Download Managing Organizational Change and Learning

McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
The Study of Organizations
Organizations: Behavior, Structure, Processes
Chapter 1
The Field of Organizational Behavior

Studies the behavior of individuals and
groups in organizational settings
This book focuses on management
of that behavior
 In order to achieve organizational
effectiveness

1-3
Learning Objectives
Define the term organizational behavior
 Explain the contingency approach to
managing behavior within an
organizational setting
 Identify why managing workplace behavior
in the U.S. is different from managing
workplace behavior in other countries
 Compare the goal, systems, and multipleconstituency approaches to effectiveness
 Describe the environmental forces that
compel organizations to initiate changes

1-4
The World Today

Organizations in the 21st century must
adapt to more turbulent environments
Managers now need multiple skills
 Adaptation and flexibility are mandatory


The U.S. is a productive nation
Sound management practices
 Efficient planning
 New techniques, methods, and
management styles

1-5
Maintaining a Leadership Role

Managing people effectively is
essential for
Retaining a comfortable standard of living
 Remaining one of the world’s economic
leaders
 Improving quality of life for all citizens


The quality of life is connected to the
quality of work
1-6
What is an Organization?

A coordinated unit
At least two people
 Working to achieve a common goal


The study of organizational
behavior focuses on individuals’
Perceptions and values
 Learning capacities
 Actions

1-7
Studying Organizational Behavior

Studying people to help bring about
Productivity improvements
 Customer satisfaction
 Better competitive position


Based on these sciences
Psychology
 Sociology
 Political science
 Cultural anthropology

1-8
Studying Organizational Behavior

Key points
Behavior happens at individual, group,
and organizational levels
 OB uses the principles, models, theories,
and methods of other disciplines
 It is humanistic and performance oriented
 The external environment has significant
impact on organization behavior
 The scientific method is used to study
variables and relationships
 OB is application oriented

1-9
Studying Organizational Behavior

Effectiveness of any organization rests
on human behavior


Each person has unique perceptions,
personality, life experiences
People have different
Ethnic backgrounds
 Capabilities for learning and responsibility
 Attitudes and beliefs
 Aspiration levels

1-10
Studying Organizational Behavior

Today’s workforce doesn’t look, think,
or act like the workforce of the past

Each employee is a unique embodiment
of behavioral and cultural factors
1-11
Studying Organizational Behavior

Organizations are social systems
Relationships among individuals and
groups create expectations for behavior
 Systems allocate authority,
status, power
 Groups impact individual
and organizational
performance

1-12
Studying Organizational Behavior

Contingency approach to management
Behavior involves the interaction of
personal characteristics with the
characteristics of the situation
 There is no “one best way” to manage


Important considerations
Characteristics of individuals and groups
 Characteristics of the situation
 Personal management style

1-13
Structure, Processes, and Behavior

Structure
The formal pattern of how people and
jobs are grouped
 Often illustrated in an organization chart

1-14
Structure, Processes, and Behavior

Culture
An organization’s personality, atmosphere,
or “feel”
 Defines appropriate behavior and bonds
 Motivates individuals
 Governs information processing, internal
relations, values
 May be subconscious or visible
 Can be positive or negative

1-15
Structure, Processes, and Behavior

Problem indicators
Declining profits, quantity, or quality
 Increases in absenteeism or tardiness
 Negative employee attitudes

1-16
Structure, Processes, and Behavior

No one can predict every behavior,
team outcome, or phenomenon


People are unique and unpredictable
Required management competencies
Intellectual capability
 A system orientation
 Interpersonal skills
 Flexibility
 Self-motivation

1-17
The Organization’s Environment

How an organization is structured and
operates depends on
The needs of customers or clients
 Legal and political constraints
 Economic and technological changes


Managers work in an increasingly
unpredictable environment
1-18
Behavior Within Organizations

Determinants of individual performance
Individual characteristics
 Individual motivation
 Group behavior
 Leadership
 Power and politics
 Intergroup behavior, conflict
 Reward and appraisal systems
 Groups and interpersonal influence

1-19
Organization Structure and Design

Effective managers clearly understand
the organizational structure
The configuration of positions, job duties,
and lines of authority
 The formal pattern of activities and interrelationships among the various subunits

1-20
Organization Structure and Design

Job design
The process by which managers specify
job content, methods, relationships
 Must satisfy both organizational and
individual requirements


Organizational design
The overall organizational structure
 The structure of tasks, authority, and
interpersonal relationships

