Organisational Behaviour (Approaches of Management) 02 Feb 2021

Unit 12
Organisational Behaviour
Unit No: H/508/0525
Core Unit
Oguchi Martins Egbujor 1

The Aim
The aim of this unit is to develop a student’s
understanding of the influence culture, politics and power
have on the behaviour of others in an organisational
context. Learners will be in a position to apply the
principles of organisational behaviour to a variety of
business situations. On successful completion of this unit
learners will have an understanding and awareness of key
influences which affect the behaviour of individuals,
teams and organisations as a whole. They will be able to
use this knowledge to make an immediate and positive
contribution in the workplace.
Learning Outcomes
LO1: Analyse the influence of culture, politics
and power on the behaviour of others in an
organisational context.
LO2: Evaluate how to motivate individuals and
teams to achieve a goal.
LO3: Demonstrate an understanding of how to
cooperate effectively with others.
LO4: Apply concepts and philosophies of
organisational behaviour to a given business
situation.
Organisational Behaviour is a field of study that
investigate the impacts that individuals, teams,
groups and structure have on behaviour within
an organisation, for the purpose of applying
such knowledge towards improving
organisation’s effectiveness.
Robbin, S. (2005)

Organizational behaviour is the study of
both group and individual performance and
activity within an organization. It is the
systematic study and application of
knowledge about how individuals, teams
and groups act within the organizations
where they work.

Organisational Psychology
Psychology is the scientific study of the mind and
how it dictates and influences our behaviour, from
communication and memory to thought and
emotion. Therefore, Organisational Psychology is
about understanding how people behave and
interact at workplace, and how their actions are
influenced by a system of communication that may
lead to reward and punishment. Understanding how
people behave can improve productivity at
workplace. (The British Psychology Society, 2021)
Authors of Organisational Behaviour
• Pavlov (Classical Conditioning)
• Skinner (Operant Conditioning)
• Hofstede (Cultural Dimensions)
• Edgar schein (Stages of Culture)
• Tuckman (Stages of Team development)
• Belbin (Team Roles)
• Bandura (Social Learning Theory)
• Charles Handy (Classes of Culture)
• Johnson &Scholes (The Paradigm/Cultural Web)
LO1
Analyse the influence of culture, politics
and power on the behaviour of others in
an organisational context:
 Influence of Culture
 Influence of Politics
 Influence of Power

Influence of Culture

Culture
• Culture is about the “values and beliefs” of
individuals, teams, groups and or
organisations.
• Culture is about how “we do things in here” of
any household, team, group or organisation
• Culture is about “the way we behave in here”
of any household, team, group and or
organisation.

Classification of Culture
Culture is classified into two, namely:
• Culture Dynamics
• Culture Specifics

CULTURAL WEB
Johnson and Scholes (1988) described
organisational behaviour as a cultural web; how
we do things here, including the stories that we
tell within the organisation. They identified a
number of elements that formed and influence
Organizational Culture termed as Paradigm.
These include processes, symbols, rituals,
power structure, stories, mission, beliefs and
values, control systems, etc.
By: Oguchi Martins Egbujor 12
Organisational Culture and Behaviour
Stories
Rituals and
Routines Symbols
The
Paradigm
Control Power
Systems Structures
Organisational
Structure
Johnson and Scholes, 1988

Cultural Dimensions Theory
Cultural Dimensions is a framework used to
understand the differences in culture across
countries and to discern the ways that business
is done across different cultures. In other words,
the framework is used to distinguish between
different national cultures, the dimensions of
culture, and assess their impact on a
business setting. (Geert Hofstede, 1980)

Geert Hofstede’s Cultural Dimensions

GEERT HOFSTEDE’S CULTURAL DIMENSIONS

Influence of Politics

Influence of Politics
Transform material resources of organization into finished or
consumable products, an organization has choices to be made.
These choices may include different materials to be used in
order to have the desired product, the type of machinery to be
adopted for production efficiency, the financial resources to be
involved and its sources, etc. These decisions of choices involve
politics while the person making the choices or decisions uses
some power to ensure that choices and decisions are accepted
within the organisation. The influence of power and politics in
organizations presents intra-organizational relationship in
which power play and politics is normal.
(Omisore and Nweke, 2014)

Change Management
Change management is a systematic approach
to dealing with the transition or transformation
of an organization's goals, processes or
technologies. The purpose of change
management is to implement strategies for
effecting change, controlling change and helping
people to adapt to change.

