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    Overview of HBO

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    Module Outline

    What is Organizational Behavior (OB)?

    Goals of OB

    Importance of OB The Nature of OB, People and the

    Organization

    Historical Roots of OB Models of Organizational Behavior

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    Definition:Organizational Behavior

    OB is the systematic study and carefulapplication of knowledge about how

    people -- as individuals and as groups --act within organizations (Newstrom)

    It strives to identify ways in which people

    can act more effectively withinorganizations.

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    3 Goals of OB

    1. Describe systematically how peoplebehave under a variety of conditions

    2. Understand why people behave asthey do

    3. Predict future employee behaviorsbased on their past behavior andexpected responses of people

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    Fundamental Question:Why is it important to study HBO?

    Consider the following:

    Most adults spend a big part of their lives working inorganizations

    Many of our activities are regulated by organizationslike government

    Organizations support the development of theeconomy and society

    Because Organizations influence our lives somuch, we have every reason to be concernedabout how and why those organizations function

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    Organizational Behavior is

    INTERESTING

    Because its about PEOPLE and HUMAN NATURE

    IMPORTANT

    Because what happens to organizations has aprofound impact on people, communities and societyat large

    MAKES A DIFFERENCE

    Because how people behave and act in anorganization can impact a companys performance

    and bottomline

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    The Nature of People

    (Key Concepts) Individual Differences -- people have much in common

    but they are also individually unique Perception -- people look at the world and see things

    differently

    A Whole Person -- When an organization hires a person,they actually employ the whole person (not just his brainsor skills)

    Motivated Behavior -- People need to be motivated toimprove and do their best!

    Desire for Involvement -- Employees by nature want toget involved (in work, activities, contributing to goals andsuccess)

    Value of the Person -- People deserve to be treateddifferently from other factors of production (land, capitaland technology)

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    Why is an ORGANIZATION

    a SOCIAL INVENTION?

    It is because their essential characteristic

    is the coordinated presence of PEOPLE,not necessarily THINGS.

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    The Nature of Organizations

    (Key Concepts)

    Social Systems -- Organizations aresocial systems governed by social lawsand psychological laws

    Mutual Interest -- Organizations needpeople and people need organizations

    Ethics -- To attract and keep employees,Organizations must treat employees in anethical manner

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    In an organization, it is mutual interest which links theemployees and the organization together

    EmployeeGoals

    Organizational

    Goals

    SuperordinateGoal of

    Mutual Interest

    Ethics

    MutualAccomplishment

    of Goals

    guides

    links

    links

    Employee

    Organization

    Society

    benefit

    s

    resulting in mutual achievement of goals which eventually

    benefits employees, the organization and society at large

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    Historical Roots of OB

    Scientific Management: Took place in the 1900s Movement led by Frederick Taylor (Father of Modern

    Management)

    Taylor noticed a phenomenon called soldiering(employees taking it easy on the job) He studied jobs of people and developed a

    standardized method for performing jobs Used money and productivity as the main

    motivators for improving performance (i.e., paidworkers piecemeal, based on output/results) His theory was widely accepted although it was quite

    narrowWHY???

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    Historical Roots of OB

    Classical Organization Theory: Major proponents were Henri Fayol and Max Weber Main concern was how to structure organizations

    effectively

    Led to the concept of bureaucracy and spawned theadoption of organizational hierarchies (bureaucraticorganizations)

    Espoused the universal approach (adoption of jobroles and division of labor as a means to achieve

    standardization and promote mass production) In contrast to Webers theory, modern organizational

    theorists recognize different types of org structuresmay be appropriate for different situations

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    Historical Roots of OB

    Hawthorne Studies: Conducted between 1927-1932 at Western Electrics Hawthorne

    plant near Chicago led by Elton Mayo of Harvard

    Premised on: people responding primarily to their socialenvironment.

