HUMAN BEHAVIOR IN ORGANIZATION

Early Theories of Motivation

• Maslow’s Hierarchy of Needs (1943) – Abraham Maslow proposed that human needs are
arranged in a hierarchy, starting with physiological needs (food, water) and progressing to
safety, love/belonging, esteem, and self-actualization. People are motivated to fulfill lower-
level needs before moving to higher-level ones.

• Herzberg’s Two-Factor Theory (1959) – Frederick Herzberg identified two factors

influencing motivation in the workplace:
-Hygiene factors (salary, job security, working conditions) prevent dissatisfaction but do not
necessarily motivate.
- Motivators (achievement, recognition, responsibility) enhance job satisfaction and motivation.
• McGregor’s Theory X and Theory Y (1960) – Douglas McGregor suggested two
contrasting views of employees:
-Theory X assumes employees dislike work and need strict supervision.
-Theory Y assumes employees are self-motivated and thrive in a supportive environment.
• McClelland’s Theory of Needs (1961) – David McClelland identified three key
motivators:
• Need for Achievement (nAch) – Desire to accomplish goals.
• Need for Affiliation (nAff) – Desire for social relationships.
• Need for Power (nPow) – Desire to influence others.

Integrating Contemporary Theories of Motivation

Self-determination theory
Self-determination theory of motivation and argues that people often seek control of their actions.
Goal setting theory
Goal setting theory is based on the view that challenging objectives should aid and improve
workplace performance. In this theory, it is assumed that an employee is committed to the firm’s
goals and desires to make a positive contribution. It is important that the set goals are also
perceived as achievable.
Self-efficacy theory
Self-efficacy theory is based upon an employee’s view about their ability to perform the tasks of
their job role. This theory is also known as social learning theory or social cognitive theory.
If an employee has high self-efficacy, then they will be more confident and have a greater chance
of success. In more challenging situations, employees with low self-efficacy will often have a
reduction in their job performance levels.
According to the Albert Bandura, self-efficacy can be increased by four ways such as:
1. Vicarious modeling
2. Enactive mastery
3. Arousal
4. Verbal persuasion
Reinforcement theory
Reinforcement theory refers that to behavior or an attitude is a function of its outcomes or
consequences. That is, the theory suggests that the outcomes of behavior (positive or negative)
will either reinforce (or modify if a negative outcome) ongoing behavior.
Equity theory
Equity theory is where employees compare their job inputs and outputs with others in the
organization – primarily to reduce the perceived inequities.
If the employees find inequities, they seek to resolve them by:
• Changing the inputs
• Changing the outcomes
• Distorting perceptions of themselves
• Distorting perceptions of others
• Quitting their job
Expectancy theory
Expectancy theory is the tendency to act in a particular way based upon a preconceived expectation
of the likely outcome.

INVOLVEMENT USING REWARDS TO MOTIVATE EMPLOYEES

Reward - a method of offering incentives or benefits to individuals or groups in exchange for

specific actions, behaviors, or achievements.

Why Rewards Matter in Motivation

1. Reinforcement of Desired Behaviors – The process of encouraging employees to repeat

positive behaviors by rewarding their efforts and achievements.

2. Increased Motivation and Engagement – When employees feel appreciated, they become
more invested in their work and contribute more actively.

3. Improved Morale and Job Satisfaction – Employees feel happier and more fulfilled in their
roles when they receive recognition and rewards.

4. Enhanced Performance – Motivated employees put in more effort, leading to higher

productivity and better results.

5. Reduced Turnover – Employees who feel valued are more likely to stay with their employer,
reducing the cost and disruption of hiring new staff.

TYPES OF REWARDS

Monetary Rewards (Financial incentives given to employees)

1. Bonuses – Extra payments given to employees for meeting specific goals or exceptional
performance.

2. Salary Increases – Permanent raises in an employee’s salary as a reward for good

performance.

3. Profit Sharing – A system where employees receive a share of the company's profits.
4. Commissions – Additional earnings based on achieving sales or performance targets.

Non-Monetary Rewards (Non-financial incentives that improve job satisfaction)

1. Recognition and Praise – Public or private acknowledgment of an employee’s efforts and

achievements.

2. Opportunities for Growth and Development – Training, mentoring, or career advancement

opportunities that help employees improve their skills.

3. Flexible Work Arrangements – Options such as remote work, flexible hours, or compressed
workweeks that allow employees to balance work and personal life.

