Syllabus- Unit -1

1.Nature of management,
2.principles,
3.functions,
4.evolution of management thought.
5.Social responsibility and ethics in
management.
6.Organisations –
7.role in, organisational effectiveness,
8.role of people in organisational
effectiveness
 Management
It is the art of getting things done through and


with the help of people in a formally

organized group. It designs and maintain an
environment in which individuals work
together to accomplish selected goals.


Management is the attainment of organization



goals in an effective and efficient manner

through planning, organizing, commanding,
co-ordinating and controlling of all technical
financial and human activities.


What Managers Do
• They get things done through other
people.


• Management Activities:
– Make decisions
– Allocate resources
– Direct activities of others to attain goals


• Work in an organization
– A consciously coordinated social unit
composed of two or more people that
functions on a relatively continuous basis
to achieve a common goal or set of goals.
3
 Features of Management
• Existence of objective
• Organized activities to achieve
organization goal
• Working with and through people
• Relationship among resources- effective
and efficient utilization of resources
• Management involves different
functions
• Decision making- (most appropriate
alternative)
 Nature of Management
• Multi disciplinary
• Dynamic nature of principles
• Relative, not absolute principles
• Management : science as well as art
• Management is universal
phenomenon
 Importance or Significance of
management
• Accomplishment of group goals
• Effective utilization of business- M’s-Men,
Money, Market, Materials, Machines,
Methods, Motivation and management
• effective setting of business
• Resource development
• Sound organizational structure-(Authority,
responsibility etc)
• Management directs the organization
• Integrates various interest
• Stability,
• innovation
• Meeting the challenges of change
 Management process
• It is a systematic method of handling
activities. All managers regardless of their
particular skills or aptitude perform
certain functions to get things done by
others. These functions are interrelated
and involve relationship and time.
•
• Management process is the set of on going
process and work activities in which
managers engage as they plan, organize,
lead, and control. Manager manage their
work activities are usually done in
continuous manner that is, in a process.
 Management process
Foyal classification Koontz and Donnels


• Planning • Planning
• Organizing • Organizing
• Commanding • Staffing
• Co-ordinating • Leading
• Controlling • controlling
Gullick and Urwick

(POSDCORB)
• Planning
• Organizing
• Staffing
• Directing
• Co-ordinating
• Reporting
• budgeting
Functions of Management
Management Functions

10
 Planning
Analyzing Establishing
opportunity Determining objective
planning premises (external and inte

Selection Evaluation Identifying alternative

Implementation Review
Management Functions: Plan
A process that includes
defining goals ,
establishing strategy , and
developing course of
actions ( plans ) to
coordinate activities .

The management function

that assesses the
management environment to
set future objectives and
map out activities
necessary to achieve those
objectives .
 

12
Management Functions:
Organize
It is an important dynamic
aspect determining
1.what tasks are to be done,
2.who is to do them,
3.how the tasks are to be
grouped,
4.who reports to whom, and
5.where decisions are to be
made.

13
 Organizing
• The process of identifying and grouping the
work to be performed, who has to perform
them, on what basis the task are to be
grouped, who reports to whom and who
should have the authority to take
decision.
•
• Organizing is a function involving-
1.Grouping task
2.Assigning tasks and duties
3.Delegating authority and responsibility
4.Allocation of resources
Management Functions: Lead
It is th e p ro ce ss o f in flu e n cin g p e o p le so
th a t th e y w illco n trib u te to o rg a n iza tio n
a n d g ro u p g o a ls. It is th is a re a o f
m a n a g e m e n t th a t b e h a vio ra lscie n ce h a ve
m a jo r co n trib u tio n .
A fu n ctio n th a t in clu d e s-
1. U n d e rsta n d in g n a tu re a n d b e h a vio r o f
p e o p le
2. m o tiva tin g e m p lo ye e s,
3. d ire ctin g o th e rs,
4. se le ctin g th e m o st e ffe ctive
co m m u n ica tio n ch a n n e ls, a n d
5. U n d e rsta n d in g stre ss a n d re so lvin g
co n flicts.
It is about PEOPLE!
15
Management Functions:
Control
Monitoring performance, comparing
actual performance with previously set
goals(planned performance), and
correcting any deviation.
Therefore there is considerable
overlap between controlling and other
functions like planning, organizing
and leading.
Importance of controlling
1.Coping with uncertainty
2.Detecting irregularity
3.Identifying opportunity
4.Handling complex situation
5.Minimizing cost
6.Decentralizing authority
16
 Controlling
Desired performance Actual performance


Measurement of actual performance

Comparison of actual performance against

std.Identification of deviation Analysis of

causes of deviation Program of corrective

action Implementation of correction

 Evolution of Management
Theories
What do the management theories convey?


