M
O
B
LO 1 MEANING AND IMPORTANCE OF OB o Explain key elements of organizational behavior
L0 2 D ISCUSS MODELS OF OB o Discuss Theories of management – x,y,z o Compare and contrast models of OB – autocratic, custodial, supportive, collegial and system
OB S
YSTEMS
All organizations achieve goals by creating, communicating and operating s system. (Newstrom 27) Some systems are consciously created and regularly looked at and updated. The purpose of these systems is to help managers shift everything in the organization – people, technology, structure and environment - to get results, or outcomes for the organization.
T HREE CRITERIA
Progressive Organizations measure their results or outcomes by three criteria
P
ERFORMANCE
Product and services quality and quantity, level of customer service
E
MPLOYEE SATISFACTION
May be measured by - lower absenteeism, tardiness or turnover
P ERSONAL GROWTH AND DEVELOPMENT
Employees gain lifelong knowledge and skills leading to continued employability and career advancement.
Performance
Employee satisfaction
Personal
Growth and
Development
FIGURE 1 THREE CRITERIA TO MEASURE OUTCOMES OF OB SYSTEMS
A system comes out of the beliefs and intentions of those who create it - owners - and from the managers who run it. The model that an organization uses comes from assumptions and beliefs about the way things are, the purpose of these activities and the way they should be.
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The thinking of owners and managers comes from fact premises and value premises.
F ACT PREMISES
Fact premises are a person’s view of how the world behaves. The view comes from science and personal experiences, from the important things a person learns. Fact premises come from direct and indirect lifelong learning and experiences and help guide our behavior.
V ALUE PREMISES
Value premises are different. Value premises are how desirable something is. Value premises are beliefs we hold. We control these. We can choose, change or replace our value premises, but this is not always easy because we hold them deeply.
Owners and Managers set up organizations based on this thinking.
Vision is what the organization can be – a desirable future.
Mission identifies the business the organization is in, markets, types of customers and the reasons for it to exist.
Goals are achievements the organization is aiming for in a set time . For an organization to succeed, management and employee goals must merge .
This organizational culture is a reflection of the formal organization with policies, structures and procedures. Managers use a leadership style, communication skills, and knowledge of interpersonal and group interactions
to create a quality of life for employees. If this is done correctly, employees will be motivated to reach organizational goals. Thus, a good system results in motivation. Motivation, together with employee skills and abilities, leads to goals being reached and people being satisfied.
Good OB builds mutual support with manager and employee jointly influencing each other and jointly benefitting…power with people, not over them. Modern OB is based on human values of treating people with dignity.
M C G REGOR ’ S T HEORY X AND T HEORY Y
Theory X sa ys that most people don’t like to work and will avoid it if they can.
Theory X managers believe that they need to force and threaten people to work.
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Theory Y says that people can direct and control themselves, working towards the goals set by a company.
O uchi’s Theory Z says that workers, managers and can share control, work as a team to accomplish the company’s goal.
Employees dislike work and will try to avoid it.
Employees prefer to be controlled and directed.
Employees seek security, not responsibility.
Employees must be intimidated by managers to perform.
Employees are motivated by financial rewards.
Employees view work as a natural part of life.
Employees prefer limited control and direction.
Employees will seek responsibility under proper work conditions.
Employees perform better in work environments that are not intimidating.
Employees are motivated by many different needs.
Employees like work
Employees help make decisions
Employees take individual responsibility
Employers and managers share control
Employees expect long term employment, slower rates of promotion
Complete the x and y self – assessment.
Which type of manager do you want to work for?
Which type of manager will you be?
Discuss Theory X Y Z. Which theory – if any – do you believe in? Do you think that both exist in different places? Can you give examples?.
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F
IVE
M
ODELS OF
O
RGANIZATIONAL
B
EHAVIOR
:
We will look at five models of organizational behavior in this course.
FIGURE 2 FIVE MODELS
These models are the most common models in use over the last 100 years.
They are in order. Some of the oldest are still practiced.
Models are possible explanations which explain how things work in an organization. Models are guides to understanding owners and management behavior in particular. Top managers can and do influence the whole organization.
However, these models may be in use within a department or branch or in the whole organization. No model can explain everything.
Managers choose models based on people, technology, environment and structure. Models can change over time depending on circumstances.
