Introduction To The Field Of Organizational Behavior

Introduction to the Field C H A P T E R of Organizational Behavior

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© 2005 The McGraw-Hill Companies, Inc.

What are Organizations?  Groups of people who

work interdependently toward some purpose  Structured patterns

of interaction  Coordinated tasks  Work toward some purpose

Why Study Organizational Behavior

Understand organizational events

Organizational Behavior Research Influence organizational events

Predict organizational events

Trends: Globalization  Economic, social, and cultural connectivity

with people in other parts of the world  Effects of globalization on organizations:  Greater efficiencies and knowledge sources  Ethical issues about economies of developing

countries  New organizational structures and communication  Greater workforce diversity  More competitive pressure, demands on employees

Trends: Information Technology  Blurs temporal and spatial boundaries

   

between employees and organizations Re-designs jobs and power relationships Increases value of knowledge management Supports telecommuting Supports virtual teams

Telecommuting  An alternative work arrangement

where employees work at home or remote site, usually with a computer connection to the office  Tends to increase productivity and empowerment, reduce stress and costs  Problems with lack of recognition, lack of social interaction

Trends: Changing Workforce  Primary and secondary diversity -- but

concerns about distinguishing people by ethnicity  More women in workforce and professions  Different needs of Gen-X/Gen-Y and baby-boomers  Diversity has advantages, but firms need to adjust

Trends: Employment Relationship  Employability  “New deal” employment relationship  Continuously learn new skills

 Contingent work  No contract for long-term employment  Free agents, temporary-temporaries  Minimum hours of work vary

Employability vs Job Security Employabili ty

Job Security • • • •

Lifetime job security Jobs are permanent Company manages career Low emphasis on skill development

• • • •

Limited job security Jobs are temporary Career self-management High emphasis on skill development

Trends: Workplace Values & Ethics  Values are long-lasting beliefs about what is

important in a variety of situations  Define right versus wrong --guide our decisions  Values relate to individuals, companies,

professions, societies, etc.

 Importance values due to:  Need to guide employee decisions and actions  Globalization increases awareness of different

values  Increasing emphasis on applying ethical values  Ethics -- study of moral principles or values

Corporate Social Responsibility  Corporate Social Responsibility  Organization’s moral obligation

toward its stakeholders

 Stakeholders  Shareholders, customers, suppliers,

governments etc.

 Triple bottom line philosophy  Economic, Social & Environmental

Organizational Behavior Anchors Multidisciplin ary Anchor Open Systems Anchor

Organizational Behavior Anchors

Multiple Levels of Analysis Anchor

Systematic Research Anchor

Contingency Anchor

Open Systems Anchor of OB Feedback

Feedback

Subsyst

Inputs

Subsyst

Organization Subsyst

Subsyst

Outputs

Knowledge Management Defined  Any structured activity

that improves an organization’s capacity to acquire, share, and use knowledge for its survival and success

Intellectual Capital Human Capital

Knowledge that people possess and generate

Structural Capital

Knowledge captured in systems and structures

Relationship Capital

Values derived from satisfied customers, reliable suppliers, etc.

Knowledge Management Processes Knowledge acquisition

• Grafting • Individual learning • Experimentation

Knowledge sharing

• Communication • Communities of practice

Knowledge use

• Awareness • Empowerment

Organizational Memory  The storage and preservation of

intellectual capital  Retain intellectual capital by:  Keeping knowledgeable employees  Transferring knowledge to others  Transferring human capital to structural capital

 Successful companies also unlearn.

What Is An Organization?  An Organization Defined  A deliberate arrangement of people to

accomplish some specific purpose

 Common Characteristics of

Organizations  Have a distinct purpose (goal)  Composed of people  Have a deliberate structure

Characteristics of Organizations

Components of an Organization Task – an organization’s mission, purpose, or goal for existing People – the human resources of the organization Structure – the manner in which an organization’s work is designed at the micro level; how departments, divisions, and the overall organization are designed at the macro level Technology – the tools, knowledge, and/or

Management Functions Planning

Organizing Management Functions

Controlling

Leading

 Management Roles  Interpersonal roles  Informational roles  Decisional roles

Skills Needed at Different Management Levels

How The Manager’s Job Is Changing  The Increasing Importance of Customers  Customers: the reason that organizations exist  Managing customer relationships is the responsibility of all managers and employees.  Consistent high quality customer service is essential for survival.

 Innovation  Doing things differently, exploring new territory,

and taking risks

 Managers should encourage employees to be aware of and act on opportunities for innovation.

hanges Impacting the Manager’s Job

Enter Organizational Organizational behavior (OB)

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.

Basic Assumptions in OB  Individual differences: Individuals are      

different A whole person Behavior of individual is caused An individual has dignity Organisations are social systems Mutual Interest Holistic concept

Scope of OB  Intra-personal behavior  Inter-personal behavior  Organizations

Organizational Behavior: Dynamics in Organizations Psychosocial

Interpersonal

Organizational Behavior

Behavioral

Organizational Variables that Affect Human Behavior Communication

Organizational Structure

Human Behavior

Work Design

Performance Appraisal

Jobs Organizational Design

External Perspective Understand behavior in terms of external events,

environmental forces, and behavioral consequences

Internal Perspective Understand behavior in terms of thoughts, feelings, past experiences, and needs Explain behavior by examining individuals’ history and personal value system Explain behavior by examining surrounding external events and environmental forces

Each perspective has produced motivational & leadership theories.