Management and organizational behavior

1. Contents of table

2. Organizational behavior and structure

a) The nature of organizational behavior

b) There have various types of organizational structures

3. Management decision making and planning

a) Decision making process and type of decision

b) Important of planning and type of planning
c) Advantages and disadvantages of management by objective

4. Management and leadership and theories of organization

a) The different between leadership and manager

b) The two manager and describing how these can impact on organizational
behavior.
c) The two leadership style and suitable leadership theory for the
development of my organization

5. Understanding motivation and performance

a) Discussing important of employees’ motivation and job satisfaction

b) Discussing how effective control can improve organizational performance

6. Reference

2. Organizational behavior structure

a) The nature of organizational behavior

Organizational behavior includes a very wide selection of topics. It deals with human behavior
in the organization. This includes the study of people and how they behave within the
organization. Topics such as change, leadership, teams and behavior are just a few. It is a
systematic study of the behavior of individuals and groups within an organization.

It deals with all aspects of human behavior that occur within the context of an organization. It
entails the study of how individuals behave as individuals and in groups within an organization.

The definition of organizational behavior also states that it is the study and application of
sociology, psychology, communication and management of the individuals in an organization.

Organizational behavior and employee behavior modification encompasses four models that
most organizations work out of.

 Custodial is based on the economic resources with orientation of money. All employees
are aimed at security, benefits and dependency upon the organization. Passive
cooperation is the intended result.
 Supportive models are based upon leadership with orientation towards management of
support. Status and employee recognition are the basic needs that are met with the
supportive model.
 Autocratic model is power. It is a managerial orientation of authority. This tends to have
the employee lean towards dependence on the manager and obedience. The result of
this model is minimal. The need that is met is subsistence.
 Collegial modes is partnership with the orientation towards teamwork. Self-discipline
and behavior are the goals of this type of model. It will usually result in some moderate
enthusiasm.

It is unlikely that any organization will operate entirely in just one of these models. In most
cases there is a predominant model with some areas over-lapping. Some of these contexts are
public and mass communication, two person and small group communication. The needs of the
company will usually determine the model they choose to use.

By applying the psychological principles of experimental analysis behavior and applied

behavior analysis to organizations, it is hoped to achieve worker benefits and safety and
employee retention.

Some areas of this application include management, training, systems analysis and
performance improvement. The goal is to establish broad scale performance improvement and
organizational change in order to increase productivity and contentment which hopefully will
gain a more effective and efficient operation.

Performance management and behavioral systems management are two of the technologies
used in organizational behavioral management. Behavior based safety is also used. With the
nature of the field involved in business it is related to both industrial engineering and
psychology.

Nature and Features of Organizational Behavior

 It has assumed the status of a distinct field of study. It is a part of general management.
It represents behavioral approach to management.
 It contains a body of theory, research, application associated when a growing concern
for in work place. Its study helps in understanding human behavior.
 The study of theories and research experiences of organization facilitates manager for
creative thinking to solve human problems in organizations.
 This discipline is heavily influenced by several other behavioral sciences and social
sciences like psychology, Sociology and anthropology.
 It provides rational thinking about people. It concentrates on three level of behavior.
They are individual behavior, group behavior and organizational behavior.
 O.B. has psychological foundations. The concept like learning, perception, attitude,
motivation etc. is borrowed from psychology, sociology and anthropology.
 Organization behavior is both art and science. It is considered as art because it contains
knowledge about behavior of individuals. It is considered as science because it involves
application of science.
  Organization behavior is dynamic rather than static. It essence is reflected in change in
behavior of individuals in organization.
 It attempts to reduce the wasteful activities through economic and psychological means
and thus increasing the effectiveness of the people and the organization. The Different
Fields from which Organization Behavior takes its matter include:

Psychology:

Psychology is defined as the study of human behavior which tries to identify the
characteristics of individuals and provides an understanding why an individual behaves in a
particular way. Thus psychology provides us with useful insight into areas such as human
motivation, perceptual processes or personality characteristics.

