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

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Chapter One Chapter One The Nature and Scope of The Nature and Scope of Organizational Behaviour Organizational Behaviour
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Page 1: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Chapter OneChapter One

The Nature and Scope of The Nature and Scope of Organizational BehaviourOrganizational Behaviour

Page 2: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 22

ObjectivesObjectivesAfter reading and studying this chapter, you should be able to:After reading and studying this chapter, you should be able to:

1.1. Explain what organizational behaviour Explain what organizational behaviour means.means.

2.2. Identify the potential advantages of Identify the potential advantages of organizational behaviour knowledge.organizational behaviour knowledge.

3.3. Explain key events in the history of Explain key events in the history of organizational behaviour.organizational behaviour.

4.4. Identify some of the key approaches to Identify some of the key approaches to organizational behaviour and recent organizational behaviour and recent trends in the field.trends in the field.

5.5. Summarize the research methods of Summarize the research methods of organizational behaviour.organizational behaviour.

6.6. Understand how a person develops Understand how a person develops organizational behaviour skills.organizational behaviour skills.

Page 3: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 33

The Meaning of Organizational The Meaning of Organizational BehaviourBehaviour

OB is the study of human behaviour OB is the study of human behaviour in the workplace, the interaction in the workplace, the interaction between people and the between people and the organization, and the organization organization, and the organization itself.itself.

Page 4: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 44

Goals of OBGoals of OB

Explain behaviourExplain behaviour Predict behaviourPredict behaviour Influence behaviourInfluence behaviour

For you to be able to make sense of an For you to be able to make sense of an organization in which you are placed: organization in which you are placed: ““What is going on here from a human What is going on here from a human

standpoint?”standpoint?”

Page 5: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 55

Benefits of Studying OBBenefits of Studying OB

1.1. Skill developmentSkill development

2.2. Personal growthPersonal growth

3.3. Enhancement of organizational Enhancement of organizational effectivenesseffectiveness

4.4. Sharpening and refinement of Sharpening and refinement of common sensecommon sense

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Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 66

Benefit #1 – Skill Benefit #1 – Skill developmentdevelopment

Generic skills that complement all Generic skills that complement all disciplines (e.g., dealing with people, disciplines (e.g., dealing with people, problem solving)problem solving)

““soft” skillssoft” skills e.g., motivating otherse.g., motivating others

hard & softhard & soft e.g., decision makinge.g., decision making

Page 7: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 77

Benefit #2 – Personal Growth Benefit #2 – Personal Growth through Insight into Human through Insight into Human

BehaviourBehaviour

Better understanding of othersBetter understanding of others Enhanced self-knowledge and self-Enhanced self-knowledge and self-

insightinsight Practical applications:Practical applications:

Managerial tasks, e.g., selecting people Managerial tasks, e.g., selecting people for jobs, communicatingfor jobs, communicating

Professional tasks, e.g., managing Professional tasks, e.g., managing change, dealing with customerschange, dealing with customers

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Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 88

Benefit #3 – Enhancement of Benefit #3 – Enhancement of Organizational EffectivenessOrganizational Effectiveness

Attention to the human element improves Attention to the human element improves business performancebusiness performance e.g., link between human resource practices and e.g., link between human resource practices and

bank performancebank performance OB uncovers factors influencing OB uncovers factors influencing

performanceperformance e.g., motivation – people work harder with e.g., motivation – people work harder with

greater control over work environment, teams greater control over work environment, teams more productive and happier when given more productive and happier when given responsibilityresponsibility

Managerial success enhanced by Managerial success enhanced by understanding peopleunderstanding people

Page 9: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 99

Benefit #4 – Sharpening & Benefit #4 – Sharpening & Refining Common SenseRefining Common Sense

Reduces time needed to acquire Reduces time needed to acquire knowledge and skills re. behaviourknowledge and skills re. behaviour

Common sense applies generally; OB Common sense applies generally; OB helps with specific applicationhelps with specific application

Common sense sometimes only Common sense sometimes only partially true (e.g., inactivity des not partially true (e.g., inactivity des not reduce stress for all)reduce stress for all)

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Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 1010

Brief History:Brief History: Four Key Four Key DevelopmentsDevelopments

1.1. Classical Approach to ManagementClassical Approach to Management

2.2. Hawthorne studiesHawthorne studies

3.3. Human Relations MovementHuman Relations Movement

4.4. Contingency Approach to Contingency Approach to management & leadershipmanagement & leadership

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Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 1111

