THE D Y N A M IC S O F

O R G A N IZ AT I O N A L A N D
HU M A N B E H A V IO R
• ONE IMPORTANT SUBJECT OF INTEREST IN HUMAN BEHAVIOR IS HOW CHANGE AFFECT PEOPLE IN ORGANIZATION.
THE PROCESS OF CHANCE CAN BE MANAGED TO MAXIMIZE ITS SUCCESS AND MINIMIZE UNINTENDED
DISRUPTION IN THE FLOW OF ORGANIZATIONAL OPERATION. CHANGE IS COMPELLED BY MANY SOURCES SUCH AS
SOCIAL AND DEMOGRAPHIC TRENDS, THE ECONOMIC CONDITIONS PREVAILING IN THE WORLD MARKET,
COMPETITIONS, TECHNOLOGY, POLITICS AND GOVERNMENT REGULATIONS AND MANY OTHER FACTORS IN THE
ORGANIZATIONAL ENVIRONMENT.

• THERE IS A SAYING THAT THE ONLY PERMANENT THING IN THIS WORLD IS CHANGE. CHANGE IS A DYNAMIC
FACTOR IN ALL ORGANIZATION. ANYONE WHO RESIST CHANGE IS DOOMED TO [PERISH IN THE WORLD OF
BUSINESS. THEY SHOULD EITHER CHANGE OR DIE, THERE IS NO THIRD ALTERNATIVE. ORGANIZATION THAT
LEARNS AND COPE WITH CHANGE WILL THRIVE AND FLOURISH AND OTHERS WHO FAIL TO DO SO WILL BE WIPED
OUT.
• CHANGE WAS BROUGHT ABOUT BY THE PREVAILING CONDITION IN THE ENVIRONMENT. ANY CHANGE IN THESE
CONDITIONS NEEDS ADJUSTMENT BOTH IN MATERIAL, TECHNOLOGY AND MANPOWER DEVELOPMENT. IN A VERY
SIMPLE WORD, WE CAN SAY THAT CHANGE MEANS ALTERATION OF THE STATUS QUO OR MAKING THINGS DIFFERENT. IT
REFERS TO ANY ALTERATION WHICH OCCURS IN THE OVERALL WORK ENVIRONMENT OF THE ORGANIZATION.

• PINOY CAN HIS THOUGHTS AND HE WILL CHANGE HIS WORLD. PINOY CAN DO MANY THINGS TO SIMPLIFY HIS BUSY
LIFE. HE CAN COMMUNICATE EFFECTIVELY, DISCIPLINE HIMSELF AND ORGANIZE HIS HOME, OFFICE AND TIME SCHEDULE.
FOR SUCCESS IN ACHIEVING HIS LIFE GOALS, HE NEEDS TO DO MORE THAN JUST CHANGES IN HIS BEHAVIOR. TO DO
THIS, HE MUST CHANGE HIS WAY OF THINKING.

• PINOY THOUGHT HAS A GREAT DEAL TO DO WITH HIS SUCCESS IN ANY GOAL IN LIFE. TO A LARGE EXTENT, THE MIND
CONTROLS THE BODY. THE BEST WAY TO CONTROL HIS THOUGHTS IS TO CONTROL WHAT PINOY PUTS IN HIS MIND.
PINOY POSITIVE THOUGHTS WILL LIKELY RESULT IN HIS GOOD LIFE. PINOY WILL BE ABLE TO DEFINE HIS REAL NEEDS
AND WANTS BETTER. HE WILL BE IN POSITION TO CLARIFY THE COURSES OF ACTION THAT HE HAS TO TAKE. IT WILL
MOTIVATE HIM TO PUSH FAST OBSTACLE AND STICK TO HIS BEST EFFORT UNTIL HIS LIFE GOALS BECOME A REALITY.
 PINOY 7 simple paths to change
1. HAVE LIFE PLAN - Life plan is a guide or direction towards a predestined goal. God has a plan for your life. He has plans to
give you peace and prosperity. Your heart and mind control that direction. Find your path towards peaceful simplicity.
Life is a craving for more and as you go up with wealth and position. Whatever God has plan for you.
2. EXERCISE PERSONAL DISCIPLINE - Discipline refers to the rules needed to gain and maintain order. It has something do
with how PINOY inspire images of obligation and restrictions. PINOY sense of discipline can lead to liberation from
problems and enhance productivity that leads to a happy life. PINOY will be able to schedule more time efficiently and
even combine certain activities that make him effective in the organization.
3. ORGANIZE YOURSELF - Organizing can be a valuable key of simplifying life and setting up structures for order as having
a place for everything. PINOY when properly organized will avoid stress and conflict. Getting organized may sound to
some PINOY more work, something that crowds into his tight schedules.
4. OBSERVE HUMILITY IN LIFE - Humility makes a difference in PINOY life because it is more than behavior or an action. It is
an attitude that take place and penetrates to the root of being PINOY. Humility is a change that takes place inside his
emotional and mental sets. In organizational relationship, PINOY feels to forego credits for good accomplishment as his
humble heart gives credit to god.
5. LOVE YOUR WORK AND FEEL THAT IT MATTERS – PINOY may have viewed work as an end in itself and this leave him in a
confusing state of flux on any given day. PINOY rides in the crest of wave when things go well and feels frustrated and
dissatisfied when things go wrong. PINOY has the power to maximize the satisfaction he receives from his work and
shed confusing expectations imposed by the organizational system.

