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Chapter   ONE


              What is
            Organizational
             Behavior?
O B J E C T I V E S   After studying this chapter, you should
                      be able to:
                       1. Describe what managers do.
                       2. Define organizational behavior (OB).
                       3. Explain the value of the systematic study
                          of OB.
L E A R N I N G




                       4. Identify the contributions made by major
                          behavioral science disciplines to OB.
                       5. List the major challenges and
                          opportunities for managers to use OB
                          concepts.
What Managers Do
          What Managers Do
Managers (or administrators)
Individuals who achieve goals through other people.



                       Managerial Activities
                        Managerial Activities
                       ••Make decisions
                         Make decisions
                       ••Allocate resources
                          Allocate resources
                       ••Direct activities of others
                          Direct activities of others
                         to attain goals
                          to attain goals
Where Managers Work
       Where Managers Work
Organization
A consciously coordinated social unit,
composed of two or more people, that
functions on a relatively continuous basis
to achieve a common goal or set of
goals.
Management Functions
  Management Functions

 Planning
 Planning                  Organizing
                           Organizing

              Management
              Management
               Functions
               Functions

Controlling
Controlling                 Leading
                            Leading
Management Functions (cont’d)
Management Functions (cont’d)
Planning
A process that includes defining goals,
establishing strategy, and developing
plans to coordinate activities.
Management Functions (cont’d)
Management Functions (cont’d)
Organizing
Determining what tasks are to be done,
who is to do them, how the tasks are to be
grouped, who reports to whom, and where
decisions are to be made.
Management Functions (cont’d)
   Management Functions (cont’d)
Leading
A function that includes motivating employees, directing
others, selecting the most effective communication
channels, and resolving conflicts.
Management Functions (cont’d)
Management Functions (cont’d)
Controlling
Monitoring activities to ensure they are being
accomplished as planned and correcting any
significant deviations.
Mintzberg’s Managerial Roles
       Mintzberg’s Managerial Roles




Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973   E X H I B I T 1–1
                                                                                        E X H I B I T 1–1
by H. Mintzberg. Reprinted by permission of Pearson Education.
Mintzberg’s Managerial Roles (cont’d)
    Mintzberg’s Managerial Roles (cont’d)




Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973   E X H I B I T 1–1 (cont’d)
                                                                                        E X H I B I T 1–1 (cont’d)
by H. Mintzberg. Reprinted by permission of Pearson Education.
Mintzberg’s Managerial Roles (cont’d)
    Mintzberg’s Managerial Roles (cont’d)




Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973   E X H I B I T 1–1 (cont’d)
                                                                                        E X H I B I T 1–1 (cont’d)
by H. Mintzberg. Reprinted by permission of Pearson Education.
Management Skills
             Management Skills
Technical skills
The ability to apply specialized
knowledge or expertise.


Human skills
The ability to work with, understand,
and motivate other people, both
individually and in groups.

Conceptual Skills
The mental ability to analyze and
diagnose complex situations.
Effective Versus Successful Managerial
 Effective Versus Successful Managerial
           Activities (Luthans)
           Activities (Luthans)
1. Traditional management
 1. Traditional management
   • •Decision making, planning, and controlling
       Decision making, planning, and controlling
2. Communication
 2. Communication
   • •Exchanging routine information and processing
       Exchanging routine information and processing
      paperwork
       paperwork
3. Human resource management
 3. Human resource management
   • •Motivating, disciplining, managing conflict, staffing,
       Motivating, disciplining, managing conflict, staffing,
      and training
       and training
4. Networking
 4. Networking
   • •Socializing, politicking, and interacting with others
       Socializing, politicking, and interacting with others
Allocation of Activities by Time
Allocation of Activities by Time
Enter Organizational Behavior
Enter Organizational Behavior
  Organizational behavior (OB)

 A field of study that investigates the
 impact that individuals, groups, and
  structure have on behavior within
   organizations, for the purpose of
   applying such knowledge toward
     improving an organization’s
             effectiveness.
Complementing Intuition with
     Complementing Intuition with
          Systematic Study
          Systematic Study
Intuition
“Gut” feelings about “why I do what I do” and “what
makes others tick”.



