23/11/2011

Historical Background of Organizational Behavior

Prepared for

Dr. Ataur Rahman Organizational Behavior
Prepared By
Md. Jubair Bin Kibria - 3-09-17-022

November 23, 2011

Dr. Ataur Rahman Professor, Department of Management Studies, Faculty of Business Studies, University of Dhaka

Dear Sir, Subject: Submission of a report.

With due regards and respect I state that I am very thankful to you as you assigned us this report on ‘‘Historical Background of Organizational Behavior”. It is a great opportunity for me to acquire theoretical knowledge about organizational behavior and its development over the years. I have tried my best to gather what I believe to be the most complete information available.

Your kind acceptance and any type of appreciation would surely inspire me. I would always be available and ready to explain further any of the context of the whenever asked.

Sincerely yours,

………………………. Md. Jubair Bin Kibria ID: 3-09-17-022

Table of Contents
TABLE OF CONTENTS ..........................................................................................................................3 1 INTRODUCTION ............................................................................................................................6 1.1 BACKGROUND OF THE STUDY ............................................................................................................6 1.2 THE STATEMENT OF THE RESEARCH PROBLEM .......................................................................................7 1.3 THE RESEARCH OBJECTIVES ..............................................................................................................7 1.4 THE DEFINITION OF THE TERMS .........................................................................................................7 CONSTITUTIVE DEFINITIONS: ................................................................................................................................ 7 1.5 LIMITATION OF THE STUDY ...............................................................................................................8 2 THE RESEARCH METHODOLOGY ....................................................................................................8 3 ANALYSIS & FINDINGS ..................................................................................................................8 3.1 THE MEANING OF ORGANIZATIONAL BEHAVIOR ....................................................................................8 3.2 HISTORICAL ROOTS OF ORGANIZATIONAL BEHAVIOR ............................................................................ 10 3.2.1 PRE-CLASSICISTS ................................................................................................................................. 11 3.2.1.1 Robert Owen (1771-1858) ........................................................................................................... 11 3.2.1.2 Charles Babbage (1792-1871) ...................................................................................................... 11 3.2.2 THE CLASSICAL SCHOOL ........................................................................................................................ 12 3.2.2.1 Bureaucratic Management .......................................................................................................... 12 3.2.2.1.1 Max Weber (1864-1920)........................................................................................................... 13 3.2.2.2 Scientific Management ................................................................................................................ 14 3.2.2.2.1 Frederick Winslow Taylor (1856-1915)..................................................................................... 14 3.2.2.2.2 Frank (1868-1924) and Lillian Gilbreth (1878-1972)................................................................. 16 3.2.2.3 Administrative Management ....................................................................................................... 17 3.2.2.3.1 Henri Fayol (1841-1925) ........................................................................................................... 17 3.2.2.3.2 Chester Barnard (1886-1961) ................................................................................................... 19 3.2.3 THE BEHAVIORAL MOVEMENT ............................................................................................................... 20 3.2.3.1 Mary Parker Follett (1868-1933) ................................................................................................. 20 3.2.3.2 The Hawthorne Experiments ....................................................................................................... 21 3.2.4 HUMAN RELATIONS MOVEMENT ........................................................................................................... 23 3.2.4.1 Abraham H. Maslow (1908-1970) ................................................................................................ 24 3.2.4.2 Douglas McGregor (1906-1964) .................................................................................................. 25

..................2 The Contingency Perspective.......................2..........................................2.............6............................................................ 26 3...................................................... 27 3.............2.....................5....................2.........................5 BEHAVIORAL RESEARCH MODELS ......................................................1 The Systems Perspective ... 26 3...........................................................1 Renesis Likert ........................................................2............. McClelland ............... 28 3............................... 36 ........... 34 THE BIBLIOGRAPHY ..........................3 David C.....................2..........2.....................................................................5...............2....2..........2 Frederick Herzberg..............6................................................................ 32 3...........2........................................................................3..................2................................................................................................................. 33 4 CONCLUDING THOUGHTS ........... 29 3...............................1 Contemporary organizational behavior ...... 31 3........5............. 28 3..............................6...................................2 Contextual Perspectives on Organizational Behavior ................................6......................6 TOWARD ORGANIZATIONAL BEHAVIOR ....................

