Organizational

Behavior, 8e
Schermerhorn, Hunt, and
Osborn
Prepared by
Michael K. McCuddy
Valparaiso University

John Wiley & Sons, Inc.

 COPYRIGHT
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Organizational Behavior: Chapter 1 2

 Chapter 1
Organizational Behavior Today
 Study questions.
1. What is organizational behavior and why is it
important?
2. How do we learn about organizational behavior?
3. What are organizations like as work settings?
4. What is the nature of managerial work?
5. How do ethics influence human behavior in
organizations?

Organizational Behavior: Chapter 1 3

 1. What is organizational behavior
and why is it important?
 Organizational behavior.
a. Study of individuals and groups in
organizations.
– Emphasizes high performance organizations
 ways to increase job satisfaction and
performance among employees
– Occurs in a global context.
– Dimensions of individual and group behavior.
– Nature of organizations.
– Core processes.
Organizational Behavior: Chapter 1 4
 a. Organizational Behavior
Defined
 Organizational Behavior (OB)
– The study of what people think, feel and do in and
around organizations

 Organizations
– Groups of people who work interdependently toward
some purposes
• Structured patterns of interactions
• Coordinated tasks
• Work toward some purpose

Organizational Behavior: Chapter 1 5

 Organizational Behavior in Context

Value System
Organizational Personality Emotions
Behavior Behavior Perceptions
(Micro) Motivation Learning Styles
Physical Attributes Cognitions
KSAOs
Teams Conflict
(Meso)
Stress Leadership

Structure
Organizational
Organizational Culture
Development
Theory Industry
(Macro) Environment Organizational
Change
Organizational Behavior: Chapter 1 6
Why Study Organizational Behavior
Understand
organizational
events

Organizational
Behavior
Research
Influence Predict
organizational organizational
events events

Organizational Behavior: Chapter 1 7

 What is organizational behavior
and why is it important?
 Shifting paradigms of organizational
behavior.
– Demise of “command-and-control.”
– Emergence of new workplace expectations.
– Critical role of information technologies.
– Belief in empowerment.
– Emphasis on teamwork.
– Concern for work-life balance.

Organizational Behavior: Chapter 1 8

 What is organizational behavior
and why is it important?
 Organizational behavior and diversity.
– Workforce diversity is the presence of
differences based on:
• Gender.
• Race and ethnicity.
• Age.
• Able-bodiedness.

Organizational Behavior: Chapter 1 9

 What is organizational behavior
and why is it important?
 Organizational behavior and diversity — cont.
– Valuing diversity is a core OB theme.
• Interpersonal and cultural sensitivity.
– Glass ceiling effect – hidden barrier limiting the
career advancement of women and minorities
• Women and minorities as managers and
executives.
• Earnings of women and minorities.

Organizational Behavior: Chapter 1 10

 2. How do we learn about
organizational behavior?
 Organizational behavior and the learning
imperative.
– Organizational learning is the process of
acquiring knowledge and utilizing
information to adapt successfully to
changing circumstances.
– Necessity of life-long learning.

Organizational Behavior: Chapter 1 11

 3. How do we learn about
organizational behavior?
 Scientific foundations of organizational behavior.
– Interdisciplinary body of knowledge: psychology,
sociology and anthropology and social sciences
– Use of scientific methods (next slide)
– Focus on application, eg.: job satisfaction, task
performance
– Contingency thinking: how different situations can be
best understood and handled

Organizational Behavior: Chapter 1 12

Schermerhorn, Osborn,Organizational
& Hunt/Organizational
Behavior: Chapter 1Behavior 7e
Chapter 1, Figure 2
 3. What are organizations
like as work settings?

 An organization is a collection of people

working together in a division of labor to
achieve a common purpose.
 Applies to:
– A wide variety of clubs, institutions, agencies,
businesses, and other organized entities.

Organizational Behavior: Chapter 1 14

 What are organizations
like as work settings?

