Gbus205 Mgt & Organisational Behavoir Lect 2 Fin

8/17/2019 Gbus205 Mgt & Organisational Behavoir Lect 2 Fin

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APPROACHES TO THE STUDY OFORGANISATIONAL BEHAVIOR AND

MANAGEMENT

(The Development o M!n!"ement !n#O$"!n%&!t%on!l Beh!v%o'$

B) G$!*e A++!n , Amp%!h

GBU -./0 MANAGEMENT 1 ORGANISATIONALBEHAVIOR

WEEK 3


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Learning Outcomes

At the end of this lecture, students will be

able to:

Recognise how m!n!"ement p$%n*%ple& !n#p$!*t%*e have changed over the years before!"##s$%

&nderstand the signi'cance of the di(erenta))roaches of management and organisationalbehaviour to the )resent*day management%


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+ontent Evol't%on o M!n!"ement (H%&to$%*!l Root& o

M!n!"ement !n# O$"!n%2!t%on!l Beh!v%o'$

anagement before the -ndustrial revolution !"##s$%

anagement during the Ra)id industriali.ation and /echnological advancement 0efore !1th and !"thth +entury$

+ontributions of anagement 2chools of thoughttowards the evolution of anagement 2tudies%

Relevance of theories of management to )resent*dayanagement in organi.ations%


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Le*t'$e St$'*t'$eRe!&on& why understanding the history of

management thought is im)ortant tomanagers%

Evol't%on o M!n!"ement anagement before -ndustrial Revolution

eriod

anagement during the ra)id -ndustrial

Revolution


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Lecture 2tructure Cont$%+'t%on& o M!n!"ement S*hool& o tho'"ht

to3!$#& the evol't%on o M!n!"ement St'#%e&4

Cl!&&%*!l M!n!"ement S*hool

2cienti'c anagement theory 4rederic5 %W%/aylor$

Administrative anagement /heory 6enri 4ayol$ 0ureaucratic anagement theory a7 Weber$

Beh!v%o'$!l (H'm!n Rel!t%on& M!n!"ement S*hool

6awthorne 2tudies Elton ayo$

Mo#e$n M!n!"ement Theo$)

+ontingency anagement theory


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The m!%n mot%ve o$ theevol't%on o the m!n!"ementtheo$%e& %& to &e!$*h o$ +ette$

3!)& o$ en&'$%n" o$"!n%2!t%on!le5*%en*)

-ntroduction


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8rou) E7ercise9iscuss the reasons why it is %mpo$t!nt for

m!n!"e$&6't'$e m!n!"e$& to study and understandthe 3o$7 o P!&t Theo$%&t& to3!$#& the#evelopment o m!n!"ement !n# o$"!n%2!t%on!lBeh!v%o'$ in this dynamic and changing world%

Elect a leader to )resent your comments to the class%


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8h) %& %t %mpo$t!nt o$ m!n!"e$& to &t'#)!n# 'n#e$&t!n# p!&t theo$%&t& %n th%&

*h!n"%n" +'&%ne&&

-t is im)ortant for managers to study and understand ast theoristsbecause of the following:

-n order to become an successful manager reuires ana))reciation of early ideas in management and reasons for its

develo)ment%

/he theories still form a vital )art of the build u) body ofmanagement 5nowledge%

-t ensures that managers does not have to $e,%nvent %#e!& thathave been generated by others%

E!$l) %#e!& form the basis for current understanding and +oo&t)o'$ !+%l%t) to develo) new ideas%


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M!n!"ement +eo$e theIn#'&t$%!l Revol't%on

0efore the industrial revolution:

/here was no m!n!"ement theo$)%

ost )eo)le wor5ed in small wor5sho)s%

ost )eo)le used ho$&e& for )lowing the 'eld

and &%mple tool& for manufacturing of)roducts%


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In#'&t$%!l $evol't%on

Cont%n'e#

anagement was based on t$%!l and e$$o$ with little or not theory%

/here was no *ommon body of7no3le#"e o$ theo$et%*!l basis formanaging resources%

/here was 9:no +e&t p$!*t%*e&;; lac5 ofsharing of ideas in


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anagement before the -ndustrialRevolution 0efore =#th +entury$


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In#'&t$%!l Revol't%on E$! ; (


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Ch!$!*te$%&t%*& o In#'&t$%!lRevol't%on %n En"l!n#6USA

Invent%on& of di(erent machinery usedin factories E%g% manufacturing, te7tilese%t%c

Imp$ove# t$!n&po$t!t%on railways$for moving goods and resources from one)lace to another%

