This Document Contains Chapters 1 to 2 Chapter 1 The Dynamics of People and Organizations Chapter Overview The key purpose of this chapter is to introduce the field of organizational behavior (OB) and its basic elements in order to provide a solid foundation for the following chapters. The chapter begins by defining organizational behavior and explaining the goals of OB. It points out the key elements or forces in OB (people, structure, technology, and the environment) in which an organization operates. It further elaborates on the major positive characteristics of organizational behavior. The basic concepts that revolve around the nature of people and organizations are presented next, followed by four basic approaches to the study of OB: • Human resources (supportive) approach • Contingency approach • Results-oriented approach • Systems approach The chapter then explores the problems and challenges that exist in OB’s nature and use. Chapter Learning Objectives After reading this chapter, students should understand: 1. The meaning of organizational behavior 2. The key goals and forces with which it is concerned 3. The basic concepts of organizational behavior 4. Major approaches taken in this book 5. How organizational behavior affects organizational performance 6. The limitations of organizational behavior Discussion and Project Ideas “A good beginning accomplishes half of the task to be done.” Certainly this is true in teaching courses in human behavior and organizations. The first few class sessions are quite important because they set the tone of the course and the students’ attitudes toward it. Learning is best accomplished when there is a desire to learn; therefore, perhaps the most important class objective in the beginning is to motivate the students by showing them that this subject is interesting, that it is worthwhile, and that it is something they need. This implies that students have not yet achieved their optimal ability in organizational behavior, and they cannot achieve it merely through further experience and maturity. Study and training also are needed. It is, therefore, important in the beginning to dispel as far as possible any students’ feelings that effective work with people in organizations is simply common sense, being nice to people, and so on. In addition to attitude development, a second major objective of Chapter 1 is to communicate to the students, the fundamental philosophical ideas underlying organizational behavior. Unless they understand and at least partly accept these ideas, the subject will lack the meaning necessary for motivated study. The following suggestion could help you meet these objectives: Divide the class into groups of four or five. Ask the groups to read the case which follows and to list all potential explanations for the person’s described behavior. After taking input from all groups, show how their reasons can be divided according to the key elements of organizational behavior. Use this case as an example while describing the various approaches to explaining and controlling organizational behavior which will be covered later in this course. You might, for example, give short explanations of the person’s behavior in terms of need theory, reinforcement theory, and expectancy theory. Similarly, you might suggest changing the behavior through reinforcement strategies, job enrichment, counseling, or organization development. In this way, the nature and scope of the course can be discussed using a concrete example to which the students can relate. Catherine Williams is a loan officer with First City Bank, which is located in a large metropolitan area of approximately one million. Her job entails interviewing prospective customers, checking their credit, arranging contractual terms for financing, and deciding, with the approval of her boss, whether or not to make a loan to a customer. At first, her volume was extremely low, but she had an extremely good record with no customers defaulting on their loan. Lately, however, although her volume has improved, she has been making a fairly large number of poor loans (upon which customers defaulted). In addition, she has been late or absent on several recent occasions. When her boss mentioned that Catherine was late one day, she snapped back, “This is supposed to be a professional job. You people run this place like it’s a factory. Would you like to punch a time clock every morning?” Lecture Outline Introduction • Organizations are complex systems. • Human behavior in organizations is sometimes unpredictable. • Human behavior in an organization can be partially understood. • There are no perfect solutions to organizational problems. Understanding Organizational Behavior Definition • Organizational behavior is the systematic study and careful application of knowledge about how people—as individuals and as groups—act within organizations. • It strives to find ways in which people can act more effectively. • It is an applied science, in that information about effective practices in one organization is being extended to many others. • It provides a useful set of tools at many levels of analysis. o It helps managers look at the behavior of individuals within an organization. o It also aids their understanding of the complexities involved in interpersonal relations. o It is valuable for examining the dynamics of relationships within small groups, both formal teams and informal groups. o When two or more groups need to coordinate their efforts, managers become interested in the intergroup relations that emerge. o Organizations can also be viewed, and managed, as whole systems that have interorganizational relationships. Goals • Most sciences have four major thrusts, and these are also goals of organizational behavior: o The first objective is to describe, systematically, how people behave under a variety of conditions. o A second goal is to understand why people behave as they do. o Predicting future employee behavior is another goal of organizational behavior. o The final goal of organizational behavior is to control, at least partially, and develop some human