©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Newstrom 12/e PPT ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

The Dynamics of People and Organizations Chapter One The Dynamics of People and Organizations ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Chapter Objectives To understand: The meaning of organizational behavior The key goals and forces with which it is concerned Basic concepts of organizational behavior How organizational behavior affects organizational performance Limitations of organizational behavior ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Introduction Basic Concepts Organizations are complex Human behavior in organizations is sometimes unpredictable Human behavior can be partially understood There are no perfect solutions to organizational problems ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Understanding Organizational Behavior The systematic study and careful application of knowledge about how people act within organizations Find ways in which people can act more effectively Is an applied science Provides a useful set of analysis tools ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Understanding Organizational Behavior Goals Describe how people behave under different conditions Understand why they behave as they do Predict future employee behavior Control human behavior at work how people behave at work. Organizational behavior is a human tool for human benefit It is not designed to limit freedoms or take away rights ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Understanding Organizational Behavior Primary Forces People (think, feel, internal social system of the organization, large/small or formal/informal groups) Structure (Relationship of people in org, jobs coordination, problems of cooperation, current trend, pressures, team based structure) Technology ( the machines and equipment people use) Envirenment (Internal/external , rapid globalisation) Technology Environment ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Understanding Organizational Behavior ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Fundamental Concepts The Nature of People Individual differences Perception A whole person Motivated behavior Desire for involvement Value of the person ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Fundamental Concepts The Nature of Organizations Social systems Mutual interest Ethics ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Fundamental Concepts Mutual Interest Provides a Subordinate Goal ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Basic Approaches of This Book Organizational behavior seeks to integrate… People Structure Technology Environment ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Human Resources Approach A supportive approach… Helps employees become better, more responsible people Leads to operating efficiencies Results in work satisfaction Produces better results ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

OB Equations Knowledge x Skill = Ability Attitude x Situation = Motivation Ability x Motivation = Potential performance Potential performance x Resources x Opportunity = Organizational results ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Limitations of Organizational Behavior Behavioral bias The law of diminishing returns Unethical manipulation of people Ethical Leadership Principles Social responsibility Open communication Cost-benefit analysis ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Continuing Challenges Seeking Quick Fixes Embracing the newest fad Addressing symptoms, not underlying problems Fragmented efforts Varying Environments Shrinking demand More intense competition Organizational stagnation or decline Increased stress and conflict ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved