THEORETICAL UNDERPINNINGS OF HUMAN BEHAVIOR IN

ORGANIZATION

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Presented to

Francisco D. Daez, Ph. D

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In Partial Fulfillment of the Requirements in

Human Behavior in Organization

Educ. 204

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Katy Chenee S. Napao

September 14, 2019

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I. Introduction

Human Behavior in Organization deals with the study of human behavior within
groups or organizations and how this behavior can be modeled through analysis to impact
the organizations in a positive way.

An organization in itself is composed of a group of people working individually

or often within teams. The disposition of people towards each other in an organization
remains the contributing factor towards shaping the organization. The success of an
organization is largely dependent on effective management of its people. Behavior
of people within an organization is governed by their ideas, feelings and activities. For
effective management of people, it is crucial to perceive their requirements. However,
since human behavior can differ with each individual, it becomes almost impossible to
come with a unique solution to the organizational problems. For this reason, it is
important to consider psychological and social aspects to design solutions focused on
solving organizational issues.

The behavior of individuals within an organization can either defile the

organization or aid in its overall improvement. For instance, certain employees may be
compassionate and helpful towards their co-workers which helps to create a supportive
work culture. This selfless attitude can be a result of the employee’s faith in the
management and their satisfaction and commitment towards the organization.

However, an employee who no longer trusts the management or is left unsatisfied

at the work front, may show antisocial behavior which can be harmful for the
organization. Organizational culture is defined by the company parameters such as
values, beliefs, norms and principles, visions, and behavioral expectations among many
other things. Behavior of employees is highly impacted by work culture, as such it can
affect them either positively or negatively.
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A pro-social and supportive culture at work can be a major influence and also
encourage and build an environment of selflessness. When people are encouraged, they
feel more confident towards contributing ideas that might eventually benefit the
organization. On the contrary, employees are more likely to hold up or not suggest any
ideas at all if they feel they are going to face criticism or embarrassment.
Generally, employees gain an understanding of the company’s culture through
socializing with other people.

In order to solve the organizational problems, it is necessary to first understand

the reason for its occurrence. If the problems faced are due to damaging Human Behavior
in Organization, it becomes crucial to recognize the purpose behind such a behavior.
Only then can measures be taken to counter it and guide the organization in a progressive
direction. Incorporation of new and encouraging behaviors in the company culture might
prove rewarding to the employees and as such profit the company as a whole.

There are many factors that promote constructive organizational behavior, such
as accomplishments, self-actualization, encouragement, affiliation etc. Leaders should
try to figure out the driving force that stimulates such a behavior and try to integrate more
such factors in the work culture.

This can be in the form of promotions, new incentives, plans or rewards. It does
not make sense to hire capable people and expect complete dedication in the absence of
pro-social and rewarding company culture. In fact, people are more likely to lose interest
in their work if they don’t feel recognized and rewarded.

Human Behavior in Organization is a social science as it is mostly concerned with

people and behavior. It takes into account individual and group behavior and the factors
that impact these behaviors. It is necessary to first understand the behavior of people
constituting the organization in order to figure out how these work. The first and foremost
importance of organizational behavior lies in understanding human behavior.
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If the leader can interpret properly the human needs within an organization, it
can work towards fulfilling those needs and also chalk out new plans and incentives to
satisfy the employees and boost them. In addition, the management has to understand
also the reason for problematic behavior of human within organizations and take
measures to eliminate the causes.

Influencing human behavior is another important aspect of studying

organizational behavior. It helps the management to assess the reaction of employees
beforehand, prior to making any changes in policies or schemes.

This way the leader can come up with ways to alleviate any conflicts that may
arise as a result of the change. Also, certain measures such as perks, promotions etc., can
help in creating a content workplace which directly impacts employee performance in a
positive way. As a whole, the organization gains hugely through analyzing and
understanding Human Behavior in Organization
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II. Theories

Complexity Theory and Human Behavior in Organization

If you've ever sensed that your solutions and ideas about team structure are more
rigid than reality, complexity theory could offer you an alternative way of doing things.
A Human Behavior in Organization definition of complexity theory in organizations and
workplace teams are more dynamic than rigid. Instead of functioning like a machine, they
function as dynamic ecosystems, where every part impacts and is dependent on the other
parts in order to be successful.