activity at work. • Managers need to remember that organizational behavior is a human tool for human benefit. Forces • A complex set of forces affects the nature of organizations today. • A wide array of issues and trends in these forces can be classified into four areas: o People o Structure o Technology o Environment in which the organization operates • People o People make up the internal social system of the organization. o Groups are dynamic, vary in size, and may be formal or informal. o Organizations should exist to serve people; rather than people existing to serve organizations. o The workforce has become a rich melting pot of diversity, which means that employees bring a wide array of educational, ethnic, cultural, religious, gender economic backgrounds, talents, and perspectives to their jobs. o Occasionally, this diversity presents challenges for management to resolve. o Some of the changes in the labor force are as follows: There has been a decline in the work ethic and a rise in emphasis on leisure, self-expression, fulfillment, and personal growth. The automatic acceptance of authority by employees has decreased, while desires for participation, autonomy, and control have increased. o Several major factors are affecting the workforce: Skills become obsolete as a result of technological advances. Security needs become foremost in the minds of millions of workers (and loyalty diminishes) because of the threat or the reality of downsizings and outsourcings. In eras of controlled inflation, the absence of meaningful salary growth for many employees has placed renewed emphasis on money as a motivator. • Structure o Structure defines the formal relationship and use of people in organizations. o All the employees must be related in some structural way so their work can be effectively coordinated. o The relationships between the employees create complex problems of cooperation, negotiation, and decision-making. • Technology o Technology provides the resources with which people work and affects the tasks they perform. o It allows people to do more and better work, but it also restricts people in various ways. o It has costs as well as benefits. o Examples of the impact of technology include the: Increasing use of robots and automated control systems in assembly lines Dramatic shift from a manufacturing to a service economy Impressive advances in computer hardware and software capabilities Widespread use of the Internet Need to respond to societal demands for improved quality of goods and services at acceptable prices o The technological advancements places increased pressure on OB to maintain the delicate balance between technical and social systems. • Environment o Environments can be internal or external, and all organizations operate within them. o Numerous changes in the environment create demands on the organization. Citizens expect organizations to be socially responsible. New products and competition for customers come from around the world. The direct impact of unions (as measured by the proportion of the labor force that is unionized) diminishes. The dramatic pace of change in society quickens. o All these factors—but especially the rapid globalization of the marketplace—influence one another in a complex system that creates a dynamic context for a group of people. Positive Characteristics of the Organizational Behavior Field • One major strength of organizational behavior is its interdisciplinary nature. o It draws from the fields of psychology, sociology, social psychology, group dynamics, and anthropology. o It integrates relevant knowledge from these behavioral science disciplines with other social sciences that can contribute to the subject. • Another strength of organizational behavior is its emerging base of research knowledge, theories, models, and conceptual frameworks. o The key to its past and future success revolves around theory development, research, and managerial practices. • Theories offer explanations of how and why people think, feel, and act as they do. o They identify important variable and link them to form tentative propositions that can be tested through research. • Research is the process of gathering and interpreting relevant evidence that will either support a behavioral theory or help change it. o It is an ongoing process through which valuable behavioral knowledge is continually uncovered. • Practice is the conscious application of conceptual models and research results in order to improve individual and organizational performance at work. o This is similar to the application of evidence-based management, which asks managers to set aside their conventional wisdom and become totally committed to a rigorous collection of facts and combine these with relevant research. o Evidence-based management depends heavily on the explicit use of four pillars of information: Immersion in, and critical evaluation of, existing research evidence on “best organizational practices” In-depth information unique to the organization and its local context Input and reactions from various persons affected by it The wisdom, expertise, and practiced judgment of the manager Fundamental Concepts The Nature of People • Individual Differences o The idea of individual differences is supported by science. o The idea of individual differences comes originally from psychology. o Individual differences mean that management can motivate employees best by treating them differently. o The belief that each person is different from all others is typically called law of individual differences. • Perception o People’s view of their objective environment is filtered by perception, which is the unique way in which each person sees, organizes, and interprets things. o People tend to act on the basis of their perceptions. o Selective perception is the process in which people tend to pay attention to those features of their work environment that are consistent with or reinforce their own expectations. • A Whole Person o Although some organizations may wish they could employ only a person’s skill or brain, they actually employ a whole person rather