ORGANIZATIONAL BEHAVIOR

College of Public Administration

[ PA3 ] MANAGEMENT OF ORGANIZATIONS

GROUP REPORT No. 2:

ORGANIZATION BEHAVIOR

Reported By:

DIMARUCOT, OMAR N. ( BSPA – IIA )

Chapter Objective:

Why Do We Study ORGANIZATIONAL BEHAVIOR?

To learn about yourself and how to deal with others

You are part of an organization now, and will continue to be a part of various organizations

Organizations are increasingly expecting individuals to be able to work in teams, at least some of the time.

You would be able to empower yourself and see companies and its dynamics in a different light thereby becoming better managers and future leaders.

I N T R O D U C T I O N

Basic Concepts:

Organization

Organization Structure

Organizational System

Organizational Culture

Organizational Behavior

Organizational Behavior System

Organizational Climate

I N T R O D U C T I O N

What is an ORGANIZATION ?

A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.

Shared… vision? mission? values?

Concepts of Organization

Importance of Organizations Bring together resources to achieve desired

goals and outcomes Produce goods and services efficiently Facilitate innovation Use modern manufacturing and information

technologies Adapt to and influence a changing environment Create value for owners, customers and

employees Accommodate ongoing challenges of diversity,

ethics, and the motivation and coordination of employees


Organization Structure System of relations, governing activities of

employees, reliant upon one another to meet common goals

Embedded in position descriptions Pictured in position relationships shown on organizational

charts Revealed in distribution of authority and communication

channels Since it is based upon relationships, it changes, even

when it looks fixed Varies from the simple to complex Can be formal or informal May be centralized or decentralized Marked by specialization and coordination


Organizational System

"organizational systems are stable, influence everyone's performance and can be consciously designed."

However, prior to planning an organizational system, knowledge of the various types of systems that exist is required.


Types of Organizational System

1. Tribal, Agricultural, & Familial

2. Hierarchical Organization

3. Flat Organizational Structure

4. Matrix Organizational System

5. Fishnet Organizational Model



1. Tribal, Agricultural, & Familial


It was developed out of necessity because populations increased and the need for food and security became pressing.

headed by a chief who is followed by a group of people that may differ in class and leadership role


2. Hierarchical Organization


also know as a bureaucratic management, there is a chief executive officer at the head of the organization.

It is simple and easy to understand because of the well-defined structure, authority and job responsibilities.


3. Flat Organizational Structure


a business in which the structure has few or no levels of management between staff members and managers.

Also known as horizontal systems. functions on the assumption that well-trained

and skilled workers are more productive when directly involved in the decision-making process, rather than supervised by many managers.


4. Matrix Organizational System


combines both the flat and hierarchical structures.

a general manager is at the top of the hierarchy while the rest of the organization is mostly flat.

allows for a better integration of diverse areas of expertise.

allows for wiser decisions because of the wide range of skills and specialization from team members applied to the business.


5. Fishnet Organizational Model


developed in the 1990s, is an informal structure that meets immediate demands and provides long-term flexibility.

The system allows an executive committee to keep the control and make important decisions while decentralized work units are formed around the tasks and projects.

This model can only work if multiple information technologies, such as telecommunications, are used and management principles are understood to allow for the constant change in teams to be done as efficiently as possible.

Basic Concepts of Organizational System

1. Individual Differences A person is a distinct individual, he is unique and

different from others.

2. Perception Is the act of faculty apprehending by means of the

sense of the mind.

3. Whole Person When a person joins an organization, he is hired not

only because of his brains but, as a whole, person possessed with certain characteristics.


Basic Concepts of Organizational System

4. Motivated Behavior These may relate to a person’s needs or the

consequences that result from acts.

5. Desire for Involvement Many employees today are actively seeking opportunities

at work to become involved in relevant decisions, thereby contributing their talents and ideas to the organizations’ success.

6. Value of the Person For their skills and abilities and to be provided with

opportunities to develop themselves.


