1. Business Leadership and Organizational Behavior Introduction to Organizational Behavior Craig W. Fontaine, Ph.D.

2. Introduction Organizations are much more than a means for providing goods and service They create the work settings in which most of us spend much our lives They have profound influence on employee behavior

3. Forces Shaping Organizations Rapidity of Change Changed Psychological Contract Technology Globalization Cultural Diversity Power of Human Innovation

4. Consequences to Managers Resisting the reality of these forces will likely lead to: –Unnecessary conflict –Reduced performance –Lost opportunities Resisting the reality of these forces will likely lead to: –Unnecessary conflict –Reduced performance –Lost opportunities Failing to cope and deal with these forces will likely result in: –Job dissatisfaction –Poor morale –Reduced commitment –Lower work quality –Increased stress –Poor judgment Failing to cope and deal with these forces will likely result in: –Job dissatisfaction –Poor morale –Reduced commitment –Lower work quality –Increased stress –Poor judgment

5. Task – an organization’s mission, purpose, or goal for existing People – the human resources of the organization Technology – the tools, knowledge, and/or techniques used to transform inputs into outputs Structure – the wide range of tools, knowledge, and/or techniques used to transform inputs into outputs Components of an Organization

6. Formal Organization – the official, legitimate, and most visible part of the system Informal Organization – the unofficial and less visible part of the system Formal –vs- Informal

7. © 2013 Cengage Learning Formal Elements Informal Elements

8. Management Functions (Henri Fayol) Management Functions PlanningPlanningOrganizingOrganizingLeadingLeadingControllingControlling

10. Organizational Behavior

11. Organizational behavior (OB) A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.

12. Key Points About OB 1. OB is a way of thinking 2. OB is multidisciplinary 3. There is a distinctly humanistic orientation within OB 4. The field of OB is performance-oriented 5. The role of the scientific method is important in studying variables and relationships 6. OB has a distinctive applications orientation 1. OB is a way of thinking 2. OB is multidisciplinary 3. There is a distinctly humanistic orientation within OB 4. The field of OB is performance-oriented 5. The role of the scientific method is important in studying variables and relationships 6. OB has a distinctive applications orientation

13. Replacing Intuition with Systematic Study Systematic study Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence. Provides a means to predict behaviors. Intuition A feeling not necessarily supported by research.

14. The Dependent Variables x y Dependent variable A response that is affected by an independent variable.

15. The Dependent Variables Productivity A performance measure that includes effectiveness and efficiency. Effectiveness Achievement of goals. Efficiency The ratio of effective output to the input required to achieve it.

16. The Dependent Variables (cont’d) Absenteeism The failure to report to work. Turnover The voluntary and involuntary permanent withdrawal from an organization.

17. The Dependent Variables (cont’d) Organizational citizenship behavior (OCB) Discretionary behavior that is not part of an employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization.

18. The Dependent Variables (cont’d) Job satisfaction A general attitude toward one’s job, the difference between the amount of reward workers receive and the amount they believe they should receive.

19. The Independent Variables Independent Variables Individual-Level Variables Organization System-Level Variables Group-Level Variables Independent variable The presumed cause of some change in the dependent variable.

20. There Are Few Absolutes in OB Contingency Variables xy Contingency variables Situational factors: variables that moderate the relationship between two or more other variables and improve the correlation.

21. OB Discipline Overview

22. Contributing Disciplines to the OB Field (cont’d) Sociology The study of people in relation to their fellow human beings.

23. Contributing Disciplines to the OB Field (cont’d) Social Psychology An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.

24. Contributing Disciplines to the OB Field (cont’d) Anthropology The study of societies to learn about human beings and their activities.

25. Contributing Disciplines to the OB Field (cont’d) Political Science The study of the behavior of individuals and groups within a political environment.

26. Contributing Disciplines to the OB Field Psychology The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.

27. Basic OB Model