TOPIC 1
INTRODUCTION TO ORGANIZATION THEORY AND BEHAVIOUR
1.1 Definition of terms used in Organization theory and Behaviour
Organization
Organization comprise of two or more people engaged in a systematic and harmonized effort , persistently over a period of time in pursuit of goals.
Behavior is defined as what people do which can be observed or measured.
Organizational Behaviour
Organizational behavior is a field of study that investigates the impact that individuals, groups and structure have on behavior within organizations for the purpose of applying such knowledge towards improving an organization’s effectiveness.
1.2 Elements of Organisational Behaviour
- People: People make up the internal and social system of the organisation. They consist of individuals and groups. The groups may be big or small; formal or informal; official or unofficial. Groups are dynamic and they work in the organisation to achieve their objectives.
- Structure: Structure defines the formal relationships of the people in organisations. Different people in the organisation are performing different type of jobs and they need to be (elated in some structural way so that their work can be effectively co-ordinated.
- Technology: Technology such as machines and work processes provide the resources with which people work and affects the tasks that they perform. The technology used has a significant influence on working relationships. It allows people to do more and work better but it also restricts’ people in various ways.
- Environment: All organisations operate within an external environment. It is the part of a larger system that contains many other elements such as government, family and other organisations. All of these mutually influence each other in a complex system that creates a context for a group of people.
1.3 Importance of studying organizational behavior
The pace of change in organization is accelerating and transformation is occurring at various work places. Therefore is time for organization, to know how to combat change for the
prosperity of organizations. The following are trends that are currently in most organizations;
Trends in current organizations. The following are trends that are currently in most organization.
i. Globalization
Globalization refers to economic, social and cultural connectivity with people in other parts of the world. It’s an ongoing process which influences aspects of organizations which some are advantageous and others are disadvantageous.
Globalization is applauded for increasing organizational efficiency and providing a broader network to attract valuable knowledge and skills while it also presents new challenges like; competitive pressures , market volatility , longer working hours, heavier workloads and work – family conflict amongst others.
ii. Information Technology
The internet and other forms of information technology are changing daily e.g.
It is connecting people around the planet and allowing small businesses in developing countries to compete in global market place within organization.
It has reshaped the dynamics of organization power and politics.
It has created new standards for competitive advantage through knowledge management.
It has brought about telecommunication where employees work from home with a computer connection to the office
iii. The changing workforce.
Dimension of workforce involves primary and secondary diversity. Primary dimension involve; gender, ethnicity, age, race, sexual orientation, mental/physical qualities that represent individual’s socialization and self identity .Secondary dimension involve education, marital status, religion and work place. Diversity of this workforce presents both challenges and opportunities in organizations. Opportunities like ; competitive advantage , reverse of market share among others .Challenges involve racism, stereotyping conflicts e.t.c
iv. Emerging Employment Relationships The changing workforce, new information & communication technology and globalization have fueled substantial changes in employment relationships. Employees face increasing turbulence in their work/employment, where they perform a variety of work activities rather than hold specific jobs and are expected to continuously learn skills that will keep them employed .This brings implications on job design, organizational loyalty and work stress.
v. Work Place Values And Ethics Values represent stable, long-lasting beliefs about what is important in a variety of situation that guide decisions and action, while ethics is the study of moral principles or values that determine whether actions are right or wrong and outcomes are good and bad. Companies are learning to apply values in a global environment and they are under pressure to abide by ethical values and higher standards of cooperate social responsibility.
1.5 Theories of Organisation behaviour
- Maslow’s Hierarchy of Needs
Figure 3.1: Maslow’s Hierarchy of Needs
- Needs were categorized as five levels of lower- to higher order needs.
- Individuals must satisfy lower-order needs before they can satisfy higher order needs.
- Satisfied needs will no longer motivate.
- Motivating a person depends on knowing at what level that person is on the hierarchy.
- Hierarchy of needs
- Lower-order (external): physiological, safety
- Higher-order (internal): social, esteem, self-actualization
- The difference is that higher order needs are satisfied internally while lower-order needs are satisfied externally.
- McGregor’s Theory X and Y
Douglas McGregor (1960) produced his analysis of the different views about people and how they should be motivated. Theory X is the traditional view that the average human dislikes work and wishes to avoid responsibility and that, therefore, ‘most people must be coerced, controlled, directed, threatened with punishment to get them to put forward adequate effort towards organizational objectives’. In contrast, theory Y emphasizes that people will exercise self-direction in the service of objectives to which they are committed and that commitment to objectives is a function of the rewards associated with their achievement.
- Herzberg’s Two Factor Theory
- Job satisfaction and job dissatisfaction are created by different factors.
- Hygiene factors: extrinsic (environmental) factors that create job dissatisfaction.
- Motivators: intrinsic (psychological) factors that create job satisfaction.
- Attempted to explain why job satisfaction does not result in increased performance.
- The opposite of satisfaction is not dissatisfaction, but rather no satisfaction.
Herzberg Two-Factor theory divides Maslow’s Hierarchy into a lower-level and a higher-level set of needs, and suggests that the best way to provide motivation for an employee is to offer to satisfy the person’s higher-order needs, ego and self-actualization. Herzberg said that lower-order needs, or hygiene factors, are different from higher-order needs, or motivators. He maintains that adding more hygiene factors to the job is a very bad way to motivate because lower-order needs are quickly satisfied.
- iv) Hawthorne Studies
Led by Elton Mayo (1939) with a research team from Harvard University who were interested in find out how changes in work environment impact productivity. Four major phases marked Hawthorne Studies;
- The illumination studies: designed to determine the influence of lighting on worker productivity. No significant difference in productivity
- The relay assembly test room studies: changes such as incentive plans, rest periods, temperature, humidity, work hours and refreshments. Productivity went up in wide variety of situations
- The interview program: interviews were held with employees to learn more about the impact of working conditions on productivity. Workers were more interested in talking about their feelings and attitudes
- The bank wiring room studies: workers were observed in a bank wiring room. It emerged that workers developed norms regarding ‘proper’ level of productivity and exerted pressure on each other to maintain that level.
