BME 12: HUMAN BEHAVIOR IN ORGANIZATION

CHAPTER 1: An Overview of Organizational Behavior

Organizational Behavior
 The study of human behavior in
organizational settings, the interface
between human behavior and the
organization, and the organization itself.
The Nature of Organizational Behavior
The field of organizational behavior attempts to
understand human behavior in organizational settings, the organization itself, and the
individual– organization interface. As illustrated here, these areas are highly
interrelated. Thus, although it is possible to focus on only one of these areas at a time,
a complete understanding of organizational behavior requires knowledge of all three
areas.

IMPORTANCE : How Organizational Behavior impacts Personal success?

 The core of Organizational Behavior is being effective at work.
 It helps us to describe the complex human context of organizations and to
define the opportunities, problems, challenges, and issues associated with that
realm.
 Its value is it isolates important aspects of the manager’s job and offers
specific perspectives on the human side of management: people as
organizations, as resources, and as people.

ORGANIZATIONAL BEHAVIOR AND MANAGEMENT

 There is no organization that has a position called “organizational behavior
manager” because it is not defined as business function or area of
responsibility rather, understanding of organizational behavior provides a set
of insights and tools that all managers can use to carry out their jobs more
effectively.
The works of the managers are
 Motivating employees
 Ensures that jobs are properly designed
 Resolving conflicts

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 Evaluating performance
 Help the workers to set their goals

OB AND THE MANAGEMENT PROCESS

Basic Managerial Functions
 Managers engage in the four basic functions that are applied and classified
into four groups: human, financial, physical, and information resources with the
ultimate purpose of efficiently and effectively attaining organizational goals.
 The figure shows how managers apply the basic functions across resources to
advance the organization toward its goals.
 Planning - the process of determining an
organization’s desired future position and the best
means of getting there. It includes:
 Studying and analyzing the environment
 Deciding on appropriate goals
 Outlining strategies
 Developing tactics to help execute strategies
 Organizing - the process of designing jobs, grouping jobs into units, and
establishing patterns of authority patterns of authority between jobs and units. It
produces the basic structure or framework of the organization.
 Leading - the process of motivating the employees or getting the
organization’s members to work together toward the organizations goals. Its
components are:
 Motivating employees
 Managing group dynamins
 Actual process of leadership itself
 Controlling - the process of monitoring and correcting the actions of the
organization and its members to keep them directed toward their goals. The key
part of this function are behavioral processes and characteristics. It is a vital
importance to all business. It applies:
 Performance evaluation
 Reward systems
 Motivation

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ORGANIZATIONAL BEHAVIOR AND THE MANAGER’S JOB

 To perform their functions most effectively and to be successful in their
various roles, managers must also draw upon a set of critical skills.
 Human Resource Management (HRM) - set of organizational activities
directed at attracting, developing, and maintaining an effective workforce.
Basic Managerial Roles
A role is the part a person plays in a given situation.
IMPORTANT MANAGERIAL ROLES
CATEGOR ROLE EXAMPLE DEFINITION
Y
INTERPER Figurehead - taking visitors to dinner Attend employee Primarily social
SONAL and attending ribbon-cutting ceremonies retirement ceremony in nature which
Leader - hires, trains, and motivate Encourage workers is they are the
employees to increase roles in which
productivity the manager’s
Liaison - relating to others outside the Coordinate activities main task is to
group or organization of two committees relate to other
people in certain
ways.
INFORMAT Monitor - seeks information that might Scan Business Week Behavioral
IONAL be of value to organization in general or for information process are part
to specific managers about competition of each of these
Disseminator - the manager who Send out memos roles because
transmits this infos to others outlining new information is
policies almost
Spokesperson - speaks for the Hold press exchanged
organization to others conference to between people.
announce new plant
DECISION- Entrepreneur-voluntarily initiates Develop idea for Behavioral
MAKING change such as innovations or new new product and processes clearly
strategies within organizations convince others of are crucial in
its merits each of decision
Disturbance handler- helps settle Resolve dispute roles.

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disputes between various parties

Resource allocator- decides who will Allocate budget
get what how resources in the requests
organization will be distributed among
various individuals and groups.
Negotiator- represents the organization Settle new labor
in reaching agreements with other contract
organizations such as contracts.

