Chapter 1. What is Organizational Behavior?

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Chapter Learning ObjectivesAfter studying this chapter you should be able to:Define organizational behavior (OB).Describe the managers functions, roles, and skills.Identify the major behavioral science disciplines that contribute to OB.Identify the challenges and opportunities managers have in applying OB concepts.

*What is Organizational Behavior?An interdisciplinary field dedicated to better understanding and managing people at workWhy study OB?To interact more effectively with others in organizationsIm a finance major, why do I need to know this?People skills complement technical skills

OB-related skills are the ticket to ride the virtuous career spiral.

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The Importance of Interpersonal SkillsUnderstanding OB helps determine manager effectivenessTechnical and quantitative skills are important But leadership and communication skills are CRITICAL as a person progresses in a career.

Organizational benefits of skilled managersLower turnover of quality employees Top reason: bad relationships with colleagues/supervisorsHigher quality applications for recruitmentBetter organizational culture/climate = reputationBetter financial performance

*History of Organizational BehaviorHuman Relations Movement

The Quality Movement6 sigmaE-Business Revolution

Human and Social Capital

*Modern Times Charlie Chaplin

*Human Relations MovementInspired by legalization of union-management collective bargaining in the US (1935)

Hawthorne StudiesSupportive management

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*The Quality MovementTotal Quality Management (TQM)An organizational culture dedicated to training, continuous improvement, and customer satisfactionEmployee-driven, customer-focused Basic PrinciplesDo it right the first time to eliminate costly reworkListen to and learn from customers and employeesMake continuous improvement an everyday matterBuild teamwork, trust, and mutual respect

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*E-Business RevolutionImplications for organizational behavior and leaders?More and faster communication with othersMore potential for damage by unethical leadersEnables the existence of networks that go across traditional organizational boundaries

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*Human and Social CapitalHuman Capital the productive potential of an individuals knowledge and actions

Mitre, McLean, VAPays university professors to conduct a Masters in Systems Engineering program for employees

Social Capital productive potential resulting from strong relationships, goodwill, trust, and cooperative effort

Cisco Systems, San Jose, CASponsors Nerd lunches to discuss latest topics in technology

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*The Value of Management"The success of an organization is dependent upon the competence of senior management and the morale of the workforce, ~ David Sirota, founder Sirota ResearchHow do you keep management from destroying the workforce?

Source: Study Sees Link Between Morale and Stock Price, HR Executive Online, March 6, 2006

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*ManagementProcess of working with and through others to achieve organizational objectives efficiently and ethically

What skills are exhibited by an effective manager?Communication, team-building, people, technical

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Evolution of 21st-Century Managers

Primary RolePast ManagersFuture ManagersCultural OrientationMonocultural, monolingualMulticultural, multi-lingualSource of influenceFormal authorityTechnical knowledge and interpersonal skillView of peoplePotential problemPrimary resource; human capitalDecision-making styleLimited input for individual decisionsBroad-based input for joint decisionsEthical considerationsAfterthoughtForethought

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What Managers DoThey get things done through other people in organizations.

Management Activities:Make decisionsAllocate resourcesDirect activities of others to attain goals

Work in an organizationA consciously coordinated social unit composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals.

Management Functions

MCQ!!!*

Discovered ten managerial roles

Separated into three groups:InterpersonalInformationalDecisional

Mintzbergs Managerial Roles

Mintzbergs Managerial Roles: Interpersonal

Mintzbergs Managerial Roles: Informational

Mintzbergs Managerial Roles: Decisional

Luthans Study of Managerial ActivitiesFour types of managerial activity:Traditional ManagementDecision-making, planning, and controlling.CommunicationExchanging routine information and processing paperworkHuman Resource ManagementMotivating, disciplining, managing conflict, staffing and training.NetworkingSocializing, politicking, and interacting with others.

