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Chapter 1

Introduction to Organizational Behavior

John M. Ivancevich

Michael T. MattesonSlides Prepared by Bruce R. Barringer

University of Central Florida

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Learning ObjectivesSlide 1 of 2

• Discuss the importance of human resources to organizational success.

• Describe the disciplines that have contributed to the field of organizational behavior.

• Discuss the importance of understanding behavior in organizations.

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Learning ObjectivesSlide 2 of 2

• Explain the goal approach to defining and measuring effectiveness.

• Explain the relationship between quality and organizational effectiveness.

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Forces Reshaping the Process of Management

Cultural DiversityPower of Human Resources

Globalization

Rapid Change New Psychological Contract

Employer-Employee

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The Origins of ManagementSlide 1 of 3

• Early History of Management– Early on, management was a process of trial

and error with little or no theory and virtually no sharing of ideas or practices.

• Industrial Revolution in England– The period between 1700 and 1785 is referred

to as the Industrial Revolution in England.

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The Origins of ManagementSlide 2 of 3

• Industrialization in the U.S.– A new industrial era begin in the U.S. around the

time of the Civil War (early 1860s).– Managers attempted to better plan, organize, and

control the work of their organizations.

• Scientific Management– Frederick Taylor applied scientific methods to

jobs in an attempt to maximize the output of workers.

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The Origins of ManagementSlide 3 of 3

• Henri Fayol– Developed the first comprehensive statement of

a general theory of management.– Defined the functions of management as

planning, leading, organizing, commanding, coordination, and controlling.

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The Functions of Management

Planning

Organizing

Commanding

Coordinating

Controlling

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Fayol’s Contribution to the Field of Management

Management is a separate body of knowledge that can be applied in any type of organization

A theory of management can be learned and taught

There is a need for teaching management in colleges

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The Importance of Studying Organizational Behavior (OB)

Slide 1 of 2

• OB is a way of thinking.

• OB is multidisciplinary.

• There is a distinctly humanistic orientation with OB.

• The field of OB is performance oriented.

• The external environment is seen as having significant impact on OB.

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The Importance of Studying Organizational Behavior (OB)

Slide 2 of 2

• Since the field of OB relies heavily on recognized disciplines, the role of the scientific method is deemed important in studying variables and relationships.

• The field has a distinctive applications orientation.

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The Hawthorne StudiesSlide 1 of 2

• Illumination Study at Western Electric Plant– Uncovered the “Hawthorne Effect”

• Workers felt important because someone was observing and studying them at work. Thus, they produced more because they were observed and studied.

• Bank Wiring Room Study– Discovered that the behavior of an individual

worker is modified by the influence of his or her work group.

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The Hawthorne StudiesSlide 2 of 2

• Overall Conclusions– Economic rewards don’t totally explain worker

behavior. – Workers respond to:

• Group norms

• Social pressures

• Observation

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Exhibit 1.2: Topics in Studying and Understanding Organizational Behavior

The Field of Organizational Behavior Chapters 1 and 2

The Field of Organizational Behavior Chapters 1 and 2

Part IIUnderstanding and Managing Individual Differences

Chapters 3-7

Part IIUnderstanding and Managing Individual Differences

Chapters 3-7

Part IIIGroup Behavior and Interpersonal Influence

Chapters 8-10

Part IIIGroup Behavior and Interpersonal Influence

Chapters 8-10

Part IVOrganizational Processes

Chapters 11-14

Part IVOrganizational Processes

Chapters 11-14

Part VIssues in Organizational Design, Change, and Innovation

Chapters 15-16

Part VIssues in Organizational Design, Change, and Innovation

Chapters 15-16

Environment Environment

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Framing the Study of Organizational Behavior

The Organization’s Environment

The Individual in the Organization

Interpersonal Influence and

Group Behavior

Interpersonal influence and

group behavior are also powerful

forces

Understanding individual behavior is critical for effective

management

Every organization must

respond to the needs of its

environment

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Organizational Structure and DesignSlide 1 of 2

• Structure of the Organization– The structure of the organization refers to the

components of the organization and how these components fit together.

• Job Design– Refers to the processes by which managers

specify the contents, methods, and relationships of jobs and specific task assignments to satisfy both organizational and individual needs.

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Organizational Structure and DesignSlide 2 of 2

• Organizational Processes– A number of behavioral processes contribute to

effective organizational performance including leadership, communication, decision making, and organizational change and development.

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Effectiveness in Organizations

• The Goal Approach– In the view of this approach, an organization

exists to accomplish goals.

• The Systems Approach– Systems theory enables you to describe the

behavior of organizations both internally and externally.

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Exhibit 1.4: The Basic Elements of a System

InputsInputs ProcessProcess

EnvironmentEnvironment

OutputsOutputs

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Systems Theory

• Two Main Conclusions– Effectiveness criteria must reflect the entire

input-process-output cycle, not simply output.– Effectiveness criteria must reflect the

interrelationships between the organization and its outside environment.

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Exhibit 1.5: Time Dimension Model of Effectiveness

Quality

Productivity Efficiency Satisfaction

Quality

Adaptiveness Development

Quality

Survival

Short runShort run Intermediate runIntermediate run Long runLong run

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Criteria for Effectiveness

QualityQuality

AdaptivenessAdaptiveness

ProductivityProductivity

DevelopmentDevelopment EfficiencyEfficiency

SatisfactionSatisfaction