Chapter 1

What Managers Do
They get things done through other people.
Management Activities:
Make decisions
Allocate resources
Direct activities of others to attain goals
Work in an organization
A consciously coordinated social unit composed of two
or more people that functions on a relatively continuous
basis to achieve a common goal or set of goals.

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Four Management Functions
PLAN
A process that includes defining goals, establishing
strategy, and developing plans to coordinate activities.
ORGANIZE
Determining 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.

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Four Management Functions
LEAD
A function that includes motivating employees,
directing others, selecting the most effective
communication channels, and resolving conflicts.
CONTROL
Monitoring performance, comparing actual
performance with previously set goals, and correcting
any deviation.

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Katz’s Essential Management Skills
Technical Skills
The ability to apply specialized knowledge or expertise
Human Skills
The ability to work with, understand, and motivate
other people, both individually and in groups
Conceptual Skills
The mental ability to analyze and diagnose complex
situations

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Luthans’ Study of Managerial
Activities
Four types of managerial activity:
Traditional Management
 Decision-making, planning, and controlling.
Communication
 Exchanging routine information and processing paperwork
Human Resource Management
 Motivating, disciplining, managing conflict, staffing and
training.
Networking
 Socializing and interacting with others.

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Organizational Behavior
A field of study that investigates the impact that
individuals, groups, and structure have on behavior
within organizations, for the purpose of applying such
knowledge toward improving an organization’s
effectiveness.

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 There are certain fundamental
consistencies underlying the behavior
of all individuals that can be identified
and then modified.

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Intuition and Systematic Study
Systematic Study

Intuition

Evidence-Based Management (EBM)

The two are complementary means of

predicting behavior.

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Managers Should Use These
Approaches
Intuition

Systematic study

Use evidence as much as possible to inform your

intuition and experience.
“The trick is to know when to go with your gut”.
– Jack Welsh
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Four Contributing Disciplines
Psychology

Sociology

Social Psychology

Anthropology

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Challenges and Opportunities for
OB
Responding to economic pressure.
Responding to Globalization
 Increased foreign assignments
 Working with people from different cultures
 Overseeing movement of jobs to countries with low-cost
labor

Managing Workforce Diversity

 The people in organizations are becoming more heterogeneous
demographically (disability, gender, age, national origin, non-
Christian, race, and domestic partners)
 Embracing diversity, changing demographics
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Challenges and Opportunities for
OB
Improving Customer Service
Improving People Skills
Working in networked organization
Enhancing employee well being at work
Creating positive work environment
Improving Ethical Behavior

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Developing an OB Model
Each level is constructed on the prior level
 Individual
 Group

 Organizational Systems

OB in a contingency framework (using situational

variables to explain cause-and-effect
relationships).
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OB Dependent Variables
Productivity

Absenteeism

Turnover

Job satisfaction
OCB
Deviance Behavior

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