The economic approach to human behaviour - MyAssignmenthelp.com

Question: Discuss aboutThe economic approach to human behavior. Answer: Introduction: The essay is a discussion on organizational behavior. Organizational Behavior is the study of human behavior in the organizational setting (Kinickiand Kreitner2012). In other words, it acts as an interface between the human behavior and organization. Organizational behavior also helps managers in formulating effective decisions while working with people on a dynamic and complex environment. The essay discusses about the application of the organizational behavior theories in an organizational setting. There is also discussion on the problem situations of an organization and the proactive intervention of the manager in dealing with the problem with reference to ethical, social and cultural concern. There essay also critically analyzes the current development taking place in relation to organizational behavior. Applying Organizational Behavior Theories in an Organizational Setting Industrial Revolution led to increase in division of labor and their specialization. This also gave rise to various forms of human organization (Becker 2013). Research into human behavioral patterns however gave rise to the fact that there exist various soft and hard dimensions for organizational performance. There are various organizational behavior theories that find application in organizational setting. These include human relation approach, scientific leadership approach, neo human relation approach, decision-making approach and system approach. Scientific Leadership Approach This is the initial theory of organizational behavior that focuses on the effective performance of a job. The first step in the scientific leadership approach depended on determining the organizational objectives that later were replaced by the standards of performance (Goetschand Davis2014). According to this approach, managers believed that there was one possible means of getting any job done as determined by motion and time studies. The theory also suggested that once there was determination of the optimum method, the standard time for the performance of any job could be determined. The workers of the organization selected according to job requirements and trained accordingly. As per the approach, the managers carefully planned the work for optimizing the new methods and the processes. Thus, this approach does not require the workers to think too much. Human Relations Approach The approach to the human relations had development after prolonged study on the Hawthorne plant for a company named Western Electric teamby researchers from Harvard. This approach shows how changes on the work environment affect productivity (Becker2013). The approach also found that more attention leads to the change in behavior of the workers. Decision Making Approach The approach to decision making is defined as compromise between the behavior that is goal oriented and the behavior that do not lead to the optimization of goal achievement. According to this approach, the decision makers tied by the restrictions of the environment and often seen to give up on choosing necessary alternatives for meeting the minimum success criteria instead of finding an optimal solution (Cresswell and Sheikh 2013). Neo Human Relations Approach The Neo-Human Relations approach primarily focuses on the structures existing in modern organizations. This approach also results in the Maslows Hierarchy of Needs where workers get motivation for satisfaction of their basic needs based on five different levels that included safety, love, psychological, self-actualization and esteem (Suddaby, Seidland L2013). The neo human relation approach included theory Y and theory X. According to theory X, the leaders should have the capability of directing the behavior of the workers and thereby allocating according to their organizational needs. In absence of this, the workers considered as resistant or passive (Goetsch and Davis 2014). Theory Y however focuses on the assumption that people possess the capability of assuming certain responsibilities at workplace and the job of the leadership facilitates in the achieving the goals of the individual workers through achievement of organizational goals. Systems Approach The systems approach helps in measuringthebehavioroftheorganizationasa function of the existing input process within the system as well as the output. There is also exists a feedback loop that helps in modifying the system whenever it is necessary (Claytonand Radcliffe2015). As per this approach, the subsystem that drives processing within the system includes the management that helps in the coordination of the total system including finance, clerical support,maintenanceand human resource. The management is also responsible for taking care sales and purchase, production and capacities for adaptation and research and development that is responsible for innovation. Potential Organizational Problem Situations The diversification of the organizations often paves the way for intensification of the workplace related issues. Most of the times, the root cause of these problems includes lack of free flowing and open communication or use of the organizational structure wrongly (Cresswell and Sheikh2013). A potential organization therefore faces various kinds of problem situations that include: Issues of the Employees Employees can face issues with supervisor and the company structure. There may also be conflict of personality and issues of personal trauma. Thus, the management must know the cause of the problem and the reason that keeps triggering the issues. In a situation where the chain of command does not have clear communication, the employee might have the feeling of being answerable to multiple numbers of supervisors. Problems with the Team In order to be high performing the team should have dedication