Av!%l!+le Ele*t$%*%t) for )roduction of

)roducts in factories%H%"h #em!n# for goods and services%

+oncentration of wor5force in factories%


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8hen !n# Ho3 #%#m!n!"ement evolve#

M!n!"ement +e"!n #'$%n" the!#v!n*ement in large m!n'!*t'$%n"

%n#'&t$%e& (In#'&t$%!l $evol't%on $e&'lt%n" %n%n*$e!&e# in the number of em)loyees:

Ine5*%en*%e& #'$%n" In#'&t$%!l Revol't%on

Wor5ers became #%&&!t%&e# with their wor5ingconditions%

any wor5ers l!*7e# the $e'%$e# t$!%n%n" on how to do their wor5 e?ciently%

/hese p$o+lem&, made m!n!"e$& to attem)t to'nd )ossible way for wor5ers to )erform their wor5

e?ciently%


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Cl!&&%*!l Theo$%e& oM!n!"ement

Cont$%+'t%on&to M!n!"ement

•Cl!&&%*!l S*hool o tho'"ht $ep$e&entone o the e!$l%e&t theo$%e& !+o'tm!n!"ement o people !t 3o$74

• Cl!&&%*!l theo$%e& emph!&%2e# the%$m!%n !ttent%on on o$"!n%2!t%on&t$'*t'$e4

• The) +el%eve th!t % the &t$'*t'$e o theo$"!n%2!t%on %& 3ell,#e&%"ne# theno$"!n%2!t%on!l ee*t%vene&& &h!ll +e!**ompl%&he#4


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Cl!&&%*!l Theo$%e& oM!n!"ement Cont:#

Cl!&&%*!lM!n!"ementS*hool&Cont$%+'to$


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S*%ent%* M!n!"ement S*hoolCont$%+'t%on to3!$#& M!n!"ement

St'#%e&

Fo'n#e$ oS*%ent%*M!n!"ementS*hool

F$e#e$%*7 84 T!)lo$ (. ,


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S*%ent%* M!n!"ement Tool&to en&'$e

e5*%en*)6P$o#'*t%v%t)• 8o$7 St'#)0 involves all techniues usedto assessing wor5 methods and eui)mentused in )erforming a >ob in order to ensurema7imum out)uts%

• 8o$7 me!&'$ement is concerned withthe len"th o t%me it ta5es an em)loyee tocom)lete a wor5 tas5%


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S*%ent%* M!n!"ement S*hool Step&to #e&%"n o+ St$'*t'$e

De&%"n o o+St$'*t'$e


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S*%ent%* M!n!"ementS*hool Step& to #e&%"n o+

St$'*t'$eDe&%"n o o+ St$'*t'$e T$!%n%n"0 S*%ent%*!ll)Sele*t 3o$7e$& and develo)them through a))ro)riatetraining E%g% develo)ment ofs5ills and ability on their >obrole$

3% Clo&e *o,ope$!t%on+et3een m!n!"e$& andemplo)ee& to ensure betterresults and no interru)tions%

J4 Re3!$#0 P$ov%#e%n*ent%ve& to 3o$7e$&4


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ractical E7am)le of a+lassical anager

-f for e7am)le eter is a Cl!&&%*!l M!n!"e$wor5ing in a /e7tile anufacturing -ndustry

eter must have a "oo# 'n#e$&t!n#%n" of

the +'&%ne&& 'n*t%on& to enable her&t$'*t'$e the organi.ation based on tas5assigned to individuals%


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2cienti'c anagement2chool * Wor5 2tudyP$o*e&&

Brea5 down )rocess into ho3 p$o#'*t& are

)roduced into 3 main )arts%


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2cienti'c anagement2chool * Wor5 2tudy

=% List the s5ills that needs to hel) the wor5 to bedone:

A )erson with 7no3le#"e !n# &7%ll& in

)roduction roduction anager$%A )erson with 7no3le#"e !n# &7%ll& in

2ales 2ales anager$%A )erson with 7no3le#"e !n# &7%ll& in

manufacturing raw material aterialanagement 2u)ervisor$

34 T$!%n%n": Eui) wor5ers with the 5nowledge

and s5ills reuired for the >ob%


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2cienti'c anagement2chool @ Wor5 easurementReward wor5ers e(orts based on the

average length time of to accom)lish tas5%

E%g% hourly based%


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B!&%* S*%ent%* m!n!"ementP$%n*%ple


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Relev!n*e o &*%ent%* M!n!"ement toMo#e$n M!n!"ement

