What is Organizational Behaviour? 1 What is Organizational Behaviour?

Chapter Outline Defining Organizational Behaviour What Do We Mean by Organization? OB is for Everyone The Importance of Interpersonal skills Today’s Challenges in the Canadian Workplace Challenges at the Individual Level Challenges at the Group Level Challenges at the Organizational Level OB: Making Sense of Behaviour in Organizations The Building Blocks of OB The Rigour of OB OB in Summary Material pertinent to this discussion is found under “Snapshot Summary” at the end of the chapter.

Learning Outcomes What is organizational behaviour? What challenges do managers and employees face in today’s workplace? Isn’t organizational behaviour common sense? Or just like psychology? Material pertinent to this discussion is found at the beginning of the chapter.

Organizational Behaviour A field of study that investigates the impact that individuals, groups, and structure have on behaviour within organizations The aim is to apply such knowledge toward improving organizational effectiveness. Material pertinent to this discussion is found under “Defining Organizational Behaviour.”

Why Do We Study OB? To learn about yourself and others To understand how the organizations you encounter work To become familiar with team work To help you think about the people issues faced by managers and entrepreneurs This is one of the slides I use on the first day of class to help motivate students for this course. Remind students that the course will help them: Learn about themselves and how to deal with others. Understand how organizations work (they will have ongoing “relationships” with organizations throughout their lives). Learn how to be team members. Organizations are increasingly expecting individuals to be able to work in teams, at least some of the time. Understand how to run a business. Some of you may want to be managers or entrepreneurs.

What Do We Mean By An Organization? A consciously coordinated social unit: composed of a group of people functioning on a relatively continuous basis to achieve a common goal or set of goals Material pertinent to this discussion is found under “Defining Organizational Behaviour.” An organization is a consciously coordinated social unit, composed of a group of people that functions on a relatively continuous basis to achieve a common goal or set of goals. Manufacturing and service firms are organizations, and so are schools, hospitals, churches, military units, retail stores, police departments, volunteer organizations, start-ups, and local, state and federal government agencies. There are a variety of organizations that comprise the Canadian workplace. The instructor might want to remind students that organizations can be located in the public sector or the private sector, they can be unionized or not, they can be publicly traded or they can be privately held. If they are publicly traded, senior managers typically are responsible to a board of directors, which may or may not take an active role in the how the firm is run. The managers themselves may or may not own shares of the firm. If the firm is privately held, it may be run by the owners, or the managers report to the owners. Firms can also operate in the for-profit or the non-profit sector. All of these facts, taken as a whole should suggest that when one thinks of an organization, the likelihood that it is a “typical” organization is small.

OB Is for Everyone Organizational Behaviour (OB) is relevant anywhere: people come together and share experiences, work on goals, or meet to solve problems. Material pertinent to this discussion is found under “Defining Organizational Behaviour.”

The Importance of Interpersonal Skills Recognition of the importance of developing interpersonal skills is closely tied to the need for organizations to get and keep high-performing employees. Creating a pleasant workplace makes good economic sense. Companies with reputations as good places to work have been found to generate superior financial performance. Material pertinent to this discussion is found under “Defining Organizational Behaviour.” A recent survey of hundreds of workplaces, and over 200 000 respondents, showed that the social relationships among co-workers and supervisors were strongly related to overall job satisfaction. Positive social relationships also were associated with lower stress at work and lower intentions to quit. So, having managers with good interpersonal skills is likely to make the workplace more pleasant, which in turn makes it easier to hire and keep qualified people

Exhibit 1-1: Basic OB Model Material pertinent to this discussion is found under “Today’s Challenges in the Canadian Workplace.”

