Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1 C H
A
P
T
E
R
Intro to Organizational
Behavior
?DISCUSS the importance of human resources to
organizational success
?DESCRIBE the discipline that have contributed to
the field of organizational behavior
?DISCUSS the importance of understanding
behavior in organizations
?EXPLAIN the goal approach to defining and
measuring effectiveness
?EXPLAIN the relationship between quality and
organizational effectiveness
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-3
External Environmental Influences
Rapidity of
Change
Power of
Human Resources
Technology Cultural
diversity
Globalism
New employer-
employee
psychological
contract
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-4
Origins of Management
?Early history
? Little to no theory or
sharing of practices
?Industrial Revolution
? Altered working
conditions and
management emphasis
?Scientific Management
(Taylor)
? Focused on the job and
efficiencies
?Functions of Management
(Fayol)
? Defined 14 Principles of
Management and the
management functions
? Formed the bedrock for future
theory,education,and
research
?Human Relations
Movement (Follett,Mayo)
? Focused on the worker and
individual differences
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-5
Studying Organizational Behavior
Organizational Behavior (OB) is the
study of human behavior,attitudes,
and performance within an
organizational setting; drawing on
theory,methods,and principles
from such disciplines as psychology,
sociology,and cultural anthropology
to learn about individual,groups
structure,and processes,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-6
Organizational Behavior Is,
A Way of
Thinking
Humanistic
orientation
Applications-
oriented
Multi-
disciplinary
A Scientific
Method
Performance-
oriented
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-7
Human Relations Movement,
The Hawthorne Studies
? Tested the impact of
various work settings and
variables on productivity
? Uncovered the
“Hawthorne Effect”
? Workers produced more
because managers paid
attention to them,
? Shifted management
focus from purely
economic to humanistic
? Tested the influence of
individual and group
behavior
? Workers’ output
influenced by,
? Group norms
? Social pressures
? Informal organization
? Impetus for field of
organizational behavior
ILLUMINATION STUDY WIRING ROOM STUDY
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-8
Framing the Study of
Organizational Behavior
THE ORGANIZATION’S ENVIRONMENT
The Individual in
the Organization
Interpersonal
Influence and
Group Behavior
Organizational
Processes
Organizational
Design,Change,
& Innovation
?Individual
characteristics
?Individual
motivation
?Rewards
?Stress
?Group behavior
and work teams
?Intergroup
conflict and
negotiations
?Organizational
power and
politics
?Leadership
?Communications
?Decision making
?Organizational
structure and
design
?Managing
organizational
change and
innovation
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-9
Group Behavior,Types of Groups
Formal groups (Management action)
?Established by managers to achieve
organizational goals through assigned
jobs and tasks
?Groups may be departmental,functional,cross-
functional,cross-cultural,self-managed,or task
Informal Groups (Individual action)
?Formed as a consequence of employees’ action
?Developed around common interest,
proximity,friendship
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-10
Effectiveness in Organizations
Organizational
Group
Individual
Levels of Analysis
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-11
Defining/Measuring Effectiveness
The Goal Approach
? Organizations exist to accomplish goals
? Organizations,groups,and individuals evaluated
along goal attainment criteria
? e.g.,Management by Objectives (MBO)
? Problematic in practice
? Measuring intangible outputs
? Attaining multiple and interdependent goals
? Agreeing to a common set of official goals
? Meeting stated goals is no assurance of effectiveness
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-12
Defining/Measuring Effectiveness
Inputs Process
Environment
Outputs
The Systems Approach
?Organizations as one of many internal and
external interdependent elements
?Flow of inputs and outputs (input-output
cycle)
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-13
Important Considerations
The Systems Approach
Survival Depends on
Adaptability
Effectiveness criteria must
reflect the inter-
relationships between,
?The organization
?Its outside
environment
The Total Input-
Output Cycle
Effectiveness criteria must
reflect,
?The entire input-
process-output cycle
?Not simply output
A Learning Organization
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-14
Time Dimension Model
of Effectiveness
Effectiveness Criteria
? Overarching criteria is Quality
? Other indicators vary by time horizon
? Criteria relevant for particular purposes
Quality
Survival
Short run
(? 1 year)
Intermediate run
(1-5 years)
Long run
(? 5 years)
Quality
Adaptiveness
Development
Quality
Productivity
Efficiency
Satisfaction
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-15
Criteria of Effectiveness
Quality
Adaptiveness
Productivity
Development Efficiency
Satisfaction
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-16
QUALITIES OF THE SUCCESSFUL MANAGER
