Analysis of Organization Behavior Theories and HRM Practices Impact

This report delves into the intricate relationship between organizational behavior (OB) and human resource management (HRM) practices. It begins by highlighting the importance of managing people within organizations to achieve goals effectively, considering diverse employee backgrounds and needs. The report discusses various OB theories, such as Maslow's hierarchy of needs and Herzberg's two-factor theory, and their direct relevance to HRM practices, particularly in employee reward and retention. It examines how motivation, leadership, and change theories, like Lewin's change theory and resource-based theory, influence employee behavior and performance. The report also covers key concepts of OB including individual differences, perception, motivation, and social systems. The report emphasizes that changes in HRM practices directly affect employee behavior, performance and outlines how organizations can leverage these theories to foster a positive work environment and achieve their strategic objectives. The content provided is from a student and is available on Desklib, a platform that provides AI-based study tools and resources.

Organization and people
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Table of Contents
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
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INTRODUCTION
For every organization it is necessary to manage and handle people so that goals are attained in
effective way. There are diversified people working in organization who belong to different
background, caste, etc so there needs also differ from one another. There are various concept and
models which is followed by companies in order to maintain positive culture. Alongside, it is
essential for business to analyse employee behavior so that its impact on their peris evaluated.
Besides, they need to encourage staff to enhance their productivity (Rasova, , Freeman.. and
Smedal, 2016.)
In this report it will be described about how organization behavior theories are related to HRM
practices. Also, it will be discussed on concept of OB and HRM.
MAIN BODY
In an organization there are diversified people working in it. So, it is important for manager to
maintain positive environment. The environment is based on behavior of employees and HRM
practices followed. This is because it reflect how employee ae valued in it. If behavior is
negative then it impact on overall culture. But when behavior is positive then it makes it easy to
accomplish goals and objectives. The management is responsible for developing of HRM
practices. In every business OB and practices differ according to its nature and type.
Organization behavior refer to study of human behavior as an individual and in group within
organization. It enables in finding out how an individual behave in context of thier job role,
duties, etc and what in the impact of it on their performance (Parnell, Box, and Pettigrew,., 2019).
As behavior contains attitude, perception, and other things towards individual and organization.
There are many theories and concepts which is followed in OB. It is related to motivation,
leadership, individual learning, etc similarly it has been analysed that HRM practices are
interlinked with OB. This is because any change in those practices directly impact on human
behavior. As HRM practices consists of policies, guidelines, related to performance
management, rewards, recruitment, etc thus it reflect on employee behavior towards those
practices. Here, motivational theory is highly linked with HRM practice of employee reward and
retention. In motivation, there are two types of theories that is content and process. In these as
well there are various types of theories available which is applied. The Maslow theory is
commonly used. It state that there are five basic needs of individual which is structured in
hierarchal way. At first level is psychological needs are basic for every human being as it
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includes food, clothes and shelter. They are required for living. Then, comes security needs in
which individual wants safety from theft, security of property, etc they are those needs which are
satisfied in it. However, love need are those that requires friends, family, society (
Hoendervanger. van der Voordt, and Wijnja, 2017.). Furthermore, esteem needs refer to recognition,
achievement, etc and at last is self actualization needs. Hence, in this way people are motivated
when each need is fulfilled in effective way. Then, content theory of motivation include
Hertzberg two factor theory. Here, it consists of two factor that is required to encourage people.
They are hygiene and motivator. In hygiene the factors are working condition, policies and
guidelines, etc whereas in motivator they are recognition, achievement, etc therefore, these both
encourage people to put more effort in performing task and achieving goals. As motivator are
which inspire people and if hygiene are not present it lead to decrease in motivation. So,
recognition, achievement, along with company policy, work condition, was improved to
encourage staff. But in absence of any one factor it leads to demotivate. For example, if working
condition is good and there is no recognition then employee can not be encouraged (Chen, and
Wang, 2018)
Hence, on basis of the above theories HRM practice of employee reward and retention is linked.
The practice include policies, guidelines etc of giving reward to staff on basis of their
performance. Besides that, retention refer to practices which are followed in order to retain
employee for long term within organization. For that, there are several policies formed. So,
employee can only be retained if they are motivated frequently and their needs are fulfilled.
Moreover, if there is any change in reward or retention practices then it directly impact on
applying of motivation theories. Along with it, reward system is based on how theory is applied
and in what way it is impacting on motivation level of employee in positive or negative way.
This is useful in analyzing employee behavior and how it has affected on their performance. For
instance – organization apply Hertzberg two factor theory then they have to set policy of reward
management which contain recognition as well. There should also increase in salary. Staff is
encouraged to attain that achievement that in mentioned in reward (Moore, McDonald, and Bartlett,
2018)
.However, there are several concept of OB and HRM which is applied or
followed in organization. It depends on nature of business and culture.
Basically, there is general concept of OB which are as follows
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Individual differences in organization- it state that there occurs difference in
people working within organization. The difference are not only physical but
psychological as well. It means that difference is found in understanding or
learning, performing operations, etc hence, staff knowledge and skills is
taken into consideration by manager for assigning roles to them.
Perception of employee- it refer to a person ability to understand and
interpret things. The perception of one employee differs from another. This
can be related to either policy, method, guidelines, or any other thing.
Motivation of workers- this concept state that each individual working in organization is having
various needs. They strive hard in order to fulfill them. Also, extent to which employee work to
fulfill needs determine their behavior. This means that if needs are not fulfilled then the behavior
will be negative (Tortorella. Fettermann, . and Sawhney, 2019)
Involvement of staff- here, staff needs to be allowed to do his work freely so that goals and
objectives are attained. The manager should provide all necessary equipment and facilities for
employee to get involved in working in effective way. With this it create a feeling of
belongingness for them to get involved with their work.
