1. © 2009 Cengage Learning. All rights reserved.
Learning Outcomes
2, 3
Identify four action steps for responding positively in times of change.
Identify the important system components of an organization.
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2. © 2009 Cengage Learning. All rights reserved.
Reactions to Change
1. Rigid and
Reactive
2. Open and
Responsive
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3. Open Systems View of Organization
Task environment:
Competitors
Unions
Regulatory agencies
Clients
Structure
Inputs:
Material
Capital
Human
Outputs:
Products
Services
Task
Technology
People
(Actors)
Based on Harold Levitt, “Applied Organizational Change in
Industry: Structural, Technological, and Humanistic Approaches,” in J.G.
March (ed.), Handbook of Organizations, Rand McNally, Chicago, 1965,
p Reprinted by permission of James G. March
Organizational Boundary
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4. 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
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5. © 2009 Cengage Learning. All rights reserved.
Learning Outcome 4
Describe the formal and informal elements of an organization.
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6. 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 Evaluate the opportunities that change creates for
organizational behavior.
7 Demonstrate the value of objective knowledge and skill
development in the study of organizational behavior.
© 2009 Cengage Learning. All rights reserved.

7. © 2009 Cengage Learning. All rights reserved.
Learning Outcome 1
Define organizational behavior.
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8. Organizational Behavior
The study of individual behavior and group dynamics in organizations
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9. Organizational Behavior: Dynamics in Organizations
Psychosocial
Organizational
Behavior
Interpersonal
Behavioral
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10. Organizational Variables that
Affect Human Behavior
Organizational
Design
Jobs
Work
Performance
Appraisal
Structure
Communication
Human
Behavior
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11. External Perspective Internal 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
Explain behavior by examining surrounding external events and environmental forces
Each perspective has produced
motivational & leadership theories.
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12. Anthropology Management
Sociology
the science
of society
Psychology
the science
of human behavior
Engineering
the applied science
of energy & matter
Interdisciplinary
Influences on
Organizational
Behavior
Anthropology
the science of the learned behavior of human beings
Medicine
the applied science
of healing or treatment of diseases to enhance an
individual’s health and
well-being
Management
the study of overseeing
activities and supervising
people in organizations
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13. 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
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14. 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
Formal & Informal Elements of Organizations
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15. © 2009 Cengage Learning. All rights reserved.
Learning Outcome 5
Understand the diversity of organizations in the economy.
© 2009 Cengage Learning. All rights reserved.

16. U.S. Gross Domestic Product
Total
$10.9 Trillion
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17. © 2009 Cengage Learning. All rights reserved.
Learning Outcomes
6, 7
Evaluate the opportunities that change creates for organizational behavior.
Demonstrate the value of objective knowledge and skill development in the study of organizational behavior.
© 2009 Cengage Learning. All rights reserved.

18. Global Competition in Business
Four challenges to managers relating to change in organizations
Globalization
Technological Innovation
Workplace Diversity
Ethics and Character
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19. © 2009 Cengage Learning. All rights reserved.
[QUALITY]
A potential means for giving organizations in viable industries a competitive edge in international competition
A rubric for products and services that are of high status
A customer-oriented philosophy of management with implications for all aspects of organizational behavior
A cultural value embedded in successful organizations
© 2009 Cengage Learning. All rights reserved.

20. © 2009 Cengage Learning. All rights reserved.
Six Sigma
A high-performance system to execute business strategy that is customer-driven, emphasizes quantitative decision making, and places a priority on saving money
© 2009 Cengage Learning. All rights reserved.

21. Contrasting Six Sigma and Total Quality Management
TQM
Executive ownership
Self-directed work teams
Business strategy execution system
Quality initiative
Truly cross-functional
Largely within a single function
Focused training with verifiable return on investment
No mass training in statistics and quality return on investment
Business results oriented
Quality oriented
Source: Matt Barney. “Motorola’s Second Generation.” Six Sigma Forum Magazine (May 2002), 13.

22. Challenges to Managing Organizational Behavior
Increasing globalization of organizations’ operating territory
Increasing diversity of organizational workforces
Continuing technological innovation with its companion need for skill enhancement
Continuing demand for higher levels of moral and ethical behavior at work
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23. Learning about Organizational Behavior
Learning Activity
Mastery of
basic objective
knowledge
Science
Theories, Research, Articles
The Real World
Development of specific skills and abilities
Organizational and Work Context
You
Application
of knowledge
and skills
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by Cengage Learning.
All rights reserved
Assessments & Exercises

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

25. 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
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26. AFFECTING MANAGERS TRENDS
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
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by Cengage Learning.
All rights reserved