Prepared by Charlie CookPrepared by Charlie CookThe University of West AlabamaThe University of West Alabama

© 2012 South-Western, a part of Cengage Learning© 2012 South-Western, a part of Cengage LearningAll rights reserved.All rights reserved.

An Overview of An Overview of Organizational Organizational BehaviorBehavior

Chapter 1Chapter 1

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After studying this chapter you should be able to:1. Define organizational behavior.

2. Identify the functions that comprise the management process and relate them to organizational behavior.

3. Relate organizational behavior to basic managerial roles and skills.

4. Describe contemporary organizational behavior.

5. Discuss contextual perspectives on organizational behavior.

6. Describe the role of organizational behavior in managing for effectiveness

Chapter Learning Objectives

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What is Organizational Behavior?

• Organizational behavior (OB) is the study of: –Human behavior in organizational settings

–The interface between human behavior and the organization

–The organization itself

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1.1 The Nature of Organizational Behavior

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The Importance of Organizational Behavior

• Organizations can have a powerful influence on our lives:–Most people are born and educated in organizations

–Most people acquire most of their material possessions from organizations

–Most people die as members of organizations

–Many of our activities are regulated by governmental organizations

–Most people spend most of their lives in organizations

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Why Study OB?

• Studying organizational behavior can clarify factors that affect how managers manage by:–Describing the complex human context of

organizations

–Defining the associated opportunities, problems, challenges, and issues

–Isolating important aspects of the manager’s job

–Offering specific perspectives on the human side of management

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Why Study OB? (cont’d)

• Studying OB helps managers understand:–The behaviors of others in the organization

• Personal needs, motives, behaviors, feelings and career dynamics

• Attitudinal processes, individual differences, group dynamics, inter group dynamics, organization culture, power, and political behavior

–Interactions with people outside of the organization and other organizations

–The environment, technology, and global issues

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Organizational Behavior and the Management Process

• Management Functions–Planning–Organizing–Leading–Controlling

• Resources Used by Managers–Human–Financial–Physical–Information

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Functions of Management

Monitoring and correcting the actions of the organization and its members to keep them directed toward their goals

Controlling

Getting organizational members to work together toward the organization’s goals

Leading

Designing jobs, grouping jobs into units, and establishing patterns of authority between jobs and units

Organizing

Determining an organization’s desired future position and the best means of getting there

Planning

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1.2 Basic Managerial Functions

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Organizational Behavior and the Manager’s Job

Interpersonal Informational Decision-Making

Basic Managerial Roles

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1.1 Important Managerial Roles

Coordinate activities of two committeesLiaisonEncourage workers to increase productivityLeader

Settle new labor contractNegotiatorAllocate budget requestsResource allocatorResolve disputeDisturbance handler

Develop idea for new product and convince others of its merit

EntrepreneurDecision Making

ExampleRoleCategory

Hold press conference to announce new plantSend out memos outlining new policies

Scan business publications for information about competition

Attend employee retirement ceremony

SpokespersonDisseminator

MonitorInformational

FigureheadInterpersonal

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Critical Managerial Skills

Skills to understand cause-effect relationships and to recognize optimal solutions to problems

Diagnostic

Skills used in abstract thinkingConceptual

Skills used to communicate with, understand, and motivate individuals and groups

Interpersonal

Skills necessary to accomplish specific tasks within the organization

Technical

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1.3 Managerial Skills at Different Organizational Levels

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Contemporary Organizational Behavior

• Characteristics of the Field– Interdisciplinary in focus

– Descriptive in nature

• Basic Concepts of the Field1. Individual processes

2. Interpersonal processes

3. Organizational processes/characteristics

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1.4The Framework for Understanding Organizational Behavior

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Contemporary Organizational Behavior

Contextual Perspectives on Organizational

Behavior

Systems Perspective

Situational Perspective

Contingency

Interactional

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The Systems Perspective

• System–An interrelated set of elements that function as a

whole—inputs are combined/transformed by managers into outputs from the system

• Value of the Systems Perspective–Underscores the importance of an organization’s

environment–Conceptualizes the flow and interaction of various

elements of the organization.

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The Situational Perspective

• The Situational Perspective–Recognizes that most organizational situations and

outcomes are influenced by other variables

• The Universal Model–Presumes a direct cause-and-effect linkage between

variables–Complexities of human behavior and organizational

settings make universal conclusions virtually impossible

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1.5 The Systems Approach to Organizations

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1.6 Universal Versus Situational Approach

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Interactionalism: People and Situations

• Interactionalist Perspective–Focuses on how individuals and situations interact

continuously to determine individuals’ behavior

–Attempts to explain how people select, interpret, and change various situations.

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1.7 The Interactionalist Perspective on Behavior in Organizations

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Managing for Effectiveness

• Managers work toward accomplishing the various goals (outcomes) that exist at specific levels in an organization:–Individual-level outcomes

–Group-level outcomes

–Organizational-level outcomes

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1.8 Managing for Effectiveness

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Organizational Behavior in Action

• Based on your reading of the chapter opening case:–What is employee turnover so low at Wegmans?

–Which basic managerial roles and skills is Danny Wegman using to show his employees that the organization really cares about them?

–Why haven’t competitors adopted the Wegmans’ employee-focused strategy?