Understanding Human Behavior in Organizations

HUMAN BEHAVIOR IN ORGANIZATION
ALBERT S. DELA CRUZ
1
FUNDAMENTALS OF HUMAN
BEHAVIOR
- A SUDDEN CHANGE IN ATTITUDE
- TECHNOLOGY FAILS BECAUSE OF PEOPLE
FAILURE
- MANY OF OUR MOST CRITICAL PROBLEMS ARE
NOT IN THE WORLD OF THINGS, BUT IN THE
WORLD OF PEOPLE.
- I MAY BE CRAZY BUT I AM NOT AS STUPID AS
YOU ARE.
2
NATURE AND SCOPE OF HUMAN
BEHAVIOR
Definition:
- Any act of an individual person which is considered human
behavior.
- A reflection of his/her thoughts, feelings, emotions,
sentiments whether conscious or not.
- It mirrors his/her needs, values motivation, aspirations,
conflicts and state of life
3
Thoughts
Creator
Feelings
Emotions
Sentiments
Needs
Values
Motivation
Aspirations
-ALL HUMAN ACTIVITIES Conflicts
4
State of life
Behavior
-consists of all human activities

-Universal and is at the core of:
- Leadership
- Followership
- Decision making
- Communication
5
NATURE AND SCOPE OF HUMAN BEHAVIOR
UNIVERSAL IN FUNCTIONS OF MGT

1. LEADERSHIP 1. PLANNING
2. FOLLOWERSHIP 2. ORGANIZING
3. COMMUNICATION
BEHAVIOR 3. MOTIVATING
4. DECISION MAKING 4. COMMUNICATING
5. PROCESSES IN THE 5. LEADING
ORGANIZATION
6. CONTROLLING
6. CULTURE
It is in the implementation and practice that differ

from group to group, from one country to another.
Ex. Chinese & American 6
Some Key Behavioral Science
Assumptions, Concepts, and Principles
• human act & acts of man
• Human act
• an act with free will
• responsibility
• choice
7
Some Key Behavioral Science
Assumptions, Concepts, and Principles
• human act & acts of man
• acts of man
• there is a force
• risk
• no choice
8
ASSUMPTIONS
 Every person is significantly different.
 Every person is constantly active, goal oriented.
 Every person is dynamic.
 The characteristics of an organization influence the behavior
of the entire organization and the behavior of the individuals.
 Behavior cannot be predicted.
 There are no simple cookbook formulas for working with
people. No one best answer, no ideal organization, neither an
ideal person.
9
CONCEPTS
 All behavior are learned.
 Human beings adapt.
PRINCIPLES
 Law of effect.
 Stimuli are those forces w/c impact the sensory organs
of our five sensory input channels.
 Behavior is caused but its causality is uncertain.
 Classical conditioning is a powerful technique.
 There are no two individuals who are alike in all
dimensions.
10
Reasons for Studying Human
Behavior
• The need to understand the behavior of others.
• to anticipate and predict how others may act makes
events easier and smoother.
• anticipation is pro-active. (preventive)
• lack on sensibility and perceptiveness creates
problems. (instead of reactions)
• understanding of the actions of people.
• is certainly indispensable in the formulation of laws,
rules, etc…
11
Behavior
• the need for conflict resolution and peace-making
remain central in society’s well-being.
• gives importance to science and technology.
• business will not thrive w/o the study of people’s wants
and desires.
• can increase productivity for it provides information and
knowledge as bases for improving performance.
12
Behavior
• we don’t only study the personality of others but also
our own personality.
• the need for and usefulness of understanding and
appreciating the values that underlie or are reflected by
our behavior brings out distinctions b/n right and wrong,
good and bad, proper and improper, useful and useful
behavior.
13
Behavior
• underlies the quality of one’s actions:
• Relationships
• Motivation
• Self-improvement
• Aspirations
• Social usefulness
• Responsibility
14
Models of Human Behavior
in Organization
Three-Level Model
Milton proposes a model of studying human behavior
at three levels: individual, group and organization. It can also
be called the “I-G-O Model.”
Third The Organization
Level (Doctoral Program)
Second The Group

