Unformatted text preview: Leadstar -‐ Producing Transformative Global Leaders Leadstar College of
Graduate Faculty of Business and Leadership
MBA and MAL Module Organizational Behavior Module 1 Leadstar -‐ Producing Transformative Global Leaders Table of Contents
LEARNING OBJECTIVES 8 THE MEANING OF ORGANIZATIONAL BEHAVIOR EXHIBIT 1 THE NATURE OF ORGANIZATIONAL BEHAVIOR HISTORICAL ROOTS OF ORGANIZATIONAL BEHAVIOR SCIENTIFIC MANAGEMENT CLASSICAL ORGANIZATION THEORY 8 9 10 10 11 THE EMERGENCE OF ORGANIZATIONAL BEHAVIOR 12 PRECURSORS OF ORGANIZATIONAL BEHAVIOR THE HAWTHORNE STUDIES HUMAN RELATIONS MOVEMENT EXHIBIT 2 THEORY X AND THEORY TOWARD ORGANIZATIONAL BEHAVIOR 12 12 13 14 15 CONTEMPORARY ORGANIZATIONAL BEHAVIOR 15 CHARACTERISTICS OF THE FIELD THE IMPORTANCE OF ORGANIZATIONAL BEHAVIOR CONTEXTUAL PERSPECTIVES ON ORGANIZATIONAL BEHAVIOR SYSTEMS AND CONTINGENCY PERSPECTIVES EXHIBIT 3 UNIVERSAL VERSUS CONTINGENCY APPROACHES 15 16 17 17 18 LEARNING OBJECTIVES 20 MANAGERIAL PERSPECTIVES ON ORGANIZATIONAL BEHAVIOR 20 MANAGEMENT FUNCTIONS, ROLES, AND SKILLS 22 MANAGERIAL FUNCTIONS MANAGERIAL ROLES MANAGERIAL SKILLS MANAGERIAL CHALLENGES CHALLENGE 1: THE CHANGING SOCIAL AND CULTURAL ENVIRONMENT CHALLENGE 2: THE EVOLVING GLOBAL ENVIRONMENT CHALLENGE 4: SHIFTING WORK AND EMPLOYMENT RELATIONSHIPS 22 23 23 24 24 26 27 MANAGING FOR EFFECTIVENESS 28 INDIVIDUAL-‐LEVEL OUTCOMES GROUP-‐ AND TEAM-‐LEVEL OUTCOMES ORGANIZATION-‐LEVEL OUTCOMES 29 29 30 LEARNING OBJECTIVES 31 WHAT IS MOTIVATION? A DEFINITION 32 MOTIVATING BY MEETING BASIC HUMAN NEEDS 32 Organizational Behavior Module 2 Leadstar -‐ Producing Transformative Global Leaders MASLOW'S NEED HIERARCHY THEORY EXHIBIT 1 NEED HIERARCHY THEORY ALDERFER’S ERG THEORY EQUITY THEORY: THE IMPORTANCE OF BEING FAIR EXPECTANCY THEORY: BELIEVING YOU CAN GET WHAT YOU WANT 33 33 35 35 38 THREE COMPONENTS OF MOTIVATION 38 THE ROLE OF MOTIVATION IN PERFORMANCE 40 PROCEDURAL JUSTICE THEORY 41 GOAL SETTING: TAKING AIM AT PERFORMANCE TARGETS ASSIGN SPECIFIC GOALS ASSIGN DIFFICULT, BUT ACHIEVABLE, PERFORMANCE GOALS PROVIDE FEEDBACK CONCERNING GOAL ATTAINMENT 41 41 42 42 DESIGNING JOBS THAT MOTIVATE 43 JOB ENLARGEMENT: DOING MORE OF THE SAME KIND OF WORK JOB ENRICHMENT: INCREASING REQUIRED SKILLS AND RESPONSIBILITIES 43 44 THE JOB CHARACTERISTICS MODEL 44 LEARNING OBJECTIVES 49 WHAT IS AN ATTITUDE? A DEFINITION 50 JOB SATISFACTION: FEELINGS ABOUT OUR WORK 51 THEORIES OF JOB SATISFACTION AND THEIR IMPLICATIONS 51 CONSEQUENCES OF JOB DISSATISFACTION 53 TIPS FOR BOOSTING JOB SATISFACTION 54 ATTACHMENT TO COMPANIES: ORGANIZATIONAL COMMITMENT 55 VARIETIES OF ORGANIZATIONAL COMMITMENT 56 WHY STRIVE FOR A COMMITTED WORKFORCE? 