In this theory, when seeking to increase performance on a team, you'd consider

each team member's relationship with one another as well as with the team as a whole.
Your team members' level of engagement and role can shift over time with new projects,
illnesses, the introduction of new team members, new policies and more. Instead of
crafting rigid ideas about how the team must function forever, complexity theory leaves
room for a certain level of dynamic flexibility and change.

French and Raven's Five Bases of Power

Most people who have ever worked in an organization probably noticed that some
people hold more influence than others in the organization, and the level of influence
doesn't always correspond with their official title. An organizational behavior definition
of power is often more dependent on relationships than titles.

In French and Raven's five bases of power, there are five identified sources of
power that could help you figure out who has the most influence in your organization:

1. Legitimate: Those with legitimate power are those who actually do hold
the titles of power within your organization. These are managers, team leaders
and executives. How much power they have depends on whether they also gain
power from the other sources listed here or team up with others who do.

2. Reward: People who have this kind of power earn it through their ability
to reward others for doing what they're supposed to do. Reward isn't always
financial. Often, it comes in the form of positive reinforcement or cheering others
on.

3. Expert: Most professional settings have someone in the mix who's famous
for being incredibly knowledgeable and skilled at what they do. When others need
information, they go to the expert who helps them learn what they need to know
in order to succeed.

4. Referent: Referent power comes through the ability to relate with others
and practice incredible relational skills in the workplace. These individuals are
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well liked and respected because of who they are, their personality and their
ability to unify people across their differences.

5. Coercive: People who have coercive power tend to be the company manipulators
who don't always have the best people skills. In contrast to those who have power
through reward, these characters accumulate power through emotional
punishment of others. These are generally not the healthiest people to team up
with in your leadership, although awareness of them is important to managing
them so they don't stand in the way of those who hold more positive and helpful
forms of power.

Hybrid Organization Theory

Hybrid organization theory argues that people no longer have to choose between
being an altruistic nonprofit or being a for-profit enterprise. In the Human Behavior in
Organization the definition of a hybrid organization, an organization can be both altruistic
and make a profit, as can teams and individuals within an organization. This model for
organizational development and behavior is becoming more common with companies
like Toms, Sevenly and Pura Vida paving the way.

Even if your company isn't an official hybrid organization, you can include these
principles into the strategies you employ for managing your team. Consider organizing a
team effort to make a difference for homelessness, human trafficking or another cause.
As you reach certain team goals, your reward can be the opportunity to give back
together.

Informal Organizational Theory

Of all the Human Behavior in Organization theories, the informal theory is the
one that best recognizes that there are often hidden systems within formal organization
structures. These informal organizations are the friendships and relationships formed
between people in the organization. Example Katy is teacher might eat lunch with Nancy
the School Principal and become best buddies with Rowena ASDS of Division office in
DepED Secondary Pampanga. The three of them end up going on vacation together or
enjoying weekend fun. This is an informal organization within the company.
If Katy has a question about Teaching, Rowena is likely to help her out and Nancy will
probably back up whatever decisions the two of them make together. As a leader, it's
important to take note of friendships and other alliances that form within your
organization. These informal alliances can help you to better achieve your goals. They
can also stand in the way of them when they're not healthy.
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Team Management Flexibility

No matter what organizational behavior theories you subscribe to, it's important
to lead your team intentionally with focus and heart. If you find that one theory isn't
helpful in your setting or isn't producing results, look into incorporating multiple theories
into your leadership approach. For instance, some of the best managers recognize that
there are internal systems (informal organization theory), outside influences (resource
dependence theory), differing sources of power (French and Raven's five bases of power),
ways to make a social difference (hybrid organization theory) and that things are always
in flux (complexity theory).

