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C H A P T E R

O N E

Introduction
to the Field of
Organizational Behaviour
McShane 5th Canadian Edition 1 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Four Seasons and OB

Four Seasons Hotels and


Resorts has leveraged the
power of organizational
behaviour to become one of
the worlds top luxury hotels
as well as one of the best
places to work.
M. Tama, National Post

McShane 5th Canadian Edition 2 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
What are Organizations?

Groups of people who work


interdependently toward
some purpose
Structured patterns of
interaction
Coordinated tasks
Work toward some
purpose
M. Tama, National Post

McShane 5th Canadian Edition 3 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Why Study Organizational Behaviour

Understand
organizational
events

Organizational
Behaviour
Research
Influence Predict
organizational organizational
events events

McShane 5th Canadian Edition 4 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Trends: Globalization

Economic, social, and cultural


connectivity with people in other parts of
the world
Globalization effects on organizations:
New organizational structures
Different forms of communication
Greater workflorce diversity
More competitive pressures and demands
on employees

McShane 5th Canadian Edition 5 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Trends: Information Technology

Re-designs jobs
Knowledge management
Telework
Virtual Teams

McShane 5th Canadian Edition 6 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Trends: Workplace Diversity

Primary and secondary diversity


More women in workforce and
professions
Different needs of Gen-X/Gen-Y and
baby-boomers
Diversity has advantages, but firms
need to adjust

McShane 5th Canadian Edition 7 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Trends: Employment Relationship

Employability
New deal employment relationship
Continuously learn new skills

Contingent work
No contract for long-term employment
Minimum hours of work vary

McShane 5th Canadian Edition 8 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Employability vs Job Security

Job Security Employability


Lifetime job security Limited job security

Job are permanent Jobs are temporary

Company manages Career self-


career management

Low emphasis on skill High emphasis on skill


development development

McShane 5th Canadian Edition 9 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Trends: Workplace Values & Ethics

Values
Guide our decisions and actions

Ethics
The study of moral principles or values that
determine whether actions are right or
wrong and outcomes are good or bad

McShane 5th Canadian Edition 10 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Corporate Social Responsibility

Corporate Social Responsibility


Organizations moral obligation toward its
stakeholders

Stakeholders
Shareholders, customers, suppliers,
governments etc.

Triple bottom line philosophy


Economic, Social & Environmental

McShane 5th Canadian Edition 11 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Organizational Behaviour Anchors

Multidisciplinary
anchor

Systematic
Open systems Organizational research
anchor
Behaviour anchor
Anchors
Multiple levels
Contingency
of analysis
anchor
anchor

McShane 5th Canadian Edition 12 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Open Systems Anchor of OB

Feedback Feedback

Subsystem Subsystem

Inputs Organization Outputs

Subsystem Subsystem

McShane 5th Canadian Edition 13 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Knowledge Management Defined

Any structured activity that


improves an organizations
capacity to acquire, share,
and use knowledge for its
survival and success

McShane 5th Canadian Edition 14 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Intellectual Capital

Human capital
Knowledge that employees possess
and generate

Structural capital
Knowledge captured in systems and
structures

Relationship capital
Value derived from satisfied customers,
reliable suppliers, and others

McShane 5th Canadian Edition 15 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Knowledge Management at Clarica

Clarica Life Insurance


Company uses its company-
wide Intranet (called Clarica
Connects) to help agents
develop and share their
expertise in ways that
generate innovative
Courtesy of Clarica
solutions.

McShane 5th Canadian Edition 16 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Knowledge Management Processes

Knowledge acquisition
Grafting, learning,
experimentation

Knowledge sharing
Communication
Communities of practice

Knowledge use
Courtesy of Clarica
Awareness
Freedom to apply
knowledge
McShane 5th Canadian Edition 17 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Organizational Memory

The storage and preservation of


intellectual capital
Retain intellectual capital by:
Keeping knowledgeable employees
Transferring knowledge to others
Transferring human capital to structural
capital

Successful companies also unlearn.

McShane 5th Canadian Edition 18 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
C H A P T E R
O N E

Introduction
to the Field of
Organizational Behaviour
McShane 5th Canadian Edition 19 Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.