1. Chapter 1 a strategic approach to organizational behavior
Michael A. Hitt
C. Chet Miller
Adrienne Colella
Mary Triana

2. ?
Knowledge Objectives
Define organizational behavior and explain the strategic approach to OB.
Provide a formal definition of organization.
Describe the nature of human capital.
Discuss the conditions under which human capital is a source of competitive advantage for an organization.
Describe positive organizational behavior and explain how it can contribute to associates’ productivity.
Explain the five characteristics of high-involvement management and the importance of this approach to management.

3. Organizational Behavior
Actions of individuals and groups in an organizational context.

4. Managing Organizational Behavior
Actions focused on:
acquiring
developing
applying
knowledge and skills of people

5. Strategic OB Approach
Organizing and managing people’s knowledge and skills to:
implement strategy
gain competitive advantage

6. Exhibit 1-1: Factors and Outcomes of a Strategic Approach to Organizational Behavior

7. Senior Managers Skills Activities Conceptualizing
Discuss – vision, strategy, and other major issues
Conceptualizing
Communicating
Understanding the perspectives of others

8. Senior Managers Skills Activities
(cont.)
Activities
Skills
Help middle managers define or redefine roles and manage conflict
Listening
Conflict management
Negotiating
Motivating
Create and maintain the organization’s culture
Interpersonal influence

9. Middle Managers Skills Activities Networking Communicating Influencing
Champion strategic ideas and help firm to remain adaptive
Process data and information for use by other individuals
Analyzing
Communicating

10. Middle Managers Skills Activities Communicating
(cont.)
Skills
Activities
Communicating
Motivating
Understanding values
Managing Stress
Deliver strategic initiatives to lower-level managers

11. Lower-level Managers Skills Activities Teaching Coach associates
Listening
Understanding personalities
Managing stress
Coach associates

12. Lower-level Managers Skills Activities Remove obstacles for associates
(cont.)
Skills
Activities
Remove obstacles for associates
Deal with associates personal problems
Negotiating
Influencing others
Counseling
Understanding personalities

13. Lower-level Managers Skills Activities Analyzing
(cont.)
Skills
Activities
Analyzing
Negotiating
Group dynamics
Design jobs, team structures, and reward systems

14. Importance of Understanding Organizational Behavior
Behavioral Sciences:
Psychology
Social psychology
Sociology
Economics
Cultural anthropology
Enhance our ability to leverage people’s potential within the organization.
Gain confidence in empowering associates to work toward solving problems.
Integrate behavioral science knowledge to organizational applications.

15. ‘Organization Defined:
“Collection of individuals forming a coordinated system of specialized activities for the purpose of achieving certain goals over some extended period of time.”

16. Common Features of Organizations
Network of individuals
System
Coordinated activities
Division of labor
Goal orientation
Continuity over time, regardless of individual membership change

17. Human Capital
Sum of skills, knowledge, and general attributes of people in the organization.

18. Human Capital as a Source of Competitive Advantage
Able to perform some aspect of work better than competition offering customers added value.
Value
Individuals capable of supporting strategy for competing.
Rareness
Unique skills and talents of individuals.
Imitability
Extent that individual skills and talents can be copied.

19. Competitive Advantage Potential
Are human resources in the firm . . .
Valuable
Rare
Difficult to imitate
Competitive implications
Performance No
---
Competitive Disadvantage
Below Normal
Yes
Competitive Parity
Normal
Temporary Competitive Advantage
Above Normal
Sustained Competitive Advantage
Supported by effective management
Adapted from Exhibit 1-2: Human Capital and Competitive Advantage

20. Positive Organizational Behavior
Nurtures individual’s strengths for personal and professional advantage.

21. High-involvement Management
Dimensions
Selective Hiring
Extensive Training
Decision Power
Information Sharing
Incentive Compensation

22. Demands on High-involvement Managers
Empower
Trust
Use human capital to create competitive advantage

23. Exhibit 1-4: Managing Organizational Behavior for Competitive Advantage

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