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Chapter 1 - Overview of OB

organisational behaviour - overview

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Prerna Arora
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0% found this document useful (0 votes)
107 views

Chapter 1 - Overview of OB

organisational behaviour - overview

Uploaded by

Prerna Arora
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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LEARNING OBJECTIVES

 Define organisation behaviour & Organisations, and the


importance of this field of enquiry.

 Discuss the impact of contemporary changes on


Organisational opportunities.

 Discuss the anchors of which organisational behaviour


knowledge is based.

 Compare and contrast the four perspectives of


Organisational effectiveness.
ORGANIZATIONS
 Consciously coordinated social unit composed of two or more

persons that function on a relatively continuous basis to achieve


some common goal.

 Organizations consists of

 Groups of people who work interdependently toward some purpose

 Collective entities

 Collective sense of purpose


ORGANIZATIONAL BEHAVIOUR
“ORGANISATION BEHAVIOUR is
a field of study that investigates
the impact that individuals, groups
and structure have on behaviour
within organisation, for the
purpose of applying such
knowledge towards improving an
organisation’s effectiveness.”

- Robbins and Judge


CONT.…

• Studies what people think, feel,


and do in and around
organizations.

• Encompasses the study of how


organisations interact with their
external environment,
particularly in the context of
employee behaviour and
decisions.

© Shopify
CONT.…
IMPORTANCE OF OB

For people in all jobs For organization’s

• Comprehend and predict • Predicts firm’s performance


workplace events • Predicts quality
• Adopt more accurate
• OB concepts are positive
personal theories
screens in investment
• Influence organizational
decisions
events

Survival and success


Satisfied workforce

© Shopify
THE CHANGING ORGANIZATION
CONTEMPORARY DEVELOPMENTS FACING
ORGANISATIONS

Technological
Globalization
change

Contemporary
Challenges

Emerging Increasing
employment workplace
relations Diversity
TECHNOLOGICAL CHANGE

Effects of technological change

• Higher productivity, but displaces employees/occupations

• Alters work relationships and behaviour patterns

• Improves health and wellbeing

Effects of information technology

• Greater employee voice to executives (direct communication)

• Less work or non-work separation, less attention span, more techno-

stress (longer work hours)


GLOBALIZATION

 Economic, social, and cultural connectivity with people in


other parts of the world due to better information technology
and transportation systems

 Effects of globalization on organizations


- Larger markets, lower costs, more knowledge

- Affects teamwork, diversity, cultural values, leadership

- Increases work intensification, reduces job security


EMERGING EMPLOYMENT RELATIONSHIPS

• Longer hours, less work or non-work separation

Work-life-balance - degree of conflict between work and non-


work demands

Remote work

• Working at client sites (e.g. repair technicians)

• Teleworking (telecommuting) – working from home Due to

technology, globalization, etc.


REMOTE/TELEWORK BENEFITS AND
PROBLEMS
Remote/Telework Benefits
• better work-life balance
• valued work benefit
• higher productivity
• better for the environment
• lower real estate costs for company

Remote/Telework Disadvantages
• more social isolation, less co-worker interaction
• less informal communication to help career advancement
• lower team cohesion, weaker organizational culture

Remote work benefits depends on person, job, firm


INCREASING WORKFORCE DIVERSITY

Surface-level vs. deep-level diversity

Consequences of diversity

• Better team creativity/decisions, but slower team

development

• Easier to recognize/address community needs

• Higher risk of dysfunctional conflict

• Diversity is a moral/legal imperative


ORGANIZATIONAL BEHAVIOUR
ANCHORS (1 OF 2)

1. Systematic research anchor

• OB knowledge is built on systematic research

• Evidence-based management

• Many people don’t apply evidence-based management

2. Multidisciplinary anchor

• Many OB concepts adopted from other disciplines

• OB develops its own theories, but scans other fields


ORGANIZATIONAL BEHAVIOUR ANCHORS (2
OF 2)

3. Contingency anchor

• A particular action may have different consequences in

different situations

• Need to diagnose the situation to choose best action

4. Multiple levels of analysis anchor

• Individual, team, organizational level of analysis

• OB topics usually relevant at all three levels of analysis


What Management Ultimately Wants?

Efficiency and Effectiveness


ORGANIZATIONAL EFFECTIVENESS

The ultimate dependent variable in OB

Goal attainment: Discredited view of effectiveness

Organizational effectiveness is a composite of four perspectives:


1. Open systems
2. Organizational learning
3. High-performance work practices (HPWP)
4. Stakeholder
OPEN SYSTEMS PERSPECTIVE (1 OF 2)

Organizations are complex systems that “live” within and depend


on the external environment.

