ORGANISATIONAL ORGANISATIONAL BEHAVIOURBEHAVIOUR

OrganisationOrganisation

A structured social system consisting of A structured social system consisting of groups of individuals working together to groups of individuals working together to meet some agreed-on objectivesmeet some agreed-on objectives

Organisational Behaviour is the field that Organisational Behaviour is the field that seeks knowledge of all aspects of seeks knowledge of all aspects of behaviours in organisational settings by behaviours in organisational settings by the use of the scientific methodthe use of the scientific method

Three levelsThree levels

IndividualsIndividualsGroupsGroupsOrganisationsOrganisations

Early PracticesEarly PracticesAdam SmithAdam Smith

Scottish philosopher

Wrote ‘Causes of Wealth of Nations’

Proposed ‘Division of Labour’

Charles BabbageCharles BabbageBritish Mathematics professor

Wrote ‘On the Economy of Machinery and Manufactures’

Proposed advantages of division of labour:

•Reduces the time needed for learning a job

•Reduces waste of material

•Attainment of high skill levels

•Matching skills and abilities with jobs

Robert OwenRobert OwenWelsh entrepreneur

Recognised how factory work was demeaning to employees

The Classical EraThe Classical Era

Scientific Management- Frederick TaylorScientific Management- Frederick TaylorDevelop a science for each element of an Develop a science for each element of an

individual’s workindividual’s workScientifically select, train, teach and Scientifically select, train, teach and

develop workerdevelop workerCooperation with workersCooperation with workersDivide work responsibility equally between Divide work responsibility equally between

management and workersmanagement and workers

Hawthorne studiesHawthorne studies

Illumination experimentIllumination experimentRelay room experimentRelay room experimentMass interviewingMass interviewingBank wiring observationBank wiring observation

Classical Organisation TheoryClassical Organisation Theory

Administrative TheoryAdministrative TheoryFrench industrialist Henry FayolFrench industrialist Henry FayolProposed that a manager plans, Proposed that a manager plans,

organises, directs, controls and organises, directs, controls and coordinatescoordinates

14 principles of management including 14 principles of management including division of labour, authority, scalar chain, division of labour, authority, scalar chain, unity of command, initiativeunity of command, initiative

Max WeberMax Weber

Proposed Structural TheoryProposed Structural Theory

Described bureaucratic Described bureaucratic structurestructure

Division of labour, clearly Division of labour, clearly defined hierarchy, detailed defined hierarchy, detailed rules and regulations and rules and regulations and impersonal relationshipsimpersonal relationships

Formal rules regulationsFormal rules regulationsDivision of labourDivision of labourHierarchical structureHierarchical structureAuthority structureAuthority structureLifelong commitmentLifelong commitment

Social Man TheorySocial Man Theory

Mary Parker Follett

Emphasised on group ethics

Manager must coordinate group efforts

Chester BarnardChester BarnardSocial Systems Theory

Organisations made up of people who have interacting social relationship

They communicate

Success depends on maintaining good relations

Herbert Simon

Described organisations as a complex network of decisional process

Decision process comprises i) intelligent activity ii) design activity iii) choice activity

Bounded rationalityadministrative

Peter Drucker

Nature of management as innovative and creative

Manager has to act as administrator, entrepreneur, set objectives etc.

Organisation structure to facilitate effective functioning

MBO

Behavioural EraBehavioural Era

Hugo Munsterberg

Published ‘psychology and Industrial efficiency’

Saw a link between scientific management and industrial psychology

Suggested use of psychological tests

Wagner ActWagner Act

After great depression of 1929, Wagner After great depression of 1929, Wagner Act was passed which recognised union Act was passed which recognised union as the authorised representatives of as the authorised representatives of workersworkers

Human RelationsHuman Relations

Hawthorne studiesHawthorne studiesDALE carnegieDALE carnegieMaslowMaslowMcGregorMcGregor

Behavioural Science TheoriesBehavioural Science Theories

MorenoMoreno-sociometry for studying group -sociometry for studying group interactionsinteractions

SkinnerSkinner-operant conditioning-operant conditioningMcClelland McClelland Theory-need theoryTheory-need theoryFiedlerFiedler-situational theory of leadership-situational theory of leadership

Contingency perspectiveContingency perspective

No one ‘best way’ to manage people.No one ‘best way’ to manage people.

Challenges/emerging issues for Challenges/emerging issues for OBOB

GlobalisationGlobalisationWorkforce diversityWorkforce diversityNature of organisationNature of organisationChanging nature of work Changing nature of work Changing employee needsChanging employee needs Improving quality and productivityImproving quality and productivity

Orgnisations are dynamicOrgnisations are dynamic

Open systemsOpen systems-Self sustaining systems that transform input -Self sustaining systems that transform input

from the external environment into input, from the external environment into input, which the system then returns to the which the system then returns to the environmentenvironment

Forces shaping OBForces shaping OB

Globalisation of economyGlobalisation of economyDiversification of workforceDiversification of workforceNew working arrangements (flexitime, New working arrangements (flexitime,

compressed workweek,job sharing, compressed workweek,job sharing, telecommutingtelecommuting

MNCsMNCsMulticultural societyMulticultural society

New forms of organisationNew forms of organisation

Leaner organisationsLeaner organisations-informate : process by which workers -informate : process by which workers manipulate objects through inserting data manipulate objects through inserting data between themselves and those objectsbetween themselves and those objects

OutsourcingOutsourcingContingent workforceContingent workforce

Virtual corporationsVirtual corporationsHighly flexible, temporary organisations Highly flexible, temporary organisations formed by a group of companies to exploit formed by a group of companies to exploit a specific opportunitya specific opportunity