 Purpose, mission, and strategies.

– Core purpose of an organization.

– Mission and vision.

– Mission statements.

Organizational Behavior: Chapter 1 15

 Reebok: "Our purpose is to ignite a
passion for winning, to do the
extraordinary, and to capture the
customer’s heart and mind."
 Walt Disney: "To make people happy."
 Wal-Mart: "To give ordinary folk the
chance to buy the same things as rich
people."
 The Body Shop: "Tirelessly work to
narrow the gap between principle and
practice whilst making fun, passion and
care part of our daily lives."
 Marks and Spencer: "Our mission is to
make aspirational quality accessible to all."
Organizational Behavior: Chapter 1 16
 Sony: "Our mission is to experience the joy of
advancing and applying technology for the
benefit of the public."
 Coca Cola: "The basic proposition of our
business is simple, solid and timeless. When we
bring refreshment, value, joy and fun to our
stakeholders, then we successfully nurture and
protect our brands."
 3M: "To solve unsolved problems
innovatively.“
 Glaxo: "We are an integrated, research-based
group of companies whose corporate purpose is
to create, discover, develop, manufacture, and
market safe effective medicines throughout the
world."
Organizational Behavior: Chapter 1 17
 What are organizations
like as work settings?

 People and work systems.

– Intellectual capital
• The sum total of knowledge, expertise, and
dedication of an organization’s workforce.
– Human resources.
– Material resources.

Organizational Behavior: Chapter 1 18

 What are organizations
like as work settings?
 Organizations as open systems.
– Organizations obtain resource inputs from the
environment.
– Organizations transform resource inputs.
– Organizations return transformed inputs to the
environment as outputs in the form of goods
and services.

Organizational Behavior: Chapter 1 19

Open Systems Anchor of OB

Feedback Feedback

Feedback Feedback

Organizational Behavior: Chapter 1 20

 4. What is the nature of managerial
work?
 Managers:
– Perform jobs that involve directly supporting
the work efforts of others.
– Help other people get important things done in
timely, high-quality, and satisfying ways.
– Assume roles such as coordinator, coach, or
team leader.

Organizational Behavior: Chapter 1 21

What is the nature of managerial work?

 The nature of managerial work.

– Managers work long hours.
– Managers are busy people.
– Managers are often interrupted.
– Managers work mostly with other people.
– Managers are communicators.

Organizational Behavior: Chapter 1 22

What is the nature of managerial work?

 The management process.

– An effective manager is one whose
organizational unit, group, or team
consistently achieves its goals while its
members remain capable, committed, and
enthusiastic.
– Key results of effective management:
• Task performance.
• Job satisfaction.

Organizational Behavior: Chapter 1 23

 Management Functions

Planning Organizing

Management
Functions

Controlling Leading

Organizational Behavior: Chapter 1 24

What is the nature of managerial work?

 Functions of management.
– Planning.
• Defining goals, setting specific performance
objectives, and identifying the actions needed to
achieve them.
– Organizing.
• Creating work structures and systems, and
arranging resources to accomplish goals and
objectives.

Organizational Behavior: Chapter 1 25

What is the nature of managerial work?

 Functions of management — cont.

– Leading.
• Instilling enthusiasm by communicating with
others, motivating them to work hard, and
maintaining good interpersonal relations.
– Controlling.
• Ensuring that things go well by monitoring
performance and taking corrective action as
necessary.

Organizational Behavior: Chapter 1 26

What is the nature of managerial work?

 Managerial roles.
– Interpersonal roles.
• Figurehead: hosting and attending official ceremonies
• Leader
• Liaison: maintaining contacts with important people
– Informational roles.
• Monitor: seeking out relevant information
• Disseminator: sharing information with insiders
• Spokesperson: sharing information with outsiders

Organizational Behavior: Chapter 1 27

What is the nature of managerial work?

 Managerial roles — cont.

