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Chapter 1
Introduction to
Organizational
Behavior
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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 persons 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
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Chapter 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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IKEAs Global Approach to OB
IKEA strives to increase employees skills and
knowledge
IKEA provides employees with rewards that
encourage high performance
IKEA encourages employee commitment and
cooperation
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What is an Organization?
An organization is a collection of people
who work together to achieve individual and
organizational goals
Individual goals
Organizational goals

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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
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Insert Figure 1.1 here
Figure 1.1
What is Organizational Behavior?
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Figure 1.2 Levels of Analysis
Group Level





Individual
Level
Organizational Level
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Figure 1.3 Components of
Organizational Behavior
Understanding
organizational behavior
requires studying
Part One Individuals in Organizations
Part Two Group and Team Processes
Part Three Organizational Processes
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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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Figure 1.4 Four Functions of
Management
Planning
Decide on organizational goals
and allocate and use
resources to
achieve those goals
Organizing
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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Table 1.1: Mintzbergs
Managerial Roles
Figurehead
Liaison
Disseminator
Entrepreneur
Resource allocator
Leader
Monitor
Spokesperson
Disturbance
handler
Negotiator
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Managerial Skills
Conceptual Skills Technical Skills
Human Skills
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Figure 1.5 An Open Systems View of
Organizational Behavior
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Challenges for
Organizational Behavior
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 work force
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Diversity Challenges
Fairness and Justice
Decision-Making and Performance
Flexibility
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Figure 1.6 Diversity
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Evolving Global Environment
Understanding Global
Differences
Improve Organizations
Behaviors and
Procedures in
Response to Those
Differences

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Advancing Information
Technology
Information
Knowledge
Information Technology
Organizational Learning
Intranets
Creativity
Innovation
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Shifting Work/ Employment
Relationships
Downsizing
Empowerment and Self-Managed Teams
Contingent Workers
Outsourcing
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Appendix 1A: A Short History of
Organizational Behavior
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: 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 X
Average employee is lazy,
dislikes work, and will try to
do as little as possible
Managers 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
Managers task is create a
work setting that
encourages commitment to
organizational goals and
provides opportunities for
employees to be exercise
initiative