Chapter 1.Introduction to Organizational behavior

Introduction to Organizational Behavior

1. 1
Introduction to
the Field of
Organizational
Behavior
McShane/Von Glinow OB 7e
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2
Quicken Loans
Quicken Loans has become one
of America’s most successful
companies through high
involvement, a focus on creativity,
a strong culture, and other
effective organizational behavior
practices.
McShane/Von Glinow OB 7e

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3
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
Collective entities
Collective sense of purpose
McShane/Von Glinow OB 7e

4. 4
Why Study OB?
Satisfy the need to understand and predict
Helps us to test/improve personal theories
Influence behavior – get things done
OB improves an organization’s financial
health
OB is for everyone
McShane/Von Glinow OB 7e
© 2015 by McGraw-Hill Education.
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5 McShane/Von Glinow OB 7e

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6
Contemporary
Developments Facing
Organization
Technological Change
Globalization
Emerging Employment Relationships
Increasing Workforce Diversity
McShane/Von Glinow OB 7e

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Organizational Effectiveness
The ultimate dependent
variable in OB
Old approach – achieving
stated goals
Problem with goal
attainment
Could set easy goals
Company might achieve
wrong goals
McShane/Von Glinow OB 7e

8. 8
Four Perspectives of
Organizational Effectiveness
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McShane/Von Glinow OB 7e
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 on, the external
environment
Effective organizations
Maintain a close “fit” with changing conditions
Transform inputs to outputs efficiently and flexibly
Foundation for the other three organizational
effectiveness perspectives
McShane/Von Glinow OB 7e9

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•Products/services
•Shareholder
dividends
•Community
support
•Waste/pollution
Technological
subsystem
Marketing /
Sales
subsystem
Production
subsystem
Cultural
subsystem
subsystem
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Engineerin
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subsystem
Accountin
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subsystem
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Socialization
subsystem
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m•Raw materials
•Human
resources
•Information
•Finances
•Equipment
FeedbackFeedback
subsyste
m
subsyste
m
subsyste
m
Managerial
subsystem
Transforming inputs to outputs
Open Systems Perspective
McShane/Von Glinow OB 7e
External
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, use,
and storage
McShane/Von Glinow OB 7e

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Adapt to the environment.
Influence to the environment.
Move to a more favorable environment
McShane/Von Glinow OB 7e

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13
Intellectual Capital
McShane/Von Glinow OB 7e
Relationship
Capital
Value derived from satisfied
customers, reliable suppliers, etc.
Structural
Capital
Knowledge captured in systems and
structures
Human
Capital
Knowledge that people possess and
generate

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14 McShane/Von Glinow OB 7e

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15
Organizational Learning Processes
McShane/Von Glinow OB 7e

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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 7e16

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High-Performance Work Practices
Workplace practices that leverage the
potential of human capital
Four HPWPs (likely others)
1.Employee involvement
2.Job autonomy
3.Develop competencies (training, selection)
4.Performance-based rewards
Need to “bundle” them – work best together
McShane/Von Glinow OB 7e17

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18
Corporate Social Responsibility at MTN
At MTN Group, Africa’s largest mobile (cell) phone company,
employees help the community and environment through the
company’s award-winning “21 Days of Y’ello Care” program. This
photo shows MTN employees painting schools during a recent
Y’ello Care event.
McShane/Von Glinow OB 7e

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Stakeholder Perspective
Stakeholders: entities who affect
or are 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 to
satisfy all stakeholder needs
McShane/Von Glinow OB 7e

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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
McShane/Von Glinow OB 7e

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21
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
McShane/Von Glinow OB 7e

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Globalization
Economic, social, and cultural connectivity
with people in other parts of the world
Due to better communication and
transportation systems
Effects of globalization on organizations
Larger markets, lower costs, more innovation
Increasing diversity
Increasing work intensification, less work-life
balance (24/7 schedule)
McShane/Von Glinow OB 7e22

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Increasing Workforce Diversity
Surface-level vs deep-level
diversity
Implications
Better knowledge,
decisions, representation,
financial returns
Manage challenges of
diversity (e.g. teams,
conflict)
Ethical imperative of
diversity
McShane/Von Glinow OB 7e

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Emerging Employment
Relationships
Work/life balance
Minimizing conflict between work and nonwork
demands
Virtual work
Using information technology to perform one’s job
away from the traditional physical workplace
Telecommuting – issues of social isolation, emphasis
on face time, employee self-motivated
McShane/Von Glinow OB 7e24

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Organizational Behavior Anchors
Systematic research anchor
OB knowledge is built on systematic research
Evidence-based management – rely on
research evidence, not fads, untested
assumptions
Multidisciplinary anchor
Many OB concepts adopted from other
disciplines
OB develops its own theories, but scans other
fields
McShane/Von Glinow OB 7e25

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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
McShane/Von Glinow OB 7e26

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27 McShane/Von Glinow OB 7e

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28
The Journey Begins..
This chapter gives you some background
about the field of organizational behavior.
But it’s only the beginning of our journey.
Finally, we shift our focus to the
organizational level of analysis, where the
topics of organizational structure,
organizational culture, and organizational
change are examined in detail.
McShane/Von Glinow OB 7e

29. 1
Introduction to
the Field of
Organizational
Behavior
McShane/Von Glinow OB 7e
© 2015 by McGraw-Hill Education.
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29