-t has hel) to avoid '&%n" *ommon &en&e orB;rule of thumb;; but to focus on &*%ent%*metho# to &t'#) 3o$7 and the most e?cientway to )erform%

-t has hel)ed to m!t*h 3o$7e$& to their >obsbased on their !+%l%t%e&, motivation and totrain them to )erform e?ciently% E%g%

recruitment and selection

&se of pe$o$m!n*e $el!te#,p!) n!n*%!l%n*ent%ve& +on'&e& !n# tot!l '!l%t)

m!n!"ement4


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Relev!n*e o &*%ent%* M!n!"ementto Mo#e$n M!n!"ement

-t has hel)ed to $ev%e3 !n# mon%to$wor5ers )erformance by )roviding themwith "oo# &'pe$v%&%on !n#%n&t$'*t%on&4

-t enables managers to *on*ent$!te on)lanning and organi.ing which hel)s

em)loyees to )erform creditably%


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E7ercise

2)end few minutes to divide yourselvesinto grou)s and re


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#%&!#v!nt!"e& o S*%ent%*

M!n!"ement

A#v!nt!"e& D%&!#v!nt!"e&Appl%*!t%on !n# '&e

o &*%ent%*

metho#&4 E%g% Wor5study, and wor5measurement in largecom)aniesublicsectors$ %E4"4

manufacturingindustries%

B$o!# &*ope fors)eciali.ation and

accurate )lanning%

H%"h %nve&tment inca)ital for

establishment of)lanning de)artment,3o$7,&t'#),standardi.ed tools andtraining of wor5ers%

Appl%*!+le in onlylarge com)aniesrather than smallbusinesses%

v!n !"e& !n &! v!n !"e&


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v!n !"e& !n &! v!n !"e&o S*%ent%* M!n!"ement

S*hool

A#v!nt!"e& D%&!#v!nt!"e&Benet& to 3o$7e$&

higher wages and

less burden of wor5$,management%

M%n%m'm 3!&t!"e& of materials, timeand money%

Co$#%!l relationsbetween wor5ers andmanagement%

Repet%t%ve t!&7&, E%g%em)loyee boredom, no >ob rotation%

4ocus on uantity, notuality

Mo$e po3e$ is given tomanagement rather than

wor5ers%Doe& not en*o'$!"e

*$e!t%v%t) !n#%n%t%!t%ve& of wor5ers

on $ ' on& o m n & $! ve


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on $ ' on& o m n & $! veM!n!"ement ; (Hen$% F!)ol


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on $ ' on& o m n & $! veM!n!"ement ; (Hen$% F!)ol


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A#m%n%&t$!t%veM!n!"ement theo$) ;(Hen$% F!)ol


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B'$e!'*$!*) ; M!@ 8e+e$

9e'ne 0ureaucracy

Bureaucracy refers to a formaladministrative system governing a large

institution.

+h t i ti f


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+haracteristics of0ureaucracy @ a@ Weber

8$%tten R'le& !n# Re"'l!t%on& to eliminatemanagerial inconsistencies%

A'tho$%t)0 /he )ower to hol# people

res)onsible for their actions%

P$omot%on& o$ Po&%t%on&0 ositions given toem)loyees should be based on pe$o$m!n*e

and not B:&o*%!l *ont!*t&:: (8hom )o'7no34


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Ch!$!*te$%&t%*& oB'$e!'*$!*) ; M!@ 8e+e$

Cle!$l) #ene po&%t%on $e&pon&%+%l%t%e&0should be clearly de'ned to hel) em)loyees tounderstand what is e7)ected of them%

L%ne& o A'tho$%t)0 should be clearlyrecogni.ed, this is to hel) them 5now who they$epo$t& to4


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B'$e!'*$!*) , M!@ 8e+e$

O+e*t%ve St$!te") C$%t%*%&m

0ureaucracy @ An ideal ty)eof Organi.ation% 4ocus onformal Organi.ational2tructure$


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Be$e!'*$!*) ; M!@ 8e+e$

O+e*t%ve St$!te") C$%t%*%&m

6oworgani.ationo)eratesOrgani.ational

2tructure$

G% Un%t) o Comm!n#0em)loyees should receiveorders from one )erson%

H% Impe$&on!l T$e!tment0)romotion and selection isbased on B;com)etence%;;

