Introduction & Overview Presentation 2010
- 1. WELCOME TO ORGANIZATION BEHAVIOR THE UNIVERSAL MANAGEMENT COURSE TAKEN BY MANAGEMENT STUDENTS ALL OVER THE WORLD ! MAN 262 - SECTION 4 INSTRUCTOR Dr. Fred J. Woolley
- 2. INTRODUCTION & OVERVIEW ORGANIZATION BEHAVIOR REVIEW OF MANAGEMENT CONCEPTS
- 3. THE REVOLUTION OF THE 20 th CENTURY FROM 1900 Rural Stationary Self-Sufficient Isolated Active TO 2000 Urban Mobile Dependent Connected Inactive FEW ORGANIZATIONS ORGANIZATIONS ARE EVERTHING
- 4. THE ORGANIZATION PARADIGM SHIFT TRADITIONAL HIERARCHIES FROM Dependence Attendance Obedience Impersonal FLEXIBLE NETWORKS OF TEAMS TO Interdependence Commitment Involvement Personal
- 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. C OMMUNICATION TECHNOLOGY: Instant Flexible in terms of groups and tasks Flattens the organization Empowerment
- 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 !!!
- 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 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
- 8. THE 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 Times MORE EFFECTIVE THAN ALL OTHER FACTORS COMBINED !!!
- 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
- 10. MANAGEMENT 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
- 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 (Org’l Rank) 3. TECHNOLOGY 4. SERVICES 5. FAMILY 6. RELIGION ? ? DO ORGANIZATIONS SHAPE OUR LIVES?
- 12. MANAGEMENT PROCESSES ORGANIZATION BEHAVIOR REVIEW OF MANAGEMENT CONCEPTS
- 13. Organizing Planning Controlling Leading The Functions of Management
- 14. A BASIC MANAGEMENT MODEL Planning Organizing Leading Controlling Individuals Groups Organizations Production Satisfaction Efficiency Adaptiveness Development Survival (The Process Model) TO ACHIEVE: FEEDBACK MANAGEMENT PERFORMS THESE FUNCTIONS : TO COORDINATE THE BEHAVIOR OF :
- 15. MODERN MANAGEMENT: A COMPOSITE OF MODELS THE PROCESS MODEL EFFECTIVE MODERN MANAGEMENT THE SYSTEMS MODEL THE CONTINGENCY MODEL
- 16. MANAGEMENT SKILLS ORGANIZATION BEHAVIOR REVIEW OF MANAGEMENT CONCEPTS
- 17. The Skills That Managers Need Technical Inter- Personal Conceptual
- 18. SKILLS IMPORTANT AT EACH MANAGEMENT LEVEL Interpersonal Sk i lls Technical Skills Conceptual Skills Middle Management Top Management First-line Management
- 19. Motivating Managing * Change * Stress * Conflict Information Operations Behaviour Financial Strategic Operational Budgets Programs Human Resources ETC. Structure Procedures Job Allocatlions Relation-Ship ETC. Co-Ordinating Delegating Developing Training Orienting Selecting Human Resources Controlling Management Leading Organizing Planning Problem Solving Management Institutional Communicating Core Skills People Ideas Things Decision Making THE MANAGEMENT PROCESS Dr. F.J. Woolley
- 20. THE MANAGER DEVELOPMENT PROCESS Management SKILLS Core Administrative Interpersonal Personal Conceptual A Positive High Performance Goal Achieving ENVIRONMENT INPUT PROCESS OUTPUT TRAINING & EXPERIENCE Organizational Goals Characteristics Managing People Managing Work
- 21. Subsystems Boundary Spanning Production, Maintenance, Adaptation, Management Boundary Spanning Products and Services AN OPEN SYSTEM & SUB-SYSTEMS Output Input Transformation Process Transformation Process Raw Materials: People Information Finance Consumables
- 22. Informational Interpersonal Decisional The Roles of Management
- 23. Managerial Activities Traditional Management Networking Communication Managing Human Resources
- 24. Empowering the Workforce Managers Are Giving Up Controls Workers Are Accepting Responsibility
- 25. WE WILL BE REFERING TO THESE CRITICAL CONCEPTS ALL THROUGHOUT THIS OB COURSE !!! THIS COURSE IS ABOUT MANAGING ORGANIZATION BEHAVIOR, NOT JUST “WHAT IS” ORGANIZATION BEHAVIOR ! 2
- 26. So, What is Organizational Behavior? ORGANIZATION BEHAVIOR An Introduction !