in actual organizational settings. The behavioral research school applies much of the needs theory. ushering in the human relation's branch of the bureaucratic method. Henri Fayol was the father of the administrative management school. the engineer. made a major effort to establish a form of the scientific method of management. A major result of the behavioral school is the demise and repudiation of the classical school of management. The classical school and bureaucratic school of the early twentieth century were the first efforts to generate a comprehensive theory of management. The behavioral school also includes the first female organizational theorist. The behavioral school had a profound influence on management theory. The human relation's school of management is extremely important in dealing with the concept of employee motivation. Mary Parker Follett. It is a revolutionary period of management theory. developed by Maslow. .Executive Summery The evolution of management thought has followed societal trends of the nineteenth and twentieth century’s. He had a profound effect on much of administrative theory during the early part of the twentieth century. The contemporary management school brings a more interdisciplinary approach to the field of management and has a major impact on the way today's organizations are managed. Herbert Simon. as well as the landmark Hawthorne Experiment. Herbert Maslow developed the hierarchy of needs theory while Douglas McGregor developed Theory X and Y. Frederick Taylor. The nineteenth century works of Charles Babbage and Robert Owen were concerned with the early factory system as well making social progress. It includes the Nobel Prize winning critic of the early proverbs of administration. The integrative methodologies of the systems approach and contingency theory give managers the latitude they need to integrate the research of the many management schools.

In today's business world. or sales decreased. motivating that employee the way they need to be motivated is never a gray area and a guaranteed success. Organizational behavior was a topic that was not discussed until an employee's behavior changed.Discipline principles is a field of study that investigates the impact that individuals. They are beginning to view organizational behavior as an intricate piece of training and development of the workforce. and budgets. what exactly does being a winning organization mean and what does it take to get there? In the past companies placed a great amount of emphasis on the numbers and how to achieve those numbers. productivity changed. productivity. managers are paying more attention to how employees react to situations rather than if they respond. and structure have on behavior within organizations for the purpose of applying such knowledge. and adaptability.1 Background of the Study The Importance of Organizational Behavior in any organization one can assume that the main goal of that business is to succeed. The people who actually helped achieve those numbers were graded on their technical skills. Organizational behavior studies have become more important today than in previous years because corporations must learn to adapt to the rapidly changing business cultures that have stemmed from a competitive and fast-paced market. Soft skills were never a part of management training and it was rare that managers were commended for having those skills. creativity. groups. In the business world today. Organizational Behavior or as I call it . . Employees were moneymaking machines and how they achieved those numbers was not a concern of their managers as long as the numbers were being met. If you can zone in on an employees' personality.1 Introduction 1. I feel organizational behavior is an essential tool for managing effective teams.

It can help managers understand the complexity within organizations. Trace the historical roots of organizational behavior.4 The Definition of the Terms There are two categories of definition regarding the research. concepts. identify problems. contribution of scholars and organizations in it and its gradual improvement. Constitutive definitions: Organization: An organization is defined as a collection of people who work together to achieve a wide variety of goals Organizational Behavior: Organizational behavior is defined as the actions and attitudes of people in organizations. including its precursors.3 The Research Objectives There are three research objectives that we have come up with. The field of organizational behavior (OB) covers the body of knowledge derived from these actions and attitudes. 1.2 The Statement of the Research Problem This research attempts to find out the historical background of the organizational behavior.1. and importance. and the human relations movement. Discuss the emergence of contemporary organizational behavior. the Hawthorne studies. These objectives will help maintain the focus of the study and its main purpose. Identify and discuss contextual perspectives on organizational behavior 1. which are constitutive and operational. Describe contemporary organizational behavior—its characteristics. determine the best ways to correct them. The objectives are:      Define organizational behavior. as well as the outcome. and establish whether the changes would make a significant difference .

we cannot fully understand the individual’s behavior without knowing something about the organization. Although we can focus on any one of these three areas independently.1 The Meaning of Organizational Behavior Organizational behavior (OB) is the study of human behavior in organizational settings. I have mainly relied on secondary data which is historical. we begin with a comprehensive definition of organizational behavior and a framework for its study. and the organization itself. we examine several contextual perspectives that provide the general framework from which we can develop a more comprehensive examination of human behavior at work. there is no way to statistically analyze the results. already assembled and do not require to access respondents or subjects. we must remember that all three are ultimately connected and necessary for a comprehensive understanding of organizational behavior. . But because the organization influences and is influenced by the individual. we discuss contemporary organizational behavior and present an overview of the rest of this book. and so there can be no replication of the experiment and reviewing of the results. how human behavior interacts with the organization. we can study individual behavior (such as the behavior of a company’s Managing Director or of one of its employees) without explicitly considering the organization. Because there are no variables manipulated.5 Limitation of the Study This study is done based on the information available regarding the historical background of organizational behavior on the internet. We then trace the field’s historical roots and its emergence as an independent field.1. 2 The Research Methodology This is a theoretical research and I have chosen descriptive research methodology to carry out this. Finally. 3 Analysis & Findings In this Section. For example. 3. In addition. Next. the results of observational studies are not repeatable.