than certain characteristics. o Jobs shape people somewhat as they perform them, so management must be concerned with the job’s effect on the whole person. • Motivated Behavior o In the case of needs, people are motivated not by what others think they ought to have but by what they themselves want. o Management has two basic ways to motivate people: It can show them how certain actions will increase their need fulfillment. It can threaten decreased need fulfillment if they follow an undesirable course of action. o A path toward increased need fulfillment is the better approach, and this illustrates that motivation is essential to the operation of organizations. • Desire for Involvement o Many employees today are actively seeking opportunities at work to become involved in relevant decisions, thereby contributing their talents and ideas to the organization’s success. o Meaningful involvement can be achieved through employee empowerment—a practice that will result in mutual benefit for both parties. • Value of the Person o People deserve to be treated differently from other factors of production (land, capital, technology) because they are of a higher order in the universe. o People want to be treated with caring, respect, and dignity—and they increasingly demand such treatment from their employers. The Nature of Organizations • Social Systems o Organizations are social systems; consequently, activities therein are governed by social laws as well as psychological laws. o Their behavior is influenced by their group as well as their individual drives. o Two types of social systems exist side by side in organizations: Formal (official) social system Informal social system o All parts of the system are interdependent and each part is subject to influence by any other part. • Mutual Interest o Organizations need people, and people need organizations. o They are formed and maintained on the basis of some mutuality of interest among their participants. o If mutuality is lacking, trying to assemble a group and develop cooperation makes no sense, because there is no common base on which to build. o Mutual interest provides a superordinate goal—one that can be attained only through the integrated efforts of individuals and their employers. • Ethics o Companies have established codes of ethics, publicized statements of ethical values, provided ethics training, rewarded employees for notable ethical behavior, publicized positive role models, and set up internal procedures to handle misconduct. o They have begun to recognize that since organizational behavior always involves people, ethical philosophy is involved in one way or another in each action they take. o When the organization’s goals and actions are ethical, it is more likely that individual, organizational, and social objectives will be met. o People find more satisfaction in work when there is cooperation and teamwork. Basic Approaches of this Book A Human Resources (Supportive) Approach • The human resources approach is developmental. • It is concerned with the growth and development of people toward higher levels of competency, creativity, and fulfillment, because people are the central resource in any organization and any society. • The human resources approach is supportive. • It helps employees become better, more responsible people, and then it tries to create a climate in which they may contribute to the limits of their improved abilities. • Another name for the human resources approach is the supportive approach, because the manager’s primary role changes from control of employees to active support of their growth and performance. A Contingency Approach • Traditional management searched for principles to provide “one best way” of managing. • Management principles were considered to be universal. • The more accepted view in the twenty-first century is that few across-the-board concepts apply in all instances. • Situations are much more complex than first perceived, and the different variables may require different behavioral approach. • The result is the contingency approach to organizational behavior, which means that different situations require different behavioral practices for greatest effectiveness. • Managers need to know under what conditions they should choose one behavioral approach over another, and the contingency framework can help them do this. • The strength of the contingency approach it encourages analysis of each situation prior to action while at the same time discouraging habitual practice based on universal assumptions about people. A Results-Oriented Approach • A dominant goal for many organizations is to be productive, so this results orientation is a common thread woven through organizational behavior. • Productivity, at its simplest, is a ratio that compares units of output with units of input, often against a predetermined standard. • Productivity often is measured in terms of economic inputs and outputs, but human and social inputs and outputs are also important. • Organizational behavior decisions typically involve human, social, or economic issues. • A Formula: o It is generally accepted that the product of knowledge and one’s skill in applying it constitute the human trait called ability (Knowledge × Skill = Ability). It can be improved through hiring better workers for learning or providing existing employees with job-related training. o Motivation results from a person’s attitudes reacting in a specific situation (Attitude × Situation = Motivation). o The interaction of motivation and ability determines a person’s potential performance in any activity (Ability × Motivation = Potential human performance) o The potential for human performance has to be mixed with resources, and a worker must be given the opportunity to perform to get organizational results (Potential performance × Resources × Opportunity = Organizational results). • Despite having the requisite ability, motivation, and opportunity to perform, employee productivity is sometimes stifled. • Research shows that the following factors create detrimental distractions at work: o Personal relationships