This chapter introduces organizational behavior as the study of how individuals and groups act within organizations. It discusses how organizations influence employee behavior and the forces reshaping management like technology, globalization, and diversity. The origins of management are explored through the scientific management principles of Taylor and Fayol's functions of management. Key topics in organizational behavior are identified like leadership, structure, change, and individual/group behavior. The chapter emphasizes that an organization's success relies on effectively managing its human resources.

1. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-1
ORGANIZATIONAL BEHAVIOR
MANAGEMENT
Prepared by: Cheryl M. Asia

2. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-2
Chapter
Introduction to Organizational
Behavior
1

3. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-3
Introduction
• Organizations are much more than only a
means for providing goods and service
• They create the settings in which most of us
spend our lives
• They have profound influence on employee
behavior

4. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-4
The core 21st
century qualities
needed to create the ideal
work atmosphere begin with
intelligence, passion, a strong
work ethic, and a genuine
concern for people.

5. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-5
Managing and Working Today and in the
Future:
• Managers must become agile and
flexible to help their firms develop and
sustain competitive advantage
• To be successful, managers will need to
harness the powers of:
• information technology
• human capital

6. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-6
Rapidity of
Change
New Worker-
Employer
Psychological
Contract
Technology
Globalism
Cultural
Diversity
Power of
Human
Resources
Environmental Forces Reshaping
Management Practice

7. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-7
Challenges of These Forces to Managers
• Resisting the reality of
these forces will likely lead
to:
• Unnecessary conflict
• Reduced managerial
performance
• Reduced non-
managerial performance
• Lost opportunities
• Resisting the reality of
these forces will likely lead
to:
• Unnecessary conflict
• Reduced managerial
performance
• Reduced non-
managerial performance
• Lost opportunities
• Failing to cope and deal
with these forces will likely
result in:
• Job dissatisfaction
• Poor morale
• Reduced commitment
• Lower work quality
• Burnout
• Poor judgment
• Unhealthy consequences
• Failing to cope and deal
with these forces will likely
result in:
• Job dissatisfaction
• Poor morale
• Reduced commitment
• Lower work quality
• Burnout
• Poor judgment
• Unhealthy consequences

8. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-8
The Origins of Management
Frederic W. Taylor’s
Scientific
Management
Principles
Henri Fayol’s
Functions of
Management

9. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-9
Taylor’s Scientific Management Principles
(1 of 2)
• Develop a science for each element of an
employee’s work
• which replaces the old rule-of-thumb
method
• Scientifically select and then train, teach,
and develop the worker
• whereas in the past a worker chose the
work to do and was self-trained

10. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-10
Taylor’s Scientific Management Principles
(2 of 2)
• Heartily cooperate with each other to
insure that all work was done in
accordance with the principles of science
• There is an almost equal division of the
work and the responsibility between
management and non-managers

11. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-11
Impact of Fayol’s Functions of Management
• Emphasized the
importance of carefully
practicing efficient:
• planning
• organizing
• commanding
• coordinating
• controlling
• Emphasized the
importance of carefully
practicing efficient:
• planning
• organizing
• commanding
• coordinating
• controlling
• Management is a separate
body of knowledge that can
be applied in any type of
organization
• A theory of management
that can be learned and
taught
• There is a need for
teaching management in
colleges
• Management is a separate
body of knowledge that can
be applied in any type of
organization
• A theory of management
that can be learned and
taught
• There is a need for
teaching management in
colleges

12. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-12
Definition of Organizational Behavior (OB)
• The study of human behavior, attitudes,
and performance within an organizational
setting
• drawing on theory, methods, and principles from
such disciplines as psychology, sociology, political
science, and cultural anthropology
• to learn about individual, groups, structure, and
processes

13. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-13
Key Points About OB
1. OB is a way of thinking
2. OB is multidisciplinary
3. There is a distinctly humanistic orientation
within OB
4. The field of OB is performance-oriented
5. The role of the scientific method is important in
studying variables and relationships
6. OB has a distinctive applications orientation
1. OB is a way of thinking
2. OB is multidisciplinary
3. There is a distinctly humanistic orientation
within OB
4. The field of OB is performance-oriented
5. The role of the scientific method is important in
studying variables and relationships
6. OB has a distinctive applications orientation

14. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-14
Studying Organizational Behavior
Leaders and
Organizational
Behavior
The Hawthorne
Studies

15. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-15
Organizational
Processes
Organizational
Structure
Change and
Innovation
Understanding
and Managing
Individual
Behavior
Group Behavior
and
Interpersonal
Influence
The
Organization’s
Environment
Topics in Studying and Understanding OB

16. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-16
Key Points (1 of 2)
• The key to an organization’s success is
its human resources
• Organizations need human resources
that:
• work hard
• think creatively
• perform excellently

17. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-17
Key Points (2 of 2)
• Rewarding, encouraging, and nurturing
the human resources in a timely and
meaningful manner is what is required
• The behavior of employees is the key to
achieving effectiveness