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Organization behavior Management- it is the art of knowing exactly what u want to do and then seeing that it is done in the

cheapest and best way. 4 aspect- economic performance- high operation efficiency Directing people- making people work Decision making- making decisions Executive functions- POSDC Nature and characteristics of mgmtMgmt is a process- series of interrelated activities in sequence-POSDC It is an abstract phenomenon- cannot be seen or touched Decision making- success depends on quality and timeliness of decisions Working with and through people- leading and motivating people Goal oriented- achieves goals with given resources and time Integrates activities Universal and multi disciplinary Is mgmt an art or science? ART- practical knowhow Needs experience Needs creativity Personal element Science- knowledge developed systematically Fact based Impersonal and unbiased results Clarity of concepts Empirical evidence Universal Cause and effect relationship ARTFUL SCIENCE Levels in mgmt

1. Top level- BOD, CHAIRMAN< CEOS a. Determine objectives, policies, rules and procedures i. Analyses and evaluate business environment and responses ii. Finalize strategic decisions iii. Decide structure iv. Deal with legal , financial and tech issues 2. Middle level- upper middle level and lower middle level a. Dept heads- efficient functioning of their respective dept, they plan operations, guide employees, coordinate efforts, manage resources, maintain relations b. Deputy mgrs- they assist UML 3. Bottom level- supervisor, sales officer- more relevant to production/operation and marketing activities a. Prepare and implement plans for day to day activities b. Maintain discipline c. Manage materials and facilities d. Report performance and problems Classification of mgmt functions- POSDC 1. Planning-planning function, thinking process, determines what to do, why to do, when to do, how to do, who to do, best solution among alternatives, forecasting and DM 2. Organizing- depends on the type of plan, defines the structure, people, task, responsibility, authority of a particular plan. Determines the activities, groups. prepares the organization charts and manuals 3. Staffing- filling the positions created by organizing, acquiring , maintaining and developing HR for the smooth function of various operations, manpower planning, selection and recruitment, T and D, wage and salary determination, promotion and transfer, performance apprise. 4. Directing- instructing, guiding, inspiring, supervising people to make them work, leadership qualities, motivation, communication , supervising are necessary.

5. Controlling- critical/ regulatory function, ensures the plan has been implemented successfully and the objectives accomplished. Corrective actions are taken. Planning is meaningless without a proper control and controlling g is not possible without a good plan. Mgmt objectivesSocial, economic, human and national. Managerial roles- views of MINTZBERG- 10 roles in 3 sets Interpersonal- figurehead, leader, liaison Informational- monitor, disseminator, spokesperson Decisional entrepreneur, disturbance handler, resource allocator, negotiator

Schools of mgmt thought The different views on mgmt given by experts are known as mgmt thought and the teams of persons who develop these thoughts are known as schools of mgmt Classification of SMT Classical school scientific mgmt, administrative mgmt Neo classical school- behavioral and human relations school Modern school- system school, social system and social tech system school, contingency school Others- empirical, mgmt process, decision theory , mathematical, HR school Classical school- FW Taylor, Henri Feyol, Gilberth, Gantt Scientific mgmt- FW Taylor considered as the father of scientific mgmt Contributors- Gantt chart by Gantt- graphical representation of duration of tasks against time. Work study and psychology of work by gilberth, division of labor, time study techniques, quality control by charles baggage, importance of productivity and way to improve it by FW tylor. FW tylor was the first to define managerial problem in a scientific way. Elements of SM1. Separation of planning and doing- functional foremanship 2. Job analysis- best way of doing a job a. Time study, motion study, method study, rest and fatigue study