Sources of Competitive Advantage

- Anything that gives a firm an edge over rivals in attracting customers and
defending itself against competition. These are the different sources:
 Innovation  Convenience  Quality
 Distribution  First to market  Branding
 Speed (for  Cost
demand)  Service

CRITICAL MANAGERIAL SKILLS

 Another important element of managerial work is mastery of the skills
necessary to carry out basic functions and fill fundamental roles. In general, most
successful managers have a strong combination of technical, interpersonal,
conceptual, and diagnostic skills.
 Technical Skills - the skills necessary to accomplish specific tasks
within the organization.
- these skills are generally associated with the operations
employed by the organization in its production processes.
 Interpersonal Skills - to communicate with, understand, and motivate
individuals and groups.
 Conceptual Skills - the managers use this to think in the abstract. They
should be able to see the “big picture. He should be able to see
opportunity where others see roadblocks or problems
 Diagnostic Skills- to understand cause-and-effect relationships and to
recognize the optimal solutions to problems.

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Managerial Skills at Different

Organizational Levels
Most managers need technical,
interpersonal, conceptual, and diagnostic skills,
but the importance of these skills varies by
level in the organization. As illustrated here, conceptual and diagnostic skills are
usually more important for top managers in organizations, whereas technical and
interpersonal skills may be more important for first-line managers.

TYPES OF BUSINESS STRATEGIES

1. Cost Leadership - striving to be the lowest-cost producer for a particular level
of product quality. Organizations pursuing a strategy at keeping cost and
prices low to develop a competitive advantage in:
 Operational excellence- maximizing the efficiency of the manufacturing
or product development process to minimize cost. They focus in efficient
processes and engaging in continouos improvements all through out the
process. They hire and train flexible employees that focus on short term
production objectives.
2. Differentiation - developing a product or service that has unique characteristics
valued by customers. When they add value, it can charge premium charge on it.
They use this strategy to differentiate different aspects of the business like the
image of the company, durability of product, quality, usability, and safety. Those
organizations pursuing a differentiation strategy often try to develop a competitive
advantage based on:
 Product Innovation - developing new products or services.
3. Specialization strategy - focusing on a narrow market segment or niche and
pursuing either a differentiation or cost leadership strategy within that market
segment. So that they will have a high degree of customer loyalty as the
business satisfies their specific needs. Organizations pursuing these kind of
strategy often trying to develop a competitive advantage based on:
 Customer Intimacy - delivering unique and customizable products or
services to meet customer’s need and increase customer loyalty.
4. Growth Strategy - company expansion organically or through acquisitions.
They use this strategy by finding and attaining the right number and types of
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employees to sustain its intended growth. Organically expanding- It is

happening as the organization expands from within by opening new factories and
stores. This requires investments in recruiting, selecting, and training the right
people. Para may mai-assign sa expanded business. Mergers or Acquisition -
have been a common way for organizations to achieve growth. Others are
expanding internationally to acquire quality and talent.
Where does OB come from?
 The formal study of OB began in 1890s (1856-1915) as the industrial
relations movement introduce through Adam Smith’s division of labor.
Frederick Winslow Taylor together with Frank and Lillian Gilbreth
introduced the:
Scientific management - based on the belief that productivity is maximized
when organizations are rationalized with precise sets of instructions based on time-
and-motion studies.
FREDERICK WINSLOW TAYLOR - one of the pioneers of scientific
management. Also referred to as the Father of Scientific Management. He
allocated that the managers should study how organizations manage the jobs of
their workers, how they will break it into small tasks, how they train workers and
pay their workers based on the number of units they produce. It focuses in
efficiency and technical aspects of productivity.
The four principles of Taylor’s scientific management are:
1. Replace rule of thumb work methods with methods based on scientifically
studying the tasks using time and motion studies
2. Scientifically select, train, and develop all workers rather than leaving them to
passively train themselves
3. Managers provide detailed instructions and supervision to workers to ensure that
they are following the scientifically developed methods.
4. Divide work nearly equally between workers and managers. Managers should
apply scientific management principles planning the work, and workers should
actually perform the tasks.
Although scientific management improve productivity, it also increase
monotomy of work.It was not always accepted by workers because they said it is
dehumanizing. It only focuses on efficiency only.

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HAWTHORNE EFFECT- when people improve some aspect of their behavior

or performance simply because they are being assessed. This was first identified
when a series of elements conducted by Elton Mayo in Western Electric Plants
sa Hawthorne. Workers are more motivated when they believe the organization is
open, concerned and willing to listen.

Human Relations Movement Effect- views organizations as cooperative systems

and treats workers’ orientations, values, and feelings as important parts of
organizational dynamics and performance. It focuses on human dimensions of
work such as group relations. It opens the new era because it became humane and
highlights the people.