Organizational behavior theory

It is study of human behavior within an organizational environment. This means
that organizational behavior asks questions about why humans behave the way they do
in working environments. Dating back to the early 20th century, organizational behavior
theory developed out of classical management theories, such as those of Frederick W.
Taylor.
Taylor has been called the father of scientific management. According to him ,he
embraced the core principles of reducing conflict, simplifying duties, promoting
cooperation, increasing output, and developing workers to their best abilities. In the late
1940s and 1950s, following Taylor's work, several researchers began looking at the
importance of humanistic values on organizational behavior and how these values
translate into action and productivity. In other words, researchers began to concentrate
more on the value of the human experience in working environments and how this
ultimately impacts how an organization operates, handles change, and develops.
Taking these emerging ideas about the importance of human behavior in the
workplace, social scientist Kurt Lewin also made great contributions to organizational
behavior theory. Lewin was critical to the founding of the National Training Laboratories
(NTL), which pioneered T-groups. T-groups are basically a learning laboratory to help
people understand the meaning and consequences associated with their own behavior and
the behavior of others.
Within the groups there exists a place for learning about communication skills,
interpersonal relations, individual personality theories, and group dynamics. Group
dynamics refers simply to the different behaviors and processes that happen within a
group. These groups offered a space for individuals to process group interactions and
reactions.

Abraham Maslow's theories

By the 1960s, began to dominate research about management. Maslow claimed that
people are unique individuals with diverse skills, motivation, and desires to reach
potentials. Specifically, Maslow felt that motivation ultimately increases performance
and productivity.
Theorist Douglas McGregor was deeply committed to bringing Maslow's ideas of
motivation into the workplace. McGregor referred to these ideas as the 'human side of
enterprise'. In the 1960s, drawing on the work of Lewin and Maslow, McGregor
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introduced the theories of X and Y to management styles. Essentially, McGregor believed

that managers make assumptions about their employees. These assumptions, McGregor
argued, control the behavior management has toward staff.

Theory X assumes that people are lazy, passive, and irresponsible, and it is these
traits and tendencies that stop them from doing their best work. Theory Y, on the other
hand, assumes that people are capable of having a desire to achieve and take
responsibility, which allows these individuals to excel at their jobs. At its core,
McGregor's work sought to create better cooperation among management and workers
as well as to create more satisfying work for individuals, which in turn would help create
more stable and effective organizations.

Modern organizational behavior theory

It is based on a systems approach and founded in behavioral science. There are
four main areas of study in organizational behavior theory, including individual behavior,
group behavior, organizational structure, and organizational processes.
The organizational behavior is the concept where the behaviors, norms and values of the
employees are influences the organization. The behaviors are learnt from individuals,
groups and organization. The organization motivate the employee to increase the
performance of the employees and thus to increase the productivity. In the context of
individual who have direction to perform the activities assigned by the company must
have to follow to derive the core responsibilities of the company. The motivation and
empowerments is given to employees to increase the organizational performance. The
behaviors of the organization are based on the employee characteristics and their
performance attitudes efforts. There are certain theories that is explained in the concept
of organizational behavior are equity theory, psychodynamic theory, fielder’s leadership
contingency theory, McClelland’s acquired needs theory, process theories, Herzberg two
factor theory, classical decision theory, attribution and trait theory. These all are the
theory that describes the reviews and explanation of the organizational behavior. (French,
Rayner, Rees, & Rumbles, 2011)

Equity Theory:

In 1963, according to John Stacey Adams as he introduced the idea that fairness
and equity are key components of a motivated individual. Equity theory is based in the
idea that individuals are motivated by fairness, and if they identify inequities in the input
or output ratios of themselves and their referent group, they will seek to adjust their input
to reach their perceived equity. Adams suggested that the higher an individual's
perception of equity, the more motivated they will be and vice versa: if someone
perceives an unfair environment, they will be de-motivated.
The easiest way to see the equity theory at work, and probably the most common
way it does impact employees, is when colleagues compare the work they do to someone
else that gets paid more than them. Equity theory is at play anytime employees say things
like, 'John gets paid a lot more than me, but doesn't do nearly as much work,' or 'I get
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paid a lot less than Jane, but this place couldn't operate without me!' In each of those
situations, someone is comparing their own effort-to-compensation ratio to someone
else's and is losing motivation in the process.

