February 16, 2022

1. Autocratic Model: The basis of this model is the power of the boss. Max Weber defined, power as, ―the probability that one actor, within a social relationship, will be in a position to carry out his own will despite resistance. Walternord defined power as, ―the ability to influence flow of available energy and resources towards certain goals as opposed to other goals. Power is assumed to be exercised only when these goals are at-least partially in conflict with each other. The essential features of this model are as follows: Organizations with an autocratic environment are authority oriented. This authority is delegated by the right of command over the people to whom it applies. The management believes that it is the best judge to determine what is better for the health of both the organisation and its participants and that the employees‘ obligation is to follow orders. It assumes that the employees have to be directed, persuaded and pushed into performance. Management does the thinking and employees obey the orders. This view of managing organisations has been developed by D. McGregor in his theory X. This conventional view leads to tight control of employees at work. Under autocratic model, the employee‘s orientation is obedience to the boss; they need not be respectful to him. The bosses have absolute power to hire fire and perspire employees. The employees depend upon the boss and are paid minimum wages for minimum performance. This theory of scientific management was developed by F.W. Taylor as the conventional view of management. The employees sometimes give minimum performance, though reluctantly because they have to satisfy the subsistence needs of themselves and their families. Some employees give higher performance because of a drive to overcome challenges. According to the research of David C. McClelland of Harvard University, ―some people like to work under strong authority because they feel that their boss is a natural born leader. The autocratic model has been successful in some situations where the workers are actually lazy and have a tendency to shirk work. It is also required in the situation? where the work to be done is time bound. The threat generally used by the managers is that the reward or wages will be withheld if the workers do not obey them. The leadership in an autocratic model is negative because the employees are uninformed, insecure and afraid. Nowadays, this model is not applicable in strict sense because there are minimum wages laws in most of the countries. Thus, the managers cannot threaten to cut down the wages or rewards of the workers. Moreover, the workers are educated and organised, thus they cannot be dictated to by the managers all the time. 2. The Custodial Model: To overcome the shortcomings of the Autocratic model, the custodial model came into existence. The insecurity and frustration felt by the workers under the autocratic model sometimes led to aggression towards the boss and their families. To dispel this feeling of insecurity and frustration, the need was felt to develop a model which will improve the employer-employee relations. The custodial model was used by the progressive managers. Some of the important features of this model are as explained below: 1. The success of the Custodial Model depends upon the economic resources because this model emphasizes the economic rewards and benefits. Since employee‘s physiological needs are already met the employer looks to security needs as a motivating force. 2. The employees under Custodial Model depend upon organisation rather than their boss. If the organisation has got good welfare and development programmes for the employees, they cannot afford to leave the organisation. 3. Under this model, the employees are satisfied and happy and they are not strongly motivated. So they give only passive cooperation. They do not work more vigorously than under the autocratic approach. 4. The main benefit of this model is that it brings security and satisfaction to the employees. 5. The difficulty, with this model is that it depends upon material rewards only to motivate the employees. But the workers have their psychological needs also. Due to the drawbacks of this method, a search began to find out the best way to motivate the workers so that they produce with their full capacity and capabilities. 3. The Supportive Model: The supportive model has originated from the ‗Principles of Supportive Relationships.‖ According to Rensis Likert, ―The leadership and other processes of the organisation must be such as to ensure a maximum probability that in all interactions and all relationships with the organisation, each member will, in the light of his background, values and expectations, view the experience as supportive, and one which builds and maintains his sense of personal worth and importance. The main features of this model are as follows: 1) The Supportive Model depends on leadership instead of power or money. Management, with the help of leadership try to create a favourable organisational climate in which the employees are helped to grow to the greater capacities and achieve things of which they have the capability, in compliance with the goals of the organisation. 2) The leader assumes that the worker will take responsibility, make their contributions and improve themselves, if given a chance. It is assumed that the workers are not lazy and work 3) shirkers by nature. If properly motivated, they can be self-directed and creative to the organisation. 4) It should be the orientation of the management to support the employees‘ job performance, rather than simply giving them payments and benefits as in the custodial approach. 5) This model takes care of the psychological needs of the employees in addition to their subsistence and security needs. It is similar to McGregor‘s theory and the human resources approach to people. 6) This model is an improvement over the earlier two models. Supportive behaviour helps in creating friendly superior-subordinate interaction with a high degree of confidence and trust. This model has been found to be effective in affluent countries where the workers are more