Selected Functions of Management
? Selects the right people to
staff the organization
? Understands the financial
implications of decisions
? Encourages innovation
and new ideas
? Gives subordinates clear-
cut decisions
? Consistently demonstrates
high level of integrity
? Provides clear
direction
? Encourages open
communications
? Coaches and supports
people
? Provides objective
recognition
? Establishes ongoing
controls
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-17
First-Line Management
? Responsible for basic work of the organization
? A.k.a,- supervisors,office managers
Selected Functions of Management
TYPES OF MANAGERS
Middle Management
? Plan,organize,lead and control work of other managers
? A.k.a - departmental manager,plant manager,director
Top Management
? Responsible for the entire organization
? A.k.a,- CEO,president,vice president
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-18
MANAGERIAL SKILLS
?Ability or proficiency
in performing
particular tasks
?Learned and developed
?Vary by level in the
organization
Selected Functions of Management
Technical Skills
Analytical Skills
Decision-making Skills
Computer Skills
Human Relations Skills
Communication Skills
Conceptual Skills
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-19
?Set of expected
behaviors associated
with a manager
?Learned and developed
?Vary by level in the
organization
MANAGERIAL ROLES
Selected Functions of Management
Interpersonal Roles
?Figurehead
?Leader
?Liaison
Informational Roles
?Monitor
?Disseminator
?Spokesperson
Decisional Roles
?Entrepreneur
?Disturbance Handler
?Resource Allocator
?Negotiator
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-20
Primary Management Functions
PLANNING
ORGANIZING
DIRECTING
CONTROLLING
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-21
The Planning Function
Planning includes all activities that
lead to the definition of objectives
and to the determination of
appropriate courses of action to
achieve those objectives,
Benefits of Planning,
?Forces managers to think ahead
?Leads to development of performance standards
?Forces managers to articulate clear objectives
?Enables an organization to be better prepared
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-22
The Elements of Planning
Objectives,specify future conditions
Actions,specified,preferred means
Resources,constraints on the courses of action
Implementation,assignments to carry out plans
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-23
Strategic Planning
Strategic Planning Process,
Mission
Objectives
Strategies
Portfolio plan
Strategic Planning involves taking information
from the environment and deciding upon an
organizational mission and upon objectives,
strategies,and a portfolio plan,
Strategic Plan
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-24
The Controlling Function
Controlling consists of actions and
decisions managers undertake to ensure
that actual results are consistent with
desired results,
Basic Conditions,
? Standards - stated clearly and relate to objectives
? Information - reports actual results or
performance
? Corrective action - depends on the discovery of
deviations
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-25
Control Methods
PRECONTROL
?Increase probability that future actual and planned results
will compare favorably
?Includes policies involving human,capital,and financial
resources
CONCURRENT
?Actions of supervisors who direct the work of subordinates
?instruct subordinates on proper methods
?oversee work performance
?Depends on the nature of the tasks performed
FEEDBACK
?Employs historical outcomes as bases for correcting future
action
?Most difficult is performance evaluation
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-26
Behavioral Science
Research Techniques
Understanding Organizations
?Sources of Knowledge about organizations
? e.g.,see Exhibit 1.8
?History as a way of knowing
?Experience as a way of knowing
?Science as a way of knowing
? Research in behavioral science
? The Scientific Method
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-27
The Scientific Method of Inquiry
The Scientific Approach is an objective,
systematic,and controlled process with
built-in checks all along
the way to knowledge (see Exhibit 1.9),
Methods of Inquiry/Research,
Case Study
Field Study
Experiment
Meta-Analysis
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-28
The Scientific Method of Inquiry
Laboratory Experiments
? Environment created by
the researcher
? Attempts at a,true
experiment”
? Useful when conditions
to study are not
practically or readily
obtainable
? Run the risk of
“artificiality”
Field Experiments
? Researcher attempts to
manipulate or control
variables in the natural
setting
? Difficult to control all
possible variables
? Possible,Hawthorne
effects”
? Results in a,quasi-
experiment”
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-29
The Scientific Method of Inquiry
Qualitative methods describe an array of
interpretative techniques that attempt to
describe and clarify the meaning of
naturally occurring phenomena,
?Analytical induction
?Proximity
?Ordinary behavior
CHARACTERISTICS,
?Descriptive behavior
?Shrinking variance
?Enlightening the
consumer
Some examples,ethnographic method,
content analysis,historical analyses
