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Chapter 1

BUS 2090 Chapter 1

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Department
Business
Course
BUS 2090
Professor
c
Semester
Summer

Description
CHAPTER 1 W HAT ARE O RGANIZATIONS? Organizations: 
 Social inventions for accomplishing common goals through group effort. SOCIAL INVENTIONS • Essential characteristics of organization is the coordinated presence of people, not necessarily things (i.e. service organizations who do not produce tangible products, depend on people to create business) • The field of organizational behavior is about understanding people and managing them to work efficiently. G OALA CCOMPLISHMENT • The field of organizational behavior is concerned with how organizations can survive and adapt to change. To accomplish this, certain behaviors are necessary: o Be motivated to join and remain in the organization o Carry out their best work reliably, in terms of productivity, quality, and service o Be willing to continuously learn and upgrade their knowledge and skills o Be flexible and innovative (especially important to contemporary organizations) G ROUPE FFORT • Organizations depend on interaction and coordination among people to accomplish their goals. • Informal grouping evolves when people interact in an organizations, this has a strong impact on goal achievement. • The field of organizational behavior is concerned with how to get people to practice effective teamwork. W HAT ISORGANIZATIONAL BEHAVIOR ? Organizational behavior: 
 The attitudes and behaviors of individuals and groups in organizations. • OB studies these and provides insight about effectively managing and changing them. OB also studies how organizations can be structured more effectively and how events in their external environment affect organizations. • Attitude: how satisfied people are with their jobs, how committed they are to organizational goals, how they supportive they are in promoting women/minorities into managerial positions. • Behaviors: cooperation, conflict, innovation, resignation, ethics W HY STUDY ORGANIZATIONAL BEHAVIOR ? O RGANIZATIONAL BEHAVIOR ISINTERESTING • Help us understand why employees become committed to an organization and what motivates them to work hard, and how this makes an organization extremely successful. O RGANIZATIONAL BEHAVIOR ISIMPORTANT • OB is important to managers, employees and consumers, and understanding it can make us more effective managers, employees, or consumers. • Explains the difference between successful and failed organizations who had similar goals. O RGANIZATIONAL BEHAVIOR M AKES AD IFFERENCE 1 • Today, the main factor that differentiates organizations is their workforce or human capital, and the most successful organizations are those that effectively manage their employees. (Sustained competitive advantage and organizational effectiveness are increasingly related to OB) • Management practices and organizational behavior not only influence employee attitudes and behavior, but also have an effect on an organization’s effectiveness. H OW M UCH DO YOU KNOW ABOUT O RGANIZATIONAL BEHAVIOR ? • Personalities of effective leaders vary a fair amount, many people prefer routine jobs, managers are not well informed about the pay of their peers and superiors, workers underestimate their own absenteeism, and pay is not always the most effective way to motivate workers and improve job performance. These may not work for all occupations; we can predict which ones they will work for. • Common sense develops through unsystematic and incomplete experiences with organizational behavior. G OALS OFORGANIZATIONAL BEHAVIOR • OB has a number of commonly agreed upon goals PREDICTING ORGANIZATIONAL B EHAVIOR • The very regularity of behavior in organizations permits the prediction of its future occurrence. • The field of OB provides a scientific foundation that helps improve predictions of organizational events. EXPLAINING ORGANIZATION B EHAVIOR • OB is especially interested in determining why people are more or less motivated, satisfied, or prone to resign. • Behavior could have many different cause and it can also change over time. M ANAGING ORGANIZATIONAL BEHAVIOR Management:
 The art of getting things accomplished in organizations through others. Managers acquire, allocate, and utilize physical and human resources to accomplish goals. • if behavior can be predicted or explained, it can also be controlled or managed. EARLY PRESCRIPTIONS CONCERNING M ANAGEMENT • Classical view and the human relations view THE CLASSICAL VIEW AND BUREAUCRACY Classical viewpoint: 
 An early prescription on management that advocated high specialization of labor, intensive coordination, and centralized decision making. • Experienced managers or consultants who took the time to write down their thoughts on organizing. • Centralized decision making from upper management Scientific Management: 
 Frederick Taylor’s system for using research to determine the optimum degree of specialization and standardization of work tasks. • Supported the development of written instructions that clearly define work procedures. • Supervisors specialized in particular functions. Bureaucracy: Max Weber’s ideal type of organization that included a strict chain of command, detailed rules, high specialization, centralized power, and selection and promotion based on technical competence. • this model would standardize behavior in organizations and provide workers with security and a sense of purpose. THE H UMAN RELATIONS M OVEMENT AND AC RITIQUE OFBUREAUCRACY 2 Hawthorne studies: 
 Research conducted at the Hawthorne plant of Western Electric in the 1920s and 1930s that illustrated how psychological and social processes affect productivity and work adjustment. Human relations movement: 
 A critique of classical management and bureaucracy that advocated management styles that were more participative and oriented toward social and psychological employee needs. C ONTEMPORARY M ANAGEMENT – THE CONTINGENCY A PPROACH Contingency approach:
 An approach to management that recognizes that there is no one best way to manage, and that an appropriate management style depends on the demands of the situation. W HAT DO MANAGERS DO ? M ANAGERIAL ROLES • Interpersonal roles (figurehead, leader, liaison): expected behaviors that have to do with establishing and maintaining interpersonal relations. Figurehead; symbol of organization i.e. signing papers. Leadership; select, mentor, reward and discipline employees. Liaison; maintain contacts
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