COURSE CODE : HBO III

TITLE : Human Behaviour in Organizations

TARGET POPULATION : 3rd year Public Administration Students
COURSE FACILITTOR : MS. Joanne G. Saab

WEEK 1

Chapter 1: Organizational Behaviour and Management

Lesson 1: Organizational Behaviour
Lesson 2: Characteristics of Management Science applications
Lesson 3: Models of Organizational Behaviour

CHAPTER OBJECTIVES:
When you have completed this chapter, you should be able to:
1. Understand organizational behaviour
2. Explain the uses of Organizational behaviour theories and concepts
3. Discuss the contingency approach to managing individuals‟ behaviour within an
organizational setting

To understand the organizational behaviour, a useful and meaningful definition is

important. An organization is a collection of people who work together to achieve different
goals. The goals are what people have to carry out as members of an organization. Many
of the goals include earning money, to promote a candidate in an election or a worthy
cause, to achieve prestige and power, and to enjoy a good work experience.

The goals of the organization are what individuals in an organization have to perform
such as providing goods and services to customers. Other goals include making profit to
give stockholders the dividends for their investments, as well as rewards to managers
and employees, or getting candidates elected to positions they want.

An organization provides goods and services that people want the quality and
quantity of these goods and services are the result of the behaviours and performance of
the people. The workforce include executives, managers, highly skilled workers in the
technical department, engineering, sales and in research and development as well as the
people down the line who actually produce goods and services of the organization.

 Organizational behaviour (OB)

 Organizational behaviour is the study of the many factors that affect how
individuals and groups act in the organization and how organizations manage
their environments (George & Jones, 1999)
 Organizational behaviour is an interdisciplinary field dedicated to better
understanding and managing people at work (Kinicki,1998)
 Organizational behaviour is the study of individuals and groups in organizations
( Schermerchon, Hunt & Cesborn, 2001)
 OB is a discipline that has a connection with the ways mangers interact and
manage employees in the workplace. OB tries to improve organizational work
performance. Organizations and the human resource is an important element for
an organization‟s success or failure.

Why Study OB?

Studying organizational behaviour is needed so that information and guidelines can

show managers some approaches that will make them relate with other individuals in the
organization. The knowledge can help them make correct decisions about how to
motivate and coordinate people and resources, as well as to accomplish the
organizations goal. Knowledge of organizational behaviour provides a body of theories
that are products of research and guidelines to manage behaviour in the workplace.

Organizational behaviour concepts and theories make people correctly (1)

Understand (2) describe (3) analyse, how characteristics of individuals, groups, work
situations and the organization itself affect how memebrs feel about and act within their

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organization. Managers who understand organizational behaviour will realize that
different individuals react to events or situations in different ways.

The Manager’s Job

Managers perform their jobs through the work of people. They plan, make decisions,
budget and allocate resources and supervise the activities of others to complete their
goals. They are responsible and accountable to carry out goals in the organization.
Managers know that management is a job geared to achieve goals. It is important that
present and future managers develop the ability to manage the most important resources
of an organization-people.

Managerial Roles

The three general types of roles were interpersonal, informal and decisional roles
( Mintzberg)

 Interpersonal roles come from the authority of a managers‟ position and involve
developing and maintaining positive relationship with others.
 Informal roles concern receiving and transmitting information

Evolution of Organizational Behaviour

Organizational behaviour began as a result of the integration of industrial psychology

and social psychology. The developments in organizational psychology lead to the
expansion of the field from an industrial business view to an expanded application of
behavioural theories.

Classical Organizational Theory

 This theory provided more emphasis on structure or the framework that explains
the interdependent parts of an organization. Some of the classical theorists are
Weber, Fayol and the other scientific management theories.

Bureaucracy

 Weber introduce the term bureaucracy to organization studies to capture the

ideas that; (a) people in the organizations have their own well-defined task and
responsibilities (b) organizations contain hierarchical reporting structures which
mean that most employees report to another person and may have management
responsibilities for others (c) organizations develop their own rules and
procedures for completing task (d) employees occupy positions in the
organizational hierarchy on the basis of merit as judged by others in the
organization and (e) employees act in an impartial and unemotional manner being
motivated by a sense of duty towards achieving organizational goals.
 Bureaucracy is defined as the application of rationality and efficiency to
organizational functioning.
 Emphasized universal rules and procedures to ensure that everyone is treated
fairly and equally.

Beginnings of Management

 In the early part of 21st century, Henri Fayol, a French industrialist, wrote that all
managers do five management functions ( plan, organize, command, coordinate
and control)
 Now, these functions were organized into four ( planning, organizing, leading and
controlling)
 The primary function of an organization is to achieve its goals, and as such it is
important to define those goals and how these goals can be attained. The goals
direct the strategy to be used to achieve organizational goals, and that managers
need to define the goals.