Sociology:

Sociology is the study of social behavior, relationships among social group sand societies, and
the maintenance of social order. The main focus of attention is on the social system. This helps
us to appreciate the functioning of individuals within the organization which is essentially a
socio-technical entity.

Social Psychology:

Social psychology is the study of human behavior in the context of social situations. This
essentially addresses the problem of understanding the typical behavioral patterns to be
expected from an individual when he takes part in a group.

Anthropology:

Anthropology is the science of mankind and the study of human behavior as a whole. The
main focus of attention is on the cultural system, beliefs, customs, ideas and values within a
group or society and the comparison of behavior amongst different cultures in the context of
today’s organizational scenario. It is very important to appreciate the differences that exist
among people coming from different cultural backgrounds as people are often found to work
with others from the other side of the globe.
Economics:

Any organization to survive and sustain must be aware of the economic viability of their
effort. This applies even to the non-profit and voluntary organizations as well.

Political Science:

Although frequently overlooked, the contributions of political scientists are significant to

understand arrangement in organizations. It studies individuals and groups within specific
conditions concerning the power dynamics.

Important topics under here include structuring of Conflict, allocation of power and how
people manipulate power for individual self-interest etc.

(b) There have various types of organizational structures, some are as follow:

i. Line Organizational structure.

ii. Line and Staff Organisational Structure:

iii. Matrix Organisational Structure:

i. Line Organizational Structure:

A line organization has only direct, vertical relationships between different levels in the firm.
There are only line departments-departments directly involved in accomplishing the primary
goal of the organization. For example, in a typical firm, line departments include production and
marketing. In a line organization authority follows the chain of command.
Advantages:

 Tends to simplify and clarify authority, responsibility and accountability

relationships
 Promotes fast decision making.
 Simple to understand.

Disadvantages:

 Neglects specialists in planning

 Overloads key persons.

i. Line and Staff Organizational Structure:

Most large organizations belong to this type of organizational structure. These

organizations have direct, vertical relationships between different levels and also specialists
responsible for advising and assisting line managers. Such organizations have both line and
staff departments. Staff departments provide line people with advice and assistance in
specialized areas (for example, quality control advising production department).
 The line functions are production and marketing whereas the staff functions include
personnel, quality control, research and development, finance, accounting etc. The staff
authority of functional authority organizational structure is replaced by staff responsibility
so that the principle of unity of command is not violated.

Three types of specialized staffs can be identified:

 Advising,
 Service and
 Control.

Some staffs perform only one of these functions but some may perform two or all the
three functions. The primary advantage is the use of expertise of staff specialists by the line
personnel. The span of control of line managers can be increased because they are relieved
of many functions which the staff people perform to assist the line.

Advantages:
  Even through a line and staff structure allows higher flexibility and specialization it
may create conflict between line and staff personnel.
 Line managers may not like staff personnel telling them what to do and how to do it
even though they recognize the specialists’ knowledge and expertise.
 Some staff people have difficulty adjusting to the role, especially when line managers
are reluctant to accept advice.
 Staff people may resent their lack of authority and this may cause line and staff
conflict.

Disadvantages:

 Conflict between line and staff may still arise.

 Staff officers may resent their lack of authority.
 Co-ordination between line and staff may become difficult.
 Committee Organizational Structure Features:

ii. Matrix Organizational Structure:

It is a permanent organization designed to achieve specific results by using teams of

specialists from different functional areas in the organization.
 The matrix organization Structure

Advantages:

 Decentralized decision making.

 Strong product/project co-ordination.
 Improved environmental monitoring.
 Fast response to change.
 Flexible use of resources.
 Efficient use of support systems.

Disadvantages:

 High administration cost.

 Potential confusion over authority and responsibility.
 High prospects of conflict.
 Overemphasis on group decision making.
 Excessive focus on internal relations.

