Human Behavior in Organization

Human Behavior in Organization
H – Human
B – Behavior (acts of cognitive mind; experiences in the past)
O – Organization (2 or more people with common purpose/ideas/objectives)
Organizational Behavior Purpose: improve organization’s EFFECTIVENESS * Individual behavior * Group behavior * Firm (organization)
Human – behaves on his own & behaves differently when he is in a group
OB – field of study that investigates the impact that individuals, groups, and structure (organizational structure) have on the behavior within the organization
Purpose: applying such knowledge towards improving that organization’s effectiveness

Firm – separate & distinct personality; individual or group
Table of Organization (TO) – it is an organizational structure that has: policies, rules & regulations, and procedures
Procedures – how will you process yourself into something; step by step process

Application / Opportunities of OB 1. Responding to globalization – improvement of something

2. Employees --> not all the same
Employees --> not all the same
Managing workforce diversity – workforce & diversity

3. Improving quality and productivity
Productivity – ability to do many things in a given time
Quality – positive attributes (durable, reliability, aesthetics, appealing to the eye, service ability, criteria, and specifications) Conforms to specifications = product with quality

Quality conformity to specifications
Doing something at the right time & place & action
Doing something at the right time & place & action

4. Improving customer service
SATISFIED – we should be satisfied by their service
Effect/output: your customers will come back.

5. Improving people skills
OB helps identify who are bad and good employees
COMPETENCY – good/adequate

6. Empowering people
Empowerment (limited authority)
-the authority of one is empowered
Ex. Manager is empowered to change your order that fell on the floor

7. Stimulating innovation & change
Change + Innovation (new)

8. Helping employees balance work/life conflicts
Time management – meditate

9. Improving ethical behavior
Ethics – social (group of people/society) attitude towards what is right or wrong
*depends on what group you belong to

Intuition VS Systematic Study
Intuition – or those we refer to as “gut feeling” about why people do what they do and makes than “tick”

Systematic Study – refers to looking at relationships attempting to attribute causes and effects and basing conclusions or scientific evidence
-That is on data gathered under controlled conditions and measured and interpreted in a thorough manner
-Data gathered
-Scientific study & basis

Scope of the OB Field
- psychology -sociology
- social psychology - anthropology
- political science

- psychology -sociology
- social psychology - anthropology
- political science

OB being an applied behavioral science is built on a number of contributing behavioral discipline such as:

Psychology – measure, explain, and change the behavior of humans/animals
Sociology – study of people in relation to their fellow human beings
Social Psychology – a blend of psychology and sociology that focuses on the influence of people on one another
Anthropology – study of societies to learn about humans and their activities

Foundations for Individual Behavior
Biographical characteristics-variables that impact employee productivity, absence, turnover, and satisfaction
-these are personal characteristics such as age, gender, and marital status
-that are objective and easily obtained from personal records
Employee Turnover – number of persons resigning and entering Reason: they do not stay in your company too long; they resign or quit easily Biographical Characteristics 1. AGE
-belief that job performance declines with increasing age
Younger workers are absent from work more often than older workers due to avoidable reasons.
Older workers have lower rates of avoidable absences but a higher percentage of unavoidable absences.

2. GENDER
-the assumption is there is NO significant difference in job productivity between men and women nor are there differences in job satisfaction
Women have higher rates of absenteeism than men do

Ex. Sick baby – mommy has to absent from work

3. MARITAL STATUS
-married employees have fewer absences, undergo less turnover, and are more satisfied with their jobs than the unmarried workers Ex. Marriage imposes increased responsibilities that make a steady job more valuable and important

4. TENURE
-this is seniority of time on a particular job. There is a positive relationship between tenure and job productivity. Seniority however, has a negative relationship with absenteeism. The longer an employee is with his job, the less likely he will quit

Historical Roots of Contemporary Management Practices 1. Frederick Taylor – “Father of Scientific Management”
– he championed the one best way approach for a job to be done

2. Frank & Lilian Gilberth –first to use motion pictures to study hand and body motions to eliminate wasteful motions

3. Henry L. Gantt
– he is well noted for the scheduling graph called the Gantt Chart

4. Henri Fayol
– designated elements in management as a Universal Set of activities, POLC unity of command principles
Henri Fayol’s 14 management principles:

