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BUS 272 (246)
Chapter 1-4

BUS 272 - Canadian Organizational Behaviour (McShane Steen) Chapters 1-4.docx

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Department
Business Administration
Course Code
BUS 272
Professor
Graeme Coetzer

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Chapter 1 Introduction to the Field of Organizational Behaviour The Field of Organizational Behaviour Organizational Behaviour (OB) the study of what people think, feel and do in and around organizations o Study individual, team and org-level characteristics that influence behaviour within work settings Organizations groups of people who work interdependently towards some purpose o Employees have structured patterns of interaction tasks should be completed in a coordinated, organized way Why study OB? o OB makes a difference in career success OB theories help you make sense of your workplace, question/rebuild personal mental models built through observation and experience o Everyone needs to work w/ others to get things done; OB provides knowledge/tools to work w/ and through others o OB is for everyone everyone is a manager i.e. we are increasingly expected to manage ourselves in the workplace o OB and the bottom line not just important for individuals, but also for orgs financial health Numerous studies conclude that companies that incorporate OB theories/practices have better financial performance Perspectives of organizational effectiveness Organizational effectiveness = the ultimate dependent variable in OB a broad concept represented by several perspectives, including the orgs fit with the external environment, internal subsystems config for high performance, emphasis on org learning, and ability to satisfy the needs of key stakeholders Used to be defined as the extent to which the org achieved its stated goals however, no longer accepted b/c some goals are easy to achieve while others are harder to achieve, goal attainment might threaten orgs long-term survival Open Systems Perspective o A perspective that organizations take their sustenance from the enviro, and in turn, affect that enviro through their output o One of the earliest and deeply entrenched ways of thinking about organization o Orgs depend on external enviro for resources (e.g. raw materials, employees, info), while inside the org are various subsystems (e.g. processes, task activities, and social dynamics) that, w/ aid of technology, transform inputs into outputs, which can have positive or negative effects on the external enviro o Org receives feedback from the external enviro regarding value of outputs and availability of future inputs o Successful orgs monitor enviros and are able to maintain a close fit w/ changing conditions o Internal subsystems effectiveness OSP also considers how well org operates internally i.e. how well company transforms inputs into outputs Organizational efficiency (productivity) measures the amount of outputs relative to inputs in the orgs transformational process More efficient means less inputs per unit of output but efficiency doesnt necessarily equal effectiveness; orgs need to be adaptive and innovative in their transformation processes as well as efficient Org subsystems vary in how much they depend on each other, but the reality is usually not ideal lots of coordination challenges that amplify as orgs grow Organizational Learning Perspective o A perspective that org effectiveness depends on the orgs capacity to acquire, share, use and store valuable knowledge o Knowledge = the driver of competitive advantage knowledge management o Flow of knowledge Knowledge acquisition info is brought into org from external enviro Knowledge sharing distribution of knowledge throughout org Knowledge use application of knowledge to org processes in ways that improve orgs effectiveness o Intellectual capital Companys stock of knowledge (human capital, structural capital, relationship capital) Human capital knowledge, skills, abilities that employees carry w/ them Structural capital knowledge captured and retained in an orgs systems and structures Relationship capital value derived from an orgs relationships w/ customers, suppliers, and others who provide added mutual value for org o Org Memory and Unlearning Corporate leaders are keepers of organizational memory storage and preservation of intellectual capital includes anything that provides meaningful info about how org should operate Strategies keeping good employees; systematically transfer knowledge to other employees; transfer knowledge to structural capital OLP not just about what effective orgs learn, also about what now- inappropriate patterns of behaviour and routines they unlearn that no longer add value to orgs effectiveness High Performance Word Practices (HPWP) Perspective o A perspective that effective orgs incorporate several workplace practices that leverage the potential of human capital o Human capital is an important source of competitive advantage for orgs valuable, rare, difficult to imitate, nonsubstitutable o E.g. employee involvement, job autonomy high performance work teams o Employee competence orgs are more effective when they invest in employee skills and knowledge dev, when they carefully select job applicants w/ strong skills and performance potential o Link performance and skill dev to various forms of financial and nonfinancial rewards valued by employees Stakeholder Perspective o Stakeholders individuals, orgs and other entities who affect, or are affected by, the orgs objectives and actions o Companies must take into account how their actions affect others, which requires them to understand, manage, and satisfy the interests of their stakeholders --> personalizes open systems perspectives by identifying specific ppl and social entities in the external and internal enviro Challenging b/c stakeholders have conflicting interests and orgs dont have resources to satisfy every stakeholder to the fullest need to prioritize Generally favour stakeholders w/ most power, but shouldnt be only criterion for strategy o Stakeholder relations are dynamic can be negotiated and managed o Key strengths of this perspective: incorporates values, ethics and corporate responsibility into org effectiveness Values relatively stable, evaluative beliefs that guide a persons preferences for outcomes or courses of action in a variety of situations Ethics the study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad Corporate social responsibility (CSR) organizational activities intended to benefit society and the enviro beyond the firms immediate financial interests or legal obligations Types of Individual Behaviour Task performance goal-directed behaviours under the individual control that support organizational activities o Transform raw materials into goods and services or support/maintain technical activities Organizational Citizenship behaviours (OCBs) o Various forms of cooperation and helpfulness to others that support the orgs social and psychological context companies require contextual performance along w/ task performance o Some directed towards individuals, while others represent cooperation/helpfulness towards org in general Counterproductive Work Behaviours (CWBs) o Voluntary behaviours that have the potential to directly or indirectly harm the org o 5 categories: abuse of others, threats, work avoidance, work sabotage, overt acts Joining and Staying w/ the org o Attracting and retaining talented ppl is important as worries about skill shortages increase o Companies survive and thrive not just by hiring talented ppl; they need to ensure that these employees stay w/ the company high turnover is costly Maintaining Work Attendance o Orgs need everyone to show up for work at scheduled times o Absenteeism is higher among employees experiencing job dissatisfaction or work- related stress, among orgs w/ generous sick leave, teams w/ strong absence norms Contemporary Challenges for Orgs Globalization o economic, social and cultural connectivity w/ ppl in other parts of the world o Degree of globalization today is unprecedented b/c IT and transportation systems allow more intense lvl of connectivity and interdependence o Offers many benefits to
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