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Chapter 1

BUS 272 Chapter Notes - Chapter 1: Closed System, Technological Change, Tethering

Business Administration
Course Code
BUS 272
Sam Thiara

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OB is the study of what people think, feel, and do in and around
organizations. Two or more people that strive to a goal and objective.
It looks at employee behavior, decisions, perceptions, and emotional
Examines how individuals and teams in organizations relate to each other and to
their counterparts in other organizations.
Two environments to consider: external and internal.
Also encompasses the study of how organizations interact with their external
environments, particularly in the context of employee behavior and decisions.
OB Researchers systematically study these topics at multiple levels of
analysis, namely, at the level of the individual, team, and organization (internal).
Organizations are group who work interdependently toward some purpose.
One key feature of organizations is that they are collective entities. It
requires communication, coordination, and collaboration.
Second key feature is that their members have a collective sense of purpose.
Not always well defined or agreed on.
Why study OB, the importance of OB
Comprehend and predict workplace event inherent drive to make sense of what
is going on around them. Highly complex and ambiguous context that have a
profound effect on our lives. This knowledge satisfies our curiosity about why
evens occur and reduces our anxiety about circumstances that would otherwise
be unexpected and unexplained. OB knowledge improves our ability to precise
and anticipates future events so we can get along with others, achieve our goals,
and minimize unnecessary career risks.
Satisfy curiosity
Reduce anxiety
Predict future events
Adopt more accurate personal theories
Confirm and refine personal theories
Correct false “common sense
Influence organizational events
Work well with others
Accomplish personal and organizational goals
Organizational behavior is for every one
OB and the bottom-line OB are also vital to the organization’s survival and
success. OB practices are also associated with various indicators of hospital
performance, such as low patient mortality rates and higher patient satisfaction.
The Bottom Line: how studying OB can benefit you
1. Satisfy the need to understand and predict

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2. Helps us to test and improve upon personal theories
3. Influence behavior—get things done
4. OB improves the financial health of your organization
Four major environmental developments facing organizations:
1. Technological change
Accessibility to information
Streamline our processes
Coordination mechanism
Altered communication patterns and power dynamics throughout
most workplaces
Reshape how people associate and coordinate with each other.
Information technology gives employees a stronger voice through
direct communication with executives and broader distribution of
their opinions to co-workers and beyond.
We can be too reliant
Tethering people to jobs—can access work any time
We are always competitors
Reducing their attention spans at work, increasing techno-stress.
Less organizations of a place where people work and more of a
process or network where people collaborate across space and time.
2. Globalization refers to economic, social, and cultural connective with people
in other parts of the world. Organizations globalize when they actively
participate on other countries and cultures.
Access to greater markets
A diverse workforce
Lower costs of labour and resources (at times)
A divers workforce—coordination
Can reduce job security
Impacts work life balance—people can work faster and cheaper
3. Emerging employment relationships
Work-life balance is about minimizing conflict between one’s work and nonwork
How we integrate into work
How things have changed form the past to present
Workplace diversity
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