1. Division of work – work should be divided equally

2. Authority – right to give order

3. Discipline –effort of workers

4. Unity of Command –workers should receive orders from one boss

5. Unity of Direction –all should move towards a common objective

6. Subordination of Individual Interest to the General Interest
–interest of one should not take priority over the interest of the organization as a whole 7. Remuneration –should be considered in determining a worker’s rate of pay

8. Centralization –as lowering the importance of the subordinate role.
(Decentralization – increasing the importance)

9. Scalar Chain –process certain authority

10. Order –all should be treated as equally as possible for efficiency & coordination

11. Equity –all employees should be treated as equally as possible

12. Stability of Tenure or Personnel –retraining, retiring, and recruitment is a priority

13. Initiative –encourage worker initiate (new/additional work activity)

14. Espirit de Corps –(teamwork) encourage harmony and general good feelings

5. Robert Owen
–argued that money spent on improving labor conditions was one of the best investments that firms could make

6. Mary Parker Follet
–argued that managers and employees should view themselves as partners

7. Chester Barnard –argued that success depend on maintaining good relations with all stakeholders

8. Elton Mayo –argued that group influences significant affect individual worker output and that money is less of factor

9. Max Weber
– ideal type of organization “Bureaucracy”

10. Douglas McGregor
– Theory X & Theory Y

Theory X – negative view of people; fear of punishment
Theory Y – positive view of people; applications of rewards

VALUES, ATTITUDES, AND JOB SATISFACTION
Values – (do not change) typically stable, specific, enduring and normally learned early in life
Attitudes – (may change) evaluative statements or judgments; less stable than values What are Values and why are they important?
They are convictions and contain a judgmental element which carries an individual’s ideas as what is right, good, and/or desirable.
Values are typically stable, specific, and enduring and normally learned early life.
Values lay the foundation for understanding attitudes and motivation, and because they influence perception.
Values influence behavior. Can Values be classified?
2 Approaches to values classifications: * Terminal Values –refers to end-states of existence; * The goals that a person would like to achieve during his/her lifetime

* Instrumental Values – preferable modes of behavior or achieving one’s terminal values

Instrumental Values
Hardworking
Honest, loyal, respectful
Competent, effective
Instrumental Values
Hardworking
Honest, loyal, respectful
Competent, effective
Terminal Values
Comfortable life
True friendship
Sense of accomplishment
Terminal Values
Comfortable life
True friendship
Sense of accomplishment

Attitudes, what are they and why are they important?
Attitudes are evaluative statements or judgments concerning people, objects or events. They reflect how one feels about something. They are important because they affect job behavior.
Attitudes are not the same as values but they are interrelated.
Attitudes are less stable than values.
3 Components of an Attitude: * Cognitive component –the opinion or belief segment of an attitude

* Affective component –the emotional feeling segment of an attitude

* Behavioral component –an intention to behave in a certain way toward someone or something

Job Satisfaction - is a measure of an individual’s general attitude toward his/her job. (It impacts employee productivity, absenteeism, and turnover)
Job involvement -measures the degree to which a person identifies psychologically with his job and considers his performance level important to self-worth.
Organizational Commitment -a state wherein an employee identifies with a particular organization and its goals and his wish to remain a member

The Effect of Job Satisfaction on Performance * Satisfaction & Productivity
-on an organization level, firms with more satisfied employees tend to be more effective

* Satisfaction & Absenteeism
-researches have validated the claim that there is a consistent but moderate negative relationship between satisfaction and absenteeism

* Satisfaction & Employee Turnover
-also has a negative relationship. An important moderator is an employee’s level of performance.

