Overview of HBO

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

Definition: Organizational Behavior

OB is the systematic study and careful application 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 within organizations.

3 Goals of OB
1. Describe systematically how people behave under a variety of conditions 2. Understand why people behave as they do 3. Predict future employee behaviors based on their past behavior and expected responses of people

Fundamental Question: Why is it important to study HBO?

Consider the following:
Most adults spend a big part of their lives working in organizations Many of our activities are regulated by organizations like government Organizations support the development of the economy and society

Because Organizations influence our lives so much, we have every reason to be concerned about how and why those organizations function

Organizational Behavior is
INTERESTING
Because its about PEOPLE and HUMAN NATURE

IMPORTANT
Because what happens to organizations has a profound impact on people, communities and society at large

MAKES A DIFFERENCE
Because how people behave and act in an organization can impact a companys performance and bottomline

The Nature of OB
Environment External Forces

Individuals

Individual-Organization Interface

Internal forces

The Organization

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 brains or skills) Motivated Behavior -- People need to be motivated to improve and do their best! Desire for Involvement -- Employees by nature want to get involved (in work, activities, contributing to goals and success) Value of the Person -- People deserve to be treated differently from other factors of production (land, capital and technology)

Why is an ORGANIZATION a SOCIAL INVENTION?

It is because their essential characteristic is the coordinated presence of PEOPLE, not necessarily THINGS.

The Nature of Organizations (Key Concepts)

Social Systems -- Organizations are social systems governed by social laws and psychological laws Mutual Interest -- Organizations need people and people need organizations Ethics -- To attract and keep employees, Organizations must treat employees in an ethical manner

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

Employee Goals

Ethics links guides Mutual Accomplishment of Goals benefits Superordinate Goal of Mutual Interest

Employee

Organization

Organizational Goals

links Society

resulting in mutual achievement of goals which eventually benefits employees, the organization and society at large

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., paid workers piecemeal, based on output/results) His theory was widely accepted although it was quite narrow WHY???

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 the adoption of organizational hierarchies (bureaucratic organizations) Espoused the universal approach (adoption of job roles 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 structures may be appropriate for different situations

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 social environment. They studied the effects of better lighting on work areas on workers better lighting = better production They also studied the effects of piecemeal wages on meeting work quotas -- chiselers (not meeting quota) and wagebusters (those surpassing) Soon, workers tried to just limit their outputs to the quota (to avoid being ostracized by the group) The Hawthorne Studies showed that the HUMAN ELEMENT was actually more important than previously recognized

Historical Roots of OB
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 which employees are motivated

Main Proponents: Douglas McGregor (Human Side of Enterprise, Theory X and Y), Abraham Maslow (Hierarchy of Needs)

An Organizational Behavior System

Managements Philosophy - Values - Vision - Mission - Goals
Formal Organization Informal Organization

Organizational Culture

Social Environment

Leadership - Communication - Group Dynamics

Quality of Work Life (QWL)

Motivation
Outcomes: -Performance -Employee Satisfaction -Personal Growth and Development

Key Points of the Organizational Behavior System

An organizations management defines the philosophies, values, vision, mission and goals of the organization The social environment of the firm, its management philosophies and goals, and its formal and informal organizations help define the organizations corporate culture. Leadership, Communication and Group Dynamics define and drive the Quality of Work Life of employees in an organization. These are key to achieving motivation of employees. When employees are motivated, the outcomes are: high performance, employee satisfaction, and personal growth and development these help drive the achievement of the organizations vision, mission and goals

Models of Organizational Behavior

McGregors Theory X and Theory Y Model
Theory X The typical person dislikes work and will avoid it if possible The typical person lacks responsibility, has little ambition, and seeks security above all Most people must be coerced, controlled and threatened with punishment to get them to work Theory Y Work is as natural as play or rest to most people People are not inherently lazy. They have become that way because of experience. People will exercise self-direction and selfcontrol in the service of objectives to which they are committed. People have potential. Under proper conditions, they learn to accept and seek responsibility. They have imagination, ingenuity and creativity that can be applied to work.

Managerial Role: To COERCE & CONTROL

Managerial Role: To DEVELOP and INSPIRE

Autocratic Model
Became the prevailing model during the industrial revolution Based on power -- those in command have the power to demand Manager is the authority figure who delegates work Assumes employees have to be directed and controlled Management does the thinking, employees do the work execution

Custodial Model
Developed in the 1920s and 1930s Was initially referred to as paternalism Employers regarded as benevolent fathers caring and taking care of employees financial needs Orientation is Economic towards money to pay wages Result is employees are dependent on the organization for subsistence

Supportive Model
Had its origins from Principle of Supportive Relationships by Rensis Likert Depends on Leadership instead of Power through leadership, management provides employees a climate to help them do their tasks and grow Managements orientation is to support the employees job performance rather than simply support him with wages and benefits Psychological Result: feeling of participation and task involvement among employees

Collegial Model
Collegial relates to body of people working together cooperatively embodying the TEAM CONCEPT Depends on Managements building a feeling of PARTNERSHIP WITH EMPLOYEES Orientation is towards achieving TEAMWORK Psychological result is SELF-DISCIPLINE individuals feel responsible for their actions and those of the rest of the team

Systems Model
Basis of the model is developing trust, community, and employees finding meaning in what they do Managerial orientation is towards caring for employees and making them understand how they are all an important part of the whole system The role of the manager becomes one of facilitating employee accomplishments through a variety of ways Psychological result for employees is that of self-motivation and developing sense of ownership

How The 5 Models of Organizational Behavior Compare

Autocratic Basis of Model Managerial Orientation Employee Orientation Employee Psychological Result Employee needs met Performance Result Power Custodial Economic Resources Money Supportive Leadership Collegial Partnership System Trust, Community, Meaning Caring, Compassion

Authority

Support

Teamwork

Obedience

Security and benefits Dependence on Organization Security

Job Performance Participation

Responsible Behavior Self-discipline Selfmotivation Wide Range

Dependence on Boss Subsistence

Status and Recognition Awakened drives

Selfactualization Moderate enthusiasm

Minimum

Passive cooperation

Passion and Commitment to organizational goals