Fundamentals of Organizational Behavior

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1 Fundamentals of Organizational Behavior Chapter 1 What is organizational Behavior Defining organizational behavior Field that studies how individuals, groups, and structure affect behavior within organizations o Attitudes o Actions o Performance OB is for everyone Many employees have informal leadership roles o Employee/manger role lines have been blurred For entrepreneurs and the self-employed are not managers by they interact with others as part of their job o OB is relevant outside of the workplace OB applies equally as well to all situations in which you interact with others What do we mean by Organization Definition of Organization: Consciously coordinated social unit made up of a group of people who work towards a common goal on a relatively continuous basis o Not just large corporations, also includes churches, non-profits, startups, etc. (even universities and government agencies) The Building blocks of OB Possible scientific discipline with careful research to test and evaluate theories Applied behavioral science built upon a number of behavioral disciplines The Rigor of OB OB provides a systematic approach to the study of behaviors in organizations, groups and teams. Underlying the systematic approach is the belief that behavior is not random this research studies are conducted and are the basis of all claims made in this TB OB Looks at Consistencies Since individuals are different, placed in the same situation not

2 everyone will act the same. HOWEVER there are certain identifiable fundamental consistencies that can be identified in most individuals and modified to reflect their differences o Allow for predictability Less obvious: there are written rules OR unwritten rules for almost every situation - much easier to make predictions (not 100% accuracy) o IE turning around in an elevator A major foundation of this textbook: behavior is generally predictable OB Looks Beyond Common Sense Definition of Systematic Study: the examination of behavior in order to draw conclusions, based on scientific evidence about causes and effects in relationships Systematic study results do not mean that common sense conclusions are wrong. They actually typically are able to support common sense with solid research findings o Similarly OB will also debunk some items that we thought were common sense (IE everything that will be taught in this course) Notice common sense answers will differ from person to person o This is why there are problems that occur in the workplace, since different people have different common sense views about how a good employee acts or a good manager behaves OB Has few Absolutes There are few if any simple and universal principles that explain OB o Humans are complex We are not alike and therefore limits our ability to make simple accurate and sweeping generalizations OB takes a Contingency approach Although individuals behave different, we can of course make reasonable accurate explanations of human behaviors or valid predictions Define Contingency approach: an approach taken by OB that considers behavior within the context in which it occurs How will Knowing OB Make a Difference? In the workplace Evidence indicates that managing people well makes for better corporations overall Report on Business magazine s survey identifies the main traits of best-loved companies: 1. Show appreciation for their employees

3 2. Coach employees to help them move up the organization 3. Have good leaders who present the corporate strategy clearly and consistently Bottom line, managing people well pays off Define organizational commitment: The degree to which an employee identifies with the organization and wishes to remain with the organization Define affective commitment: The strength of an individual s emotional attachment to, identification with, and involvement in the organization One benefit of having committed employees is that they are less resistant to change when organizations need to carry out changes For you as an individual OB is useful for individuals and teams since you will need to make decisions and therefore will need to know how to communicate well with each other OB helps you better understand how organizations work OB gives us insight how to work with others and how to prepare to become employees in the 21 st century work place Today s Challenges in the Canadian workplace Organizations are made of levels and each level contributes to each other o Levels are also constructed on each other o When one level has challenges those challenges can affect the levels above/below it Challenges at the Individual Level Individuals need to get along despite differences in regard to personality, perception, values, attitudes, etc. Now more than ever organizations expect employees to be empowered and take on more responsibility o This puts a demand on both employees and managers Perhaps the greatest challenge facing individuals is how to behave ethically Individual Differences People have characteristics intact when they enter a group or organization that will influence their behavior in the company and there is little that the organization can to alter them Job satisfaction Less than half of Canadian employees are satisfied with their jobs Society should be concerned with the quantity (higher productivity) and ALSO quality of life o Satisfaction is a legitimate objective of an organization o Organizations are responsible for supplying challenging and intrinsically rewarding jobs Employees can pay the price when employees are not satisfied with working conditions. IE Unions

4 Motivation Importance of rewards in motivating employees will reduce turnover Empowerment Managers are nit just responsible for employee satisfaction, also being asked to share more of their power o Referred to as coaches, advisers, etc. Employees responsibilities are increasing o Referred to as associates, teammates o Given freedom to make choices about schedules, procedures, and solving work-related problems Define Empowerment: managers putting employees in charge of what they do Behaving ethically Ethics start at an individual level Define Ethics: The study of moral values or principles that guide our behavior and inform us whether actions are right or wrong. Challenges at the Group level Behavior in groups are different than individuals behaviors Working with others Much success in any job involves developing good people skills Also important traits: o Communication, thinking, learning, working with others o Positive attitudes and behaviors, taking responsibilities for ones actions o Team building, priority management In this demanding and competitive workplace, technical skills are not enough Workforce diversity Organizations are becoming more diverse Define workforce diversity: The mix of people in organizations in terms of gender, race, ethnicity, disability, sexual orientation, and age, and demographic characteristics such as education and socio-economic status One large challenge is the mix of generations working together o Due to very difference life experiences they bring different values to and difference expectations to the workplace People do not set aside their cultural differences when they come to work To effectively work with different people we need to understand how cultures shape them and earn to adapt our interaction style Managers need to shift their philosophy from treating everyone the same to recognizing differences and responding to them o This ensures employee retention and greater productivity o Eg: providing diversity training and revising benefits to be more family friendly Diversity, if positively managed, can increase creativity and innovation in organizations

5 o Also can improve decision making by providing different perspectives on a given problem Challenges at the Organizational Level Once again, organizations are not simply the sum total of individuals and groups Change has become a key issue for organizations Ability to be a productive business is constantly tested. Need to: o Develop effective employees o Manage human resources issues (IE absenteeism and turnover) o Compete with global economy if expanded company over seas Learn to manage people of different cultures Productivity Considered productive is it achieves its goals o Transfers inputs (labor, raw materials) to outputs (finished goods or services) at the lowest cost Define Productivity: A performance measure including effectiveness and efficiency Define Effectiveness: The achievement of goals doing the right thing Define Efficiency: The ratio of effective work output to the input required to produce the work doing things right Developing Effective Employees Define Organizational citizenship behaviour (OCB): Discretionary behaviour that is not part of an employee s formal job requirements, but that nevertheless promotes the effective functioning of the organization Successful organizations need employees who go beyond their usual job duties o Providing performance beyond expectations OB is therefore concerned with organizational citizenship behavior Putting people first The people first strategy not only generates a committed workforce but significantly effects the bottom line o When organizations concern themselves with developing their employees they are more successful Global Competition Merging or outsourcing to stay competitive Managers and employees need to live with flexibility, spontaneity, uncertainty and unpredictability