Organizational Behavior Human Behavior at Work Thirteenth Edition

McGraw-Hill/Irwin Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter One

The Dynamics of People and Organizations

Chapter Objectives
To understand: The meaning of organizational behavior The key goals and forces with which it is concerned Basic concepts of organizational behavior Major approaches taken in this book How organizational behavior affects organizational performance Limitations of organizational behavior

1-3

Introduction
Basic Concepts Organizations are complex Human behavior in organizations is sometimes unpredictable Human behavior can be partially understood There are no perfect solutions to organizational problems Organizational behavior is needed

1-4

Understanding Organizational Behavior

Organizational behavior The systematic study and careful application of knowledge about how people act within organizations Strives to find ways in which people can act more effectively Is an applied science Provides a useful set of analysis tools

1-5

Understanding Organizational Behavior

Goals of OB Describe Understand Predict, and Control human behavior at work Organizational behavior is a human tool for human benefit It is not designed to limit freedoms or take away rights

1-6

Understanding Organizational Behavior

Primary Forces People Structure Technology Environment

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Positive Characteristics of the OB Field

Practice Theory Research

Interdisciplinary nature Emerging base of research knowledge, models, and conceptual frameworks

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Positive Characteristics of the OB Field

Three Keys to Success Theories
Offer explanation of how and why people think, feel, and act as they do
Practical

Research
Gathering and interpreting relevant evidence Ongoing process

Practice
Acceptance & application by practicing managers
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Fundamental Concepts
The Nature of People Individual differences Perception A whole person Motivated behavior Desire for involvement Value of the person

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Fundamental Concepts
The Nature of Organizations Social systems Mutual interest Ethics

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Fundamental Concepts
Mutual Interest Provides a Subordinate Goal

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Basic Approaches of This Book

Organizational behavior seeks to integrate People Structure Technology Environment

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Basic Approaches of This Book

Figure 1.4
Human Resources Employee growth and development are (Supportive) encouraged and supported

Contingency
Results-Oriented

Different managerial behaviors are required by different environments

Outcomes of organizational behavior programs are assessed in terms of their effectiveness All parts of an organization interact in a complex relationship

Systems

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Human Resources Approach

A supportive approach Helps employees become better, more responsible people Creates a climate in which employees can contribute to the limit of their improved abilities Leads to operating efficiencies Results in work satisfaction Produces better results

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Contingency Approach
Few across-the-board concepts apply in all instances Different situations require different practices The key question is when to use a specific approach Encourages analysis of each situation prior to action
Discouraging habitual practice based on universal assumptions about people

Helps managers use all the current appropriate knowledge about people in the organization
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Results-Oriented Approach
A dominant goal for many organizations is to be productive A ratio that compares output with input, often against a predetermined standard Productivity is measured in terms of economics, but human and social inputs & outputs are also important

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Results-Oriented Approach: OB Equations

Knowledge x Skill = Ability Attitude x Situation = Motivation Ability x Motivation = Potential performance Potential performance x Resources x Opportunity = Organizational results

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Systems Approach
1. There are many variables within a system 2. The parts of a system are interdependent 3. There are many subsystems 4. Systems require inputs, a process, and outputs

5. The input-process-output mechanism is cyclical and self-sustaining

6. Systems produce positive and negative results

7. Systems produce intended and unintended consequences

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Systems Approach
8. Consequences may be both short-term & longterm

9. Multiple ways can be used to achieve a desired objective

10. Systems can be understood, changed and managed if focus remains on problems causes

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Systems Approach
A systems approach requires Holistic organizational behavior Cost-benefit analysis
Figure 1.6
Potential Costs Proposed OB Action Potential Benefits Compare Decide

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Limitations of Organizational Behavior

Behavioral bias A narrow viewpoints that emphasizes satisfying employee experiences while overlooking the broader system Can harm both the employees and organization The law of diminishing returns Increases of a desirable practice produced declining returns eventually zero return and then negative returns! For any situation there is an optimum amount of a desirable practice
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Limitations of Organizational Behavior

Unethical manipulation of people Knowledge & techniques of OB may be used for negative as well as positive consequences Ethical Leadership Principles
Social responsibility Open communication Cost-benefit analysis

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Continuing Challenges
Seeking Quick Fixes Embracing the newest fad Addressing symptoms, not underlying problems Fragmented efforts Varying Environments Shrinking demand Scarce resources More intense competition Organizational stagnation or decline Increased stress and conflict
1-24

Continuing Challenges
Definitional Confusion OB has experienced some difficulty emerging as a clearly defined field Lack of consensus regarding
Unit of analysis Needs Focus Contributions to date

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