Level (Masteral Program)
First The Individual

Level (Undergraduate
Program)
DIMENSIONS OF STUDY AND THEIR

CORRESPONDING LEVELS OF ANALYSIS
Interdisciplinary Model
• Human behavior in organization is inter-and-multi-
disciplinary, Various theories are integrated to contribute to
it’s better understanding.
• At the individual level, psychology provides knowledge of
perception, personality, motivation, learning,
• Physiology and anatomy gives information and principles
on the body and how it works.
• The science of sociology offers insights into roles, norms,
authority, power, influence, status.
• Culture and its artifacts are the main contribution of
anthropology in the study of behavior in the organization.
Interdisciplinary Model
HUMAN BEHAVIOR
INDIVIDUAL GROUP ORGANIZATION

Psychology Sociology Anthropology
and other and other and other
sciences like Sciences Sciences like
Physiology, Economics,
Like Social
Anatomy Business, Law,
Work,
Medicine
Education
VARIOUS SCIENCES THAT CONTRIBUTE TO THE

UNDERSTANDING OF HUMAN BEHAVIOR
Developmental Model
People grow and move on to higher levels of

resourcefulness, creativity, competency and self-
realization through proper maintenance, recognition and
development programs. Kieth and Davis call this “human
resources (supportive) approach.
These basic and potent needs are recognized and

fulfilled by the organization which considers them as “
the central resource in any organization and any society.
19
Developmental Model
FUNDS
PHILISOPHY
TECHNOLOGY VALUES
PEOPLE
FACILITIES STRUCTURE
Significant Components of an Organization

20
Systems Model
A social system is a complex and dynamic set of

relationships among its actors interacting with one
another. An organization is a social system consisting of
various parts at its subsystems. The systems theory
posits that these parts are interdependent and
interrelated with each other.
Ex. The marketing department is in high

interdependence with the production department and
vice – versa. Their staffs are, therefore, expected to
interface more frequently than those between the public
relations and manufacturing departments.
21
OPEN SOCIAL SYSTEMS MODEL
Community & Environment
Strategic
Subsystem
Administrative Operating
Subsystem Subsystem
ORGANIZATION
22
Contingency
 Is contingent on variables prevailing particularly where

problems are highly people-related. Ex. Academic vs Group of
Workers.
 Every problem must be studied and analyzed in light of
complex factors that may be highly interrelated with each
other.
 The output of a certain organization may vary depending
on the inputs. Ex. Student into school is an input, when
s/he graduates becomes an output.
23
SYSTEM AFFECTED BY FACTORS IN THE
PRODUCTION PROCESS
INPUTS PROCESS OUTPUT
Goals Put in Transformation Process Goods Measured

various and
Funds Technology Conflicts Services
quantity evaluated
People and Leadership Relationships Individual in quantity
quality. and quality
Materials Communication Interaction Energy
Time Power Influence Motivation
Information Authority Information
24
UNDERSTANDING
ORGANIZATIONAL BEHAVIOR
• Organization
• is a formal structure of planned
coordination, involving two or more people,
in order to achieve a common goal.
• characterized by authority relationships
and some degree of division of labor.
25
UNDERSTANDING
• Organizational Behavior
• is the systematic study and careful
application of knowledge about how
people – as individual and as groups – act
within organizations. (Newstrom)
• ex. A friend catches a cold
26
UNDERSTANDING
• Five Levels of Analysis
1. Individuals
2. Interpersonal
3. Groups
4. Intergroups
5. Whole Systems
27
UNDERSTANDING
• Goals of Organizational Behavior
• Four goals of OB
1. Describe
2. Understand human behavior
at work
3. Predict
4. Control
28
UNDERSTANDING
• Key forces affecting Organizational Behavior
People
• Individual
• Groups
Environment Structure
• Government Organizational Behavior
• Jobs
• Competition
• Relationships
• Societal Pressures
Technology
• Machinery
• Computer Hardware and Software
29
UNDERSTANDING
• Fundamental Concepts of Organizational Behavior

• Every field of social science has a
philosophical foundation of basic concepts
• Ex. Debit Credit
• Ex. Elements of nature are uniform
(gravity)
30
UNDERSTANDING
• Fundamental Concepts of Organizational Behavior
The Nature of People The Nature of Organizations

