Organizational Behavior & Systems PDF

The Nature of Organization as a Social System A social system is a complex set of human relationships interacting in many ways. Within a single organization, the social system includes all the people in it and their relationships to one another and to the outside world. The human body is a g...

The Nature of Organization as a Social System A social system is a complex set of human relationships interacting in many ways. Within a single organization, the social system includes all the people in it and their relationships to one another and to the outside world. The human body is a good example of system, which consists of a number of body organisms, parts, or subsystems which act together as a system to perform a certain bodily function independently yet in perfect harmony with other sub-systems. Business is a social system having production, marketing, financing personnel and other departments or sub-systems. An organization is a social system because it is composed of people who interact with each other to achieve a common goal. It's a structured entity that operates within a broader social environment, influenced by cultural, economic, and political factors. Key Characteristics of Organizations as Social Systems: 1. Interdependence: The members of an organization are interdependent, meaning their actions and decisions affect each other. For example, a manager's decisions can impact the performance of employees, and vice versa. 2. Hierarchy: Organizations often have a hierarchical structure, with different levels of authority and responsibility. This hierarchy helps to coordinate activities and ensure that decisions are made effectively. 3. Norms and Values: Organizations develop their own norms and values, which guide the behavior of their members. These norms and values can be formal or informal, and they can influence everything from how employees dress to how they interact with customers. 4. Communication: Effective communication is essential for the functioning of an organization. Members must be able to communicate with each other to share information, coordinate activities, and resolve conflicts. 5. Power and Authority: Power and authority are important concepts in organizations. Power refers to the ability to influence others, while authority refers to the right to give orders. The distribution of power and authority within an organization can have a significant impact on its effectiveness. 6. Goal Orientation: Organizations are goal-oriented, meaning they have specific objectives that they seek to achieve. These goals can be short-term or long-term, and they can be related to profit, growth, or social impact. Implications of Viewing Organizations as Social Systems:  Understanding organizational behavior: By understanding organizations as social systems, we can better understand the factors that influence the behavior of individuals and groups within organizations.  Improving organizational effectiveness: By recognizing the importance of social factors in organizations, we can develop strategies for improving organizational effectiveness, such as enhancing communication, fostering teamwork, and creating a positive work environment.   Managing change: Understanding organizations as social systems can help us to manage organizational change more effectively by considering the social implications of changes and involving employees in the change process. Organizational Behavior (OB) Organizational behavior is the study of individuals, groups, and structures within organizations. It explores how people interact with each other, their attitudes, and their behaviors within a work environment. This field helps businesses understand and manage their workforce more effectively. Key Areas of Focus in Organizational Behavior: 1. Individual Behavior: o Personality: How individual personality traits influence behavior and performance. o Perception: How people perceive information and make decisions. o Motivation: Understanding what drives employees to perform well. o Attitudes: Examining employee attitudes toward work, colleagues, and the organization. o Learning: How employees learn and develop their skills. 2. Group Behavior: o Team dynamics: Understanding how groups work together and influence each other. o Leadership: Exploring different leadership styles and their impact on teams. o Communication: Examining effective communication strategies within organizations. o Conflict management: Resolving conflicts and disputes within teams. 3. Organizational Structure and Processes: o Organizational culture: Understanding the values, beliefs, and norms that shape organizational behavior. Artifacts of Organizational Culture: There are 5 artifacts of organizational culture that help employees learn the culture (Lussier & Hendon 2018): 1. Heroes- such as founders and others who have made outstanding contributions to their organizations. 2. Stories- often about founders and others who have made extraordinary efforts. 3. Slogans 4. Symbols- such as plaques etc. 5. Ceremonies- such as recognition or awards night for employees  o Organizational design: Examining how organizations are structured and how that affects performance. (depende kung gaano kalaki or kaliit and organization) o Human resource management: Managing employee recruitment, development, and performance. o Change management: Implementing and managing organizational change effectively. Importance of Organizational Behavior in Business:  Improved employee satisfaction: Understanding employee needs and motivations can lead to higher job satisfaction and lower turnover.  Enhanced productivity: Effective organizational behavior practices can lead to increased productivity and efficiency.  Better decision-making: Understanding how individuals and groups make decisions can help organizations make better choices.  