Organizational Behavior Chapter01

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<p>McShaneVon Glinow: Organizational Behavior, Third Edition</p> <p>I. Introduction</p> <p>1. Introduction to the Field of Organizational Behavior</p> <p> The McGrawHill Companies, 2004</p> <p>chapter 1chapter 2 chapter 3 chapter 4 chapter 5 chapter 6 chapter 7 Dene organizational behavior and give three reasons</p> <p>Introduction to the Field of Organizational Behavior</p> <p>Learning ObjectivesAfter reading this chapter, you should be able to: for studying this eld of inquiry. Discuss how globalization inuences organizational</p> <p>chapter 8 chapter 9 chapter 10 chapter 11 chapter 12 chapter 13 chapter 14 chapter 15 chapter 16 chapter 17</p> <p>behavior. Summarize the apparent benets and challenges of</p> <p>telecommuting. Identify changes in the workforce in recent years. Describe employability and contingent work. Explain why values have gained importance in</p> <p>organizations. Dene corporate social responsibility and argue for or</p> <p>against its application in organizations. Identify the ve anchors on which organizational</p> <p>behavior is based. Diagram an organization from an open systems view. Dene knowledge management and intellectual</p> <p>capital. Identify specic ways that organizations acquire and</p> <p>share knowledge.</p> <p>McShaneVon Glinow: Organizational Behavior, Third Edition</p> <p>I. Introduction</p> <p>1. Introduction to the Field of Organizational Behavior</p> <p> The McGrawHill Companies, 2004</p> <p>D</p> <p>o you Google? So many people use the ubiquitous search engine that its name has become part of our Internet language. In fact, Googles 10,000 servers process more than 200 million search queries in 90 languages every day, over</p> <p>half of them from users outside the United States. Googles success is even more amazing because this protable company of 1,000 employees began just a few years ago (1998) in the dorm rooms of Stanford University graduate students Larry Page and Sergey Brin (shown in photo). Google is a living laboratory where continuous experimentation and customer feedback are part of the knowledge creation process. Google engineers are expected to devote a quarter of their time to new ideas. Ten full-time staff scan the constant ow of user e-mails and redirect this vital feedback throughout the company. When Google scientist Krishna</p> <p>Bharat created a prototype of a dynamic news service, a beta version was publicly released just a few months later. With extensive public feedback and further development, Google News has become a runaway hit with several versions around the planet. A public trial helps you go fast, explains Marissa Mayer, an engineer who worked on the Google News project. If it works, it builds internal passion and fervor. It gets people thinking about the problem. Googles focus on employees is almost as intense as its focus on technology. The Googleplex (Googles headquarters) is a unique oasis, complete with Lava Lamps, rubber exercise balls, and free gourmet meals. The company boasts worklife balance, generous health benets, and a team-based environment where employees work in high density clusters remarkably reective of our server setup, with three or four staffers sharing spaces with couches and dogs. Every Friday, employees gather to hear about the companys performance during the previous week. We want everyone to know exactly how the companys doing, exactly where we stand in relation to our goals, says Craig Silverstein, Googles director of technology and rst employee hired after Page and Brin.Google founders Larry Page and Sergey Brin have leveraged the power of organizational behavior to create the worlds leading Internet search engine as well as one of the best places to work.</p> <p>McShaneVon Glinow: Organizational Behavior, Third Edition</p> <p>I. Introduction</p> <p>1. Introduction to the Field of Organizational Behavior</p> <p> The McGrawHill Companies, 2004</p> <p>Google carefully selects new recruits. We are denitely growing slower than we would otherwise because of our stringent hiring standards, Silverstein admits. The result is a geeky culture that reects the beliefs of its founders. These are people who think they are creating something thats the best in the world, says Peter Norvig, a Google engineering director. And that product is changing peoples lives.1 </p> <p>Google has become a powerful force on the Internet, but its real power comes from the companys effective application of organizational behavior theories and concepts. More than ever, organizations are relying on these ideas and practices to remain competitive. For example, Google employees are driven by a strong corporate culture derived from company founders Larry Page and Sergey Brin. The company encourages creativity and knowledge sharing. It motivates employees through perks and exciting work opportunities, and it engages in careful personjob matching. This book is about people working in organizations. Its main objective is to help you understand behavior in organizations and to work more effectively in organizational settings. Organizational behavior knowledge is not only for managers and leaders. It is relevant and useful to anyone who works in and around organizations. In this chapter, we introduce you to the eld of organizational behavior, outline the main reasons why you should know more about it, highlight some of the organizational trends inuencing the study of organizational behavior, describe the fundamental perspectives behind the study of organizations, and introduce the concept that organizations are knowledge and learning systems.</p> <p>The Field of Organizational Behaviororganizational behavior (OB) The study of what people think, feel, and do in and around organizations.</p> <p>Organizational behavior (OB) is the study of what people think, feel, and do in and around organizations. OB scholars systematically study individual, team, and structural characteristics that inuence behavior within organizations. By saying that organizational behavior is a eld of study, we mean that scholars have been accumulating a distinct knowledge about behavior within organizationsa knowledge base that is the foundation of this book. By most estimates, OB emerged as a distinct eld around the 1940s.2 However, its origins can be traced much further back in time. The Greek philosopher Plato wrote about the essence of leadership. Aristotle, another respected philosopher, addressed the topic of persuasive communication. The writings of Chinese philosopher Confucius in 500 B.C. are beginning to inuence contemporary thinking about ethics and leadership. In 1776, Adam Smith advocated a new form of organizational structure based on the division of labor. One hundred years later, German sociologist Max Weber wrote about rational organizations and initiated discussion of charismatic leadership. Soon after, Frederick Winslow Taylor introduced the systematic use of goal setting and rewards to motivate employees. In the 1920s, Elton Mayo and his colleagues conducted productivity studies at Western Electrics Hawthorne plant in the United States. They reported that an informal organizationemployees casually interacting with othersoperates alongside the formal organization. OB</p> <p>4</p> <p>McShaneVon Glinow: Organizational Behavior, Third Edition</p> <p>I. Introduction</p> <p>1. Introduction to the Field of Organizational Behavior</p> <p> The McGrawHill Companies, 2004</p> <p>CHAPTER</p> <p>1</p> <p>Introduction to the Field of Organizational Behavior</p> <p>5</p> <p>has been around for a long time; it just wasnt organized into a unied discipline until after World War II.</p> <p>What Are Organizations?Organizations have existed for as long as people have worked together. Massive temples dating back to 3500 B.C. were constructed through the organized actions of many people. Craftspeople and merchants in ancient Rome formed guilds, complete with elected managers. And more than 1,000 years ago, Chinese factories were producing 125,000 tons of iron a year.3 We have equally impressive examples of contemporary organizations, ranging from Wal-Mart, the worlds largest and most successful retailer, to Google, the worlds leading search engine. A company is one of humanitys most amazing inventions, says Steven Jobs, CEO of Apple Computer and Pixar Animation Studios. Its totally abstract. Sure, you have to build something with bricks and mortar to put the people in, but basically a company is this abstract construct weve invented, and its incredibly powerful.4</p> <p>By any standard, Wal-Mart is an awesome phenomenon. The worlds largest retailer generates annual global sales exceeding $240 billion and employs nearly 1.5 million people from Minneapolis to Mexico City (shown in photo). According to one consultants report, the companys persistent drive for efciency accounts for one-eighth of U.S. productivity growth in recent years. Wal-Mart has had its share of discrimination lawsuits and complaints about unpaid work hours. Still, the retailer that grew up and remains headquartered in Bentonville, Arkansas, is also the most admired company in America. How much bigger can Wal-Mart get? Plenty, according to CEO Lee Scott. Could we be two times larger? asks Scott. Sure. Could we be three times larger? I think so.5 In your opinion, what organizational behavior concepts described in this book would have the greatest inuence on the success of Wal-Mart and other mammoth organizations?</p> <p>McShaneVon Glinow: Organizational Behavior, Third Edition</p> <p>I. Introduction</p> <p>1. Introduction to the Field of Organizational Behavior</p> <p> The McGrawHill Companies, 2004</p> <p>6</p> <p>PA R T O N E</p> <p>Introduction</p> <p>organizations Groups of people who work interdependently toward some purpose.</p> <p>So, what are these powerful constructs that we call organizations? They are groups of people who work interdependently toward some purpose.6 Organizations are not buildings or other physical structures. Rather, they consist of people who interact with each other to achieve a set of goals. Employees have structured patterns of interaction, meaning that they expect each other to complete certain tasks in a coordinated wayin an organized way. Organizations have a purpose, whether its producing oil from oil sands or selling books on the Internet. Some scholars and students alike are skeptical about the relevance of goals in a denition of organizations.7 They argue that an organizations mission statement may be different from its true goals. Also, they question the assumption that all organizational members believe in the same goals. These points may be true, but imagine an organization without goals: it would consist of a mass of people wandering around aimlessly without any sense of direction. Overall, organizations likely have a collective sense of purpose, even though this purpose is not fully understood or agreed upon.</p> <p>Why Study Organizational Behavior?Organizational behavior seems to get more respect from people who have been in the workforce a while than from students who are just beginning their careers. Many of us specialize in accounting, marketing, information systems, and other elds with corresponding job titles, so its understandable that students focus on these career paths. After all, who ever heard of a career path leading to a vice-president of OB or a chief OB ofcer? Even if organizational behavior doesnt have its own job title, most people eventually come to realize that this eld is a potential gold mine of valuable knowledge. The fact is, everyone in the workforce needs to understand, predict, and inuence behavior (both our own and that of others) in organizational settings (see Exhibit 1.1). Marketing students learn marketing concepts and computer science students learn about circuitry and software code. But everyone benets from organizational behavior knowledge to address the people issues when trying to apply marketing, computer science, and other ideas.E X H I B I T 1.1</p> <p>Reasons for studying organizational behavior</p> <p>Understand organizational events</p> <p>Organizational behavior research</p> <p>Influence organizational events</p> <p>Predict organizational events</p> <p>McShaneVon Glinow: Organizational Behavior, Third Edition</p> <p>I. Introduction</p> <p>1. Introduction to the Field of Organizational Behavior</p> <p> The McGrawHill Companies, 2004</p> <p>CHAPTER</p> <p>1</p> <p>Introduction to the Field of Organizational Behavior</p> <p>7</p> <p>Understanding, Predicting, and Inuencing Each one of us has an inherent need to understand and predict the world in which we live.8 Much of our time is spent working in or around organizations, so the concepts offered in this and other OB textbooks will help you to partially satisfy that innate drive. The knowledge presented in this book also gives you the opportunity to question and rebuild your personal theories that have developed through observation and experience. Look at the It All Makes Sense self-assessment at the end of this chapter. How many of the statements are true? Even if you correctly answer most of them, the information you will read in this book can further develop and crystallize your personal beliefs so that they more accurately model and predict organizational behavior. Its nice to understand and predict organizational events, but most of us want to inuence the environment in which we live. Whether you are a marketing specialist or a computer engineer, OB knowledge will help you to inuence organizational events by understanding and applying concepts in motivation, communication, conict, team dynamics, and other topics. Indeed, some scholars emphasize that the usefulness of OB research depends on more than just understanding and predicting behavior. It also depends on the degree to which practitioners can interpret research results and apply them.9 This book takes the view that organizational behavior knowledge is for everyonenot just managers. As organizations reduce layers of management and delegate more responsibilities to the rest of us, the concepts described in this book will become increasingly important for anyone who works in and around organizations. We all need to understand organizational behavior and to master the practices that inuence organizational events. Thats why you wont nd very much emphasis here on management. Yes, organizations will continue to have managers (adult supervision, as young employees cynically call them), but their roles have changed. More important, the rest of us are now expected to manage ourselves. As one forward-thinking organizational behavior scholar wrote many years ago: Everyone is a manager.10 OB and the Bottom Line So far, our answer to the question Why study OB? has focused on how OB knowledge benets you as an individual. But organizational behavior knowledge is also important for the organizations nancial health. A recent study of more than 700 rms calculated that companies applying performance-based rewards, employee communication, worklife balance, and other organizational behavior ideas have three times the level of nancial success as companies without these OB practices. Moreover, the study p...</p>