Organizational Organizational Behavior, 8eBehavior, 8e
Schermerhorn, Hunt, and Schermerhorn, Hunt, and OsbornOsborn
Prepared by
Michael K. McCuddy
Valparaiso University
John Wiley & Sons, Inc.
Organizational Behavior: Chapter 1 2
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Organizational Behavior: Chapter 1 3
Chapter 1Organizational Behavior Today
Study questions.1. What is organizational behavior and why is it
important?
2. How do we learn about organizational behavior?
3. What are organizations like as work settings?
4. What is the nature of managerial work?
5. How do ethics influence human behavior in organizations?
Organizational Behavior: Chapter 1 4
1. What is organizational behaviorand why is it important?
Organizational behavior.
a. Study of individuals and groups in organizations.
b. Emphasizes high performance organizations ways to increase job satisfaction and performance among employees
c. Occurs in a global context.
d. Dimensions of individual and group behavior.
e. Nature of organizations.
f. Core processes.
Organizational Behavior: Chapter 1 5
a. Organizational Behavior Defined
Organizational Behavior (OB)– The study of what people think, feel and do in and
around organizations
Organizations– Groups of people who work interdependently toward
some purposes• Structured patterns of interactions
• Coordinated tasks
• Work toward some purpose
Organizational Behavior: Chapter 1 6
Organizational Behavior in Context
Organizational Organizational Behavior Behavior
Organizational Organizational TheoryTheory
PersonalityPersonality EmotionsEmotionsValue SystemValue System
BehaviorBehavior PerceptionsPerceptionsMotivationMotivation Learning StylesLearning Styles
KSAOsKSAOs
Physical AttributesPhysical Attributes CognitionsCognitions
(Meso)
(Micro)
(Macro)
TeamsTeams ConflictConflict
LeadershipLeadershipStressStress
StructureStructureOrganizational Organizational DevelopmentDevelopmentCultureCulture
Organizational Organizational ChangeChange
Industry Industry EnvironmentEnvironment
Organizational Behavior: Chapter 1 7
OrganizationalOrganizationalBehaviorBehaviorResearchResearch
UnderstandUnderstandorganizationalorganizational
eventsevents
PredictPredictorganizationalorganizational
eventsevents
InfluenceInfluenceorganizationalorganizational
eventsevents
Why Study Organizational Behavior
Organizational Behavior: Chapter 1 8
What is organizational behaviorand why is it important?
Shifting paradigms of organizational behavior.– Demise of “command-and-control.”– Emergence of new workplace expectations.– Critical role of information technologies.– Belief in empowerment.– Emphasis on teamwork.– Concern for work-life balance.
Organizational Behavior: Chapter 1 9
What is organizational behaviorand why is it important?
Organizational behavior and diversity.– Workforce diversity is the presence of
differences based on:• Gender.• Race and ethnicity.• Age.• Able-bodiedness.
Organizational Behavior: Chapter 1 10
What is organizational behaviorand why is it important?
Organizational behavior and diversity — cont.
– Valuing diversity is a core OB theme.
• Interpersonal and cultural sensitivity.
– Glass ceiling effect – hidden barrier limiting the career advancement of women and minorities
• Women and minorities as managers and executives.
• Earnings of women and minorities.
Organizational Behavior: Chapter 1 11
2. How do we learn aboutorganizational behavior?
Organizational behavior and the learning imperative.– Organizational learning is the process of
acquiring knowledge and utilizing information to adapt successfully to changing circumstances.
– Necessity of life-long learning.
Organizational Behavior: Chapter 1 12
3. How do we learn aboutorganizational behavior?
Scientific foundations of organizational behavior.
– Interdisciplinary body of knowledge: psychology,
sociology and anthropology and social sciences
– Use of scientific methods (next slide)
– Focus on application, eg.: job satisfaction, task
performance
– Contingency thinking: how different situations can be
best understood and handled
Organizational Behavior: Chapter 1Schermerhorn, Osborn, & Hunt/Organizational Behavior 7eChapter 1, Figure 2
Organizational Behavior: Chapter 1 14
3. What are organizations like as work settings?
An organization is a collection of people
working together in a division of labor to
achieve a common purpose.
Applies to:
– A wide variety of clubs, institutions, agencies,
businesses, and other organized entities.
