Dear Students, st Welcome to our 1 lecture of the week !!

Chapter 1:
McGraw-Hill/Irwin McShane/Von Glinow OB 5e

Introduction to the Field of Organizational

Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Behavior and Organizations

What is Organizational behavior? The study of what people think, feel, and do (behave) in and around organizations

Organizations
Groups of people who work

interdependently toward some purpose

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Why Study OB?

To understand behavior To predict behavior To influence behavior getting things done OB improves an organizations financial health OB is for everyone

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OB Foundations

Distinct field around the 1940s OB concepts discussed for more than 2,000 years Some pivotal scholars before OB formed include:
Max Weber Frederick Winslow Taylor Elton Mayo Chester Barnard (shown) Mary Parker Follett

Chester Barnard
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Old Perspective of Organizational Effectiveness

Goal oriented -- Effective firms achieve their stated objectives No longer accepted as indicator of org effectiveness

Could set easy goals

Some goals too abstract to

evaluate Company might achieve wrong goals

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Four Perspectives of Organizational Effectiveness

Open Systems Perspective Organizational Learning Perspective High-Performance Work Practices Perspective Stakeholder Perspective
NOTE: Need to consider all four perspectives when assessing a companys effectiveness
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1. Open Systems Perspective

Environment
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1. Open Systems Perspective

Organizations are complex systems that live within an external environment Effective organizations:
Maintain a close fit with changing conditions in

the external environment Transform inputs to outputs efficiently and flexibly

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2. Organizational Learning Perspective

An organizations capacity to acquire, share, use, and store valuable knowledge

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Organizational Learning Processes

KNOWLEDGE ACQUISITION
Extracting information and ideas from its environment as well as through insight

KNOWLEDGE SHARING
Distributing knowledge throughout the organization

KNOWLEDGE USE
Applying knowledge
to organizational processes in ways that improves the organizations effectiveness

Examples in practice
-Hiring skilled staff -Acquiring companies -Experimenting -company intranet -meetings -blogs -company magazines -Giving staff freedom to try out ideas

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Organizational Memory
The storage and preservation of intellectual capital Retain intellectual capital by:

Keeping knowledgeable employees

Transferring knowledge to others

Transferring human capital to structural capital

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Intellectual Capital (i.e. intangible assets of a

company)

Human Capital

Knowledge that people possess

Structural Capital

Knowledge captured in systems and structures

Relationship Capital

Value derived from relationship with customers, reliable suppliers, etc.

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3. High Performance Work Practices (HPWPs)

HPWPs are internal systems and structures that are associated with successful companies
1. Employees are competitive advantage 2. Value of employees increased through specific practices. 3. Maximum benefit when org practices are bundled

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High Performance Work Practices

Example of High Performance Work Practices:
Employee involvement and job autonomy (and

their combination as self-directed teams).

Employee competence (selection, training, etc) Performance-based rewards

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4. Stakeholder Perspective

Stakeholders: an entity (individual/organization) who affects or is affected by the firms objectives and actions

Challenges with stakeholder perspective:

Stakeholders have conflicting interests

Firms have limited resources

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Stakeholder Perspective

For example: Lockheed Martin is rated by engineering students as an ideal employer

Pays attention to its many

stakeholders Relies on values and ethics to guide decisions Strong emphasis on corporate social responsibility (e.g. photo shows clean-up after hurricane Katrina: 2005)

Lockheed Martin

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Stakeholders: Values and Ethics

Organizational Values and ethics prioritize stakeholder interests Values

Stable, evaluative beliefs, guide

preferences for outcomes or courses of action in various situations

Ethics
Moral principles/values,

determine whether actions are right/wrong and outcomes are good or bad

Lockheed Martin

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Stakeholders and CSR

Stakeholder perspective includes corporate social responsibility (CSR)

Benefit society and environment

beyond the firms immediate financial interests or legal obligations Organizations contract with society

Triple bottom line

Economy, society, environment

Lockheed Martin

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Types of Individual Behavior

(individual level dependent variable)

Task Performance

Goal-directed behaviors under persons control that support organizational objectives

Organizational Citizenship

Contextual performance cooperation and helpfulness beyond required job duties

more
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Types of Individual Behavior

Counterproductive Work Behaviors (CWB)

(cont)

Voluntary behaviors that potentially harm the organization

Joining/staying with the Organization

Agreeing to employment relationship; remaining in that relationship

Maintaining Work Attendance

Attending work at required times

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Contemporary Challenges for Organizations

1. Globalization

Economic, social, and cultural connectivity with people in other parts of the world Effects of globalization on organizations
New organizational structures Increasing diversity Increasing competitive pressures

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2. Increasing Workforce Diversity

Surface-level diversity
Observable demographic and other overt differences in

people (e.g. race, ethnicity, gender, age)

Deep-level diversity
Differences in psychological characteristics
(e.g. personalities, beliefs, values, and attitudes)

Implications
Pros: Improved decision making Cons: Communication problems, Team Conflict
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3. Emerging Employment Relationships

Work/life balance
Minimizing conflict (balancing) between work and

nonwork demands number one indicator of career success

Virtual work
Using information technology to perform ones job away

from the traditional physical workplace Telework issues of replacing face time, clarifying employment expectations

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Organizational Behavior Anchors

(basic beliefs on how OB knowledge is developed)

1. Multidisciplinary anchor
Many OB concepts adopted from other disciplines OB develops its own theories, but scans other fields

2. Systematic research anchor

OB researchers rely on scientific method E.g. forming research questions, systematically collecting data, testing hypotheses, Qualitative or quantitative data analysis, etc

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Organizational Behavior Anchors

(cont)

3. Contingency anchor

(not fixed, depends on...)

A particular action may have different consequences in

different situations Need to diagnose the situation and select best strategy under those conditions

4. Multiple levels of analysis anchor

Individual, team, organizational level of analysis OB topics usually relevant at all three levels of analysis
Note: Individual processes (Chap 2-7) Team processes (Chap 8-12) Organizational processes (Chap 13-15)
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Q&A
session

McGraw-Hill/Irwin McShane/Von Glinow OB 5e

Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

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