MARY PARKER FOLLETT - “The Mother of Modern Management”. Harvard

social work professor and management consultant was known to be the prophet of
management because her ideas are ahead of our time. She discovered the
brainstorming and later discovered the management by objectives.

CONTEMPORARY ORGANIZATIONAL BEHAVIOR

Characteristics of the Field
 OB must recognize that it has an interdisciplinary focus and a descriptive
nature. It draws from a variety of other
fields and it attempts to describe
behavior rather than to predict how
behavior can be changed in consistent
and generalizable ways.

Basic Concepts of the Field

The central concepts of organizational

behavior can be grouped into three basic
categories: (1) individual processes, (2)
interpersonal processes, and (3)
organizational processes and
characteristics.

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The Framework for Understanding OB

Organizational behavior is an exciting and complex field of study. The specific

concepts and topics that constitute the field can be grouped into three categories:
individual, interpersonal, and organizational processes and characteristics. Here
these concepts and classifications are used to provide an overall framework for the
organization of this book.

ORGANIZATIONS AS OPEN SYSTEMS

The Systems Approach to Organizations
It provides a useful framework for
understanding how the elements of an
organization interact among themselves and
with their environment. Various inputs are
transformed into different outputs, with
important feedback from the environment. If managers do not understand these
interrelations, they may tend to ignore their environment or overlook important
interrelationships within their organizations.

Systems and Situational Perspectives - Share related viewpoints on organizations and how
they function.
it was first developed in the physical sciences. A system is an
The Systems Perspective -
interrelated set of elements that function as a whole.
 The figure shows for viewing organizations as systems. It shows that an
organizational system receives four kinds of inputs from its environment. The
organization’s managers combines and transform these inputs and return them to
the environment in the form of products or services, employee behaviors, profits
or losses, and additional information. Then the system receives feedback from
the environment regarding these outputs.

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Situational Perspective- suggests

that in most organizations, situations and outcomes are
influenced by other variables. Managers always search for universal answers to
organizational questions because they
believe that there is “one best way”
that could be used in any organization
under any conditions that would
always lead employees to be more
satisfied and to work harder.

Universal Versus Situational Approach

Managers once believed that they could identify the “one best way” of solving
problems or reacting to situations. Here we illustrate a more realistic view, the
situational approach. The situational approach suggests that approaches to
problems and situations are contingent on elements of the situation.
The universal model, shown at the top of the figure, presumes a direct cause-and-
effect linkage between variables. For example, it suggests that whenever a
manager encounters a particular problem or situation (such as motivating
employees to work harder), a universal approach exists (such as raising pay or
increasing autonomy) that will lead to the desired outcome. The situational
perspective, on the other hand, acknowledges that several other variables alter the
direct relationship. In other words, the appropriate managerial action or behavior
in any given situation depends on elements of that situation.

INTERACTIONALISM: PEOPLE AND SITUATIONS

Interactionalism suggests that individuals and situations interact continuously to
determine individuals’ behavior.
- this view assumes that individual behavior results from a continuous
and multidirectional interaction between characteristics of the person
and characteristics of the situation.
- it explains how people select, interpret, and change various situations.
Individual and situation are presumed to interact continously and this is what
determines the individual’s beheviour.
The interactional view implies that simple cause-and-effect descriptions of
organizational phenomena are not enough. For example, job changes lead to
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improved employee attitudes. Other studies may propose that attitudes influence
how people perceive their jobs in the first place. Both positions probably are
incomplete: Employee attitudes may influence job perceptions, but these
perceptions may in turn influence future attitudes. Because interactionalism is a
fairly recent contribution to the field, it is less prominent in the chapters that
follow than the systems and contingency theories. Nonetheless, the interactional
view appears to offer many promising ideas for future development.
MANAGING FOR EFFECTIVENESS
 Managers work to optimize a variety of individual-level, group-level, and
organization-level outcomes. It is sometimes necessary to make trade-offs
among the different types and levels of outcomes, but each is an important
determinant of organizational effectiveness.
INDIVIDUAL-LEVEL OUTCOMES
Individual Behaviors result from a person’s
participation in an organization.
Productivity which is an indicator of
efficiency and is measured in terms of the
products or services created per unit of input.
Performance is made up of all work-related
behaviors
Absenteeism is a measure of attendance
Turnover occurs when a person leaves the organization.
Attitudes influenced by managers that consists of individual attitudes.
Stress is becoming an increasingly important topic for both researchers in
organizational behavior and practicing managers.

