0. o r g a n i z a t i o n a l b e h a v i o r
e l e v e n t h e d i t i o n
o r g a n i z a t i o n a l b e h a v i o r

1. What Is Organizational Behavior
Chapter One
What Is Organizational Behavior

2. After studying this chapter, you should be able to:
Define organizational behavior (OB).
Describe what managers do.
Explain the value of the systematic study of OB.
List the major challenges and opportunities for managers to use OB concepts.
Identify the contributions made by major behavioral science disciplines to OB.
L E A R N I N G O B J E C T I V E S

3. After studying this chapter, you should be able to:
Describe why managers require a knowledge of OB.
Explain the need for a contingency approach to the study of OB.
Identify the three levels of analysis in the OB model.
Discuss why work force diversity is an important issue in management
Explain how managers and organizations respond to employee ethical dilemmas
Explain how knowledge of OB can help managers stimulate organizational innovation and change
L E A R N I N G O B J E C T I V E S (cont’d)

4. Organizational Behavior
The systematic study of the actions and attitudes that people exhibit within organizations

5. Organization Consciously coordinated social unit
Composed of two or more people
Functions to achieve a common goal or set of goals
Formal roles define and shape the behavior of its members

6. Managers (or administrators)
What Managers Do
Managers (or administrators)
Individuals who achieve goals through other people.
Managerial Activities
Make decisions
Allocate resources
Direct activities of others to attain goals

7. Where Managers Work Organization
A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.

8. Management Functions Management Functions Planning Organizing Leading
Controlling
Management Functions

9. Management Functions (cont’d)
Planning
A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.

10. Management Functions (cont’d)
Organizing
Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.

11. Management Functions (cont’d)
Leading
A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.

12. Management Functions (cont’d)
Controlling
Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.

13. Mintzberg’s Managerial Roles
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.
E X H I B I T 1–1

14. Mintzberg’s Managerial Roles (cont’d)
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.
E X H I B I T 1–1 (cont’d)

15. Mintzberg’s Managerial Roles (cont’d)
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.
E X H I B I T 1–1 (cont’d)

16. Management Skills
Technical skills The ability to apply specialized knowledge or expertise.
Human skills The ability to work with, understand, and motivate other people, both individually and in groups.
Conceptual Skills The mental ability to analyze and diagnose complex situations.

17. Effective Versus Successful Managerial Activities (Luthans)
Traditional management
Decision making, planning, and controlling
Communication
Exchanging routine information and processing paperwork
Human resource management
Motivating, disciplining, managing conflict, staffing, and training
Networking
Socializing, politicking, and interacting with others

18. Allocation of Activities by Time
Source: Based on F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz, Real Managers (Cambridge, MA: Ballinger, 1988).
E X H I B I T 1–2

19. Enter Organizational Behavior
Organizational behavior (OB)
A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.

20. Replacing Intuition with Systematic Study
A feeling not necessarily supported by research.
Systematic study
Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence.
Provides a means to predict behaviors.

21. Replacing Intuition with Systematic Study
Preconceived Notions
The Facts ≠

22. Toward an OB Discipline
Social Psychology
Behavioral Science
Psychology
Sociology
Political Science
Anthropology
Learning
Motivation
Personality
Emotions
Training
Individual decision making
Leadership effectiveness
Job satisfaction
Performance appraisal
Attitude measurement
Job design
Work stress
Formal organization
theory
Organizational technology
Organizational change
Organizational culture
Behavioral change
Attitude change
Communication
Group decision making
Group processes
Group dynamics
Work teams
Communication
Status
Power
Conflict
Comparative values
Comparative attitudes
Cross-cultural analysis
Contribution
Organizational culture
Organizational environment
Conflict
Intraorganizational politics
Power
Unit of Analysis
Organization System
Individual
Group
Study of
Organizational
Behavior
Output

23. Toward an OB Discipline
E X H I B I T 1–3

24. Contributing Disciplines to the OB Field
Psychology The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.
E X H I B I T 1–3 (cont’d)

25. Contributing Disciplines to the OB Field (cont’d)
Sociology The study of people in relation to their fellow human beings.
E X H I B I T 1–3 (cont’d)

26. Contributing Disciplines to the OB Field (cont’d)
Social Psychology An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.
E X H I B I T 1–3 (cont’d)