Organizations operate their functional activities by some elements, which affect organizations. 1. People: People make up the internal social system in the organization. They consist of individuals and groups. Groups may be large or small, formal and informal, official or unofficial. Human organization changes every day. People are living, thinking and feeling beings that created the organization and try to achieve the objectives and goals. 2. Structure: Structure defines the formal relationship and use of people in the organization. Different people in an organization are given different roles and they have certain relationship with others. Those people have to be related in some structural way so that their work can be effectively coordinated. 3. Technology: The technology imparts the physical and economic conditions within which people work. With their bear hands people can do nothing. So they are given assistance of building, machines, tools, processes and resources. The nature of technology depends very much on the nature of the organization, influences the work or working conditions. 4. Social System (Environment): Social system provide external environment within which organization operates. A single organization cannot exist alone. It is a part of the whole. A single organization cannot give everything and therefore there are many other organizations. All these organizations influence each other

There are some goals of organizational behavior which are as follows: Describe: The first goal is to describe, systematically how people behave under a variety of conditions. Achieving this goal allows managers to communicate about human behavior at work using a common language. Understand: A second goal is to understand any people behave as they do. The managers would be frustrated if they could talk about behavior of their employees, but not understand the reasons behind those actions. Predict: The managers would have capacity to predict which employees might be dedicated and productive or which ones might have absent, cause problem. And thus the managers could take preventive actions. Control: The final goal of OB is to control and develop some human activity at work. Since managers are held responsible for performance outcome, they are vitally interested in being able to make an impact on employee behavior, skill development, team effort, and productivity. Managers need to be able to improve results through the actions they and their employees take, and organizational behavior can aid them in their pursuit of this goal.

Managing human resources refers to the functions that a manager performs relative to the organization’s employees. Managing human resources includes, but is not limited to: planning and allocating resources, providing direction, vision, and goals, developing an environment in which employees choose motivation and contribution, supplying or asking for the metrics that tell people how successfully they are performing, offering opportunities for both formal and informal development, coaching successful contribution and performance development, setting an example in work ethics, treatment of people, and empowerment worthy of being emulated by others, leading organization efforts to listen to and serve customers, managing the performance management system, Challenging the employees to maintain momentum, and Removing obstacles that impede the employee’s progress

