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ORGANIZATIONAL BEHAVIOR
Most organizations today are designed as a bureaucracy in which authority and responsibility are
arranged in a hierarchy. Within the hierarchy rules, policies, and procedures are uniformly and
impersonally applied to exert control over member behaviors.
Activity is organized within sub-units (bureaus, or departments) in which people perform specialized
functions such as manufacturing, sales, or accounting.
People who perform similar tasks are clustered together.
Organizing on Purpose
The purpose for which a group exists should be the foundation for everything its members do
including the choice of an appropriate way to organize.
The idea is to create a way of organizing that best suits the purpose to be accomplished, regardless of
the way in which other, dissimilar groups are organized.
The Design Process
Organization design begins with the creation of a strategy a set of decision guidelines by which
members will choose appropriate actions.
The strategy is derived from clear, concise statements of purpose, and vision, and from the
organizations basic philosophy.
Strategy unifies the intent of the organization and focuses members toward actions designed to
accomplish desired outcomes.
The strategy encourages actions that support the purpose and discourages those that do not.
Exercising Choice
Organizations are an invention of man. They are contrived social systems through which groups seek to
exert influence or achieve a stated purpose.
People choose to organize when they recognize that by acting alone they are limited in their ability to
achieve. We sense that by acting in concert we may overcome our individual limitations.




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Overview of Organizational Life Cycles

Organizational Life Cycles and Corresponding Typical Features
Organizations, as with most systems, go through life-cycles. Features of new organizations are usually
markedly different from older (usually larger) organizations. The following very useful table was
summarized Richard L. Daft's work and book, Organizational Theory and Design (West Publishing, St.
Paul, Minnesota, 1992), which, in turn, based information from Robert E. Quinn and Kim Cameron's
Organizational Life Cycles and Some Shifting Criteria of Effectiveness, Management Science, 29, (1983),
pp. 31-51.

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What's "Organizational Change?"
Typically, the concept of organizational change is in regard to organization-wide change, as opposed to
smaller changes such as adding a new person, modifying a program, etc. Examples of organization-wide
change might include a change in mission, restructuring operations (e.g., restructuring to self-managed
teams, layoffs, etc.), new technologies, mergers, major collaborations, "rightsizing", new programs such
as Total Quality Management, re-engineering, etc. Some experts refer to organizational transformation.
Often this term designates a fundamental and radical reorientation in the way the organization
operates.
What Provokes "Organizational Change"?
Change should not be done for the sake of change -- it's a strategy to accomplish some overall goal.
Usually organizational change is provoked by some major outside driving force, e.g., substantial cuts in
funding, address major new markets/clients, need for dramatic increases in productivity/services, etc.
Typically, organizations must undertake organization-wide change to evolve to a different level in their
life cycle, e.g., going from a highly reactive, entrepreneurial organization to more stable and planned
development. Transition to a new chief executive can provoke organization-wide change when his or her
new and unique personality pervades the entire organization.
Why is Organization-Wide Change Difficult to Accomplish?
Typically there are strong resistances to change. People are afraid of the unknown. Many people think
things are already just fine and don't understand the need for change. Many are inherently cynical about
change, particularly from reading about the notion of "change" as if it's a mantra. Many doubt there are
effective means to accomplish major organizational change. Often there are conflicting goals in the
organization, e.g., to increase resources to accomplish the change yet concurrently cut costs to remain
viable. Organization-wide change often goes against the very values held dear by members in the
organization, that is, the change may go against how members believe things should be done. That's
why much of organizational-change literature discusses needed changes in the culture of the
organization, including changes in members' values and beliefs and in the way they enact these values
and beliefs.
How Organization-Wide Change Is Best Carried Out?
Successful change must involve top management, including the board and chief executive. Usually
there's a champion who initially instigates the change by being visionary, persuasive and consistent. A
change agent role is usually responsible to translate the vision to a realistic plan and carry out the plan.
Change is usually best carried out as a team-wide effort. Communications about the change should be
frequent and with all organization members. To sustain change, the structures of the organization itself
should be modified, including strategic plans, policies and procedures. This change in the structures of
the organization typically involves an unfreezing, change and re-freezing process.
The best approaches to address resistances is through increased and sustained communications and
education. For example, the leader should meet with all managers and staff to explain reasons for the
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change, how it generally will be carried out and where others can go for additional information. A plan
should be developed and communicated. Plans do change. That's fine, but communicate that the plan
has changed and why. Forums should be held for organization members to express their ideas for the
plan. They should be able to express their concerns and frustrations as well.
Enterprise Change Management (ECM) Deployment Process
The picture below shows ECM Deployment Process, based on our experience and research with
organizations working to build their flexibility and durability by deploying change management across
their organization.