o Chatty co-workers o Dysfunctional work relationships o Personal financial or legal problems o Child-related or caregiving issues o Personal health problems A Systems Approach • Treating an organization as a system is critically important to its success. • The ten fundamental elements of the systems approach include: o Many variables operate within a complex social system. o The parts of a system are interdependent and causally related. o Many subsystems are contained within larger systems. o Systems generally require inputs, engage in some dynamic process, and produce outputs. o The input-process-output mechanism is cyclical and self-sustaining. o Systems may produce both positive and negative results. o Systems often produce both intended and unintended consequences. o The consequences of systems should be examined on both a short-term and long-term basis. o Often, multiple ways can be used to achieve a desired objective. o Systems can be understood, changed, and managed if its members focus on problem causes instead of symptoms. • The systems approach compels managers to take a holistic and synthesizing view of the subject. • Managers need to interpret people–organization relationships in terms of the whole person, whole group, whole organization, and whole social system. • Negative effects as well as positive effects sometimes result from the behavioral actions of managers. • Cost-benefit analysis is needed to determine whether potential actions will have a net positive or net negative effect. Limitations of Organizational Behavior Behavioral Bias • Managers who lack system understanding and become superficially infatuated with OB may develop a behavioral bias, which gives them a narrow viewpoint that emphasizes satisfying employee experiences while overlooking the broader system of the organization in relation to all its publics. • Concern for employees can be so greatly overdone that the original purpose of bringing people together—productive organizational outputs for society—is lost. • To assume that the objective of OB is simply to create a satisfied workforce is a mistake, for that goal will not automatically translate into new products and outstanding customer service. • Behavioral bias can be so misapplied that it harms employees as well as the organization. • Some managers, in spite of their good intentions, so overwhelm others with care that the recipients of such care are emotionally smothered and reduced to dependent—and unproductive—indignity. o The employees become content, not fulfilled. o They find excuses for failure rather than take responsibility for progress. o They lack self-discipline and self-respect. The Law Of Diminishing Returns • Overemphasis on a valid organizational behavior practice may produce negative results, as indicated by the law of diminishing returns. • In economics, the law of diminishing returns refers to a declining amount of extra outputs when more of a desirable input is added to an economic situation. o After a certain point, the output from each unit of added input tends to become smaller. o The added output eventually may reach zero and even continue to decline when more units of inputs are added. • The law of diminishing returns in organizational behavior works in a similar way. o The concept implies that for any situation there is an optimum amount of a desirable practice. • Essentially, the law of diminishing returns is a system concept. o When an excess of one variable develops, although the variable is desirable, it tends to restrict the operating benefits of other variables so substantially that net effectiveness declines. o Organizational effectiveness is achieved not by maximizing one human variable but by combining all system variables together in a balanced way. Unethical Treatment of People and Use of Resources • A significant concern about organizational behavior is that its knowledge and techniques can be used to manipulate people unethically as well as to help them develop their potential. • People who lack respect for the basic dignity of the human being could learn organizational behavior ideas and use them for selfish ends. • They could use what they know about motivation or communication in the manipulation of people without regard for human welfare. • The philosophy of organizational behavior is supportive and oriented toward human resources. o However, the knowledge and techniques of organizational behavior may be used for negative as well as positive consequences. o The possibility of manipulation means that people in power in organizations must maintain high ethical and moral integrity and not misuse their power. • Ethical leadership will recognize such principle as the following: o Social responsibility—responsibility to others arises when people have power in an organization. o Open communication—the organization will operate as a two-way open system, with open receipt of inputs from people and open disclosure of its operations to them. o Cost-benefit analysis—in addition to economic costs and benefits, human and social costs and benefits of an activity will be analyzed in determining whether to proceed with the activity. • On a topic related to social responsibility (but more comprehensive), the ideas of global stewardship, conservation, and responsible management and consumption of resources have rapidly emerged in recent years. o Sustainability—the capacity of a system to endure across time—presents a difficult challenge to organizations, which must balance environmental, social, and economic demands. o These demands are often referred to as the three P’s of the triple bottom line—or planet, people, and profit. Continuing Challenges Seeking Quick Fixes and Using Old Solutions • One problem that has plagued organizational behavior has been the tendency for business firms to have short time horizons for the expected payoff from behavioral programs. o This search for a quick fix sometimes leads managers to embrace the newest fad, to address the symptoms while neglecting underlying problems, or to fragment their efforts within the firm. Varying Environments • Another