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Chapter 1
Introduction:Organizational
Behavior in the 1990s
Nelson & Quick
Organizational Behavior
The study of individual behavior and group
dynamics in organizational settings
Organizational Variables
Com
mu
nic
atio
ns
Performance appraisal Work design
Organizational
Design
Organizational Structure Jobs
Human Behavior
Human Behavior
Human Behavior
in the
in the
Organization
Organization
Clockworks or Snake pit?
Organizational Vs Individual Point of View
Internal/External Perspective of
Human Behavior
Understand
human behavior
in terms of
External events,
behavioral consequences,
& external forces
Thoughts,feelings,
past experiences,
and needs
Explain human
behavior by
examining
Surrounding external
events & environmental
forces
Individuals’ history &
personal value
system
Internal Perspective External Perspective
Each Perspective has produced
Each Perspective has produced
motivational & leadership theories
motivational & leadership theories.
Psychology
the science of
human behavior
Management
the study of overseeing
activities and supervising
people in organizations
Anthropology
the science of the
learned behavior
of human beings
Medicine
the applied science of
healing or treatment of
diseases to enhance an
individual’s health and
well-being
Engineering
the applied science
of energy & matter
Sociology
the science
of society
Interdisciplinary
Influences on
Organizational
Behavior
Components of an Organization
Task - an organization’s mission, purpose, or goal for
existing
People - the human resources of the organization
Structure - the manner in which an organization’s work is
designed at the micro level; how departments, divisions,
& the overall organization are designed at the macro
level
Technology - the intellectual and mechanical processes
used by an organization to transform inputs into
products or services that meet organizational goals
(ch02)
Organizations
as Systems
Outputs:
Products
Services
Inputs:
Material
Capital
Human
Task environment:
Competitors
Unions
Regulatory agencies
Clients
Structure
Task Technology
People
(Actors)
Organizational Boundary
Based on Harold Levitt, “Applied Organizational Change in
Industry: Structural, Technological, and Humanistic Approaches,” in J.G.
March (ed.), Handbook of Organizations, Rand McNally, Chicago, 1965,
p. 1145. Reprinted by permission of James G. March
Formal vs Informal Organization
Formal Organization - the part of the
organization that has legitimacy and
official recognition
Informal Organization - the unofficial part
of the organization
Hawthorne Studies: studies conducted
Hawthorne Studies: studies conducted
during the 1920’s and 1930’s that
during the 1920’s and 1930’s that
discovered the existence of the
discovered the existence of the
informal organization
informal organization
Formal &
Informal
Elements of
Organizations
Formal organization
(overt)
Goals & objectives
Policies & procedures
Job descriptions
Financial resources
Informal organization
(covert)
Beliefs & assumptions about
people, work, the organization
Perceptions & attitudes
Values
Feelings, such as fear,
rage, despair, &
hope
Group norms
Social
Surface
U.S. Gross Domestic Product
Federal purchases State/local purchases
Personal durable goods Personal nondurable goods
Service Fixed investments
Total
$8.1 Trillion
40%
15% 6%
12%
8%
19%
Six Focus Organizations
• Ford
• Gateway 2000
• Southwest Airlines
• Starbucks
• Harpo Entertainment
• American Red Cross
Change
• Too much change = chaos
• Too little change = stagnation
How do you view change?
Threat Opportunity
International Competition in
Business
Thurow: the next several decades in business will
be characterized by intense competition between
the U.S., Japan, and Europe in core industries.
Success will require:
