introduction overview presentation
TRANSCRIPT
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Lecture Notes: Introduction 1
WELCOMETO ORGANIZATION BEHAVIOR
THE UNIVERSAL MANAGEMENT COURSE
TAKEN BY MANAGEMENT STUDENTS
ALL OVER THE WORLD !
MAN 262 - SECTION 4INSTRUCTOR
Dr. Fred J. Woolley
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Lecture Notes: Introduction 2
INTRODUCTION& OVERVIEW
ORGANIZATION BEHAVIOR
REVIEW OFMANAGEMENT CONCEPTS
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Lecture Notes: Introduction 3
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
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Lecture Notes: Introduction 4
THE ORGANIZATION PARADIGM SHIFT
TRADITIONAL HIERARCHIES
FROM
Dependence
Attendance
Obedience
Impersonal
FLEXIBLE NETWORKS
OF TEAMS
TO
Interdependence
Commitment
Involvement
Personal
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Lecture Notes: Introduction 5
CURRENT MACRO-ISSUES FACING ORGANIZATIONS
1. 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
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Lecture Notes: Introduction 6
TWO FUNDAMENTAL CONCEPTS
ORGANIZATIONS ARE ONLY AS GOOD AS THE
QUALITY OF THEIR MANAGERS !!!
85% OF ALL CORPORATE FAILURES ARE CAUSED BY
POOR MANAGEMENT
!!!
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Lecture Notes: Introduction 7
KEY COMPETITIVE ISSUES
A 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 CRITICALFOR 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
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Lecture Notes: Introduction 8
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 PEOPLEEFFECTIVELY IS
3 TimesMORE EFFECTIVE THAN ALL OTHER FACTORS
COMBINED !!!
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Lecture Notes: Introduction 9
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
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Lecture Notes: Introduction 10
MANAGEMENTMANAGEMENT
ACHIEVING ORGANIZATIONAL GOALS THROUGH AND WITH THE
EFFORTS OF OTHERS !
HELPING OTHERSACHIEVE THEIRGOALS !
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
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Lecture Notes: Introduction 11
COMMON
ASSUMPTION:
SOCIAL FORCES
SHAPE OUR
ORGANIZATIONS:
1. POLITICS
2. ECONOMICS
3. RELIGION
PERROW
ARGUES:
LARGE
ORGANIZATIONS
ARE CHANGING
SOCIETY:
1. POLITICS
2. SOCIAL CLASS
(Orgl Rank)
3. TECHNOLOGY4. SERVICES
5. FAMILY
6. RELIGION
? ?
DO ORGANIZATIONS SHAPE OUR LIVES?
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Lecture Notes: Introduction 12
MANAGEMENTPROCESSES
ORGANIZATION BEHAVIOR
REVIEW OFMANAGEMENT CONCEPTS
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Prentice Hall, 2001 Chapter 1 13
OrganizingOrganizingPlanningPlanning
ControllingControlling LeadingLeading
The FunctionsThe Functionsof Managementof Management
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Lecture Notes: Introduction 14
A BASIC MANAGEMENT MODELA BASIC MANAGEMENT MODEL
TO ACHIEVE:
4VSHYGXMSR
7EXMWJEGXMSR
)JJMGMIRG]
%HETXMZIRIWW
(IZIPSTQIRX
7YVZMZEP
FEEDBACK
MANAGEMENT
PERFORMS THESE
FUNCTIONS:
4PERRMRK
3VKERM^MRK
0IEHMRK
'SRXVSPPMRK
TO COORDINATE
THE BEHAVIOR
OF:
-RHMZMHYEPW
+VSYTW
3VKERM^EXMSRW
Planning
Organizing
Leading
Controlling
Individuals
Groups
Organizations
Production
Satisfaction
Efficiency
Adaptiveness
Development Survival
(The Process Model)
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Lecture Notes: Introduction 15
MODERN MANAGEMENT:MODERN MANAGEMENT:
A COMPOSITE OF MODELSA COMPOSITE OF MODELS
THE
PROCESS
MODEL
EFFECTIVE
MODERN
MANAGEMENT
THE
SYSTEMS
MODEL
THE
CONTINGENCY
MODEL
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Lecture Notes: Introduction 16
MANAGEMENTSKILLS
ORGANIZATION BEHAVIOR
REVIEW OFMANAGEMENT CONCEPTS
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Prentice Hall, 2001 Chapter 1 17
The Skills ThatThe Skills ThatManagers NeedManagers Need
TechnicalTechnicalTechnicalTechnical
InterInter--
PersonalPersonal
InterInter--
PersonalPersonal ConceptualConceptualConceptualConceptual
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Lecture Notes: Introduction 18
SKILLS IMPORTANT AT EACHSKILLS IMPORTANT AT EACH
MANAGEMENT LEVELMANAGEMENT LEVEL
Interpersonal Skills Technical Skills Conceptual Skills
Middle
Management
Top
Management
First-line
Management
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Lecture Notes: Introduction 19
Motivating
Information
Operations
BehaviourFinancial
Strategic
Operational
Budgets
Programs
Human
Resources
ETC.
