Chapter Objectives

Define organizational behavior and explain how

and why it determines the effectiveness of an organization Appreciate why the study of organizational behavior improves a persons ability to understand and respond to events that take place in a work setting Differentiate between the three levels at which organizational behavior is examined

Chapter Objectives
Appreciate the way changes in an organizations

external environment continually create challenges for organizational behavior Describe the four main kinds of forces in the environment that post the most opportunities and problems for organizations today

What is an Organization?
An organization is a collection of people who work

together to achieve individual and organizational goals

Individual goals Organizational goals

What is an Organization?
Organizations are social entities that are goal-

oriented; are designed as deliberately structured and coordinated activity systems, and are linked to the external environment (Daft, 2004).

Introduction
Organization System of two or more persons Engaged in cooperative action Trying to reach a goal Characteristics of definition Applies to any type of organization, small, large, profit, nonprofit Goal oriented Cooperative interaction of two or more people

Organizational Behavior and Organizational Theory

Organizational behavior and organizational theory

specialize in studying organizations Organizational behavior: understanding behavior, attitudes, and performance Organizational theory: design and structure of organizations

What is Theory?
Theory is: a plan or scheme existing in the mind only,

but based on principles verifiable by experiment or observation (Funk & Wagnalls page 1302
).

Definition of Organization Theory

Organization theory: is the set of propositions (body

of knowledge) stemming from a definable field of study which can be termed organizations science (Kast&Rosenzweig1970). The study of organizations: is an applied science because the resulting knowledge is relevent to problem solving or decision making in ongoing enterprises or institutions (Kast&Rosenzweig1970).

Definition of Organization Theory Cont..

Two things: Knowledge

Knowledge generated by practical experience and scientific research

Solving problems & managing resources (Kast&Rosenzweig1970).

Definition of Organization Theory Cont..

It is the application of scientific knowledge in

engineering and other forms of technology that has brought such spectacular changes in the material context of our lives over the past century (Kast&Rosenzweig1970).

Organization theory and Management

Management technology stems from organization

theory and even more applied in the sense that it focuses on the practice of management in ongoing organizations (Kast&Rosenzweig1970).

What is Organizational Behavior?

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

What is Organizational Behavior?

Insert Figure 1.1 here

Levels of Analysis
Organizational Level Group Level Individual Level

Components of Organizational Behavior

Understanding organizational behavior requires studying

Part One Individuals in Organizations

Part Two Group and Team Processes

Part Three Organizational Processes

What is Management?
Management is the process of planning, organizing,

leading, and controlling an organizations human, financial, material, and other resources to increase its effectiveness

Four Functions of Management

Planning Organizing

Decide on organizational goals and allocate and use resources to achieve those goals

Establish the rules and reporting relationships that allow people to achieve organizational goals

Controlling

Evaluate how well the organization is achieving goals and take action to maintain, improve, and correct performance

Leading

Encourage and coordinate individuals and groups so that they work toward organizational goals

Mintzbergs Managerial Roles

Figurehead
Liaison Disseminator

Leader
Monitor Spokesperson

Entrepreneur
Resource allocator

Disturbance handler
Negotiator

Managerial Skills

Conceptual Skills

Technical Skills

Human Skills

An Open Systems View of Organizational Behavior

Challenges for Organizational Behavior

1: Changing Social/ Cultural Environment
2: Evolving Global Environment 3: Advancing Information Technology

4: Shifting Work/ Employment Relationships

Changing Social and Cultural Environment

National culture Organizational ethics and well-being Diverse work force

Diversity Challenges
Fairness and Justice
Decision-Making and Performance Flexibility

Diversity

Evolving Global Environment

Understanding Global

Differences Improve Organizations Behaviors and Procedures in Response to Those Differences

Advancing Information Technology

Information
Knowledge Information Technology

Organizational Learning
Intranets Creativity Innovation

Shifting Work/ Employment Relationships

Downsizing
Empowerment and Self-Managed Teams Contingent Workers

Outsourcing

A Short History of Organizational Behavior

F.W. Taylor and Scientific Management
Mary Parker Follett Hawthorne Studies

Theory X and Y

F.W. Taylor and Scientific Management

Scientific management: the systematic study of

relationships between people and tasks for the purpose of redesigning the work process to increase efficiency The amount of and effort each employee expends to produce a unit of output can be reduced by increasing specialization and the division of labor

Four Principles of Scientific Management

1. Study the way employees perform their tasks, gather

informal job knowledge that employees possess, and experiment with ways of improving the way tasks are performed 2. Codify the new methods of performing tasks into written rules and standard operating procedures

Four Principles of Scientific Management_2

3. Carefully select employees so that they 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 4. Establish an acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level

Mary Parker Follett

Management must consider the human side
Employees should be involved in job analysis Person with the knowledge should be in control of the

work process regardless of position Cross-functioning teams used to accomplish projects

The Hawthorne Studies

Hawthorne Works of the Western Electric

Company; 1924-1932 Initiated as an attempt to investigate how characteristics of the work setting affect employee fatigue and performance (i.e., lighting) Found that productivity increased regardless of whether illumination was raised or lowered

The Hawthorne Studies_2

Factors influencing behavior: Attention from researchers Managers leadership approach Work group norms The Hawthorne Effect

Douglas McGregor: Theory X and Theory Y

Theory X Average employee is lazy, dislikes work, and will try to do as little as possible Managers task is to supervise closely and control employees through reward and punishment Theory Y Employees will do what is good for the organization when committed Managers task is create a work setting that encourages commitment to organizational goals and provides opportunities for employees to be exercise initiative