MGMT 620MGMT 620ORGANIZATIONAL BEHAVIORORGANIZATIONAL BEHAVIOR

----------------------------------------------------------------------------IndividualIndividual

TeamTeamDepartmentDepartment

Facility, Plant, etc.Facility, Plant, etc.DivisionDivision

OrganizationOrganization--------------------------------------------------------------------------

ORGANIZATIONAL THEORYORGANIZATIONAL THEORY

ManagementManagementManagementManagement The attainment of organizational goals The attainment of organizational goals

in an effective and efficient manner through in an effective and efficient manner through planning, organizing, leadingplanning, organizing, leading, and , and controllingcontrolling organizational resources organizational resources

OrganizationOrganizationOrganizationOrganization

A A formally structuredformally structured collection of collection of individuals working toward individuals working toward common common goals.goals.

A social entity that is goal directed, A social entity that is goal directed, designed as deliberately structured and designed as deliberately structured and coordinated activity systemscoordinated activity systems, and , and linked linked to the external environmentto the external environment..

Why Study Organizations?Why Study Organizations?

OrganizationalOrganizationalResearchResearch

UnderstandUnderstandorganizationalorganizational

behaviorbehavior

PredictPredictorganizationalorganizational

behaviorbehavior

InfluenceInfluenceorganizationalorganizational

behaviorbehavior

Scientific ApproachScientific ApproachScientific ApproachScientific Approach

Seeking information in a Seeking information in a systematicsystematic and andunbiased unbiased mannermanner

Scientific ApproachScientific ApproachScientific ApproachScientific Approach

General Methods of Behavioral Research---General Methods of Behavioral Research---A Continuum:A Continuum:

Case /Case /

NaturalNatural Field Field Lab. Lab.

<Observat. Survey Exper. Exper.><Observat. Survey Exper. Exper.>

Scientific ApproachScientific ApproachScientific ApproachScientific Approach

THE FURTHER TO THE THE FURTHER TO THE RIGHTRIGHT::

-The -The higherhigher the the controlcontrol of the of the IndependentIndependent Variable(s). Variable(s).

-The -The higherhigher the the precisionprecision in measuring in measuring the the DependentDependent Variable(s). Variable(s).

-The -The lowerlower the the realismrealism..

Laboratory ExperimentLaboratory ExperimentLaboratory ExperimentLaboratory Experiment““Impressions of Organizational Responses to Impressions of Organizational Responses to

Whistleblower Accusations” – Decker & CaloWhistleblower Accusations” – Decker & CaloDependent Variables:Dependent Variables:

1) Respondents’ ratings of Firm1) Respondents’ ratings of Firm2) Respondents’ ratings of Whistleblower2) Respondents’ ratings of Whistleblower

Independent Variables:Independent Variables:1) Firm Admits Guilt vs. Firm Denies1) Firm Admits Guilt vs. Firm Denies2) Whistleblower is Fired vs. Not Fired2) Whistleblower is Fired vs. Not Fired3) Company Product: Tires vs. Paint3) Company Product: Tires vs. Paint4) Customer: Individuals vs. Govt. Agencies4) Customer: Individuals vs. Govt. Agencies

PeoplePeopleMoneyMoney

MachinesMachines

MaterialsMaterials

Doing the right thingsDoing the right things

EfficiencyEfficiency = =Getting the most Getting the most out of resourcesout of resources

EffectivenessEffectiveness = =Choosing worthwhileChoosing worthwhilegoals and achievinggoals and achievingthem to the fullestthem to the fullest

Doing things rightDoing things right

The Four Functions of MgmtThe Four Functions of MgmtThe Four Functions of MgmtThe Four Functions of Mgmt

