OBMOD:Applications of OBMOD, Correcting Group Dysfunctions

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Organizational Psychology (PSY510)

LESSON 41

OBMOD

OBMOD or Organizational Behaviour Modification is a program where managers identify performance-

related employee behaviour and then implement an intervention strategy to strengthen desirable

performance behaviour and weaken undesirable behaviours.

It combines the works of Pavlov, Skinner, Luthans and Bandura. OBMOD is the application of

reinforcement theory to people in organizational settings. Reinforcement theory says that we can increase

the frequency of desirable behaviour by linking those behaviours with positive consequences and decrease

undesirable behaviour by linking them with negative consequences. OBMOD characteristically uses positive

reinforcements to encourage desirable behaviours in employees.

The typical OBMOD program follows a five step problem solving model:

1. Identification of performance related behaviours

2. Measurement of the behaviours

3. Identification of behavioural contingencies

4. Development and implementation of an intervention strategy

5. Evaluation of performance improvement

Everything an employee does on his or her job is not equally important in terms of performance outcomes.

The first step in OBMOD, therefore, is to identify the critical behaviours that make a significant impact on

the employee's job performance. These are those 5 to 10 percent of behaviours that may account for up to

70 to 80 percent of each employee's performance.

The second step requires the manager to develop some baseline performance data. This is obtained by

determining the number of times the identified behaviour is occurring under present conditions.

The third step is to perform a functional analysis to identify the behavioural contingencies or consequences

of performance. This tells the manager the antecedent cues that emit the behaviour and the consequences

currently maintaining it.

Once the functional analysis is complete, the manager is ready to develop and implement an intervention

strategy to strengthen desirable performance behaviours and weaken undesirable behaviours. The

appropriate strategy will entail changing some element of the performance-reward linkage-structure,

processes, technology, groups or the task--with the goal of making high-level performance more rewarding.

The final step in OBMOD is to evaluate performance improvement. If the performance has increased, the

manager must try to maintain the desirable behaviour through some schedule of positive reinforcement. For

example, higher commissions might be granted for every other sale, for sales over a certain rupee amount,

and so forth.

Finally, the manager looks for improvements in individual employees' behaviour. Here the emphasis is on

offering significant longer-term rewards, such as promotions and salary adjustments, to sustain ongoing

efforts to improve performance.

OBMOD has been used by a number of organizations to improve employee productivity and to reduce

errors, absenteeism, tardiness, and accident rates. OBMOD has also proven effective in sports

organizations. The philosophy behind OBMOD additionally appears to be affecting many managers in the

way they related to their employees--in the kind and quantity of feedback they give, the content of

performance appraisals and the type and allocation or organizational rewards.

Despite the positive results that OBMOD has demonstrated, it is not without its critics. Is it a technique for

manipulation people? Does it decrease an employee's freedom? If so, is such action on the part of managers

unethical? And do non-monetary reinforcers like feedback, praise, and recognition get stale after a while?

Will employees being to see these as a way for management to increase productivity without providing

commensurate increases in their pay? There are no easy answers to questions such as these.

This approach to motivation and dealing with problem behaviors is based on the application of learning

theory to people in the workplace. Reinforcement theory holds that a desirable behavior can be increased by

linking that behavior with positive outcomes, while undesirable behaviors can be decreased by linking them

with negative consequences or by eliminating reinforcers. The advantage of this approach is that it focuses

on specific behaviors in the workplace and is thus performance based. It also, at least to some degree,

avoids sensitive personal counselling issues in a person's personal life, by focusing on what needs to be

done to improve performance. Finally, it provides a clear structure and consequences to employees that

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Organizational Psychology (PSY510)

encourage them to change in an observable way in a structured time frame. The model below outlines the

stages of its use:

This relatively simple and straight forward approach has been used in a variety of organizations with varying

rates of success. For example, B.F. Goodrich has used OB-Mod to increase productivity by more than

300%, and Weyerhauser increased productivity in three different groups by 8%. However, a program

initiated by Standard Oil of Ohio was discontinued due to failure to meet objectives, and A Michigan Bell

program was considered only modestly successful.

