HBO- Module 1-5 - Lecture notes 1 PDF

Title HBO- Module 1-5 - Lecture notes 1
Author Jerica May Cruz
Course Bs accountancy
Institution Rizal Technological University
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MODULE 1: AN OVERVIEW OF HUMAN BEHAVIOR IN ORGANIZATION What is Human Behavior? Human Behavior refers to the physical actions of a person that can be seen or heard such as smiling or whistling. With his thoughts, feelings, emotions and sentiments, the person exhibits behaviors similar or different when he is in or out of organizations. Human behavior in organizations is more appropriately referred to as Organizational Behavior (OB). What is Organizational Behavior? Organizational Behavior or OB may be defined as the study of human behavior in organization, of the interaction between individuals and the organization, and of the Organization itself. The Goals of OB 1. To explain behavior 2. To predict behavior 3. To control behavior In explaining behavior as a goal, OB needs to systematically describe how people behave under a variety of conditions, and understand why people behave as they do. OB must be used to predict behavior so support can be provided to productive and dedicated employees, and measures could be instituted to control the disruptive and less productive ones. OB can offer some means for management to control the behavior of employees. As control is an important component of effective performance, the usefulness of OB must not be overlooked. The Elements of Organizational Behavior

1. People – The internal social system of the organization is composed of people consisting of individual persons and groups. The individual person is inducted as a member of a formal group, but soon, he or she may become a member of an informal group. 2. Structure – defines the formal relationship of people in the organization. It describes how job tasks are formally divided, grouped, and coordinated. 3. Technology – refers to the combination of resources, knowledge, and techniques with which people work and affect the task that they perform. It consists of buildings, machines, work processes and assembled resources. 4. Environment – Institutions or Forces outside the organization that potentially affects the organization’s performance. It includes suppliers, customers, competitors, government regulatory agencies, public pressure groups, and the like. Benefits of Studying Organizational Behavior 1. Development of people skills 2. Personal growth 3. Enhancement of organizational and individual effectiveness 4. Sharpening and refinement of common sense. Development of people skills Two type of skills that a person will need to succeed in his chosen career: 1. The skill in doing his work 2. The skill in relating with people A person who is much adept in the performance of his work may be successful up to a certain extent, but he will require another skill to make other people believe that he should be more successful than his current achievement.

An example is the dentist who is well-trained in his discipline but is avoided by many would-be patients. It is not surprising to see a number of dentists with insufficient number of patients. Many of these dentists would benefit from acquiring people skills through the study of OB. Another example is the group of highly productive employees who complain that they are always bypassed in promotions. Studying OB may help them find answers to their queries. Personal Growth Personal growth makes a person highly competitive in the workplace. The chance to achieve personal growth is enhanced by knowledge of OB. For instance, knowledge of the behavior of others through the study of OB will help the person understand his own behavior. A person who strives to know himself better is entering the realm of Intrapersonal Intelligence, which is very useful type of intelligence for one who wants to achieve his personal goals. Intrapersonal thinking may be described briefly as one possessed by a person with highly accurate understanding of himself or herself. Enhancement of Organizational and Individual Effectiveness Effectiveness is a major attribute of successful organizations, as well as individuals. When the right decisions are made, effectiveness follows. In decision making, knowledge of OB can be very useful. For instance, there are persons who perform better when they work in the afternoons, it would be a mistake to make them work in the morning and expect that they will perform better. Such errors could be avoided if the one authorized to decide on work assignments have knowledge of OB. Sharpening and refinement of common sense People differ in the degree of common sense they possess. Improvements in this type of ability, however, can still be made and great benefits can be derived if it is done.

For instance common sense dictates that persons working in hot and humid places cannot perform well. Common sense, however, cannot easily provide information on the exact temperature that will make them work at optimum levels. In those types of concerns, knowledge of OB may be very useful. A Brief History of Organizational Behavior History tells us that behind every major accomplishment of man is some sort of organization. Thousands of years ago, the pyramids of Egypt and the temples in Central and South America were built by workers recruited from among the populace. Whether or not there were attempts to make these types of workers perform better can be the subject of inquiry. What we see in the movies is the whip, which as we understand was designed to make the workers do their assigned tasks. It is modern history, however, that provides us with records of how concerned scientists and experts made studies which have direct or indirect bearing to OB. Origins of Organizational Behavior 1. Human Relations approach 

Scientific Management approach by Frederick W. Taylor



The human relations approach by Elton Mayo and Others

2. The Personality theories 

Freud’s Model



The behaviorist approach by Watson and Skinner



The Humanist approach by Carl Rogers, Fritz Perls, and Abraham Maslow

Frederick W. Taylor (1916) 

Father of Scientific Management



Time and motion study



Piece rate method

Frederick W. Taylor was the well-known disciple of the scientific management movement. The primary purpose of scientific management was the application of scientific methods to increase the individual worker’s productivity. Taylor used scientific analysis and experiment to increase worker output. He did it by regarding individuals as equivalents of machine parts and assigned them specific repetitive tasks. Elton Mayo (1920’s and 1930’s) 

