Organizational
Behaviour
Session – 1
Management
Thought and OB
Why study OB?
“Organizational Behavior" can be defined as the
study of what people think, feel, and do in and
around organizations. The study of Organizational
Behavior facilitates the process of explaining,
understanding, predicting, maintaining, and
changing employee behavior in an
organizational settings.
Why study OB?
It involves the understanding, prediction and control of
human behavior and factors affecting their performance
and interaction among the organizational members.
And because organizational behavior is concerned
specifically with employment - related situations, it
emphasizes behavior as related - to concerns such as
jobs, work, interpersonal relationships at work,
absenteeism, employment turnover, productivity, human
performance etc.
4
Major Management Approaches
Classical Scientific Management Frederick W. Taylor,
Approach Frank and Lillian Gilbreth
Henry Gantt
Bureaucratic Max Weber
Management
Administrative Henry Fayol
Management
Behavioral Group Influences Mary Parker Follet
Approach
Hawthorne Studies Elton Mayo
Maslow’s Need Theory Abraham Maslow
Session-1
Theory X &Theory Y Douglas McGregor
5
Major Management Approaches
Quantitative Management Science
Approach Operations Management
Management Information Systems
Modern The Systems Theory
Approaches Contingency Theory
Emerging Approaches: Theory Z and William
Quality Management Ouchi
Session-1
6
Early Approaches
to Management (Pre-classical)
Name Period Contribution
Robert Owen 1771-1858 Proposed legislative reforms to improve
working conditions of labor
Charles Babbage 1792-1871 Advocated the concept of ‘division of
labor’
Andrew Ure 1778-1857 Advocated the study of management
Charles Dupin 1784-1873
Henry R. Towne 1844-1924 Emphasized the need to consider
management as separated field of study
and the importance of business skills for
running a business. Session-1
7
Classical Approach
Forms the foundation for the filed of management
The schools for management thoughts are:
Scientific Management
Administrative Theory
Bureaucratic Management
Session-1
8
Scientific Management
Early 1900s
It is defined a “that kind of management which conducts a
business or affairs by standards established, by facts or
truths gained through systematic observation, experiment,
or reasoning.”
Major contributors:
Frederick Winslow Taylor
Frank and Lillian Gillbreth
Henry L.Gantt
Session-1
9
Frederick Winslow Taylor
“Father of Scientific Management”(1878)
Two major managerial practices:
Piece-rate incentive system
Time-and-motion study
Scientific Management as Taylor propounds emphasizes:
Need for developing a scientific way of performing each job.
Training and preparing workers to perform that particular job
Establishing harmonious relations b/w management and
workers
Session-1
10
Frederic Taylor's Five Principles of
Management
Develop a science for each element of an individual's
work
Scientifically select, train and develop the worker
Heartily cooperate with the workers
Divide work & responsibility equally between managers
& workers
Improve production efficiency through work studies,
tools, economic incentives
Session-1
11
Frank (Father of Motion Study) and
Lillian Gilbreth
1868-1924
Motion study involves finding out the best sequence and
minimum number of motions needed to complete a task.
Explore new ways for eliminating unnecessary motions
and reducing work fatigue.
Therbligs
Micro motion study
Session-1
12
HENRY L.GANTT(1861-1919)
Well known for
Task – and - bonus system
The Gantt chart
Task – and - bonus system
If the worker completed the work fast, i.e., in less than
the standard time, he received a bonus and so does the
foreman, extra bonus.
Gantt Chat
It is a Simple chart that compares actual and planned
performances.
Session-1
13
Limitations of
Scientific Management
Does not focus on the management of an organization
from a manager’s point of view. Focus mainly upon
problems at operational levels from engineering point of
view.
People were “rational” and were motivated primarily by
the desire for material gain.
It also ignored the human desire for job satisfaction.
Session-1
Classical Administration Theory of
Management
Henri Fayol (1841-1925) was a French industrialist
who put forward and popularized the concept of
the "universality of management principles."
He advocated that all organizations could be
structured and managed according to certain
rational principles.
”with scientific forecasting and proper methods of
management, satisfactory results were inevitable”
Fourteen Principles
Bureaucratic Management
Weber (1864-1920)
Characteristics of Weber’s ideal Bureaucracy (a highly
structured, formalized, and impersonal organization):
Work specification and division of labor
Abstract rules and regulations
Impersonality of managers
Hierarchy of organization structure
17
Limitations - Bureaucratic Management and
Administrative Theory
Not universally applicable to today’s complex organizations.
Fayol’s principles like that of specialization were frequently
in conflict with the principle of unity of command.
Principal characteristic of bureaucracy changes in the global
environment.
Classical theorists ignored the problems of leadership,
motivation, power or information relations and impact of
external and internal environment on employee behaviour
Session-1
18
Behavioral Approach
The behavioral approach to management emphasized
individual attitudes and behaviors and group processes,
and recognized the significance of behavioral process in
the workplace.
