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Chapter 1

BUS 272 Chapter Notes - Chapter 1: Organizational Learning, Organizational Effectiveness, Hootsuite


Department
Business Administration
Course Code
BUS 272
Professor
Sam Ajit Thiara
Chapter
1

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BUS 272 CH.1 Introduction to the Field of Organizational Behavior
Hootsuite an example of a company that practices good OB. As a result, the company is
effective, has good employee well-being, and has successful collaboration among coworkers
The Field of Organizational Behavior
Organizational Behavior (OB): study of how people feel, think, do in & around organizations
- Study how organizations relate to the environment (external)
- Study how individuals react to certain things
- Levels of analysis: individual, team, organization
Organizations: individual/group of people that work together in an organized way to achieve a
goal
- 2 key features
1) collective entities: they move in an organized way by communication,
collaborating, co-ordinating. The group is interdependent
2) collective sense of purpose. They have a unifying goal
! Historical Foundations of OB
- been around for a long time, it wasn’t until around WWII that it was a unified discipline
(~1940s)
! Why study OB?
- Helps get things done in the workplace b/c it gives us the tools & skills needed to work
well w/ other people
- Helps organizations be more effective
o OB is for everyone: expected to work well with others, having OB knowledge will
be helpful
o OB & the bottom-line: OB practices is a strong predictor on how well an
organization is doing (ex. Organizations with good OB practices=good finances)
Perspectives of Organizational Effectiveness
Organizational effectiveness: ultimate dependant variable
- This means that OE is the outcome most OB theories try to achieve
- How well a company achieves its goals is not a good measure of OE
o The company may be able to achieve a certain goal, but how they completed the
goal matters. Any organization can set goals, but that doesn’t necessarily mean
that they are setting good goals, these goals may point the organization in the
wrong direction & the completion of it may jeopardize the company’s success
- So how do we measure organizational effectiveness? 4 perspectives:
1) Open systems
2) Organizational learning
3) High performance work practices
4) Stakeholders
- An organization is effective when they 1. fit well with their external environment, 2. Are
learning organizations 3. Have efficient work systems, & 4. Satisfy needs of stakeholders
! Open Systems Perspectives
- Open systems: views the organization as “living” w/in an external environment
- Depends on the external environment for resources. & the external environment affects
how organizations are run b/c of cultural norms etc.
- The external environment also gives feedback to the organization
- In an organization there are subsystems that are dependant on each other to transform
inputs into outputs that are released into the external environment
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