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  1. 1. Chapter 1 What Is Organizational Behaviour?
  2. 2. Chapter 1 Outline <ul><li>Defining Organizational Behaviour </li></ul><ul><li>OB: Making Sense of Behaviour in Organizations </li></ul><ul><li>How Will Knowing OB Make a Difference? </li></ul><ul><li>Today’s Challenges in the Canadian Workplace </li></ul>
  3. 3. What Is Organizational Behaviour? <ul><li>What is organizational behaviour? </li></ul><ul><li>Isn’t organizational behaviour common sense? Or just like psychology? </li></ul><ul><li>How does knowing about organizational behaviour make work and life more understandable ? </li></ul><ul><li>What challenges do managers and employees face in the workplace of the twenty-first century? </li></ul>
  4. 4. Organizational Behaviour <ul><li>A field of study that investigates the impact of individuals, groups, and structure on behaviour within organizations; the aim is to apply such knowledge toward improving organizational effectiveness. </li></ul>
  5. 5. Why Do We Study OB? <ul><li>To learn about yourself and others </li></ul><ul><li>To understand how the many organizations you encounter work. </li></ul><ul><li>To become familiar with team work </li></ul><ul><li>To help you think about the people issues faced by managers and entrepreneurs </li></ul>
  6. 6. What Is an Organization? <ul><li>A consciously coordinated social unit: </li></ul><ul><ul><li>composed of a group of people </li></ul></ul><ul><ul><li>functioning on a relatively continuous basis </li></ul></ul><ul><ul><li>to achieve a common goal or set of goals. </li></ul></ul>
  7. 7. The Building Blocks of OB <ul><li>Psychology </li></ul><ul><li>Sociology </li></ul><ul><li>Social Psychology </li></ul><ul><li>Anthropology </li></ul><ul><li>Political Science </li></ul>
  8. 8. Exhibit 1-1 Toward an OB Discipline
  9. 9. The Rigour of OB <ul><li>OB Looks at Consistencies </li></ul><ul><ul><li>What is common about behaviour, and helps predictability? </li></ul></ul><ul><li>OB Looks Beyond Common Sense </li></ul><ul><ul><li>Systematic study, based on scientific evidence </li></ul></ul><ul><li>OB Has Few Absolutes </li></ul><ul><li>OB Takes a Contingency Approach </li></ul><ul><ul><li>Considers behaviour in context </li></ul></ul>
  10. 10. Exhibit 1-2 Research Methods in OB Source: J. R. Schermerhorn, J.G. Hunt, and R. N. Osborn, Organizational Behaviour , 9 th Edition, 2005, p. 4. Copyright © 2005 John Wiley & Sons, Inc. Reprinted with the permission of John Wiley & Sons, Inc.
  11. 11. How Will Knowing OB Make a Difference? <ul><li>For Managers </li></ul><ul><ul><li>Knowing organizational behaviour can help you manage well and makes for better corporations. </li></ul></ul><ul><ul><li>Managing people well leads to greater organizational commitment. </li></ul></ul><ul><ul><li>Finally, managing well may improve organizational citizenship. </li></ul></ul>
  12. 12. How Will Knowing OB Make a Difference? <ul><li>For Individuals </li></ul><ul><ul><li>What if I’m not going to work in a large organization? </li></ul></ul><ul><ul><ul><li>The theories generally apply to organizations of any size. </li></ul></ul></ul><ul><ul><li>What if I don’t want to be a manager? </li></ul></ul><ul><ul><ul><li>To some extent, the roles of managers and employees are becoming blurred in many organizations. </li></ul></ul></ul><ul><ul><ul><li>While self-employed individuals often do not act as managers, they certainly interact with other individuals and organizations as part of their work. </li></ul></ul></ul>
  13. 13. Bottom Line: OB Is For Everyone <ul><li>Organizational behaviour is not just for managers. </li></ul><ul><ul><li>The roles of managers and employees are becoming blurred in many organizations. </li></ul></ul><ul><ul><li>Managers are increasingly asking employees to share in their decision-making processes rather than simply follow orders. </li></ul></ul><ul><li>OB applies equally well to all situations in which you interact with others: on the basketball court, at the grocery store, in school, or in church. </li></ul>
  14. 14. Exhibit 1-4 Basic OB Model Organization systems level Group level Individual level
  15. 15. Today’s Challenges in the Canadian Workplace <ul><li>Challenges at the Individual Level </li></ul><ul><ul><li>Individual Differences </li></ul></ul><ul><ul><li>Job Satisfaction </li></ul></ul><ul><ul><li>Motivation </li></ul></ul><ul><ul><li>Empowerment </li></ul></ul><ul><ul><li>Behaving Ethically </li></ul></ul>
  16. 16. Today’s Challenges in the Canadian Workplace <ul><li>Challenges at the Group Level </li></ul><ul><ul><li>Working With Others </li></ul></ul><ul><ul><li>Workforce Diversity </li></ul></ul>
