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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