    They studied the effects of better lighting on work areas onworkers better lighting = better production

    They also studied the effects of piecemeal wages on meetingwork quotas -- chiselers (not meeting quota) and wage-busters (those surpassing)

    Soon, workers tried to just limit their outputs to the quota (toavoid being ostracized by the group)

    The Hawthorne Studies showed that the HUMAN ELEMENTwas actually more important than previously recognized

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    Human Relations Movement:

    Premises of the HR Movement are as follows:

    People respond primarily to their social environment

    Motivation depends more on social than economic needs

    Satisfied employees work harder than unsatisfied employees

    Fulfillment of employee needs is the GOAL towards whichemployees are motivated

    Main Proponents: Douglas McGregor (Human Side of

    Enterprise, Theory X and Y), Abraham Maslow(Hierarchy of Needs)

    Historical Roots of OB

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    An Organizational Behavior SystemManagements

    Philosophy - Values - Vision - Mission - Goals

    FormalOrganization

    OrganizationalCulture

    SocialEnvironment

    InformalOrganization

    Leadership - Communication - Group Dynamics

    Quality of Work Life (QWL)

    Motivation

    Outcomes:-Performance-Employee Satisfaction

    -Personal Growth and Development

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    Key Points of theOrganizational Behavior System

    An organizations management defines the philosophies,values, vision, mission and goals of the organization

    The social environment of the firm, its managementphilosophies and goals, and its formal and informalorganizations help define the organizations corporateculture.

    Leadership, Communication and Group Dynamics defineand drive the Quality of Work Life of employees in anorganization. These are key to achieving motivation ofemployees.

    When employees are motivated, the outcomes are: highperformance, employee satisfaction, and personalgrowth and development these help drive theachievement of the organizations vision, mission andgoals

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    Models of Organizational Behavior

    McGregors Theory X and Theory Y Model

    Theory X Theory Y

    The typical person dislikes work and will avoidit if possible

    Work is as natural as play or rest to mostpeople

    The typical person lacks responsibility, haslittle ambition, and seeks security above all

    People are not inherently lazy. They havebecome that way because of experience.

    Most people must be coerced, controlled andthreatened with punishment to get them towork

    People will exercise self-direction and self-control in the service of objectives to whichthey are committed.

    People have potential. Under properconditions, they learn to accept and seekresponsibility. They have imagination,ingenuity and creativity that can be appliedto work.

    Managerial Role: To COERCE &

    CONTROL

    Managerial Role: To DEVELOP and

    INSPIRE

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    Autocratic Model

    Became the prevailing model during theindustrial revolution

    Based on power -- those in command have the

    power to demand Manager is the authority figure who delegateswork

    Assumes employees have to be directed and

    controlled Management does the thinking, employees do

    the work execution

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    Custodial Model

    Developed in the 1920s and 1930s

    Was initially referred to as paternalism

    Employers regarded as benevolent

    fathers caring and taking care ofemployees financial needs

    Orientation is Economic towards

    money to pay wages Result is employees are dependent on the

    organization for subsistence

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    Supportive Model

    Had its origins from Principle of SupportiveRelationships by Rensis Likert

    Depends on Leadership instead of Power through leadership, management provides

    employees a climate to help them do their tasksand grow

    Managements orientation is to support theemployees job performance rather than simply

    support him with wages and benefits Psychological Result: feeling of participation andtask involvement among employees

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    Collegial Model

    Collegial relates to body of people working

    together cooperatively embodying theTEAM CONCEPT

    Depends on Managements building a feeling ofPARTNERSHIP WITH EMPLOYEES

    Orientation is towards achieving TEAMWORK

    Psychological result is SELF-DISCIPLINE

    individuals feel responsible for their actions andthose of the rest of the team

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    Systems Model

    Basis of the model is developing trust,community, and employees finding meaning inwhat they do

    Managerial orientation is towards caring for

    employees and making them understand howthey are all an important part of the wholesystem

    The role of the manager becomes one of

    facilitating employee accomplishments through avariety of ways Psychological result for employees is that of

    self-motivation and developing sense ofownership

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    How The 5 Models ofOrganizational Behavior Compare

    Autocratic Custodial Supportive Collegial System

    Basis ofModel

    Power EconomicResources

    Leadership Partnership Trust,Community,Meaning

    ManagerialOrientation

    Authority Money Support Teamwork Caring,Compassion

    EmployeeOrientation

    Obedience Security andbenefits

    JobPerformance

    ResponsibleBehavior

    EmployeePsychologicalResult

    Dependenceon Boss

    DependenceonOrganization

    Participation Self-discipline Self-motivation

    Employeeneeds met

    Subsistence Security Status andRecognition

    Self-actualization

    Wide Range

    PerformanceResult

    Minimum Passivecooperation

    Awakeneddrives

    Moderateenthusiasm

    Passion andCommitmenttoorganizationalgoals