How Employees Express Dissatisfaction: * Exit –behavior directed toward leaving the organization, including looking for a new position as well as resigning

* Voice –dissatisfaction expressed through active and constructive attempts to improve conditions

* Loyalty –dissatisfaction expressed by passively waiting for conditions to improve

* Neglect –dissatisfaction expressed through allowing conditions to worsen
*Chemical Dislike – dislike at 1st sight
HBO Personality (Predicts Behavior)
-are individual’s personality is the combination of the psychological traits that characterizes that person
Personality Traits
-describe people in terms such as quiet, loud, loyal, sociable, etc. we are categorizing them in terms of personality traits.
Big 5 Factor Model (views in personality) 1. Extroversion –sociable, talkative & assertive

2. Agreeableness
- good natured, cooperative, trusting

3. Conscientiousness
-responsible, dependable, persistent, achievement oriented

4. Openness to Experience
-imaginative, artistically sensitive & intellectual

5. Emotional stability
-calm, enthusiastic, secure
EI (Emotional Intelligence) –refers to the assortment of non-cognitive skills, capabilities and competencies that influence a person’s ability to cope with environment demands and pressures

* Self Awareness –aware of what you are * Self Management –ability to manage own emotions and impulses * Self Motivation –ability to persist in the face of setbacks/failures * Self Empathy –sense how others feel (putting yourself in their shoes) * Social Skills –ability to handle emotions of others
EI & Hiring
-studies show that EI play on important role in job performance
-also the implication is that employers should consider EI as a criterion in their recruitment process for those jobs that demand a high degree of social interaction

Who has control over an individual’s behavior?
Some people believe that they control their own fate.
Others see themselves as pawns of fate, believing that what happens to them in their lives is due to luck or chance.
Personality Traits explains individual behavior in an organization

Locus of Control –attribute that measures the degree to which people believe they are the masters of their fate

Machiavellianism –measures the degree to which people are pragmatic, maintain emotional distance and believes that the end justify the means. Their philosophy is if it works, use it.

Nicolo Machiavelli, who provided instruction on how to gain power or manipulate power

Self Esteem –individual’s like or dislike for himself. He takes more risks in job selection and more likely to choose unconventional jobs

Self Monitoring –an individual’s ability to adjust his behavior to external situation factors. They are capable of presenting striking contradictions between their private person and private lives

Propensity to take risks –personality trait which reflects the willingness to take chances

Foundations of Group Behavior
Group –two or more interacting and interdependent individuals who come together to achieve particular objectives
Why people form Groups:
Perceived
-strength in numbers
-prestige from belonging
-feeling of self-worth
-social need
-protection, strength in group action
-when it takes more than one person to complete the job
Perceived
-strength in numbers
-prestige from belonging
-feeling of self-worth
-social need
-protection, strength in group action
-when it takes more than one person to complete the job
Benefits
-security
-status
-self esteem
-affiliation
-power nnnnnnnnnnnn
-goal achievement
Benefits
-security
-status
-self esteem
-affiliation
-power nnnnnnnnnnnn
-goal achievement

Basic Concepts of Group Behavior * ROLE – set of expected behavior patterns attributed to some who occupies a given position in a social unit

* NORMS –acceptable standards shared by the members of a group

* STATUS –prestige grading, position, or rank within a group

* GROUP COHESIVENESS –degree to which members of a group are attracted to each other and share common goals

Stages of Team Development FSNPA * FORMING – 1st stage characterized by uncertainty about the group’s structure and leadership * STORMING –characterized by intragroup conflict * NORMING –close relationships develop and members begin to show cohesiveness * PERFORMING –structure fully functional and accepted by members * ADJORNING –final stage in which team prepares for disbandment

Organizational Communication
Communication – interpersonal transfer of information and understanding

Communication Process –the steps between a source and a receiver that result in the transference and understanding of meaning

Communication Serves 4 Major Functions in a Group Organization CEMI 1. Control 2. Emotional expression 3. Motivation 4. Information
Media Richness –refers to the medium’s capacity to convey information and promote learning
-provides multiple information cues, such as message content, tone of voice, facial expressions; facilitates immediate feedback; is personal in focus
The Communication Flow * Downward –from 1 level to a group or organization to a lower level * Upward –communications that flows to a higher level. It’s used to provide feedback to management to inform them of updates and progress of performance versus targets * Lateral –when communication takes place among the members of the same work groups of the same level or horizontally equivalent positions
GRAPEVINE –unofficial and informal communication system
-operates fast and furiously in almost all work organizations
-moves with impunity across departmental lines and bypass superiors in chains of command
-flows around wherever people get together in groups
Positive side of GRAPEVINES 1. Experts estimate that Grapevine communication is 75% accurate 2. helps satisfy a natural desire to know what is really going on & give employees a sense of belonging 3. serves as an emotional outlet of employees’ fears and apprehensions 4. some managers deliberately feed information into the grapevine

