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BATANGAS STATE UNIVERSITY

Graduate School
DIFFERENT THEORIES AND MODELS OF
ORGANIZATIONAL BEHAVIOR

A Comprehensive Report
Presented to the Faculty of
College of Accountancy, Business, Economics
and International Hospitality Management
Graduate School
Batangas State University
Batangas City

In Partial Fulfillment
of the Requirements for
BA 504 – Human Behavior in Organization

Submitted to:

DR. NICKIE BOY A. MANALO

Professor

Submitted by:

MARICEL H. RANCE
MBA Student
DIFFERENT THEORIES AND MODELS OF ORGANIZATIONAL BEHAVIOR

Theory
• A systematic grouping of interdependent concepts and principles that
gives a framework to a significant area of knowledge.
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Graduate School
ü Homans: “in its lowest form of classification, is a set of pigeon
holes, a filing cabinet in which facts can accumulate. Nothing is more
lost than a loose fact.”

• The importance of theory is to provide a means of classifying significant

and pertinent management information and knowledge.

• While in designing an effective organizational structure, there are a

number of principles and concepts that are interrelated and that have a
predictive value for managers.

• Theories constitute the belief system and management orientations that,

consequently, affect the organization.

Douglas McGregor

• He developed two attitude profiles or assumptions concerning the basic

nature of people.

• These two divergent attitudes were termed THEORY X and THEORY Y.

• His real contribution was the suggestion that a leader’s attitude toward
human nature has a large influence on how the individual behaves as a
leader.

THEORY X ASSUMPTIONS
o A traditional set of assumptions about people in a work
environment.
o They are perceived to be relatively self centered, indifferent to
organizational needs and most often, resistant to change.

THEORY Y ASSUMPTIONS
o Implies a more humanistic and supportive approach to managing
people.
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BATANGAS STATE UNIVERSITY

Graduate School
o The primary role of management is to provide an organizational
climate in which the potential workers can be naturally released at
work.

v McGregor view that management had been ignoring these facts about
people. He argued that the Theory Y set of assumptions is more genuinely
representative of most workers.
TABLE 1

McGregor’s Theory X and Theory Y framework on

the assumptions about employees

THEORY X THEORY Y

The typical person dislikes work a * Work is as natural as play or rest

And will it, if possible * People are not inherently lazy.
They have become that way as
a result of experience.

The typical person lacks * People will exercise self direction and
responsibility; has little and self control in the service of
ambition objectives seeks to which they are committed.
security above all
Most people must be coerced, * People have potential. Under
proper controlled, threatened with punishment conditions, they learn to
accept and to get them to work. seek responsibility. They have
imagination, ingenuity, and
creativity that can be applied to
work.
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BATANGAS STATE UNIVERSITY

Graduate
Most people must be coerced,
, * People have potential. Under
controlled, threatened with
punishment to get them to work.
seek responsibility.
With these assumptions, the
managerial role is to coerce and
control potential workers.
School
proper conditions, they learn to
accept and conditions, they learn
to accept and
With these assumptions, the
managerial role is to develop in
employees and help them release
That potential toward common
objectives.

It may be noted that Theory X and Theory Y set of assumptions is more

truly representative of most people. Although there will always be
important differences among people, a few individuals may fit into
assumptions of the Theory X model.

IMPLICATIONS

Theory X
1. Direction and control through exercise of authority.
2. Organizational requirements take precedent over needs of members. In
return for rewards offered, the individual will accept external direction and
control.
3. We do not recognize the existence of potential in people and therefore,
there is no reason to devote time, effort and money to discover how to
realize full potential.

Theory Y
1. The creation of conditions such that members of the organization can
achieve their own goals bests by direction their effort toward the success
of the enterprise.
2. The organization will be more effective in achieving its objectives if
adjustments are made to the needs and goals of its members.
3. We are challenged to innovate, to discover new ways of organizing and
directing human effort.
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Herzberg’s Two Factor Theory Graduate School
• In 1950, theory about human motivation was developed by Frederick
Herzberg, extending the earlier theory of Maslow.