57 APPROACHES TO DEVELOPING ORGANIZATIONAL COMMITMENT 57 NEGATIVE ATTITUDES TOWARD CO-‐WORKERS: PREJUDICE 58 ANATOMY OF PREJUDICE: BASIC DISTINCTIONS 59 SEXUAL HARASSMENT 61 LEARNING OBJECTIVES 64 THE BASIC NATURE OF COMMUNICATION 65 Organizational Behavior Module 3 Leadstar -‐ Producing Transformative Global Leaders THE COMMUNICATION PROCESS AND ITS ROLE IN ORGANIZATIONS ORAL AND WRITTEN COMMUNICATION: THE POWER OF WORDS 65 66 FORMAL AND INFORMAL COMMUNICATION 68 FORMAL COMMUNICATION: MESSAGES DIRECTED THROUGH ORGANIZATIONAL STRUCTURE 69 INFORMAL COMMUNICATION: BEYOND THE ORGANIZATION CHART 71 STRATEGIES FOR IMPROVING ORGANIZATIONAL COMMUNICATION 72 OB IN ACTION — THE CONSEQUENCES OF POOR LISTENING SKILLS 75 POWER: HAVING AN IMPACT ON OTHERS EXHIBIT 4 TIPS FOR IMPROVING YOUR LISTENING SKILLS 75 75 INFLUENCE THAT COMES FROM THE INDIVIDUAL: PERSONAL POWER 78 ORGANIZATIONAL POLITICS: POSSIBLE ABUSES OF POWER 80 THE NATURE OF GROUPS 83 WHAT IS A GROUP? FORMAL AND INFORMAL GROUPS 84 85 GROUP DEVELOPMENT OVER TIME: THE FIVE-‐STAGE MODEL 86 GROUP DYNAMICS: PEOPLE WORKING WITH OTHERS 86 GROUP NORMS: UNSPOKEN RULES OF GROUP BEHAVIOR 87 SOCIAL FACILITATION: PERFORMING IN THE PRESENCE OF OTHERS 88 TEAMS: EMPOWERED WORK GROUPS 92 EXHIBIT 4 TEAMS VERSUS TRADITIONAL WORK STRUCTURES: SOME KEY DISTINCTIONS 93 WORK TEAMS: WHAT IS THE PAYOFF? 95 TEAMS AT WORK: HOW GOOD IS THEIR TRACK RECORD? OBSTACLES TO TEAM EFFECTIVENESS AND HOW TO OVERCOME THEM 95 95 IMPORTANT ORGANIZATIONAL GROUPS 97 LEARNING OBJECTIVES 99 WHAT IS LEADERSHIP? 99 THE TRAIT APPROACH: ARE SOME PEOPLE REALLY "BORN LEADERS"? 101 EXHIBIT 1 CHARACTERISTICS OF SUCCESSFUL LEADERS 101 THE BEHAVIOR APPROACH: WHAT DO LEADERS DO? 103 Organizational Behavior Module 4 Leadstar -‐ Producing Transformative Global Leaders TWO CRITICAL LEADERSHIP BEHAVIORS 103 LEADERS AND FOLLOWERS 104 THE LEADER-‐MEMBER EXCHANGE (LMX) MODEL: THE IMPORTANCE OF BEING IN THE "IN-‐GROUP" 104 CHARISMATIC LEADERS: THAT "SOMETHING SPECIAL" 105 