2007 Prentice Hall

Organizational Behavior:
An Introduction to
Your Life in Organizations
Chapter 1
Why Mastering Organizational
Behavior is Essential to Your Career
2007 Prentice Hall
Preview
What is organizational behavior, and what kinds
of business challenges does it address?
What economic and social issues challenge
todays organizational leaders?
What organizational processes help companies
compete in the modern economy?
What will your career be like in modern
organizations?
How will mastering OB help you in your career?
2007 Prentice Hall
What is Organizational Behavior
(OB)?
Organization: a coordinated set of
individuals working together on a relatively
continuous basis toward common goals
Organizational Behavior (OB): the study of
how people behave in organizations
OB is a social science based on data
obtained through systematic study
2007 Prentice Hall
What challenges do managers face
at different organizational levels?
How to motivate yourself and others
How to work and stay healthy
How power and politics shape careers and
organizations
How leaders lead
How managers design their companies to
meet worldwide competition
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OB is not Human Resources
Management (HRM)
HRM is an organizational
function responsible for staffing
issues
OB is not a function, it is a set
of organization-wide processes
2007 Prentice Hall
Micro level & Macro level OB
Micro Level OB

Individual,
Interpersonal and
Group Behaviors
Macro Level OB

How human systems
and organized,
structured and
controlled

Also called
organizational theory
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Open vs. Closed Systems
Open
System
Permits the free
flow of
information into
and out of the
organization
Closed
System
Restricts
information flow
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What economic and social issues
challenge todays organizational
leaders?
1. Globalization
2. The changing nature of work
3. The complex workforce
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Globalization
Movement of trade, resources and
personnel across borders and regions
Mixed opinion on its benefits
Affects:
The nature of the work
Location of jobs
How companies manage people
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The changing nature of work
Job growth:
Primarily in small and new companies
Most will work for others
Education and health services will be
strongest
New grads in high demand
Job disruption: downsizing, outsourcing,
productivity increases
Contingent jobs are temporary
2007 Prentice Hall
The complex work force
Diversity is increasing
Factors that affect organizations:
Aging workforce & the Millennial generation
Gender representation
Racial diversity
Literacy
Employability
Union representation
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What organizational processes help
companies compete in the modern
economy?
Relying on teams
Innovations in attracting and keeping
employees
Adaptations in organizational design
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Adaptations in organizational design
Boundaryless organization
Employee empowerment
Process improvements
Organizational learning
Innovative culture
Adopt new forms
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What will your career be like in
modern organizations?
A complex and fast-paced business world
will require you to be adaptable
OB skills will be necessary as businesses
change
Recruiters value OB skills
The special case for ethics
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Career Paths
Primary labor market:
Professional, managerial type jobs
Higher incomes, relative security, good
benefits
Secondary labor market:
Little or no advancement possible
Lower incomes, little security, few benefits
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Career Patterns
Steady State Career

Lifetime employment in one
job
Change employers
infrequently
Spiral Career

Follow a variety of interests
around one core skill set
Transitory Career

Move among many
different unrelated positions
Linear Career

Stay within the same
profession but change jobs
and companies fairly
frequently
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Career Anchors
1. Technical or functional competence
2. Managerial competence
3. Security and stability in your job
4. Creativity and entrepreneurship
5. Autonomy and independence in your
work
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Career Stages
Stage 1: Preparation
Stage 2: Organizational entry
Stage 3: Early Career
Stage 4: Middle Career
Stage 5: Late Career
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Career Roles
Independent
Contributor

You work in a key job
with no subordinates
Manager


You manage others to
meet organizational
goals
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How will mastering OB help you in
your career?
Studying OB will help you:
Understand yourself
Become familiar with techniques for solving
behavior-based organizational problems
See the complexity in organizations
Obtain the vocabulary and fundamentals for
continuing study
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Apply what you have learned
World Class Company: Netflix
Advice from the Pros
Gain Experience
Can you solve this managers problem?
2007 Prentice Hall
Summary What is OB
OB is the study of how people behave in
organizations
OB is not HRM
OB helps managers solve practical
problems
An organization is a system with inputs,
processes and outputs
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Summary Issues that challenge
leaders
Globalization
Changing nature of work: job growth, job
disruption, and contingent jobs
Complexities of the workforce: age,
gender, race, literacy, employability, and
union representation
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Summary Organizational
Processes
Foster innovation & high quality decision
making
Rely on teams & improve the way they
attract & retain workers
Emphasis on ethics
Adapting
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Summary Your Career
Career patterns
Career stages
Role choices
Career anchors
OB provides practical information and
insights for your life in organizations