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Chapter 1

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Rotman Commerce

Chapter 1  Organizations: social inventions for accomplishing common goals through group effort.  Their essential characteristic is the coordinated presence of people not necessarily of things  The field of organizational behavior is about understanding people and managing them to work effectively  Virtually all organizations have survival as a goal. The field of organizational behavior is concerned with how organizations can survive and adapt to change  Innovation and flexibility, which provide for adaption to change, are especially important for contemporary organizations.  The final component of the definition of organizations is that they are based on group effort. Organizations depend on interaction and coordination among people to accomplish their goals.  Much of the intellectual and physical work done in organizations are done by groups  Informal grouping occurs in all organizations because friendships develop and individuals form informal alliances to accomplish work  The quality of communication and morale through informal groups have an impact on goal achievement  The field of OB is concerned with how to get people to practice effective teamwork  Organizational Behaviour: the attitudes and behaviours of individuals and groups in organizations.  Systematically studies these attitudes and behaviours and provides insight about effectively managing and changing them  It also studies how organizations can be structured more effectively and how events in their external environments affect organizations.  Those who study organizational behavior are interested in attitudes.  OB addresses questions such as:  How can you motivate others to deliver top performance?  How do you win negotiations?  How can you make the best decisions?  How do you get those around you to implement those decisions?  Thus, OB is important to managers, employees, and consumers and understating it can make us more effective managers, employees, or consumers  Today, the main factor that differentiates organizations is their workforce or human capital and the most successful organizations are those that effectively manage their employees  Predicting the behavior of others is an essential requirement for everyday life, both inside and outside of organizations  In organizations, there is considerable interest in predicting when people will make ethical decisions, create innovative products, or engage in sexual harassment  The very regularity of behavior in organizations permits the prediction of its future occurrence  Another goal of OB is to explain events in organizations  Prediction and explanation are not synonymous  In general, accurate prediction precedes explanation.  OB is especially interested in determining why people are more or less motivated, satisfied, or prone to resign  This behavior could have many different causes, each of which would require a specific solution, Furthermore, explanation is also complicated by the fact that the underlying causes of some event or behavior can change over time  The ability to understand behavior is a necessary prerequisite for effectively managing it  Management: the art of getting things accomplished in organizations through others.  Managers acquire, allocate and utilize physical and human resources to accomplish goals  This definition does not include how to get things accomplished  If behaviour can be predicted and explained, it can often be controlled and managed  If we understand the reasons for high-quality service, ethical behavior, and anything else, we can often take sensible action to manage it effectively  The point is to approach a problem with a systematic understanding of behavior science  Classical Viewpoint: An early prescription on management that advocated high specialization of labour, int
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