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Organizational Behaviour: Concepts, Controversies, Applications

Eighth Canadian Edition

Chapter 1

What Is Organizational Behaviour?

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Chapter Outline (1 of 4)

The Importance of Interpersonal Skills

Using OB to create great places to work

Succeeding in the workplace takes people skills

Defining Organizational Behaviour

What Do We Mean by Organization?

OB Is for Everyone

The Importance of Interpersonal skills

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Material pertinent to this discussion is found under “Snapshot Summary” at the end of the chapter.

Chapter Outline (2 of 4)

Intuition with Systematic Study

Big Data

Disciplines That Contribute to the OB Field

The Building Blocks of OB

The Rigour of OB

OB has few Absolutes

OB Takes a Contingency Approach

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Material pertinent to this discussion is found under “Snapshot Summary” at the end of the chapter.

Chapter Outline (3 of 4)

Challenges and Opportunities in the Canadian Workplace

Responding to Economic Pressures

Responding to Globalization

Understanding Workforce Diversity

Improving Customer Service

Improving People Skills

Working in Networked Organizations

Enhancing Employee Well-Being at Work

Creating a Positive Work Environment

Improving Ethical Behaviour

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Material pertinent to this discussion is found under “Snapshot Summary” at the end of the chapter.

Chapter Outline (4 of 4)

Coming Attractions: Developing an OB Model

An Overview

Inputs

Processes

Outcomes

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Material pertinent to this discussion is found under “Snapshot Summary” at the end of the chapter.

Learning Outcomes (1 of 2)

Demonstrate the importance of interpersonal skills in the workplace.

Define organizational behaviour (OB).

Understand the value of systematic study to OB.

Identify the major behavioural science disciplines that contribute to OB.

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Material pertinent to this discussion is found at the beginning of the chapter.

Learning Outcomes (2 of 2)

Demonstrate why few absolutes apply to OB.

Identify workplace challenges that provide opportunities to apply OB concepts.

Describe the three levels of analysis in this book’s OB model.

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Material pertinent to this discussion is found at the beginning of the chapter.

The Importance of Interpersonal Skills

Recognition of the importance of developing interpersonal skills is closely tied to the need for organizations to get and keep high-performing employees.

Creating a pleasant workplace makes good economic sense.

Wages and benefits are not the main reasons people like their jobs or stay with an employer. Social relationships among co-workers and supervisors are strongly related to overall job satisfaction.

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LO1; Material pertinent to this discussion is found under “Demonstrating the importance of OB.”

A recent survey of hundreds of workplaces, and over 200 000 respondents, showed that the social relationships among co-workers and supervisors were strongly related to overall job satisfaction. Positive social relationships also were associated with lower stress at work and lower intentions to quit. So, having managers with good interpersonal skills is likely to make the workplace more pleasant, which in turn makes it easier to hire and keep qualified people.

Defining Organizational Behaviour

A field of study that looks at the impact that individuals, groups, and structure have on behaviour within organizations

Its aim is to apply such knowledge toward improving organizational effectiveness

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LO2; Material pertinent to this discussion is found under “Defining Organizational Behaviour.”

What Do We Mean by Organization?

A consciously coordinated social unit:

composed of a group of people

functioning on a relatively continuous basis

to achieve a common goal or set of goals

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LO2; Material pertinent to this discussion is found under “Defining Organizational Behaviour.”

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.

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 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 by managers who 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.

OB Is for Everyone

Organizational Behaviour (OB) is relevant anywhere:

people come together and share experiences,

work on goals,

or meet to solve problems.

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LO2; Material pertinent to this discussion is found under “Defining Organizational Behaviour.”

Intuition and Systematic Study (1 of 2)

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 and unwritten) in almost every setting.

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LO3; Material pertinent to this discussion is found under “OB: Making Sense of Behaviour in Organizations.”

Intuition and Systematic Study (2 of 2)

Evidence-based management (EBM)

Complements systematic study

Bases managerial decisions on the best available scientific evidence

Vast majority of management decisions are still made “on the fly,” with little or no systematic study of available evidence

Many managers hold “common sense” opinions regarding effective management that have been flatly refuted by empirical evidence

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LO5; Material pertinent to this discussion is found under “OB: Making Sense of Behaviour in Organizations.”

The Building Blocks of OB

Psychology

Social Psychology

Sociology

Anthropology

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LO4; Note: Exhibit 1-1 is on the next slide. You may wish to use this slide just to introduce the discipline areas, and use the next slide (the visual representation) to discuss in more detail.

Material pertinent to this discussion is found under “OB: Making Sense of Behaviour in Organizations.”

Psychology is the science that seeks to measure, explain, and sometimes change the behaviour of humans and other animals.

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.

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.

Anthropology is the study of societies to learn about human beings and their activities. Anthropologists’ work on cultures and environments has helped us understand differences in fundamental values, attitudes, and behaviour between people in different countries and within different organizations.

