to study the approaches of organisational behaviour

Items Description of Module

Subject Name Human Resource Management

Paper Name Organisational Behaviour

Module Title Approaches to organisational behaviour

Module Id 2

Pre- Requisites Basic knowledge of organisation

Objectives To study the approaches of organisational behaviour

Keywords Classical approach, neo-classical approach, modern approach

.

Quadrant-I

Module- 2: Approaches to Organisational Behaviour

1. Learning objectives

2. Introduction

3. Approaches to Organisational Behaviour

3.1 Classical Approaches

1. Scientific Management

2. Administrative Management

3. Bureaucratic Management

3.2 Neo-Classical Approaches

1. Human Relation Approach

2. Human Behaviour or Human Resource Approach

3.3 Modern Approaches

1. System Approach

2. Contingency or Situational Approach

4. Summary

1. Learning objectives:

The basic objectives of this module are:

To study the basis of Approaches to Organisational Behaviour.

To study the Classical Approaches to Organisational Behaviour.

To know about the Neo-Classical Approaches to Organisational Behaviour.

To learn about Modern Approaches to Organisational Behaviour.

2. Introduction

Organisational Behaviour has been built on the basis of information and practices created with the help of

numerous systematic researches over a period of time. Erstwhile, different management specialists have

also stressed to find out the answers to various problems which have a relation to the difficulties of human

behaviour in organisations. Nevertheless, these studies have been limited to the area of organisational

planning, designing organisational structure and regulating human behaviour in organisations. The main

focus of almost all the researches at that time was on the designing of organisational structure and a very

important aspect, namely, ‘analysing human behaviour in organisations’ remained unexploited. Thus,

classical approaches at that time were mainly Scientific Management, Administrative Management and

Bureaucratic Management.

The spinning point which came in the thinking of management specialists came with the Hawthorne

Experiments which was conducted by Elton Mayo and his colleagues from Harvard Business School.

They are of the viewpoint that obedience to management principles is not sufficient to make the

management of an organisation successful, but the employees of an organisation should also be given due

attention and concern. After that, various other researches were also performed in the same area.

3. Approaches to Organisational Behaviour

The approaches of organisational behaviour can be divided into three categories:

3.1Classical Approaches





1. Human Relation Approach



1. System Approach


3.1 Classical Approach

The classical approach to organisational behaviour came into force around the year 1900. The term

classical may be defined as something which has a traditional acceptance or long formation. The

principles formed under this approach are also applicable in the present context. This approach was

based on the assumption that more consideration should be given to production rather than manpower

in an organisation. An employee can be motivated through monetary incentives as per the conviction

of classical approach.

Source: https://image.slidesharecdn.com/evolutionofmanagement-160924084218/95/evolutionof-

management-8-638.jpg?cb=1474706590

The classical approach to organisational behaviour has the following interpretations:-

Interconnected and Systematic Management Functions: The functions of management

such as planning, organizing, staffing, directing and controlling are interconnected and their

systematic coordination is the core of management. A specific function of management is

comprised of in other functions i.e. planning in organising, staffing, directing and controlling.

Thus, the working of a manager in an organisation can be described by the functions of

management.

Supervisory Principles: Classical approach to organisational behaviour laid the foundation

of many management principles which deliver rules for the management of human behaviour.

The nature of these principles is rigid and they are applicable everywhere.

Inflexible Organisational Structure: Classical approach has provided an inflexible and

rigid organisational structure for monitoring human behaviour. The structure is based on a

hierarchy in which employees working at lower level position are controlled and regulated by

the immediate higher level boss.

Monetary Incentives for Motivation: Classical approach is of the view that monetary

incentives should be provided to employees which will be a source of greater motivation for

performance.

Thus, there has been a very few followers of classical approach because of its inflexibility and rigidity.

However, there are three approaches in classical approach which are discussed as under:-


The credit of introducing the concept of scientific management goes to F.W. Taylor. He is

regarded as the father of scientific management. This concept was introduced by him in USA in

the beginning of 20th century. Besides, Taylor, Frank and Lillian Gilbreth, Henry L. Gantt, and

Harrington Emerson have also contributed significantly to the growth and development of the

concept of scientific management. The term ‘Scientific Management’, when defined in literary

terms, means doing the work of management in a scientific manner. Thus, scientific management

may be defined as removal of the traditional approaches to management and implementing

innovative and more scientific approaches. Taylor was of the view that before starting a work a

manger should make a thorough analysis of it and should take his decisions accordingly.