Eventually. and so forth. The goal of this phase of the study would be to understand some of the dynamics of how incoming individuals interact within the broader organizational context. suppose that Meghna Group of Companies hires a consultant to investigate employee turnover. Therefore. we can study an organization without focusing specifically on each individual within it. the individual changes as a function of both personal experiences and maturity and of work experiences with the organization. The organization. of course. then. and various changes implemented by the organization. coworkers. exists before a particular person joins it and continues to exist long after he or she has left. experiences from other organizations. the formal policies and procedures of the organization. the consultant studying turnover would also need to study the structure and culture of Meghna Group of Companies. Thus. For example. They come in contact with other people and with the organization in a variety of ways. But again. their personal goals. is affected by the presence and eventual absence of the individual. For instance. The goal of this analysis would be to learn as much as possible about the nature of the company’s workforce from the standpoint of the individual—their expectations. Each individual brings to an organization a unique set of personal characteristics. As a starting point. the consultant might analyze the types of people the firm usually hires. Therefore. An organization. . and personal background.Similarly. Over time. organizational behavior must look at the unique perspective that each individual brings to the work setting. we are looking at only one piece of the puzzle. the organization itself represents a crucial perspective from which to view organizational behavior. Points of contact include managers. But individuals do not work in isolation. we must consider the other pieces to understand the whole. the consultant studying turnover at Meghna Group of Companies might choose to look at the orientation procedures for newcomers to the organization. Clearly. the study of organizational behavior must consider the ways in which the individual and the organization interact. in turn.

2 Historical Roots of Organizational Behavior Many disciplines. Although management is just as important to a small organization as it is to a large one. large firms provided both a stimulus and a laboratory for management research. Management has also been around in one form or another for centuries. such as physics and chemistry. and manage others in an organization. Clearly. Myriad variables and concepts impact the interactions described. One reason for the relatively late development of management as a scientific field is that very few large business organizations existed until around a hundred years ago. the field of organizational behavior can be both exciting and complex. But because serious interest in the study of management did not emerge until the turn of the twentieth century. and the design of the firm itself can provide additional insight into why some people decide to stay while others elect to leave.An understanding of factors such as the performance evaluation and reward systems. . and together these factors can greatly complicate a manager’s ability to understand. we look first at the historical roots of organizational behavior. However. appreciate. Second. organizational behavior is only a few decades old. many of the initial players interested in studying organizations were economists. are literally thousands of years old. they concentrated on higher levels of analysis such as national economic policy and industrial structures rather than on the internal structure of companies. they can also provide unique opportunities to enhance personal and organizational effectiveness. For example. To provide some groundwork for understanding. 3. the writings of Aristotle and Plato abound as references and examples of management concepts and practices. therefore. the decision-making and communication patterns. Economists initially assumed that management practices are by nature efficient and effective.

1.2. or the degree to which work is divided into its parts. 3. where he described his vision of society. While being extremely controversial during his lifetime. Owen spearheaded a legislative movement to limit child employment to those over the age of ten while reducing the workday to 10 1/2 hours. Scotland.2. He also became active in improving living conditions of employees through the implementation of improvements in housing. Owen was an entrepreneur and social reformer. Robert Owen and Charles Babbage seriously addressed the quest for the development of management theory. where he developed a strong interest in the welfare of the 400 to 500 child employees.2 Charles Babbage (1792-1871) Charles Babbage. a noted English mathematician. Owen strongly believes that character is a product of circumstances and that environment and early education is critical in forming good character.1 Robert Owen (1771-1858) Robert Owens’s ideas stemmed from his ownership of a cotton mill in New Lanark.3. A New View of Society.1. Babbage's other major management contribution came from the development of a modern profit-sharing plan including an employee bonus for useful suggestions as well as a share of the company's profits. Owen is credited with being the forerunner of the modern human relations school of management. as well as doing basic research and development on an "analytical engine" acknowledged being the forerunner of today's modern computer. In 1813. public works.2. operations research. sanitation. Owen published a pamphlet.1 Pre-Classicists In the nineteenth century. This is now recognized as being the forerunner of contemporary . and establishing schools for the children. His interest in management stemmed largely from his concerns with work specialization. while Babbage was a noted mathematician with a strong managerial interest. 3. is credited as being the "father of the modern computer" for performing the fundamental research for the first practical mechanical calculator.

