Overview of Human Behavior in Organizations

Subject: Mgt 244 Human Behavior in Organization

Reporter: DANIEL GABRIEL C. PRADES
Professor: DR. RAINALDA T. RAMBUYON

EXPECTED OUTCOMES
In this unit, the student should attain the following learning outcomes:

1. Improved understanding of individual and group behavior in the workplace.

2. Enhanced ability to manage and lead teams effectively.
3. Development of skills in communication, conflict resolution, and problem-
solving.
ESSENTIAL QUESTIONS
To understand better the lesson, use the following questions as guide to
process the information in the following section:
1. What are the key factors that influence human behavior in
organizations.
2. How can they be managed effectively to improve organizational
performance and create a positive work environment?

EXPLORING CONTEXT

Overview of Human Behavior in Organizations.

1.1 Meaning of Human Behavior

Human behavior is the way people act and interact in different situations. It is influenced
by individual factors such as personality, emotions, and motivation, as well as
environmental factors such as culture, social norms, and organizational policies.

Human behavior refers to the range of actions and interactions that individuals exhibit in
response to various internal and external stimuli. It is a complex and multifaceted
phenomenon that is influenced by a variety of individual, social, and environmental
factors.

Individual factors that contribute to human behavior include personality traits,

emotions, attitudes, beliefs, values, and motivation. For example, extroverted
individuals may be more likely to seek out social interactions, while introverted
individuals may prefer more solitary activities. Similarly, individuals who are highly
motivated may be more likely to set and achieve ambitious goals than those who lack
motivation.
Social factors that influence human behavior include cultural norms, social roles, and
group dynamics. For example, cultural norms may shape an individual's beliefs about
appropriate behavior in certain situations, while social roles may dictate the
expectations and responsibilities associated with a particular position or status. Group
dynamics also play a role in human behavior, as individuals may behave differently in
groups than they do when acting alone.

Environmental factors that contribute to human behavior include physical

surroundings, organizational policies and procedures, and economic and political
conditions. For example, individuals may behave differently in a crowded, noisy
environment than they would in a quiet, peaceful one. Organizational policies and
procedures may also shape human behavior by setting expectations for appropriate
conduct and providing incentives and rewards for certain behaviors.

Overall, understanding the various factors that influence human behavior is essential for
effective management and leadership in organizations. By developing a deeper
understanding of human behavior, managers and leaders can create a positive work
environment, improve employee performance, and foster a culture of innovation and
success.

1.2 What is Organizational Behavior

Organizational behavior is the study of human behavior in organizations, including
individual, group, and organizational processes. It focuses on understanding how
individuals and groups behave, how organizations are structured and operate, and how
they can be managed effectively.

Organizational behavior (OB) is a field of study that examines the behavior of

individuals, groups, and organizations within the context of the workplace. It is a
multidisciplinary field that draws on theories and methods from psychology, sociology,
anthropology, economics, and other social sciences.

The primary goal of OB is to improve organizational effectiveness by understanding

and influencing the behavior of employees and groups in the workplace. This includes
studying factors such as motivation, job satisfaction, leadership, communication,
decision-making, and organizational culture.

OB researchers use a variety of research methods to investigate these topics, including

surveys, experiments, field studies, and case studies. They also use various theoretical
frameworks to guide their research, such as social exchange theory, cognitive
dissonance theory, and attribution theory.

OB has several practical applications for managers and leaders in organizations. By

understanding the factors that influence employee behavior and attitudes, managers
can improve employee motivation, job satisfaction, and productivity. For example, they
may use incentives and rewards to motivate employees or redesign job tasks to make
them more engaging and challenging.

OB can also help managers and leaders develop effective leadership skills,
communication skills, and decision-making skills. By understanding how employees and
groups interact within the workplace, managers can develop strategies for effective
communication and collaboration, resolve conflicts, and make better decisions.

Overall, OB is an important field of study that can help organizations improve their
performance, create a positive work environment, and achieve their goals. By applying
the insights and techniques of OB, managers and leaders can create a workplace that is
both productive and satisfying for employees.

1.3 What is an Organization?

An organization is a group of people who work together to achieve a common goal or
objective. It can be viewed as a system that takes inputs, processes them, and
produces outputs. There are two main types of organizational systems: closed and open
systems.

