FUNDAMENTALS AND MODELS OF ORGANIZATION BEHAVIOUR

OBJECTIVE OF STUDY
Meaning of Human Resource Characteristics of Human Resource Meaning of organization Characteristics of Organization Introduction to Organization Behavior Meaning and definition of Organization Behavior Why do we study Organization Behavior? Contributing fields to Organization Behavior Level of Analysis- OB as useful tool Goals of organization Behavior Forces affecting affecting Organization Behavior Historical development of Human relation and Organization Behavior Models of Organizational Behavior Autocratic model Custodial model Supportive model Collegial model

William R. Tracey, in The Human Resources Glossary defines Human Resources as: The people that staff and operate an organization as contrasted with the financial and material resources of an organization. The organizational function that deals with the people ... The resource that resides in the knowledge, skills, and motivation of people. Human resource is the least mobile of the four factors of production, and it improves with age and experience, which no other resource can do. It is therefore regarded as the scarcest and most crucial productive resource.

INDIVIDUAL DIFFERENCE People have much in common , but each person in the world is also individually different. All people are different, and this diversity needs to be recognized and viewed as a valuable asset to organization. PERCEPTION People look at the world and see things differently. Even when presented with the same object, two people may view it in two different ways. Their views of their environment is filtered by perception. Managers must learn to except perceptual differences among their employees, accept people as emotional beings, and manage them in individual ways. A WHOLE PERSON Although some organizations may wish they could employ only a persons skill or brain, they actually employ a whole person rather than certain characteristics. Home life is different from work life. People function as total human beings.

MOTIVATED BEHAVIOUR Normal behaviour has certain causes. The cause may relate to a persons needs or the consequences that result from acts. In the case of needs, people are motivated not by what we think they ought to have but by what they themselves want. Motivation is essential to the operation of organizations. These resource cannot be put to use until they are released and guided by people who have been motivated. DESIRE FOR INVOLVEMENT Many employees today are actively seeking opportunities at work to become involved in relevant decisions, thereby contributing their talents and ideas to the organizations success. They hunger for the chance to share what they know and to learn from the experience. VALUE OF THE PERSON People deserve to be treated differently from other factors of production (land, capital, techno logy) because they are of a higher order in the universe. Because of this distinction, they want to be treated with caring, respect, and dignity; increasingly they demand such treatment from employer.

Meaning of organization A consciously coordinated social unit, composed of a group of people, which functions on a relatively continuous basis to achieve a common goal or set of goals.

CHARATERISTIC OF ORGANIZATIONS
SOCIAL SYSTEMS Organizations are social system. Their behaviour is influenced by their group as well as by their individual drives. There are two type of social system that exist in organization. One is formal social system, and the other is informal social system. All the parts of system are interdependent, and each part is subject to influence by any other part. MUTUAL INTEREST Organizations need people, and people need organization. Organizations have a human purpose. They are formed and maintained on the basis of some mutuality of interest among their participants. Managers need employees to help them reach individual objectives. ETHICS In order to attract and retain valuable employees , organizations must treat employees in an ethical fashion. Companies have established codes of ethics, publicized statements of ethical values, provided ethics training, rewarded employees for notable ethical behaviour , publicized positive role models and set up internal procedures to handle misconduct.

Organization behavior is the systematic study and careful application of knowledge about how people- as individual and as groups- act within organization. It strives to identify ways in which people can act more effectively. Organizational behavior can be defined as the study and application of knowledge about human behavior related to other elements of an organization such as structure, technology and social systems . (LM Prasad). Stephen P Robins defines Organizational behavior as a systematic study of the actions and attitudes that people exhibit within organizations.

WHY DO WE STUDY ORGANIZATION BEHAVIOR ?

To learn about oneself and how to deal with others One is part of an organization now, and will continue to be a part of various organizations. Organizations are increasingly expecting individuals to be able to work in teams, at least some of the time. Some of you may want to be managers or entrepreneurs.

