Carlos Hilado Memorial State College

Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus

COLLEGE OF BUSINESS MANAGEMENT AND ACCOUNTANCY

2nd
SEMESTER 2020-2021

MODULE 1

For

HUMBOR - HUMAN BEHAVIOR IN AN ORGANIZATION

BSMA 2A

Prepared by:

MARILOU R. JONOTA, MBA

February 02, 2021

 PREFACE

This module, Human Behavior in an Organization was prepared to provide

students knowledge on the aspects of human behavior in a certain organization. It
composes of important topics intended for online class during pandemic period that
would help an individual meet their expectations in learning this topic. It also includes
case studies, questions for discussion, exercises, short quiz and long quiz at the end of
every chapter. It is mainly a module intended for undergraduates of BSMA, BSBA,
BSOA and BSE as one of the subjects required in each program’s curriculum and also of
the MBA and MPA graduate studies .

The content of this module can be covered in one semester that includes 6 major
topics that would help a reader learn about the aspects of human behavior in an
organization. It would help them to be aware of the possible situations and cases in the
near future as managers of respective organization. The topics and learning in this
module will also help them improve their management skills, knowledge, and the
possibility of learning other aspects of management of learning.

I would like to thank our God almighty for the guidance and strength, my loving
husband and kids, family, my mentor, Dr. Jay-Jay M. Pisuena, who have contributed his
effort to have this module developed.
Learning Objectives:

After completing the module, the students can able to:

1. Identify the different environmental forces that recently had redesigned
management practices in most organizations.
2. Describe the foundations and basic assumptions.
3. Discuss the challenges of OB in most organization.
4. Generalize the anchors that represent the principles on which OB is developed
and refined.

INTRODUCTION:

Whatever size, scope or location of an organization, the reality is that they are

composed of people. It is this people and the results of their behaviors that can direct the

success or failure of an organization. Therefore, it is vital for organization to understand

those people who work for them comprises organizational behavior.

ENVIRONMENTAL FORCES REDESIGNING MANAGEMENT
 Change is the reality of life. Managers must be entrepreneurial on how to instruct
people on what to do and how to do work. Intelligence, passion, a strong work ethics,
teamwork orientation and real concern for people are the qualities required today of an
ideal work atmosphere.
The nature of managing in the organization has been redesigned by a number of forces
brought by change. These forces are now recognized by large number of organizations.
Eight major forces have challenged an increasing number of firms to channel their
management talents to attain goals and objectives through knowledge creativity.
1. Power of human resources is the capability to get things completed in the manner
one wants them to be done. The perspective of modern firms now center on the
growing importance and centrality of human function. Modern HR considers
employees as valuable assets that when well managed could define organizational
success.
2. Globalization is the interconnection among nations in transportation, distribution,
communication and economic networks. The global economy is now
characterized by global competition via networks that bring together countries,
institutions and people. The trading among nations in terms of goods and services
is even faster than the actual production of goods worldwide. Therefore,
investments in people not only capital investments is highly necessary for
survival.
3. Multiculturalism (cultural diversity) is the huge assortment of differences
produced by cultural trends like history, characteristics, economic, conditions,
personality characteristics, language, norms and mores. Increased participation of
women, older workers, people with disabilities and minorities in the workplace
amplify the challenge for managers to address this diversity to stay competitive
globally. In the Philippines, women’s status as workers has significantly changed.
Together with Singapore, the Philippines have been established as the best
countries for women. A qualified disabled people are also provided with equal
opportunity here in the country. It is already a law that five percent (5%) of all
casual, emergency and contractual positions in the Department of Social Welfare
and Development; Healthy; Education, Culture and Sports; and other
governmental agencies, offices or corporation engaged in social development are
reserved for disabled persons.
4. Rapidity of change is the rate at which change occurs in technology,
demographics, globalization and new products and services. Some of the
sweeping changes in the world are the Internet, genetic engineering, microchips
and more demanding consumers for quality yet reasonably priced goods and
services. Now, part of the criteria for selections of managers is understanding,
accommodating and using change. The reduction of space and distance is the
outcome of technology. Service and information becomes valuable intangibles
and growing in hasty speed. The contemporary manager must adapt to these
changes or fail.
 5. Psychological contract is the unwritten set of expectations of the employment
relationship which details what each party looks forward to give and receive. The
top priorities of best employers are openness, integrity, providing opportunities
and supporting the growth and development of their employees. The employees
consider employers to be honest, open and fair, pay more attention to their
families’ situations, and their physical and mental health.
6. Technology is the process that transform raw materials or intellectual capital inti
products and services. More than machinery it influences the work flow, structure,
systems and philosophy of the organization to some extent. In this, contemporary
time, computer technology needs to be learned and to be used effectively because
it is pervasive and powerful. The combination of computer technology and human
talent is powerful way to continuous advancement and becoming competitive.
7. Service economy. The field of service like transportation, communication,
wholesale and retail, finance, insurance, real estate and government is growing.
This growth necessitates high quality interactions between service providers and
customers such as health-care workers and patients which must be addressed with
greater understanding and appreciation.
8. Teamwork- in order to meet their goals, many organizations is focusing on
teamwork. Teamwork provides better approach to quality goods and services.
Strong teamwork makes people engaged and committed to the goals of the
organization. Teamwork too requires that individual in the organization must
work together harmoniously.

