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LESSON 2 Different theories and models of organizational behavior ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Theory A systematic grouping of interdependent concepts and principles that gives a framework to a significant area of knowledge. Homans: in its lowest form of classification, is a set of pigeon holes, a filing cabinet in which facts can accumulate. Nothing is more lost than a loose fact. The importance of theory is to provide a means of classifying significant and pertinent management information and knowledge. While in designing an effective organizational structure, there are a number of principles and concepts that are interrelated and that have a predictive value for managers. Theories constitute the belief system and management orientations that, consequently, affect the organization.

Douglas McGregor He developed two attitude profiles or assumptions concerning the basic nature of people. These two divergent attitudes were termed THEORY X and THEORY Y. His real contribution was the suggestion that a leaders attitude toward human nature has a large influence on how the individual behaves as a leader.

THEORY X ASSUMPTIONS o A traditional set of assumptions about people in a work environment. o They are perceived to be relatively self centered, indifferent to organizational needs and most often, resistant to change. THEORY Y ASSUMPTIONS o Implies a more humanistic and supportive approach to managing people. o The primary role of management is to provide an organizational climate in which the potential workers can be naturally released at work. McGregor view that management had been ignoring these facts about people. He argued that the Theory Y set of assumptions is more genuinely representative of most workers.


LESSON 2 Different theories and models of organizational behavior ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


McGregors Theory X and Theory Y framework on the assumptions about employees


* The typical person dislikes work and * Work is as natural as play or rest will it, if possible * People are not inherently lazy. They have become that way as a result of experience.

* The typical person lacks * People will exercise self direction and responsibility; has little ambition; and self control in the service of objectives seeks security above all. to which they are committed.

* Most people must be coerced, * People have potential. Under proper controlled, threatened with punishment conditions, they learn to accept and to get them to work. seek responsibility. They have imagination, ingenuity, and creativity that can be applied to work.

With these assumptions, the managerial role is to coerce and control workers.

With these assumptions, the managerial role is to develop potential in employees and help them release that potential toward common objectives.

It may be noted that Theory X and Theory Y set of assumptions is more truly representative of most people. Although there will always be important differences among people, a few individuals may fit into assumptions of the Theory X model.


LESSON 2 Different theories and models of organizational behavior ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ IMPLICATIONS Theory X 1. Direction and control through exercise of authority. 2. Organizational requirements take precedent over needs of members. In return for rewards offered, the individual will accept external direction and control. 3. We do not recognize the existence of potential in people and therefore, there is no reason to devote time, effort and money to discover how to realize full potential. Theory Y 1. The creation of conditions such that members of the organization can achieve their own goals bests by direction their effort toward the success of the enterprise. 2. The organization will be more effective in achieving its objectives if adjustments are made to the needs and goals of its members. 3. We are challenged to innovate, to discover new ways of organizing and directing human effort.

Herzbergs Two Factor Theory In 1950, theory about human motivation was developed by Frederick Herzberg, extending the earlier theory of Maslow. Their findings were two distinct factors that influenced motivation: 1. Hygiene or maintenance factors - Constitutes conditions in work. o Ex: better working conditions, salary and effective supervision that make employees satisfied but not necessarily motivated. - It will only keep the workers from becoming dissatisfied. 2. Motivator or job content factors - These are real motivators: achievement, responsibility and recognition. o Ex: providing better opportunities for development among workers to experience them - These factors will lead to the motivation of these workers.


LESSON 2 Different theories and models of organizational behavior ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

TABLE 2 Herzbergs Two-Factor Theory of Motivation Motivators Satisfiers Achievement Recognition Advancement Work Challenge Possibility for development Responsibility Company policies & administration Quality of supervision Relationship with supervisor Peer relations Pay Job security Working conditions Status

The motivators are the job factors that are intrinsically motivating the employees that constitute the most enduring sources of motivation in the work environment. On the other hand, the satisfiers are important factors because these create dissatisfaction, if not properly attended to by management. David C McClelland Theory Classify people in their dominant need for achievement, power, and affiliation.

He viewed that successful entrepreneurs are persons with high need for achievement. People who are high in need achievement are highly motivated to strive for the satisfaction that is derived from accomplishing some challenging tasks. Tasks for which there is a reasonable chance for success and avoid those that are either too easy or too difficult. He popularized the term Achievement Motivation which is to describe an individual's drive to overcome challenges for advancement. He believes that these are the basic needs to drive people: 1. Need for achievement - a strong correlation between high need for achievement and level of job performance and success. 2. Need for power - a drive to influence people to conform with certain situations. 3. Need for affiliation - an individual has a need to develop warm, friendly, cordial and personal relationship. 4. Need for competence- an individual has a drive to strive for quality work.


LESSON 2 Different theories and models of organizational behavior ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Skinner Operant Theory

Burrhaus Frederick Skinner- contested the theory that human needs are the determinant of human behavior. He believed that the environment determines the individual behavior event if he alters the environment. The workers can be motivated by properly creating the work environment and providing rewards or stimulus for desirable workers performance. It is the external environment that influences the behavior people exhibit rather than their external needs, wants, and desires. In this theory, rewards or any positive reinforces of a certain behavior are found to be more powerful than the negative and neutral reinforces, even if both sets of reinforces may be used. Examples of reward / positive reinforces: 1. Participation in decision-making 2. Important assignments 3. Appealing compensation 4. Other incentives and benefits According to Skinner, Usually, the ultimate reinforcement is similar to that of prestige or esteem.

