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Lecture Notes: Introduction 1

WELCOMETO ORGANIZATION BEHAVIOR

THE UNIVERSAL MANAGEMENT COURSE

TAKEN BY MANAGEMENT STUDENTS

ALL OVER THE WORLD !

MAN 262 - SECTION 4INSTRUCTOR

Dr. Fred J. Woolley


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INTRODUCTION& OVERVIEW

ORGANIZATION BEHAVIOR

REVIEW OFMANAGEMENT CONCEPTS


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THE REVOLUTION OF THE 20th CENTURY

FROM 1900

Rural

Stationary

Self-Sufficient

Isolated

Active

TO 2000

Urban

Mobile

Dependent

Connected

Inactive

FEW

ORGANIZATIONS

ORGANIZATIONS ARE

EVERTHING


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THE ORGANIZATION PARADIGM SHIFT

TRADITIONAL HIERARCHIES

FROM

Dependence

Attendance

Obedience

Impersonal

FLEXIBLE NETWORKS

OF TEAMS

TO

Interdependence

Commitment

Involvement

Personal


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CURRENT MACRO-ISSUES FACING ORGANIZATIONS

1. GLOBALIZATION:

Mergers/Takeovers (Banks, Airlines, Auto Industry etc)

Banking and Financial Systems

Competition/Marketing

2. ORGANIZATION DESIGN:

Downsizing (Flatter Organizations)

Reengineering

Teams

3. EMPOWERING EMPLOYESS:

Partners or Associates - NOT employees

Caring vs Personal Distance

The personal side of the employee is important

4. SPEED:

How fast products & services can be delivered to

Customers (i.e. customer-driven systems)

5. COMMUNICATION TECHNOLOGY:

Instant

Flexible in terms of groups and tasks

Flattens the organization

Empowerment


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TWO FUNDAMENTAL CONCEPTS

ORGANIZATIONS ARE ONLY AS GOOD AS THE

QUALITY OF THEIR MANAGERS !!!

85% OF ALL CORPORATE FAILURES ARE CAUSED BY

POOR MANAGEMENT

!!!


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KEY COMPETITIVE ISSUES

A SURVEY OF 615 EXECUTIVES FROM THE FORTUNE 1000 GROUP

WHAT IS THE CRITICAL FACTOR DETERMINING QUALITY AND

PRODUCTIVITY

PRACTICING EXECUTIVES ARE CONVINCED THAT

HUMAN RESOURCE ISSUES ARE THE MOST CRITICALFOR ORGANIZATIONAL SUCCESS.

Employee Motivation (85% rated it as critical)

Corporate Culture (82%)

Employee Education (74%)

Process Control (53%)

Expenditures on Capital Equipment (45%)

More Control of Supplies (36%)

More Inspections (28%)

2


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THE CRITICALITY OF MANAGEMENTTHE CRITICALITY OF MANAGEMENT

The Hanson Study (1986)

What explains the Financial Success of the Companies that are Highly Effective

THE ABILITY OF MANAGERS TO MANAGE PEOPLEEFFECTIVELY IS

3 TimesMORE EFFECTIVE THAN ALL OTHER FACTORS

COMBINED !!!


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ORGANIZATIONS

A Social Entity that is Consciously Coordinated to

Achieve Selected Goals !!!

THE NATURE OF ORGANIZATIONS

Social Systems: Activities Governed by Social &

Psychological Laws

The Internal Environment is forever Changing

Never Static

Mutual Interest: The Organization Needs People,

and People Need Organizations.

DEFINITION

3


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MANAGEMENTMANAGEMENT

ACHIEVING ORGANIZATIONAL GOALS THROUGH AND WITH THE

EFFORTS OF OTHERS !

HELPING OTHERSACHIEVE THEIRGOALS !

THE NATURE OF MANAGEMENT :

Managers Spend 80% of their Time Managing

the Behavior (Performance) of Others !

Management is Intensely Interpersonal !

OB is a MAJOR TOOL for Managing Others !

DEFINITION

3


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COMMON

ASSUMPTION:

SOCIAL FORCES

SHAPE OUR

ORGANIZATIONS:

1. POLITICS

2. ECONOMICS

3. RELIGION

PERROW

ARGUES:

LARGE

ORGANIZATIONS

ARE CHANGING

SOCIETY:

1. POLITICS

2. SOCIAL CLASS

(Orgl Rank)

3. TECHNOLOGY4. SERVICES

5. FAMILY

6. RELIGION

? ?

