MODELS OF

ORGANIZATIONAL
BEHAVIOR
 what is custodial model of
organization?
•The custodial model of organization is
based around the concept of providing
economic security for employees- through
wages and other benefits that will create
employee loyalty and motivation.
 CUSTODIAL MODEL
• The basis of this model is economic
resources with a managerial orientation of
money
• The employees in turn are oriented towards
security and benefits and dependence on
the organization
 CUSTODIAL MODEL
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 contented. However, contentment does
not necessarily produce strong motivation; it may
produce only passive cooperation. The result tends to be
that employees do not perform much more effectively
than under the autocratic approach.
However, contentment does not necessarily
produce strong motivation; it may produce
only passive cooperation. The result tends to
be that employees do not perform much more
effectively than under the autocratic
approach.
 CUSTODIAL MODEL
A successful Custodial Approach depends on economic
resources. The resulting managerial orientation is
toward money to pay wages and benefits. Employee’s
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
custodial approach.
 WHAT FOCUSES THE
CUSTODIAL MODEL OF
ORGANIZATION?
• It mainly focuses on the financial reward
aspects of being employed by the organization.
the underpinning concept of this model is that
employees become quiet dependent upon the
package of wages and other benefits provided
by the organization.
 ROLE OF MANAGEMENT
•According to the custodial model,
managers can motivate workers and
improve their performance by providing
a financial incentive, such as financial
bonuses and benefits for good
performance.
 ROLE OF MANAGEMENT
•This model promotes a win-win
philosophy where employees and the
organization share in the benefits of
improved performance of the firm’s
workforce
 IMPACT ON THE TEAMWORK
• This has the potential to create a self-interested
environment that actually negates the concept of
teamwork.
• The custodial model is likely to discourage the
concept of teamwork- with the exemption of “
mutual favors” between staff alliance – a “ you help
me, and i will help you” relationship.
IMPORTANT FEATURES OF CUSTODIAL
MODEL
• (i) The success of the custodial model
depends upon the economic resources
because this model emphasizes the
economic rewards and benefits. since
employee’s physiological needs are already
met the employer looks to security needs
as a motivating force.
 IMPORTANT FEATURES OF
CUSTODIAL MODEL
• (ii) The employees under custodial model
depend upon organization rather than their
boss. if the organization has got good
welfare and development programs for the
employees, they cannot afford to leave the
organization.
 IMPORTANT FEATURES OF
CUSTODIAL MODEL
• (iii) Under this model, the employees are
satisfied and happy and they are not strongly
motivated. so they give only passive
cooperation. they do not work more vigorously
than under the autocratic approach.
 IMPORTANT FEATURES OF
CUSTODIAL MODEL
• (iv) The main benefit of this model is that it brings
security and satisfaction to the employees.
• (v) The difficulty, with this model is that it depends
upon material rewards only to motivate the
employees. but the workers have their
psychological needs also.
 CUSTODIAL MODEL
•The employee need that is met is security
•Employee feel with reasonable contentment
•Most employees are not producing
anywhere near their capacities
•The performance result is passive
cooperation
 EXAMPLE OF CUSTODIAL MODEL

• Garments factory, because here it is based

on economical resource. here labors
execute their job for security and benefit,
again here if an organization do well then
employee get better benefit.
 CUSTODIAL MODEL
• The custodial model mainly focuses on the financial
reward aspects of being employed by the organization.
The underpinning concept of this model is that
employees become quite dependent upon the package of
wages and other benefits provided by the organization.
As a result, they look to improve their performance for
the firm in order to maintain their position and be
promoted over time.
 CUSTODIAL MODEL
•The custodial model is based around
the concept of providing economic
security for employees – through
wages and other benefits – that will
create employee loyalty and
motivation.
 CUSTODIAL MODEL
BASIS OF MODEL
Managerial orientation
Employee orientation
Employee psychological result
Employee needs met
Performance result
ECONOMIC RESOURCES
Money
Security and benefits
Dependence on organization
Security
Passive cooperation
 CUSTODIAL MODEL

DEPENDS ON ECONOMICAL RESOURCE

MANAGERIAL ORIENTATION IS MONEY
EMPLOYEE ORIENTATION IS SECURITY
AND BENEFIT
 CUSTODIAL MODEL
EMPLOYEE PSYCHOLOGICAL RESULT DEPENDS
ON ORGANIZATION
EMPLOYEE NEEDS MET IS SECURITY
PERFORMANCE RESULT IS PASSIVE
COOPERATION
 REFERENCES
• GREGORY MOORHEAD AND RICKYW GRIFFIN : ORGANIZATIONAL BEHAVIOUR.
• HTTPS://EBRARY.NET/2814/MANAGEMENT/MODELS_ORGANIATIONAL_BEHAVIOUR
• HTTPS://WWW.MYORGANISATIONALBEHAVIOUR.COM/CUSTODIAL-MODEL-OF-ORGANISATIONAL-BEHAVI
OUR/#:~:TEXT=WHAT%20IS%20THE%20CUSTODIAL%20MODEL,BEING%20EMPLOYED%20BY%20THE%20
ORGANISATION
.
• HTTPS://SMALLBUSINESS.CHRON.COM/ADVANTAGES-HYBRID-ORGANIZATIONAL-STRUCTURES-719.HTML
• ZARATE, CYNTHIA A. ORGANIZATIONAL BEHAVIOR AND MANAGEMENT IN THE PHILIPPINE
ORGANIZATION 2006
• MARTINEZ, CONCEPCION. HUMAN BEHAVIOR IN ORGANIZATION SECOND EDITION 2002.