ORGANIZATIONAL BEHAVIOR

MANAGEMENT THOUGHT AND ORGANISATIONAL BEHAVIOUR

What Managers Do

Managerial Activities
Make decisions Allocate resources Direct activities of others to attain goals

Where Managers Work

Management Functions

Planning

Organizing

Management Functions
Controlling Leading

Management Functions (contd)

Management Functions (contd)

Management Functions (contd)

Management Functions (contd)

Mintzbergs Managerial Roles

Mintzbergs Managerial Roles (contd)

Mintzbergs Managerial Roles (contd)

Management Skills

Allocation of Activities by Time

Enter Organizational Behavior

Preclassical Contributors to Management Thought

Name Robert Owen Period 1771-1858 Contribution Proposed legislative reforms to improve working conditions of labor Advocated concept of division of labor; devised a profit sharing plan Advocated the study of Management

Charles Babbage Andrew Ure

1792-1871

1778-1857

Charles Dupin
Henry R. Towne

1784-1873
1844-1924

Advocated the study of Management

Emphasized the need to consider management as a separate field of study

Key Developments in OB History

The Classical Approach to management
Scientific management:
The application of scientific methods to increase an individual workers productivity. Frederick W. Taylor (1856-1915) emphasized on Need for developing a scientific way of performing each job Training and preparing workers to perform a particular task Establishing harmonious relations between mgt and workers Major Practices emerging from Taylors approach are Piece rate Time and motion study (Frank Gilbreth is considered father of motion study) - Frank and Lillian Gilbreth: Therbligs - Henry Lawrence Gantt (1861-1919): Task and Bonus System and Gantt Chart

Key Developments in OB History (contd)

Administrative management
The use of management principles (planning, organizing, commanding, coordinating, and controlling) to efficiently structure and manage organizations. Henri Fayol (18451925) Fayols 14 principles of Management 1. Division of work 8. Centralisation

2. Authority and Responsibility

3. Discipline 4. Unity of command 5. Subordination of ind to group interests 6. Unity of direction 7. Remuneration

9. Scalar chain
10. Order 11. Equity 12. Stability of tenure of person 13. Initiative 14. Espirit de corps

Key Developments in OB History (contd)

Bureaucratic Management- By Max Weber (1864-1920) Characteristics of bureaucratic structure
Characteristics Division of labor Description Duties and responsibilities of all employee are clearly defined Rules and regulations are clearly stated to instill discipline Managers base their decisions on rationality rather than on emotions and feelings Activities of employees at each level are monitored

Abstract rules and regulations Impersonality of managers Hierarchy of organizational structure

Key Developments in OB History (contd)

Behavioural Approach
Marry Parker Follet (1868-1933): Power Sharing

Elton Mayo (1880-1949): Human Relations Movement

Abraham Maslow (1908-1970): Need Hierarchy Douglas McGregor (1906-1970): Theory X and Y Chris Argyris: Model I and II organisations

The Hawthorne Studies at Western Electric

Originally intended as a study of the effects of environmental changes on productivity.

The Hawthorne Effectthe tendency of people to

behave differently (perform better) when they receive attention.

Key Developments in OB History (contd)

The Hawthorne Studies Key Findings 1. Economic incentives are less potent than generally believed in influencing individual output. 2. Dealing with human problems is complicated and challenging. 3. Leadership practices and work-group pressures strongly influence productivity, satisfaction and performance. 4. Personal problems influence worker productivity. 5. Effective communication is critical to success. 6. Factors embedded in the social system influence behavior.

Key Developments in OB History (contd)

The Human Relations Movement
Based on belief that managerial practices, morale, and productivity are strongly linked and that the proper working environment enhances worker capabilities.

Key Developments in OB History (contd)

Douglas McGregor
Theory X
Managers assume people dislike work, avoid responsibility, lack ambition, and need close supervision.

Theory Y
Managers assume people enjoy work, accept responsibility, are innovative and are self-controlling.

Key Developments in OB History (contd)

Chris Argyris: Matching human and organisational development He classifies organisations as Model I and Model II organisations Model I organisations have employees pitted against each other, are manipulative and are not willing to take risks Model II organisations have employees that are open to learning and less manipulative, have access to information and hence make informed decisions making them willing to take risks

Key Developments in OB History (contd)

The Contingency Approach
Emphasizes that there is no one best way to manage people.
Different situations require managers to make decisions about managerial methods and approaches. Knowledge of organizational behavior and management is essential before deciding a course of action.

A Framework for Studying Organizational Behavior

Individual Level Individual differences, mental ability, and personality Learning, perception, attitudes, values, and ethics Individual decision making and creativity Foundation concepts of motivation Conflict, stress, and well-being

Groups and Interpersonal Relations Interpersonal communication Group dynamics and teamwork Leadership Power, politics, and influence

The Organizational System and the Global Environment Organizational structure and design Organizational culture and change The learning organization and knowledge management Cultural diversity and international organizational behavior

Contributing Disciplines to the OB Field

Contributing Disciplines to the OB Field (contd)

Contributing Disciplines to the OB Field (contd)

Contributing Disciplines to the OB Field (contd)

Contributing Disciplines to the OB Field (contd)

The Dependent Variables

The Dependent Variables (contd)

The Dependent Variables (contd)

The Dependent Variables (contd)

The Independent Variables

Independent Variables

Individual-Level Variables

Group-Level Variables

Organization System-Level Variables

Challenges and Opportunity for OB

Responding to Globalization
Increased Foreign Assignments Working with people of different cultures Coping with Anticapitalisation Backlash Overseeing Movement of Jobs to Countries of Low-Cost labour

Managing Workforce Diversity Improving Quality and Productivity Responding to the Skill Shortage Improving Customer Service

Challenges and Opportunity for OB (contd)

Improving People Skills Empowering People Stimulation Innovation and Change Helping Employees Balance Work/Life Conflicts Improving Ethical Behavior