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MGHB02H3 (269)
Chapter 1

Chapter 1- Organizational Behaviour and Management

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Department
Management (MGH)
Course
MGHB02H3
Professor
Xuefeng Liu
Semester
Summer

Description
Chapter 1-Organizational Behaviour and Management  HOK, one of Canada’s top employers: o Very open, collaborative and inclusive culture o Employees are encouraged to speak their minds and provide input/feedback about the kinds of benefits the would like o Work environment designed to stimulate creative thinking and innovation o Casual dress code, employees can listen to music while working o Company hosts social events throughout the year o Individual salaries are reviewed every 6 months, bonuses handed out twice a year, and spot bonuses are also provided o Tuition subsidies, family-friendly benefits, flexible work arrangements, on-site classes and therapist o Employees receive paid time off to do volunteer work for their favourite charity  Important aspects of organizational behavior include: organizational culture, communication, motivation and learning  Organizations: social inventions for accomplishing common goals through group effort  Social invention: when organizations are social inventions, it means their essential characteristic is the coordinated presence of people, not necessarily things  The field of organizational behavior is about understanding people and managing them to work effectively, concerned with how organizations can survive and adapt to change and how to get people to practice effective teamwork  Goal accomplishment: Necessary behaviours for survival and adaptation: 1. People must be motivated to join and remain in the organization 2. Carry out basic work reliably in terms of productivity, quality and service 3. Be willing to continuously learn and upgrade their knowledge and skills 4. Be flexible and innovative  Group effort: organizations depend on interaction and coordination among people to accomplish their goals  Organizational behaviour: the attitudes and behaviours of individuals and groups in organizations o It’s important to managers, employees and consumers  Jeffrey Pfeffer’s practices of companies that are effective through their management of people: o Incentive pay o Participation and empowerment o Teams o Job redesign o Training and skill development etc.  There’s increasing evidence that management practices and organizational behaviour not only influence employee attitudes and Goals of organizational behaviour PREDICTING ORGANIZATIONAL BEHAVIOUR  The regularity of behaviour in organizations permits the prediction of its future occurrence  Being able to predict organizational behaviour (i.e. when people will make ethical decisions, creative innovative products, engage in sexual harassment) does not guarantee that we can explain the reason for the behaviour and develop an effective strategy to manage it EXPLAINING ORGANIZATIONAL BEHAVIOUR  Prediction and explanation are not synonymous  Determining why people are more or less motivated, satisfied, or prone to resign. This is more complicated than predicting because a particular behaviour could have multiple causes. o i.e. employees may resign due to low pay, discrimination or due to an organizational crisis o before putting an effective correction into place, the organization needs to find out what’s causing the “turnover problem” MANAGING ORGANIZATIONAL BEHAVIOUR  Management: the art of getting things accomplished in organizations through others. Managers acquire, allocate and utilize physical and human resources to accomplish goals  If behaviour can be predicted and explained, it can often be controlled or managed  If prediction and explanation constitute analysis, then management constitutes action  The point is not to overanalyze a problem but to approach it with a systematic understanding of behavioural science Early prescriptions concerning management THE CLASSICAL VIEW AND BUREAUCRACY  an early prescription on management that advocated high specialization of labour, intensive coordination, and centralized decision making  each department tended to its own affairs with centralized decision making from upper management providing coordination  the classical view suggested managers to have fairly few workers except for lower level jobs where machine pacing might substitute for close supervision  Scientific management (Frederick Taylor): a system for using research to determine the optimum degree of specialization and standardization of work tasks o Supported the development of written instructions that clearly defined work procedures, encouraged supervisors to standardize workers’ movements and breaks for maximum efficiency  Bureaucracy: Max Weber’s ideal type of organization that included a strict chain of command (reporting to a single superior), detailed rules, high specialization (matching duties with technical competence), centralized power, and selection and promotion based on technical competence THE HUMAN RELATIONS MOVEMENT AND A CRITIQUE OF BUREAUCRACY  Began with the Hawthorne studies: research conducted at the Hawthorne plant of western electric near Chicago in the 1920s and 1930s that illustrated how psychological and social processes affect productivity and work adjustment. The study concerned the impact of fatigue, rest pauses, and lighting on productivity  Human relations movement: a critique of classical management and bureaucracy that advocated management styles that were more participative and oriented toward employee needs  The critique of bureaucracy addressed the following: 1. Strict specialization is incompatible with human needs for growth and achievement 2. Strong centralization can often fail to take advantage of the creative ideas and knowledge of lower level members who are often closer to the customer and as a result the organization will fail to learn from its mistakes –this threatens innovation and adaptation 3. Strict, impersonal rules lead members to adopt the minimum acceptable level of performance that the rules specify 4. Strong specialization causes employees to lose sight of the overall goals of the organization. This is the “red-tape mentality” observed in bureaucracies  Merits of the classical and human relations approach: o Classical advocates pointed out the critical role of control and coordination in getting organizations to achieve their goals o Human relationists pointed out the dangers of certain forms of control and coordination and addressed the need for flexibility and adaptability  Management approaches need to be tailored to fit the situation  Dependencies are called contingencies  Contingency approach: an approach to management that recognizes that there’s no one best way to manage, and that an appropriate management style depends on the demands of the situation What do managers do? MANAGERIAL ROLES  Interpersonal roles: expected behaviours that have to do with establishing and maintaining interpersonal relations. o Figurehead role: managers serve as symbols of their organization rather than active decision makers. They make speeches to trade groups, entertain clients, sign legal documents etc. o Leadership role: managers select, mentor, reward, and discipline employees o Liaison role: managers maintain horizontal contacts inside and outside the organization. For example, discussing a project with
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