Organizational Theories Help to Shape Our Understanding of Employee Behaviour

Understanding organizational behavior through the study and application of organizational theories helps in providing a clearer view of the relationship between employees and employers. The goals and objectives of the organization is the main focus for both. Therefore, a close and fruitful coordination will aide in guaranteeing that the goals and objectives are being met. Experts in the field of organization behavior has conducted research for many years, trying to determine what works and what does not work between employees and the employer. The studies attempt to quantify the actions and reactions of employees in certain work environments.

In the recent past, new organizational theories have emerged as the business world evolves and the priorities for companies and employees begin to shift. There are various aspects of these theories as more data comes to the forefront, dealing with complex human behavior. Researchers are finding that the most important ones center on motivation. Motivating employees in ways that will optimize their performance and increase the profitability of the company is vitally important. Motivation takes place within an organization's culture, and is a reflection of the organization's behavior model.

Some of the most popular organizational theories are Alderfer's Theory of Motivation; Herzberg's Theory; Expectancy Theory; and, Maslow's Theory. Alderfer's Theory focuses on three areas, referred to as the ERG Model. The acronym stands for Existence (physiological and security) needs, Relatedness (being understood and accepted) needs, and Growth (desire for self-esteem and self-actualization) needs. Herzberg's two factor model describes the motivational and maintenance factors which determine an employee's performance. The Expectancy model is a formula which declares that valence x expectancy x instrumentality equals motivation to perform. Maslow's Hierarchy of Needs requires managers to identify and accept employee needs that include physiological, safety and security, belonging and social, esteem and status, and self-actualization. Managers must also recognize that these needs will vary among employees.

The most widely used organizational theories related to the field of leadership are Houses Path-Goal Theory and McGregor's Theory Y and Theory X. As the importance of leaders and their role within organizations begin to form, the study of leadership theories within organizations becomes more important. Knowing the qualities that a good leader must possess to lead an organization is important to making the right selection. This will be significant because the leader will need to know what motivates employees and how to ensure that motivation aligns with the vision that he or she has established for the organization.

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