• positive response to the competition in the
international marketplace
• responsiveness to ethnic, religious, and
gender diversity in the workforce
Quality
• A potential means for giving organizations in viable
industries a competitive edge in international
competition
• A rubric for products and services that are of high
status
• A customer-oriented philosophy of management with
implications for all aspects of organizational behavior
• A cultural value embedded in successful
organizations
Cannot be optimized
Is not a fad
Is not an end in itself
Quality
Three key questions in evaluating quality-improvement ideas
1. Does the idea improve customer response?
2. Does the idea accelerate results?
3. Does the idea raise the effectiveness of resources?
YES means the idea should improve overall quality
Total Quality Management
Total Quality Management -
the total dedication to continuous
improvement and to customers so
that the customers’ needs are met
and their expectations exceeded
Total Quality is NOT
- a panacea for all organizations
- a guarantee of unqualified success
CEOs Advance Total Quality by:
• Engaging in participative management
• Being willing to change everything
• Focusing quality efforts on customer service
• Including quality as a criterion in reward systems
• Improving the flow of information regarding
quality improvement successes or failures
• Being actively & personally involved in quality
efforts
Seven Categories in the Malcolm Baldrige
National Quality Award Examination
• Leadership
• Information and analysis
• Strategic quality planning
• Human resource utilization
• Quality assurance of products & services
• Quality results
• Customer satisfaction
Challenges to Managing
Organizational Behavior
1. Increasing globalization of organizations’
operating territory
2. Increasing diversity of organizational
workforces
3. Continuing technological innovation with its
companion need for skill enhancement
4. Continuing demand for higher levels of moral
& ethical behavior at work
Learning about Organizational
Behavior
Mastery of
basic objective
objective
knowledge*
knowledge*
Application
of knowledge
and skills
Development of
Development of
specific skills**
skills**
and abilities
* Objective knowledge
knowledge that results
from research and
scholarly activities
** Skill development
the mastery of abilities
essential to successful
functioning in organizations
The Organizational Behavior
Student is
a critical consumer of knowledge
related to organizational behavior--
one who is able to intelligently
question the latest research results
and distinguish plausible, sound
new approaches from fads that lack
substance or adequate foundation.
Learning from Structured Activity
Individual or group
structured activity
(e.g. group decision
activity)
New or modified
knowledge or skills
(e.g., consensus
group decisions are
better)
Systematic review
of the structured
activity (e.g.,
compare individual
& group results)
Conclusions based
on the systematic
review (e.g., the
group did better)
Three Assumptions Required for
Learning from Structured Activity
• Each student must accept responsibility for
his/her own behavior, actions, & learning
• Each student must actively participate in the
individual/group structured learning activity
• Each student must be open to new
information, new skills, new ideas, and
experimentation
Skills Identified by
U.S. Department of Labor
• Resource management skills
• Information management skills
• Personal interaction skills
• Systems behavior & performance
skills
• Technology utilization skills
Watchwords for Organizations
in These Changing Times

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Introduction to Organizational Behavior in the 1990s

  • 2. Organizational Behavior The study of individual behavior and group dynamics in organizational settings Organizational Variables Com mu nic atio ns Performance appraisal Work design Organizational Design Organizational Structure Jobs Human Behavior
  • 3. Human Behavior Human Behavior in the in the Organization Organization Clockworks or Snake pit? Organizational Vs Individual Point of View
  • 4. Internal/External Perspective of Human Behavior Understand human behavior in terms of External events, behavioral consequences, & external forces Thoughts,feelings, past experiences, and needs Explain human behavior by examining Surrounding external events & environmental forces Individuals’ history & personal value system Internal Perspective External Perspective Each Perspective has produced Each Perspective has produced motivational & leadership theories motivational & leadership theories.
