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7/31/2019 ion Behaviour

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ORGANISATION BEHAVIOURGEMS B SCHOOL,

BANGALORE

K.SONY

Roll No: CLOA6006A4


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ORGANISATION BEHAVIOUR

Organisation Behaviour is concerned with thestudy of what people do in an organisation andhow that behaviour affects the performance of theorganisation.

(Robbins: 1998,9)


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The study of Organisational Behaviour involves:

consideration of the interaction among the formal structure

(organisational context in which the process of management takesplace)

the tasks to be undertaken

the technology employed and the methods of carrying out work

the behaviour of people

the process of management

the external environment


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Interrelated dimensions influencing behaviour:

The Individual - working environment should satisfy individual

needs as well as attainment of organisational goals. The Group - formal and informal. Understanding of groups

complements a knowledge of individual behaviour.

The Organisation - impact of organisation structure and design,and patterns of management, on behaviour.

The Environment - technological and scientific development,economic activity, governmental actions.


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IMPORTANCE OF MANAGEMENT THEORY

What leading writers say is an important part of the study of management.

It is necessary to view the interrelationships between the development oftheory, behaviour in organisations and management practice.

An understanding of the development of management thinking helps inunderstanding principles underlying the process of management.

Knowledge of the history helps in understanding the nature ofmanagement and organisation behaviour.

Many earlier ideas are still important and are often incorporated into morecurrent management thinking.

1


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MANAGEMENT THEORY

Theory provides a sound basis for action BUTif the action is to be effective the theory must

be adequate and appropriate to the task and

to improved organisational performance.


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MANAGEMENT THEORY

In theory, theory and practice are the same.

In practice, theory and practice are different.

From LEADERSHIP ... with a human touch

20 October 1998


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DIVISION OF LABOUR

Definition:The extent to which the organisations

work is separated into different jobs to bedone by different people.

(Moorhead and Griffin:1998,448)


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DIVISION OF LABOUR

Major purpose or function

Product or service

Location

Nature of the work performed

Common time scales

Common processes

Staff employed

Customer or people to beserved


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DIVISION OF LABOUR

ADVANTAGES

Efficient use of labour

Reduced training costs

Increased standardisationand uniformity of output

Increased expertise fromrepetition of tasks

DISADVANTAGES

Routine, repetitive jobs

Reduced job satisfaction

Decreased worker involvementand commitment

Increased worker alienation

Possible incompatibility withcomputerised manufacturingtechnologies


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DIVISION OF LABOUR

Decisions on division of work should take

account of:

the need for co-ordination

the identification of clearly defined divisions of work

economy

the process of managing the activities

avoiding conflict the design of work organisation should take account of the

nature and interests of staff and job satisfaction.


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DIVISION OF LABOUR

Mintzbergs five basic elements of structure which

Serve as co-ordinating mechanisms for the work of

the organisation.

1. Mutual Adjustment

2. Direct Supervision

3. Standardisation of Work Processes4. Standardisation of Work Output

5. Standardisation of Worker Skills


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DIVISION OF LABOUR

ADVANTAGES OF CENTRALISATION

Easier implementation of a common policy for the organisation as

a whole. Prevents sub-units becoming too dependent.

Easier co-ordination and management control.

Improved economies of scale and a reduction in overhead costs.

Greater use of specialisation, including better facilities andequipment.

Improved decision-making which might otherwise be slower.


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DIVISION OF LABOUR

ARGUMENTS AGAINST CENTRALISATION

More mechanistic structure

Lengthens scalar chain (number of different levels in the structureof an organisation).


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DIVISION OF LABOUR

ADVANTAGES OF DECENTRALISATION

Enables decisions to be made closer to the operational level of

work. Support services will be more effective if they are closer to the

activities they are intended to serve.

Opportunities for training in management.

Tends to be easier to implement in private sector

organisations rather than the public sector -

accountability, regularity, uniformity.


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DIVISION OF LABOUR

Six key elements to be addressed when designing

structure:

Work Specialisation

Departmentalisation

Chain of Command (Scalar Chain)

Span of Control (Number of subordinates reporting

directly to a manager or supervisor.) Centralisation and Decentralisation

Formalisation


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CLASSICAL APPROACH

Emphasis on purpose, formal structure, hierarchy of management,technical requirements and common principles of organisation.

This perspective was concerned with structuring organisationseffectively.

Two major sub-groupings of this approach are:

Bureaucracy

Scientific Management (sometimes categorised as anapproach in its own right)


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CLASSICAL APPROACH

Major Contributors:

Henri Fayol

Linda Urwick

Max Weber most

prominent of the three.

Weber proposed abureaucratic form of structure

that he believed would workfor all organisations.

Embraced logic, rationality,efficiency.


