1 Chapter 1 Introduction Prepared by Sohail Ayaz 03006088501 Institute of Social Sciences [email protected] Organizational Behavior.

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Chapter 1 Introduction

Prepared bySohail Ayaz

03006088501Institute of Social Sciences

[email protected]

Organizational Behavior

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What Would You Do?

Amazon grew so fast that it lost control of the basics

Sales were growing, but the company was poorly managed

Amazon has lost over $3 billion since its inception, but is finally earning profits

Headquarters, Amazon.com, Seattle, Georgia.

How can Amazon do a better job to fix what’s going wrong?

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What Is Management?

After reading the next two sections, you should be able to:

1. describe what management is.

2. explain the four functions of management.

4

Management Is…

EffectivenessEffectiveness

EfficiencyEfficiencyGetting workGetting workdone throughdone through

othersothers

Getting workGetting workdone throughdone through

othersothers

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© 2005 Prentice Hall Inc. All rights reserved.

1–5

Enter Organizational Behavior

Organizational behavior (OB)

A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.

1-6

Organizational Performance

Efficiency A measure of how well or how productively

resources are used to achieve a goal

Effectiveness A measure of the appropriateness of the goals

an organization is pursuing and the degree to which they are achieved.

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8

Management Functions

Planning

Organizing

Leading

Controlling

Planning

Organizing

Leading

Controlling

Management Functions

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Planning

2.12.1

Planning

Determining organizational goals and a means for achieving them

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Organizing

Deciding where decisions will be made

Who will do what jobs and tasks

Who will work for whom

2.22.2

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Leading

MotivatingMotivating

InspiringInspiring

LeadingLeadingLeadingLeading

2.32.3

For Anne Mulcahy, CEO of Xerox,

the key to successful leadership is

communicating with the company’s

most important constituents:

employees and customers.

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Controlling

2.42.4

Controlling

Monitoring progress toward goal achievement and taking corrective action when needed

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The Control Process

2.42.4

Set standards toachieve goals

Compare actualperformance to

standards

Make changesto return

performance tostandards

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What Do Managers Do?

After reading the next two sections, you should be able to:

3. describe different kinds of managers.

4. explain the major roles and subroles that managers perform in their jobs.

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Levels of Management

Top Managers

Middle Managers

First-Line Managers

Team Leaders

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1-16

Levels of Management

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Top Managers

33.13.1

Chief Executive Officer (CEO)

Chief Operating Officer (COO)

Chief Financial Officer (CFO)

Chief Information Officer (CIO)

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Responsibilities of Top Managers

Creating a context for changeCreating a context for change

Developing commitmentand ownership in employees

Developing commitmentand ownership in employees

Creating a positive organizational culture through language and action

Creating a positive organizational culture through language and action

Monitoring their business environmentsMonitoring their business environments

3.13.1

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Middle Managers

33.23.2

Plant Manager

Regional Manager

Divisional Manager

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Responsibilities of Middle Managers

3.23.2

Coordinate and link groups, departments, and divisions

Coordinate and link groups, departments, and divisions

Monitor and manage the performance of subunits and managers who report to them

Monitor and manage the performance of subunits and managers who report to them

Implement changes or strategies generated by top managers

Implement changes or strategies generated by top managers

Plan and allocate resources to meet objectivesPlan and allocate resources to meet objectives

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First-Line Managers

33.33.3

Office Manager

Shift Supervisor

Department Manager

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Responsibilities of First-Line Managers

3.33.3

Manage the performance of entry-level employees

Manage the performance of entry-level employees

Encourage, monitor, and reward the performance of workers

Encourage, monitor, and reward the performance of workers

Teach entry-level employees how to do their jobsTeach entry-level employees how to do their jobs

Make detailed schedules and operating plansMake detailed schedules and operating plans

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Responsibilities of Team Leaders