  17. 17. Today’s Challenges in the Canadian Workplace <ul><li>Challenges at the Organizational Level </li></ul><ul><ul><li>Productivity </li></ul></ul><ul><ul><li>Developing Effective Employees </li></ul></ul><ul><ul><li>Putting People First </li></ul></ul><ul><ul><li>Global Competition </li></ul></ul><ul><ul><li>Managing and Working in a Multicultural World </li></ul></ul>
  18. 18. Today’s Challenges in the Canadian Workplace <ul><li>Challenges at the Organizational Level </li></ul><ul><ul><li>Productivity </li></ul></ul><ul><ul><ul><li>A performance measure including effectiveness and efficiency. </li></ul></ul></ul><ul><ul><li>Effectiveness </li></ul></ul><ul><ul><ul><li>The achievement of goals. </li></ul></ul></ul><ul><ul><li>Efficiency </li></ul></ul><ul><ul><ul><li>The ratio of effective work output to the input required to produce the work. </li></ul></ul></ul>
  19. 19. Developing Effective Employees <ul><li>Organizational Citizenship Behaviour (OCB) </li></ul><ul><ul><li>Discretionary behaviour that is not part of an employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization. </li></ul></ul>
  20. 20. Putting People First <ul><li>Putting people first generates a committed workforce and positively affects the bottom line. </li></ul><ul><li>People will work harder when they feel they have “more control and say in their work.” </li></ul>
  21. 21. How to Put People First <ul><li>Provide employment security. </li></ul><ul><li>Hire well. </li></ul><ul><li>Create self-managed teams. </li></ul><ul><li>Pay well. </li></ul><ul><li>Provide extensive training. </li></ul><ul><li>Reduce status differences. </li></ul><ul><li>Share information about organizational performance. </li></ul>
  22. 22. Global Competition <ul><li>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. </li></ul><ul><li>To survive, they have had to reduce costs, increase productivity, and improve quality. </li></ul>
  23. 23. Managing and Working in a Multicultural World <ul><li>Managers and employees must become capable of working with people from different cultures: </li></ul><ul><ul><li>Multinational corporations are developing operations worldwide. </li></ul></ul><ul><ul><li>Companies are developing joint ventures with foreign partners. </li></ul></ul><ul><ul><li>Workers are pursuing job opportunities across national borders. </li></ul></ul>
  24. 24. Summary and Implications <ul><li>1. What is organizational behaviour? </li></ul><ul><ul><li>OB is a field of study that investigates the impact that individuals, groups, and structure have on behaviour within an organization. </li></ul></ul><ul><li>2. Isn’t organizational behaviour common sense? Or just like psychology? </li></ul><ul><ul><li>OB is built on contributions from a number of behavioural disciplines, including psychology, sociology, social psychology, anthropology, and political science. It goes beyond “common sense.” </li></ul></ul>
  25. 25. Summary and Implications <ul><li>How does knowing about organizational behaviour make work and life more understandable? </li></ul><ul><ul><li>OB helps people manage well, and managing well can lead to greater organizational commitment by employees. </li></ul></ul><ul><li>4. What challenges do managers and employees face in today’s workplace? </li></ul><ul><ul><li>Each level of analysis—the individual, the group, and the organization—presents challenges. </li></ul></ul>
  26. 26. OB at Work
  27. 27. For Review <ul><li>Define organizational behaviour. </li></ul><ul><li>What is an organization? Is the family unit an organization? Explain. </li></ul><ul><li>“ Behaviour is generally predictable, so there is no need to formally study OB.” Do you agree or disagree with this statement? Why? </li></ul><ul><li>What does it mean to say that OB takes a contingency approach in its analysis of behaviour? </li></ul><ul><li>What are the three levels of analysis in our OB model? Are they related? If so, how? </li></ul><ul><li>What are some of the challenges and opportunities that managers face in today’s workplace ? </li></ul><ul><li>Why is job satisfaction an important consideration for OB? </li></ul><ul><li>What are effectiveness and efficiency, and how are they related to OB ? </li></ul>
  28. 28. For Critical Thinking <ul><li>“ OB is for everyone.” Build an argument to support this statement. </li></ul><ul><li>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? </li></ul><ul><li>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? </li></ul><ul><li>Can empowerment lead to greater job satisfaction? </li></ul>