6. OPEN YOUR HEART TO HELP OTHERS - Giving helps PINOY simplify by turning his eyes from the superficial assessment
of social status to the value of reaching out to those in need. PINOY who gives will become more than the faces around
him. An open hand has an open heart.

7. KEEP A HEALTHY BODY, MIND AND SPIRIT – PINOY’S good health frees him to make most of his life without thr
complication of illness. Regular exercise, the mind and the spirit will make PINOY healthy. Walking or involvement in
team games or exercise in the gym will keep body fir for work.
HUMAN BEHAVIOR AND ITS ENVIRONMENT
THE ENVIRONMENT PLAYS AN IMPORTANT FACTOR IN PERSONALITY
DEVELOPMENT. THESE ENVIRONMENTAL FACTORS CAN AFFECT EVERY INDIVIDUAL’S
CHARACTERISTICS AND BEHAVIOR AS WELL AS IT CAN DEVELOP COMPACT AND BALANCE
SOCIETY.
The following interplays with the development of social culture.
1. THE HOME AND FAMILY
The family is the most important human group which develops human behavior. It is the basic unit which
transmits the biological traits of PINOY, his mental abilities, and emotional disposition. PINOY’S basic source of
fundamental social ideals cones from the family he develops his basic attitudes, ideals, values and lifestyle with the
kind of family atmosphere in the home environment.

2. ENVIRONMENTAL FACTORS
PINOY is beginning to realize the environmental factors of disasters, tragedies, plundering, and the excessive
exploitation of our natural resources that cause flooding and other calamities which are global in nature. PINOY
visualizes the world issues of environmental change that affect people not only in this country but also in other
countries. Sustainability is the development of actions that will balance human with his environment.

3. CULTURAL ENVIRONMENT
Refers to the learned ways of living. It is the norms of behavior that are transmitted through social groups. The
culture determines how PINOY learn as a member of his social groups. Teaching and learning are two important
components that make PINOY what he is today. Culture is PINOY heritage.
4. THE SOCIAL ENVIRONMENT
Refers to the various groups and social interactions going on in the life of PINOY. He is helpless without the
group of persons to associate with. His association with the different groups of persons influences his personality.
PINOY social experience is influenced by position or his role function in the society where he is in.

5. SOCIAL STATUS AND ROLES

PINOY is either male or female, or the third sex. PINOY is born into a group and occupies a certain position or
rank. He may be the eldest in the family among the other siblings, in the Filipino family, he is required to support the
education of younger children and support or support family finances.
The ascribed status is acquired through competition in the field of work or in his social dealing with other
members of the group. PINOY, with specialized skills or talents, performs roles of leadership that develops further his
personality and status.

