CHAPTER I ‡ WHAT IS ORGANIZATIONAL BEHAVIOR?

What Managers Do
Managers get things done through other people. They make decisions, allocate resources, and direct the activities of others to attain goals. Managers do their work in an organization.The people who oversee the activities of others and who are responsible for attaining goals in these organizations are their managers.

Management Functions
In the early part of this century, a French industrialist by the name of Henri Fayol wrote that all managers perform five management functions: They plan, organize, command, coordinate, and control. Today, we've condensed these down to four: planning, organizing, leading, and controlling. The planning function encompasses defining an organization's goals, establishing an overall strategy for achieving these goals, and developing a comprehensive hierarchy of plans to integrate and coordinate activities. Organizing includes the determination of what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. Every organization contains people, and it is management's job to direct and coordinate these people. This is the leading function. When managers motivate subordinates, direct the activities of others, select the most effective communication channel, or resolve conflicts among members, they are engaging in leading To ensure that things are going as they should, management must monitor the organization's performance. Actual performance must be compared with the previously set goals. If there are any significant deviations, it is management's job to get the organization back on track. This monitoring, comparing, and potential correcting is what is meant by the controlling function. So, using the functional approach, the answer to the question of what managers do is that they plan, organize, lead, and control.

Management Roles
In the late 1960s, Henry Mintzberg, undertook a careful study of five executives to determine what these managers did on their jobs. Based on his observations of these managers, Mintzberg concluded that managers perform ten different highly interrelated roles, or sets of behaviors, attributable to their jobs. These ten roles can be grouped as being primarily concerned with interpersonal relationships, the transfer of information, and decision making.
INTERPERSONAL ROLES All managers are required to perform duties that are ceremonial and

symbolic in nature. When the president of a college hands out diplomas at commencement or a factory

motivate.supervisor gives a group of highschool students a tour of the plant. All jobs require some specialized expertise and many people develop their technical skills on the job. and delegate. and monetary resources. The ability to work with. Decision making. Managers must have the mental ability to analyze and diagnose complex situations. Since managers get things done through other people. Management Skills Robert Katz has identified three essential management skills: technical.Liaison role includes activities such as contacting outsiders who provide the manager with information. or have difficulty managing conflicts. managers discuss and bargain with other units to gain advantages for their own unit. This role includes hiring. managers are responsible for allocating human. identify alternatives that can correct them. for instance. and motivate other people. managers take corrective action in response to previously unforeseen problems As resource allocators. managers initiate and oversee new projects that will improve their organizati n's o performance. Managers additionally perform a spokesperson role when they represent the organization to outsiders. and conceptual. They might. describes human skills. These are conceptual skills. All managers have a leadership role.As negotiator role. As disturbance handlers. or oral surgeons. Mintzherg identified four roles that revolve around the making of choices. Many people are technically proficient but interpersonally incompetent.In the entrepreneur role.This is the monitor role. These may be individuals or groups inside or outside the organization. DECISIONAL ROLES Finally. physical. and disciplining employees. unable to understand the needs of others. for example. he has an outside liaison relationship. Managers also act as a conduit to transmit information to organizational members. Typically. INFORMATIONAL ROLES All managers wills to some degree. yet still fail because of an inability to rationally process and interpret . Through extensive formal education. he is acting in a figurehead role. you typically focus on their technical skills. be poor listeners. receive and collect information from organizations and institutions outside their own.Skills held by professiorials such as civil engineers. Technical skills encompass the ability to apply specialized knowledge or expertise. requires managers to spot problems. This is the diseminator role. Of course. Managers can be technically and interpersonally competent. motivating. this is done through reading magazines and talking with others to learn of changes in the pubtic's tastes. training. When that sales manager has contacts with other sales executives through a marketing trade association. and the like. The sales manager whb obtains information from the personnel manager in his own company has an internal liaison relationship. human. both individually and in groups. they have learned the special knowledge and practices of their field. what competitors may be planning. and select the best one. tax accountants. evaluate these alternatives. they must have good human skills to communicate. understand. professional don't have a monopoly on technical skills and these skills don't have to be learned in schools or formal training programs.

