Organizational Behavior, 9/E Chapter 1 Introduction to OB

1
Organizational Behavior, 9/EChapter
1Introduction to OB

• Prepared by
• Michael K. McCuddy
• Valparaiso University
• John Wiley Sons, Inc.

2
Chapter 1 Study Questions

• What is organizational behavior and why is it
  important?
• What are organizations like as work settings?
• What is the nature of managerial work?
• How do we learn about organizational behavior?

3
What is organizational behavior and why is it
important?

• Workplace success depends on 
• Respect for people.
• Understanding of human behavior in complex
  organizational systems.
• Individual commitment to flexibility, creativity,
  and learning.
• Individual willingness to change.

4
What is organizational behavior and why is it
important?

• Organizations and their members are challenged
  to 
• Simultaneously achieve high performance and high
  quality of life.
• Embrace ethics and social responsibility.
• Respect the vast potential of demographic and
  cultural diversity among people.
• Recognize the impact of globalization.

5
What is organizational behavior and why is it
important?

• Organizational behavior.
• Study of human behavior in organizations.
• A multidisciplinary field devoted to
  understanding individual and group behavior,
  interpersonal processes, and organizational
  dynamics.

6
What is organizational behavior and why is it
important?
Pick up Figure 1.1 from the textbook.
7
What is organizational behavior and why is it
important?

• Reasons for importance of scientific thinking.
• The process of data collection is controlled and
  systematic.
• Proposed explanations are carefully tested.
• Only explanations that can be scientifically
  verified are accepted.

8
What is organizational behavior and why is it
important?

• Contingency approach.
• Tries to identify how different situations can be
  best understood and handled.
• Important contingency variables include
• Environment.
• Technology.
• Tasks.
• Structure.
• People.

9
What is organizational behavior and why is it
important?

• Modern workplace trends.
• Commitment to ethical behavior.
• Importance of human capital.
• Demise of command and control.
• Emphasis on teamwork.
• Pervasive influence of information technology.
• Respect for new workforce expectations.
• Changing definition of jobs and career.

10
What are organizations like as work settings?

• An organization is a collection of people working
  together in a division of labor to achieve a
  common purpose.

11
What are organizations like as work settings?

• The core purpose of an organization is the
  creation of goods and services.
• Missions and mission statements focus attention
  on the core purpose.
• Mission statements communicate
• A clear sense of the domain in which the
  organizations products and services fit.
• A vision and sense of future aspirations.

12
What are organizations like as work settings?

• A strategy is a comprehensive plan that guides
  organizations to operate in ways that allow them
  to outperform their competitors.
• Key managerial responsibilities include strategy
  formulation and implementation.
• Knowledge of OB is essential to effectively
  strategy implementation.

13
What are organizations like as work settings?
14
What are organizations like as work settings?

• Stakeholders.
• People, groups, and institutions having an
  interest in an organizations performance.
• Customers, owners, employees, suppliers,
  regulators, and local communities are key
  stakeholders.
• Interests of multiple stakeholders sometimes
  conflict.
• Executive leadership often focuses on balancing
  multiple stakeholder expectations.

15
What are organizations like as work settings?

• Organizational culture and diversity.
• Organizational culture refers to the shared
  beliefs and values that influence the behavior of
  organizational members.
• Positive organizational cultures
• Have a high-performance orientation.
• Emphasize teamwork.
• Encourage risk taking.
• Emphasize innovation..
• Respect people and workforce diversity.
• Success in business world is tied to valuing
  diversity.

16
What are organizations like as work settings?

• Organizational effectiveness approaches.
• Systems resource approach focuses on inputs.
• Internal process approach focuses on the
  transformation process.
• Goal approach focuses on outputs.
• Strategic contingencies approach focuses on
  impact on key stakeholders.

17
What are organizations like as work settings?

• Longitudinal views of organizational
  effectiveness.
• Short-run emphasis on goal accomplishment,
  resource utilization, and stakeholder
  satisfaction.
• Intermediate-run emphasis on organizations
  adaptability and development potential.
• Long-run emphasis on survival.

18
What is the natureof managerial work?

• Managers perform jobs that involve directly
  supporting the work efforts of others.
• Managers assume roles such as coordinator, coach,
  or team leader.

19
What is the natureof managerial work?

• The management process.
• An effective manager is one whose organizational
  unit, group, or team consistently achieves its
  goals while its members remain capable,
  committed, and enthusiastic.
• Key results of effective management
• Task performance.
• Job satisfaction.

