ORGANIZATIONAL BEHAVIOR AND ORGANIZATIONS
Organizational behavior – is the study of what people think, feel, and do in and around organizations
Organizations – are groups of people who work interdependently toward some purpose
WHY STUDY OB? 1. Satisfy the need to understand and predict 2. Helps us to test personal theories 3. Influence behavior – get things done
OLD PERSPECTIVE OF ORGANIZATIONAL EFFECTIVENESS
Goal oriented – effective firms achieve their stated objectives
No longer accepted as indicator of organizational effectiveness: * Could set easy goals * Some goals too abstract to evaluate * Company might achieve wrong goals
FOUR PERSPECTIVES OF ORGANIZATIONAL EFFECTIVENESS 1. Open Systems Perspective – states that 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 * Internal Subsystems Effectiveness * Productivity/Organizational Efficiency – more outputs less inputs * Lean Management * Reducing waste (muda) which is considered as waste; led by Toyota 2. 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: organizational learning processes of acquisition, sharing, and use * Intellectual Capital: * Human Capital –knowledge that people possess and generate * Structural Capital – knowledge captured in systems and structures * Relationship Capital – value derived from satisfied customers, reliable suppliers, etc. * Organizational Learning