Download - Chap001 baby
Introduction tothe Field ofOrganizational Behavior
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
1-2
Practicing OB at Brasilata
Brasilata has become one of
Brazil’s most innovative and
productive companies by applying
organizational behavior
knowledge, including employee
involvement, creativity,
motivation, leadership, teamwork,
and organizational culture.
1-3
Organizational Behavior and Organizations
Organizational behavior
• The study of what people think,
feel, and do in and around
organizations
Organizations
• Groups of people who work
interdependently toward some
purpose
• Collective entities – people
interact with each other in an
organized way.
• Collective sense of purpose
1-4
Satisfy the need to understand and predict
Helps us to test personal theories
Influence behavior – get things done
OB improves an organization’s financial
health - leverages human capital
OB is for everyone – regardless of profession
or position one’s hold in the organization
Why Study OB?
1-5
Organizational Effectiveness
The ultimate dependent
variable in OB
Old approach -- achievement of
stated goals
Problem with goal attainment
• Could set easy goals
• Company might achieve wrong
goals
1-6
Four Perspectives of Organizational Effectiveness
Stakeholder Perspective
High-Performance WP Perspective
Organizational Learning Perspective
Open Systems Perspective
NOTE: Need to consider all four perspectives
when assessing a company’s effectiveness
1-7
Organizations are complex systems that
“live” within (and depend upon) the external
environment
Effective organizations
• Maintain a close “fit” with changing conditions
• Transform inputs to outputs efficiently and flexibly
Foundation for the other three organizational
effectiveness perspectives
Open Systems Perspective
1-8
•Products/services
•Shareholder dividends
•Community support
•Waste/pollution
Technological subsystem
Marketing /Sales
subsystem
Production subsystem
subsystem
Engineering
subsystem
Accounting subsystem
•Raw materials
•Human resources
•Information
•Finances
•Equipment
FeedbackFeedback
Managerial subsystem
Transforming inputs to outputs
Open Systems Perspective
External
Environment
External environment - raw materials, job
applicants, financial resources, etc.
Internal subsystems – transform outputs into
inputs e.g. departments, teams, work
processes, etc,
Organization – Environment Fit - effective
when organizations maintain a good “fit with
their external environment.
Internal Subsystems Effectiveness - how
well the organization transforms inputs to
outputs
Open Systems Perspective
McShane/Von Glinow OB 6e © 2013 The McGraw-Hill Companies, Inc. All rights reserved9
1-10
An organization’s capacity to acquire, share,
use, and store valuable knowledge
Need to consider both stock and flow of
knowledge
• Stock: intellectual capital
• Flow: org learning processes
of acquisition, sharing, use,
and storage
Organizational Learning Perspective
1-11
Intellectual Capital
Relationship
CapitalValue derived from satisfied customers,
reliable suppliers, etc.
Structural
Capital
Knowledge captured in systems and
structures (documentation, finished
products)
Human
CapitalKnowledge that people possess and
generate (KSAO)
1-12
Employee knowledge, skills, and abilities
Competitive advantage because:
• Helps discover opportunities and minimize threats
in the external environment
• Rare and difficult to imitate
• Nonsubstitutable: Not easily replaced by
technology
The Human Capital Advantage
1-13
Organizational Learning Processes
Knowledge
Acquisition
Knowledge
Sharing
Knowledge
Use
Knowledge
Storage
• Information and ideas from the external environment (hiring people, acquiring companies, experimentation, etc)
• Communication
• Training
• Info systems
• Observation
• Awareness
• Sensemaking
• Autonomy
• Empowerment
• Human memory
• Documentation
• Practices/habits
• Databases
1-14
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 (unlearn
routines and patterns of behavior, removes
knowledge that no longer adds value)
Organizational Memory
1-15
High-Performance Practices at American Express
American Express encourages
employees to go “off script,”
meaning that they are
empowered to customize their
conversations rather than rely on
memorized statements. This
autonomy is one of several high
performance work practices.
1-16
Workplace practices that leverage the
potential of human capital
Four HPWPs (likely others)
1. Employee involvement
2. Job autonomy (motivation, improve decision-
making, organizational responsiveness, and
commitment to change)
3. Employee competence (training, selection of
people with KSAO)
4. Performance-based rewards (financial and non-
financial rewards valued by employees)
Need to “bundle” them – work best together
High-Performance Work Practices
1-17
Corporate Social Responsibility at MTN Group in Africa
At MTN Group, Africa’s largest
mobile (cell) phone company,
employees help the community
and environment through the
company’s award-winning “21
Days of Y’ello Care” program.
This photo shows MTN
employees in Uganda planting
trees during a Y’ello Care event.
1-18
Stakeholder Perspective
Stakeholders: entities who affect
or are affected by the firm’s
objectives and actions
Personalizes the open systems
perspective (identifies people
and social entities in the
environment
Challenges with stakeholder
perspective:
• Stakeholders have conflicting
interests
• Firms have limited resources to
satisfy all stakeholder needs
1-19
Values and ethics prioritize stakeholder
interests
Values
• Stable, evaluative beliefs, guide preferences for
outcomes or courses of action in various situations
Ethics
• Moral principles/values, determine whether actions
are right/wrong and outcomes are good or bad
Stakeholders: Values and Ethics
1-20
Stakeholders and CSR
Stakeholder perspective includes
corporate social responsibility
(CSR)
• Benefit society and environment
beyond the firm’s immediate
financial interests or legal
obligations
• Organization’s contract with
society
Triple bottom line
• Economy, society, environment
1-21
Economic, social, and cultural connectivity
with people in other parts of the world
Improved communication and transportation
systems have increased globalization
Effects of globalization on organizations
• Cost efficiencies, innovation, knowledge
• Increasing diversity (cultural values, leadership,
etc)
• Increasing competitive pressures, intensification
(additional knowledge and skills, global mindset)
Globalization
1-22
Increasing Workforce Diversity
Surface-level vs deep-level
diversity
Implications
• Better knowledge, decisions,
representation, financial returns
• Manage challenges of diversity
(e.g. teams, conflict)
• Ethical imperative of diversity
1-23
Work/life balance
• Minimizing conflict between work and nonwork
demands number one indicator of career success
Virtual work
• Using information technology to perform one’s job
away from the traditional physical workplace
• Telecommuting – issues of social isolation,
emphasis on face time, employee self-leadership
Emerging Employment Relationships
1-24
Systematic research anchor
• OB knowledge is built on systematic research
• Evidence-based management – decisions and
actions based on research evidence rather than
fads, hype, and untested assumptions
Multidisciplinary anchor
• Many OB concepts adopted from other disciplines,
psychology (individual and interpersonal behavior),
sociology, communications, marketing, info
systems.
• OB develops its own theories, but scans other
fields
Organizational Behavior Anchors
1-25
Contingency anchor
• A particular action may have different
consequences in different situations (no single
solution is best all the time)
• Need to diagnose the situation and select best
strategy under those conditions
Multiple levels of analysis anchor
• Individual, team, organizational level of analysis
• OB topics usually relevant at all three levels of
analysis
Organizational Behavior Anchors (con’t)
Introduction tothe Field ofOrganizational Behavior