Why Organizational Studies Are Important in Contemporary Business - Essay Example

? Critically evaluate why ‘Organizational Studies’ are important in contemporary business’ OR Why do we study behavior in business Contents 2 2 Introduction 3 Discussion 4 Conclusion 10 References 12 Introduction Organizational studies involve the understanding of the way people behave and work in an organization and how their behaviour influences there is a key influencer of their performance in the company. The study and implementation of organizational behaviour is done to develop an understanding of the skills of the people working in the business as well as for predicting and managing the different human behaviour in the organizations. This study is widely practiced by all corporate as they realize that people are the most vital resources for an organization. Organizational behaviour encompasses the behaviour of the individual, the behaviour of a group as well as the structure of the organization. Organizational Behaviour is implemented to understand, predict and control the human behaviours in an organization. The use of organizational behaviour studies to understand the behaviours of the employees from a humanitarian perspective not only ensures the well-being of the employees but also helps to positively influence the environment and workings of the organization. Thus, organizational behaviour study is an applied science used to understand the way an individual or a group behaves, to understand the interpersonal processes and the different dynamics of the organization. Organizational behaviour provide tools to describe and analyze the behaviour of the employees in the business and helps the managers to improve the interpersonal relationships of the employees and develop the performance and the work behaviour of the individual employees which in turn helps the organization to meet its goals and objectives. Organizational behaviour studies are gaining more and more importance in the present business world as the businesses have realized that in order to survive and succeed in this fast changing competitive market; they have to adapt themselves to the newly evolving corporate cultures and practices. Organizational behaviour is now a highly important topic of consideration which was introduced with the changes in the employee behaviour and decrease of productivity which came into picture when the employees were treated with only a result driven approach. Discussion Organizational behaviour is important because it aims at focusing its attention on the employees of the organization from a humanistic point of view. It addresses the concerns of fulfilling the needs of the employees so as to generate motivation among the workforce. The implementation of organizational behaviour stools in the business also works towards achieving the organization’s objectives. This is done by integrating the objectives of the employees and the organization so as to create a synergy which makes it easier to achieve both the objectives simultaneously. The organizational behaviour is used to analyze an employee’s behaviour with respect to his psychological frame of mind as well as the social and cultural factors. The analysis is done into study and focus on the human behaviour issues in individuals, groups as well as the organization as a whole. There are different types of organizational behaviour models which are described as follows: Autocratic: The autocratic model is based on the power being held within the managerial orientation of the authority. This model was prevalent during the Industrial Revolution. The management is taken as the final authority and employees are supposed to follow the orders of the management. There are rigid control systems in the organization and there is little scope of individuality. The disadvantage of this model is that it incurs high cost in the human aspects; the performances are lower than in other models and so are the remunerations. There tends to be unfair practices and exploitation in the existence of this model. Though this is a harsh model, with the people in power directing and pushing the employees, still this model tends to work under certain conditions especially in a situation of organizational crisis. Custodial Model: The custodial model is based on a managerial orientation of the economic resources and an employee orientation towards the benefits and security derived from the organization. The workers perform mainly in the mode of passive cooperation as their basic need of job security is met with. This model was devised to improve the morale of the employees which got lowered when the autocratic model was implemented. This model is aimed to provide job security to the employees when they have felt insecurity and dissatisfaction working under the autocratic model. In this model, the dependence of workers on the organizations is high which results in a higher level of loyalty whereas the dependence on managers is low. But in this model, enough job security often results in decline of performance as according to research, the employees being content does not necessarily ensure high productivity. Supportive Model: The supportive model is based on the orientation of managers towards support combined with leadership. The employees as a result are performance and participation oriented. The managers create an environment for the employees to achieve more and grow along with the organization. The managers support and guide the employees and help them in solving any issues that they face in the workplace. This model gives the employees a sense of being an important part of the organization and has the psychological impact of increased level of performance because of the “we” factor. This model tends to work more effectively in richer countries. Collegiate