O B J E C T I V E S After studying this chapter, you should be able to: 1. Describe what managers do. 2. Define organizational behavior (OB). 3. Explain the value of the systematic study of OB.L E A R N I N G 4. Identify the contributions made by major behavioral science disciplines to OB. 5. List the major challenges and opportunities for managers to use OB concepts.
What Managers Do What Managers DoManagers (or administrators)Individuals who achieve goals through other people. Managerial Activities Managerial Activities ••Make decisions Make decisions ••Allocate resources Allocate resources ••Direct activities of others Direct activities of others to attain goals to attain goals
Where Managers Work Where Managers WorkOrganizationA consciously coordinated social unit,composed of two or more people, thatfunctions on a relatively continuous basisto achieve a common goal or set ofgoals.
Management Functions Management Functions Planning Planning Organizing Organizing Management Management Functions FunctionsControllingControlling Leading Leading
Management Functions (cont’d)Management Functions (cont’d)PlanningA process that includes defining goals,establishing strategy, and developingplans to coordinate activities.
Management Functions (cont’d)Management Functions (cont’d)OrganizingDetermining what tasks are to be done,who is to do them, how the tasks are to begrouped, who reports to whom, and wheredecisions are to be made.
Management Functions (cont’d) Management Functions (cont’d)LeadingA function that includes motivating employees, directingothers, selecting the most effective communicationchannels, and resolving conflicts.
Management Functions (cont’d)Management Functions (cont’d)ControllingMonitoring activities to ensure they are beingaccomplished as planned and correcting anysignificant deviations.
Management Skills Management SkillsTechnical skillsThe ability to apply specializedknowledge or expertise.Human skillsThe ability to work with, understand,and motivate other people, bothindividually and in groups.Conceptual SkillsThe mental ability to analyze anddiagnose complex situations.
Effective Versus Successful Managerial Effective Versus Successful Managerial Activities (Luthans) Activities (Luthans)1. Traditional management 1. Traditional management • •Decision making, planning, and controlling Decision making, planning, and controlling2. Communication 2. Communication • •Exchanging routine information and processing Exchanging routine information and processing paperwork paperwork3. Human resource management 3. Human resource management • •Motivating, disciplining, managing conflict, staffing, Motivating, disciplining, managing conflict, staffing, and training and training4. Networking 4. Networking • •Socializing, politicking, and interacting with others Socializing, politicking, and interacting with others
Allocation of Activities by TimeAllocation of Activities by Time
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.
Complementing Intuition with Complementing Intuition with Systematic Study Systematic StudyIntuition“Gut” feelings about “why I do what I do” and “whatmakes others tick”.Systematic studyLooking at relationships, attempting to attributecauses and effects, and drawing conclusions basedon scientific evidence.Provides a means to predict behaviors.
Contributing Disciplines to the OB Field Psychology The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals. E X H I B I T 1–3 (cont’d) E X H I B I T 1–3 (cont’d)
Contributing Disciplines to the OB Field (cont’d) Sociology The study of people in relation to their fellow human beings. E X H I B I T 1–3 (cont’d) E X H I B I T 1–3 (cont’d)
Contributing Disciplines to the OB Field (cont’d)Social PsychologyAn area within psychology that blends concepts from psychologyand sociology and that focuses on the influence of people on oneanother. E X H I B I T 1–3 (cont’d) E X H I B I T 1–3 (cont’d)
Contributing Disciplines to the OB Field (cont’d)AnthropologyThe study of societies to learn about human beings and theiractivities. E X H I B I T 1–3 (cont’d) E X H I B I T 1–3 (cont’d)
There Are Few Absolutes in OB Contingency variables: "It Depends!!!" Situational factors that make the main relationship between two variables change--- e.g., the relationship may hold for one condition but not another.In Country 1 x May be related to yIn Country 2 x May NOT be related to y
Challenges 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 people during the war on terror.• Managing Workforce Diversity – Embracing diversity – Changing U.S. demographics – Implications for managers • Recognizing and responding to differences
Major Workforce Diversity CategoriesGenderGender National National Disability Disability Origin Origin Age Age Non-Christian Non-Christian Race Race Domestic Domestic Partners Partners E X H I B I T 1–4 E X H I B I T 1–4
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
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. E X H I B I T 1–6 E X H I B I T 1–6
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• Managing People during the War on Terrorism
Basic OB Model, Stage IModelAn abstraction of reality.A simplified representationof some real-worldphenomenon. E X H I B I T 1-6 E X H I B I T 1-6
The Dependent VariablesDependent variableA response that is affected by an independent variable (whatorganizational behavior researchers try to understand). y x
The Dependent Variables (cont’d)ProductivityA performance measure that includeseffectiveness and efficiency. Effectiveness Achievement of goals. Efficiency Meeting goals at a low cost.
The Dependent Variables (cont’d)AbsenteeismThe failure to report to work. Turnover The voluntary and involuntary permanent withdrawal from an organization.
The Dependent Variables (cont’d)Deviant Workplace BehaviorVoluntary behavior that violatessignificant organizational norms andthereby threatens the well-being ofthe organization and/or any of itsmembers.
The Dependent Variables (cont’d)Organizational citizenshipbehavior (OCB)Discretionary behavior that is notpart of an employee’s formal jobrequirements, but that neverthelesspromotes the effective functioning ofthe organization.
The Dependent Variables (cont’d)Job satisfactionA general attitude (not a behavior) toward one’s job; apositive feeling of ones job resulting from anevaluation of its characteristics.
The Independent VariablesIndependent variableThe presumed cause of some change in the dependentvariable; major determinants of a dependent variable. Independent Independent Variables Can Be Variables Can Be Individual-Level Group-Level Organization Organization Individual-Level Group-Level System-Level Variables Variables Variables Variables System-Level Variables Variables
Basic OB Model,Stage II E X H I B I T 1-7 E X H I B I T 1-7