is the approach of reengineering. you'll have the opportunity to complete exercises that will give you insights into your own behavior. OB offers important insights into helping managers work through these changes. In short. and structure have on behavior within organizations for the purpose of applying such knowledge toward improving an organization¶s effectiveness. What does it study? It studies three determinants of behavior in organizations: individuals. Improving People Skills We opened this chapter by demonstrating how important people skills are to managerial effectiveness. For instance. These employees will not only be a major force in carrying out changes but increasingly will participate actively in planning those changes. Today's managers understand the success of any efforts at improving quality and productivity must include their employees. It asks managers to reconsider how work would be done and their organization structured if they were starting over. In addition. "This book has been written to help both managers and potential managers develop those people skills. and structure. in essence. illustrating the importance that social and political skills play in getting ahead in organizations. and how to create effective teams. groups. Moreover. you'll learn how to be an effective listener. Enter organizational behavior Organizational behavior (OR) is a field of study which investigates the impact that individuals. we present relevant concepts and theories that can help you explain and predict the behavior of people at work. TQM is driven by the constant attainment of customer satisfaction through the continuous improvement of all organizational processes. 0B applies the knowledge gained about individuals. Challenges and Opportunities for OB There are a lot of challenges and opportunities today for managers to use OB concepts. OB is concerned with the study of what people do in an organization and how that behavior affects the performance of the organization. We said. it's sometimes necessary to approach improving quality and productivity from the perspective of ³How would we do things around here if we were starting over from scratch?" That. In times of rapid and dramatic change. how to delegate authority. you'll also gain insights into specific people skills that you can use on the job.' As you proceed through this text. groups.information. and the effect of structure on behavior in order to make organizations work more effectively. Toward improving quality and productivity.It has implications for 0B because it requires employees to rethink what they do and become more involved in workplace decisions. groups. the proper way to give performance feedback. They are: Improving Quality and Productivity More and more managers are confronting the challenges to improve their organization's productivity and the quality of the products and services they offer. Organizational behavior is a field of study. Additionally. they are implementing programs like total quality management and reengineering²programs that require extensive employee involvement. the .

teams that include members from different departments and whose members change all the time. and subordinates who were born and raised in different cultures.When diversity is not managed properly. or they can be a major stumbling block. The challenge for managers is to stimulate employee creativity and tolerance for change. That predictablity has been replaced by temporary work groups. you're going to find yourself working with bosses. and replace permanent employees with temporary workers. Today's managers and employees must learn to cope with temporariness. more difficult communication. can increase creativity and innovation in organizations as well as improve decision making by providing different perspectives on problems. Coping with "Temporariness" Work groups are also increasingly in a state of flux. Empowering People Managers are empowering employees. And in so doing.bel. What motivates you may not motivate them. While your style of communication may be straightforward and open. Stimulating Innovation and Change Today's successful organizations must foster innovation and master the art of change or they will become candidates for extinction. Finally. They have to learn to live with flexibility. In the past. organizations themselves are in a state of flux. there is potential for higher turnover. employees were assigned to a specific work group and that assignment was relatively permanent. Once there. There was a considerable amount of security in working with the same people day in and day out. and atlitudes from the ones you were used to back home. and practice at improving your interpersonal skills. managers are having to learn how to give up control and employees are having to learn how to take responsibility for their work and make appropriate decisions. and the increased use of employee rotation to fill constantly changing work assignments.An organization's employees can be the imputs for innovation and change. you'll have to manage a work force that is likely to be very different in needs. managers have to become capable of working with people from different cultures. In turn. and more interpersonal conflicts. sell off poor-performing businesses. They are putting employees in charge of what they do. First. if you're a manager you're increasingly likely to find yourself in a foreign assignment. downsize operations. Responding to Globalization Management is no longer constrained by national borders. and unpredictability. how to overcome resistance to changer and how . even in your own country.avioi of others. Victory will go to those organizations that maintain their flexibility continually improve their quality and beat their competition to the marketplace with a constant stream of innovative products and services. The study of OB can provide important insights into helping you better understand a work world of continual change. They continually reorganize their various divisions.. aspirations. if positively managed.The world has become a global village.Diversity. You'll be transferred to your employer's operating division or subsidiary in another country. spontaneity. peers. Second. Globalization affects a manager's people skills in at least two ways. they may find this style uncomfortable and threatening. The field of organizational behavior provides a wealth of ideas and techniques to aid in realizing these goals. Managing Work Force Diversity Work force diversity has important implications for management practice.

