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Chapter 1

MGHB02H3 Chapter Notes - Chapter 1: Human Relations Movement, Mary Parker Follett, Human Resource Management

Course Code
Phani Radhakrishnan

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MGHB02 Chapter 1
Organizational Behaviour and Management
What are Organizations?
Organizations: social inventions for accomplishing common goals through group effort
Social Inventions
Organizations social inventions their essential characteristics is the coordinated presence of people,
not necessarily things
o All organizations, regardless of if they produce products or services, contain people who
present both opportunities and challenges
The field of organizational behaviour is about understanding people and managing them to work
Goal Accomplishment
Individuals are assembled into organizations for a reason
Virtually, all organizations have surviving as a goal
o Each one with unique goals (besides surviving)
The field of organizational behaviour is concerned with how organizations can survive and adapt to
Certain behaviours are necessary for survival and adaptation, people have to
1. Be motivated to join and remain in the organization
2. Carry out their 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
Innovation and flexibility, which foster adaptation to change, are especially important for
contemporary organizations
Group Effort
Organizations are based on group effort
o At most general level, this means that organizations depend on interaction and coordination
among people to accomplish their goals
Much of the intellectual and physical work done in organizations is performed by groups
Informal grouping occurs in all organizations because friendships develop and individuals form
informal alliances to accomplish work
o The quality of this informal contact in terms of communication and morale can have a strong
impact on goal achievement
The field of organizational behaviour is concerned with how to get people to practice effective
What is Organizational Behaviour?
Organizational behaviour: the attitudes and behaviours of individuals and groups in organizations
o The discipline studies these attitudes and behaviours and provides insight about effectively
managing and changing them
Also studies how organizations can be structured more effectively and how events in
their external environments affect organizations
Human Resource Management: programs, practices, and systems to acquire, develop, motivate, and
retain employees in organizations
o Knowledge of organizational behaviour helps you understand human resource management
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Why Study Organizational Behaviour?
Organizational Behaviour is Interesting
It is about people and human nature
Helps us understand why employees become committed to an organization and what motivates them
to work hard
Organizational behaviour includes success and failure
Gives us the tools to uncover why employers and employees behave the way they do in the workplace
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 are tremendous variations in organizational behaviour
The field of organizational behaviour is concerned with explaining differences and using the
explanations to improve organizational effectiveness and efficiency
Organizational Behaviour Makes a Difference
The main factor that differentiates organizations is their workforce and human capital
The results of a study that reviewed research on human capital are unequivocal: Human capital is
strongly related to and a key determinant of firm performance
o Thus, sustained competitive advantage and organizational effectiveness are increasingly
related to the management of human capital and organizational behaviour
Pfeffer identified 16 practices of companies that are effective through their management of people
o Points out that OB makes a big difference for the effectiveness and competitiveness of
Management practice of the best companies to work for in Canada
o Flexible work schedules
o Stock options, profit sharing plans, and performance bonuses
o Extensive training and development programs
o Family assistance programs
o On-site fitness facilities, daycare, and wellness programs
o Career days and formal career days
o Flexible or cafeteria-style benefit plans
o Monthly staff socials, family Christmas parties, and picnics
o Stress reduction programs
o Monthly all-employee meetings
o Formal workplace diversity programs to encourage women and minorities
o Employee recognition and reward programs
Thus, it makes good business sense for organizations to be great places to work
o These are usually the most successful businesses
How Much Do You Know About Organizational Behaviour?
Researchers 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, pay is not always the most effective way to motivate workers
and improve job performance, and women are underrepresented in leadership roles in organizations
o However, there are some exceptions
The ease in which people can generate contradictory responses to the claims ^ suggests that “common
sense” develops through unsystematic and incomplete experiences with organizational behaviour
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o However, since common sense and opinions about ON do affect management practice,
practice should be based on informal opinion and systematic study
Goals of Organizational Behaviour
Predicting Organizational Behaviour
Predicting the behaviours of others is an essential requirement for everyday life, both inside and
outside of organizations
The very regularity behaviours in organizations permits the prediction of its future occurrence
o However, untutored predictions of OB are not always accurate
Through systematic study, the field of OB provides a scientific foundation that helps improve
predictions of organizational events
Being able to predict OB 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 is to explain events in organizations
Prediction and explanation are not synonymous
o In general, accurate prediction precedes explanation
OB is especially interested in determining why people are more or less motivated, satisfied, or prone
to resign
Explaining events is more complicated than predicting them
o Particular behaviour could have multiple causes with specific solutions
Explanation is complicated by the fact that the underlying causes of some event or behaviour can
change over time
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
o This definition does not include a prescription about how to get things accomplished
If behaviour can be predicted and explained, it can often be managed
If prediction and explanation constitute analysis, them management constitutes action
o Many cases where managers act without analysis which results in disaster
Managers should approach a problem with systematic understanding of behavioural science and OB
and use that understanding to make decisions; aka evidence-based management
Evidence-Based Management: translating principles based on the best scientific evidence into
organizational practices
o Make better decisions rather than decisions based on persona preference and unsystematic
o Derives principles from research evidence and translates them into practices that solve
organizational problems
The use of evidence-based management is more likely to result in the attainment of organizational
goals, including those affecting employees, stockholders, and the public in general
Early Prescriptions Concerning Management
For many years, experts interested in organizations were concerned with prescribing the “correct”
way to manage an organization to achieve its goals; there were two basic phases to this prescription:
1. Classical view
2. Human relations view
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