challenge that confronts organizational behavior is to see whether the ideas that have been developed and tested during periods of organizational growth and economic plenty will endure with equal success under new conditions. o Specifically, the environment in the future may be marked by shrinking demand, scarce resources, and more intense competition. • When organizations stagnate, decline, or have their survival threatened, there is evidence that stress and conflict increase. Definitional Confusion • Organizational behavior, early in its history experienced some difficulty emerging as a clearly defined field of study and application. o There was a lack of consensus regarding its: Unit of analysis (individual, group, or total organization) Greatest need (as a source of empirical data and integrating theory, or a basis for applied information) Major focus (micro or macro issues) Major contributions to date • This lack of clear definition was compounded by multiple criteria used to assess its effectiveness. o Issues here include: Identification of relevant stakeholders Short or long time frame to wait for results Reliance on soft or hard data o All these issues have subsequently received useful attention and clarification. Chapter 2 Models of Organizational Behavior Chapter Overview The key purpose of this chapter is to build on the fundamental concepts presented in Chapter 1 by showing how all behavioral factors can be combined to develop an effective organization. First, the chapter discusses the organizational behavior (OB) system followed by the five models of OB and their usages. Chapter Learning Objectives After reading this chapter, students should understand: 1. The elements of an organizational behavior system 2. The role of management’s philosophy and paradigms 3. Alternative models of organizational behavior and their effects 4. Trends in the use of these models Discussion and Project Ideas Because the whole book is affected by two key frameworks—organizational behavior systems and models of organizational behavior—students’ understanding will be enhanced if they fully understand them. Exercises that may help the students understand and process these key concepts include the following: • Arrange a field trip to two or three organizations with very different types of organizational behavior systems. After the field trip, write the comments of the class regarding each organization on the board. Then compare and contrast the differences in the two companies. Use Likert’s system to further classify the differences between the organizations. • Obtain a copy of Likert’s survey. As a class project, have several students arrange for the administration and the scoring of the survey. Preferably, use the survey at each of the organizations visited during the field trip. After the results have been summarized, compare the companies on the basis of the survey data. How much face validity does the survey method have? • Ask the students to think of a work organization with which they have some familiarity. Have them describe that organization in terms of its organizational behavior model. Use Figure 2.4 as a reference. • Have students review the history of a large organization, such as Ford Motor Company, IBM, or Hewlett Packard. Have the students report back to the class, emphasizing how leadership and the implicit models of organizational behavior in these organizations changed as the companies evolved. • The movies and television are often a great source of reference for many undergrad students as they often have little work experience. Have the students compile a list of managers and what model they believe the manager(s) are using. For instance, students may refer to Wall Street, Glengarry Glenn Ross, and The Office. Lecture Outline Introduction • The differences between organizations can sometimes be extreme. • Organizations have undergone tremendous changes during the past two centuries. • Many of the old rules are now out of date, and increasing numbers of organizations today are experimenting with exciting new ways to of attract and motivate their employees. • The words used to refer to employees (such as “subordinates,” as contrasted to the use in some organizations of terms like “associates” or “partners” to convey equality) tell a lot about the underlying OB model in use. An Organizational Behavior System • Organizations achieve their goals by creating, communicating, and operating an organizational behavior system (Figure 2.1). • These systems have a greater chance of being successful if they have been consciously created and regularly examined and updated to meet the new and emerging conditions. • Updating is done by drawing upon the constantly growing behavioral science base of knowledge. • The primary purposes of OB systems are to identify and then help manipulate the major human and organizational variables that affect the results organizations are trying to achieve. • The outcomes are typically measured in various forms of three basic criteria: o Performance o Employee satisfaction o Personal growth and development Elements of the System • The philosophy (model) of OB held by management consists of an integrated set of assumptions and beliefs about the way things are, the purpose for these activities, and the way they should be. • These philosophies are sometimes explicit, and occasionally implicit, in the minds of managers. • There are five major organizational behavior philosophies: o Autocratic o Custodial o Supportive o Collegial o System • The philosophy of organizational behavior held by a manager stems from two sources: o Fact premises—represent our descriptive view of how the world behaves. They are drawn from both behavioral science research and our personal experiences (important things we have learned). They are acquired through direct and indirect lifelong learning and are very useful in guiding our behavior. o Value premises—represent our view of the desirability of certain goals and activities. They are variable beliefs that we hold and are therefore under our control. They can be chosen, modified, discarded, or