for working towards a common goal. Personal disconnection with the members of the team can make it non-functional. The issues are often a result the breakdown of the management or organizational communication that not only confuses teams but also common goals. However, to avoid this, the leaders must constantly foster cohesiveness and feedback. In such situations, managers must ensure diagnosis of the problem and take necessary actions for avoiding more serious performance breakdown (Kinicki and Kreitner 2012). Problems related to Organizations If the management does not undertake immediate corrective action then the problem spreads to the entire organization. Avoiding such situation is only possible through more corrective and dramatic actions by the management. The management must take necessary actions from preventing negative influence on the corporate culture and ensure measures that make the workplace a higher performance entity (Nielsen and Randall 2013). Proactive Managerial Intervention for Evaluation of Organizational Problem The proactive managerial intervention can lead to the improvement of every aspect of the business from marketing to the employee relations. Proactive managers help in ensuring the success of the project (Nielsenand Randall2013). A proactive manager will carefully analyze situations for determining the major risk and then taking necessary steps for minimizing the damage potentially. Thus, a proactive manager decreases the likelihood of the future problems of an organization and minimizes it negative impacts. The optimistic and confident proactive managers help in inspiring employees. For instance, a sales manager who is encouraging and enthusiastic with the sales representatives may lead to the development of similar proactive behavior amongst his staffs that will enable them to deliver better customer experience. Proactive intervention of managers also enables empowerment of the employees. Thus, proactive managers help in strengthening the organization as a whole. Critical Analysis of the Current Developments in Organizational Behavior Organizational behavior from a positive perspective primarily focuses on the quantitative aspect of micro behavior at the personal level. However, to consider the organizational performance at the macro level it is important to consider organizational structure, its culture, leadership system and policies. There are however many challenges faced by the organizational behavior. The position of research about organizational behavior reflects value orientation and judgment. However, a shift from the research position indicates the understanding of the people in respect to their performance of the human behavior (Symon and Cassell2012). The understanding of the human nature to some extent helps in determining the research content and study angle. The research on the human nature helps the managers to understand the core of human nature based on the established values of management and determine the reasonable management mode for carrying out management related activities. Research on the organizational behavioral aspect also helps the managers in establishing a flexible style of management and creates a humanist organization culture that will help advocate the initiative of the workers and their self-discipline. With time, the content of research transferred from the individual behavior or group activities to the organizational behavior and the persisting organizational environment. The development of the management practices on a continuous basis leads to the emergence of newer theories of management (Cresswell and Sheik 2013). Thus, the research efforts of the organizational behavior reflect the change of the organizational management, ensures reasonable organizational structure and establishment of more effective management style as per the development target, development and change of technology and the environment of the organization. The deficiencies of this research method focus on the results drawn based on personal perspective. Moreover, the behavior of human beings is complex and therefore is difficult to accurately predict or measure (Goetsch and Davis 2014). With the increasing complexity and uncertainty of modern organizations, it becomes all the more difficult in explaining the complex variable of the organizational behavior. Conclusion: The essay ends by putting forward a critical analysis of the current developments on the organizational behavior. Through the discussion on proactive managerial intervention for solving the organizational problem, one gets an idea about the necessary proactive steps of the manager in making the organization a better place. The essay also guides one through the problem situation of an organization. The essay also discusses about the application of the various theories in an organizational setting. References: Becker, G.S., 2013.The economic approach to human behavior. University of Chicago press. Clayton, T. and Radcliffe, N., 2015.Sustainability: a systems approach. Routledge. Cresswell, K. and Sheikh, A., 2013. Organizational issues in the implementation and adoption of health information technology innovations: an interpretative review.International journal of medical informatics,82(5), pp.e73-e86. Goetsch, D.L. and Davis, S.B., 2014.Quality management for organizational excellence. Upper Saddle River, NJ: pearson. Kinicki, A. and Kreitner, R., 2012.Organizational behavior: Key concepts, skills best practices. McGraw-Hill Irwin. Nielsen, K. and Randall, R., 2013. Opening the black box: Presenting a model for evaluating organizational-level interventions.European Journal of Work and Organizational Psychology,22(5), pp.601-617. Suddaby, R., Seidl, D. and L, J.K., 2013. Strategy-as-practice meets neo-institutional theory. Symon, G. and Cassell, C. eds., 2012.Qualitative organizational research: core methods and current challenges. Sage.