Chapter 1 Organizational Behavior and Opportunity

Employees come first at

In 2007, The nations top supermarket (The Food Network)
Listed as one of the 100 Best Companies to Work For (Fortune Magazine)

Wegmans: loyal workers, 8% turnover rate

Why? Employees matter at Wegmans! Company motto: Employees first. Customers second.
2

The people make the place!

People make their workplaces work People can make work an exciting, fun, and productive place to be or a routine, boring, and ineffective place In order to succeed in your careers, you need to learn how to manage people
3

What is Organization?
Groups of people who work interdependently toward the same purpose
Structured patterns of interaction Coordinated tasks Work toward the same purpose

What is Organizational Behavior?

The study of individual behavior and group dynamics in organizations

Attempts to understand human behavior in organizational setting, the organization itself and the individualorganization interface

Why OB Matters?
It is all about things you CARE about

OB can help you

become a more engaged organizational member Get along with others Get a great job Lower your stress level Make more effective decisions Work effectively within a team
6

Why OB Matters?
Employers CARE about OB
Communication skills Honesty/integrity Interpersonal skills Motivation Strong work ethics

Organizations CARE about OB

The best companies understand that people make the place Companies that value their employees are more profitable
7

Isnt OB Just Common Sense?

The answer is NO!

OB is the systematic study of how individuals and groups act within organizations

True/False?
Happy workers are productive workers. All individuals are most productive when their boss is friendly, trusting, and approachable.

The best leaders are those that exhibit consistent behavior, regardless of the situations they face.
Everyone wants a challenging job.

You have to scare people a little to get them to do their jobs.

Everyone is motivated by money. Most people are much more concerned with the size of their own salaries than with the size of other peoples salaries. The most effective work groups are devoid of conflict.
9

Organizational Behavior
Characteristics of the OB field:
OB applies the scientific method to practical managerial problems OB focuses on three levels of analysis (individual, group, organization) OB is multidisciplinary in nature OB seeks to improve organizational effectiveness and the quality of life at work OB is performance-oriented

10

The Importance of Organizational Behavior

Organizations influence our lives powerfully
Most people are born/educated in organizations Most people acquire most of their material possessions from organizations Most people die as members of organizations Many of our activities are regulated by governmental organizations Most people spend most of their lives in organizations

11

The Importance of Organizational Behavior

Describe the complex human context of organizations Provide a set of insights and tools that all managers can use to carry out their jobs more effectively Understand why others in the organization behave as they do Understand their needs, motives, behaviors, and feelings
12

 God gave all the easy problems to the physicists The physical sciences have developed a number of universal laws that apply in a wide number of situations Human behavior is more complex Can we develop simple, accurate generalizations about human behavior?
Does money motivate people under every condition?

13

What are the basic managerial roles?

Interpersonal roles: to relate to other people in certain ways, to hire, train and motive employees Informational roles: to seek information that may be of value to the organization, to transmit this information to others Decision-making roles: to initiate change, to decide who will get what, to reach agreements with other organizations Behavioral processes are crucial in each of these roles!
14

Human Behavior in Organizations

What factors affect a persons behavior?

Individual (personality, values, perceptions) Interpersonal (leadership, communication,

conflict)

Organizational (culture, work environment)

15

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
16

Fundamental Assumptions
OB recognizes the dynamic nature of organizations.
Open Systems: Self-sustaining systems that transform input from the external environment into output, which the system then returns to the environment.

OB assumes there is no one best approach

Contingency Approach: A perspective suggesting that organizational behavior is affected by a large number of interacting factors. How someone will behave is said to be contingent upon many different variables at once.

17

Open Systems View of Organization

Task environment: Competitors Unions Regulatory agencies Clients

Structure
Inputs: Material Capital Human

Task

Technology

Outputs: Products Services

People (Actors)
Organizational Boundary

Components of an Organization
A complete understanding of OB requires both understanding of human behavior and of organizational context

Task an organizations mission, purpose, or goal

for existing People the human resources of the organization Structure the manner in which an organizations 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 19 techniques used to transform inputs into outputs

Formal vs. Informal Organization

Formal Organization: The official, legitimate, and most visible part of the system
Goals and objectives, policies and procedures, job descriptions, financial resources, authority structure

Informal Organization: The unofficial and less visible part of the system
Beliefs and assumptions, perceptions and attitudes, values, feelings, group norms
20

Trends Affecting Managers

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

21

Contingency Approach to OB
There is no one best way to manage in every situation Research has shown that given certain characteristics of a job and certain characteristics of the individuals and groups involved, some management practices work better than others Managers must find different ways that fit different situations

22

Todays Challenges in the Workplace

Challenges at the Individual Level
Job Satisfaction Empowerment Behaving Ethically

Challenges at the Group Level

Working With Others Workforce Diversity

Todays Challenges in the Workplace

Challenges at the Organizational Level
Productivity Developing Effective Employees
Absenteeism Turnover Organizational Citizenship

Competition From the Global Environment Managing and Working in a Global Village
24

Discussion
Think about the worst coworker you have ever had. Why do you think he/she acted that way?

What would you do to improve his/her behavior?

25

Summary
Define organizational behavior

Discuss the importance of organizational behavior Identify the important system components of an organization
Describe the formal and informal elements of an organization Identify trends affecting managers
26