DO ORGANIZATIONS SHAPE OUR LIVES?


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MANAGEMENTPROCESSES




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Prentice Hall, 2001 Chapter 1 13

OrganizingOrganizingPlanningPlanning

ControllingControlling LeadingLeading

The FunctionsThe Functionsof Managementof Management


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A BASIC MANAGEMENT MODELA BASIC MANAGEMENT MODEL

TO ACHIEVE:

4VSHYGXMSR

7EXMWJEGXMSR

)JJMGMIRG]

%HETXMZIRIWW

(IZIPSTQIRX

7YVZMZEP

FEEDBACK

MANAGEMENT

PERFORMS THESE

FUNCTIONS:

4PERRMRK

3VKERM^MRK

0IEHMRK

'SRXVSPPMRK

TO COORDINATE

THE BEHAVIOR

OF:

-RHMZMHYEPW

+VSYTW

3VKERM^EXMSRW

Planning

Organizing

Leading

Controlling

Individuals

Groups

Organizations

Production

Satisfaction

Efficiency

Adaptiveness

Development Survival

(The Process Model)


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MODERN MANAGEMENT:MODERN MANAGEMENT:

A COMPOSITE OF MODELSA COMPOSITE OF MODELS

THE

PROCESS

MODEL

EFFECTIVE

MODERN

MANAGEMENT

THE

SYSTEMS

MODEL

THE

CONTINGENCY

MODEL


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MANAGEMENTSKILLS




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The Skills ThatThe Skills ThatManagers NeedManagers Need

TechnicalTechnicalTechnicalTechnical

InterInter--

PersonalPersonal

InterInter--

PersonalPersonal ConceptualConceptualConceptualConceptual


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SKILLS IMPORTANT AT EACHSKILLS IMPORTANT AT EACH

MANAGEMENT LEVELMANAGEMENT LEVEL

Interpersonal Skills Technical Skills Conceptual Skills

Middle

Management

Top

Management

First-line

Management


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Motivating

Information

Operations

BehaviourFinancial

Strategic

Operational

Budgets

Programs

Human

Resources

ETC.

Structure

Procedures

Job

Allocatlions

Relation-

ShipETC.

Co-

Ordinating

Delegating

Developing

Training

Orienting

Selecting

THE MANAGEMENT PROCESS

Dr. F.J. Woolley


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THE MANAGER DEVELOPMENTTHE MANAGER DEVELOPMENT

PROCESSPROCESS

TRAINING &

EXPERIENCE

Organizational

Goals

Characteristics

Management

SKILLS

Core

Administrative

Interpersonal

Personal

Conceptual

Managing

People

Managing

Work

A Positive

High Performance

Goal Achieving

ENVIRONMENT

INPUT PROCESS OUTPUT


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SubsystemsBoundary

Spanning

Production,

Maintenance,

Adaptation,

Management

Boundary

Spanning

Products

and

Services

AN OPEN SYSTEM & SUB-SYSTEMS

OutputInput

TransformationProcess

Transformation

Process

RawMaterials:

People

Information

Finance

Consumables


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The Roles of ManagementThe Roles of Management

InformationalInformationalInterpersonalInterpersonal

DecisionalDecisional


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Managerial ActivitiesManagerial Activities

TraditionalTraditional

ManagementManagement

NetworkingNetworking

CommunicationCommunication

ManagingManagingHuman ResourcesHuman Resources


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Empowering

Empoweringthe Workforcethe Workforce

ManagersManagers

Are GivingAre Giving

Up ControlsUp Controls

Workers AreWorkers Are

AcceptingAccepting

ResponsibilityResponsibility


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WE WILL BE REFERING TOTHESE CRITICAL CONCEPTS

ALL THROUGHOUT THISOB COURSE !!!

THIS COURSE IS ABOUT

MANAGING ORGANIZATION BEHAVIOR,

NOT JUST WHAT IS

ORGANIZATION BEHAVIOR !

2


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So,

What is

Organizational Behavior?


An Introduction !


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Human Behavior in OrganizationsHuman Behavior in Organizations

1. A study of human behavior & group dynamics

2. OB focuses on the psycho-social, interpersonal, and

behavioral dynamics in organizations

SUCCESSFUL MANAGERS ARE

GOOD BEHAVIORAL SCIENTISTS !!

2


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WHY STUDY OB NOW?OB PROVIDES THE BUILDING BLOCKS FOR

ADVANCED STUDY IN:

Leadership

Organization Theory

Performance Management

Strategic HR Management

The Manager/Worker Interface


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PROVIDES A SET OF TOOLSTHAT ALLOWS

PEOPLE TO UNDERSTAND,

RECOGNIZE, AND

DESCRIBE BEHAVIOR IN

ORGANIZATIONS.