In order to continue advancing, organizations must attract, retain and recognize

the significant role human assets have in the quest for competitive advantage. The eight
environmental forces mentioned above provide challenges to managers. Failure to cope
and deal with these forces shall give room to job dissatisfaction, poor performance, poor
morale, conflict, stress, poor judgment and a lot of unhealthy results.
Apart from providing goods and services, organizations create the workplace settings in
which most people spend their lives. In this way, organizations have deep influence on
employee behavior. Therefore, small and big organizations alike must study the behavior
of people in organizations.

FOUNDATIONS AND BASIC ASSUMPTIONS OF OB

An organization is a collection of individuals forming a synchronized system of

specialized activities for the rationale of realizing certain goals over some extended
period of time. On the other hand, organizational behavior is the field of study concerned
with describing, understanding, predicting, and controlling individual and group human
behavior in an organizational setting where they work. It deals with what people think,
feel and do in the organization. The field mostly deals with group dynamics, how
individuals relate to and participate in groups, how leadership is applied, how
organizations function, and how change is affected in organizational situations.
There are several concepts that revolve around the individual in organizational behavior
namely:
1. Uniqueness of an individual- no two persons react to the same stimulus. Each person
has its own individuality which could be in the form of trait, intelligence, physique, body
language or verbal language. And this uniqueness is usually substantial rather than
meaningless.
2. A total person- When a certain person is hired for a job, the organization accepts him
in his totality with his attitude, aptitude, skill and knowledge plus his emotions.
3. Attribution- It is important to disclose the root cause of certain employee’s disturbed
behavior. This involves knowing the reason for his abnormal looks and overt reactions to
normal.
4. Ethics and dignity-Employees deserved humane treatment. Managers must be warned
not to treat subordinates as slaves because this manner deprives them of their dignity.
People are to be treated differently from other factors of production because they are of a
higher order in the universe. It recognizes that because people are of a higher order they
want to be treated with respect and dignity- and should be treated this way. 12
5. Organizations as social systems- Individual behavior is governed by psychology which
must be acceptable to the society. Group behavior is ruled by sociology. Just as people
have psychological needs, they also have social roles and status. Their behavior is
influenced by their group as well as by their individual drives. In fact, two types of social
systems exist side by side in organizations. One is the formal (official) social system, and
the other is the informal social system.
6. Mutuality of interest - Under normal condition the individual tries his best to work for
the organization. In return, the organization makes him a capable person through the
opportunities given to him. Each employee must also support each other in their personal
growth and should maintain their friendly relations. People see organizations as a means
to help them reach their goals while organizations need people to help reach
organizational objectives Conflicts must be avoided to avoid erosion of mutual interests.
7. Holistic benefit -These mentioned six concepts when practiced within groupscreate
synergy that brings holistic advantage.

IMPORTANCE OF OB

Building a high-performance team, motivating employees, managing workplace

conflicts, influencing the boss and modifying employee behavior are some of the few
areas of knowledge and skills offered by organizational behavior. Whatever career path
an individual would chooses in the workplace, OB shall play a significant role in his job
performance and will help him work effectively.

