Chapter - 1 Intro to OB

7/31/2019 Chapter - 1 Intro to OB

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Introduction to Organization

behavior

Preeti Yadav


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Organization Behavior

OB is concerned with the study of

behavior of people within an

organizational setting. It involves the

understanding, prediction and control of

human behavior and the factors, which

influence the performance of people as

members of an organization. Fred Luthans


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EVOLUTION OF MANAGEMENT

THOUGHT

Classical Approach

Behavioral Approach


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Classical Approach

ScientificManagement.

AdministrativePrinciples.

BureaucraticOrganization.


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Scientific Management.

Became increasingly popular in the early

1900s.

Given by Frederick Winslow Taylor(father of

Scientific Management), who took up Henry

Townes challenge and developed principles

of Scientific Management in 1911.

He observed Soldiering problem i.e.

workers deliberately worked at the slower

pace than their capabilities.


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Two Managerial Practices

Developed By Taylor

Piece Rate Incentive System

Time and Motion study


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Administrative Management Theory

Henri FayolHenri Fayol

Business operations of an organization can be divided into:Business operations of an organization can be divided into:

1.1. Technical ActivitiesTechnical Activities

2.2. Commercial ActivitiesCommercial Activities3.3. Financial ActivitiesFinancial Activities

4. Security Activities

5. Accounting Activities

6. Managerial Activities


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Fayols Guidelines to Effective

Management Practices

Division of labor

Authority

Discipline Unity of command

Unity of direction

Subordination of

individuals to the

common good

Renumeration

Centralization

Scalar chain Order

Equity

Stability

Initiative

Esprit de corps


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Webers Theory of Bureaucracy

Work specialization and division of labor.

Abstract rules and regulations.

Impersonality of managers.

Hierarchy of the organization structure.


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Behavioral Approach

Hawthorne experiments.

Abraham Maslow need hierarchytheory.

Douglas Mc Gregor(Theory X and

Theory Y)


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Hawthorne Studies

1. ILLUMINATION EXPERIMENTS

2 group of employees:

Control Group no change in illumination.

Experimental Group-illumination change.

Productivity of workers was influenced bysome other variable rather thanillumination.


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Began in 1927.

Conducted by Elton Mayo &

Roethlisberger and some co.

representatives.

6 girls were selected for the experiment.

Assemble telephone relay. Rate of production- No. of relays.

RELAY ASSEMBLY ROOM

EXPERIMENTS


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FEEDBACK MECHANISM

During the experiments(5 yrs.), changeswere made and tested for a (4-12 weeks).

Girls produced 2400 relays ,48 hours

week,6 days without any break. For 8 weeks, payment-piece-work basis,

productivity increased.


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2- 5 min. breaks ,inc. prodn.

Duration of breaks -10 min., inc. prodn.

No.of breaks 6,slight dec.in prodn.

Again 2 breaks were given, 1st break hot

meal,free was given, inc. prodn. Allowed to go home early by 30 mins.

4.30p.m.,inc. in prodn.


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Allowed to go home early by 4

p.m.,no inc. in prodn. Original conditions of 6 day,48

hours was used, all facilities were

removed, worked in theseconditions for 12 weeks and got

output of 3000 relays.


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Productivity increased as girls formed

close knit group.

High job satisfaction as they were not

pressurized to work.

This experiment disagreed prevalenttheory of Taylor, which stated that

employees were motivated by

economic rewards only.


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Interview Phase

All employees of Hawthorne plant were

interviewed.(1928 -1930)


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Bank Wiring Observation Room

Experiments(1931-32)

Aimed to understand the power of informalgroup and peer pressure on workerproductivity.

Group of 14 men were engaged in bank-wiring .

No change in the physical conditions.

Paid on basis of incentive pay plan.


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Researchers observed output stayed at

constant level as against economic manmodel

Group acceptance was more important for

employees than money.


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Maslows Hierarchy of Needs

People have a hierarchy of motivational

needs.

Once the needs of one level is satisfied,

its no more a motivator and instead the

need at next level becomes significant to

individuals.


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Theory X

People do not like workand try to avoid it.

People do not like work,

so managers have to

control, direct, coerce,and threaten employees

to get them to meet

organizational goals.

People prefer to be

directed, to avoid

responsibility, and to

want security; they have

little ambition.

Work is a natural part ofpeoples lives.

People are internallymotivated by commitment.

People are committed togoals to the degree theyreceive rewards.

People will seek andaccept responsibility.

People have the capacityto be innovative.

Theory Y


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Behavior as Input-Output System

B J Kolasa, a behavioral scientist, viewed

human behavior as a systems model with an

input-output arrangement.

Input

Processing

Output


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Trends & Prospects in OB

Reduction in number of middle level

management.

Increasing use of computers and IT .

Change in composition of workforce.

Spread of globalization.

Change in employee employerrelationship

Innovative work approches.


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Chapter - 1 Intro to OB

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