Chapter 1Introduction:Organizational

Behavior in the 1990sNelson & Quick

Organizational Behavior

The study of individual behavior and group dynamics in organizational settings

Organizational Variables

Co

mm

un

icat

ion

s Performance appraisal Work design

Org

anizatio

nal D

esignOrganizational Structure Jobs

Human Behavior

Human BehaviorHuman Behaviorin the in the

OrganizationOrganization

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 theoriesmotivational & leadership theories.

Psychology the science of

human behavior

Management the study of overseeing

activities and supervising people in organizations

Anthropologythe 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:MaterialCapitalHuman

Task environment:CompetitorsUnionsRegulatory agenciesClients

Structure

Task Technology

People(Actors)

Organizational BoundaryBased 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 thediscovered the existence of theinformal organizationinformal organization

Formal & Informal Elements of Organizations

Formal organization (overt)

Goals & objectivesPolicies & procedures

Job descriptionsFinancial resources

Informal organization (covert)

Beliefs & assumptions aboutpeople, work, the organization

Perceptions & attitudesValues

Feelings, such as fear,rage, despair, &

hopeGroup norms

SocialSurface

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 ofbasic objectiveobjective

knowledge*knowledge*

Applicationof knowledge

and skills

Development ofDevelopment ofspecific 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 groupstructured activity

(e.g. group decisionactivity)New or modified

knowledge or skills(e.g., consensus

group decisions arebetter)

Systematic reviewof the structured

activity (e.g., compare individual & group results)

Conclusions basedon the systematicreview (e.g., thegroup 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 Organizationsin These Changing Times