BMGT 364 Session 2 Introduction to Organizational Behavior Agenda What is an organization and why do we need them Application Example Google What is OB Organizational Behavior Evidence based Management EBM Challenges and opportunities of OB Copyright 2012 Copyright 2012 What is an Organization Organizations as Open Systems A consciously organized social unit Composed of two or more people That functions on a relatively continuous basis To achieve a common goal or a set of goals Task Technology Structure People Actors Copyright 2012 Copyright 2012 10 16 12 1 General Types of Organizations Formal organization official legitimate and most visible part of organization Informal organization unofficial less visible Hawthorne studies conducted in 1920s and 1930s and concerned with importance of informal organizations Formal and informal elements of an organization can sometimes conflict What is Organization The Process of Organization creates Organizations Systems perspective useful for studying organizational dynamics e g entrepreneurship change Tied closely to creation application of new technologies We study organizations at different levels Highest level organization is society itself The smallest organization is the group Copyright 2012 Copyright 2012 Why do we need organizations Reflection AND opportunities What is your best and worst organizational experience Why Need for efficiency In the face of challenges BTW Organization is fundamental to human adaptation Specialization is key to modern economic Complex organizations require management to enterprise operate Copyright 2012 Copyright 2012 10 16 12 2 Organizational Example Working at Google http www youtube com watch v 4YA9QWceEfE What makes Google employees so happy and motivated What would be potential challenges of managing people at Google Copyright 2012 Copyright 2012 Why OB OB Key to Success Successful Management Successful Leadership Successful Organizations Today s Strategic Differentiator Enlightened management Learning About OB Mastery of objective knowledge Development of specific skills Application of knowledge and skills Copyright 2012 Copyright 2012 10 16 12 3 People Skills are Crucial For Challenges and Opportunities of OB Managing Planning budgeting Organizing staffing Controlling directing problem solving Leading Setting direction for the organization Communicating to align people with that direction Motivating people to action Increasing competition Globalization Customer focus on high quality Workforce diversity Need for flexibility adaptability Learning organizations Employees who are agile learners key competency Copyright 2012 Copyright 2012 OB Model Our Map for This Course Becoming a better manager Evidence based management A way of thinking The attitude of wisdom knowing what you know and knowing what you don t know Being committed to fact based and evidence based action Running experiments and learning from the data Knowing what the theory and evidence is and using it in formulating decisions and policies http www youtube com watch v hxH8hBUBBnE Copyright 2012 Copyright 2012 10 16 12 4 An example Conventional wisdom in the gaming industry High rollers are an important source of profits Free rooms are a great way of attracting customers Building beautiful edifices with convention and meeting space is a good way to attract business It is important to make casinos and their associated hotels more family friendly to draw business The facts As discovered by Harrah s Free chips and meals are more important than rooms most frequent gamblers live nearby Families with young children have neither much discretionary time nor income Most profits come from regular players of slot machines not from high rollers Investing in data bases and statistical packages to analyze experiments and in HR practices such as realistic job previews and more training to cut turnover and provide better service provides a much better return than building palaces Copyright 2012 Copyright 2012 Evidence Based Management Next Steps Scientific Management Data driven Rigorous analytic methods replicable ideally quantifiable Application of technology Scientific Grounding Scientific method basis for prediction Scientific process iterative empirical theoretical management relevance Chapter 3 pp 46 53 Two women three men on a raft see BB for details Read case carefully prepare for discussion may be a good idea to bring a copy to class Purchase Columbia s Final Mission Case Go to http cb hbsp harvard edu cb access 13569276 Read for Session 4 Copyright 2012 Copyright 2012 10 16 12 5
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