Approaches to Organizational Behavior
1. Human Resources Approach
The Human Resources Approach concerned with the growth and development of people toward higher
levels of competency creativity and fulfillment, because people are the central resource in any
organizations.
2. Contingency Approach
A contingency approach to organizational behavior implies that different situations require different
behavioral practices for effectiveness instead of following a traditional approach for all situations. Each
situation must be analyzed carefully to determine the significant variables that exist in order to establish
the more effective practices.
3. Productivity Approach
Productivity is the ratio that compares units of output with units of input. It is often measured in terms
of economic inputs and outputs. Productivity is considered to be improved, if more outputs can be
produced from the same amount of inputs.

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4. Systems Approach
A system is an interrelated part of an organization or a society that interacts with everyone related to
that organization or society and functions as a whole. Within the organization 'people' employ
'technology' in performing the 'task' that they are responsible for, while the 'structure' of the
organization serves as a basis for coordinating all their different activities. The systems view emphasizes
the interdependence of each of these elements within the organization, if the organization as a whole is
to function effectively.

Limitations of Organizational Behavior
Organizational behaviour cannot abolish conflict and frustration but can only reduce them. It is a
way to improve but not an absolute answer to problems.
It is only one of the many systems operating within a large social system.
People who lack system understanding may develop a 'behavioral basis', which gives them a
narrow view point, i.e., a tunnel vision that emphasizes on satisfying employee experiences
while overlooking the broader system of an organization in relation to all its public.
The law of diminishing returns also operates in the case of organizational behaviour. It states,
that at some point increase of a desirable practice produce declining returns and sometimes,
negative returns.
Future of Organizational Behavior
The growing interest in organizational behaviour stems from both a philosophical desire by many people
to create more humanistic work places and a practical need to design more productive work
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environments. As a result of these forces, organizational behaviour is now a part of the curriculum of
almost all coursesincluding engineering and medical.
Leadership tactics
There are two elements of leadership tactics. First, there are leadership tactics relates to getting
managers and leaders to fulfill their role as sponsors on the initiatives they lead. Sponsorship has been
identified as the number one contributor to success in each of the five benchmarking studies. To build
the competency to manage change, acting as effective sponsors must become second nature for senior
leaders. Research indicates that this role include actively and visibly participating on the project, building
the necessary coalition of leaders to support the initiative and communicating directly with employees
about the business reasons for the change.
Second, sponsorship is required to support the initiative called "building change management
competencies". Leadership commitment and support is needed across the organization to begin
applying change management on new initiatives and build the individual competencies at each level.
While the initiative may reside in HR or IT or the Project Management Office, a broad base of support is
needed to truly infuse change management into the business.
Project dimension
Change management is ultimately a tool that helps projects achieve their objectives by addressing the
human side of change. Change management competencies in an organization require that projects apply
change management. To be most effective, change management should be applied at the initiation of
the project, and the change management activities should be integrated into the existing project plan.
Specific tactics should be developed for attaching change management to the projects happening in the
organization.
Skills dimension
Skills is the dimension of the deployment strategy that many organizations default to, and sometimes
dont ever get beyond. Training in change management is a critical success factor in building the
organizational competency. However, it is only a part of the greater system you will use to transform
how your organization responds to change.
Structure dimension
Structure relates to the organizational footprint left by change management on the organization -
answering the question related to where change management lives within the organization. Many
organizations create a group or department that owns the common process, maintains the tool set and
works on the continuous improvement of the change management approach. This group may
coordinate training for others in the organization and track the progress.
Process dimension
The process element of the deployment strategy involves selecting a common process for managing
change. Just as important, a standard methodology allows an organization to develop common language
and common terminology.
Organizational synthesis
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During the 19th century, the development of new systems based on steam power and electricity created
a Second Industrial Revolution, which resulted in much more capital-intensive industries than had the
industrial revolution of the previous century. The mobilization of the capital necessary to exploit these
new systems required a larger number of workers and managers, and larger physical plants than ever
before. More particularly, the thesis of The Visible Hand is that, counter to other theses regarding how
capitalism functions, administrative structure and managerial coordination replaced Adam Smith's
"invisible hand" (market forces) as the core developmental and structuring impetus of modern business.
In the wake of this increase of industrial scale, three successful models of capitalism emerged, which
Chandler associated with the three leading countries of the period: Great Britain ("personal capitalism"),
the United States ("competitive capitalism") and Germany ("cooperative capitalism.")
Influence
Along with economist Oliver E. Williamson and historians Louis Galambos, Robert H. Wiebe, and Thomas
C. Cochran, Chandler was a leading historian of the organizational synthesis.
Chandler's work was somewhat ignored in history departments, but proved influential in business,
economics, and sociology.
In sociology, for example, prior to Chandler's research, some sociologists assumed there were no
differences between governmental, corporate, and nonprofit organizations. Chandler's focus on
corporations clearly demonstrated that there were differences, and this thesis has influenced
organizational sociologists' work since the late 1970s. It also motivated sociologists to investigate and
critique Chandler's work more closely, turning up instances in which Chandler assumed American
corporations acted for reasons of efficiency, when they actually operated in a context of politics or
conflict.
Organization Design
The Bureaucratic Model