  29. 29. Learning About Yourself Exercise <ul><li>1. Taking initiative </li></ul><ul><li>2. Goal setting </li></ul><ul><li>3. Delegating effectively </li></ul><ul><li>4. Personal productivity and motivation </li></ul><ul><li>5. Motivating others </li></ul><ul><li>6. Time and stress management </li></ul><ul><li>7. Planning </li></ul><ul><li>8. Organizing </li></ul><ul><li>9. Controlling </li></ul><ul><li>10. Receiving and organizing information </li></ul><ul><li>11. Evaluating routine information </li></ul><ul><li>12. Responding to routine information </li></ul><ul><li>13. Understanding yourself and others </li></ul><ul><li>14. Interpersonal communication </li></ul><ul><li>15. Developing subordinates </li></ul><ul><li>16. Team building </li></ul><ul><li>17. Participative decision making </li></ul><ul><li>18. Conflict management </li></ul><ul><li>19. Living with change </li></ul><ul><li>20. Creative thinking </li></ul><ul><li>21. Managing change </li></ul><ul><li>22. Building and maintaining a power base </li></ul><ul><li>23. Negotiating agreement and commitment </li></ul><ul><li>24. Negotiating and selling ideas </li></ul>
  30. 30. Learning About Yourself <ul><li>Scoring Key </li></ul><ul><li>Director: 1, 2, 3 Mentor: 13, 14, 15 </li></ul><ul><li>Producer: 4, 5, 6 Facilitator: 16, 17, 18 </li></ul><ul><li>Coordinator: 7, 8, 9 Innovator: 19, 20, 21 </li></ul><ul><li>Monitor: 10, 11, 12 Broker: 22, 23, 24 </li></ul>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.
  31. 31. Breakout Group Exercises <ul><li>Form small groups to discuss the following topics: </li></ul><ul><li>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? </li></ul><ul><li>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? </li></ul><ul><li>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 . </li></ul>
  32. 32. Working With Others Exercise <ul><li>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. </li></ul><ul><li>1. Using the skills listed in “Learning About Yourself,” identify the 4 skills that you think all managers should have. </li></ul><ul><li>2. Identify the 4 skills that you think are least important for managers to have. </li></ul><ul><li>3. In groups of 5–7, reach a consensus on the most-needed and least-needed skills identified in Steps 1 and 2. </li></ul><ul><li>4. Using Exhibit 1- 6 , determine whether your “ideal” managers would have trouble managing in some dimensions of organizational demands. </li></ul>
  33. 33. Exhibit 1-5 Competing Values Framework Source: Adapted from K. Cameron and R. E. Quinn, Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework (Reading, MA: Addison Wesley Longman, 1999). Flexibility Control Internal Focus External Focus
  34. 34. Competing Values Framework <ul><li>Internal-External Dimension </li></ul><ul><ul><li>Inwardly, toward employee needs and concerns and/or production processes and internal systems </li></ul></ul><ul><ul><li>or </li></ul></ul><ul><ul><li>Outwardly, toward such factors as the marketplace, government regulations, and the changing social, environmental, and technological conditions of the future </li></ul></ul><ul><li>Flexibility-Control Dimension </li></ul><ul><ul><li>Flexible and dynamic, allowing more teamwork and participation; seeking new opportunities for products and services </li></ul></ul><ul><ul><li>or </li></ul></ul><ul><ul><li>Controlling or stable, maintaining the status quo and exhibiting less change </li></ul></ul>
  35. 35. Exhibit 1-6 Skills for Mastery in the New Workplace Source : R.E. Quinn. Beyond Rational Management. San Francisco: Jossey-Bass Inc., 1988, p. 86. Flexibility Internal External Control Mentor Innovator 1. Understanding yourself and others 2. Interpersonal communication 3. Developing subordinates 1. Team building 2. Participative decision making 3. Conflict management 1. Receiving and organizing information 2. Evaluating routine information 3. Responding to routine information 1. Planning 2. Organizing 3. Controlling 1. Taking initiative 2. Goal setting 3. Delegating effectively 1. Personal productivity and motivation 2. Motivating others 3. Time and stress management 1. Building and maintaining a power base 2. Negotiating agreement and commitment 3. Negotiating and selling ideas 1. Living with change 2. Creative thinking 3. Managing change Facilitator Monitor Director Producer Broker Coordinator
  36. 36. Supplemental Material Slides for activities I do in my own classroom
  37. 37. Exercise <ul><li>In groups of 6 </li></ul><ul><ul><li>Introduce yourselves. </li></ul></ul><ul><ul><li>Pick an interviewer. </li></ul></ul><ul><ul><li>Decide on questions or topics you want interviewer to ask me. </li></ul></ul><ul><li>The interview </li></ul><ul><ul><li>Introduce interviewer to me and the class. </li></ul></ul><ul><ul><li>Ask one question from your list (we will go around the groups with one question at a time). </li></ul></ul>