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Chapter 1-3

Management and Organizational Studies 2181A/B Chapter Notes - Chapter 1-3: Flight Attendant, Specific Performance, Visible Minority

Management and Organizational Studies
Course Code
MOS 2181A/B
Sarah Ross

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Part 1: Introduction to Organizational Behaviour
Chapter 1: What is Organizational behavior?
What is organizational behavior?
Without understanding why employees act the way they do (good or bad), it is very
difficult to find a way to change their attitudes and behaviours at work
1.1 Organization Behaviour Defined
Organizational behavior- a field of study devoted to understanding, explaining, and
ultimately improving the attitudes and behaviours of individuals and groups in
Contrasted with two other courses commonly offered in management departments
o Human resources management- takes the theories and principles studied in OB
ad eploes the uts ad olts appliatios of those piiples i
organizations e.g. OB study explores the relationship between learning and job
performance, whereas a HR management study might examine the best ways to
structure training programs to promote employee learning
o Strategic management- focuses on the product choices and industry
haateistis that affet a ogaizatio’s pofitailit e.g. elatioship
between firm diversification (when a firm expands into a new product segment)
and firm profitability
1.2 What are the Two primary outcomes in studies of OB?
Job performance and Organizational commitment
Most employees have 2 primary goals for their working lives: to perform their jobs well
and to remain members of an organization they respect
Most managers have 2 primary goals for their employees: to maximize their job
performance and to retain these employees for a significant length of time
1.3 What factors affect the two primary OB outcomes?
Individual characteristics and mechanisms
o personality, cultural values, ability
o Job satisfaction- how employees feel about their jobs and day to day work
o Stress- eploees’ pshologial esposes to jo deads that ta o eeed
their capacities
o Motivation- the energetic forces that drive employees’ ok effot
o Trust, justice, and ethics- how strongly employees feel their company conducts
business with fairness, honesty, and integrity
o Learning and decision making- the ways employees gain job knowledge and use
it to make accurate judgments
Relational mechanisms
o Understand want factors improve those mechanisms above
o Critical work relationships, with co-workers and leaders, shape the individual
mechanisms of satisfaction, stress, motivation, trust, and learning
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o Communication processes (chapter 10) and the factors that help or hinder
exchange of information within the workplace
o Team characteristics and processes (chapter 11- exploring the structure of
effective work groups, such as their norms and their roles, describing the
processes at work in the behavior of groups and teams, such as cooperation,
conflict, and managing diversity
o Power, influence, and negotiation (chapter 12)- examines how people leverage
their relationships to attain authority and achieve desirable outcomes within
organizational settings
o Leadership styles and behaviours (chapter 13)- how leaders relate to their
followers and impact the attitudes and behaviours of others at work
Organizational Mechanisms
o Integrative model acknowledges that individuals and groups function within an
organizational context
o Organizational structure (chapter 14)- dictates how the units within the firm link
to and coordinate with other units e.g. centralized, decentralized
o Organizational culture and change (chapter 15)- shared knowledge about the
rules, norms, and values that shape employee attitudes and behaviours
Does organizational behavior matter?
Effective OB can help keep a product good over the long term
Effective OB can help make a product get better, incrementally, over the long term
Building a Conceptual Argument
Resource based view- a model that argues that rare and inimitable resources help firms
maintain competitive advantage
o Financial (e.g. revenue, equity), physical (e.g. buildings, machines, technology),
organizational behavior (e.g. knowledge, decision making, ability, wisdom,
image, culture, goodwill of the company)
o Rare- in short supply e.g. good people
o Inimitable- incapable of being imitated or copied e.g. valuable people are
difficult to imitate
3 reasons why people are inimitable:
o 1. People create a history- a collective pool of experience, wisdom, and
knowledge that eefits the ogaizatio. Histo a’t e ought.
o 2. Numerous small decisions- small decisions that people make every day
o 3. Socially complex resources- resources created by people, such as culture,
teamwork, trust, and reputation e.g. coolness, admiration
1.4 Why might firms that are good at OB tend to be more profitable?
Good people are both rare and inimitable and therefore create a resource that is valuable for
creating competitive advantage.
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A one-unit increase in the proportion of the workforce involved in the practices was
associated with an approximately 7 percent decrease in turnover, $27000 more in sales
per employee, $18000 more in market value, and $3800 more in profits
OB practices were associated with better firm performance
Firms that valued OB had a 19% higher survival rate than firms that did not
“o hat’s so had?
Rule of one-eighth- the belief that at best one-eighth, or 12% of organizations will actually do
what is required to build profits by putting people first
½ ogaizatios o’t eliee the oetio etee ho the aage thei people
and the profits they earn, ½ of those will try to make a single change to solve their
problems, not realizing it requires a more comprehensive and systematic approach, ½
that make comprehensive changes will persist with their practices long enough to
actually derive economic benefits
high job performance depends on employee motivation, fostering high levels of
satisfaction, effectively managing stress, creating a trusting climate, and committing to
employee learning
Ho do e ko hat e ko aout ogaizatioal ehaio?
Method of experience- people hold firmly to some belief because it is consistent with
their own experience and observations
Method of intuition- people hold fil to soe elief eause it just stads to
easo- it seems obvious or self-evident
Method of authority- people hold firmly to some belief because some respected official,
agency, or source has said it is so
Method of science- people accept some belief because scientific studies have tended to
replicate that result using a series of samples, settings, and methods
1.5 What is the role of theory in the scientific method?
“ietists do’t sipl assue that thei eliefs ae auate, the akoledge that
their beliefs must be tested scientifically
Theory- a collection of verbal and symbolic assertions that specify how and why
variables are related, as well as the conditions in which they should (and should not) be
Hypotheses- written predictions that specify relationships between variables
Theories about organizational behavior are built from a combination of interviews,
observation, research reviews, and reflection
Theory hypotheses data verification
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