Foundations of organization Behavior

Emergence of Organizational Behaviour

First approaches to the study of management were:

1. Scientific management
2. Classical organization theory

Central theme of both theories was:

 Rationality
 Efficiency
 Standardization
 Role of individuals and group in organizations were either ignored altogether or
given only minimal attention.

Precursors of Organizational Behaviour

 In nineteenth century, Robert Owen, attempted to better the condition of

industrial workers.
 In twentieth century, Hugo Munsterberg argued that field of psychology could
provide important insight into areas such as motivation and hiring of new
employees.
 Mary Parker Follett believed that management should become more democratic.

1. The Hawthorne Studies

Conducted during: 1927 to 1932.

Conducted at: western electric’s Hawthorne Plant near Chicago.
Conducted by: Elton Mayo, Roethlisberger and William Dickson.

Experiments

Experiment I: Illumination experiment (1924-27)

Effect of different levels of lighting on productivity.

Result: No relationship of lighting and productivity.

Experiment II: Relay assembly test room experiments (1927-28)

To find out the effects of changes in working hours and other working conditions
on productivity.

Experiment III: Mass Interviewing Programme (1928-30)

 To find out the worker attitudes and sentiments.

Experiment IV: Bank wiring observation room experiment (1931-32)

Effect of piecework incentive system.

Result: The group as whole established an acceptable level of output for its
members and worker were producing up to that level only.

Conclusions and Implication of Hawthorne Experiments.

1. Social Factor in Output: Level of production is set by social norms and not
necessarily by physiological capacities and economic rewards.
2. Groups: Management cannot deal with worker as individuals but as a member of
workgroups. The group determines their norms of behaviour.
3. Leadership: Informal leader is more important than formal one.
4. Communication: through communication, worker can be explained why a
particular course of action is being taken, participation of worker can be sought in
decision-making process and problems faced by them may be identified.
5. Conflict: The conflict generates in the organization because of the creation of
groups with conflicting objectives. This conflict raises the problem of adjustment
of individual to the organization.
6. Supervision: The friendly to the worker, attentive genuinely concerned
supervision affects the productivity favorably.

2. The Human Relation Movement

Basic Premises

People respond primarily to their social environment, that motivation depends on social
needs than on economic needs, and that satisfied employee’s work harder than unsatisfied
employees.
Contributors

Mc Gregor – Theory X and Theory Y

Abraham Maslow – Theory of Motivation

Theory X Theory Y
1. People do not like work and try to 1. People do not naturally dislike
avoid it. work; work is a natural part of their
2. People do not like work, so lives.
managers have to control, direct, 2. People are internally motivated to
coerce, and threaten employees to reach objectives to which they are
get them to work toward committed.
organizational goals. 3. People are committed to goals to
3. People prefer to be directed to avoid the degree that they receive
responsibility, to want security, personal rewards when they reach
they have little ambition. their objectives.
4. People will seek and accept
responsibility under favorable
conditions.
5. People have the capacity to be
innovative in solving organizational
problems.
6. People are bright, but under most
organizational conditions their
potentials and underutilized.

3. Human Behaviour Approach

In contrast to human relations, which assume that happy worker are productive
workers, the behavioral scientists have been, goal and efficiency oriented and
consider the understanding of human behavior to be the major means to that end.
This approach has emphasized on the following things in the organization:

1. Motivating and Leading of Employees.

2. Group Dynamics
3. Conflict Management
4. Introduction of Organizational Change