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Introduction toOrganizational Behavior

Chapter One

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Organizations and Organizational BehaviorOrganizations

Groups of people who work interdependently toward some purpose Structured patterns of interaction Coordinated tasks Have common objectives (even if not fully agreed)

Mission – Why are we here? Organization may develop several goals or objectives to translate the mission

into some specific measureable performance measures. E.g.: Proton – “we want to become successful Malaysian Automobile

Manufacturer globally by being customer oriented and producing competitively-priced and innovative quality products.”

To achieve organizational goals, top management works with management team to formulate strategies.

Mission

Goals Strategy Plans

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Organizations and Organizational BehaviorStrategy – a process of setting long-term goals of an

organization, taking action and allocation resources to accomplish those goals. Strategic management is a planning process that involves the formulation and

implementation of strategies to achieve the organizational long-term goals by analyzing its internal and external environments

The formulation strategy would lead to plans or how to achieve the goals.

Plan – can be developed at various levels Strategic – top level management Tactical – division or business unit level Operational – departmental level

Organizational behavior The study of what people think, feel, and do in and around organizations. A field of study that investigates how individuals, groups and structures impact

behavior within organizations.

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Why Study Organizational Behavior?

OB theories help you to make sense of the workplaceQuestion and rebuild your personal theories for work Important -- much of our time is in organizations

OB provides knowledge/tools to work with othersHelps you to get things done

OB improves an organization’s financial health

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Three Good Reasons Why You Should Care About . . . Organizational Behavior

1. Understanding the dynamics of behavior in organizations is essential to achieving personal success as a manager, regardless of your area of specialization

2. Principles of organizational behavior are involved in making people both productive and happy on their jobs

3. To achieve success in today’s rapidly changing environment, organizations must successfully address a wide variety of OB issues

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Characteristics of the Field of OB

OB applies the scientific method to practical managerial problems

OB focuses on three levels of analysis: individuals, groups, and organizations

OB is multidisciplinary in nature

OB seeks to improve organizational effectiveness and the quality of life at work

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Research Methods in OBResearch Method

Survey Research

ExperimentalResearch

NaturalisticObservation

Case Study

Description

Questionnaires are developed and administered to people to measure how they feel about various

aspects of themselves, their jobs, and their organizations. Responses to some questionnaires are compared to others, or to actual behaviors, to

see how various concepts are inter-related

Behavior is carefully studied -- either in a controlled setting (a lab) or in an actual company (the field) --

to see how a particular variable that is systematically varied affects other aspects of behavior

A non-empirical technique in which a scientist systematically records various events and behaviors

observed in a work setting

A thorough description of a series of events that occurred in a particular organization

Comments

This technique is the most popular one used

in the field of OB

This technique makes it possible to learn about cause-effect

relationships

This technique is subject to the biases of the

observer

Findings may not be generalizable to other

organizations

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Three Levels of OB Analysis

Chapters 2 - 5

Chapters 6 - 12

Chapters 13 - 15

Plan of the Book

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History of OBScientific Management: The earliest attempt to study behavior in organizations that emphasized the importance of designing jobs as efficiently as possibleThe Human Relations Movement: A management philosophy that rejected the primarily economic orientation of scientific management and focused instead on the noneconomic, social factors operating in the workplaceClassical Organizational Theory: An approach to studying organizations that focused on the efficient structuring of organizations

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Comparison of Early Approaches

ScientificManagement

Emphasis on human efficiency on the job

Sought to improve productivity by minimizing wasted movements

Major proponent was Frederick Taylor

ScientificManagement

Emphasis on human efficiency on the job

Sought to improve productivity by minimizing wasted movements

Major proponent was Frederick Taylor

Human RelationsMovement

Emphasis on social conditions in organizations

Sought to improve productivity by developing good working relationships

Major proponent was Elton Mayo

Human RelationsMovement

Emphasis on social conditions in organizations

Sought to improve productivity by developing good working relationships

Major proponent was Elton Mayo

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The Multidisciplinary Roots of OB

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Challenges and Opportunities for OB

The workplace is contains a wide mix of cultures, races, ethnic groups, genders and ages

Employees have to learn to cope with rapid change due to global competition

Corporate loyalty has decreased due to corporate downsizing and use of temp workers

Managers can benefit from OB theory and concepts

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Current Issues in OB

Cross-cultural aspects of behaviorUnethical behavior in organizationsConserving energy and preserving the environmentWorkforce diversityUnderstanding and minimizing poor leadership decision-makingIncreasing team responsibilityUnrelenting change

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Responding to Changes in Technology

Creating Leaner Organizations Automation: The process f replacing people with machines,

which includes white-collar and mental-labor as well as blue-collar and menial labor

Downsizing/Rightsizing: The process of adjusting the number of employees needed to work in newly designed organizations

Outsourcing: The process of eliminating those parts of organizations that focus on noncore sectors of the business and hiring outside firms to perform these functions instead

Creating Virtual Enterprises Highly flexible, temporary organizations formed by groups of

companies that join forces to exploit a specific opportunity Increasing the Use of Telecommuting

The practice of using communications technology to enable work to be performed from remote locations

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Responding to Globalization

Increased foreign assignmentsDiffering needs and aspirations in workforce

Working with people from different culturesDomestic motivational techniques and

managerial styles may not workOverseeing movement of jobs to

countries with low-cost labor

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Managing Workforce Diversity

Workforce diversity: organizations are becoming a

more heterogeneous mix of people in terms of gender, age,

race, ethnicity, and sexual orientation

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Diversity Implications

“Managers have to shift their philosophy from treating everyone alike to recognizing differences and responding to those differences in ways that ensure employee retention and greater productivity while, at the same time, not discriminating.”

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Implications for Managers

OB helps with:Insights to improve people skillsValuing of workforce diversityEmpowering people and creating a positive work

environmentDealing with labor shortagesCoping in a world of temporarinessCreating an ethically healthy work environment

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Keep in Mind…

• OB’s goal is to understand and predict human behavior in organizations.

• Fundamental consistencies underlie behavior.• It is more important than ever to learn OB

concepts.• Both managers and employees must learn to cope

with temporariness.