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Chapter 1Organizational

Behavior and Opportunity1 Define organizational behavior.

2 Identify four action steps for responding positively in times of change.

3 Identify the important system components of an organization.

4 Describe the formal and informal elements of an organization.

5 Understand the diversity of organizations in the economy.

6 Evaluate the opportunities that change creates fororganizational behavior.

7 Demonstrate the value of objective knowledge and skilldevelopment in the study of organizational behavior.

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Learning Outcome

Define organizational behavior.

1

Clockworks or Snake pit?

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Organizational Behavior

The study of individual behavior and group dynamics in organizations

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Psychosocial

BehavioralInterpersonal

Organizational Behavior: Dynamics in Organizations

OrganizationalBehavior

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Organizational Variables that Affect Human Behavior

OrganizationalDesign

JobsWorkDesign

PerformanceAppraisal

OrganizationalStructure

Communication

HumanBehavior

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External PerspectiveUnderstand behavior in terms of external

events, environmental forces, and behavioral

consequences

InternalPerspective

Understand behavior in terms of thoughts,

feelings, past experiences, and needs

Explain behavior by examining individuals’

history and personal value system

Each perspective has produced motivational & leadership

theories.

Explain behavior by examining surrounding external events and

environmental forces

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Psychology the science

of human behavior

Management the study of overseeing

activities and supervising people in organizations

Anthropologythe science of

the learned behavior of

human beings

Medicine the applied science

of healing or treatment of diseases

to enhance an individual’s health and

well-being

Engineering the applied

science of energy &

matter

Sociology the science

of society

Interdisciplinary Influences on Organizational

Behavior

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Components of an Organization

Task – an organization’s mission, purpose, or goal for existing

People – the human resources of the organizationStructure – the manner in which an organization’s

work is designed at the micro level; how departments, divisions, and the overall organization are designed at the macro level

Technology – the tools, knowledge, and/or techniques used to transform inputs into outputs

Open Systems View of Organization

Outputs: Products Services

Inputs:MaterialCapitalHuman

Task environment:CompetitorsUnionsRegulatory agenciesClients

Organizational BoundaryBased on Harold Levitt, “Applied Organizational Change in Industry: Structural, Technological, and Humanistic Approaches,” in J.G.March (ed.), Handbook of Organizations, Rand McNally, Chicago, 1965,p. 1145. Reprinted by permission of James G. March

People(Actors)People(Actors)

Structure

Task Technology

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Formal vs. Informal Organization

Formal Organization – the official, legitimate, and most visible part of the system

Informal Organization – the unofficial and less visible part of the system Hawthorne Studies: studies

conducted during the 1920’s and 1930’s that suggested the importance of the informal organization

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Formal & Informal Elements of Organizations

Formal organization (overt)

Goals and objectivesPolicies and procedures

Job descriptionsFinancial resourcesAuthority structure

Communication channelsProducts and services

Formal organization (overt)

Goals and objectivesPolicies and procedures

Job descriptionsFinancial resourcesAuthority structure

Communication channelsProducts and services

SocialSurface

Informal organization (covert)

Beliefs and assumptions Perceptions and attitudes

ValuesFeelings, such as fear, joy

anger, trust, and hopeGroup norms

Informal leaders

Informal organization (covert)

Beliefs and assumptions Perceptions and attitudes

ValuesFeelings, such as fear, joy

anger, trust, and hopeGroup norms

Informal leaders