Stronger organizational culture: A positive organizational culture can foster employee engagement and loyalty.  Effective conflict resolution: Understanding conflict management strategies can help organizations resolve disputes peacefully. By studying and applying organizational behavior principles, businesses can create a more positive and productive work environment, leading to overall organizational success. Characteristics of Entrepreneurial Behaviour: Question: Difference of Entrepreneur to Businessman? Entrepreneurs are individuals who identify opportunities, gather resources, and create new ventures. Their behavior is often characterized by a unique set of traits and qualities. Here are some key characteristics of entrepreneurial behavior: 1. Risk-Taking:  Entrepreneurs are willing to take calculated risks to pursue their goals.  They understand that failure is a possibility but are not deterred by it. 2. Innovation:  Entrepreneurs are creative and innovative, often coming up with new ideas or approaches to existing problems.  They are open to experimentation and are willing to try new things. 3. Drive and Determination:   Entrepreneurs have a strong drive to succeed and are highly motivated to achieve their goals.  They are persistent and resilient, even in the face of setbacks. 4. Opportunity Recognition:  Entrepreneurs have a keen ability to identify and seize opportunities.  They are always on the lookout for new possibilities and can quickly assess their potential. 5. Self-Efficacy:  Entrepreneurs believe in their own abilities and have a strong sense of self-confidence.  They are not afraid to take on challenges and believe they can overcome obstacles. 6. Goal-Orientation:  Entrepreneurs are goal-oriented and have a clear vision of what they want to achieve.  They are able to set realistic and achievable goals and develop strategies to reach them. 7. Leadership:  Entrepreneurs often have strong leadership skills, inspiring and motivating others to follow their vision.  They are able to delegate tasks effectively and create a positive work environment. 8. Adaptability:  Entrepreneurs are adaptable and able to adjust to changing circumstances.  They are flexible and open to new ideas, allowing them to pivot their business as needed. 9. Networking:  Entrepreneurs are skilled at building relationships and networking with others.  They understand the importance of having a strong support network and are able to leverage their connections to achieve their goals. These characteristics are not exclusive to entrepreneurs, but they are often more pronounced in individuals who exhibit entrepreneurial behavior. By understanding these traits, individuals can develop their own entrepreneurial skills and increase their chances of success. Approaches to the study of Entrepreneurial Behavior: The study of entrepreneurial behavior has evolved over time, with researchers adopting various approaches to understand the complex factors that influence entrepreneurial activity. Here are some of the primary approaches: 1. Trait-Based Approach:  Focus: Identifies specific personality traits and characteristics that are associated with entrepreneurial behavior.  Examples: Risk-taking, innovation, self-efficacy, need for achievement.  Critique: While traits can provide insights, they may not fully explain entrepreneurial behavior, as it is influenced by multiple factors. 2. Opportunity Recognition Approach:  Focus: Examines how entrepreneurs identify and capitalize on business opportunities.  Examples: Alertness to opportunities, information processing, cognitive biases.  Critique: While opportunity recognition is crucial, it is not solely responsible for entrepreneurial behavior; other factors, such as resources and motivation, also play a role. 3. Venture Creation Approach:  Focus: Analyzes the process of creating and launching a new venture.  Examples: Business planning, resource acquisition, team building.  Critique: This approach often focuses on the external factors that influence venture creation, but it may overlook the internal motivations and characteristics of entrepreneurs. 4. Social Network Approach:  Focus: Examines the role of social networks in entrepreneurial behavior.  Examples: Strong ties, weak ties, social capital.  Critique: While social networks are important, they are not the sole determinant of entrepreneurial behavior, as individual traits and opportunities also play a significant role. 5. Institutional Approach:  Focus: Examines the institutional factors that influence entrepreneurial activity.  Examples: Government policies, cultural norms, educational systems.  Critique: While institutional factors can shape entrepreneurial behavior, they may not fully explain individual differences in entrepreneurial activity. 6. Cognitive Approach:   Focus: Examines the cognitive processes involved in entrepreneurial decision-making.  Examples: Mental models, heuristics, biases.  Critique: While cognitive factors are important, they may not fully capture the emotional and social aspects of entrepreneurial behavior. 7. Behavioral Approach:  Focus: Examines the observable behaviors and actions of entrepreneurs.  Examples: Goal setting, problem-solving, risk-taking.  Critique: While behavioral observations can provide valuable insights, they may not fully explain the underlying motivations and cognitive processes of entrepreneurs. In conclusion, the study of entrepreneurial behavior is a multifaceted field that requires a multidisciplinary approach. By combining insights from different perspectives, researchers can gain a more comprehensive understanding of the factors that influence entrepreneurial activity. Models of Entrepreneurial Behavior: Several models have been proposed to explain and predict entrepreneurial behavior. Here are some of the most prominent ones: 1. Shaver's Model:  Key elements: Personality traits, environmental factors, and entrepreneurial intentions.  