COMMERCE 1BA3 Chapter Notes - Chapter 1: Human Relations Movement, Elton Mayo, Hawthorne Effect

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21 Nov 2012
Amreen Azam Thursday, September 6th, 2012
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Chapter 1 OB & Management
**Emotional Intelligence (EI): consists of two components: self and other
More than 50% of the population uses the word “terminated” to fire someone. This reveals low EI.
Objective: to have High EI
**Organization Behaviour - can be divided into 3 groups:
1. Micro OB: study of the human (individual)
2. Mezzo OB: an individual in interaction with other individuals
3. Macro OB: study of the entire organization in a competitive
Teal’s Job: Relocation Consultant
Assist with termination “pick up the broken pieces”
OB Consulting Tools
Internal Consulting (ex. you are a manager in an organization
confronting any issues pertaining to any of the 2BA3 topics)
External Consulting (ex. you are hired by an organization to provide advice on any of the 2BA3
**OB Consulting Basics
What are organizations?
o Organizations are social inventions for accomplishing common goals through group
1. Social inventions Understanding people and managing them to work effectively
o [Subliminal Side] “WHO”
2. Common Goals People assembled together for a goal. Understand what this is. “WHAT”
o how organizations can survive and adapt to change
3. Group Effort Pulling people together. “Interaction, Teamwork & Coordination. “HOW”
o how to get people to practice effective teamwork
Awareness Management
Awareness Management
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Amreen Azam Thursday, September 6th, 2012
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**Introduction to OB
OB: The attitudes (T) and behaviors (R) of individuals and groups in organizations
o Attitudes: how satisfied people are with their job, how committed they feel to the goals
of the org., etc.
o Behaviours: cooperation, conflict, innovation or resignation are important in OB
o S+T = R How you think determines how you behave
Attempt to understand, predict, explain and manage how people behave at work
o Understand attitudes and behaviours (T&R)
o Predict “I wonder”; “Good match?”
o Explain “This is why…”; “Ahaa….” Moment
o Manage Take action (2BA3 & 2BC3)
OB is important to managers, employees, and consumers, and understanding it can make us
more effective managers, employees, or consumers
Main factor that differentiates organizations is their workforce/human capital
Management practices and organizational behavior have an effect on organizations effectiveness
Note: there is a direct positive link between employee relations & attitudes and financial
**Thermostat Analogy**
o Step 1: Current temperature = Current state [analyzed]
o Step 2: Desired/Future State where do you want to be?
o Step 3: Measure magnitude of gap & take action to close gap
o Step 4: Start again
Goals of OB
Predicting OB
o Predicting behavior of others is essential
o being able to predict OB doesn’t guarantee that we can explain reasons for behavior and
develop and effective strategy to manage it
Explaining OB
o explain events in organizations
Managing OB
o Management: art of getting things accomplished in organizations
o if behavior can be predicted and explained, it can often be controlled/managed
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Amreen Azam Thursday, September 6th, 2012
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Human Relations
Beyond Human relations
(HR Perscpective)
** Theory
The Evolution of OB
The perspective managers have had on the evolution of OB:
Classical/Traditional Views
Early 1900s
High degree of specialization of labor
Each dept. tended to its own business
Centralized decision making; High degree of coordination
o Max Weber and Frederick Taylor
o Psylo-Management Strategically & Psychologically
“Psylo-wed” organized in a way that areas don’t communicate with each other
(ex. Finance and R&D Dept.)
o It was a cookie-cutter job; no thinking “outside the box”
Bureaucracy Max Weber
o Early to Mid-1900s
o No such thing as “under the water line”
o Structured; “top-down”; fixed official duties
o He stated everything should be planned, coordinated and controlled
o Avoid mistakes by letter people NOT think on their own (non-humanistic)
o It was all about efficient organizing
o Strict chain of command, detailed rules, high specialization, centralized power, and
selection and promotion based on technical competence\
o Workers have fair chance of being promoted due to conformity
Scientific Management Frederick Taylor
o Also early 1900s
o Best way: Measure effects of different arrangements and pick the one that allows gross
efficiency (non-humanistic)
o Focus was on maximum quantity
o PIECE more widgets = more money
o Assumed price is the only motivator
o Use of careful research to determine degree of specialization
o Supported development of written instruction that defined work procedures
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