27. Contributing Disciplines to the OB Field (cont’d)
Anthropology The study of societies to learn about human beings and their activities.
E X H I B I T 1–3 (cont’d)

28. Contributing Disciplines to the OB Field (cont’d)
Political Science The study of the behavior of individuals and groups within a political environment.
E X H I B I T 1–3 (cont’d)

29. Source: Drawing by Handelsman in The New Yorker, Copyright © 1986 by the New Yorker Magazine. Reprinted by permission.
E X H I B I T 1–4

30. Goals of Organizational Behavior
Explanation
Prediction
Control

31. There Are Few Absolutes in OB
Contingency variables
Situational factors: variables that moderate the relationship between two or more other variables and improve the correlation.
Contingency Variables x y

32. Challenges and Opportunities for OB
Responding to Globalization
Increased foreign assignments
Working with people from different cultures
Coping with anti-capitalism backlash
Overseeing movement of jobs to countries with low-cost labor
Managing Workforce Diversity
Embracing diversity
Changing U.S. demographics
Implications for managers
Recognizing and responding to differences

33. Major Workforce Diversity Categories
Gender
National Origin
Disability
Age
Non-Christian
Race
Domestic Partners
E X H I B I T 1–5

34. Challenges and Opportunities for OB (cont’d)
Improving Quality and Productivity
Quality management (QM)
Process reengineering
Responding to the Labor Shortage
Changing work force demographics
Fewer skilled laborers
Early retirements and older workers
Improving Customer Service
Increased expectation of service quality
Customer-responsive cultures

35. What is Quality Management?
1. Intense focus on customer
Outsiders -- purchasers of products and services
Insiders -- interact with and serve others in the organization
2. Concern for continual improvement
Commitment to never be satisfied
“Very good” is not good enough
Quality can always be improved
3. Improvement in quality of everything the organization does
“Quality” applies not only to the final product, but to
How organization handles deliveries
How rapidly it responds to complaints
How politely the phones are answered
4. Accurate measurement
Uses statistical techniques to measure every critical performance variable in operations
5. Empowerment of employees
Involves people on the line in the improvement process
Teams are widely used as empowerment vehicles for finding and solving problems

36. What Is Quality Management?
Intense focus on the customer.
Concern for continuous improvement.
Improvement in the quality of everything the organization does.
Accurate measurement.
Empowerment of employees.
E X H I B I T 1–6

37. Improving Quality and Productivity
Quality management (QM)
The constant attainment of customer satisfaction through the continuous improvement of all organizational processes.
Requires employees to rethink what they do and become more involved in workplace decisions.
Process reengineering
Asks managers to reconsider how work would be done and their organization structured if they were starting over.
Instead of making incremental changes in processes, reengineering involves evaluating every process in terms of its contribution.

38. Challenges and Opportunity for OB (cont’d)
Improving People Skills
Empowering People
Stimulating Innovation and Change
Coping with “Temporariness”
Working in Networked Organizations
Helping Employees Balance Work/Life Conflicts
Improving Ethical Behavior

39. A Managerial Perspective
Improving People Skills
Managing Work Force Diversity
Responding to Globalization
Empowering People
Stimulating Innovation and Change

40. A Managerial Perspective (cont.)
Coping with “Temporariness”
Helping Employee Balance Work-Life Conflicts
Declining Employee Loyalty
Improving Ethical Behavior

41. Basic OB Model, Stage I Model
An abstraction of reality. A simplified representation of some real-world phenomenon.
E X H I B I T 1–7

42. The Dependent Variables
A response that is affected by an independent variable. x y

43. The Dependent Variables (cont’d)
Productivity A performance measure that includes effectiveness and efficiency.
Effectiveness Achievement of goals.
Efficiency The ratio of effective output to the input required to achieve it.

44. The Dependent Variables (cont’d)
Absenteeism
The failure to report to work.
Turnover
The voluntary and involuntary permanent withdrawal from an organization.

45. The Dependent Variables (cont’d)
Organizational citizenship behavior (OCB)
Discretionary behavior that is not part of an employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization.

46. The Dependent Variables (cont’d)
Job satisfaction
A general attitude toward one’s job, the difference between the amount of reward workers receive and the amount they believe they should receive.

47. The Independent Variables
The presumed cause of some change in the dependent variable.
Independent Variables
Individual-Level Variables
Organization System-Level Variables
Group-Level Variables

48. Basic OB Model, Stage II
E X H I B I T 1–8