What Is Organizational Behaviour? Chapter 1 What Is Organizational Behaviour?

Chapter 1 Outline Defining Organizational Behaviour Today’s Challenges in the Canadian Workplace OB: Making Sense of Behaviour in Organizations Levels of Organizational Behaviour This material is found at the beginning of the chapter.

What Is Organizational Behaviour? Questions for Consideration What is organizational behaviour? What challenges do managers and employees face in the workplace of the 21st century? How will knowledge of organizational behaviour make a difference for you?

Organizational Behaviour . . . a field of study that investigates the impact that individuals, groups and structure have on behaviour within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness. This material is found in more detail on page 4.

Why Do We Study OB? To learn about yourself and how to deal with others You are part of an organization now, and will continue to be a part of various organizations Organizations are increasingly expecting individuals to be able to work in teams, at least some of the time Some of you may want to be managers or entrepreneurs This is one of the slides I use on the first day of class to help motivate the course.

What Is an Organization? A consciously coordinated social unit, composed of a group of people, which functions on a relatively continuous basis to achieve a common goal or set of goals. This material is found on page 5. 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. Only about 17 percent of Canadians work in manufacturing organizations. Three-quarters of Canadians work in the service-producing sector of the economy. The rest are are engaged in wholesale and retail trade. 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.

Exhibit 1-1 Challenges Facing the Workplace Organizational Level • Productivity Developing Effective Employees Global Competition Managing in the Global Village Group Level Working With Others Workforce Diversity Individual Level Job Satisfaction Empowerment Behaving Ethically The material for this illustration is found on page 6.

Today’s Challenges in the Canadian Workplace Challenges at the Individual Level Job Satisfaction Empowerment Behaving Ethically Challenges at the Group Level Working With Others Workforce Diversity This material is found in more detail on pages 8-11. 1. In a recent Financial Post survey, 75 percent of the public said it was extremely important for managers to make employees happy and satisfied. 2. Employees are increasingly demanding job satisfaction out of their jobs. In a recent Financial Post survey, 75 percent of the public deemed it extremely important for managers to make employees happy and satisfied. 3. 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. 4. In addition to the more obvious groups—women, First Nations peoples, Asian Canadians, African Canadians, Indo-Canadians—the workplace also includes people with disabilities, gays and lesbians, and the elderly.

Today’s Challenges in the Canadian Workplace Challenges at the Organizational Level Productivity Developing Effective Employees Absenteeism Turnover Organizational Citizenship Competition From the Global Environment Managing and Working in a Global Village This material is found in more detail on pages 11-15. 1. Absences in 2001 resulted in the loss of 3.4% of weekly work time. Absenteeism’s annual cost has been estimated at over $18 billion for Canadian firms and $60 billion for U.S. organizations. 2. In recent years, Canadian businesses have faced tough competition from the United States, Europe, Japan, and even China. To survive, they have had to cut fat, increase productivity, and improve quality. 3. As multinational corporations develop operations worldwide, as companies develop joint ventures with foreign partners, and as workers increasingly pursue job opportunities across national borders, managers and employees must become capable of working with people from different cultures.

Productivity Productivity Effectiveness Efficiency A performance measure including effectiveness and efficiency Effectiveness Achievement of goals Efficiency The ratio of effective work output to the input required to produce the work This material is found in more detail on pages 11.

Effective Employees Absenteeism Turnover Failure to report to work Turnover Voluntary and involuntary permanent withdrawal from the organization Organizational citizenship behaviour Discretionary behaviour that is not part of an employee’s formal job requirements, but is helpful to the organization This material is found in more detail on pages 12-13.

Contributing Disciplines to the OB Field Psychology Sociology Social Psychology Anthropology Political Science This material is found in more detail on pages 15-16 Psychology is the science that seeks to measure, explain, and sometimes change the behaviour of humans and other animals. 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. 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. processes. 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. Political science studies the behaviour of individuals and groups within a political environment. Specific topics of concern include structuring of conflict, allocation of power, and the manipulation of power for individual self-interest.

Exhibit 1-2 Toward an OB Discipline Social psychology Psychology Behavioural science Contribution Unit of analysis Output Anthropology Sociology Political science Study of Organizational Behaviour Organization system Learning Motivation Perception Training Leadership effectiveness Job satisfaction Individual decision making Performance appraisal Attitude measurement Employee selection Work design Work stress Group dynamics Work teams Communication Power Conflict Intergroup behaviour Formal organization theory Organizational technology Organizational change Organizational culture Intraorganizational politics Organizational environment Behavioural change Attitude change Group processes Group decision making Group Comparative values Comparative attitudes Cross-cultural analysis Individual The material for this illustration is found on pages 15-17.

The Rigour of OB OB looks at consistencies What is common about behaviour, and helps predictability? OB is more than common sense Systematic study, based on scientific evidence OB has few absolutes OB takes a contingency approach Considers behaviour in context This material is found in more detail on pages 17-19. 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?

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 & unwritten) in almost every setting This material is found in more detail on page 18.

Exhibit 1-3 Basic OB Model, Stage I Organization systems level Group level Individual level The material for this illustration is found on page 20.

Exhibit 1-4 Basic OB Model, Stage II Human resource policies and practices Organizational Organization Work design culture structure and and design technology Organization Systems Level Change and Group stress decision making Leadership Communication Group Work Satisfaction Organizational commitment Turnover Absence Productivity Workplace interaction Human output structure teams Other Power and The material for this illustration is found on page 21. groups Conflict politics Group Level Biographical characteristics Personality Perception Values and attitudes Motivation Individual decision making Human Individual Differences input Ability Individual Level

Summary and Implications OB is a field of study that investigates the impact that individuals, groups, and structure have on behaviour within an organization. OB focuses on improving productivity, reducing absenteeism and turnover, and increasing employee job satisfaction and organizational commitment. OB uses systematic study to improve predictions of behaviour. This material is found in more detail on pages 22 and 23.

Exhibit 1-5 Competing Values Framework Flexibility Control Internal Focus External Focus The material for this illustration is found on page 26. 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 in more detail on pages 26-27.