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organizational behavior
systematic study and application of knowledge about how individuals and groups act within the
organizations where they work
levels of analysis
organization, group, individual
why OB matters
orgs that value and understand their employees are more profitable, OB topics top the list of qualities desired by hiring managers
learning
relatively permanent change in knowledge or skill produced by experience.
retention
The ability to recall or recognize what has been learned over time
chunking
taking single pieces of information and grouping them into larger units.
overlearning
Continued studying and practice after initial proficiency has been achieved
kinesthetic (tactile) learner
One who processes information by actively engaging with the material.
effective notetaking
writing longhand improves retention compared to typing notes on a laptop
quizzing
active recall is an effective way to test which concepts are known
evidence based management
making managerial decisions on best available scientific evidence
qualitative studies
theory building via observations and interviews
quantitative studies
theory affirmation and development via surveys, archival data, interventions, and experiments
correlation vs causation
two variables can be correlated but not caused by one another if there are other factors involved
culture
needed to support strategy, determines whether employees will contribute to the strategy with clarity, energy, purpose, and effectiveness
organizational culture and the human resources management system (HRMS)
essential levers for enabling and executing business strategies. strategy begins with decisions about the business model, the sources of value, and how the business competes
strategy and culture misalignment example
if creativity is central to the business’s competitive advantage, but it is not rewarded well by HR
strategic planning
helpful, but markets are dynamic so leaders should be able to adjust on the spot
reactive HR system
when the only disruptors to existing HR systems are external shocks like Covid. instead, HR systems should chang eto fit company priorities
netflix example
originally DVD-by-mail company but pivoted to streaming. changed values and HR policies accordingly to have strong strategic alignment
aspects of organizational culture
head: strategic thinking, intellectual rigor
heart: values, principles, emotional commitments
hands: technical and operational capabilities
elements that shape culture
leadership behavior, communication tone, team rituals, performance metrics, symbols, industry sector, performance reviews, onboarding, recognition practices
effective HRMS policies and practices
tailored to reflect and enable the company’s business model, competitive strategy, and desired culture
strategic HRMS core practices
job design, recruitment and selection, training and development, compensation and benefits, performance evaluation and promotion, dismissal and downsizing
SAP autism at work initiative
started under the idea that if managed differently, those on the spectrum could be valuable employees
elements needed for an organization to survive and thrive
competitive advantage, operations, valuable assets, human capital
CEO’s 4 step strategy framework
define strategic priorities, identify strategic roles, define core competencies, design practices with strategic intent
dandelion principle
dandelions are viewed as weeds in a lawn but can thrive elsewhere, employees with atypical skills or neurodiverse traits can add significant value if they are in the right environment
context vs inherent value
Recognize that perceived deficits may be contextual rather inherent
strength based management
Focus on individual strengths than standardized job requirements
environmental adaptation
Modify the work environment rather than expecting employees to adapt
value cultivating
Deliberately access unique perspectives that drive innovation
costco case of strong culture leading to strong performance
provides professional development opportunities for employees, generous pay and benefits, good time off
organizational culture
refers to a system of shared assumptions, values, and beliefs that indicate what is appropriate and inappropriate behavior within a given organization
when do people become more aware of an org’s culture?
when they are comparing across different orgs that they have experienced
why does organizational culture matter
could be related to increased performance and could create a competitive advantage, also effective control mechanism for dictating employee behavior
assumptions
Taken for granted beliefs about human nature and reality.
values
shared principles, standards, and goals
artifacts
visible and tangible elements of culture (ex. walking to the sky monument)
innovative culture
flexible, adaptable, experiment with new ideas, incentivize innovation (ex. Snap). flat hierarchy
aggressive cultures
value outperforming competitors (ex. nike). may fall short in CSR
outcome oriented cultures
emphasize achievements, results, and and actions. rewards are tied to performance indicators such as commissions on sales
stable cultures
emphasize predictable, rule oriented, and bureaucratic processes, and adherence to rules and regulations. ill suited for changing and dynamic environment.
