Chapter 2:

Models of Organizational
Behavior
Course Instructor:
Ayesha Siddika Arshi
Lecturer
Dept. of Finance & Banking
 ORGANIZATIONA
L BEHAVIOR
• OrganizationsSYSTEM
achieve their goals by
creating, communicating, and
operating an organizational behavior
system.
• The primary purposes of organizational
behavior systems are to identify and then
help manipulate the major human and
organizational variables that affect the
results organizations are trying to achieve.
 Elements of the System
a) The philosophy: The philosophy (model) of organizational behavior
held by management consists and integrated set of assumptions and
beliefs about the way things are, the purpose for these activities, and
the way they should be.
 These philosophies are sometimes explicit, and occasionally implicit, in
the minds of manager.
 Five major organizational behavior philosophies includes autocratic,
custodial, supportive, collegial and system.
 We are committed to quality, cost-effectiveness, and technical
excellence.
 People should treat each other with consideration, trust, and respect.
 Each person is valuable, is unique, and makes a contribution.
 Elements of the System
a) The philosophy: The philosophy of organizational behavior originated
from two sources- Fact premises and Value premises.
 Fact premises represent our descriptive view of how the world
behaves. They are drawn from both behavioral science research and our
personal experiences.
 Value premises represent our view of the desirability of certain goals
and objectives . These are a variable beliefs we hold and therefore
under our control.
b. Value: The rules by which we make decisions about right and wrong,
should and shouldn't, good and bad.
They also tell us which are more or less important, which is useful when
we have to trade off meeting one value over another.
 Elements of the System
c. Vision: It means a challenging portrait of what the organization and its
members can be a possible and desirable future. It basically focused on
achieving long-term goals and objectives.
 It represents a challenging portrait of the organization and its members
can be - a possible, and desirable future.
 Leaders need to create exciting projections about the organization
should go and what major changes lie ahead.
 Once the vision is established, persistent and enthusiastic
communication is required to sell it throughout the ranks of employees
so they will embrace it with commitment.
 Elements of the System
d. Mission: It identifies the business it is in the market niches it tries to
serve the types of customers it is likely to have, and the reasons for its
existence. In contrast to vision, mission statements are more
descriptive and less future oriented.
 Identifies the business it is in, the market niches it tries to serve, the
types of customer it is likely to have, and the reasons for its existence.
 It even includes a brief listing of the competitive advantages, or
strengths, that the firm believes it has.
 It is more descriptive and less future-oriented than vision.
 Need to be converted to goal to become operational and useful.
 Elements of the System
e. Goal: Goals are relatively concrete formulations of achievements the
organization is aiming for within set periods of time, i.e.. one to five
years. Goals may exist at the individual , group and larger organizational
level. Goals are more specific.
 Goals are relatively concrete formulations of achievements the
organization is aiming for within set periods of time, such as one to five
years.
 Goal setting is a complex process, for top management's goals need to
be merged with those of employees, who bring their psychological,
social, and economic needs with them to an organization.
 Summary
Philosophy, values, vision, mission, goals all help to create a recognizable
organizational culture.
This culture also a reflection of the formal organization with its formal policies,
structures and procedures and the existing social and cultural environment.
The formal and informal organizations provide the glue that binds the varied
elements of the institution into an effective working team.
Managers are then expected to use a leadership style, communications skills and
their knowledge of interpersonal and group dynamics to create an appropriate
quality of work life for the employees.
 Theory X vs Theory Y
Theory X Theory Y
1. Dislikes work and attempts to avoid it. 1. Work can be as natural as play and rest.
2. Has no ambition, wants no 2. People will be self-directed to meet their
responsibility, and would rather follow work objectives if they are committed to
than lead. them.
3. Is self-centered and therefore does not 3. People will be committed to their
care about organizational goals. objectives if rewards are in place that
4. Resists change. address higher needs such as self-
5. Is gullible and not particularly fulfillment.
intelligent. 4. Under these conditions, people will seek
responsibility.
5. Most people can handle responsibility
because creativity and ingenuity are
common in the population.
 Theory X vs Theory Y
 Models such as Theory X and Theory Y are also called paradigms, or
frameworks of possible explanation for managers. Managers begin
with certain assumptions about people and leads to certain
interpretations, implications, and even predictions of events.
Importance of Paradigms/Framework
• They influence managerial perceptions of the world around them.
• They define one's boundaries and proved prescriptions for how to behave.
• They encourage resistance to change, since they have often worked in the past.
• They may either consciously or unconsciously affects one's behavior.
• When new paradigms appear, they provide alternative ways of viewing the world and solving
problems.
MODELS OF OB:
Autocratic Model
Custodial Model
Supportive Model
Collegial Model
System Model
 1. Autocratic Model
Autocratic model depends on power.
 The people who are in command must have the power to demand “you do
this or else”, meaning that an employee who does not follow order will be
penalizes.
 In the autocratic environment the managerial orientation is formal, official,
authority. This authority is delegated by right of command over the people to
whom it applies.
 Management believes that it knows what is best and that the
employee’s obligation is to follow orders. It assumes that employees have
to directed, and pushed into performance and such prompting is management’s
task.