MANAGERS TO IMPOVE,

ENHANCE OR CHANGE

BEHAVIORS SO THAT

INDIVIDUALS, GROUPS,& WHOLE

ORGANIZATIONS CAN

ACHIEVE THEIR GOALS


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UnderstandingUnderstanding

OrganizationalOrganizationalBehaviorBehavior

IndividualIndividualDifferencesDifferences

FundamentalFundamentalConsistenciesConsistencies

IntuitionIntuitionSystematicSystematic

StudyStudy


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Levels of OB AnalysisLevels of OB Analysis

Individuals Groups

Structures


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Overview of the OB ModelOverview of the OB Model

Individual LevelIndividual Level

GroupLevelGroupLevel

Organization Systems LevelOrganization Systems Level

Time

Level III

Level II

Level I


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EFFECTIVENESS IS A CENTRALEFFECTIVENESS IS A CENTRAL

CONCERN OF O.B.CONCERN OF O.B.

INDIVIDUAL

EFFECTIVENESS

CAUSES

Ability Skill

Knowledge

Attitude

Motivation

Stress

GROUPEFFECTIVENESS

CAUSES

Leadership

Structure

Cohesiveness

Status Roles

Norms

ORGANIZATIONAL

EFFECTIVENESS

CAUSES

Environment Technology

Strategies

Structure

Processes

Culture

GROUPEFFECTIVENESS

ORGANIZATIONAL

EFFECTIVENESS


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IN OB WE STUDY.INDIVIDUALS

o PERSONALITY

o ABILITY

o VALUES

o ATTITUDES

o PERCEPTION

o EMOTIONS

o MOTIVATION

o FAIRNESS

o RELATIONSHIPS

GROUPS:

SDYNAMICS

o DEVELOPMENT

o LEADERSHIP

o EFFECTIVENESS

o DECISION MAKING

o POWER

o POLITICS

o CONFLICT

o NEGOTIATIONS

ORGANIZATIONS

o CULTURE

o STRUCTURE

o WORKDESIGN

o HUMA

N RESOURCESo CHANGE

o STRESS


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The Study of Organizational BehaviorThe Study of Organizational Behavior

IndividualIndividual

GroupGroup

OrganizationOrganization

Social PsychologySocial Psychology

Political SciencePolitical Science

AnthropologyAnthropology

PsychologyPsychology

SociologySociology

Organizational

Behavior


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MACRO-MODEL OF OB

OB INVESTIGATES THE IMPACT THAT INDIVIDUALS, GROUPS,

AND THE ORGANIZATION HAVE ON BEHAVIOR WITHIN

ORGANIZATIONS FOR THE PURPOSE OF

IMPROVING EFFECTIVENESS.

2

Organization

Individuals Groups

QUALITY of

ORGANIZATIONAL

BEHAVIOR

DEGREE of

EFFECTIVENESS

COMPETITIVENESS


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HOLISTICHOLISTICORGANIZATIONAL BEHAVIORORGANIZATIONAL BEHAVIOR

Interprets the PEOPLE/ORGANIZATION relationship in terms of the whole person,

whole group, whole organization and the whole social system.

An across-the-board view of people-in-organizations.

A total situation focus Not a single event or problem.


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BASIC APPROACHES toBASIC APPROACHES to

ORGANIZATIONAL BEHAVIOURORGANIZATIONAL BEHAVIOUR

Human resources Approach

Contingency Approach

Productivity Approach

Systems Approach

Employee growth & development are important

Different environments/goals demand different behaviors

Efficiency becomes the main criteria

All parts of an organization interact in a complex

relationship

OB requires a mixture of all 4 approaches!

