Chapter 1

Introduction to
Organizational Behavior

McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
 Learning Objectives

 Define in applied terms organizational behavior (OB)

 Describe the disciplines that have contributed to the
field of organizational behavior
 Discuss the importance of understanding behavior
in organizations
 Explain the time dimension model of measuring
effectiveness
 Explain the relationship between quality and
organizational effectiveness

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 Introduction

 Imagine working where…

■ Workers are excited about their jobs
■ Managers listen carefully to worker’s comments
■ The atmosphere is vibrant
 Is this the ideal work setting?
■ It must be achieved if a firm, entrepreneur, or
institution is to survive the coming years

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Environmental Forces Reshaping Management

Technology
Technology
Psychological
Psychological
Rapidity of
Rapidity of
Contract
Contract
Change
– unwritten

Change
– unwritten
- things change eg contract. What do the company expect from
- things change eg contract. What do the company expect from
laptop outdate.. employee. Eg: Loyalty drop…more loyal to
laptop outdate.. employee. Eg: Loyalty drop…more loyal to
proffesion rather that company. If company
proffesion rather that company. If company
can pay me more, we change company.

Human
Human Globalism Cultural
can pay me more, we change company.

Cultural
Resources Globalism - /globalization.

Diversity
Resources Diversity
- /globalization.
-
- -
-

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 The Origins of Management

 Before 1900, management…

■ Was based on trial and error
■ Had little or no theory
■ Did not share ideas and practices
 The Industrial Era
■ Began around the time of the Civil War
■ First management publications emerged

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 The Origins of Management

Frederic Taylor’s Henri Fayol’s

Scientific Management Functions of
Management

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 Why Study Organizational Behavior?

 Studying OB can help us understand…

■ Why employees behave as they do
■ Why one individual or group is more productive
than another
■ Why managers continually seek ways to
design jobs and delegate authority
(mean change/ redesign)
■ - if you can predict employee behavior, we may win him/her to be more productive
■ - normally will look into depend varible to control the independent behavior.

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Why Study Organizational Behavior?

What is OB?

A way of thinking
Multidisciplinary
A humanistic orientation
Performance-oriented
Based on recognized disciplines
Has an applications orientation
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 Contributors to the Study of OB

Psychology
Individual- behavior

Sociology

Organizational
Social Psychology Group- behavior
Behavior

Anthropology

Organization- behavior
Political Science

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Leaders and Organizational Behavior

Internal and External Challenges

Changing makeup & diversity of workforce

Demanding customers
Changes in markets and competition
Using and managing information technology
Everything is in motion and churning

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 The Hawthorne Studies

 Trade unions rebelled against Taylor’s

scientific management principles
■ Mary Parker Follet promoted participatory
decision making and decentralization
■ Industry wanted evidence that focusing on
people produces higher productivity
■ Harvard University conducted studies

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 The Hawthorne Studies

Effect of illumination on worker output

Rest pauses, shorter days, incentives, management
Workers produced more merely by being
observed and studied
Social pressures and group norms could
increase or restrict output
Some contend fear of job loss was a factor

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Framing the Study of Organizational Behavior

Studying Organizations

Part 1 The Field of Organizational Behavior

Part 2 Understanding & Managing Individual Behavior

Part 3 Group Behavior and Interpersonal Influence

Part 4 Organizational Processes

Part 5 Organizational Design, Change, and Innovation

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 The Organization’s Environment

Exist in societies
Organizations
Organizations
Are created by societies

Customer/client needs
Environmental
Environmental
forces
forces in
in these
these Legal/political constraints
societies
societies
Economic/technological changes

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The Individual in the Organization

Individual performance is the foundation

of organizational performance

Important influences on individual

behavior and motivation

Individual characteristics

Individual motivation
Rewards
Stress

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 Group Behavior and Interpersonal Influence

 Interpersonal influence and group behavior

are powerful forces
■ They affect organizational performance

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Group Behavior and Interpersonal Influence

Power Politics
Organizational
Behavior
Intergroup
Group
behavior and
behavior
conflict

Leadership

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 Organizational Processes

When
Whenbehavioral
behavioralprocesses
processesin inan
anorganization
organization
don’t
don’tfunction
functionwell,
well, problems
problemscancanarise
arise

Communication
Communication Decision-
Decision- Leadership
Leadership
Process
Process making
making Process
Process

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 Organizational Structure

 Managers must understand

■ The formal pattern
of activities and
interrelationships
■ Among the various
subunits of the
organization

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Organizational Change and Innovation

Effectiveness might be improved by

changing the total organization

Be prepared to deal with employee reactions

when changes occur

Reactions can range from mild to extreme

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 Effectiveness in Organizations

 Whether and how managers influence

behavior, and thus effectiveness, is hard
to determine
■ Levels of analysis…
Individual, group, organizational
■ Levels of managerial responsibility…
Individuals, groups of individuals, the
organization itself

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 Systems Theory

Enables managers to describe

the behavior of organizations

Inputs Process Outputs

Environment

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 Systems Theory

 Used to integrate organizational

effectiveness and time
 Effectiveness criteria must reflect…
■ The entire input-process-output cycle
■ Interrelationships between the organization
and its outside environment
■ The stage of the organization’s life

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Systems Theory

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 Time-Based Criteria

Quality Productivity

Efficiency Satisfaction

Adaptiveness Development

** refer to exi 1.2

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