Behavioural Leadership Theory
Peter Drucker famously stated that
"management is doing things right; leadership is
doing the right things." Great leaders possess
dazzling social intelligence, a zest for change,
and above all, vision that allows them to set
their sights on the "things" that truly merit
attention. Leaders are not born; they are grown
(Peter Drucker, 2009)

By Oguchi Martins Egbujor 24
Organisational Politics
• Personal Change
• Decisional Change
• Structural change
• Organisational Change

Organisational Change
Organisational change involves structural and
process changes and are those changes made to
the organization's structure that might stem
from internal or external factors and typically
affect how the company is run to improve
efficiency and productivity within an
organization.

Structural change
• Organisation hierarchy
• Chain of command
• Management systems
• Employee re-orientation
• Job roles and responsibilities
• Process systems
• Systems of Decisions-making
• Systems of Policy-making
Process of Change
• Request for Change
• Impact Analysis
• Approve or Deny
• Implement Change
• Review/Report

Kotter’s 8 Step Process Change
• Create sense of urgency
• Build coalition
• Form strategic vision and initiatives
• Enlist volunteer army
• Enable action by removing barriers
• Generate short term win
• Sustain acceleration
• Institute change
Lewin’s Change Model
• Unfreeze
• Change
• Refreeze

Lewin’s Change Model
Change:
Process Refreeze:
Unfreeze: Reform Re-establish
Reopen the Amend Close
contents Improve
Communicate
Agreed

Lewin’s Force Field Analysis
• Enabling Factors
• Disabling Factors

Force Field Analysis
Enabling Factors Disabling Factors
• Identify all the factors that • Identify all the factors that
will help you to implement will hinder or obstruct you
all the changes from implementing all the
changes that you want to
accomplish

Organisational Structure
Hierarchical structure
Top Down
Management
By: Corporate Finance Institute

Divisional Organisation
A divisional organization structure has its activities around
a market, product, or specific group of consumers. For
example, an organisation operates in the United Kingdom
or Europe, or sells its products to a specific group of
customers. Gap Inc. in the United States is the perfect
example; it runs three different retailers – Banana
Republic, Gap, and Old Navy. However each of the retail
shops operates as a separate entity that caters for
different consumer segments, all the three retail shops
are under the management of Gap Inc. the parent
company as a brand.
Flat Structure
CEO
HOD HOD
HOD HOD
Marketi Operati
HRM Finance
ng ons
Adv Rec/ Train Acco Deliv Cust

Sale Sele ing/
ert unts ery Serv
ct Dev

Matrix Organisational Structure
Matrix organizational structure is complex and
involves reporting to more than one line
managers. This simply means that the
employees are accountable to more than one
manager. Most firms that take on this
organizational structure often have two chains
of command – functional and project managers.
This type of organization works best for
companies with large-scale projects.
Hierarchical
MD
Other Directors
Head of Departments
Regional Managers
District Managers
Departmental Managers
Supervisors
S
Functional Organisation
Functional organisation is a bureaucratic
structure that divides a firm’s operations based
on specialties. There is a functional manager
(individual) in charge of a particular function
(example, Sales Manager, Marketing Manager,
Human Resource Manager). In other words,
there is a departmental manager. It means that
every employee receives tasks and is
accountable to a particular superior.
Influence of Power

Influence of Power
Power is the ability and capability to influence
others. Power is the basis of influence or is
influence the basis of power? Mutual influence
leads to the formation of a psychological group.
Power leads to control of resources.
(Wiley, J., 2005)

The Process of Power
• Persuasion
• Authority
• Coercion
• Legitimate
• Reward
• Referent
• Expert
• Informational
(Bass, 1990; Wiley, 2005; Keltner et. al., 2003)