•Individual Differences •Social Systems
•Perception •Mutual Interest
•A whole person •Ethics
•Motivated Behavior
•Desire for involvement
•Value of the Person
31
 INDIVIDUAL DIFFERENCES AND PERSONALITY
 The great delight of being part of human race is that we are all different.
 Trying to understand some of these differences can help us to work better
with each other in the following, and other, ways.
 We learn to communicate more effectively and so understand better what
others are doing.
 We have different personalities.
 Psychology can help us understand why people are different and why
they have different personalities.
 NATURE AND NURTURE

 inherited characteristics (nature)
 upbringing (nurture)
 if our ability to learn language, acquire new skills and adopt different
attitudes is all laid down by our inherited characteristics, the how we grow
up and whom we work with will not affect it.
32
 Different models of why people differ
 Psychoanalysis
 Theories of Sigmund Freud
 Personality consisted of three separate parts
 “ego” - individual drives that focus a person’s nature.
 “superego”- learned
 “id”- personality consisting of the basic instincts that
make us going and become involved with our
surroundings.
 Freud argues that personality develops through a series of

traumatic experiences.
 early period of breastfeeding.
 the anger felt by children over the external control implicit in
toilet training.
 disapproval demonstrated by society of childhood sexuality.
 the difficulties for all of us in learning to control anger and
aggression in socially acceptable ways.
 Ex. Freudian Slip- saying something with a hidden
meaning instead of what we intended.
 Ex. Introvert and extrovert by Carl Jung
33
 Behaviourism
 B.F. Skinner
We learn through our experiences and that
these experiences affect who and what we
become.
Reinforcement (rewards)
As that which the person will work for.
Stimulus evokes a response, where the
response leads to a reinforcing reaction
the individual is more likely to respond in
that way in the future.
34
 Humanistic Psychology
 The central belief that each of us has within ourselves the capacity to develop in a healthy and
creative way.
 The emphasis is on becoming an independent, mature, adult who can take responsibility for our
own actions.
 Maslow’s Hierarchy of Needs
 C.R. Rogers has described stages for adults in becoming fully functional person.
 the need to be open to experience and move away from defensiveness.
 is a tendency to live each moment fully, and now, rather than relating everything to the
past.
 increasingly the person trusts themselves more, physically, emotionally, and mentally.
 the ideal person takes responsibility for themselves and their actions.
35
Origin of Contemporary Management Thought
1. The Economic Man
Frederick Taylor & Scientific Management
- The Father of Scientific Management
- US Steel Industry
- His writings was published in 1911
- Called attention to the low productivity of

workers in the US steel industry
36
1. The Economic Man
- Reasons
a. Restriction of output by workers.
b. Lack of Standardization of work methods
by management
c. The absence of systematic methods for

defining output standards for different
jobs.
d. Ineffective incentive systems to

reward workers for greater
productivity.
37
1. The Economic Man
- In Scientific Management Taylor wrote:

“ And yet throughout the industrial world, a
large part of the organization of employers as well as
employees, is for war rather than peace, and that
perhaps the majority on either side do not believe
that it is possible to arrange their mutual relations
that their interest become identical….
- Called for a mental revolution on the part of both

management and labor based on shared perception
of the community of their interests.
38
1. The Economic Man
- Advocated “high wage but low labor cost”
* where labor could be given high wages

but where production costs would remain
low because of high labor productivity.
- Tools for standard methodologies

* methods analysis
* time and motion study
* functional foremanship
* piece rate system
39
2. The Social Person
The Human Relations Movement
- Elton Mayo and Fritz Roethlisberger

- Associated with the famous Hawthorne
Experiment in the Western Electric
Company (1927-1932)
* To set out empirically determine the
optimum level of illumination.
- The result of the experiment in a very different

way.
- The increase in productivity as mainly a response
of the workers to the psychological, not
the physical environment.
40
- The workers enjoyed their sense of importance

given by the management
- The most important factors are social and

psychological.
* Giving workers sense of importance
* Overcoming worker suspicions about

management
* The influence of formal groups were

potentially more important variables in
improving worker performance that the work
methods and other physical factors in
the work environment.
41
- Scientific Management views a person as an

