Business Leadership and
Organizational Behavior
Business Leadership and
Organizational Behavior
Introduction to Organizational
Behavior
Craig W. Fontaine, Ph.D.
Section 1:
Various Views & Perspectives of Organizations
Section 1:
Various Views & Perspectives of Organizations
Task – an organization’s mission, purpose, or goal for existing
People – the human resources of the organization
Technology – the tools, knowledge, and/or techniques used to transform inputs into outputs
Structure – the wide range of tools, knowledge, and/or techniques used to transform inputs into outputs
Components of an OrganizationComponents of an Organization
Open-Systems View of Organizations Open-Systems View of Organizations
© 2013 Cengage Learning
External PerspectiveUnderstand behavior in terms of externalevents, environmental forces, and behavioral consequences.
InternalPerspectiveUnderstand behavior in terms of thoughts, feelings, past experiences, and needs.Explain behavior by examining individuals’ history and personal value System.
Both perspectives have produced motivational & leadership theories.
Explain behavior by examining surrounding external events and environmental forces.
Internal and External PerspectivesInternal and External Perspectives
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 suggested the importance of informal organizations
Formal –vs- Informal Formal –vs- Informal
© 2013 Cengage Learning
Formal Elements
Informal Elements
Section 2:
Management
Section 2:
Management
What Managers DoWhat Managers Do
Managerial Activities:
• Make decisions
• Allocate resources
• Direct activities of others to attain goals
Managerial Activities:
• Make decisions
• Allocate resources
• Direct activities of others to attain goals
Managers (or administrators)
Individuals who achieve goals through other people.
Where Managers WorkWhere Managers Work
Organization
A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.
Management Functions (Henri Fayol)Management Functions (Henri Fayol)
ManagementManagementFunctionsFunctions
ManagementManagementFunctionsFunctions
PlanningPlanningPlanningPlanning OrganizingOrganizingOrganizingOrganizing
LeadingLeadingLeadingLeadingControllingControllingControllingControlling
Management Functions (cont’d)Management Functions (cont’d)
Planning
A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.
Management Functions (cont’d)Management Functions (cont’d)
Organizing
Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.
Management Functions (cont’d)Management Functions (cont’d)
Leading
A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.
Management Functions (cont’d)Management Functions (cont’d)
Controlling
Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.
Mintzberg’s Managerial RolesMintzberg’s Managerial Roles
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.
1–17
Mintzberg’s Managerial Roles (cont’d)Mintzberg’s Managerial Roles (cont’d)
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.
Mintzberg’s Managerial Roles (cont’d)Mintzberg’s Managerial Roles (cont’d)
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.
Management SkillsManagement Skills
Technical skillsThe ability to apply specialized knowledge or expertise.
Human skillsThe ability to work with, understand, and motivate other people, both individually and in groups.
Conceptual SkillsThe mental ability to analyze and diagnose complex situations.
Effective Versus Successful Managerial Activities (Luthans)
Effective Versus Successful Managerial Activities (Luthans)
1. Traditional management• Decision making, planning, and controlling
2. Communication• Exchanging routine information and processing
paperwork
3. Human resource management• Motivating, disciplining, managing conflict, staffing,
and training
4. Networking• Socializing, politicking, and interacting with others
1. Traditional management• Decision making, planning, and controlling
2. Communication• Exchanging routine information and processing
paperwork
3. Human resource management• Motivating, disciplining, managing conflict, staffing,
and training
4. Networking• Socializing, politicking, and interacting with others
Allocation of Activities by TimeAllocation of Activities by Time
Source: Based on F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz, Real Managers (Cambridge, MA: Ballinger, 1988).
Section 3:Organizational Behavior
Section 3:Organizational Behavior
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.
Replacing Intuition with Systematic StudyReplacing Intuition with Systematic Study
Systematic study
Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence.
Provides a means to predict behaviors.
Intuition
A feeling not necessarily supported by research.
Replacing Intuition with Systematic StudyReplacing Intuition with Systematic Study
TheFacts
PreconceivedNotions ≠
OB Discipline OverviewOB Discipline OverviewOB Discipline OverviewOB Discipline Overview
Contributing Disciplines to the OB FieldContributing Disciplines to the OB Field
PsychologyThe science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.
Contributing Disciplines to the OB Field (cont’d)Contributing Disciplines to the OB Field (cont’d)
SociologyThe study of people in relation to their fellow human beings.
Contributing Disciplines to the OB Field (cont’d)Contributing Disciplines to the OB Field (cont’d)
Social PsychologyAn area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.