Hierarchical structure
Top Down
Management
• Flat
• Tall
• Centralised
• Decentralised
• Hierarchical

The Power of Culture
Organisation with a power culture: power is held by just a few

individuals whose influence spreads throughout the organisation.
• There are few rules and regulations in a power culture. What
those with power decide is what happens. Employees are
generally judged by what they achieve rather than how they do
things or how they act. A consequence of this can be quick
decision-making, even if those decisions aren't in the best long-
term interests of the organisation.
The collapse of world economy in 2008 is perfect example - Enron,
Lehman Brothers and RBS
(Charles Handy, 1999)
Handy’s Classes of Culture
Power Role
Task Person

Handy’s Model of Culture
Culture Types Suitable Leadership Styles
Power Autocratic
Role Autocratic or Paternalistic
Task Paternalistic/Democratic
Person Democratic
Charles Handy Model
https://www.tutor2u.net/business/
reference/models-of-organisational-
culture-handy

Team Interaction
The communication and the interactions within

the organisation and how they enable the
workforce to achieve the aim and objectives:
• Networking Theory
• Systems Theory
• Networking and Systems Theories

The Networking Theory
The Principles of Networking theory is about the
levels communication and interaction within an
organisation to its fundamental purpose:
• Reciprocity
• Exchange
• Similarity
(Carpenter et. al., 2010; 1983, 1998)

Networking Theories
Other Writers
• Carpenter et. al. (2017)
• Acquaah (2007)
• Rodgers (1962)
• Coleman et. at. (1966)
• Davis (1991)

Systems Approach
A system is set of interrelated and

interdependent parts arranged in a manner
that produces a unified whole
55
THE SYSTEMS APPROACH
Organized enterprise depends on its external

environment. Organisations are part of larger systems,
such as the industry to which they belong, the economic
system, and society. Thus, the enterprise receives inputs,
transforms them, and exports the outputs to the
environment. However, the model of operational
management indicates how the various inputs are
transformed through the managerial functions of
planning, organizing, staffing, leading, and controlling.
Business organization must be describe how it interacts
with its external environment
Open systems models
Many variables, many models
The Systems Viewpoint
regards the organization as a
system of interrelated parts
By adopting this perspective
you can look at your
organization in two ways
1. A collection of subsystems—
parts making up the whole
system
2. A part of the larger environment
59
The Four Parts of a System
Inputs Outputs
The people, money, The products, services,
information, equipment, profits, losses, employee
and materials required satisfaction or
to produce and discontent, and the like
organization’s goods or that are produced by the
services organization
Transformational
Feedback
Processes
Information about the
The organization’s capabilities
reaction of the
in management and technology
environment to the
that are applied to converting
outputs that affect the
inputs to outputs
inputs
60
Panel 2.2: The contemporary perspective:
Three Viewpoints
The System Viewpoint The Contingency Viewpoint The Quality Management

Regards the organization as a Emphasizes that a manager’s approach Viewpoints
system of interrelated parts that should vary according to—I.e. be Three approaches
operate together to achieve a contingent on—the individual and
common purpose environmental situation
Quality Control Quality Assurance Total Quality Management

Strategy for minimizing errors by Focuses on the performance of Comprehensive approach
managing each state of workers urging employees to dedicated to continuous quality
production strive for “zero defects” improvement, training, and
Proponent: Walter Stewart customer satisfaction
Proponents: W. Edward Deming
Joseph M. Juran

Pass and Merit Questions 1
1. Analyse how an organisation’s culture,
politics and power influence individual and
team behaviour and performance.
2. Critically analyse how the culture, politics and

power of an organisation can influence
individual and team behaviour and
performance.

LO2
Evaluate how to motivate individuals and
teams to achieve a goal.
• Motivational Theories
• Behavioural Psychology

GROUP CLASS ACTIVITIES
MOTIVATION AND MOTIVATIONAL THEORIES
GROUP A (MAISA) (SUGANTHAKUMARY)

• Extrinsic Motivation
GROUP B (TONI) (SUJATHA)

• Intrinsic Motivation

Extrinsic Reward
Extrinsic motivation is based on tangible
rewards. Extrinsic motivation is external to the
individual and is typically offered by a supervisor
or manager who holds all the power in relation
to when extrinsic rewards are offered and in
what amount. Extrinsic rewards are usually
financial in nature, such as a raise in salary, a
bonus for reaching some quota or paid time off.

