Organizational Behavior FMCU, Fall 2007

1. Organizational BehaviorFMCU, Fall 2007 All presentations showed throughout the semester serve as a complementary material further to the required readings as stated in the course syllabus. Mastering the content of these presentations will thus by no means be sufficient for the purpose of exam preparation.

2. Introduction toOrganizational Behavior (OB) OBJECTIVES: WHAT IS OB AND WHY IT IS IMPORTANT THE NATURE OF ORGANIZATIONS OB & MANAGEMENT THE NATURE OF MANAGERIAL WORK MANAGERIAL SKILLS MANAGEMENT LESSONS FROM ABROAD: JAPANESE MANAGEMENT

3. What Is OB & Why It is Important OB IS A MULTIDISCIPLINARY FIELD DEVOTED TO UNDERSTANDING INDIVIDUAL AND GROUP • behavior • interpersonal processes • organizational dynamics OB IS IMPORTANT BECAUSE • individual & group behavior is related to performance at work • it is about common topics that now characterize a modern workplace: ethical behavior, globalization, technology utilization, diversity, high performance, etc. • it can expand (your) potential for career success since it is a study or organizational processes from a managerial point of view

4. Why Is OB Important for Managers • MANAGERS ARE RESPONSIBLE FOR WORK THAT IS ACCOMPLISHED THROUGH THE PERFORMANCEOF (SUBORDINATED) PEOPLE • THE WORKFORCE IS CHANGING • CUSTOMER EXPECTATIONS ARE CHANGING • ORGANIZATIONS ARE CHANGING • RESULT – MANAGERS HAVE TO CHANGE AS WELL • BECAUSE OFTHE NATURE OF ORGANIZATIONS AS SOCIOTECHNICAL SYSTEMS

5. The Nature of Organizations • ORGANIZATIONS ARE GROUPS (OR COLLECTIONS) OF PEOPLE WORKING TOGETHER TO ACHIEVE A  COMMON PURPOSE • THE REASON WHY ORGANIZATIONS EXIST: To reach goals that no person could reach alone • Example: “TO SATISFY THE WORLD’S APPETITE FOR GOOD FOOD, WELL-SERVED, AT A PRICE PEOPLE CAN AFFORD“ (McDonald’s)

6. Typical Attributes of Organizations • created by people (common purpose) • run by people (managers) • their outputs serve to people(needs satisfaction)

7. Organization’s Purpose, Mission &Strategy • PURPOSE: MAY BE STATED AS THE CREATION OF GOODS OR SERVICES FOR CUSTOMERS • MISSION & MISSION STATEMENT: FOCUS THE ATTENTION OF ORGANIZATIONAL MEMBERS AND STAKEHOLDERS ON THE CORE PURPOSE • STRATEGY: GUIDES ORGANIZATIONS TO OPERATE IN WAYS THAT OUTPERFORM COMPETITORS • STAKEHOLDERS: PEOPLE AND GROUPS WITH AN INTEREST OR „STAKE“ IN THE PERFORMANCE OF THE ORGANIZATION

8. Organization’s Purpose, Mission &Strategy • ORGANIZATIONAL CULTURE: THE SHARED BELIEFS AND VALUES THAT INFLUENCE THE BEHAVIOR OF ORGANIZATIONAL MEMBERS • WORKFORCE DIVERSITY: INVOLVES DIFFERENCES BASED ON GENDER, RACE AND ETHNICITY, AGE, AND SEXUAL ORIENTATION • ORG. EFFECTIVENESS: SUSTAINABLE HIGH PERFORMANCE IN ACCOMPLISHING MISSION & OBJECTIVES

9. Trends in the New Workplace • COMMITMENT TO ETHICAL BEHAVIOR • IMPORTANCE OF HUMAN CAPITAL • DEMISE (the end) OF “COMMAND-AND-CONTROL” • EMPHASIS ON TEAMWORK • PERVASIVE INFLUENCE OF INFORMATION TECHNOLOGY • RESPECT FOR NEW WORKFORCE EXPECTATIONS • CHANGING DEFINITION OF “JOBS” AND “CAREER”(related to outsourcing and more individuals working as independent contractors)

10. High-Performance Organizations Definition: HPOARE DESIGNED TO BRING OUT THE BEST IN PEOPLE AND PRODUCE SUSTAINABLE ORGANIZATIONAL RESULTS

11. Characteristics of HPO • VALUE PEOPLE AS HUMAN ASSETS, RESPECT DIVERSITY & EMPOWER ALL MEMBERS TO FULLY USE TALENTS TO ADVANCE ORGANIZATIONAL & PERSONAL PERFORMANCE • MOBILIZE TEAMS THAT BUILD SYNERGY FROM THE TALENTS OF MEMBERS AND THAT HAVE THE FREEDOM TO EXERCISE SELF-DIRECTION AND INITIATIVE TO MAXIMIZE THEIR PERFORMANCE CONTRIBUTIONS • UTILIZE THE LATEST IN INFORMATION & PRODUCTION TECHNOLOGIES, ACHIEVING SUCCESS IN BRINGING PEOPLE & TECHNOLOGY TOGETHER IN A PERFORMANCE CONTEXT • THRIVE ON LEARNING, WITH NORMS AND CULTURES THAT ENCOURAGE KNOWLEDGE SHARING & ENABLE MEMBERS TO EXPERIENCE CONTINUOUS GROWTH AND DEVELOPMENT • ARE ACHIEVEMENT ORIENTED, SENSITIVE TO THE EXTERNAL ENVIRONMENT, AND FOCUSED ON TOTAL QUALITY MANAGEMENT & BEING THE BEST IN DELIVERING CUSTOMER SATISFACTION

