CHAPTER 1

ORGANIZATIONAL BEHAVIOR
Organizational behavior is the study and application of knowledge about how people,
individuals and groups act in an organization. It is therefore important for us in the academe to
know and interpret people and organization relationship to understand the behavior of the
whole person, the group, the whole organization and its social system.
Organizational behavior is an academic discipline concerned with describing,
understanding, predicting and controlling human behavior in an organized environment. It
evolved from the early classical management theories into a complex school of thoughts. It
continuously changes in response to the dynamic workforce due to the changing business and
social environment.
PINOY human behavior can be developed by experience, and socialization with people
around him. At the early stage, a person develops behavior in his home environment, playmates,
schools, and the larger society as he associates with them. As PINOY engages in social interaction,
he ponders on different feelings, thoughts and reflections and displays behavior that he practices
later in his daily life. A particular behavior is shaped by observation, imitation, positive
reinforcement and finally generalization.
We can be more effective in developing good behavior if we can adequately understand
human nature by viewing ourselves as biological, psychological, sociological, humanistic and
spiritual entities.
Organizational behaviour has four primary areas:
1. Individual Behavior

Individuals and organization must have a balance life based on their own needs
and desires. People at work must be honest to themselves while they meet
organizational or group demands. Individuals who profit or who are satisfied with the
organization are perfectly contented with their present position in the organization.
They extend performance for the continuation of their work since their expectations
are met.

People work to make a living and their efforts must go beyond by simply working.
Individual in an organization must fulfill certain needs and must contribute in attaining
organizational goals while they are attaining a feeling of accomplishment, using their
creative talents in the performance of their assigned task. Individual in organization
will develop self-direction and self-control when organizational managers recognize
potential in the work groups.
2. Group Behavior

Human beings are social animals and they need human, associations as much as
they need food, clothing and shelter, Groups are formed beyond reason of needs and
need to, work. Social relationships in work groups may be powerful in affecting
organizational goals. An individual must strike a happy balance between his personal
needs, the need of other individuals in the group and the need of the group as a
whole.

An individual cannot work alone or cannot live alone without other people. He
needs to associate with other people in order for him to be happy. Groups exist for
one another to fulfill a set of personal reasons. In the stage of the life of an individual,
he has experienced playing with a group of children, studying in groups, doing
activities together and enjoying group games. These experiences transcend in the
work environment and it appears that it could be useful vehicle for meeting individual
needs. It is keeping relationship with other members that keep his personal motives.

3. Organizational Structure

Organizational structure is the visible representation of the set up of the

organization and its underlying activities. It designates formal reporting relationship.
It represents the levels in the organizational hierarchy as it defines the span of control.

Designing the organizational structure is ordinarily considered as matter of choice

among the larger number of alternatives. After considering the major organizational
design, we have to look back to the purpose and objectives that suits the structural
design.

Organizational structure identifies the grouping together of individuals according

to the functions, into departments or divisions, then into smaller units for easy
supervision and control. It includes the design of communication linkages that will
insure coordination and integration of efforts toward goal achievement.

The organizational structure passes through a series of revisions to cope with the
changing business and organizational conditions. It is not a stagnant system as it has
to adapt to the changes. The success and failure of organizational management
greatly depend on the organizational design. The structural design must be flexible
enough to provide alternatives to the challenges of the changing organizational
landscape.

4. Organizational Processes
 Organizational process refers to the management system and leadership styles
being implemented by the people handling the affairs of the organization.
Organization is designed and developed for people to work in harmony with the
environment and with all other stakeholders. The organization is based on
management philosophy, values, vision and goals. This in turn drives the
organizational culture which is composed of formal and informal groups and the social
environment.

