4e Nelson/Quick ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Organizational Behavior and Opportunity

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Outcome  Define organizational behavior  Identify four action steps for responding positively in times of change  Identify the important system components of an organization  Describe the formal and informal elements of an organization 2

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Outcome  Identify factors that contribute to the diversity of organizations in the economy  Describe the opportunities that change creates for organizational behavior  Demonstrate the value of objective knowledge and skill development in the study of organizational behavior 3

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Define organizational behavior Learning Outcome 4

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Human Behavior in Organizations  Opportunities: Favorable times or chances for progress and advancement  Change: Transformation or modification of an organization and/or its stakeholders  Challenge: Call to competition, contest, or battle 5

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Behavior Study of individual behavior and group dynamics in organizations 6

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Behavior: Dynamics in Organizations Organizational Behavior Psychosocial Interpersonal Behavioral 7

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Variables that Affect Human Behavior Jobs Work Design Communication Performance appraisal Organizational design Organizational structure 8

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. External and Internal Perspective Internal perspective Looks at workers’ minds to understand their behavior Focuses on the thoughts, feelings, past experiences, and needs of the individual External perspective Focuses on factors outside the person to understand behavior Includes external events, consequences, and environmental forces 9

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Interdisciplinary Influences on Organizational Behavior Psychology Science of human behavior Psychology Science of human behavior Sociology Science of society Sociology Science of society Engineering Applied science of energy and matter Engineering Applied science of energy and matter Anthropology Science of human learned behavior Anthropology Science of human learned behavior Management Overseeing activities and supervising people Management Overseeing activities and supervising people Medicine Applied science of healing or treating diseases Medicine Applied science of healing or treating diseases 10

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Identify four action steps for responding positively in times of change Learning Outcome 11

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reactions to Change Rigid and Reactive Open and Responsive 12

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Identify the important system components of an organization Learning Outcome 13

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Components of an Organization Organization’s mission, purpose, or goal for existing Task Human resources of the organization People Tools, knowledge, and/or techniques used to transform inputs into outputs Technology Tools, knowledge, and/or techniques used to transform inputs into outputs Structure 14

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure An Open-Systems View of Organization SOURCE: Based on H. Leavitt, “Applied Organizational Change in Industry: Structural, Technological, and Humanistic Approaches,” in J. G. March, ed., Handbook of Organizations (Chicago: Rand McNally, 1965), Reprinted by permission of James G. March. 15

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Describe the formal and informal elements of an organization Learning Outcome 16

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Formal vs. Informal Organization  Formal organization: Official, legitimate, and most visible part of the system  Informal organization: Unofficial and less visible part of the system  Hawthorne studies: Studies conducted during the 1920s and 1930s that suggested the importance of the informal organization 17

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure Formal & Informal Elements of Organizations 18

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Identify factors that contribute to the diversity of organizations in the economy Learning Outcome 19

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Sectors of the U.S. Economy Large and small organizations Private sector Manufacturing sector Service sector Government sector Nonprofit sector 20

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Describe the opportunities that change creates for organizational behavior Learning Outcome 21

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Competition in Business Increased Global Competition Radical Change 22

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Competition in Business  Characterized by intense rivalry  Employees face increased pressure to be productive and to add value to the firm 23

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Quality  Gives organizations a competitive edge in international competition  Total quality management (TQM) - Total dedication to continuous improvement and to customers  Focuses on meeting customer needs and exceeding their expectations 24

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Three Key Questions in Evaluating Quality-Improvement Ideas Does the idea improve customer response? Does the idea accelerate results? Does the idea raise the effectiveness of resources? 25

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Six Sigma High-performance system for executing business strategy Is Customer-driven Emphasizes quantitative decision making Places a priority on saving money Phases for tackling problems Measure Analyze Improve Control 26

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Table Contrasting Six Sigma and Total Quality Management SOURCE: M. Barney, “Motorola’s Second Generation,” Six Sigma Forum Magazine (May 2002):

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Behavior and Quality at Work  Ways to advance total quality  Engaging in participative management  Willingness to change  Focusing quality efforts on customer service  Including quality as a norm in reward systems  Improving the flow of information regarding quality- improvement successes or failures  Being actively and personally involved in quality efforts 28

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Seven Categories in Malcolm Baldrige National Quality Award Examination Leadership Information and analysis Strategic quality planning Human resource utilization Quality assurance of products and services Quality results Customer satisfaction 29

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Challenges to Managing Organizational Behavior  Increasing globalization of organizations’ operating territory  Increasing diversity of organizational workforces  Continuing technological innovation with its companion need for skill enhancement  Continuing demand for higher levels of moral and ethical behavior at work 30

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Demonstrate the value of objective knowledge and skill development in the study of organizational behavior Learning Outcome 31

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure Learning about Organizational Behavior 32

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Objective Knowledge  Knowledge that results from research and scientific activities  Provided by organizational behavior by:  Theories  Conceptual models  Research findings 33

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Skill Development  Mastery of abilities essential to successful functioning in organizations  Essential skills identified by the U.S. Department of Labor  Resource management skills  Information management skills  Personal interaction skills  Systems behavior and performance skills  Technology utilization skills 34

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure Learning from Structured Activity 35

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Three Assumptions for Learning from Structured Activity Each student must accept responsibility for his/her own behavior, actions, and learning Each student must actively participate in the individual/group structured learning activity Each student must be open to new information, new skills, new ideas, and experimentation 36

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Application of Knowledge and Skills  Structured, experiential learning helps explore new behaviors and skills in a comparatively safe environment  Educates students rather than training them in organizational behavior  Students become coproducers in learning 37

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. In Good Company  The film sequence shows three people interacting in a work environment. Which aspects of organizational behavior and management discussed earlier in this chapter appear in this sequence?  The three people in this sequence represent different management levels in the company. Which levels do you attribute to Carter Duryea, Dan Foreman, and Mark Steckle?  Critique the behavior shown in this sequence. What are the positive and negative aspects of the behavior shown. 38

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Holden Outerwear  Using the open systems view of organizations, describe Holden Outerwear’s internal and external environment.  How has globalization influenced Holden’s business and created opportunity?  What are some challenges of globalization for managers at Holden? 39