1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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)

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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

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

17. 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

18. 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