Organizational management is not just putting work together. People need to be

given specific task to accomplish. Cooperative undertaking of all actors in the
organizational setup is necessary to keep it in motion toward the desired goals and
objectives. Organization must be planned so that the structure fits not only the need
of people but it also must conform to the organizational mission and vision. It requires
managerial effective administration and ‘the processes of planning, organizing,
directing, and controlling.
The Development of Organization
Many people in the academe and the management sectors view organization as a group
of people working together for a common goal or purpose. In view of the foregoing concept,
Organization is a mechanism that enables people to contribute their efforts and talents towards
the achievement of their common goals and objectives, both personal and organizational. The
evolution of life points out that people cannot live alone in this planet. They have to organize in
order to protect themselves, experience happiness and achieve their personal needs and wants.
As new generation of development came along and people multiplied, new needs and
wants developed, thus making life more complex. From the time God created the universe, Adam
and Eve lived a simple life of wandering in the Garden of Eden; gathering fruits and sustaining a
life of pleasure without much effort. Man was tempted and the complexity of life began. Man
has to labor to live a life away from paradise that God provided him.
As we look back, problems and chaos passed in the life of man from the time of Cain and
Abel. It came to pass, when man began to multiply md children were born to them. Man began
to labor and suffer the pain of punishment for the sins he committed against the Lord.
But God is great for He still trusted man and provided him wisdom. Yet not all men were
good as evil still persisted. God saw that the wickedness of man on earth was great, and evil
persisted to exist in man’s heart until He found Noah who remained faithful to His teachings. God
saved Noah and his children and all the living species we now have in the face of the earth.
From that time on, man began to live in groups. Fertile soil bears abundant supply of food
and animals got their basic needs from it. Man lived a simple life then. As man has begun to
migrate and multiply, he looked for more lands and wealth of the earth. Life began to be
complicated.
Organizational Development Process
The search for more food and wealth at the early time, was simple. Set up for hunting
animals and gathering food in the fields were organized. Man lived with what he could gather for
food, clothing and shelter. They lived in groups and chose leaders who are bestowed with wisdom
and ability by the Lord.
As men lived in tribes and groups, evils still existed due to greed and power. Men had to
organize groups to protect themselves against aggression. Men needed to invent weapons to
protect themselves and their loved ones. They made bow and arrow and spears to protect their
tribes and groups. Leaders came into fold to organize not only to grow more food for their people,
but also to organize and train army for war against other tribes which later developed into
Kingdom.
The leader had to be strong and his will power must transcend to all his people to attain
leadership in time of peace and war. Man had to develop specialized activities and expertise to
meet the needs of the tribe or the kingdom where he lived. Leaders and men of wisdom teamed
that more organized efforts could bring in more vast lands, bountiful harvests and expanded
territories. Organization was born in crude and simple manner where leaders welded the super
power of administration.
This is the birth of autocratic leadership where man had to use his super power over his
subordinates. Leaders have to be strong in his decision and he must have the wisdom to lead his
people. Good leaders were born as well as the evil ones. Those hungry for power and wealth
became greedy as they were not satisfied with what they had and would like to amass more and
more. Good leaders were loved by his people and the bad ones were hated by those he governed.
Organization passed a system of development. It went through the process of trial and
error, until the later decade, organization became more of civilized efforts of man. Man learned
that more organized efforts could bring improvement in his way of life. As man’s sphere of social
life became complex, organized efforts became apparent. Man explored his natural talent and
creativity to create new things that would satisfy not only his needs but also his wants.
Through this process, man developed theories about how people and organization work
together to achieve a genuine organizational system that would increase man’s production
efforts. The refinement of organized system and the development of organized behavior created
more goods and services beyond the imagination of man. The science of learning behavior in
psychology and sociology and other behavioral interventions came into fold to determine the
total development of man through his collective effort in the organization.
Understanding Behavior in Organization
 With the development of more scientific analysis of human behavior in the organization
through the study of psychology, sociology and other science of human behavior, different
management scholars have come up with various assumptions and theories which are still being
studied today. We cannot perfectly say that one theory is the best but all of these point to the
conclusion that prevailing behavior in organization varies in situation, environment and
conditions.
Organizational behavior applies generally to the interaction of people within all types of
organization. An organization is created when people join together in formal structure to achieve
a common goal or objective. The internal social system of the organization interacts with the use
of technology as the modern man cannot live happily with the modem system of living.
People and the organizational structure interplay with the e tam social environment that
greatly influences their behavior Mm organizations focus on the internal social system but the
external social system cannot be ignored as it influences the values and culture at m people
within the organization.
People constitute the internal social system of the organization They consist of individuals
with different behavior. People have feelings. They live in different environment, and have
different way. of thinking. They are educated in different schools and the level. of education differ
with one another. They are reared in different environment that shaped their culture and values.
The organizational structure defines the role relationship of people in the organized
system. The structural definition of role behavior in required because people in the organized
system must work hand and hand to achieve the defined objective of the organization. Work
coordination defines the role of the people. The structure defines the task and duties of the
individual member of the organization together with the powers and responsibility attached to
the individual position.
Organizational technology provides the physical and economic conditions prevailing in
the work environment. The advent of modem machines and computers provide man with easy
access to information where he performs his job efficiently. These modern gadgets make work
faster and man does not have to use his physical strength to make things happen. It is more of
mental exercise and development of work system. The benefit of technology is to help people to