Towards an OB Discipline

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LO4; This Exhibits provides a visual representation of the contributions of various behavioural science disciplines on the study of OB. Use as speaking notes to provide a macro level view of the OB discipline.

The Rigour of OB

OB Looks at Consistencies

What is common about behaviour, and helps predictability?

OB Looks Beyond Common Sense

Systematic study, based on scientific evidence

OB Has Few Absolutes

Few, if any, simple and universal principles that explain OB

Evidence -based management (EBM)

OB Takes a Contingency Approach

Considers behaviour in context

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LO2-LO5; Overview Slide – Please note that there are separate slides coming next as more detailed speaking notes for each of the areas listed on this slide.

Material pertinent to this discussion is found under “Understanding the Value of Systematic Study of OB.”

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?

OB Looks at Consistencies

What is common about behaviour, and helps predictability?

Certainly there are differences among individuals.

Placed in similar situations, all people don’t act exactly alike.

However, there are certain fundamental consistencies underlying the behaviour of all individuals.

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LO5; Material pertinent to this discussion is found under “OB: Making Sense of Behaviour in Organizations.”

OB Has Few Absolutes

There are few simple and universal principles that explain organizational behaviour.

Human beings are very complex.

Humans are not alike, which limits the ability to make simple, accurate, and sweeping generalizations.

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LO5; Material pertinent to this discussion is found under “OB has few absolutes.”

OB Takes a Contingency Approach

Contingency approach: Considers behaviour within the context in which it occurs.

Depends on the situation

People are complex and complicated, so theories developed to explain their actions must also consider the context or situation

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LO5; Material pertinent to this discussion is found “OB has few absolutes.”

OB concepts must reflect situational or contingency conditions, and hence predictions about human behaviour are at best probabilistic, not absolute. That is, X is likely to lead to Y, but only under conditions specified in Z (the contingency variables).

Challenges and Opportunities

Dramatic changes in organizations

Understanding OB has never been more important for managers

Change has resulted in new employment options being offered or requested by employees

May depend on career timing or preferences

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

Responding to Economic Pressures (1 of 2)

OB approaches may differ between good and bad times

In good times, focus is on rewards, satisfaction, and retention of employees

In bad times, issues such as stress, decision making and coping are important

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

Responding to Economic Pressures (2 of 2)

When the US Economy entered into a recession in 2008, most other economies worldwide followed

When times are bad, managers are on the front lines with employees who

may be terminated

may be asked to make do with less

worry about their future

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

Continuing Globalizaton

In recent years, Canadian businesses have faced tough competition from the United States, Europe, Japan, and China, as well as from other companies within our borders.

To survive, they have had to reduce costs, increase productivity, and improve quality.

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

Continuing to Globalizaton (1 of 2)

Some employers have outsourced jobs to other countries where labour costs are lower to remain profitable.

National borders no longer protect most firms from foreign competitive pressures.

Trading blocks (e.g., NAFTA and EU) reduce tariffs and barriers to trade

Internet has also enabled companies to become more globally connected

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

Continuing to Globalizaton (2 of 2)

Managers and employees must become capable of working with people from different cultures:

Multinational corporations are developing operations worldwide.

Companies are developing joint ventures with foreign partners.

Workers are pursuing job opportunities across national borders.

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

Understanding Workforce Diversity (1 of 2)

Workforce Diversity – recognizes the heterogeneous nature of employees in the workplace

Women and men

Many racial and ethnic groups

Individuals with a variety of physical or psychological abilities

People who differ in age, sexual orientation, and demographic characteristics

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

Understanding Workforce Diversity (2 of 2)

Diversity Challenge – mix of generations such as Baby Boomers, Generation X, and Millennial groups

Due to different life experiences, bring different values and expectations to the workplace

Employees don’t set aside their cultural values and lifestyle preferences when they go to work

Need to accommodate diverse groups of people by addressing their different lifestyles, family needs, and work styles

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

Customer Service

Majority of employees in developed countries work in service jobs (78 percent in Canada)

Substantial interaction with customers

OB can increase the success of these interactions by showing how employee attitudes and behaviour influence customer satisfaction

Management needs to create a customer-responsive culture

OB can provide guidance to help managers create such cultures – where employees are friendly, accessible , knowledgeable, and responsive, to please the customer

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

People Skills

OB provides many concepts and theories to help you explain and predict the behaviour of people at work

Goal is to gain insights into people skills that you can use on the job

Design motivating jobs

Improve your listening skills

Create more effective teams

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

Enhancing Employee Well-Being at Work

Employees are increasingly complaining that the lines between work and private life have blurred.

has led to more personal conflicts and stress.

Why?

Creation of global organizations; the world never sleeps

Communication technology; people bring work home

Organizations are asking employees to work longer hours

Organizations must help employees strike a balance or risk losing key employees and future candidates.

