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Chapter 1
                    Organizational
                Behavior and Opportunity
•   Define organizational behavior.

•   Identify four action steps for responding positively in times of
    change.

•   Identify the important system components of an organization.

•   Describe the formal and informal elements of an organization.

•   Understand the diversity of organizations in the economy.

•   Describe the opportunities that change creates for organizational
    behavior.

•   Demonstrate the value of objective knowledge and skill
    development in the study of organizational behavior.

             © 2011 Cengage Learning. All rights reserved.
1                 Learning Outcome



    Define organizational behavior.



              Clockworks or
                Snake pit?



         © 2011 Cengage Learning. All rights reserved.
Organizational Behavior
the study of individual behavior and

group dynamics in organizations




        © 2011 Cengage Learning. All rights reserved.
Organizational Behavior:
   Dynamics in Organizations

                       Psychosocial




                       Organizational
                         Behavior
Interpersonal                                               Behavioral



            © 2011 Cengage Learning. All rights reserved.
Organizational Variables that
    Affect Human Behavior
                     Communication




Organizational                                        Performance
Structure                   Human                      Appraisal
                            Behavior
Work
Design                                                       Jobs
                      Organizational
                         Design
            © 2011 Cengage Learning. All rights reserved.
External Perspective
  Understand behavior in terms of external
events, environmental forces, and behavioral
               consequences.


             Internal
           Perspective
           Understand behavior
           in terms of thoughts,
        feelings, past experiences,
                 and needs.
            Explain behavior by
          examining individuals’
        history and personal value
                  System.


Explain behavior by examining surrounding
 external events and environmental forces.




Both perspectives have produced
motivational & leadership theories.
               © 2011 Cengage Learning. All rights reserved.
Sociology
                                   the science
                                     of society
     Psychology                                                      Engineering
      the science                                               the applied science
        of human                                                 of energy & matter
        behavior
                       Interdisciplinary
Anthropology
                        Influences on                                 Medicine
                                                                the applied science
the science of the      Organizational                          of healing or treating
 learned behavior                                               diseases to enhance
 of human beings           Behavior                                  health and
                                                                     well-being
                                 Management
                           the study of overseeing
                          activities and supervising
                           people in organizations
                     © 2011 Cengage Learning. All rights reserved.
2                 Learning Outcome



    Identify four action steps for
    responding positively in times of
    change.




         © 2011 Cengage Learning. All rights reserved.
Reactions to Change

Rigid and
Reactive




                                         Open and
                                        Responsive


    © 2011 Cengage Learning. All rights reserved.
3                 Learning Outcome



    Identify the important system components
    of an organization.




         © 2011 Cengage Learning. All rights reserved.
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, and the overall
  organization are designed at the macro level
Technology – the tools, knowledge, and/or
  techniques used to transform inputs into outputs



            © 2011 Cengage Learning. All rights reserved.
Open Systems View of Organization




          © 2011 Cengage Learning. All rights reserved.
4                 Learning Outcome



    Describe the formal and informal
    elements of an organization.




         © 2011 Cengage Learning. All rights reserved.
Formal vs. Informal
            Organization
Formal Organization – the official,
  legitimate, and most visible part of
  the system
Informal Organization – the
  unofficial and less visible part of
  the system         Hawthorne Studies: studies
                            conducted during the 1920’s and
                          1930’s that suggested the importance
                                of informal organizations

            © 2011 Cengage Learning. All rights reserved.
Formal & Informal Elements of Organizations

                                    Social Surface
Formal organization
           (overt)
   Goals and objectives
  Policies and procedures
      Job descriptions
                                         Informal organization
                                                         (covert)
    Financial resources
                                               Beliefs and assumptions
     Authority structure
                                               Perceptions and attitudes
  Communication channels
                                                          Values
   Products and services
                                               Feelings, such as fear, joy
                                                 anger, trust, and hope
                                                      Group norms
                                                    Informal leaders


                © 2011 Cengage Learning. All rights reserved.
5                 Learning Outcome



    Understand the diversity of
    organizations in the economy.




         © 2011 Cengage Learning. All rights reserved.
Sectors of the U.S. Economy
Manufacturing                             Nonprofit
                                          organizations




Service
                                                          Government

          © 2011 Cengage Learning. All rights reserved.
6                 Learning Outcome



    Evaluate the opportunities that change
    creates for organizational behavior.




         © 2011 Cengage Learning. All rights reserved.
Global Competition in
         Business
Four challenges to managers relating
 to change in organizations

   •   Globalization
   •   Technological Innovation
   •   Workplace Diversity
   •   Ethics and Character


        © 2011 Cengage Learning. All rights reserved.
[ QUALITY ]
• Can give organizations in viable
  industries a competitive edge in
  international competition
• A rubric for products and services of
  high status
• A customer-oriented philosophy of
  management with implications for
  all aspects of organizational
  behavior
• A cultural value embedded in
  successful organizations
              © 2011 Cengage Learning. All rights reserved.
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?