Extrinsic Reward
Extrinsic rewards, on the other hand, can also
be as simple as getting the better office, verbal
praise, public recognition or awards, promotions
and additional responsibility.

Intrinsic Reward
Intrinsic motivation is internal to the person in
that it is something that you have to offer
yourself and is driven by personal interest or
enjoyment in the work itself. Because intrinsic
motivation exists within the individual, achieving
it does not depend on others. Some people
believe that the most powerful rewards come
from inside a person.

Intrinsic Motivating Factors
• Provide meaningful work
• Allow workers to make choices through a high
Level of autonomy
• Provide opportunities for employees to show
their competence in areas of expertise
• Facilitate professional development so that
employees can expand on their level of
knowledge

Motivating Factors
• Offer frequent opportunities for employees to
reward themselves
• Allow employees the opportunity to connect
with those with whom they serve to obtain
valuable feedback
• Give them a path to monitor their progress
with milestones along the way

Categories of Motivational Theories
Content Theory Process Theory
• This theory is also • This theory focuses on
known as need theory the process of
of motivation and it motivation rather than
focuses on identifying specific motivators. It
the internal factors that provides an opportunity
energise and direct to understand the
human behaviour “thought” processes
that influence human
behaviour
The Content and Process Theories
Content Theories Process Theories
• Abraham Maslow • Vroom, Porter and
(Hierarchy of Needs) Lawler (Expectancy
• Frederick Herzberg theory)
(Two Factor Theory) • Adams (Equity theory)
• David McClelland • Locke (Goal theory)
(Needs theory) • Heider (attribute
theory)

Herzberg Two Factor Theory
Motivation Factors Hygiene Factors/Demotivator
• Responsibility • Quality of supervision
• Achievement • Rate of pay
• Recognition • Job security
• Promotion Opportunity • Company policies
• Personal growth • Relationship with others
• Job interest (boss and peers)
• Fringe benefits
• Vacation

Maslow Hierarchy Of Needs
• Self-Actualization
• Esteem Needs
• Social Needs
• Safety Needs
• Physiological Needs

Abraham Maslow Hierarchy of Needs

Behavioural Psychology
What Is Behavioural Psychology?

Behavioural psychology studies the interactions
among thoughts, emotions, perceptions and
behaviours. It investigates ways to modify
behaviour and to learn more positive and
healthier ways to behave. Behavioural
psychology is also defined as the study of the
ways thoughts, feelings, and beliefs influence,
even control behaviour.

Emotional Intelligence
Emotional intelligence (otherwise known as

emotional quotient or EQ) is the ability to
understand, use, and manage your own
emotions in positive ways to relieve stress,
communicate effectively, empathize with others,
overcome challenges and defuse conflict.

Emotional Intelligence

Attributes of Emotional Intelligence
• Self-management
• Self-awareness
• Social awareness
• Relationship management

Self-Management
• Control impulsive feelings and behaviours
• Manage your emotions in healthy ways
• Take initiative
• Follow through on commitments
• Adapt to changing circumstances

Self-Awareness
• You recognize your own emotions and how
they affect your thoughts and behaviour.
• You know your strengths and weaknesses,
• Have self-confidence.