Organizational Culture

“…the system of norms, beliefs and assumptions, and values that determine how people in the organization act—even when that action may be at odds with written policies and formal reporting relationships.”

Not a model for management but a theory that explains workplace behavior.

Often operates unconsciously but guides action and affects ability to change.

Exists alongside formal organizational structure, can be at odds with it.

Learned responses of an organization in adapting to an external environment and integrating internally its experiences.


Organizational Behavior a field of study that investigates how individuals, groups

and structure affect and are affected by behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.

as an applied science is a scientific discipline in which a larch number of research studies and conceptual developments constantly add to its knowledge base.

It provides a useful set of tools at many levels of analysis to help managers look at the behavior of individuals within the environment. I

It also aids their understanding of the complexities which affect the interpersonal relations of dynamics of relationships within small groups, both formal and informal.

The nature of study of organizational behaviour is investigative to establish cause and effect relationship.

Concepts of Organizational Behavior

What is HUMAN BEHAVIOR? Any act of an individual

person which is considered human behavior is a reflection of his thoughts, feelings, emotions, sentiments, whether conscious or not.


Goals of Organizational Behavior

1. To Describe systematically how people behave as they interact with

one another. 2. To Understand why people behave in varied manners. Managers should be able to understand the reasons

behind the actions of their employees. 3. To Predict predict future employee behavior so that an appropriate

course of action may be employed. 4. To Control to control and develop human activity at work


Factors Affecting Organizational Behavior


ORGANIZATION BEHAVIOR

Structure

Environment

TechnologyPeople



1. PEOPLE People make up the internal social system of the

organization. The system consists of individuals and groups, large or small, with different values and orientations.

People join formal and informal groups. People are the thinking, iiving and feeling beings who

interact as they work in an organization to achieve their objectives.

Organizations exist to serve people; people do not exist to serve organizations.

The diversity of work force in terms of educational backgrounds, talents, values, culture, needs, and perspectives in their jobs presents a challenging to managerial style to be attuned in these diverse patterns and trends.



2. STRUCTURE The structure fundamentally defines the formal

relationships and use of human resources in an organization.

Different tasks are required to accomplish use of human resources in an organization.

Different tasks are required to accomplish the activities of the organization.

These people have to be related in some structural way so that their tasks can be effectively coordinated.

These relationships naturally create some complex problems of negotiation, cooperation and decision making.



3. TECHNOLOGY It provides the resources with which people work and

affects the tasks they perform. The great benefit of technology is that it allows works

to perform much better work. The impact of technology includes the use of

automated control systems in assembly lines, the impressive advance in computer hardware and software capabilities.

These technological advancements increase pressure on organizational behavior to maintain the balance between technical and social systems.



4. ENVIRONMENT All organizations operate within an internal and an

external environment. There are various changes in the environment

because of new demands on organizations. People expect new products and services and

competition for customers come from other countries.


Organizational Behavior & Individual

Individual & Group Goals Individual structure the organization to attain not

only the organizational goals but also their potential goals.

Work Group Exist at all levels of organization and are reffered

to but such labels as management teams, committees, task forces, and productive units.

Elements of an Organizational Behavior System

Management’sPhilosophy ● Values ● Vision ● Mission ● Goals

Management’sPhilosophy ● Values ● Vision ● Mission ● Goals

Organizational CultureOrganizational CultureFormal Organization

Formal Organization

Informal Organizatio

n

Informal Organizatio

n

Social Environment

Social Environment

Leadership ● Communication ● Group Dynamics

Leadership ● Communication ● Group Dynamics

Quality of Work Life (QWL)Quality of Work Life (QWL)

MotivationMotivation

Outcomes:· Performance· Employee satisfaction· Personal growth and development

Outcomes:· Performance· Employee satisfaction· Personal growth and development


Philosophy of Organizational Behavior

The philosophy (model) of organizational behavior held by management consists and 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 manager.