This type of organization is often used when the firm has to be highly responsive to a rapidly
changing external environment.
 In matrix structures, there are functional managers and product (or project or business
group) managers. Functional manager are in charge of specialized resources such as
production, quality control, inventories, scheduling and marketing. Product or business
group managers are in charge of one or more products and are authorized to prepare
product strategies or business group strategies and call on the various functional managers
for the necessary resources.

The problem with this structure is the negative effects of dual authority similar to that of
project organization. The functional managers may lose some of their authority because
product managers are given the budgets to purchase internal resources. In a matrix
organization, the product or business group managers and functional managers have
somewhat equal power. There is possibility of conflict and frustration but the opportunity
for prompt and efficient accomplishment is quite high.

3. Management decision making and planning

(a)Decision making and type of decision

Decision-making is an essential aspect of modern management. It is a primary function of

management. A manager's major job is sound/rational decision-making. He takes hundreds of
decisions consciously and subconsciously. Decision-making is the key part of managers’
activities. Decisions are important as they determine both managerial and organizational
actions. A decision may be defined as "a course of action which is consciously chosen from
among a set of alternatives to achieve a desired result." It represents a well-balanced judgment
and a commitment to action.

It is rightly said that the first important function of management is to take decisions on
problems and situations. Decision-making pervades all managerial actions. It is a continuous
process. Decision-making is an indispensable component of the management process itself.
 Means and ends are linked together through decision-making. To decide means to come to
some definite conclusion for follow-up action. Decision is a choice from among a set of
alternatives. The word 'decision' is derived from the Latin words de ciso which means 'a cutting
away or a cutting off or in a practical sense' to come to a conclusion. Decisions are made to
achieve goals through suitable follow-up actions. Decision-making is a process by which a
decision (course of action) is taken. Decision-making lies embedded in the process of
management.

According to Peter Drucker, "Whatever a manager does, he does through decision-making". A

manager has to take a decision before acting or before preparing a plan for execution.
Moreover, his ability is very often judged by the quality of decisions he takes. Thus,
management is always a decision-making process. It is a part of every managerial function. This
is because action is not possible unless a firm decision is taken about a business problem or
situation.

This clearly suggests that decision-making is necessary in planning, organizing, directing,

controlling and staffing. For example, in planning alternative plans are prepared to meet
different possible situations. Out of such alternative plans, the best one (i.e., plan which most
appropriate under the available business environment) is to be selected. Here, the planner has
to take correct decision. This suggests that decision-making is the core of planning function. In
the same way, decisions are required to be taken while performing other functions of
management such as organizing, directing, staffing, etc. This suggests the importance of
decision-making in the whole process of management.

The effectiveness of management depends on the quality of decision-making. In this sense,

management is rightly described as decision-making process. According to R. C. Davis,
"management is a decision-making process." Decision-making is an intellectual process which
involves selection of one course of action out of many alternatives. Decision-making will be
followed by second function of management called planning. The other elements which follow
planning are many such as organizing, directing, coordinating, controlling and motivating.
 Decision-making has priority over planning function. According to Peter Drucker, it is the top
management which is responsible for all strategic decisions such as the objectives of the
business, capital expenditure decisions as well as such operating decisions as training of
manpower and so on. Without such decisions, no action can take place and naturally the
resources would remain idle and unproductive. The managerial decisions should be correct to
the maximum extent possible. For this, scientific decision-making is essential.

A business continually makes decisions at all levels. Think of a retailer such as Next. To keep
the brand’s high profile position, its managers have to make many decisions. Each major
strategic decision leads to tactical decisions, which break down into operational decisions.
Decisions are broadly taken at three levels: Strategic decisions are big choices of identity and
direction. Who are we? Where are we heading? These decisions are often complex and multi-
dimensional. They may involve large sums of money, have a long-term impact and are usually
taken by senior management.

