Historical Development of Ob

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HISTORICAL

DEVELOPMENT OF OB


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The Industrial Revolutions Influence

On Management Practices

Industrial revolution

Machine power began to substitute for humanpower

Lead to mass production of economical goods

Improved and less costly transportation systemsbecame available

Created larger markets for goods.

Larger organizations developed to serve largermarkets

Created the need for formalized management practices.


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The advent of modern industry

resulted in:

Long hours of work

Exploitation of woman and children

No compensation for injury

Machineries were not fenced


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Evolution of ManagementThought

Organizational Behavior

Human Relations

Hawthorne Studies

Era of Scientific Management

Era of Welfarism


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ERA OF WELFARISM


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ERA OF WELFARISM- ROBERT OWEN

Father of Welfare and Co-operativeMovement

A Paternalistic attitude towards

employeesHe introduced a form of MentalRevolution in the people

The workers are not treated ascommodities instead they weretreated as people with flesh and blood


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He improved the working conditionsand developed a spirit of co-operationamong the workers and management

giving importance to their safety,welfare and security

He introduced housing facilities and

also provided education to workersand children


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ERA OF SCIENTIFIC MANAGEMENT


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CHARLES BABBAGE

A Mathematician in CambridgeUniversity

He found out a Mathematicalcalculator in that he concealed ananalytical machine and later thiscame to be the first modern digitalcomputer


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He is known in Management forpublishing a book in 1832 titled

On the Economy of Machines andManufactures

In the book he proposed usingscientific method in analyzingbusiness problems


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He pointed out the importance ofeconomic analysis in locatingfactories,

Use of skill differentials in wagepayment plans

Concept of division of labour wasintroduced


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Frederick.Winslow.Taylor

Father of Scientific Management

Advocated the use of the scientific method to definethe one best way for a job to be done

Believed that increased efficiency could be

achieved by selecting the right people for thejob and training them to do it precisely in theone best way.


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Four principles ofScientific Management

1. Develop a science for each element of anindividuals work, which replaces the old rule-of-thumb method.

2. Scientifically select and then train, teach, anddevelop the worker. (Previously, workers chose

their own work and trained themselves as bestthey could.)

3. Heartily cooperate with the workers so as toensure that all work is done in accordance with

the principles of the science that has beendeveloped.

4. Divide work and responsibility almost equallybetween management and workers. (Previously,almost all the work and the greater part of the

responsibility were thrown upon the workers.)


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Scientific Management

Key Features

Introduction of standardized procedures includingtask completion times

Emphasizes the productivity of the individualworker

The search for the most appropriate andstandardized method of performing a task

Introduction of financial incentives to motivate staff

Ensure full control of employees by supervisorsand managers

Separated managerial work from operative work.


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F.W.Taylor conducted

2 important studies

Work Study

Time Study and Motion Study


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According to F.W.Taylor

Each operation is a science

Harmony of group action rather thandiscord

Max. output using multi skilled workers

Ratebusters

Scientific selection for training and

placement of workersTaylor devised an incentive scheme ie.,Fair Days Work and Fair Days Pay


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Limitation

There is denial of human approach

Workers are considered as cogs ofthe wheel


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Henry.L.Gantt

He proposed the idea of Bonus for theworker for achieving the daily std

To monitor progress of operations Gantt

devised a simple charting system the GanttChart

He improved upon Taylors system ofdifferential wage payment and brought out

Task and bonus Wage systemIn this incentive plan all are given minimumincentive and special sympathy for underprivileged


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The Scientific Management approachconcerned itself with productionefficiency at the blue-collar level of anorganisation and at that time anotherbody of thought developed


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HENRI FAYOL

An engineer in French MiningCompany

He viewed management as ateachable theory dealing withPlanning, Organizing, Commanding,Co-ordinating and Controlling


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Industrial activities - 6 groups

Technical

Commercial

FinancialSecurity

Accounting

Managerial


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Fayols Fourteen Principles of

Management

Division of work (Specialization)AuthorityDisciplineUnity of CommandUnity of direction

Subordination of individual interest to the generalinterestRemuneration of personnelCentralizationScalar Chain

OrderEquityStability of tenure of personnelInitiativeEsprit de Corps


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Hawthorne Studies


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Hawthorne studies- Elton Mayo

(1924-1932)

The real beginning of applied research inthe area of OB started with Hawthorneexpts

In 1924, a group of Professors fromHarvard Business School began an enquiryinto the human aspects of work andworking conditions at the Hawthorne plantof Western electric Company, Chicagowhich was engaged in producing bells andother electrical equipments for telephoneindustry


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The study provided new insights intogroup norms and behaviors

Hawthorne Studies have thrown lightinto, how characteristics of the worksetting affected worker fatigue and

performance


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Series of experiments

Illumination study (Illumination &Productivity)

Relay assembly test room (Change in

working hours and workingconditions)

Mass interviewing prog (worker

attitude and sentiments)Bank wiring observation room (Socialaspect on work organisation)


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The Hawthorne Studies


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Illumination studies

Illumination studies constituted thefirst step of experiments

Designed to test the effect of lightingintensity on worker productivity

For the study the population weredivided into experimental group and

control group


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Lighting was decreased in the experimentalgroup and the conditions of lighting werekept constant for the control group tofindout whether lighting has any impact onproductivity

The researchers were surprised to discoverthat productivity increased roughly at thesame rate in both the groups

The performance in the experimental group

declined only when a light of moon lightintensity was given, where they complainedthat they could hardly see anything


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Relay Assembly Test Room Study

The study involved 5 women whoassembled electrical relays in therelay assembly test room

The researcher made certain changesin the work conditions

They changed the usual supervisor

arrangement from the scene

The workers were asked to follow thedirections of the researchers


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The workers were given privileges like

To leave their work situation withoutpermission

Free mid-morning lunch

A five day work week

Generally, productivity increased overthe period of study, regardless of howthe factors were manipulated


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Mass interviewing programme

Investigate connection betweensupervisory practices and

employee moraleEmployees expressed their ideas

and feelings (e.g., likes anddislikes)


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Bank wiring observation room

A group of 14 men who wired telephonebanks was observed in a standard shopcondition

An observer was stationed in the room withinstructions to take continuous notes on theworkers actions

The observer was not allowed to giveorders or get involved in conversations withthe workers


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The observer noted that the workershad established an informal dailynorm of 6600 units per person even

though some of the workers are ableto excel the target


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The incentive system was that themore the worker produced, the moremoney the worker could earn

The best producers will be laid offlast, and thus they could be moresecure by producing more

In the face of the managementrationale, almost all the workersrestricted output


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The norms the group establishedwere a number of don'ts

Dont be a rate buster,

Dont be a chiseler

To enforce these they used variousnorms


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Social ostracism, ridicule, and namecalling, were the things used by thegroup to enforce restriction

Binging was one game used wherebyratebusters were disturbed


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Thus the covert organisationprevalent in the formal organisationsurfaced

Social groups can influenceproduction and individual workbehavior


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The Hawthorne Studies

Demonstrated the importance ofunderstanding how the feelings, thoughts,and behavior of work-group members and

managers affect performance


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Hawthorne Effect

Hawthorne effect

Social norms or standards of the

group are the key determinants ofindividual work behavior.

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Historical Development of Ob

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