Nigel Perry 2007 / MCC 2011 1MODELS OF ORGANIZATIONAL BEHAVIORLO 1 MEANING AND IMPORTANCE OF OBo Explain key elements of organizational behaviorL0 2 DISCUSS MODELS OF OBo Discuss Theories of management – x,y,zo Compare and contrast models of OB – autocratic, custodial, supportive,collegial and systemOB SYSTEMSAll organizations achieve goals by creating, communicating and operating ssystem. (Newstrom 27) Some systems are consciously created and regularlylooked at and updated. The purpose of these systems is to help managersshift everything in the organization – people, technology, structure andenvironment - to get results, or outcomes for the organization.THREE CRITERIAProgressive Organizations measure their results or outcomes by threecriteriaPERFORMANCEProduct and services quality and quantity, level of customer serviceEMPLOYEE SATISFACTIONMay be measured by - lower absenteeism, tardiness or turnoverPERSONAL GROWTH AND DEVELOPMENTEmployees gain lifelong knowledge and skills leading to continuedemployability and career advancement.FIGURE 1 THREE CRITERIA TO MEASURE OUTCOMES OF OB SYSTEMSA system comes out of the beliefs and intentions of those who create it -owners - and from the managers who run it. The model that an organizationuses comes from assumptions and beliefs about the way things are, thepurpose of these activities and the way they should be.PerformancePersonalGrowth andDevelopmentEmployeesatisfaction
Nigel Perry 2007 / MCC 2011 2The thinking of owners and managers comes from fact premises and valuepremises.FACT PREMISESFact premisesare a person’s view of how the world behaves. The viewcomes from science and personal experiences, from the important things aperson learns. Fact premises come from direct and indirect lifelong learningand experiences and help guide our behavior.VALUE PREMISESValue premises are different. Value premises are how desirable somethingis. Value premises are beliefs we hold. We control these. We can choose,change or replace our value premises, but this is not always easy becausewe hold them deeply.Owners and Managers set up organizations based on this thinking.Vision is what the organization can be – a desirable future.Mission identifies the business the organization is in, markets, types ofcustomers and the reasons for it to exist.Goals are achievements the organization is aiming for in a set time. For anorganization to succeed, management and employee goals must merge.This organizational culture is a reflection of the formal organization withpolicies, structures and procedures. Managers use a leadership style,communication skills, and knowledge of interpersonal and group interactionsto create a quality of life for employees. If this is done correctly, employeeswill be motivated to reach organizational goals. Thus, a good system resultsin motivation. Motivation, together with employee skills and abilities, leads togoals being reached and people being satisfied.Good OB builds mutual support with manager and employee jointlyinfluencing each other and jointly benefitting…power with people, not overthem. Modern OB is based on human values of treating people with dignity.MCGREGOR’S THEORY X AND THEORY YTheory X says that most people don’t like to work and will avoid it if they can.Theory X managers believe that they need to force and threaten people towork.The organizational model“feeds into value premises, which help shapevision. Vision is a stretching..of mission and goals pinpoint targets forachieving that mission. Together, models, values, vision, mission andgoals exist and create the organizational culture.” (Newstrom 30)
Nigel Perry 2007 / MCC 2011 3Theory Y says that people can direct and control themselves, workingtowards the goals set by a company.Ouchi’s Theory Z says that workers, managers and can share control, workas a team to accomplish the company’s goal.Theory X Theory Y Theory ZEmployees dislike work andwill try to avoid it.Employees prefer to becontrolled and directed.Employees seek security, notresponsibility.Employees must beintimidated by managers toperform.Employees are motivated byfinancial rewards.Employees view work as anatural part of life.Employees prefer limitedcontrol and direction.Employees will seekresponsibility under properwork conditions.Employees perform better inwork environments that arenot intimidating.Employees are motivated bymany different needs.Employees like workEmployees help makedecisionsEmployees take individualresponsibilityEmployers and managersshare controlEmployees expect long termemployment, slower rates ofpromotionActivityComplete the x and y self – assessment.Which type of manager do you want to work for?Which type of manager will you be?CLASS DISCUSSIONDiscuss Theory X Y Z. Which theory – if any – do you believe in? Do youthink that both exist in different places? Can you give examples?.
