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Chapter 1Nelson & Quick
Introduction: Organizational Behavior in Changing Times
Organizational Behavior
The study of individual behavior and group dynamics in organizations
Psychosocial
OrganizationalBehavior
BehavioralInterpersonal
Organizational Behavior: Dynamics in Organizations
OrganizationalDesign
Organizational Variables that Affect Human Behavior
Jobs
WorkDesign
PerformanceAppraisal
OrganizationalStructure
Communication
HumanBehavior
Human Behaviorin the
Organization
Clockworks or Snake pit?
Organizational vs. Individual Point of View
Internal/External Perspective of Human Behavior
Understand behavior in terms of
External events, environmental forces, & behavioral consequences
Thoughts,feelings, past experiences, and needs
Explain behavior by examining
Surrounding external events & environmental forces
Individuals’ history & personal value system
Internal Perspective External Perspective
Each perspective has produced motivational & leadership theories.
Psychology the science of
human behavior
Management the study of overseeing
activities and supervising people in organizations
Anthropologythe science of the learned behavior of human beings
Medicine the applied science of healing or treatment of
diseases to enhance an individual’s health and
well-being
Engineering the applied science of energy & matter
Sociology the science
of society
Interdisciplinary Influences on Organizational
Behavior
Components of an Organization
Task - an organization’s mission, purpose, or goal for existing
People - the human resources of the organization
Structure - the manner in which an organization’s work is designed at the micro level; how departments, divisions, & the overall organization are designed at the macro level
Technology - the intellectual and mechanical processes used by an organization to transform inputs into products or services that meet organizational goals (ch02)
Open SystemsView of Organization
Outputs: Products Services
Inputs:MaterialCapitalHuman
Task environment:CompetitorsUnionsRegulatory agenciesClients
Structure
Task Technology
People(Actors)
Organizational BoundaryBased on Harold Levitt, “Applied Organizational Change in Industry: Structural, Technological, and Humanistic Approaches,” in J.G.March (ed.), Handbook of Organizations, Rand McNally, Chicago, 1965,p. 1145. Reprinted by permission of James G. March
Formal vs. Informal Organization
Formal Organization - the official, legitimate, and most visible part of the system
Informal Organization - the unofficial and less visible part of the system
Hawthorne Studies: studies conducted during the 1920’s and 1930’s that discovered the existence of the informal organization
Formal & Informal Elements of Organizations
Formal organization (overt)
Goals & objectivesPolicies & procedures
Job descriptionsFinancial resourcesAuthority structure
Communication channelsProducts and services
Informal organization (covert)
Beliefs & assumptions Perceptions & attitudes
ValuesFeelings, such as fear, joy
anger, trust & hopeGroup norms
Informal leaders
SocialSurface
U.S. Gross Domestic Product
Federal purchases State/local purchases
Personal durable goods Personal nondurable goods
Personal Services Fixed investments
Total$9.3 Trillion
38%
17% 6%11%
8%
20%
Six Focus Organizations
Brinker International Enron* Harley Davidson Hewlett-Packard Patagonia American Heart Association
*NOTE: Enron was in a state of turmoil at the time the book went to press. Visit the Nelson/Quick web site for updates on its current situation.
The Challenge of Change
Too much change = chaos Too little change = stagnation
How do you view change?
Threat Opportunity
International Competition in Business
Driving forces creating and shaping change at work Globalization Technology
Success will require: positive response to the competition in the
international marketplace responsiveness to ethnic, religious, and gender
diversity in the workforce
Diversity Ethics
Quality
A potential means for giving organizations in viable industries a competitive edge in international competition
A rubric for products and services that are of high status
A customer-oriented philosophy of management with implications for all aspects of organizational behavior
A cultural value embedded in successful organizations
Cannot be optimized
Is not a fad
Is not an end in itself
Quality
Three key questions in evaluating quality-improvement ideas
1. Does the idea improve customer response?2. Does the idea accelerate results?3. Does the idea raise the effectiveness of resources?
YES means the idea should improve overall quality
Total Quality Management
The total dedication to continuous improvement and to customers so that the customers’ needs are met and their expectations exceeded
CEOs Advance Total Quality by:
Engaging in participative management Being willing to change everything Focusing quality efforts on customer service Including quality as a criterion in reward systems Improving the flow of information regarding
quality-improvement successes or failures Being actively & personally involved in quality
efforts
Seven Categories in the Malcolm Baldrige National Quality Award Examination
Leadership Information and analysis Strategic quality planning Human resource utilization Quality assurance of products & services Quality results Customer satisfaction
Challenges to Managing Organizational Behavior
1. Increasing globalization of organizations’ operating territory
2. Increasing diversity of organizational workforces
3. Continuing technological innovation with its companion need for skill enhancement
4. Continuing demand for higher levels of moral & ethical behavior at work
Learning about Organizational Behavior
Mastery ofbasic objectiveobjective
knowledge*knowledge*
Applicationof knowledge
and skills
Development ofDevelopment ofspecific skills** skills**
and abilities
* Objective knowledge knowledge that results from research and scholarly activities
** Skill development the mastery of abilities essential to successful functioning in organizations
Learning from Structured Activity
Individual or groupstructured activity
(e.g., group decisionactivity)New or modified
knowledge or skills(e.g., consensus
group decisions arebetter)
Systematic reviewof the structured
activity (e.g., compare individual & group results)
Conclusions basedon the systematicreview (e.g., thegroup did better)
Three Assumptions Required for Learning from Structured Activity
Each student must accept responsibility for his/her
own behavior, actions, & learning
Each student must actively participate in the individual/group structured learning activity
Each student must be open to new information, new skills, new ideas, and experimentation
Trends Affecting Managers
Industrial restructuring Increased amount & availability of information Need to attract & retain the best employees Need to understand human & cultural differences Rapid shortening of response times in all aspects of
business
Watchwords for Organizationsin These Changing Times