Organizational Behavior &

Management
John M. Ivancevich
Michael T. Matteson
Organizational Behavior McGRAW-HILL 10TH

Evaluation
Attendance, In-class
discussion, Mid-term exam, 40%
Group presentation
Final exam 60%
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Chapter 1 Learning Objectives

• Summarize key contributions from the evolution of

Introduction to Organizational
Behavior
management.
• Discuss why it is important to understand organizational
behavior.
• Explain how systems theory relates to organizational
effectiveness.
• Analyze the environmental forces affecting today's
management practices.
• Understand how to frame the study of organizational
behavior.

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1
 Organizational Behavior
“OB is the study of the impact that individual,
groups, and organizational structure and
processes have on behavior within
organizations.”
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The Evolution of Management
• Industrialization in the U.S.
– A new industrial era began in the U.S. around the time
of the Civil War (early 1860s).
– Managers attempted to better plan, organize, and
control the work of their organizations.
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The Evolution of Management
• Early History of Management
– Early on, management was a process of trial and error
with little or no theory and virtually no sharing of ideas
or practices.
• Industrial Revolution in England
– Management of the workshops of England was
characterized by an emphasis on efficiency, strict
controls, and rigid rules and procedures
The Evolution of Management
• Scientific Management
– Frederick Taylor, an engineer, in 1886, applied
scientific methods to jobs in an attempt to
maximize the output of workers.
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The Evolution of Management
• Henri Fayol
– Developed the first comprehensive statement of
a general theory of management in 1916 .
– Defined the functions of management as
planning, organizing, commanding,
coordination, and controlling.
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The Importance of Studying
Organizational Behavior (OB)
•OB is a way of thinking.
•OB is multidisciplinary
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The Importance of Studying
Organizational Behavior (OB)
• Why do employees behave as they do in organizations?
• Why is one individual or group more productive than
another?
• Why do managers continually seek more effective ways to
design jobs and delegate authority?
• Why are some organizations (e.g., Netflix) more
innovative than others (e.g., Blockbuster)?
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 The Importance of Studying
Organizational Behavior (OB)
• There is a distinctly humanistic orientation
with OB.
• The field of OB is performance oriented.
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Leaders and Organizational
Behavior
• Social responsibility, cultural diversity,
ethics, global competitiveness, social
networking, and reengineering
• Consumers are placing on value
• Domestic and global markets and
competition
• Everything is constantly changing
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The Importance of Studying
Organizational Behavior (OB)
•The scientific method is used to study OB
variables and relationships.
•The field is application oriented
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The Hawthorne Studies
• The Hawthorne studies provoked many
managers and academics to focus on
employees' need , attitudes, and behaviors.
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4
 The Hawthorne Studies The Hawthorne Studies
• Illumination Study at Western Electric Plant • Bank Wiring Room Study
– Uncovered the “Hawthorne Effect” – Discovered that the behavior of an individual
• Workers felt important because someone was worker is modified by the influence of his or
observing and studying them at work. Thus, they her work group.
produced more because they were observed and
studied.

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The Hawthorne Studies Organizational Structure and Design

• Overall Conclusions • Organizational Processes

– Economic rewards don’t totally explain worker – A number of behavioral processes contribute to
behavior. effective organizational performance including
– Workers respond to: leadership, communication, decision making,
• Group norms and organizational change and development.
• Social pressures
• Observation

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5
 Effectiveness in Organizations Systems Theory

• The Goal Approach • Systems theory suggests that an

– In the view of this approach, an organization organization is a managed system that
exists to accomplish goals. changes inputs into outputs.
• The Systems Approach – It enables managers to describe the behavior of
organizations both internally and externally
– Systems theory enables you to describe the
behavior of organizations both internally and
externally.

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The Basic Elements of a System Systems Theory

• Two Main Conclusions

– Effectiveness criteria must reflect the entire
Inputs Process Outputs
input-process-output cycle, not simply output.
– Effectiveness criteria must reflect the
interrelationships between the organization and
its outside environment.
Environment

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6
 Quality Productivity
• To survive, organizations must provide high quality and • Productivity reflects the relationship between
reliable products and services, as well as treat customers in inputs and output
a close-to-perfect manner
• The measures of productivity, such as profit, sales,
• Total quality control (TQC).
market share, students graduated, patients
• Quality is defined as meeting customers needs and
expectations. released, documents processed, clients serviced,
and the like.

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Efficiency
• Efficiency is defined as the ratio of outputs to
inputs.
• The measures of efficiency are rate of return on
capital or assets, unit cost, scrap and waste,
downtime, occupancy rates. and cost per patient,
per student, or per client.
Satisfaction
• Organization as a social system requires
that some consideration be given to the
benefits received by its participants as well
as by its customers and clients.
• Measures of satisfaction include employee
attitudes, turnover, tardiness, and grievance

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7
 Adaptiveness Development

• The organization can and does respond to • The ability of the organization increases its
internal and external changes capacity to deal with environmental demands
• Ineffectiveness in achieving production,
efficiency, and satisfaction can signal the need
to adapt managerial practices and policies.

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Forces Reshaping the Process of

Management Power of human resources

• The organization's ability to get things done

in the way it wants them to be done.
• The way managers and employees work,
think, and behave exerts a major influence
on the overall effectiveness and success of
an organization.

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8
 Globalism
• Globalism is characterized by networks that
interconnect countries, institutions, and people
• How well a firm recruits, selects, retains, and
motivates a skilled workforce will have a major
impact on its ability to compete in the more
globally interdependent worldwide
Cultural Diversity
• As workforce changes, managers and co-workers
need to continuously learn more about each other
so that a productive and respectful work culture is
created and nurtured.

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Speed of change Psychological contract

• Rapid change is found in many areas of • An unwritten agreement between an

business, including technology, employee and the organization that specifies
demographics, globalism, and new products what each expects to give to and receive
and services from the other.

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 Technology

• Technology is the processes that convert

raw materials or intellectual capital into
products or services
• The technology of an organization
influences the workflow, structure, systems.
and philosophy of the organization to a
significant degree

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