Organizational Behavior:“The systematic study of the actions and attitudes that people exhibit in organizations.”
- Systematic study
- Multiple levels—individual, group/team, organization
- Varying “depth”—behaviors, attitudes, values
- All different kinds of organizations
Goal is to be able to explain, predict and control/shape human behavior
Psychology: Seeks to measure, explain and change behavior
Social Psychology: Focuses on the influence of people on one another
Sociology: Studies people in groups, in relation to their fellow human beings
Anthropology: Studies societies to learn about human beings and their activities
Political Science: Studies the behavior of individuals and groups within a political environment
Top “Derailers” That Cause One to Fail*
Insensitivity to others (Most important predictor if someone is going to be successful.)
Poor working relations
Inability to build or lead a team
Inability to change and adapt
Human Relations Movement
Increasing numbers of studies/writings from behavioral scientists focusing on the “human” factor
Management looking for other ways to manage the workforce
McGregor’s “The Human Side of the Enterprise” and his “Theory Y” (1960)
McGregor’s “Theory Y” (vs. “Theory X”)
Theory X” Assumptions
- People dislike work and
avoid it whenever possible
- People need to be coerced
- People require close
supervision at all times
- Most people prefer to be
directed, have little ambition
and avoid responsibility
“Theory Y” Assumptions
- Work is seen as a natural
activity, like play or rest
- Given objectives, people can
be very self-directed
- People become committed to
objectives with some reward
- Most people are ambitious
and can accept (and seek
“Human Capital” is “The sum of the skills, knowledge, and general attributes of the people in the organization”.
(A Key Strategic Asset)
Value: Is what they do valuable?
Rareness: Is their skill rare?
Imitability: Can anyone do it? Competitive Advantage= f (Value, Rareness, Imitability)
Critical to an organization’s success
Addresses the competitive challenges faced by the organization
A plan for integrating goals, tactics, policies and actions into a meaningful whole
Has two primary elements
- Strategy Formulation
- Strategy Implementation
“SWOT Analysisis a commonly-used tool here:
Internal Analysis -Strengths
External Analysis - Opportunities
Galbraith’s “Star Model” Focuses on 5 critical elements of organization functioning:
1. Strategy: What is our plan? **Always the 1st thing to be determined.
2. Structure: Make several structure plans
3. Systems & Processes: How do we implement it?
4. Metrics & Rewards: What do we track?
5. People: Who do we use in the organization?
*All elements of the Star Model need to be in alignment with each other for the organization to be successful.
Three Critical Organization Planning Processes
Strategic Plan (Strat Plan): Describes an organization’s long-term strategies, goals and objectives. Time frame is typically 5+ years.
Annual Operating Plan(AOP): Describes an organization’s short-term strategies, goals and objectives for the given/upcoming year. Time frame is typically 1 year.
Human Resource Plan(HRP): Describes an organization’s human resource capabilities with regard the short- and long-term goals and objectives, with recommended actions as needed.
Current Strategic Issues Involving HRM:
Mergers and Acquisitions (M&A)
“Offshoring”: Same company done in a different country
Business Process Outsourcing (BPO): Call centers, IT done by a different company in a different country
Organization Culture: “The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments”.
OR – “The values shared by associates in an organization”. OR – “What it’s like to be a member of this organization”.
Four Primary Functions of Culture
Give members an organizational identity - Sense of belonging, how to behave, treat one another, etc.
Facilitate collective commitment- Shared purpose, objectives; goal-based behavior
Promote social system stability - Systems/processes for dealing with change, managing conflict, etc.
Promote understanding of the organization -Shapes behavior and helps members see a “clear line of “sight” between what they do and business goals/success
Values are a Fundamental Part of Culture
Values: Broad concepts or beliefs that guide attitudes and behavior
Five primary characteristics
1. They are broad concepts or beliefs
2. They relate to desirable end-states, behaviors, situations, etc.
3. They apply across most/all situations
4. They influence attitudes and behaviors
5. They can be ordered by relative importance
Attitudes: Ideas about specific things, situation or idea.
Behaviors: What we say or do; easily observable
*Values influence attitude & behaviors; Behavior influenced by attitudes & values; Attitude is shaped by values
Espoused vs. Enacted Values and Culture
Espoused Values: The values that the organization states that it believes in (e.g., in mission statements,)
Enacted Values:The values that organization members perceive to be valued by the organization—the “reality”.
*The greater the difference between espoused values and enacted values, the greater the likelihood for dissatisfaction, cultural problems, etc.
*Need to “walk the walk”, not just “talk the talk.”
One View of Organization Culture Dimensions
Innovation and Risk Taking: Are employees encouraged to take risks?
Attention to Detail: Are employees expected to be detailed/precise?
Outcome Orientation: Is focus on outcomes or processes?
People Orientation: Does management take people into consideration?
Team Orientation: Is work organized around teams or individuals?
Aggressiveness: Are people aggressive/competitive or “laid back”?
Stability: Is emphasis on growth or on maintaining the status quo?
What is Organizational Socialization?
“The process by which a person learns the values, norms, and required behaviors which permit him/her to participate as a member of the organization”.
OR –“The impact of the organization on the individual.” OR –“Learning the ropes!”