Their contribulions have been expanded to include learning. and how people manipulate power for individual self-interest.Much of our current understanding of organizational culture. . expectations of increasing worker productivity. Social Psychology:Social psychology is an area within psychology. and political science. design of work teams. One of the major areas receiving considerable investigation from social psychologists has been change²how to implement it and how to reduce barriers to its acceptance. job design. and tough competition in the marketplace.Sociologist have made their greatest contribution to OB through their study of group behavior in organizations. situations where they are required to define right and wrong conduct. performance appraisals. The predominant areas are psychology. anthropology. but blends concepts from both psychology and sociology. and work stress. and engage in other forms of questionable practices. sociology. and sometimes change the behavior of humans and other animals. communications. explain. and differences between national cultures is the result of the work of anthropologists. Anthropology: Anthropologists study societies to learn about human beings and their activities. It focuses on the influence of people on one another. organizational culture. Political Science:Political scientists study the behavior of individuals and groups within a political environment. attitude measurement. social psychology. and intergroup behavior. employee selection techniques. leadership effectiveness. organizational technology. perception. conflict. organizational environments. break rules. Psychologists concern themselves with studying and attempting to understand individual behavior. power. it's not altogether surprising that many employees feel pressured to cut corners.Psychology's contributions have been mainly at the individual or micro level of analysis. Specific topics of concern here include structuring of conflict. job satisfaction. the other four disciplines have contributed to our understanding of macro concepts such as group processes and organization. decisionmaking processes. Improving Ethical Behavior In an organizational world characterized by cutbacks. Some of the areas within OB that have received valuable input from sociologists are group dynamics. Sociology:Sociology studies people in relation to their fellow human being. where they can do their work productively and confront a minimal degree of ambiguity regarding what constitutes right and wrong behaviors. personality. Contributing Disciplines to the OB Fleld Organizational behavior is an applied behavioral science that is built on contributions from a number of behavioral disciplines. needs and motivational forces.best to create an organizational culture that thrives on change. allocation of power. formal organization theory and structure. training. particularly formal and complex organizations. Members of organizations are increasingly finding themselves facing ethical dilemmas. Today's manager needs to create an ethically healthy climate for his or her employees. Psychology:Psychology is the science that seeks to measure.

Even in managerial lobs. performance may be improved when managers absent themselves from work rather than make a poor decision under stress. what and they are affected by some other factor. absenteeism. for example. is effective when it successfully meets the needs of its clientele. Are all absences bad? Probably not! While most absences impact negatively on the organization. we overlay structural constraints on the individual and group in order to arrive at organizational behavior. But these examples are clearly atypical. The work flow is disrupted. All organizations have some turnover. and training costs. For the most part. A hospital. too.world phenomenon. As such. But levels of absenteeism beyond the normal range in any organization have a direct impact on that organization's effectiveness and efficiency. and often important decisions must be delayed. fatigue or excess stress can significantly decrease an employee's productivity. where mistakes are less spectacular.The primary dependent variables in OB are: productivity. ABSENTEEISM: Absenteeism is the failure to report.if the right people are leaving the organization²the marginal and submarginal employees²turnover can be positive. productivity implies a concern for both effectiveness and efficiency. In organizations that rely heavily on assembly-line technology. In jobs where an employee needs to be alert²surgeons and airline pilots are obvious examples²it may well be better for the organization if the employee does not report to work rather than show up and perform poorly. The Dependent Variables Dependent variables are the key factors you want to explain or predict. we can conceive of situations where the organization may benefit by an employee voluntarily choosing not to come to work.It can also mean a disruption in the efficient running of an organization when knowledgeable and experienced personnel leave and replacements must be found and prepared to assume positions of responsibility. The three basic levels are analogous to building blocks²each level is constructed on the previous level. Group concepts grow out of the foundation laid in the individual section. and organizational citizenship. we can assume that organizations benefit when employee absenteeism is reduced. and. a simplified representation of some real. It is efficient when it can do this at a low cost. and does so by transferring inputs to outputs at the lowest cost. selection. job satisfaction. As we move from the individual level to the organization systems level. it can bring about a complete shutdown of the production facility. It may create the opportunity to . PRODUCTIVITY: An organization is productive if it achieves its goals. So. absenteeism can be considerably more than a disruption² it can result in a drastic reduction in quality of output. TURNOVER: A high rate of turnover in an organization means increased recruiting.There are three levels of analysis in OR.In fact. is the accountants formula: Assets + Liabilities = Owners' Equity. The cost of an accident in such jobs could be prohibitive. A mannequin in a retail store is a model. in some cases. we add systematically to our understanding of behavior in organizations.Coming Attractions: Developing an OB Models An Overview A model is an abstraction of reality. For instance. It is obviously difficult for an organization to operate smoothly and to attain its objectives if employees fail to report to their jobs. turnover.

