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ADMS 2400 Organizational Behaviour course notes

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York University
Administrative Studies
ADMS 2400
Julia Richardson

ADMS 2400 Organizational BehaviourNotes Chapter 1 What is Organizational Behaviour Organizational Behaviour Defined Defn study of understanding explaining improving the attitudes of individuals and groups in an org OB can be contrasted with 2 other courses HRM takes theories and principles studied in OB and explores application of those principles in orgs Strategic management focuses on prod choicesindustry characteristics that affect an orgs profitabilityeg Relationship bn firm diversification and firm profitabilityRole of Management Theory theories found in OB have been heavily influenced by management approaches as well Frederick Taylor and Max Weber placed heavy emphasis on specialization coordination efficiency Scientific management using scientific methods to design efficient work processes Taylor used scientific methods to study how to optimize performance of any task bureaucracy which emphasizes the control and coordination of its members Max Weber was linked to through a strict chain of command centralized decision making Characteristics of this includedivision of labour with high level of technical specializationstrict chain of commandsystem of formal rules that ensured consistencydecision making at top of organization classical theorists thought productivity problems resulted from design flaws inadequate work conditions Human relations movement recognizes psychological attributes of individual workers and social forces within work groups had effects on behaviours Hawthorne studies revealed importance of group values leadership job satisfaction org culture human relations theorists thought productivity problems resulted from worker alienation failure of work to satisfy important personal needs little emphasis on characteristics of formal organization contemporary management theory recognizes dependencies bn classicalhuman relations approach fundamental to the contingency approach is that there is no one best universal principleIntegrative Model of Organizational Behaviour fig 11 three categories Individual Outcomes most employees have two goals for their working lives to perform jobs well to remain members of an org that they respect managers have similar goals for them maximize performance and ensure they stay with the firm there are specific behaviours that constitute good job performance as well as beliefs attitudes and emotions that cause an employee to be committed to the firm Individual Mechanisms directly affect job performance and organizational commitment job satisfaction motivation trust ethics Individual Group and Organizational Context we each bring a unique set of personal attributes to our work that makes us unique as well as provide an individual context that explains behavior employees do not work alone every company has an organizational culture that captures the way things are in the org knowledge about rules norms values that shape employee attitudes and behavioursDoes OB Matter effective management of OB can help make a product get better over the long term Building a Conceptual Argument it captures why OB might affect bottomline profitability of an organization resourcebased view describes what makes resources valuable and capable one argument is based on of creating LT profits for the firm suggests that the value of resources depends on several factors rare inimitableRare are diamonds oil and good people within the organizationInimitable are good people that can be hard to copy in their behavior and work ethic History people create history collective pool of experience and knowledge that benefits the organization challenge is a company may be competing for the first time in new market with another firm thats been in the market for a lot longer Numerous Small Decisions small decisions every day that are invisible to competitors people who make to successfully mimic the practices of a competitor take into consideration daily decisions they make Socially Complex Resources people are the source of socially complex resources resources created by culture teamwork trust but the method of how to replicate the advantage is unclear Research Evidence argument can be built with hard data to back it up good people are both rare and inimitable and therefore create a resource that is valuable for creating competitive advantage several research studies have been conducted on the topic survey assessing high performance work practices where questions were asked about hiring info sharing training performance managementresults showed 1 unit increase in workforce involved in practice showed 7 turnover decreasebetter OB practices were associated with better firm performance another study examined firm survival instead of survey prospectus filed by each firm was usedresults showed firms that valued OB had 19 higher survival rate study asked Cdn business leaders to evaluate some of the nations largest companies on vision cultural alignment motivation corporate financial performance CSRresults show firms with good OB practices tend to be higher performersSo Whats So Hard good people constitute a valuable resource for companies good OB matters in terms of company profitability some companies dont do a good job of managing their people though effective management of OB requires a belief that several different practices are important with LT commitment to improving those practices stRule of oneeighth 12 of orgs will actually do what is required to build profits by putting ppl 1 high job performance depends not just on employee motivation but also on high levels of satisfaction effectively managing stress committing to employee learning failing to do those could hinder the effectiveness of OBHow do we know what we know about OB scientific studies are based on the scientific method theory specifying how and why variables are related begins withtells a story and supplies who what when where why theories are used to inspire hypothesis written predictions that specify relationships bn variables to tell if hypothesis was supported correlation is examined statistical rn bn two variablesranges from 1 to 1 perfect statistical rn 0 is no statistical relationshipcorrelation of 05 is considered strong 03 moderate 01 weakweak correlations could still be important if they predict costly behaviours like theft little can be learned from a single study the best way is to conduct many different studies metaanalysis could then be used method combining results of multiple scientific studies by calculating a weighted average correlation Chapter 14 Organizational CultureWhy do Some Organizations have Different Cultures than Others Organizational culture shared social knowledge within an org regarding rules norms values that shape the attitudes and behaviours of its employees culture is shared social knowledge among members of the organization culture tells employees what the rules norms and values are within an organization culture shapes and reinforces employee attitudes by creating a system of control over themCulture Components 3 major components observable artifacts espoused values basic underlying assumptions Observable Artifacts Defn aspects of an organizations culture that employees and outsiders can easily see
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