Social Awareness
• You have empathy
• You can understand the emotions
• You understand your needs
• You understand your concerns of other people
• Pick up on emotional cues
• Feel comfortable socially
• Recognize the power dynamics in a group or
organization.
Relationship Management
• You know how to develop and maintain good
relationships
• Communicate clearly
• Inspire and influence others
• Work well in a team
• Manage conflict


The Six Emotional Leadership Styles
1. The Visionary Leader

2. Coaching Leader
3. The Affiliative Leader
4. Democratic Leader
5. Pacesetting Leader
6. The Commanding Leader

Hard and Soft Skills
Management and Leadership require a diverse
array of skills. These skills are broadly grouped
into soft skills and hard skills. Soft skills refer to
interpersonal skills and include traits such as
leadership, communication, negotiation and
expectations management

Theories
Hard Management Skills Soft Leadership Skills
• Functional Knowledge Skills • Inspiration
• Organisational Skills • Motivation
• Planning Knowledge Skills • Communication
• Performance Measurement • Delegating
• Customer Knowledge Skills • Positivity
• Trustworthiness
• Change Management Skills
• Creativity
• Coordinating Knowledge
• Flexibility
• Controlling Knowledge
• Commitment
• Commanding Knowledge
• Responsibility
HAY MCBER MODEL 1999
17 Leadership Qualities
Leadership Quality Leadership Quality
• Analytical Thinking • Initiative
• Challenge and Support • Integrity
• Confidence • Personal Convictions
• Develop Potential • Respect for others
• Drive for Improvement • Strategic thinking
• Holding people Accountable • Teamwork
• Impact and Influence • Transformational
• Information Seeking Leadership
• Understanding the • Understanding Others
Environment
Psychodynamic Approach

Leadership V Management
• Leadership is an art of directing people to
willingly achieve common objectives for the
interest of all.
• Management is the art of directing people
according to the rules and regulations of an
organisation by planning, organising, co-
ordinating, commanding and controlling.
Management Function

Management and Leadership
Characteristics
Management Leadership
• Command and control • Challenges the system
• Preserve the system • Inspires followers
• Plan, budget and schedule • Aligns constituencies
• Organising and staffing • Encourages shared vision
• Directing and supervising • Co-operation, collaboration
• Problem solving and collective decision
Outcome based on: order, Outcome based on: change,
predictability and certainty BUT risk taking, uncertainty BUT
also compliance from others also commitment from others
involved. involved.
Leadership
Leadership is the art of getting someone else to

do something you want done because he wants
to do it.
(Dwight D. Eisenhower)
Leadership
Leadership is lifting a person's vision to higher
sights, the raising of a person's performance to a
higher standard, the building of a personality
beyond its normal limitations.
(Peter F. Drucker, 1967)

The Difference: Manager and Leader
The main difference between leaders and

managers is that leaders have people who
follow them while managers have people who
work for them. A successful business owner
needs to be both a strong leader and manager
to get their team on board to follow them
towards their vision of success
Styles of Leadership
The main Styles of Leadership
• Autocracy
• Democracy
• Laissez-Faire

Continuum Leadership
• Telling • Autocratic
• Joining • Democratic
• Selling • Persuasive
• Consulting • Consultative

Management and Leadership
Manager Leader
• Planning • Vision
• Organising • Motivation
• Inspiration
• Budgeting
• Persuasion
• Controlling • Team Work
• Coordinating • Building Relation
• Resource Use • Listening
• Time Management • Counselling
• Decision-Making • Coaching
• Teaching
• Problem Solving
• Mentoring
Adair’s Action-Centred Leadership Model
• Define the task
• Make the plan
• Allocate work and resources
• Control quality and rate of work
• Check performance against plan
• Adjust the plan
Task Team
Oriented Oriented
Individual • Maintain discipline

• Attend to personal problems
Oriented • Build team spirit
• Praise individuals
• Encourage, motivate, give
• Give status
sense of purpose
• Recognise and use individual
• Appoint sub-leaders
ability
• Ensure communication within
• Develop the individual
group
• Develop the group
Relationship-Oriented Approach
The relational-oriented leader understands that
productivity is paramount in meeting goals and
succeeding, whether in a business environment or
otherwise. Likewise, the relational-oriented leader
understands that building positive productivity requires
a positive environment where individuals feel driven.
Personal conflicts, dissatisfaction with a job, resentment
and even boredom can severely drive down productivity,
so the relational-oriented leader puts people first to
ensure that such problems stay at a minimum
Pass and Merit Questions 2
1. Evaluate how content and process theories of
motivation and motivational techniques
enable effective achievement of goals in an
organisational context.
2. Critically evaluate how to influence the

behaviour of others through the effective
application of behavioural motivational
theories, concepts and models
LO3
Demonstrate an understanding of how to
cooperate effectively with others.
• Different Types of Organisational Team