A CTIVITY
What do you know about about Prince Alwaleed Bin Talal Bin Abdulaziz, Dahi
Khalfan Tamim, Dalia Mogahed, Mohammed Alabbar? (Note: these were the first four in Arabian Businesses “Most Powerful Arabs List” March 2010)
About Mark Zuckerman, Bill Gates, Steve Jobs, Carly Fiorino, Raja Essa Al
Gurg, Juma Al Majid, HH Sheik Hamdan b in Moh’d Al Maktoum, Majid Al
Futtaim.?
How does their management thinking affect their organizations?
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1 A UTOCRATIC M ODEL
This model came about during the industrial revolution, in the 1800’s and
1900’s. It depends on power The manager has the power to demand “you do this or else” – and an employee who does not follow orders is punished.
The manager has formal, official, authority over employees.
This model assumes that employees have to be directed and pushed into doing the work. In this model, management does the thinking, employees obey orders and depend on the manager. Employees are tightly controlled.
The manager can hire, fire and “perspire” them.
Employees may obey managers but employees may not respect management.
Typically, employees receive minimum pay for minimum expected performance. Employees may have lower skills. Often, employees work in the authority model because they have to ….to provide subsistence for themselves and their families.
Its weakness is that it lea ds to “ micro management ” With micro management , managers control all details of daily operations. Managers control time and processes, they put their needs above those of employees, they insist on complicated approval processes for even the smallest things and closely monitor all results.
The problem with the autocratic model and micro management is that it leads to low employee morale, poor decision-making (no one will make a decision because he/ she is afraid of the decision being over turned) and high turnover. As well, employees kept quiet about hating the workplace, they certainly made their feelings known at home and in the community.
This model can get things done BUT it has high human costs. It can be useful in crisis situations, within armies or with short-term employees.
(Newstrom 34)
The autocratic model was acceptable 100 years ago. However, today’s understanding of people’s needs as well as changing society values show better ways of to organize behavior.
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2.
C USTODIAL M ODEL
In the lat e 1800’s, employers realized that employees might work better if their basic needs more satisfied, if they were more secure and had a better quality of work life. This was called paternalism - taking care of employees by providing them with benefits to meet their security needs.
The custodial approach depends on economic resources – money for wages and benefits - to motivate employees. The company has to have enough money to cover these costs. By the 1930’s most employers were offering welfare programs …for example, housing, medical care and insurance, fewer working hours sick pay, pensions and paid vacation time off.
The problem with the custodial model is that it leads to dependence on the organization by the employee because of the security offered. Employees do not want to leave the organization, not so much because they like the job, but because they like or depend on the benefits that go with it. They cannot afford to quit.
In this model, employees may focus on economic rewards. They may be reasonable content, but may not be highly motivated – just passively cooperative.
Companies that adopt the custodial approach normally have a lower staff turnover. However, employees do not produce their best work and are not motivated to grow to their full potential. The custodial model is a good foundation for organizations to grow to the next approach. ( Newstrom 35)
3.
S UPPORTIVE M ODEL
The supportive model came from research done in the 1920’s and 1930’s. It depends on leadership, not authority or money. Through leadership, managers provide a work situation in which employees can develop.
The supportive model assumes that employees want to work and will take responsibility. Employees are encouraged to be involved in the organization.
Employees are more strongly motivated because their status and recognition needs are better met than with earlier models.
The supportive approach is not about money, but about the way people are treated at work. A supportive manager helps employees solve problems and accomplish their work. However, some managers may agree with the model but not actually practice it at work.
This model is followed widely, especially in the West, because it responds to employee drives for complex needs. It is especially useful in production
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work places. Employees in developing countries are aware of management practices around the world and are demanding more modern approaches.
4.
C OLLEGIAL M ODEL
This model began about 50 years ago.
Collegial means people working together cooperatively. In this model, management builds a feeling of partnership with employees. The environment is open and people participate.
The collegial model is about team work. Managers are coaches to help build better teams. Employees are responsible – they feel obliged to others on the team to produce quality work. Employees must be self-disciplined.
Many employees feel satisfied that they are making a worthwhile contribution.
This leads to self actualization and moderate enthusiasm in the way they perform.
The collegial model is especially useful for creative work, like marketing or communications or in thinking environments, like education or planning.
(Newstrom 38)
5.
T HE S YSTEM M ODEL
This is the most recent model. In this model, people want more than money, job security and cooperative teams. Employees today want trust, an ethical workplace, managers who show care and compassion and a workplace that has a sense of community.
