Chapter 1 OB - Introduction To Organizations Behaviors PDF

Behavior in Organizations Course content  Chapter 1 : Introduction to Organizations Behaviors  Chapter 2 : Organizational Justice, Ethics, and CSR  Chapter 3 : Perception and Learning  Chapter 4 : Individual Differences: Personality, Skills, and Abilities  Chapter 6 : Work-related Attitudes: P...

Behavior in Organizations Course content  Chapter 1 : Introduction to Organizations Behaviors  Chapter 2 : Organizational Justice, Ethics, and CSR  Chapter 3 : Perception and Learning  Chapter 4 : Individual Differences: Personality, Skills, and Abilities  Chapter 6 : Work-related Attitudes: Prejudice, Job Satisfaction, and Organizational Commitment  Chapter 8 : Group Dynamics and Work Teams  Chapter 11: Interpersonal Behavior at Work: Conflict, Cooperation, Trust, and Deviance Chapter 12: Power and its Uses and Abuses in Organizations  Introduction to Organizations Behaviors CHAPTER 1 COPYRIGHT © 2011 PEARSON EDUCATION 1-1 Learning Objectives  The concepts of organization and organizational behavior (OB)  Four Central Characteristics of the OB Field  Importance of OB  Globalization (Three Forces That Lead to Increased Globalization)  Multinational Enterprises (MNEs) (Staffing Expatriates/Culture Shock/ Repatriation) Organizational Behavior as the name implies, is concerned with organizations and the behaviors of the people within those organizations 1-5 Organization A structured social system consisting of groups and individuals working together to meet some agreed-upon objectives Organizational Behavior A multidisciplinary field that seeks knowledge of behavior in organizational settings by systematically studying  individual,  group, and  organizational processes 1-7 Learning Objectives  The concepts of organization and organizational behavior (OB)  Four Central Characteristics of the OB Field  Importance of OB  Globalization (Three Forces That Lead to Increased Globalization)  Multinational Enterprises (MNEs) (Staffing Expatriates/Culture Shock/ Repatriation) Four Central Characteristics of the OB Field 1- OB Applies the Scientific Method to Practical Managerial Problems 2- OB Focuses on Three Levels of Analysis - individuals, groups, and organizations 3- OB Is Multidisciplinary in Nature 4- OB Seeks to Improve Organizational Effectiveness and the Quality of Life at Work COPYRIGHT © 2011 PEARSON EDUCATION 1-9 Four Central Characteristics of the OB Field – 1- OB Applies the Scientific Method to Practical Managerial Problems Organizational behavior utilizes the behavioral sciences (psychology and sociology especially) to scientifically develop a base of empirical knowledge a. The scientific method is based on systematic observation and measurement of the phenomenon of interest. Its use is a hallmark of the field of OB b. “Application” refers to the practical use of the theories, findings, and models of OB in the workplace by managers. This use of theory in real-world organizations is an important aspect of OB COPYRIGHT © 2011 PEARSON EDUCATION 1-10 Practical Managerial Problems  How goals can enhance job performance  How jobs can be designed to enhance employee satisfaction  When individuals and groups make better decisions  How organizational communication can be improved  How work-related stress can be alleviated  How leaders can enhance team effectiveness Four Central Characteristics of the OB Field 1- OB Applies the Scientific Method to Practical Managerial Problems 2- OB Focuses on Three Levels of Analysis - individuals, groups, and organizations COPYRIGHT © 2011 PEARSON EDUCATION 1-12 Four Central Characteristics of the OB Field – 2- OB Focuses on Three Levels of Analysis - individuals, groups, & organizations OB cannot be explained by solely focusing on individuals. Groups, as well as the traits of the organizations themselves, have a strong bearing on the behavior of individuals in organizations. OB studies each level as well as the interactions among the levels. COPYRIGHT © 2011 PEARSON EDUCATION 1-13 Three Levels of Analysis COPYRIGHT © 2011 PEARSON EDUCATION 1-14 Four Central Characteristics of the OB Field 1- OB Applies the Scientific Method to Practical Managerial Problems 