An organization is a group of people who work together to achieve a common goal or

set of goals. It can take many different forms, from a small family-owned business to a
large multinational corporation, and can operate in a variety of sectors, such as for-
profit, non-profit, and government.

One way to conceptualize an organization is as a system composed of interconnected

parts that work together to achieve a common purpose. These parts may include
individuals, teams, departments, and functional areas, and they may be organized in a
hierarchical or flat structure depending on the organization's goals and culture.

Another way to think about organizations is as either closed or open systems. A closed
system is self-contained and operates independently of its environment, while an open
system interacts with its environment and adapts to changes in the external
environment. Most organizations are open systems, as they must interact with
customers, suppliers, competitors, and other external stakeholders in order to survive
and thrive.

Organizations are also characterized by their culture, which refers to the shared values,
beliefs, norms, and practices that shape the behavior of employees within the
organization. A strong organizational culture can help align employee behavior with
organizational goals, improve communication and collaboration, and create a sense of
community and purpose.

Overall, organizations are complex and dynamic entities that play a crucial role in
society and the economy. By understanding the nature of organizations and the factors
that influence their behavior, individuals can develop the skills and knowledge needed
to succeed in the workplace and make a positive impact on their organization and the
broader community.

a. Organization as a System
A system is a set of interrelated and interdependent components that work together to
achieve a common goal. An organization can be seen as a system that takes inputs,
such as raw materials, people, and technology, and transforms them into outputs, such
as products, services, or information. The system is influenced by external factors such
as the economy, competition, and technology.

Organizations can be viewed as systems composed of interconnected parts that work

together to achieve a common purpose. A system is a collection of parts or components
that are interrelated and interact with one another to achieve a common goal.

The concept of an organization as a system is based on the idea that organizations can
be analyzed and understood in terms of their inputs, processes, and outputs. Inputs are
the resources that an organization uses, such as human resources, capital, and
materials. Processes are the activities that an organization engages in, such as
production, marketing, and administration. Outputs are the products or services that an
organization produces, such as goods or services for customers.

One of the key characteristics of a system is that it is dynamic and responsive to

change. Organizations must be able to adapt to changes in the environment, such as
changes in customer needs or technological advances. They must also be able to adapt
to changes in their internal environment, such as changes in the composition of the
workforce or changes in the organizational structure.

Systems theory provides a framework for understanding how organizations function

and how they can be managed effectively. By understanding the inputs, processes, and
outputs of an organization, managers can identify areas for improvement and develop
strategies for achieving organizational goals.

Systems theory also emphasizes the importance of feedback in organizational

functioning. Feedback is the information that an organization receives about its
performance and how it can be improved. By collecting and analyzing feedback,
managers can identify problems and develop solutions to improve organizational
performance.

Overall, the systems perspective is a valuable framework for understanding

organizations and their behavior. By viewing organizations as systems, individuals can
gain a deeper understanding of the factors that influence organizational performance
and develop strategies for improving organizational effectiveness.

b. Closed versus Open System

A closed system is a self-contained system that operates without interaction with its
environment. An example of a closed system is a watch. In contrast, an open system is
a system that interacts with its environment and is influenced by external factors. An
example of an open system is an organization. It must adapt and respond to changes in
the environment to survive and thrive.
In the context of organizations, closed and open systems refer to different approaches
to organizational design and management.

A closed system is one that is self-contained and operates independently of its

environment. In a closed system, the organization's goals and objectives are largely
focused on internal efficiency and effectiveness. The organization operates according to
a set of established rules and procedures, and there is little interaction with external
stakeholders such as customers, suppliers, or competitors.

Closed systems are relatively rare in modern organizations, as most organizations must
interact with their environment in order to survive and thrive. However, closed systems
may be appropriate in certain contexts, such as highly regulated industries where
external factors are tightly controlled.

In contrast, an open system is one that interacts with its environment and adapts to
changes in the external environment. Open systems are characterized by a focus on
external factors such as customer needs, market trends, and competitive pressures.
They are flexible and responsive to change, and they are able to learn and adapt over
time.

