1. Organizational Behavior
Chapter Introduction
Organizational Behavior
Prepared by Sohail Ayaz
Institute of Social Sciences

2. What Would You Do? Headquarters, Amazon.com, Seattle, Georgia.
Amazon grew so fast that it lost control of the basics
Sales were growing, but the company was poorly managed
Amazon has lost over $3 billion since its inception, but is finally earning profits
How can Amazon do a better job to fix what’s going wrong?

3. What Is Management?
After reading the next two sections, you should be able to:
describe what management is.
explain the four functions of management.

4. Getting work done through others
Management Is…
Effectiveness
Efficiency
Getting work done through others 1

5. Enter Organizational Behavior
Organizational behavior (OB)
A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.
© 2005 Prentice Hall Inc. All rights reserved.

6. Organizational Performance
Efficiency
A measure of how well or how productively resources are used to achieve a goal
Effectiveness
A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved.

8. Management Functions Planning Organizing Leading Controlling2

9. Planning
Planning
Determining organizational goals and a means for achieving them
2.1

10. Organizing Deciding where decisions will be made
Who will do what jobs and tasks
Who will work for whom
2.2

11. Leading Leading Inspiring Motivating 2.3
For Anne Mulcahy, CEO of Xerox,
the key to successful leadership is
communicating with the company’s
most important constituents:
employees and customers.
2.3

12. Controlling Controlling
Monitoring progress toward goal achievement and taking corrective action when needed
2.4

13. The Control Process 2.4 Set standards to achieve goals
Make changes to return performance to standards
Compare actual performance to standards
2.4

14. What Do Managers Do?
After reading the next two sections, you should be able to:
describe different kinds of managers.
explain the major roles and subroles that managers perform in their jobs.

15. Levels of Management Top Managers Middle Managers First-Line Managers
Team Leaders 3

16. Levels of Management

17. Top Managers Chief Executive Officer (CEO)
Chief Operating Officer (COO)
Chief Financial Officer (CFO)
Chief Information Officer (CIO)
3.1 3

18. Responsibilities of Top Managers
Creating a context for change
Developing commitment and ownership in employees
Creating a positive organizational culture through language and action
Monitoring their business environments
3.1

19. Middle Managers Plant Manager Regional Manager Divisional Manager 3.2

20. Responsibilities of Middle Managers
Plan and allocate resources to meet objectives
Coordinate and link groups, departments, and divisions
Monitor and manage the performance of subunits and managers who report to them
Implement changes or strategies generated by top managers
3.2

21. First-Line Managers Office Manager Shift Supervisor Department Manager
3.3 3

22. Responsibilities of First-Line Managers
Manage the performance of entry-level employees
Encourage, monitor, and reward the performance of workers
Teach entry-level employees how to do their jobs
Make detailed schedules and operating plans
3.3

23. Responsibilities of Team Leaders
Facilitate team performance
Manage external relations
Facilitate internal team relationships
3.4

24. Managerial Roles Interpersonal Informational Decisional 4 Figurehead
Leader
Liaison
Monitor
Disseminator
Spokesperson
Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator 4
Adapted from Exhibit 1.4
H. Mintzberg, “The Manager’s Job: Folklore and Fact:.” Harvard Business Review, July-August 1975.

25. Managerial Roles Interpersonal Roles Figurehead Leader Liaison
Managers perform ceremonial duties
Managers motivate and encourage workers to accomplish objectives
Managers deal with people outside their units
4.1

26. Managerial Roles Informational Roles
Monitor
Disseminator
Spokesperson
Managers scan their environment for information
Managers share information with others in their company
Managers share information with others outside their departments or companies
4.2

27. Managerial Roles Decisional Roles Entrepreneur Disturbance Handler
Resource Allocator
Negotiator
Managers adapt to incremental change
Managers respond to problems that demand immediate action
Managers decide who gets what resources
Managers negotiate schedules, projects, goals, outcomes, resources, and raises
4.3

28. What Does It Take to Be a Manager?
After reading the next three sections, you should be able to:
explain what companies look for in managers.
discuss the top mistakes that managers make in their jobs.
describe the transition that employees go through when they are promoted to management.

29. What Companies Look for in Managers
Technical Skills
Human Skills
Conceptual Skills
Motivation to Manage 5

30. What Companies Look for in Managers
Skills are more or less important at different levels of management: 5

31. Mistakes Managers Make
1. Insensitive to others
2. Cold, aloof, arrogant
3. Betrayal of trust
4. Overly ambitious
5. Specific performance problems with the business
6. Overmanaging: unable to delegate or build a team
7. Unable to staff effectively
8. Unable to think strategically
9. Unable to adapt to boss with different style
10. Overdependent on advocate or mentor 6
Adapted from Exhibit 1.6 McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983

32. The First Year Management Transition
Be the boss
Formal authority
Manage tasks
Job is not managing people
Initial expecta- tions were wrong
Fast pace
Heavy workload
Job is to be problem-solver and troubleshooter
No longer “doer”
Communication, listening, positive reinforcement
Learning to adapt and control stress
Job is people development
Managers’ Initial Expectations
After Six Months As a Manager
After a Year As a Manager 7
Adapted from Exhibit 1.7

33. Why Management Matters
After reading this section, you should be able to:
explain how and why companies can create competitive advantage through people.

34. Competitive Advantage through People
Management Practices in Top Performing Companies
1. Employment Security
2. Selective Hiring
3. Self-Managed Teams and Decentralization
4. High Wages Contingent on Organizational Performance
5. Training and Skill Development
6. Reduction of Status Differences
7. Sharing Information 8
Adapted from Exhibit 1.8

35. Competitive Advantage through People
J.M. Smucker Company has been on Fortune’s list of 100 Best Companies to Work For since the list was started in Smucker’s has extremely low employee turnover and extremely high employee satisfaction.
Tim and Richard Smucker are pictured here.

36. Competitive Advantage through People
Competitive Advantages of Well-Managed Companies
Sales Revenues
Profits
Stock Market Returns
Customer Satisfaction
Web Link 8