4. Time Off – Extra vacation days or personal leave given as a reward.

5. Employee Perks – Additional benefits such as gym memberships, tuition reimbursement, or

free meals.

Group
A group is a collection of two or more individuals who interact, share common goals, and influence
each other. Groups play a crucial role in organizations by improving collaboration, decision-
making, and task efficiency.

Types of Groups
Formal Groups – Created by an organization to achieve specific objectives.
• Command Groups: Permanent, structured groups (e.g., departments or teams led by
managers).
• Task Groups: Temporary, formed to complete specific projects.
Informal Groups – Naturally formed based on personal relationships or common interests.
• Friendship Groups: Based on social connections (e.g., employees who socialize outside
work)
• Interest Groups: Formed around common concerns or activities (e.g., workers advocating
for workplace improvements).

Group Behavior
Group behavior refers to the ways in which individuals interact, communicate, and work together
within a group. It includes norms, roles, leadership, decision-making, and conflict resolution.
Understanding group behavior helps organizations foster teamwork, improve motivation, and
enhance overall productivity.

Stages of Group Development

• Forming: The forming stage occurs when team members first come together as a team.
• Storming: During the storming stage, teams discover teamwork is more difficult than they
expected.
• Norming: The norming stage begins as the team moves beyond the storming stage and
begins to function as a team.
• Performing: When a team reaches the performing stage, it is functioning as a high-
performance team.
• Adjourning: Breaking up the team when the required task is complete.

Team
It is a group of individuals (human or non-human) working together to achieve their goal. As
defined by Professor Leigh Thompson of the Kellogg School of Management, "a team is a group
of people who are interdependent with respect to information, resources, knowledge and skills
and who seek to combine their efforts to achieve a common goal”
Types of Teams

Problem-Solving Team-Teams up from five up to twelve workers from the same department
that get together for a few hours every week to talk about methods to make the workplace better
in terms of quality, efficiency, and environment
Self-Manage Work Teams are groups of ten to fifteen individuals who assume the duties of
their previous managers.
Cross-Functional Teams-are groups of employees from various job areas who are roughly at
the same organizational level and who collaborate to complete a task.
Virtual Teams-Computer technology is used by virtual teams to connect geographically
separated people to accomplish a shared objective.
Multi Team System -It is a grouping of two or more interdependent teams working toward a
common goal.

COMMUNICATION
Communication is the process of sharing information, including emotions and thoughts, between
individuals. The main aim of communication is for the receiver to understand the message of the
sender just as it was meant to be understood. However, this process can be influenced by various
factors that can either make the message clearer or more confusing.

FUNCTIONS OF COMMUNICATION
Communication serves four major functions within a group or organization. These functions
consist of the following:
1. Information function– The information function in communication involves conveying facts,
knowledge, or data to help the audience understand a topic, issue, or technique more clearly. It's
a core function where the sender aims to inform, and the receiver strives to understand.
2. Motivation Function– This function is about using language and other forms of
communication to inspire, encourage, and influence others to act and achieve goals.
3. Control function– This function refers to the ability to use language, gestures, and other
forms of communication to manage individual or group activities, influence behavior, and
maintain order.
4. Emotive function– This function involves expressing and understanding feelings, building
relationships, and fostering empathy through verbal and nonverbal cues, ultimately impacting
interpersonal interactions and overall well-being.

PROCESS OF COMMUNICATION
Communication is a two-way process in which a sender reaches a receiver with a message. There
is a
need for people in organizations to have knowledge of the communication process, and it is the
first step to make it effective. There are six components of effective communication. They are
the following:
1. Sender– A communication source or sender is a person who sends a message which could be
spoken, written, in sign language, or nonverbal to another person or group of persons.
2. Message– The message is a purpose or an idea to be conveyed in a communication event. The
message is an actual physical product because of encoding. Thus, when speaking, the speech is
the message; when writing, the written document is the message; when making gestures, the
movements of the arms and the expressions on faces are the message.
The message received can be influenced by the following factors:
•clarity of the message
•alertness of the receiver
•complexity and length of the message
•how the information is organized
3. Channel– A communication channel is the medium or method used to deliver a message from
a sender to a receiver. It consists of various types which are follows:
•face-to-face
•phone calls
•email
•letters
•bulletins
4. Receiver– A communication receiver is the individual or group of individuals who receives
and decodes a message, playing a crucial role in understanding and responding to the sender's
communication.
5. Feedback– Communication feedback involves the response given by the receiver to the
sender, indicating understanding or lack thereof, and can be verbal or nonverbal. It's a crucial
element for effective communication, allowing adjustments and ensuring messages are received
as intended.
6. Environment– The environment refers to the circumstances in which messages are
transmitted and received.
•The Noise refers to anything that disrupts communication, including the attitude and emotions
of the receiver. Noise includes loud music, the feeling about a sick relative, children playing in
the background, and many others.

