introduction & overview presentation 2010

Lecture Notes: Introduction 1

WELCOMETO ORGANIZATION

BEHAVIORTHE UNIVERSAL MANAGEMENT COURSE

TAKEN BY MANAGEMENT STUDENTS ALL OVER THE WORLD !

MAN 262 - SECTION 4

INSTRUCTORDr. Fred J. Woolley


INTRODUCTION& OVERVIEW

ORGANIZATION BEHAVIOR

REVIEW OFMANAGEMENT CONCEPTS


THE REVOLUTION OF THE 20th CENTURY

FROM 1900

Rural

Stationary

Self-Sufficient

Isolated

Active

TO 2000

Urban

Mobile

Dependent

Connected

Inactive

FEW ORGANIZATIONS

ORGANIZATIONS ARE EVERTHING


THE ORGANIZATION PARADIGM SHIFT

TRADITIONAL HIERARCHIES

FROM

•Dependence

•Attendance

•Obedience

•Impersonal

FLEXIBLE NETWORKS OF TEAMS

TO

•Interdependence

•Commitment

•Involvement

•Personal


CURRENT MACRO-ISSUES FACING ORGANIZATIONS1. GLOBALIZATION:

Mergers/Takeovers (Banks, Airlines, Auto Industry etc) Banking and Financial Systems Competition/Marketing

2. ORGANIZATION DESIGN: Downsizing (Flatter Organizations) Reengineering Teams

3. EMPOWERING EMPLOYESS: Partners or Associates - NOT employees Caring vs Personal Distance The personal side of the employee is important

4. SPEED: How fast products & services can be delivered to

Customers (i.e. customer-driven systems)

5. COMMUNICATION TECHNOLOGY: Instant Flexible in terms of groups and tasks Flattens the organization Empowerment


TWO FUNDAMENTAL CONCEPTS

ORGANIZATIONS ARE ONLY AS GOOD AS THE QUALITY OF THEIR MANAGERS !!!

85% OF ALL CORPORATE FAILURES ARE CAUSED BY

POOR MANAGEMENT

!!!


KEY COMPETITIVE ISSUESA SURVEY OF 615 EXECUTIVES FROM THE FORTUNE 1000 GROUP

“WHAT IS THE CRITICAL FACTOR DETERMINING QUALITY AND PRODUCTIVITY”

PRACTICING EXECUTIVES ARE CONVINCED THAT HUMAN RESOURCE ISSUES ARE THE MOST CRITICAL FOR ORGANIZATIONAL SUCCESS.

• Employee Motivation (85% rated it as critical)

• Corporate Culture (82%)

• Employee Education (74%)

• Process Control (53%)

• Expenditures on Capital Equipment (45%)

• More Control of Supplies (36%)

• More Inspections (28%)

2


THE CRITICALITY OF MANAGEMENTTHE CRITICALITY OF MANAGEMENT

The Hanson Study (1986)

“What explains the Financial Success of the Companies that are Highly Effective”

THE ABILITY OF MANAGERS TO MANAGE PEOPLE EFFECTIVELY IS

3 TimesMORE EFFECTIVE THAN ALL OTHER FACTORS

COMBINED !!!


ORGANIZATIONS

A Social Entity that is Consciously Coordinated to Achieve Selected Goals !!!

THE NATURE OF ORGANIZATIONS

• Social Systems: Activities Governed by Social &

Psychological Laws

• The Internal Environment is forever Changing – Never Static

• Mutual Interest: The Organization Needs People,

and People Need Organizations.

DEFINITION

3


MANAGEMENTMANAGEMENT

ACHIEVING ORGANIZATIONAL GOALS THROUGH AND WITH THE EFFORTS OF OTHERS !

HELPING OTHERS ACHIEVE THEIR GOALS !

THE NATURE OF MANAGEMENT :

• Managers Spend 80% of their Time Managing the Behavior (Performance) of Others !

• Management is Intensely Interpersonal !