Systematic study
Looking at relationships, attempting to attribute
causes and effects, and drawing conclusions based
on scientific evidence.
Provides a means to predict behaviors.
Introduction of Organization Behavior
Contributing Disciplines to the OB Field
 Psychology
 The science that seeks to measure, explain, and sometimes
 change the behavior of humans and other animals.




                                                   E X H I B I T 1–3 (cont’d)
                                                    E X H I B I T 1–3 (cont’d)
Contributing Disciplines to the OB Field
               (cont’d)
 Sociology
 The study of people in relation to their fellow human beings.




                                                       E X H I B I T 1–3 (cont’d)
                                                        E X H I B I T 1–3 (cont’d)
Contributing Disciplines to the OB
          Field (cont’d)
Social Psychology
An area within psychology that blends concepts from psychology
and sociology and that focuses on the influence of people on one
another.




                                                    E X H I B I T 1–3 (cont’d)
                                                     E X H I B I T 1–3 (cont’d)
Contributing Disciplines to the OB
          Field (cont’d)
Anthropology
The study of societies to learn about human beings and their
activities.




                                                    E X H I B I T 1–3 (cont’d)
                                                     E X H I B I T 1–3 (cont’d)
There Are Few Absolutes in OB
  Contingency variables: "It
  Depends!!!"
  Situational factors that make the main
  relationship between two variables change---
  e.g., the relationship may hold for one
  condition but not another.

In Country 1
               x       May be related to
                                                 y
In Country 2
               x     May NOT be related to       y
Challenges and Opportunities for OB

• Responding to Globalization
  – Increased foreign assignments
  – Working with people from different cultures
  – Coping with anti-capitalism backlash
  – Overseeing movement of jobs to countries with low-
    cost labor
  – Managing people during the war on terror.
• Managing Workforce Diversity
  – Embracing diversity
  – Changing U.S. demographics
  – Implications for managers
      • Recognizing and responding to differences
Major Workforce Diversity Categories

Gender
Gender
                                   National
                                   National
         Disability
         Disability                 Origin
                                    Origin
                       Age
                       Age
                                   Non-Christian
                                   Non-Christian
                Race
                Race
                       Domestic
                       Domestic
                       Partners
                        Partners

                                              E X H I B I T 1–4
                                               E X H I B I T 1–4
Challenges and Opportunities for OB
              (cont’d)
• Improving Quality and Productivity
   – Quality management (QM)
   – Process reengineering
• Responding to the Labor Shortage
   – Changing work force demographics
   – Fewer skilled laborers
   – Early retirements and older workers
• Improving Customer Service
   – Increased expectation of service quality
   – Customer-responsive cultures
What Is Quality Management?

1. Intense focus on the customer.
2. Concern for continuous improvement.
3. Improvement in the quality of everything
   the organization does.
4. Accurate measurement.
5. Empowerment of employees.
                                         E X H I B I T 1–6
                                          E X H I B I T 1–6
Challenges and Opportunity for
             OB (cont’d)
• Improving People Skills
• Empowering People
• Stimulating Innovation and Change
• Coping with “Temporariness”
• Working in Networked Organizations
• Helping Employees Balance Work/Life
  Conflicts
• Improving Ethical Behavior
• Managing People during the War on
  Terrorism
A Downside to Empowerment?
Basic OB Model, Stage I
Model
An abstraction of reality.
A simplified representation
of some real-world
phenomenon.




                               E X H I B I T 1-6
                                E X H I B I T 1-6
The Dependent Variables
Dependent variable
A response that is affected by an independent variable (what
organizational behavior researchers try to understand).
                    y


                                                 x
The Dependent Variables (cont’d)
Productivity
A performance measure that includes
effectiveness and efficiency.


                             Effectiveness
                             Achievement of goals.

                             Efficiency
                             Meeting goals at a low
                             cost.
The Dependent Variables (cont’d)

Absenteeism
The failure to report to work.



