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Chapter 1

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University of Toronto Scarborough
Management (MGH)
Anna Nagy

MGTB27 / 01 Week 1 Chapter 1 Organizational Behaviour and Management (pg. 2 25) What Are Organizations? - Organizations are social inventions for accomplishing common goals through group effort - E.g. HOK, CBC, Toronto Blue Jays and a college sorority or fraternity Social Inventions - When organizations are social inventions, this means that their essential characteristic is the coordinated presence of people (e.g. not owning lots of things such as equipment or offices) - The field of organizational behaviour is about understanding people and managing them to work effectively Goal Accomplishment - Organizations such as CBC, Toronto Blue Jays and a college sorority/fraternity have goals of winning baseball games, delivering news, and educating people - Non-profit organizations have goals such as saving souls, promoting the arts, helping the needy, or educating people - All organizations have survival as a goal but some organizations do fail (e.g. Canadian Airlines, Eatons, the Montreal Expos, and Jetsgo etc...) - The field of organizational behaviour is concerned with how organizations can survive and adapt to change - Certain behaviours are necessary for survival and adaptation. People have to: o Be motivated to join and remain in the organization o Carry out their work reliably in terms of productivity, quality, and service o Be willing to continuously learn and upgrade their knowledge and skills o Be flexible & innovative(adapt to change; important for contemporary organizations) Group Effort - Organizations depend on interaction and coordination among people to accomplish their goals since much of the intellectual and physical work done in organizations is performed by groups - The field of organizational behaviour is concerned with how to get people to practise effective teamwork What is Organizational Behaviour? - Organizational behaviour refers to the attitudes and behaviours of individuals and groups in organizations (provides insight about effectively managing and changing behaviours) - Also studies how organizations can be structured more effectively and how events in their external environments affect organizations - Those studying organizational behaviour are interested in attitudes (e.g. how satisfied people are with their jobs, how committed they feel to the goals of the organization etc...) - Questions and factors that make an organization a great place to work o How does organizational culture affect an organizations success? HOK emphasizes collaboration, creativity, and social responsibility o How do employees learn? Employees have access to tuition reimbursement program/training courses o How can organizations motivate employees? Employees receive above average compensation and benefits as well as bonuses based on their performance and company profits o How should managers communicate to employees? Communicates through company newsletters and intranet site MGTB27 / 02 Week 1 Why Study Organizational Behaviour? - Why should we read and understand material in organizational behaviour? Organizational Behaviour is Interesting - It is interesting because it is about people and human nature (e.g. understands why employees become committed to an organization and what motivates them to work hard) - O.B. provides the tools to find out why bosses or why you behave the way you do Organizational Behaviour is Important - What happens in organizations often has a profound impact on people - Organizational behaviour is important to managers, employees, and consumers, and - understanding it can make us more effective managers, employees, or consumers - There may be tremendous variation in organizational behaviour (e.g. skilled salespeople in insurance and real estate make more than some of their peers) - Field of O.B. is concerned with explaining these differences and using the explanations to improve organizational effectiveness and efficiency Organizational Behaviour Makes a Difference - In Competitive Advantage Through People, Jeffrey Pfeffer argues that organizations can no longer achieve a competitive advantage through the traditional sources of successes (e.g. technology, regulated markets, access to financial resources, and economies of scale) - Sustained competitive advantage and organizational effectiveness are increasingly related to the management of human capital and organizational behaviour - There is increasing evidence that management practices and O.B. not only influence employee attitudes and behaviour but also have an effect on an organizations effectiveness - RBC Financial Group recognize that satisfied, high-performing employees are good for profits. Human resources and management practices resulted in an improvement in both employee and customer satisfaction How Much Do You Know About Organizational Behaviour? - In general, researchers have found that the personalities of effective leaders vary a fair amount, many people prefer routine jobs, managers are not well informed about the pay of their peers and superiors, workers underestimate their own absenteeism, and pay is not always the most effective way to motivate workers and improve job performance - common sense develops through unsystematic and incomplete experiences with O.B. (statements could either be true or false, [e.g. Pay will motivate workers to work harder]) o Pay will always motivate workers because most people want to make more money so they will work harder o Some workers will only work as hard as they have to regardless of how much money they are paid Goals of Organizational Behaviour - O.B. has a number of commonly agreed-upon goals: effectively predicting, explaining, and managing behaviours that occurs in organizations Predicting Organizational Behaviour - Predicting the behaviour of others is an essential requirement for everyday life both inside and outside of organizations o Outside of organizations, if we are able to anticipate when our friends will get angry or when politicians are telling the truth, this will make our lives easier o In organizations, there is considerable interest in predicting when people will make ethical decisions, create innovative products, or engage in sexual harassmentMGTB27 / 03 Week 1 - Predicting organizational behaviour does not guarantee that we can explain the reason for the behaviour and develop an effective strategy to manage it Explaining Organizational Behaviour - Another goal of organizational behaviour is to explain events in organizations and why they occur (prediction and explanation are not synonymous) - Organizational behaviour is especially interested in determining why people are more or less motivated, satisfied, or prone to resign - Explaining an event is more complicated than predicting it because particular behaviour may have multiple causes (e.g. resign from job because of low pay or they are discriminated against; companies that find that they have high turnover problem will have to find out why this is happening before it can put an effective correction into place) Managing Organizational Behaviour - Management is defined as the art of getting things accomplished in organizations - Managers acquire, allocate, and utilize physical and human resources to accomplish goals - If behaviour can be predicted and explained, it can often be controlled. But this is hardly the case so we must approach a problem with a systematic understanding of behavioural science Early Prescriptions Concerning Management - Experts interested in organizations were concerned with prescribing the correct way to manage an organization to achieve its goals, the classical and the human relations view The Classical View and Bureaucracy - Most of the major advocates of the classical viewpoint were experienced managers or consultants who took the time to write down their thoughts on organizing (~ 1900s) - The classical viewpoint tended
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