Chapter 1 – Organizational Behaviour and Management
What are Organizations?
•Organizations: Social inventions for accomplishing common goals through group
•Essential characteristic of an organization is the coordinated presence of people.
•OB is about understanding people and managing them to work effectively.
•OB is concerned with how organizations can survive and adapt to change.
•People have to
oBe motivated to join and remain in the organization
oCary out their basic work reliably, in terms of productivity, quality, and
oBe willing to continuously learn and upgrade their knowledge and skills
oBe flexible and innovative
•Organizations depend on interaction and coordination among people to accomplish
•OB is concerned with how to get people to practise effective teamwork.
What is Organizational Behaviour?
•Organizational Behaviour: The attitudes and behaviours of individuals and
groups in organizations. OB provides insight about effectively managing and
•Studies how organizations can be structured more effectively and how events in their
external environments affect organizations.
•Important areas of OB include cooperation, conflict, innovation, resignation, or
•Issues in OB include organizational culture and its role in an organization’s success,
employee learning, training, and career planning, motivation and compensation, and
Why Study Organizational Behaviour?
Organizational Behaviour is Interesting
•OB helps us understand why employees become committed to an organization and
what motivates them to work hard, and why organizations are successful/failures.
Organizational Behaviour is Important
•Understanding OB can make us more effective managers, employees or consumers
•OB explains the differences between successful and failure organizations and uses
the explanations to improve organizational effectiveness and efficiency.
Organizational Behaviour Makes a Difference
•Sustained competitive advantage and organizational effectiveness are increasingly
related to the management of human capital and organizational behaviour.
Goals of Organizational Behaviour
Predicting Organizational Behaviour
•Predictions of organizational behaviour are not always accurate.
•OB provides a scientific foundation that helps improve predictions of organizational
Explaining Organizational Behaviour
•Determining why people are more or less motivated, satisfied, or prone to resign.
•Have to predict something is going to happen, find out why, then correct it.
•A particular behaviour could have many different causes, each of which requires a
specific solution (e.g., people resign from their jobs for many different reasons).
•Causes of a behaviour can change over time (e.g., people may quit depending on the
Managing Organization Behaviour
•Management: The art of getting things accomplished in organizations through
•Managers acquire, allocate, and utilize physical and human resources to accomplish
•A variety of management styles might be effective depending on the situation at
Early Prescriptions Concerning Management
The Classical View and Bureaucracy
•Classical Viewpoint: An early prescription on management that advocated high
specialization of labour, intensive coordination, and centralized decision making.
oEach department tends to its own affairs, with centralized decision making
from upper management providing coordination.
oTo maintain control, managers have fairly few workers, except for lower-level
jobs where machine pacing might substitute for close supervision.
•Scientific Management: Frederick Taylor’s system for using research to determine
the optimum degree of specialization and standardization of work tasks (e.g., written
•Bureaucracy: Max Weber’s idea type of organization that included a strict chain of
command, detailed rules, high specialization, centralized power, and selection and
promotion based on technical competence. Characteristics:
oStrict chain of command in which each member reports to only a single
oCriteria for selection and promotion based on impersonal technical skills
rather than nepotism or favouritism.
oA set of detailed rules, regulations, and procedures ensuring that the job gets
done regardless of who the specific worker is.
oThe use of strict specialization to match duties with technical competence.
oThe centralization of power at the top of the organization.
The Human Relations Movement and a Critique of Bureaucracy
•Hawthorn Studies: Research conducted at the Hawthorne plant of Western
Electric in the 1920s and 1930s that illustrated how psychological and social
processes affect productivity and work adjustment. Concerned with the impact of
fatigue, rest pauses, and lighting on productivity.
•Human Relations Movement: A critique of classical management and bureaucracy
that advocated management styles that were more participative and oriented toward
employee needs. Catered more to the social and psychological needs of employees.
oStrict specialization is incompatible with human needs for growth and
achievement. This can lead to employee alienation from the organization and
oStrong centralization and reliance on formal authority often fail to take
advantage of the creative ideas and knowledge of lower-level members, who
are often closer to the customer. As a result, the organization will fail to learn
from its mistakes, which threatens innovation and adaptation. Resistance to
change will occur as a matter of course.
oStrict, impersonal rules lead members to adopt the minimum acceptable level
of performance that the rules specify. If a rule states something, it will
become the norm even if higher performance levels are possible.
oStrong specialization causes employees to lose sight of the overall goals of the
organization = “red-tape mentality” common in bureaucracies.
Contemporary Management – The Contingency Approach
•Contingency Approach: An approach to management that recognizes that there is
no one best way to manage, and that an appropriate management style depends on
the demands of the situation e.g., the effectiveness of a leadership style is contingent
on the abilities of the followers.
What do Managers do?
Managerial Roles (Henry Mintzberg)
•Interpersonal Roles: Expected behaviours that have to do with establishing and
maintaining interpersonal relations.
oFigurehead role: Managers serve as a symbol of their organization rather
than active decision makers.
oLeadership role: Managers select, mentor, reward, and discipline employees.
oLiaison role: Managers maintain horizontal contacts inside and outside the
•Informational Roles: Concerned with the various ways managers receive and
oMonitor role: Managers scan the internal and external environments of the
firm to follow current performance and to keep themselves informed of new
ideas and trends.
oDisseminator role: Managers send information on both facts and preferences
oSpokesperson role: Concerns mainly sending messages into the organization’s
•Decisional Roles: Deals with decision making.
What are organizations: organizations: social inventions for accomplishing common goals through group effort. Social inventions: essential characteristic of an organization is the coordinated presence of people, ob is about understanding people and managing them to work effectively. Group effort: organizations depend on interaction and coordination among people to accomplish their goals, ob is concerned with how to get people to practise effective teamwork. What is organizational behaviour: organizational behaviour: the attitudes and behaviours of individuals and groups in organizations. Ob provides insight about effectively managing and changing behaviours: studies how organizations can be structured more effectively and how events in their external environments affect organizations. Important areas of ob include cooperation, conflict, innovation, resignation, or ethical lapses. Issues in ob include organizational culture and its role in an organization"s success, employee learning, training, and career planning, motivation and compensation, and communication.