                                 Turnover
                                 The voluntary and
                                 involuntary permanent
                                 withdrawal from an
                                 organization.
The Dependent Variables (cont’d)

Deviant Workplace Behavior
Voluntary behavior that violates
significant organizational norms and
thereby threatens the well-being of
the organization and/or any of its
members.
The Dependent Variables (cont’d)
Organizational citizenship
behavior (OCB)
Discretionary behavior that is not
part of an employee’s formal job
requirements, but that nevertheless
promotes the effective functioning of
the organization.
The Dependent Variables (cont’d)
Job satisfaction
A general attitude (not a behavior) toward one’s job; a
positive feeling of one's job resulting from an
evaluation of its characteristics.
The Independent Variables
Independent variable
The presumed cause of some change in the dependent
variable; major determinants of a dependent variable.

                          Independent
                           Independent
                        Variables Can Be
                        Variables Can Be



    Individual-Level       Group-Level      Organization
                                             Organization
     Individual-Level      Group-Level      System-Level
        Variables
        Variables           Variables
                             Variables      System-Level
                                              Variables
                                              Variables
Basic OB
 Model,
Stage II


 E X H I B I T 1-7
  E X H I B I T 1-7

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Introduction of Organization Behavior

  • 1. Chapter ONE What is Organizational Behavior?
  • 2. O B J E C T I V E S After studying this chapter, you should be able to: 1. Describe what managers do. 2. Define organizational behavior (OB). 3. Explain the value of the systematic study of OB. L E A R N I N G 4. Identify the contributions made by major behavioral science disciplines to OB. 5. List the major challenges and opportunities for managers to use OB concepts.
  • 3. What Managers Do What Managers Do Managers (or administrators) Individuals who achieve goals through other people. Managerial Activities Managerial Activities ••Make decisions Make decisions ••Allocate resources Allocate resources ••Direct activities of others Direct activities of others to attain goals to attain goals
  • 4. Where Managers Work Where Managers Work Organization A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.
  • 5. Management Functions Management Functions Planning Planning Organizing Organizing Management Management Functions Functions Controlling Controlling Leading Leading
  • 6. Management Functions (cont’d) Management Functions (cont’d) Planning A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.
  • 7. Management Functions (cont’d) Management Functions (cont’d) Organizing Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.
  • 8. Management Functions (cont’d) Management Functions (cont’d) Leading A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.
  • 9. Management Functions (cont’d) Management Functions (cont’d) Controlling Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.
  • 10. Mintzberg’s Managerial Roles Mintzberg’s Managerial Roles Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 E X H I B I T 1–1 E X H I B I T 1–1 by H. Mintzberg. Reprinted by permission of Pearson Education.
  • 11. Mintzberg’s Managerial Roles (cont’d) Mintzberg’s Managerial Roles (cont’d) Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 E X H I B I T 1–1 (cont’d) E X H I B I T 1–1 (cont’d) by H. Mintzberg. Reprinted by permission of Pearson Education.
  • 12. Mintzberg’s Managerial Roles (cont’d) Mintzberg’s Managerial Roles (cont’d) Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 E X H I B I T 1–1 (cont’d) E X H I B I T 1–1 (cont’d) by H. Mintzberg. Reprinted by permission of Pearson Education.
  • 13. Management Skills Management Skills Technical skills The ability to apply specialized knowledge or expertise. Human skills The ability to work with, understand, and motivate other people, both individually and in groups. Conceptual Skills The mental ability to analyze and diagnose complex situations.
  • 14. Effective Versus Successful Managerial Effective Versus Successful Managerial Activities (Luthans) Activities (Luthans) 1. Traditional management 1. Traditional management • •Decision making, planning, and controlling Decision making, planning, and controlling 2. Communication 2. Communication • •Exchanging routine information and processing Exchanging routine information and processing paperwork paperwork 3. Human resource management 3. Human resource management • •Motivating, disciplining, managing conflict, staffing, Motivating, disciplining, managing conflict, staffing, and training and training 4. Networking 4. Networking • •Socializing, politicking, and interacting with others Socializing, politicking, and interacting with others
