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Lecture 1

MGCR 222 Lecture Notes - Lecture 1: Red Lobster, Vertical Integration, Competitive Advantage


Department
Management Core
Course Code
MGCR 222
Professor
All
Lecture
1

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Lecture 1: Introduction to Organizational Behaviour (OB)
Question: Why study OB? To identify,
understand, and predict how what individuals
and teams do in organizations affects
organizational goals and performance.
Contributing Disciplines to the OB Field:
Formally Defining an Organization
Organization a social unit which functions on a relatively continuous basis to
achieve a set of goals
Organizations could be:
o Long-term project teams
o Student organizations
o Publicly-traded and privately-held companies
o NGOs
o Government agencies, hospitals, and universities
OB Uses systematic study to build models and complement intuition

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o It assumes that fundamental consistencies underlie our behaviour and
that these patterns can be modeled to understand, predict, and improve
behaviours based on scientific evidence
Systematic study…
o Bases conclusions on scientific evidence on data gathered under
controlled conditions (where data are measured and interpreted in a
reasonably rigorous manner)
o Improves our ability to accurately understand and predict behaviour,
assuming that behaviour is not random, that fundamental consistencies
underlie behaviour, and that these patterns can be identified and modified
to improve performance
Some aspects of organizational performance include:
Volkswagen Case
Video Summary
Mission what an organization aspires to contribute to society
Values what principles guide an organization’s actions
Vision where an organization would like to be in the
future
VW Emission Scandal: What Went Wrong?
o VW’s goal was to becomes the world’s largest
automaker by overtaking Toyota
o Had difficulty in the US market
o VW admitted to installing a “defeat software
device” to lower EPA emissions in tests
o About 11 million cars are affected
o VW is central to the German economy
Financial
Performance
productivity
effectiveness
efficiency
Social
Performance
environment
community
Ethical
Performance
adhering to
norms and
regulations
Satisfaction of
Stakeholders
customers
citizens
employees
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