Organizational Behavior: Chapter 1 15
What are organizationslike as work settings?
Purpose, mission, and strategies.
– Core purpose of an organization.
– Mission and vision.
– Mission statements.
Organizational Behavior: Chapter 1 16
Reebok: "Our purpose is to ignite a passion for winning, to do the extraordinary, and to capture the customer’s heart and mind."
Walt Disney: "To make people happy." Wal-Mart: "To give ordinary folk the
chance to buy the same things as rich people."
The Body Shop: "Tirelessly work to narrow the gap between principle and practice whilst making fun, passion and care part of our daily lives."
Marks and Spencer: "Our mission is to make aspirational quality accessible to all."
Organizational Behavior: Chapter 1 17
Sony: "Our mission is to experience the joy of advancing and applying technology for the benefit of the public."
Coca Cola: "The basic proposition of our business is simple, solid and timeless. When we bring refreshment, value, joy and fun to our stakeholders, then we successfully nurture and protect our brands."
3M: "To solve unsolved problems innovatively.“
Glaxo: "We are an integrated, research-based group of companies whose corporate purpose is to create, discover, develop, manufacture, and market safe effective medicines throughout the world."
Organizational Behavior: Chapter 1 18
What are organizationslike as work settings?
People and work systems.
– Intellectual capital
• The sum total of knowledge, expertise, and
dedication of an organization’s workforce.
– Human resources.
– Material resources.
Organizational Behavior: Chapter 1 19
What are organizationslike as work settings?
Organizations as open systems.– Organizations obtain resource inputs from the
environment.– Organizations transform resource inputs.– Organizations return transformed inputs to the
environment as outputs in the form of goods and services.
Organizational Behavior: Chapter 1 20
Open Systems Anchor of OB
FeedbackFeedback
FeedbackFeedback
Organizational Behavior: Chapter 1 21
4. What is the nature of managerial work?
Managers:– Perform jobs that involve directly supporting
the work efforts of others.
– Help other people get important things done in timely, high-quality, and satisfying ways.
– Assume roles such as coordinator, coach, or team leader.
Organizational Behavior: Chapter 1 22
What is the nature of managerial work?
The nature of managerial work.– Managers work long hours.
– Managers are busy people.
– Managers are often interrupted.
– Managers work mostly with other people.
– Managers are communicators.
Organizational Behavior: Chapter 1 23
What is the nature of managerial work?
The management process.– An effective manager is one whose
organizational unit, group, or team consistently achieves its goals while its members remain capable, committed, and enthusiastic.
– Key results of effective management:• Task performance.• Job satisfaction.
Organizational Behavior: Chapter 1 24
Management FunctionsManagement Functions
PlanningPlanningPlanningPlanning OrganizingOrganizingOrganizingOrganizing
LeadingLeadingLeadingLeadingControllingControllingControllingControlling
ManagementManagementFunctionsFunctions
ManagementManagementFunctionsFunctions
Organizational Behavior: Chapter 1 25
What is the nature of managerial work?
Functions of management.– Planning.
• Defining goals, setting specific performance objectives, and identifying the actions needed to achieve them.
– Organizing.• Creating work structures and systems, and
arranging resources to accomplish goals and objectives.
Organizational Behavior: Chapter 1 26
What is the nature of managerial work?
Functions of management — cont.– Leading.
• Instilling enthusiasm by communicating with others, motivating them to work hard, and maintaining good interpersonal relations.
– Controlling.• Ensuring that things go well by monitoring
performance and taking corrective action as necessary.
Organizational Behavior: Chapter 1 27
What is the nature of managerial work?
Managerial roles.– Interpersonal roles.
• Figurehead: hosting and attending official ceremonies• Leader• Liaison: maintaining contacts with important people
– Informational roles.• Monitor: seeking out relevant information• Disseminator: sharing information with insiders• Spokesperson: sharing information with outsiders
Organizational Behavior: Chapter 1 28
What is the nature of managerial work?
Managerial roles — cont.– Decisional roles.
• Entrepreneur: seeking problems to solve and opportunities to explore
• Disturbance handler: help to resolve conflict• Resource allocator• Negotiator
Organizational Behavior: Chapter 1 29
Mintzberg’s Managerial RolesMintzberg’s Managerial Roles
E X H I B I T 1–1E X H I B I T 1–1Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973
by H. Mintzberg. Reprinted by permission of Pearson Education.
