Chapter #1 summary
General background - Introduction
The first chapter provided a general opening for the book and provides an outline for the chapters to come. Apart of the appendix which details the history of OB (and seems highly relevant for us as it was part of first lesson slides) the chapter details the main challenges for organisational behaviour and spread them into 3 challenges (kindly find next) and focuses on each one and details the manager’s responsibility in an organisation. Notes:
1) Structure is in the same order of the paragraphs in the book. 2) Cases are in greenish colour may be skipped as they are only there to emphasise a specific argument and not to suggest any new theory. Key Definitions (out of order)
1) Organisation - A collection of people who work together and coordinate their actions to achieve individual and organisational goals.
Example: Police forces, for example, are formed to achieve the goals of providing security for law abiding citizens and providing police officers with a secure, rewarding career.
2) Organisation behaviour - The study of factors that affect how individuals and groups act in organisations and how organisations respond to their environments. 3) Group - Two or more people who interact to achieve their goals. 4) Team – A group which its members work together and has a specific routines to achieve a common goal. 5) Managers – Persons who supervise the activities of one or more employees. 6) Organisational effectiveness - is the ability of an organisation to achieve its goals. Tools for managers to achieve effectiveness:
* A manager can work to raise an employee’s self-esteem or beliefs about his or her ability to accomplish a certain task in order to increase the employee’s productivity or job satisfaction. * A manager can change the reward system to change employees’ beliefs about the extent to which their rewards depend on their performance. * A manager can change the design of a person’s job or the rules and procedures for doing the job to reduce costs, make the task more enjoyable, or make the task easier to perform.
7) National culture - The set of values or beliefs that a society considers important and the norms of behaviour that are approved or sanctioned in that society.
Four principle functions or duties to help managers increase the organisation effectiveness 1. Planning – deciding how best to allocate and used resources to achieve organisational goals.
Example: southwest airline, which goal is to provide customers with low-priced air travel, uses only one kind of plane, the Boeing 737, to keep down operating, training, and maintenance costs.
2. Organising - Establishing a structure of relationships that dictates how members of an organisation work together to achieve organisational goals.
3. Leading – Encouraging and coordinating individuals and groups so that all organisational members are working to achieve the organisational goals.
4. Controlling – Monitoring and evaluating individuals, groups and organisational performance to see whether organisational goals are being achieved. The controlling function also allows managers to evaluate how well they are performing their planning, organising, and leading functions.
Examples for those 4 principles are demonstrated in Traders Joe’s example (Page 38) Traders joe’s is a supermarket chain established by Joe Coulombe in the late 60s. The chain was unable to compete with the growth of 7-11 that offered wider and cheaper brands of products. Joe decided to change his strategy and started to supply his clients with upscale products such as wine and gourmet food. The change worked out as the costumers loved this new upscale supermarket concept. Moreover selling those premium products were more profitable to sell. Joe knew that in order to expend his brand he needs to keep encouraging costumers to keep buying...
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