replaced. • Managers also have primary responsibility for instilling three other elements into the organizational behavior system: o Vision—represents a challenging portrait of what the organization and its members can be—a possible, and desirable, future. Once the vision is established, persistent and enthusiastic communication is required so employees will embrace it with commitment. o Mission—identifies the business it is in, the market niches it tries to serve, the types of customers it is likely to have, and the reasons for its existence. In contrast to visions, mission statements are more descriptive and less future-oriented. They are rather broad, and need to be converted to goals to become operational and useful. o Goals—are relatively concrete formulations of achievements the organization is aiming for within set periods of time. Goal setting is a complex process, for top management’s goals must be merged with those of the employees, who bring their psychological, social, and economic needs with them to an organization. Goals may exist at the individual, group, and larger organization level, so substantial integration is required before a working social system can emerge. • Together, philosophy, values, vision, mission, and goals exist in a hierarchy of increasing specificity. o They all help create a recognizable organizational culture. o This culture is also a reflection of the formal organization with its formal policies, structures, procedures, and the existing social and cultural environment. o Managers also must be aware of the informal organization and must work with its members to create positive norms. o Managers are then expected to use a leadership style, communication skills, and their knowledge of interpersonal and group dynamics to create an appropriate quality of work life for their employees. o When this task is done properly, employees will become motivated toward the achievement of organizational goals. o The result of an effective OB system is motivation which, when combined with employee skills and abilities, results in the achievement of performance goals as well as individual satisfaction. o It builds two-way relationships that are mutually supportive, meaning that manager and employee are jointly influencing each other and jointly benefiting. o Supportive OB systems are characterized by power with people, rather than power over them, which is consistent with present human values regarding how people wish to be treated. Models of Organizational Behavior • Varying results follow from different models of organizational behavior. • These models constitute the belief system that dominates management’s thought and affects management’s actions in each organization. • Douglas McGregor presented a convincing argument that most management actions flow directly from whatever theory of human behavior the managers hold. • Theory X is a traditional set of assumptions about people (Figure 2.3). o It assumes that most people dislike work and will try to avoid it if they can. o Workers are seen as being inclined to restrict work output, having little ambition, and avoiding responsibility if at all possible. o Common rewards cannot overcome this natural dislike for work, so management is almost forced to coerce, control, and threaten employees to obtain satisfactory performance. • Theory Y implies a more humanistic and supportive approach to managing people. o It assumes that people are not inherently lazy; any appearance they have of being that way is the result of their experiences with less enlightened organizations, and if management will provide the proper environment to release their potential, work will become as natural to them as recreational play or rest and relaxation. o Employees are capable of exercising self-direction and self-control in the service of objectives to which they are committed. o Management’s role is to provide an environment in which the potential of people can be released at work. • McGregor’s argument was that management had been following an outmoded set of assumptions about people because it adhered to Theory X when the facts are that the Theory Y set of assumptions is more truly representative of most people. o Therefore, management needed to change to a whole new set of assumptions about people—one based on emerging behavioral science research. • McGregor deserves credit for a number of contributions: o He stimulated subsequent generations of managers to think consciously about their belief systems and management models. o He was an early advocate of the practical value of reading and using research to better understand human behavior. o He introduced and publicized one of the early theories of motivation—the hierarchy of needs model by A. H. Maslow. o He became a spokesperson for the need to bring human values into balance with other values at work. • Models such as Theory X & Theory Y are also called paradigms, or frameworks of possible explanations about how things work. o Any model that the manager holds usually begins with certain assumptions about people and leads to interpretations, implications, and predictions of events. o Underlying paradigms, whether consciously or unconsciously developed, become powerful guides to managerial behavior. • Managerial paradigms, according to popular author Joel Barker, act in several important ways: o They influence managerial perceptions of the world around them. o They define one’s boundaries and provide prescriptions for how to behave. o They encourage resistance to change since they have often worked in the past. o They may either consciously or unconsciously affect one’s behavior. • New paradigms are constantly emerging, and some of them provide managers with alternative ways of viewing the world and solving problems. • When a major paradigm (a radically different way of thinking) appears it may cause a paradigm shift. • Figure 2.4 summarizes five models (paradigms) of OB—autocratic, custodial, supportive, collegial, and system. • Although one model tends to dominate at a particular time in history, each of the other models is still applied in some