BOH4M – Grade 12 Business Leadership – Organizational Studies Notes

Thanks, Emily!

Chapter 1

Overview of the 21st century workplace

  • Organizations must adapt to rapidly changing society.
  • Economy is global and driven by innovation and technology.
  • High performing companies gain extraordinary results from people working for them.
  • Interdependent, knowledge based

The Challenges of Working in the New Economy

Intellectual capital

  • People are the ultimate foundations of organizational performance.
  • Intellectual capital is the collective brainpower or shared knowledge of a workforce that can be used to create value.
  • A knowledge worker adds to the intellectual capital of an organization


  • National boundaries of world business have largely disappeared.
  • Globalization is the worldwide interdependence of resource flows, product markets, and business competition that characterize the new economy.


  • Continuing transformation of the modern workplace through:
  • The Internet
  • World Wide Web
  • Computers
  • Information technology
  • Increasing demand for knowledge workers with the skills to fully utilize technology.


  • Workforce diversity reflects differences with respect to gender, age, race, ethnicity, religion, sexual orientation, and able-bodiedness.
  • A diverse and multicultural workforce both challenges and offers opportunities to employers.


  • Code of moral principles.
  • Society requires businesses to operate according to high moral standards.
  • Emphasis today on restoring the strength of corporate governance


  • Career of 21st century won’t be uniformly full-time and limited to a single large employer
  • Skills must be portable and always of current value

Organizations in the New Workplace

Critical skills for success in the new workplace …

  • Mastery
  • Contacts
  • Entrepreneurship
  • Love of technology
  • Marketing
  • Passion for renewal



  • A collection of people working together to achieve a common purpose.
  • Organizations provide useful goods and/or services that return value to society and satisfy customer needs.

Organizations are open systems

  • Composed of interrelated parts that function together to achieve a common purpose.
  • Interact with their environments.
  • Transform resource inputs into product outputs (goods and services).
  • Environmental feedback tells organization how well it is meeting the needs of customers and society.

Organizations as open systems

Organizational performance

  • Value is created when an organization’s operations adds value to the original cost of resource inputs.

When value creation occurs:

  • Businesses earn a profit.
  • Non-profit organizations add wealth to society.

Organizational performance


  • An overall measure of the quantity and quality of work performance with resource utilization taken into account.

Performance effectiveness

  • An output measure of task or goal accomplishment.

Performance efficiency

  • An input measure of the resource costs associated with goal accomplishment.

Productivity and the dimensions of Organizational performance

Workplace changes that provide a context for studying management …

  • Belief in human capital
  • Demise of “command-and-control”
  • Emphasis on teamwork
  • Pre-eminence of technology
  • Embrace of networking
  • New workforce expectations
  • Concern for work-life balance
  • Focus on speed

Who are Managers and What Do They Do

  • A manager is a person in an organization who supports and is responsible for the work of others.
  • The people who managers help are the ones whose tasks represent the real work of the organization.


Importance of human resources and managers …

  • “Toxic workplaces” treat employees as costs.
  • High performing organizations treat people as valuable strategic assets.
  • Managers must ensure that people are treated as strategic assets.

Levels of management:

  • Top managers — responsible for performance of an organization as a whole or for one of its larger parts.
  • Middle managers — in charge of relatively large departments or divisions.
  • Project managers __ coordinate complex projects with task deadlines.
  • Team leaders or supervisors — in charge of a small work group of non-managerial workers.

Responsibilities of team leaders:

  • Plan meetings and work schedules.
  • Clarify goals and tasks, and gather ideas for improvement.
  • Appraise performance and counsel team members.
  • Recommend pay raises and new assignments.
  • Recruit, develop, and train team members
  • Encourage high performance and teamwork.
  • Inform team members about organizational goals and expectations.
  • Inform higher levels of work unit needs and accomplishments.
  • Coordinate with others teams and support the rest of the organization.

Types of managers

  • Line managers are responsible for work activities that directly affect organization’s outputs.
  • Staff managers use technical expertise to advise and support the efforts of line workers.
  • Functional managers are responsible for a single area of activity.
  • General managers are responsible for more complex units that include many functional areas.
  • Administrators work in public and non-profit organizations.

Managerial performance and accountability

  • Accountability is the requirement of one person to answer to a higher authority for relevant performance results.
  • Effective managers fulfill performance accountability by helping others to achieve high performance outcomes and experience satisfaction in their work.

Quality of work life (QWL)

  • An indicator of the overall quality of human experiences in the workplace.

QWL indicators:

  • Fair pay
  • Safe working conditions
  • Opportunities to learn and use new skills
  • Room to grow and progress in a career
  • Protection of individual rights
  • Pride in work itself and in the organization

High performing managers …

  • Build working relationships with others.
  • Help others develop their skills and performance competencies.
  • Foster teamwork.
  • Create a work environment that is performance-driven and provides satisfaction for workers.

The organization as an upside-down pyramid

  • Each individual is a value-added worker. The organization viewed as an upside-down pyramid
  • A manager’s job is to support workers’ efforts.
  • The best managers are known for helping and supporting.

Management Process

  • Management is the process of planning, organizing, leading, and controlling the use of resources to accomplish performance goals.
  • All managers are responsible for the four functions.
  • The functions are carried on continually

Four functions of management.

Functions of management …


  • The process of setting objectives and determining what actions should be taken to accomplish them.


  • The process of assigning tasks, allocating resources, and arranging the coordinated activities of individuals and groups to implement plans.


  • The process of arousing people’s enthusiasm to work hard and direct their efforts to fulfill plans and accomplish objectives.


  • The process of measuring work performance, comparing results to objectives, and taking corrective action as needed.

Managerial activities and roles                                                                                        Mintzberg’s 10 managerial roles.

Interpersonal roles

  • Involve interactions with persons inside and outside the work unit.

Informational roles

  • Involve giving, receiving, and analyzing of information.

Decisional roles

  • Involve using information to make decisions in order to solve problems or address opportunities.

Characteristics of managerial work …

  • Managers work long hours.
  • Managers work at an intense pace.
  • Managers work at fragmented and varied tasks.
  • Managers work with many communication media.
  • Managers work largely through interpersonal relationships.

Managerial agendas and networks

Agenda setting

  • Development of action priorities for one’s job.
  • Include goals and plans that span long and short time frames.


  • Process of building and maintaining positive relationships with people whose help may be needed to implement one’s work agendas.

Essential Managerial Skills and Competencies

Essential managerial skills

  • Skill — the ability to translate knowledge into action that results in desired performance.
  • Technical skill — the ability to apply a special proficiency or expertise to perform particular tasks.
  • Human skill — the ability to work well in cooperation with others.
  • Conceptual skill — the ability to think critically and analytically to solve complex problems.

Katz’s essential managerial skills.

Managerial competency …

  • A skill-based capability that contributes to high performance in a management job.

Managerial competencies are implicit in:

  • Planning, organizing, leading, and controlling.
  • Informational, interpersonal, and decisional roles.
  • Agenda setting and networking.

Competencies for managerial success:

  • Communication
  • Teamwork
  • Self-management
  • Leadership
  • Critical thinking
  • Professionalism

Understanding Management from Theory to Practice.