Today’s Challenges in the Canadian Workplace Challenges at the Individual Level Individual Differences Job Satisfaction Motivation Empowerment Behaving Ethically Challenges at the Group Level Working With Others Workforce Diversity Material pertinent to this discussion is found under “Today’s Challenges in the Canadian Workplace.” Challenges at the Individual Level – managers and employees need to learn how to work with people who may be different from themselves on a variety of dimensions, including personality, perception, values, and attitudes. Individuals also have different levels of job satisfaction and motivation, and these affect how managers manage employees. Perhaps the greatest issue facing individuals (and organizations) is how to behave ethically in the face of competing demands from different stakeholders. Individual Differences - People enter groups and organizations with certain characteristics that influence their behaviour, the more obvious of these being personality characteristics, perception, values, and attitudes. These characteristics are essentially intact when an individual joins an organization, and for the most part, there is little that those in the organization can do to alter them. Job satisfaction - Employees are increasingly demanding job satisfaction out of their jobs – a positive feeling about your job resulting from an evaluation of its characteristics. Motivation - A recent survey of Canadian employees found that only 24 percent agreed that to a great extent they received recognition for work well done. Empowerment - Managers are empowering employees. They are putting employees in charge of what they do. And, in the process, managers are learning how to give up control, and employees are learning how to take responsibility for their work and make appropriate decisions. Behaving Ethically – In an organizational world characterized by cutbacks, expectations of increasing productivity, and tough competition, it’s not surprising that many employees feel pressured to cut corners, break rules, and engage in other forms of questionable practices. Increasingly they face ethical dilemmas and ethical choices, in which they are required to identify right and wrong conduct. Challenges at the Group Level - The behaviour of people in a group is more than the sum total of all the individuals acting in their own way. People’s behaviour when they are in a group differs from their behaviour when they are alone. Working with Others – The Conference Board of Canada identified the skills that form the foundation for a high-quality workforce in today’s workplace, including the ability to communicate, think, and solve problems, learn continuously, and work with others. The ability to demonstrate positive attitudes and behaviours and take responsibility for one’s actions are also key skills Workplace Diversity - The ability to adapt to many different people is one of the most important and broad- based challenges facing organizations. The term we use to describe this challenge is workforce diversity. Workforce diversity: The mix of people in organizations in terms of gender, race, ethnicity, disability, sexual orientation, age, and demographic characteristics such as education and socio-economic status

Today’s Challenges in the Canadian Workplace Challenges at the Organizational Level Improving Customer Service Stimulating Innovation and Change The Use of Temporary (Contingent) Employees Improving Quality and Productivity Developing Effective Employees Helping Employees with Work-Life Balance Creating a Positive Work Environment Responding to Globalization Material pertinent to this discussion is found under “Today’s Challenges in the Canadian Workplace.”

Improving Customer Service OB can provide considerable guidance in helping managers create a customer-responsive culture - in which employees are: friendly and courteous, accessible, knowledgeable, prompt in responding to customer needs, and willing to do what’s necessary to please the customer. Material pertinent to this discussion is found under “Today’s Challenges in the Canadian Workplace.” 78% of Canadians work in the service jobs. Service jobs include technical support representatives, fast-food counter workers, sales clerks, waiters and waitresses, nurses, automobile repair technicians, consultants, credit representatives, financial planners, and flight attendants. The common characteristic of these jobs is substantial interaction with an organization’s customers. Many an organization has failed because its employees failed to please customers. Management needs to create a customer-responsive culture. OB can provide considerable guidance in helping managers create such cultures—in which employees are friendly and courteous, accessible, knowledgeable, prompt in responding to customer needs, and willing to do what’s necessary to please the customer.

Stimulating Innovation and Change Innovation: Organizations must maintain their flexibility, continually improve their quality, and beat their competition to the marketplace. Employees: Can be the impetus for innovation and change, or they can be a major stumbling block. Stimulating Creativity: The challenge for managers is to stimulate their employees’ creativity and tolerance for change. Material pertinent to this discussion is found under “Today’s Challenges in the Canadian Workplace.”

The Use of Temporary (Contingent) Employees Downsizing: The number of openings for nonpermanent workers has increased. Benefit: Employees prefer the freedom and flexibility of temporary status Challenge: Employees lack of security and stability that permanent employees have and organizations face the challenge of motivating employees who do not feel connected to the organization. Material pertinent to this discussion is found under “Today’s Challenges in the Canadian Workplace.” Downsizing has eliminated millions of “permanent” jobs, and the number of openings for nonpermanent workers has increased. Some contingent employees prefer the freedom of a temporary status that permits them to attend school, care for their children, or have the flexibility to travel or pursue other interests. Because contingent employees lack the security and stability that permanent employees have, they don’t always identify with the organization or display the commitment of other employees. Organizations face the challenge of motivating employees who do not feel as connected to the organization as do full-time employees.

Improving Quality and Productivity A performance measure including effectiveness and efficiency. Effectiveness The achievement of goals. Efficiency The ratio of effective work output to the input required to produce the work. Material pertinent to this discussion is found under “Today’s Challenges in the Canadian Workplace.”

Developing Effective Employees Absenteeism: the failure to report to work Turnover: voluntary or involuntary permanent withdrawal from an organization. Organizational Citizenship Behaviour (OCB): Discretionary behaviour that is not part of an employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization. Material pertinent to this discussion is found under “Today’s Challenges in the Canadian Workplace.”

Helping Employees with Work-Life Balance Employees are increasingly complaining that the lines between work and private life have blurred. has led to more personal conflicts and stress. Why? Creation of global organizations; the world never sleeps Communication technology; people bring work home Organizations are asking employees to work longer hours Organizations must help employees strike a balance or risk losing key employees and future candidates. Material pertinent to this discussion is found under “Today’s Challenges in the Canadian Workplace.”