GROUP AND TEAM LEVEL OUTCOMES

Groups develops norms that govern the behavior of individual group
members. They also develop different levels of cohesiveness. Thus, managers need
to assess both common and unique outcomes when considering the individual and
group levels.

ORGANIZATION-LEVEL OUTCOMES

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Can measure and compare organizational productivity. Can also develop

organizational level indicators of absenteeism and turnover but profitability is
generally assessed only at the organizational level. Organizations are also
commonly assessed in terms of financial performance: stock price, return on
investment, growth rates, and so on. They are also evaluated in terms of their
ability to survive and the extent to which they satisfy important stakeholders such
as investors, government regulators, employees, and unions.

NOTE! The manager must balance different outcomes across all three levels of
analysis. In many cases, these outcomes appear to contradict one another. For
example, paying workers high salaries can enhance satisfaction and reduce
turnover, but it also may detract from bottom-line performance. Similarly, exerting
strong pressure to increase individual performance may boost short-term
profitability but increase turnover and job stress. Thus, the manager must look at
the full array of outcomes and attempt to balance them in an optimal fashion. The
manager’s ability to do this is a major determinant of the organization’s success

(Shortcut for the figure above)

 Enhancing individual and team performance behaviors
 Enhancing employee committment and engagement
 Promoting organizational citizenship behaviors
Organizational citizenship is the behavior of individuals that makes a
positive overall contribution to the organization
 Minimizing Dysfunctional Behaviors
Dysfunctional behaviors are those that detract from, rather than contribute
to, organizational performance. Examples are theft, sabotage and harrassment.
 Driving Strategic Execution

SCIENTIFIC METHOD - methods of knowledge generation that relies on

systematic studies that identify and repplicate a result using a variety of methods,
samples, and settings.
Scientific method or cycle begins with:
Theory - a collecton of verbal and symbolic assertions that specify how and why
variables are related, and the conditions under which they should and should not
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relate. Creates a general theory which is a prediction that describes the relationship
that are propose to exist. It is no guarantee that it is a fact until proven correct
Hypotheses- written predictions specifying expected relationships between certain
variables. Setting a specific goal will be positively related to a number of products
assemble. If true or false. Criterion:
Independent Variable - the variable that is predicted to affect something
else. Setting a specific achievable goal.
Dependent Variable - the variable predicted to be affected by something
else. Number of products assembled.
Correlation - reflects the size and strength of the statistical relationship
between two variables; ranges from -1 to+1. This will answer if it is true or
false.
Meta-analysis- a statistical technique used to combine the results of many
different research studies done in a variety of organizations and for a variety of
jobs. It is used to estimate the true relationship in a variety of organizations and
determined the result that will generalized to all possible situations. If a
relationship works differently, it will be different in different situations.

Theory --> hypothesis --> data --> verification

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CHAPTER 2: The Changing Environment of Organizations

GLOBALIZATION

 is the internationalization of business activities and the

shift toward an integrated global economy.

The Changing Environment of Business?

 The changing environment of business presents both

opportunities and challenges for managers today. Five

important environmental forces are globalization, diversity,

technology, ethics and corporate governance, and new

employment relationships.

DIVERSITY

 Refers to the variety of observable and unobservable

similarities and differences among people.

TYPES OF DIVERSITY AND BARRIERS TO INCLUSION

Five types of Diversity

 Surface-level diveristy refers to

observable differences in people, including

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race, age , physical abilities, physical characteristics, and

gender.

 Deep-level diversity rfers to indivdual differences that

cannot be seen directly, including goals, values, personalities,

decision making styles, knowledge skills, abilities, and

attitudes.

 Separation diversity refers to differences in position or

opinion among group members reflecting disagreement or

opposition- dissimilarity in attitude or value. It may create

conflict among the group f they have conflicting goals.

 Variety diversity exists when there are meaningful

differences in a certain type or category including group

members expertise, knowledge or functional background.

Differences in technical capability.

 Disparity diversity reflects differences in the concentration

of valuable social assets or resources- dissimilarity in rank, pay,

decision-making authority, or status, for instance.

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TRENDS IN DIVERSITY

 By 2050, the total population in forecasted to grow from

282.1 million in 2000 to 419.9 million, a 49 percent increase.

 European countries’ population is expected to decline by

2050.