Structure
Procedures
Job
Allocatlions
Relation-
ShipETC.
Co-
Ordinating
Delegating
Developing
Training
Orienting
Selecting
THE MANAGEMENT PROCESS
Dr. F.J. Woolley
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Lecture Notes: Introduction 20
THE MANAGER DEVELOPMENTTHE 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
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Lecture Notes: Introduction 21
SubsystemsBoundary
Spanning
Production,
Maintenance,
Adaptation,
Management
Boundary
Spanning
Products
and
Services
AN OPEN SYSTEM & SUB-SYSTEMS
OutputInput
TransformationProcess
Transformation
Process
RawMaterials:
People
Information
Finance
Consumables
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Prentice Hall, 2001 Chapter 1 22
The Roles of ManagementThe Roles of Management
InformationalInformationalInterpersonalInterpersonal
DecisionalDecisional
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Prentice Hall, 2001 Chapter 1 23
Managerial ActivitiesManagerial Activities
TraditionalTraditional
ManagementManagement
NetworkingNetworking
CommunicationCommunication
ManagingManagingHuman ResourcesHuman Resources
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Prentice Hall, 2001 Chapter 1 24
Empowering
Empoweringthe Workforcethe Workforce
ManagersManagers
Are GivingAre Giving
Up ControlsUp Controls
Workers AreWorkers Are
AcceptingAccepting
ResponsibilityResponsibility
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Lecture Notes: Introduction 25
WE WILL BE REFERING TOTHESE CRITICAL CONCEPTS
ALL THROUGHOUT THISOB COURSE !!!
THIS COURSE IS ABOUT
MANAGING ORGANIZATION BEHAVIOR,
NOT JUST WHAT IS
ORGANIZATION BEHAVIOR !
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Lecture Notes: Introduction 26
So,
What is
Organizational Behavior?
ORGANIZATION BEHAVIOR
An Introduction !
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Lecture Notes: Introduction 27
Human Behavior in OrganizationsHuman Behavior in Organizations
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 !!
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Lecture Notes: Introduction 28
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
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Lecture Notes: Introduction 29
ORGANIZATION BEHAVIOR
PROVIDES A SET OF TOOLSTHAT 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
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Prentice Hall, 2001 Chapter 1 30
UnderstandingUnderstanding
OrganizationalOrganizationalBehaviorBehavior
IndividualIndividualDifferencesDifferences
FundamentalFundamentalConsistenciesConsistencies
IntuitionIntuitionSystematicSystematic
StudyStudy
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Prentice Hall, 2001 Chapter 1 31
Levels of OB AnalysisLevels of OB Analysis
Individuals Groups
Structures
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Prentice Hall, 2001 Chapter 1 32
Overview of the OB ModelOverview of the OB Model
Individual LevelIndividual Level
GroupLevelGroupLevel
Organization Systems LevelOrganization Systems Level
Time
Level III
Level II
Level I
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Lecture Notes: Introduction 33
EFFECTIVENESS IS A CENTRALEFFECTIVENESS IS A CENTRAL
CONCERN OF O.B.CONCERN OF O.B.
