Organizational Behavior:An Introduction to

Your Life in Organizations

Chapter 1

Why Mastering Organizational Behavior is Essential to Your Career

Preview

• What is organizational behavior, and what kinds of business challenges does it address?

• What economic and social issues challenge today’s organizational leaders?

• What organizational processes help companies compete in the modern economy?

• What will your career be like in modern organizations?

• How will mastering OB help you in your career?

What is Organizational Behavior (OB)?

• Organization: a coordinated set of individuals working together on a relatively continuous basis toward common goals

• Organizational Behavior (OB): the study of how people behave in organizations

• OB is a social science based on data obtained through systematic study

What challenges do managers face at different organizational levels?

• How to motivate yourself and others

• How to work and stay healthy

• How power and politics shape careers and organizations

• How leaders lead

• How managers design their companies to meet worldwide competition

OB is not Human Resources Management (HRM)

HRM is an organizational function responsible for staffing

issues

OB is not a function, it is a set of organization-wide processes

Micro level & Macro level OB

Micro Level OB

Individual,Interpersonal andGroup Behaviors

Macro Level OB

How human systems and organized, structured and controlled

Also called organizational theory

Open vs. Closed Systems

Open System

Permits the free flow of information into and out of the organization

Closed System

Restricts information flow

What economic and social issues challenge today’s organizational

leaders?

1. Globalization

2. The changing nature of work

3. The complex workforce

Globalization

• Movement of trade, resources and personnel across borders and regions

• Mixed opinion on its benefits

• Affects: The nature of the work Location of jobs How companies manage people

The changing nature of work

• Job growth: Primarily in small and new companies Most will work for others Education and health services will be

strongest

• New grads in high demand• Job disruption: downsizing, outsourcing,

productivity increases• Contingent jobs are temporary

The complex work force

• Diversity is increasing

• Factors that affect organizations: Aging workforce & the Millennial generation Gender representation Racial diversity Literacy Employability Union representation

What organizational processes help companies compete in the modern

economy?

• Relying on teams

• Innovations in attracting and keeping employees

• Adaptations in organizational design

Adaptations in organizational design

• Boundaryless organization

• Employee empowerment

• Process improvements

• Organizational learning

• Innovative culture

• Adopt new forms

What will your career be like in modern organizations?

• A complex and fast-paced business world will require you to be adaptable

• OB skills will be necessary as businesses change

• Recruiters value OB skills

• The special case for ethics

Career Paths

• Primary labor market: Professional, managerial type jobs Higher incomes, relative security, good

benefits

• Secondary labor market: Little or no advancement possible Lower incomes, little security, few benefits

Career PatternsSteady State Career

Lifetime employment in one jobChange employers infrequently

Spiral Career

Follow a variety of interests around one core skill set

Transitory Career

Move among many different unrelated positions

Linear Career

Stay within the same profession but change jobs and companies fairly frequently

Career Anchors

1. Technical or functional competence

2. Managerial competence

3. Security and stability in your job

4. Creativity and entrepreneurship

5. Autonomy and independence in your work

Career Stages

Stage 1: Preparation

Stage 2: Organizational entry

Stage 3: Early Career

Stage 4: Middle Career

Stage 5: Late Career

Career Roles

Independent Contributor

You work in a key job with no subordinates

Manager

You manage others to meet organizational goals

How will mastering OB help you in your career?

• Studying OB will help you: Understand yourself Become familiar with techniques for solving

behavior-based organizational problems See the complexity in organizations Obtain the vocabulary and fundamentals for

continuing study

Apply what you have learned

• World Class Company: Netflix

• Advice from the Pro’s

• Gain Experience

• Can you solve this manager’s problem?

Summary – What is OB

• OB is the study of how people behave in organizations

• OB is not HRM

• OB helps managers solve practical problems

• An organization is a system with inputs, processes and outputs

Summary – Issues that challenge leaders

• Globalization

• Changing nature of work: job growth, job disruption, and contingent jobs

• Complexities of the workforce: age, gender, race, literacy, employability, and union representation

Summary – Organizational Processes

• Foster innovation & high quality decision making

• Rely on teams & improve the way they attract & retain workers

• Emphasis on ethics

• Adapting

Summary – Your Career

• Career patterns

• Career stages

• Role choices

• Career anchors

• OB provides practical information and insights for your life in organizations