K4 Pe$m!nent C!$ee$Comm%tment: Em)loymentis viewed as a l%elon"

o+l%"!t%on on the )art of theorgani.ation

I% D%v%&%on o L!+o'$Em)loyees doing what theycan do best$%

!% One best wayof doing things%

=% Elimination of

study of humanbehaviours


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2igni'cance of 0ureaucracyin odern anagement+om)anies all over the world have ado)ted

bureaucratic management )rinci)les%

E%g% P'+l%* &e*to$ o$"!n%2!t%on&,*commonly 5nown as bureaucracies**rely onformal )rocesses and hierarchies to achievestable structures and consistent results%


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Relev!n*e o B'$e!'*$!*) M!n!"ementTheo$) on Mo#e$n O$"!n%2!t%on!lDevelopment4

/he +lassical anagement /heory has hel)ed to im)roveorgani.ational e(ectiveness in recent timesB'$e!'*$!t%*M!n!"ement Theo$)

Imp!*t on Mo#e$nO$"!n%2!t%onDevelopment

Cle!$ O$"!n%2!t%onh%e$!$*h) (Level& om!n!"ement

ost organi.ation haveado)ted the 6ierarchicalorgani.ational structure

levels$with clearly de'nedroles the th$ee #%&t%n*th%e$!$*h) n!mel) topM%##le !n# lo3e$anagement Levels%

D%v%&%on o L!+o'$ Emplo)ee& $ole& are clearlyde'ned with the use o o+#e&*$%pt%on&4 P$oe*t& !$e+$o7en #o3n %nto &m!lle$t!&7& th!t !$e ve$) &%mple!n# e!&) to !**ompl%&h4

Relev!n*e o B'$e!'*$!*)


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Relev!n*e o B'$e!'*$!*)M!n!"ement Theo$) on Mo#e$n

O$"!n%2!t%on!l Development Cont:#

B'$e!'*$!t%*M!n!"ement Theo$)

Imp!*t on Mo#e$nO$"!n%2!t%onDevelopment

A'to*$!t%* le!#e$&h%p Organi.ationsF have&%n"le le!#e$ who*ont$ol &'+o$#%n!te&to ensure thatorgani.ational goals areachieved%

C$%t%*%&m6Sho$t!ll o


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C$%t%*%&m6Sho$t!ll oB'$e!'*$!*) ;M!@ 8e+e$

Reuiring all managers to &t$%*t &et of$'le& !n# $e"'l!t%on& guidelines$does not encourage creativity in theorgani.ation

-t ma5es em)loyees to 'nd it di?cult toada)t to change%


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C$%t%*%&m&6Sho$t!ll& o Cl!&&%*!lM!n!"ement S*hool o Tho'"ht

!% /reated humans as m!*h%ne&%E%g% /aylor;s 2cienti'c management /heory$%

=% 4ocus on B;one best wayF of im)rovingon )erformance% E%g% Each /heorist)rovided one way of achievingorgani.ational e?ciency%

E4"4 /aylor focused on &)&tem!t%*!n!l)&%& o 3o$7 p$o*e&&e& !n#$el!te# te*hn%'e& to achieve)roductivity and e?ciency


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Beh!v%o'$!l M!n!"ement Theo$) (H'm!nRel!t%on& Movement ; Elton 84 M!)o

/his 2chool of /hought was founded +) Elton 84 M!)o

&nli5e the S*%ent%* M!n!"ement S*hool otho'"ht which focuses on B;organisational structure%;;

A%m0 6uman Relations ovement concentrates on$el!t%on&h%p& +et3een emplo)ee& !n# emplo)e$&

2ocial and non*economic conditions$%

P'$po&e o H!3tho$ne St'#%e&B’Investigated how psychological and social factors

aect productivity and work adjustment.’’


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Role lay e7ercise

9o a role )lay on the 6awthorne 2tudies%

+h!$!*te$&

!%Elton ayo Researcher$ and other

researchers%

=% /wo )eo)le to wor5 under lightningconditions

3% /wo )eo)le to wor5 under low lightningconditions

+lass comments on the role )lay% -ndividualsbehaviour$

E l t% + h % l t th


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Evol't%on o +eh!v%o'$!l m!n!"ement theo$)(H'm!n Rel!t%on& Movement ;H!3tho$ne

St'#%e&

E@pe$%ment


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Evol't%on o +eh!v%o'$!l m!n!"ement theo$)(H'm!n Rel!t%on& Movement ;H!3tho$ne

St'#%e&

E@pe$%ment - , B!n7%n" 8%$%n" Room

O+e*t%ve: /o determine the im)act of social factors and su)ervisorymanagement on em)loyees )roductivity%