TRANSFORMATIONAL LEADERSHIP: BEYOND CHARISMA 106 LEADING TEAMS: SPECIAL CONSIDERATIONS 107 CONTINGENCY THEORIES OF LEADER EFFECTIVENESS 108 LEARNING OBJECTIVES 114 PROSOCIAL BEHAVIOR: HELPING OTHERS 115 ORGANIZATIONAL CITIZENSHIP BEHAVIOR: ABOVE AND BEYOND JOB REQUIREMENTS EXHIBIT 1 WHISTLE-‐BLOWING: SIX RECENT CASES 115 117 COOPERATION: PROVIDING MUTUAL ASSISTANCE 119 COOPERATION WITHIN ORGANIZATIONS 119 CONFLICT: THE INEVITABLE RESULT OF INCOMPATIBLE INTERESTS 121 CAUSES OF CONFLICT 122 CONFLICT MANAGEMENT TECHNIQUES 125 STRESS IN ORGANIZATIONS 127 WHAT IS STRESS? CAUSES OF STRESS 127 128 MAJOR EFFECTS OF ORGANIZATIONAL STRESS 131 MANAGING STRESS: SOME EFFECTIVE TECHNIQUES 133 LEARNING OBJECTIVES 134 THE BASIC NATURE OF ORGANIZATIONAL DECISION MAKING 135 A GENERAL MODEL OF DECISION MAKING 135 VARIETIES OF ORGANIZATIONAL DECISIONS 137 APPROACHES TO DECISION MAKING IN ORGANIZATIONS 140 THE RATIONAL-‐ECONOMIC MODEL: IN SEARCH OF THE IDEAL DECISION 140 EXHIBIT 3 THE RATIONAL-‐ECONOMIC MODEL VERSUS THE ADMINISTRATIVE MODEL 141 IMPEDIMENTS TO OPTIMAL INDIVIDUAL DECISIONS 142 COGNITIVE BIASES IN DECISION-‐MAKING: FRAMING AND HEURISTICS 142 Organizational Behavior Module 5 Leadstar -‐ Producing Transformative Global Leaders ESCALATION OF COMMITMENT: THROWING GOOD MONEY AFTER BAD 144 ORGANIZATIONAL BARRIERS TO EFFECTIVE DECISIONS 145 THE ROLE OF INFORMATION TECHNOLOGY 146 GROUP DECISIONS: DO TOO MANY COOKS SPOIL THE BROTH? 146 GROUP DECISIONS: A DOUBLE-‐EDGED SWORD 146 THE NOMINAL GROUP TECHNIQUE 151 THE CHALLENGE OF MAKING ETHICAL DECISIONS 152 WHY DO PEOPLE MAKE UNETHICAL DECISIONS IN ORGANIZATIONS? 152 LEARNING OBJECTIVES 155 ORGANIZATIONAL CULTURE: ITS BASIC NATURE 156 ORGANIZATIONAL CULTURE: A DEFINITION AND CORE CHARACTERISTICS CULTURES WITHIN ORGANIZATIONS: ONE OR MANY? CULTURE'S ROLE IN ORGANIZATIONS 156 157 158 THE FORMATION AND MAINTENANCE OF ORGANIZATIONAL CULTURE 158 HOW IS ORGANIZATIONAL CULTURE CREATED? 158 TOOLS FOR TRANSMITTING CULTURE 159 THE EFFECTS OF ORGANIZATIONAL CULTURE WHY AND HOW DOES ORGANIZATIONAL CULTURE CHANGE? 