 Black population is projected to rise from 35.8 million in

2000 to 61.4 million in 2050

 The ASIAN population is forecasted to grow from 10.7

million in 2000 to 33.4 million in 2050

 The population is projected to become older

 By 2030, about one in five people will be sixty-five or over.

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GENERATIONAL DIFFERENCES

 Age is related to anxiety and emotional variables in their

workplace. These are not the case for everyone.

REVERSE MENTORING

 Pairs a senior employee with a junior employee, the focus is

on transferring the skills of the junior employee to the senior

employee.

BARRIERS TO INCLUSION
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Managing Diversity

Proactive things managers can do to promote diversity

 Top management support for diversity and for diversity

initiativs

 Diversity training and education

 Equal access to mentors and other influential company

employees

 Fair company policies

 Reciprocal mentoring

TRENDS IN GLOBALIZATION

Four factors in increasing in globalization

 Communication and transportation have improved

dramatically over the past several decades. Telephone service

has improved, communication networks span the globe and

can interact via satellite, and once-remote areas have become

routinely accessible. Telephone service in some developing

countries is now almost entirely by cellular phone technology

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rather than land-based wired telephone service. Fax and

electronic mail technologies allow managers to send

documents around the world in seconds as opposed to the

days it took just a few years ago. And newer applications

such as text messaging and Skype have made global

communication even easier. In short, it is simply easier to

conduct international business today than was the case just a

few years ago.

 Businesses (International Expansion) have expanded

internationally to increase their markets. Companies in

smaller countries, such as Nestlé in Switzerland and

Heineken in the Netherlands, recognized long ago that their

domestic markets were too small to sustain much growth and

therefore moved into the international arena. Many U.S.

firms, on the other hand, have only found it advantageous to

enter foreign markets in the last half-century. Now, though,

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most midsize and even many small firms routinely buy

and/or sell products and services in other countries

 Control of labor costs More and more firms are moving into

international markets to control costs, especially to reduce

labor costs. Plans to cut costs in this way do not always work

out as planned, but many firms are successfully using

inexpensive labor in Asia and Mexico.3 In searching for

lower labor costs, some companies have discovered well-

trained workers and built more efficient plants that are closer

to international markets. India, for instance, has emerged as a

major force in the high-tech sector. Turkey and Indonesia are

also growing in importance. And many foreign automakers

have built plants in the United States.

 Increased international competition many organizations

have become international in response to competition. If an

organization starts gaining strength in international markets,

its competitors often must follow suit to avoid falling too far
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behind in sales and profitability. Exxon Mobil Corporation

and Chevron realized they had to increase their international

market share to keep pace with foreign competitors such as

BP and Royal Dutch Shell

Cultural

 is the set of shared values, often taken for granted, that help

people in a group, organization, or society understand which

actions are considered acceptable and which are deemed

unacceptable.

Cultural competence

 the ability to interact effectively with people of different

cultures. Has a respectful awareness and understanding of

cultural differences.

Four components of cultural competence:

1. awareness of our own cultural worldview, and of our

reactions to people who are different

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2. Our attitude toward cultural differences

3. Knowledge of different worldviews and cultural practices

4. Cross cultural skills

Five basic conclusions on international management

1. Behavior in organizational settings does indeed vary

accross cultures.

 Employees in companies based in Japan, the United

States, and Germany are likely to have different attitudes and

patterns of behavior. The behavior patterns are also likely to be

widespread and pervasive within an organization.

2. Culture itself is one major cause of this variation

 Thus, although the behavioral differences just noted may be

caused in part by different standards of living, different

geographical conditions, and so forth, culture itself is a major

factor apart from other considerations.

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3. Organizations and the ways they are structures appear to

be growing increasingly similar

 Managerial practices at a general level may be becoming

more and more alike, but the people who work within

organizations still differ markedly.

4. The same individual behaves differntly in different

cultural settings

 A manager may adopt one set of behaviors when working

in one culture but change those behaviors when moved to a

different culture. For example, Japanese executives who come to

work in the United States may slowly begin to act more like

U.S. managers and less like Japanese managers. This, in turn,

may be source of concern for them when they are transferred

back to Japan.

5. Cultural diversity can be an importan source of synergy in

enhancing organizational effectiveness

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 More and more organizations are coming to appreciate the

virtues of diversity, but they still know surprisingly little

about how to manage it. Organizations that adopt a

multinational strategy can—with effort—become more than

a sum of their parts. Operations in each culture can benefit

from operations in other cultures through an enhanced

understanding of how the world works.7

Geert Hofstede

 a Dutch researcher, studied workers and managers in 60

countries and found that specific attitudes and behaviors

differed significantly because of the values and beliefs that

characterized those countries.