2- OB Focuses on Three Levels of Analysis - individuals, groups, and organizations 3- OB Is Multidisciplinary in Nature COPYRIGHT © 2011 PEARSON EDUCATION 1-15 Four Central Characteristics of the OB Field – 3- OB Is Multidisciplinary in Nature OB draws from a wide variety of academic fields because of the broad range of issues and activities that influences the study of people in organizations. This acceptance of such diverse views and techniques is one of the reasons why OB is such a powerful and growing field of study. COPYRIGHT © 2011 PEARSON EDUCATION 1-16 Four Central Characteristics of the OB Field – 3- OB Is Multidisciplinary in Nature COPYRIGHT © 2011 PEARSON EDUCATION 1-17 Four Central Characteristics of the OB Field 1- OB Applies the Scientific Method to Practical Managerial Problems 2- OB Focuses on Three Levels of Analysis - individuals, groups, and organizations 3- OB Is Multidisciplinary in Nature 4- OB Seeks to Improve Organizational Effectiveness and the Quality of Life at Work COPYRIGHT © 2011 PEARSON EDUCATION 1-18 Four Central Characteristics of the OB Field – 4- OB Seeks to Improve Organizational Effectiveness & the Quality of Life at Work OB has a stated goal of finding ways to make organizations more competitive in the global environment. Balancing that pragmatic goal is a more esoteric one: helping organizations create work environments that improve the lives of employees. COPYRIGHT © 2011 PEARSON EDUCATION 1-19 Four Central Characteristics of the OB Field – 4- OB Seeks to Improve Organizational Effectiveness & the Quality of Life at Work Theory X vs. Theory Y COPYRIGHT © 2011 PEARSON EDUCATION 1-20 Learning Objectives  The concepts of organization and organizational behavior (OB)  Four Central Characteristics of the OB Field  Importance of OB  Globalization (Three Forces That Lead to Increased Globalization)  Multinational Enterprises (MNEs) (Staffing Expatriates/Culture Shock/ Repatriation) Why Is It Important to Know About OB? 1- Strong Impact. OB theory and practice make a great difference in the world of work for both individual workers and organizations. COPYRIGHT © 2011 PEARSON EDUCATION 1-22 Why Is It Important to Know About OB? 2- Effectiveness. OB can improve the performance of workers, and therefore, taken together, that of firms. COPYRIGHT © 2011 PEARSON EDUCATION 1-23 Why Is It Important to Know About OB? OB has shown that: a. Accurate performance appraisals lead to lower costs and higher productivity. b. Worker satisfaction increases workplace harmony and decreases turnover. c. Proper team formation and team building can increase productivity. d. Workers who believe they have been treated fairly are less likely to steal or create disruptions in the workplace. COPYRIGHT © 2011 PEARSON EDUCATION 1-24 Why Is It Important to Know About OB? OB has shown that: e. Mistreated employees have more mental and physical illness, resulting in lower productivity. f. Firms that treat their employees well are (on average) twice as profitable as the S&P 500. g. People-oriented firms are more profitable COPYRIGHT © 2011 PEARSON EDUCATION 1-25 Why Is It Important to Know About OB? 3- OB is everyone’s job in an organization. The more an individual knows about OB, the greater the likelihood of his or her success in a firm. Managers in all departments have to know such things as:  how to motivate employees,  how to keep people satisfied with their jobs,  how to communicate clearly,  how to make teams function smoothly,  how to design jobs most effectively COPYRIGHT © 2011 PEARSON EDUCATION 1-26 Learning Objectives  The concepts of organization and organizational behavior (OB)  Four Central Characteristics of the OB Field  Importance of OB  Globalization (Three Forces That Lead to Increased Globalization)  Multinational Enterprises (MNEs) (Staffing Expatriates/Culture Shock/ Repatriation) Globalization This is the ongoing process of interconnecting the world’s people with respect to the cultural, economic, political, technological, and environmental aspects of their lives. As the world becomes more global, each of the world’s countries is influenced by the others. COPYRIGHT © 2011 PEARSON EDUCATION 1-28 Three Forces That Lead to