Organizational Behaviour

Organizational Theory

Taylor Elton Mayo Henry Fayol Max Weber

Evolution Of Management Thought

Classical Approaches
1890 1900 1910 1920

Contemporary Approaches
1930 1940 1950 1960

Systematic management Scientific management

Administrative management

Quantitative management

Systems Contingency theory theory

Current and future revolutions

Human relations

Organizational behavior

Bureaucracy

Frederick Winslow Taylor Frederick Winslow Taylor (1856 1915) was the first person who attempted to study human behavior at work using a systematic approach. Taylor studied human characteristics, social environment, task, physical environment, capacity, speed, durability, cost and their interaction with each other. His overall objective was to reduce and/or remove human variability.

Four Principles of Scientific Management 1. Study the way employees perform their tasks, gather informal job knowledge that employees possess, and experiment with ways of improving the way tasks are performed. 2. Codify the new methods of performing tasks into written rules and standard operating procedures.

Four Principles of Scientific Management 3. Carefully select employees so that they possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures. 4. Establish an acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level.
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Historical foundations of OB Theory of Administration

Henri Fayol (1919)
Fayols theory described the major management functions and several principles that act as a administrative guide. Five functions of management:
1. 2. 3. 4. 5. Planning Organizing Commanding Coordinating controlling

Fayols 14 principles
Division of labour Authority and responsibility Centralization Unity of command Unity of direction. Discipline Subordination of individual interests to the general interest. Remuneration Scalar Chain Order Equity Stability of tenure of personnel. Initiative Espirit De Corps Harmony

Historical foundations of OB Bureaucracy (Max Weber, 1922)

An administrative structure with well defined offices and functions and hierarchical relationships among the functions. The bureaucracy defines the authority when it develops its division of labour. The person who takes authority assumes the authority of that position.

Historical foundations of OB Bureaucracy (cont)

Features:
Clearly defined and specialized functions Use of legal authority Hierarchical form Written rules Technical trained bureaucrats Appointment based on technical competence Clearly defined career path

Fixed formal relationships among clearly defined hierarchically organized functions.

The Hawthorne Studies

Hawthorne Works of the Western Electric Company near Chicago; 1924-1932 these studies mark the starting point of the field of Organizational Behaviour Initiated as an attempt to investigate how characteristics of the work setting affect employee fatigue and performance (i.e., lighting). Found that productivity increased regardless of whether illumination was raised or lowered.

Started in 1924 to examine the relationship between light intensity and employee productivity a test group and a control group were used the test group initially did not show any increase or decrease in output in proportion to the increase/decrease in illumination. The control group with unchanged illumination increased output by the same amount overall by the test group. Subsequent phases brought the level of light down to moonlight intensity: the workers could barely see what they were doing, but productivity increased. The results baffled the researchers. Obviously, something besides

The serendipitous results of these experiments provided the impetus for the further study of human behaviour in the work place.

Modern Organization theories Systems Socio-technical theory Situational Contingency

Features of modern organization theories

systems viewpoint, dynamic process of interaction, multileveled and multidimensional, probabilistic, multidisciplinary, descriptive, multivariable, and adaptive and organic

Systems and Socio-technical approach

Systems mutually dependent sub-systems. comprises of 3 elements Components individual and their behaviour , roles Linking processes communication & linkage among units. Goals of organization Socio-technical consists of the people, the technical system and the environment. people are social units uses technical tools for improvement of work. equilibrium among social system, technical system and environment results in effectiveness

Situational and Contingency Approach

Situational Approach (Selznick, 1949; Burns and Stalker,1961; Woodward, 1965; Lawrence and Lorsch, 1967) cannot be universal guidelines which are suitable for all situations. organizational systems are inter-related with the environment. Contingency Approach (Hellriegel and Slocum, 1973) suggests that different environments require different organizational relationships for optimum effectiveness, business environment is dynamic and organization must adapt to changes to continue to evolve .

The Z Theory
Proposed by William Ouchi
Combination of American & Japanese style of management. Paternalist in approach High motivation and job security and stability. Long term association among employee and organization i.e.. Loyalty. Slow yet gradual growth with optimum inducements.
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Why study OB? To attain the competencies needed to be an effective employee, team leader, and/or manager. Knowledge and skills gained should help to diagnose, understand, and explain what is happening around to an employee in his or her job.

Issues in OB
Issues in organizational behaviour are likely to result from areas of :
Workforce diversity Changes in the work force and customers Gender Race and ethnicity Age Quality management Technology Global environment Ethics

OB MODELS 1) Autocratic 2) Custodial 3) Supportive 4) Collegial

Autocratic
power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee need that is met is subsistence. Believed in use of force to improve performance. persons in power can demand work from workers pushing, directing and persuading tight control unfair practices, low payment and exploitation

Custodial
Economic resources with a managerial orientation of money. The employees in turn are oriented towards security and benefits and dependence on the organization. The employee need that is met is security. The performance result is passive cooperation. Developed as a soothe to autocratic model. Allowance for incentives and welfare schemes.

paternalism fringe benefits job security

Supportive
Leadership with a managerial orientation of support. The employees in turn are oriented towards job performance and participation. The employee need that is met is status and recognition. The performance result is awakened drives. Ensures organizational harmony. Mutual goal setting and optimum performance through mutual relationship building.
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Collegial
Partnership with a managerial orientation of teamwork. The employees in turn are oriented towards responsible behavior and self-discipline. The employee need that is met is self-actualization. The performance result is moderate enthusiasm. Mostly extension of supportive model. Ensures active teambuilding and working for a mutual goal. High performance organization culture through various reinforcements programs.

autocratic Custodial

Supportive

Collegial

Autocratic Custodial Supportive Collegial Economic Model depends on Power Model depends on Leadership Partnership resources PowerEconomic resourcesLeadershipPartnershipManagerial orientationAuthorityMoneySupportTeamworkEmployee Managerial orientation Authority Money Support Teamwork orientationObedienceSecurityJobResponsiblityEmployee psychological resultDependence on bossDependence on organizationParticipationSelf-disciplineEmployees needs Employee orientation Obedience Security Job Responsibility metSubsistemceMaintenanceHigher-orderSelfactualizationPerformance resultMinimumPassive Dependence enthusiasm cooperationAwakened drivesModerate Employee Dependence
psychological result on boss on organization Participation Self-discipline

Employees needs met

Subsistence Maintenance

Higher-order

Selfactualization Moderate 26 enthusiasm

Performance result

Minimum

Passive cooperation

Awakened drives

Done by Poushali Dey

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