Explanation: This model suggests that individuals' personality traits, combined with environmental factors, influence their entrepreneurial intentions. Innovativeness- is the ability to introduce new ideas, methods, or products that are significantly different from what has existed before. It's a key characteristic of successful individuals, organizations, and societies. Attitude- is a psychological construct that represents an individual's enduring evaluation of people, objects, or ideas. It is a combination of thoughts, feelings, and behaviors related to a specific target. Subjective Norm- is a psychological construct that refers to an individual's perception of social pressure to perform a particular behavior. It is influenced by the beliefs about what significant others expect of them and the motivation to comply with those expectations. Perceived Feasibility- This is the belief that one possesses the necessary skills and abilities required to be successful in a particular situation. Perceived Desirability- The belief that the rewards associated with certain outcomes are personally attractive. The business environment- refers to the external factors that can influence a company's operations, profitability, and overall success. Perceived Behavioral Control- refers to an individual's belief in their ability to perform a particular behavior. It is a subjective assessment of the perceived ease or difficulty of engaging in a behavior. 2. Reynolds' Model:  Key elements: Entrepreneurial potential, entrepreneurial motivation, and entrepreneurial behavior.  Explanation: This model suggests that individuals with entrepreneurial potential, when motivated, are more likely to engage in entrepreneurial behavior. Social Ties Opportunity Recognition Support from other people 3. Ajzen's Theory of Planned Behavior:  Key elements: Attitudes, subjective norms, perceived behavioral control, and intentions.  Explanation: This model proposes that individuals' intentions to engage in a behavior are influenced by their attitudes, subjective norms, and perceived behavioral control. 4. Bandura's Social Cognitive Theory:  Key elements: Self-efficacy, observational learning, and motivation.  Explanation: This model suggests that individuals' beliefs in their ability to succeed (self-efficacy) are influenced by their observations of others and their own experiences. 5. Miner's Model of Entrepreneurial Potential:  Key elements: Venture initiation, venture growth, and venture profitability.  Explanation: This model focuses on the entrepreneurial potential of individuals, measured by their ability to initiate, grow, and achieve profitability in ventures. 6. Shane and Venkataraman's Entrepreneurial Process Model:  Key elements: Discovery, evaluation, exploitation, and control.  Explanation: This model outlines the stages of entrepreneurial activity, from discovering opportunities to evaluating them, exploiting them, and controlling the venture. These models provide different perspectives on entrepreneurial behavior, each emphasizing specific factors and processes. By understanding these models, researchers and practitioners can gain valuable insights into the complex nature of entrepreneurship. Role and Importance of Entrepreneurial Behavior: Entrepreneurial behavior plays a crucial role in driving economic growth, innovation, and job creation. Here are some of its key roles and importance: Economic Growth:  Job Creation: Entrepreneurs create new businesses, which often leads to the creation of new jobs.  Innovation: Entrepreneurs are often at the forefront of innovation, developing new products, services, or business models that can drive economic growth.  Market Competition: Entrepreneurs introduce competition into markets, which can lead to lower prices, improved quality, and increased consumer choice. Innovation and Development:  New Technologies: Entrepreneurs are often responsible for the development of new technologies and processes that can improve productivity and efficiency.  Problem-Solving: Entrepreneurs identify and address unmet needs or problems in the market, leading to innovative solutions.  Economic Diversification: Entrepreneurship can help to diversify an economy, reducing its reliance on a single industry or sector. Social Impact:  Community Development: Entrepreneurs can contribute to the development of their communities by creating jobs, improving infrastructure, and supporting local initiatives.  Social Entrepreneurship: Social entrepreneurs focus on addressing social or environmental problems through their businesses, creating positive social impact.  Empowerment: Entrepreneurship can empower individuals and communities, providing them with opportunities for economic independence and self-sufficiency. Personal Fulfillment:  Autonomy: Entrepreneurs often enjoy the autonomy and flexibility that comes with owning their own business.  Purpose: Many entrepreneurs are driven by a sense of purpose and a desire to make a difference.  Achievement: Entrepreneurship can provide a sense of accomplishment and fulfillment. In conclusion, entrepreneurial behavior is essential for driving economic growth, innovation, and social development. It plays a vital role in creating jobs, fostering competition, and addressing unmet needs. By understanding and supporting entrepreneurial behavior, we can create a more vibrant and prosperous society. REFERENCES: www.scrum.org In-Depth: What a Social Systems Perspective Teaches us About Change - Scrum.org www.edglabs.com Understanding Business Organizations as Systems www.mdpi.com Predicting the Entrepreneurial Behaviour of Starting up a new business