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CLASSICAL APPROACH

Webers Ideal Bureaucracy

Job Specialisation

Authority Hierarchy

Formal Selection

Formal Rules andRegulations

Impersonality

Career Orientation

Criticisms of Bureaucracy

Lack of attention to theinformal organisation.

Restriction of psychologicalgrowth

Bureaucratic dysfunction


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CLASSICAL APPROACH

SCIENTIFIC MANAGEMENT

Emphasis on obtaining increased productivity from

individual workers through the technical structuring of

the work organisation and the provision of monetary

incentives as the motivator for higher levels of output.

Major Contributor - FW TAYLOR (1856 - 1917) - held

the view that there was a best working method by which

people should undertake their jobs.


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CLASSICAL APPROACH

TAYLORS PRINCIPLES

the development of a true science for each persons work

the scientific selection, training and development of the workers

co-operation with the workers to ensure work is carried out in theprescribed way

the division of work and responsibility between management andthe workers.


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CLASSICAL APPROACH

REACTIONS AGAINST SCIENTIFIC MANAGEMENT

opposition because its specific goal was to get more output fromthe workers

argument that his incentive system would dehumanise theworkplace

inadequate views of employee motivation

allegations that he falsified some of his research findings and paidsomeone to do his writing for him.


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HUMAN RELATIONS APPROACH

During the 1920s, attention began to focus on social factors atwork, groups, leadership, the informal organisation and

behaviour of people. Behavioural and informal are alternative headings sometimes

given to this approach.

Turning point came with the famous Hawthorne experiments atthe Western Electric Company in America (1924-32)

One of the researchers (leader) was ELTON MAYO (1880-1949)


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HUMAN RELATIONS APPROACH

Four Main Phases to the Hawthorne Experiments

The Illumination Experiments - level of production was

influenced by factors other than changes in physical conditions ofwork.

The Relay Assembly Test Room - attention and interest bymanagement reason for higher productivity.

The Interviewing Programme -20,000 interviews. Gave impetusto present-day personnel management and use of counselling

interviews. Highlighted the need for management to listen toworkers.

The Bank Wiring Observation Room - Piecework IncentiveScheme. Group pressures stronger than financial incentivesoffered by management.


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NEO-HUMAN RELATIONS APPROACH

Writers in the 1950s and 1960s who adopted a morepsychological orientation.

Major focus was the personal adjustment of the individual withinthe work organisation and the effects of group relationships andleadership styles.

Main contributors: MASLOW, HERZBERG AND McGREGOR.


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MASLOWS HIERARCHY OF HUMAN NEEDS

General Examples NEEDS OrganisationalExamples

Achievement SELF-ACTUALISATION Challenging Job

Status ESTEEM Job Title

Friendship BELONGINGNESS Friends in the Work

Group

Stability SECURITY Pension Plan

Sustenance PHYSIOLOGICAL Base Salary


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HERZBERG isolated two different sets of factors affecting

motivation and satisfaction at work.

1. Hygiene or Maintenance Factors - concerned basically with jobenvironment. Extrinsic to the work itself.

2. Motivators or Growth Factors - concerned with job content.Intrinsic to the work itself.

Goal of managers is to achieve a state of no dissatisfaction by

addressing Hygiene Factors. Task of improving motivation is

then by addressing the Motivators.


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McGREGOR argued that the style of Management adopted is a

function of the managers attitudes towards human nature and

behaviour at work.

He put forward two suppositions called Theory X and Theory Y which

are based on popular assumptions about work and people.


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THEORY X ASSUMPTIONS

People do not like work and try to avoid it. People do not like work, so managers have to control, direct,

coerce, and threaten employees to get them to work towardorganisational goals.

People prefer to be directed, to avoid responsibility, to want

security, and have little ambition.


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THEORY Y ASSUMPTIONS

People do not naturally dislike work; work is a natural part of their

lives. People are internally motivated to reach goals to which they are

committed.

People are committed to goals to the degree that they receivepersonal rewards when they reach their objectives.

People will seek and accept responsibility under favourableconditions.

People have the capacity to be innovative in solving organisationalproblems.

People are bright, but generally their potentials are under-utilised.


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SYSTEMS APPROACH

Integration of the classical and human relations approaches.Attempts to reconcile the work of the formal and the informal

writers. Importance of the socio-technical system.

Attention is focused on the total work organisation and theinterrelationships of structure and behaviour, and the range ofvariables within the organisation.

The Systems Approach encourages managers to view theorganisation both as a whole and as part of a larger environment.


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CONTINGENCY APPROACH

Best viewed as an extension of the systems approach.

Highlights possible means of differentiating between alternative

forms of organisation structure and systems of management. There is no one best design of organisation.

Most appropriate structure and system of management isdependent upon the contingencies of the situation for theparticular organisation.


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