Nội dung text BME 12 CH1 Narrative of Discussion.pdf
Kingfisher School of Business and Finance, Inc. BME 12: Human Behavior in Organization “This handout is for academic purposes ONLY” Prepared by: Mark Jeffrey B. Aquino (BME 12 Instructor) BME 12 Lecture Notes Version 1 Series of 2024 BME 12: HUMAN BEHAVIOR IN ORGANIZATION Chapter 1: An Overview of Organizational Behavior (Narrative of Discussion) Book Reference: Organizational Behavior: Managing People and Organization Author: Ricky Griffin, Jean Phillips, Stanley Gully I. What Is Organizational Behavior? Organizational behavior (OB) is the study of: human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself. OB helps explain and predict how people and groups interpret events, react, and behave in organizations and describes the role of organizational systems, structures, and process in shaping behavior The field of organizational behavior attempts to understand human behavior in organizational settings, the organization itself, and the individual organization interface As illustrated here, these areas are highly interrelated. Thus, although it is possible to focus on only one of these areas at a time, a complete understanding of organizational behavior requires knowledge of all three areas. Why do we study OB? The reasons why do we study OB is that it could help us to become a better person, become a better manager, understand how paper behave and why they do what they do, and help you focus on developing a global mindset. How do Organizational Behavior Impact Personal Success and Organizational Success? Personal Success The core of OB is being effective at work. Understanding how people behave in organizations and why they do what they do is critical to working effectively with and managing others. OB gives everyone the knowledge and tools they need to be effective at any organizational level. In our relationships with organizations, we may adopt any one of several roles or identities. we will adopt a managerial perspective, the field attempts to describe the complex human context of organizations and to define the opportunities, problems, challenges, and issues associated with that realm. Organizational Success Organizations as a whole also benefit when managers understand OB. Imagine the difference between a company with motivated, engaged employees with clear goals aligned with the business strategy and one with unhappy employees, a lot of conflict, weak leadership, and a lack of direction. Effectively implementing OB concepts and models is what creates effective and successful companies. OB also helps companies perform well. In addition to financial performance and job satisfaction, OB also influences absenteeism and turnover. Reducing absenteeism and turnover can be worth millions of dollars to organizations through increased productivity and customer service and decreased staffing costs. Work Absenteeism- ongoing pattern of missing or skipping out on work without permission Employee Turnover- refers to the total number of workers who leave a company over a certain period of time II. The Managerial Context of Organizational Behavior A. 4 Basic Management Functions and Organizational Behavior 1. Planning is the process of determining an organization’s desired future position and the best means of getting there. Why do we study planning? For environmental analysis Deciding appropriate goals Developing tactics and strategies 2. Organizing is the process of designing jobs, grouping jobs into units, and establishing patterns of authority between jobs and units. Organizational Structure- refers to the way that lines of authority, responsibility, and communication are arranged in order to accomplish the work. 3. Leading is the process of getting the organization’s members to work together toward the organization’s goals. 4. Controlling is the process of monitoring and correcting the actions of the organization and its members to keep them directed toward their goals. 5. (Note: The discussion about environmental analysis is in separate narrative)
Kingfisher School of Business and Finance, Inc. BME 12: Human Behavior in Organization “This handout is for academic purposes ONLY” Prepared by: Mark Jeffrey B. Aquino (BME 12 Instructor) BME 12 Lecture Notes Version 1 Series of 2024 B. Critical Management Skills and Organizational Behavior Technical skills are the skills necessary to accomplish specific tasks within the organization. (ex. Proficiency in MS offices) Interpersonal skills are the ability to effectively communicate with, understand, and motivate individuals and groups. Conceptual skills are the ability to think in the abstract. The ability to anticipate future events, think of possibilities on another options. Critical Thinking- allows you to understand the information in front of you, understand it, and process it. Diagnostic skills are the ability to understand cause-and-effect relationships and to recognize the optimal solutions to problems. C. Organizational Behavior and Human Resource Management Human resource management (HRM) - is the set of organizational activities directed at attracting, developing, and maintaining an effective workforce. -Strategic approach to nurturing and supporting employees and ensuring a positive workplace environment. - include but is not limited to recruiting, hiring, training, compensating, retaining, motivating employees. III. Strategic Context of Organizational Behavior Competitive advantage is anything that gives a firm an edge over rivals in attracting customers and defending itself against competition. Sources of Competitive Advantage: Innovation Distribution Speed Convenience First to market Cost Service Quality There are many sources of competitive advantage including having the best-made or cheapest product, providing the best customer service, being more convenient to buy from, having shorter product development times, and having a well-known brand name. To have a competitive advantage a company must ultimately be able to give customers superior value for their money (a combination of quality, service, and acceptable price)—either a better product that is worth a premium price or a good product at a lower price can be a source of competitive advantage Financial Risk- the value of the product is not worth the price you paid for. Types of Business Strategies Three primary business strategies are: 1. Cost leadership 2. Differentiation 3. Specialization 1. Cost Leadership Strategy strives to be the lowest-cost producer for a particular level of product quality. (with a productive manpower, the cost to produce a single unit of product would be reduced through a lesser amount of salary expense accumulating in the direct labor in costing the product, that is involved in the production.) The company is constantly working on reducing the cost through operational excellence. Operational excellence maximizes the efficiency of the manufacturing or product development process to minimize costs. 2. Differentiation Strategy develops a product or service that has unique characteristics valued by customers. It gives emphasis to product innovation. Product innovation is developing new products or services. Example: Apple Company- who differentiates its product by pricing them in higher than its competitors. 3. Specialization Strategy focuses on a narrow market segment or niche and pursues either a differentiation or cost leadership strategy within that market segment. (Niche- single product or a particular need of an end user.) This strategy can be successful if it results in either lower costs than competitors serving the same niche, or an ability to offer customers something other competitors do not. Customer intimacy is delivering unique and customizable products or services to meet customers’ needs and increase customer loyalty.
