INFOLINK UNIVERSITY

COLLEGE
Post graduate studies
MBA program

Course title: Organizational Behavior

Instructor : Sintayehu Zeleke. (PhD)

Individual assignment

By : Rekiso Bekele (IHEBA 833-882-15)

1. Evolution and the development of OB
The field of organizational behavior (OB) has evolved over time, incorporating various
theories, perspectives, and research findings. Here is a brief overview of the evolution
of organizational behavior:

1.Early Studies (Late 19th to Early 20th Century): The foundations of OB can be
traced back to the late 19th and early 20th centuries with the emergence of scientific
management and industrial psychology. Scientific management, popularized by
Frederick Taylor, focused on improving efficiency and productivity through the
scientific study of work processes. Industrial psychology explored topics such as
employee selection, training, and motivation.

2.Human Relations Movement (1920s-1930s): The human relations movement

challenged the mechanistic view of organizations and emphasized the importance of
social interactions and employee satisfaction. Studies like the Hawthorne experiments
conducted at the Western Electric Hawthorne Works brought attention to the
influence of social factors, motivation, and employee morale on productivity. This era
marked a shift towards understanding the impact of human factors on organizational
outcomes.

3.Contingency Approach (1960s-1970s): The contingency approach recognized tat

there is no one-size-fits-all solution to organizational issues. It emphasized that
organizational behavior should be contingent upon various factors such as the
environment, technology, and organizational structure. This approach led to the
development of contingency theories, such as the contingency theory of leadership,
which argued that effective leadership depends on situational factors.

4.Systems Theory (1970s-1980s): Systems theory focused on understanding

organizations as complex and interconnected systems. It examined the interactions
and inter-dependencies between various components of an organization, including
individuals, groups, and the external environment. This approach highlighted the need
for a holistic understanding of organizations and the consideration of multiple factors
in organizational behavior analysis.

5.Cognitive and Behavioral Science (1980s-1990s): The cognitive revolution in

psychology influenced the field of organizational behavior by emphasizing the role of
mental processes, perception, and decision-making. Behavioral science concepts, such
as reinforcement theory and social learning theory, were applied to understand
individual and group behavior in organizations. This period also saw the rise of
research on topics like organizational culture, job satisfaction, and employee
motivation.

6.Contemporary Perspectives (2000s onwards): The field of organizational

behavior continues to evolve, incorporating emerging trends and perspectives. This
includes the study of topics like organizational justice, diversity and inclusion, work-
life balance, virtual teams, and ethical behavior. There is also a growing emphasis on
understanding the impact of globalization, technology, and changing work dynamics
on organizational behavior.

Furthermore, the advancements in technology and data analytics have allowed

researchers and practitioners to explore new avenues in organizational behavior, such
as studying big data, and artificial intelligence, and their implications for employee
behavior and organizational performance.

In earlier units we understood the concept and approaches to understand

organizational behavior. In order to understand further how the discipline of
organizational behaviour grew, it is necessary to know the evolution of organizational
behaviour. By understanding the evolution you will be able to trace the rules and
regulation to standardized and repetitive tasks an assembly lines being replaced with
team based work units. Three individuals played important role in influencing the
discipline of Organizational behaviour. They are Adam Smith, Charles Babbage, and
Robert Owen.
Adam Smith : was the first one who said that by dividing different tasks
organizations can gain in correcting them at the earliest. This he called as Division of
Labour and also called as work specialization. Smith’s thinking helped the
organizations that division of labour increased productivity by increasing each
worker’s skill and dexterity by saving time.
This helped the organizations in maintaining time loss and in creation of labour
saving interventions and machinery.
Charles Babbage : Though Charles Babbage advocated Smith’s Division of
labour, he added certain merits that accrue from division of labour. They are:
1. It reduces the time needed for learning a job .
2. It reduced the waste of material during the learning stage.
3. It allows for the attainment of high skill levels.
4. It allows a more careful matching of people’s skills and physical abilities with
specific tasks.
He also proposed that the economies from specialization should be as important as
doing mental work with reference to physical labour. In recent years we take the core
(specialization) as expertise among the professionals. If you look at doctors, they have
different expertise to treat patients with different aliments like Dermatologist,
Physician, Gynecologists etc. Therefore, when you look at the organizations around
you realize whether they are manufacturing or service industries they make wide use
of division of labour. Robert Owen He played a important role in the history of
organizational behaviour. He was the first industrialists to recognize how the practices
adopted in the factories are demeaning to workers. Repulsed by these practices like
employing young children below the age of ten, thirteen hour work days, unhygienic
working conditions he became a reformer. He argued with factory owners for treating
their equipment better than their employees. He also criticized them for buying best
machines and to run them employing cheap labour. He argued that investment on
employees is necessary for profitability of management and to end human misery. He
was more than hundred years ahead of his time when the propagated in 1825, for
regulated house of work, child labour laws, public education, providing meals at work
and business involvements in community projects.
THE CLASSICAL MOVEMENT
The classical era is from 1900 to mid 1930s. In this period the first general theories of
management began to evolve. The classical contributors are Frederick Taylor, Henri
Fayol, Max Weber, who laid the foundation for the current management practices.
This approach viewed an organization in terms of its formal structure and purpose.
The focus is on work planning, technical skills, management principles, and
assumption of logic and rationality in behaviour at work. The approach emphasizes
defining a clear organizational purpose, laying out specific objectives, and aligning
responsibilities across all levels of the 38 Introduction to Organisational Behaviour
organization as key to improved effectiveness. Managers are advised to define duties
and responsibilities and achieve work specialization through division of labour and
coordination. Hierarchy of management and formal organizational relationships are
key features of organizations in this approach.

