Introduction to the Field of Organisational Behaviour

Westpac and OB Westpac Banking Corporation has leveraged the power of organisational behaviour to become one of the most successful and respected companies around the Pacific Rim. Courtesy of Westpac Banking Corporation

What are Organisations? Groups of people who work interdependently toward some purpose Structured patterns of interaction Coordinated tasks Work toward some purpose Courtesy of Westpac Banking Corporation

Why Study Organisational Behaviour Understand Organisational Events Why Study Organisational Behaviour Predict Organisational Events Influence Organisational Events

Trends: Globalisation Economic, social and cultural connectivity (and interdependence) with people in other parts of the world Effects of globalisation on organisations: New organisational structures Different forms of communication More diverse workforce More competition, mergers, work intensification and demands for work flexibility

Trends: Changing Workforce Workforce has increasing diversity along several dimensions Primary categories gender, age, ethnicity, etc. Secondary categories some control over (e.g. education, marital status)

Trends: Changing Workforce Mt Albert Pak’n Save is a role model for cultural diversity. More than half of the supermarket’s 300 employees were born outside of New Zealand, representing fourteen different cultures. Courtesy of Mt Albert Pak’n Save

Trends: Changing Workforce Current trends Increased racial and ethnic diversity More women in workforce Generational diversity New age cohorts (e.g. Gen-X, Gen-Y) Implications Leverage diversity advantage Adjust to the new workforce Courtesy of Mt Albert Pak’n Save

Trends: Employment Relationships Work/life balance Number one indicator of career success Priority for many young people looking for new jobs Employability “New deal” employment relationship Continuously learn new skills Contingent work No explicit or implicit contract for long-term employment, or minimum hours of work can vary in a non-systematic way

Trends: Virtual Work Using information technology to perform one’s job away from the traditional physical workplace. Telework (telecommuting) working from home, usually Internet connection to office Virtual teams operate across space, time and organisational boundaries with members who communicate mainly through electronic technologies

Trends: Workplace Values/Ethics Long-lasting beliefs about what is important in a variety of situations Define right versus wrong – guide our decisions Values increasingly important due to: Need to guide employee decisions and actions Globalisation increases awareness of different values Increasing emphasis on applying ethical values Ethics Study of moral principles or values that determine whether actions are right or wrong, and outcomes are good or bad

Corporate Social Responsibility Organisation’s moral obligation toward its stakeholders Stakeholders Shareholders, customers, suppliers, governments etc. Triple bottom line philosophy Economic, social and environmental

Organisational Behaviour Anchors Multidisciplinary Anchor Organisational Behaviour Anchors Systematic Research Anchor Open Systems Anchor Multiple Levels of Analysis Anchor Contingency Anchor

Organisational Behaviour Anchors Multidisciplinary anchor Many OB concepts adopted from other disciplines OB is developing its own models and theories, but also needs to scan other fields for ideas Systematic research anchor OB researchers rely on scientific method OB also adopting grounded theory and similar qualitative approaches to knowledge

Organisational Behaviour Anchors Contingency anchor A particular action may have different consequences in different situations Need to diagnose the situation and select best strategy under those conditions Multiple levels of analysis anchor OB issues can be studied from individual, team and/or organisational level Topics usually relate to all three levels

Open Systems Anchor Need to monitor and adapt to environment External environment – natural and social conditions outside the organisation Receive inputs from environment; transform them into outputs back to the environment Stakeholders – anyone with a vested interest in the organisation Organisations consist of interdependent parts (subsystems) that need to coordinate

Open Systems Anchor Environment Feedback Feedback Feedback Feedback

Knowledge Management Defined Any structured activity that improves an organisation’s capacity to acquire, share and use knowledge for its survival and success.

Intellectual Capital Human Capital Structural Capital Knowledge that people possess and generate Structural Capital Knowledge captured in systems and structures Relationship Capital Values derived from satisfied customers, reliable suppliers, etc.

Knowledge Management Processes Acquisition Knowledge Sharing Knowledge Use Hiring talent Acquiring firms Individual learning Experimentation Communication Communities of practice Awareness Freedom to apply

Organisational Memory The storage and preservation of intellectual capital Retain intellectual capital by: Keeping knowledgeable employees Transferring knowledge to others Transferring human capital to structural capital Successful companies also unlearn

Chapter One Extras

Job Security vs. Employability Lifetime job security Jobs are permanent Company manages career Low emphasis on skill development Limited job security Jobs are temporary Career self- management High emphasis on skill development

Part One – Video Clip The following video clip reflects the themes in Part One.

New Belgium Brewery – click image to play video Part One Video Clip New Belgium Brewery – click image to play video