Five major organizational behavior philosophies includes autocratic, custodial, supportive, collegial and system.


Selected Element of a Philosophy Statement

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 that the sum of individual efforts. Team members must be reliable and committed to the team.

• Innovation is essential.

• Open communications are important for attaining success.

• Decision should be reached participatively.


Selected Element of a Philosophy Statement

Two sources of Philosophy of Organizational Behavior

Fact premise are acquired through direct and indirect lifelong learning and are very useful in guiding our behavior.

Value premise represent our views of the desirability of certain goals and activities. Value premises are variable beliefs we hold and are therefore under our control.

Fact premise

Value premise


V A L U E S

The rules by which we make decisions about right and wrong, should and shouldn't, good and bad.

They also tell us which are more or less important, which is useful when we have to trade off meeting one value over another.


Examples of Values Statements


Values Statement

We believe in demonstrated competence, institutional integrity, personal commitment and deep sense of nationalism.(TESDA)


Examples of Values StatementsOUR VALUES INTEGRITY: We are morally upright, honest and sincere in

our private and public lives. PROFESSIONALISM: We consistently implement the law,

provide timely and accurate information to investors, and render efficient and competent service to the public.

ACCOUNTABILITY: We abide by prescribed ethical and work standards in government service.

INDEPENDENCE: We act without fear or favor, and render sound judgment in the performance of our duties and responsibilities.

INITIATIVE: We are strategic and forward-looking in the fulfillment of our developmental and regulatory functions.

( Securities and Exchange Commission )

http://www.csc.gov.ph/cscweb/value.html


Examples of Values Statements

VALUES STATEMENTThe Commission, bound by its advocacy of genuine and ideal

public service, remains committed in the propagation of the highest standards of integrity and organizational efficiency.

As public servants whose cause is to serve the people …We recognize the value of gender-responsiveness on sustaining

human development.We encourage the genesis of new ideas that lead to policies

and growth-enhancing work environments.We espouse the philosophy of genuine selfless public service

as the true mark of performance and excellence.WE OFFER OURSELVES TO THE CAUSE OF SERVING THE

PEOPLE, THEY DESERVE NO LESS. ( Civil Service Commission )

V I S I O N It represents a challenging portrait of the

organization and its members can be – a possible, and desirable future.

Leaders need to create exciting projections about 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.


The Tarlac State University (TSU) shall be a comprehensive institution of excellence in higher education for total human development.(TSU)

ABS-CBN is the total information and entertainment company; a leading player and center of creativity in Asia, and a major player in the global market. (ABS-CBN)

To be the Premier Countryside Financial Institution. (Green Bank, Inc.)

TESDA is the leading partner in the development of the Filipino workforce with world-class competence and positive work values. (TESDA)

Examples of Vision Statements


M I S S I O N Identifies the business it is in, the market niches it

tries to serve, the types of customer it is likely to have, and the reasons for its existence.

It even includes a brief listing of the competitive advantages, or strengths, that the firm believes it has.

It is more descriptive and less future-oriented than vision.

Need to be converted to goal to become operational and useful.


TESDA provides direction, policies, programs and standards towards quality technical education and skill development.

Examples of Mission Statements

Mission of TESDA

The Tarlac State University (TSU) is committed to develop, promote, and sustain quality and relevant programs in higher education for people empowerment, professional development, and global competitiveness.

Mission of TSU


To fulfill our pivotal role in shaping the Filipino people's consciousness through information and entertainment programs that adhere to world class standards.

To diversify and expand into new business ventures which include animation, post-production, theater operations, theme parks, international movie joint ventures, audio production, licensing and merchandising, and other information and entertainment-related

Mission ABS-CBN



To provide fast customer-driven products and services that exceeds client expectation efficiently and effectively;

To care for the highly motivated staff by constantly seeking better competencies for them through strategic alliances and through a competitive compensation and benefits package.

Mission of Green Bank, Inc.