           © 2011 Cengage Learning. All rights reserved.
Six Sigma

a high-performance system for

executing business strategy that is

customer-driven, emphasizes

quantitative decision making, and

places a priority on saving money.
         © 2011 Cengage Learning. All rights reserved.
Six Sigma vs. Total Quality
       Management




       © 2011 Cengage Learning. All rights reserved.
Seven Categories in the Malcolm
Baldrige National Quality Award
         Examination
•   Leadership
•   Information and analysis
•   Strategic quality planning
•   Human resource utilization
•   Quality assurance of products and services
•   Quality results
•   Customer satisfaction


            © 2011 Cengage Learning. All rights reserved.
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 and ethical behavior at work


           © 2011 Cengage Learning. All rights reserved.
7                 Learning Outcome



    Demonstrate the value of objective
    knowledge and skill development in the
    study of organizational behavior.




         © 2011 Cengage Learning. All rights reserved.
Learning about Organizational Behavior
Learning Activity

   Mastery of
 basic objective            Science
   knowledge
                            Theories, Research, Articles


Development of                         The Real World
 specific skills
  and abilities
                                           Organizational and Work Context



  Application                                             You
 of knowledge         Copyright ©2011
                    Cengage Learning.
   and skills        All rights reserved
                                                   Assessments & Exercises
Learning from Structured Activity


                         Individual or group
                          structured activity
                        (e.g., group decision
                               activity)
   New or modified                              Systematic review
 knowledge or skills                             of the structured
   (e.g., consensus                                activity (e.g.,
 group decisions are                            compare individual
         better)                                 & group results)


                        Conclusions based
                          on systematic
                         review (e.g., the
   Copyright ©2011
by Cengage Learning.     group did better)
  All rights reserved
Three Assumptions Required
 for Learning from Structured
           Activity
• Each student must accept responsibility for
  his/her own behavior, actions, and 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

           © 2011 Cengage Learning. All rights reserved.
TRENDS   AFFECTING MANAGERS

           • Industrial restructuring
           • Increased amount and availability
             of information
           • Need to attract and retain the best
             employees
           • Need to understand human and
             cultural differences
           • Rapid shortening of response
             times in all aspects of business

               Copyright ©2011 Cengage Learning. All rights reserved
1. The film sequence shows three
                     people interacting in a work
                     environment. Which aspects of
                     organizational behavior and
                     management discussed earlier in
                     this chapter appear in this
                     sequence?
In Good Company
                  3. The three people in this sequence
                     represent different management
                     levels in the company. Which levels
                     do you attribute to Carter Duryea,
                     Dan Foreman, and Mark Steckle?

                  5. Critique the behavior shown in this
                     sequence. What are the positive
                     and negative aspects of the
                     behavior shown.

                      © 2011 Cengage Learning. All rights reserved.