20
What is the natureof managerial work?
21
What is the natureof managerial work?

• The nature of managerial work.
• Managers work long hours.
• Managers are busy people.
• Managers are often interrupted.
• Managerial work is fragmented and variable.
• Managers work mostly with other people.
• Managers spend a lot of time communicating.

22
What is the natureof managerial work?
23
What is the natureof managerial work?

• Managerial mind-sets.
• Reflective mind-set managing ones self.
• Analytic mind-set managing organizational
  operations and decisions.
• Worldly mind-set managing in a global context.
• Collaborative mind-set managing relationships.
•  Action mind-set managing change.

24
What is the natureof managerial work?

• Managerial skills and competencies.
• A skill is an ability to translate knowledge into
  action that results in a desired performance.
• Categories of skills.
• Technical.
• Human.
• Conceptual.

25
How do we learn about organizational behavior?

• Learning is an enduring change in behavior that
  results from experience.
• Organizational learning is the process of
  acquiring knowledge and utilizing information to
  adapt successfully to changing circumstances.

26
How do we learn about organizational behavior?
.
27
How do we learn about organizational behavior?
28
Organizational Behavior, 9/EChapter 2Current
Issues in OB

• Prepared by
• Michael K. McCuddy
• Valparaiso University
• John Wiley Sons, Inc.

29
Chapter 2 Study Questions

• What is a high-performance organization?
• What is multiculturalism, and how can workforce
  diversity be managed?
• How do ethics and social responsibility influence
  human behavior in organizations?
• What are key OB transitions in the new workplace?

30
What is a high-performance organization?

• High-performance organizations.
• Value and empower people, and respect diversity.
• Mobilize the talents of self-directed work teams.
• Use cutting-edge technologies to achieve success.
  
• Thrive on learning and enable members to grow and
  develop.
• Are achievement-, quality-, and
  customer-oriented, as well as being sensitive to
  the external environment.

31
What is a high-performance organization?

• Stakeholders.
• The individuals, groups, and other organizations
  affected by an organizations performance.
• Value creation.
• The extent to which an organization satisfies the
  needs of strategic constituencies.

32
What is a high-performance organization?
33
What is a high-performance organization?

• Total quality management (TQM).
• A total commitment to
• High-quality results.
• Continuous improvement.
• Customer satisfaction.
• Meeting customers needs.
• Doing all tasks right the first time.
• Continuous improvement focuses on two questions
• Is it necessary?
• If so, can it be done better?

34
What is a high-performance organization?

• Human capital.
• The economic value of people with job-relevant
  abilities, knowledge, ideas, energies, and
  commitments.
• Knowledge workers.
• People whose minds rather than physical
  capabilities create value for the organization.
• Intellectual capital.
• The performance potential of the expertise,
  competencies, creativity, and commitment within
  an organizations workforce.

35
What is a high-performance organization?

• Empowerment.
• Allows people, individually and in groups, to use
  their talents and knowledge to make decisions
  that affect their work.
• Social capital.
• The performance potential represented in the
  relationships maintained among people at work.

36
What is a high-performance organization?

• Learning and high-performance cultures.
• Uncertainty highlights the importance of
  organizational learning.
• High-performance organizations are designed for
  organizational learning.
• A learning organization has a culture that values
  human capital and invigorates learning for
  performance enhancement.

37
What is a high-performance organization?
38
What is multi-culturalism, and how can workforce
diversity be managed?

• Workforce diversity.
• Describes differences among people with respect
  to age, race, ethnicity, gender, physical
  ability, and sexual orientation.
• Multiculturalism.
• Refers to pluralism and respect for diversity and
  individual differences in the workplace.
• Inclusivity.
• The degree to which the organizations culture
  respects and values diversity.

39
What is multi-culturalism, and how can workforce
diversity be managed?

• Diversity biases in the workplace.
• Prejudice.
• Discrimination.
• The glass ceiling effect.
• Sexual harassment.
• Verbal abuse.
• Pay discrimination.

40
What is multi-culturalism, and how can workforce
diversity be managed?
41
What is multi-culturalism, and how can workforce
diversity be managed?

• Managing diversity.
• Developing a work environment and organizational
  culture that allows all organization members to
  reach their full potential.
• A diversity mature organization is created when
• Managers ensure the effective and efficient
  utilization of employees in pursuit of the
  corporate mission.
• Managers consider how their behaviors affect
  diversity.
• Well-managed workforce diversity increases human
  capital.

