Organizational Behavior (OB) - correct answer ✔✔the domain of study that focuses on organizational
structures and protocols, and their effect on individual, team and organizational performance.
OB views organizations from multiple perspectives: - correct answer ✔✔The relationship between
individual behavior and those of groupsand teams.
The relationship between organizational structure and firm's performance.
The effect of culture on organizational performance.
organizational theory - correct answer ✔✔A fundamental principle of organizational theory is the
process of value creation.
OB focuses on the elementsof value creation such as: - correct answer ✔✔1. Decision making
2. Leadership
3. Motivation
4. Employee engagement
5. Organizational learning
OB can be studied from two perspectives: - correct answer ✔✔internal and external
Internal perspective: - correct answer ✔✔suggests that employees' behavior is primarily influenced by
their personal assumptions, feelings, thoughts, interactions, experiences, and perceptions.
A manager embracing the internal perspective would try to solve all issues by having an honest dialogue
with all the impacted employees in any situation.
,The external perspective - correct answer ✔✔suggests that environmental factors that include the
economic, social, cultural, regulatory, political, and competitive forces impact employees' behavior and
job performance.
A manager embracing the external perspective would calibrate her actions based on her perception of
the externalities' impact on employees.
As an example, when a competitor introduces a new type of benefit, a manager holding the external
perspective may try to replicate or improve upon the said benefit as a retention strategy.
An Interdisciplinary Domain - correct answer ✔✔It should be obvious from the preceding outline that
OB is not a monolithic domain or discipline of study.
OB draws from many disciplines to understand and explain individual and group behavior.
OB draws from psychology while explaining why we behave the way we do.
OB draws from anthropology while understanding the evolution of behavior over time.
OB draws from sociology while exploring how households, families, and society interact and lead to
discernable patterns of behavior and tradition.
OB draws from engineering while examining measurement techniquesand productivity.
OB draws from statistics to understand trends and relationshipsbetween variables.
OB draws from medicine to recognize the importance of wellness and health.
Organization as a System - correct answer ✔✔It is useful to view an organization as a system.
A system is a set of interrelated parts that work together towards a well-defined objective.
,Most systems have a control mechanism to correct and prevent deviation from the desired level in
system performance.
Control can be at the input, process, or output stage.
The output is one or more products, some waste, and information.
Feedback can be about quality, efficiency, or productivity.
Control would be steps to minimize deviations.
A system has some distinct characteristics: - correct answer ✔✔One or more inputs
One or more processes that transform the inputs
One or more outputs
A feedback loop to measure efficiency and effectiveness
Inputs to an organizational system (manufacturing)include: - correct answer ✔✔Capital
People
Raw materials
Information
Technology
The processes may involve: - correct answer ✔✔Physical
Chemical
Mechanical
, Electronic
Assembly Lines
Test facilities
Systems and Subsystems - correct answer ✔✔A typical system has many subsystems.
An organizational system, for example, has marketing, finance, manufacturing, service, human resources,
and technology subsystems.
Similarly, the organization itself is a part of a larger system that includes the political, economic, social,
and technological systems. (PEST)
Organization as a System - Baldrige Model - correct answer ✔✔One of the widely used frameworks or
models for understanding and improving organizational systems is the Baldrige Excellence Model.
Baldrige model has several subsystems: - correct answer ✔✔Leadership
- the first subsystem, provides the mission, vision, objectives, and core values of the organization.
* Mission- What is our business?
* Vision- What do we aspire to become?
* Objectives- How do we measure?
* Core Values- What do we believe in and stand for?
Strategy
- How do we succeed? By lowering costs? By offering something unique? By operational excellence? By
understanding and serving our customers? By combining all of the above?
Customers
- Who are our customers? Where are they located?What are they looking for? What is the "job to be
done"? How do we offer what our customers want?Internal and External customers.
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