Models of organizational behavior

1. Models of Organizational Behavior
Chapter objectives:
• The elements of an Organizational Behavior System
• The role of Management’s philosophy and paradigms
• Alternative Models of OB and their effects
• Trends in use of these models

2. An Organizational Behavior System
Organizations achieve their goals by crating, communication, and
operating an organizational Behavior System. The primary purpose
of OB systems are to identify and then help manipulate the major
human and organizational variables that affect the result
organizations are trying to achieve. For some of these variables,
managers can only exert some control over them. The outcomes, or
the end results, are typically measured in various forms of three
criteria:
• Performance (e.g. quality and quantity of products and services;
level of customer services)
• Employee satisfaction (e.g. lower absenteeism, tardiness, or
turnover)
• Personal growth and development (e.g. the acquisition of life long
knowledge and skills)

3. Elements of OB system
• Management’s philosophy, values, vision, mission and goals
• Organizational culture
• Leadership, communication and group dynamics
• Quality of work life
• Motivation
• Outcomes
performance
employee satisfaction
personal growth and development
Linked with
• Formal organization
• Informal organization
• Social environment

4. Elements of the OB system
The philosophy (model) of organizational behavior held by management
consists of an integrated set of assumptions and beliefs about the way
things are, the purpose of these activities, and the way they should be.
These philosophies are sometimes explicit, and occasionally implicit, in the
minds of managers. However, the philosophy of organizational behavior
held by a manager stems from two sources- fact premises and value
premises. Fact premises represent our descriptive view of how the world
behaves. They are drawn from both behavioral science research and our
personal experiences. Fact premises, then, are acquired through direct and
indirect lifelong learning and are very useful in guiding our behavior. Value
premises, on the other hand, represent our view of the desirability of certain
goals and activities. Value premises are variable beliefs we hold and are
therefore under our control, we can choose, modify, discard, or replace
them (although they are often deeply entrenched). Many organizations have
sought to identify and state the values they cherish (to nurture, to foster).

5. Elements of the OB system
Mangers also have primary responsibility for instilling three other
elements into the OB system- vision, mission, and goals.
Vision represents a challenging portrait of what the organization
and its members can be- a possible, and desirable, future.
Managements need to create exciting projections about where the
organization should go and what major changes lie ahead. Once the
vision is established, persistent and enthusiastic communication is
required to sell it throughout the ranks of employees so they will
embrace it with commitment. However, an organization also typically
creates a mission statements, which identifies the business it is in,
the market niches it tries to serve, the types of customers it is likely
to have, and the reasons for its existence. Many mission statements
even include a brief listing of the competitive advantages, or
strengths, that the firm believes it has. In contrast to visions, mission
statements are more descriptive and less future-oriented.

6. Elements of the OB system
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.
Philosophy feeds into value premises, which help shape vision.
Vision is a stretching version of mission, and goals provide a way to
pinpoint targets for achieving that mission. Together, philosophy,
values, vision, mission, and goals exist in a hierarchy of increasing
specificity (philosophy is most general; goals are most specific).
They all help create a recognizable organizational culture. This
culture is also a reflection of the formal organization with its formal
policies, structures, and procedures, and the existing social and
cultural (global) environment.

7. Models of organizational Behavior
Organizations differ in the nature of the systems they develop and
maintain and in the results they achieve. Varying results predictably
follow from different models of OB. These models constitute the
belief system that dominates management’s thought actions in each
organization. Five models of OB have been seen as follows;
• Autocratic
• Custodial
• Supportive
• Collegial
• System
The selection of a model by manager is determined by a number of
factors. The prevailing philosophy, values, vision, mission and goals
of managers affect, and are affected by, their OB model. In addition
environmental conditions help determine which model will be most
effective.