Increased Globalization 1- Technology. Technology has drastically lowered the cost of transportation and communication thereby enhancing the opportunities for international commerce COPYRIGHT © 2011 PEARSON EDUCATION 1-29 Three Forces That Lead to Increased Globalization 2- Trade Laws. The laws restricting trade have generally become more liberalized throughout the world. COPYRIGHT © 2011 PEARSON EDUCATION 1-30 Three Forces That Lead to Increased Globalization 3- Stance of Developing Nations. Developing nations have begun to promote their exports and to encourage investment by foreign companies. COPYRIGHT © 2011 PEARSON EDUCATION 1-31 OB Responding to Technology Changes Leaner Organization Technology and automation have made people more efficient, thereby decreasing the number of people it takes to do a given task. While in the past automation involved creating machines to work with physical objects, in today’s workplace automation deals with software created to manipulate digital data. COPYRIGHT © 2011 PEARSON EDUCATION 1-32  OB Responding to Technology Changes Leaner Organization Informate (as opposed to “automate”). This term describes the process by which workers use computer information technology to transform a once-physical task into one that involves manipulating a sequence of digital commands Informate processes are changing far more rapidly than mechanical automation processes changed in the past, quickly changing the nature of work COPYRIGHT © 2011 PEARSON EDUCATION 1-33  OB Responding to Technology Changes Leaner Organization Downsizing (or rightsizing). Because of this greater efficiency, organizations have been rapidly reducing the number of employees in their organizations. More than simply laying off employees to save costs, this involves restructuring the work and the relationships within the organization. COPYRIGHT © 2011 PEARSON EDUCATION 1-34  OB Responding to Technology Changes Leaner Organization Outsourcing. Organizations have been encouraged to remove peripheral tasks that are not directly related to their core competency (the core activities that define the organization) and contract those tasks out to other organizations. This also reduces headcount in organizations, but may increase the ability of a firm to focus on essential processes COPYRIGHT © 2011 PEARSON EDUCATION 1-35 Learning Objectives  The concepts of organization and organizational behavior (OB)  Four Central Characteristics of the OB Field  Importance of OB  Globalization (Three Forces That Lead to Increased Globalization)  Multinational Enterprises (MNEs) (Staffing Expatriates/Culture Shock/ Repatriation) Multinational Enterprises (MNEs) These organizations, while headquartered in one nation, maintain significant operations throughout the globe. COPYRIGHT © 2011 PEARSON EDUCATION 1-37 Staffing Expatriates The rise of the MNEs has led to increasing numbers of expatriates. These are individuals who are the citizens of one country, but who live and work in another country for extended periods. COPYRIGHT © 2011 PEARSON EDUCATION 1-38 Culture Shock Cultures are the sets of values, customs, and beliefs that people have in common with other members of their social unit. Cultures are often very diverse, and when expatriates are immersed in a foreign culture, culture shock may result. This is the tendency for people to become confused and disoriented when they attempt to adjust to a new culture COPYRIGHT © 2011 PEARSON EDUCATION 1-39 Culture Shock – Causes. One of the main causes of cultural shock is the parochial assumptions and ethnocentric beliefs carried by many people. Ethnocentrism is the cultural belief that (literally) the world revolves around that society. Everything is judged by the standards of the original culture, even when the individual is no longer residing in that culture. COPYRIGHT © 2011 PEARSON EDUCATION 1-40 Culture Shock COPYRIGHT © 2011 PEARSON EDUCATION 1-41 Repatriation Not only may expatriates experience culture shock when entering a new society, they frequently experience culture shock when they reenter their own society after an absence of years. This readjustment is known as repatriation. COPYRIGHT © 2011 PEARSON EDUCATION 1-42 Thank you