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The Study of Organizations. I. The Importance of Organizations. Organizations exists because they accomplish things that cannot be achieved by individuals. Organizations are GOAL-DIRECTED.
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I. The Importance of Organizations • Organizations exists because they accomplish things that cannot be achieved by individuals.
Organizations are GOAL-DIRECTED • They pursue goals and objectives that can be achieved more efficiently by the coordinated actions of groups and individuals.
Why study organizations • It is where we spend most of our lives • Schools, work, church, fraternities, etc. • All are forms of organizations
Importance of Studying Organizational Behavior • Organizational Behavior is the study of human behavior, attitudes, and performance within an organizational setting; drawing on theory, methods, and principles from such areas as psychology, sociology, and cultural anthropology to learn about capacities, and actions while working in groups and within the total organization analyzing the external environment’s effect on the organization and its human resources, missions, objectives, and strategies.
A Framework for Studying Organizations • 1. Based on the Situation or Context--Contingency Approach • 2. Based on Structure and Process
Contingency Approach (Situational) to management. • The process of managing is based on the situation. There is no one best way to manage. • A good manager diagnosis the characteristics of the individuals and groups involved, the organizational structure, and his/her own leadership style before acting on a situation.
Structure and Process • 1. Structure - formal pattern of how its people and jobs are performed. Usually depicted by an organizational chart. • 2. Process - activities that “give life” to the organizational chart. • i.e. Communication, decision making, performance evaluation, etc.
The Individual • Understanding the Individual is the foundation of Organizational Behavior. • Individual Characteristics • What makes people individuals with their own values, attitudes, etc. • Individual Motivation • Rewards and Punishment • Stress - State of imbalance based on such things as role conflict and role overload.
Groups and Interpersonal Influence • Group Behavior (Intra and Inter) • Politics and Conflict Resolution • Group Decision Making • Teams • Communication • Leadership
The Structure of Organizations • Job Design - The process by which managers specify the contents, methods, and relationships between jobs to satisfy organizational and individual needs. • Organizational Design - refers to overall organizational structure. • a picture of task and authority relationships. • functional, product, matrix • the organizational chart
Managing Individual, Groups and Organizational Effectiveness
The ways of winners • T.J. Peters and R.H. Waterman’s In Search of Excellence • 8 Basics of Management Excellence
1. A bias for action (Quick Action) • Based on four activities • Emphasize informal, open, and intensive communication throughout the organization • Corporate winners maintain “chunking,” small, action-oriented, and informal groups that generate ideas, develop them, and solve problems. • These companies emphasize experimenting and trying out new ideas. • Winners encourage simplicity.
2. Staying close to the needs and problems of customers. • Customer service is an obsession with these companies. • Use of toll free numbers and access to upper management by customers.
3. Autonomy and Entrepreneurship • Give employees the resources to try out new ideas. • Encourage competition between divisions • Maintain “Championing Systems”
These systems are characterized by individuals who assume one of three roles. • 1. The Product Champion • the person with a specific product idea. • 2. Executive Champion • typically a former product champion who protects the idea from barriers. • 3. The Godfather • an aging leader who provides the role model for championing.
4. People as the Key to Productivity • Winners emphasize their people through intensive training, and by developing caring relationships with employees. • They avoid quick layoffs etc.
5. Simple Organizations • Excellent companies strive to keep organizational structure simple by minimizing the size of corporate staff and using a product division for structure.
6. Strong Corporate Culture • Maintain strong corporate culture by basing it on clear, well understood guiding values.
7. Loose and Tight Control • Emphasize “Loose” principle such as autonomy, entrepreneurship, and innovation by employees, yet maintain a tight system of discipline, values, and objectives.
8. Stick to the Basics • Winners restrict their business activities to things they know best.