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Unit II - MPOB
Introductionand
Foundations
of Organizational Behaviour
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Insert Figure 1.1 here
What is Organizational Behavior?
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Levels of Analysis
Group Level
IndividualLevel
Organizational Level
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Early Theorists
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Adam Smith s Contribution To The
Field Of Management
Wrote the Wealth of Nations (1776) Advocated the economic advantages that
organizations and society would reap from thedivision of labor:
Increased productivity by increasing each worker sskill and dexterity.Time saved that is commonly lost in changing tasks.The creation of labor-saving inventions andmachinery.
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The Industrial Revolution s Influence
On Management Practices
` Industrial revolutionMachine power began to substitute for human powerx Lead to mass production of economical goods
Improved and less costly transportation systemsbecame availablex
Created larger markets for goods.Larger organizations developed to serve larger marketsx Created the need for formalized management practices.
.
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Charles Babbage (1832) in his work On TheEconomy Of Machinery And Manufacturersadded the following to Smith s list:
1. Reduces time2. Reduces wastage
3. Attainment of increased skill levels4. Careful match of people s skill and
physical abilities with specific tasks.
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Classical Contributions
Classical approach The term used to describe the hypotheses of
the scientific management theorists and thegeneral administrative theorists.
Scientific management theorists Fredrick W. Taylor, Frank and Lillian Gilbreth, and
Henry Gantt
General administrative theorists Henri Fayol and Max Weber
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Scientific Management
Frederick W. Taylor The Principles of Scientific Management (1911)
Advocated the use of the scientific method to define the one best
way for a job to be done Believed that increased efficiency could be achieved by
selecting the right people for the job and training them todo it precisely in the one best way.
To motivate workers, he favored incentive wage plans. Separated managerial work from operative work.
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Taylor s Four Principles of Management
1. Develop a science for each element of an individual s work,which replaces the old rule-of-thumb method.
2. Scientifically select and then train, teach, and develop theworker. (Previously, workers chose their own work and trainedthemselves as best they could. )
3. Heartily cooperate with the workers so as to ensure that allwork is done in accordance with the principles of the sciencethat has been developed.
4. Divide work and responsibility almost equally betweenmanagement and workers. Management takes over all workfor which it is better fitted than the workers. (Previously,almost all the work and the greater part of the responsibilitywere thrown upon the workers. )
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Scientific Management Contributors
Frank and Lillian Gilbreth Bricklaying efficiency improvements
Time and motion studies (therbligs )Henry Gantt
Incentive compensation systems Gantt chart for scheduling work operations
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General Administrative TheoryGeneral administrative theorists
Writers who developed general theories of whatmanagers do and what constitutes good managementpractice
Henri Fayol (France )F ourteen Principles of Management : Fundamental or universalprinciples of management practice
Max Weber (Germany )
Bureaucracy: Ideal type of organization characterized by divisionof labor, a clearly defined hierarchy, detailed rules andregulations, and impersonal relationships
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Fayol s 14 Principles of Management
Division of work
Authority
DisciplineUnity of command
Unity of direction
Subordination of theindividual
Remuneration
Centralization
Scalar chain
OrderEquity
Stability of tenure of
personnelInitiative
Esprit de corps
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Weber s Ideal Bureaucracy
D ivision of Labor A uthority HierarchyFormal SelectionFormal Rules and RegulationsImpersonality
Career Orientation
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Human Relations Movement
Mary Parker Follett Recognized that organizations could be viewed from the
perspective of individual and group behavior.
Believed that individual potential could only be released bygroup association.
Chester Barnard Saw organizations as social systems that require human
interaction and cooperation. Expressed his views on the acceptance of authority in his
book T he F unctions of the Executive (1938) .
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Hawthorne Studies
A series of studies done during the 1920 s and1930 s that provided new insights into groupnorms and behaviors
Hawthorne effectSocial norms or standards of the group are the keydeterminants of individual work behavior.
Changed the prevalent view of the time thatpeople were no different than machines.
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ELTON MAYOTHE HAWTHORNE
STUDIES
Studies carried out at the Hawthorne Plant of theWestern Electric Company in Chicago between1927 and 1932 .
In the process .
He found a principle of human motivation thatwould help to revolutionise the theory andpractice of management
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The changes
Changed the hours in the working week and inthe working day
Increased and decreased the number of workbreaks and the time of the lunch hour
Occasionally he would return the women totheir original, harder working conditions
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Human Relations Movement
Based on a belief in the importance of employeesatisfaction a satisfied worker was believed to be aproductive worker.
Advocates believed in people s capabilities and wereconcerned with making management practices morehumane.
Dale Carnegie - is the developer of famous courses in self-improvement,
salesmanship, corporate training, public speaking and interpersonal skills. H ow to Win F riends and Influence People , 1936 , a massive bestseller that remainspopular today.
Abraham Maslow Douglas McGregor
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Behavioral Viewpoint: Behaviorism, HumanRelations, & Behavioral Science
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Theory X and Theory Y
Douglas McGregor proposed the two different sets of assumptions about workers.
Theory X assumes the average worker is lazy,
dislikes work and will do as little as possible.Managers must closely supervise and control throughreward and punishment.
Theory Y assumes workers are not lazy, want to do
a good job and the job itself will determine if theworker likes the work.Managers should allow workers greater latitude, andcreate an organization to stimulate the workers.
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Behavioral Science Theorists
B F Skinner (Classical and Operant Theory )David McClelland (Matched jobs with people )Fred Fiedler (Field of Leadership andcontributed to the growth of OB as adiscipline )Fredrick Herzberg (The two-factor theory
(also known as Herzberg's motivation-hygienetheory )
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Herzberg's Motivation-Hygiene Theory
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Contributing Disciplines to the OB Field
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Contributing Disciplines to the OB Field (cont d )
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Contributing Disciplines to the OB Field (cont d )
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Contributing Disciplines to the OBField (cont d )
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Contributing Disciplines to the OB Field (cont d )
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T hank you!!!
