A Strategic Approach
To Organizational
Behavior
Michael A. Hitt
C. Chet Miller
Adrienne Colella
Organizational behavior
– The actions of individuals and groups in an organizational
context.
Managing organizational behavior
– Actions focused on acquiring, developing, and applying the
knowledge and skills of people.
Strategic approach to OB
– An approach that involves organizing and managing the
people’s knowledge and skills effectively to implement the
organization’s strategy and gain a competitive advantage.
Factors and Outcomes of Strategic Approach
Organizational Factors
(culture, work
environments, adaptability
Organizational Success
Satisfaction of Productivity of
Individuals and Individuals and
Groups Groups
Interpersonal Factors
Individual Factors (learning (leadership, communication,
ability, personality, values, decision-making skill, intra-
motivation, stress) and inter-group dynamics,
communication)
Adapted from: Exhibit 1.1 Factors and Outcomes of a Strategic Approach to Organizational Behavior
Strategic OB Lens
Organization Activities Required Skills
Level
Senior • Talk with insiders and • Conceptualizing
Managers outsiders about • Communicating
• Vision • Understanding the
• Strategy perspectives of others
• Other major issues
• Help middle managers • Listening
• Define and redefine • Conflict management
their roles • Negotiating
• Manage conflict • Motivating
• Create and maintain • Interpersonal influence
the organization’s
culture
Strategic OB Lens
Organization Activities Required Skills
Level
Middle • Champion strategic • Networking
Managers ideas • Communicating
• Help firm to remain • Influencing
adaptive
• Process data and • Analyzing
information for use by • Communicating
other individuals
• Deliver strategic • Communicating
initiatives to lower- • Motivating
level managers • Understanding values
• Managing stress
Strategic OB Lens
Organization Activities Required Skills
Level
Lower-level • Coaching firm’s • Teaching
Managers associates (workers) • Listening
• Understanding personalities
• Managing stress
• Removing obstacles • Negotiating
for associates • Influencing others
• Deal with personal • Counseling
problems of associates • Understanding personalities
• Design jobs, team • Negotiating
structures, and reward • Group dynamics
systems
Foundations of Strategic OB
Behavioral science disciplines
– Psychology
– Social psychology
– Sociology
– Economics
– Cultural anthropology
Strategic approach integrates knowledge from all these
disciplines
Strategic approach focuses on behaviors and
processes that help to create competitive advantages
and financial success (goal is to improve the outcomes
of organizations)
Common Features of Organizations
Network of individuals
System
Coordinated activities
Division of labor
Goal orientation
Continuity over time, regardless of change in
individual membership
Human Capital and Competitive
Advantage
Competitive
Advantage
Selective Hiring Large pools of applicants are built through advertising, word of
mouth, and internal recommendations. Applicants are evaluated
rigorously using multiple interviews, tests, and other selection tools.
Applicants are selected on the basis of not only skills but also fit with
culture and mission.
Extensive Training New associates and managers are thoroughly trained for job skills
through dedicated training exercises as well as on-the-job training.
They also participate in structured discussions of culture and mission.
Existing associates and managers are expected or required to
enhance their skills each year through in-house or outside training
and development. Often, existing associates and managers are
rotated into different jobs for the purpose of acquiring additional skills.
Decision Power Associates are given authority to make decisions affecting their work
and performance. Associates handle only those issues about which
they have proper knowledge. Lower-level managers shift from closely
supervising work to coaching associates. In addition to having
authority to make certain decisions, associates participate in
decisions made by lower-level and even middle managers.
Information Sharing Associates are given information concerning a broad variety of
operational and strategic issues. Information is provided through
bulletin boards, company intranets, meetings, posted performance
displays, and newsletters.
Incentive Associates are compensated partly on the basis of performance.
Compensation Individual performance, team performance, and business
performance all may be considered.
High-involvement managers:
Identify situations in which responsibility can be
delegated
Manage through encouragement and commitment
rather than fear and threats
Respect and value each associate’s skills and
knowledge
Empower people in ways that are consistent with their
uniqueness as individuals
Invest effort in building and maintaining trust
Managing Organizational Behavior