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MHR 405 (330)
Louis Pike (74)
Chapter 1

Chapter 1

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Ryerson University
Human Resources
MHR 405
Louis Pike

Chapter 1 – An introduction to Organization Behaviour What is organizational behaviour (OB)? • OB is a field of study that seeks to understand, explain, predict and change human behavior, both individual and the entire group in the organizational context Roots of organizational behaviour • There are 5 roots to OB o Psychology is the science of human behaviour o It has been separated into number of specialized fields such as clinical, experimental, organizational and social psychology o Topics in organizational psychology such as work teams, work motivation, training and development, power and leadership, human resource planning and workplace wellness are similar to the topics covered by OB o Hawthorne studies showed the impact of psychological process and peer pressure on individual behaviour and performance o Sociology is the science of society o Sociology talks more about a society than individual persons o It is concerned with the variety of roles within a society or culture o Engineering is the applied science of energy and matter o Has made important contributions to our understanding of the design of work o Engineering is all about taking basic engineering ideas and applying them to human behaviour in work organizations Scientific management is Frederick Taylor’s system for using research to find out the best possible degree of specialization and standardization for a job task o Anthropology is the science of the learned behaviour of human beings o Anthropology is especially important to understand organizational culture www.notesolution.com o Management is the study of managing activities and supervising people in organizations o It talks more about the design, implementation, and management of various administrative and organizational systems Organizational behaviour and management • In OB we study organizations • Organizations is groups of people working toward a common goal • For example, your family is an organization, your program, your sports team, all working toward the same goal • Organizations consist of members and leaders • Leaders are known as managers whose job is supervising others • Managers perfect planning, organizing, leading and controlling • Planning involves setting objectives and creating action plans • Organizing includes dividing up tasks among other employees and make sure the plan carries out • Leading involves communicating, motivating and managing conflict • Controlling is about monitoring financial and human performance • Managers are concerned with financial, technological and intellectual capital and human capital • Human capital is the knowledge that employees possess and generate such as their skills, experience and creativity • Rule of OB is mainly on developing human capital and strengthening the manager’s responsibilities for planning, organizing, leading and controlling • Managers are required to do interpersonal, informational and decisional functions that include tasks such as management of people and management of information, material and financial resource • 10 different kinds of roles have been identified www.notesolution.com o Interpersonal roles include those of figurehead, leader and liaison o Informational roles include being a monitor, a spokesperson and disseminator of information o Decisional roles include being an entrepreneur, disturbance handler, resource allocator and negotiator The benefits of studying organizational behaviour • Behavioural science is research that improves one’s ability to understand, predict and influence the behaviour of others o Improved managerial effectiveness and bottom line o More effective influence o A career in human resources management An open systems framework for explaining how organizations function • Open systems framework developed from the models of ecosystems in biology, so that organizations are seen as living organisms, interacting with their environment and requiring balance to survive • There are 5 main parts to it o External task environment – sectors in which the organization interacts directly and operates in that sector o These sectors include the industry to which the company belongs to, the raw materials needed to produce the output, the human resources, the financial resources, the market in which the company operates, the technology, the economic conditions, legislative changes and govt., and sociocultural and international forces o Organizations have to cope with these sectors to create formal jobs or even entire department to keep track or influence the forces that may present challenges or opportunities in the future o These jobs are called boundary-spanning roles, are jobs that link and organize an organization with key elements in the task environment, ex. Market researchers, government lobbyists www.notesolution.com o Organizational inputs are all the human, informational, material and financial resources taken from the external task environment and used by the organization o For example, a clothing store would include clothes, hangers, fixtures, job applicants, computers, etc. o The GHOST model for the internal organization o Inputs that are taken from external task environment is called internal organization o Goals (G) are the action strategies that leaders create and follow to accomplish the organizations purpose and vision o Human resources (H) are employees and managers in the organization including the nature of their relationships, their values, and the reaction of the reward system on their behaviour o Organizational structure (OS) is the manner in which an organizations work is designed, as well as how dept., divisions, and the overall organizations are designed Leaders design and adjust OS to fit the organizations goals, and then hire, manage, motivate people to effectively carry out these goals o Technology (T) is the wide range of tools, knowledge, and/or techniques used to transform the inputs into outputs o For example, leaders will develop goals (G) based on company’s purpose, like the kind of clothing store the company wants (high or low end, target market) o Leaders will also consider the competition in the market, prices of various types of fabrics, etc. o The goals will be carried out through the internal organization like through the human resource (H) o Managers and employees are needed to convert the inputs, such as clothes, product knowledge and information into outputs o The organizational structure (OS) is the management ladder and the design of various store jobs
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