Work impacts people (resource theory)

People matter = cannot be imitated

- History (knowledge)
- Small decisions
- Socially complex resources (people interacting with each other = trust)
Companies - HR practices = increase survival rate
- However, some companies do not follow these practices
Business model -> EMPLOYEE PROFIT CHAIN MODEL (behaviour/attitude
employee--> customer impression --> increased revenue)

High performance management practices provide a number of important sources

for enhanced organizational performance:
people work harder because of the increased invovlvement and commitment that
comes from having more control and say in their work
people work smarter because they are encouraged to build skills and ocmpetence
people work more respinsibilty because more responsibility is placed in the hands of
employees farther down in the organization
Why people dont follow these suggestions
-1/8th =.5 x .5 x .5
Some people dont believe, some management is short term and do not see these
long term effects
Changed business model:
- tracked success from management behaviour through employee attitudes to
customer satisfaction and. ultimately financial performance
EMPLOYEE- CUSTOMER PROFIT CHAIN MODEL
- treatment you receive will affect your decision making
- How the employee treats the customer will impact an individual's
decision/purchase

- Example, ROGERS sucks balls

- Employee's attutyde/behaviour affects customer impression which affects revenue
growth
Characteristics of OB as a field:
1) seeks to improve the quality of life at work
2) OB recognizes the dynamic nature of organizations
3) OB uses an empirical
Scientific Management: how to reduce the amoubt of time to do work (SOLE
PURPOSE)
- shoveling efficiency: 21 pounds of shovel = THUS adjusted the shovel to be able to
only hold 21 lbs
Max Weber - bureaucracy
- removes people, no real concern for people, ignores the human side of people
- Things to be manipulated
Dysfunctional aspects of classical management
- Employee alienation
- Limits opportunities for innovation
- Creates systems resistant to change
- No incentives to go beyond minimum acceptable level
- Employee not aligned with organizational goals
Theory X:
- Assumptions about the average employee:
- Lazy, works as little as possible, lacks ambition, and dislikes responsiblity, selfcentered indiferent to organizational needs, and by nature, is resistant to change
- Gullible and not very bright
Management's job:
- direct, control, motivate, and modift employee behavior to fit the needs of the
organization

Theory Y: Human relation movement (what makes a person a good/bad worker)

- Assumptions about the average employee:
motivated, with potential for development
Capacity for assuming responsiblity
readiness....
The contemporary contingency approach
- "it depends"
Scientific method in OB research
- Theory: a set of statements about the inter-relationshups between concepts that
allow us to predict and explain various processes and outcomes must be testable
- hypothesis: formal statement of the expected relationship between two or more
variables
Example - smiling, someone can catch it emotions are contagious
Example - organization influence the behaviour of others
- hypothesis: store sales will be higher when store clerks are friendlier to the
customers
(smile - come and seek, frown - avoid)
variables and measurement
- independent var: the input that causes changes in the outcome of interest
- dependent var - the outcome that is expected to change as a result of changes in
the indep var "stores will be higher when store clerks are friendlier to the
customers"

Correlation coefficient
- direction (+/- only indiciate the direction)
- strength (magnitude of the number)

Results:
- negative correlation between clerk friendliness and store sales
- high sales means the store was really busy and the emplotees were too distressed
from being friendly
- .1 = weak, .3 = mod, .> 5 = strong