Ob chapter1

1-1 ©2005 Prentice Hall

Chapter 11Introduction to Introduction to Organizational Organizational

BehaviorBehavior


Chapter Objectives

Define organizational behavior and explain how and why it determines the effectiveness of an organization

Appreciate why the study of organizational behavior improves a person’s ability to understand and respond to events that take place in a work setting

Differentiate between the three levels at which organizational behavior is examined


Chapter Objectives

Appreciate the way changes in an organization’s external environment continually create challenges for organizational behavior

Describe the four main kinds of forces in the environment that post the most opportunities and problems for organizations today


IKEA’s Global Approach to OB

IKEA strives to increase employees’ skills and knowledge

IKEA provides employees with rewards that encourage high performance

IKEA encourages employee commitment and cooperation


What is an Organization?

An organization is a collection of people who work together to achieve individual and organizational goals– Individual goals– Organizational goals


What is Organizational Behavior?

Organizational behavior (OB): the study of factors that have an impact on how people and groups act, think, feel, and respond to work and organizations, and how organizations respond to their environments


Insert Figure 1.1 here

Figure 1.1 What is Organizational Behavior?


Figure 1.2 Levels of Analysis

Group Level

Individual Level

Organizational Level


Figure 1.3 Components of Organizational Behavior

Understanding organizational behavior

requires studying

Part One Individuals in Organizations

Part Two Group and Team Processes

Part Three Organizational Processes


What is Management?

Management is the process of planning, organizing, leading, and controlling an organization’s human, financial, material, and other resources to increase its effectiveness


Figure 1.4 Four Functions of Management

PlanningDecide on organizational goals

and allocate and use resources to

achieve those goals

OrganizingEstablish the rules and

reporting relationships thatallow people to

achieve organizational goals

ControllingEvaluate how well the

organization is achieving goals and take action to

maintain, improve, and correctperformance

LeadingEncourage and coordinate

individuals and groups so that they work

toward organizational goals


Table 1.1: Mintzberg’s Managerial Roles

Figurehead Liaison Disseminator Entrepreneur Resource allocator

Leader Monitor Spokesperson Disturbance

handler Negotiator


Managerial Skills

Conceptual Skills Technical Skills

Human Skills


Figure 1.5 An Open Systems View of Organizational Behavior


Challenges for Organizational Behavior

1: Changing Social/ Cultural Environment 2: Evolving Global Environment 3: Advancing Information Technology 4: Shifting Work/ Employment Relationships


Changing Social and Cultural Environment

National culture Organizational ethics and well-being Diverse work force


Diversity Challenges

Fairness and Justice Decision-Making and Performance Flexibility


Figure 1.6 Diversity


Evolving Global Environment

Understanding Global Differences

Improve Organization’s Behaviors and Procedures in Response to Those Differences


Advancing Information Technology

Information Knowledge Information Technology Organizational Learning Intranets Creativity Innovation


Shifting Work/ Employment Relationships

Downsizing Empowerment and Self-Managed Teams Contingent Workers Outsourcing


Appendix 1A: A Short History of Organizational Behavior

F.W. Taylor and Scientific Management Mary Parker Follett Hawthorne Studies Theory X and Y


F.W. Taylor and Scientific Management

Scientific management: the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency

The amount of and effort each employee expends to produce a unit of output can be reduced by increasing specialization and the division of labor


Four Principles of Scientific Management

1. Study the way employees perform their tasks, gather informal job knowledge that employees possess, and experiment with ways of improving the way tasks are performed

2. Codify the new methods of performing tasks into written rules and standard operating procedures


Four Principles of Scientific Management_2

3. Carefully select employees so that they possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures

4. Establish an acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level


Mary Parker Follett

Management must consider the human side Employees should be involved in job

analysis Person with the knowledge should be in

control of the work process regardless of position

Cross-functioning teams used to accomplish projects


The Hawthorne Studies

Hawthorne Works of the Western Electric Company; 1924-1932

Initiated as an attempt to investigate how characteristics of the work setting affect employee fatigue and performance (i.e., lighting)

Found that productivity increased regardless of whether illumination was raised or lowered


The Hawthorne Studies_2

Factors influencing behavior:– Attention from researchers– Manager’s leadership approach– Work group norms

The “Hawthorne Effect”


Douglas McGregor: Theory X and Theory Y

Theory X Average employee is lazy,

dislikes work, and will try to do as little as possible

Manager’s task is to supervise closely and control employees through reward and punishment

Theory Y Employees will do what is

good for the organization when committed

Manager’s task is create a work setting that encourages commitment to organizational goals and provides opportunities for employees to be exercise initiative

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