INDIVIDUAL
EFFECTIVENESS
CAUSES
Ability Skill
Knowledge
Attitude
Motivation
Stress
GROUPEFFECTIVENESS
CAUSES
Leadership
Structure
Cohesiveness
Status Roles
Norms
ORGANIZATIONAL
EFFECTIVENESS
CAUSES
Environment Technology
Strategies
Structure
Processes
Culture
GROUPEFFECTIVENESS
ORGANIZATIONAL
EFFECTIVENESS
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Lecture Notes: Introduction 34
IN OB WE STUDY.INDIVIDUALS
o PERSONALITY
o ABILITY
o VALUES
o ATTITUDES
o PERCEPTION
o EMOTIONS
o MOTIVATION
o FAIRNESS
o RELATIONSHIPS
GROUPS:
SDYNAMICS
o DEVELOPMENT
o LEADERSHIP
o EFFECTIVENESS
o DECISION MAKING
o POWER
o POLITICS
o CONFLICT
o NEGOTIATIONS
ORGANIZATIONS
o CULTURE
o STRUCTURE
o WORKDESIGN
o HUMA
N RESOURCESo CHANGE
o STRESS
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Prentice Hall, 2001 Chapter 1 35
The Study of Organizational BehaviorThe Study of Organizational Behavior
IndividualIndividual
GroupGroup
OrganizationOrganization
Social PsychologySocial Psychology
Political SciencePolitical Science
AnthropologyAnthropology
PsychologyPsychology
SociologySociology
Organizational
Behavior
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Lecture Notes: Introduction 36
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
EFFECTIVENESS
COMPETITIVENESS
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Lecture Notes: Introduction 37
HOLISTICHOLISTICORGANIZATIONAL 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.
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Lecture Notes: Introduction 38
BASIC APPROACHES toBASIC APPROACHES to
ORGANIZATIONAL BEHAVIOURORGANIZATIONAL BEHAVIOUR
Human resources Approach
Contingency Approach
Productivity Approach
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!
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Lecture Notes: Introduction 39
FOUR MODELS OFFOUR 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
Employeeneeds met
Subsistence Security Status andrecognition
Self-actualization
Performance
Results
Minimum Passive co-
operation
Awakened
drives
Moderate
enthusiasm
AUTOCRATIC CUSTODIAL SUPPORTIVE COLLEGIAL
Developmental & Contingent2
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Lecture Notes: Introduction 40
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
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Lecture Notes: Introduction 41
OBOB--And the Social SystemAnd the Social System
Social System: A complex set of human relationships interacting in
countless ways.
The behavior of any one member can affect the behavior of others
directly/indirectly.
All social systems interact with their environments
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:
Functional actions have favorable effects
Dysfunctional actions unfavorable effects
2
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Lecture Notes: Introduction 42
Key Elements in Organizational BehaviorKey Elements in Organizational Behavior
Organization
People
TechnologyStructure
Environment
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Lecture Notes: Introduction 43
THE RELATIONSHIP OF OB TO OTHERTHE RELATIONSHIP OF OB TO OTHER
CLOSELY RELATED DISCIPLINESCLOSELY RELATED DISCIPLINES
THEORETICALOT
(Organization Theory)
OB
(Organizational
Behavior)
APPLIED
OD
(Organizational
Development)
P/HR
(Personal/
Human Resources)
MACRO MICRO
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Lecture Notes: Introduction 44
MANAGERIAL USE OF OBMANAGERIAL USE OF OB
Managerial
Systems
Manage
Organizational
Behavior
Better
People/
organization
relationship
Human
objectives
Organizational
objectives
Social
objectives
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Lecture Notes: Introduction 45
A MODEL of OBA MODEL of OB
Managements
-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
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Lecture Notes: Introduction 46
The Psychological ContractThe Psychological Contract
An unwritten agreement that defines the conditions of an employees 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
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Lecture Notes: Introduction 47
THE PSYCHOLOGICAL CONTRACT ANDTHE PSYCHOLOGICAL CONTRACT AND
THE ECONOMIC CONTRACTTHE ECONOMIC CONTRACT
Employee Employer
Psychological
Contract
Economic
Contract
Employee:
If expectations are met:
High job satisfaction
High performance
Continuance with organization
If not met:
Low job satisfaction
Low performance
Possible separation
Employer:If expectations are met:
Employee retention
Possible promotion
If not met:
Corrective action
Possible separation
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Lecture Notes: Introduction 48
VarVariiablesables Influencing Individual BehaviorInfluencing Individual Behavior
The PERSON
Skills
Abilities
Personalities
Perceptions
Attitudes
Values
Ethics
The ENVIRONMENT
Organization
Work group
Job
Personal life
BEHAVIOR
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Lecture Notes: Introduction 49
OB AS AOB AS ACONTINGENCY MODELCONTINGENCY MODEL
ORGANIZATION BEHAVIOR
An Introduction !