 Tactical decisions are about how to manage performance to achieve the strategy. What
resources are needed? What is the timescale? These decisions are distinctive but within
clearer boundaries. They may involve significant resources, have medium-term
implications and may be taken by senior or middle managers.
 Operational decisions are more routine and follow known rules. How many? To what
specification? These decisions involve more limited resources, have a shorter-term
application and can be taken by middle or first line managers.

(b) Importance of planning and type of plan

Importance of Planning has gained an essential place in the field of business management.
Because now-a-days every organization use to make plan for doing various activities in the most
appropriate manner. In fact in the absence of planning any organization cannot able to attain its
primary objectives in the best and cheapest way. On the whole it is clear that planning is one of
the most important part & parcel of business organization.
Planning is the first and most important function of management. It is needed at every level of
management. In the absence of planning all the business activities of the organization will
become meaningless. The importance of planning has increased all the more in view of the
increasing size of organizations and their complexities.

Planning has again gained importance because of uncertain and constantly changing business
environment. In the absence of planning, it may not be impossible but certainly difficult to
guess the uncertain events of future. The following facts show the advantages of planning and
its importance for a business organization:

Short term plan

Short term planning typically covers time frames of less than one year in order to assist their
company in moving gradually toward its longer term. • Examples are the skills of the employees
and their attitudes. The condition of production equipment or product quality problems are also
short-term concerns.

Long term plan

Long-Term Plan sets out our service priorities, work programs and resource requirements such
as expenditure and funding for a 10-year period. We produce a new Long-Term Plan every three
years, which incorporates our Annual Plan for that year.

Strategic Plans

Strategic plans define the framework of the organization’s vision and how the organization
intends to make its vision a reality.

 It is the determination of the long-term objectives of an enterprise, the action plan to be

adopted and the resources to be mobilized to achieve these goals.
 Since it is planning the direction of the company’s progress, it is done by the top
management of an organization.
 It essentially focuses on planning for the coming years to take the organization from
where it stands today to where it intends to be.
  The strategic plan must be forward looking, effective and flexible, with a focus on
accommodating future growth.
 These plans provide the framework and direction for lower level planning.

Tactical Plans

Tactical plans describe the tactics that the managers plan to adopt to achieve the objectives
set in the strategic plan.

 Tactical plans span a short time frame (usually less than 3 years) and are usually
developed by middle level managers.
 It details specific means or action plans to implement the strategic plan by units within
each division.
 Tactical plans entail detailing resource and work allocation among the subunits within
each division.

Operational Plans

Operational plans are developed to determine the steps necessary for achieving tactical goals.
They are used as a guide for day to day operation by department managers. These plans may
cover a time frame of few months, weeks or even a few days.

(c) Advantages and disadvantages of management by objective

In its essence, management by objectives (a technique applied primarily to personnel

management) requires deliberate goal formulation for periods, such as the next calendar or
business year, where our goals are recorded and then monitored. It’s also a popular method of
employee performance appraisal, which involves defining strategic objectives for each of our
employee and our company. Its central idea is a joint goal and standards setting with frequent
measurement against the standards, aligning individual and corporate goals. While this
approach has been embraced by many organizations, it’s not without its detractors. To utilize it
efficiently for the business, we should know its advantages and disadvantages.

Advantages are:
Encourages Face-to-Face Communication.

It encourages face-to-face communication between the manager and employees to identify

the degree to which the latter have achieved the standards or objectives. On balance,
employees are more likely to receive information that’s detailed enough to improve
performance, given the process is done properly.

It is Flexible.

Since employees have different performance standards even if their job descriptions are the
same. Unlike rating systems that are used across job positions, the standards are completely
customizable.

Greatly Improves Management.

Objectives can’t be established without planning, which makes real sense. It forces managers
to think about planning for results, instead of planning activities or work.

Allows Managers to Have Clear Idea.

