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 person’s 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 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
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 organization’s human,
financial, material, and other resources to increase its
effectiveness
Four Functions of Management

Planning Organizing
Decide on organizational goals Establish the rules and
and allocate and use reporting relationships that
resources to allow people to
achieve those goals achieve organizational goals

Controlling
Leading
Evaluate how well the
Encourage and coordinate
organization is achieving goals
individuals and groups
and take action to
so that they work
maintain, improve, and correct
toward organizational goals
performance
Mintzberg’s
Managerial Roles
 Figurehead  Leader
 Liaison  Monitor
 Disseminator  Spokesperson
 Entrepreneur  Disturbance handler
 Resource allocator  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 Organization’s
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
 Manager’s 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
 Manager’s 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
 Manager’s task is create a
work setting that encourages
commitment to
organizational goals and
provides opportunities for
employees to be exercise
initiative