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Final Exam Notes Organizational Behaviour

Chapter 1 An Overview of Organizational Behaviour Organizational Behaviour is the study of o o o o o o o o o o People in organization settings Interaction between people and organizations Organizational characteristics

Scientific Management early 1900s Arose from an interest in efficiency Used to increase productivity Used piece rate systems, job redesign, rest breaks

Classical Organization Theory early 1900s Focus on organizational structure Bureaucratic model Logical rational efficient Ideal bureaucracy included o o Rules and procedures Distinct division of labour Hierarchy of authority Technical competence Segregation of ownership Rights and properties of position Documentation

Hawthorne StudiesUnexpected results made managers realize human element in behaviour Caused human relations movement

Human Relations Movement o o o o Employee satisfaction is key determinant of performance Theory X and Y X suggests people are lazy and do not like work/responsibility and need to directed Y suggests people are bright, committed to goal, seek responsibility in favourable situations, internally motivated and do not dislike work

Systems Perspective o An interrelated set of elements that function as a whole

Inputs from environment, organization transform inputs to outputs/ output from the system

Contingency Perspective o Organizational situations and outcomes are contingent on or influenced by other variables

Interactionalism Perspective o Individuals and situations interact continuously to determine individuals behaviour

Lecture 2 Managing People, Organizations, and Diversity Functions of Management o o o o o o o o o o o o o o o o o o o Planning determining how to get to an organizations future desired position Organizing designing jobs, grouping jobs into units, establishing authority Leading getting organizations members to work together toward goal Controlling monitoring and correcting actions

Resources Available Human Physical Information Financial Interpersonal Liaison, Figurehead, leader Decision-making entrepreneur Informational disseminator, spokesperson, monitor Diagnostic negotiator, resource allocator, disturbance handler,

Managerial Roles

Critical Managerial Skills necessary to understand cause and effect relationships and

recognize optimal solutions to problems Technical Human Conceptual used in abstract thinking and problem solving Downsizing and cutbacks reducing workforce, stress for those who remain Workforce diversity demographic differences, age gender language culture New workforce Generation Y, less willing to conform, commit to long term employment, prefer flexibility Organizational change

Diversity and Other Organizational Challenges

o o o o

Information Technology rapidly changing innovation, leaner organizations, flexible operations New ways of organizing flatter structures, less management, fewer rules, increased teams Environmental Challenges competitive strategy, globalization Cross-Cultural Differences/Similarities Invidualism/collectivism Masculinity Power distance Long/short term values

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Contemporary Ethical Issues pricing policies, executive compensation, environmental Information Technology Privacy

New Employment Relationships Knowledge workers Outsourcing Quality Productivity

Chapter 3 Foundations of Individual Behaviour Psychological Contracts A persons set of expectations regarding what he or she will contribute to the organization and what the organization, in return will provide to the individual o o Individual Contributions effort, ability, loyalty, skills, time Organizational Contributions pay, security, benefits, career opportunities, status OCEAN Emotional Intelligence ability to perceiver, express, assimilate, understand and regulate emotions as a means of promoting emotional and intellectual growth Personality Traits Locus of Control, Self-Efficacy, Authoritarianism, Machiavellianism, self-esteem, risk propensity Perception processes by which an individual becomes aware of and interprets information Attitudes complexes of beliefs and feelings about specific ideas, situations, other people o o Affect persons feelings toward something Cognition knowledge a person presumes to have about something

o -

Component of an attitude that guides a persons behaviour

Cognitive Dissonance anxiety a person experiences when he/she simultaneously possesses two sets of knowledge or perceptions that are contradictory or incongruent o Job satisfaction, Organizational Commitment

Organizational Justice o o o o Distributive Justice Procedural Justice Informational Justice Interpersonal Justice Workplace behaviour pattern of action by members that directly or indirectly affects organizational effectiveness o o o o Performance behaviours total st of work related behaviours that the organization expects the individual to display Dysfunctional behaviours those that detract from organizational performance Organizational Citizenship extent to which a persons behaviour makes a positive overall contribution to the organization