and scientific management branches. ending with his death after a bout with pneumonia at the University of Munich. This ideal type rested on a belief in the "legality" of patterns of normative rules. and Munich. Weber.2 The Classical School The twentieth century witnessed a period of tremendous management theory ferment and activity. Owen was primarily credited with making specific suggestions regarding management techniques in the areas of human relations. was raised in Berlin and studied law at the University of Berlin. 3. However. administrative management. After assuming an appointment teaching law at the University of Berlin. Vienna. Weber assumed teaching appointments in economics at the Universities of Freiburg.2. the son of a prominent Bismarckian era German politician. the classical school theorists went a step further. These pre-classicists paved the way for the theoretical ferment of the classical school of management.2. 3. but they also wanted to provide the tools a manager required for dealing with their organizational challenges. Weber's interest in organizations evolves from his view of the institutionalization of power and authority in the modern Western world. He constructed a "rational-legal authority" model of an ideal type bureaucracy. The classical school of management was primarily concerned with developing such a theory to improve management effectiveness in organizations. while Babbage is credited with developing the concepts of specialization of labor and profit sharing. Calls were heard for the development of a comprehensive management theory.1 Bureaucratic Management Max Weber can be classified in the bureaucratic management branch of the classical school. Heidelberg.2.While both Owen and Babbage were important nineteenth century management innovators. Not only did they seek to develop a comprehensive theory of management. their efforts lacked the central tenets of a theory of management. Within the classical school there are the bureaucratic management. and the right of those elevated to authority to issue commands (legal .

2.authority). Weber believes it is necessary for managers to maintain an impersonal relationship with the employees. A well-defined hierarchy. job assignments.2. 6. Impersonal relationships between managers and employees. facilitating control and order throughout the organization. 4. and promotions.1 Max Weber (1864-1920) Weber believes all bureaucracies have certain characteristics: 1.2. 3. Weber feels it is absolutely essential for a bureaucracy to maintain complete files regarding all its activities. This provides a clear chain of command. Competence should be the basis for all decisions made in hiring. Competence. All positions within a bureaucracy are structured in a way permitting the higher positions to supervise and control the lower positions. This fosters ability and merit as the primary characteristics of a bureaucratic organization. 5. Rules and regulations. This necessitates granting each employee the requisite authority to complete all such tasks. Records. All organizational activities should be rationalized to the point where standard operating procedures are developed to provide certainty and facilitate coordination. Division of labor and specialization. All responsibilities in an organization are rationalized to the point where each employee will have the necessary expertise to master a particular task. This advances an accurate organizational "memory" where accurate and complete documents will be available concerning all bureaucratic actions and determinations. This organizational atmosphere would also facilitate rational evaluation of employee outcomes where personal prejudice would not be a dominant consideration.1. . 3. Weber postulated that the rules and regulations of a bureaucracy serve to insulate its members against the possibility of personal favoritism. because of the need to have a rational decision making process rather than one influenced by favoritism and personal prejudice. This would eliminate personal bias and the significance of "knowing someone" in central personnel decisions.

The emphasis on impersonality can lead to personal frustration for its employees while generating red tape to reinforce previously authorized decisions. 3. As the demands of society become even more complex. The major representatives of this school of thought are Frederick Winslow Taylor and Frank and Lillian Gilbreth. Scientific management principles are meant to be applied by managers in a very specific fashion. both by its employees and the public.2. The primary criticism of Weber's theory of bureaucracy is the overwhelming acceptance of authority as its central tenet. and as a machinist. The scientific management approach emphasized empirical research for developing a comprehensive management solution.Weber's bureaucratic principles have been widely adopted throughout the world. Unwittingly. This inevitably fosters an unrelenting need to develop additional authority causing the bureaucracy to be unresponsive and lack effectiveness. A fundamental implication of scientific management is the manager is primarily responsible for increasing an organization's productivity. as a passionless instrument for responding to human needs. Yet.2. Weber helped to foster an extremely negative attitude toward the concept of bureaucracy.2 Scientific Management Another branch of the classical school of management is the scientific management approach. there are many critics. This has major implications for the American economy in the face of a consistent lack of competitive productivity and GNP growth. The need to divide labor and specialize can foster feelings of employee alienation and estrangement. the need increases for interpersonal communication and sharing between employees of the resulting organizations. conjuring up images of a highly inflexible and inhumane organization. 3. The bureaucracy is increasingly viewed.2.1 Frederick Winslow Taylor (1856-1915) Frederick Taylor is known as the "father of scientific management. He later joined the Midvale .2. often working at cross purposes with the needs of those it is supposed to serve." Taylor began work at the age of 18 as an apprentice to a pattern maker.2.