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1 C H
A
P
T
E
R
Intro to Organizational
Behavior
?DISCUSS the importance of human resources to
organizational success
?DESCRIBE the discipline that have contributed to
the field of organizational behavior
?DISCUSS the importance of understanding
behavior in organizations
?EXPLAIN the goal approach to defining and
measuring effectiveness
?EXPLAIN the relationship between quality and
organizational effectiveness
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-3
External Environmental Influences
Rapidity of
Change
Power of
Human Resources
Technology Cultural
diversity
Globalism
New employer-
employee
psychological
contract
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-4
Origins of Management
?Early history
? Little to no theory or
sharing of practices
?Industrial Revolution
? Altered working
conditions and
management emphasis
?Scientific Management
(Taylor)
? Focused on the job and
efficiencies
?Functions of Management
(Fayol)
? Defined 14 Principles of
Management and the
management functions
? Formed the bedrock for future
theory,education,and
research
?Human Relations
Movement (Follett,Mayo)
? Focused on the worker and
individual differences
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-5
Studying Organizational Behavior
Organizational Behavior (OB) is the
study of human behavior,attitudes,
and performance within an
organizational setting; drawing on
theory,methods,and principles
from such disciplines as psychology,
sociology,and cultural anthropology
to learn about individual,groups
structure,and processes,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-6
Organizational Behavior Is,
A Way of
Thinking
Humanistic
orientation
Applications-
oriented
Multi-
disciplinary
A Scientific
Method
Performance-
oriented
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-7
Human Relations Movement,
The Hawthorne Studies
? Tested the impact of
various work settings and
variables on productivity
? Uncovered the
“Hawthorne Effect”
? Workers produced more
because managers paid
attention to them,
? Shifted management
focus from purely
economic to humanistic
? Tested the influence of
individual and group
behavior
? Workers’ output
influenced by,
? Group norms
? Social pressures
? Informal organization
? Impetus for field of
organizational behavior
ILLUMINATION STUDY WIRING ROOM STUDY
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-8
Framing the Study of
Organizational Behavior
THE ORGANIZATION’S ENVIRONMENT
The Individual in
the Organization
Interpersonal
Influence and
Group Behavior
Organizational
Processes
Organizational
Design,Change,
& Innovation
?Individual
characteristics
?Individual
motivation
?Rewards
?Stress
?Group behavior
and work teams
?Intergroup
conflict and
negotiations
?Organizational
power and
politics
?Leadership
?Communications
?Decision making
?Organizational
structure and
design
?Managing
organizational
change and
innovation
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-9
Group Behavior,Types of Groups
Formal groups (Management action)
?Established by managers to achieve
organizational goals through assigned
jobs and tasks
?Groups may be departmental,functional,cross-
functional,cross-cultural,self-managed,or task
Informal Groups (Individual action)
?Formed as a consequence of employees’ action
?Developed around common interest,
proximity,friendship
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-10
Effectiveness in Organizations
Organizational
Group
Individual
Levels of Analysis
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-11
Defining/Measuring Effectiveness
The Goal Approach
? Organizations exist to accomplish goals
? Organizations,groups,and individuals evaluated
along goal attainment criteria
? e.g.,Management by Objectives (MBO)
? Problematic in practice
? Measuring intangible outputs
? Attaining multiple and interdependent goals
? Agreeing to a common set of official goals
? Meeting stated goals is no assurance of effectiveness
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-12
Defining/Measuring Effectiveness
Inputs Process
Environment
Outputs
The Systems Approach
?Organizations as one of many internal and
external interdependent elements
?Flow of inputs and outputs (input-output
cycle)
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-13
Important Considerations
The Systems Approach
Survival Depends on
Adaptability
Effectiveness criteria must
reflect the inter-
relationships between,
?The organization
?Its outside
environment
The Total Input-
Output Cycle
Effectiveness criteria must
reflect,
?The entire input-
process-output cycle
?Not simply output
A Learning Organization
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-14
Time Dimension Model
of Effectiveness
Effectiveness Criteria
? Overarching criteria is Quality
? Other indicators vary by time horizon
? Criteria relevant for particular purposes
Quality
Survival
Short run
(? 1 year)
Intermediate run
(1-5 years)
Long run
(? 5 years)
Quality
Adaptiveness
Development
Quality
Productivity
Efficiency
Satisfaction
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-15
Criteria of Effectiveness
Quality
Adaptiveness
Productivity
Development Efficiency
Satisfaction
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-16
QUALITIES OF THE SUCCESSFUL MANAGER
