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Chapter 1
Introduction to
Organizational
Behavior

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©2005 Prentice Hall

Chapter Objectives
 Define organizational behavior and explain
how and why it determines the
effectiveness of an organization
 Appreciate why the study of organizational
behavior improves a person’s ability to
understand and respond to events that
take place in a work setting
 Differentiate between the three levels at
which organizational behavior is examined

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Chapter Objectives
 Appreciate the way changes in an
organization’s external environment
continually create challenges for
organizational behavior
 Describe the four main kinds of forces in
the environment that post the most
opportunities and problems for
organizations today

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IKEA’s Global Approach to OB
 IKEA strives to increase employees’ skills and
knowledge
 IKEA provides employees with rewards that
encourage high performance
 IKEA encourages employee commitment and
cooperation

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What is an Organization?
 An organization is a collection of people
who work together to achieve individual and
organizational goals
– Individual goals
– Organizational goals

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What is Organizational Behavior?
 Organizational behavior (OB): the study of
factors that have an impact on how people
and groups act, think, feel, and respond to
work and organizations, and how
organizations respond to their environments

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Figure 1.1
What is Organizational Behavior?

Insert Figure 1.1 here

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Figure 1.2 Levels of Analysis
Organizational Level
Group Level

Individual
Level

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Figure 1.3 Components of
Organizational Behavior
Understanding
organizational behavior
requires studying

Part One Individuals in Organizations

Part Two Group and Team Processes

Part Three Organizational Processes
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What is Management?
 Management is the process of planning,
organizing, leading, and controlling an
organization’s human, financial, material,
and other resources to increase its
effectiveness

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Figure 1.4 Four Functions of
Management
Planning

Organizing

Decide on organizational goals
and allocate and use
resources to
achieve those goals

Establish the rules and
reporting relationships that
allow people to
achieve organizational goals

Controlling

Evaluate how well the
organization is achieving goals
and take action to
maintain, improve, and correct
performance

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Leading

Encourage and coordinate
individuals and groups
so that they work
toward organizational goals


Table 1.1: Mintzberg’s
Managerial Roles






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Figurehead
Liaison
Disseminator
Entrepreneur
Resource allocator






Leader
Monitor
Spokesperson
Disturbance
handler
 Negotiator


Managerial Skills

Conceptual Skills

Technical Skills

Human Skills

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Figure 1.5 An Open Systems View of

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Challenges for





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1: Changing Social/ Cultural Environment
2: Evolving Global Environment
3: Advancing Information Technology
4: Shifting Work/ Employment Relationships


Changing Social and Cultural
Environment
 National culture
 Organizational ethics and well-being
 Diverse work force

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Diversity Challenges
 Fairness and Justice
 Decision-Making and Performance
 Flexibility

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Figure 1.6 Diversity

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Evolving Global Environment
 Understanding Global
Differences
 Improve Organization’s
Behaviors and
Procedures in
Response to Those
Differences

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Advancing Information
Technology








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Information
Knowledge
Information Technology
Organizational Learning
Intranets
Creativity
Innovation


Shifting Work/ Employment
Relationships





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Downsizing
Empowerment and Self-Managed Teams
Contingent Workers
Outsourcing


Appendix 1A: A Short History of





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F.W. Taylor and Scientific Management
Mary Parker Follett
Hawthorne Studies
Theory X and Y


F.W. Taylor and
Scientific Management
 Scientific management: the systematic
study of relationships between people and
tasks for the purpose of redesigning the
work process to increase efficiency
 The amount of and effort each employee
expends to produce a unit of output can be
reduced by increasing specialization and the
division of labor

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Four Principles of
Scientific Management
 1. Study the way employees perform their
tasks, gather informal job knowledge that
employees possess, and experiment with
ways of improving the way tasks are
performed
 2. Codify the new methods of performing
tasks into written rules and standard
operating procedures

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Four Principles of
Scientific Management_2
 3. Carefully select employees so that they
possess skills and abilities that match the
needs of the task, and train them to perform
the task according to the established rules
and procedures
 4. Establish an acceptable level of
performance for a task, and then develop a
pay system that provides a reward for
performance above the acceptable level
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Mary Parker Follett
 Management must consider the human side
 Employees should be involved in job
analysis
 Person with the knowledge should be in
control of the work process regardless of
position
 Cross-functioning teams used to accomplish
projects
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The Hawthorne Studies
 Hawthorne Works of the Western Electric
Company; 1924-1932
 Initiated as an attempt to investigate how
characteristics of the work setting affect
employee fatigue and performance (i.e.,
lighting)
 Found that productivity increased regardless
of whether illumination was raised or
lowered
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The Hawthorne Studies_2
 Factors influencing behavior:
– Attention from researchers
– Manager’s leadership approach
– Work group norms
 The “Hawthorne Effect”

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Douglas McGregor:
Theory X and Theory Y
Theory X
 Average employee is lazy,
dislikes work, and will try to
do as little as possible
 Manager’s task is to
supervise closely and
control employees through
reward and punishment

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Theory Y
 Employees will do what is
good for the organization
when committed
 Manager’s task is create a
work setting that
encourages commitment to
organizational goals and
provides opportunities for
employees to be exercise
initiative


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