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Fayols Functionalism

 Working in a French mining industry, Henri Fayol published his ideas on

organizations referred to as functionalism. Fayol‟s fourteen (14) principles of
organization still form the basis for understanding the structure of many
organizations.

The Classical School

 The early theorist of the classical school believed that these simple laws or
principles represented the single best way to manage and organized the firm.
 The early works on organizational theory were a consolidation of managerial
experience and many modern companies utilized these ideas. Classical
organizational and management theorist suggested that the principles of
management and of organization were a non-contextual, technical issue. This
means that those principles could be applied to all organizations irrespective of
size, environment, nature of their outputs or the technology used.

Scientific Management

 This theory suggests rationality but not much of the human aspects of
organization.
 It emphasized the application of scientific principles to work management.
 The scientific management is a subset of the classical school: the latter mainly
concerned with the wider organization and its structure, whereas the former
focuses on job design.
 Scientific principles, it was suggested, should be applied to work organization in
order to seek the „one best way‟ of conducting any job. The result would be
significant efficiency gains, an increase in productivity and, therefore, in both
wage rates and profitability and, in a more de-humanized workplace.

Frederick Taylor

 Taylor asserted efficiency, standardization and discipline that would result from a
process of scientific management of work task.
 He also suggested a clear distinction be made between planning a job, a
management role, and conducting the task as well as a worker‟s role.
 He proposed a scientific selection process to select the correct person to do the
task. To make work efficient, jobs should be standardized and simplified.

Gilbreth and Gantt

 Frank Gilbreth first advocated the use of time and motion methodologies. Like
Taylor, he advocated reducing the extent and frequency of unnecessary motions
used in completing a task. He explained that by reducing unnecessary motion it
would be possible to reduce worker fatigue. He suggested that fatigue prevented
efforts to increased productivity. So he suggested reductions in the working day as
well as regular brief rest period at work. Gilbreth and his wife Lillian Gilbreth the
first researchers to think seriously about the workers needs which are still
practiced today.
 Henry Gantt, introduced detailed instruction cards for workers to lead them
through step by step, complex, but repetitive task. „Desk instruction‟ are still to be
found in many task today. He developed new payment system, combining basic
and bonus schemes.

Human Relation School

 Theorist of human relations did not like the opinion of other theorist that
organizations are mechanistic, rational, and impersonal entities which embody
strict lines of command and hierarchical positions.
 The emphasis should be on people, considering motivation, autonomy, trust and
openness in managerial and organizational matters.

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The Human Relations movement

 In the 1930s, union-management collective bargaining agreement was legalized.

Behavioural scientist then began conducting on-the-job research to call attention
to the “human” factor in the organization. Because a lot of managers were unable
to keep unions out of their factories, they adopted better human relations and
improved working conditions.

Elton Mayo and Mary Parker Follet

 The writings of Elton Mayo and Mary Parker Follet were the foundation of the
human relations movement
 The theorist of this movement claimed that describing and managing
organizations by just looking at the structure forget the most important factor of
any workplace: the individual and social psychology of workers. They believed
that improving social relations among workers with management will result in
higher productivity. Higher production was believed to result from having satisfied
workers.

Four-Function Typology to Assess Managers

 To evaluate the effectiveness of managers Liker (1961) concluded that

supervisors who focus most of their attention on getting the job done are less
successful than those who gave greater importance on human relations.
 According to Likert, the style that management uses with its employees can be
classified as one of the four types that he called four-function typology. Liket call
them a system
o System 1 is exploitative authoritative, where decisions are made at the top,
communications come from the top, and fear is used to motivate workers.
o System 2 or benevolent authoritative, allows some upward communications.
Rewards and punishments are used to motivate workers, but decisions
are still made at the top.
o System 3 or consultative, rewards are emphasized over punishments,
communication upward is limited, but employees influence decision
making. In this system, employees are given more freedom, good
performance is recognized and suggestions from workers are accepted.
o System 4 or participative, employees are encouraged to reach high levels of
achievement and satisfaction through their work, communication at all
levels is open and honest, and workers have direct influence in making
decisions.

System Theory

 The system approach in organizations combined the contrasting stand of the

classical and human relations school. The system approach acknowledges the
presence of environmental factors which may be considered outside the
organizational boundaries but is still influential in organization activities.

The System Approach

 The system approach to management is grounded on the general system theory.

Ludwig von Bertalanffy, is recognized as the founder of the general system theory.
 The premise of the theory is that to understand fully the operation of an entity, the
entity must be viewed as a system. A system is a number of interdependent parts
functioning as a whole for some purpose.