Nigel Perry 2007 / MCC 2011 4FIVE MODELS OF ORGANIZATIONAL BEHAVIOR:We will look at five models of organizational behavior in this course.FIGURE 2 FIVE MODELSThese models are the most common models in use over the last 100 years.They are in order. Some of the oldest are still practiced.Models are possible explanations which explain how things work in anorganization. Models are guides to understanding owners and managementbehavior in particular. Top managers can and do influence the wholeorganization.However, these models may be in use within a department or branch or in thewhole organization. No model can explain everything.Managers choose models based on people, technology, environment andstructure. Models can change over time depending on circumstances.ACTIVITYWhat do you know about about Prince Alwaleed Bin Talal Bin Abdulaziz, DahiKhalfan Tamim, Dalia Mogahed, MohammedAlabbar? (Note: these were thefirst four in Arabian Businesses “Most Powerful Arabs List” March 2010)About Mark Zuckerman, Bill Gates, Steve Jobs, Carly Fiorino, Raja Essa AlGurg, Juma Al Majid, HH Sheik Hamdan bin Moh’d Al Maktoum, Majid AlFuttaim.?How does their management thinking affect their organizations?AutocraticModelCustodialModelSupportiveModelCollegialModelSystemsModel
Nigel Perry 2007 / MCC 2011 51 AUTOCRATIC MODELThis model came about during the industrial revolution, in the 1800’s and1900’s. It depends on powerThe manager has the power to demand “you dothis or else” – and an employee who does not follow orders is punished.The manager has formal, official, authority over employees.This model assumes that employees have to be directed and pushed intodoing the work.In this model, management does the thinking, employeesobey orders and depend on the manager. Employees are tightly controlled.The manager can hire, fire and “perspire” them.Employees may obey managers but employees may not respectmanagement.Typically, employees receive minimum pay for minimum expectedperformance. Employees may have lower skills. Often, employees work inthe authority model because they have to….to provide subsistence forthemselves and their families.Its weakness is that it leads to “micro management” With micromanagement, managers control all details of daily operations. Managerscontrol time and processes, they put their needs above those of employees,they insist on complicated approval processes for even the smallest thingsand closely monitor all results.The problem with the autocratic model and micro management is that itleads to low employee morale, poor decision-making (no one will make adecision because he/ she is afraid of the decision being over turned) and highturnover. As well, employees kept quiet about hating the workplace, theycertainly made their feelings known at home and in the community.This model can get things done BUT it has high human costs. It can beuseful in crisis situations, within armies or with short-term employees.(Newstrom 34)The autocratic model was acceptable 100 years ago. However, today’sunderstanding of people’s needs as well as changing society values showbetter ways of to organize behavior.
Nigel Perry 2007 / MCC 2011 62. CUSTODIAL MODELIn the late 1800’s, employers realized that employees might work better iftheir basic needs more satisfied, if they were more secure and had a betterquality of work life. This was called paternalism- taking care of employeesby providing them with benefits to meet their security needs.The custodial approach depends on economic resources – money for wagesand benefits - to motivate employees. The company has to have enoughmoney to cover these costs. By the 1930’s most employers were offeringwelfare programs…for example, housing, medical care and insurance, fewerworking hours sick pay, pensions and paid vacation time off.The problem with the custodial model is that it leads to dependence on theorganization by the employee because of the security offered.Employees donot want to leave the organization, not so much because they like the job, butbecause they like or depend on the benefits that go with it. They cannotafford to quit.In this model, employees may focus on economic rewards. They may bereasonable content, but may not be highly motivated – just passivelycooperative.Companies that adopt the custodial approach normally have a lower staffturnover. However, employees do not produce their best work and are notmotivated to grow to their full potential. The custodial model is a goodfoundation for organizations to grow to the next approach.( Newstrom 35)3. SUPPORTIVE MODELThe supportive model came from research done in the 1920’s and 1930’s. Itdepends on leadership, not authority or money. Through leadership,managers provide a work situation in which employees can develop.The supportive model assumes that employees want to work and will takeresponsibility. Employees are encouraged to be involved in the organization.Employees are more strongly motivated because their status andrecognition needs are better met than with earlier models.The supportive approach is not about money, but about the way people aretreated at work. A supportive manager helps employees solve problems andaccomplish their work. However, some managers may agree with the modelbut not actually practice it at work.This model is followed widely, especially in the West, because it responds toemployee drives for complex needs. It is especially useful in productionwork
Nigel Perry 2007 / MCC 2011 7places. Employees in developing countries are aware of managementpractices around the world and are demanding more modern approaches.4. COLLEGIAL MODELThis model began about 50 years ago.Collegial means people workingtogether cooperatively. In this model, management builds a feeling ofpartnership with employees. The environment is open and people participate.The collegial modelis about team work. Managers are coaches to help buildbetter teams. Employeesare responsible – they feel obliged to others on theteam to produce quality work.Employees must be self-disciplined. Manyemployees feel satisfied that they are making a worthwhile contribution. Thisleads to self actualization and moderate enthusiasm in the way they perform.The collegial model is especially useful for creative work,like marketing orcommunications or in thinking environments, like education or planning.(Newstrom 38)5. THE SYSTEM MODELThis is the most recent model. In this model, people want more than money,job security and cooperative teams. Employees today want trust, an ethicalworkplace, managers who show care and compassion and a workplace thathas a sense of community.The system model focuses on “identifying developing and managing thestrengths within employees”. Managers focus on “helping employeesdevelop feelings of hope, optimism, self confidence, empathy,trustworthiness, esteem, courage, efficacy and resiliency.”In the system model, “Managers protect and nurture their employees…todevelop a positive workplace culture which leads to organizational successand committed employees.”Both managers and employees need social intelligence in this modelwithmanagers as facilitators. (Newstrom 39).