42
How do ethics and social responsibility influence
human behavior in organizations?

• Ethical behavior.
• Good or right as opposed to bad or wrong
  in a particular setting.
• The public demands that people in organizations
  act according to high moral standards.

43
How do ethics and social responsibility influence
human behavior in organizations?

• Immoral managers.
• Do not subscribe to any ethical principles
  pursuit of self-interest.
• Amoral managers.
• Ethics is simply not on this managers radar
  screen.
• Moral managers.
• Incorporate ethical principles and goals into
  their personal behavior .

44
How do ethics and social responsibility
influence human behavior in organizations?
45
How do ethics and social responsibility influence
human behavior in organizations?

• Ways of thinking about ethical behavior.
• Utilitarian view the greatest good for the
  greatest number of people.
• Individualism view best serving long-term
  self-interests.
• Moral-rights view respects and protects the
  fundamental rights of all human beings.
• Justice view fair and impartial in the
  treatment of all people.

46
How do ethics and social responsibility influence
human behavior in organizations?

• Different types of justice.
• Procedural justice properly following rules
  and procedures in all cases.
• Distributive justice treating people the same
  under a policy, regardless of demographic
  differences.
• Interactional justice treating people affected
  by a decision with dignity and respect.

47
How do ethics and social responsibility influence
human behavior in organizations?

• Ethical dilemmas.
• Occur when someone must choose whether or not to
  pursue a course of action that, although offering
  the potential of personal or organizational
  benefit or both, may be considered unethical.

48
How do ethics and social responsibility influence
human behavior in organizations?

• Rationalizations for unethical behavior.
• Pretending the behavior is not really unethical
  or illegal.
• Saying the behavior is really in the
  organizations or persons best interest.
• Assuming the behavior is acceptable if others
  dont find out about it.
• Presuming that superiors will support and protect
  you.

49
How do ethics and social responsibility influence
human behavior in organizations?

• Organizational social responsibility.
• The obligation of organizations to behave in
  ethical and moral ways as institutions of the
  broader society.
• Managers should commit organizations to
• Pursuit of high productivity.
• Corporate social responsibility.
• A whistleblower exposes others wrongdoings in
  order to preserve high ethical standards.

50
What are key OB transitions in the new workplace?

• Corporate governance and ethics leadership.
• Society expects and demands ethical decisions and
  actions from businesses and other social
  institutions.
• Corporate governance.
• The active oversight of management decisions,
  corporate strategy, and financial reporting by
  Boards of Directors.

51
What are key OB transitions in the new workplace?

• Corporate governance and ethics leadership
  (cont.).
• Ethics leadership.
• Making business and organizational decisions with
  high moral standards that meet the ethical test
  of being good and not bad, and of being
  right and not wrong. .
• Integrity.
• Acting in ways that are always honest, credible,
  and consistent in putting ones values into
  practice.

52
What are key OB transitions in the new workplace?

• Positive organizational behavior.
• Quality of work life.
• The overall quality of human experience in the
  workplace.
• Commitment to quality of work life is an
  important value within organizational behavior.
• Theory Y provides the theoretical underpinnings
  for contemporary quality of work life concepts.

53
What are key OB transitions in the new workplace?

• Positive organizational behavior (cont.).
• Positive organizational behavior focuses on
  practices that value human capacities and
  encourage their full utilization.
• Positive organizational behavior is based on the
  core capacities of
• Confidence.
• Hope.
• Optimism.
• Resilience.

54
What are key OB transitions in the new workplace?

• Globalization, job migration, and organizational
  transformation.
• Globalization.
• The worldwide interdependence of resource flows,
  product markets, and business competition.
• Job migration.
• The shifting of jobs from one nation to another.

55
What are key OB transitions in the new workplace?

• Globalization, job migration, and organizational
  transformation (cont.).
• Global outsourcing.
• Involves employers cutting back on domestic jobs
  and replacing them with contract workers in other
  nations.
• Job migration and global outsourcing have
  contributed to organizations redesigning
  themselves for high performance in a changed
  world.

56
What are key OB transitions in the new workplace?

• Personal management and career planning.
• Shamrock organizations.
• Relatively small core group of permanent,
  full-time employees with critical skills.
• Outside operators contracting to core group to
  perform essential daily activities.
• Part-timers hired by core group on an as-needed
  basis.

57
What are key OB transitions in the new workplace?

• Personal management and career planning (cont.).
• Personal management.
• Understand ones self, exercising initiative,
  accepting responsibility, working well with
  others, and continually learning from experience.
• Self-monitoring.
• Observing and reflecting on ones own behavior
  and acting in ways that adapt to the situation.

