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Introduction tothe Field ofOrganizational Behavior
McGraw-Hill/Irwin
McShane/Von Glinow OB
5eCopyright © 2010 by The McGraw-Hill Companies, Inc. All rights
reserved.
John Lassiter
Chief Creative Officer
of Pixar and Disney
Pixar Animation Studios
OB practices have helped
Pixar Animation Studios to
become the world’s most
successful animation studio
• Employee competencies
• People-centered
• Teamwork and org learning
• Constructive conflict
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John Lassiter
Chief Creative Officer
of Pixar and Disney
Organizational Behavior and Organizations
Organizational behavior
• The study of what people think,
feel, and do in and around
organizations
Organizations
• Groups of people who work
interdependently toward some
purpose
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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
Chester Barnard
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Why Study OB?
Satisfy the need to understand and predict
Helps us to test personal theories
Influence behavior – get things done
OB improves an organization’s financial
health
OB is for everyone
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Old Perspective ofOrganizational Effectiveness
Goal oriented -- Effective firms achieve their stated objectives
No longer accepted as indicator of org effectiveness
• Could set easy goals
• Some goals too abstract to evaluate
• Company might achieve wrong goals
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Four Perspectives of Organizational Effectiveness
Stakeholder Perspective
High-Performance WP Perspective
Organizational Learning Perspective
Open Systems Perspective
NOTE: Need to consider all four perspectives
when assessing a company’s effectiveness
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Open Systems Perspective
Organizations are complex systems that “live”
within (and depend upon) the external
environment
Effective organizations
• Maintain a close “fit” with changing conditions
• Transform inputs to outputs efficiently and flexibly
Open systems perspective lays the foundation for the other three perspectives or organizational effectiveness
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Open Systems Perspective
FeedbackFeedback
FeedbackFeedback
Environment
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Organizational Learning Perspective
An organization’s capacity to acquire, share, use, and store valuable knowledge
Need to consider both stock and flow of knowledge
• Stock: intellectual capital
• Flow: org learning processes of acquisition, sharing, and use
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Intellectual Capital
Relationship
CapitalValue derived from satisfied customers,
reliable suppliers, etc.
Structural CapitalKnowledge captured in systems and
structures
Human
CapitalKnowledge that people possess and
generate
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Organizational Learning Processes
Applying knowledge to organizational processes in ways that improves the organization’s effectiveness
Distributing knowledge throughout the organization
Extracting information and ideas from its environment as well as through insight
KNOWLEDGE
ACQUISITION
KNOWLEDGE
SHARING
KNOWLEDGE
USE
Examples in practice
Hiring skilled staff Posting case studies on intranet
Giving staff freedom to try out ideas
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Organizational Memory
The storage and preservation of intellectual capital
Retain intellectual capital by:
• Keeping knowledgeable employees
• Transferring knowledge to others
• Transferring human capital to structural capital
Successful companies also unlearn
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High Performance Work Practices (HPWPs)
HPWPs are internal systems and structures
that are associated with successful companies
1. Employees are competitive advantage
2. Value of employees increased through specific
practices.
3. Maximum benefit when org practices are bundled
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High Performance Work Practices
No consensus, but HPWPs include:
• Employee involvement and job autonomy (and their combination as self-directed teams).
• Employee competence (training, selection, etc.).
• Performance-based rewards
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Stakeholder Perspective
Stakeholders: any entity who affects or is affected by the firm’s objectives and actions
Personalizes the open systems perspective
Challenges with stakeholder perspective:
• Stakeholders have conflicting interests
• Firms have limited resources
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Stakeholder Perspective
Lockheed Martin is rated by
engineering students as an
“ideal” employer
• Pays attention to its many
stakeholders
• Relies on values and ethics to
guide decisions
• Strong emphasis on corporate
social responsibility (e.g. photo
shows clean-up after hurricane
Katrina)
Lockheed Martin
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Stakeholders: Values and Ethics
Values and ethics prioritize
stakeholder interests
Values
• Stable, evaluative beliefs, guide
preferences for outcomes or
courses of action in various
situations
Ethics
• Moral principles/values,
determine whether actions are
right/wrong and outcomes are
good or bad
Lockheed Martin
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Stakeholders and CSR
Stakeholder perspective
includes corporate social
responsibility (CSR)
• Benefit society and environment
beyond the firm’s immediate
financial interests or legal
obligations
• Organization’s contract with
society
Triple bottom line
• Economy, society, environment
Lockheed Martin
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Types of Individual Behavior
Organizational
Citizenship
Contextual performance – cooperation
and helpfulness beyond required job
duties
Task PerformanceGoal-directed behaviors under
person’s control
more
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Types of Individual Behavior (con’t)
Maintaining Work
AttendanceAttending work at required times
Joining/staying with
the Organization
Agreeing to employment relationship;
remaining in that relationship
Counterproductive
Work Behaviors
Voluntary behaviors that potentially
harm the organization
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Globalization
Economic, social, and cultural connectivity with people in other parts of the world
Effects of globalization on organizations
• New structures
• Increasing diversity
• Increasing competitive pressures, intensification
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Increasing Workforce Diversity
Surface-level diversity
• Observable demographic and other overt differences in people (e.g. race, ethnicity, gender, age)
Deep-level diversity
• Differences in psychological characteristics (e.g. personalities, beliefs, values, and attitudes)
• Example: Differences across age cohorts (e.g. Gen-Y)
Implications
• Leveraging the diversity advantage
• Also diversity challenges (e.g. teams, conflict)
• Ethical imperative of diversity
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Employment Relationships
Work/life balance • Minimizing conflict between work and nonwork
demands number one indicator of career success
Virtual work• Using information technology to perform one’s job away
from the traditional physical workplace
• Telework – issues of replacing face time, clarifying employment expectations
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Organizational Behavior Anchors
Multidisciplinary anchor
• Many OB concepts adopted from other disciplines
• OB develops its own theories, but scans other fields
Systematic research anchor
• OB researchers rely on scientific method
• Should apply evidence-based management, but…
- Bombarded with theories and models
- Challenge translating general theories to specific situations
- Swayed by consultant marketing
- Perceptual biases -- ignoring evidence contrary to our beliefs
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Organizational Behavior Anchors (con’t)
Contingency anchor• A particular action may have different consequences in
different situations
• Need to diagnose the situation and select best strategy under those conditions
Multiple levels of analysis anchor• Individual, team, organizational level of analysis
• OB topics usually relevant at all three levels of analysis
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Introduction tothe Field ofOrganizational Behavior
McGraw-Hill/Irwin
McShane/Von Glinow OB
5e
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights
reserved.
1-27
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