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Chapter 1

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Rotman Commerce
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Organizational Behaviour and Management organizations: social inventions for accomplishing common goals through group effort - social inventions: coordinated presence of people - goal accomplishment: 4 behaviours necessary for survival + adaptation: o motivation to join + remain in organization o carrying out basic work reliably in terms of productivity, quality, and service o be willing to continuously learn + upgrade their knowledge + skills o be flexible + innovative - group effort: organizations depend on interaction + coordination among people to accomplish their goals organizational behaviour: attitudes + behaviours of individuals + groups in organizations (behaviours such as cooperation, conflict, resignation, etc.) - we should study organizational behaviour because it is: o interesting – OB is all about people + human nature o important – impact of OB extends to customers, managers, employees, etc. o makes a difference – e.g. management practices (e.g. competitive advantage + organizational effectiveness) that improve employee + customer satisfaction Goals of Organizational Behaviour 1) Predicting OB - permits prediction of its future occurrence but is not always accurate 2) Explaining OB - determining why people are more/less motivated, satisfied or prone to resign 3) Managing OB - management: the art of getting things accomplished in organizations through acquiring, allocating and utilizing physical and human resources Early Prescriptions Concerning Management The Classical View and Bureaucracy classical viewpoint: advocated very high degree of specialization of labour and a very high degree of coordination - each department tended to own affairs with centralized decision making from upper management providing coordination scientific management: Frederick Taylor’s system for using research to determine the optimum degree of specialization and standardization of work tasks bureaucracy: Max Weber’s ideal type of organization that include the following qualities: - a strict chain of command; everyone reports to a single superior - selection + promotion based on technical skills rather than favouritism - detailed rules, regulations and procedures - strict specialization that matched duties with technical competence - centralization of power at top of organization The Humans Relation Movement and a Critique of Bureaucracy Hawthorne Studies: research conducted at Hawthorne plant (1920 – 1930) that illustrated how psychological + social processes affect productivity and work adjustment - impact suggested there could be dysfunctional aspects to how work was organized e.g. resistance to management human relations movement: critique of classical management + bureaucracy that advocated more management styles that were more participative + oriented toward employee needs - strict specialization is incompatible with growth and achievement - strong centralization fails to include creativity - strict rules leads to minimum acceptable levels of performance - strong specialization causes employees to lose sight of the overall goals of the organization – “red-tape mentality” The Contingency Approach - recognizes that there is no one best way to manage and that an appropriate management style depends on the demands of the situation Managerial Roles 1) In
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