58
Organizational Behavior, 9/EChapter 3OB Across
Cultures

• Prepared by
• Michael K. McCuddy
• Valparaiso University
• John Wiley Sons, Inc.

59
Chapter 3 Study Questions

• Why is globalization significant for
  organizational behavior?
• What is culture and how can we understand
  cultural differences?
• How does cultural diversity affect people at
  work?
• What is a global view on organizational learning?

60
Why is globalization significant for
organizational behavior?

• Most organizations must achieve high performance
  within a complex and competitive global
  environment.
• Globalization refers to the complex economic
  networks of international competition, resource
  suppliers, and product markets.

61
Why is globalization significant for
organizational behavior?

• Forces of globalization.
• Rapid growth in information technology and
  electronic communication.
• Movement of valuable skills and investments.
• Increasing cultural diversity.
• Implications of immigration.
• Increasing job migration among nations.
• Impact of multicultural workforces.

62
Why is globalization significant for
organizational behavior?

• Globalization is contributing to the emergence
  of regional economic alliances.
• Important regional alliances.
• European Union (EU).
• North American Free Trade Agreement (NAFTA).
• Asia-Pacific Economic Co-operation Forum (APEC).

63
Why is globalization significant for
organizational behavior?

• Outsourcing.
• Contracting out of work rather than accomplishing
  it with a full-time permanent workforce.
• Off shoring.
• Contracting out work to persons in other
  countries.
• Job migration.
• Movement of jobs from one location or country to
  another.

64
Why is globalization significant for
organizational behavior?

• Global managers.
• Know how to conduct business in multiple
  countries.
• Are culturally adaptable and often multilingual.
• Think with a worldview and are able to map
  strategy in the global context.
• Have a global attitude.
• Have a global mindset.

65
Why is globalization significant for
organizational behavior?

• Culture.
• The learned, shared way of doing things in a
  particular society.
• The software of the mind.
• Helps define boundaries between different groups
  and affects how their members relate to one
  another.
• Cultural intelligence is the ability to identify,
  understand, and act with sensitivity and
  effectiveness in cross-cultural situations.

66
What is culture and how can we understand
cultural differences?

• Language.
• Perhaps the most visible aspect of culture.
• Whorfian hypothesis considers language as a
  major determinant of thinking.
• Low-context cultures the message is conveyed by
  the words used.
• High-context cultures words convey only a
  limited part of the message.

67
What is culture and how can we understand
cultural differences?

• Time orientation.
• Polychronic cultures.
• Circular view of time.
• No pressure for immediate action or performance.
• Emphasis on the present.
• Monochronic cultures.
• Linear view of time.
• Create pressure for action and performance.
• Long-range goals and planning are important.

68
What is culture and how can we understand
cultural differences?

• Use of space.
• Proxemics.
• The study of how people use space to communicate.
• Reveals important cultural differences.
• Concept of personal space varies across cultures.
• Space is arranged differently in different
  cultures.

69
What is culture and how can we understand
cultural differences?

• Religion.
• A major element of culture.
• Can be a very visible aspect of culture.
• Influences codes of ethics and moral behavior.
• Influences conduct of economic matters.

70
What is culture and how can we understand
cultural differences?

• Values and national culture.
• Cultures vary in underlying patterns of values
  and attitudes.
• Hofstedes five dimensions of national culture
• Power distance.
• Uncertainty avoidance.
• Individualism-collectivism.
• Masculinity-femininity.
• Long-term/short-term orientation.

71
What is culture and how can we understand
cultural differences?

• Power distance.
• The willingness of a culture to accept status and
  power differences among members.
• Respect for hierarchy and rank in organizations.
• Example of a high power distance culture
  Indonesia.
• Example of a low power distance culture Sweden.

72
What is culture and how can we understand
cultural differences?

• Uncertainty avoidance.
• The cultural tendency toward discomfort with risk
  and ambiguity.
• Preference for structured versus unstructured
  organizational situations.
• Example of a high uncertainty avoidance culture
  France.
• Example of a low uncertainty avoidance culture
  Hong Kong.

73
What is culture and how can we understand
cultural differences?

• Individualism-collectivism.
• The cultural tendency to emphasize individual or
  group interests.
• Preferences for working individually or in
  groups.
• Example of an individualistic culture United
  States.
• Example of a collectivist culture Mexico.