- 27. Human Behavior in Organizations A study of human behavior & group dynamics OB focuses on the psycho-social, interpersonal, and behavioral dynamics in organizations SUCCESSFUL MANAGERS ARE GOOD BEHAVIORAL SCIENTISTS !! 2
- 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
- 29. ORGANIZATION BEHAVIOR PROVIDES 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
- 30. Understanding Organizational Behavior Individual Differences Fundamental Consistencies Intuition Systematic Study
- 31. Levels of OB Analysis Individuals Groups Structures
- 32. Overview of the OB Model Individual Level Group Level Organization Systems Level Level III Level II Level I Time
- 33. EFFECTIVENESS IS A CENTRAL CONCERN OF O.B. GROUP EFFECTIVENESS ORGANIZATIONAL EFFECTIVENESS INDIVIDUAL EFFECTIVENESS CAUSES Ability Skill Knowledge Attitude Motivation Stress GROUP EFFECTIVENESS CAUSES Leadership Structure Cohesiveness Status Roles Norms ORGANIZATIONAL EFFECTIVENESS CAUSES Environment Technology Strategies Structure Processes Culture
- 34. IN OB WE STUDY…. INDIVIDUALS PERSONALITY ABILITY VALUES ATTITUDES PERCEPTION EMOTIONS MOTIVATION FAIRNESS RELATIONSHIPS GROUPS : DYNAMICS DEVELOPMENT LEADERSHIP EFFECTIVENESS DECISION MAKING POWER POLITICS CONFLICT NEGOTIATIONS ORGANIZATIONS CULTURE STRUCTURE WORK DESIGN HUMAN RESOURCES CHANGE STRESS
- 35. The Study of Organizational Behavior Individual Group Organization Social Psychology Political Science Anthropology Psychology Sociology Organizational Behavior
- 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
- 37. HOLISTIC ORGANIZATIONAL 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.
- 38. BASIC APPROACHES to ORGANIZATIONAL 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! 2
- 39. FOUR MODELS OF ORGANIZATIONAL BEHAVIOR AUTOCRATIC CUSTODIAL SUPPORTIVE COLLEGIAL Developmental & Contingent 2 Moderate enthusiasm Awakened drives Passive co-operation Minimum Performance Results Self-actualization Status and recognition Security Subsistence Employee needs met Self-discipline Participation Dependence on organization Dependence on boss Employee Psychological Result Responsible behavior Job performance Security and benefits Obedience Employee Orientation Teamwork Support Money Authority Managerial Orientation Partnership Leadership Economic resources Power Basis of Model
- 40. MAJOR CHARACTERISTICS OF OB 3 Levels of Analysis Individual, Group, Organization Interdisciplinary Psychology, Sociology, Anthropology, & Political science Humanistic Orientation Attitudes, Perceptions, Needs & Emotions Performance Orientation The ultimate goal of OB is to improve, sustain, encourage effective performance Recognition of External Environment Technology, Laws, Competition, Economy Practical Application OB knowledge must be useful to practicing managers Organizations as Social Systems Relationships among individuals & groups in organizations create expectations for the behavior of individuals Contingency Approach There is no one Best way! Best depends on the situation Structure & Process Both play key roles in understanding OB
- 41. OB-And 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
- 42. Key Elements in Organizational Behavior Organization People Technology Structure Environment Environment Environment
- 43. THE RELATIONSHIP OF OB TO OTHER CLOSELY RELATED DISCIPLINES MACRO MICRO P/HR (Personal/ Human Resources) OD (Organizational Development) APPLIED OB (Organizational Behavior) OT (Organization Theory) THEORETICAL
- 44. MANAGERIAL USE OF OB Managerial Systems Manage Organizational Behavior Better People/ organization relationship Human objectives Organizational objectives Social objectives
- 45. A 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
- 46. The 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 Psychological Contract Job security Fair treatment Rewarding relationships Developmental opportunities
- 47. THE PSYCHOLOGICAL CONTRACT AND THE 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
- 48. Var i ables Influencing Individual Behavior The PERSON Skills Abilities Personalities Perceptions Attitudes Values Ethics The ENVIRONMENT Organization Work group Job Personal life BEHAVIOR
- 49. OB AS A CONTINGENCY MODEL ORGANIZATION BEHAVIOR An Introduction !