8. The Autocratic Model
The autocratic model depends on power. Those who are in command must
have the power to demand ‘you do this- or else’, meaning that an employee
who does not follow orders will be penalized.
In a autocratic environment the managerial orientations is formal, official
authority. This authority is delegated by right of command over the people to
whom it applies. Moreover, under autocratic conditions the employee
orientation is obedience to a boss, not respect for a manager. The
psychological result for employees is dependence on their boss, whose
power to hire, fire, and ‘perspire’ them is almost absolute. The boss pays
minimum wages because minimum performance is given by employees by
which they satisfy their subsistence needs.
The autocratic model is a useful way to accomplish work. It is not a complete
failure. However, its principal weakness is its high human costs.

9. The Custodial Model
To satisfy the security needs of employees, a number of companies began
welfare programs in the 1890s and 1900s. In their worst these welfare
programs later became known as paternalism. In the 1930s welfare
programs evolved into a variety of fringe benefits to provide employee
security. Employers-and unions and government-began caring for the
security needs of workers (rewards & benefits). They were applying a
custodial model of organizational behavior.
A successful custodial approach depends on economic resources. The
resulting managerial orientation is toward money to pay wages and benefits.
Since employees’ physical needs are already reasonably met, the employer
looks to security needs as a motivating force.
The custodial approach leads to employee dependence on the organization
rather than being dependent on their boss. As a result of their treatment,
they are well maintained and contented. However, contentment does not
necessarily produce strong motivation; it may produce only passive (acted
upon) co-operation.

10. The Supportive Model
The supportive model depends on leadership instead of power or
money. Through leadership, management provides a climate to help
employees grow and accomplish in the interests of the organization
the things of which they are capable. Management’s orientation,
therefore, is to support the employee’s job performance rather than
to simply support employee benefit payments as in the custodial
approach.
The supportive model of organizational behavior tends to be
especially effective in affluent (rich) nations because it responds to
employee drives toward a wide array of emerging needs. It has less
immediate application in the developing nations, because their
employees current needs and social conditions are often quite
different.

11. The Collegial Model
A useful extension of the supportive model is the collegial model.
The term ‘collegial’ relates to a body of people working together co-
operatively. This model embodies a team concept, first achieved
widespread applications in research laboratories and similar work
environments.
The collegial model depends on management’s building a feeling of
partnership with employees. Managers are seen as joint contributor
rather than as boss. Moreover, the managerial orientation is toward
teamwork by which the employee response to this situation is
responsibility. In this kind of environment employees normally feel
some degree of fulfillment, worthwhile contribution, and self
actualization, even though the amount may be modest in some
situations. This self-actualization will lead to moderate enthusiasm in
performance.

12. The System model
An emerging model of OB is the system model. It is the result of a
strong search for higher meaning at work by many of today’s
employees; they want more than just a paycheck and job security
from the jobs. To accomplish this, managers must increasingly
demonstrate a sense of caring and compassion, being sensitive to
the needs of a diverse workforce with rapidly changing needs and
complex personal and family needs.
Under the system model, managers try to convey each worker, ‘you
are an important part of our whole system…..’. The role of a
manager becomes one of facilitating employee accomplishments
through a variety of actions (e.g. John W. Newstrom; Organizational
Behavior; 11th
edition; page 40). In response, many employees
embrace the goal of organizational effectiveness, and recognize the
mutuality of company-employee obligations in a system viewpoint.

13. Basis of model
• Power
• Economic resources
• Leadership
• Partnership
• Trust, community, meaning
Managerial orientation:
• Authority
• Money
• Support
• Teamwork
• Caring, compassion

14. Employee orientation
• Obedience
• Security and benefits
• Job performance
• Responsible behavior
• Psychological ownership
Employee psychological result:
• Dependence on boss
• Dependence on organization
• Participation
• Self discipline
• Self motivation

15. Employee needs met
• Subsistence
• Security
• Status and recognition
• Self actualization
• Wide range
Performance result:
• Minimum
• Passive cooperation
• Awakened drivers
• Moderate enthusiasm
• Passion and commitment to organizational goals.