1. Genetics Long before Charles Darwin published his book On the Origin of Species in 1859, animal breeders knew that patterns of behavior are somehow influenced by inheritance from parents. Studies of identical twins as compared to less closely related human beings, and of children brought up in adoptive homes, have helped scientists understand the influence of genetics on human behavior. The study of human behaviour genetics is still developing steadily with new methods such as genome-wide association studies. 2. Social norms Social norms, the often-unspoken rules of a group, shape not just our behaviours but also our attitudes. An individual’s behavior varies depending on the group(s) they are a part of, a characteristic of society that allows to norms heavily impact society. Without social norms, human society would not function as it currently does; humans would have to be more abstract in their behaviour, as there would not be a pre-tested ‘normal’ standardised lifestyle, and individuals would have to make many more choices for themselves. The institutionalisation of norms is, however, inherent in human society perhaps as a direct result of the desire to be accepted by others, which leads humans to manipulate their own behaviour in order to ‘fit in’ with others. Depending on their nature and upon one’s perspective, norms can impact different sections of society both positively (e.g. eating, dressing warm in the winter) and negatively (e.g. racism, drug use). 3. Creativity Creativity is assumed to be present within every individual. Without creative minds, we would not live in a modern world like today. Creativity pushes people past their comfort zone. For example, the Wright Brother’s invention of the first practical fixed-wing aircraft. The aircraft first took flight in 1903, and fifty years later the first passenger jet airliner was introduced. Creativity is what defines human beings. Creativity has kept people alive during harsh conditions, and it has also made certain individuals wealthy. We use creativity in our daily lives as well, such as finding a shortcut to a destination. 4. Core faith and culture Another important aspect of human behavior is their ―core faith‖. This faith can be manifested in the forms of religion, philosophy, culture, and/or personal belief and often affects the way a person can behave. 80% of the United States public claims some sort of belief in a higher power, which makes religion a large importance in society. It is only natural for something that plays such a large role in society to have an effect on human behavior. Morals are another factor of core faith that affects the way a person behaves. Emotions connected to morals including shame, pride, and discomfort and these can change the way a person acts. Most importantly, shame and guilt have a large impact on behavior. Lastly, culture highly affects human behavior. The beliefs of certain cultures are taught to children from such a young age that they are greatly affected as they grow up. These beliefs are taken into consideration throughout daily life, which leads to people from different cultures acting differently. These differences are able to alter the way different cultures and areas of the world interact and act. 5. Attitude An attitude is an expression of favor or disfavor toward a person, place, thing, or event. The interesting thing about an attitude and human beings is that it alters between each individual. Everyone has a different attitude towards different things. A main factor that determines attitude is likes and dislikes. The more one likes something or someone the more one is willing to open up and accept what they have to offer. When one doesn’t like something, one is more likely to get defensive and shut down. An example of how one’s attitude affects one’s human behavior could be as simple as taking a child to the park or to the doctor. Children know they have fun at the park so their attitude becomes willing and positive, but when a doctor is mentioned, they shut down and become upset with the thought of pain. Attitudes can sculpt personalities and the way people view who we are. People with similar attitudes tend to stick together as interests and hobbies are common. This does not mean that people with attitudes do not interact, because they do. What it means is that specific attitudes can bring people together (e.g., religious groups). Attitudes have a lot to do with the mind which highly relates to human behavior. The way a human behaves depends a lot on how they look at the situation and what they expect to gain from it positive attitudes are better than negative ones as negativity can bring on negative emotions that most of the time can be avoided. It is up to humans to make sure their attitudes positively reflect the behaviors they want to show. This can be done by assessing their attitudes and properly presenting them in society.

Human behavior refers to the array of every physical action and observable emotion associated with individuals, as well as the human race as a whole. While specific traits of one’s personality and temperament may be more consistent, other behaviors will change as one moves from birth through adulthood. In addition to being dictated by age and genetics, behavior, driven in part by thoughts and feelings, is an insight into individual psyche, revealing among other things attitudes and values. Social behavior, a subset of human behavior, study the considerable influence of social interaction and culture. Additional influences include ethics, authority, rapport, hypnosis, persuasion and coercion. The behavior of humans (and other organisms or even mechanisms) falls within a range with some behavior being common, some unusual, some acceptable, and some outside acceptable limits. In sociology, behavior in general includes actions having no meaning, being not directed at other people, and thus all basic human actions. Behavior in this general sense should not be mistaken with social behavior, which is a more advanced social action, specifically directed at other people. The acceptability of behavior depends heavily upon social norms and is regulated by various means of social control. Human behavior is studied by the specialized academic disciplines of psychiatry, psychology, social work, sociology, economics, and anthropology. Human behavior is experienced throughout an individual’s entire lifetime. It includes the way they act based on different factors such as genetics, social norms, core faith, and attitude. Behavior is impacted by certain traits each individual has. The traits vary from person to person and can produce different actions or behavior from each person. Social norms also impact behavior. Due to the inherently conformist nature of human society in general, humans are pressured into following certain rules and displaying certain behaviors in society, which conditions the way people behave. Different behaviors are deemed to be either acceptable or unacceptable in different societies and cultures. Core faith can be perceived through the religion and philosophy of that individual. It shapes the way a person thinks and this in turn results in different human behaviors. Attitude can be defined as “the degree to which the person has a favorable or unfavorable evaluation of the behavior in question.” One’s attitude is essentially a reflection of the behavior he or she will portray in specific situations. Thus, human behavior is greatly influenced by the attitudes we use on a daily basis.