for the most part. personality characteristics. Therefore. and basic ability levels. they argue. Not only is satisfaction negatively related to absenteeism and turnover but.Those researchers with strong humanistic values argue that satisfaction is a legitimate objective of an organization. OR researchers typically consider it an important dependent variable. it can be a disrtiptive factor. it can be argued that advanced societies should he concerned not only with the quantity of life²that is. management can do little to alter them. The Independent Variables It is the presumed cause of some change in the dependent variable. or when it involves valuable performers. GROUP-LEVEL VARIABLES The behavior of people in groups is more than the sum total of each individual acting in his or her own way. hindering the organization's effectiveness.replace an underperlorming individual with someone with higher skills or motivation. performance appraisal methods). and Organization Systems Level Variables.It includes: Individual-Level Variables. the organizationas human resource policies and practices (that is. technology and work processes. and. and jobs. Just as groups are more than the sum of their individual members. . These characteristics are essentially intact when an individual enters the work force. and add new and fresh ideas to the organization. Job Satisfaction: Job satisfaction is the difference between the amount of rewards workers receive and the amount they believe they should receive. selection processes. concerns such as higher productivity and material acquisitions²but also with its quality. organizations have a responsibility to provide employees with jobs that are challenging and intrinsically rewarding. training programs. although job satisfaction represents an attitude rather than a behavior. ORGANIZATION SYSTEM-LEVEL VARIABLES Organizational behavior reaches its highest level of sophistication when we add formal structure to our previous knowledge of individual and group behavior. The complexity of our model is increased when we acknowledge that people's behavior when they are in groups is different from their behavior when they are alone. the internal culture. values and attitudes. INDIVIDUAL-LEVEL VARIABLES: The people enter organizations with certain charactecistics that will influence their behavior at work. gender. But when turnover is excessive. open up increased opportunities for promotions.Job satisfaction represents an attitude rather than a behavior. While much evidence questions this assumed causal relationship. Therefore. the next step in the development of an understanding of OR is the study of group behavior. and marital status. The design of the formal organization. Yet they have a very real impact on employee behavior. The belief that satisfied employees are more productive than dissatisfied employees has been a basic tenet among managers for years. and levels of work stress all have an impact on the dependent variables. The more obvious of these are personal or biographical characteristics such as age. so are organizations more than the sum of their member groups. Group-Level Variables.

It shows the four key dependent variables and a large number of independent variables. communication is the means by which individuals transmit information. of behavior and recognizing that there are ways for change agents or managers to modify ma of the ny independent variables ii they are having a negative impact on the key dependent variables. managcment exerts its influence on group behavior through leadership. organized by level of analysis.As complicated as this model is. . that research indicates have varying impacts on the former. thus. and the like. This is meant to convey that authority and leadership are related. Similarly. For the most part. but it should help explain why the chapters in this book are arranged as they are and help you explain and predict the behavior of people at work. Note that we've added the concepts of change and development to Figure 1 acknowledging the dynamics -7. Specifically. our model does not explicitly identify the vast number of contingency variables because of the tremendous complexity that would be involved in such a diagram. Rather. in Chapter 18 we discuss the change process and techniques for changing employee attitudes. Also note that Figure 17 includes linkages between the three levels of analysis. organization structure is linked to leadership. it still does not do justice to the complexity of the OB subject matter. modifying organization structures. For instance. it is the link between individual and group behavior.Toward a Contingency OB Model Our final model is shown in Figure 1-7. improving communication processes. throughout this text we introduce important contingency variables that will improve the explanatory linkage between the independent and dependent variables in our OB model.

It can help improve quality and employee productivity by showing managers how to empower their people as well as design and implement change programs. OR uses systematic study to improve behavioral CHAPTER ‡ WHAT IS ORGANIzArIONAt BHAY1QR? . then applies that knowledge to make organizations work more effectively. reduce absenteeism and turnover. Organizational behavior offers a number of challenges and opportunities for managers.31 predictions that would be made from intuition alone. we need to look at OR in a contingency framework. While some of these generalizations provide valid insights into human behavior. But because people are different. We aH hold a number of generalizations about the behavior of people. OB focuses on how to improve productivity. It offers specific insights to improve a manager's people skills. using situational variables to moderate cause-effect relationships.people skills if they're going to be effective in their job. . Specifically. many are often erroneous. groups. and increase employee lob satisfaction. and structure have on behavior within organizations. Organizational behavior (OR) is a field of study that investigates the impact which individuals.

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