They convey the search for newer



1. Concepts,
2. Principles and
3. Practices of management as discovered by
management thinkers over time,
•
Advances in management theory typically occur


as managers and researchers find better ways

to perform the major management functions:
planning, organizing, leading and controlling.
 Evolution of Management Theories
(cont.)
The five theories are:


1. Scientific Management Theory,

2. Administrative Management Theory,
3. Behavioral Management Theory,
4. Management Science Theory and
5. Organization-Environment Theory.


 Scientific Management Theory (late 18th century and the

early 20th century)
Advocates the application of scientific methods to analyse work and to


determine how to complete production tasks efficiently. Credit for Scientific

Management goes to Frederick Taylor who was hired by Midvale Steel
Company in the US in 1878. Taylor discovered that


• Production and pay were poor,

• Inefficiency and
• Waste were prevalent, and
 Evolution of Management Theories
(cont.)
In essence, Taylor advocated the following
four principles as part of his Scientific
Management:
• Scientifically study each part of a task
and develop the best method of
performing the task.
 

• Carefully select workers and train them

to perform the task by using the
scientifically developed method.
•  
• Cooperate fully with workers to ensure
that they use the proper method.
•  
• Divide work and responsibility so that
 Evolution of Management Theories
(cont.)
To implement this approach, Taylor introduced –


1. Time-and-motion studies, which helped in identify

one best way of doing a job

2.
3. Differential piece rate system which benefited
workers with additional pay when they exceeded
standard levels of output.

4.
5. Taylor advocated the importance of hiring and
training the workers to perform better.


However, since Scientific Management ignored the


 BALANCED VIEW OF SCIENTIFIC
MANAGEMENT
 Merits
 Demerits
 

• Improved productivity and • Simplistic motivational

performance Scientific assumptions Workers
analysis of the work are treated as wheels in
place a machine

• •
• Linking wages to • Potential for exploitation of
performance and labor
enhanced earnings for 
workers

• Inter-personal relationships
and linkages between
• Cooperation between environment and
management and organization ignored
workers got to be 
established

• Did not acknowledge
variance among
• Demonstrated the individuals
importance of personnel
 Evolution of Management Theories
(cont.)


Administrative Management Theory

The new approach focused on creating an

organization structure that would

facilitate greater efficiency and
effectiveness. Organization structure
facilitates
1.Allocation of tasks and
2.Determines authority relationships
that control how employees use
resources to achieve organizational
goals.
The two eminent contributors to the

management thought were Max Weber, a

German Professor of Sociology and Henry
Fayol, the French Manager.
Evolution of Management Theories
(cont.)
• Max Weber (1864–1920) – Theory of
Bureaucracy
– A German sociologist and historian who
envisioned a system of management that
would be based upon impersonal and
rational behavior—the approach to
management now referred to as
“bureaucracy.”


1.Specialization of labor
2. Formal rules and procedures
3. Impersonality (management is
separated from ownership in
any org.)
4. Well-defined hierarchy
 Merit and demerit of Weber’s theory of
Bureaucracy
 Merit  Demerit
• Efficient performance of
• Inflexible and delayed
routinised decisions
 activities is ensured   
• Subjective judgements by
employees •  People's element ignored
 and management avoided 

• Respects positions rather than • Difficult to dismantle once

persons established
• Fair and equitable selection
and promotion
• systems tend to improve
managers'
•
• Difficulty to use
 feeling of security, reduce bureaucratic principles
stress and for the benefit of
 become ethically conscious organization rather than
harming it
•
Evolution of Management Theories
(cont.)
Administrative Management Theory
(cont.)
Fayol's Principles -1916- when Henry