 The two primary dimensions that Hofstede found are the

individualism/collectivism continuum and power distance.

 Individualism
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exists to the extent that people in a culture define themselves

primarily as individuals rather than as part of one or more

groups or organizations.

At work, people from more individualistic cultures tend to be

more concerned about themselves as individuals than about

their work group, individual tasks are more important than

relationships, and hiring and promotion are usually based on

skills and rules.

 Collectivism

is characterized by tight social frameworks in which people

tend to base their identities on the group or organization to

which they belong. At work, this means that employee–

employer links are more like family relationships, relationships

are more important than individuals or tasks, and hiring and

promotion are based on group membership. In the United

States, a very individualistic culture, it is important to

perform better than others and to stand out from the crowd. In
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Japan, a more collectivist culture, an individual tries to fit in

with the group, strives for harmony, and prefers stability

 Power distance

which can also be called orientation to authority, is the extent

to which people accept as normal an unequal distribution of

power. In countries such as Mexico and Venezuela, for

example, people prefer to be in a situation in which authority is

clearly understood and lines of authority are never bypassed.

On the other hand, in countries such as Israel and Denmark,

authority is not as highly respected and employees are quite

comfortable circumventing lines of authority to accomplish

something. People in the United States tend to be mixed,

accepting authority in some situations but not in others.

Hofstede also identified other dimensions of culture.

Uncertainty avoidance, which can also be called preference for

stability, is the extent to which people feel threatened by

unknown situations and prefer to be in clear and unambiguous

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situations. People in Japan and Mexico prefer stability to

uncertainty, whereas uncertainty is normal and accepted in

Sweden, Hong Kong, and the United Kingdom. Masculinity,

which might be more accurately called assertiveness or

materialism, is the extent to which the dominant values in a

society emphasize aggressiveness and the acquisition of money

and other possessions as opposed to concern for people,

relationships among people, and overall quality of life. People in

the United States tend to be moderate on both the uncertainty

avoidance and masculinity scales. Japan and Italy score high on

the masculinity scale while Sweden scores low.

Hofstede’s framework has recently been expanded to include

long-term versus short-term orientation. Long-term values

include focusing on the future, working on projects that have a

distant payoff, persistence, and thrift. Short-term values are more

oriented toward the past and the present and include respect for

traditions and social obligations. Japan, Hong Kong, and China

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are highly long-term oriented. The Netherlands, the United

States, and Germany are moderately long-term oriented. Pakistan

and West Africa tend to be more short-term oriented. Hofstede’s

research presents only one of several ways of categorizing

differences across many different countries and cultures. His

findings, however, are now widely accepted and have been used

by many companies. They have also prompted ongoing research

by others. The important issue to remember is that people from

diverse cultures value things differently from each other and that

people need to take these differences into account as they work.

CROSS-CULTURAL DIFFERENCES AND SIMILARITIES

Global perspective
 A willingness to be open to and learn from the alternative systems and
meanings of other people and cultures, and a capacity to avoi assuming that
people from everywhere are the same.

Technology
Refers to the methods used to create products, including both physical goods
and intangible services
3 specific areas of technology:
1. the shift toward a service- based economy
2. The growing use of technology for competitive change
3. Mushrooming change in information technology
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tECHNOLOGY AND SERVICE TECHNOLOGIES

Manufacturing is a form of business that combines and transforms resources into
tangible outcomes that are then sold to others
Service organization is one that transforms resources into an intangible output
and creates time or place utility for its customers

Technology and competition

 lowest-cost producer
 Most technologically advanced products on the market
 Meeting constant demands to decrease cycle time
Cycle time is the time that takes a firm to accomplis some recurring
activity or function from beginning to end
Competitive=decrease cycle time=efficient

INFORMATION TECHNOLOGY
ADVANTAGES leaner organizations, more flexble operations, increased
collaboration among employees, more flexible work sites, and improved
management processes and systems
DISADVANTAGES

resulted in less personal communication, less “down time” for

managers and employees, and an increased sense of urgency vis-

à-vis decision making and communication— changes that have

not necessarily always been beneficial.

Ethics
are a person’s beliefs regarding what is right or wrong in a
given situation.

SOCIAL RESPONSIBILITY BEFORE NEW EMPLOYMENT

BME 12: HUMAN BEHAVIOR IN ORGANIZATION