Chapter 1.Introduction to Organizational behavior
- 1. 1 Introduction to the Field of Organizational Behavior McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 1
- 2. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 2 Quicken Loans Quicken Loans has become one of America’s most successful companies through high involvement, a focus on creativity, a strong culture, and other effective organizational behavior practices. McShane/Von Glinow OB 7e
- 3. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 3 Organizational Behavior and Organizations Organizational behavior The study of what people think, feel, and do in and around organizations Organizations Groups of people who work interdependently toward some purpose Collective entities Collective sense of purpose McShane/Von Glinow OB 7e
- 4. 4 Why Study OB? Satisfy the need to understand and predict Helps us to test/improve personal theories Influence behavior – get things done OB improves an organization’s financial health OB is for everyone McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
- 5. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 5 McShane/Von Glinow OB 7e
- 6. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 6 Developments Facing Organization Technological Change Globalization Emerging Employment Relationships Increasing Workforce Diversity McShane/Von Glinow OB 7e
- 7. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 7 Organizational Effectiveness The ultimate dependent variable in OB Old approach – achieving stated goals Problem with goal attainment Could set easy goals Company might achieve wrong goals McShane/Von Glinow OB 7e
- 8. 8 Four Perspectives of Organizational Effectiveness © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. McShane/Von Glinow OB 7e Stakeholder Perspective High-Performance WP Perspective Organizational Learning Perspective Open Systems Perspective NOTE: Need to consider all four perspectives when assessing a company’s effectiveness
- 9. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. Open Systems Perspective Organizations are complex systems that “live” within, and depend on, the external environment Effective organizations Maintain a close “fit” with changing conditions Transform inputs to outputs efficiently and flexibly Foundation for the other three organizational effectiveness perspectives McShane/Von Glinow OB 7e 9
- 10. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 10 •Products/services •Shareholder dividends •Community support •Waste/pollution Technological subsystem Marketing / Sales subsystem Production subsystem Cultural subsystem subsystem s u b s y s t e m P u r c h a s i n g s u b s y s t e m Engineerin g subsystem Accountin g subsystem s u b s y s t e m Socialization subsystem s u b s y s t e m •Raw materials •Human resources •Information •Finances •Equipment Feedback Feedback subsyste m subsyste m subsyste m Managerial subsystem Transforming inputs to outputs Open Systems Perspective McShane/Von Glinow OB 7e External Environment
- 11. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 11 Organizational Learning Perspective An organization’s capacity to acquire, share, use, and store valuable knowledge Need to consider both stock and flow of knowledge Stock: intellectual capital Flow: org learning processes of acquisition, sharing, use, and storage McShane/Von Glinow OB 7e
- 12. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 12 Adapt to the environment. Influence to the environment. Move to a more favorable environment McShane/Von Glinow OB 7e
- 13. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 13 Intellectual Capital McShane/Von Glinow OB 7e Relationship Capital Value derived from satisfied customers, reliable suppliers, etc. Structural Capital Knowledge captured in systems and structures Human Capital Knowledge that people possess and generate
- 14. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 14 McShane/Von Glinow OB 7e
- 15. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 15 Organizational Learning Processes McShane/Von Glinow OB 7e
- 16. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 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 McShane/Von Glinow OB 7e 16
- 17. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. High-Performance Work Practices Workplace practices that leverage the potential of human capital Four HPWPs (likely others) 1. Employee involvement 2. Job autonomy 3. Develop competencies (training, selection) 4. Performance-based rewards Need to “bundle” them – work best together McShane/Von Glinow OB 7e 17
- 18. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 18 Corporate Social Responsibility at MTN At MTN Group, Africa’s largest mobile (cell) phone company, employees help the community and environment through the company’s award-winning “21 Days of Y’ello Care” program. This photo shows MTN employees painting schools during a recent Y’ello Care event. McShane/Von Glinow OB 7e
- 19. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 19 Stakeholder Perspective Stakeholders: entities who affect or are affected by the firm’s objectives and actions Personalizes the open systems perspective Challenges with stakeholder perspective: Stakeholders have conflicting interests Firms have limited resources to satisfy all stakeholder needs McShane/Von Glinow OB 7e
