Models of OB

OB System
Organizations achieve their goals by creating, communicating and operating an OB system. These systems exist in every organization in various forms.
The primary purpose of OB system is to identify and then manipulates the major human and organizational variables that affect the results organizations are trying to achieve.

Managements Philosophy. Values. Vision. Mission. Goals Social Environment

Formal Org

Organizational culture

Informal org

Leadership. Communication. Group Dynamics

Quality of Work Life (QWL) Motivation Out comes: Performance Employee Satisfaction Personal Growth & Development

Elements of OB system
OB system based on the philosophy and goals of those who join together to create manage and control the org. The philosophy of OB originated from two sources1. Fact premises 2. Value premises

Fact premises represents the descriptive view of how the world behaves. It is acquired through direct and indirect lifelong learning. It is based on the philosophy of Law of gravity. The main sources of fact premises areBehavioral science research Personal experience of individuals Value premises represent individuals view of the desirability of certain goals and activities.

Other components of OB systems are-

Vision Goals Integration Organizational culture Social environment Motivation

Vision represents a challenging portrait of what the organizations and its members can be. Vision is established by the managers and then communicated to the employees. Goals are relatively concrete formulations of achievements the organizations are aiming for within set period of time. There must be a substantial integration among the psychological, social and economic goals. On the other hand there must be an integration among that goals that prevails in the individual, group and individual level.

Organizational culture consists of formal and informal relationships. Org must maintain good relationship with other elements of social environment. The result of an effective OB system is motivation. Managers combined employees skills and abilities for the achievement of performance goal.

Models of OB
McGregors managerial paradigm
The Autocratic Model The Custodial Model The Supportive Model The Collegial Model The System Model

Mcgragors Managerial Paradigm

Developed by Douglas McGregor in 1957. He said that mgt action flow directly from the theory of human behavior. Mgt human resource policies, decision-making styles, operating practices etc. flow from the key assumption of human behavior. It containsTheory X Theory Y

Theory X contains certain traditional set of assumptions. The assumptions about people areMost people dislike work and try to avoid it
They inclined to restrict work output, having little ambition and avoiding responsibility They are relatively self-centered, indifferent to organizational need and resistant to change

Theory Y implies a more humanistic and supportive approach. It assumes thatWork is natural
People are not inherently lazy. The need proper environment to release their potential People will exercise self direction and self control in achieving the objective in which they are committed People have potential. Under proper conditions they learn to accept and seek responsibility

According to Joel Barker managerial paradigm helps us in a certain waysThey influence managerial perceptions of the world They define ones boundaries and provide prescriptions for how to behave They encourage resistance to change They consciously or unconsciously affect ones behavior They provide alternative ways of viewing the world and solving problem

Theory X management

staff

Theory X - authoritarian, repressive style. Tight control, no development. Produces limited, depressed culture.

Theory Y - liberating and developmental. Control, achievement and continuous improvement achieved by enabling, empowering and giving responsibility.

staff

management

THEORY Z
Theory Z was developed by William Ouchi, in his book 1981 'Theory Z: How American management can Meet the Japanese Challenge' Ouchi describes the art of Japanese management and shows how it can be adapted to American companies. Theory Z essentially advocates a combination of all that's best about theory Y and modern Japanese management, which places a large amount of freedom and trust with workers, and assumes that workers have a strong loyalty and interest in teamworking and the organization.

Characteristics of the Theory Z

Long-term employment and job security Collective responsibility Implicit, informal control with explicit, formalized measures Collective decision-making Slow evaluation and promotion Moderately specialized careers Concern for a total person, including their family

Ouchi identify 3 types of organization pursuing 3 types of mgt practice on the basis of 7 dimensionMgt Dimensions
1. Nature of job 2. Decision Making 3.Responsibility 4.Career Path 5.Control 6.Career Advancement

Typical Japanese
Life time Group Collective Broad Informal Slow

Typical American
Temporary Individual Individual Specific Formal Fast Narrow concern

Theory Z
Long time Group Individual Broad Less Formal Moderate Concern to the whole person

7.Concern for People Holistic concern

Autocratic Model:
In this model managerial orientation is-Formal and official authority

-Managers exercise power

-Mgt believes that it knows is right and employees obligation is to follow it -Employees have to be directed -Tight control over employees at work

Employee orientation is obedience to a boss not respect for a manager. They are dependent on their boss.
Its principal weakness is high human costs.

Custodial Model
This model depends on economic resources. Managerial orientation is toward money to pay wages and benefits. In this case employees are depending on the organization rather on the boss.

Employees working in a custodial environment become psychologically preoccupied with their economic rewards and benefits.

To satisfy the security needs of employees, a number of companies began welfare program in 1890s and 1900s known as paternalism. This model shows its emphasis on material rewards, security and organizational dependence.

Supportive Model
This model depends on leadership instead of power or money. Mgt provides a climate to help employees grow and accomplish in the interest of the organization the things of which they are capable.
Management orientation is to support the employees in job performance. They support the feeling of participation and task involvement in the organization. Employees are strongly motivated because their status and recognition needs are better met.

Collegial Model
Collegial model depends on managements building a feeling of partnership with employees.
The managerial orientation is toward teamwork. Their role is as coach who builds a better team. Employees orientation to this model is self discipline.

System Model
Managers try to convey the feeling of importance to the employees. The role of a manager becomes one of the facilitating employees accomplishment through a variety of actions.
On the other hand employees experience a sance of psychological ownership for the organization. They reach a state of selfmotivation. Their highest order need is met.

Dimensions
Basis of Model

Autocratic
Power

Custodial
Economic resource

Supportive
Leadership

Collegial
Partnership

System
Trust,
Communit y

meaning Managerial Orientation Employee Orientation Employee psychological result Employee needs meets Performance Result Authority Money Support Teamwork Caring

Obedience

Security & Benefit

Dependence

Job performance Participation

Responsible

behavior

Psycholo gical Self

Ownership

Dependence on boss Subsistence

on org
Security

Self Discipline Self

actualization

Motivation

Status & Recognition Awakened Drives

Wide Range Passion & Commitm ent

Minimum

Passive
Cooperation

Moderate enthusiasm

Factors considering while choosing a model

Evolving Usage
Relations of models to human need Increasing use of some models

Contingent use of all models

Managerial flexibility

Managers also consider-

Components of OB system Environmental conditions Existing conditions of the organizations