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7th Edition
OHT 2.1
Essential Reading
CHAPTER 2
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A. WHAT IS AN ORGANISATION?
! they are composed of individuals and groups; ! they exist in order to try to achieve certain goals; ! they involve specialisation, and require rational co-ordination and control; ! they have some degree of permanence.
OHT 2.5
A Definition
Organisations comprise two or more people engaged in a systematic and coordinated effort, persistently over a period of time, in pursuit of goals which convert resources into goods and/or services which are needed by consumers.
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It is usual to consider the environment through a form of analysis known as PEST from the initial letters of the four categories: ! Political ! Economic ! Social ! Technological
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Although they serve a key function in organisations, that is not to say that goals are not without their problems. These tend to revolve around three areas: ! difficulties in formulation; ! coping with change; ! goal conflicts between goals, in interpretation and in commitment.
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The behaviour of people The process of management The organisational context of management Organisational processes and the execution of work Interactions with the external environment of which the organisation is part
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The meaning of OB
OB is a convenient shorthand that refers to the numerous interrelated influences on, and patterns of behaviour of people within organisations
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The meaning of OB
Wilson challenges what constitutes OB & questions whether we should be interested only in behaviour that happens within the organisation. She suggests that we need to look outside of what is normally thought of as organisations & how we usually think of work
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The meaning of OB
Wilson believes that we can gain an insight into organisational life and behaviour by looking at: - what happens in rest & play - emotions & feelings - less organised work - the content in which work is deferred to as mens work - the meaning of work for the unemployed
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Influences on OB
Individuals
Groups The organisation itself
The environment
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Individuals
Are a central feature of OB Are a necessary part of any behavioural set Bring to the organisation their personality, skills and attributes, values, needs and expectations Can create conflict if their needs and the demands of the organisation are incompatible
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Management and the individual Managements task is to integrate the individual & the organisation, providing a working environment that permits the satisfaction of individual needs & attainment of organisation goals
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Groups
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Groups Can have a major influence on behaviour and performance of individual members
Have their own structures and functions, role relationships and influences and pressure An understanding of group structure and behaviour complements a knowledge of individual behaviour
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The organisation
Individuals & groups interact within the structure of the formal organisation Organisational structure is created by management to: - establish a relationship between individuals & groups - provide order and systems to direct efforts of the organisation into goal seeking activities
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The organisation The formal structure allows people/groups to carry out organisational activities to achieve aims & objectives
Behaviour is affected by patterns of organisational structure
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Environment
The environment affects the organisation through: technological & scientific development economic activity social & cultural influences government activities
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Environment
The effects of the operation of the organisation within its environment are reflected in the: management of opportunities & risks successful achievement of organisational aims & objectives
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The increasing rate of change in environmental factors highlights the need to study the total organisation & the processes used to adapt to external demands
Example: globalisation has placed greater emphasis on organisational processes rather than organisational functions
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Psychological
Looks at individuals within the organisation A narrow approach
Sociological
Looks at human behaviour in society
A broader approach
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One way to recognise why people behave as they do at work is to view an organisation as an iceberg What sinks a ship isnt always what sailors can see, but what they cant see
Hellriegal, Slocum, & Woodman
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Figure 2.3
Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western Publishing (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800 730 2215.
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Figure 2.3
Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western Publishing (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800 730 2215.
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Figure 2.3
Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western Publishing (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800 730 2215.
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Customers Technology Formal goals Organisational design Financial resources Physical facilities Rules & regulations Surface competencies & skills
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Attitudes Communication patterns Informal team processes Personality Conflict Political behaviour Underlying competencies & skills
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Organisational metaphors
Machines Organisms Brains Cultures Political systems Psychic prisons Flux & transformation Instruments of domination
Morgan
The metaphors are not fixed categories and are not mutually exclusive
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Orientations to work
Instrumental orientation individuals view work as a means to an end, there is a calculative or economic involvement with work
Bureaucratic orientation work is defined as a central life issue, there is a sense of obligation to the work of the organisation & positive involvement in terms of a career structure Solidaristic orientation work situation is viewed in terms of group activities, there is an ego involvement with work groups rather than with the organisation itself, work is more than just a means to an end
Goldthorpe et al.
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Division of labour work has been fractured in task and sub divided into special sub tasks
Destruction of continuity in employment individuals are likely to re-enter the job market several times, jobs are no longer for life
Herman
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Figure 2.4
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Formula for balancing unwritten needs of employees with the needs of the organisation
Caring demonstrating genuine concern for individuals Communicating really talking about what the company hopes to achieve Listening hearing not only the words but also what lies behind the words Knowing - those who work for you, their families, personal wishes, desires & ambitions Rewarding money is not always necessary
Stalker
OHT 2.41
Moral contract
Increasing global competition & turbulent change requires a management philosophy grounded in a different moral contract
People should not be seen as a corporate asset from which value can be appropriated, but as a responsibility and a resource to be added to This demands more from individuals to abandon the idea of lifetime employment & embrace the concept of continuous learning & personal development
Ghosal et al.
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Improvements in international communication facilities International competitive pressures The spread of production methods & other business processes across nations & regions International business activity, e.g. overseas franchising or licensing agreements
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Figure 2.6
Source: Reproduced with permission from F. Trompenaars and C. Hampden-Turner, Riding the Waves of Culture, Second edition, Nicholas Brealey (1999), p.22.
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Figure 2.8
Source: Reproduced with permission from Ian Brooks, Organisational Behaviour: Individuals, Groups and Organisation, Second edition, Financial Times Prentice Hall (2003), p.266, with permission from Pearson Education Ltd.
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Relationship & rules Individual or collective preferences Type of societies - neutral or emotional societies Diffuse or specific culture Achievement-based societies Time Attitude to the environment
Trompenaar
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The study of organisational behaviour includes an understanding of which of the following: (a) the process of management. (b) organisational processes and the execution of work. (c) interactions with the external environment. (d) all of the above.