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Introduction to Organisation Behaviour

Introduction to Organisation Behaviour

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Published by: Sabri Binkasim on Dec 27, 2012
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“Organisation Behaviour is concerned with the study of what people do in an organisation and how that behaviour affects the performance of the organisation.”
(Robbins: 1998,9)

The study of Organisational Behaviour involves:  consideration of the interaction among the formal structure (organisational context in which the process of management takes place)  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

on behaviour.  The Group . governmental actions.working environment should satisfy individual needs as well as attainment of organisational goals.ORGANISATION BEHAVIOUR Interrelated dimensions influencing behaviour:  The Individual .technological and scientific development. . economic activity. Understanding of groups complements a knowledge of individual behaviour.  The Organisation . and patterns of management.formal and informal.impact of organisation structure and design.  The Environment .

It is necessary to view the interrelationships between the development of theory. Knowledge of the history helps in understanding the nature of management and organisation behaviour.   1 . Many earlier ideas are still important and are often incorporated into more current management thinking. behaviour in organisations and management practice.IMPORTANCE OF MANAGEMENT THEORY   What leading writers say is an important part of the study of management.  An understanding of the development of management thinking helps in understanding principles underlying the process of management.

MANAGEMENT THEORY Theory provides a sound basis for action BUT if the action is to be effective the theory must be adequate and appropriate to the task and to improved organisational performance. .

theory and practice are the same.. theory and practice are different.MANAGEMENT THEORY In theory. From “LEADERSHIP . In practice.. with a human touch” 20 October 1998 .

DIVISION OF LABOUR Definition: “The extent to which the organisation’s work is separated into different jobs to be done by different people.448) .” (Moorhead and Griffin:1998.

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 be served         .

repetitive jobs  Reduced training costs  Reduced job satisfaction  Increased standardisation  Decreased worker involvement and uniformity of output and commitment  Increased expertise from  Increased worker alienation repetition of tasks  Possible incompatibility with computerised manufacturing technologies .DIVISION OF LABOUR ADVANTAGES DISADVANTAGES  Efficient use of labour  Routine.

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. .

5.DIVISION OF LABOUR Mintzberg’s five basic elements of structure which Serve as co-ordinating mechanisms for the work of the organisation. 2. 1. 4. 3. Mutual Adjustment Direct Supervision Standardisation of Work Processes Standardisation of Work Output Standardisation of Worker Skills .

 Prevents sub-units becoming too dependent.  Greater use of specialisation.  Easier co-ordination and management control. including better facilities and equipment. .DIVISION OF LABOUR ADVANTAGES OF CENTRALISATION  Easier implementation of a common policy for the organisation as a whole.  Improved economies of scale and a reduction in overhead costs.  Improved decision-making which might otherwise be slower.

.DIVISION OF LABOUR ARGUMENTS AGAINST CENTRALISATION  More mechanistic structure  Lengthens scalar chain (number of different levels in the structure of an organisation).

.DIVISION OF LABOUR ADVANTAGES OF DECENTRALISATION  Enables decisions to be made closer to the operational level of work.  Opportunities for training in management.  Support services will be more effective if they are closer to the activities they are intended to serve. Tends to be easier to implement in private sector organisations rather than the public sector accountability. regularity. uniformity.

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 .

technical requirements and common principles of organisation. hierarchy of management. This perspective was concerned with structuring organisations effectively. Two major sub-groupings of this approach are: – Bureaucracy – Scientific Management (sometimes categorised as an approach in its own right)   .CLASSICAL APPROACH  Emphasis on purpose. formal structure.

rationality.  .  Weber proposed a bureaucratic form of structure that he believed would work for all organisations.CLASSICAL APPROACH Major Contributors: Henri Fayol Linda Urwick Max Weber – most prominent of the three. Embraced logic. efficiency.

CLASSICAL APPROACH Weber’s Ideal Bureaucracy   Criticisms of Bureaucracy      Job Specialisation Authority Hierarchy Formal Selection Formal Rules and Regulations Impersonality Career Orientation   Lack of attention to the informal organisation. Restriction of psychological growth Bureaucratic dysfunction .