CONTRIBUTING FIELDS TO ORGANIZATIONAL BEHAVIOR

Study of human behaviour in a particular situation and predicts actions of individuals theories on learning, motivation, personality, training and development, theories on individual decision making, leadership, job satisfaction, performance appraisal, attitude, ego state, job design, work stress and conflict management

Psychology

Sociology

Science of Sociology studies the impact of culture on group behaviour group-dynamics, roles that individual plays in the organization, communication, norms, status, power, conflict management, formal organization theory, group processes and group decision-making.

Political Science

Political science has contributed to the field of Organizational behaviour. Stability of government at national level is one major factor for promotion of international business, financial investments, expansion and employment.

Social Psychology

It is a subject where concept of psychology and sociology are blend to achieve better human behaviour in organization. manage change, group decision-making, communication and ability of people in the organization, to maintain social norms

It is a field of study relating to human activities in various cultural and environmental frameworks. The study is more relevant to organizational behaviour today due to globalization, mergers and acquisitions of various industries. Anthropology

LEVEL OF ANALYSIS- OB AN USEFUL TOOL

It helps manager look at the behaviour of individuals within an organizations.
It aids understanding of the complexities involved in interpersonal relationships, when two people interact. Organization behaviour is valuable for examining the dynamics of relationship within small groups, both formal groups and informal groups. When two or more groups need to coordinate their efforts, such as engineering and sales, managers become interested in intergroup relations that emerges. Organizations can also be viewed and managed as whole systems that have interorganizational relationship (e.g, mergers and joint venture)
ORGANIZATION

INTERGROUP

GROUP

INTERPERSONAL

INDIVIDUAL

GOALS OF ORGANIZATION BEHAVIOR

DESCRIBE The first objective is to describe , how people behave under variety of condition .

UNDERSTAND The second goal is to understand why people behave as they do. Managers would be highly frustrated if they could only talk about behaviour of employees, but not understand reason behind their actions. PREDICT Predicting future employee behaviour is another goal of organization behaviour. Managers would have capacity to predict which employee might be productive or which might be absent on certain day.
CONTROL The Final goal of organization behaviour is to control, at least partially and develop some human activity at work. Since Managers are held responsible for outcomes, they are vitally interested in being able to make impact on employees behaviour, skill development, team effort and productivity.

PEOPLE People make the internal social system. That system consist of individual and groups, large group as well as small ones. People are living, thinking, feeling beings who work in organization to achieve their objectives.

STRUCTURE Structure defines the formal relationship and use of people in organizations. Different jobs are required to accomplish all of an organizations activities. These people need to be related in some structural way so that their work can be effectively coordinated. TECHNOLOGY Technology provides the resources with which people work and affects the task that they perform. They cannot accomplish much with bear hands, so they construct building, design machine, create work process and assemble resources. The great benefit of technology is that it allow people to do more and better work. It has cost as well as benefits.
ENVIRONMENT All organization operate within internal and external environments. An organization does not exist in alone. It is part of large system that contains many other element , such as government, family, and other organization. Change in environment create demand on organizations. It influence the attitude of people, affect working condition, and provide competition for resources and power.

Many disciplines, such as physics and chemistry, are literally thousands of years old. Management has also been around in one form or another for centuries. But because serious interest in the study of management did not emerge until the turn of the twentieth century, organizational behavior is only a few decades old. REASONS
One reason for the relatively late development of management as a scientific field is that very few large business organizations existed until around a hundred years ago. .
Second, many of the initial players interested in studying organizations were economists. Economists initially assumed that management practices

are by nature efficient and effective; therefore, they concentrated on higher levels of analysis such as national economic policy and industrial structures.