G O A L S

Goals are relatively concrete formulations of achievements the organization is aiming for 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.


To establish good business relationships with our clients by the end of 2010.

To keep client complaints down to no more than 5 complaints per month.

To build a professional and effective team that will support & deliver Service Level Agreements with clients.

To ensure a 95% uptime service quality level is maintained for the computing environment for the entire year of 2006, while staying within budget.


Examples of Goals

Five (5) Models of Organizational Behavior System

Models of Organizational Behavior

Autocratic Model

Custodial Model

Supportive Model

Collegial Model

Systems Model

The basis of this model is power with a managerial orientation of authority.

Those who are in command must have the power to demand “you do this – or else”

AUTOCRATIC MODEL

http://www.nwlink.com/~donclark/leader/leadob.html



The employees in turn are oriented towards obedience and dependence on the boss.

The employee need that is met is subsistence.

The performance result is minimal.



Autocratic Model



Autocratic ModelIts principal weakness is its high human cost especially as caused by micromanagement.

Micromanagement – a natural pattern of autocratic managers – is the immersion of a manager into controlling the details of daily operations.

Employees typically detest a micromanager, with the result being low morale, paralyzed decision making due to fear of being second-guessed and high turn-over.


Autocratic Model

Useful:

Acceptable approach to guide managerial behavior when there were no well-known alternatives.

Useful under some extreme conditions such as organizational crises.

The employees in turn are oriented towards security and benefits and dependence on the organization.

The basis of this model is economic resources with a managerial orientation of money.



CUSTODIAL MODEL


The employee need that is met is security.

Employee feel with reasonable contentment.

Most employees are not producing anywhere near their capacities.

The performance result is passive cooperation.



Custodial Model


The employees in turn are oriented towards job performance and participation.

The basis of this model is leadership with a managerial orientation of support.


SUPPORTIVE MODEL

Psychological result is a feeling of participation and task involvement in the organization.

Employees may say “we” instead of “they”

Employees are strongly motivated because their status and recognition needs are better met, thus they have awakened drive for work.


Supportive Model

The basis of this model is partnership with a managerial orientation of teamwork.

The result is that the employees feel needed and useful.

“There is at least one important thing that cannot be done unless you do it”


COLLEGIAL MODEL


The employees in turn are oriented towards responsible behavior and self-discipline.

The employee need that is met is self-actualization.


Collegial Model


Employees normally feel some degree of fulfillment, worthwhile contribution, and self-actualization.

This self-actualization will lead to moderate enthusiasm in performance.



Collegial Model



SYSTEM MODEL Employees want a work context that is

ethical, infused with integrity and trust and provide an opportunity to experience a growing sense of community among co-workers.

There is spirituality at work - the desire for employees to know their deepest selves better, to grow personally, to make a meaningful contribution to society, and to demonstrate integrity in every action taken.


System Model Managers must increasingly demonstrate a

sense of caring and compassion, being sensitive to the needs of the diverse workforce.

This model reflects the values underlying positive organizational behavior, where managers focus their attention on helping employees develop feelings of hope, optimism, self-confidence, empathy, trustworthiness, esteem, courage, and resiliency.


System Model

Managers at all levels needs to display two key ingredients:

1. Authenticity – the demonstrated ability to open themselves up to others by being transparent, while “walking the talk” of the underlying values.

2. Social intelligence.

Five Dimensions of Social Intelligence1. EMPATHY – appreciation for and connectedness with

others.2. PRESENCE – projecting self-worth in one’s bearing. 3. SITUATIONAL RADAR – ability to read social

situations and respond appropriately.4. CLARITY – using language effectively to explain and

persuade. 5. AUTHENTICITY - being “real” and transparent, while

projecting honesty.


System Model

Karl Hans Albrecht Karl Hans Albrecht is a German entrepreneur who founded the discount supermarket chain Aldi with his brother Theo. As of October 2012, Albrecht is listed as one of the richest people in the world with an estimated net worth of US$22.6 billion.