Fayol, a French mining engineer

summarised his experiences as a
manager.
Fayol advocated five functions of

management,
1.Planning,
2.Organizing,
3.Commanding,
4.Coordinating and
5.Controlling
 and
 FAYOL'S 14 PRINCIPLES OF
MANAGEMENT
• Division of Work - divide work into specialised tasks, assign
responsibilities to specific individuals. . .
• Authority - delegate authority along with responsibility.
• Discipline - make expectations clear and punish violations.
• Unity of Command - each employee should be assigned to only one
supervisor.
• Unity of Direction - employee's efforts should be focused on
achieving objectives,
• Subordination of individual interest to the general
interest - the general interest must predominate.
• Remuneration - systematically reward efforts that support the org’s
direction.
• Centralization - determine the relative importance of superior and
subordinate roles.
• Scalar chain - keep communications within the chain of command,
• Order - order jobs and material so they support the organisation's
direction.
• Equity - fair discipline and order enhance employee commitment,
Evolution of Management Theories
(cont.)
Behavioral Management Theory
Three approaches which make up the behavior theory

are
1. The human relations management,
2. Human resource perspective and
3. Behavioral science approach.
•
Human Relations Management - Hawthorne Studies
conducted at the Western Electric Company in the US
between 1924 and 1932.
• As Professor of Industrial Research at the Harvard
School of Business Administration, Mayo was the
person, responsible for conducting the studies and
publicising their significance, Naturally, he is called
the 'father of human relations movement.'
The Hawthorne project involved three sets of studies:

• Illumination Studies,
• The Relay Assembly Room Study and
Evolution of Management Theories
(cont.)
• Illumination Studies constituted the first set of
experiments and took place between 1924 and
1927.Two work group were made. Lighting was
decreased over successive periods for the experimental
group, while it was kept at a constant level for the
control group (a comparison group working in another
area).

•
• The researchers were surprised to discover that productivity
increased roughly at the same rate in both the groups. It
was only in the final experiment, where they decreased
light to 0.06 foot candle (roughly moonlight intensity),
that performance in the experimental group declined as
the workers in the group complained that they could
hardly see anything.

•
• The researchers concluded that factors other than lighting
were at work (since output rose in both the groups), and
the project was discontinued.

•
 Evolution of Management Theories
(cont.)
The Relay Assembly Room Study


.The second set of experiments took place between 1927 and 1933.


The most famous study involved five women who assembled

electrical relays in the Royal Assembly Test Room,
1. They were kept away from other workers and the researchers
could alter work conditions and evaluate the results.
The workers were also given special privileges, such as
• Being able to leave their work station without
permission,
• Free mid-morning lunch,
• A workday that was a half-hour shorter,
• A five-day workweek (a novel idea at that time), and
• Variations in the methods of payment

1.
2. The researchers changed the usual supervisor arrangement so
that there would be no official supervisor. Instead, the
workers would operate under the general direction of the
researchers.

3.
4. Generally, productivity increased over the period of study,
regardless of how the factors were manipulated.
Evolution of Management Theories
(cont.)
• The Bank Wiring Room Study (1931 and 1932)
• The motivation for this study was built on the findings of
The Relay Assembly Room Study, a group of 14 men
who wired telephone banks was observed in a standard
shop condition.

•
• An observer was stationed in the room with instructions
to take continuous notes on the workers' actions. The
observer was not allowed to give orders or get involved
in conversations with the workers.

•
• Although, the workers were initially apprehensive about the
observer, they settled into more natural and relaxed
behavior after about three weeks.

•
• Though the workers were paid according to their output, the
observer soon noted that the workers had established an
informal daily norm of 6600 units per person. Typically,
the men would pace their work so that they reached the
Evolution of Management Theories
(cont.)
• The Bank Wiring Room
Study (1931 and 1932)The
researchers concluded that
• the behavioral norms set by the
work group had a powerful
influence over the productivity of
the group.
• The higher the norms, the
greater the productivity. The
lower the norms, the lower the
productivity.
The power of the peer group and the

importance of group influence on

Evolution of Management Theories
(cont.)
Thus, Hawthorne Studies laid a
foundation for understanding
people's
• social and
• psychological behavior in the
workplace.
The main implication of the Hawthorne