He sought to establish a clear division of labor between management and employees. During this period at the steel mill. and tested what he called the "task system. Taylor developed four principles of scientific management: 1. the entrepreneurs in Taylor's day. and providing incentives to employees through the piece rate system. and eventually progressing into scientific management. training and developing the employee. but had a positive duty to supervise them and organize their work activities to eliminate what Taylor called "the natural tendency of workers to soldier" on the job." later developing into the Taylor System. 4. Managers should assume the responsibility for selecting. Management should become involved with the work of their employees as much as possible. While Taylor assumed there was an unquestioned necessity to supervise employees. Scientific management consisted of a system for supervising employees. 2. were not only superior intellectually to the average employee. Managers should fully cooperate with employees to insure the proper application of the scientific management method. 3. It rested on the manager's superior ability and responsibility to apply systematic knowledge to the organizational work setting. he performed exhaustive experiments on worker productivity. improving work methods.Steel Company as a laborer rising in eight years to chief engineer. a paper Taylor originally prepared for presentation to the American Society of Mechanical Engineers was published as The Principles of Scientific Management. materials needed. A scientific management methodology is to be developed. the time it required. he also sought the best . and the work sequence. His experiments involved determining the best way of performing each work operation. In 1911. Taylor's task management methodology rests on a fundamental belief that management. Taylor positioned scientific management as the best management approach for achieving productivity increases.

Gilbreth was interested in developing the one best way of doing work. His system later became known as "speed work" which was achieved by eliminating unnecessary motions. providing organizational theory an aura of science. is either inapplicable in today's computerized assembly lines. the piece rate system.2 Frank (1868-1924) and Lillian Gilbreth (1878-1972) The Gilbreths were strong advocates of scientific management. isolating 17 basic work motions. Additionally. 3. Scientific management led to time and motion studies.2. working with his wife. as well as in Europe. other areas of his methodology have proven to be flawed.way of performing a job as well as to provide financial incentives for increased productivity by paying employees by the piece through the piece rate system. or is compromised by management continually raising the quota. efficiency experts and others spreading the gospel. Lillian. which they termed therbligs (therblig is Gilbreth spelled backwards). while not increasing the amount of effort needed. all too often. Frank.2. In particular. After extensive studies of bricklayers. subsequently became heavily involved in time and motion studies. Frank Gilbreth made his first management studies of bricklayers. Taylor's optimistic belief that study of the organization through his scientific method would provide the answers necessary to resolve the most difficult productivity problems is extremely important to contemporary management. However. Taylor's insistence on close supervision flies in the face of all contemporary organizational research demonstrating close supervision is counterproductive. He is the first to point out that it is management's primary responsibility to make an organization productive. . he was able to reduce the motions in bricklaying from 18 1/2 to 4. Their studies of work included the use of a cyclograph.2. whereby the time and motions of a worker could be carefully studied. This produced an almost 170% increase in the bricklayer's productivity. Taylor's Principles became enormously popular in America. a form of stereoscopic movie camera.

It is applicable to all work including technical applications. 3. and personal authority created through individual personality.2. His first writing on administration. As a result of his management experience. Division of work.3.2. The book became prominent in the United States after a second English translation appeared in 1949 under the title General and Industrial Management. Division of Work. Fayol strongly believed management theories could be developed and taught to others. management. determined by its application.1 Henri Fayol (1841-1925) As a result of his long management career. Commentary-Fourchambault Company. 2. chronicling life under the scientific management method of their parents. There are limitations to specialization.2. His entire working career was spent with a mining company. Authority creates responsibility. was published in 1916 in the Bulletin of the Society of Mineral Industries and later appeared as a book. The Gilbreths were immortalized by two of their children who wrote Cheaper by the Dozen. 3. and experience.Lillian Gilbreth published one of the earliest works on the psychological study of management. He is credited with turning the company around from a threatened bankruptcy into a strong financial position by the time of his retirement at age 77. where he rose from an apprentice to General Manager in 1888. The Psychology of Management. Authority and responsibility. intelligence.3 Administrative Management She was also the earliest female pioneer in scientific Henri Fayol belongs to the administrative management branch of the classical school.2. It focuses effort while maximizing employee productivity. Distinction must be made between a manager's official authority deriving from office. Authority is the right to give orders and the power to exact obedience. Fayol developed fourteen management principles: 1. produces more and better work with the same effort. which are . remaining there until his retirement in 1918. specialization. Administration Industrielle et Generale.