Brief History: Brief History: Classical Classical ApproachApproach

Study of management more Study of management more systematic and formal as a result of systematic and formal as a result of Industrial revolutionIndustrial revolution

Encompassed:Encompassed: Scientific ManagementScientific Management Administrative ManagementAdministrative Management

Page 12: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 1212

Brief History: ClassicalBrief History: ClassicalScientific ManagementScientific Management

Applying scientific methods (Taylor, Applying scientific methods (Taylor, Gilbreth, Gantt) to increase productivity:Gilbreth, Gantt) to increase productivity: Careful study to develop standard work Careful study to develop standard work

practices, standardization of toolspractices, standardization of tools Worker selection using scientific principlesWorker selection using scientific principles Management/worker cooperation to Management/worker cooperation to

accomplish standard proceduresaccomplish standard procedures Managers do the thinking/workers carry outManagers do the thinking/workers carry out

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Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 1313

Brief History: ClassicalBrief History: ClassicalAdministrative ManagementAdministrative Management

Concerned with management & Concerned with management & structure of organizationsstructure of organizations

Fayol developed management Fayol developed management principles for planning, organizing, principles for planning, organizing, commanding, coordinating & commanding, coordinating & controllingcontrolling

Weber suggested bureaucracy as Weber suggested bureaucracy as ideal in efficiencyideal in efficiency

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Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 1414

Brief History: Brief History: Classical Classical ApproachApproach

Strengths & contributions:Strengths & contributions: Provided framework for management – Provided framework for management –

planning, organizing, leading & controllingplanning, organizing, leading & controlling Provided systematic ways of measuring people Provided systematic ways of measuring people

and workand work Limitations:Limitations:

Sometimes ignores differences among people Sometimes ignores differences among people and situationsand situations

Some principles not suited to fast-changing Some principles not suited to fast-changing situationssituations

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Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 1515

Brief History: Brief History: Hawthorne Hawthorne StudiesStudies

Marked beginning of behavioural Marked beginning of behavioural approach to managementapproach to management

Began with lighting studies at Began with lighting studies at Western Electric’s Hawthorne plant, Western Electric’s Hawthorne plant, continued by investigating other continued by investigating other possible influencespossible influences

Revealed production influenced by Revealed production influenced by human factors human factors

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Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 1616

Brief History: Brief History: Hawthorne Hawthorne Studies Studies (cont.)(cont.)

Origin of phenomenon referred to as Origin of phenomenon referred to as “Hawthorne Effect”:“Hawthorne Effect”: People tend to behave differently when People tend to behave differently when

they receive attention (as in an they receive attention (as in an experiment) because they respond to experiment) because they respond to the demands of the situationthe demands of the situation

Page 17: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 1717

Brief History: Hawthorne Brief History: Hawthorne StudiesStudies

•• Key Findings Key Findings •• 1.1. Economic incentives not as powerful as Economic incentives not as powerful as

assumed. assumed.

2.2. Human problems challenging & complicated to Human problems challenging & complicated to deal with.deal with.

3.3. Leadership practices & work-group pressure Leadership practices & work-group pressure influence employee satisfaction & productivityinfluence employee satisfaction & productivity

4.4. Personal problems can influence productivityPersonal problems can influence productivity

5.5. Good communication critical to mgt success.Good communication critical to mgt success.

6.6. Factors influencing employee behaviour must Factors influencing employee behaviour must be understood in context of social system.be understood in context of social system.

Page 18: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 1818

Brief History: Hawthorne Brief History: Hawthorne StudiesStudies

•• CriticismsCriticisms •• Lacking scientific rigourLacking scientific rigour

E.g., control group employees E.g., control group employees influenced by feedback and rewardsinfluenced by feedback and rewards

Page 19: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 1919

Brief History: Human Relations Brief History: Human Relations MovementMovement

Theme 1: Theme 1: Believes important link between managerial Believes important link between managerial

practices, morale & productivitypractices, morale & productivity Workers bring social needs to job & are members of Workers bring social needs to job & are members of

various work groupsvarious work groups Managers must recognize those needs & the Managers must recognize those needs & the

influence of work groups on performanceinfluence of work groups on performance

Theme 2:Theme 2: Strong belief in workers’ capabilities; all would Strong belief in workers’ capabilities; all would

be productive in proper environmentbe productive in proper environment

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Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 2020