3. Differential wage system- associate wages with productivity 4. Standardization 5. Scientific selection and training 6. Mutual revolution- mutual cooperation between mgmt and workers 7. Financial incentives 8. Economic perspective- increase efficiency by decreasing cost and wastage 9. Replacing rule of thumb with science 10. Harmony in group not discord 11. Cooperation , not chaotic individualism Administrative mgmt- Henry fyol is considered the father of administrative mgmt He classified adm. Mgmt into 4 groups1. classification of business activities:- technical, accounting, commercial, financial, managerial, security 2. Managerial qualities:- physical, mental, moral, educational, technical, experience. 3. general principles of mgmt:-division of labor, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual to general interest, remuneration, centralization, scalar principle, order, equity, stability, initiative, esprit de corps 4. elements of mgmt:- planning, organizing, commanding, coordinating and controlling Neoclassical school- also known as human relation school. Very similar to behavioral school of mgmt. pioneered by Elton mayo and team- hawthorn experiments- . Highlights the importance of human factors in organization, the complex nature of humans at work, the balance between inducements and contributions Main areas of neoclassical school Interpersonal relations and inter group behavior Learning, perception, attitude , personality elements Transactional analysis and ego state

Change and conflict mgmt Group dynamics Work design and org climate Leadership, motivation communication and supervision elements Main points:Makes mgrs to treat humans as valuable assets Authority if not accepted, cannot make people work- participation, decentralization, recognition, and acceptance. Solve human problems; make workers happy- which increases productivity. Informal groups are very powerful and uncontrollable- they affect performance and relations, informal communications and informal relations are very necessary. Directing techniques- LMCS- are very important Behavior can be generated, studied, shaped, modified, and controlled. Mgr should sincerely try these to increase productivity. Proper work climate is essential. Modern school- this focuses on more contemporary situations- problems, environmental forces and opportunities. Here we have 1. system school 2. contingency school 3. social system and social technical system school

1. system school- (1950-) a. Classical school failed because it had a narrow vision, inability for integration and inability to view mgmt as a whole. System is a set of interrelated, interconnected and interdependent elements interacting continually both internally and externally to form a complex entity. It is a combination of many subsystems, and views organization s a unified and purposeful system of interrelated parts

Pioneer of system school is Chester Bernard


Main highlights:-mgmt system also consist of many subsystems like finance, marketing production personnel etc Systems and subsystems interact continuously. System generates synergy- parts working as a system contribute more than if each of them works independently System needs to be open, dynamic, multi dimensional, a multidisciplinary System is highly probabilistic

Social systems school- considers mgmt as a social system; it gives importance to sociological studies rather than psychological studies as in behavioral school Chester Bernard and vilfredo pareto are the pioneers More emphasis to social and cultural relations and cooperation based mgmt system Need for formal and informal communication is highlighted and importance to informal groups is duly noted. Social technical system school-here mgmt study and practice are not limited to social issues. The technology and production methods affect the social system thereby affecting the attitudes, satisfaction and behavior of the workers. Contingency school- most relevant and modern thought. Implies that mgmt practices are purely situational. Joan woodward, mintzberg are the main contributors Best fit approach in one situation may not be valid for another situation. Mgr is to identify which technique is the beat for a particular situation at a given time. He should understand the environment and make required adjustments on continues basis to develop and excel. The main situational factors are environmental, organizational and individual.. Organizing v/s organization Organizing is a systematic attempt to divide work into activities, to group these activities, to assign activities and delegate authority, to define and establish relationship among groups to harmonize and coordinate efforts of people to achieve desired results effectively.

Organization is a structure of complex interrelated interconnected parts that provides a basis for the implementation of plans and achievement of desired goals. Organizing is a process whereas organization is a structure. Organizing process:Specifying objectives Determining activities to be performed Grouping activities Assigning responsibilities Delaying authority Establishing interrelationships Preparing organizational charts and manuals Significance Tool for mgmt action Achievement of objectives efficiently Provision for all activities Specialization Delegation of authority / effective work assignment Clarity and reduced conflicts Promotion of healthy relations and creativity Optimum use of resources Better coordinating, satisfaction and morale Reputation and good will Flexibility and balance

