1 contains four major sections. The four sections are “Human Behavior in
Organizations,” “The Organizational Context,” “Change Creates Opportunities,” and “Learning
About Organizational Behavior.”
Section One: “Human Behavior in Organizations”
Section one contains information that supports Learning Objectives 1 and 2. It begins by defining
organizational behavior as the study of individual behavior and group dynamics in organizational
settings.
Section one also includes some discussion regarding the two basic categories of theories and
models of human behavior. The first category includes theories and models of human behavior
with an internal perspective, and the second includes those with an external perspective. The
internal perspective seeks to understand behavior by considering factors inside the person. The
external perspective seeks to understand behavior by considering factors outside the person.
Organizational behavior, as a blend of six other disciplines, draws on contributions from
psychology (the science of human behavior), sociology (the science of society), engineering (the
applied science of energy and matter), anthropology (the science of the learned behavior of
human beings), management (the study of overseeing activities and supervising people in
organizations), and medicine (the science of healing or treatment of diseases to enhance an
individual’s health and well-being). In addition, section one discusses four action steps suggested
by Eric Brown at ProLine International that can help people see the opportunity in change. These
steps include (1) having a positive attitude, (2) asking questions, (3) listening to the answers, and
(4) being committed to success.
Section Two: “The Organizational Context”
Section two contains information that supports Learning Objectives 3, 4, and 5. It begins with a
discussion of organizations as open systems consisting of four interacting components. (1) Task
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refers to an organization’s mission, purpose, or goal for existing. (2) People refers to the human
resources of the organization. (3) Technology refers to the wide range of tools, knowledge,
and/or techniques used to transform the inputs into outputs. (4) Structure refers to the systems of
communication, systems of authority, and systems of workflow in the organization.
Section two continues by providing descriptions of the formal and informal elements of
organizations. Formal organization refers to the official, legitimate, and most visible aspects that
cause people to think of organizations in logical and rational ways (i.e., job titles and
descriptions). Informal organization refers to the unofficial and less visible aspects of
organizations (i.e., the “grapevine”).
Section two concludes with descriptions of six focus organizations that are used throughout the
book to illustrate the concepts presented in each of the chapters. These six organizations are:
Cisco Systems – a world leader in routers and switches that power the Internet; The Coca-Cola
Company – the world’s top soft-drink company; Pixar Animation Studios – the world’s leading
digital animation studio; Virgin Group Ltd. – a conglomerate of consumer products and services
selling everything from air and rail travel to soft drinks; Whole Foods Market, Inc. – a pioneer in
the supermarket concept in health foods retailing; and Canine Companions for Independence – a
not-for-profit organization with a mission to help disabled people do more for themselves and live
more independent lives.
Section Three: “Change Creates Opportunities”
Section three contains information in support of Learning Objective 6, and begins with the
acknowledgment that global competition is a leading force driving change at work. International
competition has increased significantly, especially in industries such as banking, finance, and air
transportation. Corporate competition creates performance and cost pressures that also affect
people and their behavior at work.
The international competition in the automotive industry between the Japanese, U.S., and
European car companies embodies the intensity that can be expected in other industries in the
future. High quality products and services are becoming an expectation of customers, and since
customers’ needs and expectations are always changing, organizations must embrace this form of
change through their products, services, and actions.
Finally, we are reminded that enhancing quality to meet international competition during
changing times is challenging for at least four reasons. They are (1) the increasing globalization
of organizations’ operating territory, (2) the increasing diversity of organizational workforces, (3)
continuing technological innovation with its companion need for skill enhancement, and (4) the
continuing demand for higher levels of moral and ethical behavior at work.
Section Four: “Learning About Organizational Behavior”
Section four contains information that supports Learning Objective 7. The terms objective
knowledge and skill development are defined and discussed at length.
Learning about organizational behavior is described as involving at least three activities,
including (1) the mastery of a certain body of objective knowledge (the knowledge that results
from research and scholarly activities), (2) skill development and the mastery of abilities essential
to success in organizations, and (3) understanding yourself and real world settings.
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KEY TERMS
Anthropology. The science of the learned behavior of human beings. (See page 6.)
Challenge. The call to competition, contest, or battle. (See page 4.)
Change. The transformation or modification of an organization and/or its stakeholders. (See
page 4.)
Engineering. The applied science of energy and matter. (See page 6.)
Formal organization. The official, legitimate, and most visible part of the system. (See page
10.)
Hawthorne Studies. Studies conducted during the 1920s and 1930s that discovered the
existence of the informal organization. (See page 10.)
Informal organization. The unofficial and less visible part of the system. (See page 10.)
Management. The study of overseeing activities and supervising people in organizations. (See
page 6.)
Medicine. The applied science of healing or treatment of diseases to enhance an individual’s
health and well-being. (See page 6.)
Objective knowledge. Knowledge that results from research and scholarly activities. (See page
19.)
Opportunities. Favorable times or chances for progress and advancement. (See page 4.)
Organizational behavior. The study of individual behavior and group dynamics in
organizations. (See page 4.)
People. The human resources of the organization. (See page 8.)
Psychology. The science of human behavior. (See page 5.)