The system model focuses on “identifying developing and managing the strengths within employees”. Managers focus on “helping employees develop feelings of hope, optimism, self confidence, empathy, trustworthiness, esteem, courage, efficacy and resiliency.”
In the system model, “Managers protect and nurture their employees…to develop a positive workplace culture which leads to organizational success and committed employees.”
Both managers and employees need social intelligence in this model with managers as facilitators. (Newstrom 39).
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In the system model , managers and employees see the mutual benefits and obligations they share in the complex system (the organization). Everyone has psychological ownership for the organization, its products and services.
Everyone feels possessive, responsible and “at home” in the organization.
Employees can reach a state of self motivation. Their highest order needs are met. They have passion and commitment to organizational goals, not just their own personal wants and needs.
TABLE 1 FIVE MODELS OF ORGANIZATIONAL BEHAVIOR (NEWSTROM 33)
Based on
Autocratic
Power
Managerial
Orientation
Employee
Orientation
Employee psychological result
Employees needs met
Performance result
Authority
Obedience
Dependence on boss
Subsistence
(survival)
Minimum
Custodial
Economic resources
Money
Security and benefits
Dependence on organization
Security
Passive cooperation
Supportive
Leadership
Support
Job performance
Participation
Status and recognition
Awakened drives
Collegial
Partnership
Teamwork
Responsible behavior
Self-discipline
Self-actualization
Moderate enthusiasm
System
Trust, sharing
Caring, compassion
Psychological ownership
Self motivation
Wide range
Passion and commitment to organizational goals
C
ONCLUSIONS
Models have changed over time. The choice of model depends on employee needs and the situation. Any of the models work in some situations. There is a trend toward the newer models.
The Model used depends on the knowledge and skills of managers, the expectations of employees, the policies and ways of life in the organization and the nature of the work e.g. low skilled, high programmed work, temporary work, or intellectual work.
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E VOLVING U SAGE AND C ONTINGENCY
There is no “best model”. Management is to identify the model it is actually using and then assess its current effectiveness.
Managers must also be flexible. Every organization has a changing environment and task conditions. A good manager should respond, if necessary, by changing the model which he or she is using.
R ELATION TO H UMAN N EEDS
All models are related to human needs. Each model is built on the others and is progressive because employees and organizations progress to situations where newer needs arise.
I NCREASING USE OF SOME M ODELS
There is a trend toward supportive, collegial and system models. Top managers in multi-national corporations cannot be authoritarian and still be effective. Decisions need to be made closer to operations , “the front line”. In the Middle East, some organizations will be forced to redefine the old authoritarian and custodial models and move towards more participative ones.
As an example of this, in January 2011, many Arabs demonstrated in the streets of Tunisia, Egypt, Lebanon, Jordan and Yemen. They demanded the removal of old authority figures and requested more of a supportive or collegial model.
M ANAGERIAL F LEXIBILITY
“Managers need to identify the current behavioral model but also must keep it flexible … Managers need to read, reflect, to interact with others, and to be receptive to challenges to their thinking from collegues and employees.”
(Newstrom 42)
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EVIEW
UESTIONS
1. What is the meaning of an organizational behavior system?
2. What criteria do managers use to assess the end results of an OB system?
3. Describe fact and value premises. List an example of each.
4. What is the difference between mission, vision and goals.
5. What are the three managerial assumptions described in the text?
Give examples of each from your own experience.
6. When would a manager use each of the assumptions? What factors would a manager consider when making the choice?
7. Compare and contract each of the five models of organizational behavior and give the advantages and disadvantages of each.
8. What is the underlying assumption (Theory X or Theory Y) of each of the four models? Give reasons for each of your answers
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EVIEW
5
6
7
8
3
4
I NSIGHTS
An insight is a new and clear perception. It is an ability to “see” something clearly. Insights are new knowledge or new ways to view something. Insights are things you want to remember. (Newstrom 24)
Highlight in your own words ten insights from this unit.
1
2
9
10
C RITICAL THINKING
Think back on the material in this unit. (Newstrom 25)
What three questions would you raise about the material?
R EFLECTION
A reflection is what you think and feel about something. (Newstrom 25)
Express your personal thoughts and feelings or reactions to any of the ideas or topics in this unit. Be prepared to share these with the class.
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