161 162 CREATIVITY IN INDIVIDUALS AND TEAMS 163 COMPONENTS OF INDIVIDUAL AND TEAM CREATIVITY 164 THE PROCESS OF INNOVATION 165 COMPONENTS OF INNOVATION: BASIC BUILDING BLOCKS 166 STAGES OF THE ORGANIZATIONAL INNOVATION PROCESS 167 LEARNING OBJECTIVES 169 STRUCTURAL DIMENSIONS OF ORGANIZATIONS 170 HIERARCHY OF AUTHORITY 170 COMPARING SPAN OF CONTROL IN ORGANIZATION CHARTS 173 DEPARTMENTALIZATION: WAYS OF STRUCTURING ORGANIZATIONS 175 FUNCTIONAL ORGANIZATIONS: DEPARTMENTALIZATION BY TASK PRODUCT ORGANIZATIONS: DEPARTMENTALIZATION BY TYPE OF OUTPUT 175 176 Organizational Behavior Module 6 Leadstar -‐ Producing Transformative Global Leaders EXHIBIT 3 A PRODUCT ORGANIZATION 177 MATRIX ORGANIZATIONS: DEPARTMENTALIZATION BY BOTH FUNCTION AND PRODUCT 177 THE HORIZONTAL ORGANIZATION: STRUCTURING BY PROCESS 179 EXHIBIT 5 THE HORIZONTAL ORGANIZATION CLASSICAL AND NEOCLASSICAL APPROACHES: THE QUEST FOR THE ONE BEST DESIGN THE CONTINGENCY APPROACH: DESIGN BASED ON ENVIRONMENTAL CONDITIONS 180 180 181 MINTZBERG'S FRAMEWORK: FIVE ORGANIZATIONAL FORMS 183 THE BOUNDARYLESS ORGANIZATION: A NEW CORPORATE ARCHITECTURE 185 CONGLOMERATES: DIVERSIFIED "MEGACORPORATIONS" STRATEGIC ALLIANCES: JOINING FORCES FOR MUTUAL BENEFIT 187 188 LEARNING OBJECTIVES 190 FORCES FOR ORGANIZATIONAL CHANGE 191 PLANNED CHANGE 191 EXHIBIT 1 PLANNED AND UNPLANNED ORGANIZATIONAL CHANGES 192 UNPLANNED CHANGE 193 THE PROCESS OF ORGANIZATIONAL CHANGE: FOUR BASIC QUESTIONS 194 TARGETS: WHAT IS CHANGED? 194 READINESS FOR CHANGE: WHEN WILL ORGANIZATIONAL CHANGE OCCUR? 196 WHY IS ORGANIZATIONAL CHANGE RESISTED? 196 HOW CAN RESISTANCE TO ORGANIZATIONAL CHANGE BE OVERCOME? 198 1. SURVEY FEEDBACK EXHIBIT 2 SURVEY FEEDBACK 2. QUALITY OF WORK LIFE PROGRAMS 3. MANAGEMENT BY OBJECTIVES 4. TEAM BUILDING EXHIBIT 3 TEAM BUILDING 200 201 201 202 203 204 SPECIAL ISSUES IN ORGANIZATIONAL DEVELOPMENT 204 THE EFFECTIVENESS OF ORGANIZATIONAL DEVELOPMENT: DOES IT REALLY WORK? IS ORGANIZATIONAL DEVELOPMENT INHERENTLY UNETHICAL? A DEBATE 204 205 Organizational Behavior Module 7 Leadstar -‐ Producing Transformative Global Leaders CHAPTER 1 AN INTRODUCTION TO ORGANIZATIONAL BEHAVIOR LEARNING OBJECTIVES After reading this chapter you will be able to:
• Define organizational behavior.
Trace the historical roots of organizational behavior.
Discuss the emergence of contemporary organizational behavior, including its
precursors, the Hawthorne studies, and the human relations movement.
Describe contemporary organizational behavior—its characteristics, concepts, and
Identify and discuss contextual perspectives on organizational behavior.
