Chapter 1 Introduction

History of Organizational Behavior

Organizational Behavior - An interdisciplinary field dedicated to better understanding and managing people at work

Human Relations Movement

Inspired by legalization of union-management collective bargaining in the US

Hawthorne Studies - Supportive management (individuals improve an aspect of their behavior in response to their awareness of being observed)

The Quality Movement

Total Quality Management (TQM) - 6 sigma

An organizational culture dedicated to training, continuous improvement, and customer satisfaction

Employee-driven, customer-focused

Basic Principles

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

E-Business Revolution

More and faster communication with others

More potential for damage by unethical leaders

Enables the existence of networks that go across traditional organizational boundaries

Human and Social Capital

Human Capital: the productive potential of an individuals knowledge and actions

Example: Mitre, McLean, VA - pays university professors to conduct a Masters in Systems Engineering program for employees

Social Capital: productive potential resulting from strong relationships, goodwill, trust, and cooperative effort

Example: Cisco Systems, San Jose, CA - sponsors Nerd lunches to discuss latest topics in technology

Management

Process of working with and through others to achieve organizational objectives efficiently and ethically

Evolution of Managers

Management functions: planning, organizing, leading and controlling

Mintzbergs ten managerial roles

Interpersonal: Figurehead, Leader, Liaison

Informational: Monitor, Disseminator, Spokesperson

Decisional: Entrepreneur, Disturbance handler, Resource allocator Negotiator

Luthans Four types of managerial activity

Traditional Management: Decision-making, planning, and controlling.

Communication: Exchanging routine information and processing paperwork

Human Resource Management: Motivating, disciplining, managing conflict, staffing and training.

Networking: Socializing, politicking, and interacting with others.

Successful managers: promoted faster (Networking > Communication)

Effective managers: did their jobs well (Communication > HRM)

Intuition and Systematic

Intuition: Gut feelings, Individual observation, Commonsense

Systematic: Looks at relationships, Scientific evidence, Predicts behaviors

VUCA = volatile, uncertain, complex, ambiguous

Five Sources of OB Research Insights

Laboratory study: Manipulation and measurement of variables in contrived situations

Field study: Examination of variables in real-life settings

Sample survey: Questionnaire responses from a sample of people

Case Studies: In-depth analysis of single individual, group, or organization

Meta-analysis: Pools the results of many studies through statistical procedure

OB Dependent Variables

Productivity: Transforming inputs to outputs at lowest cost; effectiveness (achievement of goals) and efficiency (meeting goals at a low cost).

Absenteeism: Failure to report to work a huge cost to employers.

Turnover: Voluntary and involuntary permanent withdrawal from an organization.

Deviant Workplace Behavior: Voluntary behavior that violates significant organizational norms and thereby threatens the well-being of the organization and/or any of its members.

OB Independent Variables

Individual: Biographical characteristics, personality and emotions, values and attitudes, ability, perception, motivation, individual learning and individual decision making.

Group: Communication, group decision-making, leadership and trust, group structure, conflict, power and politics, and work teams.

Organization System: Organizational culture, human resource policies and practices, and organizational structure and design.

Challenges

Responding to Globalization, Managing Workforce Diversity

Improving Customer Service, Improving People Skills

Stimulating Innovation and Change, Coping with Temporariness

Working in Networked Organizations

Helping Employees Balance Work-Life Conflicts

Creating a Positive Work Environment, Improving Ethical Behavior