If correctly learned, OB can be beneficial in the following ways:

1.Effect confronting- An individual with proactive thinking about approachingtroubles

and bottlenecks can work without pressures and plan ahead in dealing with difficult
situations
2.OB is a science -Though OB is probabilistic in nature it is based on validated facts.
Therefore, a person aware of this fact can make decision based on probabilityof success.
3.OB enhances conviction -OB can provide confidence in making things happen.Even in
tough situations, a person with OB knowledge can encourage peoplebetter.
4.OB improves perceptual skills-With enhanced self-perception and perception ofothers
through OB, in terms of personality, attitudes, transactional analysis,conflict resolution
and negotiation, a person can become successful.
5. OB helps motivate people-A person can use the knowledge in motivation theoryand its
application to delegate authority and inspire people.
6.OB makes better employer-employee relations-OB through conflict resolution
andnegotiation can help achieve better industrial relations.
7.OB teaches managersabout consumer behavior-OBcanbe extended tounderstanding
consumers better. Success in marketing can be attained through improvedrelation with
suppliers and customers in the supply chain.
8. OB makes managers expert in people skills-It is expected that managers must be
skillful in dealing with people which could be learned from OB.
CHALLENGES OF ORGANIZATIONAL BEHAVIOR

Organizational behavior is the culture of the organization, which includes how the
employees interact with one another. It also involves how the employees feel about the
company itself. The challenges of organizational behavior that most companies face
include overcoming cultural and ethnic differences, improving productivity, hiring
employees that fit into the organizational culture or who can improve it, and helping
employees to find proper level of a work-life balance.
One of the primary challenges of organizational behavior is overpowering ethnic
and cultural multiplicity among employees. Because different employees have diverse
beliefs, opinions, and ways of working, it can be challenging for employees to work
jointly because of these differences. Some organizations have training courses or
workshops to help defeat these issues. The point is to clarify how the diversity of an
organization actually makes it better for the different benefits that each of the employee
bring to the workplace.
In addition, finding was to motivate employees as a way to improve productivity is
another challenge related to organizational behavior. A few of the ways organizations
improve productivity inside the organization is to empower the employees. When
organizations and businesses give power to its employees, it gives them a sense of loyalty
to the company because they feel that they are an ingredient in the success of the
business.
A third of the challenges of the organizational behavior is hiring the correct employees
for the company. Hiring the right employees for the organization is not only about
finding the people with the skills and knowledge that the position necessitates, but also
employees that match into the organizational culture or can help to get better employee
relations.
For example, it can be de-motivating to employees if upper management is closed to
progressive thoughts and actions that can move the business ahead. Hiring a progressive
and forward-thinking executive manager who also has the experience and knowledge can
help to give the employees and innovative stance on the company.
Another of the main challenges of organizational behavior is how to run a productive
company, but also show its employees that it cares about them as well. In other words, it
is about helping employees find the right work-life balance.
For example, a company that provides an on-site daycare center as an employee
benefit or at a reduced cost is one way for the company to show that it cares about its
employees both professionally and personally. These can lead to the employees
contributing to organizational behavior and culture in the positive manner.

ANCHORS OF OB

Overcoming ethnic and cultural diversity, finding ways to motivate employees,

hiring the right employees and how to run a productive company are some of the
challenges confronting organizations that make OB theories and practices more relevant.
In order understand more the field of OB, the following conceptual anchors represent the
principles on which OB is developed and refined:
1. Multidisciplinary anchor-The concept of OB has been developed from diversity of
knowledge of other fields not just from its own isolated research foundation.
Understanding individual and personal behavior are contributed by psychology.
Knowledge of team dynamics and power came from sociology. The fields of
communication, marketing and information systems have some beneficial inputs also to
OB.
2. Systematic research anchor-It is critical that OB must be based on systematic research
which consists of forming research questions, data collection and hypothesis testing. This
result to evidence based management that utilizes research evidence in decision-making.
3. Contingency anchor-Since people and work environment are multifaceted; a particular
action could have different consequences in different circumstances. The Field of DB
recognizes that there is no single solution is best for all situations. Although OB also
would want to be simpler by applying” one best way” theories that will give identical
results in every situation. Thus, OB experts always search for simpler theories but still
doubtful on assured recommendations. It is important that when confronted with a
problem or opportunity, understanding and diagnosing the situation and choosing the
appropriate strategy must be done.
4. Multi-levels of analysis anchor-The study of OB concerns the individual, team and
organization. Under the individual level are topics like attribution, motivation,
perception, personality attitudes and values. The team level on the other hand includes
team dynamics, decision-making, power, politics, conflict and leadership. At the
organizational level the focus is working relationships, organizational interaction and
working environment.
Name: ______________________ Course/Year/ Section: _____________________
Date: ____________________________Score: _____________________________

