Organizational Behavior and Management

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Chapter 1 / Slide 1
Chapter 1
Organizational
Behaviour and
Management

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Learning Objectives
1. Define organizations and describe their basic
characteristics.
2. Explain the concept of organizational
behaviour and describe the goals of the
field.
3. Define management and describe what
managers do to accomplish goals.
4. Contrast the classical viewpoint of
management with that which the human
relations movement advocated.

3. Learning Objectives (continued)
5. Describe the contemporary contingency
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approach to management.
6. Explain what managers do – their roles,
activities, agendas for action, and thought
processes.
7. Describe the societal and global trends that
are shaping contemporary management
concerns.

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What Are Organizations?
• Social inventions for accomplishing common
goals through group effort.
• Social inventions: The coordinated presence
of people.
• The field of organizational behaviour is
about understanding people and managing
them to work effectively.

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What Are Organizations?
(continued)
• Goal Accomplishment: Organizational
survival and adaptation to change are
important goals.
• The field of organizational behaviour is
concerned with how organizations can
survive and adapt to change.

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What Are Organizations?
(continued)
• Group Effort: Interaction and coordination
among people to accomplish goals.
• The field of organizational behaviour is
concerned with how to get people to
practise effective teamwork.

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What Is Organizational
Behaviour?
• The attitudes and behaviours of individuals
and groups in organizations.
• How organizations can be structured more
effectively.
• How events in the external environment
affect organizations.

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Why Study Organizational
Behaviour?
• Organizational behaviour is interesting. It is
about people and human nature.
• Organizational behaviour is important to
managers, employees, and consumers.

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Why Study Organizational
Behaviour? (continued)
• Organizational behaviour makes a difference.
• Organizational behaviour affects individuals’
attitudes and behaviour as well as the
competitiveness and effectiveness of
organizations.

10. How Much Do You Know About
Organizational Behaviour?
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• Consider whether the following
statements are true or false:
1. Effective leaders tend to possess identical
personality traits.
2. Nearly all workers prefer stimulating,
challenging jobs.

11. How Much Do You Know About
Organizational Behaviour?
(continued)
3. Managers have a very accurate idea about
how much their peers and superiors are paid.
4. Workers have a very accurate idea about
how often they are absent from work.
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5. Pay is the best way to motivate most
employees and improve job performance.

12. How Much Do You Know About
Organizational Behaviour?
(continued)
• People are very good at giving sensible
reasons why the same statement is either
true or false.
• Common sense develops through unsystematic
and incomplete experiences with
organizational behaviour.
• Management practice should be based on
informed opinion and systematic study.
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Goals of Organizational
Behaviour
• Predicting organizational behaviour and
events.
• Explaining organizational behaviour and
events in organizations.
• Managing organizational behaviour.

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Management
• Management is the art of getting things
accomplished in organizations through others.
• Prediction and explanation involves analysis
while management is about action.

15. Early Prescriptions Concerning
Management
• Attempts to prescribe the “correct” way to
manage an organization and achieve its goals:
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– Classical view and bureacuracy
– Human relations view

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The Classical View
• The classical view advocates a high degree of
specialization of labour and coordination and
centralized decision making.

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Scientific Management
• Scientific management is Frederick’s Taylor’s
system for using research to determine the
optimum degree of specialization and
standardization of work tasks.

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Bureaucracy
• Bureaucracy is Max Weber’s ideal type of
organization that includes:
– Strict chain of command
– Selection and promotion criteria based on
technical competence
– Detailed rules, regulations, and procedures
– High specialization
– Centralization of power at the top of the
organization

19. The Human Relations Movement
and a Critique of Bureaucracy
• The human relations movement began with
the famous Hawthorne Studies of the 1920s
and 1930s conducted at the Hawthorne plant
of Western Electric.
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The Hawthorne Studies
• Concerned with the impact of fatigue, rest
pauses, and lighting on employee
productivity.
• The studies illustrated how psychological and
social processes affect productivity and work
adjustment.
• Suggested there could be dysfunctional
aspects to how work was organized.

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Critique of Bureaucracy
• The human relations movement called
attention to certain dysfunctional aspects of
classical management and bureaucracy:
– Employee alienation
– Limits innovation and adaptation
– Resistance to change
– Minimum acceptable level of performance
– Employees lose sight of the overall goals of the
organization

22. The Human Relations Movement
• Advocated more people-oriented and
participative styles of management that
catered more to the social and psychological
needs of employees.
• The movement called for:
– more flexible systems of management
– the design of more interesting jobs
– open communication
– employee participation in decision making
– less rigid, more decentralized forms of control
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23. Contemporary Management –
The Contingency Approach
• The general answer to many of the problems
in organizations is: “It depends.”
• Dependencies are called contingencies.
• The contingency approach to management
recognizes that there is no one best way to
manage.
• An appropriate management styles depends
on the demands of the situation.
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What Do Managers Do?
• The field of organizational behaviour is
concerned with what managers actually do in
organizations.
• Research on what managers do has focused
on:
– Managerial roles
– Managerial activities
– Managerial agendas
– Managerial minds
– International managers

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Managerial Roles
• Henry Mintzberg discovered a rather complex
set of roles played by managers:
– Interpersonal roles
– Informational roles
– Decisional roles

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Interpersonal Roles
• Interpersonal roles have to do with
establishing and maintaining interpersonal
relations. They include:
– Figurehead role
– Leadership role
– Liaison role

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Informational Roles
• Informational roles are concerned with
various ways managers receive and transmit
information. They include:
– Monitor role
– Disseminator role
– Spokesperson role

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Decisional Roles
• Decisional roles deal with decision making.
They include:
– Entrepreneur role
– Disturbance handler role
– Resource allocation role
– Negotiator role

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Managerial Activities
• Fred Luthans, Richard Hodgetts, and Stuart
Rosenkrantz found that managers engage in
four basic types of activities:
– Routine communication (formal sending and
receiving information)
– Traditional management (planning, decision
making, controlling)

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Managerial Activities
(continued)
– Networking (interaction with people outside
of the organization)
– Human resource management (motivating,
reinforcing, disciplining, punishing, managing
conflict, staffing, training and developing
employees)

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Summary of Managerial
Activities

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Managerial Activities and
Success
• Emphasis on these various activities is related
to managerial success.
• Networking is related to moving up the ranks
of the organization quickly.
• Human resource management is related to
employee satisfaction and commitment and
unit effectiveness.