It allows all managers to have a clear idea of the essential areas of their work and of the
required standards.

Aids in Developing Effective Controls.

This involves measuring results and taking courses of action to fix deviations from the actual
plans in order to ensure objectives are met.

Encourages Greater Participation.

It encourages greater participation, which may improve communication and morale.

Secures Alignment.

As individual objectives cascade from corporate goals, the organization is aligned. Plus, MBO
makes it sure that all staff members understand the organization’s overarching objectives.

Raises Awareness.
 It makes individuals more aware of organizational goals.

Disadvantages are:

Difficult to Write Performance Standards.

These are both objectively measurable and meaningful. Practically, we can’t have a huge
number of standards applying to a certain employee’s performance. Identifying which one to
use and writing it in an objective way is a form of art that generally requires training for the one
writing the standards. This means training may be needed for both managers and employees.

Difficult and Time Consuming.

Its standard-setting process is difficult and time-consuming. The upfront work involved with
MBO is much more demanding than other rating systems, where the upfront work can be
almost zero. This may seem as a weakness, but it’s more on work shifting from the review phase
to the planning phase.

Too Much Paperwork.

It can take a few years to be effective and too much paperwork might be needed to be done,
which can include difficult key operation measurement.

Not Based on Performance.

Appraisals are sometimes created on personality traits, instead of performance.

Difficulty in Measuring Objectives.

It is not easy to set measurable objectives for groups of employees who only exist to “help the
line achieve its ends”.

Ineffective Review and Counseling Process.

Its review and counseling processes for managers may be ineffective.

Questionable Decision Making.

 It may make focus on goals to cause questionable decision making. Take note that setting
targets will encourage resources to meet them using whatever means necessary, which can
result in poor quality.

MBO may or may not be a wise approach for the business, but if we decide to implement it,
consider a strategy to maximize its advantages and mitigate its disadvantages. Just put in mind
that a well thought-out and executed plan for employee evaluation can help improve the results
we want for our company.

4. Management and Leadership and Theories of organization.

(a) Different between manager and Leader

Manager Leader
Administer Innovate
Copy Originate
Maintain Develop
Look at system and structure Look at people
Control Trust
Look at the bottom line Look at the horizon
Status-Quo Challenge
Do things right Do the right things

A leader is one who knows the way, goes the way and show the way.

A manager is one who manage the things, direct the people and control on that.

(b) Two management style and describing how these can impact on
organizational behavior.
 Management is the breaking down, the analysis, the sequencing, the specific application, the
time bound left-brain. Autocratic management style and participative management style is most
useful in the organization.

Autocratic management style

Most of manager from the company use this kind of management style. In this management
style, the manager got full authorities to manage and implement the things and company. So if
the manager has good experience and skill on the project implementing, the organization
impact will raise and get more success.

Participative management style

This kind of management style are using in some humanitarian organization. In this
management style, the manager and staff have the same authorities to manage and implement
the things and project. But every staff can share their knowledge and experience during the
project cycle management, so the organization can reduce conflict and evaluate the project
mistake.

(c) The two leadership style and suitable leadership theory for the development
of my organization.

Leadership is to manage the things and lead people to transform values into action, visions
into realities, obstacles into innovations, separateness into solidarity and risks into reward.
There is seven theory of leadership that I have learnt. They are trait theory, Behaviorist theory,
interactions theory, contingency theory, path goal theory, normative theory and theory X & Y .I
would like

Principle- Centered leadership

There is eight characteristic of principle centered leadership. They are continually learning,
service oriented, radiate positive energy, believe in other people, lead balanced lives, and see
life as an adventure, synergistic, they exercise foe self-renewal.

Servant Leadership
-Servant leadership is to assume leader only if they are given chance to server.