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Organizational Psychology (PSY510)

Applications of OBMOD

Following are some of the applications of OBMOD that have been identified through research:

1. Behaviour of manufacturing and service organizations improves through OBMOD program.

2. Employee productivity improves through OBMOD program.

3. A reduction in absenteeism of up to 18-50% is seen through OBMOD programs.

4. OBMOD programs have resulted in 90% decrease in tardiness.

5. Safety, accident prevention: 33% reduction, lot of money saved on medical bills and thus organizational

time saved.

6. Sales performance improves due to OBMOD programs.

Correcting Group Dysfunctions

Dysfunctions of groups refer to the negative functions of groups. These include the following four:

1. Norm Violation

2. Group Think

3. Risky Shift

4. Social Loafing

Following are some of the techniques of correcting group dysfunctions:

Shaping

When managers attempt to mould individuals by guiding their learning in graduated steps, we are shaping

behaviour. Consider the situation in which an employee's behaviour is significantly different from that

sought by management. If management only reinforced the individual when he or she showed desirable

responses, very little reinforcement might be taking place. In such a case, shaping offers a logical approach

toward achieving the desired behaviour.

We shape behaviour by systematically reinforcing each successive step that moves the individual closer to

the desired response. If an employee who has chronically been a half hour late for work comes in only 20

minutes late, we can reinforce this improvement. Reinforcement would increase as responses more closely

approximate the desired behaviour. The procedure for shaping is as follows:

1. Chart: Define desired behaviour

2. Reward: responses that approximate desired behaviour

3. Use differential reinforcement: to refine each step and reinforce desired behaviour.

Management by Objectives

Another method for correcting group dysfunctions is through the process of MBO. It includes the

following five steps:

1. Setting overall objectives

2. Developing organization

3. Setting individual goals

4. Periodic reviews

5. Final Appraisal

OBMOD

The third method of correcting group dysfunctions is through OBMOD programs. It includes the

following steps:

1. Identify

2. Measure

3. Analyze

4. Intervene

5. Evaluate

REFERENCES

· Luthans, Fred. (2005). Organizational Behaviour (Tenth Edition). United States: McGraw Hill Irwin.

· Mejia, Gomez. Balkin, David & Cardy, Rober. (2006). Managing Human Resources (Fourth Edition).

India: Dorling Kidersley Pvt. Ltd., licensee of Pearson Education in South Asia.

· Robbins, P., Stephen. (1996). Organizational Behaviour (Seventh Edition). India: Prentice Hall, Delhi.

· Huczynski, Andrzej & Buchanan, David. (1991). Organizational Behaviour: An Introductory Text

(Second Edition). Prentice Hall. New York.

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Organizational Psychology (PSY510)

Moorhead, Gregory & Griffin, Ricky. (2001). Organizational Behaviour (First Edition). A.I.T.B.S.

Publishers & Distributors. Delhi.

OBMOD; The effectiveness of OB-MOD.: http://faculty.css.edu/dswenson/web/OB/obmod.html

FURTHER READING

O.B. Mod. File Format: http:/www.haworthpress.com/store/E-

Text/View_EText.asp?sid=164BXA9MAK1N9PGCFVQ4XXCR76Q6ATN7&a=3&s=J075

What is Organizational Behavior Management/OBM?: http://www.behavior.org/psa/whatisobm.cfm

Organizational Behavior Management: What it is and how to do it: A management handbook. New

York: Pergamon Press. Redmon, W. K., & Agnew, J. L. (1991a):

http://www.obmnetwork.com/resources/articles/ABA2004br/Austin_WhatHow.ppt

Organizational Behavior and Modification: http://www.management-hub.com/hr-behavior.html

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