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Case Study #1
The manager made little headway with John and twice considered trying
to fire him. Occasionally, John developed drive for a few weeks, but
then, he lapsed into his old ways again. After a careful analysis of John
situation, the manager concluded that although Johns needs for tangible
goods were satisfied, he might respond to some recognition; so the
manager started working in that discipline. For example, on the branchs
first birthday, the manager held a party for all employees before the bank
opened. He had a caterer prepare a large cake and write on top an
important financial ratio which was under Johns jurisdiction and which
happened to be favourable at that moment. John was greatly moved by
the recognition and the kidding which his associates gave him about
the ratio. His behaviour substantially changed thereafter, and within two
years, he became a successful manager of another branch.
The term organizational behaviour applies broadly to the interaction of people within
all types of organizations, such as business, government, schools and service
organizations. Whenever people join together in some sort of formal structure to
achieve an objective, an organization has been created. Organizations have three
elements: people, technology and structure. All these three elements are influenced by
the external social system and they in turn influence it. Most people tend to give more
emphasis to the internal organizational elements, but the external social system cannot
be ignored because it influences peoples values and contains other influential
organizations, such as labor unions and minority groups.
The people constitute the internal social system of the organization. They consist of
the individuals and groups and large groups as well as small ones. There may be
unofficial, informal groups or more official, formal ones. Groups are dynamic. They
form, change and disband. Organizations exist to serve people, rather than people
existing to serve organizations.
Technology provides the physical and economic conditions within which people work.
They cannot accomplish much with their bare hands, so they build buildings, design
machines, create work processes and assemble resources. The nature of technology
that results has a significant influence on the working relationships of people. The great
benefit of technology is that it allows people to work more effectively, but technology
also restricts people in various ways, so it has costs as well as benefits.
The social system provides the external environment within which an organization
operates. A single organization does not exist alone. It is part of a larger social system
that contains thousands of other organizations. All these organizations mutually
influence each other in a complex system that becomes the life style of the people.
With these assumptions, the managerial role is to With these assumptions, the managerial roles is to
coerce and control employees develop the potential in employees and help them
release that potential toward common objectives
1. Individual differences. People have much in common, but each person in the
world is also individually different. The idea of individually differences comes
originally from psychology. From the day of birth, each person is unique, and
individually experiences after birth make people even more difference. Individual
differences mean that management can get the greater motivation among
employees by treating them differently.
2. A whole person. Although some organizations may occasionally wish they could
employ only a persons skills or brain, all that can employed is a whole person,
rather than certain separate characteristics. When management practices
organizational behaviour, it is trying to develop a better employee, but also it
wants to develop a better person in terms of growth and fulfilment.
3. Caused behaviour (motivation). From psychology, we learn that normal
behaviour is caused by certain actions. People are motivated not by what we
think they ought to have, but by what they themselves want. Motivation is
essential to the operation of organizations. No matter how much machinery and
equipment an organization has, these things cannot be put to use until they are
released and guided by people who have been motivated.
4. Value of the person (human dignity). This confirms that people are to be treated
differently from other factors of production because they are of a higher order in
the universe. It recognizes that because people are of a higher order, they want
to be treated with respect and dignity and should be treated this way. Ethical
philosophy is reflected in the conscience of humankind confirmed by the
experience of people in all ages. It has to do with the consequences of our acts
upon ourselves and others.
The Nature of Organizations
From sociology, we learn that organizations are social systems; consequently, activities
therein are governed by social laws as well as psychological laws.
Mutual interest is represented by the statement, Organizations need people, but people
also need organizations. Organization theory explains that organizations are formed
and maintained on the basis of some mutuality of interest among their participants.
People perceive organizations as a means to help them reach their goals, while at the
same time, organizations need people to help reach organization objectives. If
mutuality is totally lacking, it makes no sense to try to assemble a group and develop
cooperation because there is no base on which to build.