Kingfisher School of Business and Finance, Inc. BME 12: Human Behavior in Organization “This handout is for academic purposes ONLY” Prepared by: Mark Jeffrey B. Aquino (BME 12 Instructor) BME 12 Lecture Notes Version 1 Series of 2024 4. Growth strategy- is a Company expansion organically or through mergers and acquisitions. Response to investor preference for rising earnings. Success depends on company’s ability to find and retain the right number and types of employees to sustain growth. (Example: Jollibee acquiring Chowking, Mang Inasal, Red Ribbon, Greenwich, etc.) 5. Integrating business strategies and OB- Implementation and change require large-scale organizational changes New organizational culture New employee behaviors IV. Contextual Perspective of OB A. Where Does Organizational Behavior Came from? Formal study of OB began in the 1890s, following the industrial relations movement spawned by Adam Smith’s introduction of the division of labor. In the 1890s, Frank and Lillian Gilbreth and Frederick Winslow Taylor identified the positive effects of precise instructions, goal setting, and rewards on motivation. Their ideas became known as scientific management, and are often considered the beginning of the formal study of OB. Scientific management is based on the belief that productivity is maximized when organizations are rationalized with precise sets of instructions based on time-and-motion studies. The four principles of Taylor’s scientific management are: 1. Replace rule-of-thumb work methods with methods based on scientifically studying the tasks using time-and- motion studies. 2. Scientifically select, train, and develop all workers rather than leaving them to passively train themselves. 3. Managers provide detailed instructions and supervision to workers to ensure that they are following the scientifically developed methods. 4. Divide work nearly equally between workers and managers. Managers should apply scientific management principles to planning the work, and workers should actually perform the tasks. Although scientific management improved productivity, it also increased the monotony of work. After World War I, attention shifted to understanding the role of human factors and psychology in organizations. This interest was spawned by the discovery of the Hawthorne effect in the 1920s and 1930s. The Hawthorne effect occurs when people improve some aspect of their behavior or performance simply because they are being assessed. Rather than viewing workers as interchangeable parts in mechanical organizations as the scientific management movement had done, the human relations movement viewed organizations as cooperative systems and treated workers’ orientations, values, and feelings as important parts of organizational dynamics and performance. B. Contemporary Organizational Behavior Contextual Perspectives on Organizational Behavior Systems Perspective Situational Perspective Contingency Interactional A system is an interrelated set of elements that function as a whole. The framework for systems study consists of inputs, transformation, outputs, and feedback. An organizational system receives four kinds of input from its environment: material, human, financial, and informational. These inputs are combined and transformed and then returned to the environment in the form of products or services, profits or losses, employee behaviors, and additional information. Finally, the system receives feedback from the environment regarding these outputs.
Kingfisher School of Business and Finance, Inc. BME 12: Human Behavior in Organization “This handout is for academic purposes ONLY” Prepared by: Mark Jeffrey B. Aquino (BME 12 Instructor) BME 12 Lecture Notes Version 1 Series of 2024 C. Situational Perspectives on Organizational Behavior Another useful viewpoint for understanding behavior in organizations comes from the situational perspective which suggest that in most organizations, situations and outcomes are influenced by other variables. Because of the complexities of human behavior and organizational settings, universal conclusions are impossible. In organizations, most situations and outcomes are contingent; that is, the precise relationship between any two variables is likely to be situational and dependent on other variables. There are distinct differences between universal and situational perspectives. The situational perspective -In most organizations, situations and outcomes are influenced by other variables The universal model -Presumes a direct cause-and-effect linkage between variables -Complexities of human behavior and organizational settings make universal conclusions virtually impossible D. Interactionalism (People and Situation) -Focuses on how individuals and situations interact continuously to determine individuals’ behavior. -Attempts to explain how people select, interpret, and change various situations. Example: Managers perspective and attitude towards the employee trainees during training process should be light and gentle but hands-on so that trainee’s perspective would not be affected during the process. V. Managers for Effectiveness Essentially, managers and leaders generally try to direct the behaviors of people in their organizations in ways that promote organizational effectiveness. Managers’ goals: A. Enhance behaviors and attitudes Productivity- Narrow measure of efficiency: number of products or services created per unit of input Performance- Broader concept made up of all work-related behaviors Commitment- The degree to which an employee considers himself or herself a true member of the organization, overlooks minor sources of dissatisfaction, and intends to stay with the organization B. Promote citizenship Organizational citizenship is the behavior of individuals that makes a positive overall contribution to the organization. The determinant of organizational citizenship behaviors is likely to be a complex mosaic of individual, social, and organizational variables. Behavior of individuals that makes a positive overall contribution to the organization Encompasses all factors outside the strict requirements of the job Examples: Willingness to train new hires Works late/overtime Good attendance Represents the organization well Personal values consistent with the organization C. Minimize dysfunctional behaviors Dysfunctional behaviors – Behaviors that detract from, rather than contribute to, organizational performance – Examples Absenteeism Turnover Theft, sabotage Sexual and Racial Harassment Politicized behavior (spreading rumors, etc.) Incivility, rudeness Bullying and Workplace violence D. Drive strategic execution Strategic execution -The degree to which managers and their employees understand and carry out the actions needed to achieve strategic goals -Assessed at the individual/group level, the organizational level, and in terms of financial performance -Often requires balancing seemingly contradictory outcomes Example: paying workers high salaries can enhance satisfaction and reduce turnover, but detracts from bottom- line performance.