McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-1

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-2

ChapterChapter

Introduction to Organizational BehaviorIntroduction to Organizational Behavior

11

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-3

IntroductionIntroduction

• Organizations are much more than only a means for providing goods and service

• They create the settings in which most of us spend our lives

• They have profound influence on employee behavior

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-4

The core 21st century

qualities needed to create

the ideal work atmosphere

begin with intelligence,

passion, a strong work ethic,

and a genuine concern for

people.

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-5Managing and Working Today and in the Future:Managing and Working Today and in the Future:

• Managers must become agile and flexible to help their firms develop and sustain competitive advantage

• To be successful, managers will need to harness the powers of:• information technology• human capital

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-6

Rapidity ofChange

New Worker-Employer

PsychologicalContract

Technology

GlobalismCulturalDiversity

Power ofHuman

Resources

Environmental Forces Reshaping Management PracticeEnvironmental Forces Reshaping Management Practice

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-7Challenges of These Forces to Managers

Challenges of These Forces to Managers

• Resisting the reality of these forces will likely lead to:• Unnecessary conflict• Reduced managerial

performance• Reduced non-

managerial performance• Lost opportunities

• Resisting the reality of these forces will likely lead to:• Unnecessary conflict• Reduced managerial

performance• Reduced non-

managerial performance• Lost opportunities

• Failing to cope and deal with these forces will likely result in:• Job dissatisfaction• Poor morale• Reduced commitment• Lower work quality• Burnout• Poor judgment• Unhealthy consequences

• Failing to cope and deal with these forces will likely result in:• Job dissatisfaction• Poor morale• Reduced commitment• Lower work quality• Burnout• Poor judgment• Unhealthy consequences

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-8

The Origins of ManagementThe Origins of Management

Frederic W. Taylor’s Scientific

Management Principles

Henri Fayol’s Functions of Management

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-9Taylor’s Scientific Management Principles

(1 of 2)

Taylor’s Scientific Management Principles

(1 of 2)

• Develop a science for each element of an employee’s work• which replaces the old rule-of-thumb

method

• Scientifically select and then train, teach, and develop the worker• whereas in the past a worker chose the

work to do and was self-trained

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-10Taylor’s Scientific Management Principles

(2 of 2)

Taylor’s Scientific Management Principles

(2 of 2)

• Heartily cooperate with each other to insure that all work was done in accordance with the principles of science

• There is an almost equal division of the work and the responsibility between management and non-managers

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-11Impact of Fayol’s Functions of Management

Impact of Fayol’s Functions of Management

• Emphasized the importance of carefully practicing efficient:• planning• organizing• commanding• coordinating• controlling

• Emphasized the importance of carefully practicing efficient:• planning• organizing• commanding• coordinating• controlling

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

• A theory of management that can be learned and taught

• There is a need for teaching management in colleges

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

• A theory of management that can be learned and taught

• There is a need for teaching management in colleges

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-12Definition of Organizational Behavior (OB)

Definition of Organizational Behavior (OB)

• The study of human behavior, attitudes, and performance within an organizational setting• drawing on theory, methods, and principles from

such disciplines as psychology, sociology, political science, and cultural anthropology

• to learn about individual, groups, structure, and processes

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-13

Key Points About OBKey Points About OB

1. OB is a way of thinking

2. OB is multidisciplinary

3. There is a distinctly humanistic orientation within OB

4. The field of OB is performance-oriented

5. The role of the scientific method is important in studying variables and relationships

6. OB has a distinctive applications orientation

1. OB is a way of thinking

2. OB is multidisciplinary

3. There is a distinctly humanistic orientation within OB

4. The field of OB is performance-oriented

5. The role of the scientific method is important in studying variables and relationships

6. OB has a distinctive applications orientation

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-14

IndividualIndividual

GroupGroup

OrganizationOrganization

OrganizationalOrganizationalBehaviorBehavior

Social PsychologySocial Psychology

Political SciencePolitical Science

AnthropologyAnthropology

PsychologyPsychology

SociologySociology

DisciplineDiscipline Unit of AnalysisUnit of Analysis OutputOutput

Contributions to the Study of Organizational BehaviorContributions to the Study of Organizational Behavior

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-15Studying Organizational Behavior

Studying Organizational Behavior

Leaders and Organizational

Behavior

The Hawthorne Studies

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-16

OrganizationalProcesses

OrganizationalStructure

Change andInnovation

Understandingand Managing

IndividualBehavior

Group Behaviorand

InterpersonalInfluence

TheOrganization’sEnvironment

Topics in Studying and Understanding OB

Topics in Studying and Understanding OB

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-17The Basic Elements of a System

The Basic Elements of a System

InputsInputs ProcessProcess OutputsOutputs

EnvironmenEnvironmentt

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-18

Individual Individual effectivenesseffectiveness

Group Group effectivenesseffectiveness

Organizational Organizational effectivenesseffectiveness

Three Perspectives on Effectiveness

Three Perspectives on Effectiveness

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-19Time Dimension Model of Effectiveness

Time Dimension Model of Effectiveness

QualityQuality QualityQuality QualityQuality• ProductivityProductivity• EfficiencyEfficiency• SatisfactionSatisfaction

• AdaptivenessAdaptiveness• EfficiencyEfficiency• SatisfactionSatisfaction

• SurvivalSurvival

Short run Intermediate run Long run

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-20Systems Theory and Effectiveness (1 of 2)

Systems Theory and Effectiveness (1 of 2)

• 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

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-21Systems Theory and Effectiveness (2 of 2)

Systems Theory and Effectiveness (2 of 2)

• Organizational effectiveness is an all-encompassing concept that includes a number of component concepts

• The managerial task is to maintain the optimal balance among these components

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-22Managers can lead the way to higher levels of effectiveness by: (1 of 2)

Managers can lead the way to higher levels of effectiveness by: (1 of 2)

• Providing opportunities for training and continuous learning

• Sharing information with employees

• Encouraging cross-development partnerships

• Linking compensation to performance

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-23Managers can lead the way to higher levels of effectiveness by: (2 of 2)

Managers can lead the way to higher levels of effectiveness by: (2 of 2)

• Avoiding layoffs

• Being a supportive role model

• Respecting the differences across employees

• Being a good listener

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-24

Key Points (1 of 2)Key Points (1 of 2)

• The key to an organization’s success is its human resources

• Organizations need human resources that:• work hard• think creatively• perform excellently

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

1-25

Key Points (2 of 2)Key Points (2 of 2)

• Rewarding, encouraging, and nurturing the human resources in a timely and meaningful manner is what is required

• The behavior of employees is the key to achieving effectiveness