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Organizational behavior
the systematic study and application of knowledge about how individuals and groups act within organizations
Organization
an organized body of people with a particular purpose, espically a business, society, association, etc.
What are the responsibilities of the top management of an organization?
set the direction of the organization, establish organizational culture, monitor the business environment
What are the responsibilities of the middle management of an organization?
set objective consistent with higher mgmt goals, plan and allocate resources to meet objectives, coordinate and link departments and divisions, monitor performance of these units, implement strategies generated by higher mgmt
What are the responsibilities of first-line management of an organization?
daily contact with team members/employees, encourage monitor and reward performance, train employees to do their jobs, make detailed schedules and operating plans
What are the responsibilities of employees/team members of an organization?
facilitate team works, collaborate with each other, manage relationships outside their work group, solve problems
Why does Organizational Behavior matter to potential employers/organizations?
attracting top talent, selecting the right talent, keeping their top talent (moitvating, satisfied employees, benefit from diverse set of employees)
Why does Organizational Behvaior matter to you?
getting along with others, lowering stress, building an effective network, analyzing business problems, find the right ‘fit’
How do researchers study OB?
form hypotheses, set out to understand relationships among different variables, use different research methods to examine these relationships and their hypotheses
Surverys
individuals asked open- or closed-ended questions
Field Studies
conducted in actual organizations, often surveying actual employees- hard to establish causality, more rare but sometimes experiments can be used
Laboratory Studies
controlled conditions provide high degree of internal validity but potientally low generalizability, uses experimental and control groups to establish causeality
What is the primary method used to study OB?
surverys
Case Studies
In-depth description of a single company or industry, lots of nuance but difficult to generalize
Meta-Analysis
technique used to quantitatively summarize research on a given topic, only has good as the study on which it is based
Machine Learning
algorithms generate and update models based on large amounts of available data, needed to be used with care if researchers are to understand why
Strategy
overall plan for a company; clarifies how the company will serve its customers and position itself against competitors
What management typically formulates the organizaitonal strategy?
CEO and/or Top Management
Resources
the assets, capabilities, processes, information, and knowledge that the organization controls
Competitive Advantage
providing greater value for customers than competitors can
Sustainable Competitive Advantage
a competitive advantage that other companies have tries unsuccessfully to duplicate
External Environment
all events outside a company that have the potential to influence it
What are some factors that may be general environments?
economy, technology, political/legal trends, sociocultural trends
What are some factors that may be specific environemnts?
Competition, customers, advocacy groups, industry regulations, suppliers
Uncertainty
the extent to which managers can understand or predict which environmental changes and trends will affect their businesses
Environmental Change
rate at which a company’s general and specific environments change (stable or dynamic)
In a stable environment, rate of change is _________.
slow
In a dynamic environment, rate of change is _________.
fast
Resource Complexity
number and intensity of external factors in the environment that affect organizations (simple environment vs complex environment)
Resource Scarcity
the abundance or shortage of critical organizational resources in an organization’s external environment
High Uncertainty
high change, complexity and resource scarcity
Organizational Structure
determines how the work of people and teams are coordinated
What does organizational structure establish?
reporting relationships, formal communication channels, and interdependencies (links between people’s jobs)
Span of Control
number of employees reporting to a single manager
Tall structures have a _____ span of control
smaller
Flat Structures have a ______ span of control.
wider
Tall structures have ______ layers of management between frontline employees and the top level.
more
Flat structures have ______ layers of management between frontline employees and the top level.
few
Centralization
degree to which decision-making authority is concentrated at higher organizational levels
Which hierarchical structure has more opportunities to monitor and support?
tall
In centralized companies, important decisions are:
made at higher levels
In decentralized companies:
solved at lower levels by those closer to the problem
Which centralization degree is better for more efficient operations?
centralized companies
Which centralization degree is better for problem-solving and creativity?
decentralized companies
Which centralization degree has been reported to be associated with greater employee exhaustion?
centralized companies
Formalization
extent to which policies, procedures, job descriptions, and rules are explicitly articulated
In organizations with greater formalization, employees have ______ autonomy to make decisions on a case-by-case basis.
little
What are some advantages of formalization?
leads to a consistency of behavior
clear approach to problem-solving
What are some disadvantages to formalization?
slower pace decision making
reduced innovativeness
reduced motivation and job satisfaction
lack of employee empowerment to solve customer problems
Mechanistic Structures
highly formalized and centralized
Organic Structures
flexible, decentralized structures with low levels of formalization
Functional Structures
group jobs based on similarity in functions (i.e. the specialties of employees)
Divisional Structures
arranged by unique products, services, customers, or geographic locations
Hybrid Form Structures
dedicated functional people for different divisions (i.e., HR business partners)
Lewin’s Model for organizational change
unfreezing, change, refreezing
What is the unfreezing step of lewin’s model for managing organizational change?
believe that change is needed (ensures that employees are ready for change)
What is the change step of lewin’s model for managing organizational change?
implement new behaviours and work practices
What is the refreezing step of lewin’s model for managing organizational change?
support and reinforce new changes (ensures that the change becomes permanent)
What are the first four steps of managing change the traditional way? (unfreeze)
establish a great enough sense of urgency
create a powerful coalition (guiding team)
have a compelling vision
communicate the vision by a factor of ten
What are the fifth and sixth steps of management change the traditional way? (change)
empower action - removing obstacles
create short-term wins
What are the seventh and eighth steps of management change the traditional way? (refreeze)
don’t declare victory too soon
anchor changes in the corporation’s culture
Why do people resist change?
selft-interedt, misunderstanding and distrust, general intolerance for change, legitimate concerns
How should resistance be managed?
education, communication, participation and negotiation, coercion
Globalization
the increasing interconnectedness of economies, cultures, and societies
Business Ethics
applying ethical principles to situations that arise at work
Corporate Social Responsibility
the idea that a good corporate citizen voluntarily adopts ethical, sustainable, and responsible business practices
Matrix Organizations
cross a traditional functional structure with a product structure
holacracy
a structure where employees work in self-managing teams without having a formal manager
Unity of Command
a situation where each person reports to a single manager. Traditional organizations are based on the principle of unity of command, while matrix organizations do not follow this principle.
Boundaryless Organization
refers to an organization that eliminates traditional barriers between departments, as well as barriers between the organization and the external environment
Modular Organization
an organization where all the nonessential functions are outsourced
Strategic Alliances
a form of boundaryless design where two or more companies find an area of collaboration and combine their efforts to create a partnership that is beneficial for both parties
Fully Remote
organizing work with the assumption that employees will work from anywhere, without being tied to a physical office
Learning Organization
an organization where acquiring knowledge and changing behavior as a result of the newly acquired knowledge is part of an organization’s design