SCIENTIFIC MANAGEMENT
The study of management, popularized during the early 1900s, was scientific management. Individuals who helped develop and promote scientific management included Frank and Lillian Gilbreth, Henry Gantt, and Harrington Emerson. But the person commonly associated with scientific management is Fredric W. Taylor ( FATHER OF SCIENTIFIC MANAGEMENT) . His contributions are : He developed an interest in efficiency and productivity. While working as foreman at Midvale steel company, he found managers never

gave attention to job and had any idea how to improve productivity. After scientifically studying all the jobs, he developed standardised method for performing each one. He also installed a piece-rate pay system in which each worker was paid for the amount of work he completed during the workday rather than for the time spent on the job. Taylor believed that money was the only significant motivational factor in the workplace.

Another perspective on management theory and practice was also emerging. Generally referred to as classical organization theory, this perspective is concerned with structuring organizations effectively. Classical organization theory focused on how a large number of workers and

managers could be most effectively organized into an overall structure. Major contributors to classical organization theory included Henri Fayol, Lyndall Urwick, and Max Weber. Weber, the most prominent of the three, proposed a bureaucratic" form of structure that he believed would work for all organization. Bureaucracy is an organizational structure in which tasks are specialized under a given set of rules and a hierarchy of authority. . In a bureaucracy, tasks are assigned through the division of labour. A set of outlined procedures exists for each job. Creativity is low. It limit the growth potential of individual employees.

THE EMERGENCE OF ORGANIZATIONAL BEHAVIOR

The central themes of both scientific management and classical organization theory are rationality, efficiency, and standardization. The roles of individuals and groups in organizations were either ignored altogether or given only minimal attention.

PRECURSORS OF ORGANIZATIONAL BEHAVIOR

In the early nineteenth century, Robert Owen, a British industrialist, attempted to improve the condition of industrial workers. He improved working conditions, raised minimum ages for hiring children, introduced meals for employees, and shortened working hours.

German psychologist Hugo Munsterberg argued that the field of psychology could provide important insights into areas such as motivation and the hiring of new employees.
Another writer in the early 1900s, Mary Parker Follett, believed that management should become more democratic in its dealings with employees.

Not until the 1930s did notable change occur in managements perception of the relationship between the individual and the workplace.

THE HAWTHORNE STUDIES

The Hawthorne studies were conducted between 1927 and 1932 at Western Electrics Hawthorne plant near Chicago. Several researchers were involved, the best known being Elton Mayo and Fritz Roethlisberger,Harvard faculty members and consultants, and William Dickson, chief of Hawthornes Employee Relations Research Department.

Various Experiments where conducted. Important one are

EFFECT OF LIGHTING ON PRODUCTIVITY

The first major experiment at Hawthorne studied the effects of different levels of lighting on productivity. Researchers concluded that lighting had no relationship to productivity, suggested that productivity might increase simply because workers were singled out for special treatment and thus perhaps felt more valued or more pressured to perform well. A PIECEWORK INCENTIVE SYSTEM This experiment was established for a nine men group that assembled terminal banks for telephone exchanges. Hawthorne researchers concluded that the human element in the workplace was considerably more important. The lighting experiment, suggested that productivity might increase simply because workers were singled out for special treatment and thus perhaps felt more valued or more pressured to perform well. In the incentive system experiment, being accepted as a part of the group evidently meant more to the workers than earning extra money. Several other studies supported the general conclusion that individual and social processes are too important to ignore.

HUMAN RELATIONS MOVEMENT

The Hawthorne studies created quite a stir among managers, providing the foundation for an entirely new school of management thought known as the human relations movement. The basic premises underlying the human relations movement are that people respond primarily to their social environment, that motivation depends more on social needs than on economic needs, and that satisfied employees work harder than unsatisfied employees. The behavioral theory of management holds that all people (including employees) have complex needs, desires, and attitudes. The fulfilment of needs is the goal toward which employees are motivated. Effective leadership matches need-fulfilment rewards with desired behaviors (tasks) that accomplish organizational goals. The values of the human relationists are best exemplified by the works of Douglas McGregor and Abraham Maslow. McGregor is best known for theory called Theory X and Theory Y. Theory X, which takes a pessimistic view of human nature and employee behavior, where as a much more optimistic and positive view . Theory Y, is generally representative of the human relations perspective advocated by Mc Gregor