• OB is a MAJOR TOOL for Managing Others !

DEFINITION

3


COMMON ASSUMPTION:

SOCIAL FORCES SHAPE OUR ORGANIZATIONS:

1. POLITICS

2. ECONOMICS

3. RELIGION

PERROW ARGUES:

LARGE ORGANIZATIONS ARE CHANGING SOCIETY:

1. POLITICS2. SOCIAL CLASS

(Org’l Rank)3. TECHNOLOGY4. SERVICES5. FAMILY6. RELIGION

? ?

DO ORGANIZATIONS SHAPE OUR LIVES?


MANAGEMENT PROCESSES



Prentice Hall, 2001 Chapter 1 13

OrganizingOrganizingPlanningPlanning

ControllingControlling LeadingLeading

The FunctionsThe Functionsof Managementof Management


A BASIC MANAGEMENT MODELA BASIC MANAGEMENT MODEL

TO ACHIEVE:

Ø

Ø

Ø

Ø

Ø

Ø

FEEDBACK

MANAGEMENT PERFORMS THESE

FUNCTIONS:

Ø

Ø

Ø

Ø

TO COORDINATE THE BEHAVIOR

OF:

Ø

Ø

Ø

Planning

Organizing

Leading

Controlling

Individuals

Groups

Organizations

• Production

• Satisfaction

• Efficiency

• Adaptiveness

• Development

• Survival

(The Process Model)


MODERN MANAGEMENT:MODERN MANAGEMENT:A COMPOSITE OF MODELSA COMPOSITE OF MODELS

THE

PROCESS

MODEL

EFFECTIVE

MODERN

MANAGEMENT

THE

SYSTEMS

MODEL

THE

CONTINGENCY

MODEL


MANAGEMENT SKILLS




The Skills ThatThe Skills ThatManagers NeedManagers NeedThe Skills ThatThe Skills ThatManagers NeedManagers Need

TechnicalTechnicalTechnicalTechnicalInter-Inter-PersonalPersonal

Inter-Inter-PersonalPersonal ConceptualConceptualConceptualConceptual


SKILLS IMPORTANT AT EACH SKILLS IMPORTANT AT EACH MANAGEMENT LEVELMANAGEMENT LEVEL

Interpersonal Skills Technical Skills Conceptual Skills

Middle

Management

Top

Management

First-line

Management


Motivating

Managing * Change

* Stress * Conflict

Information

Operations

BehaviourFinancial Strategic

Operational

Budgets

Programs

Human Resources

ETC.

Structure

Procedures

Job Allocatlions

Relation-Ship

ETC.

Co-Ordinating

Delegating

Developing

Training

Orienting

Selecting

Hum

an R

esou

rces

Controlling

Man

agem

ent

Lea

din

g

Org

aniz

ing

Planning

Pro

blem

Solv

ing

Managem

entInstitutional

Communicating

Core Skills

Peop

le

Ideas

Thing

s

Decision

Making

THE MANAGEMENT PROCESS

Dr. F.J. Woolley


THE MANAGER DEVELOPMENT THE MANAGER DEVELOPMENT PROCESSPROCESS

TRAINING & EXPERIENCE

Organizational

Goals

Characteristics

Management

SKILLS

• Core

• Administrative

• Interpersonal

• Personal

• Conceptual

Managing

People

Managing

Work

A Positive

High Performance

Goal Achieving

ENVIRONMENT

INPUT PROCESS OUTPUT


SubsystemsBoundarySpanning

Production,Maintenance,Adaptation, Management

BoundarySpanning

Products andServices

AN OPEN SYSTEM & SUB-SYSTEMS

OutputInput

TransformationProcess

TransformationProcess

Raw Materials:

PeopleInformation

FinanceConsumables


The Roles of ManagementThe Roles of Management

InformationalInformationalInterpersonalInterpersonal

DecisionalDecisional


Managerial ActivitiesManagerial Activities

TraditionalTraditionalManagementManagement

NetworkingNetworking

CommunicationCommunication

ManagingManagingHuman ResourcesHuman Resources


EmpoweringEmpoweringthe Workforcethe Workforce

ManagersManagers

Are GivingAre Giving

Up ControlsUp Controls

Workers AreWorkers Are

AcceptingAccepting

ResponsibilityResponsibility


WE WILL BE REFERING TO THESE CRITICAL CONCEPTS

ALL THROUGHOUT THISOB COURSE !!!