DIRECTIONS OF COMMUNICATION
The flow of communication in organization takes different directions. It consists of the
following:
1. Downward Communication– It refers to message flows from higher level to lower levels.
Their purposes are:
•to give instructions
•to provide information about policies and procedures
•to give feedback about performances
2. Upward communication– It refers to messages from persons in lower-level positions to
person in higher positions. Its purposes are:
•to provide feedback to higher-ups
•to inform higher-ups of progress towards goals
•to relay current problems
3. Horizontal communication– It refers to messages sent to individuals or groups from another
of the same organizational level or position. Its purposes are:
•to coordinate activities between departments
•to persuade others at the same level of organization
•to pass on information about activities or feelings

ORGANIZATIONAL COMMUNICATION

Formal and Informal Communication

1. Formal Communication– It follows official channels and established procedures within an
organization.
•structured and often written
•follows a specific hierarchy or chain of command
•used for official announcements, policies, and procedures
2. Informal Communication– Also called the” grapevine”. It occurs outside of formal channels,
often through casual conversations and interactions.
•less structured and more spontaneous
•can flow in any direction, not just through the chain of command
•used for quick updates, social interactions, and building relationships

Internal and External Communications

1. Internal Communication– The exchange of information and messages within a business,
between employees, departments, and management.
2. External Communication– The exchange of information and messages between a business
and its external stakeholders, such as customers, suppliers, investors, and the public.

INTERPERSONAL COMMUNICATION
People in organizations transfer meaning between and among each other using any or all the
three basic methods which consist of the following:
1. Verbal Communications– A major means of sending messages. It includes one-on-one
meetings, speeches, grapevine, telephone, departmental or interdepartmental meetings,
presentations, and the like.
2. Written Communication– It includes memos, noticeboards, and letters to staff, emails, faxes,
internal newspaper, and instant messaging.
3. Nonverbal Communication– It takes place through facial expressions, body movements, eye
contact, and other physical gestures that are referred to as nonverbal communication. This type
of communication reveals what the sender really means or thinks.

COMMUNICATION CHANNELS
Communication channels are the way we transmit messages. When choosing a communication
channel, consider the audience, message type, purpose, urgency, required feedback, and cost.
1.Face-to-Face– Useful when you need to build trust and rapport, discuss sensitive information,
resolve conflicts, or convey complex ideas, as it allows for immediate feedback and nonverbal
cues to be observed.
2.Phone Calls– For urgent matters, complex issues requiring immediate feedback, sensitive or
emotional topics, and resolving conflicts when a quick, real-time interaction is needed.
3.Email– Ideal when you need a written record, are sharing content or files, need to reach
multiple people, or when the information isn't time-sensitive, but is important to convey in a
structured and professional manner.
4.Letters– For a formal communication, permanent record of a message, or situations where a
detailed explanation or supporting data is necessary.
5.Bulletins– To share information widely, disseminate announcements, policies, procedures, and
small reports to a large group within an organization.

BARRIERS TO EFFECTIVE COMMUNICATION

Communication is not just about transferring messages from one person to another. In
organizations, communication must be made effective.
There are times when the receiver is not able to properly receive or understand the message as
intended by the sender. This is due to a variety of barriers that may impede the communication
effort. These barriers consist of the following:
1. Filtering– refers to a sender's purposely manipulating information so the receiver will see it
more favorably. Basically, the sender filters the information or message.
2. Selective Perception– receivers selectively see and hear messages based on their needs,
motivations, experience, background, and other personal characteristics.
3. Information Overload– refers to the condition in which information inflow exceeds an
individual’s processing capacity. When this happens, the person is no longer able to understand
clearly whatever information is sent to him.
4. Emotions– the receiver’s feelings affect his ability to understand any message sent to him. He
cannot receive a message as clearly as when he is not angry, excited, or afraid.
5. Language– words do not always mean the same thing to different people. This poses a barrier
to communication.
6. Communication Apprehension– refers to the undue tension and anxiety about oral
communication, written communication, or both. There are people who find it extremely difficult
to talk with others face-to-face or even carry out a telephone conversation.
7. Absence of Feedback– feedback is an essential component of effective communication.
When there's absence of feedback, the sender will not know if the message was understood or
received at all.
8. Physical Separation– refers to interferences to effective communication occurring in the
environment where the communication is undertaken, like distance or walls.
9. Lack of Credibility of the Sender– depending on the credibility of the sender, messages can
get through the channel to the receiver. If the sender has low credibility, the message, even if it
gets through, will likely be ignored.

