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Human Resources
Course Code
MHR 405
Louis Pike
Study Guide

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Chapter 1
Organizational Behaviour is the study of what people think, feel and do in and
around organizations.
Organizations are groups of people who work interdependently toward some
purpose. (Consist of people who share common objectives)
Organizational Effectiveness Is a broad concept as it has several perspectives. It
is mainly an organizations fit with the external environment, internal subsystems
configuration for high performance, organizational learning, and its ability to satisfy
the needs of key stakeholders.
Open Systems - Is a perspective which stats that organizations depend on the
external environment for resources, affect that environment through their output,
and consist of internal subsystems that transform input into output. (View Pg. 5)
Open: Describes this permeable relationship ^
Closed: closed systems operate without dependence on or interaction with
the external environment
Organizational Efficiency - The amount of outputs relative to inputs in an
organizations transformation process.
Organizational Learning - A perspective which states that organizational
effectiveness depends on the organizations capacity to acquire, share, use, and store
valuable knowledge.
Absorptive Capacity The ability to recognize the value of new information,
assimilate it, and use it fore value-added activities.
Intellectual Capital A company’s stock of knowledge, including human capital,
structural capital, and relationship capital.
-Includes relationship capital, which is the value derived from an
organizations relationship with customers, suppliers, and others who
provide added mutual value for the organization.
Human Capital The stock of knowledge, skills, and abilities among employees that
provide economic value to the organization.
Structural Capital Knowledge embedded in an organization’s systems and

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Organizational memory -[Storage and preservation of intellectual capital] Includes
documents, objects, and anything else that [provides meaningful information about
how the organization operates.
High-Performance Work Practices (HPWP) The HPWP perspective begins with
the idea that human capital - the knowledge, skills, and abilities that employees
possess- is an important source of competitive advantage for organizations.
HPWP four most recognized:
1.Employee involvement
2. Job autonomy
3. Employee competence
4. Performance and skill development
Stakeholders Individuals, organizations, and other entities that affect, or are
affected by, the organizations objectives and actions.
- Organizational leaders need to decide how much priority to give to each
group. One commonly cited factor is to favour stakeholders with the most
Values Are relatively stable, evaluate beliefs that guide our preferences for
outcomes or courses of action in a variety of situations.
Ethics Refers to the study or moral principles or values that determine whether
actions are right or wrong and outcomes are good or bad.
Corporate social responsibility (CSR) - Consists of organizational activities
intended to benefit society and the environment beyond the firm’s immediate
financial interests or legal obligations.
- Many companies have adopted the triple-bottom-line philosophy: They
try to support the economic, social, and environmental spheres of
Globalizations Refers to economic, social, and cultural connectivity with people in
other parts of the world.
Surface-Level Diversity - The observable demographic or physiological differences
in people, such as their race, ethnicity, gender, age, and physical capabilities.
Deep-Level Diversity - Differences in the psychological characteristics of
employees, including personalities, beliefs, values, and attitudes.
Work-Life Balance The degree to which a person minimizes conflict between
work and non-work demands.
Virtual Work Work performed away from the traditional physical workplace by
means of information technology.
Anchors of Organizational Behaviour Knowledge

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- These conceptual anchors represent the principles on which organizational
behaviour knowledge is developed and refined.
The Multidisciplinary Anchor OB should import knowledge from many
Systematic Research Anchor OB should study organizations using systematic
research methods
Contingency Anchor OB theory should recognize that the effects of actions often
vary with the situation
Multiple Levels of Analysis Anchor - OB knowledge should include three levels of
analysis: individual, team, organization.
Chapter 3 and 4
Self-Concept - An individuals self-beliefs and self-evaluations. (“Who am I?” and
“How do I feel about myself?”
Complexity: How many distinct and important roles or identities does a
person think about to define him/herself?
Consistency: How compatible are the person’s self-concept identities with
each other and with the person’s personality, values, and other attributes?
Clarity: To what extent does the person define him/herself clearly,
confidently, and consistently over time?
Self-Enhancement A person’s inherent motivation to have a positive self-concept
such as being competent, attractive, lucky, ethical, and important.
Self-Verifications Stabilizes individual’s self-concept, which, in turn, provides an
important anchor that guides his or her thoughts and actions.
Self-Efficacy - Refers to a person’s belief that he or she can success-fully complete a
Locus of Control Is defined as a person’s general beliefs about the amount of
control he or she has over personal life events.
Internal locus of control: Believe that their personal characteristics mainly
influence life’s outcomes.
External locus of control: Believe that events in life are due mainly to date,
luck, or conditions of the external environment
Social Identity Theory A theory that explains that people define themselves by
the groups to which they belong or have emotional attachment
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