. In 1943,Abraham Maslow published a psychological theory applicable to employee motivation that became well known and widely accepted among mangers. Maslows theory assumes that motivation arises from a hierarchical series of needs. As the needs of each level are satisfied, the individual advances to the next level.
Most scholars would agree that organizational behavior began to emerge as a mature field of study in the late 1950s and early 1960s. That period saw the fields evolution from the simple assumptions and behavioral models of the human relationists to the concepts and methodologies of a scientific discipline. Since that time, organizational behavior as a scientific field of inquiry has made considerable strides, although there have been occasional steps backward as well.

MODELS OF ORGANIZATIONAL BEHAVIOR

Organizations differ in nature of system they develop and maintain and in the result they achieve. Varying results follow from different models of organizational behaviour. These model constitute the belief system that dominate managements thought and affects managements action in each organization. It is highly important that managers recognize the nature, significance, and effectiveness of their own models , as well as the models of others around them. The selection of model by manager is determined by number of factors. It depends on philosophy, values, vision, mission, and goals of manager.

Autocratic model

Custodial model

Models of Organizational Behavior

Supportive model

Collegial model

Models of Organization Behavior

Autocratic Model Basis of Model Managerial orientation Employee orientation Employee Psychological result Power Authority Obedience Custodial Economic resources Money Security and benefits supportive leadership Support Job Performance collegial Partnership Teamwork Responsible behavior Self-discipline

Dependence on Dependence on participation boss organization

Performance Result
Employees needs met

Minimum
subsistence

Passive cooperation
security

Awakened drive
Status and recognition

Moderate enthusiasm
Selfactualization

THE AUTOCRATIC MODEL

The autocratic model has its roots in history, and it became the prevailing model of the industrial revolution. The autocratic model depends on power. In autocratic environment the managerial orientation is formal, official authority. This authority is delegated by the right of command over the people to whom it applies. Management believes that it knows the best and employee's obligation is to follow orders. Under this model, the employees orientation is obedience to boss, not respect for a manager. This result in dependence on their boss. The boss pay minimum wages because minimum performance is given by employee. Employees give minimum performance because they must satisfy subsistence need of themselves and their families. This model get moderate results.

THE CUSTODIAL MODEL

As managers began to study their employees, they soon recognized that although autocratically managed employees did not talk back to their boss, they certainly thought back. Employees are filled with insecurity, frustration and aggression towards their boss.
To satisfy the security needs of employees, a number of companies began welfare programs. Under these welfare programs, a variety of fringe benefits offered to provide employees security. The Custodial Model depends on economic resources. The managerial orientation is towards money to pay wages and benefits. If organizations does not have wealth to provide pensions and pay other benefits, it cannot follow a custodial approach. The employees orientation is dependence on the organization. Due to contentment it does not result in strong motivation rather produce passive cooperation

THE SUPPORTIVE MODEL

The supportive model depends on leadership instead of power of money. Through leadership, management provides a climate to help employees grow and accomplish in the goals of organizations. The management orientation is to support the employees performance rather than to simply support employees benefit payment in custodial approach. The employees orientation is feeling of participation and task involvement in organization. Employees may say we instead of they when referring organization. They are more strongly motivated because their status and recognition needs are better met and have awakened drives for work.

THE COLLEGIAL MODEL

The term collegial relates to body of people working together cooperatively. The collegial model depends on managements building a feeling of partnership with employees. The result is that employees feel needed and useful. Managers are seen as joint contributor rather than as bosses. The managerial orientation is toward teamwork. The employees response to this situation is responsibility. For example, employees produce quality work not because management tell them to do so or because inspector will catch them, but because they feel inside themselves an obligation to uphold quality standard that will bring credit to their jobs and company. The employees orientation is self-discipline. Under this condition, employees feel some degree of fulfilment and self-actualization which leads to moderate enthusiasm in performance.

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