THIS COURSE IS ABOUT

MANAGING ORGANIZATION BEHAVIOR,

NOT JUST “WHAT IS”

ORGANIZATION BEHAVIOR !

2


So,What is

Organizational Behavior?


An Introduction !


Human Behavior in Human Behavior in OrganizationsOrganizations

1. A study of human behavior & group dynamics

2. OB focuses on the psycho-social, interpersonal, and behavioral dynamics in organizations

SUCCESSFUL MANAGERS ARE GOOD BEHAVIORAL SCIENTISTS !!

2


WHY STUDY OB NOW?

OB PROVIDES THE BUILDING BLOCKS FOR ADVANCED STUDY IN:

Leadership

Organization Theory

Performance Management

Strategic HR Management

The Manager/Worker Interface


ORGANIZATION BEHAVIORPROVIDES A SET OF TOOLS

THAT ALLOWS…

PEOPLE TO UNDERSTAND, RECOGNIZE, AND

DESCRIBE BEHAVIOR IN ORGANIZATIONS.

MANAGERS TO IMPOVE, ENHANCE OR CHANGE BEHAVIORS SO THAT INDIVIDUALS, GROUPS, & WHOLE ORGANIZATIONS CAN ACHIEVE THEIR GOALS


UnderstandingUnderstandingOrganizational Organizational

BehaviorBehavior

IndividualIndividualDifferencesDifferences

FundamentalFundamentalConsistenciesConsistencies

IntuitionIntuition SystematicSystematicStudyStudy


Levels of OB AnalysisLevels of OB AnalysisLevels of OB AnalysisLevels of OB Analysis

IndividualsIndividuals GroupsGroups

StructuresStructures


Overview of the OB ModelOverview of the OB Model

Individual LevelIndividual Level

Group LevelGroup Level

Organization Systems LevelOrganization Systems Level

Time

Level III

Level II

Level I


EFFECTIVENESS IS A CENTRAL EFFECTIVENESS IS A CENTRAL CONCERN OF O.B.CONCERN OF O.B.

INDIVIDUALEFFECTIVENESS

CAUSES• Ability• Skill• Knowledge• Attitude• Motivation• Stress

GROUPEFFECTIVENESS

CAUSES• Leadership• Structure• Cohesiveness• Status• Roles• Norms

ORGANIZATIONALEFFECTIVENESS

CAUSES• Environment• Technology• Strategies• Structure• Processes• Culture

GROUPEFFECTIVENESS

ORGANIZATIONALEFFECTIVENESS


IN OB WE STUDY….INDIVIDUALS

o PERSONALITY

o ABILITY

o VALUES

o ATTITUDES

o PERCEPTION

o EMOTIONS

o MOTIVATION

o FAIRNESS

o RELATIONSHIPS

GROUPS:DYNAMICS

o DEVELOPMENT

o LEADERSHIP

o EFFECTIVENESS

o DECISION MAKING

o POWER

o POLITICS

o CONFLICT

o NEGOTIATIONS

ORGANIZATIONS

o CULTURE

o STRUCTURE

o WORK DESIGN

o HUMAN RESOURCES

o CHANGE

o STRESS


The Study of Organizational BehaviorThe Study of Organizational Behavior

IndividualIndividual

GroupGroup

OrganizationOrganization

Social PsychologySocial Psychology

Political SciencePolitical Science

AnthropologyAnthropology

PsychologyPsychology

SociologySociology

Organizational

Behavior


MACRO-MODEL OF OB

OB INVESTIGATES THE IMPACT THAT INDIVIDUALS, GROUPS, AND THE ORGANIZATION HAVE ON BEHAVIOR WITHIN

ORGANIZATIONS FOR THE PURPOSE OF IMPROVING EFFECTIVENESS.