Creating a Positive Work Environment Positive Organizational Scholarship An area of OB research that focuses on how organizations develop human strength, foster vitality and resilience, and unlock potential. This approach challenges researchers and companies to look at OB through a new lens. Focus is placed on how to exploit employee strengths rather than to dwell on their limitations. Material pertinent to this discussion is found under “Today’s Challenges in the Canadian Workplace.”

Responding to Globalizaton In recent years, Canadian businesses have faced tough competition from the United States, Europe, Japan, and even China, as well as from other companies within our borders. To survive, they have had to reduce costs, increase productivity, and improve quality. Material pertinent to this discussion is found under “Today’s Challenges in the Canadian Workplace.”

Responding to Globalizaton Some employers have outsourced jobs to other countries where labour costs are lower to remain profitable. National borders no longer protect most firms from foreign competitive pressures Trading blocks (i.e. NAFTA and EU) reduce tariffs and barriers to trade Internet has also enabled companies to become more globally connected Material pertinent to this discussion is found under “Today’s Challenges in the Canadian Workplace.”

Responding to Globalizaton Managers and employees must become capable of working with people from different cultures: Multinational corporations are developing operations worldwide. Companies are developing joint ventures with foreign partners. Workers are pursuing job opportunities across national borders. Material pertinent to this discussion is found under “Today’s Challenges in the Canadian Workplace.”

The Building Blocks of OB Psychology Social Psychology Sociology Anthropology Material pertinent to this discussion is found under “OB: Making Sense of Behaviour in Organizations.” Psychology is the science that seeks to measure, explain, and sometimes change the behaviour of humans and other animals. Social psychology is an area within psychology, but it blends concepts from psychology and sociology. It focuses on the influence of people on one another. One of the major areas receiving considerable investigation from social psychologists has been change--how to implement it and how to reduce barriers to its acceptance. Sociology: Whereas psychologists focus on the individual, sociologists study the social system in which individuals fill their roles; that is, sociology studies people in relation to other human beings. Anthropology is the study of societies to learn about human beings and their activities. Anthropologists’ work on cultures and environments, for instance, has helped us understand differences in fundamental values, attitudes, and behaviour between people in different countries and within different organizations.

Exhibit 1-2: Toward an OB Discipline Material pertinent to this discussion is found under “OB: Making Sense of Behaviour in Organizations.”

The Rigour of OB OB Looks at Consistencies What is common about behaviour, and helps predictability? OB Looks Beyond Common Sense Systematic study, based on scientific evidence Evidence-based management (EBM) OB Has Few Absolutes Few, if any, simple and universal principles that explain OB OB Takes a Contingency Approach Considers behaviour in context Material pertinent to this discussion is found under “OB: Making Sense of Behaviour in Organizations.” This would be a good place to get students’ views on questions such as: (1) Are happy workers always productive workers? (2) Are individuals always more productive when their boss is a real “people person?” (3) Does everyone want a challenging job?

Exhibit 1-3: Research Methods in OB Material pertinent to this discussion is found under “OB: Making Sense of Behaviour in Organizations.”

OB Looks at Consistencies What is common about behaviour, and helps predictability? Certainly there are differences among individuals. Placed in similar situations, all people don’t act exactly alike. However, there are certain fundamental consistencies underlying the behaviour of all individuals. Material pertinent to this discussion is found under “OB: Making Sense of Behaviour in Organizations.”

OB Looks Beyond Common Sense Systematic study Looking at relationships, attempting to attribute causes and effects and drawing conclusions based on scientific evidence Behaviour is generally predictable. There are differences between individuals. There are fundamental consistencies. There are rules (written and unwritten) in almost every setting. Material pertinent to this discussion is found under “OB: Making Sense of Behaviour in Organizations.”

OB Has Few Absolutes There are few simple and universal principles that explain organizational behaviour. Human beings are very complex. Humans are not alike, which limits the ability to make simple, accurate, and sweeping generalizations. Material pertinent to this discussion is found under “OB: Making Sense of Behaviour in Organizations.”

OB Takes a Contingency Approach Contingency approach: Considers behaviour within the context in which it occurs. Depends upon the situation Material pertinent to this discussion is found under “OB: Making Sense of Behaviour in Organizations.” OB concepts must reflect situational or contingency conditions, and hence predictions about human behaviour are at best probabilistic, not absolute. That is, X is likely to lead to Y, but only under conditions specified in Z (the contingency variables).

Exhibit 1-4 OB in Summary Material pertinent to this discussion is found under “OB: Making Sense of Behaviour in Organizations.”

Summary and Implications What is organizational behaviour? OB is a field of study that investigates the impact that individuals, groups, and structure have on behaviour within an organization. What challenges do managers and employees face in today’s workplace? Each level of analysis—the individual, the group, and the organization—presents challenges. Isn’t organizational behaviour common sense? Or just like psychology? OB is built on contributions from a number of behavioural disciplines, including psychology, sociology, social psychology, and anthropology. It goes beyond “common sense.” This material is found at the end of the chapter.

