This document defines organizational behavior as individual and group behaviors within organizations. It outlines learning objectives related to defining organizational behavior, responding to change, organizational components, and diversity in organizations. Key aspects of organizations discussed include their open system nature with internal and external factors, the formal and informal structures, and challenges related to change, globalization, diversity and ethics.

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May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in
part.
Organizational
Behavior and
Opportunity

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Learning Objectives
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1 Define organizational behavior.
2 Identify four action steps for responding
positively in times of change.
3 Identify the important system components
of an organization.
4 Describe the formal and informal elements
of an organization.
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Learning Objectives continued
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5 Understand the diversity of organizations in
the economy, as exemplified by the six
focus organizations.
6 Recognize the opportunities that change
creates for organizational behavior.
7 Demonstrate the value of objective
knowledge and skill development in the
study of organizational behavior.
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Organizational Behavior Defined
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Organizational behavior is
individual behavior and group
dynamics in organizations.

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Times of Challenge and Change
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Lead to Opportunities
The call to competition,
contest or battle
The transformation or modification of
an organization and/or its stakeholders
Favorable times or chances for
progress and advancement

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Organizational Variables that Affect Human Behavior
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Human
Behavior
Jobs
Work Design
Communication Performance
Appraisal
Organizational
Design
Organizational
Structure

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Two Perspectives on Human Behavior
Understands
behavior through
factors inside the
person
Interprets behavior
through thoughts
and feelings
Internal
Understands
behavior through
factors outside the
person
Interprets behavior
through external
events and
environmental
factors
External
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Psychology
the science
of human
behavior
Management
the study of overseeing
activities and supervising
people in organizations
Anthropology
the science of
human learned
behavior
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 and
matter
Sociology
the science
of society
Interdisciplinary
Influences on
Organizational
Behavior

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Behavior in Times of Change
• In the midst of change, people often become
rigid and reactive, rather than open and
responsive
• See the opportunity in change
• Have a positive attitude
• Ask questions
• Listen to the answers
• Be committed to success
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Organizations as Open Systems
• Organizations are open systems of
interacting components
• People, tasks, technology, and structure
come together for a purpose
• Internal components interact with external
components in the task environment
• Competitors
• Customers
• Vendors
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Internal Components of an Organization
Task – an organization’s mission, purpose,
or goal for existing
People – the human resources of the
organization
Technology – the tools, knowledge,
and/or techniques used to transform inputs
into outputs
Structure – the systems of communication,
authority and roles, and workflow
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The Formal and 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
The importance of employees’ moods,
emotions, and dispositional affect is a key
factor in critical organizational outcomes.
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Six Focus Organizations
• Netflix, Inc.
• Ford Motor Company
• Oracle Corporation
• Groupon
• Dyson
• QuikTrip
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The Challenges of Change
Three challenges for managers relating to
change in organizations:
1. Globalization leads to intense rivalry
2. Workforce diversity
◦ Ethnic
◦ Religious
◦ Gender
3. Ethics
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Quality Is…
• 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
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^ Three Key Questions in Evaluating
Quality-Improvement Ideas
• Does the idea improve customer response?
• Does the idea accelerate results?
• Does the idea raise the effectiveness of
resources?
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Six Sigma
• A philosophy for company-wide quality
improvement
• Characterized by
• Customer-driven approach
• Quantitative decision making
• A priority on saving money
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Managers Act to Advance Total Quality
 Engage in participative management
 Be willing to change everything
 Focus quality efforts on customer satisfaction (not
cost cutting)
 Include quality as a reward criterion
 Communicate quality improvement successes (or
failures)
 Be actively and personally involved in quality efforts
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Challenges to Managing Organizational Behavior
• Increasing globalization of organizations’
operating territory
• Increasing diversity of organizational
workforces
• Continuing demand for higher levels of
moral and ethical behavior at work
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Learning about Organizational Behavior
• First, the science of organizational behavior
requires the mastery of a certain body of
objective knowledge from research and
scientific activities
• Second, the practice of organizational behavior
requires skill development based on knowledge
and an understanding of yourself
• Third, both objective knowledge and skill
development must be applied in real-world
settings
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Trends Affecting Managers
• Industrial restructuring
• A dramatic increase in the amount and
availability of information
• A need to attract and retain the best
employees
• A need to understand a wide range of
human and cultural differences
• A rapid shortening of response times in all
aspects of business activities
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The Challenge for Managers Today
Reweaving the fabric of human relationships
within, across, and outside the organization
requires
• Trust
• Predictability
• A sense of security
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Knowledge Becomes Power
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Knowledge
base
Facts
Information
Theories

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Chapter 1: Reflect & Discuss
In Good Company Video Clip
• Which aspects of organizational behavior and
management discussed earlier in this chapter appear
among the three people in this work environment?
• These three people represent different management
levels in the company. Which levels do you attribute
to Carter Duryea, Dan Forman, and Mark Steckle?
• Critique the behavior in the sequence. What are the
positive and negative aspects of the behavior shown?
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