Source: https://image.slidesharecdn.com/scientificmanagement-131121213311-

phpapp02/95/scientific-management-5-638.jpg?cb=1385069914

Principles of Scientific Management

Taylor has given some basic principles of scientific management which have been discussed as

under:-

1) Substituting Rule of Thumb with the application of Science: According to this principle, in

order to develop a technique of completing maximum possible work efficiently and at minimal

cost, there should be a detailed analysis of activities which are being performed in an

organisation. It also states that instead of getting stuck up with the traditional techniques of doing

work, new and innovative techniques should be devised in order to make the work simpler and

easier. In short, it can be said that the rule of thumb should be substituted with the application of

science or organised knowledge.

2) Harmony between Labour and Management: This principle considers both labour and

management as complementary to each other. Labour, the most important factor of production,

cannot work without the survival of management and management, on the other hand, has no

existence without the services of labour. Thus, according to this principle, there should be

harmonious relations between labour and management in an organisation and both should aim to

achieve the same objective viz. the maximum and good quality output at minimum cost.

3) Systematic Selection and Training of Workers: As per this principle, a systematic and

organised method should be adopted for the selection and training of workers. A wrong

appointment can destroy the whole environment of the organisation. There should be an

appointment of only those persons who possess the required skills and capabilities necessary to

perform a particular job. But the work doesn’t end here only. With the proper selection there

comes the proper training. The workers should be provided with proper and adequate training

from time to time in order to enhance their efficiency which will ultimately be beneficial for both

the workers as well as the organisation.

4) Maximum Production: According to this principle, full efforts should be made by both labour

and management in order to achieve maximum production or output. Factors of production which

are available with the organisation should be utilised to the fullest possible extent. If there is

proper utilisation of factors of production there would be a chance of having maximum profits

which will ultimately increase the wages of the workers and they will be more committed to the

organisation.

5) Equality and Fairness in division of Responsibility: This principle states that there should be

equality and fairness in dividing responsibilities between the two main groups in the organisation

i.e. Management and Labour. The responsibility of assigning the time required to do a particular

work lies with the management and that of actual completion of work rests with the Labour. If the

time required to complete a particular work is not determined properly, then manager will be held

responsible and on the other hand, if the work has not been done in a proper manner the labourer

would be responsible. Thus, the responsibility is equally divided between both labour and

management.

Techniques of Scientific Management

The principles of scientific management only bring out the theoretical aspect. Taylor has

developed the following techniques for the proper application of the principles of scientific

management.

1) Scientific Work Study: Taylor was against the inability to do work and wanted to

remove it by applying all possible means. Therefore, he conducted various experiments

and evidenced that if the steps in the production process are reduced to minimum, if, at

the time of doing work, needless movements of the body are removed, if the time

necessary for performing a work is properly determined and if the employees are not

treated like animals at the work place then inability to do work can be removed

completely from the organisation. By taking these experiments as base, he has

categorised the work study into four parts which have been discussed as under:-

i. Method Study: The study which ascertains the most appropriate way of performing

a particular activity is known as Method Study. The techniques which are used in this

study are process chart and operation research. Minimisation of cost of production

and maximisation of quality and level of customer satisfaction is the primary

objective of this study.

Source:http://www.rightattitudes.com/blogincludes/images/20070929_method_study

_critical_examination.jpg

ii. Motion Study: While performing a job, the motions which are being performed by

the workers and machines are covered under Motion Study. The study is performed

with the help of a movie camera. Removal of needless or unwanted motions is the

prime objective of this study.

Source: http://study.com/cimages/videopreview/2.12_102193.jpg

iii. Time Study: The study of deciding the standard time needed to complete a particular

activity is known as Time Study. A stopwatch is being used to perform the study.

Determining labour costs, number of workers required and deciding a suitable

incentive plan are the main objectives of the study. Under this study, the standard

time is being decided on the basis of average time recorded in various experiences of

work of similar nature.

Source: http://www.medicalnegligenceassist.co.uk/wp-content/uploads/Clinical-

Claims-Time.jpg

iv. Fatigue Study: The study related to deciding the duration and rate of occurrence of

rest intervals to finish a particular job is termed as Fatigue Study. A worker gets

refreshed after the rest and they again start their work with full energy and capability.

The maintenance of efficiency of workers is the main objective of this study. The

main causes behind the fatigue are poor working conditions, long working hours,

inappropriate work, and unhappy relations with the superiors.

Source: https://www.ueunion.org/images/stwd_fatigue.gif

2) Systematic Task Planning: Task Planning in a systematic manner may be defined as

going through all the characteristics of a particular work before starting it i.e. what is to

be done? How it is to be done? When it is to be done? Where it is to be done? And who is

going to do it? In every organisation, there should be a separate department for planning

for doing this work.

