“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

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

  1 .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. 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.  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. .

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

” (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         .

DIVISION OF LABOUR ADVANTAGES DISADVANTAGES  Efficient use of labour  Routine. 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 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. .

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

 Improved economies of scale and a reduction in overhead costs.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. .  Greater use of specialisation. including better facilities and equipment.  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).

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

)  Centralisation and Decentralisation  Formalisation .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.

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

 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. efficiency.  . rationality. Embraced logic.

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

. 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.

‘Behavioural’ and ‘informal’ are alternative headings sometimes given to this approach. groups. 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) . the informal organisation and behaviour of people.HUMAN RELATIONS APPROACH     During the 1920s. attention began to focus on social factors at work. leadership.

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

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

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 .

Goal of managers is to achieve a state of no dissatisfaction by addressing Hygiene Factors. 2.concerned with job content. Extrinsic to the work itself.concerned basically with job environment. Motivators or Growth Factors . 1. Intrinsic to the work itself. .NEO-HUMAN RELATIONS APPROACH HERZBERG isolated two different sets of factors affecting motivation and satisfaction at work. Task of improving motivation is then by addressing the Motivators. 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. coerce. . and threaten employees to get them to work toward organisational goals. so managers have to control.NEO-HUMAN RELATIONS APPROACH THEORY X ASSUMPTIONS    People do not like work and try to avoid it. direct. to want security. People prefer to be directed. to avoid responsibility. People do not like work.

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

Importance of the socio-technical system.SYSTEMS APPROACH     Integration of the classical and human relations approaches. Attempts to reconcile the work of the formal and the informal writers. and the range of variables within the organisation. 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. Most appropriate structure and system of management is dependent upon the contingencies of the situation for the particular organisation.CONTINGENCY APPROACH     Best viewed as an extension of the systems approach. .

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