ORGANISATION BEHAVIOUR

ORGANISATION BEHAVIOUR

Organisation Behaviour is concerned with the

study of what people do in an organisation and
how that behaviour affects the performance of the
organisation.

CLASSICAL THEORIES

Classical and scientific theories emerged in the 19th century

Emphasis on purpose, formal structure, hierarchy of management,

technical requirements and common principles of organisation.

Classical Management Perspective

Scientific Management
Concerned with improving the performance of individual workers (i.e.,
efficiency).
Grew out of the industrial revolutions labor shortage at the beginning of the
twentieth century.
Administrative Management
A theory that focuses on
managing the total organization
rather than individuals.

Classical Management Perspective

Scientific Management:

Frederick Winslow Taylor

Administrative Management:

Henri Fayol (18411925)

Lyndall Urwick (18911983)
Max Weber (18641920)

Frederick Taylor's life (1856-1915)

Frederick Winslow Taylor, was born on March 20, 1865.

Taylor was always counting and measuring things to figure a better way of
doing something.

At age twenty-five, Taylor earned an engineering degree at the Stevens

Institute of Technology in New Jersey.

Worked as a machinist and pattern maker in Philadelphia at the Enterprise

Hydraulic Works, then became a common laborer at the Midvale Steel
Company.

Frederick Taylor's life (1856-1915)

He started as shop clerk and quickly progressed to machinist, foreman,

maintenance foreman, and chief draftsman.

Within six years he advanced to research director, then chief engineer.

Emphasis on obtaining increased productivity from individual workers through

the technical structuring of the work organisation and the provision of monetary
incentives as the motivator for higher levels of output

Used time studies of jobs, standards planning, exception rule of management,

slide-rules, instruction cards, and piece-work pay systems to control and motivate
employees.

Frederick Taylor's

Taylors main focus:

Maximize workers capacity
and profits
Problem:
Get employees to work at
their maximum capacity
Primary focus:
TASKS

TAYLORS PRINCIPLES

The
development
of a true
science for
each
persons
work

The scientific
selection,
training and
development
of the
workers

Co-operation
with the
workers to
ensure work
is carried out
in the
prescribed
way

The division
of work and
responsibility
between
management
and the
workers.

Summary of Scientific Management

Assumptions
Productivity is a primary workplace problem
Managers should plan and direct the work
Individuals are economically motivated
Contributions
Scientific or systematic study of work (time and motion)
Division of laborManagers vs workers
Setting of work standards (and job descriptions)
Careful selection and training of workers
Use of Incentives
Limitations
Social needs of workers overlooked
Many studies werent very scientific
Loss of self-control alienated workers
Group dynamics were ignored
110

Administrative Management Theory

Focuses on managing the whole organization rather than individuals

Henri Fayol (18411925)
Was first to identify the specific management functions of planning,
organizing, leading, and controlling.
Lyndall Urwick (18911983)
Integrated the work of previous management theorists.
Max Weber (18641920)
His theory of bureaucracy is based on a rational set of guidelines for
structuring organizations.

Henri Fayols 14 Principles Of

Management

1. Division Of Work
Specialization allows the individual to build
up experience, and to continuously improve
his skills. Thereby he can be more
productive.

2. Authority
The right to issue commands, along with
which must go the balanced responsibility for
its function.

3. Discipline
Employees must obey, but this is two-sided:
employees will only obey orders if
management play their part by providing
good leadership.

4. Unity Of Command
Each worker should have only one boss with
no other conflicting lines of command.

5. Unity of Direction
People engaged in the same kind of activities
must have the same objectives in a single
plan. This is essential to ensure unity and
coordination in the enterprise. Unity of
command does not exist without unity of
direction but does not necessarily flows from
it.

6. Subordination of individual interest

Management must see that the goals of the
firms are always paramount.

7. Remuneration
Payment is an important motivator although by
analyzing a number of possibilities, Fayol
points out that there is no such thing as a
perfect system

8. Centralization (Or Decentralization)

This is a matter of degree depending on the
condition of the business and the quality of its
personnel.

9. Scalar chain (Line of Authority)

A hierarchy is necessary for unity of direction.
But lateral communication is also fundamental,
as long as superiors know that such
communication is taking place. Scalar chain
refers to the number of levels in the hierarchy
from the ultimate authority to the lowest level in
the organization. It should not be overstretched and consist of too-many levels

10. Order
Both material order and social order are
necessary. The former minimizes lost time and
useless handling of materials. The latter is
achieved through organization and selection.

11. Equity
In running a business a combination of
kindliness and justice is needed. Treating
employees well is important to achieve
equity.

12. Stability of Tenure of Personnel

Employees work better if job security and
career progress are assured to them. An
insecure tenure and a high rate of employee
turnover will affect the organization
adversely.

13. Initiative
Allowing all personnel to show their initiative
in some way is a source of strength for the
organization. Even though it may well involve
a sacrifice of personal vanity on the part of
many managers.

14. Esprit de Corps

Management must foster the morale of its
employees. He further suggests that: real
talent is needed to coordinate effort, encourage
keenness, use each persons abilities, and
reward each ones merit without arousing
possible jealousies and disturbing harmonious
relations.

Max Weber

He was a germen socialist. He has the first person believed

that well defined authority structure with organizational
behavior.