Motivation Concepts & Applications
Motivation –as the process that account for an individual’s intensity, direction & persistence of effort toward attaining an objective or goal
Ex. Boxing
Objective –a planned and measurable outcome that is time-bound
Ex. Increase enrollment by 15% by the end of this semester at SPUM
Goal –a long-term vision of a desires outcome
Ex. Disneyland be the happiest place on earth
Early Theories of Motivation
The Hierarchy of Need Theory by A. Maslow
Self-Actualization
Esteem Needs
Social Needs

Physiological Needs

Self-Actualization
Esteem Needs
Social Needs

Physiological Needs

-He hypothesized that within every human being there exists a hierarchy of 5 needs and as each need is satisfied, the next becomes dominant

Motivation = Rewards What are Rewards?
Rewards –material and psychological pay-offs for working beyond expectations * INTRINSIC REWARDS – self granted and internally experienced pay-off * EXTRINSIC REWARDS – these are pay-offs granted to an individual by other people
Ex. Money, promotion, company car

Motivation: Expectancy Theory
-a model that assumes that motivational strength is determined by perceived probability of success
-accordingly, an employee will not strive for an attractive reward unless it is perceives as being attainable

Rewards must be Equitable * PERSONAL EQUITY –the relationship between effort expended and rewards received * SOCIAL EQUITY –comparison of one’s rewards ratio with that of someone else in the same situation
Motivation: Employee Participation
PARTICIPATIVE MANAGEMENT –the process of empowering employees to assume greater control of the workplace
When employees are personally and meaningfully involved, above and beyond just doing assigned tasks, they are said to be more motivated and productive

4 Key Areas of Participative Management 1. Setting Goals 2. Implementing Organizational Changes 3. Making Decisions 4. Seeking Problems
STRATEGY – PLANNING ACTION (LONG TERM IMPACT)
Approaches to Participation
OPEN BOOK MANAGEMENT (OBM)
-sharing key financial data profits with employees who are trained and empowered
Managers are, however, hesitant to practice OBM due to 3 Shortcomings: * Not trusting employees * No deep commitment to training * Not patient enough when waiting for results

The 4 S.T.E.P. Approach to OBM
Share – key financial data
Teach – all employees how to read reports
Empower –employees to make necessary changes & decisions for success
Pay –employees get their fair share of profits through bonuses, incentives, etc.

Keys to Successful EMPLOYEE PARTICIPATION PROGRAM * A profit-sharing or gain sharing plan * A long term employment relationship with good job security * A concerned effort to build and maintain group cohesiveness * Protection of the individual employees’ rights
Organization & Design
ORGANIZATION –a cooperative social system involving coordinating efforts of two or more people pursuing a shared purpose
CHAIN OF COMMAND –the continuous line of authority that extends from the highest levels in an organization to the lowest level and clarifies who reports to whom
ORGANIZATIONAL CHARTS –a diagram of an organization’s positions and formal lines of authority. It is a visual display of an organization’s structural skeleton
2 Dimensions of an Organizational Chart 1. Vertical Hierarchy – establishes chain of command

2. Horizontal Specialization
–involves division of labor
SPAN OF CONTROL –the number of people who report directly to a given manager. No ideal span of control exists for all kinds of work
2 Kinds of Models 1. Mechanistic Organization
-tend to be rigid in design and have strong bureaucratic qualities
-they are suited for organizations in relatively stable & certain environments
Ex. Military

2. Organic Organization
-flexible in structure and adaptive to change
-they are suited for firms in unstable environments
Ex, Schools

Centralized & Decentralized
Centralized – the retention of decision making authority by top management
Decentralized – top management shares decision-making authority with lower level employees

Delegation / Empowerment –process of assigning (limited authority to lower level employees) * Is sharing the authority, not the abdication of responsibility