Tactics for Socialization
Collective vs. Individual: Group vs. individual socialization experiences
Formal vs. Informal: Extent of separation from “regular” members
Sequential vs. Random: Specific progression vs. ambiguous process
Fixed vs. Variable: Extent to which there is an established timetable
Serial vs. Disjunctive: Extent to which regular members are involved
Investiture vs. Divestiture: Extent of retention of “former identity”
Diversity vs. Inclusion
Diversity: The individual differences that make people different from, and similar to, each other.
Inclusion: The extent to which the vast diversity of organizational members is brought together in a meaningful way to increase success (individual, group and organizational).
Some Benefits of Diversity/Inclusiveness
Less likelihood of “groupthink” and other bad decisions
Increased awareness of broad customer base
More interesting, engaging and developmental work environment
Decreased likelihood of legal problems
Better preparation for increased global business focus
Necessary to be an “Employer of Choice” in changing workforce
Increased ability to recruit additional diverse individuals
Ethnocentrism and Global Diversity
Ethnocentrism: Belief that one’s native country, culture, language and behavior are superior to that of others.
Hofstede’s Cultural Dimensions
Cultures (and people) can be characterized using five basic dimensions related to cultural beliefs:
Assertiveness vs. Nurturing
Long-Term vs. Short-Term Orientation
The 9 GLOBE Cultural Dimensions
Power Distance: Extent to which power is distributed equally or not
Uncertainty Avoidance: Extent of comfort with uncertainty/ambiguity
Societal Collectivism: Extent of reward for individual vs. group focus
In-Group Collectivism: Extent of individual’s pride/loyalty for the larger group
Gender Egalitarianism: Extent of gender discrimination/role inequality
Assertiveness: Extent of confrontation/attempt to control in relationships
Future Orientation: Extent of focus on the future vs. the present
Performance Orientation: Extent to which performance is rewarded
Humane Orientation: Extent to which kindness, generosity, etc. rewarded
Communication: High Context vs. Low Context
High-Context Cultures: Situational and non-verbal cues carry tremendous meaning
- China - Japan -Korea - Mexico - Saudi Arabia
Low-Context Cultures: Meaning based primarily on verbal and written communication
- United States - Canada - Many European Countries (including Germany, France)
- Netherlands, Norway, Sweden
Domestic Strategy: Firm tailors its products and services to the needs of its own country
Multidomestic Strategy: Firm tailors its products and services to the needs of each country or region and grants great deal of power to managers and associates in those regions
Global Strategy:Firm provides standard products and services to all parts of the world and maintains strong degree of central control in the home country
Transnational Strategy:Firm tailors its products and services to some degree but also seeks some degree of standardization for cost purposes
An expatriate is a person temporarily or permanently residing in a country and culture other than that of the person's upbringing or legal residence.
Current Use of Expatriates
Very expensive for companies—generally 2x-4x normal costs
Many companies moving away from use of expatriates in favor of local nationals—focus increasingly on developmental benefits
Global Leadership Attributes
Leader Attributes universally Liked: Trustworthy, Motivational, Decisive,Team Builder
Leader Attributes Universally Disliked: Loner, Egocentric, Dictatorial, Uncooperative
Like/Dislike Contingent on Country Culture: Subdued, Cunning, Sensitive, Self-Effacing, Provocateur
Some Important Terms…
Attitude: A persistent tendency to feel and behave in a favorable or unfavorable way toward a specific person, object, or idea.
Self-Esteem: A belief about one’s own self worth based on an overall self-evaluation.
Self-Efficacy: A person’s belief about his/her chances of successfully accomplishing a specific task.
Learned Helplessness: “A debilitating lack of faith in one’s own ability to control a situation.”
Self-Monitoring: Observing one’s own behavior and appropriately adapting it to the demands/needs of the situation.
Self Management :Consciously monitoring and evaluating situational cues as well as results and consequences of actions taken to continuously learn, change behavior, and improve yourself.
Locus of Control: Extent to which someone believes outcomes in their life are influenced largely by external events (external locus of control) vs. their own behaviors and actions (internal locus of control).
Intelligence: “One’s capacity for constructive thinking, reasoning, and problem solving.” One’s ability to learn.
Emotional Intelligence:“The ability to manage one’s own self and interact with others in mature and constructive ways.”
Three Basic Components of Attitudes
Affective:Feelings, mood states, and emotions about the object, person, etc.
Behavioral: Intention to act in certain ways toward the object, person, etc.
Cognitive: Specific information, data, facts about the object, person, etc.
Attitudes are formed through variety of means, including
-learning from experiences and/or interactions with others
-self-perceptions/observations of one’s own behavior
-consistency with attitudes of others
Personality Dimensions—The “Big 5”
Openness to Experience
Outgoing, talkative, sociable, assertive
Trusting, good natured, cooperative, “softhearted”
Dependable, responsible, persistent, achievement-oriented
Relaxed, secure, unworried
Intellectual, imaginative, curious, Broad-minded
Seven Major Mental Abilities
Understanding what words mean and readily comprehending what is read (SAT,ACT)
Ability to produce isolated words that fulfill symbolic or structural requirements
Ability to make quick and accurate arithmetic computations such as adding and subtracting
Ability to perceive spatial patterns and to visualize how geometric shapes would look if transformed in shape or position (Military)
Having good memory for paired words, symbols, lists of numbers or other associated items
Ability to perceive figures, identify similarities and differences, and carry out tasks involving visual perception
Ability to reason from specifics to general conclusions
Components of Emotional Intelligence (EQ)
Being a catalyst for change
Teamwork and collaboration
Improving Your Emotional Intelligence