OB at Work: For Review Define organizational behaviour. What is an organization? Is the family unit an organization? Explain. “Behaviour is generally predictable, so there is no need to formally study OB.” Do you agree or disagree with this statement? Why? What are some of the challenges and opportunities that managers face in today’s workplace? What are the three levels of analysis in our OB model? Are they related? If so, how? Why is job satisfaction an important consideration for OB? What are effectiveness and efficiency, and how are they related to OB? What does it mean to say OB takes a contingency approach in its analysis of behaviour? This material is found at the end of the chapter. Isn’t organizational behaviour common sense? Or just like psychology? OB is built on contributions from a number of behavioural disciplines, including psychology, sociology, social psychology, and anthropology. It goes beyond “common sense.”

OB at Work: For Critical Thinking “OB is for everyone.” Build an argument to support this statement. Why do you think the subject of OB might be criticized as being “only common sense,” when we would rarely hear such a criticism of a course in physics or statistics? Do you think this criticism of OB is fair? On a scale of 1 to 10 measuring the sophistication of a scientific discipline in predicting phenomena, mathematical physics would probably be a 10. Where do you think OB would fall on the scale? Why? Can empowerment lead to greater job satisfaction? This material is found at the end of the chapter.

Learning About Yourself Exercise 1. Taking initiative 2. Goal setting 3. Delegating effectively 4. Personal productivity and motivation 5. Motivating others 6. Time and stress management 7. Planning 8. Organizing 9. Controlling 10. Receiving and organizing information 11. Evaluating routine information 12. Responding to routine information 13. Understanding yourself and others 14. Interpersonal communication 15. Developing subordinates 16. Team building 17. Participative decision making 18. Conflict management 19. Living with change 20. Creative thinking 21. Managing change 22. Building and maintaining a power base 23. Negotiating agreement and commitment 24. Negotiating and selling ideas This material is found at the end of the chapter. Ask students for a show of hands to determine which skills they deem most important. You can then relate this to the competing values framework to indicate which areas of OB/management behaviour would be weakened because of omitted skills.

Learning About Yourself Exercise Scoring Key Director: 1, 2, 3 Mentor: 13, 14, 15 Producer: 4, 5, 6 Facilitator: 16, 17, 18 Coordinator: 7, 8, 9 Innovator: 19, 20, 21 Monitor: 10, 11, 12 Broker: 22, 23, 24 This material is found at the end of the chapter. Use this to remind students of the scoring key as they fill out the survey. Source: Created based on material from R. E. Quinn, S. R. Faerman, M. P. Thompson, and M. R. McGrath, Becoming A Master Manager: A Competency Framework (New York: John Wiley & Sons, Inc. 1990), Chapter 1.

Breakout Group Exercises Form small groups to discuss the following topics: Consider a group situation in which you have worked. To what extent did the group rely on the technical skills of the group members vs. their interpersonal skills? Which skills seemed most important in helping the group function well? 2. Identify some examples of “worst jobs.” What conditions of these jobs made them unpleasant? To what extent were these conditions related to behaviours of individuals? 3. Develop a list of “organizational puzzles,” that is, behaviour you’ve observed in organizations that seemed to make little sense. As the term progresses, see if you can begin to explain these puzzles, using your knowledge of OB. This material is found at the end of the chapter.

Working With Others Exercise This exercise asks you to consider the skills outlined in the “Competing Values Framework” to develop an understanding of managerial expertise. Steps 1–4 can be completed in 15–20 minutes. Using the skills listed in “Learning About Yourself,” identify the 4 skills that you think all managers should have. Identify the 4 skills that you think are least important for managers to have. In groups of 5–7, reach a consensus on the most-needed and least-needed skills identified in Steps 1 and 2. Using Exhibit 1-7, determine whether your “ideal” managers would have trouble managing in some dimensions of organizational demands. This material is found at the end of the chapter.

Exhibit 1-6: Competing Values Framework This material is found at the end of the chapter. In teaching this, you may want to start by having students do the Learning about Yourself and Working with Others exercises. Debriefing the exercise will provide information about what skills students think are important, and what skills they believe they already have. You can then point to the skill gaps, and the problems that organizations and managers would face as a result.

Competing Values Framework Internal-External Dimension Inwardly, toward employee needs and concerns and/or production processes and internal systems or Outwardly, toward such factors as the marketplace, government regulations, and the changing social, environmental, and technological conditions of the future Flexibility-Control Dimension Flexible and dynamic, allowing more teamwork and participation; seeking new opportunities for products and services Controlling or stable, maintaining the status quo and exhibiting less change This material is found at the end of the chapter.

Exhibit 1.7: Skills for Mastery in the New Workplace This material is found at the end of the chapter.