Negative reinforces, for instance, suspension from work. Neutral reinforces like transfer of workplace may also be utilized to discourage unwanted behavior and encourage favourable worker behavior.

Positive reinforcement in modifying motivational behaviors of workers: 1. Do not reward equally. 2. Failure to reinforce may encourage poor subsequent performance. 3. Inform workers about what they can do to get reinforcement. 4. Tell workers when and what they are doing wrong. 5. Do not punish a subordinate in front of other workers. 6. Be fair. Since the Philippines is composed of various kinds of ethnic groups, cultural mores, dialects, regional peculiarities, religious beliefs and value system, it is difficult to say what kind of behavioural style or attitudinal orientation will best fit the prevailing environment of a Filipino organization.

LESSON 2 Different theories and models of organizational behavior ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Expectancy Theory Equates motivation with the product of valence and expectancy o Valence, i.e., how much an individual desires something. o Expectancy, i.e., the probability that a particular action will lead to the desired thing. The assumption of these models is that desire as a strong feeling to start any effort that impels an individual to the attainment or possession of something. The expectancy model implies that, through experience, people learn the kind of rewards (outcomes) they value more highly than others.

Most familiar model under this theory is that of Victor H. Vroom Level of Motivation = EP x PO x Valence Where EP = Effort Performance Expectancy e.g., the manager is inclined to believe that increased marketing effort is likely to yield increases in company sales. PO = Performance Outcome Expectancy e.g., the manager is inclined to believe that increased sales may result in his promotion. Valence = Value or preference placed on an outcome e.g., the manager is inclined to place great value on promotion; hence, assign a positive value on it. Expectancy refers to the degree of an individuals anticipatory belief that his specific action will certainly end in a particular result or outcome. The expectancy model has some limitations, despite its general appeal. It needs further testing to establish a broad base of evidence for support. The intrinsic and extrinsic rewards need to be considered. Intrinsic Motivation - Refers to motivation that comes from inside an individual rather than from any external or outside rewards, such as money or hubby. Extrinsic Motivation - Refers to motivation that comes from outside an individual. Ex. an extrinsically motivated person who dislikes math may work hard on a math equation because the reward would be a good grade.

LESSON 2 Different theories and models of organizational behavior ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Advantages of the Expectancy Model Help manager think about mental processes through which motivation as a human behavior occurs. Workers are thinking individuals whose beliefs, orientation, perceptions, and probability estimates virtually influence their behavior. Encourages managers to design a climate conducive that will stimulate appropriate worker behavior. Weaknesses of the Expectancy Model It need further testing to establish a broad base of evidence for support. The intrinsic and extrinsic rewards need to consider. Reliable measures of valence, expectancy and instrumentality need to be developed. The expectancy model also needs to be more complete while still remaining practical enough for manager use. Some manager dont have such time or resources to use complex motivational system on the job Traditional Theory of Motivation Evolved from the work of Frederick W. Taylor He emphasized using science, creating groups harmony and cooperation, achieving maximum output and developing workers. He designed a system whereby a worker was compensated according to the individuals production. The traditional theory of motivation is based on the assumption that money is the primary motivation of increasing the productivity level of performance of workers that if the reward is great enough, workers will naturally produce more. Content Theory Focuses on the content or nature of items that motivate an individual. It relates to the individuals inner self and how that individuals internal state of needs determine behavior. One major difficulty with this model of motivation is that the needs of people are not subject to observation by managers or to accurate measurement for monitoring purposes.


LESSON 2 Different theories and models of organizational behavior ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Carrot & Stick Theory Reward and punishment are still considered strong motivators. Example: 1. Carrot - is money in the form of pay or bonuses. 2. Stick - is in the form of fear. Fear of loss of job, loss of income, reduction of bonus, demotion and some other penalty. Different Models of Organizational Behavior These models constitute the belief system that dominates managements thought in running the organization. It is in the context that managers recognize the nature, significance, and effectiveness of the models they employ. 1. Supportive Model = depends on leadership instead of power or money. Chance given. Basis of model is leadership. 2. Collegial Model = characterized by the collective responsibility shared by each of the members of the organization; body of people having a common purpose. Basis of model is partnership. 3. Custodial Model = depends largely on economic resources. This leads to workers dependence on the organization. Basis of model is Economic Resources. 4. Autocratic Model = Depends on the power & authority. If workers do not obey orders, he/she will be punished. Basis of model is Power. (Flourished during industrial revolution.) Effectiveness of 4 Models They are subject to evolutionary change that affects workers. More systematic and organized. Provides courses of action for a particular problem concerning organizational behavior. Outlooks more adequate. The organization will continue to survive and attain the desired objectives.


LESSON 2 Different theories and models of organizational behavior ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ TABLE 3 The Four Models of Organizational Behavior SUPPORTIVE Basis of Model Leadership Managerial orientation Employee orientation Employee psychological results Employee needs met Performance results Support Job Performance Participation COLLEGIAL Partnership Team work Responsive behavior Self-discipline CUSTODIAL Economic Resources Money Security and Benefits AUTOCRATIC Power Authority Obedience

Dependence on Dependence on Organization Boss Security Passive cooperation Subsistence Minimum

Status and recognition Awakened drives

Selfactualization Moderate enthusiasm