©2007 Prentice Hall Organizational Behavior: An Introduction to Your Life in Organizations Chapter 1 Why Mastering Organizational Behavior is Essential to Your Career

©2007 Prentice Hall Preview What is organizational behavior, and what kinds of business challenges does it address? What economic and social issues challenge today’s organizational leaders? What organizational processes help companies compete in the modern economy? What will your career be like in modern organizations? How will mastering OB help you in your career?

©2007 Prentice Hall What is Organizational Behavior (OB)? Organization: a coordinated set of individuals working together on a relatively continuous basis toward common goals Organizational Behavior (OB): the study of how people behave in organizations OB is a social science based on data obtained through systematic study

©2007 Prentice Hall What challenges do managers face at different organizational levels? How to motivate yourself and others How to work and stay healthy How power and politics shape careers and organizations How leaders lead How managers design their companies to meet worldwide competition

©2007 Prentice Hall OB is not Human Resources Management (HRM) HRM is an organizational function responsible for staffing issues OB is not a function, it is a set of organization-wide processes

©2007 Prentice Hall Micro level & Macro level OB Micro Level OB Individual, Interpersonal and Group Behaviors Macro Level OB How human systems and organized, structured and controlled Also called organizational theory

©2007 Prentice Hall Open vs. Closed Systems Open System Permits the free flow of information into and out of the organization Closed System Restricts information flow

©2007 Prentice Hall What economic and social issues challenge today’s organizational leaders? 1.Globalization 2.The changing nature of work 3.The complex workforce

©2007 Prentice Hall Globalization Movement of trade, resources and personnel across borders and regions Mixed opinion on its benefits Affects:  The nature of the work  Location of jobs  How companies manage people

©2007 Prentice Hall The changing nature of work Job growth:  Primarily in small and new companies  Most will work for others  Education and health services will be strongest New grads in high demand Job disruption: downsizing, outsourcing, productivity increases Contingent jobs are temporary

©2007 Prentice Hall The complex work force Diversity is increasing Factors that affect organizations:  Aging workforce & the Millennial generation  Gender representation  Racial diversity  Literacy  Employability  Union representation

©2007 Prentice Hall What organizational processes help companies compete in the modern economy? Relying on teams Innovations in attracting and keeping employees Adaptations in organizational design

©2007 Prentice Hall Adaptations in organizational design Boundaryless organization Employee empowerment Process improvements Organizational learning Innovative culture Adopt new forms

©2007 Prentice Hall What will your career be like in modern organizations? A complex and fast-paced business world will require you to be adaptable OB skills will be necessary as businesses change Recruiters value OB skills The special case for ethics

©2007 Prentice Hall Career Paths Primary labor market:  Professional, managerial type jobs  Higher incomes, relative security, good benefits Secondary labor market:  Little or no advancement possible  Lower incomes, little security, few benefits

©2007 Prentice Hall Career Patterns Steady State Career Lifetime employment in one job Change employers infrequently Spiral Career Follow a variety of interests around one core skill set Transitory Career Move among many different unrelated positions Linear Career Stay within the same profession but change jobs and companies fairly frequently

©2007 Prentice Hall Career Anchors 1.Technical or functional competence 2.Managerial competence 3.Security and stability in your job 4.Creativity and entrepreneurship 5.Autonomy and independence in your work

©2007 Prentice Hall Career Stages Stage 1: Preparation Stage 2: Organizational entry Stage 3: Early Career Stage 4: Middle Career Stage 5: Late Career

©2007 Prentice Hall Career Roles Independent Contributor You work in a key job with no subordinates Manager You manage others to meet organizational goals

©2007 Prentice Hall How will mastering OB help you in your career? Studying OB will help you:  Understand yourself  Become familiar with techniques for solving behavior-based organizational problems  See the complexity in organizations  Obtain the vocabulary and fundamentals for continuing study

©2007 Prentice Hall Apply what you have learned World Class Company: Netflix Advice from the Pro’s Gain Experience Can you solve this manager’s problem?

©2007 Prentice Hall Summary – What is OB OB is the study of how people behave in organizations OB is not HRM OB helps managers solve practical problems An organization is a system with inputs, processes and outputs

©2007 Prentice Hall Summary – Issues that challenge leaders Globalization Changing nature of work: job growth, job disruption, and contingent jobs Complexities of the workforce: age, gender, race, literacy, employability, and union representation

©2007 Prentice Hall Summary – Organizational Processes Foster innovation & high quality decision making Rely on teams & improve the way they attract & retain workers Emphasis on ethics Adapting

©2007 Prentice Hall Summary – Your Career Career patterns Career stages Role choices Career anchors OB provides practical information and insights for your life in organizations