people oriented cultures
value fairness, supportiveness, and respecting individual rights. create an environment where work is fun. results in loow employee turnover
team oriented cultures
emphasize coordination and collaboration among employees
detail oriented culture
emphasize precision and attention to detail, data driven
service culture (not a dimension technically)
emphasizes hgi quality service to customers
safety culture
emphasizes safety as a strong workplace norm (ex. pilot, roofer, fisher)
strong culture
culture shared by organizational members. liabilities include difficulty changing established organizational behaviors and issues with mergers
subculture
set of values unique to a limited cross section of the org
counterculture
shared values and beliefs that are in direct opposition to the values of the broader organizational culture
aspects of culture creation
founder values and preferences, industry demands, early values, goals and assumptions
aspects of culture maintenance
attraction-selection-attrition, new employee onboarding, leadership, reward systems
attraction selection attrition
once new employees are hired, the company assimilates new employees and teaches them the way things are done in the organization
elements of employee onboarding
clarity: understanding roles and responsibilities of the job
confidence: learning new tasks and believing you can master them
connection: building relationships and feeling liked/accepted by others
newcomer adjustment
Refers to feelings of high levels of role clarity, confidence, and social acceptance.
actions of successful new employees
proactive, seek feedback, and build strong relationships
formal orientation program
Program that indoctrinates new employees to the company culture, and introduces them to their new jobs and colleagues.
reward systems
could reward results or behaviors or rankings/ratings
mission statement
statement of purpose, describing who the company is and what it does
rituals
repetitive activities within an organization that have symbolic meaning
rules and policies
Policies about issues such as
decision making, human resources, and employee privacy reveal what the company values and
emphasizes
physical layout
A company’s building, including the layout of employee offices, common areas, and other work
spaces, communicates important messages about a company’s culture
stories
how organizations communicate their culture to
new employees and organizational members
steps of culture change
create a sense of urgency
change leaders and other key plaeyrs
role model
train
change the reward system
create new stories and symbols
functional structure
groups based on job responsibilities (marketing, research, HR)
divisional structure
based on product or location (each division has an expert in one function)
functions of organizational culture
control systems: influences decisions and behaviors
social glue: connects and bonds people
sensemaking: helps people understnad what is happening in the org and why
vacuous culture
members understand what top management values but attach no strong approval or disapproval to these beliefs or behaviors can be characterized as having high consensus but low intensity.
warring functions
organization could exhibit high intensity but no consensus such that some sub-groups care deeply about a norm that is different from one that is intensely held by other subgroups.
leadership practices of virtual team leaders
articulate a vision, communicate it with passion, form coalition of believers, align othres behind the vision
centralization
the degree to which decision-making authority is concentrated at higher levels in
an organization
centralized company
many important decisions are made at higher levels of
the hierarchy, more efficient
decentralized company
decisions are made and problems are solved at
lower levels by employees who are closer to the problem in question, boosts employee independence and morale
formalization
the extent to which policies, procedures, job descriptions, and rules are written
and explicitly articulated
tall structures
several layers of management between frontline employees and
the top level
flat structure
Organizations with few layers, often with large numbers of employees reporting to a single manager.
span of control
number of emplyees reporting to a single manager
holacracy
employees work in self managing teams without having a formal manager
mechanistic structure
highly formalized and centalized
organic structures
flexible, decentralized structures with low levels of formalization
matrix organization
employees reporting to department managers are also pooled together to form project or product teams
unity of command
format where each person reports to only one manager
boundaryless org
eliminates traditional barriers between departments, as
well as barriers between the organization and the external environment
modular org
all the nonessen-
tial functions are outsourced
strategic alliance
two or more companies find
an area of collaboration and combine their efforts to create a partnership that is beneficial for both
parties
learning organization
acquiring knowledge and changing behavior as a result of
the newly gained knowledge is part of an organization’s design