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

Social Media

Organizations struggle with employee use of social media

Employees have been fired for inappropriate tweeting

Recruitment practices can be influenced by social media

Access to social media throughout the day can influence employee mood and thus performance

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

Working in Networked Organizations

Allow people to communicate and work together even though they may be located elsewhere

Manager’s job is different in these organizations

Motivating and leading people, making collaborative decisions online requires different techniques

Managers and employees need to develop new skills

OB can provide insights to help with honing those skills

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

Creating a Positive Work Environment

Positive Organizational Scholarship

An area of OB research that focuses on how organizations develop human strength, foster vitality and resilience, and unlock potential.

This approach challenges researchers and companies to look at OB through a new lens.

Focus is placed on how to exploit employee strengths rather than dwelling on their limitations.

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

Improving Ethical Behaviour

Ethical Dilemmas and Ethical Choices

Required to identify right and wrong conduct

Pressured to cut corners, break rules, engage in other questionable practices

Ethics

The study of moral values or principles that guide our behaviour

Inform us whether actions are right or wrong

Help us “do the right thing”

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

Employment Options

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

Coming Attractions: Developing an OB Model

Overview

A model is a simplified representation of a real-world phenomenon

Proposes three types of variables (individual, group, organizational)

Proceeds from left to right

Inputs leading to processes; processes leading to outcomes

Outcomes can also influence inputs in the future

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LO6; Material pertinent to this discussion is found under “Challenges and Opportunities in the Canadian Workplace.”

A Basic OB Model (1 of 3)

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LO7; Material pertinent to this discussion is found under “Coming Attractions: Developing an OB Model”

A Basic OB Model (2 of 3)

Inputs are variables such as personality, group structure, and organizational culture that lead to processes

Often determined in advance of the employment relationship

Processes are actions that individuals, groups, and organizations engage in as a result of inputs that lead to certain outcomes

Individual level – emotions and moods, motivation, perception, decision making

Group level – communication, leadership, power and politics, conflict and negotiation

Organizational level – change practices

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LO7; Material pertinent to this discussion is found under “Coming Attractions: Developing an OB Model”

A Basic OB Model (3 of 3)

Outcomes are key variables that you want to explain or predict

Individual level – attitudes and stress, task performance, organizational citizenship behaviour, and withdrawal behaviour

Group level – group cohesion and functioning

Organizational level – overall productivity, profitability, and survival

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LO7; Material pertinent to this discussion is found under “Coming Attractions: Developing an OB Model”

Summary

OB investigates the impact that individuals, groups, and organizational structure have on behaviour within an organization.

OB applies that knowledge to make organizations work more effectively.

OB focuses on how to improve productivity, reduce absenteeism, turnover, and deviant workplace behaviour, and increase organizational citizenship behaviour and job satisfaction.

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This material is found at the end of the chapter.

OB at Work: For Review

What is organizational behaviour (OB)?

What is the importance of interpersonal skills in the workplace?

What are the major behavioural science disciplines that contribute to OB?

Why is systematic study of value to OB?

Why do few absolutes apply to OB?

What workplace challenges provide opportunities to apply OB concepts?

What are the three levels of analysis in this book’s OB model?

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This material is found at the end of the chapter.

Isn’t organizational behaviour common sense? Or just like psychology?

OB is built on contributions from a number of behavioural disciplines, including psychology, sociology, social psychology, and anthropology. It goes beyond “common sense.”

OB at Work: For Managers

Resist the inclination to rely on generalizations; some provide valid insights into human behaviour, but many are erroneous.

Use metrics and situational variables rather than “hunches” to explain cause-and-effect relationships.

Work on your interpersonal skills to increase your leadership potential.

Improve your technical skills and conceptual skills through training and staying current with organizational behaviour trends such as big data.

OB can improve your employees’ work quality and productivity by showing you how to empower your employees, design and implement change programs, improve customer service, and help your employees balance work-life conflicts.

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This material is found at the end of the chapter.

Breakout Group Exercises

Form small groups to discuss the following topics:

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?

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?

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.

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This material is found at the end of the chapter.

From Concept to Skills

This exercise asks you to consider the skills outlined in the “Competing Values Framework” on pages 32–35 to develop an understanding of managerial expertise. Steps 1–4 can be completed in 15–20 minutes.

Using the skills listed in the Competing Values Framework, identify the 4 skills that you think all managers should have.

Identify the 4 skills that you think are least important for managers to have.

In groups of 5–7, reach a consensus on the most-needed and least-needed skills identified in “Reinforcing Steps” on page 35, Steps 1 and 2.

Using Exhibit 1-7, determine whether your “ideal” managers would have trouble managing in some dimensions of organizational demands.

Your instructor will lead a general discussion of your results.

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This material is found at the end of the chapter.

Competing Values Framework (1 of 2)

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This material is found at the end of the chapter.

Competing Values Framework (2 of 2)

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 – or –

Controlling or stable, maintaining the status quo, and exhibiting less change

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This material is found at the end of the chapter.

Skills for Mastery in the New Workplace

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