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Chapter 1

MGTB23/B27/B29 Chapter 1

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Management (MGH)
Julie Mc Carthy

Organizational Behavior Ted Mock Lecture Notes ∙ Chapter One ∙ What are organizations: social inventions for accomplishing goals through group efforts Concerned with how organizations survive, adapt to change and hopefully, prosper. For this to happen, organizational members (employees and management) must: • Be motivated to join and remain (sometimes referred to as “membership behavior” • Carry out their work reliably and effectively • Be willing to continuously learn and upgrade their knowledge and skills – the people of an organization are considered “human capital” and for that capital to appreciate (become more valuable to the organization) it must be upgraded in ways that are important to the organization • Be flexible and innovative (Note: some organizations place a much greater importance on the flexibility and innovation of their workforce than other firms. This is determined by the business strategy, the managerial strategy and culture of the firm) • Most organizations today require some form of group effort. This can take many forms: o Coordination among individuals to accomplish organizational goals o Permanent work teams o Short term project teams o Friendships o Alliances (sounds like Survivor) What is Organizational Behavior? • The study of attitudes and behaviors of individuals and groups in organizations. We will study: o Personality and learning o Perception, attributions and judgment of others o Values and attitudes o Motivation at work The Goals of OB: Predict human behavior – how will people behave in certain circumstances? Explain human behavior – why will people behave in predictable ways? Manage human behavior – how can we structure the work environment and deal with people to encourage desired behaviors? Management: the art of getting things accomplished in organizations through others Early Views of Management The Classical viewpoint • Emerged from the military and early factories • High degree of specialization of labour • Each department tend to its own affairs • Centralized decision making from management provides coordination Supporting the classical view was “Scientific Management” a concept developed by Fredrick Taylor (1856 – 1915). His method studied work to determine the best way to perform the tasks and determined the skills and qualifications required by workers to be most efficient. With scientific management, managers manage and workers work. Organizational Behavior Ted Mock Bureaucracy A term and concept developed by Max Weber (1864 – 1920). His methods for rationally managing a complex workplace support the classical view of the organization. Bureaucracy includes: • A strict chain of command where each person reports to a single superior (only one boss) • Criteria for selection and promotion based upon impersonal technical skills rather than nepotism or favoritism • Set of detailed procedures that ensure the work gets done regardless of who the worker is • Strict specialization to match duties with technical competence • Centralization of power at the top of the organization Observers noted that the classical view of the organization ignored the essential conflict of interest between managers and employees. Also, the classical view tended to remove from the job those elements that might make the work intrinsically interesting. The classical view seems to encourage workers to “check their brains at the door”. Do we still see vestiges of the classical view in organizations today? The Human Relations Movement Called attention to certain dysfunctional aspects of classical management and bureaucracy Advocated more people-oriented styles of management that catered more to the social and psychological needs of employees The Human Relations Movement generally began with the Hawthorne Studies of the 1920’s and 1930’. The studies were conducted at the Hawthorne plant of Western Electric near Chicago. They were scientific studies to determine the effect of lighting, rest breaks and humidity and pay on productivity. However, what the researchers noticed and documented for the first time was the effect of psychological and social processes on productivity. For example, they noted resistance to management through the pressures of group norms. They also noted that simple act of being in an experiment (being noticed) affected worker productivity. For example, the researchers increased lighting and productivity went up. The
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