Studies, popularly called the Human

Relations Management is that the
behavior of managers and workers in
the work setting is critical in
determining the performance of an
organization.
Evolution of Management Theories
(cont.)
The Human Resource Approach
Interpersonal behavior has its impact on

satisfaction which in turn may lead to

improved performance. This is the typical
of the dairy farm model-well fed cows give
more milk and satisfied workers tend to
perform better. But, as will be stated latter
in this book, a satisfied worker is not
necessarily a productive worker.
Something else was needed to make the

worker a productive employee. Two

individuals came out with their own findings
in this context. They are:
1.Abraham Maslow, and
2.Douglas McGregor.
Their contributions form the human resource

approach.
Evolution of Management Theories
(cont.)
Abraham Maslow came out with a


thesis that unmet needs are the causes

for problems that people face. From this
assumption, Maslow built a hierarchy of
needs, starting from physiological and
progressing through safety, belonging
esteem and self actualization needs.
More details on Maslow's need
hierarchy are provided in the chapter
on motivation.
•
Douglas McGregor was not content


with the simplistic human relations

notions. He challenged the notions.
Based on his experiences as a manager
and a consultant, McGregor formulated
 Maslow’s Hierarchy of

Needs
There is a hierarchy of five needs. As each need is
substantially satisfied, the next need becomes
dominant. The higher order need was satisfied
internally were as lower needs are predominantly
satisfied externally.
•
Assumptions
Higher Order


Internal – Individuals
cannot
move to
Lower Order the next
External higher
level until
all needs
at the
current
(lower)
level are 36
 B a sic H u m a n
N eeds
• Food
• Air
• Water
• Clothin
g
• Sex

Physiological Needs
 S a fe ty a n d
S e cuurity
Pro te ctio n
uS ta b ility

uPa in
A vo id a n ce
Safety Needs uR o u tin e / O rd e r
 Lo ve a n d
B e lo n g in g
uA ffe ctio n

uA cce p ta n ce

Social Needs uIn clu sio n

u
Esteem
E ste e m
Needs uS e lf- R e sp e ct

uS e lf- E ste e m

uR e sp e cte d by
O th e rs
Self-Actualization
uAchieve full
potential
uFulfillment
Summary Self-Actualization

Esteem

Belonging

Safety

Physiological
 McGregor’s Theory X and
Theory Y
• The American psychologist, Douglas
McGregor, studied leadership styles.
McGregor argued that managers operate
from their personal view of how
employees function. He separated
managers into two groups based on
Maslow's Hierarchy of Needs. He related
Theory X managers to lower order needs
in the hierarchy and Theory Y managers to
higher order needs.
• Theory X managers assume that people are
intrinsically lazy, take no responsibility,
are incapable of self-discipline and only43
 McGregor’s Theory X and
Theory Y
• Two distinct views of human beings: Theory
X (basically negative) and Theory Y
(positive).
– Managers used a set of assumptions based
on their view
– The assumptions molded their behavior
toward employees
–
–
–
–
– 44
Douglas McGregor Theory X & 1906
Y -1964
The assumptions molded Manager’s behavior toward employees

Y theory
X theory


• Dislike work –will • Do not dislike work

avoid
Theory it, Must be
X Assumptions • Self direction and
coerced, self control
Theory Y Assumptions

controlled, • Seek responsibility

directed, or
• Imagination,
threatened with
creativity widely
punishment
distributed
• Prefer direction,
• Intellectual
avoid
potential only
responsibility, little
partially utilized
ambition, want
Evolution of Management Theories
(cont.)
1. The human relations management,
2. Human resource perspective and
3. Behavioral science approach.


The theme of the human resource



approach is the need for designing

jobs so that tasks are not perceived
as de-humanizing or demeaning
but instead allow workers to use their
full potential. Though there is a shift
towards job, concern for employee
behavior is not to be undermined.

 Evolution of Management Theories
(cont.)
1. The human relations management,
2. Human resource perspective and
3. Behavioral science approach.
 Behavioral Science Approach
Psychologists, sociologists and anthropologists,


began studying people at work. These individuals are

known as behavioral scientists, and their approach
to management is known as behavioral science
approach.
• The emphasis on the nature of work, and the
degree to which it can fulfill the human need to
express skills and abilities. The advocates of this
approach believe that an individual is motivated
to work for many reasons in addition to making
money and forming interpersonal relationships.
• The principles of behavioral science approach are being
practised in every organization,
• The behavioral science approach owes its origin to
Mary Parker Follet, one of the earliest
Evolution of Management Theories
(cont.)
1. Scientific Management Theory,
2. Administrative Management Theory,
3. Behavioral Management Theory,
4. Management Science Theory and
5. Organization-Environment Theory.
 Management Science Theory
What makes management science theory
different from other approaches is the –
1.application of mathematics,
2.statistics, and
3.other quantitative techniques
to management decision making and

problem solving.
Management science in essence is scientific

management revisited. TQM, OR, IT, MIS,

Lean manufacturing and the like are the
buzzwords of management science theory.
Evolution of Management Theories
(cont.)
Organizational-Environment

