Chapter 1

Learning About Organizational Behavior

 What is Organizational Behavior?

 Seven Foundation Competencies
 Managing Self
 Managing Communication
 Managing Diversity
 Managing Ethics
 Managing Across Cultures
 Managing Teams
 Managing Change
 Organizations as Open Systems

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 What is Organizational Behavior?

 Definition: The study of human behavior,

attitudes, and performance in organizations.
 Value of OB: Helps people attain the
competencies needed to become effective
employees, team leaders/members, or managers
 Competency = an interrelated set of abilities,
behaviors, attitudes, and knowledge needed by an
individual to be effective in most professional and
managerial positions
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 Definition of the
Managing Self Competency

 Involves the ability to assess your own strengths

and weaknesses, set and pursue professional and
personal goals, balance work and personal life, and
engage in new learning (including new or modified
skills, behaviors, and attitudes)

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 Core Abilities of the
Managing Self Competency

 Understand the personality and attitudes of yourself and

others
 Perceive, appraise, and interpret accurately yourself, others,
and the immediate environment
 Understand and act on your own and others work-related
motivations and emotions
 Assess and establish developmental, personal/life-related,
and work-related goals
 Take responsibility for managing yourself and your career

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 Career Development*

 A career is a sequence of work-related positions

occupied by a person during a lifetime.
 Career development involves making decisions
about an occupation and engaging in activities to
attain career goals.
 A career plan is an individual’s choice of
occupation, organization, and career path.

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 Five Aspects of a Career*

 Career success or failure is best determined by the

individual, in terms of his/her personal goal achievement
 No absolute career evaluation standards exist
 Examine a career subjectively (e.g., values and personality
fit) and objectively (e.g., job choices, competencies
needed)
 Make decisions about occupation and pursue activities to
attain career goals throughout your lifetime
 Consider cultural factors as they impact performance and
career opportunities
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 Definition of the
Managing Communication Competency

 Involves the ability to use all the modes of

transmitting, understanding, and receiving ideas,
thoughts, and feelings, (verbal, listening,
nonverbal, written, electronic, etc.) for accurately
transferring and exchanging information and
emotions

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 Core Abilities of the
Managing Communication Competency

 Convey information, ideas, and emotions so they are

received as intended
 Provide constructive feedback
 Engage in active listening
 Use and interpret nonverbal communication effectively
 Engage in effective verbal communication
 Engage in effective written communication
 Effectively use electronic communication resources

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 Definition of the
Managing Diversity Competency

 Involves the ability to value unique individual and

group characteristics, embrace such characteristics
as potential sources of organizational strength, and
appreciate the uniqueness of each individual

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 Core Abilities of the
Managing Diversity Competency

 Foster an environment of inclusion for all

 Learn from others with different characteristics,
experiences, perspectives, and backgrounds
 Embrace and support diversity
 Work with others because of their talents and
contributions, rather than personal attributes
 Provide leadership in addressing diversity-based
conflicts
 Apply diversity laws, regulations, and organizational
policies related to your position

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 Selected Categories of Diversity*
 Primary Categories: Genetic characteristics that affect a
persons self-image and socialization, appear to be unlearned and are
difficult to modify
 Age, race, ethnicity, gender, physical abilities and
qualities, and sexual and affectional orientation
 Secondary categories: Learned characteristics that a person
acquires and modifies throughout life
 Education, work experience, income, marital status,
religious beliefs, geographic location, parental status,
behavioral style

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 Definition of the
Managing Ethics Competency

 Involves the ability to incorporate values and

principles that distinguish right from wrong in
making decisions and choosing behaviors

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 Ethics

 Definition: Values and principles that distinguish right

from wrong. Ethics are often based upon laws,
organizational policies, social norms, family, religion,
and/or personal needs, and may be subject to differing
interpretations with problems in proving “truth”
 Ethical Dilemma*: A situation in which an individual or
team must make a decision that involves multiple values.

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 Core Abilities of the
Managing Ethics Competency

 Identify and describe the principles of ethical decision

making and behavior
 Assess the importance of ethical issues in actions
 Apply laws, regulations, and organizational rules in
making decisions and taking action
 Demonstrate dignity and respect for others
 Demonstrate honest and open communication limited
only by legal, privacy, and competitive considerations

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 Definition of the
Managing Across Cultures Competency

 Involves the ability to recognize and embrace

similarities and differences among nations and
cultures and then approach key organizational and
strategic issues with an open and curious mind
 Culture = the dominant pattern of living, thinking, and
believing that is developed and transmitted by people,
consciously or unconsciously, to subsequent generations
 Cultural values = those consciously and
subconsciously deeply held beliefs that specify general
preferences, behaviors, and define what is right and
wrong.
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 Core Abilities of the
Managing Across Cultures Competency

 Understand, appreciate, and use cultural factors that

can affect behavior
 Appreciate the influence of work-related values on
decisions, preferences, and practices
 Understand and motivate employees with different
values and attitudes
 Communicate in the local language
 Deal effectively with extreme conditions in foreign
countries
 Utilize a global mindset (use a worldwide perspective to
constantly assess threats or opportunities)
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 Individualism*
as a Work-Related Value

 Individualism = the tendency of people to look after

themselves and their immediate family, which implies a
loosely integrated society
 In cultures that emphasize individualism, people view
themselves as independent, unique, and special; value
individual goals over group goals; value personal identity,
personal achievement, pleasure, and competition; accept
interpersonal confrontation; and are less likely to conform to
other’s expectations
 Such cultures include the United States, Australia, New
Zealand and the United Kingdom
 Example: “Stand on your own two feet!”
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 Collectivism*
as a Work-Related Value

 Collectivism = the tendency of people to emphasize their

belonging to groups and to look after each other in exchange
for loyalty
 Cultures that emphasize collectivism are characterized by a
tight social framework, concern for the common welfare,
emotional dependence of individuals on larger social units, a
sense of belonging, a desire for harmony, with group goals
being viewed as more important than individual goals, and a
concern for face-saving
 Such cultures include Japan, China, Venezuela, and Indonesia
 Example: “The nail that sticks up gets hammered down!”

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 Definition of the
Managing Teams Competency

 Involves the ability to develop, support, facilitate,

and lead groups to achieve organizational goals

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 Core Abilities of the
Managing Teams Competency

 Determine when and how to use teams

 Set clear performance goals directly or participatively
 Define responsibilities and tasks directly or
participatively
 Show accountability for goal achievement
 Use appropriate decision-making methods
 Effectively manage conflicts
 Assess performance and take corrective action as needed

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 Definition of the
Managing Change Competency

 Involves the ability to recognize and implement

needed adaptations or entirely new transformations
in the people, tasks, strategies, structures, or
technologies in a person’s area of responsibility

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 Core Abilities of the
Managing Change Competency

 Apply the other six competencies in pursuit of needed

changes
 Provide leadership in planned change
 Diagnose pressures for and resistance to change
 Use the systems model and relevant processes to
facilitate change
 Seek out, learn, share, and apply new knowledge in the
pursuit of constant improvement

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 Organizations as Open Systems*

 Note that organizations are “open systems,” such that their

long term effectiveness is determined by their ability to
anticipate, manage, and respond to changes in their
environment, with such changes resulting from external forces
and/or stakeholders
 External forces include the labor force, the natural
environment, the economy, and different cultures, while
stakeholders include shareholders, customers, competitors,
suppliers, creditors, governmental agencies and their
regulations
 Note the impact of these environmental influences on individual,
interpersonal, team, and organizational processes; organizations that do
not effectively adapt to environmental change will fail

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