Common Characteristics of All Organizations GPS
Goals – purpose of an organization
People – decision makes and performs
Structure – defines and limits the behavior of its members (policies, systems, roles & regulations)
Hierarchy of Managers in an Organization * First Line Managers
-supervisors responsible for directing day-to-day
Ex. Section Leads, foremen, supervisiors

* Middle Managers
-individuals at levels of management between the first line and top management
Ex. Department Managers

* Top Managers
-individuals who are responsible for making decisions about the direction of the organization and establishing policies that affect all organizations
Ex. Board of Directors, CEO, president, vice

Distribution of Time per activity by Organizational Levels | 1st level mgrs. | Middle mgrs | Top mgrs | Planning | 15% | 18% | 28% | Organizing | 24% | 33% | 36% | Leading | 51% | 36% | 22% | Controlling | 10% | 13% | 14% | | 100% | 100% | 100% |

Organizational Change & Conflict
Focus: organization/group
-in today’s work organization, there is constant tension between opposing forces for stability and change.
-too much stability, organizational decline begins
-too much change and the mission blurs and employees get burnt out

CHANGE- is a given, constant and there is no stopping it. No one and nothing can stop it happening. It is inevitable as night and day.
Our best chances at it are to manage it:
-prepare for its forth coming
-do the appropriate when it does come
-plan for its impact when it passes

Situational analysis (SWOT)
-management tool
-analysis of situations
STRENGTHS & WEAKNESS –Internal
OPPORTUNITIES & THREATS –External

* STRENGTH
-what advantages does your company have?
-what do you do better than anyone else?
What unique or lowest cost resources do you have access to?
-what do people in your market see as your strength?

* WEAKNESSES -what could you improve?
-what should you avoid?
-what are the people in your market likely see as your weakness?

* OPPORTUNITIES
–what are the opportunities facing the firm?
-what are the interesting trends you are aware of
Using Opportunities that can come from:
-change in technology
-change in gov’t policy related to your field
-change in social pattern, population, lifestyle, etc.
-local & foreign events

* THREATS
-what obstacles do you face as a firm?
-what are your competitors doing?
-are the required specifications for your job, products & services changing?
-do you have bad debts or cash flow probs?
-could any of your weakness seriously threaten your business?
What Competencies do successful Managers Posses?

COMPETENCY – fitness for a certain job
Conceptual Skills –ability to analyze and diagnose situations; see how things fit together
Interpersonal Skills –ability to work with, understand, mentor, and motivate others not only individually but as a group

Technical Skills –for top managers, abilities related to knowledge of the industry, organization’s products and processes. Middle managers and lower, they have specialized knowledge required in the areas with which they work Finance, HR, Marketing, and Production, etc.

Political Skills- ability to build a power base and establish the right connections

Types of Organizational Change ARIS
Anticipatory Changes –planned changes based on expected situations
Reactive Changes –changes made in response to unexpected situations pro-active = company wants
Incremental Changes –subsystem adjustments required to keep the organization on course
Strategic Changes –altering the overall shape or direction of the organization
Why employees resist Change? * Surprise :spur of the moment changes create a threatening sense of imbalance in the workplace

* Inertia: many members of the typical organizations desire to maintain a safe, secure, and predictable status quo

* Lack of Trust :promises of improvement are likely to fall on deaf ears when employees do not trust management

* Misunderstanding/Ignorance/Lack of Skills :without adequate introductory or remedial training, an otherwise positive change may be perceived in a negative way

* Emotional Side Effects :challengers presented by significant on the job changes be intimidating

* Personality Conflicts :managers who are dislikes by their people are poor conduits for change

* Poor Timing :in everyday setting, internal and/or external events can conspire to create resentment about a particular change

* Lack of Tact: how things are said is often important. Tactful and sensitive handling of change is essential

* Threat to Job Security

ORGANIZATIONAL POLITICS
-competencies a managers should process What do we mean by politics in an organization and do they exists?
Yes, they do exist in an organization. We define it as the pursuit of self-interest in response to real or imagined opposition.