Successful vs. Effective Allocation by TimeManagers who promoted faster (were successful) did different things than did effective managers (those who did their jobs well)

Intuition and Systematic StudyThe two are complementary means of predicting behavior.VUCA = volatile, uncertain, complex, ambiguous

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An Outgrowth of Systematic StudyEvidence-Based Management (EBM)

Basing managerial decisions on the best available scientific evidence

Must think like scientists:

1-*Five Sources of OB Research InsightsLaboratory studyManipulation and measurement of variables in contrived situationsField study Examination of variables in real-life settings Sample survey Questionnaire responses from a sample of peopleCase Studies In-depth analysis of single individual, group, or organizationMeta-analysisPools the results of many studies through statistical procedure

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Contributing Disciplines Many behavioral sciences have contributed to the development ofOrganizationalBehavior

Team dynamicsMotivation*

PsychologyThe science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.

Unit of Analysis: IndividualContributions to OB:Learning, motivation, personality, emotions, perceptionTraining, leadership effectiveness, job satisfactionIndividual decision making, performance appraisal attitude measurementEmployee selection, work design, and work stress

Social PsychologyAn area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.Unit of Analysis: GroupContributions to OB:Behavioral changeAttitude changeCommunicationGroup processesGroup decision making

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SociologyUnit of Analysis:-- Organizational SystemContributions to OB:Group dynamicsWork teamsCommunicationPowerConflictIntergroup behavior

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Formal organization theoryOrganizational technologyOrganizational changeOrganizational culture

The study of people in relation to their fellow human beings.

AnthropologyUnit of Analysis:-- Organizational SystemContributions to OB:Organizational cultureOrganizational environment

-- Group

Comparative valuesComparative attitudesCross-cultural analysis

The study of societies to learn about human beings and their activities.

Contingent Approach: Few Absolutes in OBSituational factors that make the main relationship between two variables changee.g., the relationship may hold for one condition but not another.

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Types of Study VariablesIndependent (X)The presumed cause of the change in the dependent variable (Y).This is the variable that OB researchers manipulate to observe the changes in Y.

Dependent (Y)This is the response to X (the independent variable).It is what the OB researchers want to predict or explain. The interesting variable!

Interesting OB Dependent VariablesProductivityTransforming inputs to outputs at lowest cost; effectiveness (achievement of goals) and efficiency (meeting goals at a low cost).AbsenteeismFailure to report to work a huge cost to employers.TurnoverVoluntary and involuntary permanent withdrawal from an organization.Deviant Workplace BehaviorVoluntary behavior that violates significant organizational norms and thereby threatens the well-being of the organization and/or any of its members.

Job performance: task performance, contextual performance (citizen behavior), Counter-productive performance*

The Independent VariablesThe independent variable (X) can be at any of these three levels in this model:IndividualBiographical characteristics, personality and emotions, values and attitudes, ability, perception, motivation, individual learning and individual decision making.GroupCommunication, group decision making, leadership and trust, group structure, conflict, power and politics, and work teams.Organization SystemOrganizational culture, human resource policies and practices, and organizational structure and design.

Challenges and Opportunities for OBResponding to GlobalizationManaging Workforce DiversityImproving Customer ServiceImproving People SkillsStimulating Innovation and ChangeCoping with TemporarinessWorking in Networked OrganizationsHelping Employees Balance Work-Life ConflictsCreating a Positive Work EnvironmentImproving Ethical Behavior

Summary and Managerial ImplicationsManagers need to develop their interpersonal skills to be effective.OB focuses on how to improve factors that make organizations more effective.The best predictions of behavior are made from a combination of systematic study and intuition.Situational variables moderate cause-and-effect relationships which is why OB theories are contingent.There are many OB challenges and opportunities for managers today.

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*Modern Times Charlie Chaplin*

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MCQ!!!*

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Team dynamicsMotivation*

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*Job performance: task performance, contextual performance (citizen behavior), Counter-productive performance*