Human Behavior at Harvard University



Hawthorne’s experiments plants

Elton mayo and his research team conducted the Hawthorne studies in 1920 to determine what effect hours of work, periods of rests and lighting might have on worker fatigue and productivity. It was discovered that the social environment have an equivalent if not greater effect on productivity than the physical environment. Mayo concluded that social interaction is a factor for increased productivity. Another group of researchers espoused the personality theories and made significant contributions to the development of OB. Sigmund Freud 

Freudian Motivation theory

A great contributor is the psychologist Sigmund Freud who brought the idea that people are motivated by far more than conscious logical reasoning. Freud believed that irrational motives make up the hidden subconscious mind, which determines the major part of people’s behavior. JB Watsons 

Theory about the learned behavior (Scientific theory of behaviorism)

Through an approach called Behaviorism, another eminent psychologist, J.B. Watson, formulated the theory about learned behavior. This theory indicates that a person can be trained to behave according to the wish of the trainer.

B.F. Skinner 

Theory of behavior modification

B.F. Skinner extended Watson’s theory with his own theory of behavior modification. Skinner concluded that when people receive a positive stimulus like money or praise for what they have done, they will tend to repeat their behavior. When they are ignored and receive no response to the action, they will not be inclined to repeat it. The humanist movement is another important aspect in the development of OB. It is composed of a group of psychologists and three prominent contributors – Carl Rogers, Fritz Perls, and Abraham Maslow. Carl Rogers 

Self-theory

Rogers focused on the person as an individual instead of adhering to a rigid methodology. He believes that people should acquire their own values and attitudes rather than be committed to a fixed set of prescribed goals. The more self-directed and aware people are, the better they are able to develop their own individual values and adapt to a changing environment. Fritz Perl 

Gestalt Psychology

Fritz Perls’ Contribution is the Gestalt psychology wherein the person is seen as being plagued by numerous split, or conflicting desires and needs, which dissipate energy and interfere with that person’s ability to achieve his potential. The object of Gestalt psychology is to integrate conflicting needs into an organized whole, in which all parts of a person work together towards growth and development. Abraham Maslow 

Hierarchy of needs

For his part, Abraham Maslow forwarded his model which espouses the idea of developing the personality toward the ultimate achievement of human potential. This process is referred to as self-actualization. To achieve this objective, the person must work his way up the succeeding steps of a hierarchy of needs. Ethics and Organizational Behavior May an organization use whatever means, fair or foul, to achieve its objectives? It is alright for a firm to ask its employee to obtain confidential information through espionage regarding the operations of a competitor? Is it right for a business firm to adapt a policy of hiring only those who are members of a certain religious sect? Is it right for organizations to allow executives to play favorites in the workplace? These and similar behaviors in the organization happen every now and then. Should the propriety of such behaviors be the concern of organizations? If allowing such actions become the norm rather than the exception, would it be to the best interest of everyone especially employers and employees? Answers to the foregoing questions permeate a body of principles that modern man tries to consider in the pursuit of his goals. Philosophers maintain the view that a society that has low regard for morals will disintegrate after a period of time. To avoid chaos and destruction, and to make life in society possible, adherence to the practice of moral principles regulating human relations become necessary. The above concerns bring us to the topic of organizational ethics. What is Ethics? Ethics refers to the set of moral choices a person makes based on what he or she ought to do. Organizational Ethics – these are moral principles that define right or wrong behavior in organizations

Ethical Behavior – refers to the behavior that is accepted as morally good and right as opposed to bad and wrong. What constitutes right and wrong behavior in organization is determined by: 1. Public 2. Interest groups 3. Organizations 4. The individual’s personal morals and values Ethical Issues Important ethical issues that confront organizations: 1. Conflict in interest – When a person is in the position of having to decide whether to advance the interests of the organization or to operate in his or her own personal interests. For instance, the purchasing officer of a university is in a situation where there is conflict of interest when he owns the shop that sells office supplies to the university. 2. Fairness and honesty – In organizations, which practices ethical behavior, people do not accept bribes to influence the outcome of a decision. People in the organization are expected to be fair and honest. Ethical behavior demands that, beyond obeying the law, they should not knowingly harm customer, clients, and competitors through deception, coercion, or misrepresentation. For example, a certain agency of the government would not normally release documents unless a certain amount of money is handed down to the releasing clerk. 3. Communication – People can become victims of organizations that provide false and misleading information about their products and services. For instance, a recruitment firm makes it appear that the employment conditions they describe to the job applicants would be identical to what the foreign employer would offer. This practice is, of course highly unethical.