Research Results in Organizational Politics

* The higher the level of management the greater the perceived amount of political activities * The larger the organization, the greater the perceived amount of political activity * Personnel in staff positions were viewed as more political than those in line positions * People in marketing were the most political; those in production were the least political * “Reorganization Changes” reportedly prompted more political activity than any other type of change. (cause of more political activity) * Majority of those interviewed believed organizational politics helps advance one’s career * 45% believed that organizational politics distracts from company goals

1. VISION STATEMENT =founder’s goal
2. MISSION STATEMENT -questions ‘what do we do as a company’ -how do we do it as a company -for whom do we do it?
3. CORPORATE VALUES –values that companies/organizations live by ‘what we learn early in life’

Strategy – what? Tactics –how?

Political Tactics * Posturing –looking for situations in which they can make a good impression even at the expense of others ex. Showing attention that they will be noticed

* Empire Building –keeping control over human & material resources usually feeling entrenched(secure) in their positions

* Making the “Boss” look good –a desire to favorably influence those who control one’s career assent

* Collecting & Using Social Skills –reciprocal exchange of political favors done in 2 ways: (a) Someone from looking bad (b) By preventing someone from looking bad, by covering the error or covering the mistake

* Creating Power & Loyalty Clique –facing superiors & competitors as a cohesive group rather than alone

* Engaging in Destructive Competition –resorting to character assassination/sabotaging a competitor’s work

Lobby group – petition for authority Double standard – men vs women Gender Equality

POWER: Influencing and Leading
Power –the ability to marshal the human informational and material resources to get something done
-affects organizations in 3 major ways: Decisions,
Behavior,
Situations

5 Bases of Power 1. Reward Power
-gaining compliance through rewards

2. Coercive Power
-gaining compliance through threats and intimidation
Ex. Military

3. Legitimate Power
-compliance based on one’s formal position
Ex. President

4. Referent Power
-compliance based on charisma/personal identification
Ex. Pope

5. Expert Power
-compliance based on the ability to dispense valued information
Ex. Doctor, Lawyer

LEADERSHIP
Leadership is coping with Change
Management is coping with Complexities

“Management is doing things right; Leadership is doing the right things” –Warren Bennis and Peter Drucker

Contemporary Issues in Leadership
TRUST –a very important leadership issue. It refers to the expectation that another will not act opportunistically

Key Dimensions that Underline TRUST * INTEGRITY –honesty & truthfulness * COMPETENCE –technical/interpersonal skills * CONSISTENCY –reliability, predictability, and good judgment in handling situations * LOYALTY –willingness to protect and save face for another person * OPENNESS –you can rely on a person to give you the whole truth and nothing but the truth

Checklist of an Effective Leader * able to handle the BOSS and other managers * able to manage time without being swamped by minor details
Micro manage –all details you are interfering

Delegation (Leading) * results oriented –does not care how you do it but just get it done * a good example to employees * able to handle emergencies * firm yet fair * able to get close to employees but still remain the boss * effective at handling problem employees * decisive even in ambiguous situations * politically skilled * ability to use authority wisely * patient * good at handling stress * highly motivated
KEY RESULT AREAS (KRA) –sales or market share
KEY PERFORMANCE INDICATORS (KRI) –sales exceed, new products

Performance Appraisal (PA) –refers to all those procedures that are used to evaluate the personality performance, potential of its group members.

Question Arises?
1. Why do we measure performance?
2. Effective performance appraisal systems?
3. How do we measure performance?

Characteristics
-it is a step by step process
-it examines the employee strengths and weaknesses
-scientific and objective study
-ongoing and continuous for making correct decisions on employees
Process of PA * set performance standards * communicate standards to employees * measure the performance vs the set standards for performance * discuss results * take appropriate corrective actions
Measure Systems need to be:
-specific -clear
-fair -useful
-consistent

Document Performance
-make sure documentation is objective
-document performance of all employees
-provide complete and accurate information
-document performance on a regular basis

Why appraisals are Important? * Recognize accomplishments * Guide progress * Improve performance * Review performance * Set goals * Identify problems * Discuss career advancements

Pitfalls of PA * Failure to communicate standards * Failure to give timely feedback * Failure to allow employees to correct performances * Inconsistency in measuring performance * Failure to document performance objectively