There are two assumptions as to nature of organization. Social Systems: Organizations are social systems and governed by social and psychological laws. They have social roles and status. Their behavior influenced by their group’s individual drives. Organization environment in a social system is dynamic. All parts of the system are interdependent. Mutual interest: In order to develop the organization behavior mutually of interest organizations and people is necessary. Organizations need people and people in tern need organizations. People satisfy their needs through organization and organization accomplish their goal through people. Ethics: In order to attract and retain valuable employees in an era in which good workers are constantly required away, ethical treatment is necessary. To succeed, organization must treat employees in an ethical fashion. Every Company is required to establish codes of ethics, publicized statements of ethical values, provided ethics training, rewarded employees for notable ethical behavior, publicized positive role models, and set up internal procedures to handle misconduct.

In every field of social science, or even physical science, has a philosophical foundation of basic concepts that guide its development. There are some certain philosophical concepts in organizational behavior also. The concepts are 1. Individual differences: Every individual in the world is different from others. This idea is supported by science. Each person is different from all others, probably in million ways, just as each persons DNA profile is different. The idea of individual difference comes originally from psychology. From the day of birth, each person is unique, and individual experiences after birth tend to make people even more different. 2. Perception: People’s perceptions are also differ when they see an object. Two people can differently present a same object. And this is occurring for their experiences. A person always organizes and interprets what he sees according to his lifetime of experience and accumulated value. Employees also see work differently for differ in their personalities, needs, demographics factors, past experiences and social surrounding. 3. A whole person: An employee’s personal life is not detached from his working life. As an example, A women who attend the office at 8:30 AM is always anxious for her children’s school time (if her children able to attend the school or not). As a result, its impact falls on her concentration that means her working life. For this reason, we cannot separate it. So manager should treat an employee as a whole person. 4. Motivated behavior: An employee has so many needs inside him. So, they want to fulfill those needs. That’s why; they had to perform well in the organization. Some motivations are needed to enrich the quality of work. A path toward increased need fulfillment is the better way of enriches the quality of work. 5. Desire for involvement: Every employee is actively seeking opportunities at work to involve in decision-making problems. They hunger for the chance to share what they know and to learn from the experience. So, organization should provide them a chance to express their opinions, ideas and suggestion for decision-making problem. A meaningful involvement can bring mutual benefit for both parties. 6. Value of the person: An employee wants to be treated separately from other factor of production (land, capital, labor). They refuse to accept the old idea that they are simply treated as economic tools because they are best creation of almighty Allah. For this reason, they want to be treated with carrying respect, dignity and other things from their employers and society.