4. Relationship within the organization – within the organization, people may still be performing unethical acts. For example, employee A developed an idea that will be very useful to the organization. Employee B steals the idea and presents it to the top executive before employee A could present it himself. This action is highly unethical and it is to the detriment of the organization if such actions are allowed to flourish. MODULE 2: Individual differences, mental ability and Personality INDIVIDUAL DIFFERENCES Individual differences refer to the variation in how people respond to the same situation based on personal characteristics. The idea is that each person is different from all others and that these differences are usually substantial rather than meaningless. For instance, when management introduced the playing of soft music at the workplace, employee A was affected positively and he was able to perform his duties more efficiently. At the end of first day the music was introduced, his output increased from 20 to 25 finished items. Employee B, however, was distracted, and his output decreased from 21 to 18 finished units. Employee C appreciates the music, but he feels that his output will increase by 25 percent if the music is a little louder and more upbeat. Consequences of Individual Differences Individual differences become serious concerns when people are situated in the workplace. Those concerned with managing people or simply those that want to relate well with people must be aware that there are consequences arising out of differences between people. These pertain to the following: 1. People differ in productivity Productivity refers to the rate of output per worker. It differs from person to person. If the rate of output in the sales office is measured in terms of number of units sold by each salesman, it cannot be expected that everyone will sell same number of units for a given period. This may be attributed to individual differences among the salesman like experience, age, education, and the like.

2. People differ in the quality of their work Because people are different from each other, it’s not surprising that the quality of their work will also be different. Some individuals will not be contented in making products of mediocre quality, while others will just strive to produce outputs that barely passed standard requirements. 3. People react differently to empowerment Empowerment means giving someone the power to do something. For instance, an individual may be empowered to sign purchased contracts and with it the authority to determine what supplies and materials are needed to be purchase. Some person may feel happy if he is provided with such responsibility; others will feel uncomfortable and will prefer to just follow orders. 4. People react differently to any style of leadership If all subordinates in a given unit will respond well to a single style of leadership, managing them or simply relating with them would be a much easier task. But this is not so, as some people will prefer a leader with a democratic style, while some will need close supervision from their superiors. These differences make it necessary for a leader to use different leadership styles even on a small unit. 5. People differ in terms of need for contact with other people Regarding the need for social contact, people are also different from one another. Some will need more contact, while others can work alone the whole day. Other people cannot be productive unless they meet people as they work. The salesman’s job, for instance, is well fitted for those in need of frequent interactions with other people. In contrast, there are those who can perform jobs in research laboratories where contract with other is minimal. 6. People differ in terms of commitment to the organization Commitment to the organization varies among individuals. Some are so committed and loyal to the organization that they work the whole day without noticing that they are

putting in more than the required working hours. Those who are highly committed to the organization tend to produce high quality output, while those who are less committed are less concerned about output and attendance. 7. People differ in terms of level of self-esteem People also differ in terms of self-esteem. Those with low self-esteem tend to be less productive. They also avoid accepting more responsibilities. They do so for various reasons, one of which is that they may think that their abilities do not match the requirements of the job. The opposite happens when people have high regard of themselves. Many great inventions, literary work, and discoveries were made by people with high self-esteem. WHAT MAKES PEOPLE DIFFERENT FROM EACH OTHER People are different from each other because of the following: 1. Demographics 2. Aptitude and ability 3. Personality

1. Demographics Performance in the workplace and the behavior of workers are sometimes affected by the differences between the demographic characteristics of individual workers. The sources of demographic diversity include the following: 1. Gender Gender Differences – the difference in the perception of male and female roles are referred to as gender differences. Research findings indicate that there are very few differences between men and women that affect job performance. Specifically, men and women are not different along the following concerns:

1. Problem solving 2. Analytical skills 3. Competitive drive 4. Motivation 5. Learning ability 6. Sociability

2. Generational differences and age Generational and Age-based differences – a worker that belongs to a certain generation may behave differently from a worker who belongs to another. This difference is called generational difference. An example may be derived from the changes in values over generations. For instance, in a generation that values loyalty, it will not be difficult to find workers who have stayed in their respective companies for long periods. The opposite may be expected from a generation that values something else. Differences in the ages of workers also bring about expectations of differences in the behavior of workers. More often age is associated with experience, so we take it as a matter of course when a 61 years old person says that he has 40 years of teaching experience, or when a 26 years old employee has a 5 years teaching experience. This is not always true, however, because there are instances when people over 60 years old have less than 10 years of teaching experience. In general, however, we consider age and experiences as related. 3. Culture Culture – differences in job performance and behavior are sometimes caused by differences in culture. If, for instance, a Filipino employee is confronted by a superior for a perceived error committed by the employee at the workplace, it is not surprising if

the employee keeps quiet even if he believes he is not at fault. It may take some effort for someone to make him respond. This is so because Filipinos consider it impolite and discourteous to talk back to superiors or elders. This behavior is common to Filipinos and we cannot expect people from other cultures to behave in the same manner. Culture refers to the learned and shared ways of thinking and acting among a group of people or society. This definition implies that culture has two dimension...


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