• Team Dynamics and Teamwork

Tuckman Team Development
Psychologist Bruce Tuckman came up with the
memorable phrase "forming, storming, norming,
and performing" in his 1965 paper, "Developmental
Sequence in Small Groups." It describes the path
that teams follow on their way to high
performance. Later, he added a fifth stage,
"adjourning" (also known as "mourning") to mark
the end of a team's journey.
Tuckman (1965)

Stages of Team Development
• Forming
• Storming
• Norming
• Performing
• Mourning/Adjourning
(Bruce Tuckman)

TUCKMAN’S STAGES OF TEAM DEVELOPMENT
Performing
Performance
Norming
Storming
Forming
110
Time
Belbin’s Team Roles
Shaper Challenges the team to improve.
Action Oriented Roles Implementer Puts ideas into action.
Ensures thorough, timely

Completer Finisher
completion.
Coordinator Acts as a chairperson.
Team Worker Encourages cooperation.

People Oriented Roles
Resource Investigator Explores outside opportunities.
Presents new ideas and

Plant
approaches.
Thought Oriented Roles
Monitor-Evaluator Analyzes the options.
Specialist Provides specialized skills.
111
Different Types of Teams
Functional Team
Problem-solving
Project Team
Cross-functional
Self-managing
Virtual Teams
112
Workplace Team
A team is any group of people organized to work
together, both interdependently and cooperatively to
accomplish a purpose or a goal.
(Heathfield, S. M., 2019)
113
Functional Teams
The Functional or departmental groups of people
come from the same work area or department. They
meet on a regular basis to analyse customer needs,
solve problems, provide members with support,
promote continuous improvement, and share
information
Heathfield (2019)
114
Cross-Functional Team
Groups of people who are pulled together from across
departments or job functions to deal with a specific
product, issue, customer problem, or to improve a
particular process are cross-functional teams. These are
often teams with a specific goal with an end date.
(Heathfield, 2019)
115
LO4
Apply concepts and philosophies of
organisational behaviour to a given business
situation.
• Concepts and Philosophy

Open systems models
Many variables, many models
Systems Leadership
Formal and informal organizational structure,

policies, and procedures through which
leadership is exercised. Its key elements include
the mechanisms for making, communicating,
and executing decisions, and for selecting and
training leaders and managers
(Business Dictionary)
Interacting subsystems
Systems Approach
The view of organizations as open social systems
that must interact with their environments in
order to survive is known as the systems theory
approach. Organizations depend on their
environments for several essential resources:
customers who purchase the product or service,
suppliers who provide materials, employees who
provide labour or management, shareholders
who invest, and governments that regulate.
Socio-technical systems
Classical Approaches
Scientific
General
Administrative

Panel 2.1: The Historical Perspective
Behavioral Viewpoint
Classical Viewpoint Quantitative Viewpoint
Emphasis on importance of
Emphasis on ways to manage understanding human behavior & Applies quantitative
work more efficiently motivating & encouraging techniques to management
employees toward achievement
Early Behaviorists Management Science

Scientific Management Focuses on using
Proponents: Hugo Munsterberg,
Emphasized scientific study of work Elton Mayo mathematics to aid in
methods to improve productivity of problem solving and
individual workers decision making
Proponents: Frederick W. Taylor
Frank & Lillian Gilbreth Human Relations Movement
Proposed better human relations Operations Management
could increase worker productivity
Proponents: Abraham Maslow Focuses on managing the
Administrative production and delivery of an
Douglas McGregor organization’s products or
Management
services more effectively
Concerned with managing the
entire organization Behavioral science approach
Proponents: Henry Taylor Relies on scientific research for
Max Weber developments theory to provide
practical manager tools
Scientific Management
Scientific Management:
emphasized the scientific study
of work methods to improve the
productivity of individual workers
Two of its chief proponents were