What is an organization? An organization is defined as a collection of people who
work together to achieve a wide variety of goals. Organizational behavior is
defined as the actions and attitudes of people in organizations. The field of
organizational behavior (OB) covers the body of knowledge derived from these
actions and attitudes. It can help managers understand the complexity within
organizations, identify problems, determine the best ways to correct them, and
establish whether the changes would make a significant difference.
In this chapter, we begin with a comprehensive definition of organizational
behavior and a framework for its study. We then trace the field’s historical roots
and its emergence as an independent field. Next, we discuss contemporary
organizational behavior and present an overview of the rest of this book. Finally,
we examine several contextual perspectives that provide the general framework
from which we can develop a more comprehensive examination of human
behavior at work. The Meaning of Organizational Behavior Organizational behavior (OB) is the study of human behavior in organizational
settings, how human behavior interacts with the organization, and the
organization itself. Although we can focus on any one of these three areas
independently, we must remember that all three are ultimately connected and
necessary for a comprehensive understanding of organizational behavior. For
example, we can study individual behavior (such as the behavior of a company’s
CEO or of one of its employees) without explicitly considering the organization.
But because the organization influences and is influenced by the individual, we Organizational Behavior Module 8 Leadstar -‐ Producing Transformative Global Leaders cannot fully understand the individual’s behavior without knowing something
about the organization. Similarly, we can study an organization without focusing
specifically on each individual within it. But again, we are looking at only one
piece of the puzzle. Eventually, we must consider the other pieces to understand
Exhibit 1 illustrates this view of organizational behavior. It shows the linkages among
human behavior in organizational settings, the individual-organization interface, the
organization, and the environment surrounding the organization. Each individual brings
to an organization a unique set of personal characteristics, experiences from other
organizations, and personal background. Therefore, organizational behavior must look at
the unique perspective that each individual brings to the work setting. For example,
suppose that Texas Instruments hires a consultant to investigate employee turnover. As a
starting point, the consultant might analyze the types of people the firm usually hires. The
goal of this analysis would be to learn as much as possible about the nature of the
company’s workforce from the standpoint of the individual—their expectations, their
personal goals, and so forth.
EXHIBIT THE NATURE OF ORGANIZATIONAL BEHAVIOR 1 Individuals do not work in isolation. They come in contact with other people and with the
organization in a variety of ways. Points of contact include managers, coworkers, the
formal policies and procedures of the organization, and various changes implemented by
the organization. Over time, the individual changes as a function of both personal
experiences and maturity and of work experiences with the organization. The
organization, in turn, is affected by the presence and eventual absence of the individual.
Clearly, then, the study of organizational behavior must consider the ways in which the
individual and the organization interact. Thus, the consultant studying turnover at Texas
Instruments might choose to look at the orientation procedures for newcomers to the
organization. The goal of this phase of the study would be to understand some of the
dynamics of how incoming individuals interact within the broader organizational context.
An organization, of course, exists before a particular person joins it and continues to exist
long after he or she has left. Therefore, the organization itself represents a crucial
perspective from which to view organizational behavior. For instance, the consultant
studying turnover would also need to study the structure and culture of Texas
Instruments. An understanding of factors such as the performance evaluation and reward
systems, the decision-making and communication patterns, and the design of the firm
itself can provide additional insight into why some people decide to stay while others
elect to leave.
Clearly, the field of organizational behavior can be both exciting and complex. Myriad
variables and concepts impact the interactions described, and together these factors can
greatly complicate a manager’s ability to understand, appreciate, and manage others in an
organization. However, they can also provide unique opportunities to enhance personal Organizational Behavior Module 9 Leadstar -‐ Producing Transformative Global Leaders and organizational effectiveness. The key, of course, is understanding. To provide some
groundwork for understanding, we look first at the historical roots of organizational
behavior. Historical Roots of Organizational Behavior Many disciplines, such as physics and chemistry, are literally thousands of years old.
