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Introduction tothe Field ofOrganizational Behavior
McGraw-Hill/IrwinMcShane/Von Glinow OB 5e Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
John LassiterChief Creative Officerof Pixar and Disney
Pixar Animation Studios
OB practices have helped Pixar Animation Studios to become the world’s most successful animation studio• Employee competencies• People-centered• Teamwork and org learning• Constructive conflict
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John LassiterChief Creative Officerof Pixar and Disney
Organizational Behavior and Organizations Organizational behavior
• The study of what people think, feel, and do in and around organizations
Organizations• Groups of people who work
interdependently toward some purpose
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OB Foundations
Distinct field around the 1940s OB concepts discussed for more
than 2,000 years Some pivotal scholars before OB
formed include:• Max Weber• Frederick Winslow Taylor• Elton Mayo• Chester Barnard (shown)• Mary Parker Follett
Chester Barnard
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Why Study OB?
Satisfy the need to understand and predict Helps us to test personal theories Influence behavior – get things done OB improves an organization’s financial
health OB is for everyone
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Old Perspective ofOrganizational Effectiveness Goal oriented -- Effective
firms achieve their stated objectives
No longer accepted as indicator of org effectiveness• Could set easy goals• Some goals too abstract to
evaluate• Company might achieve
wrong goals
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Four Perspectives of Organizational Effectiveness
Stakeholder Perspective
High-Performance WP Perspective
Organizational Learning Perspective
Open Systems Perspective
NOTE: Need to consider all four perspectives when assessing a company’s effectiveness
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Open Systems Perspective
Organizations are complex systems that “live” within (and depend upon) the external environment
Effective organizations• Maintain a close “fit” with changing conditions• Transform inputs to outputs efficiently and
flexibly
Open systems perspective lays the foundation for the other three perspectives or organizational effectiveness
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Open Systems Perspective
FeedbackFeedback
FeedbackFeedback
Environment
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Organizational Learning Perspective
An organization’s capacity to acquire, share, use, and store valuable knowledge
Need to consider both stock and flow of knowledge• Stock: intellectual capital• Flow: org learning processes of acquisition,
sharing, and use
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Intellectual Capital
Relationship Relationship CapitalCapital
Value derived from satisfied customers, reliable suppliers, etc.
Structural CapitalStructural CapitalKnowledge captured in systems and structures
HumanHumanCapitalCapital
Knowledge that people possess and generate
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Organizational Learning Processes (also known as Knowledge Management)
Applying knowledge to organizational processes in ways that improves the organization’s effectiveness
Distributing knowledge throughout the organization
Extracting information and ideas from its environment as well as through insight
KNOWLEDGEACQUISITIONKNOWLEDGEACQUISITION
KNOWLEDGESHARING
KNOWLEDGESHARING
KNOWLEDGEUSE
KNOWLEDGEUSE
Examples in practice
Hiring skilled staff
Posting case studies on intranet
Giving staff freedom to try out ideas
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High Performance Work Practices (HPWPs)
HPWPs are internal systems and structures that are associated with successful companies
1. Employees are competitive advantage
2. Value of employees increased through specific practices.
3. Maximum benefit when org practices are bundled
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High Performance Work Practices
No consensus, but HPWPs include:
• Employee involvement and job autonomy (and their combination as self-directed teams).
• Employee competence (training, selection, etc.).
• Performance-based rewards
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Stakeholder Perspective
Stakeholders: any entity who affects or is affected by the firm’s objectives and actions
Personalizes the open systems perspective
Challenges with stakeholder perspective:
• Stakeholders have conflicting interests• Firms have limited resources
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Stakeholder Perspective
Lockheed Martin is rated by engineering students as an “ideal” employer• Pays attention to its many
stakeholders• Relies on values and ethics to
guide decisions• Strong emphasis on corporate
social responsibility (e.g. photo shows clean-up after hurricane Katrina)
Lockheed Martin
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Stakeholders: Values and Ethics Values and ethics prioritize
stakeholder interests Values
• Stable, evaluative beliefs, guide preferences for outcomes or courses of action in various situations
Ethics• Moral principles/values,
determine whether actions are right/wrong and outcomes are good or bad
Lockheed Martin
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Stakeholders and CSR
Stakeholder perspective includes corporate social responsibility (CSR)• Benefit society and
environment beyond the firm’s immediate financial interests or legal obligations
• Organization’s contract with society
Triple bottom line• Economy, society, environment
Lockheed Martin
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Types of Individual Behavior
Organizational Organizational CitizenshipCitizenship
Contextual performance – cooperation and helpfulness beyond required job duties
Task PerformanceTask PerformanceGoal-directed behaviors under person’s control
more
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Types of Individual Behavior (con’t)
Maintaining Work Maintaining Work AttendanceAttendance
Attending work at required times
Joining/staying with Joining/staying with the Organizationthe Organization
Agreeing to employment relationship; remaining in that relationship
Counterproductive Counterproductive Work BehaviorsWork Behaviors
Voluntary behaviors that potentially harm the organization
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Globalization
Economic, social, and cultural connectivity with people in other parts of the world
Effects of globalization on organizations• New structures• Increasing diversity• Increasing competitive pressures,
intensification
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Increasing Workforce Diversity Surface-level diversity
• Observable demographic and other overt differences in people (e.g. race, ethnicity, gender, age)
Deep-level diversity• Differences in psychological characteristics (e.g.
personalities, beliefs, values, and attitudes)• Example: Differences across age cohorts (e.g. Gen-
Y) Implications
• Leveraging the diversity advantage• Also diversity challenges (e.g. teams, conflict)• Ethical imperative of diversity
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Employment Relationships
Work/life balance • Minimizing conflict between work and nonwork
demands number one indicator of career success
Virtual work• Using information technology to perform one’s job away
from the traditional physical workplace• Telework – issues of replacing face time, clarifying
employment expectations
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Organizational Behavior Anchors
Multidisciplinary anchor• Many OB concepts adopted from other disciplines• OB develops its own theories, but scans other fields
Systematic research anchor• OB researchers rely on scientific method• Should apply evidence-based management, but…
- Bombarded with theories and models- Challenge translating general theories to specific situations- Swayed by consultant marketing- Perceptual biases -- ignoring evidence contrary to our beliefs
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Organizational Behavior Anchors (con’t)
Contingency anchor• A particular action may have different consequences
in different situations• Need to diagnose the situation and select best
strategy under those conditions
Multiple levels of analysis anchor• Individual, team, organizational level of analysis• OB topics usually relevant at all three levels of
analysis
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KNOWLEDGE MANAGEMENT Knowledge – is the driver of competitive advantage. Knowledge management processes
• Knowledge acquisition- Occurs when information is brought into the
organization from the external environment.- Include hiring people, acquiring companies and
scanning the environment.• Knowledge sharing
- Occurs through electronic whiteboards, wikis blogs and other computer-mediated technology.
• Knowledge use- Application of knowledge to organizational processes
in ways that improve the organisation’s effectiveness.
McShane/Von Glinow OB 5e© 2010 The McGraw-Hill Companies, Inc. All rights
reserved26
ORGANIZATIONAL MEMORY
The storage and preservation of intellectual capital
Retain intellectual capital by:• Keeping knowledgeable employees• Transferring knowledge to others• Transferring human capital to structural
capital Successful companies also unlearn
McShane/Von Glinow OB 5e© 2010 The McGraw-Hill Companies, Inc. All rights
reserved27
Introduction tothe Field ofOrganizational Behavior
McGraw-Hill/IrwinMcShane/Von Glinow OB 5e
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. 1-28
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