Organizational behavior is the study of human behavior in organizational settings, the interface between human behavior and the organization itself.

The Primary purpose of organizational behavior systems are to identify and help manipulate the major human and organizational variables that affect the results organizations are trying to achieve.

We will see later in the slides that there are five major organizational behavior philosophies - autocratic, custodial, supportive, collegial, and system.

The outcomes, or end results, of organizational behavior among managers are typically measured in three basic criteria:

1) Performance
2) Employee Satisfaction
3) Personal Growth and Career Advancement

The Philosophy model of organizational theory 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.

The philosophy of organizational behavior stems from the following sources in the coming slides...

Fact premises represent our descriptive view of how the world behaves. In other words, a premise is an assumption that something is true and is learned through indirect and direct lifelong learning and are very useful in guiding our behavior.

Value premises represent our view of the desirability of certain goals and activities.

Example:
If you're unhappy with your MP3's performance, then you might choose to throw it in a river, despite knowing that this will destroy your phone.

Vision represents a challenge portrait of what the organization and its members can be- a possible, and desirable future.

Leaders need to create exciting projections about where the organization should go and what major challenges lie ahead so employees become more committed to the organization.

An organization typically creates a mission statement, which identifies the business it is in, the market niches it tries to serve, the types of customers it tries to have, and the reasons for its existence.

Goals are relatively concrete formulations of achievements the organization is aiming for within set periods of time (i.e. such as one to five years).

Under the theory X set of assumptions, the managerial role is to coerce and control employees because they are deemed "lazy" and "irresponsible" to work.

Under the theory Y set of assumptions, the managerial role is to develop the potential in employees and help them release that potential toward common objectives.

McGregor's argument was that management had been ignoring the facts about people. It had been following an outmoded set of assumptions about people because it had adhered to Theory X when the facts are that the Theory Y set of assumptions is more truly representative of most people.

Models such as Theory X and Y are also called paradigms, or frameworks of possible explanations about how things work.

Any model that a manager holds usually begins with certain assumptions about people and leads to certain interpretations, implications, and even predictions about events.

Reminder of the five models:

1) Autocratic
2) Custodial
3) Supportive
4) Collegial
5) System

The autocratic model depends on power. Those who are in command must have the power to demand you to do "this or else", meaning that an employee who does not follow orders will be penalized.
In an autocratic environment the managerial orientation is formal, official authority.
This authority is delegated by right of command over the people it applies to.
Under autocratic environments, the employee is obedient 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.

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. If an organization does not have the wealth to provide pensions and pay other benefits, it cannot follow a custodial approach.

The custodial approach leads to employee dependence on the organization. Rather than being dependent on their boss for their weekly bread, employees now depend on organizations for their security and welfare.

Employees working in a custodial environment become psychologically preoccupied with their economic rewards and benefits. As a result of their treatment, they are well maintained and contended.

However, contentment does not necessarily produce strong motivation- it may produce only passive cooperation. The result tends to be those employees who do not perform much more effectively than under the old autocratic approach.

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. The leader assumes that workers are not by nature passive and resistant to organizational needs, but that they are made so by an inadequately supportive climate at work. They will take responsibility, develop a drive to contribute, and improve themselves if management will give them a chance.

Management orientation, therefore, is to support the employee's job performance rather than to simply support employee benefit payments as in the custodial approach.

Since management supports employees in their work, the psychological result is a feeling of participation and task involvement in the organization. Employees may say "we", instead of "they" when referring to their organization.

Employees are more strongly motivated than by earlier models because their status and recognition needs are better met. Thus they have awakened drives for work.

The term “collegial” relates to a body of people working together cooperatively.

The collegial model depends on management’s building a feeling of partnership with employees. The result is that employees feel needed and useful. They feel that managers are contributing also, so it is easy to accept and respect their roles in their organization. Managers are seen as joint contributors rather than as bosses.

The managerial orientation is toward teamwork. Management is the coach that builds a better team.
The employee’s response to this situation is responsibility. For example employees produce quality work not because management tells them to do so or because the inspector will catch them if they do not, but because they feel inside themselves an obligation to provide others with high quality. They also feel an obligation to uphold quality standards that will bring credit to their jobs and company.

The psychological result of the collegial approach for the employee is self-discipline. Feeling responsible, employees discipline themselves for performance on the team in the same way that the members of a football team discipline themselves to training standards and the rules of the game.

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.

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.
In response, many employees embrace the goal of organizational effectiveness, and reorganize the mutuality of company-employee obligations in a system viewpoint. They experience a sense of psychological ownership for the organization and its products and services.

-The manager and organization use the models to evolve over time.

- There is no permanently "best" model.

- The primary challenge to management is to identify the model it is actually using and to assess its current effectiveness.

- The five models are closely related to human needs.

- Each model is built upon the accomplishments of the other.

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

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

- 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.

- 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.

Every firm has an organizational behavior system. It includes the organizations stated or unstated philosophy, values, vision, mission, and goals; the quality of leadership, communication, and group dynamics; the nature of both the formal and informal organizations; and the influence of the social environment. These items combine to create a culture in which the personal attitudes of employees and situational factors can produce motivation and goal achievement.