Introduction to the Field of Organizational Behavior

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Introduction to the Field of Organizational Behavior HAROLD B. PANGILINAN Ed.D. - IEM

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What are Organizations? Groups of people who work interdependently toward some purpose Structured patterns of interaction Coordinated tasks Work toward some purpose

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Organizational Behavior Research Understand organizational events Predict organizational events Influence organizational events Why Study Organizational Behavior

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Trends: Globalization Economic, social, and cultural connectivity with people in other parts of the world Effects of globalization on organizations: Greater efficiencies and knowledge sources Ethical issues about economies of developing countries New organizational structures and communication Greater workforce diversity More competitive pressure, demands on employees

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Trends: Information Technology Blurs temporal and spatial boundaries between employees and organizations Re-designs jobs and power relationships Increases value of knowledge management Supports telecommuting Supports virtual teams

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Telecommuting An alternative work arrangement where employees work at home or remote site, usually with a computer connection to the office Tends to increase productivity and empowerment, reduce stress and costs Problems with lack of recognition, lack of social interaction

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Trends: Changing Workforce Primary and secondary diversity -- but concerns about distinguishing people by ethnicity More women in workforce and professions Different needs of Gen-X/Gen-Y and baby-boomers Diversity has advantages, but firms need to adjust

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Trends: Employment Relationship Employability “New deal” employment relationship Continuously learn new skills Contingent work No contract for long-term employment Free agents, temporary-temporaries Minimum hours of work vary

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Employability vs Job Security Job Security Lifetime job security Jobs are permanent Company manages career Low emphasis on skill development Employability Limited job security Jobs are temporary Career self-management High emphasis on skill development

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Trends: Workplace Values & Ethics Values are long-lasting beliefs about what is important in a variety of situations Define right versus wrong --guide our decisions Values relate to individuals, companies, professions, societies, etc. Importance values due to: Need to guide employee decisions and actions Globalization increases awareness of different values Increasing emphasis on applying ethical values Ethics -- study of moral principles or values

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Corporate Social Responsibility Corporate Social Responsibility Organization’s moral obligation toward its stakeholders Stakeholders Shareholders, customers, suppliers, governments etc. Triple bottom line philosophy Economic, Social & Environmental

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Organizational Behavior Anchors Multidisciplinary Anchor Systematic Research Anchor Contingency Anchor Open Systems Anchor Multiple Levels of Analysis Anchor Organizational Behavior Anchors

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Outputs Inputs Organization Open Systems Anchor of OB

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Knowledge Management Defined Any structured activity that improves an organization’s capacity to acquire, share, and use knowledge for its survival and success

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Structural Capital Relationship Capital Knowledge captured in systems and structures Values derived from satisfied customers, reliable suppliers, etc. Human Capital Knowledge that people possess and generate Intellectual Capital

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Awareness Empowerment Communication Communities of practice Grafting Individual learning Experimentation Knowledge acquisition Knowledge Management Processes

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Organizational Behaviour . . . a field of study that investigates the impact that individuals, groups and structure have on behaviour within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness. The Importance of Organizational Behavior People as organizations People as resources People as people

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The Nature of Organizational Behavior

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Challenges at Workplace Workplace Organizational Level • Productivity • Developing Effective Employees • Global Competition • Managing in the Global Village Group Level • Working With Others • Workforce Diversity Individual Level • Job Satisfaction • Empowerment • Behaving Ethically

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The Rigour of OB OB looks at consistencies What is common about behaviour, and helps predictability? OB is more than common sense Systematic study, based on scientific evidence OB has few absolutes OB takes a contingency approach Considers behaviour in context

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Beyond Common Sense Systematic Study Looking at relationships, attempting to attribute causes and effects and drawing conclusions based on scientific evidence Behaviour is generally predictable There are differences between individuals There are fundamental consistencies There are rules (written & unwritten) in almost every setting

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Contributing Disciplines to the OB Field Psychology Sociology Social Psychology Anthropology Political Science

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Contributing Disciplines to the OB Field

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Contributing Disciplines to the OB Field (cont’d)

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Contributing Disciplines to the OB Field (cont’d)

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Contributing Disciplines to the OB Field (cont’d)

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Contributing Disciplines to the OB Field (cont’d)

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Summary and Implications OB is a field of study that investigates the impact that individuals, groups, and structure have on behaviour within an organization. OB focuses on improving productivity, reducing absenteeism and turnover, and increasing employee job satisfaction and organizational commitment. OB uses systematic study to improve predictions of behaviour.