2

Organization

Individuals Groups

QUALITY of

ORGANIZATIONAL

BEHAVIOR

DEGREE of

EFFECTIVENESSCOMPETITIVENESS


HOLISTICHOLISTIC ORGANIZATIONAL BEHAVIORORGANIZATIONAL BEHAVIOR

Interprets the PEOPLE/ORGANIZATION relationship in terms of the whole person, whole group, whole organization and the whole social system.

An across-the-board view of people-in-organizations.

A total situation focus – Not a single event or problem.


BASIC APPROACHES to BASIC APPROACHES to ORGANIZATIONAL BEHAVIOURORGANIZATIONAL BEHAVIOUR

Ø Human resources Approach

Ø Contingency Approach

Ø Productivity Approach

Ø Systems Approach

Employee growth & development are important

Different environments/goals demand different behaviors

Efficiency becomes the main criteria

All parts of an organization interact in a complex relationship

OB requires a mixture of all 4 approaches!

2


FOUR MODELS OF FOUR MODELS OF ORGANIZATIONAL BEHAVIORORGANIZATIONAL BEHAVIOR

Basis of

Model

Power Economic resources

Leadership Partnership

Managerial

Orientation

Authority Money Support Teamwork

Employee

Orientation

Obedience Security and benefits

Job performance

Responsible behavior

Employee Psychological

Result

Dependence on boss

Dependence on organization

Participation Self-discipline

Employee

needs met

Subsistence Security Status and recognition

Self-actualization

Performance

Results

Minimum Passive co-operation

Awakened drives

Moderate enthusiasm

AUTOCRATIC CUSTODIAL SUPPORTIVE COLLEGIAL

Developmental & Contingent2


MAJOR CHARACTERISTICS OF OBMAJOR CHARACTERISTICS OF OB

1. 3 Levels of Analysis Individual, Group, Organization

2. Interdisciplinary Psychology, Sociology, Anthropology, & Political science

3. Humanistic Orientation Attitudes, Perceptions, Needs & Emotions

4. Performance Orientation The ultimate goal of OB is to improve, sustain, encourage effective performance

5. Recognition of External Environment Technology, Laws, Competition, Economy

6. Practical Application OB knowledge must be useful to practicing managers

7. Organizations as Social Systems Relationships among individuals & groups in organizations create expectations for the behavior of individuals

8. Contingency Approach There is no one Best way! Best depends on the situation

9. Structure & Process Both play key roles in understanding OB


OB-And the Social SystemOB-And the Social System

Social System: A complex set of human relationships interacting in countless ways.

Ø The behavior of any one member can affect the behavior of others directly/indirectly.

Ø All social systems interact with their environmentsØ Open systems = “Input-Process-Output”

Social Equilibrium: A dynamic working balance in the system. However, the equilibrium is dynamic and ever-changing.

FUNCTIONAL & DYSFUNCTIONAL ACTIONS:

Ø Functional actions have favorable effects

Ø Dysfunctional actions unfavorable effects

2


Key Elements in Organizational BehaviorKey Elements in Organizational Behavior

Organization

People

TechnologyStructure

Environment

EnvironmentEnvir

onm

ent


THE RELATIONSHIP OF OB TO OTHER THE RELATIONSHIP OF OB TO OTHER CLOSELY RELATED DISCIPLINESCLOSELY RELATED DISCIPLINES

THEORETICALOT

(Organization Theory)

OB

(Organizational Behavior)

APPLIEDOD

(Organizational Development)

P/HR

(Personal/ Human Resources)

MACRO MICRO


MANAGERIAL USE OF OBMANAGERIAL USE OF OB

Managerial

Systems

ManageOrganizational

Behavior

Better

People/

organization

relationship

Human

objectives

Organizational

objectives

Social

objectives


A MODEL of OBA MODEL of OB

Management’s

-Philosophy

-Values

-Vision

-Goals

Organizational

Culture

• Leadership

• Communication

• Group dynamics

Quality of work life

Motivation

Outcomes:

• Performance

• Individual satisfaction

• Personal growth and development

Formal

organization

Social

environment

Informal

organization


The Psychological ContractThe Psychological Contract

An unwritten agreement that defines the conditions of an employee’s psychological involvement in the social system.