-Ten Characteristics of a Servant Leadership

- Listening

- Empathy

- Healing

- Awareness

- Persuasion

- Conceptualization

- Foresight

-Stewardship

- Commitment to growth of people

- Building Community

- Servant Characteristics

Listening

. Active, not passive

. 360, top to bottom

. Listen completely before deciding

Empathy

. Separate person from their work

. Walk a mile in their shoes

. Personable with appropriate individuals

Healing
 . Helping your staff become whole

. Consider their history

. Built a future together

- Steps of Servant Leadership Model

1. Leadership

2. Authority

3. Service and Sacrifice

4. Love

5. Will

Intentions-Action=Squat Intentions+ Action= Will

5. Understanding motivation and performance

(a) Discussing important of employees’ motivation and job satisfaction

There is many kinds of employee in every organization. Some are coming from rich family but
other from poor and illiterate situation. As well, some are educated but some are not .The
employee is the based fundamental and building of the organization. So that employee's
motivation is very important for the organization. When motivate them from emotional and
physical depression is very important things.

Job satisfaction is vital if you wish to survive in an industry and progress gradually. The joy of
handling certain tasks and the desire to complete tasks on time takes you to the next level in
any firm. This factor plays a key role in getting you to the top of the ladder. There are many
distinct factors that affect a person’s professional life. These factors vary in different industries.
Some of the common factors that are seen in most industries help keep employees engaged and
satisfied because it takes more than just good pay and benefits. The following list reveals some
of the key job satisfaction aspects cited by employees:

• Respect – Employees rate respectful treatment of all employees as the most important
factor in job satisfaction.

• Trust – Perhaps because of workplace uncertainty in the years following the Great
Recession, employees indicated that trust between themselves and senior management was
another highly important satisfaction factor.

• Security – If you’ve ever had to go to work each day wondering whether your job is
secure, you know it can cause a great deal of anxiety. Organizations can provide a sense of
security through honest communication and transparency about the company’s health and
long-term viability.

• Healthy Environment – Workplaces that are free from stress, morale issues, harassment
and discriminatory practices can create a positive and healthy environment for everyone.

• Career Path – No one wants a dead-end job. Employees are more likely to excel when
they can see an established upward path, with the opportunity to earn a higher wage and take
on greater responsibilities.

(b) Discussing how effective control can improve organizational performance

Organization pertain to factors for the organization as a whole. First is the problem of starts
and power differences. Low- power people may be reluctant to upper levels. High – power
people may not be pay attention or may think that low-status people have little to contribute.

Second, difference across departments in terms of needs and goals interfere with
communications. Each departments perceives problems in its own terms. The production
department is concerned with production efficiency whereas the marketing department's goal
is to get the customer in a hurry.
 Third, the absence of formal channels reduces communication effectiveness. Organizations
must provide adequate upward, downward, and horizontal communication in the form of
employed surveys, open-door policies, news-letters, memos, task forces, and liaison personnel.
Without these formal channels, the organization cannot communicate as a whole.

Fourth, the communication flow may not fit the team's or organization's task. If a centralized
communication structure is used for non-routine tasks, there will not be enough information
circulated to solve problems. The organization, department, or team is most efficient when the
amount of communication flowing among employees fits the task.

A final problem is poor coordination, so that different parts of the organization are working in
isolation without knowing and understanding what other parts are doing. Top executive are out
of touch with lower levels, or departments and divisions are poorly coordinated so that people
do not understand how the system works together as a whole.

Organization Actions

The most important things for the organization are to create a climate of trust and openness.
Open communication and dialogue can encourage communicating honestly with one another.
Subordinates will feel free to transmit negative as well as positive messages without fear.

Second, managers should develop and use formal information channels in all directions.

Third, managers should encourage the use of multiple channels, including both formal and
informal communications. Multiple communication channel include written directives, face to
face discussion and, MBWA.

Fourth, the structure should fit communication needs. A system of organizational feedback
and learning can help to overcome problem of poor coordination, as well.

Motivation is very important for the organization. When motivate them from emotional and
physical depression is very important things.

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