1. The Nature and Scope of Organizational Behaviour
Chapter One
The Nature and Scope of Organizational Behaviour

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Objectives
After reading and studying this chapter, you should be able to:
Explain what organizational behaviour means.
Identify the potential advantages of organizational behaviour knowledge.
Explain key events in the history of organizational behaviour.
Identify some of the key approaches to organizational behaviour and recent trends in the field.
Summarize the research methods of organizational behaviour.
Understand how a person develops organizational behaviour skills.
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3. The Meaning of Organizational Behaviour
OB is the study of human behaviour in the workplace, the interaction between people and the organization, and the organization itself.
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Goals of OB
Explain behaviour
Predict behaviour
Influence behaviour
For you to be able to make sense of an organization in which you are placed:
“What is going on here from a human standpoint?”
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5. Benefits of Studying OB
Skill development
Personal growth
Enhancement of organizational effectiveness
Sharpening and refinement of common sense
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6. Benefit #1 – Skill development
Generic skills that complement all disciplines (e.g., dealing with people, problem solving)
“soft” skills
e.g., motivating others
hard & soft
e.g., decision making
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7. Benefit #2 – Personal Growth through Insight into Human Behaviour
Better understanding of others
Enhanced self-knowledge and self-insight
Practical applications:
Managerial tasks, e.g., selecting people for jobs, communicating
Professional tasks, e.g., managing change, dealing with customers
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8. Benefit #3 – Enhancement of Organizational Effectiveness
Attention to the human element improves business performance
e.g., link between human resource practices and bank performance
OB uncovers factors influencing performance
e.g., motivation – people work harder with greater control over work environment, teams more productive and happier when given responsibility
Managerial success enhanced by understanding people
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9. Benefit #4 – Sharpening & Refining Common Sense
Reduces time needed to acquire knowledge and skills re. behaviour
Common sense applies generally; OB helps with specific application
Common sense sometimes only partially true (e.g., inactivity des not reduce stress for all)
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10. Brief History: Four Key Developments
Classical Approach to Management
Hawthorne studies
Human Relations Movement
Contingency Approach to management & leadership
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11. Brief History: Classical Approach
Study of management more systematic and formal as a result of Industrial revolution
Encompassed:
Scientific Management
Administrative Management
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12. Brief History: Classical Scientific Management
Applying scientific methods (Taylor, Gilbreth, Gantt) to increase productivity:
Careful study to develop standard work practices, standardization of tools
Worker selection using scientific principles
Management/worker cooperation to accomplish standard procedures
Managers do the thinking/workers carry out
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13. Brief History: Classical Administrative Management
Concerned with management & structure of organizations
Fayol developed management principles for planning, organizing, commanding, coordinating & controlling
Weber suggested bureaucracy as ideal in efficiency
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14. Brief History: Classical Approach
Strengths & contributions:
Provided framework for management – planning, organizing, leading & controlling
Provided systematic ways of measuring people and work
Limitations:
Sometimes ignores differences among people and situations
Some principles not suited to fast-changing situations
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15. Brief History: Hawthorne Studies
Marked beginning of behavioural approach to management
Began with lighting studies at Western Electric’s Hawthorne plant, continued by investigating other possible influences
Revealed production influenced by human factors
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16. Brief History: Hawthorne Studies (cont.)
Origin of phenomenon referred to as “Hawthorne Effect”:
People tend to behave differently when they receive attention (as in an experiment) because they respond to the demands of the situation
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17. Brief History: Hawthorne Studies • Key Findings •
Economic incentives not as powerful as assumed.
Human problems challenging & complicated to deal with.
Leadership practices & work-group pressure influence employee satisfaction & productivity
Personal problems can influence productivity
Good communication critical to mgt success.
Factors influencing employee behaviour must be understood in context of social system.
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18. Brief History: Hawthorne Studies • Criticisms •
Lacking scientific rigour
E.g., control group employees influenced by feedback and rewards
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19. Brief History: Human Relations Movement
Theme 1:
Believes important link between managerial practices, morale & productivity
Workers bring social needs to job & are members of various work groups
Managers must recognize those needs & the influence of work groups on performance
Theme 2:
Strong belief in workers’ capabilities; all would be productive in proper environment
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20. Brief History: Human Relations – McGregor
Noted management’s assumptions about workers’ capabilities:
Theory X (pessimistic)
People dislike work, not ambitious, seek to avoid responsibility, must be watched closely
Theory Y (optimistic)
People do accept responsibility, can innovate, see work as natural, can exercise self-control
McGregor: Y should guide managerial practice
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21. Brief History: Contingency Approach to Management
No one best way to manage people or work; must consider situational factors
Emerged from study of leadership styles: workers do not respond in same way to identical leadership initiatives
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22. Brief History: Contingency Approach to Management (cont.)
Strength:
Encourages us to examine individual and situational differences before deciding on course of action
Problem:
Used as excuse for not acquiring OB knowledge (what’s the point if “it depends”?)
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23. Other Key Approaches to OB
Multidisciplinary, e.g.,
Psychology
Sociology
Anthropology
Political science
Engineering
Systems approach
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Systems Approach
Considers an organization to be a system (set of inter-related parts acting as one) that interacts with environment
Draws input (people, equipment…) from environment
Processes inputs
Returns outputs (goods, services) to environment
Has subsystems within; is part of larger system
Change in one system or subsystem affects others
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25. Systems Approach (cont.)
Emphasizes openness and connectedness
Notes use of boundary spanners
Suggests people working together often more effective than as individuals
Suggests many ways to do things (different processes creating similar outputs)
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26. Recent Trends Influencing OB
Globalization
Requirements for managing diversity
Emphasis on ethical decision making
Demands for leadership development
Need for effective knowledge management
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27. OB Data Collection & Research Methods
Methods of data collection:
Surveys
Interviews
Direct observation of behaviour
Systematic observation
Participant observation
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28. OB Data Collection & Research Methods (cont.)
Case studies
Experiments
independent and dependent variables
lab experiments
field experiments
Meta-analysis
combining results
note moderator variables
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29. A Framework for Studying OB
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30. Skill Development in OB
Means learning to work effectively with individuals, groups and organizational forces
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31. Exhibit 1-3 A Model for Developing Skills in OB
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