Organizational Behavior: Chapter 1 30
Mintzberg’s Managerial Roles (cont’d)Mintzberg’s Managerial Roles (cont’d)
E X H I B I T 1–1 (cont’d)E X H I B I T 1–1 (cont’d)Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973
by H. Mintzberg. Reprinted by permission of Pearson Education.
Organizational Behavior: Chapter 1 31
Mintzberg’s Managerial Roles (cont’d)Mintzberg’s Managerial Roles (cont’d)
E X H I B I T 1–1 (cont’d)E X H I B I T 1–1 (cont’d)Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973
by H. Mintzberg. Reprinted by permission of Pearson Education.
Organizational Behavior: Chapter 1 32
What is the nature of managerial work?
Managerial skills and competencies.
– A skill is an ability to translate knowledge into
action that results in a desired performance.
– Categories of skills:
• Technical.
• Human.
• Conceptual.
Organizational Behavior: Chapter 1 33
What is the nature of managerial work?
Managerial skills and competencies — cont.– Technical skills are relatively more important
at entry levels.– Human skills are consistently important across
all managerial levels.– Conceptual skills are relatively more
important at top management levels.
Organizational Behavior: Chapter 1 34
What is the nature of managerial work?
Managerial skills and competencies— cont.– Technical skills.
• An ability to perform specialized tasks.
• Derives from knowledge of expertise gained from education or experience.
• Proficiency at using select methods, processes, and procedures to accomplish tasks.
Organizational Behavior: Chapter 1 35
What is the nature of managerial work?
Managerial skills and competencies — cont.– Human skills.
• An ability to work well with other people.• Emerges as a spirit of trust, enthusiasm, and
genuine involvement in interpersonal relationships.• Self-awareness.• Capacity for understanding and empathizing.• Engages in persuasive communication.• Deals successfully with conflicts.
Organizational Behavior: Chapter 1 36
What is the nature of managerial work?
Managerial skills and competencies — cont.– Conceptual skills.
• An ability to see and understand how the system works, and how the parts are interrelated.
• Used to:– Identify problems and opportunities.– Gather and interpret relevant information.– Make good problem-solving decisions.
Organizational Behavior: Chapter 1 37
5. How do ethics influence human behavior in organizations?
Ethical behavior.– “Good” and “right” as opposed to “bad” or “wrong” in
a particular setting.– Ways of thinking about ethical behavior.
• Utilitarian view: the needs of many may outweigh the needs of few
• Individualism view: best for individual long term self-interest• Moral rights view.• Justice view.
Organizational Behavior: Chapter 1 38
How do ethics influence human behavior in organizations?
Ethical dilemmas in the workplace.– Nature of an ethical dilemma.– Ethical dilemmas occur in relationships with:
• Superiors.• Subordinates.• Customers.• Competitors.• Suppliers.• Regulators.
Organizational Behavior: Chapter 1 39
How do ethics influence human behavior in organizations?
Ethical dilemmas in the workplace — cont.– Rationalizations for unethical behavior:
• Pretending the behavior is not really unethical or illegal.
• Saying the behavior is really in the organization’s or person’s best interest.
• Assuming the behavior is acceptable if others don’t find out about it.
• Presuming that superiors will support and protect you.
Organizational Behavior: Chapter 1 40
How do ethics influence human behavior in organizations?
Organizational social responsibility.– The obligation of organizations to behave in
ethical and moral ways as institutions of the broader society.
– Managers should commit organizations to:• Pursuit of high productivity.• Corporate social responsibility.
Organizational Behavior: Chapter 1 41
How do ethics influence human behavior in organizations?
Work and the quality of life.– Quality of work life (QWL).
• The overall quality of human experience in the workplace.
– QWL commitment reflects an endorsement of Theory Y assumptions.
– Work-life balance.• Job demands should fit personal life and nonwork
responsibilities.
Organizational Behavior: Chapter 1 42
Enter Organizational BehaviorEnter Organizational Behavior
Organizational behavior (OB)
A field of study that investigates the impact that individuals, groups,
and structure have on behavior within organizations, for the
purpose of applying such knowledge toward improving an
organization’s effectiveness.