Chapter One

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Chapter One
Needed People-Centered Managers and Workplaces
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Introduction and History

• Organization
• System of two or more persons
• Engaged in cooperative action
• Trying to reach a goal
• Characteristics of definition
• Applies to any type of organization, small,
  large, profit, nonprofit
• Goal oriented
• Cooperative interaction of two or more people

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Organizational Behavior andOrganizational Theory

• Organizational behavior and organizational theory
  specialize in studying organizations
• Organizational behavior understanding behavior,
  attitudes, and performance
• Organizational theory design and structure of
  organizations

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Theories and Concepts

• Basic content of each chapter
• Concepts are parts of theory
• Helpful tools for understanding behavior in
  organizations
• Develop your analytical skills in using these
  tools
• Definition A theory is a plausible explanation
  of some phenomenon

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Scientific Management Frederick W. Taylor (1911)
Quotation from the opening paragraph ofFrederick
W. Taylors The Principles of Scientific
Management
The principal object of management should be to
securethe maximum prosperity for the employer,
coupled withthe maximum prosperity for each
employee.
Sets the underlying tone and philosophy of
Scientific Management
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Scientific Management (cont.)

• Management and labor viewed their goals as
  mutually exclusive
• Management maximize profits
• Labor maximize wages
• Taylor felt his system of Scientific Management
  could maximize both goals
• Four principles underlie the approach

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Scientific Management (cont.)

• Principles
• Carefully study jobs to develop standard work
  practices. Standardize workers tools
• Scientifically select each worker
• Cooperation of management and workers to ensure
  work is done according to standard procedures
• Management plans and makes task assignments
  workers carry out assigned tasks

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McGregors Theory X and Theory Y

• Theory X Theory Y
• 1. People dislike work 1. Work is a natural
  activity
• 2. People must be pushed to 2. People committed
  to objectiveswork are capable of
  self-direction
• 3. Most people prefer to be 3. Rewards help
  people becomedirected committed to
  organizational objectives
• 4. Employees can learn to seek
  responsibility
• 5. Employees typically have
  imagination, ingenuity, and creativity

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Bureaucracy Max Weber (1922)

• Bureaucracy
• Administrative structure
• Well-defined offices or functions
• Hierarchical relationships among functions
• Legal or Rational Authority
• Efficiency

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Mary Parker Follett

• Power
• Capacity to get work done
• Distinguished from authority
• Can delegate authority but not power
• Two types of power power-over and power-with
• Follett had a positive view of power and saw it
  as basic to organizations and management

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Mary Parker Follett

• Conflict
• Differences in opinions and interests
• Cannot avoid conflict in organizations
• Managers should put conflict to use in their
  organizations
• Managing conflict
• Dominance one side wins over the other
• Compromise each side gives up something to
  settle an issue
• Integration of desires

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Mary Parker Follett

• Leadership
• Prevailing view of leadership was based on
  dominance and aggression
• Offered an alternative view of leadership with
  many positive qualities
• Action-oriented person clearly focused on the
  future
• Decisions made with an understanding of their
  long-term effects

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Pfeffers 7 People-Centered Practices

• Job security
• Careful hiring
• Power to the people
• Generous pay for performance.
• Lots of training.
• Less emphasis on status
• Trust building

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What Is Total Quality Management? (TQM)

• Schonberger TQM is continuous,
  customer-centered, employee-driven improvement.
• Principles of TQM
• Do it right the first time to eliminate costly
  rework
• Listen to and learn from customers and employees
• Make continuous improvement an everyday matter
• Build teamwork, trust and mutual respect

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E-business Implications for OB some examples

• E-business involves using the Internet to
  facilitate most aspect of running a business.
• E-Management Fast paced Virtual teams,
  Networking skills
• E-communication Email use/abuse Telecommuting
  promised and drawbacks
• Organizational structure Virtual teams and
  organizations Lack of trust and loyalty in
  faceless organizations?
• Decision making Less time to make more
  decisions Information overload Empowerment and
  participative decision making
• Knowledge management E-training E-learning
  distance learning Asynchronous vs. synchronous
• Speed, conflict, and stress Does relentless
  speed equal burnout?

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How are managers different today?

• View of People?
• Decision making
• Leadership
• communication
• Organizational Structure?
• Knowledge Management?
• Change Management?

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Strategic Results The 4-P Cycle of Continuous
Improvement
People (Skilled, motivated people who can handle
change. Less stress.).)
Products (Satisfied customers because of better
quality goods/services.)
Productivity (Less wasteful, more efficient use
of all resources.)
Processes (Faster, more flexible, leaner, and
ethical organizational processes. Organizational
learning.)