organizations. • Just as organizations differ among themselves, so practices may vary within the departments or branches of one organization. • The practices of individual managers may differ from their organization’s prevailing model because of those managers’ personal preferences or different conditions in their department. • No one model or OB is sufficient to describe all that happens in an organization. • The selection of a model by a manager is determined by a number of factors: o The prevailing philosophy, values, vision, mission, and goals of managers affect, and are affected by, their OB model. o In addition, environmental conditions help determine which model will be most effective. • The model used should not be static and unchanging but reexamined and adapted across time. The Autocratic Model • The autocratic model depends on power. • In an autocratic environment, the managerial orientation is formal official authority. o The model assumes that employees have to be directed, persuaded, and pushed into performance, and such prompting is management’s task. o Management does the thinking; the employees obey the orders. o This conventional view of management leads to tight control of employees at work. o The autocratic model is intensely disliked by many employees. • Under autocratic conditions, the employee orientation is obedience to a boss, not respect for a manager. o The psychological result for employees is dependence on their boss, whose power to hire, fire, and “perspire” them is almost absolute. o The employer pays minimum wages because minimum performance is given by employees (who may lack the qualifications for advancement). o Employees are willing to give minimum performance because they must satisfy subsistence needs for themselves and their families. • The autocratic model’s principal weaknesses are its high human cost and its tendency to encourage high-level managers to engage in micromanagement, which is the immersion of a manager into controlling the details of daily operations. o Micromanagers tend to: Control and manipulate time Place their self-interest above that of employees Institute elaborate approval processes Specify detailed procedures for everything Closely monitor results o Employees typically detest a micromanager, with the result being: Low morale Paralyzed decision making due to fear of being second-guessed High turnover • The autocratic model was an acceptable approach to guide managerial behavior when there were no well-known alternatives, and it can still be useful under some extreme conditions, such as organizational crisis. 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.” o Employees were filled with insecurity, frustrations, and aggressions toward their boss. o It seemed obvious to progressive employers that there ought to be some way to develop better employee satisfaction and security. • To satisfy the security needs of employees, a number of companies began welfare programs in the 1890s and 1900s. o In their worst form these welfare programs later became known as paternalism. • In the 1930s, welfare programs evolved into a variety of fringe benefits to provide employee security. o Employers—and unions and government—began caring for the security needs of workers. o They were applying a custodial model of organizational behavior. • A successful custodial approach depends on economic resources. o The resulting managerial orientation is toward money to pay wages and benefits. o The employer looks to security needs as motivating force. o If an organization does not have the wealth to provide pensions and to pay for other benefits, it cannot follow a custodial approach. • The custodial approach leads to employee dependence on the organization. o Rather than being dependent on their employer for just their weekly paycheck, employees now depend on organizations for their security and welfare. • Employees working in a custodial environment become psychologically preoccupied with their economic rewards and benefits. o However, contentment does not necessarily produce strong motivation; it may only produce passive cooperation. • The custodial model’s greatest benefit is that it brings security and satisfaction to workers, but it does have substantial flaws. o The most evident flaw is that most employees are not producing anywhere near their capacities, nor are they motivated to grow to the greater capacities of which they are capable. o Though employees are comfortable and care for, most of them really do not feel fulfilled or motivated. • Although the custodial model does provide employee security, it is best viewed as simply the foundation for growth to the next step. The Supportive Model • The supportive model of organizational behavior had its origins in the “principle of supportive relationships” as stated by Rensis Likert. • One key spark for the supportive approach was a series of research studies at the Hawthorne Plant of Western Electric in the 1920s and 1930s. o Led by the Elton Mayo and F. J. Roethlisberger, the researchers gave academic stature to the study of human behavior at work by applying keen insight, straight thinking, and sociological backgrounds to industrial experiments. o The researchers concluded that an organization is a social system and the worker is the most important element in it. o The studies suggested that an understanding of group dynamics, coupled with the application of supportive supervision, was important. • The supportive model depends on leadership, instead of power or money. o Management’s orientation is to support the employee’s job performance rather than simply support employee benefit payments as in the custodial approach. • Since management supports employees in their work, the psychological result is a feeling of participation and task involvement in the organization. o Employees are more strongly motivated than by earlier models because their status and recognition needs are better met. o Employees have awakened drives for work. • Supportive behavior is not the kind of approach that requires money. • The supportive model works well with both employees