3) Systematic Selection and Training of Workers: The process of selecting right man for

the right job without any favouritism is known as systematic or scientific selection.

According to Taylor, there should be a separate personnel department in every

organisation which will make appointments of staff and will impart training to them

before their positioning on the job. Modern techniques and methods should be followed

for giving training to the selected persons for the job in order to increase their efficiency.

4) Setting up of Standards: The process of setting standards for various activities of the

business after due consideration of all the factors is termed as Standardisation. For

example, a standard output can be fixed for a worker which is to be achieved by him

every day. There can be standards for raw materials, machines, working conditions, tools

and techniques, etc.

5) Differential Wage System: It is the viewpoint of Taylor that a differential wage system

should be followed as it will encourage the employees in an organisation. As per this

system, wages are paid to the workers on the basis of work done by them rather than on

the basis of time spent in performing a work. Under this system, two wage rates are

determined: one is the high wage rate and the other is the low wage rate. The workers are

paid as per the high wage rate if they are able to produce the standard units fixed for them

within the specified time limit and those who failed to achieve the standards are paid as

per the lower wage rate.

6) Mental Revolution: The aim of mental revolution is to bring about a change in the

attitude of both the managers and the workers. This change in the attitude of both the

parties will bring about a feeling of cooperation among them. Usually, there is a fight

between labour and management on the division of profits. According to Taylor, such an

attitude should be framed that both the parties should do hard work for increasing the

profits. If such a thinking is developed, there would be an increase in production resulting

in an increase in profits and the topic of division of profits will be having no value.

7) Functional Foremanship or Specialisation: Functional Foremanship is defined as

making the full use of the expertise and skills of various specialists which will lead to

specialisation. Under this concept, work is divided into various parts, and each part is

given to one expert. By adopting this method, advantages of specialisation are occupied.


Henry Fayol, an Industrialist of France,is the father of Administrative Management. This

approach is also known as Process Management. This approach lays emphasis on the

development of broad administrative principles which can be applied to general and higher

managerial levels. In this approach, the business activities has been divided into six categories

viz. technical, commercial, financial, security, accounting and managerial activities. The main

components of managerial activities are planning, organising, coordinating, commanding and

controlling. According to Henry Fayol, the management is a type of activity which is performed

in the same manner in all business as well as non-business organisations. He has given five

functions of management viz. planning, organising, coordinating, commanding and controlling

and fourteen principles of management. These principles have been discussed as under:-

Principles of Management

Source: http://www.marketing91.com/wp-content/uploads/2016/06/Henri-fayols-14-principles-

of-management.jpg

i. Division of Work: According to this principle, the whole work of an organisation is

divided into small tasks and each such task is assigned to one specialist who is well

trained. This division of work leads to specialisation which is the most effective means to

use human effort. Thus, work can be performed more effectively when it is divided into

different tasks and each such task is performed by one specialist.

ii. Authority and Responsibility: The term ‘Authority’ means power to take decisions and

‘Responsibility’ means a commitment to do a given job. According to Henry Fayol, there

must be a balance between authority and responsibility. For example, if an employee has

been given a responsibility to do a job then he must be provided with enough authority to

perform his/her job efficiently and vice-versa.

iii. Discipline: Discipline means following the rules and regulations of the organisation and

agreement of employment as these are necessary for the functioning of an organisation.

As per this principle, all the employees working in an organisation should function as a

unified team and should follow organisational discipline. All of them should respect and

follow a mutual system and code of conduct viz. rules for taking leave, overtime

allowances, reporting time, bonus, etc. Thus, discipline is very important for the smooth

functioning of the organisation.

iv. Unity of Command: According to this principle, an employee should receive orders

from one superior only and to whom he/she should be answerable. A situation of conflict

and confusion is created when an employee receives orders from more than one superior.

Therefore, this principle of unity of command eliminates confusion and leaves no place

for conflict.

v. Unity of Direction: The principle of unity of direction states that those activities which

have a common objective should be directed through one head and one plan. It will help

in bringing about unity of action and coordination in an organisation.

vi. Priority to General Interest over Individual Interest: As per this principle, the interest

of the organisation should be given top priority than the individual interest of employees.