Matrix Organization Model
Cyber-age Organizations
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"Enlightened" Organizations
Organizational Conflicts
If we want to understand the roots of conflict, we need to know what type of a conflict is present. At
least four types of conflict can be identified.
1. Goal Conflict
It can occur when a person or a group desires a different outcome than others do. This is simply a clash
between whose goals are going to be pursued.
2. Cognitive Conflict
It can result when one person or group hold ideas or options that are inconsistant with those of others.
3. Affective Conflict
This type of conflict emerges when one person's or group's feelings or emotions, attitude is
incompatible with those of others. This conflict is seen in situations where two individuals simply do not
get along with each other.
4. Behavior Conflict
It exist when one person or group does something that is unacceptable to others.
Organizational Theory
1. The Population-ecology Model
2. The Resource-dependence Model
3. The Rational-contingency Model
4. The Transaction-cost Model
5. The Institution Model
Models of Organizational Effectiveness
1. The System-resource Model
This model was developed by Yuchtman and Seashore (1967) who begin by noting that various
concerning organizational effectiveness could be ordered into a hierarchy. At the top of the hierarchy is
some ultimate criterion which can only be assessed over time. An example of such an alternate criterion
would be optimum use of opportunities and resources found in the evironment. In terms of the natural
selection model, the alternate criterion would be survival or death.
2. Goal Model
This model is both simple and complex. In its simple versions, effectiveness has been defined as the
"degree to which ( an organization) realizes its goals" (Etzioni, 1964). Complexity occurs as soon as it is
realized that most organizations have multiple and frequently conflicting goals. Structural differences in
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organizations is related to goal diversity and goal incompatibility. This may at a final stage lie outside the
organization and involve indirect pressure from general environment. Economic conditions can be
altered, technological innovations must be accomodated.
3. Participant-satisfaction Model
Barnard (1938) set the tone for this model with his analysis of organizations as co-operative, incentive
distributing devices. Individuals contributed their activities to organizations in return for incentives.
4. Social-function Model
According to Parsons (1960), all social systems must solve four basic problems:
Adaptation
Or the accommodating atmosphere of the system to the reality demands of the environment
coupled with the active transformation of external situation.
Goal Achievement
Or the defining of objectives in the mobilization of resources to obtain them.
Integration
Or establishing or organising the set of relations among the member units of the system that set
to co-ordinate and unify them into a single entity.
Latency
Or the maintainence overtime of the system's motivation and cultural patterns.