Economic Person while Human Relations
views a person as a Social Person
- Gave way for the use of Behavioral Sciences on

the problems of Management
42
3. The Complex Person
- the theory on the complex person was posted
by Abraham H. Maslow
- that person’s needs fall into a hierarchy of
relative prepotency.
Self-Realization
Esteem
Social
Safety & Security

Physiological
MASLOW’S HIERARCHY OF NEEDS 43

4. The Motivated Person
- Frederick Herzberg found out from its

Pittsburgh studies that individual worker have two
different categories of needs that are essentially
independent of each other but affect behavior in
different ways.
- Hygiene factors
- produce no real growth in the worker’s
motivation and output, but their absence makes
the person dissatisfied.
- Satisfying factors
- act primarily as motivators.
- their absence rarely leads to dissatisfaction.
44
4. The Motivated Person
Relating to
Relating to
Environment
Hygiene Factors Satisfying Factors
Job itself
Around the Job
Policies & Administration Achievement

Supervision Recognition for Accomplishment
Working Conditions Challenging Work
Interpersonal Relations Increased Responsibility
Money Growth & development
Security
HERZBERG’S TWO-FACTOR THEORY OF MOTIVATION

45
5. The Three-Tiered Satisfied Person
- Clayton P. Aldelfer
- Needs (ERG)
Existence Relatedness Growth
6. The Achiever
- David C. Maclelland
- people with high need to achieve do achieve more
than those with low need and with no need at all.
- the person demonstrates a high need to achieve if
they can influence the outcome and prefer to work on
a problem rather than leave the outcome to chance.
- High-task managers-low relationships behavior
- do not always make the best managers. 46
6. The Achiever
- David C. Maclelland
- people with high need to achieve do achieve more
than those with low need and with no need at all.
- the person demonstrates a high need to achieve if
they can influence the outcome and prefer to work on
a problem rather than leave the outcome to chance.
- High-task managers-low relationships behavior
- do not always make the best managers.
- Three basic types of motivating needs:

1. Need for power
2. Need for affiliation
3. Need for achievement
47
7. The Expectant Person
- Victor Harold Vroom, 1964

1. Individuals have preferences for various outcomes
(goals)
2. Individuals have expectancies about the likelihood
that an action on their part will lead to satisfactory
performance.
3. People have certain instrumentalities (probabilities)
about performance that will lead to nthe attainment of
desirable outcomes.
4. The action a person chooses to take is determined
by the expectancies, instrumentalities and preferences
that he/she has at the time.
48
Perceived
Ability Equitable
Reward
Extrinsic
Expectancies
Outcomes
Preferences Motivation Effort Performance Satisfaction
Intrinsic
Instrumentalities outcomes
EXPECTANCY MODEL
49
8. The Managed Person
 Theory X
 The average human being has an inherent dislike of work and will avoid it if she
can.
 Because of the human characteristic dislike of work, most people must be
coerced, threatened with punishment, to get them to put forth adequate effort.
 The average human being prefers to be directed , wishes to avoid responsibility,
and has relatively little ambition, wants security above all.
 Theory Y
 The expenditure of physical and mental effort is as natural as play or rest.
 External control and the threat to punishment are not the only means of bringing
about effort towards organizational objectives. People with exercise self-direction
and self-control in the service of objectives to which they are committed.
 Commitment to objectives is a function of the rewards associated with their
achievement.
 The average human being learns, under proper conditions, not only to accept but
to seek responsibility.
 The capacity to exercise a relatively high degree of imagination, ingenuity and
creativity in the solution of organizational problems is widely, not narrowly,
distributed in the population.
 Under the condition of modern industrial life, the intellectual potentialities of the
average human being are only partially utilized.
50
8. The Learning-Reinforced Person
Behaviourism
- B.F. Skinner
We learn through our experiences
and that these experiences affect who and
what we become.
Reinforcement (rewards)
As that which the
person will work for.
Stimulus evokes a response, where the

response leads to a reinforcing reaction the
individual is more likely to respond in that
way in the future.
51
 The Nature of Organizations
 Three (3) Key Concepts
1. Social Systems
 Organizations are social systems
 Activitiesare governed by social laws as well as psychological laws
 Just as people have psychological needs, they also have social roles and status.
 Two types of social system
1. Formal (Official)
2. Informal
 Everything is related to everything else
 Provides a framework for analyzing oranizational behavior issues.
 Helps OB problems understandable & manageable
52
2. Mutual Interest
Organizations need people and people need organizations