Managers try to convey to each workers;

“You are an important part of our whole system. We sincerely care about each of you. We want to join together to achieve a better product or service, local community, and society at large. We will make every effort to make products that are environmentally friendly”.


System Model

Support employee commitment to short- and long-term goals.

Coach individuals and groups in appropriate skills and behaviors.

Model and foster self-esteem. Show genuine concern and empathy for

people. Offer timely and acceptable feedback.

Facilitators Roles for Managers in the System Model of Organizational Behavior


System Model

Influence people to learn continuously and share that learning with others.

Help individuals identify and confront issues in ethical ways.

Stimulate insights through interviews, questions, and suggestions.

Encourage people to feel comfortable with change and uncertainty.

Build cohesive, productive work teams


System Model

Facilitators Roles for Managers in the System Model of Organizational Behavior

Employees embrace the goal of organizational effectiveness and recognize the mutuality of company-employee obligation.

It creates a sense of psychological ownership for the organization and its product services.


System Model

The highest-order needs (e.g. social, status, esteem, autonomy, and self-actualization) are met.

Engender employees’ passion and commitment to organizational goals.

Employees go beyond the self-discipline and reach a state of self-motivation.


System Model

Autocratic Custodial Supportive Collegial System

Basis of model Power Economic resources Leadership Partnership

Trust, community, meaning

Managerial orientation Authority Money Support Teamwork Caring,

compassion

Employee orientation Obedience Security and

benefitsJob performance

Responsible behavior

Psychological ownership

Employee psychological result

Dependence on boss

Dependence on organization Participation Self-discipline Self-motivation

Employee needs met Subsistence Security Status and

recognitionSelf-actualization Wide range

Performance result Minimum Passive

cooperationAwakened drives

Moderate enthusiasm

Passion and commitment to organizational goals


Five (5) Models of Organizational Behavior System

Evolving Usage

Relation of Models to Human Needs

Increasing Use of Some Models

Contingent Use of All Models

Managerial Flexibility

Conclusion about the Models



Conclusion about the ModelsEvolving Usage

Manager/Organization use the models tends to evolve over time.

There is no one permanently “best’ model.

Primary challenge to management is to identify the model it is actually using and then assess its current effectiveness.



Relation of Models to Human Needs

The five models are closely related to human needs.

Each model is build upon the accomplishments of the other.



Increasing Use of Some Models

The trend toward the supportive, collegial and system models will probably continue.

Only these newer models can offer the satisfaction of the employees needs for esteem, autonomy and self-actualization.



Contingent Use of All Models

Though one model may be most used at any given time, some appropriate uses will remain for other models.

The 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

Managers need to identify their current behavioral model and must keep it flexible and current.

Managers need to read, to reflect, to interact with others, and to be receptive to challenges to their thinking from their colleagues and employees.

ORGANIZATION CLIMATE “Organizational culture is with the nature of belief and expectations about organizational life, while climate is an indicator of whether those beliefs and expectations are being fulfilled.”

Employees in the organization keep studying the management philosophy and various actions they take to deal with organizational factors that are of a routine nature.

These include the following:

ORGANIZATION CLIMATE

ORGANIZATION CLIMATEA. Selection Process of the employees.B. Leadership style and approach to solve problems of the

employees.C. Wage administration.D. Attitude to implement change and incorporate latest

technology.E. Job description.F. Organizational structure and frequency to modify the

same based on need.G. Performance evaluation.H. Promotion policy and its implementation.I. Efforts involved in promoting creativity and

innovations.J. Availability of resources for research and development.K. Organizational values and promotion of culture.



(a) Overt factors can be measured and fair

assessment can therefore be made about the intentions of the management and efforts they are putting in to build an appropriate organizational climate.