TEST I- QUESTIONS FOR DISCUSSION

1. What are the different environmental forces that recently had redesigned management
practices in most organizations?

2. How will you describe the foundations and the basic assumptions in OB?

3. What is the importance of OB in the work setting?

4. What are the challenges of OB in most organizations?

5. How will you describe the anchors that represent the principles where OB was
developed and refined?
Name: ______________________ Course/Year/ Section: _____________________
Date: ____________________________Score: _____________________________
WORKSHEET ACTIVITY 1
DIRECTION: Read this article essay and answer the questions below it.

THE IMPORTANCE OF ORGANIZATIONAL BEHAVIOUR

By Glenda Lange (Source: http://www.evancarmichael.com)

Have you ever got up in the morning and thought, "I really don't want to go to work
today"? 1 think we all have at some point in our lives. You may also have had times
when you have thought or said, "I hate my job, I hate where I work." These feelings have
nothing to do with you, your job or your workplace. The problem lies in the fact that your
supervisor or manager has no idea how to manage organizational behavior! So what is
organizational behavior? Put simply, it is the way in which people react to other people
and situations in a workplace. A good manager will observe employees so that they are
placed in suitable positions within the organization. If an employee is happy in their
position and the situations they have to deal with, they will be more productive. This is
not only good for the business but it also gives the employee job satisfaction. For
example, if you had an employee who was a young, shy, softly spoken girl, you would
not put her in the role of debt collection. Instead, you might place her in a low stress
customer service position that would suit her nature as well as help her to build self-
confidence in dealing with customers.
From this, we can see that organizational behavior is not just about keeping employees
happy. It is about putting people in a position that suits their personality and experience
as well as helping employees to grow in a way that they become more of an asset to the
business. Aside from recognizing the importance of placing employees in positions that
will make them happy and productive, you also need to recognize people's reactions to
other people.
You may have an employee who is quite happy to have you stand behind them,
looking over their shoulder while they show you something. Others, however, may feel
intimidated or uncomfortable by this, in which case it would be better for you to sit
beside them rather than stand over them. If you can't recognize when a person is feeling
uncomfortable in a situation, you will find that they will become distracted and thus less
productive. So how do you recognize if someone is uncomfortable in certain situations?
Body language! If you are standing too close or if they are uncomfortable with you
standing behind them, you will notice that they will move away from you slightly. If you
continue to make them uncomfortable, they will most likely pick something up and fiddle
with it.
You may also find that they will lose their train of thought making it difficult to say
whatever it was they were meant o say to you. These are just some of the basics of
organizational behavior, but as you can see, they can have a huge impact on a person's
happiness and productivity in the workplace. Good managers will learn about
organizational behavior to ensure that they can get the most out of their employees and
keep them happy at the same time.
QUESTIONS:

1. Why is it so important to have employees who are behaving well in a company?

2. How is OB being used in the workplace?

3. What are the critical issue and challenges faced by managers to day which are
compelling them to use OB concept?
Name: ______________________ Course/Year/ Section: _____________________
Date: ____________________________Score: _____________________________

SHORT QUIZ

Test I. True or False

Direction: On the space provided before each number put a “/” if the statement is TRUE
and “X” if the statement is FALSE.

_____1. The nature of managing in the organization has been redesigned by a number f
forces brought by change.
_____2. The combination of computer technology and human talent is a powerful way to
continuous advancement and becoming competitive.
_____3. Service and information becomes valuable intangibles and growing in hasty
speed.
_____4. Strong teamwork makes people engage and committed to the goals of the
organization.
_____5. A person can use the knowledge in motivation theory and its application to
delegate authority and inspire people.
_____6. Success in human resource can be attained through improved relations with
suppliers and customers in the supply chain.
_____7. Understanding individuals and personal behaviour are contributed by sociology.
_____8. The fields of communication, marketing and information systems do not have
any beneficial inputs to own OB.
_____9. The field of OB recognizes that here is only a single solution that is best for all
situations.
_____10. The study of OB concerns the individual and organization.