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The Historical Roots of Organizational Behavior Scientific Management Era (early 1900s) Frederick W. Taylor Studied the efficiency and productivity of individual workers. Systematically studied jobs to eliminate soldiering. Promoted standardized job performance methods. Implemented piece-rate based incentive pay systems. Taylor’s innovations boosted productivity markedly. Other Pioneers Frank and Lillian Gilbreth Henry Gantt Harrington Emerson

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Scientific Management Positive Attributes Facilitated job specialization and mass production. Demonstrated to managers their role in enhancing performance and productivity. Negative Attributes Labor opposed scientific management because its explicit goal was to get more output from workers. Critics argued that Taylor’s methods and ideas would dehumanize the workplace and reduce workers to little more than drones. Theorists later argued that Taylor’s views of employee motivation were inadequate and narrow.

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The Historical Roots of Organizational Behavior Classical Organization Theory This perspective was concerned with structuring organizations effectively. Whereas scientific management studied how individual workers could be made more efficient, organization theory focused on how a large number of workers and managers could be organized most effectively into an overall structure.

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Major Contributors to Classical Organization Theory Henri Fayol French executive and engineer. Lyndall Urwick British executive. Max Weber German Sociologist. Proposed a “bureaucratic” form of structure based on logic, rationality, and efficiency that was assumed to be the most efficient (universal) approach to structuring for all organizations.

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The Emergence of Organizational Behavior Legacy of Scientific Management and Classical Organizational Theory Rationality, efficiency, and standardization were the central themes of both scientific management and classic organization theory. The roles of individuals and groups in organizations were either ignored or given only minimal attention. The Hawthorne Studies (1927–1932) Focused attention on the role of human behavior in the workplace. Led directly to the emergence of organizational behavior as a field of study.

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The Hawthorne Studies (1927–1932) Involved two studies conducted by Elton Mayo at Western Electric’s plant near Chicago: The effects of lighting on productivity. The effectiveness of a piecework incentive system. The studies yielded surprising results: In the lighting study, productivity went up because the workers were singled out for special treatment. In the incentive system experiment, social pressures caused the workers to vary their work rates. As a result of the Hawthorne studies, researchers concluded that the human element in the workplace was more important than previously thought.

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The Emergence of Organizational Behavior The Human Relations Movement People respond primarily to their social environment. Motivation depends on social, not economic needs. Satisfied employees work harder than dissatisfied employees. Douglas McGregor – Theory X and Theory Y Abraham Maslow – Hierarchy of needs Toward Organizational Behavior: The Value of People Organizational behavior reached maturity as a field of study in the late 1950s .

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Contextual Perspectives on Organizational Behavior The Systems Perspective A system is an interrelated set of elements that function as a whole. The Systems Approach Provides a framework for understanding how the elements of an organization interact among themselves and with their environment.

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Contextual Perspectives on Organizational Behavior The Universal Perspective Suggests that whenever a manager encounters a problem, a universal approach exists that will lead to the desired outcome. The Contingency Perspective Suggests that whenever a manager encounters a problem, the approach to use is contingent on other variables.

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The Systems Approach to Organizations

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Contextual Perspectives on Organizational Behavior Interactionalism: People and Situations First presented in terms of interactional psychology, this view assumes that individual behavior results from a continuous and multidirectional interaction between the characteristics of the person and the characteristics of the situation. Interactionalism attempts to explain how people select, interpret, and change various situations

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There Are Few Absolutes in OB Contingency Variables x y

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The Independent Variables Independent Variables

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The Dependent Variables x y

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The Dependent Variables (cont’d)

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The Dependent Variables (cont’d)

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The Dependent Variables (cont’d)

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The Dependent Variables (cont’d)