6. THE SOCIAL AGENT

The school, church and other social institutions are instruments in molding PINOY into a dynamic, wholesome
individual. Parents spend a lot of their investment in the education of PINOY for him to develop into a whole person with
values and culture. Parents believe that education is the vehicle for social and economic advancement.
TYPES OF ENVIRONMENTAL CHANGE
1. INDIVIDUAL LEVEL CHANGE
It may take place due to changes in job assignment and transfer of an employee to a different location or
changes in the maturity level of the person which occurs over a passage of time. As PINOY matures, he changes his
personal outlook that will have a significant impact on the organization. Managers of organization must not test PINOY
in isolation, but he must understand that the working PINOY’S level of change has repercussions beyond his
individuality.

2. GROUP LEVEL CHANGE

The group in the organization can be formal or informal. Formal group like labor unions can always resist
change that will affect the work performance of the organization. Informal groups like regional associations of ILOCANO,
VISAYA, TAGALOGS, PAMPANGOS, and all others can pose a major barrier to change because of their inherent strength.
Changes in the group level can affect workflow, job design, influence and social and communication system.

3. ORGANIZATIONAL LEVEL CHANGE

These levels of changes are made by top management that affect both PINOY and his groups. These are major
programmed changes that occur over a long period of time and require considerable time for planning for
implementation.
The different types of organizational level change are:

a. Strategic change – business condition and environment change brought about by advancement in technology and
the economy, organization changes its basic objectives to multiple objectives. Strategic change could lead the
organization to vertical or horizontal expansion or changes in business direction. Expansion in market or global
marketing could be an option for strategic change.
b. structural change – it is the pattern of relationship among various position holders. Structural change involves
changing the internal structure of the organization. The changes could be seen in authority structure, work
assignments or inter-department relationships.

c. process oriented change – these change are brought about by technological advancement in automation,
information processing with the use of advance computer system, and advancement in communication that allows
organization to hold conferences right at their respective offices. It requires personnel training programs, heavy
capital investments, and changes in operational patterns.

d. people oriented change - it could be the most difficult change needed by the organization. These changes are
directed towards better work performance, group coordination, work values, dedication, and loyalty to the
organization. It requires training and organizational interventions. It involves team building activities and behavior
medications that will change people perception about their organization and the work in general.
 OTHER FACTORS AFFECTING ENVIRONMENTAL CHANGE
1. EXTERNAL FACTORS – no organization is an island as it must interact with others the total environment. Each
organization has its goals and responsibilities related to each other. The present-day environment is dynamic of
change and organization has to adapt to these changing conditions. Such changes may result in major functions of
production process, labor-management relations, nature of competition, economic constraints and many others.

The change necessary may be seen in the following context:

a. Technology – it makes work easier and increases production. It changes work structure that needs new balance
and equilibrium in the work environment.
b. Marketing Conditions – technology improves products and services, and customer wants and needs vary as to
quality and cost. Organization exports its product to all sectors.
c. Social Change – it reflects in terms or people’s aspiration, needs and wants, and its system or working. These
changes occur due to their level of education, urbanization, feeling autonomy, and international impact due
internet, social network and other information sources.
d. Political and Legal Changes – new laws and regulation are made by the government in terms of environmental
changes, taxes, and other mandated regulations on wages and working condition. Any change in political and lega
factors may affect organizational operation.
2. INTERNAL FORCES

a. Change in Managerial Personnel – this is the replacement of old managers with new breed of managers due to
resignation or termination or transfer to their department. New managers bring new ideas and philosophy to the
workplace. These need adjustment in human relationship among workers.

b. deficiency in Existing Organizational System – it may be in the form of unmanageable span of management, large
number of management levels, lack of coordination, lack of uniform policy implementation, and changes due to
managerial re-engineering and re-organization.

c. nature of work force – different work values have been expressed by different generations of work force. Workers
who are 50 years old and above value loyalty to their employers, those in the mid-thirties are loyal to themselves
and the younger generation is loyal to their career alone. New generation have better education and they
emphasize on human values and become a very complex and challenge to managerial wisdom.

d. Organizational Avoids Developing Inertia – Changes are made so that personnel, with proper planning and
consultation, develops liking for change. Unnecessary resistance will take place when major change in
organization is brought about.
 EMPOYEE’S REACTION TO ORGANIZATIONAL CHANGE
1. ACCEPTANCE – PINOY acceptance to change depends on his individual perception. Changes are not necessarily
restricted when PINOY perceives that it will affect him favorably. When change in technology will make him sit once in
a while rather than standing the whole operation, he surely likes the idea of change. NO resistance will occur if it is
perceived as favorable to PINOY.