1-21
The Process of Organizations

Processes give life to organizational
structure
Communication… receiving, transmitting,
and acting on information
 Decision making… quality depends on
selecting proper goals and identifying
ways to achieve them

1-22
Decision Making

Ethics affect decision making
Decisions evaluated as good or bad,
right or wrong, ethical or unethical
 Conflicts between personal and corporate
values and culture arise regularly


Managers have power and authority


Potential wrong and right, good and evil
Managers display their morals and
values when they make decisions
1-23
Perspectives on Effectiveness

Levels of effectiveness
Individual
 Group
 Organizational


Synergy


The sum of individual contributions
exceeds the simple summation of them
Organizational effectiveness

Results from the synergy between
individuals and groups
1-24
Causes of Effectiveness
Individual
Ability
Skill
Knowledge
Attitude
Motivation
Stress
Group
Organization
Cohesiveness
Leadership
Structure
Status
Roles
Norms
Environment
Technology
Strategic choices
Structure
Processes
Culture
1-25
The Nature of Managerial Work

Mintzberg’s managerial roles
Interpersonal
 Decisional
 Informational

1-26
The Nature of Managerial Work

Managers make decisions about
Operational matters
 Resource allocation
 Negotiations with constituencies


Managers are needed when
Work is specialized
 It is undertaken by two or more people

1-27
The Nature of Managerial Work

The nature of managerial work


To coordinate the work of individuals,
groups, organizations
Management functions
Planning
 Organizing
 Leading
 Controlling

1-28
The Nature of Managerial Work
Management
Plans
Organizes
Leads
Controls
To Coordinate
the Behavior of
Individuals
Groups
Organizations
To Attain
Effectiveness of
Individuals
Groups
Organizations
Feedback
Management’s Contribution to Effectiveness
1-29
Planning Effective Performance

Planning involves
Defining the ends to be achieved
 Determining the means to achieve
the defined ends


Planning activities can be
Complex or simple
 Implicit or explicit
 Impersonal or personal

1-30
Organizing Effective Performance

The organizing function involves
Designing the responsibility and authority
of each job
 Determining which of these jobs will be
grouped into specific departments

1-31
Leading Effective Performance

Leading involves close, day-to-day
contact with individuals and groups
People do the actual work, and people
are variable entities
 Managers must guide unique perceptions
and behaviors toward a common purpose
 Learning more about human psychology
can help


Successful managers have effective
interpersonal skills
1-32
Controlling Performance

Managers use control to determine
whether intended results are achieved


And if not, then why
Controlling activities
Worker selection, placement, evaluation
 Materials inspection
 Financial statement analysis


Control occurs at the individual, group,
and organizational levels
1-33
Approaches to Effectiveness
Stakeholder Approach
Systems Theory
Goal Approach
1-34
Goal Approach

Also called “management by objectives”
Emphases goal achievement
 Emphasizes Western values of
purposefulness, rationality, achievement


Difficulties with this approach
Intangible outputs are hard to measure
 Goals may conflict
 Difficult to obtain consensus among
managers as to specific goals

1-35
Systems Theory

A system is a group of elements that
Individually establish relationships with
each other
 Interact with their environment, both as
individuals and as a collective


System categories
Conceptual (language)
 Concrete (machines)
 Abstract (culture)

1-36
Basic Elements of a System
Inputs
Process
Outputs
Environment
1-37
Systems Theory

Key concepts
Every organization is part of a larger
system
 All systems make demands on their parts
 Organizations must produce a product or
service to satisfy customers
 They must also satisfy the larger
environment
 Feedback facilitates adjustment to
environmental demands

1-38
Input-Output Cycle

An organization has two forms of input
Human resources
 Natural resources


Major considerations
Survival of the organization depends on
adaptation to the environment
 The total cycle of input-process-output
must have managerial attention

1-39
Stakeholder Approach

Achieving balance among the various
parts of the system


The organization is but one part
Stresses satisfying the interests of the
organization’s constituency
Expectations may not be consistent or
compatible among individuals or groups
 Effectiveness is achieved by satisfying the
demands of the most powerful coalitions

1-40
Organizational Change & Learning

Successful change is a multi-step
process that creates
Power
 Motivation


Change is driven by managers who
Establish direction
 Align people with their visions
 Inspire people to overcome political,
personal, and bureaucratic barriers

1-41
Managerial Work

The purpose of managers
Coordinate behavior
 Satisfy evaluators


This requires
Planning
 Organizing
 Leading
 Controlling

1-42
Managerial Work

Major factors in individual and group
behavior
Task and authority relationships
 Structures and processes that facilitate
communication among employees

1-43