Weber ideal bureaucracy:

Job specialization
Authority hierarchy
Formal selection
Formal rules & regulation
Impersonality
Career orientation

Lyndall Urwick (18911983)

Principal of objective
Principal of correspondence
Principal of responsibility
The scaler principal
Span of control principal
Principal of specialization
Principal of co-ordination
Principal of definition

HUMAN RELATIONS APPROACH

During the 1920s, attention began to focus on social factors at

work, groups, leadership, the informal organisation and
behaviour of people.
Behavioural and informal are alternative headings sometimes
given to this approach.
Five theorists:Elton mayo
Chester bernard
Abrahm maslow
Doules Mc Gregar
Dale carnegio

Elton Mayo

Elton mayo conducted the famous or Hawthorne

experiments. Their experiments are continued till 8
years which are in serious way and conducted in
western electric Hawthorne plant in Chicago .

Illumination Studies 1924-1927

Funded by General Electric

Conducted by The National Research Council (NRC) of the National Academy of

Sciences with engineers from MIT

Measured Light Intensity vs. Worker Output

Groups:-1. Control group
2.Experimental group
Result Each change (including decreases) resulted in higher output and
reported greater employee satisfaction

Conclusions:
Light intensity has no conclusive effect on output
Productivity has a psychological component Researchers interaction with
the workers influenced higher performance

Concept of Hawthorne Effect was created

Relay Assembly Test Experiments 19271929

Group of 6 Women (5) Assemblers and (1) Layout Operator

One Observer Explained every incremental change and recorded results

Manipulated factors of production to measure effect on output:

Pay Incentives
Length of Work Day & Work Week
Use of Rest Periods
Company Sponsored Meals

Management Visits / Special Attention

Result Most changes resulted in higher output and reported greater employee
satisfaction

Conclusions:
Experiments yielded positive effects even with negative influences workers
output will increase as a response to attention
Strong social bonds were created within the test group. Workers are
influenced by need for recognition, security and sense of belonging

Bank Wiring Observation Group 19311932

14 Male Workers

Few Special Conditions

Segregated work area

No Management Visits

Supervision would remain the same

Observer would record data only no interaction with workers

New incentive pay rate was established for the small group

Any increases in output would be included in departmental pay incentives

Result No appreciable changes in output

Conclusions:

Well established performance norms existed in the group

Informal Social Organization dictated little deviation from established production standards
Systemic Soldiering

Informal Social Organizations protect workers from managers who

Raise production standards
Cut pay rates
Challenge workplace norms

Maslows Theory
We each have a hierarchy of needs that
ranges from "lower" to "higher." As lower
needs are fulfilled there is a tendency for
other, higher needs to emerge.
Daniels, 2004

Maslows Theory
Maslows theory maintains that a person
does not feel a higher need until the needs
of the current level have been satisfied.
Maslow's basic needs are as follows:

Self-Actualization

Esteem

Belonging

Safety

Physiological

Basic Human Needs

Physiological Needs

Food

Air

Water

Clothing

Sex

Safety and Security

Safety Needs

Protection

Stability

Pain Avoidance

Routine/Order

Love and Belonging

Social Needs

Affection

Acceptance

Inclusion

Esteem Needs
Esteem

Self-Respect

Self-Esteem

Respected by Others

Self-Actualization

Achieve full potential

Fulfillment

HUMAN RELATIONS APPROACH

MASLOWS HIERARCHY OF HUMAN NEEDS

General Examples
NEEDS
Organisational
Examples
Achievement
SELF-ACTUALISATION
Challenging Job
Status
ESTEEM
Job Title
Friendship
BELONGINGNESS
Friends in the Work
Group
Stability
SECURITY
Pension Plan
Sustenance
PHYSIOLOGICAL
Base Salary

HUMAN RELATIONS APPROACH

McGREGOR argued that the style of Management adopted is a
function of the managers attitudes towards human nature and
behaviour at work.
He put forward two suppositions called Theory X and Theory Y which
are based on popular assumptions about work and people.

HUMAN RELATIONS APPROACH

THEORY X ASSUMPTIONS

People do not like work and try to avoid it.

People do not like work, so managers have to control, direct,
coerce, and threaten employees to get them to work toward
organisational goals.
People prefer to be directed, to avoid responsibility, to want
security, and have little ambition.

HUMAN RELATIONS APPROACH

THEORY Y ASSUMPTIONS
People do not naturally dislike work; work is a natural part of their
lives.
People are internally motivated to reach goals to which they are
committed.
People are committed to goals to the degree that they receive
personal rewards when they reach their objectives.
People will seek and accept responsibility under favourable
conditions.
People have the capacity to be innovative in solving organisational
problems.
People are bright, but generally their potentials are under-utilised.

Chester Bernard(function of
executives)

Functions:Establish and maintain effective communication system.

Higher and retain effective personnel
Secure essential effort from these personnel.
Conditions:-

Employee must understand what you want them to do.

A employee must be able to comply with the directives and this is a matter of
skill and training.
Employee must think that directive is in keeping with the organizational
objective. Employee must think that the directive is not contrary to their
personal goal.

Dale Carnegie(how to win friends)

Make other feel important through a sincere appreciation of their effort.

Strive to make a good first impression.

Win people through this way of thinking by letting others do the talking being
sympathetic and never telling a man he is wrong.

Change people by praising their traits(qualities) and giving the offender of

opportunity to save means gave them a chance to speak.

Human Resource Management Views

Assumptions
Interesting work motivates intrinsically
Workers are trustworthygive them responsibility
The Managers job is to challenge workers to develop their talents
Contributions
Theory X and Y
Participative decision-making and management
Job Enrichment and Job Redesign
Management by Objectives
More rigorously-tested theories
Limitations
Not everyone wants a challenging job
Complexity of individuals makes behavior difficult to predict.
Contemporary research findings are not often communicated to practicing managers in
an understandable form.