Creating work teams and using extensive face-to-face verbal communication encourages this. 8. 10. 14. A chain of authority exists from the highest organizational authority to the lowest ranks. Unity of direction. 4. Salaries are the price of services rendered by employees. Management insecurity produces undesirable consequences. Generally the managerial personnel of prosperous concerns is stable. Initiative. It should be fair and provide satisfaction both to the employee and employer. it is essential to maintain a stable work force. The desire for equity and equality of treatment are aspirations to be taken into account in dealing with employees. Obedience and respect between a firm and its employees based on clear and fair agreements are absolutely essential to the functioning of any organization. An employee should receive orders from only one superior. The rate of remuneration is dependent on the value of the services rendered as determined by the employment market. 12. 5. The optimum degree of centralization varies according to the dynamics of each organization.3. Teamwork is fundamentally important to an organization. 6. zeal and energy on the part of employees are augmented by initiative. using the "gang plank" principle of direct communication between employees can be extremely expeditious and increase the effectiveness of organizational communication. Remuneration of Personnel. Equity. The interests of one employee or group of employees are subordinate to the interests and goals of the organization and cannot prevail over it. . Organizational activities must have one central authority and one plan of action. Unity of command. Good discipline requires managers to apply sanctions whenever violations become apparent. Scalar chain. 13. Discipline. At all levels of the organizational ladder. Centralization. 7. equity is a combination of kindliness and justice. The objective of centralization is the best utilization of personnel. Organizational order for materials and personnel is essential. In order to attain the maximum productivity of personnel. that of unsuccessful ones is unstable. Order. 11. The right materials and the right employees are necessary for each organizational function and activity. Employees cannot adapt to dual command. Subordination of Individual Interest to General Interest. 9. Stability of Tenure of Personnel. While needless departure from the chain of command should be discouraged. Esprit de Corps. Thinking out a plan and ensuring its success is an extremely strong motivator. In organizations.

Fayol's six primary functions of management. Barnard feels organizational communication flows from the bottom to the top. . where orders are accepted without undue question.3.2. 3. they are still widely used in management theory. The Functions of the Executive. The employees accept the communication as being consistent with the organization's purposes.2.While subsequent organizational research has created controversy over many of Fayol's principles. The employees must understand the communication. Commanding. 4. 5. Forecasting.2 Chester Barnard (1886-1961) Another strong member of the administrative management school is Chester Barnard. He is credited with developing the acceptance theory of management. Organizing. After giving a series of lectures on management. Barnard published his only book. 3. Contrary to Weber beliefs that communication flows from the top of the organization to the bottom. Coordinating. emphasizing the willingness of people to accept those having authority to act. He was also very active professionally. including acting as the head of the Rockefeller Foundation. which go hand in hand with the Principles. The employees feel their actions will be consistent with the needs and desires of the other employees. He feels the manager's ability to exercise authority is strongly determined by the employee's "zone of indifference". Barnard feels organizations are communication systems. 2. 3. are as follows: 1. He states there are four factors affecting the willingness of employees to accept authority: 1. Planning. Basically. Barnard led a highly successful management career rising to the position of the President of New Jersey Bell Telephone Company. He feels it is particularly important for managers to develop a sense of common purpose where a willingness to cooperate is strongly encouraged. in 1938. 2.

The behavioral school was a natural outgrowth of this revolutionary management experiment. Its theorists include Mary Parker Follett and Herbert Simon as well as numerous psychologists who turned from studying individual behavior to organizational behavior. She strongly believes in the inherent problem solving ability of people working in groups.e. perform necessary and vital communication functions for the overall organization.3.. i. they failed to fulfill one of their earliest goals. Follett received an education in political science and pursued a professional career as a social worker where she became absorbed in workplace related issues. 3.4.3 The Behavioral Movement As management research continued in the twentieth century.1 Mary Parker Follett (1868-1933) One of the earliest pioneers in the behavioral movement was Mary Parker Follett. positions him as a bridge to the behavioral school of management. Management principles developed during the classical period were simply not useful in dealing with many management situations and could not explain the behavior of individual employees. the Hawthorne experiment. Barnard also feels informal organizations. Barnard's sympathy for and understanding of employee needs in the dynamics of the organizational communication process. In short. rigorously applied classical management theory only to reveal its shortcomings.2. an experiment. however. within formal organizations. questions were increasingly raised regarding the interactions and motivations of the individual in organizations.2. This is consistent with his belief that the executive's main organizational function is acting as a channel of communication and maintaining the organization in operation. many of whose early members were his contemporaries. 3. The employees feel they are mentally and physically able to carry out the order from the higher authority. providing management tools for dealing with organizational personnel challenges. The principles of classical management theory were helpful in placing management objectives in the perspective of an organization. classical theory ignored employee motivation and behavior. Curiously. Rather than assuming classical .

