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Chapter 1 Introduction to the Field of Organizational Behaviour Canadian OB 7e: McShane/Steen 1 © 2009 The McGraw-Hill Companies, Inc. All rights reserved.

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Presentation on theme: "Chapter 1 Introduction to the Field of Organizational Behaviour Canadian OB 7e: McShane/Steen 1 © 2009 The McGraw-Hill Companies, Inc. All rights reserved."— Presentation transcript:

1 Chapter 1 Introduction to the Field of Organizational Behaviour Canadian OB 7e: McShane/Steen 1 © 2009 The McGraw-Hill Companies, Inc. All rights reserved

2 PCL Family of Companies Several organizational behaviour practices have helped the Edmonton-based PCL Family of Companies become an employer of choice, a leader in the construction industry, and a valued community member Canadian OB 7e: McShane/Steen © 2009 The McGraw-Hill Companies, Inc. All rights reserved 2

3 Organizational Behaviour and Organizations  Organizational behaviour The study of what people think, feel, and do in and around organizations  Organizations Groups of people who work interdependently toward some purpose - Structured patterns of interaction - Coordinated tasks - Organizations have a purpose (even if not fully agreed) © 2009 The McGraw-Hill Companies, Inc. All rights reserved 3 Canadian OB 7e: McShane/Steen

4 Why Study OB?  Satisfy the need to understand and predict  Helps us to test personal theories  Influence behaviour – get things done  OB improves an organization’s financial health  OB is for everyone Canadian OB 7e: McShane/Steen © 2009 The McGraw-Hill Companies, Inc. All rights reserved 4

5 Old Perspective of Organizational Effectiveness  Goal oriented -- Effective firms achieve their stated objectives  No longer accepted as a perspective of org effectiveness Companies could set easy goals Some goals too abstract to know if achieved Company might achieve goals but go out of business by achieving wrong goals Canadian OB 7e: McShane/Steen 5 © 2009 The McGraw-Hill Companies, Inc. All rights reserved

6 Defining Organizational Effectiveness as 4 Perspectives 1.Open systems: they have a good fit with their external environment 2.High-performance work practices: their internal subsystems are configured for a high-performance workplace 3.Organizational learning: they are learning organizations 4.Stakeholder: they satisfy the needs of key stakeholders NOTE: Need to consider all four perspectives when assessing a company’s effectiveness Canadian OB 7e: McShane/Steen 6 © 2009 The McGraw-Hill Companies, Inc. All rights reserved

7 Open Systems Perspective  Organizations -- complex systems that “live” within (and depend upon) the external environment  Effective organizations Maintain a close “fit” with changing conditions Transform inputs to outputs efficiently and flexibly  Open systems perspective – foundation for the other three effectiveness perspectives Canadian OB 7e: McShane/Steen 7 © 2009 The McGraw-Hill Companies, Inc. All rights reserved

8 Canadian OB 7e: McShane/Steen © 2009 The McGraw-Hill Companies, Inc. All rights reserved 8 Open Systems Perspective  Subsystems -- processes, task activities, social dynamics within the system  Transformation process -- subsystems transform inputs into various outputs  Feedback -- information from environment about value of outputs/availability of inputs Feedback Environment

9 Organizational Learning Perspective  An organization’s capacity to acquire, share, use, and store valuable knowledge  Need to consider both stock and flow of knowledge Stock: intellectual capital Flow: org learning processes of acquisition, sharing, and use Canadian OB 7e: McShane/Steen 9 © 2009 The McGraw-Hill Companies, Inc. All rights reserved

10 Intellectual Capital Relationship Capital Value derived from satisfied customers, reliable suppliers, etc. Structural Capital Knowledge captured in systems and structures Human Capital Knowledge that people possess and generate Canadian OB 7e: McShane/Steen 10 © 2009 The McGraw-Hill Companies, Inc. All rights reserved

11 Organizational Learning Processes Applying knowledge to organizational processes in ways that improves the organization’s effectiveness Distributing knowledge throughout the organization Extracting information and ideas from its environment as well as through insight KNOWLEDGE ACQUISITION KNOWLEDGE ACQUISITION KNOWLEDGE SHARING KNOWLEDGE SHARING KNOWLEDGE USE KNOWLEDGE USE Examples in practice Hiring skilled staffPosting case studies on intranet Giving staff freedom to try out ideas Canadian OB 7e: McShane/Steen 11 © 2009 The McGraw-Hill Companies, Inc. All rights reserved

12 Organizational Memory  The storage and preservation of intellectual capital  Retain intellectual capital by: Keeping knowledgeable employees Transferring knowledge to others Transferring human capital to structural capital  Successful companies also unlearn Canadian OB 7e: McShane/Steen 12 © 2009 The McGraw-Hill Companies, Inc. All rights reserved

