Chap 1 Introduction to the Field of OB Jan2012

8/2/2019 Chap 1 Introduction to the Field of OB Jan2012

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Dear Students,Welcome to our 1st

lecture of the week!!

Chapter 1:Introduction to

the Field ofOr anizationalMcGraw-Hill/Irwin

McShane/Von Glinow OB 5e Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.


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Organizational Behavior andOrganizations What is

Organizational behavior?

The study of what people

think, feel, and do(behave)

in and around organizations

Organizations

Groups of people who workinterdependently toward some

purpose

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Why Study OB?

To understand behavior

To predict behavior

To influence behavior getting things done

OB improves an organizations financial health

OB is for everyone

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OB Foundations

Distinct field around the 1940s OB concepts discussed for more

than 2,000 years

Some pivotal scholars before OB

formed include: Max Weber

Frederick Winslow Taylor

Elton Mayo

Chester Barnard (shown)

Mary Parker Follett

ChesterBarnard

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Old Perspective ofOrganizational Effectiveness

Goal oriented -- Effective firmsachieve their stated objectives

No longer accepted as indicatorof org effectiveness

Could set easy goals

Some goals too abstract toevaluate

Company might achieve wrong

goals

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Four Perspectives ofOrganizational Effectiveness

Stakeholder Perspective

High-Performance Work PracticesPerspective

Organizational Learning Perspective

Open Systems Perspective

NOTE: Need to consider all four perspectiveswhen assessing a companys effectiveness

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1. Open Systems Perspective

FeedbackFeedback

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Environment

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1. Open Systems Perspective

Organizations are complex systems that livewithin an external environment

Effective organizations:

Maintain a closefitwith changing conditionsinthe external environment

Transform inputsto outputsefficiently and flexibly

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2. Organizational LearningPerspective

An organizations capacity to

acquire, share, use, and store

valuable knowledge

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Organizational LearningProcesses

Applyingknowledge

to organizationalprocesses in waysthat improves theorganizationseffectiveness

Distributing

knowledgethroughout theorganization

Extracting information

and ideas from itsenvironment as wellas through insight

KNOWLEDGE

ACQUISITION

KNOWLEDGE

SHARING

KNOWLEDGE

USE

Examples in practice

-Hiring skilled staff-Acquiring companies-Experimenting

-company intranet-meetings-blogs-company magazines

-Giving staff freedomto try out ideas

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Organizational Memory

The storage and preservation of intellectualcapital

Retain intellectual capital by:

Keepingknowledgeable employees

Transferringknowledge to others

Transferring human capital to structural capital

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Intellectual Capital (i.e. intangible assets of acompany)

RelationshipCapital

Value derived from relationship withcustomers, reliable suppliers, etc.

Structural

CapitalKnowledge captured in systems andstructures

HumanCapital

Knowledge that people possess

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3. High Performance WorkPractices (HPWPs)

HPWPs are internal systems and structuresthat are associated with successful companies

1. Employeesare competitive advantage

2. Value of employees increased through specificpractices.

3. Maximum benefit when org practices are bundled

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High Performance WorkPractices

Example of High Performance Work Practices:

Employee involvement and job autonomy (andtheir combination as self-directed teams).

Employee competence (selection, training, etc)

Performance-based rewards

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4. Stakeholder Perspective

Stakeholders:

an entity (individual/organization) who affectsor

is affectedby the firms objectives andactions

Challengeswith stakeholder perspective:

Stakeholders have conflicting interests Firms have limited resources

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Stakeholder Perspective

For example: Lockheed Martinis rated by engineering studentsas an ideal employer

Pays attention to its manystakeholders

Relies on values and ethics toguide decisions

Strong emphasis on corporatesocial responsibility (e.g. photoshows clean-up after hurricaneKatrina: 2005)

Lockheed Martin

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Stakeholders: Values and Ethics

Organizational Values andethics prioritize stakeholderinterests

Values Stable, evaluative beliefs, guide

preferences for outcomes orcourses of action in varioussituations

Ethics Moral principles/values,

determine whether actions areright/wrong and outcomes aregood or bad

Lockheed Martin

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Stakeholders and CSR

Stakeholder perspectiveincludes corporate socialresponsibility (CSR)

Benefit society and environmentbeyondthe firms immediate

financial interests or legalobligations

Organizations contract with

society

Triple bottom line Economy, society, environment

Lockheed Martin

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Types of Individual Behavior(individual level dependent variable)

OrganizationalCitizenship

Contextual performancecooperation and helpfulness beyondrequired job duties

Task PerformanceGoal-directed behaviors underpersons control that supportorganizational objectives

more

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Types of Individual Behavior (cont)

Maintaining WorkAttendance

Attending work at required times

Joining/staying withthe Organization

Agreeing to employment relationship;remaining in that relationship

CounterproductiveWork Behaviors

(CWB)

Voluntary behaviors that potentiallyharm the organization

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Contemporary Challenges forOrganizations

1. Globalization

Economic, social, and cultural connectivitywith people in other parts of the world

Effects of globalization on organizations

New organizational structures

Increasing diversity

Increasing competitive pressures

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2. Increasing WorkforceDiversity

Surface-level diversity

Observable demographic and other overt differences inpeople

(e.g. race, ethnicity, gender, age)

Deep-level diversity

Differences in psychological characteristics

(e.g. personalities, beliefs, values, and attitudes)

Implications

Pros: Improved decision making

Cons: Communication problems, Team Conflict

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3. Emerging EmploymentRelationships

Work/life balance Minimizing conflict (balancing) between work and

nonwork demands number one indicator of careersuccess

Virtual work Using information technology to perform onesjob away

from the traditional physical workplace

Telework issues of replacing face time, clarifying

employment expectations

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Organizational Behavior


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Organizational BehaviorAnchors(basic beliefs on how OB knowledge is developed)

1. Multidisciplinary anchor Many OB concepts adopted from other disciplines

OB develops its own theories, but scans other fields

2. Systematic research anchor OB researchers rely on scientific method

E.g. forming research questions, systematically collecting data,

testing hypotheses, Qualitative or quantitative data analysis, etc

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Organizational BehaviorAnchors (cont)

3. Contingency anchor (not fixed, depends on...) A particular action may have different consequences in

different situations

Need to diagnose the situation and select best strategy

under those conditions

4. Multiple levels of analysis anchor Individual, team, organizational level of analysis

OB topics usually relevant at all three levels of analysis

Note:

Individual processes (Chap 2-7)

Team processes (Chap 8-12)

Organizational processes (Chap 13-15) 1-25

Chap 1 Introduction to the Field of OB Jan2012

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