This theory explains the individuals who have feel to under-rewarded or over-
rewarded when they perform their activities. The one person evaluates their own
performance and compare with other performance and feels inequity and unpleasant.

Psychodynamic theory:

The Human behavior in organization is the concept where the behaviors, norms
and values of the employees are influences the organization. The behaviors are learnt
from individuals, groups and organization. The organization motivate the employee to
increase the performance of the employees and thus to increase the productivity. In the
context of individual who have direction to perform the activities assigned by the
company must have to follow to derive the core responsibilities of the company. The
motivation and empowerments is given to employees to increase the organizational
performance. The behaviors of the organization are based on the employee characteristics
and their performance attitudes efforts.

There are certain theories that is explained in the concept of organizational

behavior are equity theory, psychodynamic theory, fielder’s leadership contingency
theory, McClelland’s acquired needs theory, process theories, Herzberg two factor
theory, classical decision theory, attribution and trait theory. These all are the theory that
describes the reviews and explanation of the organizational behavior. (French, Rayner,
Rees, & Rumbles, 2011)

In psychology, a psychodynamic theory is a view that explains personality in

terms of conscious and unconscious forces, such as unconscious desires and beliefs. In
the early 20th century, Sigmund Freud proposed a psychodynamic theory according to
which personality consists of the id (responsible for instincts and pleasure-seeking), the
superego (which attempts to obey the rules of parents and society), and the ego (which
mediates between them according to the demands of reality). Psychodynamic theories
commonly hold that childhood experiences shape personality. Such theories are
associated with psychoanalysis, a type of therapy that attempts to reveal unconscious
thoughts and desires. Not all psychologists accept psychodynamic theories, and critics
claim the theories lack supporting scientific data. Other theories of personality include
behavioral and humanist theories.
This theory elaborates the characteristics of the desires that is under the conscious
level and derives the conflicts in the behavior that our norms and behaviors are
unconscious learned in the socialization. This realization is the concept when one person
feels that what we think other people think.
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McClelland’s acquired needs theory:

The n-ach person is 'achievement motivated' and therefore seeks achievement,

attainment of realistic but challenging goals, and advancement in the job. There is a
strong need for feedback as to achievement and progress, and a need for a sense of
accomplishment. People with a high need for achievement seek to excel and thus tend to
avoid both low-risk and high-risk situations. Achievers avoid low-risk situations because
the easily attained success is not a genuine achievement. In high-risk projects, achievers
see the outcome as one of chance rather than one's own effort. High n-ach individuals
prefer work that has a moderate probability of success, ideally a 50% chance. They prefer
either to work alone or with other high achievers.
The n-pow person is 'authority motivated'. This driver produces a need to be
influential, effective and to make an impact. There is a strong need to lead and for their
ideas to prevail. There is also motivation and need towards increasing personal status and
prestige.

A person's need for power can be one of two types - personal and institutional.
Those who need personal power want to direct others, and this need often is percieved as
undesirable. Persons who need institutional power (also known as social power) want to
organize the efforts of others to further the goals of the organization. Managers with a
high need for institutional power tend to be more effective than those with a high need
for personal power.

The n-affil person is 'affiliation motivated', and has a need for friendly
relationships and is motivated towards interaction with other people. They need
harmonious relationships with other people and need to feel accepted by other people.
The affiliation driver produces motivation and need to be liked and held in popular
regard. These people are team players. They tend to conform to the norms of their work
group. High n-affil individuals prefer work that provides significant personal interaction.
They perform well in customer service and client interaction situations.
McClelland's acquired needs theory states that most people possess and exhibit a
combination of these characteristics. Some people exhibit a strong bias to a particular
motivational need, and this motivational or needs 'mix' consequently affects their
behaviour and working/managing style.

