The Study of Organizations Chapter 1 The Study of Organizations Learning Objectives After completing Chapter 1, you should be able to: Define The term organizational behavior Explain The contingency approach to managing behavior Identify Why managing workplace behaviors is different in different countries Compare The goal, systems, and stakeholder approaches to effectiveness Describe The type of environmental forces that make it necessary for organizations to change

Chapter Outline Studying Organizational Behavior A Model for Managing Organizations Perspectives on Effectiveness The Nature of Managerial Work Three Ways to Think about Effectiveness Managerial Work & the Behavior, Structure, and Processes of Organizations 2

Organizational behavior is a field of study that draws on theory, methods & principles from different disciplines. It seeks to learn about: Individuals’ perceptions, values, learning capacities, & actions while working in groups & within the organization. The effect of the external environment on the organization and its human resources, missions, objectives, & strategies. 3

Organizational behavior: Focuses on human behavior at individual, group, & organizational levels. Is multidisciplinary. Has a humanistic orientation. Is performance oriented. Is affected by the external environment. Relies on the scientific method. Has an applications orientation. Organizational behavior: 4

FIGURE 1-1: CONTRIBUTIONS TO THE STUDY AND APPLICATION OF OB Behavior Science Topic, model, technique Level of Analysis Perception Recruitment Values Selection Attitudes Motivation Individual Psychology Organization theory Power Organization culture Work teams Group development Change Sociology Field of OB Behavioral change Group Attitude change decision making Group processes Group Social Psych. Influence tactics Empowerment Power and ethics Conflict resolution Political strategies Illusion of power Pol. Science Organization Cross-cultural Values & morals communication Cross-cultural analysis Anthropology

OPERATING ASSUMPTIONS Organizational behavior follows principles of human behavior Organizations are social systems Multiple factors shape organizational behavior Contingency approach: there’s no one best way to manage in every situation; managers must find different ways that fit different situations Structure and processes affect organizational behavior and the emergent culture

Organizational Structure A blueprint that shows how people & jobs are grouped in an organization. Depicted in an organization chart. Organizational Processes Activities that give life to organizational structure, such as communication, decision making, & career development. 5

FIGURE 1-2: A MODEL FOR MANAGING ORGANIZATIONS Environment Environment Behavior within organizations: The individual Individual differences and diversity (chapter 4) Content explanations of motivation (chapter 5) Process explanations of motivation (chapter 6) Rewards obtained through organized behavior (chapter 7) Managing effective change and renewal processes (ch. 18) Behavior within organizations: Groups and interpersonal influence Group behavior and teamwork (chapter 8) Intergroup behavior and team building (chapter 9) Realities of power and politics (chapter 10) Basic explanations for effective leadership practice (chapter 11) The structure and design of organizations The structural anatomy of organizations (chapter 13) Designing effective jobs in the global era (chapter 14) Designing effective organizations in the global era (chapter 15) The processes of organizations Managing effective communication processes (chapter 16) Managing effective decision-making processes (chapter 17)

THREE PERSPECTIVES ON EFFECTIVENESS FIGURE 1-3: THREE PERSPECTIVES ON EFFECTIVENESS Individual effectiveness Group effectiveness Organizational effectiveness 6

CAUSES OF EFFECTIVENESS FIGURE 1-4: CAUSES OF EFFECTIVENESS Individual effectiveness Group effectiveness Organizational effectiveness Causes Ability Skill Knowledge Attitude Motivation Stress Causes Cohesiveness Leadership Structure Status Roles Norms Causes Environment Technology Strategic choices Structure Processes Culture 7

MANAGEMENT’S CONTRIBUTION TO EFFECTIVENESS0 FIGURE 1-5: MANAGEMENT’S CONTRIBUTION TO EFFECTIVENESS0 Management performs the functions of: Planning Organizing Leading Controlling To coordinate the behavior of: Individuals Groups Organizations To attain: Individual effectiveness Group effectiveness Organizational Feedback 8

PLANNING Determining where the organization should be going & developing a plan to get there. Involves analyzing alternatives for action based on their degree of fit with the organization’s mission. 9

ORGANIZING Designing the responsibility & authority of each individual job. Determining which of these jobs will be grouped into specific departments. Creating an effective organizational structure. 10

LEADING Influencing people to perform well & achieve organizational goals. Channeling human behavior toward organizational goals. The most human-oriented management function. Executive leaders express the organization’s ideals to external constituents. 11

CONTROLLING Ensuring that the organization’s actual performance conforms with planned performance. Controlling activities include employee selection & placement, performance appraisal, materials inspection, & financial statement analysis. 12

THREE APPROACHES TO EFFECTIVENESS Goal approach Systems theory approach Stakeholder approach 13

BASIC ELEMENTS OF A SYSTEM FIGURE 1-6: BASIC ELEMENTS OF A SYSTEM Inputs Process Outputs Environment System: A grouping of elements that individually establish relationships with each other and interact with their environment both as individuals and as a collective. 14

Sources of Effectiveness FIGURE 1-7: RELATIONSHIPS AMONG MANAGEMENT FUNCTIONS & INDIVIDUAL, GROUP & ORGANIZATIONAL EFFECTIVENESS Sources of Effectiveness Management Functions Planning Organizing Leading Controlling Individuals Objectives Job designs Delegated authority Person-centered influence Individual standards of performance Groups Goals Department or unit Group-centered influence Group standards of performance Organizations Missions Integrative methods & processes Entity-centered influence Organization standards of performance 15