and managers, and it has been widely accepted. o However, the step from theory to practice is a difficult one. • The supportive model of organizational behavior tends to be especially effective in affluent nations because it responds to employee drives toward a wide array of emerging needs. The Collegial Model • A useful extension of the supportive model is the collegial model. o The term “collegial” relates to a body of people working together cooperatively. o The collegial model, which embodies a team concept, first achieved widespread applications in research laboratories and similar work environments. • The collegial model traditionally was used less on assembly lines, because the rigid work environment made it difficult to apply there. o A contingency relationship exists in which the collegial model tends to be more useful with creative work, an intellectual environment, and considerable job freedom. • The collegial model depends on management’s building a feeling of partnership with employees. o The managerial orientation is toward teamwork. o The employee response to this situation is responsibility. • The psychological result of the collegial approach for the employee is self-discipline. o In this kind of environment, employees normally feel some degree of fulfillment, worthwhile contribution, and self-actualization, even though the amount may be modest in some situations. o The self-actualization will lead to moderate enthusiasm in performance. • The collegial model tends to produce improved results in situations where it is appropriate. The System Model • The system model is the result of a strong search for higher meaning at work by many of today’s employees. • Since workers are being asked to spend many hours of their day at work, they want a work context that is ethical, infused with integrity and trust, and provides an opportunity to experience a growing sense of community among co-workers. o To accomplish this, managers must increasingly demonstrate a sense of caring and compassion, being sensitive to the needs of a diverse workforce with rapidly changing needs and complex personal and family needs. • The system model reflects underlying positive organizational behavior, which focuses on identifying, developing, and managing psychological strengths within employees. • Individuals at all levels need to acquire and display the five dimensions of social intelligence, which has the following five dimensions: o Empathy—appreciation for, and connectedness with, others o Presence—projecting self-worth in one’s bearing o Situational radar—ability to read social situations and respond appropriately o Clarity—using language effectively to explain and persuade o Authenticity—being “real” and transparent, while projecting honesty • The role of a manager is one of facilitating employee accomplishments through a variety of actions (Figure 2.5). • Employees experience a sense of psychological ownership for the organization and its products or services—a feeling of possessiveness, responsibility, identity, and sense of belongingness. • Employees with a sense of ownership go beyond the self-discipline of the collegial approach until they reach a state of self-motivation, in which they take responsibility for their own goals, actions, and results. • As a consequence, the employee needs that are met are wide-ranging but often include the highest-order needs (e.g., social, status, esteem, autonomy, and self-actualization). • Because it provides employees an opportunity to meet these needs through their work as well as understand the organization’s perspectives, this new model can stimulate employees’ passion and commitment to organizational goals. Conclusions about the Models • Evolving Usage o Managerial and, on a broader scale, organizational, use of these models tends to evolve over time. o To assume that one particular model is a “best” model that will endure for the long run is a mistake. o The primary challenge for management is to identify the model it is actually using and then assess its current effectiveness. • Relation of Models to Human Needs o A number of people have assumed that emphasis on one model of organizational behavior is an automatic rejection of other models, but comparison suggests that each (newer) model is built upon the accomplishments of the other. o It is best to take an adaptive approach to match changing needs. o If a manager should abandon the basic organizational needs, the system would move back quickly to seek structure and security in order to satisfy those needs for its people. • Increasing Use of Some Models o The trend toward the supportive, collegial, and system models will undoubtedly continue. o Despite rapid advances in computers and management information systems, top managers of giant, complex organizations cannot be authoritarian in the traditional sense and also be effective. They must learn to depend on other centers of power nearer to operating problems. They are often forced to literally redefine the old psychological contract and embrace a newer, more participative one. o Many employees are not readily motivated toward creative and intellectual duties by the autocratic model. • Contingent Use of All Models o Though one model may be most used at any given time, some appropriate uses will remain for other models. o Knowledge and skills vary among managers. o Role expectations of employees differ, depending upon cultural history. o Policies, ways of life, and task conditions vary among organizations. o Probably all five models will continue to be used, but the more advanced models will have growing use as progress is made and employee expectations rise. • Managerial Flexibility o Managers not only need to identify their current behavioral model but also must keep it flexible and current. o Managers need to read, to reflect, to interact with others, and to be receptive to challenges to their thinking from both colleagues and employees. Instructor Manual for Organizational Behavior: Human Behavior at Work John W. Newstrom 9780078112829, 9781259254420
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