Critically evaluate the statement that understanding organisational behaviour is

important to organisational success.

Organisational behaviour is the way in which employees of a firm interact with one

another, these interactions provide numerous different outcomes such as changes in

efficiency and competition. Taylor suggests that a firm is most efficient when using

scientific management, his own experience of being an engineer led him to believe

there was an optimum way of performing any job: the one best way (Hookham

Williams, 2013, p.87). Scientific management uses division of labour in the

workforce, this is where workers are given small, specific tasks which in turn allow

them to each specialise in their role, this reduces mistakes and speeds up the

production process Splitting of tasks can be seen as a key to economic progress by

providing a cheaper and more efficient means of producing goods (Encyclopedia

Britannica, 2014). Durkheim would argue that this division of labour is an example of

perfect meritocracy as labour is divided up according to workers diverse abilities,

these different abilities then allocate workers to certain tasks (Hookham Williams,

2013, p.57).

Another part in scientific management includes the surveillance of workers; this

eliminates the tendency of soldiering through the fear of being watched therefore

maximising workers productivity thus achieving the highest efficiency levels.

Through Taylors techniques the efficiency of a firm overall increases, this leads to a

firm becoming more competitive in the market, which in turn should bring greater

success as the firm strengthens their position against their rivals. However, it could

be said that scientific management may actually diminish the success of a firm due

to tasks being mundane and repetitive, this could lead to a loss of motivation from

the workers who seek to use their initiative, in this case this would slow down the
production process and so causing a loss of efficiency which in turn would cause a

loss of competitiveness in the marketplace. Although Taylor stated "The task is

always so regulated that the man who is well suited to his job will thrive while

working at this rate during a long term of years and grow happier and more

prosperous, instead of being overworked." (Skymark.com, 2014). Whether this

specific behaviour of an organisation would cause success I believe solely depends

on the type of worker employed as some workers who wish to participate and have

more responsibility may actually cause a loss of efficiency therefore it would be likely

the success of the firm would not be noticeable.

Unlike Taylorism where the main goal is to achieve maximum efficiency, Fordism

aims to create the lowest manufacturing cost through the idea of mass production.

This began in Detroit in 1914 when Ford discovered that a moving assembly line

using interchangeable parts could radically reduce the cost of making motor cars

(News.bbc.co.uk, 2014). Organisational behaviour based around attaining the lowest

manufacturing cost could help to achieve greater organisational success as the firm

as this behaviour allows the firm to lower the price of goods without losing their profit

margins, leading to the firm being more price competitive within the market.

However, this is dependent on which market the firm is competing in and the price

elasticity of the product, customers may be looking for more personalised products,

rather than something which is mass produced or if the product is price inelastic then

the ability to lower prices may not have an effect on sales. Mass production may also

lead to workers feeling unhappy and demotivated, like the processes of scientific

management, tasks are boring and repetitive therefore there is likely to be a loss of

productivity amongst the workforce. Marx claimed that machinery, the assembly line,

is used by the capitalist to increase surplus of labour by cheapening labour, to deskill

workers and thus make it easier to recruit, control and discipline workers. Machinery,

he argued led to the progressive reduction of skills (Hookham Williams, 2013, p.52).

Overall, I do believe that the understanding of organisational behaviour will have an

impact on organisational success. This is for the reason that workforces interactions

and procedures will ultimately affect both efficiency and competitiveness of the firm

thus sales and success rates; this is due to numerous factors such as motivation and

productivity levels. Whether success is improved or dampened is mainly dependant

on the type of worker involved and whether the techniques implemented in the

workplace are suited to them so it is important for leaders to recognise the type of

workforce employed. While organisational behaviour is key when analysing firms

successes, it is important to realise that other factors also contribute to achievement,

such as price elasticity of demand, competitors actions and the target markets

wants.

Word count: 749

References
Encyclopedia Britannica, (2014). division of labour. [online] Available at:
http://www.britannica.com/EBchecked/topic/326831/division-of-labour [Accessed
17 Oct. 2014].

Hookham Williams, C. (2013). Custom liverpool organisations and management

ulms151. [S.l.]: Palgrave Macmillan, p.87.

Hookham Williams, C. (2013). Custom liverpool organisations and management

ulms151. [S.l.]: Palgrave Macmillan, p.57.

Skymark.com, (2014). Frederick W. Taylor and Scientific Management: Efficiency or

Dehumanization?. [online] Available at:
http://www.skymark.com/resources/leaders/taylor.asp [Accessed 17 Oct. 2014].
News.bbc.co.uk, (2014). BBC NEWS | Photo journal: Rise and fall of mass
production, Fordism. [online] Available at:
http://news.bbc.co.uk/1/shared/spl/hi/picture_gallery/07/business_rise_and_fall_
of_mass_production/html/1.stm [Accessed 17 Oct. 2014].

Hookham Williams, C. (2013). Custom liverpool organisations and management

ulms151. [S.l.]: Palgrave Macmillan, p.52.