Organization have a human purpose
They are formed and maintained on the basis of mutuality of interest
Makes sense in developing cooperation and assembling groups
53
 Mutual Interest
Employee Ethics Employee
Goals Goals
Superordinate Mutual Employee

goal of mutual accomplishment
Goals
interest of goals
Organizational
Employee
Goals
Goals
Mutual interest provides a superordinate goal – one that can be

attained only thru integrated efforts of individuals and their
employers
54
3. Ethics
 Is the use of moral principles and values to affect the behavior of individuals
and organizations with regard to choices between what is right or wrong
 Ex. Code of ethics, publicized statements of ethical values, provided ethics training,
rewarded employees for notable ethical behavior, publicized positive role models, set-
up procedures to handle misconduct.
55
 A MODEL OF ETHICAL BEHAVIOR
Ethics
 Study of moral issues and choices
 Ethical and unethical conduct is the product of a complex

combination of influences.
56
Neutralizing/enhancing factors
Internal Organizational Top Mgt team characteristics
influences
Ethical Codes Political/Legal
Organizational Culture Role Industry Culture
Organizational Size Expectations National Culture
Structure Environment
Perceived pressure for results
Corporate strategy Individual
*Personality
*Values Ethical
*Moral Principles behavior
*History of
reinforcement
External Organizational *Gender
Influences
Political/Legal
Industry Culture
National Culture
Environment
A model of ethical behavior in the workplace

57
A Decision Tree for Ethical Decisions Yes Do it.
Is it ethical?
(To answer, weigh the effect on customers,
employees, the community, the environment,
and suppliers against the benefit to the
Yes shareholders.
Does it maximize No Don’t do it.

Yes Shareholder value?
Yes Don’t do it.

Is the proposed
action legal? No
Would it be ethical
Not to take the action?
No Don’t do it. (To answer, weigh the harm or cost that
would be imposed on shareholders against
The costs or benefits to other stakeholders)
No Do it but disclose
The effect of the action
to shareholders
58
 Limitations of Organizational Behavior
Problems exist in OB’s nature and use

 Importance is the use of research to identify payoffs in the areas of
absenteeism, turnover, stress levels, and employee performance.
 Limitations:
 Will not abolish conflict and frustration; can only reduce them
 It is a way to improve, not an absolute answer to problems
59
Three (3) major limitations

1. Behavioral Bias
 may give narrow viewpoint that emphasizes satisfying employee experiences while
overlooking the broader system of the organization in relation to all its publics.
 To assume that the objective of OB is to create a satisfied workforce is a mistake, for that
goal will not automatically translate into new products and outstanding customer service.
60

1. Behavioral Bias
 Can be misapplied that it can harm employees

 Some people in spite of their good intentions, so overwhelm others with care that the
recipients are emotionally smothered and reduced to independent and unproductive
indignity.
61

2. The Law of Diminishing Returns
 In economics the law of diminishing returns refers to a declining amount of extra outputs when
more of a desirable input is added to an economic situation.
 After a certain point, the output from each unit of added input tends to be smaller.
 The concept implies that for any situation there is an optimum amount of a desirable practice,
such as recognition or participation.
62

2. Unethical Manipulations of People
The philosophy of human behavior is
supportive and oriented toward human
resources.
Knowledge and techniques can be used to
manipulate people unethically as well as to
help them develop their potential.
People who lack respect for the dignity of the
human being could learn organizational
behavior ideas and use them for selfish ends.
63