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Chapter 1 power point

  • 1. Chapter 1 Organizational Behavior and Opportunity • Define organizational behavior. • Identify four action steps for responding positively in times of change. • Identify the important system components of an organization. • Describe the formal and informal elements of an organization. • Understand the diversity of organizations in the economy. • Describe the opportunities that change creates for organizational behavior. • Demonstrate the value of objective knowledge and skill development in the study of organizational behavior. © 2011 Cengage Learning. All rights reserved.
  • 2. 1 Learning Outcome Define organizational behavior. Clockworks or Snake pit? © 2011 Cengage Learning. All rights reserved.
  • 3. Organizational Behavior the study of individual behavior and group dynamics in organizations © 2011 Cengage Learning. All rights reserved.
  • 4. Organizational Behavior: Dynamics in Organizations Psychosocial Organizational Behavior Interpersonal Behavioral © 2011 Cengage Learning. All rights reserved.
  • 5. Organizational Variables that Affect Human Behavior Communication Organizational Performance Structure Human Appraisal Behavior Work Design Jobs Organizational Design © 2011 Cengage Learning. All rights reserved.
  • 6. External Perspective Understand behavior in terms of external events, environmental forces, and behavioral consequences. Internal Perspective Understand behavior in terms of thoughts, feelings, past experiences, and needs. Explain behavior by examining individuals’ history and personal value System. Explain behavior by examining surrounding external events and environmental forces. Both perspectives have produced motivational & leadership theories. © 2011 Cengage Learning. All rights reserved.
  • 7. Sociology the science of society Psychology Engineering the science the applied science of human of energy & matter behavior Interdisciplinary Anthropology Influences on Medicine the applied science the science of the Organizational of healing or treating learned behavior diseases to enhance of human beings Behavior health and well-being Management the study of overseeing activities and supervising people in organizations © 2011 Cengage Learning. All rights reserved.
  • 8. 2 Learning Outcome Identify four action steps for responding positively in times of change. © 2011 Cengage Learning. All rights reserved.
  • 9. Reactions to Change Rigid and Reactive Open and Responsive © 2011 Cengage Learning. All rights reserved.
  • 10. 3 Learning Outcome Identify the important system components of an organization. © 2011 Cengage Learning. All rights reserved.
  • 11. 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, and the overall organization are designed at the macro level Technology – the tools, knowledge, and/or techniques used to transform inputs into outputs © 2011 Cengage Learning. All rights reserved.
  • 12. Open Systems View of Organization © 2011 Cengage Learning. All rights reserved.
  • 13. 4 Learning Outcome Describe the formal and informal elements of an organization. © 2011 Cengage Learning. All rights reserved.
  • 14. Formal vs. Informal Organization Formal Organization – the official, legitimate, and most visible part of the system Informal Organization – the unofficial and less visible part of the system Hawthorne Studies: studies conducted during the 1920’s and 1930’s that suggested the importance of informal organizations © 2011 Cengage Learning. All rights reserved.
  • 15. Formal & Informal Elements of Organizations Social Surface Formal organization (overt) Goals and objectives Policies and procedures Job descriptions Informal organization (covert) Financial resources Beliefs and assumptions Authority structure Perceptions and attitudes Communication channels Values Products and services Feelings, such as fear, joy anger, trust, and hope Group norms Informal leaders © 2011 Cengage Learning. All rights reserved.
  • 16. 5 Learning Outcome Understand the diversity of organizations in the economy. © 2011 Cengage Learning. All rights reserved.
  • 17. Sectors of the U.S. Economy Manufacturing Nonprofit organizations Service Government © 2011 Cengage Learning. All rights reserved.
  • 18. 6 Learning Outcome Evaluate the opportunities that change creates for organizational behavior. © 2011 Cengage Learning. All rights reserved.
  • 19. Global Competition in Business Four challenges to managers relating to change in organizations • Globalization • Technological Innovation • Workplace Diversity • Ethics and Character © 2011 Cengage Learning. All rights reserved.
  • 20. [ QUALITY ] • Can give organizations in viable industries a competitive edge in international competition • A rubric for products and services of high status • A customer-oriented philosophy of management with implications for all aspects of organizational behavior • A cultural value embedded in successful organizations © 2011 Cengage Learning. All rights reserved.
  • 21. 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? © 2011 Cengage Learning. All rights reserved.
  • 22. Six Sigma a high-performance system for executing business strategy that is customer-driven, emphasizes quantitative decision making, and places a priority on saving money. © 2011 Cengage Learning. All rights reserved.
  • 23. Six Sigma vs. Total Quality Management © 2011 Cengage Learning. All rights reserved.
  • 24. Seven Categories in the Malcolm Baldrige National Quality Award Examination • Leadership • Information and analysis • Strategic quality planning • Human resource utilization • Quality assurance of products and services • Quality results • Customer satisfaction © 2011 Cengage Learning. All rights reserved.
  • 25. 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 and ethical behavior at work © 2011 Cengage Learning. All rights reserved.
  • 26. 7 Learning Outcome Demonstrate the value of objective knowledge and skill development in the study of organizational behavior. © 2011 Cengage Learning. All rights reserved.
  • 27. Learning about Organizational Behavior Learning Activity Mastery of basic objective Science knowledge Theories, Research, Articles Development of The Real World specific skills and abilities Organizational and Work Context Application You of knowledge Copyright ©2011 Cengage Learning. and skills All rights reserved Assessments & Exercises
  • 28. Learning from Structured Activity Individual or group structured activity (e.g., group decision activity) New or modified Systematic review knowledge or skills of the structured (e.g., consensus activity (e.g., group decisions are compare individual better) & group results) Conclusions based on systematic review (e.g., the Copyright ©2011 by Cengage Learning. group did better) All rights reserved
  • 29. Three Assumptions Required for Learning from Structured Activity • Each student must accept responsibility for his/her own behavior, actions, and 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 © 2011 Cengage Learning. All rights reserved.
  • 30. TRENDS AFFECTING MANAGERS • Industrial restructuring • Increased amount and availability of information • Need to attract and retain the best employees • Need to understand human and cultural differences • Rapid shortening of response times in all aspects of business Copyright ©2011 Cengage Learning. All rights reserved
  • 31. 1. The film sequence shows three people interacting in a work environment. Which aspects of organizational behavior and management discussed earlier in this chapter appear in this sequence? In Good Company 3. The three people in this sequence represent different management levels in the company. Which levels do you attribute to Carter Duryea, Dan Foreman, and Mark Steckle? 5. Critique the behavior shown in this sequence. What are the positive and negative aspects of the behavior shown. © 2011 Cengage Learning. All rights reserved.

Editor's Notes

  1. A corporate takeover brings star advertising executive Dan Foreman (Dennis Quaid) a new boss who is half his age. Carter Duryea (Topher Grace), Dan’s new boss, wants to prove his worth as the new marketing chief at Sports America , Waterman Publishing’s flagship magazine. Carter applies his unique approaches while dating Dan’s daughter, Alex (Scarlett Johansson). This sequence follows Foreman’s reaction toward the end of a speech given by Globecom CEO Teddy K. (Malcom McDowell). Ask your students: 1. The film sequence shows three people interacting in a work environment. Which aspects of organizational behavior and management discussed earlier in this chapter appear in this sequence? 2. The three people in this sequence represent different management levels in the company. Which levels do you attribute to Carter Duryea, Dan Foreman, and Mark Steckle? 3. Critique the behavior shown in this sequence. What are the positive and negative aspects of the behavior shown.