UNIVERSAL/CONTINGENCY VIEW
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Lecture Notes: Introduction 50
UNIVERSAL
VIEW:
UNIVERSAL
VIEW:
Same managerial
principles apply
to every
situation
Same managerial
principles apply
to every
situation
CONTINGENCY VIEW:
Appropriate managerial
action depends on the
situation
CONTINGENCY VIEW:
Appropriate managerial
action depends on the
situation
UNIVERSAL/CONTINGENCY VIEW
Situation
1
Situation
1
Situation
3
Situation
3
Situation
2
Situation
2
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Lecture Notes: Introduction 51
There Are Few Absolutes in OB
Contingency
Variablesx y
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Lecture Notes: Introduction 52
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
. Independent Variables
2. Moderating Variables
In Order to Explain Behavior Y
2
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Lecture Notes: Introduction 53
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 THEDETERMINANTS OF
PRODUCTIVITY
ABSENTEEISM
TURNOVER
JOB SATISFACTION
CITIZENSHIP
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Lecture Notes: Introduction 54
The Dependent Variables
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Lecture Notes: Introduction 55
The Dependent Variables (contd)
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Lecture Notes: Introduction 56
The Dependent Variables (contd)
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Lecture Notes: Introduction 57
The Dependent Variables (contd)
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Prentice Hall, 2001 Chapter 1 58
Independent VariablesIndependent Variables
Individual 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 Practices
THESE ARE THE VARIABLES THAT MUST BE MANAGED IN ORDER TO ACHIEVE
ACCEPTABLE DEPENDENT VARIABLE LEVELS
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Lecture Notes: Introduction 59
Old Versus New Manager ProfileOld Versus New Manager ProfileOld Versus New Manager ProfileOld Versus New Manager Profile
Which kind are you?
OLD MANAGER
Thinks of self as a managers or boss
Follows the chain of command
Works within a set organizationalstructure
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, teamleader or internal consultant
Deals with anyone necessary to get
the job done
Changes the organizational structurein response to market changes
Invites others to join in decisionmaking
Shares information
Tries to master a broad array ofmanagerial disciplines
Demands results
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Traditional StudentsVersus 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 Gamevv Internalizes concepts to be successfulInternalizes concepts to be successful
vv Critically evaluates ideas and testCritically evaluates ideas and testvalidityvalidity
vv Uses assignments to practice andUses assignments to practice andimprove skillsimprove skills
vv Sees course as opportunity to enhanceSees course as opportunity to enhancesuccesssuccess
vv Views assignments as opportunity toViews assignments as opportunity to
get feedback on personalget feedback on personaldevelopmentdevelopment
vv Goal: Skill MasteryGoal: Skill Mastery
vv Aware of traditional rolesAware of traditional roles--but addsbut addscoach, counselor, and facilitatorcoach, counselor, and facilitator
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Lecture Notes: Introduction 61
SUMMARY & CONCLUSION
WHAT ARE SOME CONCLUDING
STATEMENTS YOU CAN MAKE
CONCERNINGTHE IMPORTANCE OF OB?
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Lecture Notes: Introduction 62
YOU BE THE CONSULTANT
AS 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 ITS ALL JUST
COMMON SENSE?
3. WHAT BENEFITS TO THE COMPANY WOULD YOU TELL YOUR BOSS HEMIGHT SEE AS A RESULT OF IMPLEMENTING SOME OF THE
PRINCIPLES AND PRACTICES INCLUDED IN THIS COURSE ?