Chapter 1 a strategic approach to organizational behavior
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Chapter 1 A Strategic Approach To Organizational Behavior. Michael A. Hitt C. Chet Miller Adrienne Colella. Slides by Ralph R. Braithwaite. George Zimmer. Exploring Behavior in Action. Strategic Use of Human Capital.

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Chapter 1 A Strategic Approach To Organizational Behavior

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Chapter 1 a strategic approach to organizational behavior

Chapter 1A Strategic Approach To Organizational Behavior

Michael A. Hitt

C. Chet Miller

Adrienne Colella

Slides by Ralph R. Braithwaite


Strategic use of human capital

George Zimmer

Exploring Behavior in Action

Strategic Use of Human Capital

George Zimmer effectively uses his human capital. His company has a core set of beliefs:

  • Work should be fulfilling

  • Workplaces should be fearless and energized

  • Work and family life should be balanced

  • Leaders should serve followers

  • Employees should be treated like customers

  • People should not be afraid to make mistakes

What are your thoughts about these beliefs?

Why has Men’s Wearhouse been more successfulthan similar businesses? Why do you think other businesses have not been able to imitate their success?


Knowledge objectives

Knowledge Objectives

  • Define organizational behavior and explain the strategic approach to OB.

  • Provide a formal definition of organization.

  • Describe the nature of human capital.

  • Discuss the conditions under which human capital is a source of competitive advantage for an organization.

  • Describe positive organizational behavior and explain how it can contribute to associates’ productivity.

  • Explain the five characteristics of high-involvement management and the importance of this approach to management.


Basic elements of strategic organizational behavior

Basic Elements of Strategic Organizational Behavior

OrganizationalBehavior

ManagingOrganizationalBehavior

Strategic OBApproaches


The strategic lens

The Strategic Lens

Studying organizational behavior with a strategic lens is important because:

  • Helps to focus on major issues critical to the direction of the organization.

  • Helps with managing people at all levels of the organization.

  • Looks at the various skills needed to effectively manage the organization and its associates.


Strategic approach

Organizational Factors

Organizational Success

Productivity of Individuals and Groups

Satisfaction of Individuals and Groups

Individual Factors

Interpersonal Factors

Strategic Approach

Adapted from Exhibit 1-1: Factors and Outcomes of a Strategic Approach to Organizational Behavior


Senior managers

Senior Managers

Activities

Skills

  • Discuss – vision, strategy, and other major issues

  • Conceptualizing

  • Communicating

  • Understanding the perspectives of others

  • Help middle managers define or redefine roles and manage conflict

  • Listening

  • Conflict management

  • Negotiating

  • Motivating

  • Create and maintain the organization’s culture

  • Interpersonal influence


Middle managers

Middle Managers

Activities

Skills

  • Champion strategic ideas and help firm to remain adaptive

  • Networking

  • Communicating

  • Influencing

  • Process data and information for use by other individuals

  • Analyzing

  • Communicating

  • Deliver strategic initiatives to lower-level managers

  • Communicating

  • Motivating

  • Understanding values

  • Managing stress


Lower level managers

Lower-Level Managers

Activities

Skills

  • Coach the organization’s associates

  • Teaching

  • Listening

  • Understanding personalities

  • Managing stress

  • Remove obstacles for associates

  • Deal with personal problems of associates

  • Negotiating

  • Influencing others

  • Counseling

  • Understanding personalities

  • Design jobs, team structures, and reward systems

  • Negotiating

  • Group dynamics


Behavioral science disciplines

Behavioral Science Disciplines

Psychology

CulturalAnthropology

SocialPsychology

Economics

Sociology


Foundations of strategic ob

Foundations of Strategic OB

Strategic approach

  • Integrates knowledge from all these disciplines

  • Focuses on behaviors and processes – competitive advantage and financial success


Summary of importance of ob

Summary of Importance of OB

  • Complexities and subtleties in leveraging capabilities of people

  • Avoid allure of seeking simple answers to resolve organizational issues

  • Integrates important behavioral science knowledge within an organizational setting and emphasizes application


An organization

An Organization

A collection of individuals forming a coordinated system of specialized activities for the purpose of achieving certain goals over some extended period of time.


Common features of organizations

Common Features of Organizations

  • Network of individuals

  • System

  • Coordinated activities

  • Division of labor

  • Goal orientation

  • Continuity over time


Creating innovation

Steve Jobs

Creating Innovation

  • Do you agree that Apple is the “creative king” as described by Business Week? Why or why not?

  • What can other companies learn from Apple’s approach?

ExperiencingStrategic OB


Human capital

Human Capital

The sum of the skills, knowledge, and general attributes of the people in an organization


Competitive advantage

Competitive Advantage

  • Perform some aspect of its work better than competitors

  • Perform in a way that competitors cannot duplicate


Human capital as source of competitive advantage

Human Capital as Source of Competitive Advantage

CompetitiveAdvantage

HumanCapitalValue

HumanCapitalImitability

HumanCapitalRareness


Overall potential

Valuable

Rare

Difficult to imitate

Supported by effective management

Competitive implications

Performance

No

---

---

Competitive Disadvantage

Below Normal

Yes

No

---

Competitive Parity

Normal

Yes

Yes

No

Temporary Competitive Advantage

Above Normal

Yes

Yes

Yes

Sustained Competitive Advantage

Above Normal

Overall Potential

Are human resources in the firm . . .

Adapted from Exhibit 1-2: Human Capital and Competitive Advantage


Skilled labor shortage

Skilled Labor Shortage

ManagerialAdvice

  • Thoughts on the global shortage of qualified managers?

  • Could Wipro’s approach to training work in other places? Give some examples.


Positive organizational behavior

Positive Organizational Behavior

  • Nurtures individuals’ greatest strengths

  • Helps people develop self-confidence, optimism and resiliency

  • Assists in the development of self-efficacy

  • Applies emotional intelligence (EQ)


High involvement management

High-Involvement Management

  • Carefully selecting and training associates

  • Giving associates decision-making power, information, and compensation

  • Empowering people to use their unique knowledge and skills to:

  • work hard to serve the organization’s best interest

  • take on different tasks and gain skills needed to work in multiple capacities

  • work using their intellect as well as their hands


Key characteristics

Key Characteristics

ProfitSharing

Individual Incentive Systems

GainSharing

Individual Piece Rate Systems

Knowledge and Skill-Based Pay

  • Selective Hiring

  • Extensive Training

  • Decision Power

  • Information Sharing

  • Incentive Compensation


Evidence of effectiveness

Evidence of Effectiveness

  • Positive effect on performance of steel mini-mills

  • Flexible production methods in auto plants resulted in higher productivity

  • Firms that placed a high value on people had higher survival rates (longer than five years) after an IPO


Demands on managers

Demands on Managers

  • Seek situations for delegating responsibility

  • Need to trust associates not to abuse authority

  • Continuously think about human capital and competitive advantage


The power of human capital

The Power of Human Capital

  • Any thoughts on Microsoft’s position, “the ideas that lead to better software come from human capital”? Why or why not?

  • While some believe Microsoft is monopolistic, the company has won awards for their commitment to diversity and flexible work arrangements. Thoughts?

ExperiencingStrategic OB


Questions

Questions


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