Mcclelland's achievement motivation theory suggests that a strong n-affil

'affiliation-motivation' undermines a manager's objectivity, because of their need to be
liked, and that this affects a manager's decision-making capability. A strong n-pow
'authority-motivation' will produce a determined work ethic and commitment to the
organisation, and while n-pow people are attracted to the leadership role, they may not
possess the required flexibility and people-centred skills.
McClelland's motivation theory argues that n-ach people with strong 'achievement
motivation' make the best leaders, although there can be a tendency to demand too much
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of their staff in the belief that they are all similarly and highly achievement-focused and
results driven, which of course most people are not.

This theory explains the concept of basic needs must be satisfied to the person to
increase the motivation of the employees. The needs based on need for achievement, need
for affiliation and need for power that explains the acquired and need of person fulfill the
experiences and preferences.

Process theories:

Process theories of motivation try to explain why behaviors are initiated. These
theories focus on the mechanism by which we choose a target, and the effort that we exert
to “hit” the target. There are four major process theories: (1) operant conditioning, (2)
equity, (3) goal, and (4) expectancy.

Operant conditioning theory of B.F. Skinner. 1953 is the simplest of the motivation
theories. It basically states that people will do those things for which they are rewarded
and will avoid doing things for which they are punished. This premise is sometimes called
the “law of effect.” Operant conditioning theory does offer greater insights than “reward
what you want and punish what you don’t,” and knowledge of its principles can lead to
effective management practices. Operant conditioning focuses on the learning of
voluntary behaviors.
The term operant conditioning indicates that learning results from our “operating on” the
environment. After we “operate on the environment” (that is, behave in a certain fashion),
consequences result. These consequences determine the likelihood of similar behavior in
the future. Learning occurs because we do something to the environment. The
environment then reacts to our action, and our subsequent behavior is influenced by this
reaction.

The cognitive process and thoughts of the person are in the minds of the individual
that influences the behavior. This theory is based on the cognitive dimension of the
individual that determined the beliefs about the behaviors of the person based on the
rewards and promotional placement.

Herzberg two-factor theory:

This theory, also called the Motivation-Hygiene Theory or the dual-factor theory,
was penned by Frederick Herzberg in 1959. According to this American psychologist,
who was very interested in people’s motivation and job satisfaction, came up with the
theory. He conducted his research by asking a group of people about their good and bad
experiences at work. He was surprised that the group answered questions about their good
experiences very differently from the ones about their bad experiences.

Based on this, he developed the theory that people’s job satisfaction depends on two kinds
of factors. Factors for satisfaction (motivators/satisfiers) and factors for dissatisfaction
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(hygiene factors/ dissatisfies). Performance, recognition, job status, responsibility and

opportunities for growth all fall under motivators/ satisfiers.

Hygiene factors/dissatisfies are about salary, secondary working conditions, the

relationship with colleagues, physical work place and the relationship between supervisor
and employee.

In his theory, Herzberg claims these factors function on the same plane. In other
words, satisfaction and dissatisfaction aren’t polar opposites. Taking away an employee’s
dissatisfaction – for example by offering a higher salary – doesn’t necessarily mean the
employee will then be satisfied. The employee is just no longer dissatisfied.
This theory derives that satisfaction and dissatisfaction towards the work performance of
the employees in the organization. When the person is satisfied and motivate then it will
increase the organizational performance and on the other hand, dissatisfaction of the
employee reduces the organizational performance.

Classical decision theory:

The theory derives the actions that how the mangers take the decisions in the
behaviors of the organization. Certain solutions are gives to the management and derive
the factors to reduce the issues in the organizations that might be come from behaviors
and attitudes of the employees.