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Managerial Agendas
• John Kotter studied the behaviour patterns of
successful general managers and identified
the following categories of behaviour:
– Agenda setting
– Networking
– Agenda implementation

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Agenda Setting
• What they wanted to accomplish for the
organization.
• Almost always informal and unwritten and
concerned with people issues.

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Networking
• Established a wide formal and informal
network of key people inside and outside of
the organization.
• The network provides managers with
information and established cooperative
relationships relevant to their agendas.

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Agenda Implementation
• Managers used networks to implement the
agendas.
• They employed a wide range of influence
tactics.

37. Managerial Agendas (continued)
• A high degree of informal interaction and
concern with people issues that were
necessary for the managers to achieve their
agendas.
• Managers often found themselves dependent
on people over whom they wielded no power.
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Managerial Minds
• Herbert Simon and Daniel Isenberg explored
how manager’s think.
• Experienced managers use intuition to guide
many of their actions:
– To sense that a problem exists
– To perform well-learned mental tasks rapidly
– To synthesize isolated pieces of information
and data
– To double-check more formal or mechanical
analyses

39. Managerial Minds (continued)
• Good intuition is problem identification and
problem solving based on a long history of
systematic education and experience.
• Enables the manager to locate problems
within a network of previously acquired
information.
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International Managers
• The style in which managers do what they do
and the emphasis they give to various
activities will vary greatly across cultures.
• Cultural variations in values affect both
managers’ and employees’ expectations
about interpersonal interaction.

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International Managers
(continued)
• National culture is one of the most important
contingency variables in organizational
behaviour.
• The appropriateness of various leadership
styles, motivation techniques, and
communication methods depends on where
one is in the world.

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Some Contemporary
Management Concerns
• Five issues with which organizations and
managers are currently concerned:
– Diversity – Local and Global
– Employee-Organization Relationships
– A Focus on Quality, Speed, and Flexibility
– Talent Management
– Corporate Social Responsibility (CSR)

43. Diversity – Local and Global
• The Canadian workforce is becoming
increasingly diverse.
• Many organizations have not treated certain
segments of the population fairly in many
aspects of employment.
• Global business has increased and so has the
need to understand how workers and
customers in other countries are diverse and
culturally different.
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Diversity – Local and Global
(continued)
• Organizational behaviour is concerned with
issues that have to do with the management
of a diverse workforce and how to benefit
from the opportunities that a diverse
workforce provides.

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Employee-Organization
Relationships
• Downsizing, restructuring, re-engineering,
and outsourcing have had a profound effect
on organizations.
• Major structural change in work arrangements
(e.g., part-time, temporary, contract work).
• Changes in the workplace have changed the
nature of employee-organization
relationships.

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Employee-Organization
Relationships (continued)
• The consequences of these changes:
– Decreased trust
– Lower morale and loyalty
– Decline in job satisfaction and organizational
commitment
– Low levels of employee engagement
– Increase in work-related illness and stress
– Absenteeism is on the rise

47. Work-Life Conflict in Canadian
Organizations
• A significant number of Canadian employees
report:
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– High levels of role overload
– Negative spillover from work to family
– High levels of stress
– High levels of burnout
– Highly depressed mood
– High levels of absenteeism

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Employee-Organization
Relationships (continued)
• Organizational behaviour offers many
solutions to these problems and for building
and maintaining strong and positive
employee-organization relationships.

49. A Focus on Quality, Speed, and
Flexibility
• Intense competition has given rise to the
need for organizations to improve quality,
speed, and flexibility.
• This requires a high degree of employee
involvement, commitment, and teamwork.
• Organizational behaviour is concerned with
these issues.
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Talent Management
• Talent management refers to an
organization’s processes for attracting,
developing, retaining, and utilizing people
with the required skills to meet current and
future business needs.

51. Talent Management (continued)
• Two most important management challenges:
– Recruitment of high-quality people across
multiple territories
– Improving the appeal of the company culture
and work environment
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52. Talent Management (continued)
• Organizational behaviour can help companies
improve their recruitment and retention and
become an employer of choice.
• It provides the means for organizations to be
designed and managed in ways that optimize
talent attraction, development, retention,
and performance.
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53. Management Practices of the
Best Companies to Work for in
Canada
• Flexible work schedules
• Stock-options, profit-sharing, and bonuses
• Training and development programs
• Family assistance programs
• Career development programs
• Wellness and stress reduction programs
• Employee recognition and reward programs
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54. Corporate Social Responsibility
(CSR)
• CSR refers to an organization taking
responsibility for the impact of its decisions
and actions on its stakeholders.
• It extends beyond the interests of
shareholders to the interests and needs of
employees and the community in which it
operates.
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55. Corporate Social Responsibility
(CSR) (continued)
• Many CSR issues have to do with
organizational behaviour (e.g., work-family
balance, employee well-being).
• CSR and has implications for the recruitment
and retention of employees as well as
employee attitudes, motivation, and firm
performance – issues that are associated with
organizational behaviour.
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