Chapter 1 – Intro to the Field of Organizational Behaviour
Organizational Behaviour (OB): the study of what people think, feel and do in and around
organizations. Looks at employee behaviour, decisions, perceptions, and emotional responses.
Organizations: groups of people who work interdependently toward some purpose. Consists of
people who communicate, coordinate, and collaborate with each other to achieve a common
objective. They are collective entities, consisting with each other in an organized way. The
members of an organization have a collective sense of purpose.
Organizational Effectiveness: is considered the “ultimate dependent variable” in OB. This
means, OB theories and practices try to improve the organizations effectiveness.
Open Systems: this perspective views organizations as complex organisms that “live” within an
external environment. Open describes the permeable relationship whereas closed systems operate
without dependence on or interaction with an external environment. Open systems depend on
external environment for resources.
- Organization-Environment Fit: organizations are effective when they maintain a good
“fit” with their external environment. Good fits exist when the organizations put
resources where they are most useful to adapt to and align with the needs of the external
environment.Anticipating change and fluidly reconfiguring subsystems to become more
consistent are also good-fit practices.
Organizational Efficiency: aka productivity, is the ratio of inputs to outcomes. It is the amount
of outputs relative to inputs in the organizations transformation process. Companies that produce
more goods or services with less labour, materials and energy are efficient. Organizational Learning: aka knowledge management views knowledge as the main driver of
competitive advantage. It is a perspective which holds that organizational effectiveness depends
on the organizations capacity to acquire, share, use, and store valuable knowledge.
o KnowledgeAcquisition: extracting information and ideas from the external
environment as well as through insight
o Knowledge Sharing: involves distributing knowledge to others across the
organization. Knowledge sharing is often equated with computer intranets and
digital repositories of knowledge.
o Knowledge Use: applying knowledge in ways that add valu