De&*$%pt%on o E@pe$%ment

9iverse male wor5 grou)s were observed during regular wor5ing

conditions and interviewed afterwards after wor5% /hese included thefollowing )rivileges:

Leave their wor5station without )ermission%

En>oy Lunch

/a5e rest )eriods%

Re&'lt&:

-ncreased roductivity was based on the fact that they were being studiedenabled them feel more motivated to )erform e(ectively%

B’To whom much is given, much is expected’’

C l % H th


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Con*l'&%on& o H!3tho$neSt'#%e&

Inte$v%e3 o 8omen0 /hey said they were motivated to wor5because of attention from su)ervisor (So*%!l !*to$&$ and not

the monet!$) !*to$& resulting in the following:

2elf esteem im)roved

/hey felt im)ortant 2u)ervisor valued their out)ut

6a))y being )art of a team

Con*l'&%on0 eo)le should be treated as h'm!n +e%n"& not !&

m!*h%ne&4

%

R l t% M t


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Rel!t%on& M!n!"ement

Theo$)

anagers roles include *!$%n" and being*on*e$n about em)loyees; wor5 needs andwell*being

-t is im)ortant to ensure teamwor5%


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Contempo$!$)6Mo#e$n M!n!"ement,(Cont%n"en*) App$o!*h

/his a))roach recogni.e that there is B;no one best to

-m)rove , rather an a))ro)riate style de)ends on the

demands of the situation%

(ohn& . G and Saks, A. M)

.


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Contempo$!$) M!n!"ement ,(Cont%n"en*) App$o!*h

Cont$%+'to$&0

John Woodward 4ielder

Lorsch and Law


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Ch!$!*te$%&t%*& o Cont%n"en*)M!n!"ement App$o!*h

;o one best way to resolving issues inthe organi.ation because:

Every organi.ation has its ownchallenges and )roblem and shouldresolve each )roblem according to thesituation%

Eg% organi.ation is in


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O$"!n%&!t%on&ee*t%vene&&

Inte$n!l !*to$& E@te$n!l !*to$&S*!$*e $e&o'$*e& E%g%

)hysical and humanresources$

-ncom)etent humanresources%

O$"!n%2!t%on!l&t$'*t'$e

O$"!n%2!t%on!l *'lt'$e@Eg% Leadershi) styles

St$en"th o emplo)ee&@E%g% s5ills and abilities

Ch!n"e& %n te*hnolo")@ creativity andinnovation%

Gove$nment Le"%&l!t%onon /a7es, tarri( onim)orted goods$

E*onom%* *on#%t%on& @%n!t%on $!te high

in


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Relev!n*e o mo#e$n M!n!"ementS*hool , (Cont%n"en*) App$o!*h

anagers with the contingency view usea


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c8regor and M /heory

Theo$) Theo$) Y

M!n!"e$& !&&'me&

th!t0

Wor5ers are la.y /hey disli5e wor5

/hey need to beforced to wor5 hard%

/hey need closesu)ervision to hel)them to be more)roductive

M!n!"e$& h!ve the

not%on th!t0

Wor5ers can thin5 forthemselves

/hey wantres)onsibility and

variety of wor5 /hey are creative%


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Relev!n*e o Theo$) Y (B) M*G$e"o$:& Theo$)

A&&'mpt%on&Wor5ers are hardwor5ing and )erform best in a

right wor5ing conditions%

/hey are seen as the most im)ortant assets ofthe organi.ation not 'nancial resources,achinery, and Eui)ment%

anagers should be abreast with bothtraditional and contem)orary theories ofmanagement as well as devise others measuresto ensure organi.ational e(ectiveness%


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It %& %mpo$t!nt o$ !ll m!n!"e$&!n# !&p%$%n" m!n!"e$& to &t'#)

P!&t Theo$%&t& *ont$%+'t%on&to3!$# M!n!"ement !n#

O$"!n%2!t%on!l Beh!v%o'$ toen!+le them #ev%&e &'%t!+le

3!)& to en&'$e o$"!n%2!t%on!lee*t%vene&&4

+onclusion


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Reading Assignment

+ritically e7amine the following 2choolof /hought contributions towardsanagement%

2ystems anagement /heoryNuantitative anagement /heory


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Con*l'&%on

8h!t #o &'**e&&'l M!n!"e$& #o?

Successful Managers not only focus on theories of

organiational Behavior !ut extends these approaches in

order to meet the demands of the dynamic environmentand

glo!aliation

Gbus205 Mgt & Organisational Behavoir Lect 2 Fin

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Transcript of Gbus205 Mgt & Organisational Behavoir Lect 2 Fin