Chapter 1

Introduction to Organizational Behavior

McGraw-Hill/Irwin

Copyright 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives

Define in applied terms organizational behavior (OB) Describe the disciplines that have contributed to the field of organizational behavior Discuss the importance of understanding behavior in organizations Explain the time dimension model of measuring effectiveness Explain the relationship between quality and organizational effectiveness

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Introduction

Imagine working where

Workers are excited about their jobs Managers listen carefully to workers comments The atmosphere is vibrant

Is this the ideal work setting?

It must be achieved if a firm, entrepreneur, or institution is to survive the coming years

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Environmental Forces Reshaping Management

Technology Rapidity of Change Psychological Contract Cultural Diversity

Human Resources

Globalism

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The Origins of Management

Before 1900, management

Was based on trial and error Had little or no theory Did not share ideas and practices

The Industrial Era

Began around the time of the Civil War

First management publications emerged

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The Origins of Management

Frederic Taylors Scientific Management

Henri Fayols Functions of Management

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Why Study Organizational Behavior?

Studying OB can help us understand

Why employees behave as they do Why one individual or group is more productive than another Why managers continually seek ways to design jobs and delegate authority

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Why Study Organizational Behavior?

What is OB?
A way of thinking

Multidisciplinary A humanistic orientation

Performance-oriented Based on recognized disciplines

Has an applications orientation

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Contributors to the Study of OB

Psychology Individual Sociology

Social Psychology

Group

Organizational Behavior

Anthropology Organization Political Science

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Leaders and Organizational Behavior

Internal and External Challenges

Changing makeup & diversity of workforce Demanding customers Changes in markets and competition Using and managing information technology Everything is in motion and churning

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The Hawthorne Studies

Trade unions rebelled against Taylors scientific management principles

Mary Parker Follet promoted participatory decision making and decentralization Industry wanted evidence that focusing on people produces higher productivity Harvard University conducted studies

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The Hawthorne Studies

Effect of illumination on worker output Rest pauses, shorter days, incentives, management
Workers produced more merely by being observed and studied Social pressures and group norms could increase or restrict output Some contend fear of job loss was a factor
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Framing the Study of Organizational Behavior

Studying Organizations Part 1 Part 2 Part 3 Part 4 Part 5 The Field of Organizational Behavior Understanding & Managing Individual Behavior Group Behavior and Interpersonal Influence Organizational Processes Organizational Design, Change, and Innovation
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The Organizations Environment

Exist in societies Organizations

Are created by societies

Environmental forces in these societies

Customer/client needs
Legal/political constraints Economic/technological changes

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The Individual in the Organization

Individual performance is the foundation of organizational performance Important influences on individual behavior and motivation Individual characteristics Individual motivation Rewards Stress
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Group Behavior and Interpersonal Influence

Interpersonal influence and group behavior are powerful forces

They affect organizational performance

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Group Behavior and Interpersonal Influence

Power Organizational Behavior Intergroup behavior and conflict Leadership

Politics

Group behavior

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Organizational Processes

When behavioral processes in an organization dont function well, problems can arise

Communication Process

Decisionmaking

Leadership Process

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Organizational Structure

Managers must understand

The formal pattern of activities and interrelationships Among the various subunits of the organization

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Organizational Change and Innovation

Effectiveness might be improved by changing the total organization

Be prepared to deal with employee reactions when changes occur

Reactions can range from mild to extreme

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Effectiveness in Organizations

Whether and how managers influence behavior, and thus effectiveness, is hard to determine

Levels of analysis Individual, group, organizational Levels of managerial responsibility Individuals, groups of individuals, the organization itself

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Systems Theory Enables managers to describe the behavior of organizations

Inputs

Process

Outputs

Environment

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Systems Theory

Used to integrate organizational effectiveness and time Effectiveness criteria must reflect

The entire input-process-output cycle Interrelationships between the organization and its outside environment The stage of the organizations life

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Systems Theory

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Time-Based Criteria

Quality Efficiency

Productivity Satisfaction

Adaptiveness

Development

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