2


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FOUR MODELS OFFOUR MODELS OF

ORGANIZATIONAL BEHAVIORORGANIZATIONAL BEHAVIOR

Basis of

Model

Power Economic

resources

Leadership Partnership

Managerial

Orientation

Authority Money Support Teamwork

Employee

Orientation

Obedience Security and

benefits

Job

performance

Responsible

behavior

Employee

Psychological

Result

Dependence on

boss

Dependence on

organization

Participation Self-discipline

Employeeneeds met

Subsistence Security Status andrecognition

Self-actualization

Performance

Results

Minimum Passive co-

operation

Awakened

drives

Moderate

enthusiasm

AUTOCRATIC CUSTODIAL SUPPORTIVE COLLEGIAL

Developmental & Contingent2


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MAJOR CHARACTERISTICS OF OBMAJOR CHARACTERISTICS OF OB

1. 3 Levels of Analysis Individual, Group, Organization

2. Interdisciplinary Psychology, Sociology, Anthropology, & Political science

3. Humanistic Orientation Attitudes, Perceptions, Needs & Emotions

4. Performance Orientation The ultimate goal of OB is to improve, sustain, encourage

effective performance

5. Recognition of External Environment Technology, Laws, Competition, Economy

6. Practical Application OB knowledge must be useful to practicing managers

7. Organizations as Social Systems Relationships among individuals & groups in organizations

create expectations for the behavior of individuals

8. Contingency Approach There is no one Best way! Best depends on the situation

9. Structure & Process Both play key roles in understanding OB


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OBOB--And the Social SystemAnd the Social System

Social System: A complex set of human relationships interacting in

countless ways.

The behavior of any one member can affect the behavior of others

directly/indirectly.

All social systems interact with their environments

Open systems = Input-Process-Output

Social Equilibrium: A dynamic working balance in the system.

However, the equilibrium is dynamic and ever-changing.

FUNCTIONAL & DYSFUNCTIONAL ACTIONS:

Functional actions have favorable effects

Dysfunctional actions unfavorable effects

2


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Key Elements in Organizational BehaviorKey Elements in Organizational Behavior

Organization

People

TechnologyStructure

Environment


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THE RELATIONSHIP OF OB TO OTHERTHE RELATIONSHIP OF OB TO OTHER

CLOSELY RELATED DISCIPLINESCLOSELY RELATED DISCIPLINES

THEORETICALOT

(Organization Theory)

OB

(Organizational

Behavior)

APPLIED

OD

(Organizational

Development)

P/HR

(Personal/

Human Resources)

MACRO MICRO


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MANAGERIAL USE OF OBMANAGERIAL USE OF OB

Managerial

Systems

Manage

Organizational

Behavior

Better

People/

organization

relationship

Human

objectives

Organizational

objectives

Social

objectives


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A MODEL of OBA MODEL of OB

Managements

-Philosophy

-Values

-Vision

-Goals

Organizational

Culture

Leadership

Communication

Group dynamics

Quality of work life

Motivation

Outcomes:

Performance

Individual satisfaction Personal growth and development

Formal

organization

Social

environment

Informal

organization


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The Psychological ContractThe Psychological Contract

An unwritten agreement that defines the conditions of an employees psychological involvement

in the social system.

Economic Contract

Loyalty

Creativity

Extra effort

Time

Talent

Energy

EXPECT

(unwritten exchange)

EXPECT

(written exchange)

Wages

Hours

Reasonable working conditions

Job security

Fair treatment

Rewarding relationships

Developmental opportunities

Psychological Contract


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THE PSYCHOLOGICAL CONTRACT ANDTHE PSYCHOLOGICAL CONTRACT AND

THE ECONOMIC CONTRACTTHE ECONOMIC CONTRACT

Employee Employer

Psychological

Contract

Economic

Contract

Employee:

If expectations are met:

High job satisfaction

High performance

Continuance with organization

If not met:

Low job satisfaction

Low performance

Possible separation

Employer:If expectations are met:

Employee retention

Possible promotion

If not met:

Corrective action

Possible separation


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VarVariiablesables Influencing Individual BehaviorInfluencing Individual Behavior

The PERSON

Skills

Abilities

Personalities

Perceptions

Attitudes

Values

Ethics

The ENVIRONMENT

Organization

Work group

Job

Personal life

BEHAVIOR


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OB AS AOB AS ACONTINGENCY MODELCONTINGENCY MODEL


An Introduction !

UNIVERSAL/CONTINGENCY VIEW


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UNIVERSAL

VIEW:

UNIVERSAL

VIEW:

Same managerial

principles apply

to every

situation

Same managerial

principles apply

to every

situation

CONTINGENCY VIEW:

Appropriate managerial

action depends on the

situation

CONTINGENCY VIEW:

Appropriate managerial

action depends on the

situation

UNIVERSAL/CONTINGENCY VIEW

Situation

1

Situation

1

Situation

3

Situation

3

Situation

2

Situation

2


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There Are Few Absolutes in OB

Contingency

Variablesx y

2


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A CONTINGENCY MODELA CONTINGENCY MODEL

Independent variables

X

Dependent variables

Y

(affect)