be more efficient, but on the other hand, organizational cost is involved which might not be
within the capacity of the organization to provide all these modern machines.
The social system provides the external environment within which an organization
operates. The organization is not isolated, as it is a part of the larger social system that interacts
with one another. All the various organizations mutually influence one another in a complex
system and people behaviour and styles affect each social system.
It also provides competition in material and human resources, not only in the marketing
of products and services but also in the power to influence public and political opinions as well.
A careful study of organizational behavior must be made along this line as the aspiration of
people towards a happy environment with the greater social system.
To sum up, organization behavior is the study and application of knowledge about human
behavior in organization and it relates to the other system elements such as structure,
technology, and the internal social system. Our focus is to improve the relationship of people
with all the elements of the organization and develop their attitudes and values as tools for the
greater human benefits.
Management View of Organizational Behavior
All people in an organization are concerned with improving organizational behavior.
People interact with one another and they influence the behavioral quality of life within the
organizational system. Management has a larger responsibility in making an effective system of
human behavior as they make decisions that affect the people and their relationship with the
various sectors in the organized environment.
Management role is not limited to provide people with employment and source of living
but it extends to integrate people to the social and the technical system in order to improve
people in their organizational relationship. In this manner, organization can better accomplish
the human benefits for which it was formed. Motivation is the driving force that develops team
work in order to fulfil their human needs and at the same time achieve organizational objectives.
Management view organization under the following ideas:
1. Organizational behavior focuses primarily on people.
2. People and organizational relationship must be improved.
3. Organizational environment must motivate people.
4. Team work and coordination must be maintained to improve work efficiency.
5. Organization seeks to fulfil people and organizational objectives.
6. People and organization seek result effectively.
Organization and people are two important components of any management system and
they could not work apart from each other. People need organization, as organization needs
people. Organization has to integrate people with the technical, economic, and structural
elements and the other elements in order to achieve its common, objective of productivity and
growth.
All people have needs and want and they seek to fulfil these thou the organization. Their
needs vary in intensity as they are affected by their psychological, economic and social
environment. On other hand, organization seeks to play for itself in terms of increasing
effectiveness by reducing wasteful activities and behavioral pollutants and improving at the same
time the quality working relationship
 Human behavior in an organization determines the quality of Work its progress and
success. No machines and computer aided technology can do the work by itself. No new product
or services could come the market place without human resources that develop new idea, create
and deliver them. The entire workforce in an organizational set up is the top concern of
management as behavior affects its entire productivity.
Analysis of the Human Body and Organizational System
To greatly understand the elements of organization, it is best to look into the functions of
the human system, as our personal body evolved a system of great semblance of relationship.
GOD is the master of the organizational system when HE created man. Man as an intellectual
being is capable of adapting to condition, the nature and the changing environment.
Organizational structure is like the human components that operate harmoniously with one
another.
The brain is the central system of human control. The tap management sets the wheels
of organizational direction. The digestive system supplies the body with the necessary nutrients
from the intake of food supplied by the working hands. Production department of the
organization supplies the needed products that keep the organization in motion. The respiratory
system supplies the blood and oxygen to all the body parts to meet its standard for survival, as
the heart performs the intricate functions of purification.
The finance and audits control the flow of funds so that money is spent properly and
keeps the balance of the organizational finances. Any abnormality creates imbalance. A heart
surgery may be necessary. The same also happens in the organization since changes need to be
instituted when system imbalance occurs. Diagnoses of any disorder would need changes in the
composition of the system before it is too late.
Organization on the other hand functions in similar fashion. The workers are the producer
of goods and services. The more productive the workers become, the more profit the company
earns. Besides, it develops a healthy organization because employees enjoy more benefits. As it
grows bigger, it becomes complex but as long as organizational management maintains balance
in the system of mutual benefits for its workforce; it shall continue to sustain its growth and
development. Workers and producers of goods must be supplied with the necessary motivational
perks, just like the human limbs which need massage once in a while.
Organizational Interdependence
The vital organs of the body operate with a good deal of independence in the direction of
the brain. It becomes concerned with the interest and needs of the human body as a whole. It
devotes thoughts to individual organ when the vital organ is in an abnormal condition. The brain
or central intelligence calls on other body parts to give remedy to the pain and disorder.
The same is true in the organization. A specialized system is put in place to keep
organizational balance through its decentralized functions of management. The body can operate
in a decentralized fashion effectively because it makes two types of decision. The brain operates
in the conscious and subconscious mind. The choice of organizational decisions rest with top
management and the operating departments take care of the routine matters and repetitive
functions. They are guided by operating policies and procedures.
The Growth of Specialization
At the stage of human development, the human embryo grows and becomes capable of
greater scope and movement. As human being begins to move on its own away from the
supervision of the conscious mind, independence of movement in decision making becomes
apparent. These changes brought about increase differentiation and specialization. Each organ
now assumes special functions. The body parts limit itself to a particular task and the central
brain system concentrates on learning new things and develops new knowledge and skills.
The organizational system operates in similar fashion. As it matures and develops into a greater
scope, specialized departments are created. The stockholders and top management become
the brain which decides on major issues, and the operating departments are the subconscious
mind that handles the daily affairs of operation. With the well organized system of
specialization and differentiation, the organization moves faster in the vast and complex
environment of business.