BUSMHR 3200 Chapter Notes Chapter 1 K F Strategy and Strategic Organizational Behavior Organizational Behavior o An interdisciplinary field dedicated to better understanding and managing people at work research and application oriented Human Relations Movement o USED to be that business was all about efficiency people USED to be considered just part of a machine o Increasing numbers of studies writings from behavioral scientists focusing on the human factor Mary Parker Follett 1920 s Saw employees as complex bundles of attitudes beliefs and needs Told managers to motivate job performance instead of merely demanding it Built a logistical bridge between political democracy and a cooperative spirit in the workplace Elton Mayo The Human Problems of an Industrial Civilization Urged managers to attend to employee s emotional 1933 needs Hawthorne Studies 1927 1932 Manipulated a variety of workplace factors and measured the effects on worker performance The results are actually more myth than fact Showed that data driven research can guide managerial decisions o Collective bargaining legalized in 1935 o Management looking for other ways to manage the workforce o McGregor s The Human Side of the Enterprise and his Theory Y 1960 He created Theory Y to help managers break with the negative tradition of Theory X Theory X Assumptions People dislike work and avoid it whenever possible People need to be coerced to work People require close supervision at all times Most people prefer to be directed have little ambition and avoid responsibility Theory Y Assumptions Work is seen as natural activity like play or rest Given objectives people can be very self directed People become committed to objectives with some reward Most people are ambitious and can accept responsibility Contingency approach o Calls for using management concepts and techniques in a situationally appropriate manner instead of trying to rely on one best way Human Capital as a key strategic asset o Human capital the productive potential of an indiv s knowledge and actions o Organizations can use their resources and competencies to create value for customers by lowering costs providing something of unique value or some combination of the two This is a strong source of competitive advantage o What makes human capital a competitive advantage Value Rareness Not easily imitated Not easily substituted or replaced Organization able to successfully utilize the resource Individual Human Capital and Social Capital o Social capital the productive potential resulting from strong relationships goodwill trust and cooperative effort Strategic Mgmt o Critical to an organization s success o Addresses the competitive challenges faced by the organization o A plan for integrating goals tactics policies and actions into a meaningful whole o Has two primary elements Strategy formulation Strategy implementation Galbraith s Star Model o Focuses on 5 critical elements of organization o Star with strategy then move clockwise and deal with one after another o All elements need to be aligned for organization functioning to succeed o o Corporate social responsibility and ethics continue to play an ever increasing role in strategic planning Positive Organizational Behavior POB o The study and application of positively oriented human resource strengths and psychological capacities that can be measured developed ad effectively managed for performance improvement in today s workplace o CHOSE model confidence hope optimism subjective well being and emotional intelligence Corporate Social Responsibility o Means that corporations have obligations to others beyond shareholders and beyond the bounds of law or contract o Can be integrated into an organization s strategic plans by 1 Making a profit consistent with expectations for international business to fulfill economic responsibility 2 Obeying both host country and international law 3 Acting ethically by considering both host country and global standards 4 Being good corporate citizens and fulfilling the host country s expectations for philanthropic responsibility Ethics o The study of moral issues and choices o Improving the Ethical Climate 1 Demonstration of ethical behavior from leaders 2 Careful recruitment and selection of new employees 3 Developing a meaningful and real code of ethics Must be distributed to every employee Must be firmly supported by top mgmt Must refer to specific practices and ethical dilemmas likely to be encountered Must be evenly enforced with rewards and strict penalties 4 Training employees to better deal with ethical issues 5 Use operant conditioning to drive ethical behavior 6 Incorporate structural mechanisms to deal with ethics issues Ex Cirque de Soleil o Could induce a climate in which whistle blowing becomes unnecessary Whistle blowing when an employee reports a perceived unethical and or illegal activity to a third party such as gov t agencies news media or public interest groups Current Strategic Issues Involving HRM o Mergers and acquisitions o Off shoring o Downsizing right sizing o Business Process Outsourcing BPO o Sustainability Five Sources of OB Research Insights o Meta analysis A statistical pooling technique that permits behavioral scientists to draw general conclusions about certain variables from many different studies o Field study o Laboratory study o Sample survey o Case study Chapter 6 7 K F Motivation Motivation o Physiological processes that arouse and direct goal directed behavior person etc Aspects related to the job internal characteristics of the Aspects related to rewards recognition and perceived equity types of goals set etc o Two fundamentally different kinds of motivations Intrinsic motivation Extrinsic motivation o P A x M x O P performance A ability M motivation O opportunity Needs Based Theories of Motivation o Needs physiological or psychological deficiencies that drive behavior Influenced by the environment and change over time o Maslow s Need Hierarchy Theory Human needs generally emerge in a predictable stair step fashion once a need is satisfied it activates the next higher step A satisfied need may lose its motivational potential o Alderfer s ERG Theory o McClelland s Need Theory Motivation is a function of three different needs that vary from individual to individual 1 Need for Achievement o The desire to accomplish something difficult To do this as rapidly and independently as possible to overcome obstacles to rival and surpass others to
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