1. Chapter 1: Organizational Behavior

2. Organizational Behavior
How people act and react in organizations
And an understanding of why people behave the way they do
Organizations are social entities
Combine management, psychology, & sociology

3. Why is OB Important?
Helps you influence the behavior of others (subordinates, managers, coworkers, etc.)
Helps you understand and influence your own behavior
Technical expertise will only get you so far
Need to be able to accomplish things through others
Employee behaviors impact financial performance

4. Historical Perspective of OB
Human Relations Movement
Quality Movement
E-Business
Human & Social Capital

5. Human Relations Movement
The Hawthorne Studies
People’s attitudes about management affect their performance
Recent re-analysis
Elton Mayo & Mary Parker Follett
People aren’t machines – human factors should be considered
Motivation, attitudes, emotional state, etc.

6. Human Relations Movement
Douglas McGregor’s Theory X & Theory Y
Theory X
Most people dislike work and want to avoid it
People require close direction
People want to avoid responsibility and have little ambition
Theory Y
Work is a natural activity
People can be self-directed if they are committed to the objective
Rewards help commitment
Most employees accept and seek responsibility
Employees have imagination, ingenuity and creativity

7. Quality Movement Began in 1980s in US in response to Japan
Total Quality Management (TQM)
Continuous improvement
Customer focused
Employee driven*
W. Edwards Deming
Early leader of quality movement
Expert in statistical process control techniques
Claimed importance of employees in TQM

8. E-Business Internet changed communication
Easier to communicate more information to more people
Net Generation
Value freedom, want customization, skeptical of info., value integrity, good collaborators, like speed and innovation.

9. Human & Social Capital Human Capital Social Capital
An individual’s talents & skills
Important to all “knowledge workers”
Must be grown & developed
Social Capital
An individual’s professional social network
Good relationships with boss, co-workers, subordinates, etc.
Helps you get things done & move career forward

10. 21st Century Management
Management: working with & through others to achieve organizational objectives
Individual  Teams
Command & Control  Participative Mgt.
Ego-centered  Customer Centered
Centralized  Decentralized

11. Clark Wilson Management Skills Research
Dealing effectively with people is the cornerstone of effective management
More skilled managers have more productive and happier employees
Failed managers tend to overestimate their skill set

12. Contingency Theories There is no one best way to do something
The appropriate managerial action depends on the specifics of the situation
No universal rules or laws

13. Roberta received her first managerial assignment, after completing the management training program, to be the new supervisor of the Customer Complaints department. Friday afternoon, she talked to several managers she had worked with in the training program, and they confirmed what she had heard elsewhere – the department had a terrible reputation, and it was deserved.
Monday Roberta arrived early to familiarize herself with the office before the staff arrived. Much to her surprise, over half of them were already there. Within fifteen minutes, the rest had arrived. This seemed like a good time for an informal meeting. Roberta walked out of her office and addressed the group as they sat at their desks.
“Good morning, I'm Roberta James, your new supervisor. I’m looking forward to getting to know all of you and to working with you to develop and maintain a good Customer Complaint department.” Suddenly the phone started ringing, but no one answered it. “Why doesn't someone answer the phone?” Roberta asked. One staff member replied, “It's not 9:00 yet, we're not open.” “They'll call back,” said another.

14. Corporate Social Responsibility
Corporations have an obligation to constituent groups in society other than stockholders and beyond that prescribed by law or union contract.

15. Corporate Social Responsibility Pyramid

16. Is Business Ethics Really a Problem?
62% occasionally observe unethical behavior
Senior managers think their companies are more ethical than lower level employees
64% mislead about finances
41% of applicants lied about their education

17. 7 Moral Principles for Managers
Dignity of human life
Autonomy
Honesty
Loyalty
Fairness
Humaneness
The common good

18. Ethical Climate
In order to create an ethical climate, managers should:
Behave ethically themselves
Screen job applicants
Have a code of ethics
Provide ethics training
Reward ethical behavior
Assign responsibility for ethical climate to someone (chief ethics officer)

19. Jonica Gunson is the environmental compliance manager for a small plastics manufacturing company. She is currently faced with the decision whether or not to spend money on new technology that will reduce the level of a particular toxin in the wastewater that flows out the back of the factory and into a lake. 
The factory's emission levels are already within legal limits. However, Jonica knows that environmental regulations for this particular toxin are lagging behind scientific evidence. In fact, a scientist from the university had been quoted in the newspaper recently, saying that if emission levels stayed at this level, the fish in the lakes and rivers in the area might soon have to be declared unsafe for human consumption. 
Further, if companies in the region don't engage in some self-regulation on this issue, there is reason to fear that the government — backed by public opinion — may force companies to begin using the new technology, and may also begin requiring monthly emission level reports (which would be both expensive and time consuming). 
But the company's environmental compliance budget is tight. Asking for this new technology to be installed would put Jonica's department over-budget, and could jeopardize the company's ability to show a profit this year. 

20. The Performance of Ethics
Ethical companies outperform unethical ones by % in market value (Business and Society Review)
$30K invested in 30 ethical companies over 30 years would yield 4.7x to the Dow Jones Industrials (Johnson & Johnson Research Study)
40% of consumers would boycott an unethical company, 20% have done so (Conference Board)
Workers in ethical companies are 6x more loyal (Hudson Institute)