Economic Contract

• Loyalty

• Creativity

• Extra effort

• Time

• Talent

• Energy

EXPECT

(unwritten exchange)

EXPECT

(written exchange)

• Wages

• Hours

• Reasonable working conditions

• Job security

• Fair treatment

• Rewarding relationships

• Developmental opportunities

Psychological Contract


THE PSYCHOLOGICAL CONTRACT AND THE PSYCHOLOGICAL CONTRACT AND THE ECONOMIC CONTRACTTHE ECONOMIC CONTRACT

EmployeeEmployee EmployerEmployer

Psychological

Contract

Psychological

Contract

Economic

Contract

Economic

Contract

Employee:

If expectations are met:

•High job satisfaction

•High performance

•Continuance with organization

Employee:


•High job satisfaction

•High performance

•Continuance with organization

If not met:

•Low job satisfaction

•Low performance

•Possible separation

If not met:

•Low job satisfaction

•Low performance


Employer:


•Employee retention

•Possible promotion

Employer:


•Employee retention

•Possible promotion

If not met:

•Corrective action


If not met:

•Corrective action



VarVariiables ables Influencing Individual BehaviorInfluencing Individual Behavior

The PERSON

• Skills

• Abilities

• Personalities

• Perceptions

• Attitudes

• Values

• Ethics

The ENVIRONMENT

• Organization

• Work group

• Job

• Personal life

BEHAVIOR


OB AS A OB AS A

CONTINGENCY MODELCONTINGENCY MODEL


An Introduction !


UNIVERSALVIEW:

UNIVERSALVIEW:

Same managerialprinciples applyto everysituation

Same managerialprinciples applyto everysituation

CONTINGENCY VIEW:

Appropriate managerialaction depends on thesituation

CONTINGENCY VIEW:

Appropriate managerialaction depends on thesituation

UNIVERSAL/CONTINGENCY VIEW

Situation1

Situation1

Situation3

Situation3

Situation2

Situation2


There Are Few Absolutes in OB

ContingencyVariablesx y

2


A CONTINGENCY MODELA CONTINGENCY MODEL

Independent variables

X

Dependent variables

Y(affect)

If “X” then “Y”

Independent variables

X

Dependent variables

YModerating variables

Z

If “X” then “Y” but only if condition “Z” exists

AS GOOD BEHAVIORAL SCIENTISTS MANAGERS MUST STUDY

1. Independent Variables

2. Moderating Variables

In Order to Explain Behavior “Y”

2


MAJOR DEPENDENT VARIABLES IN OBMAJOR DEPENDENT VARIABLES IN OB

1. PRODUCTIVITY: Effectiveness & Efficiency

2. ABSENTEEISM: Costs Billion of $ Per Year

3. TURNOVER: Time & Cost for Recruiting, Selecting and Training

4. JOB SATISFACTION: Attitude Rather Than Behavior

MAJOR INDEPENDENT VARIABLES:

WHAT ARE THE DETERMINANTS OF

PRODUCTIVITY

ABSENTEEISM

TURNOVER

JOB SATISFACTION

CITIZENSHIP


The Dependent Variables


The Dependent Variables (cont’d)


Independent VariablesIndependent VariablesIndividual Group Organization

•Biographical

Traits

•Personality

•Values & Attitudes

•Ability

•Perception

•Motivation

•Individual

Learning

•Decision Making

•Communication

•Other Groups

•Conflict

•Power & Politics

•Group Structure

•Work Teams

•Leadership

•Decision Making

•Culture

•Structure

•Design

•Technology

•Work Processes

•Selection

Processes

•Training Programs

•Appraisal

PracticesTHESE ARE THE VARIABLES THAT MUST BE MANAGED IN ORDER TO

ACHIEVE ACCEPTABLE DEPENDENT VARIABLE LEVELS


Old Versus New Manager Old Versus New Manager ProfileProfile

Old Versus New Manager Old Versus New Manager ProfileProfile

Which kind are you?