3. Unethical Manipulations of People
Ethical managers will not manipulate people.
Ethical leadership recognizes principles such
as:
Social responsibility
Open communication
Cost-benefit analysis
64
 New Directions in OB
- The field of OB is dynamic work in
progress.
- OB is being redirected and reshaped by
various forces
- New directions for OB
1. Human and social capital
2. Positive organizational behavior
3. Impacts of the internet revolution
65
The Strategic Importance and
Strategic
Dimensions of Human Assumption:
People, individually
and Social Capital
And collectively,
Are the key to
organizational
success
Social Capital
Individual human capital
*Shared Visions
•Intelligence/abilities
*Shared values
knowledge
*Trust
•Visions/dreams/aspirations
*Mutual respect/goodwill
•Technical and social skills
*Friendship/support groups
•Confidence/self-esteem
*Mentoring/positive role modeling
•Initiative/entrepreneurship
*Participation/empowerment
•Adaptability/flexibility
*Connections/sources
•Readiness to learn
Organizational *Networks/affiliations
•Creativity
*Cooperation/collaboration
•Enthusiasm Learning
*Teamwork
•Motivation/commitment
(Shared Knowledge) *Camaraderie
•Persistence
*Assertive
•Ethical standards
*Functional
•Honesty
*Win-win negotiations
•Emotional maturity
*Volunteering
66
 Human Capital
 Is the productive potential of an individual’s
knowledge and actions.
 Five Human Capital outcomes.
Definition
The effectiveness of managers’ and

leaders’ ability to optimize the
Leadership/managerial organization’s human capital thru
practices communication, performance feedback,
efforts to instill confidence,
demonstration of key org. values
The organization’s success in optimizing

the performance of its workforce by
means of developi9ng and sustaining
Workforce optimization
talent, and guiding and managing its
application on the job
67
 Human Capital
Definition
The organization’s overall ability to learn,

Learning capacity change and continually improve
The extent of the organization’s

collaborativeness and its current efforts
Knowledge accessibility and ability to share knowledge and ideas
across the organization
The organizations’ ability to retain,

Talent engagement
engage, and optimize the value of its talent
68
 Social Capital
 Is the productive potential resulting from
strong relationships, goodwill, trust, and
cooperative effort
Skills and best practices in building human and social capital
Managing Diversity Positive reinforcement

Self-efficacy Group Problem-Solving
Self Management Group development
Emotional Intelligence Building Trust
Goal setting Teamwork
Managing Conflict Leadership
Communicating Organizational Learning
Empowerment
69

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HUMAN BEHAVIOR IN ORGANIZATION

ALBERT S. DELA CRUZ

-consists of all human activities

UNIVERSAL IN FUNCTIONS OF MGT

It is in the implementation and practice that differ

• an act with free will

Second The Group

First The Individual

DIMENSIONS OF STUDY AND THEIR

INDIVIDUAL GROUP ORGANIZATION

VARIOUS SCIENCES THAT CONTRIBUTE TO THE

People grow and move on to higher levels of

These basic and potent needs are recognized and

Significant Components of an Organization

A social system is a complex and dynamic set of

Ex. The marketing department is in high

Community & Environment

 Is contingent on variables prevailing particularly where

INPUTS PROCESS OUTPUT

Goals Put in Transformation Process Goods Measured

• Fundamental Concepts of Organizational Behavior

• Fundamental Concepts of Organizational Behavior

The Nature of People The Nature of Organizations

 NATURE AND NURTURE

 Freud argues that personality develops through a series of

Frederick Taylor & Scientific Management

- The Father of Scientific Management

- His writings was published in 1911

- Called attention to the low productivity of

c. The absence of systematic methods for

d. Ineffective incentive systems to

- In Scientific Management Taylor wrote:

- Called for a mental revolution on the part of both

- Advocated “high wage but low labor cost”

* where labor could be given high wages

- Tools for standard methodologies

- Elton Mayo and Fritz Roethlisberger

- The result of the experiment in a very different

- The workers enjoyed their sense of importance

- The most important factors are social and

* Overcoming worker suspicions about

* The influence of formal groups were

The Human Relations Movement

- Scientific Management views a person as an

- Gave way for the use of Behavioral Sciences on

Safety & Security

MASLOW’S HIERARCHY OF NEEDS 43

- Frederick Herzberg found out from its

Policies & Administration Achievement

HERZBERG’S TWO-FACTOR THEORY OF MOTIVATION

Existence Relatedness Growth

- Three basic types of motivating needs:

- Victor Harold Vroom, 1964

Preferences Motivation Effort Performance Satisfaction

Stimulus evokes a response, where the

Organizations need people and people need organizations

Superordinate Mutual Employee

Mutual interest provides a superordinate goal – one that can be

 Ethical and unethical conduct is the product of a complex

A model of ethical behavior in the workplace

Does it maximize No Don’t do it.

Yes Don’t do it.

Problems exist in OB’s nature and use