Presentation on theme: "A Strategic Approach To Organizational Behavior"— Presentation transcript:
1 A Strategic Approach To Organizational Behavior Chapter 1A Strategic Approach To Organizational BehaviorMichael A. HittC. Chet MillerAdrienne Colella
2 Knowledge ObjectivesDefine 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.Explain the five characteristics of high-involvement management and the importance of this approach to management.
3 Basic Elements of Strategic Organizational Behavior The actions of individuals and groups in an organizational context.Managing organizational behaviorActions focused on acquiring, developing, and applying the knowledge and skills of people.Strategic approach to OBAn approach that involves organizing and managing the people’s knowledge and skills effectively to implement the organization’s strategy and gain a competitive advantage.
4 Factors and Outcomes of Strategic Approach Organizational Factors (culture, work environments, adaptabilityOrganizational SuccessSatisfaction of Individuals and GroupsProductivity of Individuals and GroupsIndividual Factors (learning ability, personality, values, motivation, stress)Interpersonal Factors (leadership, communication, decision-making skill, intra- and inter-group dynamics, communication)Adapted from: Exhibit 1.1 Factors and Outcomes of a Strategic Approach to Organizational Behavior
5 Strategic OB Lens Organization Level Activities Required Skills Senior ManagersTalk with insiders and outsiders aboutVisionStrategyOther major issuesConceptualizingCommunicatingUnderstanding the perspectives of othersHelp middle managersDefine and redefine their rolesManage conflictListeningConflict managementNegotiatingMotivatingCreate and maintain the organization’s cultureInterpersonal influence
6 Strategic OB Lens Organization Level Activities Required Skills Middle ManagersChampion strategic ideasHelp firm to remain adaptiveNetworkingCommunicatingInfluencingProcess data and information for use by other individualsAnalyzingCommunicatingDeliver strategic initiatives to lower-level managersCommunicatingMotivatingUnderstanding valuesManaging stress
7 Strategic OB Lens Organization Level Activities Required Skills Lower-level ManagersCoaching firm’s associates (workers)TeachingListeningUnderstanding personalitiesManaging stressRemoving obstacles for associatesDeal with personal problems of associatesNegotiatingInfluencing othersCounselingUnderstanding personalitiesDesign jobs, team structures, and reward systemsNegotiatingGroup dynamics
8 Foundations of Strategic OB Behavioral science disciplinesPsychologySocial psychologySociologyEconomicsCultural anthropologyStrategic approach integrates knowledge from all these disciplinesStrategic approach focuses on behaviors and processes that help to create competitive advantages and financial success (goal is to improve the outcomes of organizations)
9 Common Features of Organizations Network of individualsSystemCoordinated activitiesDivision of laborGoal orientationContinuity over time, regardless of change in individual membership
10 Human Capital and Competitive Advantage Human capital: The sum of the skills, knowledge, and general attributes of the people in an organizationCompetitive advantage: An advantage enjoyed by an organization that can perform some aspect of its work better than competitors or in a way that competitors cannot duplicate such that it offers products/services that are more valuable to customers
11 Human Capital as Source of Competitive Advantage Human Capital ValueHuman Capital ImitabilityAssociates are capable of performing the basic work of the organizationSkills and talents of associates cannot be copied by other organizationsHuman Capital RarenessSkills and talents of associates are unique in the industry
12 Human Capital as Source of Competitive Advantage Are human resources in the firm . . .ValuableRareDifficult to imitateSupported by effective managementCompetitive implicationsPerformanceNoCompetitive DisadvantageBelow NormalYesNoCompetitive ParityNormalYesYesNoTemporary Competitive AdvantageAbove NormalYesYesYesSustained Competitive AdvantageAbove NormalExhibit 1.2 Human Capital and Competitive AdvantageSource: Adapted from J. Barney and P. Wright, “On Becoming a Strategic Partner,” Human Resource Management 37 (1999): 31–46.
13 Dimensions of High-Involvement Management Exhibit 1.3Dimensions of High-Involvement ManagementAspect DescriptionSelective HiringLarge pools of applicants are built through advertising, word of mouth, and internal recommendations. Applicants are evaluated rigorously using multiple interviews, tests, and other selection tools. Applicants are selected on the basis of not only skills but also fit with culture and mission.Extensive TrainingNew associates and managers are thoroughly trained for job skills through dedicated training exercises as well as on-the-job training. They also participate in structured discussions of culture and mission. Existing associates and managers are expected or required to enhance their skills each year through in-house or outside training and development. Often, existing associates and managers are rotated into different jobs for the purpose of acquiring additional skills.Exhibit 1.3 Dimensions of High-Involvement Management
14 Dimensions of High-Involvement Management Exhibit 1.3Dimensions of High-Involvement ManagementAspect DescriptionDecision PowerAssociates are given authority to make decisions affecting their work and performance. Associates handle only those issues about which they have proper knowledge. Lower-level managers shift from closely supervising work to coaching associates. In addition to having authority to make certain decisions, associates participate in decisions made by lower-level and even middle managers.Information SharingAssociates are given information concerning a broad variety of operational and strategic issues. Information is provided through bulletin boards, company intranets, meetings, posted performance displays, and newsletters.Incentive CompensationAssociates are compensated partly on the basis of performance. Individual performance, team performance, and business performance all may be considered.Exhibit 1.3 Dimensions of High-Involvement Management
15 High-Involvement Managers Identify situations in which responsibility can be delegatedManage through encouragement and commitment rather than fear and threatsRespect and value each associate’s skills and knowledgeEmpower people in ways that are consistent with their uniqueness as individualsInvest effort in building and maintaining trust