Management has also been around in one form or another for centuries. For example, the
writings of Aristotle and Plato abound as references and examples of management
concepts and practices. But because serious interest in the study of management did not
emerge until the turn of the twentieth century, organizational behavior is only a few
One reason for the relatively late development of management as a scientific field is that
very few large business organizations existed until around a hundred years ago. Although
management is just as important to a small organization as it is to a large one, large firms
provided both a stimulus and a laboratory for management research. Second, many of the
initial players interested in studying organizations were economists. Economists initially
assumed that management practices are by nature efficient and effective; therefore, they
concentrated on higher levels of analysis such as national economic policy and industrial
structures rather than on the internal structure of companies. Scientific Management One of the first approaches to the study of management, popularized during the early
1900s, was scientific management. Individuals who helped develop and promote
scientific management included Frank and Lillian Gilbreth (whose lives are portrayed in
a book and a subsequent movie, Cheaper by the Dozen), Henry Gantt, and Harrington
Emerson. But the person commonly associated with scientific management is Fredric W.
Early in his life, Taylor developed an interest in efficiency and productivity. While
working as a foreman at Midvale Steel Company in Philadelphia from 1878 to 1890, he
noticed a phenomenon, which he named “soldiering”—employees’ working at a pace
much slower than their capabilities. Because managers had never systematically studied
jobs in the plant and, in fact, had very little idea on how to gauge worker productivity,
they were completely unaware of this phenomenon.
To counteract the effects of soldiering, Taylor developed several innovative techniques.
First, he scientifically studied all the jobs at the Midvale plant and developed a
standardized method for performing each one. He also installed a piece-rate pay system
in which each worker was paid for the amount of work he completed during the workday
rather than for the time spent on the job. (Taylor believed that money was the only
significant motivational factor in the workplace.) These two innovations resulted in a Organizational Behavior Module 10 Leadstar -‐ Producing Transformative Global Leaders marked increase in productivity and serve as the foundation of scientific management as
we know it.
After leaving Midvale, Taylor spent several years working as a management consultant
for industrial firms. At Bethlehem Steel Company, he developed several efficient
techniques for loading and unloading rail cars. At Simonds Rolling Machine Company,
he redesigned jobs, introduced rest breaks to combat fatigue, and implemented a piecerate pay system. In every case, Taylor claimed his ideas and methods greatly improved
worker output. His book, Principles of Scientific Management, published in 1911, was
greeted with enthusiasm by practicing managers and quickly became a standard
Scientific management quickly became a mainstay of business practice. It facilitated job
specialization and mass production, consequently influencing the U.S. business system in
profound ways. Taylor had his critics, though. Laborers opposed scientific management
because of its explicit goal of getting more output from workers. Congress investigated
Taylor’s methods and ideas because some argued that his incentive system would
dehumanize the workplace and reduce workers to little more than drones. Later theorists
recognized that Taylor’s views on employee motivation were inadequate and narrow.
And recently there have been allegations that Taylor falsified some of his research
findings and paid someone to do his writing for him. Nevertheless, scientific management
represents an important milestone in the development of management thought. Classical Organization Theory During the same era, another perspective on management theory and practice was also
emerging. Generally referred to as classical organization theory, this perspective is
concerned with structuring organizations effectively. Whereas scientific management
studied how individual workers could be made more efficient, classical organization
theory focused on how a large number of workers and managers could be most
effectively organized into an overall structure.
Major contributors to classical organization theory included Henri Fayol, Lyndall
Urwick, and Max Weber. Weber, the most prominent of the three, proposed a
“bureaucratic” form of structure that he believed would work for all organizations.
Although today the term bureaucracy conjures up images of paperwork, red tape, and
inflexibility, Weber’s model of bureaucracy embraced logic, rationality, and efficiency.
Weber assumed that the bureaucratic structure would always be the most efficient
approach. (Such a blanket prescription represents what is now called a universal
approach.) A bureaucracy is an organizational structure in which tasks are ...
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