Chapter one : managing people and organization University of Bahrain College of Business Administration MGT 233: Organizational Behavior Managing People and Organization Chapter one : managing people and organization RICKY W.GRIFFN GREGORY MOORHEAD Dr.Mahnmood Asad MGT 233

Chapter Learning Objectives After studying this chapter you should be able to: Define organizational behavior. Identify the functions that comprise the management process and relate them to organizational behavior. Relate organizational behavior to basic managerial roles and skills. Describe contemporary organizational behavior characteristics. Discuss contextual perspectives on organizational behavior. Describe the role of organizational behavior in managing for effectiveness Dr.Mahnmood Asad MGT 233

What is Organizational Behavior? Organizational behavior (OB) is the study of: Human behavior in organizational settings The interface between human behavior and the organization The organization itself MGT 233 Dr.Mahnmood Asad

The Nature of Organizational Behavior FIGURE 1.1 Dr.Mahnmood Asad MGT 233

The Importance of Organizational Behavior Organizations can have a powerful influence on our lives: Most people are born and 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 MGT 233 Dr.Mahnmood Asad

Organizational Behavior and Management: Why Study OB? Studying organizational behavior can clarify factors that affect how managers manage by: Describing the complex human context of organizations Defining the associated opportunities, problems, challenges, and issues Isolating important aspects of the manager’s job Offering specific perspectives on the human side of management MGT 233 Dr.Mahnmood Asad

Why Study OB? (cont’d) Studying OB helps managers understand: The behaviors of others in the organization Personal needs, motives, behaviors, feelings and career dynamics Attitudinal processes, individual differences, group dynamics, inter group dynamics, organization culture, power, and political behavior Interactions with people outside of the organization and other organizations The environment, technology, and global issues Dr.Mahnmood Asad MGT 233

Organizational Behavior and the Management Process Management Functions Planning Organizing Leading Controlling Resources Used by Managers Human Financial Physical Information MGT 233 Dr.Mahnmood Asad

Functions of Management Planning Determining an organization’s desired future position and the best means of getting there Organizing Designing jobs, grouping jobs into units, and establishing patterns of authority between jobs and units Leading Getting organizational members to work together toward the organization’s goals Controlling Monitoring and correcting the actions of the organization and its members to keep them directed toward their goals MGT 233 Dr.Mahnmood Asad

Basic Managerial Functions FIGURE 1.2 Dr.Mahnmood Asad MGT 233

Organizational Behavior and Manager’s Job Managers must play a variety of roles using a set of critical skills in order to carry out the basic management functions successfully MGT 233 Dr.Mahnmood Asad

Organizational Behavior and the Manager’s Job Interpersonal Informational Decision-Making Basic Managerial Roles MGT 233 Dr.Mahnmood Asad

Important Managerial Roles Category Role Example Table 1.1 Important Managerial Roles Category Role Example Interpersonal Figurehead Attend employee retirement ceremony Leader Encourage workers to increase productivity Liaison Coordinate activities of two committees Informational Monitor Scan Business Week for information about competition Disseminator Send out memos outlining new policies Spokesperson Hold press conference to announce new plant Decision-Making Entrepreneur Develop idea for new product and convince others of its merit Disturbance handler Resolve dispute Resource allocator Allocate budget requests Negotiator Settle new labor contract Dr.Mahnmood Asad MGT 233

Critical Managerial Skills Technical Skills necessary to accomplish specific tasks within the organization Interpersonal Skills used to communicate with, understand, and motivate individuals and groups Conceptual Skills used in abstract thinking Diagnostic Skills to understand cause-effect relationships and to recognize optimal solutions to problems MGT 233 Dr.Mahnmood Asad

Managerial Skills at Different Organizational Levels FIGURE 1.3 Managerial Skills at Different Organizational Levels Dr.Mahnmood Asad MGT 233

Contemporary Organizational Behavior Organizational behavior is characterized by an interdisciplinary focus and a descriptive nature. Dr.Mahnmood Asad MGT 233

Contemporary Organizational Behavior Characteristics of the Field Interdisciplinary in focus Descriptive in nature Basic Concepts of the Field Individual processes Interpersonal processes Organizational processes/characteristics MGT 233 Dr.Mahnmood Asad

