Chapter 1
Introduction to
Organizational
Behavior

1-1

©2005 Prentice Hall
Chapter Objectives
 Define organizational behavior and explain
how and why it determines the
effectiveness of an organiza...
Chapter Objectives
 Appreciate the way changes in an
organization’s external environment
continually create challenges fo...
IKEA’s Global Approach to OB
 IKEA strives to increase employees’ skills and
knowledge
 IKEA provides employees with rew...
What is an Organization?
 An organization is a collection of people
who work together to achieve individual and
organizat...
What is Organizational Behavior?
 Organizational behavior (OB): the study of
factors that have an impact on how people
an...
Figure 1.1
What is Organizational Behavior?

Insert Figure 1.1 here

1-7

©2005 Prentice Hall
Figure 1.2 Levels of Analysis
Organizational Level
Group Level

Individual
Level

1-8

©2005 Prentice Hall
Figure 1.3 Components of
Organizational Behavior
Understanding
organizational behavior
requires studying

Part One Individ...
What is Management?
 Management is the process of planning,
organizing, leading, and controlling an
organization’s human,...
Figure 1.4 Four Functions of
Management
Planning

Organizing

Decide on organizational goals
and allocate and use
resource...
Table 1.1: Mintzberg’s
Managerial Roles






1-12

Figurehead
Liaison
Disseminator
Entrepreneur
Resource allocator

...
Managerial Skills

Conceptual Skills

Technical Skills

Human Skills

1-13

©2005 Prentice Hall
Figure 1.5 An Open Systems View of
Organizational Behavior

1-14

©2005 Prentice Hall
Challenges for
Organizational Behavior





1-15

1: Changing Social/ Cultural Environment
2: Evolving Global Environm...
Changing Social and Cultural
Environment
 National culture
 Organizational ethics and well-being
 Diverse work force

1...
Diversity Challenges
 Fairness and Justice
 Decision-Making and Performance
 Flexibility

1-17

©2005 Prentice Hall
Figure 1.6 Diversity

1-18

©2005 Prentice Hall
Evolving Global Environment
 Understanding Global
Differences
 Improve Organization’s
Behaviors and
Procedures in
Respon...
Advancing Information
Technology








1-20

Information
Knowledge
Information Technology
Organizational Learning...
Shifting Work/ Employment
Relationships





1-21

Downsizing
Empowerment and Self-Managed Teams
Contingent Workers
Ou...
Appendix 1A: A Short History of
Organizational Behavior





