OB_ch01

Introduction to Organizational Behavior

Chapter One

Learning Objectives DEFINE organizational behavior (OB)

IDENTIFY the major behavioral science disciplines that contribute to OB.

IDENTIFY the challenges and opportunities managers have in applying OB concepts.

IDENTIFY the three levels of analysis in OB.

DESCRIBE the two major forms of workforce diversity, primary and secondary diversity categories.

IDENTIFY the six elements of an organizations structure.

DESCRIBE the common organizational designs.

Three Good Reasons Why You Should Care About . . . Organizational BehaviorOrganizational Behavior1. Understanding the dynamics of behavior in

organizations is essential to achieving personal success as a manager, regardless of your area of specialization.

2. Principles of organizational behavior are involved in making people both productive and happy on their jobs.

3. People can make or break their organizations, requiring successful companies to be able to address a wide variety of OB issues.

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Organizational Behavior (OB)

Definition:A field of study that investigates the impact that Individuals, Groups, and Structure have on behaviour within Organizations for the purpose of applying such knowledge towards improving an Organizations Effectiveness. ( Robbin, S.P.)

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Focal Points of OB

Jobs Work Absenteeism Employment turnover Productivity Human performance Management

Contributing Disciplines to the OB Field

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Micro:The Individual

Macro:Groups &

Organizations

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Challenges and Opportunities for OB Responding to economic pressures Responding to globalization Managing workplace diversity Improving customer service Improving people skills Stimulating innovation and change Coping with temporariness Working in networked organizations Helping employees with work-life conflicts Improving ethical behavior

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Responding to Economic Pressures

Effective management is especially important during tough economic times

Employees look to their managers to provide security during the instability of a recession

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Responding to Globalization

Increased foreign assignments Differing needs and aspirations in

workforce Working with people from

different cultures Domestic motivational techniques

and managerial styles may not work

Overseeing movement of jobs to countries with low-cost labor

Managing Workforce Diversity

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Workforce diversity: organizations are becoming a more heterogeneous mix of people in terms of gender, age, race, ethnicity, and sexual orientation

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Diversity Categories

Gender Race National origin Age Disability Domestic partners Religion

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Improving Customer Service and People Skills

The majority of employees in developed nations work in service jobs They must know

how to please their customers

People skills are essential to success in todays organizations

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Stimulating Innovation and Change

Flexibility Quality

Improvement Staying

Competitive

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Coping with Temporariness Jobs are constantly changing Skills need to be updated for

workers to stay on target Workers need to be able to deal

with change Employees need to be able to

cope with flexibility, spontaneity and unpredictability

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Working in Networked Organizations

Managers must adapt their skills and communication styles to succeed in an online environment

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Helping Employees Handle Work-Life Conflict

The line between work and non work has blurred and managers are increasingly dealing with conflicts that arise between work and life away from work

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Improving Ethical Behavior Managers facing ethical dilemmas or

ethical choices are required to identify right and wrong conduct This can be difficult on a global economy

where different cultures approach decisions from different perspectives

Companies promoting strong ethical missions: Encourage employees to behave with

integrity Provide strong leadership that influence

employee decisions to behave ethically

Three Levels of OB Analysis

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Implications for Managers

OB helps with: Insights to improve people skills Valuing of workforce diversity Empowering people and creating a positive

work environment Dealing with change in the workplace Coping in a world of temporariness Creating an ethically healthy work environment

The Nature of People

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Primary Diversity Categories Secondary Diversity Categories

AgeRaceEthnicityGenderPhysical Abilities and QualitiesSexual and Affectional Orientation

EducationWorking ExperienceIncomeMarital StatusReligious BeliefsGeographic locationParental IssuesPersonal Styles (Personality)other

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Age

Relationship between age and performance is important because Performance may decrease

with age The workforce is aging Mandatory retirement is

outlawed

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Gender

Do women perform as well on the job as men?

Few, if any, important differences Perception that women in male

domains are less likeable, more hostile, and less desirable as supervisors

Working mothers prefer part-time, flexible work schedules and telecommuting

Women more likely to turnover and be absent

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Race and Ethnicity

The biological groupings within humankind, representing superficial physical differences.

Identification with a Cultural group that has shared traditions and heritage. Some identify strongly while not to others.

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Physical Abilities and Qualities

Variety of characteristics including body type, physical size, facial features, specific abilities or disabilities, and visible and invisible physical and mental talents or limitations.

Disabilities Act requires employers to make reasonable accommodations for people with physical or mental disabilities

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Other Biographical Characteristics

Sexual Orientation Feelings of sexual attraction towards members of the same or opposite gender


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Secondary Diversity Categories:

1. Education:The individuals formal and informal learning and training

2. Work Experience:The employment and volunteer positions the person has held and the variety of past organizations

3. Income:The economic conditions which the person grew up and current economic status


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4. Marital Status:The persons situation as never married, married, widowed or divorce

5. Religious Beliefs :Fundamental teachings received about deities and values acquired from formal or informal practices

6. Geographic Location : The location (s) the person was raised or spent a significant part of life, including types of communities and urban areas versus rural areas.


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7. Parental Status:Having or not having children and the circumstances which the child are raised, either single or two-adult parenting.