  • 15. Allocation of Activities by Time Allocation of Activities by Time
  • 16. Enter Organizational Behavior Enter Organizational Behavior Organizational behavior (OB) A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.
  • 17. Complementing Intuition with Complementing Intuition with Systematic Study Systematic Study Intuition “Gut” feelings about “why I do what I do” and “what makes others tick”. Systematic study Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence. Provides a means to predict behaviors.
  • 19. Contributing Disciplines to the OB Field Psychology The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals. E X H I B I T 1–3 (cont’d) E X H I B I T 1–3 (cont’d)
  • 20. Contributing Disciplines to the OB Field (cont’d) Sociology The study of people in relation to their fellow human beings. E X H I B I T 1–3 (cont’d) E X H I B I T 1–3 (cont’d)
  • 21. Contributing Disciplines to the OB Field (cont’d) Social Psychology An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another. E X H I B I T 1–3 (cont’d) E X H I B I T 1–3 (cont’d)
  • 22. Contributing Disciplines to the OB Field (cont’d) Anthropology The study of societies to learn about human beings and their activities. E X H I B I T 1–3 (cont’d) E X H I B I T 1–3 (cont’d)
  • 23. There Are Few Absolutes in OB Contingency variables: "It Depends!!!" Situational factors that make the main relationship between two variables change--- e.g., the relationship may hold for one condition but not another. In Country 1 x May be related to y In Country 2 x May NOT be related to y
  • 24. Challenges and Opportunities for OB • Responding to Globalization – Increased foreign assignments – Working with people from different cultures – Coping with anti-capitalism backlash – Overseeing movement of jobs to countries with low- cost labor – Managing people during the war on terror. • Managing Workforce Diversity – Embracing diversity – Changing U.S. demographics – Implications for managers • Recognizing and responding to differences
  • 25. Major Workforce Diversity Categories Gender Gender National National Disability Disability Origin Origin Age Age Non-Christian Non-Christian Race Race Domestic Domestic Partners Partners E X H I B I T 1–4 E X H I B I T 1–4
  • 26. Challenges and Opportunities for OB (cont’d) • Improving Quality and Productivity – Quality management (QM) – Process reengineering • Responding to the Labor Shortage – Changing work force demographics – Fewer skilled laborers – Early retirements and older workers • Improving Customer Service – Increased expectation of service quality – Customer-responsive cultures
  • 27. What Is Quality Management? 1. Intense focus on the customer. 2. Concern for continuous improvement. 3. Improvement in the quality of everything the organization does. 4. Accurate measurement. 5. Empowerment of employees. E X H I B I T 1–6 E X H I B I T 1–6
  • 28. Challenges and Opportunity for OB (cont’d) • Improving People Skills • Empowering People • Stimulating Innovation and Change • Coping with “Temporariness” • Working in Networked Organizations • Helping Employees Balance Work/Life Conflicts • Improving Ethical Behavior • Managing People during the War on Terrorism
  • 29. A Downside to Empowerment?
  • 30. Basic OB Model, Stage I Model An abstraction of reality. A simplified representation of some real-world phenomenon. E X H I B I T 1-6 E X H I B I T 1-6
  • 31. The Dependent Variables Dependent variable A response that is affected by an independent variable (what organizational behavior researchers try to understand). y x
  • 32. The Dependent Variables (cont’d) Productivity A performance measure that includes effectiveness and efficiency. Effectiveness Achievement of goals. Efficiency Meeting goals at a low cost.
  • 33. The Dependent Variables (cont’d) Absenteeism The failure to report to work. Turnover The voluntary and involuntary permanent withdrawal from an organization.
  • 34. The Dependent Variables (cont’d) Deviant Workplace Behavior Voluntary behavior that violates significant organizational norms and thereby threatens the well-being of the organization and/or any of its members.
  • 35. The Dependent Variables (cont’d) Organizational citizenship behavior (OCB) Discretionary behavior that is not part of an employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization.
  • 36. The Dependent Variables (cont’d) Job satisfaction A general attitude (not a behavior) toward one’s job; a positive feeling of one's job resulting from an evaluation of its characteristics.
  • 37. The Independent Variables Independent variable The presumed cause of some change in the dependent variable; major determinants of a dependent variable. Independent Independent Variables Can Be Variables Can Be Individual-Level Group-Level Organization Organization Individual-Level Group-Level System-Level Variables Variables Variables Variables System-Level Variables Variables
  • 38. Basic OB Model, Stage II E X H I B I T 1-7 E X H I B I T 1-7