Characteristics of the Field An Interdisciplinary Focus: Organizational behavior synthesizes several other fields, including psychology, sociology, anthropology, political science, economics, engineering, and medicine 2. A Descriptive Nature : Currently the primary goal of organizational behavior is to describe, rather than prescribe, relationships between two or more behavioral variables. Reasons for organizational behavior’s descriptive nature include the immaturity of the field, the complexities of studying human behavior, and the lack of valid, reliable, and accepted definitions and measures. MGT 233 Dr.Mahnmood Asad

Basic Concepts of the Field The concepts of primary concern for organizational behavior can be grouped into three categories: individual processes, interpersonal processes, and organizational processes and characteristics MGT 233 Dr.Mahnmood Asad

Basic Concepts of the Field Individual processes : include individual differences (attitudes, personalities, etc.), perception, attribution, employee motivation, learning, reinforcement, and work stress Interpersonal processes : deal with communication in organizations, groups, teams, leadership, decision making, and negotiations . Organizational processes and characteristics : include organization structure, organization design, organization culture, and organization change and development MGT 233 Dr.Mahnmood Asad

The Framework for Understanding Organizational Behavior FIGURE 1.4 The Framework for Understanding Organizational Behavior Dr.Mahnmood Asad MGT 233

Contemporary Organizational Behavior Contextual Perspectives on Organizational Behavior : Systems Perspective Situational Perspective Contingency Interactional MGT 233 Dr.Mahnmood Asad

Contextual Perspectives on Organizational Behavior. Several contemporary perspectives have evolved from the field of organizational behavior. 1. A.Systems and Situational Perspectives : The systems and situational perspectives are concerned with interrelationships among organizational elements and between organizational and environmental elements. Done by Dr.MAHMOOD ALI Dr.Mahnmood Asad MGT 233

The Systems Perspective An interrelated set of elements that function as a whole—inputs are combined/transformed by managers into outputs from the system Value of the Systems Perspective Underscores the importance of an organization’s environment Conceptualizes the flow and interaction of various elements of the organization. Dr.Mahnmood Asad MGT 233

The Situational Perspective Recognizes that most organizational situations and outcomes are influenced by other variables The Universal Model Presumes a direct cause-and-effect linkage between variables Complexities of human behavior and organizational settings make universal conclusions virtually impossible Dr.Mahnmood Asad MGT 233

The Systems Approach to Organizations FIGURE 1.5 The Systems Approach to Organizations Dr.Mahnmood Asad MGT 233

Universal Versus Situational Approach FIGURE 1.6 Universal Versus Situational Approach Dr.Mahnmood Asad MGT 233

Interactionalism: People and Situations Interactionalist Perspective Focuses on how individuals and situations interact continuously to determine individuals’ behavior Attempts to explain how people select, interpret, and change various situations. Dr.Mahnmood Asad MGT 233

The Interactionalist Perspective on Behavior in Organizations FIGURE 1.7 The Interactionalist Perspective on Behavior in Organizations Dr.Mahnmood Asad MGT 233

Managing for Effectiveness Managers work toward accomplishing the various goals (outcomes) that exist at specific levels in an organization : 1. Individual-level outcomes result from individual behaviors, including productivity, performance, absenteeism, and turnover. Attitudes and stress are other individual-level outcomes influenced by managers. 2.Group and team-level outcomes include productivity, performance, and attitudes just as individuals do. But groups may also develop norms of behavior and levels of cohesiveness. 3.Organization-level outcomes, in addition to those for individuals and groups, may include measures of financial performance such as profitability, stock price, return on investment, growth rate, and so on MGT 233 Dr.Mahnmood Asad

Managing for Effectiveness FIGURE 1.8 Managing for Effectiveness MGT 233 Dr.Mahnmood Asad

Organizational Behavior in Action Based on your reading of the chapter opening case: What is employee turnover so low at Wegmans? Which basic managerial roles and skills is Danny Wegman using to show his employees that the organization really cares about them? Why haven’t competitors adopted the Wegmans’ employee-focused strategy? Dr.Mahnmood Asad MGT 233