CHAPTER 1 – ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT
• Organizations: Social inventions for accomplishing goals through group effort.
• Organizational behavior is concerned with
o People and managing them to work effectively.
o How organizations can survive and adapt to change.
o How to get people to practice effective team work.
• Behaviors necessary for survival and adaptation are…
1. Be motivated to join and remain in the organization;
2. Carry out their basic work reliably, in terms of productivity, quality and
3. Be willing to continuously learn and upgrade their knowledge and skills;
4. Be flexible and innovative.
• Firms must “Get innovative or get dead.” – Tom Peters
• Organizational behavior: The attitudes and beliefs of individuals and groups in
• Goals of organizational behavior:
1. Predicting organizational behavior
2. Explaining organizational behavior
3. Managing organizational behavior
• Management: The art of getting things accomplished in organizations through
There were two views of the “correct” way to manage an organization:
1. The classical view and bureaucracy
2. The human relations movement and a critique of bureaucracy
The Classical View and Bureaucracy:
• Advocates: experienced managers and consultants
• Early 1900s
• Advocated a very high degree of specialization of labor and of coordination
• Each department tended to own affairs, centralized decision making
• “Bureaucracy” comes from Max Weber
• Bureaucracy = means of rationally managing complex organizations
o Strict chain of command, each member reports to just one supervisor
o Set of detailed rules
o Strict specialization
o Centralization of power at top of organization The Human Relations Movement and a Critique of Bureaucracy:
• Hawthorne studies: illustrated how psychological and social processes affect
productivity and work adjustment.
• Called attention to dysfunctional aspects of classical management/bureaucracy
• Advocated more people-oriented styles of management that catered more to
the social and psychological needs of employees
• Critique addressed several problems:
o Strict specialization = incompatible with human needs for growth and
achievement can lead to employee alienation
o Strong centralization fail to take advantage of ideas of lower-level
o Strict/impersonal rules lead members to adopt minimum level of
o Causes employees to lose sight of goals of organization
The contingency approach: An approach to management that recognizes that there is no
one best way to manage, and that an appropriate management style depends on the
demands of the situation