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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

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

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

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

” (Moorhead and Griffin: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) .

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. .

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

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

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

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

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 .

formal structure. hierarchy of management.CLASSICAL APPROACH  Emphasis on purpose. technical requirements and common principles of organisation. 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)   .

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

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

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 TAYLOR’S PRINCIPLES     the development of a true science for each person’s work the scientific selection. .

.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. the informal organisation and behaviour of people. leadership. attention began to focus on social factors at work. ‘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) . groups.

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

HERZBERG AND McGREGOR.   .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. Main contributors: MASLOW.

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 .

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

. He put forward two suppositions called Theory X and Theory Y which are based on popular assumptions about work and people.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.

so managers have to control. 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. . People prefer to be directed. and have little ambition. direct. to avoid responsibility. to want security.

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

SYSTEMS APPROACH     Integration of the classical and human relations approaches. Attention is focused on the total work organisation and the interrelationships of structure and behaviour. Attempts to reconcile the work of the formal and the informal writers. The Systems Approach encourages managers to view the organisation both as a whole and as part of a larger environment. Importance of the socio-technical system. . and the range of variables within the organisation.

Most appropriate structure and system of management is dependent upon the contingencies of the situation for the particular organisation. 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.

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