74
What is culture and how can we understand
cultural differences?

• Masculinity-femininity.
• The tendency of a culture to value stereotypical
  masculine or feminine traits.
• Emphasizes competition/assertiveness versus
  interpersonal sensitivity/relationships.
• Example of a masculine culture Japan.
• Example of a feminine culture Thailand.

75
What is culture and how can we understand
cultural differences?

• Long-term/short-term orientation.
• The tendency of a culture to emphasize
  future-oriented values versus present-oriented
  values.
• Adoption of long-term or short-term performance
  horizons.
• Example of a long-term orientation culture
  South Korea.
• Example of a short-term orientation culture
  United States.

76
What is culture and how can we understand
cultural differences?
77
What is culture and how can we understand
cultural differences?

• Understanding cultural differences helps in
  dealing with parochialism and ethnocentrism.
• Parochialism assuming that the ways of ones
  own culture are the only ways of doing things.
• Ethnocentrism assuming that the ways of ones
  culture are the best ways of doing things.

78
What is culture and how can we understand
cultural differences?
79
What is culture and how can we understand
cultural differences?

• Cultural differences in handling relationships
  with other people.
• Universalism versus particularism.
• Relative emphasis on rules and consistency, or on
  relationships and flexibility.
• Individualism versus collectivism.
• Relative emphasis on individual freedom and
  responsibility, or on group interests and
  consensus.

80
What is culture and how can we understand
cultural differences?

• Cultural differences in handling relationships
  with other people (cont.).
• Neutral versus affective.
• Relative emphasis on objectivity and detachment,
  or on emotion and expressed feelings.
• Specific versus diffuse.
• Relative emphasis on focused and narrow
  involvement, or on involvement with the whole
  person.

81
What is culture and how can we understand
cultural differences?

• Cultural differences in handling relationships
  with other people (cont.).
•  Achievement versus prescription.
• Relative emphasis on performance-based and earned
  status, or on ascribed status.

82
What is culture and how can we understand
cultural differences?

• Cultural differences in attitudes toward time.
• Sequential view of time.
• Time is a passing series of events.
• Synchronic view of time.
• Time consists of an interrelated past, present,
  and future.

83
What is culture and how can we understand
cultural differences?

• Cultural differences in attitudes toward the
  environment.
• Inner-directed cultures.
• Members view themselves as separate from nature
  and believe they can control it.
• Outer-directed cultures.
• Members view themselves as part of nature and
  believe they must go along with it.

84
How does cultural diversity affect people at
work?

• Multinational corporation (MNC).
• A business firm that has extensive international
  operations in more than one foreign country.
• Have a total world view without allegiance to any
  one national home.
• Have enormous economic power and impact.
• Bring benefits and controversies to host
  countries.

85
How does cultural diversity affect people at
work?

• Multicultural workforces and expatriates.
• Styles of leadership, motivation, decision
  making, planning, organizing, and controlling
  vary from country to country.
• Expatriates.
• People who live and work abroad for extended
  periods of time.
• Can be very costly for employers.
• Progressive employers take supportive measures to
  maximize potential for expatriate success.

86
How does cultural diversity affect people at work?
87
How does cultural diversity affect people at
work?

• Ethical behavior across cultures.
• Ethical challenges result from
• Cultural diversity.
• Variations in governments and legal systems.
• Prominent current issues.
• Corruption and bribery.
• Poor working conditions.
• Child and prison labor.
• Business support of repressive governments.
• Sweatshops.

88
How does cultural diversity affect people at
work?
89
How does cultural diversity affect people at
work?

• Advice regarding cultural relativism and ethical
  absolutism.
• Multinational businesses should adopt core or
  threshold values that respect and protect
  fundamental human rights.
• Beyond the threshold, businesses should adapt and
  tailor actions to respect the traditions,
  foundations, and needs of different cultures.

90
What is a global view on organizational
learning?

• Organizational learning.
• The process of acquiring the knowledge necessary
  to adapt to a changing environment.
• Global organizational learning.
• The ability to gather from the world at large the
  knowledge required for long-term organizational
  adaptation.

91
What is a global view on organizational
learning?

• Are management theories universal?
• Answer is no.
• Cultural influences should be carefully
  considered in transferring theories and their
  applications across cultures.

92
What is a global view on organizational
learning?

• Best practices around the world.
• Global organizational learning should identify
  best practices around the world.
• Potential high-performance benchmarks exist
  throughout the world.
• Cultural diversity enriches global organization
  learning.