Theory
It tried to understand the impact of external
environment on its functioning. The environment
exerts considerable influence on the performance of
the organization.
There are two approach of the organizational-

environment theory
1. Systems view and
2. Contingency


The Systems View takes a look at how organizations



import resources from the external environment,

convert them into more useful goods and services,
and export them to the market
• The inputs -money, materials, people and machines.
• The outcome includes products, profit, satisfaction and
improved quality of life.
Evolution of Management Theories
(cont.)
Organizational-


Environment Theory
Environment

feedback

Systems view of an
organization
Evolution of Management Theories
(cont.)
Organizational-Environment Theory


• The Contingency Approach This approach

also operates identical way to that of the
systems view. The contingency view posits
that organizational structures and
control systems that management uses
depend on or are contingent upon the
characteristics of the external
environment within which the firm operates.
• How managers design the organizational
hierarchy, choose a control system, and
lead and motivate their employees is
contingent upon the characteristics of the
environment.
• The main lesson that can be drawn from the
contingency view is that there is no one
best way of managing. Each decision
and each step that a manager takes are
contingent (dependent) upon the
 Manager’s Role
 Henry MintzberI

_ Interpersonal-(Figure Head, leader, liaison)
– Informational (monitor, disseminator, spokes
person)
– Decisional- (Entrepreneur, resource allocation,
disturbance handler, negotiator)
• Natalie Anderson (Liaison, Monitor, Negotiator)
• Henri Foyal (Planning, organizing, leading,
controlling, co- ordinating )

52
 Henry Mintzberg’s Managerial

Roles
• Discovered ten managerial roles


• Separated into three groups:

–
– Interpersonal-(Figure Head, leader,
 liaison)
– Informational (monitor, disseminator,
 spokes person)
– Decisional- (Entrepreneur, resource
 allocation, disturbance
handler,
 negotiator) 53
 The Importance of
Interpersonal Skills
•
• Understanding OB helps determine manager
effectiveness
– Technical and quantitative skills are
important
– But leadership and communication skills
are CRITICAL


• Organizational benefits of skilled managers

– Lower turnover of quality employees
(retention of employee)
– Higher quality applications for recruitment
– Better financial performance 54
 Mintzberg’s Managerial Roles:
Interpersonal
T h is ro le in vo lve s p e o p le a n d o th e r d u tie s

55
 Mintzberg’s Managerial Roles:
Informational
Manager receives collect and disseminate information. They seek
external and internal information by reading reports, periodicals,
through personal contact etc, then they disseminate to insider and
outsider through board meeting, media etc

56
 Mintzberg’s Managerial Roles:
Decisional
Role that revolve around searching for opportunities, improving
situation by making better and efficient choices

57
 Katz’s Essential
•
Management
Technical Skills
Skills
– The ability to use process,
apply specialized
knowledge or expertise
• Human Skills
– The ability to work with,
understand, and
motivate other people,
both individually and in
groups
• Conceptual Skills
– The mental ability to
analyze and diagnose
complex situations, co-
ordinate and integrate all
of an organizational
interest and activities,
understanding when and 58
where change and
 CHAPTER 3

Organisation Behaviour
 What is organization ?
• It is a group of people who work interdependently towards some
purpose.
 Organization is not physical structure; rather; they are people
who work together to achieve a set of goals.
 People who work in an organization have structure pattern of
interaction, meaning that they expect each other to complete
certain task in an organized way.
• Basically, an organization is a group of people intentionally
organized to accomplish an overall, common goal or set of
goals. Business organizations can range in size from two
people to tens of thousands.
Organizations have major subsystems, such as

• departments,
• programs,
• divisions,
• teams, etc.
Each of these subsystems has a way of doing things to, along with

other subsystems, achieve the overall goals of the organization.

Often, these systems and processes are define by
• plans, 60
 Organizational Behavior


A field of study that

investigates the
impact that
individuals, groups,
and structure have on
behavior within
organizations, for the
purpose of applying
such knowledge
toward improving an
organization’s
effectiveness. 61
 Definition
OB
 is an academic discipline concerned with
understanding and describing human behavior in an
organizational environment. It seeks to shed light on the
whole complex human factor in organization by identifying
cause and effect of that behavior.