Open systems are the most common type of organization in modern business
environments, as they allow organizations to be responsive to changing customer
needs and market conditions. However, open systems can also be more complex and
challenging to manage, as they require managers to balance the competing demands of
internal efficiency and external effectiveness.

Overall, the choice between a closed and open system approach to organizational
design and management will depend on a variety of factors, including the organization's
goals, the nature of its industry and environment, and the skills and resources of its
management team. Ultimately, the most effective organizations are those that are able
to balance the competing demands of internal efficiency and external effectiveness in a
way that allows them to achieve their goals and thrive over the long term.

Some examples of organizations in the Philippines tha00t may be more open or

closed in their approach to organizational design and management:

Open Systems:

Globe Telecom - A telecommunications company that focuses on customer needs and

market trends to drive innovation and growth.
Gawad Kalinga - A non-profit organization that works closely with local communities
and stakeholders to address social issues and promote sustainable development.
Ayala Corporation - A diversified holding company that has expanded into various
industries such as real estate, telecommunications, and healthcare.

Closed Systems:
Philippine National Police - A government agency that follows strict rules and
procedures to maintain order and safety in the country.
Bureau of Internal Revenue - A government agency that operates according to
established tax laws and regulations, with limited interaction with external stakeholders.
Supreme Court of the Philippines - The highest judicial body in the country, which
operates according to a set of established legal procedures and protocols, with limited
interaction with external stakeholders.

In conclusion, human behavior in organizations is a complex and fascinating topic that

requires an understanding of individual, group, and organizational processes. By
studying human behavior in organizations, we can learn how to manage people
effectively, improve organizational performance, and create a positive work
environment. Thank you for listening.

EXPANDING SKILLS
Try to answer the following exercises below:
A simple exercise you can do to reinforce your understanding of the
topics covered in this report:

1. Take a piece of paper and draw a diagram of an organization as a system,

including the inputs, processes, and outputs.
2. Write down three examples of inputs, processes, and outputs for a company of
your choice.
3. Write down three characteristics of an open system and three characteristics of a
closed system.
4. Give an example of a company you know that you think operates more like an
open system, and explain why.
5. Give an example of a company you know that you think operates more like a
closed system, and explain why.
This exercise will help you apply the concepts covered in this report to real-world
examples, and reinforce your understanding of the key ideas.
Here's an example of the exercise:
1. Diagram of an organization as a system:

input processes outputs

 2. Example inputs, processes, and outputs for a coffee shop:
Inputs:
Coffee beans Milk Sugar

Processes:
Grinding the coffee beans Steaming the milk Adding sugar to taste

Outputs:
A cup of coffee with milk and sugar
A satisfied customer
Revenue for the coffee shop

3. Characteristics of open and closed systems:

Open systems:
Interactive with their environment
Responsive to changes
Continuously learning and adapting

Closed systems:
Self-contained and operates independently
Focused on internal efficiency and effectiveness
Little interaction with external stakeholders

4. Example of a company that operates more like an open system: Amazon

Amazon operates as an open system because they are highly responsive to changes in
the external environment, such as changes in customer needs, market trends, and
competitive pressures. They continuously learn and adapt to these changes, and are
constantly innovating new products and services to meet the changing demands of their
customers.

5. Example of a company that operates more like a closed system: United States
Postal Service (USPS)
USPS operates as a closed system because they follow a set of established rules and
procedures to deliver mail and packages, with limited interaction with external
stakeholders. They focus on internal efficiency and effectiveness, and have a
hierarchical organizational structure that is less responsive to changes in the external
environment.

ENRICHING LEARNING
To have further understanding of the lesson, do the following:
1. How can understanding human behavior help improve
organizational effectiveness?
2. What are some examples of open and closed systems in organizations in the
Philippines?
 REFERENCES
Robbins, S. P., & Judge, T. A. (2019). Organizational behavior (18th ed.).
Pearson.
Ivancevich, J. M., Konopaske, R., & Matteson, M. T. (2013). Organizational
behavior and management (10th ed.). McGraw-Hill Education.
Daft, R. L. (2018). Organization theory and design (13th ed.). Cengage Learning.
Schein, E. H. (2010). Organizational culture and leadership (4th ed.). John Wiley & Sons.
Katz, D., & Kahn, R. L. (1978). The social psychology of organizations (2nd ed.). Wiley.