12. OB & Management ORGANIZATIONAL BEHAVIOR AND MANAGEMENT ARE RELATED TO EACH OTHER THROUGH PEOPLE: • OBdeals with behavior of people at the workplace • MANAGEMENT is the management of people at the workplace >>> based on this:

13. Organizational Behavior Is… … A CONTEMPORARY MANAGEMENT APPROACH THAT STUDIES & IDENTIFIES MANAGEMENT ACTIVITIES THAT PROMOTE EMPLOYEE EFFECTIVENESSBY UNDERSTANDING THE COMPLEX & DYNAMIC NATURE OF INDIVIDUAL, GROUP, AND ORGANIZATIONAL PROCESSES

14. What Is Management? • Process (Research) • Profession (Practice) • Science (Theory)

15. Management As a Process • DONE THROUGH FUNCTIONS OF MANAGEMENT: • Planning • Organizing • Leading • Controlling RELATED TO “WHAT MANAGERS DO”

16. Management As a Profession • MANAGERIAL REVOLUTION –SEPARATION OF THE OWNERSHIP AND THE COMPANY MANAGEMENT

17. Management As a Science INTEGRATES FINDINGS OF SEVERAL OTHERDISCIPLINES: • Psychology • Sociology • Anthropology • Economics • Political Science, etc.

18. Management from the OB Point of View • IS A PROCESS • GOAL ORIENTED • EFFICIENT AND EFFECTIVE • IS THE MANAGEMENT OF PEOPLE

19. The Nature of Managerial Work • FUNCTIONS OF MANAGEMENT ARE RELATED TO “WHAT MANAGERS DO” • MANAGERIAL ROLES GIVE THE ANSWER HOW MANAGERS DO IT: • Interpersonal role • Informational role • Decisional role • An effective manager is the one whose team consistently achieves high-performance goals

20. Managerial Skills • A skill is an ability to translate knowledge into an action that results in a desired performance • Technical skills – the ability to perform specialized tasks • Human skills – the ability to work well with other people. They include communication skills. • Conceptual skills – the ability to analyze & solve complex problems • Emotional intelligence – the ability to manage oneself & one’s relationships effectively

21. Management Lessons From Abroad Typical characteristics of Japanese approach to management: • Democratic country – companies can choose their system of management • Still there are some typical features: • LIFE-TIME EMPLOYMENT • SENIORITY SYSTEM • RINGI SYSTEM (RINGI SEIDO) • COMPANY TRADE UNIONS + some authors add also: • IN-HOUSE TRAINING OF MANAGERS • EXTENSIVE USE OF QUALITY CONTROL METHODS • EMPHASIS ON CREATING HARMONIOUS RELATIONS AMONG WORKERS

22. Contrast Japanese vs. European & American Management Practice Europe & USA Specific Career Japan Non-specific Career

23. Life-time Employment • ABOUT 35% OF WORKFORCE IN JAPAN • ONE AND THE SAME EMPLOYER DURING THE LIFE-TIME (PRODUCTIVE AGE – AFTER GRADUATION TILL THE AGE OF 55 YEARS) • EXECUTIVES ARE AN EXCEPTION • PROCEDURE STARTS IN THE LAST YEAR OF STUDY AT THE UNIVERSITY • NOVEMBER 1 – THE SELECTION DAY • NEW EMPLOYEES ENTER COMPANIES AS TO APRIL 1 • RONIN – AN UNSUCCESSFUL ATTEMPT • IN THE AGE OF 55 EMPLOYEES RETIRE

24. The Flow of the Workforce • 2 groups of employees: • Key workers • Mid-career workers • LIFE-TIME EMPLOYMENT IS OFFERED TO THE FIRST GROUP ONLY! • MANAGERS COME FROM THE SAME GROUP OF EMPLOYEES Graduates “ProductiveAge” Retirement Age of18-23 Ageof 55

25. Seniority System = Compensation System ICHI-BAN NAN-BANDESUKA? ☺ SAN-BAN Partially based both on Taylorism & seniority SALARY (-) (+) (-) 23 A G E 55

26. Ringi System = Ringi Seido =A Decision-Making System • GROUP DECISION MAKING • (+) ALMOST PERFECT PROBLEM DEFINITION • (-) TIME CONSUMPTION

27. Trade Unions • DO NOT HAVE TRADE UNION ASSOCIATIONS • COMPANY TRADE UNION