The Nature and Scope of Organizational Behaviour Chapter One The Nature and Scope of Organizational Behaviour

Copyright © 2007 by Nelson, a division of Thomson Canada Limited Objectives After reading and studying this chapter, you should be able to: Explain what organizational behaviour means. Identify the potential advantages of organizational behaviour knowledge. Explain key events in the history of organizational behaviour. Identify some of the key approaches to organizational behaviour and recent trends in the field. Summarize the research methods of organizational behaviour. Understand how a person develops organizational behaviour skills. Copyright © 2007 by Nelson, a division of Thomson Canada Limited

The Meaning of Organizational Behaviour OB is the study of human behaviour in the workplace, the interaction between people and the organization, and the organization itself. Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Copyright © 2007 by Nelson, a division of Thomson Canada Limited Goals of OB Explain behaviour Predict behaviour Influence behaviour For you to be able to make sense of an organization in which you are placed: “What is going on here from a human standpoint?” Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Benefits of Studying OB Skill development Personal growth Enhancement of organizational effectiveness Sharpening and refinement of common sense Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Benefit #1 – Skill development Generic skills that complement all disciplines (e.g., dealing with people, problem solving) “soft” skills e.g., motivating others hard & soft e.g., decision making Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Benefit #2 – Personal Growth through Insight into Human Behaviour Better understanding of others Enhanced self-knowledge and self-insight Practical applications: Managerial tasks, e.g., selecting people for jobs, communicating Professional tasks, e.g., managing change, dealing with customers Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Benefit #3 – Enhancement of Organizational Effectiveness Attention to the human element improves business performance e.g., link between human resource practices and bank performance OB uncovers factors influencing performance e.g., motivation – people work harder with greater control over work environment, teams more productive and happier when given responsibility Managerial success enhanced by understanding people Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Benefit #4 – Sharpening & Refining Common Sense Reduces time needed to acquire knowledge and skills re. behaviour Common sense applies generally; OB helps with specific application Common sense sometimes only partially true (e.g., inactivity des not reduce stress for all) Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Brief History: Four Key Developments Classical Approach to Management Hawthorne studies Human Relations Movement Contingency Approach to management & leadership Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Brief History: Classical Approach Study of management more systematic and formal as a result of Industrial revolution Encompassed: Scientific Management Administrative Management Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Brief History: Classical Scientific Management Applying scientific methods (Taylor, Gilbreth, Gantt) to increase productivity: Careful study to develop standard work practices, standardization of tools Worker selection using scientific principles Management/worker cooperation to accomplish standard procedures Managers do the thinking/workers carry out Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Brief History: Classical Administrative Management Concerned with management & structure of organizations Fayol developed management principles for planning, organizing, commanding, coordinating & controlling Weber suggested bureaucracy as ideal in efficiency Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Brief History: Classical Approach Strengths & contributions: Provided framework for management – planning, organizing, leading & controlling Provided systematic ways of measuring people and work Limitations: Sometimes ignores differences among people and situations Some principles not suited to fast-changing situations Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Brief History: Hawthorne Studies Marked beginning of behavioural approach to management Began with lighting studies at Western Electric’s Hawthorne plant, continued by investigating other possible influences Revealed production influenced by human factors Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Brief History: Hawthorne Studies (cont.) Origin of phenomenon referred to as “Hawthorne Effect”: People tend to behave differently when they receive attention (as in an experiment) because they respond to the demands of the situation Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Brief History: Hawthorne Studies • Key Findings • Economic incentives not as powerful as assumed. Human problems challenging & complicated to deal with. Leadership practices & work-group pressure influence employee satisfaction & productivity Personal problems can influence productivity Good communication critical to mgt success. Factors influencing employee behaviour must be understood in context of social system. Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Brief History: Hawthorne Studies • Criticisms • Lacking scientific rigour E.g., control group employees influenced by feedback and rewards Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Brief History: Human Relations Movement Theme 1: Believes important link between managerial practices, morale & productivity Workers bring social needs to job & are members of various work groups Managers must recognize those needs & the influence of work groups on performance Theme 2: Strong belief in workers’ capabilities; all would be productive in proper environment Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Brief History: Human Relations – McGregor Noted management’s assumptions about workers’ capabilities: Theory X (pessimistic) People dislike work, not ambitious, seek to avoid responsibility, must be watched closely Theory Y (optimistic) People do accept responsibility, can innovate, see work as natural, can exercise self-control McGregor: Y should guide managerial practice Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Brief History: Contingency Approach to Management No one best way to manage people or work; must consider situational factors Emerged from study of leadership styles: workers do not respond in same way to identical leadership initiatives Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Brief History: Contingency Approach to Management (cont.) Strength: Encourages us to examine individual and situational differences before deciding on course of action Problem: Used as excuse for not acquiring OB knowledge (what’s the point if “it depends”?) Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Other Key Approaches to OB Multidisciplinary, e.g., Psychology Sociology Anthropology Political science Engineering Systems approach Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Copyright © 2007 by Nelson, a division of Thomson Canada Limited Systems Approach Considers an organization to be a system (set of inter-related parts acting as one) that interacts with environment Draws input (people, equipment…) from environment Processes inputs Returns outputs (goods, services) to environment Has subsystems within; is part of larger system Change in one system or subsystem affects others Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Systems Approach (cont.) Emphasizes openness and connectedness Notes use of boundary spanners Suggests people working together often more effective than as individuals Suggests many ways to do things (different processes creating similar outputs) Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Recent Trends Influencing OB Globalization Requirements for managing diversity Emphasis on ethical decision making Demands for leadership development Need for effective knowledge management Copyright © 2007 by Nelson, a division of Thomson Canada Limited

OB Data Collection & Research Methods Methods of data collection: Surveys Interviews Direct observation of behaviour Systematic observation Participant observation Copyright © 2007 by Nelson, a division of Thomson Canada Limited

OB Data Collection & Research Methods (cont.) Case studies Experiments independent and dependent variables lab experiments field experiments Meta-analysis combining results note moderator variables Copyright © 2007 by Nelson, a division of Thomson Canada Limited

A Framework for Studying OB Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Skill Development in OB Means learning to work effectively with individuals, groups and organizational forces Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Exhibit 1-3 A Model for Developing Skills in OB Copyright © 2007 by Nelson, a division of Thomson Canada Limited