– Decisional roles.
• Entrepreneur: seeking problems to solve and
opportunities to explore
• Disturbance handler: help to resolve conflict
• Resource allocator
• Negotiator

Organizational Behavior: Chapter 1 28

 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
by H. Mintzberg. Reprinted by permission of Pearson Education.

Organizational Behavior: Chapter 1 29

 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)
by H. Mintzberg. Reprinted by permission of Pearson Education.
Organizational Behavior: Chapter 1 30
 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)
by H. Mintzberg. Reprinted by permission of Pearson Education.
Organizational Behavior: Chapter 1 31
What is the nature of managerial work?

 Managerial skills and competencies.

– A skill is an ability to translate knowledge into
action that results in a desired performance.
– Categories of skills:
• Technical.
• Human.
• Conceptual.

Organizational Behavior: Chapter 1 32

What is the nature of managerial work?

 Managerial skills and competencies —

cont.
– Technical skills are relatively more important
at entry levels.
– Human skills are consistently important across
all managerial levels.
– Conceptual skills are relatively more
important at top management levels.

Organizational Behavior: Chapter 1 33

What is the nature of managerial work?

 Managerial skills and competencies—

cont.
– Technical skills.
• An ability to perform specialized tasks.
• Derives from knowledge of expertise gained from
education or experience.
• Proficiency at using select methods, processes, and
procedures to accomplish tasks.

Organizational Behavior: Chapter 1 34

What is the nature of managerial work?

 Managerial skills and competencies —

cont.
– Human skills.
• An ability to work well with other people.
• Emerges as a spirit of trust, enthusiasm, and
genuine involvement in interpersonal relationships.
• Self-awareness.
• Capacity for understanding and empathizing.
• Engages in persuasive communication.
• Deals successfully with conflicts.

Organizational Behavior: Chapter 1 35

What is the nature of managerial work?

 Managerial skills and competencies —

cont.
– Conceptual skills.
• An ability to see and understand how the system
works, and how the parts are interrelated.
• Used to:
– Identify problems and opportunities.
– Gather and interpret relevant information.
– Make good problem-solving decisions.

Organizational Behavior: Chapter 1 36

 5. How do ethics influence human
behavior in organizations?
 Ethical behavior.
– “Good” and “right” as opposed to “bad” or “wrong” in
a particular setting.
– Ways of thinking about ethical behavior.
• Utilitarian view: the needs of many may outweigh the needs
of few
• Individualism view: best for individual long term self-interest
• Moral rights view.
• Justice view.

Organizational Behavior: Chapter 1 37

 How do ethics influence human
behavior in organizations?
 Ethical dilemmas in the workplace.
– Nature of an ethical dilemma.
– Ethical dilemmas occur in relationships with:
• Superiors.
• Subordinates.
• Customers.
• Competitors.
• Suppliers.
• Regulators.

Organizational Behavior: Chapter 1 38

 How do ethics influence human
behavior in organizations?
 Ethical dilemmas in the workplace — cont.
– Rationalizations for unethical behavior:
• Pretending the behavior is not really unethical or
illegal.
• Saying the behavior is really in the organization’s
or person’s best interest.
• Assuming the behavior is acceptable if others don’t
find out about it.
• Presuming that superiors will support and protect
you.

Organizational Behavior: Chapter 1 39

 How do ethics influence human
behavior in organizations?
 Organizational social responsibility.
– The obligation of organizations to behave in
ethical and moral ways as institutions of the
broader society.
– Managers should commit organizations to:
• Pursuit of high productivity.
• Corporate social responsibility.

Organizational Behavior: Chapter 1 40

 How do ethics influence human
behavior in organizations?
 Work and the quality of life.
– Quality of work life (QWL).
• The overall quality of human experience in the
workplace.
– QWL commitment reflects an endorsement of
Theory Y assumptions.
– Work-life balance.
• Job demands should fit personal life and nonwork
responsibilities.

Organizational Behavior: Chapter 1 41

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.

Organizational Behavior: Chapter 1 42