The organization’s base rests on management’s philosophy, values, vision and goals. This in turn drives the organizational culture which is composed of the formal organization, informal organization, and the social environment. The culture determines the type of leadership, communication, and group dynamics within the organization. The workers perceive this as the quality of work life which directs their degree of motivation. The final outcomes are performance, individual satisfaction, and personal growth and development. All these elements combine to build the model or framework that the organization operates from The discipline of Organizational Behavior encompasses three broad areas: 1. The Behavior of People in Organizations OB draws on psychology, anthropology and sociology to gain insight into the behavior of individuals in organizational settings. Topics studied include:  perception, cognition, learning personality and motivation leadership, power, conformity, communication decision making 2. Organizational Structure Organizations consist of people organized to achieve organizational goals (like manufacture cars). One of the most important strategic elements of an organization is its structure: how the people are arranged so as to produce what the organization produces. Topics include: Task identification and division of labor Departmentation Coordination and control mechanisms Processes and procedures, such as promotion, hiring policies, compensation Organizational form (e.g., bureaucracy) Size Centralization of decision-making The relationships among these variables 3. Behavior of organizations Just as we can study the interactions of individuals with the organization and with each other, we can also study the interactions of organizations with their environments, which include individual citizens and other organizations including the government. Some of the behaviors of organizations that we are interested in include: Adoption of new practices such as Downsizing  Team-based structure  Domestic partner benefits (e.g., partners of gay employees get full medical coverage  Re-engineering  Environmental protection (“green” practices) Adaptation to changing conditions  global competition  increasing pace of technological change  changing social structure (e.g., status of women) As part of these investigations, we study such things as: The position or organizations in the economic food chain (organization A sells to organization B, which sells to organization C and so on): an economy is like an ecosystem, and an organizations position in the economy is their ecological niche the influence of stakeholders on organizations Features of Organizational Behavior Organizational Behavior is the study and application of knowledge about how people, individuals, and groups act in organizations. It does this by taking a system approach. That is, it interprets people-organization relationships in terms of the whole person, whole group, the whole organization, and whole social system. Its purpose is to build better relationships by achieving human objectives, organizational objectives, and social objectives. Organizational Behavior is; A Separate Field of Study and not a Discipline Only. An Interdisciplinary Approach. An Applied Science. A Normative Science. A Humanistic and Optimistic Approach. A Total System Approach. These 6 features or characteristics shows the nature of Organizational Behavior that is the study of understanding and control behavior within the organization. Objectives of Organizational Behavior The organizations in which people work have an effect on their thoughts, feelings, and actions. These thoughts, feelings, and actions, in turn, affect the organization itself. Organizational behavior studies the mechanisms governing these interactions, seeking to identify and foster behaviors conducive to the survival and effectiveness of the organization. Job Satisfaction. Finding the Right People. Organizational Culture. Leadership and Conflict Resolution. Understanding the Employees Better. Understand how to Develop Good Leaders. Develop a Good Team. Higher Productivity. These 8 objectives of organizational behavior show that OB is concerned with people within the organization, how they are interacting, what is the level of their satisfaction, the level of motivation, and find ways to improve it in a way the yields most productivity. Limitations of Organizational Behavior Recognize the limitations of organizational behavior. Organizational Behavior will not abolish conflict and frustration; it can only reduce them. It is a way to improve, not an absolute answer to problems. Furthermore, it is but part of the whole cloth of an organization. We can discuss organizational behavior as a separate subject, but to apply it, we must tie it to the whole reality. Improved organizational behavior will not solve unemployment. Organizational Behavior will not make up for our deficiencies, cannot substitute for poor planning, inept organizing, or inadequate controls. It is only one of the many systems operating within a larger social system. Major limitations of OB are; Behavioral Bias. The Law of Diminishing Returns. Unethical Manipulation of People

Organizational Behavior (OB) is the study and application of knowledge about how people, individuals, and groups act in organizations. It does this by taking a system approach. That is, it interprets people-organization relationships in terms of the whole person, whole group, whole organization, and whole social system. Its purpose is to build better relationships by achieving human objectives, organizational objectives, and social objectives

