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Understanding and

Managing Organizational

Behavior

4th Edition

Chapter 1:1:Introduction to Introduction to Organizational Organizational

BehaviorBehavior

JENNIFER GEORGE JENNIFER GEORGE & GARETH JONES& GARETH JONES

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Chapter Objectives Define organizational behavior and explain

how and why it determines the effectiveness of an organization

Appreciate why the study of organizational behavior improves a person’s ability to understand and respond to events that take place in a work setting

Differentiate between the three levels at which organizational behavior is examined

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Chapter Objectives

Appreciate the way changes in an organization’s external environment continually create challenges for organizational behavior

Describe the four main kinds of forces in the environment that post the most opportunities and problems for organizations today

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IKEA’s Global Approach to OB

IKEA strives to increase employees’ skills and knowledge

IKEA provides employees with rewards that encourage high performance

IKEA encourages employee commitment and cooperation

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What is an Organization?

An organization is a collection of people who work together to achieve individual and organizational goals– Individual goals– Organizational goals

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What is Organizational Behavior?

Organizational behavior (OB): the study of factors that have an impact on how people and groups act, think, feel, and respond to work and organizations, and how organizations respond to their environments

See Figure 1.1, 1.2, 1.3

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What is Management?

Management is the process of planning, organizing, leading, and controlling an organization’s human, financial, material, and other resources to increase its effectiveness

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Four Functions of Management

Planning Organizing Leading Controlling

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Table 1.1: Mintzberg’s Managerial Roles

Figurehead Liaison Disseminator Entrepreneur Resource allocator

Leader Monitor Spokesperson Disturbance

handler Negotiator

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Managerial Skills

Conceptual Skills: The ability to analyze and diagnose a situation and distinguish between cause and effect.

Human Skills: The ability to understand, work with, lead, and control the behavior of other people and groups.

Technical Skills: Job-specific knowledge and techniques.

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Challenges for Organizational Behavior

1: Changing Social/ Cultural Environment 2: Evolving Global Environment 3: Advancing Information Technology 4: Shifting Work/ Employment Relationships

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Changing Social and Cultural Environment

National culture Organizational ethics and well-being Diverse work force

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Diversity Challenges

Fairness and Justice Decision-Making and Performance Flexibility

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Evolving Global Environment

Understanding Global Differences Improve Organization’s Behaviors and

Procedures in Response to Those Differences

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Advancing Information Technology

Information Knowledge Information Technology Organizational Learning Intranets Creativity Innovation

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Shifting Work/ Employment Relationships

Downsizing Empowerment and Self-Managed Teams Contingent Workers Outsourcing

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Appendix 1A: A Short History of Organizational Behavior

F.W. Taylor and Scientific Management Mary Parker Follett Hawthorne Studies Theory X and Y

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F.W. Taylor and Scientific Management

Scientific management: the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency

The amount of and effort each employee expends to produce a unit of output can be reduced by increasing specialization and the division of labor

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Four Principles of Scientific Management

1. Study the way employees perform their tasks, gather informal job knowledge that employees possess, and experiment with ways of improving the way tasks are performed

2. Codify the new methods of performing tasks into written rules and standard operating procedures

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Four Principles of Scientific Management_2

3. Carefully select employees so that they possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures

4. Establish an acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level

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Mary Parker Follett

Management must consider the human side Employees should be involved in job

analysis Person with the knowledge should be in

control of the work process regardless of position

Cross-functioning teams used to accomplish projects

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The Hawthorne Studies

Hawthorne Works of the Western Electric Company; 1924-1932

Initiated as an attempt to investigate how characteristics of the work setting affect employee fatigue and performance (i.e., lighting)

Found that productivity increased regardless of whether illumination was raised or lowered

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The Hawthorne Studies_2

Factors influencing behavior:– Attention from researchers– Manager’s leadership approach– Work group norms

The “Hawthorne Effect”

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Douglas McGregor: Theory X and Theory Y

Theory X Average employee is lazy,

dislikes work, and will try to do as little as possible

Manager’s task is to supervise closely and control employees through reward and punishment

Theory Y Employees will do what is

good for the organization when committed

Manager’s task is create a work setting that encourages commitment to organizational goals and provides opportunities for employees to be exercise initiative