Contributing Disciplines to the OB Field (cont’d)Contributing Disciplines to the OB Field (cont’d)
AnthropologyThe study of societies to learn about human beings and their activities.
Contributing Disciplines to the OB Field (cont’d)Contributing Disciplines to the OB Field (cont’d)
Political ScienceThe study of the behavior of individuals and groups within a political environment.
Source: Drawing by Handelsman in The New Yorker, Copyright © 1986 by the New Yorker Magazine. Reprinted by permission.
There Are Few Absolutes in OBThere Are Few Absolutes in OB
ContingencyContingencyVariablesVariablesx y
Contingency variables
Situational factors: variables that moderate the relationship between two or more other variables and improve the correlation.
The Independent VariablesThe Independent Variables
IndependentIndependentVariablesVariables
IndependentIndependentVariablesVariables
Individual-Level Individual-Level VariablesVariables
Individual-Level Individual-Level VariablesVariables
OrganizationOrganizationSystem-LevelSystem-Level
VariablesVariables
OrganizationOrganizationSystem-LevelSystem-Level
VariablesVariables
Group-LevelGroup-LevelVariablesVariables
Group-LevelGroup-LevelVariablesVariables
Independent variable
The presumed cause of some change in the dependent variable.
The Dependent VariablesThe Dependent Variables
x
y
Dependent variable
A response that is affected by an independent variable.
The Dependent Variables (cont’d)The Dependent Variables (cont’d)
ProductivityA performance measure that includes effectiveness and efficiency.
EffectivenessAchievement of goals.EfficiencyThe ratio of effective output to the input required to achieve it.
The Dependent Variables (cont’d)The Dependent Variables (cont’d)
Absenteeism
The failure to report to work.
Turnover
The voluntary and involuntary permanent withdrawal from an organization.
The Dependent Variables (cont’d)The Dependent Variables (cont’d)
Organizational citizenship behavior (OCB)
Discretionary behavior that is not part of an employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization.
The Dependent Variables (cont’d)The Dependent Variables (cont’d)
Job satisfaction
A general attitude toward one’s job, the difference between the amount of reward workers receive and the amount they believe they should receive.
Basic OB Model, Stage IBasic OB Model, Stage I
Model
An abstraction of reality.A simplified representation of some real-world phenomenon.
Basic OB Model, Stage II
Basic OB Model, Stage II
Challenges and Opportunities for OBChallenges and Opportunities for OB
Responding to Globalization– Increased foreign assignments– Working with people from different cultures– Coping with anti-capitalism backlash– Overseeing movement of jobs to countries with
low-cost labor Managing Workforce Diversity
– Embracing diversity– Changing U.S. demographics– Implications for managers
• Recognizing and responding to differences
DomesticDomesticPartnersPartners
DomesticDomesticPartnersPartners
Major Workforce Diversity CategoriesMajor Workforce Diversity Categories
RaceRaceRaceRaceNon-ChristianNon-ChristianNon-ChristianNon-Christian
NationalNationalOriginOrigin
NationalNationalOriginOrigin
AgeAgeAgeAge
DisabilityDisabilityDisabilityDisability
GenderGenderGenderGender
Challenges and Opportunities for OB (cont’d)Challenges and Opportunities for OB (cont’d)
Improving Quality and Productivity– Quality management (QM)– Process reengineering
Responding to the Labor Shortage– Changing work force demographics– Fewer skilled laborers– Early retirements and older workers
Improving Customer Service– Increased expectation of service quality– Customer-responsive cultures
Challenges and Opportunity for OB (cont’d)Challenges and Opportunity for OB (cont’d)
Improving People Skills Empowering People Stimulating Innovation and Change Coping with “Temporariness” Working in Networked Organizations Helping Employees Balance Work/Life Conflicts Improving Ethical Behavior
Section 4 :
Quality Management &Organizational Behavior
Section 4 :
Quality Management &Organizational Behavior
What Is Quality Management?What Is Quality Management?
1. Intense focus on the customer.
2. Concern for continuous improvement.
3. Improvement in the quality of everything the organization does.
4. Accurate measurement.
5. Empowerment of employees.
Improving Quality and ProductivityImproving Quality and Productivity
Quality management (QM)– The constant attainment of customer
satisfaction through the continuous improvement of all organizational processes.
– Requires employees to rethink what they do and become more involved in workplace decisions.
Process reengineering– Asks managers to reconsider how work would be
done and their organization structured if they were starting over.
– Instead of making incremental changes in processes, reengineering involves evaluating every process in terms of its contribution.