Introduction to Organization behavior

Manisha Vijayran Asstt.Prof.-HR

Organization Behavior
OB is concerned with the study of behavior of people within an organizational setting. It involves the understanding, prediction and control of human behavior and the factors, which influence the performance of people as members of an organization. Fred Luthans

EVOLUTION OF MANAGEMENT THOUGHT

Classical Approach Behavioral Approach

Classical Approach
Scientific Management. Administrative Principles.

Bureaucratic Organization.

Scientific Management.
Became increasingly popular in the early 1900s. Given by Frederick Winslow Taylor(father of Scientific Management), who took up Henry Townes challenge and developed principles of Scientific Management in 1911. He observed Soldiering problem i.e. workers deliberately worked at the slower pace than their capabilities.

Two Managerial Practices Developed By Taylor

Piece Rate Incentive System Time and Motion study

Administrative Management Theory

Henri Fayol Business operations of an organization can be divided into: 1. Technical Activities 2. Commercial Activities 3. Financial Activities 4. Security Activities 5. Accounting Activities 6. Managerial Activities

Fayols Guidelines to Effective Management Practices

Division of labor Authority Discipline Unity of command Unity of direction Subordination of Renumeration Centralization Scalar chain Order Equity Stability

individuals to the common good

Initiative
Esprit de corps

Webers Theory of Bureaucracy

Work specialization and division of labor.

Abstract rules and regulations. Impersonality of managers. Hierarchy of the organization structure.

Behavioral Approach
Hawthorne experiments. Abraham Maslow need hierarchy theory.

Douglas Mc Gregor(Theory X and Theory Y)

Hawthorne Studies
1. ILLUMINATION EXPERIMENTS

2 group of employees: Control Group no change in illumination. Experimental Group-illumination change. Productivity of workers was influenced by some other variable rather than illumination.

RELAY ASSEMBLY ROOM EXPERIMENTS

Began in 1927. Conducted by Elton Mayo & Roethlisberger and some co. representatives. 6 girls were selected for the experiment. Assemble telephone relay. Rate of production- No. of relays.

FEEDBACK MECHANISM
During the experiments(5 yrs.), changes were made and tested for a (4-12 weeks). Girls produced 2400 relays ,48 hours week,6 days without any break. For 8 weeks, payment-piece-work basis, productivity increased.

2- 5 min. breaks ,inc. prodn. Duration of breaks -10 min., inc. prodn. No.of breaks 6,slight dec.in prodn. Again 2 breaks were given, 1st break hot meal,free was given, inc. prodn. Allowed to go home early by 30 mins. 4.30p.m.,inc. in prodn.

 Allowed to go home early by 4 p.m.,no inc. in prodn. Original conditions of 6 day,48 hours was used, all facilities were removed, worked in these conditions for 12 weeks and got output of 3000 relays.

 Productivity increased as girls formed close knit group. High job satisfaction as they were not pressurized to work. This experiment disagreed prevalent theory of Taylor, which stated that employees were motivated by economic rewards only.

Interview Phase
All employees of Hawthorne plant were interviewed.(1928 -1930)

Bank Wiring Observation Room Experiments(1931-32)

Aimed to understand the power of informal group and peer pressure on worker productivity. Group of 14 men were engaged in bankwiring . No change in the physical conditions. Paid on basis of incentive pay plan.

Researchers observed output stayed at constant level as against economic man model Group acceptance was more important for employees than money.

Maslows Hierarchy of Needs

People have a hierarchy of motivational needs. Once the needs of one level is satisfied, its no more a motivator and instead the need at next level becomes significant to individuals.

Theory X

Theory Y
Work is a natural part of

People do not like work and try to avoid it.

peoples lives. motivated by commitment.

People do not like work, so managers have to control, direct, coerce, and threaten employees to get them to meet organizational goals.
People prefer to be directed, to avoid responsibility, and to want security; they have little ambition.

People are internally

People are committed to

goals to the degree they receive rewards.

People will seek and

accept responsibility.
People have the capacity

to be innovative.

Behavior as Input-Output System

B J Kolasa, a behavioral scientist, viewed human behavior as a systems model with an input-output arrangement. Input Processing Output

Trends & Prospects in OB

Reduction in number of middle level management. Increasing use of computers and IT . Change in composition of workforce. Spread of globalization. Change in employee employer relationship Innovative work approches.