Model: This model is based on the managerial orientation towards teamwork. The employees thus behave more responsibly and maintain self-discipline. The performance level increases because of moderate enthusiasm instigated in the people. The self-actualization need of the employees is met with. In this model, the managers work as facilitators rather than as the authoritative decision maker. The people work as a group with a common goal and thus this model is effective in terms of performance and work schedule. This model aims at creating a synergy in which every employee has high dedication towards his own performance as well as appreciates the contributions made by the other members of the group. The psychological effect of this model is creating a feeling of self-employment among the employees (Bratton, 2010, p.264). There are many theories which are used to study organizational behaviour among which Maslow’s need hierarchy theory, Herzberg’s two factors Theory, McClelland’s NachTheory, Reinforcement Theory, Spritzer’s empowerment theory, Bandura’s Self-Efficacy Theory, Vroom’s expectancy theory and so on. In this study we will discuss and compare Abraham Maslow’s famous theory of need hierarchy and Frederick Herzberg’s two factor theory. Abraham Maslow’s theory suggests that a human being has five broad layers of need which are physiological needs, need of safety and security, belonging and love need, the need for self-esteem and the need for self-actualization. The psychological needs include the basic needs of oxygen, water, air, temperature, the need to release wastes from the body, the needs for being active, need to sleep and take rest .The need to maintain pH balance and vitamins and minerals is also included in the physiological needs. When the physiological needs of a human being are met, the second layer of need i.e. the safety and security needs are felt by the person. The human being after having met the physiological needs moves on to find safe environment, stability in life and protection from danger and uncertainties. The human being becomes increasingly aware of his fear and anxieties. The safety and security needs may include job security, a safe home, and a good retirement plan and so on. The third layer of need is the love and belongings need where a human being feels the need to get married, to have a family, be a part of a group of friends and a community. If these needs are not met with, the human being might become increasingly susceptible to social loneliness and anxieties. The esteem needs felt by a human being are of two forms, a lower esteem need and a higher esteem need .The higher esteem need includes the feelings of achievement, independence, competence and confidence. The lower esteem needs include the need for respect, status, recognition, attention and appreciation. Copyright © www.examrace.com Herzberg’ s two factor theory states that there are two broad classes of factors that affect the motivation of an employee- The intrinsic factors and the extrinsic factors. The intrinsic factors are more related to job satisfaction and are thus the main motivator factors. The intrinsic factors create job satisfaction by fulfilling the need for development and self- actualization. The extrinsic factors are more related to job dissatisfaction and are named as hygiene factors. The hygiene factors on the other hand lead to job dissatisfaction because of the need to avoid unpleasant conditions (Wagner and Hollenbeck, 2010, p.98). The two factors theory of motivation suggests that the key motivating factors are the value and satisfaction derived from the job. The environment of the job is a lesser important motivating factor according to this theory. Therefore, this theory of motivation suggests that to motivate an employee, the job must be interesting ad value giving for the employee. The surrounding environment has the power of demotivating but motivation and behaviour changes can only be influenced by the intrinsic factors associated with the work. The hygiene factors of Herzberg’s theory can be related to the physiological and safety needs of Maslow’s need theory. These factors a may include causes of job dissatisfaction like poor working conditions, unhealthy relations with co-workers, low remuneration, certain clashing company policies etc. The intrinsic factors or motivators correspond to the needs of responsibility, recognition and achievement in Maslow’s theory. Maslow’s theory is a widely popular theory of motivation adopted by many organizations for their organizational behaviour studies. Maslow’s theory can most effectively be applied to developing economies where money is considered as a vital motivating factor. The scope of application of Herzberg’s theory is lower as according to this theory, money is a lesser important factor of motivation and thus it effective in mostly rich and develop economies (Mullins, 2007, p.89). The Maslow’s theory states that any need, irrespective of being fulfilled or not can act as a motivating factor but according to Herzberg’s theory, the hygiene factors never act as the motivating factors but are more related to dissatisfaction. The needs of higher order like achievement and recognition are the key motivating factors according to the two factor theory. The theory of Maslow is a more descriptive theory as it is based on the experience regarding the needs of human beings but the Herzberg’s theory is of more prescriptive form which gives suggestions as to how the motivators can be used effectively .In Maslow’s model, a fulfilled need is not necessarily a motivator except in the need of self-actualization but in Herzberg’s model all the needs except the hygiene factors are motivators. In Maslow’s theory, pay is a main cause of motivation but in Herzberg money is not regarded as a cause of