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Commerce (1,696)
Chapter 1-3

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Department
Commerce
Course
COMMERCE 1BA3
Professor
Emad Mohammad
Semester
Fall

Description
CHAPTER ONE: ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT What Are Organizations?  Organizations: social inventions for accomplishing common goals through group effort Social Inventions  Essential characteristic of organizations is the coordinated presence of people (not things)  OB is about understanding people and managing them to work efficiently Goal Accomplishment  All organizations have survival as a goal  OB is concerned with how organizations can survive and adapt to change  Certain behaviours necessary for survival and adaption  People have to: o Be motivated to join and remain in the organization o Carry out basic work reliably, in terms of productivity, quality and service o Be willing to continuously learn and upgrade knowledge and skills o Be flexible and innovative Group Effort  Organizations are based on group efforts  Depend on interaction and coordination among people to accomplish goals  OB is concerned with how to get people to practice effective teamwork What Is Organizational Behaviour?  Organizational behavior: o The attitudes and behaviours of individuals and groups in organizations o Studies attitudes and behaviours o Provides insight on how to effectively manage/change them o How organizations can be structured more effectively  Behaviours: cooperation, conflict, innovation, resignation, ethical lapses Why Study Organizational Behaviour?  Organizational Behaviour Is Interesting: What effect does the way managers treat their employees have on their attitudes and behaviours?  Organizational Behaviour is Important: o What happens in organization impacts consumers, managers and employees o OB tries to explain differences between failed organizations and successful organizations o Try to improve organizational effectiveness and efficiency  Organizational Behaviour Makes a Difference: o Main factor that differentiates organizations is their workforce/human capital o Most successfully organizations are those that effectively manage employees o Changing human resources and management practices result in improved employee and customer satisfaction How Much Do You Know About Organizational Behaviour?  Personalities of effective leaders vary  People prefer routine jobs  Managers are not well informed about pay of their peers and superiors  Workers underestimate their own absenteeism  Pay is not always them most effective way to motivate works and improve job performance  Statements can be both true and false (have true and false components) Goals of Organizational Behaviour Predicting Organizational Behaviour  Lives made easier when can predict the behavior of others  Ex. helps to be able to predict when people will make ethical decisions, create innovative products or engage in sexual harassment  Can sometimes predict the behavior of organizations Explaining Organizational Behaviour  OB tries to explain events in organizations  Accurate prediction precedes explanation  Want to explain why people are more/less motivated, satisfied, prone to resign  Must find out why a behavior is happening before correcting it  Hard to explain events because could have more than one explanation Managing Organizational Behaviour  Management: the art of getting things accomplished in organizations through others  Managers acquire, allocate and utilize physical and human resources to accomplish goals  Variety of management skills may be effective depending on situation  Behavior can managed if can be predicted and explained Early Prescriptions Concerning Management The Classical View and Bureaucracy  Occurred in 1900s  Classical viewpoint: o High degree of specialization of labour o High degree of coordination o Centralized decision making from upper management  Scientific Management (Fredrick Taylor): o Determine the optimum degree of specialization and standardization o Instructions that clearly defined work procedures o Supervisors should standardize workers movements and breaks for maximum efficiency  Max Weber: o Ideal type of organization was bureaucracy o Strict chain of command, detailed rules, high specialization, centralized power o Promotion based on technical competence o Wanted to standardize behavior in organizations The Human Relations Movement and a critique of Bureaucracy  Hawthorne studies (Elton Mayo): o Tested the effects of lighting on workers’ productivity o Had control group and test group o Productivity rose in both groups because felt special (because were included in the experiment)  Human Relations Movement: o Critique of classical management and bureaucracy o Advocated management styles that were participative and oriented toward employee needs o Strict specialization does not allow growth and achievement o Strong centralization fails to use creative ideas/knowledge of lower- level members who are closer to customers o Strict rules will cause employees to produce at the minimum o Strong specialization causes employees to lose sight of overall goals of organization Contemporary Management – The Contingency Approach  Some aspects of classical and human relations approach are needed  Classical: control and coordination are critical  HR: need for flexibility and adaptability  Contingency approach: o No one best way to manage o An appropriate management style depends on the demands of the situation What Do Managers Do? Managerial Roles  Henry Mintzberg discovered complex set of roles played by managers: Interpersonal Roles Figurehead Serve as symbols of organization rather than active decision makers (ex. Walt Disney) Leadership Select, mentor, reward, discipline employees Liaison Maintain horizontal contacts inside and outside the organization Information Roles Monitor Scan the internal and external environments of the firm Disseminator Send information on facts and preference to others Spokesperson Sending messages into organization’s external environment Decision Roles Entrepreneur Turn problems and opportunities into plans for improved changes Disturbance Handler Deal with problems from employee conflicts and address threats to resources Resource Allocation Conduct major negotiations with other organizations/individuals Managerial Activities 1. Routine Communication: o Sending and receiving of info (meetings) o Handling of paperwork 2. Traditional Management: o Planning o Decision making o Controlling 3. Networking: o Interacting with people outside of organization o Informal socializing and politicking with insiders 4. Human Resource Management: o Motivating and reinforcing o Disciplining and punishing o Managing conflict o Staffing o Training and developing employees Managerial Agendas  John Kotter studied behavior patterns of managers  Agenda Setting: o Agendas made before assumed positions o Concerned with “people issues” and were less numerical o Based on wide-ranging informal discussions with wide variety of people  Networking: o Established formal and informal network of key people inside and outside of organizations o Insiders: peers, employees, bosses o Outsiders: customers, suppliers, competitors, government officials, the press  Agenda Implementation: o Used networks to implement agendas o Go anywhere in network for help Managerial Minds  Herbert Simon and Daniel Isenberg  Experienced managers use intuition in several ways: o To sense a problem exists o To perform well-learned mental tasks rapidly o To synthesize isolate pieces of info and data o To double-check analysis International Managers  Style managers use and emphasis they give to different actions vary across cultures  This affects both managers’ and employees’ expectations about interpersonal interaction  North America: managers seen as cultural heroes  Germany: worships engineers and has less managers  Japan: managers pay attention to groups rather than individuals  Netherlands: managers exhibit modesty and strive for consensus  Technical requirements for accomplishing goals are the same  Only behavioural requirements are different Some Contemporary Management Concerns Diversity – Local and Global  Visible minorities are fastest growing segment of population  Two thirds of today’s entrants to Canadian labour force will be women, visible minorities, aboriginals, people with disabilities  Working population is aging  More people are starting to work past the age of 65  More retired people are coming back into the workforce with simpler jobs (ex. fast food restaurant)  Organizations develop flexible benefit plans, compressed workdays, part- time jobs to attract/retain older workers  Multinational expansion, strategic alliances, joint ventures require employees/managers to come into contact with other cultures  North American companies that operate in other countries must understand culture Employee-Organization Relationships  Lots of companies have been downsizing, restructuring, re-engineering and outsourcing  Consequences are decreased trust, morale, commitment, and shifting loyalties  Survey by Towers Perrin showed: o 1/3 of employees are unhappy in work o ½ of workers in Canada and US have negative feeling toward job and are looking for other work o Trust in senior management is declining  Reasons: boredom, overwork, concern about future, lack of support/recognition from bosses  Absenteeism is rising in Canada in all age groups and sectors  Cause is increased stress  Work related illness is on the rise  It is in a company’s best interest to create a workplace that workers want to come to so they will not quit and be more productive A Focus on Quality, Speed and Flexibility  Quality: everything from speedy delivery to producing goods/services in an environmentally friendly manner  Quality tactics: o Extensive training o Frequent measurement of quality o Attention to work processes o Emphasis on preventing service/production errors  Hypercompetitive environments: o Constant change and high levels of uncertainty o Competition has become so fierce for some organizations o Need to be flexible so can rapidly respond to changing conditions  Job flexibility allows company to operate with less workers  Workers can be move wherever they are needed depending on type and volume of orders received Talent Management  Talent management: an organization’s processes for attracting, developing, retaining, utilizing people with the required skills to meet business needs  Two most important management challenges: o Recruitment of high-quality people across multiple territories o Improving appeal of company culture and work environment  Canadian organizations will soon face shortages of labour because: o Baby boomers retiring o Workers can relocate anywhere in world o Fewer Canadians are entering skilled trades  OB allows organizations to manage talent by: o Improving job satisfaction o Designing challenging, meaningful and rewarding jobs o Providing recognition and monetary rewards for performance o Managing diverse workforce o Offering flexible work arrangement o Providing effective leadership A Focus on Corporate Social Responsibility  Corporate social responsibility (CSR): o Organization taking responsibility for impact of its decisions/actions on its stakeholders o Extends to interests/needs of employees and community  Will rank high on CSR if: o Treat employees well o Can manage diversity o Promote employee well-being  ESG issues: environmental, social, governance  CSR examples: donating money or products/services to charity, employees get paid time off to work for charities  Employees want to work for and customers want to buy from companies that rank high on CSR CHAPTER TWO: PERSONALITY AND LEARNING What Is Personality?  Personality: relatively stable set of psychological characteristics that influences the way an individual interacts with his/her environment  The way he/she feels, thinks, behaves  Traits determined by genetics and by experiences Personality and Organizational Behaviour  Dispositional approach: o Focuses on individual dispositions and behavior o Individuals possess stable traits/characteristics that influence attitudes and behaviours o Uses personality tests for selection of employees  Situational approach: o Characteristics of organizational setting influence feelings, attitudes, behavior o Ex. Job satisfaction is determined by characteristics of work tasks  Interactionist approach (interactionism): o OB is result of dispositions and situation o Must know about a person’s personality and setting in which he/she works o Weak situation: not clear how a person should behave (personality has the most impact) o Strong situation: clear expectations for appropriate behavior  Fit: o Putting the right person in the right job, group, organization o Exposing different employees to different management styles The Five-Factor Model of Personality  Extraversion: o Outgoing vs. shy o Score high: sociable, outgoing, energetic, joyful, assertive o Important for jobs that require interaction (sales, management)  Emotional Stability/Neuroticism: o Degree to which a person has appropriate emotional control o High ES (low neuroticism): self-confident, high self-esteem o Low ES (high neuroticism): self-doubt, depression, anxious, hostile, impulsive, insecure, prone to stress  Agreeableness: o Extent to which a person is friendly and approachable o High: warm, considerate, friendly, sympathetic, cooperative o Low: argumentative, inflexible, uncaring, intolerant, uncooperative  Conscientiousness: o Degree to which a person is responsible and achievement-oriented o High: dependable, self-disciplined, hard-working, orderly o Low: irresponsible, lazy, impulsive  Openness to Experience: o Extent to which a person thinks flexibly and is receptive to new ideas o High: creative, innovative, do well in jobs that require imagination o Low: favour the status quo Research Evidence:  Need different “Big Five” characteristics depending on occupation  High conscientiousness predicts performance in all jobs  Extraversion is related to absenteeism and disciplinary problems  High neuroticism is related to lower motivation and less job satisfaction  Higher conscientiousness, extraversion, agr
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