PlanningPlanning Select goals Select goals

& ways to & ways to attain themattain them

OrganizingOrganizing Assign Assign

responsibility responsibility for tasksfor tasks

LeadingLeading Use Use

influence to influence to motivatemotivate

Controlling Controlling Monitor Monitor

activities & activities & make make

correctionscorrections

Levels of ManagementLevels of ManagementLevels of ManagementLevels of Management

TopTopManagemenManagemen

tt

MiddleMiddleManagemenManagemen

tt

Lower (Supervisory, Operational, Lower (Supervisory, Operational, First-Line) ManagementFirst-Line) Management

Examples: President,Examples: President,CEO, Executive V-PCEO, Executive V-P

Examples: RegionalExamples: RegionalManager, Plant ManagerManager, Plant Manager

Examples: AccountExamples: AccountManager, Office Manager, Office ManagerManager

How Do You Learn How Do You Learn to Manageto Manage??How Do You Learn How Do You Learn to Manageto Manage??

(Based on a study of successful managers at (Based on a study of successful managers at Honeywell)Honeywell)

50% from job experience50% from job experience 30% from other persons30% from other persons 20% from education & training20% from education & training

Effective Managers’ AttributesEffective Managers’ Attributes Conceptual, Technical, Human SkillsConceptual, Technical, Human Skills Self-ObjectivitySelf-Objectivity Analytic ThinkingAnalytic Thinking Creative ThinkingCreative Thinking Oral CommunicationOral Communication Written CommunicationWritten Communication Resistance to StressResistance to Stress Tolerance of UncertaintyTolerance of Uncertainty

Classical Perspective (1900+)Classical Perspective (1900+)

Emphasized a Emphasized a rationalrational, , scientificscientific approach to study of management and approach to study of management and sought to make sought to make workersworkers and and organizationsorganizations like efficient operating like efficient operating machines machines

Classic. Perspective CategoriesClassic. Perspective Categories

ScientificScientific Management Management Frederick TaylorFrederick Taylor Frank and Lillian GilbrethFrank and Lillian Gilbreth

Bureaucratic Organizations (rational)Bureaucratic Organizations (rational) Max WeberMax Weber

Administrative Principles (rational)Administrative Principles (rational) Henri FayolHenri Fayol

Characteristics of Classical Mgmt.Characteristics of Classical Mgmt.Characteristics of Classical Mgmt.Characteristics of Classical Mgmt. Scientific Bureaucratic Administrative

EmphasesRulesRationality

EmphasesRulesRationality

FocusWhole organization

BenefitsFairnessEfficiency

DrawbacksRigiditySlowness

EmphasesTraining routinesFinancial motivation

EmphasesTraining routinesFinancial motivation

FocusWorkers

BenefitsProductivityEfficiency

DrawbacksOverlooks social needs

EmphasesManagement functionsChain of Command

EmphasesManagement functionsChain of Command

FocusManagers

BenefitsClear structureGuiding PrinciplesEfficiency

DrawbacksOversimplified, doesn’t consider environment

Shift in Management Thinking Shift in Management Thinking Following the Hawthorne StudiesFollowing the Hawthorne Studies

FromFrom ToTo

Classical Classical ManagementManagement

Humanistic ApproachHumanistic Approach

- Rationality- Rationality

- Efficiency- Efficiency

- Standardization- Standardization

Recognition of Recognition of importance of importance of

workers’ Social workers’ Social EnvironmentEnvironment

Humanistic Perspective (1920s+)Humanistic Perspective (1920s+)Behavior Science Appr. Behavior Science Appr.

e.g., Hawthorne Studiese.g., Hawthorne Studies

Human Relations Approach Human Relations Approach Emphasizes enlightened treatment of workersEmphasizes enlightened treatment of workers

Human Resources Appr. Human Resources Appr. Emphasizes power sharing between managers Emphasizes power sharing between managers

and employees and employees e.g., Theory Ye.g., Theory Y

Management Science PerspectiveManagement Science Perspective(1940+)(1940+)

Involves Mathematics, ComputersInvolves Mathematics, Computers Examples:Examples:

