PSY 3113 Chapter 1

- Become a better employee

- Become a better manager

- Understand how people behave and why they do what they do

- Help you focus on developing a global mindset

Studying OB can help you: (4)

Motivated, engaged employees whose goals align with business

strategy

-

Strong leadership and direction

-

Better bottom lines

Organizations that successfully implement OB principles have: (3)

Planning

Organizing

Leading

Controlling

The 4 Management Functions

human, financial, physical, and information

Resources Used By Managers

Planning

Determining an organization's desired future position and the best means of getting there

Organizing

Designing jobs, grouping jobs into units, and establishing patterns of authority between jobs and units

Leading

Getting the organization's members to work together toward the organization's goals

Controlling

Monitoring and correcting the actions of the organization and its members to keep them directed toward their goals

technical, interpersonal, conceptual, diagnostic

Critical Managerial Skills (4)

Technical Skills

The skills necessary to accomplish specific tasks within the organization

Interpersonal Skills

to communicate with, understand, and motivate individuals and groups.

Conceptual Skills

the manager's ability to think in the abstract. A manager with this is able to see the "big picture." That is, he or she can see opportunity where others see roadblocks or problems.

Diagnostic Skills

allow managers to better understand cause-and-effect relationships and to recognize the optimal solutions to problems.

Human Resource Management (HRM)

The set of organizational activities directed at attracting, developing, and

maintaining an effective workforce

Competitive advantage

An organization's edge over rivals in attracting customers and defending itself against competition

innovation, distribution, speed, convenience, first to market, cost, service, quality, branding

Sources of Competitive Advantage (9)

Innovation

Developing new products, services, and markets and improving current ones.

Distribution

dominating these channels to block competition

Speed

Excelling at getting your product or service to consumers quickly

Convenience

Being the easiest for customers to do business with

First to Market

Introducing products and services before competitors

Cost

Being the lowest-cost provider

Service

Providing the best customer support before, during, or after the sale

Quality

Providing the highest-quality product or service

Branding

Developing the most positive image

Cost Leadership

Striving to be the lowest-cost producer for a particular level of product quality.

Cost Leadership

This strategy emphasizes on operational excellence

Operational Excellence

Maximizing the efficiency of the manufacturing/product development process to minimize costs

Differentiation

Developing a product or service that has unique characteristics valued by customers

Organizational behavior

the study of human behavior in:

- organizational settings,

- the interface between human behavior and the organization,

- the organization itself

Differentiation

This strategy emphasizes on product innovation

Product Innovation

developing new products or services

Specialization

Focusing on a narrow market segment or niche and pursuing either a differentiation or cost leadership

strategy within that market segment.

Specialization

This strategy emphasizes on customer loyalty.

Customer loyalty

delivering unique and customizable products or services to meet customers'

needs.

Growth Strategy

Company expansion organically or through acquisitions

Scientific Management

-

First formal study of OB (1890s), abandoned after WWI

-

Maximized productivity but led to monotonous, dehumanizing conditions

Hawthorne Effect

the alteration(improvement) of behavior by the subjects of a study due to their awareness of being observed.

Human Relations Movement

Viewed organizations as cooperative systems

-

Treated workers' orientations, values, and feelings as important parts of

organizational dynamics and performance

-

Created a new era of more humane, employee-centered management

and highlighted the importance of people to organizational success

-

But was hampered by unsound research methods

Systems Perspective

An interrelated set of elements that function as a whole—inputs are

combined/transformed by managers into outputs from the system

Situational Perspective

suggests that in most organizations, situations and outcomes are influenced by other variables

Universal Model

Presumes a direct cause-and-effect linkage between variables

Complexities of human behavior and organizational settings make universal conclusions virtually impossible

Interactionalist Perspective

Focuses on how individuals and situations interact continuously to

determine individuals' behavior

-

Attempts to explain how people select, interpret, and change various

situations

Enhance behaviors and attitudes

-

Promote citizenship

-

Minimize dysfunctional behaviors

-

Drive strategic execution

Managers' goals (4)

Productivity

▪ Narrow measure of efficiency: number of products or services created per

unit of input

Performance

▪ Broader concept made up of all work-related behaviors

Commitment

▪ The degree to which an employee considers himself or herself a true

member of the organization, overlooks minor sources of dissatisfaction,

and intends to stay with the organization

Organizational citizenship

-

Behaviors that make a positive overall contribution to the organization

-

Encompasses all factors outside the strict requirements of the job

Dysfunctional behaviors

-

Behaviors that detract from, rather than contribute to, organizational

performance

Strategic execution

-

The degree to which managers and their employees understand and

carry out the actions needed to achieve strategic goals

-

Assessed at the individual/group level, the organizational level, and in

terms of financial performance

Intuition

the ability to understand something immediately, without the need for conscious reasoning.

Scientific Method

a useful approach to learning more

about organizational behavior.

theory

is a collection of verbal and symbolic assertions that specify

how and why variables are related, and the conditions under which they

should and should not relate.

hypothesis

is a written prediction specifying expected relationships

between certain variables.

independent variable

is the variable the researchers set

dependent variable

is the variable the researchers measure

Correlation

—the strength of the relationship between the two variables

perfect positive relationship

A +1 correlation is called?

perfect negative correlation

A -1 correlation is called?

meta-analysis

is used to combine the results of many different research studies done for a variety or organizations and jobs