Frederick W. Taylor, & Frank and Lillian Gilbreth
• 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
most companies had unused potential .
• He concluded that management decisions were
unsystematic and no efforts were made to
determine the best means of production
• The Taylor introduced Scientific Management

(he is called the Father of Scientific
Management ) which recommended the
application of scientific methods to analyze
work and to determine the methods to
complete the tasks efficiently

Principles of Scientific Management
• Workers are essentially economic beings
• Workers should be developed to their
maximum potential
• Competitive pay system
• Cooperation between managers and workers
• Organizational and individual goals should be
compatible
•

Scientific management
Study jobs systematically with a view to improving
the way tasks are performed
Select the best employees for the various jobs.
Train the employees in the most efficient methods
Offer incentives (higher wages) to the most able
employees and use piece-rate system of payment to
encourage greater effort.
Use rest pauses to combat fatigue
Entrust to supervisor the task of ensuring that
employees are using the prescribed methods

The ideas of scientific Management

dramatically increased productivity
across all industries ,and they are still
important today.

Administrative Management
Administrative
Management: concerned
with managing the total
organization
Among the pioneering theorists were

Henry Fayol & Max Weber
Henry Fayol and the Functions
of Management
Henry Fayol was the first to systematize management
management behavior– he was the first to identify the major
functions of management: planning, organizing, leading,
controlling, as well as coordinating
Planning Organizing
You set goals and You arrange tasks,
decide how to people, & other
resources to
achieve them accomplish the work
Controlling Leading
You monitor performance, You motivate, direct &
compare it with goals and otherwise influence people
take corrective action as to work hard to achieve
needed the organization’s goals
Fayal's 14 Principles of Management
1. Division of labor-Divide work into specialized
tasks and assign responsibilities to specific
individuals.
2. Authority -Delegate authority along with

responsibility
3. Discipline Make expectations clear and

punish violators
4-Unity of commandEach employee has one

and only one boss
5-Unity of Direction- Employees efforts should
be focused on achieving organization’s
direction.
6-Subordination of Individual interest to the
general interest When at work, only work
things should be pursued or thought about.

• RemunerationEmployees receive fair payment
for services,
• Centralization- Decisions are made from the
top.
• Scalar Chain(line of authority). Formal chain of
command running from top to bottom of the
organization, like military
• Order-All materials and personnel have a
prescribed place, and they must remain there.
• Equity-Equality of treatment
• Stability and tenure of personnel-Promote
employee loyalty and longevity
• Initiative-Thinking out a plan and do what it

takes to make it happen.

• Esprit de corps-Promote a unity of interest
between employees and management

Max Weber & the Rationality
of Bureaucracy
• To
: Weber, a bureaucracy(Successful
implement the actions of an organization of
any size in achieving its purpose.) was a
rational, efficient ideal organization based
on principles of logic—he felt good
organizations should have five bureaucratic
features

of Bureaucracy
• Labor is divided with clear definitions of
authority and responsibility.
• Positions are organized in a hierarchy of
authority ,with each position under the
authority of a higher one

of Bureaucracy
• Rules and regulations determine and
standardize behavior
• Administrative acts and decisions are
recorded in writing
• Management is separate from ownership
in any organization.

Classical bureaucracy
Max Weber, 1947
• Hierarchy of authority
• Rights and duties are attached to the various
positions
• Division of labour
• Rules and procedures
• Documentation in which info is recorded in written
form
• Technical competence
• Separation of ownership from control

The Problem with the Classical Viewpoint
The classical viewpoint

tends to be too
mechanistic: it tends
to view humans as
cogs within a
machine, not taking
into account the
importance of human
needs

Behavioral Management Theory
Human Human Behavioral

Thhe
Relations Resource Science

Management Perspective Approach

Human Relations Management
Hawthorne Studies
• Hawthorne studies was conducted at the

western Electric Company in the US between
1924-1932
• Elton Mayo was a professor of Industrial
Research at the Harvard School of Business
Administration
• He is called the ‘Father of human relations
movement .’