Session-1
19
Contributions of Behavioral Thinkers to
Management Thought
Name Period Contribution
Mary Parker 1868- Emphasized group influence and advocated the
Follet 1933 concept of ‘power sharing’ and integration
Elton Mayo 1868- Laid the foundation for the Human Relations
1933 Movement; recognized the influence of group and
workplace culture on job performance
Abraham 1908 – Advocated that humans are essentially motivated
Maslow 1970 by a hierarchy of needs
Douglas 1906- Differentiated employees and managers into
McGregor 1964 Theory X and Theory Y personalities
Chris - Classified organizations based on the employees’
Session-1
Argyris set of values
20
Mary Parker Follet (1868-1933)
Power, according to Follet, was the ability to influence and
bring about a change. She argued that power should not be
based on hierarchy; instead, it should be based on cooperation
and should involve both superiors and subordinates. In other
words, she advocated ‘power sharing’.
Follet also advocated the concept of integration, which involves
finding a solution acceptable to all group members.
Session-1
21
Elton Mayo (1880-1949)“Father of the Human
Relations Approach”
Contributions of Hawthorne Experiments
Study at Western Electric’s Hawthorne Plant between 1927 to
1933, started in 1924 to evaluate the attitudes and psychological
reactions of workers in on-the-job situations.
Sponsored by National Research Council in cooperation with
Western Electric Company.
Four phases:
Illumination experiments
Relay assembly test room experiments
Interview phase
Bank wiring observation room experiments Session-1
22
Contributions of Hawthorne Experiments
Pre-judgment Findings
Job performance The group is the key
depends on the
factors in job
individual worker performance
Fatigue is the main Perceived meaning and
factor affecting output.
importance of the work
determining output.
Management sets Workplace culture sets
production standards its own production
standards. Session-1
23
Quantitative Approach
It includes the application of statistics, optimization
models, information models and computer simulations.
More specifically, this approach focuses on achieving
organizational effectiveness through the application of
mathematical and statistical concepts.
Three main branches:
Management Science/Operations Research
Operations Management and
Management Information Systems.
Session-1
24
Management Science
It stresses the use of mathematical models and
statistical methods for decision-making.
Another name is the Operations Research.
Session-1
25
Operations Management
It deals with the effective management of the
production process and the timely delivery of an
organization’s products and services.
Operations management is concerned with:
inventory management,
work scheduling
production planning
facilities location and design, and
quality assurance.
Session-1
26
Management Information Systems
Management information systems focuses on designing
and implementing computer-based information systems
for business organizations.
Session-1
Modern Management Approaches
Systems Theory
Contingency Theory
28
Systems Theory Environment
(Macro & Micro)
Resources Goods
Managerial and
Services
Technological
Labor Profits and
Abilities
Materials losses
Planning
Capital Employee
Organizing
Machinery Satisfaction
Staffing
Information Customer
Leading
Controlling Satisfaction
Inputs Technology Outputs
Feedback
Transformation process
Session-1
29
Contingency (Situational) Theory
Systems Viewpoint Contingency
How the parts fits Viewpoint
together
•Individual Managers’ use
•Group of other view
•Organization Traditional points to solve
•Environment viewpoint problems
What managers
do •External
Behavioral Viewpoint •Plan environment
How managers influence •Organize •Technology
others •Lead
•Interpersonal Roles • Control •Individuals
•Informational Roles
•Decisional Roles
Session-1
30
Emerging Approaches in Management
Thought
William Ouchi, outlined new theory called Theory Z.
It is the positive aspects of both American and Japanese management
styles.
The Theory Z approach involves providing job security to employees to
ensure their loyalty and long-term association with the company.
It also involves job rotation of employees to develop their cross-
functional skills.
Quality Management is a management approach that directs the efforts of
management towards bringing about continuous improvement in product
and service quality to achieve higher levels of customer satisfaction and
build customer loyalty.
Session-1
Mintzberg’s Managerial Roles
Mintzberg’s Managerial Roles (cont’d)
Mintzberg’s Managerial Roles (cont’d)
Enter Organizational Behavior
Contributing Disciplines to the OB Field
Micro
Level
Macro
Level
Contributing Disciplines to the OB Field
Contributing Disciplines to the OB Field
Contributing Disciplines to the OB Field
Contributing Disciplines to the OB Field
Contributing Disciplines to the OB Field
Challenges and Opportunities of OB
Improving Peoples’ Skills.
Improving Quality and Productivity.
Total Quality Management (TQM).
Managing Workforce Diversity.
Responding to Globalization.
Empowering People.
Coping with Temporariness.
Stimulating Innovation and Change.
Emergence of E-Organisation & E-Commerce.
Improving Ethical Behavior.
Improving Customer Service.
Helping Employees Balance Work-Life Conflicts.
Flattening World.
There Are Few Absolutes in OB
x Contingency
Variables y
The Independent Variables
Independent
Independent
Variables
Variables
The Dependent Variables
x
The Dependent Variables
