HISTORY AND EVOLUTION OF ORGANIZATIONAL BEHAVIOUR

GAURI NAGPAL NIFT-MFM

Why do we need to study the History ?

Help us Understand:How management came to impose rules and regulations on employees Why Many workers in organizations do standardized & repetitive tasks on assembly lines. Why a number of organizations in recent years have replaced their assembly lines with team based work units.
Etc..

EARLY PRACTICES
ADAM SMITH
Known for his contributions to classical economic doctrine. Gave a Brilliant argument on the economic advantages that organizations and society would reap from the division of labor (also called work specialization). He concluded that division of labor: Raised productivity by increasing workers skill Saved time that is commonly lost in changing tasks Encouraged the creation of labor-saving inventions and machinery His finding led to the extensive development of assembly-line production processing.

CHARLES BABBAGE
He was a British mathematics professor who expanded on the virtues of division of labor first articulated by Adam Smith.

He added the following advantages:It reduces the time needed for learning a job It reduces the waste of material during the learning stage It allows for the attainment of high skill levels It allows more careful matching of peoples skills and physical abilities with specific tasks.

ROBERT OWEN
He was a Welsh entrepreneur who bought his first factory in 1789 at the age of 18. He was one of the first industrialists to recognize how the growing factory system was demeaning to workers. Harsh practices Employment of young children 13-hour workday Miserable working conditions He argued that Money spent on improving labor was one of the best investments that business executives could make.

Showing concern for employees both was profitable for management & would relieve human misery.
He suggested for: Regulated hours of work for all, Child Labor laws, Public education, company furnished meals at work & business involvement in community projects.

The Classical Era

1900 to mid-1930s

SCIENTIFIC MANAGEMENT
Frederick W. Taylor , a mechanical engineer described how the scientific method could used to define the one best way for a job to be done. He sought to create a mental revolution among both the workers and management by defining clear guidelines for improving production efficiency. He gave four principles of management: 1. Develop a science for each element of an individuals work 2. Scientifically select and then train , teach and develop the worker 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equally between management and workers

ADMINISTRATIVE THEORY
This theory describes efforts to define the universal functions that managers perform and principles that constitute good management practice.

Henri foyal , a French Industrialist, proposed that all managers perform five management functions: they plan ,organize ,command , co-ordinate and control.
He described the practice of management as something distinct from accounting, finance, production, distribution, and other typical business functions. He argued that management was an activity common to all human undertakings in business, in government & even in homes.

He gave 14 principles of management:

1. Division of work 2. Authority 3. Discipline

4. Unity of command 5. Unity of direction 6. Subordination of Individual Interests to the general interests 7. Remuneration 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability of tenure of personnel 13. Initiative 14. Esprit de corps

STRUCTURAL THEORY
German sociologist Max Weber developed a theory of authority structures and describing organizational activity as based on authority relations.

He described an ideal type of organization that he called bureaucracy, which was a system characterized by:Division of labor, Clearly defined hierarchy, Detailed rules and regulations & Impersonal relationships His theory became the design prototype for large organizations
Features of Webers ideal bureaucratic structure are:Job specialization Authority hierarchy Formal selection Formal Rules and Regulations Impersonality Career Orientation

SOCIAL MAN THEORY

Mary Parker Follett and Chester Barnard were two theorists who saw the importance of social aspects of organizations and acknowledged that human beings are the core of every organization and that human beings are social animals.

Follett proposed more people-oriented ideas. -Organizations should be based on a group ethic rather than individualism. -Managers job was to harmonize and coordinate group efforts. -Managers and workers should view themselves as partners.
Bernard saw organizations as social systems that require human cooperation. He proposed Organizations are made up of people who have interacting social relationships. Managers major roles were to communicate & to stimulate subordinates to high levels of effort. According to him , a major part of organizations success depended on:Obtaining co-operation from its personnel Maintaining good relations with people and institutions outside the organization with whom the organization regularly interacts.

In

response to the rise of trade unionism at the turn of the century a few firms created the position of welfare society The welfare secretaries assist the workers by giving them suggestions about medical care, educational facilities, housing etc.
In

1902 the National Cash Register Company established the first comprehensive labor department responsible for wage administration, grievances, employment and working conditions, record keeping, work improvement etc..

Hugo

Munsterberg created the field of industrial psychology in 1913.

He

emphasized on the scientific study of human behavior to indentify general patterns and to explain individual differences.
He

suggested the use of psychological tests to improve employee selection, the value of learning theory in the development of training methods and the study of human behavior in order to understand what techniques are most effective for motivating workers.

To

help relieve the effects of the depression on the US labor force in 1929, President Roosevelt supported the Wagner Act which recognized unions as the authorized representatives of workers able to bargain collectively with employers in the interest of their members.
The

Magna Carta legitimized the role of trade unions and encouraged rapid growth in union membership.
The

management began to try to improve working conditions and seek better relations with its workforce.

It was believed that the key to higher productivity in organizations was to increase employee satisfaction.

THE HAWTHORNE STUDIES

The

Hawthorne Experiments consist of two studies conducted at the Hawthorne Works of the Western Electric Company in Chicago from 1924 to 1932.
The

initial study in 1924 was conducted by a group of engineers seeking to determine the relationship of lighting levels to worker productivity.
Two

things emerged from the initial studies: (1) the experimenter effect, and (2) the social effect.

The

way to success was through winning the cooperation of others.

She

emphasized on making a good first impression, making others feel important through a sincere appreciation of their efforts.

Abraham Maslow
Maslow

proposed a theoretical hierarchy of five needs- Physiological, safety, social, esteem and selfactualization.

DOUGLAS MCGREGOR Has two sets of assumptions about human naturetheory X and theory Y.
Theory

X has negative view of people and theory Y has positive view of people.
Theory

Y is better guide to management practices because then the workers can exercise self direction, and accept responsibility and consider work to be natural as rest or play.

Behavioral

scientists are engaged in objective research of human behavior in organizations. Jacob Moreno.
Created

an analytical technique called sociometry for studying group interactions. Helps in constructing sociograms that identified attraction, repulsion and indifference patterns among group members. B.F. Skinner He said that behavior is a function of its consequences.

DAVID MCCLELLAND Through his experiments he was able to differentiate people with a high need to achieve from people with a low need to achieve.
His

research helps organizations to better match people with their jobs and to redesign jobs for high achievers so as to maximize their motivation potential. FRED FIEDLER He emphasized on the situational aspects of leadership.

FREDERICK HERZBERG Herzberg was the first to show that satisfaction and dissatisfaction at work nearly always arose from different factors. Concluded that people preferred jobs that offered opportunities for recognition, achievement, responsibility and growth. J.RICHARD HACKMAN AND GREG OLDHAM Explained how job factors influence employee motivation and satisfaction. Core job dimensions skill variety, task identity, task significance, autonomy, and feedback.