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1 Introduction to Organizational Behavior

Understanding and Managing Organizational Behavior
Fifth Edition Jennifer M. George Gareth R. Jones

©2007 Prentice Hall

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 person’s 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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©2007 Prentice Hall

Learning Objectives
 Appreciate the way changes in an organization’s 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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©2007 Prentice Hall

– employee well-being. – employee empowerment. – leadership 1-4 ©2007 Prentice Hall .Management at Amazon.com  Rapid growth created need to motivate and coordinate employees to meet company goals  Bezos emphasized – decentralized authority.

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 1-5 ©2007 Prentice Hall .

think. and respond to work and organizations. feel.What Is Organizational Behavior? Organizational behavior (OB) is the study of factors that have an impact on how people and groups act. and how organizations respond to their environments 1-6 ©2007 Prentice Hall .

1 What Is Organizational Behavior? Insert Exhibit 1.1 here 1-7 ©2007 Prentice Hall .Exhibit 1.

Exhibit 1.2 Levels of Analysis Organizational Level Group Level Individual Level 1-8 ©2007 Prentice Hall .

3 Components of Organizational Behavior Understanding organizational behavior requires studying Part One Individuals in Organizations Part Two Group and Team Processes Part Three Organizational Processes 1-9 ©2007 Prentice Hall .Exhibit 1.

or change behavior  To enable managers to direct and supervise the activities of employees 1-10 ©2007 Prentice Hall . enhance.Why Study OB?  To understand behavior in organizations  To learn to use and apply concepts. and techniques to improve. theories.

material. financial. organizing. and controlling an organization’s human. and other resources to increase its effectiveness 1-11 ©2007 Prentice Hall . leading.What Is Management? Management is the process of planning.

improve.4 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. and correct performance Leading Encourage and coordinate individuals and groups so that they work toward organizational goals 1-12 ©2007 Prentice Hall .Exhibit 1.

OB Today: Dick’s Drive-In 1-13 ©2007 Prentice Hall .

Managerial Roles  Figurehead  Leader  Liaison  Disseminator  Entrepreneur  Monitor  Spokesperson  Disturbance handler  Resource allocator  Negotiator 1-14 ©2007 Prentice Hall .

Managerial Skills Conceptual Skills Technical Skills Human Skills 1-15 ©2007 Prentice Hall .

Exhibit 1.6 An Open Systems View of Organizational Behavior 1-16 ©2007 Prentice Hall .

Challenges for OB  1: Changing Social/Cultural Environment  2: Evolving Global Environment  3: Advancing Information Technology  4: Shifting Work/Employment Relationships 1-17 ©2007 Prentice Hall .

Changing Social and Cultural Environment  National culture  Organizational ethics and well-being  Diverse work force 1-18 ©2007 Prentice Hall .

Diversity Challenges  Fairness and Justice  Decision Making and Performance  Flexibility 1-19 ©2007 Prentice Hall .

7 Challenges Created by Diverse Workforces 1-20 ©2007 Prentice Hall .Exhibit 1.

Evolving Global Environment  Understanding Global Differences  Global Learning  Global Crisis Management 1-21 ©2007 Prentice Hall .

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 1-22 ©2007 Prentice Hall .

Advancing Information Technology  Information  Organizational Learning  Creativity  Innovation  Knowledge  Information Technology 1-23 ©2007 Prentice Hall .

Shifting Work/Employment Relationships  Downsizing  Empowerment and Self-Managed Teams  Contingent Workers  Outsourcing 1-24 ©2007 Prentice Hall .

Appendix 1A: A Short History of Organizational Behavior  F.W. Taylor and Scientific Management  Mary Parker Follett  Hawthorne Studies  Theory X and Y 1-25 ©2007 Prentice Hall .

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 1-26 ©2007 Prentice Hall .F.

and experiment with ways of improving the way tasks are performed  2.Four Principles of Scientific Management  1. Study the way employees perform their tasks. Codify the new methods of performing tasks into written rules and standard operating procedures 1-27 ©2007 Prentice Hall . gather informal job knowledge that employees possess.

and then develop a pay system that provides a reward for performance above the acceptable level ©2007 Prentice Hall 1-28 . 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.Four Principles of Scientific Management_2  3. Establish an acceptable level of performance for a task.

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 ©2007 Prentice Hall 1-29 .

e..The Hawthorne Studies  Hawthorne Works of the Western Electric Company. lighting)  Found that productivity increased regardless of whether illumination was raised or lowered 1-30 ©2007 Prentice Hall . 1924-1932  Initiated as an attempt to investigate how characteristics of the work setting affect employee fatigue and performance (i.

The Hawthorne Studies_2  Factors influencing behavior: – Attention from researchers – Manager’s leadership approach – Work group norms  The “Hawthorne Effect” 1-31 ©2007 Prentice Hall .

Douglas McGregor: Theory X and Theory Y Theory X Theory Y  Average employee is lazy. dislikes work. and will try to do as little as possible  Manager’s task is to supervise closely and control employees through reward and punishment  Employees will do what is good for the organization when committed  Managers must create setting to encourage commitment to goals and provide opportunities for initiative ©2007 Prentice Hall 1-32 .