Introduction to Organizational Behavior

Understanding andManaging

OrganizationalBehavior

Chapter 1

Sixth EditionJennifer M. George & Gareth R. Jones

1-1Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Learning 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 among the three levels at which organizational behavior is examined

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Learning 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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Xerox’s CEOs turn the company around

At Xerox, Mulcahy and Burns found a way to create a set of new organizational behaviors

• Favorable work situation has been created because Xerox: Strives to increase employees’ skills and knowledge

Provides employees at all levels with rewards to encourage high performance

Creates a work setting in which employees develop a longer-term commitment to their organization

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What Is an Organization?

An organization is a collection of

people who work together and

coordinate their actions to achieve

a wide variety of goals

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What Is Organizational Behavior?

Organizational behavior (OB) is 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

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Insert Exhibit 1.1 here

What Is Organizational Behavior?

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Exhibit 1.1

Levels of Analysis

Exhibit 1.2

Group Level

Individual Level

Organizational Level

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Components of Organizational Behavior

Understanding organizational behavior

requires studying

Part One Individuals in Organizations

Part Two Group and Team Processes

Part Three Organizational Processes

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Exhibit 1.3

Why Study OB?

• To understand behavior in organizations

• To learn to use and apply concepts, theories,

and techniques to improve, enhance, or

change behavior

• To enable managers to direct and supervise

the activities of employees

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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 ManagementExhibit 1.4

PlanningDecide on organizational goals

and allocate and use resources to

achieve those goals

OrganizingEstablish the rules and

reporting relationships thatallow people to

achieve organizational goals

ControllingEvaluate how well the

organization is achieving goals and take action to

maintain, improve, and correctperformance

LeadingEncourage and coordinate

individuals and groups so that they work

toward organizational goals

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OB Today: Trader Joe’s a Success Story

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Managerial Roles

Leader

Monitor

Spokesperson

Disturbance handler

Negotiator

Figurehead

Liaison

Disseminator

Entrepreneur

Resource allocator

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Managerial Skills

Conceptual Skills Technical Skills

Human Skills

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An Open Systems View of Organizational Behavior

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Exhibit 1.6

Challenges for OB

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 workforce

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Diversity Challenges

Fairness and Justice

Decision Making and Performance

Flexibility

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Challenges Created by Diverse Workforces

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Exhibit 1.7

Evolving Global Environment

Understanding Global Differences

Global Learning

Global Crisis Management

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Crisis Management Decisions

Creating teams to facilitate rapid decision making and communication

Establishing the organizational chain of command and reporting relationships necessary to mobilize a fast response

Recruiting and selecting the right people to lead and work in such teams

Developing bargaining and negotiating strategies to manage conflicts that arise whenever people and groups have different interests and objectives

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Advancing Information Technology

Organizational

Learning

Creativity

Innovation

Information

Knowledge

Information

Technology

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Shifting Work/Employment Relationships

Downsizing

Empowerment and Self-Managed Teams

Contingent Workers

Outsourcing

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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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Appendix 1A:

F.W. Taylor and Scientific Management

Scientific management is 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 labor1-26Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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

procedures1-27Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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 1-28Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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 lowered1-30Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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 YEmployees will do what

is good for the organization when committed

Managers must create setting to encourage commitment to goals and provide opportunities for initiative

Theory XAverage 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

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