Elton Mayo & the Supposed Hawthorne Effect
• Elton Mayo and his colleagues conducted

studies at Western Electric’s Hawthorne
Plant and began with an investigation to
see if different lighting affected workers’
productivity

Experiment
• The first study was conducted by a group of
engineers seeking to determine the
relationship of lighting levels to worker
productivity. Surprisingly enough, they
discovered that worker productivity increased
as the lighting levels decreased

Human Resource Approach
• The Human relations approach highlighted the
impact of behavior on
performance .Interpersonal behavior has its
impact on satisfaction which in turn may lead
to improved performance .
• Abraham Maslow and Douglas Ac Greg
or .Their contribution form the human
resource approach

Behavioral Science Approach
• Psychologist ,sociologists and others began
studying people at work .The behavioral
science approach believes that an individual is
motivated to work for many reasons in
addition to making money and forming
interpersonal relationships.

Behavioral Science Approach
• The principals of behavioral science approach
are being practiced in every organization and
behavioral science as a course more popularly
known as Organization Behavior.

Systems Approach (60-70s)
A system is set of interrelated and

interdependent parts arranged in a manner
that produces a unified whole

regards the organization as a
system of interrelated parts
By adopting this perspective
you can look at your
organization in two ways
1. A collection of subsystems—
parts making up the whole
system
2. A part of the larger environment

The Four Parts of a System
Inputs Outputs
The people, money, The products, services,
information, equipment, profits, losses, employee
and materials required satisfaction or
to produce and discontent, and the like
organization’s goods or that are produced by the
services organization
Transformational
Feedback
Processes
Information about the
The organization’s capabilities
reaction of the
in management and technology
environment to the
that are applied to converting
outputs that affect the
inputs to outputs
Oguchi Martins Egbujor inputs
152
Contingency approach
The contingency approach

sometimes called the
situational approach says that
organizations are different ,face
different situations ,and require
different ways of managing.
• A good way to describe contingency

• If this is the way my situation is then
this is the best way for me to manage in
this situation
• This approach is intuitively logical
because organizations and even units
within the same organization differ-in
terms of size ,goals , work activities.
The Contemporary Perspective: The
Contingency Viewpoint
The Contingency
Viewpoint
emphasizes that a
manager’s approach
should vary according
to—that is, be
contingent on—the
individual and the
environmental situation

• The Primary value of the contingency
approach is that it stresses that there are no
simplistic or universal rules for managers to
follow

Quantitative Approach
• The Quantitative approach evolved from
mathematical and statistical solutions
developed for military problems during word
war II.
• After the war was over , many of these
techniques used for military problems were
applied to business

Quantitative Approach
• One group of military
officers ,nicknamed the whiz kids
joined Ford Motor Company in
the mid -1940s and immediately
began using statistical methods
and Quantitative models to
improve decision making
The Contemporary Perspective:
The Quality Management Viewpoint
The Quality
Management
Viewpoint includes
quality control, quality
assurance, and total
quality management

• Total Quality Management is a
comprehensive approach—led by top
managers and supported throughout the
organization—dedicated to continuous
quality improvement, training and
customer satisfaction

Four Components of TQM:
1. Make Continuous Improvement a Priority

2. Get Every Employee Involved
3. Listen to and Learn from Customers and
Employees
4. Use Accurate Standards to Identify and
Eliminate Problems

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Unit 12

Oguchi Martins Egbujor 1

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Johnson and Scholes, 1988

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(Peter Drucker, 2009)

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Adv Rec/ Train Acco Deliv Cust

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(Wiley, J., 2005)

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(Bass, 1990; Wiley, 2005; Keltner et. al., 2003)

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Organisation with a power culture: power is held by just a few

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Role Autocratic or Paternalistic

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The communication and the interactions within

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A system is set of interrelated and

Organized enterprise depends on its external

The System Viewpoint The Contingency Viewpoint The Quality Management

Quality Control Quality Assurance Total Quality Management

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2. Critically analyse how the culture, politics and

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GROUP A (MAISA) (SUGANTHAKUMARY)

GROUP B (TONI) (SUJATHA)

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