2. RESISTANCE – PINOY generally feels comfortable in the environment that is habituated for work. Resistance occurs
when his perception of the work environment is unfavorable.

PINOY resistance to change can be in any of the following:

a. hostility or aggression can be expressed verbally but combined these two in intense character can take into
physical form.
b. PINOY may develop lack of interest towards work as it may result in spoilage of materials, idling time and
decline in work performance and further results in decrease efficiency at work.
c. tardiness and absence at work.
d. PINOY develops resistance, anxiety and tension at work.
e. resistance may result to work stoppage or UNION strikes.
3. FORCE ACCEPTANCE – PINOY may resist change in the initial stage but if he cannot resist the change, then
there is no other way but to accept it.

4. INDIFFERENCE – PINOY fails to realize the impact of change or he feels that the change will ot affect so
much his work system. PINOY feeling of indifference is developed.

The basic reason for change

1. Improve the means of satisfying economic needs of both organization and members
2. increase profitability and productivity
3. promote human work for human beings or gainful employment
4. contribute to individual satisfaction and social well being

The three basic steps to Organization Change

1. PLANNING FOR CHANGE – first step to any change strategic change, oriented or employee-oriented change. This
could be identified in the through the internal and external factors. Planned change follows the following steps.
a. develop new goals and objectives
- It is identifying new outcomes and modifying previous goals and objectives due to change in internal and
external environment.
b. selection of the agents of change
- it is the selecting the persons involved in the change process. It may involve a chosen manager or an
outside specialist or consultant who will monitor the change process.
c. diagnose the problem
- problem analysis requires gathering of data that brought about the problem which needed change. The
data should point critical issues and solutions should focus on the identified problem.
d. select the change methodology
-the key to effective process of change.
e. select the change methodology
- the plan of action to take into account in the process of implementation. If management wants to change
the promotion policy, It must decide as to what type of employee is to be promoted or take into account those
that will be affected.
f. strategy for plan implementation
-this stage will answer the ff: when to implement, where to implement the plan, and how the plan will be
implemented and who will be affected.
MANAGING ORGANIZATIONAL CHANGE
1. CHANGE BROUGHT ABOUT BY THE ENVIRONMENT
Any change that occurred requires a certain amount of adjustment in people and organizational behavior.
Organizational equilibrium is attained when there is an existing balance between what PINOY wants in his environment
and what the organization expects to achieve. PINOY learns to deal with his organization, how to perform his job and what
to expect next. When change comes along, it requires PINOY to make new adjustments as the organization will seek a new
social equilibrium.

2. CHANGE IN PLACE OF WORK

PINOY who used to be working in Sucat Plant, was transferred to the new industrial plant in Calamba, Laguna. He
found it difficult to adjust his time schedule as he still came from Manila. In the first few weeks, he was often late. This
problem created some complaints and at the same time production schedule suffers. To solve the problem management
provided service buses that have pick point at Magallanes at Makati, Sucat and Alabang to accommodate employees
coming from different areas.
3. CHANGE IN TIME SCHEDULE
Increase in production capacity created over time work or shifting schedule to accommodate increasing orders
of customers. It becomes also the objective of management to increase plant capacity and three shifts schedule was
created. PINOY has to make adjustments or else his job satisfaction will be put into a test. On the other hand, management
has to pay additional night premium or additional incentives in terms of additional meal allowances or additional vacation
leave credits to develop equilibrium in the organizational system.

4. CHANGES IN THE NATURE OF WORK

As PINOY is promoted in the organization, it creates changes in his nature of work. PINOY promotion from the
production line or from clerical position to a higher supervisory position requires adjustment in his organizational
behavior. PINOY has to attend training programs on supervisory management and other interventions that will increase his
potential as effective supervisor of people in the organization. He needs to develop a new behavior, a new outlook to
become effective in his new position.