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.held the view that there was a best working method by which people should undertake their jobs. Major Contributor .FW TAYLOR (1856 . .1917) .

CLASSICAL APPROACH TAYLOR’S PRINCIPLES     the development of a true science for each person’s work the scientific selection. . training and development of the workers co-operation with the workers to ensure work is carried out in the prescribed way the division of work and responsibility between management and the workers.

.CLASSICAL APPROACH REACTIONS AGAINST SCIENTIFIC MANAGEMENT     opposition because its specific goal was to get more output from the workers argument that his incentive system would dehumanise the workplace inadequate views of employee motivation allegations that he falsified some of his research findings and paid someone to do his writing for him.

HUMAN RELATIONS APPROACH     During the 1920s. leadership. groups. 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 at the Western Electric Company in America (1924-32) One of the researchers (leader) was ELTON MAYO (18801949) . attention began to focus on social factors at work.

. Group pressures stronger than financial incentives offered by management.  The Relay Assembly Test Room .000 interviews. Highlighted the need for management to listen to workers.Piecework Incentive Scheme.attention and interest by management reason for higher productivity. Gave impetus to present-day personnel management and use of counselling interviews.  The Interviewing Programme -20.HUMAN RELATIONS APPROACH Four Main Phases to the Hawthorne Experiments  The Illumination Experiments .  The Bank Wiring Observation Room .level of production was influenced by factors other than changes in physical conditions of work.

Main contributors: MASLOW.NEO-HUMAN RELATIONS APPROACH  Writers in the 1950s and 1960s who adopted a more psychological orientation. Major focus was the personal adjustment of the individual within the work organisation and the effects of group relationships and leadership styles. HERZBERG AND McGREGOR.   .

NEO-HUMAN RELATIONS APPROACH MASLOW’S HIERARCHY OF HUMAN NEEDS General Examples NEEDS Organisational Examples Achievement SELF-ACTUALISATION Challenging Job Status ESTEEM Job Title Friendship BELONGINGNESS Friends in the Work Group Stability SECURITY Pension Plan Sustenance PHYSIOLOGICAL Base Salary .

concerned with job content. Goal of managers is to achieve a state of no dissatisfaction by addressing Hygiene Factors. Extrinsic to the work itself. 1. Motivators or Growth Factors . . Intrinsic to the work itself. Task of improving motivation is then by addressing the Motivators.NEO-HUMAN RELATIONS APPROACH HERZBERG isolated two different sets of factors affecting motivation and satisfaction at work.concerned basically with job environment. 2. Hygiene or Maintenance Factors .

.NEO-HUMAN RELATIONS APPROACH McGREGOR argued that the style of Management adopted is a function of the manager’s 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.

and have little ambition. to avoid responsibility. so managers have to control. People prefer to be directed. . to want security. People do not like work. and threaten employees to get them to work toward organisational goals.NEO-HUMAN RELATIONS APPROACH THEORY X ASSUMPTIONS    People do not like work and try to avoid it. coerce. direct.

 People are internally motivated to reach goals to which they are committed. .  People are bright.  People are committed to goals to the degree that they receive personal rewards when they reach their objectives. work is a natural part of their lives.NEO-HUMAN RELATIONS APPROACH THEORY Y ASSUMPTIONS  People do not naturally dislike work.  People will seek and accept responsibility under favourable conditions.  People have the capacity to be innovative in solving organisational problems. but generally their potentials are under-utilised.

and the range of variables within the organisation.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. The Systems Approach encourages managers to view the organisation both as a whole and as part of a larger environment. Attention is focused on the total work organisation and the interrelationships of structure and behaviour.

There is no one best design of organisation. Highlights possible means of differentiating between alternative forms of organisation structure and systems of management.CONTINGENCY APPROACH     Best viewed as an extension of the systems approach. . Most appropriate structure and system of management is dependent upon the contingencies of the situation for the particular organisation.

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