Social system- in an organization all employees work for a common goal. This results in
developing of social system. Thus, the activity of one is affected by activity of others. In this
there are two types of system that is formal and informal. Formal is created by top management
and consists of authority, responsibility, etc but on other hand, informal is created naturally by
staff through friendship, language, interest, etc of individuals.
Dignity of labor- the concept state that labor should be treated and respect with dignity. In spite
they belong to other caste, religion, etc each one must be considered equally. Furthermore, in
terms of salary, working condition, job security as well they must be respected equal chance. In
these all dignity has to be maintained (Kinsell Mullaly, and Cavuoto, 2019)
Along with these concepts it has been evaluated that there are several theories of OB and
HRM. They are applied as per situation and need of organization. The theory differ from one
another in certain ways. As organization behavior is wide area and include many things. So,
theories also relate to it in various ways. They are defined as below
Lewin's change theory- it was proposed by Kurt Lewin in which he developed a model for
organization change. There are 3 stage in it which is described as
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Unfreeze- in this stage both organization and individual resist to change. But it is necessary to
make people aware change and how it will benefit them. So, it requires things to understand and
analyse current state. In this organization ethics and values are changed so that it helps in
involving people and giving them insight on what will be done.
Change- here, the change is adopted by people in systematic way. They are encouraged to adopt
change in proper way. Besides that, the benefit of change is evaluated by employees. They
understand change and start accepting it (Diefenbach, 2020)
Refreeze- at This stage once change is adopted by organization they get back it refreeze. Here,
new policies and procedures are formed and applied. Therefore, it makes things easy for
employee to work as per specified policy and set standard. They are aware about the change
which occurred.
There are some leadership theory which is related to OB. This is useful in shaping the
behavior of employees. Also, it depends on leader trais as well that which type of theory is
applicable. Likewise, transformation leadership theory, leader works with their people or teams
in order to identify reasons of making changes in an organization, for creating a vision to guide
that changes through inspiration and using different qualities such as integrity, communication,
willingness to support etc. In addition, in the context of qualities and reasons of using this theory,
they also stated that this theory can be applicable in any situation and in any type of organization.
Because as per this theory, leader encourage, inspire and motivate their employees or group of
people in order to make them able to create changes which can help them out in shaping the
future success of the company for which they work (Wheatley, Bamford, and Allan, 2019)
Resource based theory- it state that resources ae valuable, rare, etc so company needs to look out
for resources that exists within firm in order to gain competitive advantage. So, with help of
those resources it is easy for organization to compete with rivals. Alongside, there is increase in
performance of staff as well. The theory also reflect that rather than focusing on product or
service competitive advantage can be gained with resources existing inside organization. It
includes tangible, intangible and capabilities.
It is identified that OB and HRM are interlinked with each other. There is great impact on OB
due to change on HRM practices. The employee behavior is affected and they are not able to
perform well. Also, as OB consists of many things such as value, ethics etc so it has to be change
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in it. This reflects the perception, attitude of staff towards their job, organization. In HRM
various practice are followed that is related to reward, recruitment, of staff. It highly affect on
their performance. For example, use of motivation theory to inspire staff led to fulfill his needs
and enhance in their performance.
CONCLUSION
It can be summarized that there is relationship between organization behavior and human
resource practices. There are two basic theory of motivation that is process and content. Also, in
Maslow theory there are five needs and in Hertzberg there are two factor included. They are
linked with HRM practice of employee reward and retention. However, different concept of OB
are followed such as employee motivation, dignity, involvement of workers, social system, etc
moreover, there are many theories of OB and HRM like theory if change, leadership, resource
based theory which is implemented by organization. This enable in analyzing employee
behavior.
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REFERENCES
Books and journals
Wheatley, A., Bamford, C.,. and Allan, L., 2019. Service organisation for people with dementia
after an injurious fall: challenges and opportunities. Age and ageing, 48(3), pp.454-458.
Diefenbach, T., 2020. The Democratic Organisation: Democracy and the Future of Work.
Kinsella, G.J., Mullaly, E. and Cavuoto, M.G., 2019. Bridging the gap between clinical trials and
community care: Translating a memory group for older people with mild cognitive
impairment into a community‐based organisation. Australasian journal on ageing.
Tortorella, G.L., Fettermann, D.. and Sawhney, R., 2019. Learning organisation and lean
production: an empirical research on their relationship. International Journal of
Production Research, pp.1-17.
Moore, K., McDonald, P. and Bartlett, J., 2018. Emerging trends affecting future employment
opportunities for people with intellectual disability: The case of a large retail
organisation. Journal of Intellectual & Developmental Disability, 43(3), pp.328-338.
Chen, Y.C. and Wang, Y.J., 2018. Application and development of the people capability
maturity model level of an organisation. Total Quality Management & Business
Excellence, 29(3-4), pp.329-345.
Hoendervanger, J.G., van der Voordt, T. and Wijnja, J., 2017. Organisation and people centred
management of smart workplaces. Smart WorkPlace, 1(1).
Parnell, A., Box, E., and Pettigrew, S., 2019. Receptiveness to smoking cessation training among
community service organisation staff. Health Promotion Journal of Australia.
Rasova, K., Freeman, J.. and Smedal, T., 2016. The organisation of physiotherapy for people
with multiple sclerosis across Europe: a multicentre questionnaire survey. BMC health
services research, 16(1), p.552.
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