Main features for an effective organization Simplicity- structure should be simple to understand and free from complications Flexibility- capable of coping with the ever changing business environment. Easily able to make the necessary changes both internal and external Stability- basic structure must be permanent

Suitability- structure should be suitable to the overall conditions of the business unit Provision for top mgmttop mgmt should be present to guide, supervise coordinate and control the efforts of all dept Human element- should be capable to meet human needs, motivate them and control their behavior to get things done in an efficient manner. Specialization- similar types of activities performed under one function which results in increased efficiency Scalar chain- clear and unbroken line of authority from top to bottom which facilitates speedy action and better coordination Unity of direction- every subordinate should get orders, direction and guidelines from one superior and is responsible to only that superior. Balance- there should be a balanced approach between responsibility and authority. Absoluteness- ultimate responsibility should be fixed for the final outcome Staff function- proper use of staff members Minimum levels- as far as possible there should be minimum levels which facilitate smooth communication and less complications Span of control- optimum span of control should be maintained. Organization structure It is an effective mechanism that helps coordinate employees efforts for accomplishing goals Key elementsVision and goal Objectives and targets Main activities Decision making Formal relation Communication Delegating and decentralization Span of control Organization climate

Leadership styles Physical facilities Human resources Types of organizational structures Entrepreneurial Line Line and staff Functional Commit Project Matrix Management by objectives Management by exception Management by participation Management by situations

Organizational behavior Consists of two words- organizational- related to organization and behavior- observable / measurable response and reaction. Systematic study of human behavior in an organization for improving managerial decision making and productivity Its multidisciplinary- psychology, anthropology, sociology, politics, economics. Objectives:To describe human behavior To understand behavior To predict behavior To modify and control behavior OB is concerned with describing, understanding, predicting, shaping, modifying, identifying and controlling human behavior- individual or group- in an organization.

CharacteristicsSystematic and scientific study of humans at work Performance oriented Can study, shape, describe, predict, modify, control human behavior Its a major part of mgmt, Studies the relationship between behavioral causes and resulting outcomes Multidisciplinary and universal Input to decision making and not a direct solution to any human problems What is human nature? It refers to the distinguishing characteristics which include ways of thinking, feeling and caring. It is always unpredictable and difficult to comprehend. Similarities and dissimilarities in individuals:Physical featuresSame type of organs and systems Different in looks and strengths CultureSame culture Different values Psychological factors Attitudes, motivation, perception Different according to nature and situation Sensation and interpretation Same senses Different interpretation Needs Same needs-physiological, safety, esteem Intensity and ways to satisfy these needs vary Human virtues Same virtues

Different intensity and meanings Different models of men at work Economic man- works for money, evaluates his effort, contribution and commitment against money Social man-likes to built, improve and maintain social relations for satisfying social needs like affiliation, belongingness, acceptance etc Organization man- prioritizes organizational needs over personal needs. Committed and loyal to org, extends cooperation, involves in interactions with others and keeps association with organizational members Self actualizing man- attempts to do something better, something different and something special to remain self satisfied. Achievement is a source of satisfaction Emotional/ impulsive man- reacts immediately. Not calculated or rational. Emotional or passionate behavior Compulsive man- exerts most desirable behavior, behaves deliberately and consciously to satisfy others expectations. His behavior is regulated by original policies, rules and personality aspects. Behavior seems calculated t influence others Complex man- difficult to understand or predict. Anytime a mix of above models. Behavior do not take place in a predetermined cause and effect manner. Each successive model is an extension of the previous on and not a replacement. Man models at workhuman behavior------group influence, mgmt influence, organization influence------OB Importance of OB Most organizational problems are human problems and can be brought to an end by understanding humans. Helps analyze complex nature of humans at work, understands workforce and cultural diversity to improve performance Avoids assumptions about people and suggest right approach to manage them Prevents/minimizes unexpected events, improves productivity, reduces wastages Easily exercises motivation, leadership communication and supervision activities.

Contributing disciplines Anthropology, psychology, sociology, social psychology, political science, economics, IT

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