13 High Performance Work Practices (HPWPs) HPWPs are internal systems and structures that are associated with successful companies 1. Employees are competitive advantage 2. Value of employees increased through specific practices. 3. Maximum benefit when org practices are bundled Canadian OB 7e: McShane/Steen 13 © 2009 The McGraw-Hill Companies, Inc. All rights reserved

14 High Performance Work Practices No consensus, but HPWPs include: Employee involvement and job autonomy (and their combination as self-directed teams). Employee competence (training, selection, etc.). Performance-based rewards Canadian OB 7e: McShane/Steen 14 © 2009 The McGraw-Hill Companies, Inc. All rights reserved

15 Stakeholder Perspective  Stakeholders: any entity who affect or is affected by the firm’s objectives and actions  Personalizes the open systems perspective Identifies social entities in the environment Stakeholder relations are dynamic  Problem: Stakeholders have conflicting interests Firms have limited resources © 2009 The McGraw-Hill Companies, Inc. All rights reserved 15 Canadian OB 7e: McShane/Steen

16 Canadian Public Service as a Values-Driven Organization The Canadian federal public service is becoming a values- driven organization. The government believes that values will guide desired behaviours and replace existing control system based on hierarchy and compliance. © 2009 The McGraw-Hill Companies, Inc. All rights reserved 16 Canadian OB 7e: McShane/Steen Canadian Public Service

17 Stakeholders: Values and Ethics  Values and ethics prioritize stakeholder interests  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 Canadian OB 7e: McShane/Steen 17 © 2009 The McGraw-Hill Companies, Inc. All rights reserved Canadian Public Service

18 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 © 2009 The McGraw-Hill Companies, Inc. All rights reserved 18 Canadian OB 7e: McShane/Steen Canadian Public Service

19 Types of Individual Behaviour Organizational Citizenship Contextual performance – cooperation and helpfulness beyond required job duties Task Performance Goal-directed behaviours under person’s control more Canadian OB 7e: McShane/Steen 19 © 2009 The McGraw-Hill Companies, Inc. All rights reserved

20 Types of Individual Behaviour (con’t) Maintaining Work Attendance Attending work at required times Joining/staying with the Organization Agreeing to employment relationship; remaining in that relationship Counterproductive Work Behaviours Voluntary behaviours that potentially harm the organization Canadian OB 7e: McShane/Steen 20 © 2009 The McGraw-Hill Companies, Inc. All rights reserved

21 Globalization  Economic, social, and cultural connectivity with people in other parts of the world  Effects of globalization on organizations New structures Increasing diversity Increasing competitive pressures, intensification Canadian OB 7e: McShane/Steen 21 © 2009 The McGraw-Hill Companies, Inc. All rights reserved

22 Increasing Workforce Diversity  Surface-level diversity Observable demographic and other overt differences in people (e.g. race, ethnicity, gender, age)  Deep-level diversity Differences in psychological characteristics (e.g. personalities, beliefs, values, and attitudes) Example: Differences across age cohorts (e.g. Gen-Y)  Implications Leveraging the diversity advantage Also diversity challenges (e.g. teams, conflict) Ethical imperative of diversity © 2009 The McGraw-Hill Companies, Inc. All rights reserved 22 Canadian OB 7e: McShane/Steen

23 Employment Relationships  Work/life balance Minimizing conflict between work and nonwork demands number one indicator of career success  Virtual work Using information technology to perform one’s job away from the traditional physical workplace Telework – issues of replacing face time, clarifying employment expectations  Virtual teams Operate across space, time, and organizational boundaries with members who communicate mainly through electronic technologies Canadian OB 7e: McShane/Steen 23 © 2009 The McGraw-Hill Companies, Inc. All rights reserved

24 Organizational Behaviour Anchors  Multidisciplinary anchor Many OB concepts adopted from other disciplines OB develops its own theories, but scans other fields  Systematic research anchor OB researchers rely on scientific method Should apply evidence-based management, but… - Bombarded with theories and models - Challenge translating general theories to specific situations - Swayed by consultant marketing - Perceptual biases -- ignoring evidence contrary to our beliefs Canadian OB 7e: McShane/Steen © 2009 The McGraw-Hill Companies, Inc. All rights reserved 24

25 Organizational behaviour Anchors (con’t)  Contingency anchor A particular action may have different consequences in different situations Need to diagnose the situation and select best strategy under those conditions  Multiple levels of analysis anchor Individual, team, organizational level of analysis OB topics usually relevant at all three levels of analysis Canadian OB 7e: McShane/Steen 25 © 2009 The McGraw-Hill Companies, Inc. All rights reserved

26 Chapter 1 Introduction to the Field of Organizational Behaviour Canadian OB 7e: McShane/Steen 26 © 2009 The McGraw-Hill Companies, Inc. All rights reserved


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