• Their findings were two distinct factors that influenced motivation:

1. Hygiene or maintenance factors

- Constitutes conditions in work. o Ex: better working conditions,
salary and effective supervision that make employees satisfied
but not necessarily motivated.
- It will only keep the workers from becoming dissatisfied.

2. Motivator or job content factors

- These are real motivators: achievement, responsibility and
recognition.
o Ex: providing better opportunities for development among
workers to experience them
- These factors will lead to the motivation of these workers.

TABLE 2

Herzberg’s Two-Factor Theory of Motivation

Motivators Satisfiers
Achievement Company policies & administration Recognition
Quality of supervision Relationship with supervisor
Advancement Peer relations
Work Challenge Pay
Possibility for development Job security
Responsibility Working conditions
Status

 The motivators are the job factors that are intrinsically motivating the
employees that constitute the most enduring sources of motivation in the work
environment. On the other hand, the satisfiers are important factors because
these create dissatisfaction, if not properly attended to by management.
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Graduate School
David C McClelland Theory  Classify people in their dominant need
for achievement, power, and affiliation.

 He viewed that successful entrepreneurs are persons with high need

for achievement.

 People who are high in need achievement are highly motivated to

strive for the satisfaction that is derived from accomplishing some
challenging tasks. Tasks for which there is a reasonable chance for
success and avoid those that are either too easy or too difficult.

 He popularized the term “Achievement Motivation” – which is to

describe an individual's drive to overcome challenges for advancement.

 He believes that these are the basic needs to drive people:

1. Need for achievement - a strong correlation between high
need for achievement and level of job performance and
success.

2. Need for power - a drive to influence people to conform with

certain situations.

3. Need for affiliation - an individual has a need to develop

warm, friendly, cordial and personal relationship.

4. Need for competence- an individual has a drive to strive for

quality
work.
Skinner Operant Theory

 Burrhaus Frederick Skinner- contested the theory that human needs are the
 determinant of human behavior.

 He believed that “the environment determines the individual behavior event if he



alters the environment.”

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Graduate School
 The workers can be motivated by properly creating the work
environment and providing rewards or stimulus for desirable worker’s
performance.

 It is the external environment that influences the behavior people

exhibit rather than their external needs, wants, and desires.

 In this theory, rewards or any positive reinforces of a certain behavior

are found to be more powerful than the negative and neutral reinforces,
even if both sets of reinforces may be used.

 Examples of reward / positive reinforces:

1. Participation in decision-making
2. Important assignments
3. Appealing compensation
4. Other incentives and benefits

 According to Skinner, “Usually, the ultimate reinforcement is similar

to that of prestige or esteem.”

• Negative reinforces, for instance, suspension from work.

• Neutral reinforces like transfer of workplace may also be utilized to

discourage unwanted behavior and encourage favourable worker
behavior.

 Positive reinforcement in modifying motivational behaviors of workers:

1. Do not reward equally.
2. Failure to reinforce may encourage poor subsequent performance.
3. Inform workers about what they can do to get reinforcement.
4. Tell workers when and what they are doing wrong.
5. Do not punish a subordinate in front of other workers.
6. Be fair.
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Graduate School
 Since the Philippines is composed of various kinds of ethnic groups,
cultural mores, dialects, regional peculiarities, religious beliefs and value
system, it is difficult to say what kind of behavioural style or attitudinal
orientation will best fit the prevailing environment of a Filipino organization.

Expectancy Theory
• Equates motivation with the product of valence and expectancy
o Valence, i.e., how much an individual desires something. o
Expectancy, i.e., the probability that a particular action will lead
to the desired thing.

• The assumption of these models is that desire as a strong

feeling to start any effort that impels an individual to the
attainment or possession of something.

• The expectancy model implies that, through experience, people

learn the kind of rewards (outcomes) they value more highly
than others.