Types of System
1. Closed- Closed systems are not influenced by, and don‟t interact with, their
environments. They are mostly mechanical and have predetermined motions or
activities that must be done without considering the environment.
2. Open- Open systems is continually interacting with its environment

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Theory X and Theory Y

 Douglas McGregor proposed this theory that organization that continues to

influence managers and social scientist even at present.
 Theory X is a belief that it is human nature to dislike work so employees must be
carefully disciplined and controlled to be productive. Management must use
external motivators such as rewards and punishments to control the behaviours of
the workers. To help managers move away from Theory X, he formulated Theory
Y.
 Theory Y organizations sees workers as trustworthy, open to new experience and
willing to be accountable for their actions. Second, Theory Y accept that people
naturally enjoy work and consider it as an opportunity for individuals growth.
Finally, individuals when given autonomy and challenge are motivated to
accomplish more. Theory Y is a positive set of beliefs about people in
organizations.

Total Quality Movement

 Total Quality Management (TQM) is an organizational culture aimed at training,

continuous improvement and customer satisfaction. This means that the
organization‟s culture is defined by and supports the attainment of customer
satisfaction through an integrated system of tools, techniques and training
 TQM is centred on employees because product and service quality is
continuously improved with the learning and participation of every employee.

The Management Science Approach

 Churchman, Ackoff, and Arnoff define management science, or operations

research (OR), approach as (1) an application of the scientific method to problems
arising in the operation of a system and (2) the solution of these problems by
solving mathematical equations representing the system.
 Management science approach suggests that managers can best improve their
organizations by using the scientific method and mathematical techniques to
solve operational problems.
 Emphasized scientific method and quantitative techniques to increase
organizational success.

 Characteristics of Management Science Applications

Management science techniques are applied when these four primary techniques
are present. First, the management problems are so complicated that the managers need
help in analysing a large number of variables. Management science techniques increase
the effectiveness of the manager‟s decision making in such a situation. Second, a
management science application normally uses economic implications as a rule for
making a particular decision.

Third, the use of mathematical models to investigate the decision situation is ideal for
management science application. Models constructed to represent reality are used to
determine how the real world situation might be improved. Fourth quality of management
science application is used of computers. Complex managerial problems and the
mathematical analysis of problem-related information required two factors that make
computers very useful to the management science analyst.

Now managers use such management science tools as inventory control models,
network models, and probability models to aid them in the decision-making process.

Contingency approach

 This approach use management tools and techniques in situations where the
organizational structure and management style rely upon a set of “contingency
factors”. The situation is usually characterized by uncertainty and instability of the
environment that managers have to solve problems according to the situation

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 happening at the time
 The contingency approach makes managers do what is necessary in a given set
of situation. This approach emphasizes „if then” relationships: “if” this situational
variable exist, “then” this is the action a manager probably would take.

Contingency theories of Organization

 The contingency theory applies best in environment that are not stable, and are
changing repeatedly that affect the way they operate. Since environments are
constantly changing, an organization must be ready to adapt. Changes may come
in the form of laws or Republic Acts (RA).

 Contingency factor: the business environment

.

 This factor explains that in environments that are certain and stable, organizations
usually develop a form and structure which is efficient. The factor may be one with
a degree of managerial control and mechanistic structures and system. If an
organization‟s environment is uncertain and complex, managers provide
structures that are flexible.

 Contingent factor: technology

 One idea was that companies which design their organizational structure to fit the
type of production technology they use are likely to be successful (Woodward,
1965). This factor provides variations in organizational structure between
companies and that the variation can be traced to differences in manufacturing
techniques.

 Contingent factor: organizational size

 The organizational size of the unit was negatively correlated with job satisfaction,
staff turnover and absenteeism from work, while larger organizations can be more
standardized by rules and procedures. Regarding internal communications and
coordination bigger organizations address the concerns through structural and
procedural mechanism.

 Models of Organizational Behaviour

Organizations differ in such factors as the quality of systems they develop and
maintain, as well as in the results they get. Also, different results are caused by different
models of organizational behaviour.

Models are also called paradigm, or frameworks of possible explanations about how
things work.

The Autocratic Model

 In an autocratic organization the managerial approach is formal, official and everyone

has to follow authority. Authority is authorized by right of command over the people in
the lower levels
 In the autocratic model, employees obey the boss but do not have to respect them.
The psychological result is dependence on the boss, who has the power to hire, fire
and perspire them to submit to the boss.

The Custodial Model

 In the custodial approach, employees are dependent on the organization. Even

though employees do not depend on their boss for their salaries, they depend on
organizations for their security and welfare.

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The Supportive Model

 More connected to the leader and not on power or money. Because of leadership,
management provides an atmosphere that encourages employees to grow and be
creative for the organization.

The Collegial Model

 This suited to an environment that allows more freedom for the jobs workers
perform. The collegial model depends on management to build a feeling of
partnership with employees. When employees are valued, they feel needed and
useful.

Reference:

Mosura, C et.al, (2012), Human Behaviour in Organizations, ASCENT Communication

Solutions and Publishing Enterprises 2012,ISBN 978-971-94993-5-0

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