Management Course: Discussion Topic

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Introduction to
the Field of
Organizational Behavior

McGraw-Hill/Irwin

McShane/Von Glinow OB 5e

John Lassiter
Chief Creative Officer
of Pixar and Disney

Pixar Animation Studios

OB practices have helped Pixar Animation Studios to become the world’s most successful animation studio
Employee competencies
People-centered
Teamwork and org learning
Constructive conflict

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John Lassiter
Chief Creative Officer
of Pixar and Disney

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

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OB Foundations

Distinct field around the 1940s
OB concepts discussed for more than 2,000 years
Some pivotal scholars before OB formed include:
Max Weber
Frederick Winslow Taylor
Elton Mayo
Chester Barnard (shown)
Mary Parker Follett

Chester Barnard

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Why Study OB?

Satisfy the need to understand and predict
Helps us to test personal theories
Influence behavior – get things done
OB improves an organization’s financial health
OB is for everyone

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Old Perspective of
Organizational Effectiveness

Goal oriented -- Effective firms achieve their stated objectives
No longer accepted as indicator of org effectiveness
Could set easy goals
Some goals too abstract to evaluate
Company might achieve wrong goals

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Four Perspectives of Organizational Effectiveness

Stakeholder Perspective

High-Performance WP Perspective

Organizational Learning Perspective

Open Systems Perspective

NOTE: Need to consider all four perspectives when assessing a company’s effectiveness

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Open Systems Perspective

Organizations are complex systems that “live” within (and depend upon) the external environment
Effective organizations
Maintain a close “fit” with changing conditions
Transform inputs to outputs efficiently and flexibly
Open systems perspective lays the foundation for the other three perspectives or organizational effectiveness

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Open Systems Perspective

Environment

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Feedback

Organizational Learning Perspective

An organization’s 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, and use

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Intellectual Capital

Relationship Capital

Value derived from satisfied customers, reliable suppliers, etc.

Structural Capital

Knowledge captured in systems and structures

Human
Capital

Knowledge that people possess and generate

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Organizational Learning Processes

Applying knowledge to organizational processes in ways that improves the organization’s effectiveness

Distributing knowledge throughout the organization

Extracting information and ideas from its environment as well as through insight

KNOWLEDGE

ACQUISITION

KNOWLEDGE

SHARING

KNOWLEDGE

USE

Examples in practice

Hiring skilled staff

Posting case studies on intranet

Giving staff freedom to try out ideas

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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
Successful companies also unlearn

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High Performance Work Practices (HPWPs)

HPWPs are internal systems and structures that are associated with successful companies

Employees are competitive advantage

Value of employees increased through specific practices.

Maximum benefit when org practices are bundled

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High Performance Work Practices

No consensus, but HPWPs include:

Employee involvement and job autonomy (and their combination as self-directed teams).
Employee competence (training, selection, etc.).
Performance-based rewards

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Stakeholder Perspective

Stakeholders: any entity who affects or is affected by the firm’s objectives and actions
Personalizes the open systems perspective
Challenges with stakeholder perspective:
Stakeholders have conflicting interests
Firms have limited resources

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Stakeholder Perspective

Lockheed Martin is rated by engineering students as an “ideal” employer
Pays attention to its many stakeholders
Relies on values and ethics to guide decisions
Strong emphasis on corporate social responsibility (e.g. photo shows clean-up after hurricane Katrina)

Lockheed Martin

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Stakeholders: Values and Ethics

Values and ethics prioritize stakeholder interests
Values
Stable, evaluative beliefs, guide preferences for outcomes or courses of action in various situations
Ethics
Moral principles/values, determine whether actions are right/wrong and outcomes are good or bad

Lockheed Martin

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Stakeholders and CSR

Stakeholder perspective includes corporate social responsibility (CSR)
Benefit society and environment beyond the firm’s immediate financial interests or legal obligations
Organization’s contract with society
Triple bottom line
Economy, society, environment

Lockheed Martin

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Types of Individual Behavior

Organizational Citizenship

Contextual performance – cooperation and helpfulness beyond required job duties

Task Performance

Goal-directed behaviors under person’s control

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Types of Individual Behavior (con’t)

Maintaining Work Attendance

Attending work at required times

Joining/staying with the Organization

Agreeing to employment relationship; remaining in that relationship

Counterproductive Work Behaviors

Voluntary behaviors that potentially harm the organization

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Globalization

Economic, social, and cultural connectivity with people in other parts of the world
Effects of globalization on organizations
New structures
Increasing diversity
Increasing competitive pressures, intensification

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Increasing Workforce Diversity

Surface-level diversity
Observable demographic and other overt differences in people (e.g. race, ethnicity, gender, age)
Deep-level diversity
Differences in psychological characteristics (e.g. personalities, beliefs, values, and attitudes)
Example: Differences across age cohorts (e.g. Gen-Y)
Implications
Leveraging the diversity advantage
Also diversity challenges (e.g. teams, conflict)
Ethical imperative of diversity

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Employment Relationships

Work/life balance
Minimizing conflict between work and nonwork demands number one indicator of career success
Virtual work
Using information technology to perform one’s job away from the traditional physical workplace
Telework – issues of replacing face time, clarifying employment expectations

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Organizational Behavior Anchors

Multidisciplinary anchor
Many OB concepts adopted from other disciplines
OB develops its own theories, but scans other fields
Systematic research anchor
OB researchers rely on scientific method
Should apply evidence-based management, but…
Bombarded with theories and models
Challenge translating general theories to specific situations
Swayed by consultant marketing
Perceptual biases -- ignoring evidence contrary to our beliefs

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Organizational Behavior Anchors (con’t)

Contingency anchor
A particular action may have different consequences in different situations
Need to diagnose the situation and select best strategy under those conditions
Multiple levels of analysis anchor
Individual, team, organizational level of analysis
OB topics usually relevant at all three levels of analysis

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Introduction to
the Field of
Organizational Behavior

McGraw-Hill/Irwin

McShane/Von Glinow OB 5e

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