Follett asserts power should be cooperatively shared for the purpose of resolving conflict. The third alternative is to compromise and close the window half way. Originally designed as illumination studies to determine the relationship between lighting and productivity. an individual is sitting in a library on a warm spring day near an open window and a second person decides to share the table but wishes to close the window to avoid the draft. which will not satisfy either person. She is best known for her integration method of conflict resolution as opposed to the three choices she cites of domination. Two additional series of tests. followed the illumination tests including a mass interviewing programme. In this case. both parties to the conflict are happy. Creative conflict resolution involves cooperatively working with others to devise inventive new ideas often providing strong interpersonal benefits. Now one person could try and dominate the other and force the windows to either be open or closed leaving the other person unhappy. If. A second alternative is for one person to simply submit to the wishes of the other. in our example. 3. but be very unhappy. the initial tests were sponsored by the National Research Council (NRC) of the National Academy of Sciences.2 The Hawthorne Experiments The Hawthorne experiments were groundbreaking studies in human relations that were conducted between 1924 and 1932 at Western Electric Company's Hawthorne Works in Chicago. we have the basis of a conflict. the newcomer may voluntarily agree to sit in another part of the library adjusting the window according to his/her preference. as the issue has been resolved according to their own desires.2. compromise or voluntary submission by one side over another.management's strongly hierarchical position of power in organizations. Follett states the best way to handle this situation is to resolve the issue jointly through "creative conflict resolution" where.3. The studies assumed the label Hawthorne experiments or studies from the location of the Western Electric plant. the relay-assembly tests and the bank-wiring tests. In 1927 a research team from the Harvard Business School was invited to join the studies after the illumination tests drew unanticipated results. for example. Concluded .

It was concluded that factors other than light were also important. Part III . were the basis for the school of human relations. However. Part IV . A worker's pay depended on the performance of the group as a whole. changes were made in working hours. with emphasis on a new interpretation of group behavior. and social pressure was used to achieve the standards of output.Bank Wiring Observation Room Experiment (1932) A group of 14 male workers in the bank wiring room were placed under observation for six months.000 employees were interviewed over a period of three years to find out reasons for increased productivity. The brightness of the light was increased and decreased to find out the effect on the productivity of the test group. etc. Part II . Output increased in both the control rooms. the productivity increased even when the level of illumination was decreased. . Surprisingly. rest periods. etc. From time to time. the Hawthorne studies. participation in decision-making.Illumination Experiments (1924-27) These experiments were performed to find out the effect of different levels of illumination (lighting) on productivity of labor. The researchers thought that the efficient workers would put pressure on the less efficient workers to complete the work. it was found that the group established its own standards of output.Relay Assembly Test Room Study (1927-1929) Under these test two small groups of six female telephone relay assemblers were selected. Each group was kept in separate rooms. It was concluded that social relationship among workers. lunch breaks. It was concluded that productivity can be increased if workers are allowed to talk freely about matters that are important to them.Mass Interviewing Programme (1928-1930) 21.by 1932. Part I . They were allowed to choose their own rest periods and to give suggestions. had a greater effect on productivity than working conditions.

 Special attention and freedom to express their views will improve the performance of the workers. when they believe that the management is interested in their welfare. Financial incentives alone cannot increase the performance. Only good physical working conditions are not enough to increase productivity. Social and Psychological needs must also be satisfied in order to increase productivity. led to a deeper consideration of the needs of the employees and the . Good communication between the superiors and subordinates can improve the relations and the productivity of the subordinates. the study did create a strong theoretical foundation for the human relations view of management. and the criticism of the Classical School by Herbert Simon.   The informal relations among workers influence the workers' behavior and performance more than the formal relations in the organization.Conclusions of Hawthorne Studies / Experiments   The conclusions derived from the Hawthorne Studies were as follows :The social and psychological factors are responsible for workers' productivity and job satisfaction. 3. While the result of the Hawthorne studies failed to answer the specific question of the relation between illumination and worker productivity. their performance will improve.4 Human Relations Movement The work of Mary Parker Follett. the Hawthorne experiments. Employees will perform better if they are allowed to participate in decision-making affecting their interests. This is the origin of the term Hawthorne Effect describing the special attention researchers give to a study's subjects and the impact it has on its findings. Essentially the experimenters became a part of the study and influenced its outcome. When employees are treated with respect and dignity.     Employees will also work more efficiently.2.