Facilitate team performanceFacilitate team performance

Facilitate internal team relationshipsFacilitate internal team relationships

3.43.4

Manage external relations Manage external relations

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Managerial Roles

H. Mintzberg, “The Manager’s Job: Folklore and Fact:.” Harvard Business Review, July-August 1975.

Adapted from Exhibit 1.444

Interpersonal Informational DecisionalFigurehead

Leader

Liaison

Monitor

Disseminator

Spokesperson

Entrepreneur

Disturbance Handler

Resource Allocator

Negotiator

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Managerial Roles

Figurehead

Leader

Liaison

Figurehead

Leader

Liaison

Managers perform ceremonial duties

Managers motivate and encourageworkers to accomplish objectives

Managers deal with people outsidetheir units

Managers perform ceremonial duties

Managers motivate and encourageworkers to accomplish objectives

Managers deal with people outsidetheir units

4.14.1

Interpersonal Roles

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Managerial Roles

4.24.2

Monitor

Disseminator

Spokesperson

Monitor

Disseminator

Spokesperson

Managers scan their environmentfor information

Managers share information with others in their company

Managers share informationwith others outside their departments or companies

Managers scan their environmentfor information

Managers share information with others in their company

Managers share informationwith others outside their departments or companies

Informational Roles

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Entrepreneur

Disturbance Handler

Resource Allocator

Negotiator

Entrepreneur

Disturbance Handler

Resource Allocator

Negotiator

Managerial Roles

4.34.3

Managers adapt to incremental change

Managers respond to problems thatdemand immediate action

Managers decide who gets what resources

Managers negotiate schedules, projects, goals, outcomes, resources, and raises

Managers adapt to incremental change

Managers respond to problems thatdemand immediate action

Managers decide who gets what resources

Managers negotiate schedules, projects, goals, outcomes, resources, and raises

Decisional Roles

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What Does It Take to Be a Manager?

After reading the next three sections, you should be able to:

5. explain what companies look for in managers.

6. discuss the top mistakes that managers make in their jobs.

7. describe the transition that employees go through when they are promoted to management.

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What Companies Look for in Managers

Technical SkillsTechnical Skills Human SkillsHuman Skills

Conceptual Skills

Conceptual Skills

Motivation to ManageMotivation to Manage

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What Companies Look for in Managers

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Skills are more or less important at different levels of management:

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Mistakes Managers Make

Adapted from Exhibit 1.6McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983

1. Insensitive to others1. Insensitive to others

2. Cold, aloof, arrogant2. Cold, aloof, arrogant

3. Betrayal of trust3. Betrayal of trust

4. Overly ambitious 4. Overly ambitious

5. Specific performance problems with the business5. Specific performance problems with the business

6. Overmanaging: unable to delegate or build a team6. Overmanaging: unable to delegate or build a team

7. Unable to staff effectively7. Unable to staff effectively

8. Unable to think strategically 8. Unable to think strategically

9. Unable to adapt to boss with different style9. Unable to adapt to boss with different style

10. Overdependent on advocate or mentor10. Overdependent on advocate or mentor

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The First Year Management Transition

Be the boss

Formal authority

Manage tasks

Job is not managing people

Be the boss

Formal authority

Manage tasks

Job is not managing people

Initial expecta-tions were wrong

Fast pace

Heavy workload

Job is to beproblem-solverand troubleshooter

Initial expecta-tions were wrong

Fast pace

Heavy workload

Job is to beproblem-solverand troubleshooter

No longer “doer”

Communication,listening, positivereinforcement

Learning to adaptand control stress

Job is peopledevelopment

No longer “doer”

Communication,listening, positivereinforcement

Learning to adaptand control stress

Job is peopledevelopment

Managers’Initial Expectations

After Six MonthsAs a Manager

After a YearAs a Manager

Adapted from Exhibit 1.7

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Why Management Matters

After reading this section, you should be able to:

8. explain how and why companies can create competitive advantage through people.

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Management Practices in Top Performing CompaniesManagement Practices in Top Performing Companies

Competitive Advantage through People

Adapted from Exhibit 1.8

1. Employment Security1. Employment Security

2. Selective Hiring2. Selective Hiring

3. Self-Managed Teams and Decentralization3. Self-Managed Teams and Decentralization

4. High Wages Contingent on Organizational Performance 4. High Wages Contingent on Organizational Performance

5. Training and Skill Development5. Training and Skill Development

6. Reduction of Status Differences6. Reduction of Status Differences

7. Sharing Information7. Sharing Information

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Competitive Advantage through People

J.M. Smucker Company has been on Fortune’s list of 100 Best Companies to Work For since the list was started in 1998. Smucker’s has extremely low employee turnover and extremely high employee satisfaction.

Tim and Richard Smucker are pictured here.

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Competitive Advantage through People

Competitive Advantages of Well-Managed Companies

Competitive Advantages of Well-Managed Companies

Sales RevenuesSales Revenues ProfitsProfits

Stock Market Returns

Stock Market Returns

Customer SatisfactionCustomer Satisfaction

88http://www.greatplacetowork.com/best/list-bestusa.htmWeb Link