1-22

F.W. Taylor and Scientific Management
Mary Parker F...
F.W. Taylor and
Scientific Management
 Scientific management: the systematic
study of relationships between people and
ta...
Four Principles of
Scientific Management
 1. Study the way employees perform their
tasks, gather informal job knowledge t...
Four Principles of
Scientific Management_2
 3. Carefully select employees so that they
possess skills and abilities that ...
Mary Parker Follett
 Management must consider the human side
 Employees should be involved in job
analysis
 Person with...
The Hawthorne Studies
 Hawthorne Works of the Western Electric
Company; 1924-1932
 Initiated as an attempt to investigat...
The Hawthorne Studies_2
 Factors influencing behavior:
– Attention from researchers
– Manager’s leadership approach
– Wor...
Douglas McGregor:
Theory X and Theory Y
Theory X
 Average employee is lazy,
dislikes work, and will try to
do as little a...
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  1. 1. Chapter 1 Introduction to Organizational Behavior 1-1 ©2005 Prentice Hall
  2. 2. Chapter Objectives  Define organizational behavior and explain how and why it determines the effectiveness of an organization  Appreciate why the study of organizational behavior improves a person’s ability to understand and respond to events that take place in a work setting  Differentiate between the three levels at which organizational behavior is examined 1-2 ©2005 Prentice Hall
  3. 3. Chapter Objectives  Appreciate the way changes in an organization’s external environment continually create challenges for organizational behavior  Describe the four main kinds of forces in the environment that post the most opportunities and problems for organizations today 1-3 ©2005 Prentice Hall
  4. 4. IKEA’s Global Approach to OB  IKEA strives to increase employees’ skills and knowledge  IKEA provides employees with rewards that encourage high performance  IKEA encourages employee commitment and cooperation 1-4 ©2005 Prentice Hall
  5. 5. What is an Organization?  An organization is a collection of people who work together to achieve individual and organizational goals – Individual goals – Organizational goals 1-5 ©2005 Prentice Hall
  6. 6. What is Organizational Behavior?  Organizational behavior (OB): the study of factors that have an impact on how people and groups act, think, feel, and respond to work and organizations, and how organizations respond to their environments 1-6 ©2005 Prentice Hall
  7. 7. Figure 1.1 What is Organizational Behavior? Insert Figure 1.1 here 1-7 ©2005 Prentice Hall
  8. 8. Figure 1.2 Levels of Analysis Organizational Level Group Level Individual Level 1-8 ©2005 Prentice Hall
  9. 9. Figure 1.3 Components of Organizational Behavior Understanding organizational behavior requires studying Part One Individuals in Organizations Part Two Group and Team Processes Part Three Organizational Processes 1-9 ©2005 Prentice Hall
  10. 10. What is Management?  Management is the process of planning, organizing, leading, and controlling an organization’s human, financial, material, and other resources to increase its effectiveness 1-10 ©2005 Prentice Hall
  11. 11. Figure 1.4 Four Functions of Management Planning Organizing Decide on organizational goals and allocate and use resources to achieve those goals Establish the rules and reporting relationships that allow people to achieve organizational goals Controlling Evaluate how well the organization is achieving goals and take action to maintain, improve, and correct performance 1-11 Leading Encourage and coordinate individuals and groups so that they work toward organizational goals ©2005 Prentice Hall
  12. 12. Table 1.1: Mintzberg’s Managerial Roles      1-12 Figurehead Liaison Disseminator Entrepreneur Resource allocator     Leader Monitor Spokesperson Disturbance handler  Negotiator ©2005 Prentice Hall
  13. 13. Managerial Skills Conceptual Skills Technical Skills Human Skills 1-13 ©2005 Prentice Hall
  14. 14. Figure 1.5 An Open Systems View of Organizational Behavior 1-14 ©2005 Prentice Hall
  15. 15. Challenges for Organizational Behavior     1-15 1: Changing Social/ Cultural Environment 2: Evolving Global Environment 3: Advancing Information Technology 4: Shifting Work/ Employment Relationships ©2005 Prentice Hall
  16. 16. Changing Social and Cultural Environment  National culture  Organizational ethics and well-being  Diverse work force 1-16 ©2005 Prentice Hall
  17. 17. Diversity Challenges  Fairness and Justice  Decision-Making and Performance  Flexibility 1-17 ©2005 Prentice Hall
  18. 18. Figure 1.6 Diversity 1-18 ©2005 Prentice Hall
  19. 19. Evolving Global Environment  Understanding Global Differences  Improve Organization’s Behaviors and Procedures in Response to Those Differences 1-19 ©2005 Prentice Hall
  20. 20. Advancing Information Technology        1-20 Information Knowledge Information Technology Organizational Learning Intranets Creativity Innovation ©2005 Prentice Hall
  21. 21. Shifting Work/ Employment Relationships     1-21 Downsizing Empowerment and Self-Managed Teams Contingent Workers Outsourcing ©2005 Prentice Hall
  22. 22. Appendix 1A: A Short History of Organizational Behavior     1-22 F.W. Taylor and Scientific Management Mary Parker Follett Hawthorne Studies Theory X and Y ©2005 Prentice Hall
  23. 23. F.W. Taylor and Scientific Management  Scientific management: the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency  The amount of and effort each employee expends to produce a unit of output can be reduced by increasing specialization and the division of labor 1-23 ©2005 Prentice Hall
  24. 24. Four Principles of Scientific Management  1. Study the way employees perform their tasks, gather informal job knowledge that employees possess, and experiment with ways of improving the way tasks are performed  2. Codify the new methods of performing tasks into written rules and standard operating procedures 1-24 ©2005 Prentice Hall
  25. 25. Four Principles of Scientific Management_2  3. Carefully select employees so that they possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures  4. Establish an acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level 1-25 ©2005 Prentice Hall
  26. 26. Mary Parker Follett  Management must consider the human side  Employees should be involved in job analysis  Person with the knowledge should be in control of the work process regardless of position  Cross-functioning teams used to accomplish projects 1-26 ©2005 Prentice Hall
  27. 27. The Hawthorne Studies  Hawthorne Works of the Western Electric Company; 1924-1932  Initiated as an attempt to investigate how characteristics of the work setting affect employee fatigue and performance (i.e., lighting)  Found that productivity increased regardless of whether illumination was raised or lowered 1-27 ©2005 Prentice Hall
  28. 28. The Hawthorne Studies_2  Factors influencing behavior: – Attention from researchers – Manager’s leadership approach – Work group norms  The “Hawthorne Effect” 1-28 ©2005 Prentice Hall
  29. 29. Douglas McGregor: Theory X and Theory Y Theory X  Average employee is lazy, dislikes work, and will try to do as little as possible  Manager’s task is to supervise closely and control employees through reward and punishment 1-29 Theory Y  Employees will do what is good for the organization when committed  Manager’s task is create a work setting that encourages commitment to organizational goals and provides opportunities for employees to be exercise initiative ©2005 Prentice Hall
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