1. © 2011 Cengage Learning. All rights reserved. Chapter 1 Organizational Behavior and Opportunity 1.Define organizational behavior. 2.Identify four action steps for responding positively in times of change. 3.Identify the important system components of an organization. 4.Describe the formal and informal elements of an organization. 5.Understand the diversity of organizations in the economy. 6.Describe the opportunities that change creates for organizational behavior. 7.Demonstrate the value of objective knowledge and skill development in the study of organizational behavior.

2. © 2011 Cengage Learning. All rights reserved. Learning Outcome Define organizational behavior. 1 Clockworks or Snake pit?

3. © 2011 Cengage Learning. All rights reserved. Organizational Behavior the study of individual behavior and group dynamics in organizations

4. © 2011 Cengage Learning. All rights reserved. Psychosocial BehavioralInterpersonal Organizational Behavior: Dynamics in Organizations Organizational Behavior

5. © 2011 Cengage Learning. All rights reserved. Organizational Variables that Affect Human Behavior Organizational Design Jobs Work Design Performance Appraisal Organizational Structure Communication Human Behavior

6. © 2011 Cengage Learning. All rights reserved. External Perspective Understand behavior in terms of external events, environmental forces, and behavioral consequences. Internal Perspective Understand behavior in terms of thoughts, feelings, past experiences, and needs. Explain behavior by examining individuals’ history and personal value System. Both perspectives have produced motivational & leadership theories. Explain behavior by examining surrounding external events and environmental forces.

7. © 2011 Cengage Learning. All rights reserved. Psychology the science of human behavior Management the study of overseeing activities and supervising people in organizations Anthropology the science of the learned behavior of human beings Medicine the applied science of healing or treating diseases to enhance health and well-being Engineering the applied science of energy & matter Sociology the science of society Interdisciplinary Influences on Organizational Behavior

8. © 2011 Cengage Learning. All rights reserved. Learning Outcome Identify four action steps for responding positively in times of change. 2

9. © 2011 Cengage Learning. All rights reserved. Reactions to Change Rigid and Reactive Open and Responsive

10. © 2011 Cengage Learning. All rights reserved. Learning Outcome Identify the important system components of an organization. 3

11. © 2011 Cengage Learning. All rights reserved. Components of an Organization Task – an organization’s mission, purpose, or goal for existing People – the human resources of the organization Structure – the manner in which an organization’s work is designed at the micro level; how departments, divisions, and the overall organization are designed at the macro level Technology – the tools, knowledge, and/or techniques used to transform inputs into outputs

12. Open Systems View of Organization © 2011 Cengage Learning. All rights reserved.

13. Learning Outcome Describe the formal and informal elements of an organization. 4

14. © 2011 Cengage Learning. All rights reserved. Formal vs. Informal Organization Formal Organization – the official, legitimate, and most visible part of the system Informal Organization – the unofficial and less visible part of the system Hawthorne Studies: studies conducted during the 1920’s and 1930’s that suggested the importance of informal organizations

15. © 2011 Cengage Learning. All rights reserved. Formal & Informal Elements of Organizations Formal organization (overt) Goals and objectives Policies and procedures Job descriptions Financial resources Authority structure Communication channels Products and services Social Surface Informal organization (covert) Beliefs and assumptions Perceptions and attitudes Values Feelings, such as fear, joy anger, trust, and hope Group norms Informal leaders

16. © 2011 Cengage Learning. All rights reserved. Learning Outcome Understand the diversity of organizations in the economy. 5

17. © 2011 Cengage Learning. All rights reserved. Sectors of the U.S. Economy Manufacturing Service Nonprofit organizations Government

18. © 2011 Cengage Learning. All rights reserved. Learning Outcome Evaluate the opportunities that change creates for organizational behavior. 6

19. © 2011 Cengage Learning. All rights reserved. Global Competition in Business Four challenges to managers relating to change in organizations Globalization Technological Innovation Workplace Diversity Ethics and Character

20. © 2011 Cengage Learning. All rights reserved. [ QUALITY ] Can give organizations in viable industries a competitive edge in international competition A rubric for products and services of high status A customer-oriented philosophy of management with implications for all aspects of organizational behavior A cultural value embedded in successful organizations

21. © 2011 Cengage Learning. All rights reserved. Three key questions in evaluating quality- improvement ideas 1. Does the idea improve customer response? 2. Does the idea accelerate results? 3. Does the idea raise the effectiveness of resources?

22. © 2011 Cengage Learning. All rights reserved. Six Sigma a high-performance system for executing business strategy that is customer-driven, emphasizes quantitative decision making, and places a priority on saving money.

23. Six Sigma vs. Total Quality Management © 2011 Cengage Learning. All rights reserved.

24. Seven Categories in the Malcolm Baldrige National Quality Award Examination Leadership Information and analysis Strategic quality planning Human resource utilization Quality assurance of products and services Quality results Customer satisfaction

25. © 2011 Cengage Learning. All rights reserved. Challenges to Managing Organizational Behavior 1.Increasing globalization of organizations’ operating territory 2.Increasing diversity of organizational workforces 3.Continuing technological innovation with its companion need for skill enhancement 4.Continuing demand for higher levels of moral and ethical behavior at work

26. © 2011 Cengage Learning. All rights reserved. Learning Outcome Demonstrate the value of objective knowledge and skill development in the study of organizational behavior. 7

27. Learning about Organizational Behavior Learning Activity Development of specific skills and abilities Mastery of basic objective knowledge Application of knowledge and skills Science The Real World You Theories, Research, Articles Organizational and Work Context Assessments & Exercises Copyright ©2011 Cengage Learning. All rights reserved

28. Learning from Structured Activity Conclusions based on systematic review (e.g., the group did better) New or modified knowledge or skills (e.g., consensus group decisions are better) Systematic review of the structured activity (e.g., compare individual & group results) Individual or group structured activity (e.g., group decision activity) Copyright ©2011 by Cengage Learning. All rights reserved

29. © 2011 Cengage Learning. All rights reserved. Three Assumptions Required for Learning from Structured Activity Each student must accept responsibility for his/her own behavior, actions, and learning Each student must actively participate in the individual/group structured learning activity Each student must be open to new information, new skills, new ideas, and experimentation

30. AFFECTING MANAGERS Industrial restructuring Increased amount and availability of information Need to attract and retain the best employees Need to understand human and cultural differences Rapid shortening of response times in all aspects of business Copyright ©2011 Cengage Learning. All rights reserved TRENDS

31. © 2011 Cengage Learning. All rights reserved. In Good Company 1.The film sequence shows three people interacting in a work environment. Which aspects of organizational behavior and management discussed earlier in this chapter appear in this sequence? 2.The three people in this sequence represent different management levels in the company. Which levels do you attribute to Carter Duryea, Dan Foreman, and Mark Steckle? 3.Critique the behavior shown in this sequence. What are the positive and negative aspects of the behavior shown.