This document provides an overview of organizational behavior. It defines organizations as groups of people working interdependently toward common objectives. Organizational behavior studies how individuals, groups, and structures impact behavior within organizations. The document outlines different research methods used in organizational behavior and discusses its multidisciplinary roots. It also examines current issues like managing diversity and responding to globalization and technological changes.
2. 1-2
Organizations and Organizational Behavior
Organizations
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
3. 1-3
Organizations and Organizational Behavior
Strategy – 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.
4. 1-4
Why Study Organizational Behavior?
OB theories help you to make sense of the workplace
Question and rebuild your personal theories for work
Important -- much of our time is in organizations
OB provides knowledge/tools to work with others
Helps you to get things done
OB improves an organization’s financial health
5. 1-5
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
6. 1-6
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
7. 1-7
Research Methods in OB
Research Method
Survey
Research
Experimental
Research
Naturalistic
Observation
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
8. 1-8
Three Levels of OB Analysis
Chapters 2 - 5
Chapters 6 - 12
Chapters 13 - 15
Plan of the Book
9. 1-9
History of OB
Scientific Management: The earliest attempt to study
behavior in organizations that emphasized the importance of
designing jobs as efficiently as possible
The 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 workplace
Classical Organizational Theory: An approach to studying
organizations that focused on the efficient structuring of
organizations
10. 1-10
Comparison of Early Approaches
Scientific
Management
Emphasis on human
efficiency on the job
Sought to improve
productivity by minimizing
wasted movements
Major proponent was
Frederick Taylor
Human Relations
Movement
Emphasis on social
conditions in organizations
Sought to improve
productivity by developing
good working relationships
Major proponent was Elton
Mayo
12. 1-12
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
13. 1-13
Current Issues in OB
Cross-cultural aspects of behavior
Unethical behavior in organizations
Conserving energy and preserving the environment
Workforce diversity
Understanding and minimizing poor leadership decision-
making
Increasing team responsibility
Unrelenting change
14. 1-14
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
15. 1-15
Responding to Globalization
Increased foreign assignments
Differing needs and aspirations in workforce
Working with people from different
cultures
Domestic motivational techniques and
managerial styles may not work
Overseeing movement of jobs to
countries with low-cost labor
16. 1-16
Managing Workforce Diversity
Workforce diversity:
organizations are becoming a
more heterogeneous mix of
people in terms of gender, age,
race, ethnicity, and sexual
orientation
17. 1-17
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.”
18. 1-18
Implications for Managers
OB helps with:
Insights to improve people skills
Valuing of workforce diversity
Empowering people and creating a positive work
environment
Dealing with labor shortages
Coping in a world of temporariness
Creating an ethically healthy work environment
19. 1-19
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.