Brief History: Human Brief History: Human Relations – McGregorRelations – McGregor

Noted management’s assumptions about Noted management’s assumptions about workers’ capabilities:workers’ capabilities: Theory X (Theory X (pessimistic)pessimistic)

People dislike work, not ambitious, seek to People dislike work, not ambitious, seek to avoid responsibility, must be watched closelyavoid responsibility, must be watched closely

Theory YTheory Y (optimistic) (optimistic) People do accept responsibility, can innovate, People do accept responsibility, can innovate,

see work as natural, can exercise self-controlsee work as natural, can exercise self-control

McGregor: Y should guide managerial McGregor: Y should guide managerial practicepractice

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Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 2121

Brief History: Contingency Brief History: Contingency Approach to ManagementApproach to Management

No one best way to manage people No one best way to manage people or work; must consider situational or work; must consider situational factorsfactors

Emerged from study of leadership Emerged from study of leadership styles: workers do not respond in styles: workers do not respond in same way to identical leadership same way to identical leadership initiativesinitiatives

Page 22: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 2222

Brief History: Contingency Brief History: Contingency Approach to Management Approach to Management

(cont.)(cont.) Strength:Strength:

Encourages us to examine individual Encourages us to examine individual and situational differences before and situational differences before deciding on course of actiondeciding on course of action

Problem:Problem: Used as excuse for not acquiring OB Used as excuse for not acquiring OB

knowledge (what’s the point if “it knowledge (what’s the point if “it depends”?)depends”?)

Page 23: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 2323

Other Key Approaches to OBOther Key Approaches to OB

Multidisciplinary, e.g.,Multidisciplinary, e.g., PsychologyPsychology SociologySociology AnthropologyAnthropology Political sciencePolitical science Engineering Engineering

Systems approachSystems approach

Page 24: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 2424

Systems ApproachSystems Approach

Considers an organization to be a system Considers an organization to be a system (set of inter-related parts acting as one) that (set of inter-related parts acting as one) that interacts with environmentinteracts with environment Draws Draws inputinput (people, equipment…) from (people, equipment…) from

environmentenvironment ProcessesProcesses inputs inputs Returns Returns outputsoutputs (goods, services) to environment(goods, services) to environment

Has subsystems within; is part of larger Has subsystems within; is part of larger systemsystem

Change in one system or subsystem affects Change in one system or subsystem affects othersothers

Page 25: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 2525

Systems Approach (cont.)Systems Approach (cont.)

Emphasizes Emphasizes opennessopenness and and connectednessconnectedness

Notes use of Notes use of boundary spannersboundary spanners Suggests people working Suggests people working together together

often more effective than as individualsoften more effective than as individuals Suggests Suggests many waysmany ways to do things to do things

(different processes creating similar (different processes creating similar outputs)outputs)

Page 26: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 2626

Recent Trends Influencing Recent Trends Influencing OBOB

GlobalizationGlobalization Requirements for managing Requirements for managing diversitydiversity Emphasis on Emphasis on ethicalethical decision makingdecision making Demands for Demands for leadershipleadership development development Need for effective Need for effective knowledge knowledge

managementmanagement

Page 27: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 2727

OB Data Collection & Research OB Data Collection & Research MethodsMethods

Methods of data collection:Methods of data collection: SurveysSurveys InterviewsInterviews Direct observation of behaviourDirect observation of behaviour

Systematic observationSystematic observation Participant observationParticipant observation

Page 28: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 2828

OB Data Collection & Research OB Data Collection & Research Methods (cont.)Methods (cont.)

Research Methods:Research Methods: Case studiesCase studies ExperimentsExperiments

independent and dependent variablesindependent and dependent variables lab experimentslab experiments field experimentsfield experiments

Meta-analysisMeta-analysis combining resultscombining results note moderator variablesnote moderator variables

Page 29: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 2929

A Framework for Studying OBA Framework for Studying OB

Page 30: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 3030

Skill Development in OBSkill Development in OB

Means learning to work effectively Means learning to work effectively with individuals, groups and with individuals, groups and organizational forcesorganizational forces

Page 31: Chapter One Chapter One The Nature and Scope of Organizational Behaviour.

Copyright © 2007 by Nelson, a division of Thomson Canada LimitedCopyright © 2007 by Nelson, a division of Thomson Canada Limited 3131

Exhibit 1-3 Exhibit 1-3 A Model for Developing Skills in A Model for Developing Skills in

OBOB


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