  • 5. Psychology the science of human behavior Management the study of overseeing activities and supervising people in organizations Anthropology the science of the learned behavior of human beings Medicine the applied science of healing or treatment of diseases to enhance an individual’s health and well-being Engineering the applied science of energy & matter Sociology the science of society Interdisciplinary Influences on Organizational Behavior
  • 6. Components of an Organization Task - an organization’s mission, purpose, or goal for existing People - the human resources of the organization Structure - the manner in which an organization’s work is designed at the micro level; how departments, divisions, & the overall organization are designed at the macro level Technology - the intellectual and mechanical processes used by an organization to transform inputs into products or services that meet organizational goals (ch02)
  • 7. Organizations as Systems Outputs: Products Services Inputs: Material Capital Human Task environment: Competitors Unions Regulatory agencies Clients Structure Task Technology People (Actors) Organizational Boundary Based on Harold Levitt, “Applied Organizational Change in Industry: Structural, Technological, and Humanistic Approaches,” in J.G. March (ed.), Handbook of Organizations, Rand McNally, Chicago, 1965, p. 1145. Reprinted by permission of James G. March
  • 8. Formal vs Informal Organization Formal Organization - the part of the organization that has legitimacy and official recognition Informal Organization - the unofficial part of the organization Hawthorne Studies: studies conducted Hawthorne Studies: studies conducted during the 1920’s and 1930’s that during the 1920’s and 1930’s that discovered the existence of the discovered the existence of the informal organization informal organization
  • 9. Formal & Informal Elements of Organizations Formal organization (overt) Goals & objectives Policies & procedures Job descriptions Financial resources Informal organization (covert) Beliefs & assumptions about people, work, the organization Perceptions & attitudes Values Feelings, such as fear, rage, despair, & hope Group norms Social Surface
  • 10. U.S. Gross Domestic Product Federal purchases State/local purchases Personal durable goods Personal nondurable goods Service Fixed investments Total $8.1 Trillion 40% 15% 6% 12% 8% 19%
  • 11. Six Focus Organizations • Ford • Gateway 2000 • Southwest Airlines • Starbucks • Harpo Entertainment • American Red Cross
  • 12. Change • Too much change = chaos • Too little change = stagnation How do you view change? Threat Opportunity
  • 13. International Competition in Business Thurow: the next several decades in business will be characterized by intense competition between the U.S., Japan, and Europe in core industries. Success will require: • positive response to the competition in the international marketplace • responsiveness to ethnic, religious, and gender diversity in the workforce
  • 14. Quality • A potential means for giving organizations in viable industries a competitive edge in international competition • A rubric for products and services that are of high status • A customer-oriented philosophy of management with implications for all aspects of organizational behavior • A cultural value embedded in successful organizations
  • 15. Cannot be optimized Is not a fad Is not an end in itself Quality Three key questions in evaluating quality-improvement ideas 1. Does the idea improve customer response? 2. Does the idea accelerate results? 3. Does the idea raise the effectiveness of resources? YES means the idea should improve overall quality
  • 16. Total Quality Management Total Quality Management - the total dedication to continuous improvement and to customers so that the customers’ needs are met and their expectations exceeded Total Quality is NOT - a panacea for all organizations - a guarantee of unqualified success
  • 17. CEOs Advance Total Quality by: • Engaging in participative management • Being willing to change everything • Focusing quality efforts on customer service • Including quality as a criterion in reward systems • Improving the flow of information regarding quality improvement successes or failures • Being actively & personally involved in quality efforts
  • 18. Seven Categories in the Malcolm Baldrige National Quality Award Examination • Leadership • Information and analysis • Strategic quality planning • Human resource utilization • Quality assurance of products & services • Quality results • Customer satisfaction
  • 19. Challenges to Managing Organizational Behavior 1. Increasing globalization of organizations’ operating territory 2. Increasing diversity of organizational workforces 3. Continuing technological innovation with its companion need for skill enhancement 4. Continuing demand for higher levels of moral & ethical behavior at work
  • 20. Learning about Organizational Behavior Mastery of basic objective objective knowledge* knowledge* Application of knowledge and skills Development of Development of specific skills** skills** and abilities * Objective knowledge knowledge that results from research and scholarly activities ** Skill development the mastery of abilities essential to successful functioning in organizations
  • 21. The Organizational Behavior Student is a critical consumer of knowledge related to organizational behavior-- one who is able to intelligently question the latest research results and distinguish plausible, sound new approaches from fads that lack substance or adequate foundation.
  • 22. Learning from Structured Activity Individual or group structured activity (e.g. group decision activity) New or modified knowledge or skills (e.g., consensus group decisions are better) Systematic review of the structured activity (e.g., compare individual & group results) Conclusions based on the systematic review (e.g., the group did better)
  • 23. Three Assumptions Required for Learning from Structured Activity • Each student must accept responsibility for his/her own behavior, actions, & learning • Each student must actively participate in the individual/group structured learning activity • Each student must be open to new information, new skills, new ideas, and experimentation
  • 24. Skills Identified by U.S. Department of Labor • Resource management skills • Information management skills • Personal interaction skills • Systems behavior & performance skills • Technology utilization skills
  • 25. Watchwords for Organizations in These Changing Times