8. Personal Style:Tendency of the Individual to think, feel or act in a particular way.

All categories of diversity contribute to the formation of a persons life experiences, perspectives, and skill sets.

An effective organization can learn to recognize, understand, appreciate, respect and utilize these aspects of a person in the pursuit of its mission and objectives.

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The Nature of Organization The definition of organization:

Is a group of two or more people working together to achieve a common goal.

Zainal Ariffin Ahmad et,al

Different types of organization namely business, government agencies, statutory bodies, NGO, associations, clubs and many types of formalized groups.

Fundamental of An Organization

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What Is Organization Structure? It defines how job tasks are formally divided,

grouped, and coordinated

Key elements to be addressed Work specialization Departmentalization Chain of command Span of control Centralization Decentralization Formalization

Element 1: Work Specialization

Work specialization: Describes the degree to which activities in the organization are subdivided into separate jobs Also known as division of labor

Benefits Greater efficiency and lower costs

Costs Human costs when carried too far Job enlargement as a solution

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Element 2: Departmentalization

Departmentalization: Basis by which jobs are grouped together so that common tasks can be coordinated

Common bases: Function Product Geography Process Customer

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Element 3: Chain of Command

Chain of command: Unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom Authority: positional rights Unity of command principle: one boss Fewer organizations find this is relevant

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Element 4: Span of Control

Span of control: The number of employees a manager is expected to effectively and efficiently direct

Determines the number of levels and managers an organization has Trend is toward wider spans of control Wider span depends on knowledgeable employees Affects speed of communication and decision making

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Contrasting Spans of Control

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Element 5: Centralization and Decentralization

Centralization : Degree to which decision making is concentrated at a single point in the organization

Only includes formal authority: positional rights Highly centralized when top managers make all

the decisions Decentralized when front line employees and

supervisors make decisions Trend is toward increased decentralization

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Element 6: Formalization Formalization: Degree

to which jobs within the organization are standardized Formal - minimum discretion

over what is to be done, when it is done, and how

Informal - freedom to act is necessary

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Common Organizational Designs

Simple structure Bureaucracy Matrix structure

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Simple Structure

Low degree of departmentalization Wide spans of control Authority centralized in a single person Little formalization Difficult to maintain in anything other than small

organizations 1-39

Bureaucracy Highly routine operating tasks achieved

through specialization

Formal rules and regulations Centralized authority Narrow spans of control Tasks grouped by functional

departments Decision making follows the chain of

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Matrix Structure Combines two forms of departmentalization Functional Product

Dual chain of command Advantages Facilitates coordination and efficient allocation of specialists

Disadvantages Possible confusion, fosters power struggles,

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New Design Options: Virtual Virtual: A small core organization

that outsources its major business functions Highly centralized with little or

no departmentalization Provides maximum flexibility

while concentrating on what the organization does best

Reduced control over key parts of the business

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The Boundaryless Organization

Boundaryless organization: Eliminates the chain of

command Has limitless spans of control Replaces departments with

empowered teams Breaks down geographical

barriers

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Two Models of Organizational Design

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Forces Influencing Structure Strategy

Innovation introduce new offerings - organic Cost-minimization cost control - mechanistic Imitation minimal risk and maximum profit - both

Organization Size Bigger becomes mechanistic

Technology Routine equals mechanistic, non-routine is organic

Environment Dynamic environments lead to organic structures

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Organizational Designs and Employee Behavior Cannot generalize any link between structure and

performance Too much individual variance Consider employee preferences for Work specialization Span of control Centralization

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Global Implications National culture influences

organizational structure High power distance cultures accept

mechanistic structures

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Implications for Managers Structural relationships impact attitude and

behavior Structure constrains employee behaviors

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Keep in Mind As tasks become more complex and required skills

more diverse, more use of cross-functional teams Simple structures are easy to create but difficult to

grow External boundaries can be reduced through

globalization, strategic alliances, customer-organizational links, and telecommuting

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Chapter OneLearning ObjectivesThree Good Reasons Why You Should Care About . . . Organizational BehaviorOrganizational Behavior (OB)Focal Points of OBContributing Disciplines to the OB FieldChallenges and Opportunities for OBResponding to Economic PressuresResponding to GlobalizationManaging Workforce DiversityDiversity CategoriesImproving Customer Service and People SkillsStimulating Innovation and ChangeCoping with TemporarinessWorking in Networked OrganizationsHelping Employees Handle Work-Life ConflictImproving Ethical BehaviorThree Levels of OB AnalysisImplications for ManagersThe Nature of PeopleAgeGenderRace and EthnicityPhysical Abilities and QualitiesOther Biographical CharacteristicsSlide 26Slide 27Slide 28The Nature of Organization Fundamental of An OrganizationElement 1: Work SpecializationElement 2: DepartmentalizationElement 3: Chain of CommandElement 4: Span of ControlContrasting Spans of ControlElement 5: Centralization and DecentralizationElement 6: FormalizationCommon Organizational DesignsSimple StructureBureaucracyMatrix StructureNew Design Options: Virtual The Boundaryless OrganizationTwo Models of Organizational DesignForces Influencing StructureOrganizational Designs and Employee BehaviorGlobal ImplicationsSlide 48Keep in Mind

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