If X then Y

Independent variables

X

Dependent variables

YModerating variables

Z

If X then Y but only if condition Z exists

AS GOOD BEHAVIORAL SCIENTISTS MANAGERS MUST STUDY

. Independent Variables

2. Moderating Variables

In Order to Explain Behavior Y

2


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MAJOR DEPENDENT VARIABLES IN OBMAJOR DEPENDENT VARIABLES IN OB

1. PRODUCTIVITY: Effectiveness & Efficiency

2. ABSENTEEISM: Costs Billion of $ Per Year

3. TURNOVER: Time & Cost for Recruiting, Selecting and

Training

4. JOB SATISFACTION: Attitude Rather Than Behavior

MAJOR INDEPENDENT VARIABLES:

WHAT ARE THEDETERMINANTS OF

PRODUCTIVITY

ABSENTEEISM

TURNOVER

JOB SATISFACTION

CITIZENSHIP


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The Dependent Variables


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The Dependent Variables (contd)


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Independent VariablesIndependent Variables

Individual Group Organization

Biographical Traits

Personality

Values & Attitudes

Ability

Perception

Motivation

Individual Learning

Decision Making

Communication

Other Groups

Conflict

Power & Politics

Group Structure

Work Teams

Leadership

Decision Making

Culture

Structure

Design

Technology

Work Processes

Selection Processes

Training Programs

Appraisal Practices

THESE ARE THE VARIABLES THAT MUST BE MANAGED IN ORDER TO ACHIEVE

ACCEPTABLE DEPENDENT VARIABLE LEVELS


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Old Versus New Manager ProfileOld Versus New Manager ProfileOld Versus New Manager ProfileOld Versus New Manager Profile

Which kind are you?

OLD MANAGER

Thinks of self as a managers or boss

Follows the chain of command

Works within a set organizationalstructure

Makes most decisions alone

Hoards information

Tries to master one major discipline,

such as marketing or finance

Demands long hours

NEW MANAGER

Thinks of self as a sponsor, teamleader or internal consultant

Deals with anyone necessary to get

the job done

Changes the organizational structurein response to market changes

Invites others to join in decisionmaking

Shares information

Tries to master a broad array ofmanagerial disciplines

Demands results


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Traditional StudentsVersus Learners

The Student Game Study material to pass exams

Passively accept and memorize

ideas from others

Complete assignments to please

teacher

See course as an obstacle to

getting a degree

View assignments as threat to

GPA

Goal: Good Grades

See instructor as expert and

assessor

The Learner Gamevv Internalizes concepts to be successfulInternalizes concepts to be successful

vv Critically evaluates ideas and testCritically evaluates ideas and testvalidityvalidity

vv Uses assignments to practice andUses assignments to practice andimprove skillsimprove skills

vv Sees course as opportunity to enhanceSees course as opportunity to enhancesuccesssuccess

vv Views assignments as opportunity toViews assignments as opportunity to

get feedback on personalget feedback on personaldevelopmentdevelopment

vv Goal: Skill MasteryGoal: Skill Mastery

vv Aware of traditional rolesAware of traditional roles--but addsbut addscoach, counselor, and facilitatorcoach, counselor, and facilitator


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SUMMARY & CONCLUSION

WHAT ARE SOME CONCLUDING

STATEMENTS YOU CAN MAKE

CONCERNINGTHE IMPORTANCE OF OB?


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YOU BE THE CONSULTANT

AS PART OF YOUR PROFESSIONAL DEVELOPMENT YOUR COMPANY IS

PAYING FOR YOU TO TAKE THIS COURSE IN OB. HOWEVER, YOUR

BOSS IS SKEPTICAL BECAUSE HE DOES NOT UNDERSTAND WHAT

THE COURSE IS ALL ABOUT, AND HOW IT WILL BENEFIT THE

COMPANY WHEN YOU COMPLETE IT.

ANSWER THE FOLLOWING QUESTIONS AS PREPARATION FOR A

MEETING TO ENLIGHTEN YOUR BOSS:

1. HOW WOULD YOU DESCRIBE THIS COURSE TO YOUR BOSS ?

2. HOW WILL YOU RESPOND IF HE SAYS: YEAH, BUT ITS ALL JUST

COMMON SENSE?

3. WHAT BENEFITS TO THE COMPANY WOULD YOU TELL YOUR BOSS HEMIGHT SEE AS A RESULT OF IMPLEMENTING SOME OF THE

PRINCIPLES AND PRACTICES INCLUDED IN THIS COURSE ?

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