II. Identification
__________________1. It is the interconnection among nations in transportation,
distribution, communication and economic networks.
__________________2. It is the capability to get things completed in the manner one
wants them to be done.
__________________3. It is the rate at which change occurs in technology,
demographics, globalization and new products and services.
__________________4. It is the process that transforms raw materials or intellectual
capital into product and services.
__________________5. It is a/an collection of individual forming a synchronize system
of specialized activities for the rationale of realizing certain goals over some extended
period of time.
__________________6. It deals with what people think, feel and do in the organization.
__________________7. It consists of services like transportation, communication, whole
sale and retail, finance, insurance, real estate and government.
__________________8. It is the unwritten set of expectations of the employment
relationship which details what each party looks forward to give and receive.
__________________9. It is the huge assortment of differences produced by cultural
trends.
__________________10. It requires that individuals on the organization must work
together harmoniously
Name: ______________________ Course/Year/ Section: _____________________
Date: ____________________________Score: _____________________________

MINI-CASE STUDY 1

Difficult Transitions

(Adapted from: Organizational Behavior 6th ed. 2009 by Griffin & Moorhead)
Tony Stark had just finished his first week at Reece enterprises and decided to drive
upstate to a small lakefront lodge for some fishing and relaxation. Tony had worked or
the previous ten years for the O'Grady Company, but O'Grady had been through some
hard times of late and had recently shut down several of its operating groups, including
Tony's, to cut costs. Fortunately, Tony's experience and recommendations and made
finding another position fairly easy. As he drove the interstate, he reflected on the past
ten years and the apparent situation at Reece.
At O'Grady, things had been great. Tony had been part of the team from day one. The job
had met his personal goals and expectations perfectly, and Tony believed he had grown
greatly as a person. His work was appreciated and recognized; he had received three
promotions and many more pay increases.
Tony had also liked the company itself. The firm was decentralized, allowing its
managers considerable autonomy and freedom. The corporate Culture was easy
going. Communication was open. It seemed that everyone knew what was going on at all
times, and if you didn't know about something, it was easy to find out.
The people had been another plus. Tony and three other managers went to lunch often
and played golf every Saturday. They got along well both personally and professionally
and truly worked together as a team. Their boss had been very supportive, giving them
the help they needed but also staying out of the way and letting them work.
When word about the shutdown came down, Tony was devastated. He was sure that
nothing could replace O’Grady. After the final closing was announced, he spent only a
few weeks looking around before he found a comparable position at Reece Enterprises.
As Tony drove, he reflected that "comparable" probably was the wrong word. Indeed,
Reece and O'Grady were about as different as you could get. Top managers Reece
apparently didn't worry too much about who did a good job and who didn't. They seemed
to promote and reward people based on how long they had been there and how well they
played the never-endings political games.
Maybe this stemmed from the organization itself, Tony pondered. Reece was a bigger
organization than O’Grady and was structured much more bureaucratically.
It seemed that no one was allowed to make any sort of decision without getting three
signatures from higher up. Those signatures, though, were hard to get. All the top
managers usually were too busy to see anyone, and interoffice apparently had very low
priority.
Tony also had some problems fitting in. His peers treated him with polite indifference.
He sensed that a couple of them resented that he, an outsider, had been brought right in at
their level after they had had to work themselves up the ladder. On Tuesday he had asked
two colleagues about playing golf. They had politely declined, saying that they did not
play often. But later in the week, he had overheard them, making arrangements to play
that very Saturday.
It was at that point that Tony had decided to go fishing. As he steered his car off the
interstate to get gas, he wondered if perhaps he had made a mistake in accepting the
Reece offer without finding out more about what he was getting into.
Case Question: 22
1. What are the several concepts and characteristics from the field of organizational
behavior that are illustrated in this case?

2. What advices can you give Tony? How would this advice be supported or tempered by
behavioral concepts and processes?

3. Is it possible to find an “ideal” place to work? Explain.

End of Module 1!

Prepared by:

MARILOU R JONOTA