ForecastingForecasting Inventory controlInventory control SchedulingScheduling Break-even analysisBreak-even analysis

Systems Theory (1950+)

How the parts fit togetherHow the parts fit together How the organization interacts with its How the organization interacts with its

environmentenvironment

Systems TheorySystems Theory

InputsInputs TransformationTransformation OutputsOutputs

* Raw materials Raw materials * Human resources * Human resources * Information * Information * Financial resources* Financial resources

* Products/services Products/services * Profits/losses * Profits/losses * Employee * Employee

satisfactionsatisfaction

Contingency View (1960+) Integrates many of the other viewsIntegrates many of the other views ““No one best way to manage - the best No one best way to manage - the best

way depends on the situation (e.g., way depends on the situation (e.g., have few rules in a small organization, have few rules in a small organization, many rules in a large one)many rules in a large one)

Current Challenges in OrganizationsCurrent Challenges in Organizations• Global CompetitionGlobal Competition• Organizational RenewalOrganizational Renewal

• Reengineering, Virtual Orgs.Reengineering, Virtual Orgs.• Strategic AdvantageStrategic Advantage

• Total Quality, Knowledge Management, Total Quality, Knowledge Management, • Employee RelationshipsEmployee Relationships

• Team-based Orgs., Inspirational LeadershipTeam-based Orgs., Inspirational Leadership• Diversity (incl. Global)Diversity (incl. Global)• Ethics and Social ResponsibilityEthics and Social Responsibility

Contemporary Organizational Contemporary Organizational Trends to Meet the ChallengesTrends to Meet the Challenges Companies stressing vision and valuesCompanies stressing vision and values Organizations “knowledge-based”, Organizations “knowledge-based”,

stressing “life-long learning”stressing “life-long learning” Quality a forethought, not afterthoughtQuality a forethought, not afterthought Companies smaller Companies smaller Organizations “flatter”Organizations “flatter” Structures more team-based and Structures more team-based and

“boundaryless”“boundaryless”

Contemporary Organizational Contemporary Organizational Trends (continued)Trends (continued)

Employees more empowered (Managers Employees more empowered (Managers moving from being bosses to being moving from being bosses to being facilitators)facilitators)

Companies changing from monocultural Companies changing from monocultural to multiculturalto multicultural

Evolution of the 21st-Century Evolution of the 21st-Century ManagerManager

Past ManagersPast Managers Future Future ManagersManagersOrder giver,

privileged elite, manipulator, controller

Facilitator, team member, teacher, advocate, sponsor, coach

Periodic learning, narrow specialist

Continuous life-long learning, generalist with multiple specialties

Time, effort, rank Skills, results

Primary RolePrimary Role

Learning & Learning & KnowledgeKnowledge

CompensatioCompensation Criterian Criteria

Cultural Cultural OrientationOrientation

Monocultural, monolingual

Multicultural, multilingual

Evolution of the 21st-Century Evolution of the 21st-Century Manager (cont.)Manager (cont.)

Past ManagersPast Managers Future Future ManagersManagersFormal Authority Knowledge (technical

interpersonal)

Potential problem Primary resource

Afterthought Forethought

Limited input for individual decisions

Multicultural, multilingual

Primary RolePrimary Role

View of View of PeoplePeople

Ethical Ethical ConsideratioConsiderationsns

Decision Making Decision Making StyleStyle

Primary Primary CommunicatioCommunication Patternn Pattern

Vertical Multidirectional

Evolution of the 21st-Century Evolution of the 21st-Century Manager (cont.)Manager (cont.)

Past Managers Future Past Managers Future ManagersManagers

Nature of Nature of Interpersonal Interpersonal RelationshipsRelationships

Competitive(win-lose)

Cooperative(win-lose)

Handling of Power Handling of Power and Key Informationand Key Information

Hoard and restrict access

Share and broaden access

Approach to ChangeApproach to Change Resist Facilitate