2. Chapter 1 / Slide 1 Copyright © 2008 Pearson Education Canada Part 1 Organizational Behaviour and Management Copyright © 2008 Pearson Education Canada An Introduction

3. Chapter 1 / Slide 2 Copyright © 2008 Pearson Education Canada 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. Chapter 1 Copyright © 2008 Pearson Education Canada

4. Chapter 1 / Slide 3 Copyright © 2008 Pearson Education Canada Learning Objectives ( continued ) 5.Describe the contemporary contingency 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. Chapter 1 Copyright © 2008 Pearson Education Canada

5. Chapter 1 / Slide 4 Copyright © 2008 Pearson Education Canada What Are Organizations? Social inventions for accomplishing common goals through group effort. The coordinated presence of people. Organizational survival and adaptation to change are important goals. Interaction and coordination among people to accomplish goals.

6. Chapter 1 / Slide 5 Copyright © 2008 Pearson Education Canada 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.

7. Chapter 1 / Slide 6 Copyright © 2008 Pearson Education Canada Why Study Organizational Behaviour? Organizational behaviour is interesting. It is about people and human nature. Organizational behaviour is important to managers, employees, and consumers.

8. Chapter 1 / Slide 7 Copyright © 2008 Pearson Education Canada 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.

9. Chapter 1 / Slide 8 Copyright © 2008 Pearson Education Canada How Much Do You Know About Organizational Behaviour? 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.

10. Chapter 1 / Slide 9 Copyright © 2008 Pearson Education Canada 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. 5.Pay is the best way to motivate most employees and improve job performance.

11. Chapter 1 / Slide 10 Copyright © 2008 Pearson Education Canada How Much Do You Know About Organizational Behaviour? ( continued ) People are very good at giving sensible reasons as to why a 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.

12. Chapter 1 / Slide 11 Copyright © 2008 Pearson Education Canada Goals of Organizational Behaviour Predicting organizational behaviour and events. Explaining organizational behaviour and events in organizations. Managing organizational behaviour.

13. Chapter 1 / Slide 12 Copyright © 2008 Pearson Education Canada Management Management is the art of getting things accomplished in organizations through others. Prediction and explanation involves analysis while management is about action.

14. Chapter 1 / Slide 13 Copyright © 2008 Pearson Education Canada Early Prescriptions Concerning Management Attempts to prescribe the “correct” way to manage an organization and achieve its goals: –Classical view and bureacuracy –Human relations view

15. Chapter 1 / Slide 14 Copyright © 2008 Pearson Education Canada The Classical View and Bureaucracy The classical view advocates a high degree of specialization of labour and coordination and centralized decision making.

16. Chapter 1 / Slide 15 Copyright © 2008 Pearson Education Canada The Classical View and Bureaucracy (continued) Scientific management is Frederick’s Taylor’s system for using research to determine the optimum degree of specialization and standardization.

17. Chapter 1 / Slide 16 Copyright © 2008 Pearson Education Canada The Classical View and Bureaucracy (continued) 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

18. Chapter 1 / Slide 17 Copyright © 2008 Pearson Education Canada 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.

19. Chapter 1 / Slide 18 Copyright © 2008 Pearson Education Canada 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.

20. Chapter 1 / Slide 19 Copyright © 2008 Pearson Education Canada The Human Relations Movement and a Critique of Bureaucracy (continued) 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

21. Chapter 1 / Slide 20 Copyright © 2008 Pearson Education Canada The Human Relations Movement and a Critique of Bureaucracy (continued) 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 the adoption of more flexible systems of management and the design of more interesting jobs.

22. Chapter 1 / Slide 21 Copyright © 2008 Pearson Education Canada 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.

23. Chapter 1 / Slide 22 Copyright © 2008 Pearson Education Canada 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

24. Chapter 1 / Slide 23 Copyright © 2008 Pearson Education Canada Managerial Roles Henry Mintzberg discovered a rather complex set of roles played by managers: –Interpersonal roles –Informational roles –Decisional roles

25. Chapter 1 / Slide 24 Copyright © 2008 Pearson Education Canada Interpersonal Roles Interpersonal roles have to do with establishing and maintaining interpersonal relations. They include: –Figurehead role –Leadership role –Liaison role

26. Chapter 1 / Slide 25 Copyright © 2008 Pearson Education Canada Informational Roles Informational roles are concerned with various ways the manager receives and transmits information. They include: –Monitor role –Disseminator role –Spokesperson role