Types of Workplace Behaviour o

Chapter 4 Perspective on Motivation Motivation set of forces that leads people to behave in particular ways Motive factor that determines a persons choice of one course of action amongst many Theories o o o o o o o o Early Views Hedonism people seek pleasure and comfort and avoid pain Traditional Approach Scientific Management people are motivated by money Human Relations Approach Favourable employee attitudes in motivation to work hard Need Based Theories Hierarchy of needs ERG Dual-Structure Theory Reinforcement Theory and Behavioural Modification Positive Reinforcement reward or other desirable consequence that a person receives after exhibiting behaviour Negative Reinforcement (Avoidance) opportunity to avoid or escape from an unpleasant circumstance after exhibiting behaviour Extinction decrease frequency of behaviour by eliminating reward

Punishment unpleasant or aversive consequence that results from behaviour

OB Mod Works Best when Target behavior is easily measurable Has been successfully used to improve safety practices or reduce absenteeism It does not work when Measurement are unreliable Effective reinforcers are not available

Concerns over issues of manipulative and dehumanizing

Process Based Perspective on Motivation Equity Theory of Motivation Change inequity by Change inputs Change outcomes Change perceptions of self Change perceptions of others Leave situation Change comparisons

Expectancy theory Effort-to-performance expectancy Effort-to-outcome expectancy Valence, Outcome

Porter Lawler Model Satisfaction is determined by perceived equity of rewards and performance High performance level my lead to increased satisfaction if rewards are adequate

Chapter 5 Applied Motivation Technique and Job Design Goal Setting and Motivation o Goal Setting Theory Goal Specificity clarity and precision of goal Goal difficulty challenging and requires effort Goal acceptance extent to which a person accepts a goal as his/her Goal commitment extent to which a person is interested in goal

Management By Objectives Collaborative goal setting process organizational goals cascade down throughout the organization Requires customizing to each organization Can be effective for managing reward systems where the manager has individual interactions with each employee Top management commitment is critical

Work Design In Organizations o o o o o Job design how organizations define and structure their jobs Job Speciation Job rotation Job enlargement Job enrichment

Job Characteristics Theory o Critical psychological states o Experienced meaningfulness of the work Experienced responsibility for work outcomes Knowledge of results

Core job dimensions Skill variety Task identity Task significance Autonomy Feedback

Social Information may influence how individuals perceive and react to job characteristics Participation giving employees a voice in making decision about their own work Empowerment enabling workers to o o o Make decisions Set their own work goals Solve problems within their sphere of responsibly and authority

Alternative Work Arrangements o o o o Variable Work schedules Flexible Work schedules Job sharing Telecommuting

Chapter 8 Foundations of Interpersonal and Group Behaviour Group- Two or more people who interact with one another such that each person influences and is influenced by each other person Members o o o o o o o o o o o o Teams o o o Emphasize on concerted action more than group Have common goal Committed to o o o Common purpose Common performance goals Holding themselves mutually accountable Identify little or not at all with group May satisfy needs just by being members Behavioural of individual affects and is affected by group

Stages of Group Development Forming Storming Norming Performing Adjourning

Group Performance Factors Composition Size Norms Cohesiveness

Skills needs Technical Interpersonal Decisional Problem solving

Differ from groups by Active Goal Orientation Distribution of Authority Type of reward systems Distribution of authority

Benefits Enhance performance

o Costs o

Employee benefits Reduced costs Organizational enhancements

Difficulty in implementation Slowness of team development Potential premature abandonment of change

