Introduction to the Field

1
of Organizational
C H A P T E R
Behavior

McGraw- © 2005 The McGraw-Hill Companies, Inc.

 What are Organizations?

 Groups of people who

work interdependently
toward some purpose
 Structured patterns
of interaction
 Coordinated tasks
 Work toward some
purpose
Why Study Organizational Behavior

Understand
organizational
events

Organizational
Behavior
Research

Influence Predict
organizational organizational
events events
 Trends: Globalization

 Economic, social, and cultural connectivity

with people in other parts of the world
 Effects of globalization on organizations:
 Greater efficiencies and knowledge sources
 Ethical issues about economies of developing
countries
 New organizational structures and communication
 Greater workforce diversity
 More competitive pressure, demands on employees
 Trends: Information Technology

 Blurs temporal and spatial boundaries

between employees and
organizations
 Re-designs jobs and power
relationships
 Increases value of knowledge
management
 Supports telecommuting
 Supports virtual teams
Telecommuting

 An alternative work arrangement

where employees work at home or
remote site, usually with a computer
connection to the office
 Tends to increase productivity and
empowerment, reduce stress and
costs
 Problems with lack of recognition, lack
of social interaction
 Trends: Changing Workforce

 Primary and secondary diversity -- but

concerns about distinguishing people
by ethnicity
 More women in workforce and
professions
 Different needs of Gen-X/Gen-Y and
baby-boomers
 Diversity has advantages, but firms
need to adjust
 Trends: Employment Relationship

 Employability
 “New deal” employment relationship
 Continuously learn new skills
 Contingent work
 No contract for long-term employment
 Free agents, temporary-temporaries
 Minimum hours of work vary
 Employability vs Job Security

Job Employabili
Security ty

• Lifetime job security • Limited job security

• Jobs are permanent • Jobs are temporary
• Company manages career • Career self-management
• Low emphasis on skill • High emphasis on skill
development development
Trends: Workplace Values & Ethics

 Values are long-lasting beliefs about what is

important in a variety of situations
 Define right versus wrong --guide our decisions
 Values relate to individuals, companies,
professions, societies, etc.
 Importance values due to:
 Need to guide employee decisions and actions
 Globalization increases awareness of different
values
 Increasing emphasis on applying ethical values
 Ethics -- study of moral principles or values
Corporate Social Responsibility
 Corporate Social Responsibility
 Organization’s moral obligation
toward its stakeholders
 Stakeholders
 Shareholders, customers, suppliers,
governments etc.
 Triple bottom line philosophy
 Economic, Social & Environmental
Organizational Behavior Anchors

Multidisciplin
ary
Anchor

Open Systematic
Systems Organizational Research
Anchor Behavior Anchor
Anchors
Multiple
Levels of Contingency
Analysis Anchor
Anchor
Open Systems Anchor of OB

Feedback Feedback

Subsyst Subsyst

Inputs Organization Outputs

Subsyst Subsyst
Knowledge Management
Defined
 Any structured activity
that improves an
organization’s capacity
to acquire, share, and
use knowledge for its
survival and success
Intellectual Capital
Knowledge that people
Human Capital
possess and generate

Knowledge captured in
Structural Capital
systems and structures

Values derived from satisfied

Relationship
Capital
customers, reliable suppliers,
etc.
Knowledge Management Processes

Knowledge Knowledge Knowledge

acquisition sharing use

• Grafting • Communication • Awareness

• Individual learning • Communities of • Empowerment
• Experimentation practice
Organizational Memory
 The storage and preservation of
intellectual capital
 Retain intellectual capital by:
 Keeping knowledgeable employees
 Transferring knowledge to others
 Transferring human capital to structural capital
 Successful companies also unlearn.
What Is An Organization?

 An Organization Defined
 A deliberate arrangement of people to
accomplish some specific purpose
 Common Characteristics of
Organizations
 Have a distinct purpose (goal)
 Composed of people
 Have a deliberate structure
Characteristics of Organizations
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, and the
overall organization are designed at the
macro level
Technology – the tools, knowledge, and/or
Management Functions

Planning Organizing

Management
Functions

Controlling Leading
 Management Roles

 Interpersonal roles

 Informational roles

 Decisional roles
Skills Needed at Different
Management Levels
How The Manager’s Job Is Changing

 The Increasing Importance of Customers

 Customers: the reason that organizations exist
 Managing customer relationships is the
responsibility of all managers and employees.
 Consistent high quality customer service is
essential for survival.
 Innovation
 Doing things differently, exploring new territory,
and taking risks
 Managers should encourage employees to be
aware of and act on opportunities for innovation.
hanges Impacting the Manager’s Job
Enter Organizational
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.
Basic Assumptions in OB

 Individual differences: Individuals are

different
 A whole person
 Behavior of individual is caused
 An individual has dignity
 Organisations are social systems
 Mutual Interest
 Holistic concept
Scope of OB

 Intra-personal behavior
 Inter-personal behavior
 Organizations
 Organizational Behavior:
Dynamics in Organizations

Psychosocial

Interpersonal Organizational Behavioral

Behavior
Organizational Variables that
Affect Human Behavior
Communication

Organizational Performance
Structure Appraisal
Human
Behavior
Work
Design Jobs

Organizational
Design
 External Perspective
Understand behavior in terms of external events,
environmental
forces, and behavioral consequences

Internal Perspective
Understand behavior
in terms of thoughts,
feelings, past experiences,
and needs
Explain behavior by
examining individuals’
history and personal value
system

Explain behavior by examining surrounding external

events and environmental forces

Each perspective has produced

motivational & leadership theories.