Management and

Organizational
Behavior
BY
Asst. Proff. Pragnya Sambit Acharya
I Trimester
What is business?
 An organization or economic system where goods
and services are exchanged for one another or for
money.

 Every business requires some form of investment and

enough customers to whom its output can be sold on
a consistent basis in order to make a profit.

 Businesses can be privately owned, not-for-profit or

state-owned
What is Management?

 Management is the art of getting things done through

and with people in formally organized groups
What did you
 To manage is to forecast and to plan, to organize, to mismanage?
command, to co-ordinate and to control

 Management is a multi-purpose organ that manages

business and manages managers and manages
workers and work.
What is an Organisation?
 A social unit of people that is structured and managed to meet a
need or to pursue collective goals.

 All organizations have a management structure that determines

relationships between the different activities and the members, and
subdivides and assigns roles, responsibilities, and authority to carry
out different tasks.

 Organizations are open systems--they affect and are affected by

their environment.
Organizational resources
Management Functions

Plan Organize

Managers

Lead Control
1-7
Role of management
Mintzberg’s Managerial Roles
Management skills
Relationship between management
functions, roles and skills
Planning
• Entrepreneur
• Negotiator
• spokesperson

Controlling
• Monitor Organizing
• Disturbance • Decision making • Resource
handler skills allocator
• Spokes person
• Interpersonal skills

• Technical skills

Leading
• Leader liaison
• disseminator
 Diversity management

 The people in organizations are

becoming more heterogeneous
demographically

 Embracing diversity

 Changing demographics

 Changing management philosophy

 Recognizing and responding to

differences
Implementing Diversity Management Strategies

 Making everybody more aware and sensitive to the needs

of others.

Attracting, Selecting, Developing,

and Retaining the Diverse
Employees

Working with Diversity in Groups

Effective Diversity Programs

2-13
Evolution of management
 Classical school of management
 The scientific management movement
Frederick W. Taylor: Father of Scientific
Management
He placed stress in his philosophy on the following
things for enhancing the productivity of the workers:

i. Science, not rule of thumb.

ii. Harmony, not discord.

iii. Co-operation, not individualism.

iv. Maximum output, in place of restricted output.

v. The development of each man to his greatest

efficiency and prosperity.
Henri Fayol and administrative
management:
The Gilberths
Henry Gantt
Max Weber and the bureaucratic
organization
Transition Phase

Hawthrone experiments:
Conclusion of Hawthrone studies
 The social and psychological factors are responsible for workers' productivity and job satisfaction. Only good
physical working conditions are not enough to increase productivity.

 The informal relations among workers influence the workers' behaviour and performance more than the
formal relations in the organisation.

 Employees will perform better if they are allowed to participate in decision-making affecting their interests.

 Employees will also work more efficiently, when they believe that the management is interested in their
welfare.

 When employees are treated with respect and dignity, their performance will improve.

 Financial incentives alone cannot increase the performance. Social and Psychological needs must also be
satisfied in order to increase productivity.

 Good communication between the superiors and subordinates can improve the relations and the productivity
of the subordinates.

 Special attention and freedom to express their views will improve the performance of the workers.
Criticism of Hawthrone studies
 Lacks Validity : The Hawthorne experiments were conducted under controlled situations.
These findings will not work in real setting. The workers under observation knew about the
experiments. Therefore, they may have improved their performance only for the
experiments.

 More Importance to Human Aspects : The Hawthorne experiments gives too much
importance to human aspects. Human aspects alone cannot improve production.
Production also depends on technological and other factors.

 More Emphasis on Group Decision-making : The Hawthorne experiments placed too much
emphasis on group decision-making. In real situation, individual decision-making cannot
be totally neglected especially when quick decisions are required and there is no time to
consult others.

 Over Importance to Freedom of Workers : The Hawthorne experiments gives a lot of

importance to freedom of the workers. It does not give importance to the constructive
role of the supervisors. In reality too much of freedom to the workers can lower down their
performance or productivity.
Behavioral school of management
 Classical theory ignored employee motivation and behavior. As a
result, the behavioral school was a natural outgrowth of this
revolutionary management experiment.