- 50. UNIVERSAL/CONTINGENCY VIEW UNIVERSAL VIEW: Same managerial principles apply to every situation CONTINGENCY VIEW: Appropriate managerial action depends on the situation Situation 1 Situation 3 Situation 2
- 51. There Are Few Absolutes in OB Contingency Variables x y 2
- 52. A CONTINGENCY MODEL AS GOOD BEHAVIORAL SCIENTISTS MANAGERS MUST STUDY Independent Variables Moderating Variables In Order to Explain Behavior “Y” 2 Independent variables X Dependent variables Y (affect) If “X” then “Y” Independent variables X Dependent variables Y Moderating variables Z If “X” then “Y” but only if condition “Z” exists
- 53. MAJOR DEPENDENT VARIABLES IN OB PRODUCTIVITY : Effectiveness & Efficiency ABSENTEEISM: Costs Billion of $ Per Year TURNOVER: Time & Cost for Recruiting, Selecting and Training JOB SATISFACTION: Attitude Rather Than Behavior MAJOR INDEPENDENT VARIABLES: WHAT ARE THE DETERMINANTS OF PRODUCTIVITY ABSENTEEISM TURNOVER JOB SATISFACTION CITIZENSHIP
- 55. The Dependent Variables (cont’d)
- 56. The Dependent Variables (cont’d)
- 57. The Dependent Variables (cont’d)
- 58. Independent 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
- 59. Old 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 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
- 60. 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 Game Internalizes concepts to be successful Critically evaluates ideas and test validity Uses assignments to practice and improve skills Sees course as opportunity to enhance success Views assignments as opportunity to get feedback on personal development Goal: Skill Mastery Aware of traditional roles-but adds coach, counselor, and facilitator
- 61. SUMMARY & CONCLUSION WHAT ARE SOME CONCLUDING STATEMENTS YOU CAN MAKE CONCERNING THE IMPORTANCE OF OB?
- 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: HOW WOULD YOU DESCRIBE THIS COURSE TO YOUR BOSS ? HOW WILL YOU RESPOND IF HE SAYS: “YEAH, BUT IT’S ALL JUST COMMON SENSE”? 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 ?
Editor's Notes
- #14: The following management functions can be used to classify the manager’s job. Planning means defining an organization’s goals, establishing an overall strategy for achieving these goals, and developing comprehensive plans to integrate and coordinate activities. Organizing includes determining what tasks must be done, who will do them, how the tasks will be grouped, who will report to whom, and where decisions will be made. Leading includes motivating and directing employees, and communicating and resolving conflicts. Controlling means monitoring performance, comparing results and goals, and making corrections.
- #18: Effective managers must exercise the following three essential skills: • Technical skills refer to specialized knowledge or expertise. • Conceptual skills refer to the mental ability to analyze and diagnose complex situations. • Human skills encompass the ability to work with, understand, and motivate people, both individually and in groups.
- #23: In the 1960s, Henry Mintzberg concluded that managers perform ten roles that can be grouped around three themes: interpersonal relationships, information transfer, and decision making. Managers perform three types of interpersonal roles: • Figureheads perform ceremonial or symbolic roles. • Leaders train, motivate, and discipline employees. • Liaisons contact external information sources. Managers perform three types of informational roles: • Monitors collect marketplace information from outside sources. • Disseminators transmit information to organizational members. • Spokespersons represent their organizations to outsiders. Managers perform four types of decisional roles: • Entrepreneurs initiate and oversee new projects to improve organizational performance. • Disturbance handlers take action to respond to unforeseen problems. • Resource allocators control human, mechanical, and monetary resources. • Negotiators bargain with others to gain advantage for their own units.
- #24: Fred Luthens and his associates studied over 450 managers and found that they all engaged in four managerial activities: 1. Traditional management . Decision making, planning, and controlling. 2. Communication . Exchanging routine information and processing paperwork. 3. Human resource management . Motivating, disciplining, managing conflict, staffing, and training. 4. Networking . Socializing, politicking, and interacting with outsiders.
- #32: Organizational behavior (OB) is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations. The purpose of investigating these elements is to apply such knowledge toward improving the effectiveness of an organization. OB includes the core topics of motivation, leader behavior and power, interpersonal communication, group structure and processes, learning, attitude development and perception, change processes, conflict, work design, and work stress.
- #36: Organizational behavior is an applied behavioral science that is built upon contributions from a number of behavioral disciplines. Psychology is the science that seeks to measure, explain, and sometimes change the behavior of individuals. The following areas of psychology have contributed to the knowledge base of OB: learning and personality theorists, counseling psychologists, and industrial and organizational psychologists. Sociology , the study of people in relation to their fellow human beings, has contributed to OB in the following areas: group dynamics; design of work teams; organizational culture, theory, structure, and technology; and power, communications, and conflict. Social psychology blends concepts from psychology and sociology to focus on how people influence one another. Social psychologists have made significant contributions in the areas of measuring, understanding, and changing attitudes; communication patterns; the ways in which group activities can satisfy individual needs; and group decision-making processes. Anthropology is the study of societies to learn more about human beings and their activities. Much of our current understanding of organizational cultures and environments, and the differences among national cultures is the result of the work of anthropologists. Political science is the study of the behavior of individuals and groups within a political environment. Specific topics of concern include structuring of conflict, allocation of power, and how people manipulate power for individual self-interest.
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