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
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