27. Chapter 1 / Slide 26 Copyright © 2008 Pearson Education Canada Decisional Roles Decisional roles deal with decision making. They include: –Entrepreneur role –Disturbance handler –Resource allocation roles –Negotiator roles

28. Chapter 1 / Slide 27 Copyright © 2008 Pearson Education Canada Mintzberg’s Managerial Roles

29. Chapter 1 / Slide 28 Copyright © 2008 Pearson Education Canada Managerial Activities Managers have been found to engage in four basic types of activities: –Routine communication –Traditional management –Networking –Human resource management

30. Chapter 1 / Slide 29 Copyright © 2008 Pearson Education Canada Summary of Managerial Activities

31. Chapter 1 / Slide 30 Copyright © 2008 Pearson Education Canada Managerial Activities (continued) 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.

32. Chapter 1 / Slide 31 Copyright © 2008 Pearson Education Canada Managerial Agendas John Kotter studied the behaviour patterns of successful general managers and identified the following categories of behaviour: –Agenda setting –Networking –Agenda implementation

33. Chapter 1 / Slide 32 Copyright © 2008 Pearson Education Canada Agenda Setting What they wanted to accomplish for the organization. Almost always informal and unwritten and concerned with people issues.

34. Chapter 1 / Slide 33 Copyright © 2008 Pearson Education Canada Networking Formal and informal networks of key people inside and outside of the organization. Provided mangers with information and established cooperative relationships relevant to their agendas.

35. Chapter 1 / Slide 34 Copyright © 2008 Pearson Education Canada Agenda Implementation Managers used networks to implement the agendas. They employed a wide range of influence tactics.

36. Chapter 1 / Slide 35 Copyright © 2008 Pearson Education Canada Managerial Agendas (continued) A high degree of informal interaction and concern with people issues were necessary for the managers to achieve their agendas.

37. Chapter 1 / Slide 36 Copyright © 2008 Pearson Education Canada Managerial Minds 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 doublecheck more formal or mechanical analyses

38. Chapter 1 / Slide 37 Copyright © 2008 Pearson Education Canada Managerial Minds (continued) Good intuition is problem identification and problem solving based on a long history of systematic education and experience.

39. Chapter 1 / Slide 38 Copyright © 2008 Pearson Education Canada International Managers The style in which managers do what they do and the emphasis given to various activities will vary greatly across cultures. Cultural variations in values affect both managers’ and employees’ expectations about interpersonal interaction.

40. Chapter 1 / Slide 39 Copyright © 2008 Pearson Education Canada International Managers (continued) National culture is one of the most important contingency variables in organizational behaviour.

41. Chapter 1 / Slide 40 Copyright © 2008 Pearson Education Canada Some Contemporary Management Concerns Four issues with which organizations and managers are currently concerned: –Diversity – Local and Global –Employee-Organization Relationships –A Focus on Quality, Speed, and Flexibility –Employee Recruitment and Retention

42. Chapter 1 / Slide 41 Copyright © 2008 Pearson Education Canada 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.

43. Chapter 1 / Slide 42 Copyright © 2008 Pearson Education Canada Diversity – Local and Global (continued) Organizational behaviour is concerned with issues that have to do with the management of a diverse workforce.

44. Chapter 1 / Slide 43 Copyright © 2008 Pearson Education Canada Employee-Organization Relationships Downsizing, restructuring, re-engineering, and outsourcing have had a profound effect on organizations. Changes in the workplace have changed the nature of employee-organization relationships.

45. Chapter 1 / Slide 44 Copyright © 2008 Pearson Education Canada Employee-Organization Relationships (continued) The consequences of workplace 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

46. Chapter 1 / Slide 45 Copyright © 2008 Pearson Education Canada Work-Life Conflict in Canadian Organizations A significant number of Canadian employees report: –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

47. Chapter 1 / Slide 46 Copyright © 2008 Pearson Education Canada Employee-Organization Relationships (continued) Organizational behaviour offers many solutions for improving employee- organization relationships.

48. Chapter 1 / Slide 47 Copyright © 2008 Pearson Education Canada 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.

49. Chapter 1 / Slide 48 Copyright © 2008 Pearson Education Canada Employee Recruitment and Retention A major challenge facing organizations today is the recruitment and retention of skilled employees. Canadian organizations face severe shortages of labour in the coming years and many are already having trouble hiring and retaining employees.

50. Chapter 1 / Slide 49 Copyright © 2008 Pearson Education Canada Employee Recruitment and Retention (continued) Organizational behaviour can help companies improve their recruitment and retention and become an employer of choice.

51. Chapter 1 / Slide 50 Copyright © 2008 Pearson Education Canada 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