Thus, the common objectives of the organisation should overtake the individual

objectives of the employees.

vii. Fair Remuneration to Employees: According to this principle, the wages and salaries

given to both the employer and the employees should be fair and equitable and should

also guarantee a reasonable standard of living.

viii. Centralisation: The process of concentration of decision-making power with one person

is known as Centralisation. On the other hand, Decentralisation means the distribution of

decision-making power among more than one person. According to this principle, there is

a need to bring decentralisation through involvement of subordinates in decision-making

but the final authority to take decision should rest with the top management as per

centralisation. Thus, there should be a balance between centralisation and decentralisation

depending on the type of organisation.

ix. Scalar Chain: Scalar Chain means the formal line of authority that flows from top to

bottom. According to this principle, there should be a clear line of authority from top to

bottom which will link superiors and subordinates at all levels. This scalar chain will

work as a chain of command and communication.

x. Order: According to this principle, there should be orderliness in an organisation. In an

organisation, there should be an appropriate place for everything and everyone and

everything and everyone should be at the right place.

xi. Equity: According to this principle, managers should be fair and kind towards their

workers and they should treat all workers equally. Thus, there should be no

discrimination on the basis of sex, religion, caste, etc. and all the employees should be

treated equally.

xii. Stability of Tenure of Personnel: As per this principle, employees should have stability

of tenure and they should be given enough time to show their performance and talent.

Also, repeated transfers and rotations should be minimised. If after settlement in the job,

an employee receives any transfer order, it will bring wastage of resources and he/she

will not be able to give his/her best to the organisation.

xiii. Initiative: According to this principle, employees at every level should be given some

freedom so that they may come forward and use their abilities and skills to achieve the

expected goals. Moreover, there should be a suggestion system for employees whereby

initiatives and suggestions from employees are invited. It will lead to creation of a

healthy environment in an organisation.

xiv. Esprit de Corps: It refers to team spirit which means harmony in work group and mutual

understanding among employees. It will lead to creation of an atmosphere of mutual trust

and understanding in an organisation. It also focuses on the popular saying viz. ‘Union is

Strength’.

Assessment of Administrative Management: The contribution of Henry Fayol to

management is worth noting. He has given some major ideas which proved beneficial.

These ideas are:

i. Management is Universal.

ii. Managers can be formed, they are not born.

iii. There can be delegation of authority, not the responsibilities.

iv. A person should be assigned one work at a time.

v. The authority should be clearly defined from top to bottom.

vi. The information of authority and responsibility of every employee should be

provided to them in writing.

vii. A manager should be assigned control of not more than six subordinates at a

time.

Thus, it can be concluded that the principles given by Fayol are applied even today in order to

provide guidance to the managers.


The approach of bureaucracy was given by a social scientist of Germany Max Weber. According

to him, in order to remove irregularities in management firm and strict rules should be made

because irregularities lead to incompetence. He was of the view that there should be a well-

defined formal system in an organisation in order to bring about success and efficiency. Besides,

he was also of the belief that success and efficiency in an organisation can be achieved only

through bureaucracy.

Source: https://idfi.ge/public/upload/Georgia-2020/alapishvili_featured.jpg

Characteristics of Bureaucratic Management

1) Impersonal Relationships among People: Under bureaucratic system of management,

payment of rewards and prizes should be made on the basis of efficiency and skills of a

person and not on the basis of personal relations with him/her.

2) Systematic Rules: In order to manage the activities of the organisation, systematic and

proper rules should be made and these should be strictly applied.

3) Division of Work in a Suitable Manner: The work should be divided in an organisation

on the basis of specialisation. An employee should be assigned a work in which he/she is

an expert.

4) Strong Hierarchy of Authority: The hierarchy of authority of the superiors and

subordinates should be strong and should be visibly demarcated. The employees should

be made responsible for the decisions made by him/her and his/her subordinates.

5) Basis of Promotion: In bureaucracy, the promotion should be given to the employees on

the basis of their efficiency, skills, and abilities.

Assessment of Bureaucratic Management

The arguments in favour of this approach are as follows:

i. The consistency in the functioning of employees is ensured.

ii. It helps in bringing specialisation through systematic division of work.

iii. The efficiency of employees can be enhanced as they will be given promotion on

the basis of their efficiency and skills.

iv. The organisation is functioning in a continuous manner as the focus is not the

individual but the workplaces.

Criticism

i. Due to framing of various rules and regulations, there is an increase in paper

work.

ii. The employees do not take any initiatives for the success of organisation.

iii. There is resistance to change by the workers.

iv. There is increase in Red-tapism or bureaucracy.

v. Personal relations are completely overlooked.

Thus, it can be concluded, that the concept of bureaucratic management is suitable for

those organisations which do not get affected by changes such as in government

departments or big business houses.