OLD MANAGER

Thinks of self as a managers or boss

Follows the chain of command

Works within a set organizational

structure

Makes most decisions alone

Hoards information

Tries to master one major discipline,

such as marketing or finance

Demands long hours

OLD MANAGER

Thinks of self as a managers or boss

Follows the chain of command

Works within a set organizational

structure

Makes most decisions alone

Hoards information

Tries to master one major discipline,

such as marketing or finance

Demands long hours

NEW MANAGER

Thinks of self as a sponsor, team leader or internal consultant

Deals with anyone necessary to get the job done

Changes the organizational structure in response to market changes

Invites others to join in decision making

Shares information

Tries to master a broad array of managerial disciplines

Demands results

NEW MANAGER

Thinks of self as a sponsor, team leader or internal consultant

Deals with anyone necessary to get the job done

Changes the organizational structure in response to market changes

Invites others to join in decision making

Shares information

Tries to master a broad array of managerial disciplines

Demands results

Lecture Notes: Introduction

Traditional Students Versus Learners

The Student Game• Study material to pass exams

• Passively accept and memorize ideas from others

• Complete assignments to please teacher

• See course as an obstacle to getting a degree

• View assignments as threat to GPA

• Goal: Good Grades

• See instructor as expert and assessor

The Learner Gamev Internalizes concepts to be Internalizes concepts to be

successfulsuccessfulv Critically evaluates ideas and Critically evaluates ideas and

test validitytest validityv Uses assignments to practice Uses assignments to practice

and improve skillsand improve skillsv Sees course as opportunity to Sees course as opportunity to

enhance successenhance successv Views assignments as Views assignments as

opportunity to get feedback opportunity to get feedback on personal developmenton personal development

v Goal: Skill MasteryGoal: Skill Masteryv Aware of traditional roles-but Aware of traditional roles-but

adds coach, counselor, and adds coach, counselor, and facilitatorfacilitator


SUMMARY & CONCLUSION

WHAT ARE SOME CONCLUDING STATEMENTS YOU CAN MAKE

CONCERNING THE IMPORTANCE OF OB?


YOU BE THE CONSULTANTAS PART OF YOUR PROFESSIONAL DEVELOPMENT YOUR COMPANY

IS PAYING FOR YOU TO TAKE THIS COURSE IN OB. HOWEVER, YOUR BOSS IS SKEPTICAL BECAUSE HE DOES NOT UNDERSTAND WHAT THE COURSE IS ALL ABOUT, AND HOW IT WILL BENEFIT THE COMPANY WHEN YOU COMPLETE IT.

ANSWER THE FOLLOWING QUESTIONS AS PREPARATION FOR A MEETING TO ENLIGHTEN YOUR BOSS:

1. HOW WOULD YOU DESCRIBE THIS COURSE TO YOUR BOSS ?

2. HOW WILL YOU RESPOND IF HE SAYS: “YEAH, BUT IT’S ALL JUST COMMON SENSE”?

3. WHAT BENEFITS TO THE COMPANY WOULD YOU TELL YOUR BOSS HE MIGHT SEE AS A RESULT OF IMPLEMENTING SOME OF THE PRINCIPLES AND PRACTICES INCLUDED IN THIS COURSE ?

introduction & overview presentation 2010

Education

functions of management

nature of management

management studentsall

roles of management

feedback management

line management

criticality of management

poor management