BEHAVIORAL THEORIES
• Behavior leadership theory focuses on how leaders conduct themselves with tasks and
people. It suggests successful leaders learn and adopt specific behaviors rather than have
certain innate traits.
• This theory enables individuals to practice learned behaviors to direct their actions to
become the leaders they want to become.
• A core part of this theory is that it is flexible and allows leaders to adapt to various
circumstances to better predict the outcomes of their behavior.
Types Of Behavioral Leadership
• People-Oriented Leaders: These leaders excel at building relationships and promoting
team harmony. They are known for their strong focus on interpersonal relationships. These
leaders excel in active listening, empathy, and open communication.
• Task-Oriented Leaders: Emerging from the Industrial Revolution's demand for efficiency,
these leaders excel at setting clear goals, creating action plans, and closely monitoring
progress. These leaders are highly organized and often skilled at problem-solving.
• Indifferent Leaders: Often associated with decreased motivation and performance,
indifferent leaders are disengaged and lack enthusiasm, involvement, or concern for team
or organizational goals.
• Sound Leaders: Recognized for balancing productivity and employee satisfaction while
fostering positive relationships and collaboration within their teams. Sound leaders strike
a balance between task-oriented and people-oriented behaviors. They are goal-driven but
also recognize the importance of building positive relationships within the team.
• Dictatorial Leaders: Known for their authoritative approach, these leaders make decisions
unilaterally and expect strict adherence. Their style is effective in urgent situations
requiring decisive action.
The Behavioral Leadership Styles
 1. Directive Leadership - Directive leaders provide clarity and coordinate work, informing
their team members of what is expected of them. Directive leaders tell their team members
what to do, how to do it, and when to do it.

2. Supportive Leadership - Supportive leadership is when leaders improve the employee

experience by making the lives of their employees more pleasant. Supportive leaders are
approachable, empathetic, friendly, and maintain an open-door policy to ensure healthy
communication and a culture of feedback.

3. Participative Leadership - Participative leadership, sometimes known as democratic

leadership, involves employees in the decision-making process.

4. Achievement-Oriented Leadership - In achievement-oriented leadership, leaders foster

growth by setting goals for employees that are challenging and encouraging employees to
cultivate an attitude of continuous improvement.

Foundations of Organization Structure

The foundation of an organization's structure is built on a few key principles that shape how
work gets done and how people interact. These include:

Work specialization – dividing tasks so individuals can focus on specific roles and become more
skilled at them.

Departmentalization – grouping related tasks and roles together to improve efficiency and
communication.

Chain of command – establishing clear lines of authority so employees know who they report to.

Span of control – determining how many people a manager oversees, which affects workload
and supervision.

Centralization vs. decentralization – deciding whether decisions are made at the top or spread
throughout the organization.

Formalization – setting rules and procedures to standardize how work is done.

Common Organizational Designs

1. Flat Structure: A structure characterized by few or no levels of middle management between

staff and executives. It encourages open communication and quicker decision-making since
employees have more freedom. Yet, managing may become tricky as the organization grows due
to ambiguity in who is leading.

2. Hierarchical Structure: A traditional structure characterized by clearly defined levels of

authority from top management to lower levels. It creates a strong chain of command and
increases accountability, but decision-making can become slow, and communication can be
challenged due to organizational size.

3. Functional Structure: This structure sorts of employees according to their role or functions
(i.e., marketing, finance, operations). This promotes specialization but can create issues with
inter-department communication and encourage silo thinking.

4. Divisional Structure: Structural formation whereby the company is divided into semi-
autonomous divisions by product line, geography, or market. Each division functions as its own
local entity but may duplicate efforts and resources across the entire organization.
5. Matrix Structure: Integrating both the functional and divisional aspects creates dual reporting
relationships by which employees report to a functional manager as well as to a project manager.
This arrangement enhances collaboration but creates confusion and conflict over decision-
making.

6. Network Structure: Mainly seeks to outsource and thus enter partnerships such that the core
organization functions internally only those which are considered essential while others are to be
handled by external partners. Offers flexibility and cost-efficiency but may give less control over
external parties.