- 20. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 20 Stakeholders: Values and Ethics Values and ethics prioritize stakeholder interests Values Stable, evaluative beliefs, guide preferences for outcomes or courses of action in various situations Ethics Moral principles/values, determine whether actions are right/wrong and outcomes are good or bad McShane/Von Glinow OB 7e
- 21. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 21 Stakeholders and CSR Stakeholder perspective includes corporate social responsibility (CSR) Benefit society and environment beyond the firm’s immediate financial interests or legal obligations Organization’s contract with society Triple bottom line Economy, society, environment McShane/Von Glinow OB 7e
- 22. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. Globalization Economic, social, and cultural connectivity with people in other parts of the world Due to better communication and transportation systems Effects of globalization on organizations Larger markets, lower costs, more innovation Increasing diversity Increasing work intensification, less work-life balance (24/7 schedule) McShane/Von Glinow OB 7e 22
- 23. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 23 Increasing Workforce Diversity Surface-level vs deep-level diversity Implications Better knowledge, decisions, representation, financial returns Manage challenges of diversity (e.g. teams, conflict) Ethical imperative of diversity McShane/Von Glinow OB 7e
- 24. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. Emerging Employment Relationships Work/life balance Minimizing conflict between work and nonwork demands Virtual work Using information technology to perform one’s job away from the traditional physical workplace Telecommuting – issues of social isolation, emphasis on face time, employee self-motivated McShane/Von Glinow OB 7e 24
- 25. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. Organizational Behavior Anchors Systematic research anchor OB knowledge is built on systematic research Evidence-based management – rely on research evidence, not fads, untested assumptions Multidisciplinary anchor Many OB concepts adopted from other disciplines OB develops its own theories, but scans other fields McShane/Von Glinow OB 7e 25
- 26. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. Organizational Behavior Anchors (con’t) Contingency anchor A particular action may have different consequences in different situations Need to diagnose the situation and select best strategy under those conditions Multiple levels of analysis anchor Individual, team, organizational level of analysis OB topics usually relevant at all three levels of analysis McShane/Von Glinow OB 7e 26
- 27. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 27 McShane/Von Glinow OB 7e
- 28. © 2015 by McGraw-Hill Education. This is proprietary material solely for au thorized instructor use. Not authorized for sale or distribution in any mann er. This document may not be copied, scanned, duplicated, forwarded, dist ributed, or posted on a website, in whole or part. 28 The Journey Begins.. This chapter gives you some background about the field of organizational behavior. But it’s only the beginning of our journey. Finally, we shift our focus to the organizational level of analysis, where the topics of organizational structure, organizational culture, and organizational change are examined in detail. McShane/Von Glinow OB 7e
- 29. 1 Introduction to the Field of Organizational Behavior McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 29
Editor's Notes
- #6: Globalization refers to economic, social, and cultural connectivity with people in other parts of the world.
- #12: Effective organizations closely and continuously monitor the environment for emerging conditions that pose a threat or opportunity. Then they reconfigure their internal subsystems to align more closely with that shifting environment. Effective organizations don’t merely respond to emerging conditions; they actively try to influence their environment. For instance, businesses rely on marketing to increase demand for their products or services. Some firms gain exclusive rights to particular resources (e.g., sole provider of a popular brand) or restrict competitor access to valued resources. Sometimes the current environment becomes so challenging that organizations cannot adapt or influence it enough to survive. For instance, the current environment might have extreme resource scarcity, too many competitors, too little demand for the firm’s products, or onerous rules that make the transformation process too demanding or expensive
- #27: As Exhibit 1.7 illustrates, individual inputs and processes influence individual outcomes, which in turn have a direct effect on the organization’s effectiveness. For example, how well organizations transform inputs to outputs and satisfy key stakeholders is dependent on how well employees perform their jobs and make logical and creative decisions.