OB involves 3 levels-


§ Individual level
§ Group level
§ Organization level


Element of OB


§ People
§ Structure(hierarchy, authority, responsibility, design
level)
§ Technology 62
 Contributing Disciplines
M a n y b e h a vio ra lscie n ce s
h a ve co n trib u te d to th e
d e ve lo p m e n t o f
O rg a n iza tio n a l
B e h a vio r

63
 Psychology
The science that seeks to measure, explain,


and sometimes change the behavior of

humans and other animals.
•
• Unit of Analysis:
– Individual
• Contributions to OB:
– Learning, motivation, personality, emotions,
perception
– Training, leadership effectiveness, job
satisfaction
– Individual decision making, performance
appraisal attitude measurement
– Employee selection, work design, and work 64
 Social Psychology
An area within psychology that blends


concepts from psychology and sociology

and that focuses on the influence of people
on one another.
•
• Unit of Analysis:
– Group
• Contributions to OB:
– Behavioral change
– Attitude change
– Communication
– Group processes
– Group decision making 65
 Sociology
The study
Ø Unit of people in relation to their fellow human
of Analysis:
beings. 
 --
Organizational 
System  -- Group
• Contributions to 
OB:
– Formal organization
– Group dynamics theory
– Work teams – Organizational
– Communication technology
– Power – Organizational
– Conflict change
– Intergroup behavior – Organizational
culture 66
 Anthropology
The study of societies to learn about human beings and
their activities. 
Ø Unit of Analysis:
 -- Organizational

System  -- Group
• Contributions to 
OB:
– Comparative values
– Organizational
– Comparative
culture
attitudes
– Organizational
– Cross-cultural
environment
analysis


67
Major disciplines and their contributions to ob
Five Reasons Why Organizations Exist
 Five Reasons Why Organizations

Exist
To increase specialization and division of labor- for many kind
of productive work the use of an org. allows the
development of specialization and division of labor The
collective nature of org. allows individuals focus on narrow
area of expertise.
To use of large scale technology- Economy of scale are cost

saving that result when goods and services are produced

in large volumes by automated production. Economies
of scope are the cost saving that results when org. is able
to use underutilized resources ,ore effectively because
they are shared across several different product or task.
 To manage external environment- Managing complex

environment is the task beyond most individuals but org.

has the resources to develop specialists to anticipate or
attempt to influence the many demands from the
environment.
To economize on transaction costs- If each worker is doing his

share of the work. The cost associated with negotiating,

monitoring and governing exchanges between people are
called transaction cost.
To exert power and control- Org can exert greater pressure on

individual to conform to task and production requirements

in order to increase production efficiency. To get a job done
efficiently it is imp. For people to come to work in particular
fashion, to behave in the interest of the organization.
 Organizational effectiveness
Personality
Perception
Learning Individual behavior
Attitudes and attribution
Motivation

Group dynamics
Team dynamics
Leadership Group behavior Organization Effectivene
Power & politics
Communication
Conflict

Organization culture
HR polices & practices Organization
Work stress
Org. change and development
 Efficiency- Effectiveness and its effect on
performance
Low efficiency/ high effectiveness High efficiency/high effectiveness

Manager chooses the right goal to Manager chooses the right goals to
Hig pursue, but does poor job of using pursue and make good use of
h resources to achieve these goals. resources to achieve these goals.
Effectiveness

Result- A product that customer Result- A product that customers

want, but that is too expensive for want at a quality and price that they
them to buy can afford

Low efficiency/ low effectiveness High efficiency/low effectiveness

Low Manager chooses wrong goals to Manager chooses inappropriate

pursue and makes poor use of goals, but makes good use of
resources. resources to pursue these goals.

Result- a low quality product that Result- A high quality product

customers do not want. customer do not want

Low High

Efficiency
 Importance of OB

• Road map to our lives in organizations

• Helps us understand and predict organizational
life
• Influences events in organizations
• Helps understand self and others better
• Helps a manager get things done better
• Helps maintain cordial relations
• Highly useful in the field of marketing
• Helps in career planning and development
• Helps sustain the temp of economic growth
 Limitations of OB
• Knowledge about OB does not help an individual
manage personal life better
• Dualities of OB are baffling
• Has become a fad with managers
• Is selfish and exploitative
• Managers expect quick-fix solutions-not possible
• Principles and practices may not work in the
events of declining fortunes
• Cannot eliminate totally conflict and frustration