motivation. Maslow adapts a more macro view of motivation whereas Herzberg considers a micro view of the same (Robins, 1989, p.167). Maslow’s theory can be adapted by organizations to apply it to all levels of employees whereas Herzberg’s theory is more suitable for a higher level of employees. An organization does not always use only one theory or one model to evaluate and motivate its employees’ behaviour but often a combination of many theories and types of organizational behaviour are applied. The personality types of employees differ from one employee to another depending on their culture and their backgrounds. They are mainly considerate, aggressive, perfectionists, dictators, egoists, attackers and the criticizers. These are categorized based on five factors- need for stability, degree of extroversion, originality, accommodation and consolidation. The considerate personality type people are mostly agreeable and optimistic and the fulfilment of their need for encouragement and praise acts as the main motivator for these personality types. The aggressive personality types like to control things, work fast and take quick decisions. Their need for recognition and respect is the main motivating factor for these types of personalities (French, 2011, p.156). The perfectionists are detailed workers with unrealistic standards who are unable to accept criticism and expect to deliver high standards of work. They look into the micro details of every work. It is important to develop emotional awareness in them and recognize their emotions as well as their tendency to become overly aggressive. The dictator personality type employees have a high demand level from everyone and often possess a strong need to control the passive personalities. The managers should try to develop their sense of self control by learning to check their impulses and disruptive emotions. The egoist personality traits possess a superior and know it all attitudes. They tend to disagree with most things and are arrogant in their ways of dealing. The managers should ideally try to develop these employees ability to understand their co-workers and take an active interest in fulfilling the need of security by addressing the concerns and issues of these personality type employees. The attackers have a hostile attitude based on their emotions like frustration and anger. The manager should foster innovation and fulfil the need of security and safety for the individual by encouraging him to adapt to new approaches and information (Forbes, 2012, p.3). The criticizer personality has a high resistance towards innovative ideas. The manger should try to develop the social skills of this personality type by encouraging collaboration and cooperation within the group. Also, he should work towards conflict resolution and unbiased negotiations. Conclusion There is much significance of organizational behaviour studies in today’s corporate world.  In today’s corporate world, organizations are beginning to implement organizational behaviour as an n intricate part of training and development processes. They are taking organizational behaviour as an important tool for optimally utilizing an employee’s personality and adaptability by successfully motivating the employee and channelizing his behaviour towards achieving better performance for the individual employee as well as the organization. The study of organizational behaviour helps the company to manage the diversity of their work force i.e. they find it easier to integrate a heterogeneous group of people into their workforce by understanding and balancing the different behaviour and expectations of people from different geographic areas, race, sexual orientation, age, religion, education as well as different behaving and communicating styles. The implementation of organizational behaviour in the business helps improve the interpersonal dynamics within the employees, and helps to achieve higher levels of competency and creativity because the needs of the employees are understood and fulfilled within the organization. The managers develop a good understanding of the way the human behaviour works and thus they can control and influence their behaviour so as to match the required standards of the organization for meeting the organizational goals. Thus, the managers have to monitor and con troll the behaviour of the individual employees as well the behaviour of employees when they are working in a group. By understanding and managing these behaviours, the company can help to meet both the organization’s and the individual’s objectives simultaneously. An organization as a closed model is not effective in today’s fast changing world. To survive and be successful, it is important for an organization to manage its key resources that is its people. Thus implementing organizational behaviour theories not only helps in motivating the employees but also plays a crucial role in improving productivity and performance, making the organizational structure more effective, improving quality and in the overall development of the organization. References Robins, S. 1989. Organizational Behaviour, Concept, Controversies and Application. [Print]. New Jersey. Prentice Hall. Wagner and Hollenbeck. 2010. Organizational Behaviour Securing Competitive Advantage. New York. Taylor & Francis. French, R. 2011. Organizational Behaviour. New Jersey. John Wiley & sons. Mullins, L. 2007. Management and Organizational Behaviour. New Jersey. Prentice Hall. Bratton, J. 2010. Work and Organizational Behaviour : Understanding the Workplace. Hampshire. MacMillan. Forbes. 2012. The 9 Corporate Personality Types And How to Inspire Them to Innovate. [Online]. Available at http://www.forbes.com/sites/stevefaktor/2012/11/15/feature-the-9-corporate-personality-types-how-to-inspire-them-to-innovate/.   Read More