Models of Organisational Behaviour

MODELS OF ORGANIZATIONAL BEHAVIOUR Introduction Organizations achieve their goals by creating, communicating and operating an organizational behaviour system, as shown in the figure below: Management’s Philosophy ? Values ? Vision ? Mission ? Goals Formal Organization Organizational Culture Social Environment Informal Organization Leadership ? Communication ? Group Dynamics Quality of Work Life Motivation Outcomes: ? Performance ? Employee satisfaction ? Personal growth and development I. Philosophy
• • A. 1. 2. 3. 4. 5.

The philosophy (model) of organizational behavior 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 should be.

The philosophies are sometimes implicit or explicit in the minds of managers. There are five major organizational behavior philosophies: Autocratic Custodial Supportive Collegial System B. Selected Elements of Philosophy Statement
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• We are committed to quality, cost-effectiveness and technical excellence.

People should treat each other with consideration, trust and respect. Each person is valuable, is unique and makes a contribution. All employees should be unfailingly committed to excellent performance. Teamwork can and should, produce far more than sum of individual efforts.

C. Two Sources of Philosophy of Organizational Behavior
• • Fact Premises represent our descriptive view of how the world behaves. They are drawn from both behavioral science research and personal experiences. Value Premises represent our view of desirability of certain goals and activities.

Value premises are variable beliefs we hold and are therefore under control. II. Values
• • The rules by which we make decisions about right and wrong Determine which are more or less important and which is more favorable A.

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Sample of Statement of Values Harvard University Statement of Values August 2002 Harvard University aspires to provide education and scholarship of the highest quality — to advance the frontiers of knowledge and to prepare individuals for life, work, and leadership.

Achieving these aims depends on the efforts of thousands of faculty, students, and staff across the University. 2 Some of us make our contribution by engaging directly in teaching, learning, and research, others of us, by supporting and enabling those core activities in essential ways. Whatever our individual roles, and wherever we work within Harvard, we owe it to one another to uphold certain basic values of the community.

These include: Respect for the rights, differences, and dignity of others Honesty and integrity in all dealings Conscientious pursuit of excellence in one’s work Accountability for actions and conduct in the workplace The more we embrace these values in our daily lives, the more we create and sustain an environment of trust, cooperation, lively inquiry, and mutual understanding — and advance a commitment to education and scholarship, which all of us share. III. Vision
• •
• Represents a challenging portrait of what the organization and its members can be -a possible, and desirable, future.

Leaders need to create exciting projections about where the organization should go and what major changes lie ahead Once the vision is established, persistent and enthusiastic communication is required to sell it throughout the ranks of employees so they will embrace it with commitment. A. Samples of Vision Statements 1. PSBA Manila To be an institution of world-class education for youth of our country. 2. GMA Network CORPORATE VISION We are the most respected, undisputed leader in the Philippine broadcast industry and the recognized media innovator and pacesetter in Asia.

We are the Filipinos’ favorite network. We are the advertisers’ preferred partner. We are the employer of choice in our industry. We provide the best returns to our shareholders. We are a key partner in promoting the best in the Filipino. 3. Procter and Gamble Be, and be recognized as, the best consumer products and services company in the world. 4. SMDC We envision SM Development Corporation to be a leading developer of world-class residences in the Philippines, uplifting Filipino lifestyles into one that is convenient, upscale yet affordable, and environment friendly. B. Mission
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• Identifies the business the organization is in the market niches it tries to serve, the types of customers it is likely to have and the reasons for its existence. Many mission statements even include a brief listing of the competitive advantages, or strengths, or the firm believes it has. Mission statements are more descriptive and less future-oriented. C. Samples of Mission Statements 1. Toyota “To sustain profitable growth by providing the best customer experience and dealer support. ” 2.

Apple Computer 1984 “To produce high-quality, low cost, easy to use products that incorporate high technology for the individual. We are proving that high technology does not have to be intimidating for non-computer experts. ” IV. Goals
• • Goals are relatively concrete formulations of achievements the organization is aiming within set periods of time, such as one to five years. Goal setting is a complex process for top management’s goals need to be merged with those of employees, who bring their psychological, social and economic needs with them to an organization.

A. Samples of Goals
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• To establish stronger relationships with 10,000 clients in Metro Manila. To minimize client complaints from 40 down to 5 per month. To increase the student population to 700 within 2 years 4 V. McGregor’s Theory X and Theory Y, Alternative Assumptions About Employees Theory X Theory X assumes that the average person: ? ? ? ? ? Theory Y Theory Y makes the following general assumptions: ? ? Dislikes work and attempts to avoid it. Has no ambition, wants no responsibility, and would rather follow than lead.

Is self-centered and therefore does not care about organizational goals. Resists change. Is gullible and not particularly intelligent. ? ? ? Work can be as natural as play and rest. People will be self-directed to meet their work objectives if they are committed to them. People will be committed to their objectives if rewards are in place that address higher needs such as selffulfillment. Under these conditions, people will seek responsibility. Most people can handle responsibility because creativity and ingenuity are common in the population.

Essentially, Theory X assumes that people work only for money and security. Theory X – The Hard Approach and Soft Approach Under Theory X, management approaches can range from a hard approach to a soft approach. The hard approach relies on coercion, implicit threats, close supervision, and tight controls, essentially an environment of command and control. The soft approach is to be permissive and seek harmony with the hope that in return employees will cooperate when asked to do so. However, neither of these extremes is optimal.

The hard approach results in hostility, purposely low-output, and hard-line union demands. The soft approach results in ever-increasing requests for more rewards in exchange for ever-decreasing work output. The optimal management approach under Theory X probably would be somewhere between these extremes. However, McGregor asserts that neither approach is appropriate because the assumptions of Theory X are not correct. The Problem with Theory X Drawing on Maslow’s hierarchy, McGregor argues that a satisfied need no longer motivates.

Under Theory X the firm relies on money and benefits to satisfy employees’ lower needs, and once those needs are satisfied the source of motivation is lost. Theory X management styles in fact hinder the satisfaction of higher-level needs. Consequently, the only way that employees can attempt to satisfy their higher level needs in their work is by seeking more compensation, so it is quite predictable that they will focus on monetary rewards. While money may not be the most 5 effective way to self-fulfilment, in a Theory X environment it may be the only way.

Under Theory X, people use work to satisfy their lower needs, and seek to satisfy their higher needs in their leisure time. But it is in satisfying their higher needs that employees can be most productive. McGregor makes the point that a command and control environment is not effective because it relies on lower needs as levers of motivation, but in modern society those needs already are satisfied and thus no longer are motivators. In this situation, one would expect employees to dislike their work, avoid responsibility, have no interest in organizational goals, resist change, etc. thus making Theory X a self-fulfilling prophecy. From this reasoning, McGregor proposed an alternative: Theory Y. Theory Y The higher-level needs of esteem and self-actualization are continuing needs in that they are never completely satisfied. As such, it is these higher-level needs through which employees can best be motivated. Under these assumptions, there is an opportunity to align personal goals with organizational goals by using the employee’s own quest for fulfillment as the motivator. McGregor stressed that Theory Y management does not imply a soft approach.

McGregor recognized that some people may not have reached the level of maturity assumed by Theory Y and therefore may need tighter controls that can be relaxed as the employee develops. Theory Y Management Implications If Theory Y holds, the firm can do many things to harness the motivational energy of its employees: Decentralization and Delegation – If firms decentralize control and reduce the number of levels of management; each manager will have more subordinates and consequently will be forced to delegate some responsibility and decision making to them. ? ? Job Enlargement – Broadening the scope of an employee’s job adds variety and opportunities to satisfy ego needs. Participative Management – Consulting employees in the decision making process taps their creative capacity and provides them with some control over their work environment. Performance Appraisals – Having the employee set objectives and participate in the process of evaluating how well they were met. If properly implemented, such an environment would result in a high level of motivation as employees work to satisfy their higher level personal needs through their jobs. VI. Paradigms/Framework
• • Models such as X and Y are also called paradigms or frameworks of possible explanations about how things work. Any model that a manager holds usually begins with certain assumptions about people and leads to certain implications and even predictions of events. Managerial Paradigms According to Joel Barker
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• They influence managerial perceptions of the world around them. They define one’s boundaries and provide perceptions for how to behave. They encourage resistance to change, since they have worked in the past.

They may either consciously or unconsciously affect one’s behavior. When new paradigms appear, they provide alternative ways of viewing the world and solving problems. VII. Five Models of Organizational Behavior Autocratic Basis of Model Power Supportive Economic Resources Custodial Leadership Collegial Partnership System Trust, community, meaning Caring, compassion Psychological ownership Self-motivation Managerial Model Employee orientation Employee psychological result Employee Needs Met Performance result Authority Money Support Teamwork Obedience Security and Benefits

Job Performance Responsible Behavior Self-discipline Dependence on Dependence on Participation boss organization Subsistence Security Status and recognition Awakened drives Selfactualization Moderate enthusiasm Wide range Minimum Passive cooperation Passion and commitment to organizational goals 7 A. The Autocratic Model
• The autocratic model has its roots in history, and certainly, it became the prevailing model of the industrial revolution.
• The autocratic model depends on power. Characteristics of Autocratic Model
• Managerial orientation is formal, official authority. The employee orientation is obedience to a boss.
• Useful way to accomplish work
• It is an acceptable approach to guide managerial behavior when there were no wellknown alternatives, it can be useful during organization crises. B. The Custodial Model
• • Custodial model was used during the welfare programs in 1890s and 1900s. The welfare program was later known as paternalism. Characteristics of Custodial Model
• The resulting managerial orientation is toward money to pay wages and benefits.
• The employer looks to security needs as a motivating force. This approach leads to employee’s dependence on the organization. C. The Supportive Model
• •
• • The supportive model depends on leadership instead of power or money. Through leadership, management provides a climate to help employees grow in the interests of the organization the things of which they are capable of. The management orientation is to support the employee’s job performance This approach leads to a feeling of participation and task involvement in the organization. D. The Collegial Model
• • The term “collegial” relates to a body of people working together cooperatively.

A contingency relationship exists in which the collegial model tends to be more useful with unprogrammed work, an intellectual environment and considerable job freedom. Characteristics of Collegial Model
• The managerial orientation is towards teamwork.
• Management is the coach that builds a better team.
• The employee response to this situation is responsibility. E. The System Model 8
• It is the result of higher meaning at work by many of today’s employees; they want more than just a paycheck and job security from their jobs.

Characteristics of System Model
• The role of a manager becomes one of facilitating employee accomplishments through a variety of actions.
• Employees embrace the goal of organizational effectiveness. The employee needs that are met are of highest order (e. g. social status, esteem, autonomy, self-actualization) VIII. Conclusions About the Models Evolving Usage There is no one permanently “best” model, because what is best is contingent in what is known about human behavior in whatever environment exists at that time.
• The primary challenge for management is to identify the model it is actually using and then assess its current effectiveness. A manager has two key tasks—to acquire a new set of values as models evolve and to learn and apply the behavioral skills that are consistent with those values. Relation of Model to Human Needs The five models discussed in this report are closely related to human needs. Each model is built upon the accomplishment of the other. Increasing Use of Some Models The trend toward the supportive, collegial and systems models will probably continue.

Contingent Use of Other Models Though one model maybe used at any given time, some appropriate models will be given at any given time. All five models will still be used; however, an emphasis will be given to newer ones. Managerial Flexibility Managers not only need to identify their current behavioral model but also keep it flexible and current. Managers need to read, think, assess, reflect, interact with others be receptive to the growing needs and be receptive to the challenges to their thinking from their colleagues and employees. 9