INTRODUCTION

Management

Man Age Ment

Humans Because of their Become

experience mentally
tough
1.Traditional Management

Boss

(Mercatise / Barter system)

Customer
2.Semi-traditional Management

Boss

Manager

Customer
 3.Modern Management

Boss

General Manager

Purchase Production Marketing Finance Human Resource

Dept Dept Dept Dept Dept
Organisation: An organisation is a consciously
coordinated social unit, composed of 2 or more
people, that functions on a relatively continuous
basis [to get salary or profit] to achieve a common
goal or set of goals.

Behaviour: Actions due to psychological effect of

individual or observable and measurable activity of
human being.

Organisational Behaviour: OB leads to one’s thinking

towards viewing behaviour in a performance related
context ; that is as it leads to effectiveness or success
in achieving organisationally desirable outcomes.
OB is defined as, “the
study of what people
think, feel and do in and
around organisation” .
Managers try to analyse each an every individuals
core behavioural habits (Skills) that would help
in organisational development.

Ex: Competency Mapping is based on this

concept.
-OB gets more respect from people in work life for
a while rather than from students.

-OB knowledge helps individuals in applying

concepts in Motivation, Communication,
Conflicts, Team Dynamics and other topics.

-A recent study of more than 700 organisation

applying OB practices have 3 times the level of
financial success as compared to companies not
having OB practices.
Every one in the work force needs to understand,
predict and influence behaviour.
A simple OB model

Understand organisational
Events (1)

Influence organisational Predict organisational

Events (3) Events (2)
OB emerged as a distinct field around 1940, but its
origin can be traced back in time as,
1. Greek philosopher Plato wrote about the essence of
leadership.
2. Aristotle addressed persuasive (Convincing)
communication.
3. Chinese philosopher Confucius in 500 B.C. said
about ethics and leadership.
4. Chanakya (40 B.C.) in his “ARTHASHASTRA” has
mentioned about punishment for unnecessarily
delaying the work & incentive system.
5. Adam Smith in 1776 advocated organisational
structure based on division of labour.
6. German sociologist Max Weber wrote about
Charismatic leadership.

7. F.W.Taylor spoke about scientific management

in 1930’s based on work, motion and time
study.
EXTERNAL ENVIRONMENT

TRANSFORMATION
INPUT OUTPUTS
PROCESS

5 M’S PRODUCT,
(Men, Machine, POSDCORB
SERVICES,
Money, Material, COMMUNICATION
SATISFACTION,
Methods) EXTERNAL ENVIRONMENT
PROFITS.
1. Work study: An employee can be shown the
facts of each part of operation so that he can
develop ideas for its improvements.

2. Motion study: Understanding small potential

areas of improvements and can modify.
The questions involved are:
a. Can some element of work be eliminated?
b. Can some parts of operation be combined?
c. Can the sequence be changed?
d. Can the operations be simplified?
3. Time study: Time standards and incentive wage
system goes together. Time standards are essential
for planning and controlling as:

- Time required for each production schedule

- Time study is required to balance output of various
departments so that their activities can be
coordinated.
- It is required for accountant to use standard costing
method to access the period for the money to be
collected.
- It is used to fix price for a job, as price varies
according to time taken to perform the job.
1.The Classical approach: Also called as scientific
management gave importance for faster means
of production – Sir F.W.Taylor & Sir Henry
Fayol.
2.The Neo-Classical approach: Human factors was
given importance- Sir Elton Mayo.
3.The Modern management approach: Gives equal
importance to man and machine.
1. Operational approach: Getting things done through
others.
2. Empirical approach: Emphasises on past experience.
3. Human behaviour approach: Psychological factors
underlying human behaviour.
4. Social system: Views management based on relationship.
5. Decision theory approach: Decision should be taken at
the right time.
6. Communcation approach: Looks at manager as a
communication centre.
7. Mathematical approach: Management functions can be
expressed in terms of mathematical symbols.
Elton Mayo the father of human relations
approach along with a group of HARVARD
professors conducted this experiment at
Hawthorne plant of western electrical
company-Chicago.

They conducted the experiment from 1924 to 1932.

The experiment are:

1. Illumination experiment (1924 to 1927)
2. Relay assembly test room experiment (1927 to 1932)
3. Bank wiring observation room experiment (1931 to 1932)
OB is a multidisciplinary field and includes:
1. Psychology
2. Social Psychology
It is broadly conceived as the study of how
individuals perceive, influence, and relate to
others.
3. Anthropology
4. Political Science
5. Economics
6. Industrial Engineering
1.To keep workers happy to get maximum
productivity.
2. Give workers a challenging job which would
suit their caliber.
3. To motivate workers by money.
4. To keep the (group) team in co-operation and to
avoid conflicts.
5. To have a systematic study of cause and effect
and basing our conclusions on scientific
evidence by data gathering.
1. Understanding of self and others
* Individual Behaviour
* Inter-Personal Behaviour
* Group Behaviour
2. Motivation
3. Effective Communication
4. Effective Organisational Climate
5. Good Human Relations
6. Introduction of change in organisation