MGT ORGANIZATIONAL BEHAVIOR Dr. K. A. S. P. Kaluarachchi Senior Lecturer Department of Management and Organization Studies Faculty of Management and Finance University of Colombo 1

At the end of this lesson, you will be able to:  Identify two ends of managerial behavior  Identify the characteristics of Z organization  Describe four types of management systems  Know how to manage people effectively  Identify the Golden Rule Management 2 10/6/2015

Theory X and Theory Y Management Theory X represents the carrot-and-stick assumptions on employees  the average person is lazy and dislike to work  most people must be coerced, controlled, directed and threatened with punishment  people avoid responsibility, prefers to be directed, lacks ambition and values security  motivation occurs at the physiological and security levels 3 10/6/2015

The central principle of Theory Y is the integration of individual and organizational goals:  for most people work is as natural as play or rest  people are self-directed, self-committed, and self-controlled  given the right conditions, the average worker seeks responsibility  their capacity for creativity problem-solving is distributed  motivation occurs as affiliation, esteem, and self-actualization 4 10/6/2015

The characteristics of a Theory Z organization are described as:  long-term employment  relatively slow process of evaluation and promotion  development of company-specific skills, and moderately specialized career path  implicit, informal control mechanisms supported by explicit, formal measures  participative decision-making by consensus  collective decision-making but individual ultimate responsibility  broad concern for the welfare of subordinates and co-workers as a natural part of a working relationship, and informal relationships among people 5 10/6/2015

 System 1 – Exploitive authoritative Decisions are imposed on subordinates, motivation is based on threats, there is very little teamwork or communication; responsibility is centered at the top of the organizational hierarchy  System 2 – Benevolent authoritative Motivation is based on a system of rewards, only limited teamwork or communication; responsibility at managerial levels but not at lower levels of the organizational hierarchy 6 10/6/2015

 System 3 – Consultative Leadership involves some trust in subordinates, motivation is based on rewards but also some involvement, a fair degree of teamwork, and communication takes place vertically and horizontally; responsibility for achieving the organizational goals is spread more widely throughout the hierarchy  System 4 – Participative Leadership involves trust and confidence in subordinates, motivation is based on rewards for achievement of agreed goals, participation and a high degree of teamwork and communication; responsibility for achieving the organizational goals is widespread throughout the hierarchy 7 10/6/2015

 Consideration, respect and trust The majority of staff will respond constructively if treated with consideration and respect, and as responsible individuals who wish to serve the organization well  Recognition and credit Positive feedback on good performance is a strong motivator and staff are then more likely to accept and respond to constructive criticism. If staff are to take a pride in their work they need to know when they are performing well and to receive appropriate recognition for their efforts 8 10/6/2015

 Involvement and availability Involve with the work of the staff and understand the difficulties of their duties and responsibilities. Ensure an open flow of communications and encourage participation and feedback  Fair and equitable treatment Treat people fairly but according to merit. Ensure justice in treatment, equitable systems of motivation and rewards, clear human resource management policies and procedures, avoidance of discrimination, and full observance of all laws and codes of conduct relating to employment 9 10/6/2015

 Positive action on an individual basis Treat members of staff as individuals. Deal with individual situations on an individual basis and avoid the ‘blanket’ approach. For example, it has come to the manager’s attention that a couple of members of staff have failed to provide some urgently requested information on time  Emphasis on end-results Place emphasis on end-results and levels of actual performance and achievement rather than on compliance with detailed instructions, rules or regulations 10 10/6/2015

 Staff and customer satisfaction Supportive and harmonious working relationships are more likely to create a working environment that results in high levels of both staff and consumer satisfaction  Positive action on an individual basis Treat members of staff as individuals. Deal with individual situations on an individual basis and avoid the ‘blanket’ approach. For example, it has come to the manager’s attention that a couple of members of staff have failed to provide some urgently requested information on time 11 10/6/2015

The philosophy of ‘Golden Rule Management’ is applied in such ways as:  Treat people fairly but according to merit  Make the other person feel important  Motivate people through giving praise  Encourage feedback and don’t undervalue the ability to listen  Sandwich every bit of criticism between two layers of heavy praise  An open-door philosophy  Help other people get what they want  Never hide behind policy 12 10/6/2015

Thank you very much! 13 10/6/2015