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The Study of Organizations
I. The Importance of Organizations
 Organizations
exists because they
accomplish things that cannot be
achieved by individuals.
Organizations are GOAL-DIRECTED

They pursue goals and objectives that can be
achieved more efficiently by the coordinated
actions of groups and individuals.
Why study organizations

It is where we spend most of our lives
Schools, work, church, fraternities,
etc.
– All are forms of organizations
Importance of Studying
Organizational Behavior

Organizational Behavior is the study of human
behavior, attitudes, and performance within an
organizational setting; drawing on theory, methods, and
principles from such areas as psychology, sociology,
and cultural anthropology to learn about capacities,
and actions while working in groups and within the total
organization analyzing the external environment’s
effect on the organization and its human resources,
missions, objectives, and strategies.
A Framework for Studying
Organizations


1. Based on the Situation or Context-Contingency Approach
2. Based on Structure and Process
Contingency Approach
(Situational) to management.
–
The process of managing is based on the situation.
There is no one best way to manage.

A good manager diagnosis the characteristics of the
individuals and groups involved, the organizational
structure, and his/her own leadership style before acting on
a situation.
Structure and Process
–
–
1. Structure - formal pattern of how its people and
jobs are performed. Usually depicted by an
organizational chart.
2. Process - activities that “give life” to the
organizational chart.

i.e. Communication, decision making, performance
evaluation, etc.
The Individual
–
1.
2.
3.
4.
Understanding the Individual is the foundation
of Organizational Behavior.
Individual Characteristics
 What makes people individuals with their
own values, attitudes, etc.
Individual Motivation
Rewards and Punishment
Stress - State of imbalance based on such
things as role conflict and role overload.
Groups and Interpersonal Influence
1.
2.
3.
4.
5.
Group Behavior (Intra and Inter)
1. Politics and Conflict Resolution
Group Decision Making
Teams
Communication
Leadership
The Structure of Organizations
–
–
Job Design - The process by which managers
specify the contents, methods, and relationships
between jobs to satisfy organizational and
individual needs.
Organizational Design - refers to overall
organizational structure.



a picture of task and authority relationships.
functional, product, matrix
the organizational chart
Managing Individual, Groups and
Organizational Effectiveness
The ways of winners


T.J. Peters and R.H. Waterman’s In Search of
Excellence
8 Basics of Management Excellence
1. A bias for action (Quick Action)

Based on four activities
– Emphasize informal, open, and intensive
communication throughout the organization
– Corporate winners maintain “chunking,” small,
action-oriented, and informal groups that generate
ideas, develop them, and solve problems.
– These companies emphasize experimenting and
trying out new ideas.
– Winners encourage simplicity.
2. Staying close to the needs and
problems of customers.


Customer service is an obsession with these
companies.
Use of toll free numbers and access to upper
management by customers.
3. Autonomy and Entrepreneurship



Give employees the resources to try out new
ideas.
Encourage competition between divisions
Maintain “Championing Systems”
These systems are characterized by individuals who
assume one of three roles.

1. The Product Champion
–

2. Executive Champion
–

the person with a specific product idea.
typically a former product champion who protects
the idea from barriers.
3. The Godfather
–
an aging leader who provides the role model for
championing.
4. People as the Key to
Productivity

Winners emphasize their people through
intensive training, and by developing caring
relationships with employees.
–
They avoid quick layoffs etc.
5. Simple Organizations

Excellent companies strive to keep
organizational structure simple by
minimizing the size of corporate staff and
using a product division for structure.
6. Strong Corporate Culture

Maintain strong corporate culture by basing it
on clear, well understood guiding values.
7. Loose and Tight Control

Emphasize “Loose” principle such as
autonomy, entrepreneurship, and innovation by
employees, yet maintain a tight system of
discipline, values, and objectives.
8. Stick to the Basics

Winners restrict their business activities to
things they know best.
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