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What is an Organization?
A group of people working together in a
structured and coordinated fashion to achieve a
set of goals.
Common Characteristics of Organizations
Have a distinct purpose (goal)
Composed of people
Have a deliberate structure
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What is Management?
A set of activities (Planning and decision making,
organizing, leading, and controlling) directed at an
organization’s resources (human, financial,
physical, and information) with the aim of
achieving organizational goals in an efficient and
effective manner.
Managers are the people who plan, organize,
lead, and control the activities of the organization
so that its goals can be achieved.
Persons responsible for carrying out management function
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Organizational Resources
All organizations use 4 basic kinds of resources to
achieve their goals.
1. Human resources
Manager & labor
2. Financial resources
Capital (Money) to support
ongoing and long-term operations.
3. Physical Assets
Raw materials, Building, office, Land, production facilities,
and equipment
4. Information
Usable data, information linkages
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Organizational Performance
Efficiency: A measure of how well resources are used to
achieve a goal
Getting the most output for the least inputs
“Doing Things Right”
Effectiveness: A measure of the appropriateness of the
goals chosen (are these the right goals?), and the degree to
which they are achieved
Attaining organizational goals
“Doing the Right Things Right”
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Management
process is on
going process &
it doesn’t occur
in step-by-step
fashion. Most
managers engage
in more then one
activity at a time.
.
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Manager- Someone who plans and makes decisions,
organizes, leads, and controls human, financial, physical,
and information resources.
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Technical Skills
Necessary to accomplish or
understand the specific kind
of work being done.
These skills are especially
important for first line
managers.
Managerial Skills
Fundamental skill required to perform managerial job.
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Interpersonal Skills
The ability to
communicate with,
understand, and motivate
both individuals and
groups.
Be able to get along
with:
Subordinates
Peers
Those at higher levels
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Conceptual Skills
Mental capacity to understand overall work.
Understanding how each part of the
organization fits and interacts with other
parts in order to accomplish goals and
operate in an ever-changing environment.
The mental capacity to:
Understand organizational goals and its
environment.
How the organization is structured.
Viewing the organization as system.
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Decision-Making Skills
A manager’s ability to
correctly recognize and
define problems and
opportunities and to
then select an
appropriate course of
action to solve problems
and capitalize on
opportunities.
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Time-Management Skills
Ability to prioritize work
& performing tasks on
time.
Analytical/Diagnostic skills
The ability to analyze or logically diagnose
problems & determine most appropriate
solutions.
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Managerial Roles
Hanry Mintzberg closely observed activities of managers
& concluded that they play ten different roles, which fall
in 3 basic categories.
A role is a set of connected behaviors, rights and
obligations performed/used by a person.
1. Interpersonal Role- It involves dealing, coordinating,
communicating, understanding and interacting with
people (insiders & outsiders).
I. Figurehead- A person who holds an important title or
office yet executes little actual power. In the figurehead
role, the manager represents the organization in all
matters of formality
II. Leader- involves control, supervising, directing,
motivating & hiring subordinates.
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III. Liaison Role- Coordinating & making link between two
units (inside & outside)
2. Informational Role- Receiving, collecting, and
disseminating information
I. Monitor-seeking/receiving information from many
sources to evaluate the organization's performance,
environment’s situation.
II. Disseminator- In their disseminator role, managers pass
information to his workplace & outsiders
III. Spokesman (spokeswoman or spokesperson)-
Managers convey some of their information to people
about company policies, needs, actions, or plans.
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3. Decisional Roles- Managerial role that revolves around
making choice.
I. The Entrepreneur Role. Managers search for
new ideas, improvement in his unit by adopting
changing conditions in the environment, takes risk &
responsibility for adopting change.
II. The Disturbance handler Role- This role involves
responding to high-pressure disturbances. conflicts
among subordinates or departments, strikes,
disagreements.
III. The Resource Allocator Role- Managers make
decisions about how to allocate people, budget,
equipment, time and other resources to attain desired
outcomes.
IV. The negotiator role- Negotiations and bargaining to
arrive at a course of action.
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Organizational Behavior
Actions and attitudes of individuals and
groups toward one another and toward the
organization as a whole, and its effect on
the organization's functioning and
performance.
Organizational behavior (often
abbreviated OB) is 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.
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• OB is the study of how people behave in an
organization and how their behavior affects the
organization’s performance.
Individuals behave differently when acting in their
organizational role than when acting separately from
the organization. Organizational behavior
researchers study the behavior of individuals
primarily in their organizational roles.