Nigel Perry 2007 / MCC 2011 8In the system model, managers and employees see the mutual benefits andobligations they share in the complex system (the organization). Everyonehas psychological ownership for the organization, its products and services.Everyone feels possessive, responsible and “at home” in the organization.Employees can reach a state of self motivation. Their highest order needsare met. They have passion and commitment to organizational goals, not justtheir own personal wants and needs.TABLE 1 FIVE MODELS OF ORGANIZATIONAL BEHAVIOR (NEWSTROM 33)CONCLUSIONSModels have changed over time. The choice of model depends on employeeneeds and the situation. Any of the models work in some situations. There isa trend toward the newer models.The Model used depends on the knowledge and skills of managers, theexpectations of employees, the policies and ways of life in the organizationand the nature of the work e.g. low skilled, high programmed work,temporary work, or intellectual work.Autocratic Custodial Supportive Collegial SystemBased on Power EconomicresourcesLeadership Partnership Trust, sharingManagerialOrientationAuthority Money Support Teamwork Caring,compassionEmployeeOrientationObedience Security andbenefitsJob performance ResponsiblebehaviorPsychologicalownershipEmployeepsychologicalresultDependence onbossDependence onorganizationParticipation Self-discipline Self motivationEmployeesneeds metSubsistence(survival)Security Status andrecognitionSelf-actualization Wide rangePerformanceresultMinimum PassivecooperationAwakened drives ModerateenthusiasmPassion andcommitment toorganizationalgoals
Nigel Perry 2007 / MCC 2011 9EVOLVING USAGE AND CONTINGENCYThere is no “best model”. Management is to identify the model it is actuallyusing and then assess its current effectiveness.Managers must also be flexible. Every organization has a changingenvironment and task conditions. A good manager should respond, ifnecessary, by changing the model which he or she is using.RELATION TO HUMAN NEEDSAll models are related to human needs. Each model is built on the others andis progressive because employees and organizations progress to situationswhere newer needs arise.INCREASING USE OF SOME MODELSThere is a trend toward supportive, collegial and system models. Topmanagers in multi-national corporations cannot be authoritarian and still beeffective. Decisions need to be made closer to operations, “the front line”. Inthe Middle East, some organizations will be forced to redefine the oldauthoritarian and custodial models and move towards more participativeones.As an example of this, in January 2011, many Arabs demonstrated in thestreets of Tunisia, Egypt, Lebanon, Jordan and Yemen. They demanded theremoval of old authority figures and requested more of a supportive orcollegial model.MANAGERIAL FLEXIBILITY“Managers need to identify the current behavioral model but also must keep itflexible…Managers need to read, reflect, to interact with others, and to bereceptive to challenges to their thinking from collegues and employees.”(Newstrom 42)
Nigel Perry 2007 / MCC 2011 10REVIEW QUESTIONS1. What is the meaning of an organizational behavior system?2. What criteria do managers use to assess the end results of an OBsystem?3. Describe fact and value premises. List an example of each.4. What is the difference between mission, vision and goals.5. What are the three managerial assumptions described in the text?Give examples of each from your own experience.6. When would a manager use each of the assumptions? What factorswould a manager consider when making the choice?7. Compare and contract each of the five models of organizationalbehavior and give the advantages and disadvantages of each.8. What is the underlying assumption (Theory X or Theory Y) of each ofthe four models? Give reasons for each of your answers
Nigel Perry 2007 / MCC 2011 11REVIEWINSIGHTSAn insight is a new and clear perception. It is an ability to “see”something clearly. Insights are new knowledge or new ways to viewsomething. Insights are things you want to remember. (Newstrom 24)Highlight in your own words ten insights from this unit.12345678910CRITICAL THINKINGThink back on the material in this unit. (Newstrom 25)What three questions would you raise about the material?REFLECTIONA reflection is what you think and feel about something.(Newstrom 25)Express your personal thoughts and feelings or reactions to any of the ideas ortopics in this unit. Be prepared to share these with the class.