 Most familiar model under this theory is that of Victor H. Vroom

Level of Motivation = EP x PO x Valence

Where EP = Effort Performance Expectancy

• e.g., the manager is inclined to believe that increased marketing
effort is likely to yield increases in company sales.
PO = Performance Outcome Expectancy
• e.g., the manager is inclined to believe that increased sales may
result in his promotion.
Valence = Value or preference placed on an outcome
• e.g., the manager is inclined to place great value on promotion;
hence, assign a positive value on it.

 Expectancy refers to the degree of an individual’s anticipatory belief

that his specific action will certainly end in a particular result or outcome.
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BATANGAS STATE UNIVERSITY

Graduate School
 The expectancy model has some limitations, despite its general
appeal. It needs further testing to establish a broad base of evidence for
support. The intrinsic and extrinsic rewards need to be considered. 
Intrinsic Motivation
- Refers to motivation that comes from inside an individual
rather than from any external or outside rewards, such as
money or hubby.

 Extrinsic Motivation
- Refers to motivation that comes from outside an individual.
Ex. an extrinsically motivated person who dislikes math may work
hard on a math equation because the reward would be a good
grade.

Advantages of the Expectancy Model

⇒ Help manager think about mental processes through which
motivation as a human behavior occurs.

⇒ Workers are thinking individuals whose beliefs, orientation,

perceptions, and probability estimates virtually influence their
behavior.

⇒ Encourages managers to design a climate conducive that will

stimulate appropriate worker behavior.

Weaknesses of the Expectancy Model

⇒ It need further testing to establish a broad base of evidence for
support.

⇒ The intrinsic and extrinsic rewards need to consider.

⇒ Reliable measures of valence, expectancy and instrumentality need to

be developed.
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Graduate School
⇒ The expectancy model also needs to be more complete while still
remaining practical enough for manager use.

⇒ Some manager don’t have such time or resources to use complex

motivational system on the job

Traditional Theory of Motivation

• Evolved from the work of Frederick W. Taylor
• He emphasized using science, creating groups harmony and cooperation,
achieving maximum output and developing workers.
• He designed a system whereby a worker was compensated according to
the individual’s production.
• The traditional theory of motivation is based on the assumption that money
is the primary motivation of increasing the productivity level of
performance of workers – that if the reward is great enough, workers will
naturally produce more.

Content Theory
• Focuses on the content or nature of items that motivate an individual.

• It relates to the individual’s inner self and how that individual’s internal
state of needs determine behavior.

• One major difficulty with this model of motivation is that the needs of
people are not subject to observation by managers or to accurate
measurement for monitoring purposes.

Carrot & Stick Theory

• Reward and punishment are still considered strong motivators.
Example:
1. Carrot - is money in the form of pay or bonuses.
2. Stick - is in the form of fear. Fear of loss of job, loss of income,
reduction of bonus, demotion and some other penalty.

Different Models of Organizational Behavior

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Graduate School
 These models constitute the belief system that dominates
management’s thought in running the organization. It is in the context that
managers recognize the nature, significance, and effectiveness of the
models they employ.

1. Supportive Model = depends on leadership instead of power or

money. Chance given. Basis of model is leadership.

2. Collegial Model = characterized by the collective responsibility

shared by each of the members of the organization; body of people
having a common purpose. Basis of model is partnership.

3. Custodial Model = depends largely on economic resources. This

leads to workers’ dependence on the organization. Basis of model
is Economic Resources.

4. Autocratic Model = Depends on the power & authority. If workers

do not obey orders, he/she will be punished. Basis of model is
Power.
(Flourished during industrial revolution.)

Effectiveness of 4 Models

• They are subject to evolutionary change that affects workers.

• More systematic and organized.
• Provides courses of action for a particular problem concerning
organizational behavior.
• Outlooks more adequate.
• The organization will continue to survive and attain the desired objectives.
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Graduate School

TABLE 3
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References: Graduate School
http://hubeor.blogspot.com/2010/10/lesson-1-organizational-system-
and_23.html?m=1