Attribution theory:

Attribution theory is intended to help a person understand the causes of human

behavior, be it their own or someone else's. The basis of attribution theory is that people
want to know the reasons for the actions that they and others take; they want to attribute
causes to behaviors they see rather than assuming that these behaviors are random. This
allows people to assume some feeling of control over their own behaviors and over
situations. According to Fritz Heider (1896–1988) a Psychologist, he developed
attribution theory in his 1958 book The Psychology of Interpersonal Relations. Heider
proposed that what people perceived and believed about what they saw dictated how they
would act, even if their beliefs about what they perceived were invalid.

Heider's proposed theory of attribution was further developed by psychologist

Bernard Weiner and colleagues in the 1970s and 1980s, and this new theoretical
framework has been used primarily in current attribution research. A final development
to attribution theory was provided by psychologist Harold Kelley, who examined how
consistency, distinctiveness, and consensus could be used by individuals to establish the
validity of their perceptions.

Attributions are critical to management because perceived causes of behavior

may influence managers' and employees' judgments and actions. For instance, managers
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must often observe employee performance and make related judgments. If a leader
attributes an employee's poor performance to a lack of effort, then the outcome is likely
to be negative for that employee; he or she may receive a poor performance appraisal
rating or even be terminated from the job. Conversely, if a manager perceives that an
employee's poor performance is due to a lack of skill, the manager may assign the
employee to further training or provide more instruction or coaching. Making an
inaccurate judgment about the causes of poor performance can have negative
repercussions for the organization.

Attributions also may influence employee motivation. Employees who perceive

the cause of their success to be outside of their control may be reluctant to attempt new
tasks and may lose motivation to perform well in the workplace. Conversely, employees
who attribute their success to themselves are more likely to have high motivation for
work. Thus, understanding attributions that people make can have a strong effect on both
employee performance and leadership effectiveness.
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III. Interpretation
An organization is a complex, competitive world. It is only loosely held together.
In the study of human behavior in organizations, the conceptual foundation seems to
have received relatively little attention. The organizational behavior reflective of the
inner sensitivity of society, as well as individual’s personal interests. While
individuals are forced into a highly organized way of life, sometimes lack of unity in
an organization could be a virtue.

As a concept, human behavior in an organization is not new. There is, however,

a problem in understanding it. Some people put emphasis on human behavior, while
others on organization. Theories are important for the effective management of
organization. Organization theory pertains to almost any kind of inter-personal
relationship. Organizational behavior is the publicly observable activity of an
organization. It is easier to measure than to define.

Leading is a highly individual process. Leadership process is the actions and

interactions within and between the components of an organizational system.

Human behavior is essentially personal. Understanding the elements of theories

presents certain degree of difficulty. There are three critical elements of theories: (1)
theories are understandable statements; (2) theories make predictions; and (3)
theories deal with empirical events. The development of organization theory is the
evolution of management thought. Theories must continue to be developed to resolve
organizational problems of great magnitude and complexity. There are several criteria
for a good theory. In the development of management theory, they must not overlook
the human persons in the organization. At present, there is no single theory in
organization that is universally accepted. A serious drawback to the development of
theory in organization is the lack of adequate concept of formation. All things
considered, an effective leader must know and understand the major Human Behavior
in Organization theories.

In some ways, opportunities in the organization are limited. A leader should,

therefore, be committed in giving equality and opportunity to his/her people. Leader
must always look on the positive rather than the pessimistic side of things. He must
move forward by all means, creeping on all fours to create organizational goals no
matter how intangible they may seem to be.
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References:

Frederick, P. R. (2014). Human Behavior in Organization and its Role in

Management of Business. Global Journal of Finance and Management.

French, R., Rayner, C., Rees, G., & Rumbles, S. (2011). Human Behavior in
Organization. John Wiley & Sons.

Nelson, D., & Quick, J. (2012). Human Behavior in Organization Science, The
Real World, and You. Cengage Learning.