 2. Custodial Model:
 A successful custodial approach depends on economic resources.
 The resulting managerial orientation is toward money to pay wages and
benefits. Since employees’ physical needs are already reasonably met, the
employer looks to security needs as a motivating force.
 If an organization does not have the wealth to provide pensions and pay other
benefits, it cannot follow a custodial approach.
 The custodial approach leads to employee dependence on the organization.
Rather than being dependent on their boss for their weekly bread, employees
now depend on organizations for their security and welfare.
 3. Supportive Model:
 The supportive model of organizational behavior had its origins in the
“principle of supportive relationships”. It depends on leadership instead of
power or money .
 Through leadership, management provides a climate to hope employees grow
and accomplish in the interests of the organization the things of which theft are
capable.
 The leader assumes that workers are not by nature passive and resisted to
organizational needs, but that they are made so by an inadequately supportive
climate at work. They will take responsibility , develop a drive to contribute, and
improve themselves if management will give them a chance.
 Here management’s concentration is to support the employee’s job
performance rather than to simply support employee benefit payments as in
 4. Collegial Model:
 A useful extension of the supportive model is the collegial model. The term
“collegial” relates to a body of people working together cooperatively. The
collegial model embodies a team concept.
 The collegial model depends on management’s building a feeling of partnership
with employees. The result is that employees feel needed and useful. They feel
that managers are contributing also , so it is easy to accept and respect their
roles in the organization. Managers are seen as joint contributors rather than as
bosses.
 The managerial orientation is toward teamwork and management is the coach
that builds a better team. The employee response to this situation is
responsibility.
 5. System Model:
 Under the system model managers try to convey to each worker, “you are an
important part of our whole system. We sincerely care about each of you. We
want to join together to achieve a better product or service, local community
and society at large. We will make every effort to make products that are
environmentally friendly.”
 Managers must increasingly demonstrate a sense of caring and compassion,
being sensitive to the needs of the diverse workforce.
 This model reflects the values underlying positive organizational behavior,
where managers focus their attention on helping employees develop feelings of
hope, optimism,
selfconfidence,empathy,trustworthiness,esteem,resiliency.courage, and
resiliency.
 5. System Model:
 Facilitators Roles for Managers in the System Model of OB-

1. Support employee commitment to short-and long-term goals.

2. Coach individuals and groups inappropriate skills and behaviors.
3. Model and foster self-esteem.
4. Show genuine concern and empathy for people.
5. Offer timely and acceptable feedback.
6. Influence people to learn continuously and share that learning with others.
7. Help individuals identify and confront issues in ethical ways.
8. Stimulate insights through interviews, questions, and suggestions.
9. Encourage people to feel comfortable with change and uncertainty.
10. Build cohesive, productive work teams
MODELS OF OB: