Chapter 11Introduction to Introduction to Organizational Organizational

BehaviorBehavior

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

IKEA’s 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

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 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

Insert Figure 1.1 here

Figure 1.1 What is Organizational Behavior?

Figure 1.2 Levels of Analysis

Group Level

Individual Level

Organizational Level

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

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

Figure 1.4 Four Functions of Management

PlanningDecide on organizational goals

and allocate and use resources to

achieve those goals

OrganizingEstablish the rules and

reporting relationships thatallow people to

achieve organizational goals

ControllingEvaluate how well the

organization is achieving goals and take action to

maintain, improve, and correctperformance

LeadingEncourage and coordinate

individuals and groups so that they work

toward organizational goals

Table 1.1: Mintzberg’s Managerial Roles

• Figurehead• Liaison• Disseminator• Entrepreneur• Resource allocator

• Leader• Monitor• Spokesperson• Disturbance handler• Negotiator

Managerial Skills

Conceptual Skills Technical Skills

Human Skills

Figure 1.5 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

Figure 1.6 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

Appendix 1A: 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