According to this approach, human resources should be given more importance than physical

resources of the organisation. It came around the year 1930. It is further divided into two

approaches which have been discussed as under:-

1. Human Relations Approach

Human Relations Approach was given by a famous psychologist Elton Mayo. According

to this approach, the employees of an organisation should be treated like human-beings

and not as money making machines. Elton Mayo conducted experiments in order to

finalise this approach which are called Hawthorne Experiments. These experiments

showed that production has a direct relation with emotional factors rather than working

conditions. The final conclusion of Mayo was that while doing work informal

relationship among the employees play a significant role. Employees have their own

needs and desires. Thus, they should not be simply treated as means of production but as

human-beings.

Assessment of Human Relations Approach

It is important to study the significance and criticism of human relations approach. It is

explained as under:-

Significance

The importance of human relations approach has been discussed as under:-

i. There is a great impact of non-monetary incentives on the competence of

employees.

ii. There should be clear understanding about the psychology of workers.

iii. Workers should be treated with dignity and honour.

iv. Factory is not just a work place. It is a kind of social organisation. Thus, workers

should be treated as social beings and not just a means of production.

v. Productivity of employees and work conditions do not have any relationship.

vi. Employees should be allowed to participate in the process of decision-making.

vii. Workers feel more satisfied by working in groups rather than as individuals.

viii. Complete information should be provided to workers.

ix. Autonomous style of leadership is more effective than production focussed style

of leadership.

x. During working hours, proper arrangement should be made for the rest of

workers at regular intervals so that they do not feel fatigue and stress.

Criticism

i. This approach is more focussed on human-beings rather than other factors.

ii. A business organisation cannot be recognized as a family due to existence of

people with various religions, castes, etc.

iii. Non-monetary incentives cannot be the only source of satisfaction for the

workers.

iv. It is not necessary that people remain satisfied by working in informal groups.


Source: https://media.licdn.com/mpr/mpr/p/7/005/07d/0ea/06f0ad8.jpg

Under this approach, the emphasis is given on the study of human behaviour rather than

human relations. This approach came into style after 1940. This approach is also known

as leadership, behavioural science or human resource approach. The supporters of this

approach include scholars like Douglas McGregor, RensisLikert, Chester I. Bernard,

Fredrick Herzberg, Mary Parker Follet, Warren G. Bennis, Abraham Maslow, etc. The

major contributions made by these behavioural scientists can be summarised as under:-

i. People are not work shirkers. They want to achieve the objectives if they are

involved in the establishment of objectives. Thus, work is a mode of motivation

and satisfaction to employees.

ii. The fundamental task of a manager should be to bring out the hidden human

potential and use it in the service of the organisation.

iii. The subordinates should be encouraged to participate in the significant matters of

the organisation and should be provided self-direction by the manager.

iv. A healthy and safe work environment should be created in which all the

subordinates can make their full contribution according to their capabilities.

v. Employees’ satisfaction at work place will improve the side-effects of

subordinates and will make full use of their capabilities.

vi. There can be increase in operational efficiency through enlargement of influence

of subordinates, their self-direction and self-monitoring.


This approach came into trend around the year 1950. It is an enhanced form of classical and neo-

classical approach. This approach has been made with the help of two fundamental approaches

viz. System Approach and Contingency Approach.

1. System Approach

System Approach was formed by Chester I. Bernard, Herbert A. Simon and their

associates. It came into existence in the year 1960. This approach focuses on the inter-

connection and inter-dependence of all the activities in an organisation. Thus, system

approach refers to a group of inter-linked units. A group of different units forms a

complete unit which is known as a system and each small unit is called a sub-system.

As per system approach, the organisation is a system and various departments within an

organisation are its subsystems. All the departments should function as a union so that the

objectives of the organisation can be achieved.


Contingency Approach was invented around the year 1970. According to this approach,

the decision-making by the managers should be done according to situations rather than

according to principles. Thus, there is no such single formula or principle which can be

applicable in case of all the situations. This is because of the fact that the nature of

environmental factors in an organisation changes every now and then. These

environmental factors can be both internal as well as external factors. The internal factors

are those which exist within an organisation such as policies, objectives, structure of the

organisation, etc. On the other hand, the external factors are those which prevail in the

outside environment such as competition, suppliers, legal and political system,

government policies, etc. The business environment is called dynamic because all

internal and external factors are likely to change. Thus, this approach provides

suggestions to the managers for the identification of techniques and methods which can

be applied in a particular situation so the goals of an organisation can be attained.

4. Summary

Thus, there are basically three approaches to organisational behaviour viz. classical, neo-classical

and modern approach. The classical approaches include scientific, administrative and

bureaucratic management. Neo-classical approaches consist of human relation and human

behaviour approach. The modern approaches comprise of system approach and contingency or

situational approach.

to study the approaches of organisational behaviour

Documents