2. Organizational Behavior
The study of individual behavior and group
dynamics in organizational settings
Organizational Variables
Performance appraisal Work design
Organizational
Design
Organizational Structure Jobs
Human Behavior
4. Internal/External Perspective of
Human Behavior
Understand
human behavior
in terms of
External events,
behavioral consequences,
& external forces
Thoughts,feelings,
past experiences,
and needs
Explain human
behavior by
examining
Surrounding external
events & environmental
forces
Individuals’ history &
personal value
system
Internal Perspective External Perspective
Each Perspective has produced
motivational & leadership theories.
5. Psychology
the science of
human behavior
Management
the study of overseeing
activities and supervising
people in organizations
Anthropology
the science of the
learned behavior
of human beings
Medicine
the applied science of
healing or treatment of
diseases to enhance an
individual’s health and
well-being
Engineering
the applied science
of energy & matter
Sociology
the science
of society
Interdisciplinary
Influences on
Organizational
Behavior
6. Components of an Organization
Task - an organization’s mission, purpose, or goal for
existing
People - the human resources of the organization
Structure - the manner in which an organization’s work
is designed at the micro level; how departments,
divisions, & the overall organization are designed at
the macro level
Technology - the intellectual and mechanical processes
used by an organization to transform inputs into
products or services that meet organizational goals
(ch02)
8. Formal vs Informal Organization
Formal Organization - the part of the
organization that has legitimacy and
official recognition
Informal Organization - the unofficial part
of the organization
Hawthorne Studies: studies conducted
during the 1920’s and 1930’s that
discovered the existence of the
informal organization
9. Formal &
Informal
Elements of
Organizations
Formal organization
(overt)
Goals & objectives
Policies & procedures
Job descriptions
Financial resources
Informal organization
(covert)
Beliefs & assumptions about
people, work, the organization
Perceptions & attitudes
Values
Feelings, such as fear,
rage, despair, &
hope
Group norms
Social
Surface
10. U.S. Gross Domestic Product
Federal purchases State/local purchases
Personal durable goods Personal nondurable goods
Service Fixed investments
Total
$8.1 Trillion
40%
15%
6%
12%
8%
19%
11. Six Focus Organizations
• Ford
• Gateway 2000
• Southwest Airlines
• Starbucks
• Harpo Entertainment
• American Red Cross
12. Change
• Too much change = chaos
• Too little change = stagnation
How do you view change?
Threat Opportunity
13. International Competition in
Business
Thurow: the next several decades in business will
be characterized by intense competition between
the U.S., Japan, and Europe in core industries.
Success will require:
• positive response to the competition in the
international marketplace
• responsiveness to ethnic, religious, and
gender diversity in the workforce
14. Quality
• A potential means for giving organizations in
viable industries a competitive edge in
international competition
• A rubric for products and services that are of
high status
• A customer-oriented philosophy of
management with implications for all aspects of
organizational behavior
• A cultural value embedded in successful
organizations
15. Cannot be optimized
Is not a fad
Is not an end in itself
Quality
Three key questions in evaluating quality-improvement ideas
1. Does the idea improve customer response?
2. Does the idea accelerate results?
3. Does the idea raise the effectiveness of resources?
YES means the idea should improve overall quality
16. Total Quality Management
Total Quality Management -
the total dedication to continuous
improvement and to customers so
that the customers’ needs are met
and their expectations exceeded
Total Quality is NOT
- a panacea for all organizations
- a guarantee of unqualified success
17. CEOs Advance Total Quality by:
• Engaging in participative management
• Being willing to change everything
• Focusing quality efforts on customer service
• Including quality as a criterion in reward
systems
• Improving the flow of information regarding
quality improvement successes or failures
• Being actively & personally involved in quality
efforts
18. Seven Categories in the Malcolm Baldrige
National Quality Award Examination
• Leadership
• Information and analysis
• Strategic quality planning
• Human resource utilization
• Quality assurance of products & services
• Quality results
• Customer satisfaction
19. Challenges to Managing
Organizational Behavior
1. Increasing globalization of organizations’
operating territory
2. Increasing diversity of organizational
workforces
3. Continuing technological innovation with its
companion need for skill enhancement
4. Continuing demand for higher levels of moral
& ethical behavior at work
20. Learning about Organizational
Behavior
Mastery of
basic objective
knowledge*
Application
of knowledge
and skills
Development of
specific skills**
and abilities
* Objective knowledge
knowledge that results
from research and
scholarly activities
** Skill development
the mastery of abilities
essential to successful
functioning in organizations
21. The Organizational Behavior
Student is
a critical consumer of knowledge
related to organizational behavior--
one who is able to intelligently
question the latest research results
and distinguish plausible, sound
new approaches from fads that lack
substance or adequate foundation.
22. Learning from Structured Activity
Individual or group
structured activity
(e.g. group decision
activity)
New or modified
knowledge or skills
(e.g., consensus
group decisions are
better)
Systematic review
of the structured
activity (e.g.,
compare individual
& group results)
Conclusions based
on the systematic
review (e.g., the
group did better)
23. Three Assumptions Required for
Learning from Structured Activity
• Each student must accept responsibility for
his/her own behavior, actions, & learning
• Each student must actively participate in the
individual/group structured learning activity
• Each student must be open to new
information, new skills, new ideas, and
experimentation
24. Skills Identified by
U.S. Department of Labor
• Resource management skills
• Information management skills
• Personal interaction skills
• Systems behavior & performance
skills
• Technology utilization skills