• Hierarchy• Goals of the organization• Financial resources• Skills and abilities of employees•Technological state of the organization• Performance standards adopted• Efficiency measurement


(b) Covert factors can not be quantified being of

subjective nature

• Values• Attitude• Norms• Feelings• Interaction• Supportiveness• Satisfaction

organizational climate is classified into two factors as under:

Characteristics of Health Organization

1) Objectives are widely shared by the members and there is a strong consistent flow of energy toward those objectives.

2) People feel free to signal their awareness of difficulties because they expect the problems to be dealt with and they are optimistic that these problems can be solved.

3) Problem-solving is highly pragmatic. In attacking problems, people work informally and are not preoccupied with status, territory, or second guessing “what higher management will think.” A great deal of non-conforming behavior is tolerated.

4) The judgment of people lower down in the organization is respected.

Characteristics Healthy Organizations



5) Collaboration is freely entered into. People readily request the help of others and are willing to give in turn. Ways of helping one another are highly developed. Individuals and groups compete with one another, but they do so fairly and in the direction of a shared goal.

6) When there is a crisis, the people quickly band together in work until crisis departs.

7) Conflicts are considered important to decision-making and personal growth. They are dealt with effectively, in the open. People say what they want and expect others to do the same.



8) There is a great deal of on-the-job learning based on a willingness to give, seek, and use feedback and advice. People see themselves and other as capable of significant personal growth and development.

9) Joint critique of progress is routine.

10) Relationships are honest. People do care about one another and do not feel alone.

11) People are “turned on” and highly involved by choice. They are optimistic. The work place is important and fun (why not?).

12) Leadership is flexible, shifting in style and person to suit the situation.



13) There is a high degree of trust among people and a sense of freedom and mutual responsibility. People generally know what is important to the organization and what isn’t.

14) Risk is accepted as a condition of growth and change.

15) “What can we learn from each mistake?”

16) Poor performance is confronted, and a joint resolution sought.



17) Organizational structure, procedures, and policies are fashioned to helped people get the job done and to protect the long-term health of the organization, not to give each bureaucrat his due. These procedures are also readily changed.

18) There is a sense of order, and yet a high rate of innovation. Old methods are questioned and often give way to new ones.

Characteristics Unhealthy Organizations

Characteristics of Unhealthy Organization

1) Little personnel investment in organizational objectives, except to top levels.

2) People in the organization see things going wrong and do nothing about it. Nobody volunteers. Mistakes and problems are habitually hidden or shelved. People treat each other in a formal and polite manner that masks issues—especially with the boss. Non-conformity is frowned upon. People talk about office troubles at home or in the halls, not with those involved.

3) People at the top try to control as many decisions as possible. They become bottlenecks, and make decisions with inadequate information and advice. People complain about manager’s irrational decisions.



4) Managers feel alone in trying to get things done. Somehow, orders, policies and procedures do not get carried out, as intended.

5) The judgment of people lower down in the organization is not respected outside the marrow limits of their jobs.

6) Personal needs and feelings are side issues.

7) People compete when they need to collaborate. They are jealous of their area of responsibility. Seeking or accepting help is unthought of they destruct each other’s motives and speak poorly of one another, the manager tolerates this.

8) When there is a crisis, people withdraw or start blaming one another.



9) Conflict is mostly covert and managed by office politics and other games, or there are interminable and irreconcilable arguments

10) Learning is difficult. People don’t approach their peers to learn from them, but have to learn from their own mistakes; they reflect the experience of others. They get little feedback on performance, and much of that is not helpful.

11) Feedback is avoided.

12) Relationships are contaminated by marksmanship and image-building. People feel alone and lack concerns for one another. There is an undercurrent of fear.



13) Conflict is mostly covert and managed by office politics and other games, or there are interminable and irreconcilable arguments

14) Learning is difficult. People don’t approach their peers to learn from them, but have to learn from their own mistakes; they reflect the experience of others. They get little feedback on performance, and much of that is not helpful.

15) Feedback is avoided.

16) Relationships are contaminated by marksmanship and image-building. People feel alone and lack concerns for one another. There is an undercurrent of fear.

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