MHR 405 Midterm: Chapter 1, 2, 3, 4, 7 and Appendix A

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Published on 14 Feb 2017
School
Ryerson University
Department
Human Resources
Course
MHR 405
MHR 405: Organizational Behaviour Study Notes
Page | 1
Chapter 1: Introduction to the Field of Organizational Behaviour
The Field of Organizational Behaviour
Organizational Behaviour (OB): Study of what people think, feel and do in and around
organizations
Examines how individuals and teams relate
Studies how organization interacts with external environment
Organizations: Groups of people who works interdependently to achieve the same goal or
purpose
1. Collective entities (key feature)
Human beings interacting in an organizational way
Goals accomplish by sharing materials, information or expertise
2. Collective sense of purpose (2nd key feature)
Vision/mission statements/direction
Not always well-defined/agreed on
Why Study OB?
OB helps make sense of and predict the world we live in
Question personal beliefs and assumptions and to adopt more evidence-based models of
workplace behaviour
Help get things done in workplace
Predicts organizational survival and success
OB Characteristics: Leadership, employee attitudes, performance-based rewards, employee
development, work-life balance…
Perspectives of Organizational Effectiveness
Ultimate dependent variable
Best yardstick of organizational effectiveness
o Open Systems
o Organizational Learning
o High-Performance Work Practice
o Stakeholders
Organizations effective when relationship with external environment and internal
subsystems are good
Open Systems Perspective
Organization are complex organism that live within external environment
Open and permeable relationship
Closed System = operate without dependence on or interaction with external environment
Open System = dependence on external environment
o Feedback from external environment received based on value of outputs and
availability of future inputs
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MHR 405: Organizational Behaviour Study Notes
Page | 2
Organization Environment Fit
Good fit means organization’s input, processes and outputs align with needs and
expectation of external environment
Three Ways Companies Maintain Good Environment Fit
1. Change companies’ product and services and how outputs are produced
2. Actively maintaining their external environment
3. Change business or market location
Internal Subsystems Effectiveness
How well inputs are transformed into outputs
Organizational Efficiency (Productivity): Most common indicator of internal transformation
process
Ratio of inputs to outputs
Effective organization important feature = internal subsystems coordinate well with each
other
Organizational Learning Perspective
Effective organizations find ways to acquire, share, use and store knowledge
o Processes build organization’s stock of knowledge (intellectual capital)
Three Forms of Intellectual Capital
1. Human Capital
2. Structural Capital
3. Relationship Capital
Human Capital: Knowledge, skills and abilities that employees carry around in their needs
Competitive advantage because valuable, rare, difficult to imitate and non-substitutable
o Valuable since employees are essential for survival and success
Structural Capital: Knowledge captured and retained in an organization’s systems and structures
Work procedure documentation
Physical production live layout
Organization’s finished product because knowledge extracted by discovering their use
and how they’re constructed (reverse engineering)
Relationship Capital: Value derived from organization’s relationship with customers, suppliers
and others who provided mutual value for organization
Goodwill, brand image, combination of relationships that organizational members have
with outside
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MHR 405: Organizational Behaviour Study Notes
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Four Organizational Learning Process
Knowledge Sharing
Communication
Training
Information Systems
Observation
Knowledge Acquisition
Individual Learning
Environmental Scanning
Grafting
Experimentation
Knowledge Use
Knowledge Awareness
Sense making
Autonomy
Empowerment
Knowledge Storage
Human Memory
Documentation
Databases
Practices or Habits
Knowledge Acquisition: Extracting information and ideas from external environment and
through insight
Knowledge Sharing: Distributing knowledge through out organization
Knowledge Use: Employee’s awareness on where t exists, how to locate and freedom of use to
gain competitive advantage
Knowledge Storage: Process of holding knowledge for later retrieval
Stored Knowledge (Organizational Memory): Knowledge that employees recall and embedded in
organizational systems and company
Organizational Memory Strategies
1. Motivating employees to stay in company
2. Systematically transfer knowledge to other employees
3. Document knowledge that’s hidden in employee’s minds
High Performance Work Practices (HRWP) Perspective
Enable company to transform inputs into outputs through human capital
Figures ways to generate most value from human capital
Employee Involvement and Job Autonomy
↑ motivation, decisions, responsiveness and commitment to change
Self-directed teams
Improves organization’s effectiveness
o Human capital
o Adapt better to rapidly changing environment
o Strengthens motivation and positive attitudes towards employer
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Document Summary

Chapter 1: introduction to the field of organizational behaviour. Organizational behaviour (ob): study of what people think, feel and do in and around organizations. Studies how organization interacts with external environment. Organizations: groups of people who works interdependently to achieve the same goal or purpose: collective entities (key feature) Human beings interacting in an organizational way. Goals accomplish by sharing materials, information or expertise: collective sense of purpose (2nd key feature) Ob helps make sense of and predict the world we live in. Question personal beliefs and assumptions and to adopt more evidence-based models of workplace behaviour. Ob characteristics: leadership, employee attitudes, performance-based rewards, employee development, work-life balance . Best yardstick of organizational effectiveness: open systems, organizational learning, high-performance work practice, stakeholders. Organizations effective when relationship with external environment and internal subsystems are good. Organization are complex organism that live within external environment. Closed system = operate without dependence on or interaction with external environment.