One of the main goals of organizational behavior is
"to revitalize organizational theory and develop a
better conceptualization of organizational life"
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Three Levels of OB Analysis
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What is OB about?
• 3-D : individual, group & organizational
• At the individual level: learning, perception, stress,
personality, individual differences etc
• At the group level: teamwork, power & politics,
interpersonal, decision making etc
• Organizational culture, change, structure & design at
organizational level
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Goals of OB
The goals of OB:
Predict
Explain and
Control /Change
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Implications for Managers
OB helps with:
Insights to improve people skills
Valuing of workforce diversity
Empowering people and creating
a positive work environment
Dealing with labor shortages
Coping in a world of
temporariness
Creating an ethically healthy
work environment
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Disciplin
es That
Contribu
te to the
OB Field
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Disciplines That Contribute to the OB Field
Psychology seeks to measure, explain,
and sometimes change the behavior of
humans and other animals.
• Fatigue, boredom, and other working
conditions that could impede efficient
work performance.
• Learning, perception, personality,
emotions, training, leadership
effectiveness, needs and motivational
forces, job satisfaction, decision-making
processes, performance appraisals,
attitude measurement, employee-selection
techniques, work design, and job stress.
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Sociology- While psychology focuses on the individual,
sociology studies people in relation to their social
environment or culture.
• Study of group behavior in organizations, organizational
culture, formal organization theory and structure,
organizational technology, communications, power, and
conflict.
Social psychology focus on peoples’ influence on one
another. One major study area is change —how to
implement it and how to reduce barriers to its acceptance.
• Measuring, understanding, and changing attitudes;
identifying communication patterns; and building trust,
group behavior, power, and conflict
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Anthropology is the study
of humans and human
behavior and societies in
the past and present.
Anthropology is the study
of people throughout the
world, their evolutionary
history, how they behave,
adapt to different
environments,
communicate and socialize
with one another.
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Challenges and Opportunities for OB
• Responding to Economic Pressures
• The workplace contains a wide mix of cultures, races,
ethnic groups, genders and ages
• Employees have to learn to cope with rapid change due
to global competition
• Corporate loyalty has decreased due to corporate
downsizing and use of temp workers
• Improving Ethical Behavior
• Helping Employees Balance Work–Life Conflicts
• Managers can benefit from OB theory and concepts
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Thinking Positive
Creating a positive work environment can be a
competitive advantage
Positive Organizational Scholarship (Positive
OB):
Examines how organizations develop human
strengths, foster vitality and resilience, and unlock
potential.
Focus is on employee strengths, not their
weaknesses.
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Historical Background
• The famous “Hawthorne Studies” (1924-30s)
• Undertaken at Western Electric Company, Illinois; to
study the effect of various illumination levels on
worker productivity.
• Findings were: illumination intensity was not directly
related to group productivity. Though they couldn’t
explain the behavior that they had witnessed!
Something more to the productivity than mere
physical variables!!
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This generated an interest in human behavior at work place.
Professor Elton Mayo started a series of studies &
numerous experiments covering redesign of jobs, changes in
the length of work day, time, introduction of rest periods
and individual vs group pay plans.
Hawthorne studies set the direction OB and management
practices!!
Hawthorne Effect: The alteration of behavior by the
subject of a study due to the awareness of being observed.
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Until the late 1980s, business school curricula emphasized
the technical aspects of management, focusing on
economics, accounting, finance, and quantitative
techniques. Course work in human behavior and people
skills received relatively less attention.
Over the past three decades, however, business faculty have
come to realize the role that understanding human behavior
plays in determining a manager’s effectiveness, and
required courses on people skills have been added to many
curricula.
Editor's Notes
#6:Managers are key components to organizational performance. It is a managers responsibility to choose the correct output goals and then try to minimize the input of resources to attain the same output goal.
Efficiency and Effectiveness are key terms to understand when talking about organizational performance.
Efficiency – doing things right! (produce 1000 z widgets (when the customer wanted x) at a low cost)
Effectiveness –doing the right things right. (produce X widgets at a low cost)
Refer to figure 1-1 pg. 6
Organizations are more effective when managers choose the correct goals and then achieve them.
#14:Rights- entitlement to have or do something
Obligation- something one must do bcos of law & agrement
#18:the action or practice of engaging in political activity.
#26:perceive- the human ability to understand or interpret something through senses.
Attitude- way of thinking or feeling about something
Behavior- the way we act