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Introduction
to
the Field of
Organizationa
l Behavior
Quicken Loans
Quicken Loans has become one
of Americas most successful
companies through high
involvement, a focus on
creativity, a strong culture, and
other effective organizational
behavior practices.
1-2
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
1-3
1-4
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
1-5
Four Perspectives of
Organizational Effectiveness
Open Systems Perspective
Organizational Learning
Perspective
High-Performance WP Perspective
Stakeholder Perspective
NOTE: Need to consider all four perspectives when
assessing a companys effectiveness
1-6
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
1-7
Open Systems
Perspective
External
Environment
subsystem
sub
sys
m te
materials
te
sys
sub
m
Raw
Technological
subsystem
Accountin
g
subsyste
m
y ste
subs
m
Human
resources
subsystem
g
si n m
ha
rc ste
Pu bsy
su
Information
Finances
Equipment
Feedback
t
ys
bs
su em
Transforming
inputs to
Engineerin
g
outputs
subsyste
m
Manageria
l
subsystem
Productio
n
subsyste
m
te
ys
bs
u
s
m
Sociali
zati
subsys on
tem
Marketing /
Sales
subsystem
l
ura
Cult stem
sy
sub
Products/service
s
Shareholder
dividends
Community
support
Waste/pollution
Feedback
1-8
Organizational Learning
Perspective
An organizations 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
1-9
Intellectual Capital
Human
Capital
Structural
Capital
Relationship
Capital
1-10
Organizational Learning
Processes
Knowledge
Knowledge
Acquisition
Acquisition
Knowledge
Knowledge
Sharing
Sharing
Learning
Learning
Communicating
Communicating
Scanning
Scanning
Info
Info systems
systems
Grafting
Grafting
Internal
Internallearning
learning
Training
Training
Experimenting
Experimenting
Observing
Observing
Knowledge
Knowledge
Use
Use
Awareness
Awareness of
of
knowledge
knowledge
Sense
Sense making
making
(locating
(locating
knowledge)
knowledge)
Knowledge
Knowledge
Storage
Storage
Human
Human memory
memory
Documentation
Documentation
Practices/habits
Practices/habits
Databases
Databases
Autonomy
Autonomy to
to
apply
apply knowledge
knowledge
1-11
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
1-12
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
1-13
Stakeholder Perspective
Stakeholders: entities who
affect or are affected by the
firms 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
1-15
Ethics
Moral principles/values,
determine whether actions are
right/wrong and outcomes are
good or bad
1-16
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)
1-18
Increasing Workforce
Diversity
Surface-level vs deeplevel diversity
Implications
Better knowledge,
decisions, representation,
financial returns
Manage challenges of
diversity (e.g. teams,
conflict)
Ethical imperative of
diversity
1-19
Emerging Employment
Relationships
Work/life balance
Minimizing conflict between work and nonwork
demands
Virtual work
Using information technology to perform ones
job away from the traditional physical workplace
Telecommuting issues of social isolation,
emphasis on face time, employee self-motivated
1-20
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
1-21
Organizational Behavior
Anchors (cont)
Contingency anchor
A particular action may have different
consequences in different situations
Need to diagnose the situation and select
best strategy under those conditions
1-22