IP 348 CH1

Organisational Behaviour

the study of how individuals, groups, and organisational structure affect behaviour in organisations, with the aim of improving organisational effectiveness

Organisation

a social unit of 2+ people that work together continuously to achieve a common goal/goals

Manager

an individual who achieves goals through other people within an organisation

Managerial functions

Planning

Organising

Leading

Controlling

Planning

defining goals, establishing strategy, and developing plans to coordinate activities

Organising

determining what tasks are to be done, who is to do them. how the tasks are to be grouped, who reports to whom, and where decisions are to be made

Leading

motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts

Controlling

monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations

Mintzberg’s Interpersonal Managerial Roles

Figurehead

Leader

Liaison

Mintzberg’s Informational Managerial Roles

Monitor

Disseminator

Spokesperson

Mintzberg’s Decisional Managerial Roles

Entrepreneur

Disturbance Handler

Resource Allocator

Negotiator

Figurehead

symbolic head; performs routine duties of a legal or social nature

Leader

responsible for the motivation and direction of employees

Liaison

maintains a network of outside contacts who provide favours and information

Monitor

receives a wide variety of information; serves as the nerve centre of the organisation

Disseminator

transmits information received from outsiders or other employees to members of the organisation

Spokesperson

transmits information to outsiders on organisation plans, policies, and results

Entrepreneur

searches for opportunities and initiates projects to bring about change

Disturbance handler

responsible for corrective action when the organisation faces unexpected disturbances

Resource allocator

makes or approves significant organisational decisions

Negotiator

responsible for representing the organisation at major negotiations

Katz’s Managerial Skills

Technical skills

Human/Interpersonal skills

Conceptual skills

Technical Skills

the ability to apply specialised knowledge or expertise acquired through formal education or on-the-job experience

Human/interpersonal skills

the ability to work with, understand, and motivate other people, both individually and in groups

Conceptual skills

the mental ability to analyse and diagnose complex situations

Luthan’s findings of successful managers

they focus heavily on networking and give the least emphasis to HR management

Luthan’s findings on effective managers

they focus on communication and the least on networking

What does OB seek to do?

replace intuitive explanations of behaviour with a more scientific approach

Intuition

“gut feelings” about what makes others “tick”

Problem with relying solely on intuition

incomplete information and inaccurate predictions

Systematic study

studying relationships, causes, and effects, and drawing conclusions using scientific evidence

Systematic study’s assumption about behaviour

behaviour is not random, it can be predicted by understanding how people perceive situations and what they value

Evidence-Based Management (EBM)

the practice of basing managerial decisions on the best available scientific evidence rather than habit or personal preference

Big data and AI

the use of data analytics to predict events, detect risks, and prevent catastrophes

Important limitation of Big Data and AI in OB

should inform, not replace, intuition and experience when managing people

The myth about Management by Walking Around (MBWA)?

simply being present on the floor improves employee performance

What science says about MBWA

most effective as frequent monitoring, particularly to improve safety and regulatory compliance

Limitation of MBWA

not a universal solution for employee management, it is most effective when structured and applied appropriately

Psychology’s contribution to OB

learning

motivation

personality

emotions

Psychology’s unit of analysis

individual

Social psychology’s contribution to OB

behavioural and attitude change

communication

group processes

group decision-making

Social psychology unit of analysis

individual and group

Sociology’s contribution to OB

group dynamics

work teams

organisation culture

structure

Sociology’s unit of analysis

group and organisation

Anthropology’s contribution to OB

values

attitudes

cross-cultural analysis

organisational culture

Anthropology’s unit of analysis

group and organisation

The reason for few absolutes in OB

people are complex and diverse; behaviour is not governed by universal laws like in the physical sciences

Contingency variables (Z)

situational/moderating factors that affect the relationship between two variables

OB Formula

X leads to Y, but only under conditions specified by Z

Contemporary OB Challenges and Opportunities

Workforce diversity and inclusion

Continuing globalisation

Technology and social media

Ethical behaviour

Corporate social responsibility

Positive work environment

The Gig Economy and Crises

Workforce diversity and inclusion

moving beyond heterogeneity to inclusion, where differences are supported and leveraged to improve organisational performance

Globalisation challenge

managing expatriates, working with different cultures, and dealing with jobs moving to low-cosy countries with different regulations

Technology and social media challenges

managing the “always-on” virtual workplace, maintaining work-life balance, and establishing social media policies

Ethical behaviour

employees must determine right vs wrong conduct when facing ethical dilemmas. organisations use codes of ethics and ethical climates to guide behaviour

Corporate social responsibility and triple bottom line

an organisation’s responsibility to people, planet, and revenue. includes sustainability, workplace justice, and volunteering

Positive organisation scholarship

the study of how organisations develop human strengths, foster vitality, and build resilience, rather than focusing only on fixing weaknesses

Gig economy and crises

organisations must adapt to temporary and flexible jobs and mange OB during recessions or pandemics, requiring appropriate coping and decision-making strategies

The Comprehensive OB Model

consists of 3 levels of analysis — individual, group, and organisational — across three types of variables

Comprehensive OB Model variables

Inputs

Processes

Outcomes

Individual inputs

diversity, personality, values

Group inputs

group structures

group roles

team responsibilities

Organisational inputs

structure

culture

Individual processes

emotions and moods

motivation

perception

decision making

Group processes

communication

leadership

power and politics

conflict and negotiation

Organisational processes

human resource management

change practices

Individual outcomes

attitudes and stress

task performance

organisational citizenship behaviour (OCB)

withdrawal behaviour

Attitudes and stress

evaluation of objects/people and the psychological response to pressure

Task performance

combination of effectiveness and efficiency at core job tasks

Organisational Citizenship Behaviour (OCB)

discretionary behaviour that contributes to the social/psychological environment

Withdrawal behaviour

actions to separate oneself from the organisation (absenteeism, turnover)

Group outcomes

group cohesion

group functioning

Group cohesion

the degree to which members support and validate one another

Group functioning

the quantity and quality of a group’s work output

Organisational outcomes

productivity

survival

Productivity

achieving goals by transforming inputs into outputs at the lowest cost

Survival

the evidence that the organisation is able to exist and grow over the long term

The Feedback Loop

outcomes at one point in time often become the inputs for the next cycle of organisational activity

Employability Skills Matrix (ESM)

critical thinking

communication

collaboration

self-management

social responsibility

leadership

career management

Critical thinking

analysing evidence and situational context

Communication

effective exchange of information

Collaboration

working within group processes and teams

Self-management

understanding one’s own personality, values, and emotions

Social responsibility

understanding CSR, ethics, and sustainability

Career management

navigating the “gig economy” and expatriate assignments