Organizational theory consists of approaches to organizational analysis. Theories of organizations include rational system perspective, division of labor, bureaucratic theory, and contingency theory. In a rational organization system, there are two significant parts: Specificity of Goals and Formalization. The division of labor is the specialization of individual labor roles, associated with increasing output and trade. Modernization theorist Frank Dobbin states “modern institutions are transparently purposive and that we are in the midst an evolutionary progression towards more efficient forms”. Max Weber’s conception of bureaucracy is characterized by the presence of impersonal positions that are earned and not inherited, rule-governed decision making, professionalism, chain of command, defined responsibility, and bounded authority. The contingency theory holds that an organization must try to maximize performance by minimizing the effects of varying environmental and internal constraints. Dwight Waldo noted in a review of field work in 1978: “Organization theory is characterized by vogues, heterogeneity, claims and counterclaims“, and even greater differentiation in theory and practice have developed since then. Organization theory certainly cannot be described as an orderly progression of ideas, or a unified body of knowledge in which each development builds carefully on and extends the one before it. Rather, developments in theory and prescriptions for practice show disagreement about the purposes and uses of a theory of organization, the issues to which it should address itself (such as supervisory style and organizational culture), and the concepts and variables that should enter into such a theory.

Points that would help us to understand the importance of business environment are: 1. Enabling the identification of opportunities and getting the first mover advantage 2. Helping in the identification of threats and early warning signals or Radar effect 3. Tapping useful resources 4. Coping with the rapid changes 5. Assisting in planning and policy formulation 6. Improvement in performance 7. Image building. Each business firm has to exist, survive and grow in relation to the various forces of the business environment. Since business firms have no control on these forces, it has to adapt itself according to these forces. 1. Enabling the identification of opportunities and getting the first mover advantage: Business environment provides many opportunities to the firms to improve their performance. The firms which are able to scan these opportunities at an early stage get maximum benefit and can leave their competitors behind. For example, scientific research has come out with an energy efficient light bulb which lasts at least 20 times more than a normal bulb. General Electric and Phillips had identified this discovery and are coming up with their new bulbs. 2. Helping in the identification of threats and early warning signals or Radar effect: Environment understanding helps an enterprise to recognize qualitative information in advance, which can be used to prepare it for facing likely challenges. For example, if any new multinational company is entering the Indian market, the manager of an Indian firm dealing with same product as that of the multinational company, should take it as a warning signal. He should handle this threat proactively & well ahead of the launch of MNC‘s product, take measures like improving the quality of his product, heavy advertisement etc. 3. Tapping useful resources: Business requires many resources like raw materials, tools, equipments, finance, labour etc. for performing business activities. These resources are known as inputs. Business environment provides all these inputs to the business firms for carrying out their activities and also expects something in return. The firms supply their output to the environment, for example goods and services to the customer, payment to investors on account of money invested by them, payment of wages to the workers and so on. Thus, we can say that business firms depend fully on the environment, for supplying inputs and for receiving their outputs. 4. Coping with the rapid changes: Business environment is very dynamic. One can see changes like new technologies, fragmented markets, more demanding customers, heavy global competition and so on. Thus, in order to efficiently cope with these changes, managers must understand the environment and should adopt appropriate courses of action at the right time. It helps management become more sensitive to ever changing needs of customers. As a result, they are able to respond to such changes effectively. 5. Assisting in planning and policy formulation: Business environment brings both threats and opportunities to a business. Hence, understanding of environment helps the management in future planning and decision making. For example, competition increases with the entry of new firms in the market The management has to draft new plans and policies to deal with new competitors. Environmental awareness provides intellectual stimulation to planners in their decision making. They can make changes in their plans efficiently and effectively. 6. Improvement in performance: Environmental awareness provides a continuing, broad based education for management. Objective qualitative information generated by such understanding provides a strong basis for strategic thinking. The enterprises that monitor their environment closely can adopt suitable business practices not only to improve their performance but also to become leaders in the industry. 7. Image building: Environmental understanding generates a feeling among public that business is sensitive and responsive to its environment. This helps in building the image or reputation of the firms. The understanding of its business environment helps an organization to make realistic plans and ensure their effective implementation. It also helps the business enterprise in identification of opportunities and threats. Consequently, such an enterprise is likely to succeed in achieving its goals smoothly & consistently