Six Sigma. A high-performance system to execute business strategy that is customer-driven,
emphasizes quantitative decision making, and places a priority on saving money. (See page 17.)
Skill development. The mastery of abilities essential to successful functioning in organizations.
(See page 19.)
Sociology. The science of society. (See page 6.)
Structure. The manner in which an organization’s work is designed at the micro level, as well as
how departments, divisions, and the overall organization are designed at the macro level. (See
page 8.)
Task. An organization’s mission, purpose, or goal for existing. (See page 8.)
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Technology. The tools, knowledge, and/or techniques used to transform inputs into outputs.
(See page 8.)
TEST YOURSELF
Multiple Choice Questions
1.
The study of individual behavior and group dynamics in organizational settings is called:
A.
organizational structure.
B.
organizational dynamics.
C.
organizational systems.
D.
organizational behavior.
2.
The science of human behavior is called:
A.
organizational behavior.
B.
psychology.
C.
sociology.
D.
management.
3.
Management is the:
A.
applied science of energy and matter.
B.
science of human behavior.
C.
science of society.
D.
study of overseeing activities and supervising people in organizations.
4.
__________________ refers to the manner in which an organization’s work is designed
at the micro level, as well as how departments, divisions, and the overall organization are
designed at the macro level.
A.
Task
B.
Structure
C.
People
D.
Technology
5.
Which one of the following choices is an example of an informal organization?
A.
the grapevine
B.
job titles
C.
employee evaluations
D.
job descriptions
6.
Of the six organizations highlighted in Chapter 1 as examples of diversity of
organizations, which one of the following is the oldest?
A.
Cisco Systems
B.
The Coca-Cola Company
C.
Virgin Group Ltd.
D.
Canine Companions for Independence
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7.
Of the six organizations highlighted in Chapter 1 as examples of diversity of
organizations, which one was founded by a 17-year-old boarding school dropout with the
simple goal of being “a disrupter”?
A.
Cisco Systems
B.
Pixar Animation Studios
C.
Virgin Group Ltd.
D.
Whole Foods Market, Inc.
8.
Too much change in organizations typically results in:
A.
chaos.
B.
good employee morale and productivity.
C.
low employee absenteeism and turnover.
D.
stagnation.
9.
Which one of the following choices is considered to be the leading force driving change
in the workplace?
A.
increasing diversity of organizational workforces
B.
continuing demand for higher levels of moral and ethical behavior at work
C.
continuing technological innovation
D.
increased global competition
10.
Which one of the following major managerial/organizational challenges has the greatest
“skill enhancement” requirement?
A.
increasing diversity of organizational workforces
B.
continuing demand for higher levels of moral and ethical behavior at work
C.
continuing technological innovation
D.
increased global competition
11.
The mastery of abilities essential to successful functioning in organizations is called:
A.
formal knowledge.
B.
skill mastery.
C.
objective knowledge.
D.
skill development.
12.
Which one of the following choices typically requires structured practice and feedback in
order to acquire it?
A.
knowledge
B.
skills
C.
both
D.
neither
True/False Questions
At the end of each of the following statements, write the letter T if you believe the statement to be
true, or F if you believe the statement to be false.
1.
The category of theories and models of human behavior that focuses on factors outside
the person to understand behavior has an internal perspective.
2.
Organizational behavior refers to the science of the learned behavior of human beings.
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3.
There is a direct relationship between most managers’ ability to manage effectively and
the knowledge gained from the study of individual behavior and group dynamics in
organizational settings, which is known as organizational behavior.
4.
The component of organizational systems that refers to an organization’s mission is
called the task.
5.
Cisco Systems puts very little emphasis on research and development.
6.
Six Sigma is a philosophy for company-wide quality improvement that can be applied to a
range of problems and areas.
7.
Job titles and job descriptions are components of the formal organization.
8.
Since most people in the U.S. workforce are threatened by change, organizations are
advised to introduce very little change.
9.
Continuing technological innovation is considered to be the leading force driving change
in the U.S. workplace.
10.
Skill development refers to the mastery of abilities essential to successful functioning in
organizations.
Short Answer Questions
Write your response in the space below each question.
1.
Describe briefly how psychology and management contribute to the study of
organizational behavior.
2.
Discuss two examples of the connection between workforce diversity and globalization.
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3.
Discuss why it is typically good for organizations to be dealing with a “balanced amount
of change.”
Fill-In/Matching Questions
Fill in the blank space in each question below with the appropriate term found in the following
list of words.
Organizational behavior
Structure
Change
Challenge
Informal organization
Management
Formal organization
1.
____________________ is the study of overseeing activities and supervising people in
organizations.
2.
____________________ refers to the unofficial and less visible aspects of organizations.
3.
The study of individual behavior and group dynamics in organizational settings is called
____________________.
4.
____________________ refers to the transformation or modification of an organization
and/or its stakeholders.
5.
The call to competition, contest, or battle is ______________________.
6.
_________________________ refers to the official, legitimate, and most visible aspects
which cause people to think of organizations in logical and rationale ways.
7.
The manner in which an organization’s work is designed at the micro level, as well as
how departments, divisions, and the overall organization are designed at the macro level
is referred to as ________________________.
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