Effective organizations

• Maintain a close “fit” with changing conditions

• Transform inputs to outputs efficiently and flexibly

Foundation for the other three organizational effectiveness


perspectives
OPEN SYSTEMS PERSPECTIVE (2 OF 2)
External
subsystem
Environment
Accounting
Technological subsystem
subsystem
•Raw materials • Products/services
•Human resources Engineering
subsystem
• Shareholder
•Information Transforming inputs to outputs
Marketing dividends
Managerial /Sales
•Finances subsystem subsystem
• Community support
•Equipment • Waste/pollution
Production
subsystem

Feedback Feedback
ORGANIZATIONAL LEARNING PERSPECTIVE

An organization’s capacity to acquire, share, use, and store


valuable knowledge.

Consider both stock and flow of knowledge

• Stock: intellectual capital

• Flow: processes of acquiring, sharing, using, and storing

knowledge

Source: Hootsuite/Flickr/CC BY 2.0


INTELLECTUAL CAPITAL

Human Knowledge that people


Capital possess and generate

Structural Knowledge captured in


Capital systems and structures

Relationship Value derived from satisfied customers,


Capital reliable suppliers, etc.
ORGANIZATIONAL LEARNING PROCESSES

Storing Knowledge Acquiring Knowledge


 Keeping knowledgeable employees  Learning (external)
 Documentation  Environmental scanning
 Knowledge transfer  Hiring/grafting
 Experimenting

Using Knowledge Sharing Knowledge


 Sense making (locating knowledge)  Communicating
 Prerequisite knowledge/skills  Learning (internal)
 Autonomy to apply knowledge  Information systems
 Learning orientation culture
HIGH-PERFORMANCE WORK PRACTICES
Workplace practices that enhance human capital

Most cited HPWPs (best when bundled together)


1. Employee involvement
2. Job autonomy
3. Competence development (hire, training)
4. Performance-/skill-based rewards

How HPWPs improve effectiveness:


• develop employee skills and knowledge

• adapting better to rapidly changing environments

• better motivation and attitudes toward the employer


STAKEHOLDER PERSPECTIVE

• It focuses on the organisation’s relationships with stakeholders.

• Stakeholders include organisations, groups and other entities that


affect or are affected by the company’s objectives and actions.

• This perspective states that organisations are more effective when they
understand, manage and satisfy stakeholders needs and expectations.

• In addition to open system perspective, stakeholders perspective


incorporates
 Values

 Ethics

 Corporate social responsibility (CSR)


STAKEHOLDERS: VALUES AND ETHICS

Personal values influence how corporate boards and CEOs


allocate organizational resources

Values

• Stable, evaluative beliefs, guide preferences for outcomes or

courses of action in various situations

Ethics

• Moral principles/values, determine whether actions are

right/wrong and outcomes are good or bad


STAKEHOLDERS AND CSR
Stakeholder perspective includes corporate social responsibility
(CSR)

• Benefit society and environment beyond the firm’s immediate

financial interests or legal obligations

• Organization’s contract with society

Triple bottom line

• Economy, society, environment


INTEGRATIVE MODEL OF OB
CRITICAL THINKING QUESTIONS
 A friend suggests that organizational behaviour courses are useful only
to people who will enter management careers. Discuss the accuracy of
your friend’s statement.
 A young college or university student from India is interested in doing
international business across Canada, China, Brazil, and Russia. Discuss
how the knowledge of OB can be useful to the student.
 Look through the list of chapters in this textbook, and discuss how
globalization could influence each organizational behaviour topic.
 Teams
 Values
 Employee motivation
 Communication
 Interpersonal conflict
 Perception
 Stress
VOCABULARY BUILDING
Word Meaning
1 Corporate social A perspective that holds that organizations depend on the
responsibility external environment for resources

2 Open systems A moral principles or values that determine whether actions are
right or wrong
3 Stakeholders The degree to which a person minimizes conflict between work
and non-work demands
4 Organizational A company’s stock of knowledge, including human capital,
behaviour (OB) structural capital and relationship capital

5 Organizations Groups of people who work interdependently toward some


purpose
6 Ethics Organizational activities intended to benefit society and the
environment
7 Work-life balance The stock of knowledge, skills, and abilities among employees

8 Human capital The study of what people think, feel, and do in and around
organizations
9 Structural capital Individuals, organizations, or other entities who affect, or are
affected by, the organization’s objectives and actions
10 Intellectual capital Knowledge embedded in an organization’s systems and
structures
THANK YOU

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