Selected Functions of Management
? Selects the right people to
staff the organization
? Understands the financial
implications of decisions
? Encourages innovation
and new ideas
? Gives subordinates clear-
cut decisions
? Consistently demonstrates
high level of integrity
? Provides clear
direction
? Encourages open
communications
? Coaches and supports
people
? Provides objective
recognition
? Establishes ongoing
controls
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-17
First-Line Management
? Responsible for basic work of the organization
? A.k.a,- supervisors,office managers
Selected Functions of Management
TYPES OF MANAGERS
Middle Management
? Plan,organize,lead and control work of other managers
? A.k.a - departmental manager,plant manager,director
Top Management
? Responsible for the entire organization
? A.k.a,- CEO,president,vice president
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-18
MANAGERIAL SKILLS
?Ability or proficiency
in performing
particular tasks
?Learned and developed
?Vary by level in the
organization
Selected Functions of Management
Technical Skills
Analytical Skills
Decision-making Skills
Computer Skills
Human Relations Skills
Communication Skills
Conceptual Skills
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-19
?Set of expected
behaviors associated
with a manager
?Learned and developed
?Vary by level in the
organization
MANAGERIAL ROLES
Selected Functions of Management
Interpersonal Roles
?Figurehead
?Leader
?Liaison
Informational Roles
?Monitor
?Disseminator
?Spokesperson
Decisional Roles
?Entrepreneur
?Disturbance Handler
?Resource Allocator
?Negotiator
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-20
Primary Management Functions
PLANNING
ORGANIZING
DIRECTING
CONTROLLING
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-21
The Planning Function
Planning includes all activities that
lead to the definition of objectives
and to the determination of
appropriate courses of action to
achieve those objectives,
Benefits of Planning,
?Forces managers to think ahead
?Leads to development of performance standards
?Forces managers to articulate clear objectives
?Enables an organization to be better prepared
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-22
The Elements of Planning
Objectives,specify future conditions
Actions,specified,preferred means
Resources,constraints on the courses of action
Implementation,assignments to carry out plans
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-23
Strategic Planning
Strategic Planning Process,
Mission
Objectives
Strategies
Portfolio plan
Strategic Planning involves taking information
from the environment and deciding upon an
organizational mission and upon objectives,
strategies,and a portfolio plan,
Strategic Plan
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-24
The Controlling Function
Controlling consists of actions and
decisions managers undertake to ensure
that actual results are consistent with
desired results,
Basic Conditions,
? Standards - stated clearly and relate to objectives
? Information - reports actual results or
performance
? Corrective action - depends on the discovery of
deviations
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-25
Control Methods
PRECONTROL
?Increase probability that future actual and planned results
will compare favorably
?Includes policies involving human,capital,and financial
resources
CONCURRENT
?Actions of supervisors who direct the work of subordinates
?instruct subordinates on proper methods
?oversee work performance
?Depends on the nature of the tasks performed
FEEDBACK
?Employs historical outcomes as bases for correcting future
action
?Most difficult is performance evaluation
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-26
Behavioral Science
Research Techniques
Understanding Organizations
?Sources of Knowledge about organizations
? e.g.,see Exhibit 1.8
?History as a way of knowing
?Experience as a way of knowing
?Science as a way of knowing
? Research in behavioral science
? The Scientific Method
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-27
The Scientific Method of Inquiry
The Scientific Approach is an objective,
systematic,and controlled process with
built-in checks all along
the way to knowledge (see Exhibit 1.9),
Methods of Inquiry/Research,
Case Study
Field Study
Experiment
Meta-Analysis
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-28
The Scientific Method of Inquiry
Laboratory Experiments
? Environment created by
the researcher
? Attempts at a,true
experiment”
? Useful when conditions
to study are not
practically or readily
obtainable
? Run the risk of
“artificiality”
Field Experiments
? Researcher attempts to
manipulate or control
variables in the natural
setting
? Difficult to control all
possible variables
? Possible,Hawthorne
effects”
? Results in a,quasi-
experiment”
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
1-29
The Scientific Method of Inquiry
Qualitative methods describe an array of
interpretative techniques that attempt to
describe and clarify the meaning of
naturally occurring phenomena,
?Analytical induction
?Proximity
?Ordinary behavior
CHARACTERISTICS,
?Descriptive behavior
?Shrinking variance
?Enlightening the
consumer
Some examples,ethnographic method,
content analysis,historical analyses
