Organizational Behavior
Organizational Behavior-Human Behavior at Work, by John Newstrom and Keith Davis, defines organizational behavior as “the study and application of knowledge about how people – as individuals and as groups – act within organizations.” (1997, p. 5) Organizational behavior can also be defined as a field of study interested in how people interact in an organization or between organizations, and a way for managers to better motivate their employees to get the job done in the most efficient manner possible. By having an understanding of the theories of organizational behavior, managers can make more timely and informed decisions that will have several positive outcomes. First and foremost, the company will increase its profit margin. Also, employees will be more comfortable and enjoy working for a company that takes their needs into advisement. “We now realize that to motivate effectively a manager must determine what the needs of workers actually are and provide a way for workers to satisfy them through performance.” (Mescon, 1988, p. 53)
One of the theories being proposed under organizational behavior is Theory Z. This theory was proposed by William Ouchi and basically takes many Japanese labor practices and applies them to American companies. “This modified U.S. organization would have the following characteristics: (1) long-term employment, (2) collective decision making, (3) individual responsibility, (4) slow evaluation and promotion, (5) implicit, informal control with explicit, formalized measures, (6) moderately specialized career paths, and (7) holistic concern for employees, including their families.” (Hitt, 1986, p. 450) Companies that use Theory Z haven proven that it can be profitable. Today the American work force is use to quick promotions and frequently moving from one company to another. Japanese employees, on the other hand, stay with their employer for life and expect a very slow promotion rate. Theory...