Introduction to Organizational Behavior

Understanding and Managing Organizational Behavior

Chapter 1
Sixth Edition Jennifer M. George & Gareth R. Jones

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Learning 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 among the three levels at which

organizational behavior is examined

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Learning 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

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Xeroxs CEOs turn the company around

At Xerox, Mulcahy and Burns found a way to create a set of new organizational behaviors
Favorable work situation has been created because

Xerox:
 

Strives to increase employees skills and knowledge Provides employees at all levels with rewards to encourage high performance term commitment to their organization
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 Creates a work setting in which employees develop a longer-

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What Is an Organization?

An organization is a collection of people who work together and coordinate their actions to achieve a wide variety of goals

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What Is Organizational Behavior?

Organizational behavior (OB) is 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

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What Is Organizational Behavior?

Exhibit 1.1

Insert Exhibit 1.1 here

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Levels of Analysis
Exhibit 1.2 Organizational Level Group Level Individual Level

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Components of Organizational Behavior

Exhibit 1.3

Part One Individuals in Organizations Part Two Group and Team Processes Part Three Organizational Processes
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Understanding organizational behavior requires studying

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Why Study OB?

To understand behavior in organizations To learn to use and apply concepts, theories, and

techniques to improve, enhance, or change behavior

To enable managers to direct and supervise the

activities of employees

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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

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Four Functions of Management

Exhibit 1.4 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

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OB Today: Trader Joes a Success Story

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Managerial Roles

y Leader y Monitor y Spokesperson y Disturbance handler y Negotiator

y Figurehead y Liaison y Disseminator y Entrepreneur y Resource allocator

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Managerial Skills

Conceptual Skills

Technical Skills

Human Skills

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An Open Systems View of Organizational Behavior

Exhibit 1.6

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Challenges for OB

1: Changing Social/Cultural Environment 2: Evolving Global Environment 3: Advancing Information Technology 4: Shifting Work/Employment Relationships

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Changing Social and Cultural Environment

National culture Organizational ethics and well-being Diverse workforce

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Diversity Challenges

y Fairness and Justice y Decision Making and Performance y Flexibility

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Challenges Created by Diverse Workforces

Exhibit 1.7

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Evolving Global Environment

y Understanding Global

Differences
y Global Learning y Global Crisis

Management

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Crisis Management Decisions

Creating teams to facilitate rapid decision making and communication Establishing the organizational chain of command and reporting relationships necessary to mobilize a fast response Recruiting and selecting the right people to lead and work in such teams Developing bargaining and negotiating strategies to manage conflicts that arise whenever people and groups have different interests and objectives
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Advancing Information Technology

y Organizational

y Information

Learning
y Creativity y Innovation y Knowledge y Information Technology

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Shifting Work/Employment Relationships

y Downsizing y Empowerment and Self-Managed Teams y Contingent Workers y Outsourcing

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A Short History of Organizational Behavior

Appendix 1A:

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

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F.W. Taylor and Scientific Management

Scientific management is 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
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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

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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

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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

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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

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The Hawthorne Studies_2

Factors influencing behavior:
  

Attention from researchers Managers leadership approach Work group norms

The Hawthorne Effect

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Douglas McGregor: Theory X and Theory Y

Theory Y y Employees will do what is good for the organization when committed y Managers must create setting to encourage commitment to goals and provide opportunities for initiative Theory X y Average employee is lazy, dislikes work, and will try to do as little as possible y Managers task is to supervise closely and control employees through reward and punishment

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