Types Quality circles, work teams, management teams, implementation teams

Chapter 9 Decision Making Decision Making process of choosing from among several alternatives Problem solving a special form of decision making in which the issue in unique, requires developing and evaluating alternatives Types of Decisions programmed, non-programmed, decisions rule Condition of certainty, risk, uncertainty Rational Approach o o o o o o o o o o o o o o o Strengths Forces the decision maker to consider a decision in a logical, sequential manner In depth analysis of alternatives enables the decision maker to choose on the basis of information Weaknesses Rigid underlying assumptions are often unrealistic Amount of available information is limited by time or cost constraints Managers ability to process information is limited Not all alternatives are easily quantifiable Not all outcomes are known due to the unpredictability of the future

Behavioural Approach Bounded rationality Sub-optimizing Satisficing Use of procedures and guidelines

Practical Combines advantageous of rational and behavioural Steps in the process are same as in rational but provide a more realistic framework

Personal Approach Janis-Mann Conflict Model o Deals with only important life decisions

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Decision makers can be ambivalent about alternatives Provides for self-reactions Fear of making wrong decision can be deterrent to making decision Procrastination and rationalization are considered Group polarization tendency for a groups average post discussion attitudes to be more extreme that its average pre-discussion attitudes Groupthink mode of thinking that occurs when members of a group are deeply involved in cohesive in-group and desire for unanimity offsets their motivation to appraise alternative courses of action

Group Decision Making

Group Problem Solving o o o Brain storming Nominal Group Technique Delphi Technique

Creativity o o Ability to generate new ideas or conceive new perspective on existing ideas Depends on o Background experiences Personal traits Cognitive abilities

Creative process Preparation Incubation Insight Verification

Chapter 11 Leadership Models and Concepts Leadership is a process and a property Trait Approaches to Leadership attempts to identify stable and enduring character traits that differentiate effectives leaders Michigan and Ohio Studies Situational Theories of Leadership o Fiedlers LPC Situational Favourableness Leader-member relations Leadership position power Task structure

o o

House Path-Goal Theory Types Directive Supportive Participative Achievement oriented

Situational Factors Task structure Formal authority system Primary work group

Personal Characteristics Locus of control Self-efficacy


Decision Tree

Chapter 14 Organizational Culture Organizational Culture defined by 3 common attributes o o o o o o o o o o o o o o o o some set of values held by individuals in a firm that help employees understand acceptability of actions Culture values are often taken for granted Communication of values

Ouchis Framework Type Z Firms Broad career paths Wholistic concern for people Committed to retaining employees Quantitative and qualitative information used to evaluate performance Informal/formal control Decision making in groups Committed to full information setting Expect individuals to take responsibility for decisions

Peters-Waterman Approach Bias for action Productivity throught people Sticking to the knitting Closeness to customers

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Autonomy and entrepreneurship Simple form/lean staff Simultaneously loose and tight Hands on management

Innovation Radical Systematic Incremental

Empowerment process of enabling workers to set their own work goals, make decisions and solve problem within their sphere of responsibility and authority o o o o Simple that bosses should quit bossing workers around Complex because managers and employees are typcailly not trained to do that Letting employees have control, responsibility and authority Liberating employees to do what is best for the company without fear of boss

Chapter 15 Organization Change Forces for Change People Information processing/communication Technology Competition Lewins Process Model o o o o o o o o o Unfreezing Change Refreezing

Continuous Change Process Model Perceives forces/trends that indicate need for change Defines goals for change Determines alternatives for change Selects the appropriate alternative Change Agent person responsible for managing a change effort Transition Management process of systematically planning, organizing and implement change

Issues in Change Process o Diagnosis collection of information relevant to impending organizational change Information obtained from observations, questionnaires, interviews For complex non routine problems, change agent is often used

Resistance Reasons Politics and self-interest Low individual tolerance for change Misunderstanding Lack of trust Different assessment of the situation A resistance organizational culture

Dealing with Resistance Supportive and patient supervision Special and desirable roles I nthe change process Incentives Good communication and accurate information Involvement and participation Transformational leaders