Organizational Behavior: Why People Matter to Organizations

2. 1 Organizational Behavior core concepts McGraw-Hill/Irwin Organizational Behavior, Core Concepts Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Organizational Behavior: Why People Matter to Organizations

3. Learning Objectives • Explain the importance of people skills to management success • Summarize principles for making ethical decisions • Describe how the role of managers is affected by global business and the changing workplace • Define organizational behavior, and identify disciplines that contribute to OB

4. Learning Objectives • Discuss how OB has been shaped by total quality management, the contingency approach, appreciation of human and social capital, and positive psychology • Define e-business, and specify ways the Internet is affecting the management of people at work

5. Managers Get Results With and Through Others • Management • process of working with and through others to achieve organizational objectives efficiently and ethically • Today’s manager needs to creatively envision and actively sell bold new directions in an ethical and sensitive manner

6. A Skills Profile for Managers • Typical manager’s day is a fragmented collection of brief episodes • Interruptions are commonplace • Large blocks of time for planning are rare

7. A Skills Profile for Managers • Clarifies goals and objectives for everyone involved. • Encourages participation, upward communication, and suggestions. • Plans and organizes for an orderly workflow. • Has technical and administrative expertise to answer organization-related questions.

8. A Skills Profile for Managers • Facilitates work through team building, training, coaching, and support. • Provides feedback honestly and constructively. • Keeps things moving by relying on schedules, deadlines, and helpful reminders.

9. A Skills Profile for Managers • Controls details without being overbearing. • Applies reasonable pressure for goal accomplishment. • Empowers and delegates key duties to others while maintaining goal clarity and commitment. • Recognizes good performance with rewards and positive reinforcement.

10. Importance of Ethical Behavior Ethics involves: • The study of moral issues and choices • Right vs. wrong • Many shades of gray in supposedly black-and-white issues

11. A Model of Ethical Behavior in the Workplace Figure 1-1

12. Making Ethical Decisions • Ethical decision making frequently involves trade-offs • Begin by asking whether a proposed action is legal • Consider the impact of the alternative on shareholder value • Apply general moral principles

13. The Global Context: Cultural Differences • Societal cultures • socially derived, taken-for-granted assumptions about how to think, act, perceive, and feel

14. Project GLOBE Cultural Dimensions • Power distance • Uncertainty avoidance • Societal collectivism • In-group collectivism • Gender egalitarianism

15. Project GLOBE Cultural Dimensions • Assertiveness • Future orientation • Performance orientation • Humane orientation

16. 21st-Century Managers • Teams are pushing aside the individual • Command-and-control management is giving way to participative management and empowerment • Ego-centered leaders are being replaced by customer-centered leaders • Employees are being viewed as internal customers

17. Evolution of the 21st Century Manager Table 1-1

18. The Field of Organizational Behavior • Organizational Behavior- Interdisciplinary field dedicated to better understanding and managing people at work

19. Psychology Sociology Social psychology Statistics Anthropology Economics Information technology Political science Management The Field of Organizational Behavior

20. The Human Relations Movement • Legalization of union-management collective bargaining • Behavioral scientist called more attention to the human factor • Elton Mayo – Western Electric Hawthorne study

21. The Hawthorne Legacy • Interviews do not support initial conclusions about positive effect of supportive supervision • Money, fear of unemployment, managerial discipline and high quality raw materials were responsible for high output

22. Mary Parker Follett • Follett saw employees as complex bundles of attitudes, beliefs, and needs • Managers should motivate job performance

23. McGregor’s Theory Y • Theory X assumptions • pessimistic and negative, typical of how managers traditionally perceived employees

24. McGregor’s Theory Y • Theory Y • believed managers could accomplish more through others by viewing them as self-energized, committed, responsible, and creative beings

25. McGregor’s Theory X and Theory Y

26. Question? What organizational culture is dedicated to training, continuous improvement, and customer satisfaction? A. Process B. Total Customer Quality C. Total Quality Management D. Deming SPC

27. What is TQM? • Total Quality Management • An organizational culture dedicated to training, continuous improvement, and customer satisfaction

28. The Deming Legacy • Formal training in statistical process control and techniques • Helpful leadership, rather than order giving and punishment • Elimination of fear so employees will feel free to ask questions • Teamwork • Elimination of barriers to good workmanship

29. The Deming Legacy • 85-15 Rule • When things go wrong, there is roughly an 85% chance the system is at fault. • Only about 15% of the time is an individual employee at fault

30. What is TQM? • Principles of TQM • Do it right the first time to eliminate costly rework. • Listen to and learn from customers and employees. • Make continuous improvement an everyday matter. • Build teamwork, trust and mutual respect.

31. The Contingency Approach • The Contingency Approach • Using management concepts and techniques in a situationally appropriate manner, instead of trying to rely on “one best way”

32. The Age of Human and Social Capital • Human Capital • The productive potential of one’s knowledge and actions • A present or future employee with the right combination of knowledge, skills, and motivation to excel

33. The Age of Human and Social Capital • Social capital • The productive potential of strong, trusting, and cooperative relationships

34. Dimensions of Human and Social Capital Figure 1-2

35. Building Human and Social Capital Measures of human capital outcomes • Leadership/managerial practices • Workforce optimization • Learning capacity • Knowledge accessibility • Talent engagement

36. The Positive Psychology Movement • Recommends focusing on human strengths and potential as a way to prevent mental and behavioral problems and to improve the general quality of life

37. The Positive Psychology Movement • Subjective level • Individual level • Group level

38. Positive Organizational Behavior (POB) the study and improvement of employees’ positive attributes and capabilities Positive Organizational Behavior Read Jean-Pierre Neveu’s article on Positive Organizational Behavior

39. Luthans’s CHOSE ModelOf Key POB Dimensions • Confidence/self-efficacy • Hope • Optimism • Subjective well-being • Emotional intelligence

40. E-Business: Much More Than E-Commerce • E-business • running the entire business via the Internet • The Internet is a tool that dramatically lowers the cost of communication

41. E-Business Implications for OB • E-management • E-leadership • E-communication • Goal setting and feedback • Organizational structure

42. E-Business Implications for OB • Job design • Decision making • Knowledge management • Speed, conflict and stress • Change and resistance to change • Ethics