5. CHANGES IN TECHNOLOGY
The introduction of modern technology changes the working landscape. It needs adjustment of people in the
workplace. When computers were introduced, there were a lot of PINOY who resisted as they refused to get out of their
working comfort zone of the old routine. They need new training in the use of the machine as the old system has to be
revised and change. Those PINOY who would like to accept change were trained in the use of computers and its
application. Today new technology has to stay or PINOY could not work effectively without the use of computers.
6. CHANGE IN MANAGEMENT STRUCTURE
Any change in management structure would mean changes in the organizational system. There will be change
in policies or procedure or change in climatic management styles. PINOY has to adapt to changes in order for him stay in
the job or new pressure of work schedule. On the other hand, management must study carefully any changes in its
structural component to maintain balance in the organizational behavior of people.

THE DYNAMICS OF ORGANIZATIONAL CHANGE

The organizational system is a process of change with time and the prevailing condition in the business
environment. Pinoy and his organization have to change, as the organizational environment is static in nature.
Management and pinoy must be partners in change as they are complementary in the success of the organization.

There are basically two types of change on organizational dimensions:

1. Structural dimensions - It has something to do with the characteristics and values of the composing factors and the
behavior of people in the system. It is the internal behavior of people and management and how it interplayed in the
working of the organization.
The following are the features of structural dimensions:

a. Formalization – organization operates with formal written policies and procedures. These documents are important
components for standardization of products and services. It describe how people should do their jobs includes
system and specific instructions.
b. specialization - Any change in the system and technology carries with it changes in specialization in the
organization. PINOY has to follow a new set of structural change that fit him into the specialized work environment.
c. The hierarchy of authority - changes in management chain of command requires adjustments to new supervisory
practices. PINOY has to adjust to new supervisor or manager as a span of control may become narrow or wider
depending on the style leadership that will be implemented.
d. Standardization – any new standards in quality and work performance require changes in work system. PINOY has to
adapt in these changes in order to produce uniform quality products and production output.
e. Professionalism – as organization changes, its direction, mission and vision requires new professionals in carrying
out task of expansion. Development of organizational intervention and training programs have to be implemented
that will change the organizational philosophy and outlook of people.
f. Personnel ratio - the introduction of new machines and new technology will require revision in personnel
component. Reorganization will result in redundancy.
g. Complexity – re-organization requires new complex system as new activities have to be revised.
Division of work must be made along the following dimensions:
1. Vertical complexity – these are changes from the top to the bottom in the organizational ladder.
2. Horizontal complexity – it is made to either fuse existing departments or create new department. Fusion is created
when the company has to contract its operation and additional department is created in case of expansion.
3. Spatial complexity – this needs changes in people environment when assigned to new locations and changes
in job duties if given new positions.

H. Centralization – refers to hierarchical levels of authority in decision making. Proactive management is

decentralized as top executive gives more power to the operating departments for greater efficiency and removal or
organizational red tape.
4. changes in contextual dimension – it’s need adjustments in the system of work. System of measurement and
analysis of the working environment have to be made in accordance with the prevailing condition affecting the
business.
5. organizational sizer – as an organization becomes profitable in its operation, it has to increase its
manpower base and this means PINOY has the opportunity to promote in positions he is qualified.
The contextual dimension of the organization has to change its vision and mission in times when economic
condition becomes unfavorable.
3. organizational technology – it affects the organizational working set-up. The use of modern machines in the
production of goods or services would need PINOY to adjust or change his work system as it must conform to the
technological change.
4. Organizational environment

These are external factors that affect the organization in its operation. They are the following:
a. The government – it has something to do with operation of the organization in terms of current government laws
being implemented like taxes, fees, permits, and environmental regulations. Peace and order is the concern of
government to protect the organization.
b. the other industries – it means changes in the operation of the business. Growth in related industries would mean
growth also in the operation of similar business, while contracting in operation would also mean downsizing in the
operation of other related industry.
c. the suppliers – they are the important component of the business organization, who inputs the production line.
Suppliers are partners in business corporation. Supplier relations must be developed to maintain good business.
d. the financial institutions – they are the important component that makes business grow and prosper. Increase
interest rates would mean changes in some policy regulations of the company. Businesses become more
progressive when interest rates are low, as organization maximizes its capital base in the operation.
e. the customer or stakeholders – the most important component of any organization is the stakeholders. They are the
lifeblood of their operation. Customer satisfaction is the name of the game. The customers are difficult to satisfy
because they have changing wants and needs so organization must be proactive in marketing research to fin out
the changing conditions or market preferences.
5. Organizational strategy – it refers to the direction of the organization which is defined in its mission and vision, this
simplified into operational goals and objectives that set the company in motion thru its departmentalized level of
activities. Any changes in business landscape would mean adjustments in company strategy to cope developments in
its operational environment. KAPAG MAIKSI ANG KUMOT DAPAT MAMALUKTOT, KAPAG MATINDI NA ANGBKAHIRAPAN, TANDANG
MALAPIT NA ANG KAGINHAWAAN.

Organizing strategies
organization must develop specific strategic action plan to cope with changing environment. Business in this
world of expansion and globalization creates competition beyond the imagination of ordinary mortals.
we need the aid of competent business analyst endowed with the power to analyze the changing condition of
the business environment.
technological advancement comes too fast, and this has to be use more effectively to cope up with the
changing business landscape. Education must be able to sustain the need of industry. We have to update our
curriculum to keep in pace with the change in the organizational environment.
organization must develop specific strategic action plans in order to adjust to changes in business
environment, such as strategies must have time frame that specify target goals. It could be micro or macro-level
depending on the financial, manpower, and technical resources available at the disposal of the organization
The following strategies have to be identified:

1. Organizational expansion – it is the ability of the organization to cope with competition and its ability to innovate
product and services. It has to look for opportunities based on its current strength in the field of business.
Organizational expansion must be able to go with the tide of change in the organizational environment.

2. Organizational system of investment – the changing environment is how investments are planned and channeled
into productive activities to generate additional profits. Wise investment is based on careful study of the prevailing
condition in the business arena. Financial institutions would be willing to lend a hand on organization that will use
their money in gainful business activities.

3. Structural reforms – the design of the organizational structure must be based on its current needs for change.
Changes in the organizational desig carry with it the re-definition of duties and responsibilities. Decision making
may be centralized or decentralized depending on the kind of changes necessary to effectively handle new
challenges.

4. Human resource management – one very important component in organizational change. Any change in the human
resource component would need a new value system at work. PINOY as a working man must be able to adapt to this
changing environment as the organization depends much on him to keep moving in pace with any development.
Training and organizational interventions must be put in place to develop a new PINOY.
5. Public relation strategy – the organization is perceived by the public in terms of its product or services. Public
relation strategy must be designed in the light of its philosophy and the type of public exposure base on the prevailing
changing environment. Consumer goods need good public exposure. It must touch the life of the community public and
have greater impact on environmental concerns a values of the people.

6. Strategic customer relation and marketing system – customer and stakeholders are the lifeblood of the organization.
The organization exists because of the customer and stakeholders. Any change in customer’s wants and needs would
require organization to change its products quality and improve services. Organization’s product must be affordable
and available. Customer satisfaction is the name of the game.

Marketing organizations need to determine the following:

1. The needs and wants of potential and present customers
2. the strategy to produce and sell the product
3. The current competitors and strategy to overcome them
4. Pricing strategy that maximize profit and market share
5. Marketing and distributions system
6. Development of long term customer satisfaction and patronage
Trends in organization that will affect business in the next decade
The fast-changing condition in the global arena and the introduction of modern technology greatly affect the
conduct of the business in the next decade. The outsourcing of marketing system to our country could be a favorable
move for the increase in employment opportunity for PINOY who could talk better the language of the business where
they're assigned.

The following business trends in the conduct of organizational activities will greatly affect the global
landscape:
1. The fast change on how company conduct business.
Organizations are constantly changing their business models and behavior to adapt to the changing
market forces. The business environment today is markedly different from the past due to technological
advancement.
Marketing activities can be made through outsourcing to countries where low labor cost is abundant
supply.
PINOY is reducing marketing cost of the foreign country and develop competitive advantage.

2. outsourcing of materials and parts from other countries.

competition in the supply of materials in countries where low-cost row materials are available is another
factor that will affect business in the changing world economy. This change can be favorable to PINOY if he explores
the abundant natural inputs in the country. We have mineral deposits ready for exploration. We need only to
process these natural resources before exporting it to other countries.