Overall, the evolution of organizational behavior reflects a progression from a focus on

efficiency and productivity to a greater emphasis on human factors, contingency,
systems thinking, and the integration of various disciplines to understand and manage
behavior within organizations.

2. The development of OB and its relation with management

theories
The development of Organizational Behavior (OB) has been closely intertwined with
the evolution of management theories. OB is an interdisciplinary field that draws from
psychology, sociology, anthropology, and other social sciences to understand human
behavior within organizations. As management theories have evolved over time, so
too has the understanding of how individuals and groups behave within organizational
settings.

Classical Management Theories: The early management theories, such as scientific

management and administrative management, focused on structuring work processes
and hierarchies. This laid the foundation for understanding the formal structure of
organizations and the roles of employees within them.
Human Relations Movement: The human relations movement, which emerged in the
1930s and 1940s, emphasized the importance of understanding the social and
psychological needs of employees. This led to a greater focus on employee motivation,
job satisfaction, and group dynamics within organizations.

Behavioral Management Theories: The behavioral management theories that emerged

in the mid-20th century, including the work of Douglas McGregor (Theory X and
Theory Y) and Kurt Lewin (field theory and group dynamics), contributed to the
understanding of individual and group behavior in organizational settings. These
theories highlighted the impact of leadership styles, motivation, and group dynamics
on employee performance.

Contingency Theory: The development of contingency theory in the 1960s and 1970s
emphasized that there is no one-size-fits-all approach to managing organizations. This
theory highlighted the importance of considering situational factors and adapting
management practices to fit specific organizational contexts.

Modern Management Theories: More recent management theories, such as

transformational leadership, organizational culture, and strategic management, have
further shaped the understanding of how organizations function and how leaders can
effectively manage and motivate employees.

Throughout these developments in management theory, OB has played a critical role

in providing insights into human behavior in organizations. As organizations have
become more complex and diverse, OB has continued to evolve to address
contemporary challenges such as diversity and inclusion, virtual work environments,
and ethical leadership. Overall, the relationship between OB and management theories
is one of mutual influence, with each informing and shaping the other over time.

3. Great contributor’s role in developing the discipline

Psychology
Psychology is the scientific study of human behavior and mental processes. In OB,
psychology helps analyses individual behavior within organizations, including
motivation, perception, decision-making, and stress management. Organizational
behavior uses psychological principles to design effective training programs, assess
employee satisfaction, and develop strategies for enhancing employee well
being.
Social Psychology
Social psychology focuses on how individuals’ thoughts, feelings, and behaviors are
influenced by the presence and actions of others. It explores topics such as group
dynamics, social influence, and leadership. In organizational behavior, social
psychology sheds light on issues, like team dynamics, communication, conflict
resolution, and leadership effectiveness. It helps organizations create harmonious
work environments.

Sociology
Sociology examines the structure and functioning of societies and social groups. In
OB, sociology is concerned with the organizational structure, culture, and the impact
of social norms and values on behavior. Sociological insights help organizations
understand the effects of culture on employee behavior, diversity and inclusion, and
the role of institutions and systems in shaping organizational practices.
Anthropology
Anthropology studies human societies, cultures, and behaviors across time and space.
In OB, anthropology explores the cultural aspects of organizations, including norms,
rituals, and symbols.
Anthropological perspectives assist organizations in managing cultural diversity,
developing cross cultural communication strategies, and adapting to global markets.
Economics
Economics analyses the allocation of resources and the behavior of individuals and
firms in economic systems. In OB, economics helps understand how incentives,
rewards, and decision-making processes affect employee behavior and performance.
Economic principles are used in OB to design compensation systems, incentive plans,
and cost-effective HR policies.