 The behavioral management theory is often called the human

relations movement because it addresses the human dimension of
work.

 Behavioral theorists believed that a better understanding of human

behavior at work, such as motivation, conflict, expectations, and
group dynamics, improved productivity.
Human relations model
Behavioral science influence

Fredrick Herzberg Raymond Miles

Abraham Maslow’s need hierarchy
 physiological needs: appropriate salaries to purchase the
basic necessities of life. Breaks and eating opportunities
should be given to employees.

 safety needs: job security, safe and hygienic work

environment, and retirement benefits so as to retain them.

 social needs: management should encourage teamwork

and organize social events.

 esteem needs: managers can appreciate and reward

employees on accomplishing and exceeding their targets.
The management can give the deserved employee higher
job rank / position in the organization.

 self-actualization: challenging jobs in which the employees’

skills and competencies are fully utilized. Moreover, growth
opportunities can be given to them so that they can reach
the peak.
Herzberg 2 factor Theory of
Motivation
Douglas McGregor: Theory X and
Theory Y
Dr. Rensis Likert: Management Styles
 Rensis Likert recognized four management styles, or systems.
1. Exploitative-authoritative: characterized by decision-making in
the upper echelons of the organization, with no teamwork and
little communication other than threats.

2. Benevolent-authoritative: based on a master-servant

relationship between management and employees, where
rewards are the sole motivators and both teamwork and
communication are minimal.

3. Consultative: managers partly trust subordinates, use both

rewards and involvement to inspire motivation, foster a higher
@# level of responsibility for meeting goals, and inspire a moderate
$%^ amount of teamwork and some communication.
&

4. Participative-group: based on managerial trust and

confidence in employees; collectively determined, goal-based
rewards; a collective sense of responsibility for meeting
company objectives; collaborative teamwork and open
communication.
Raymond Miles Human Resource
Model
Organizational
performance

Employee
Satisfaction
involvement

Commitment and
willingness to
become more
involved
 Contingency perspective
• According to the contingency perspective,
the techniques appropriate for a manager
depends on the situation

• In cases of high levels of environmental

uncertainties and little or no developed
knowledge to guide work methods, this
perspective is needed

• It suggests that as situations vary, the

consequences of a particular approach
also varies

• Thus a manager needs to identify,

understand and explain these critical
contingencies
Systems perspective
 Features :
1. The organization is a part of ad dependent on a larger system from which it imports critical resources
and exports a valued product or service.

2. The organization is an input-process-output system

3. The organization is a unified whole and yet it consists of inter-related sub-systems

4. To understand the organization, the interconnection of the sub-systems has to be understood

5. The activity of one part of the organization affects, to varying degrees, the entire organization

6. Some systems are more open or closed than the others

7. Left unattended, organization system have a natural tendency to degrade

McKinsey 7-S Framework
 Theory Z Perspective
Theory A (American) Theory J (Japanense)

• Short-term employment • Lifetime employment

• Individual decision making • Collective decision making
• Individual responsibility • Collective responsibility
• Rapid evaluation and • Slow evaluation and
promotion promotion
Theory Z (modified American)
• Explicit control mechanisms • Implicit control mechanisms
• Specialized career path • Non-specialized career paths
• Long term employment
• Segmented concern for • Holistic concern for
• Collective decision making
employees employees as a person
• Individual responsibility
• Slow evaluation and
promotion
• Implicit informal controls with
explicit formalized measures
• Moderately specialized career
paths
• Holistic concern including
family
 Contributions and limitations of
contemporary schools
 Contributions
1. Unifying the technical side of organizations with the behavioral
aspect
2. Multidimensionality and interdependence of organizational sub-
systems
3. Sensitization of managers towards the fact that no one set of
management principles is appropriate in one situation
4. It taught that managers should apply concepts of both classical
and behavioral models, while simultaneously working to enhance
quality and worker integration
 Limitations:
1. Each perspective is more complex than either classical or
behavioral theory
2. This complexity makes their use more difficult and adoption less
likely
3. No contemporary management perspective has been thoroughly
researched