human needs are never completely satisfied. An individual must develop self-confidence. The belongingness and love needs. then the belongingness and love needs emerge as primary motivators. stability. The esteem needs. it no longer is a motivator. To reach successive levels of the hierarchy required the satisfaction of the lower level needs: 1. Safety needs. Maslow believes the needs hierarchy can be classified into five specific groups. Maslow's theory of human needs has three assumptions. Third. needs can be classified according to a hierarchical structure of importance from the lowest to highest. once a need is satisfied. protection. 3.2. such as thirst. and freedom from fear. The individual will strive to establish meaningful relationships with Deprivation of the belongingness and love need will result in significant others. fame and glory. Abraham Maslow was the first psychologist to develop a theory of motivation based upon a consideration of human needs. 4. Once the physical and safety are satisfied and no longer are motivators. consistent with Maslow's theory of motivation. they become primary motivators. 2. human behavior is purposeful and is motivated by need satisfaction. significant personality maladjustment. Otherwise. 3. A normal state exists for an individual to have all of these needs generally satisfied.4. In order to do this. satisfaction of the self-esteem needs. Maslow (1908-1970) Receiving his doctorate in psychology.    First. The two major organizational theorists in the human relations movement are Abraham H.1 Abraham H.role of management as a provider for these needs. Physiological needs. However. These needs become acute and predominant if any or all of these needs are unsatisfied. This achieves . reputation. it is essential to the individual to have adequacy from achieving mastery and competence leading to the achievement of status. These needs include the need for basic security. Maslow and Douglas McGregor. Second. Maslow groups all physical needs necessary for maintaining basic human wellbeing into this category.

. Theory X. What a man can be. a poet must write . 3. One type of manager. Maslow's hierarchy of needs theory helps the manager to visualize employee motivation. A musician must make music. has a negative view of employees assuming they are lazy.2 Douglas McGregor (1906-1964) McGregor is the other major theorist associated with the Human Relations school of management.5... untrustworthy and incapable of assuming responsibility while the other type of manager.2. It helps in understanding the motivations and needs employees have and the requirement to satisfy basic needs in order to achieve higher-level motivation. assumes employees are trustworthy and capable of assuming responsibility having high levels of motivation. an artist must paint. McGregor believes there are two basic kinds of managers. Theory Y. Assuming all of the previous needs in the hierarchy are satisfied. a "new discontent and restlessness will soon develop. he must be.. McGregor's main theoretical assumptions are . The need for self-actualization.4.

the average employee will seek and accept responsibility.2. THEORY Y 1. Since employees do not like working. Comparable personal rewards are important for employee commitment to achieving work goals. they have to be coerced. Employees normally do not like to work and will try to avoid it.1 Renesis Likert Two of these researchers are Renesis Likert and While being the director of the Institute of Human Relations at Ann Arbor. Under favorable conditions. 2. Michigan. As such. 3.5 Behavioral Research Models A great deal of behavioral research has been done on organizations attempting to delineate the best supervisory management models. The average employee is lazy. Likert conducted a series of empirical studies on the differences between good and bad supervisors defined on the basis of high and low productivity. Mcgregor's Theory X and Y are appealing to managers and dramatically demonstrate the divergence in management viewpoints toward employees.2. 5.THEORY X 1. Employees can be innovative in solving organizational problems. Work is as natural as play and therefore people desire to work. Employees are responsible for accomplishing their own work objectives. in many different organizations where a scale of feelings is . His research is based on employee interviews. Theory X and Y have been extremely helpful in promoting management understanding of supervisory styles and employee motivational assumptions. directed and threatened with punishment to motivate them to work. 2.5. shuns responsibility. and principally desires security. Most organizations utilize only a small proportion of their employees' abilities. is not ambitious. 3. Frederick Herzberg. 4. controlled. 6. 3. in separate departments. needs direction.

where . regarding employee attitudes toward their supervisors. managers have the primary decision making responsibility and employees in a System 2 organization must act cautiously. job security. salary. Based on his research.2. System 1 utilizes a supervisory system based primarily on fear and punishment. This was correlated with their productivity. Herzberg terms these factors hygiene factors or dissatisfies.i This is termed the democratic model. In System 2 organizations. This results in an authoritarian supervisory system where employees are usually not consulted concerning major decisions. The research reveals that the work itself. Likert states. 3. the more an organization's management approximates the System 4 model. the more productive it will be. supervisory methods. The research objective was to determine work situations where the subjects feel highly satisfied and motivated as opposed to those where the reverse is true. Herzberg terms these factors satisfiers or motivators. and the general company management climate. and achievement. are the primary motivators. Likert developed a four level managerial classification system. the Likert scale. From this research Herzberg developed the motivation-hygiene model of management. However. as well as recognition for the achievement. rewards are used to motivate employees with some freedom being allowed to comment on organizational decisions. System 3 organizations are more open to employee consultation regarding the managerial decision making process and overt managerial threats are avoided. Likert states the System 4 organization is the most open and participative and is the ideal state managers should strive to achieve. Factors having a negative motivation impact on the research subjects are the working conditions.5.developed.2 Frederick Herzberg Herzberg performed additional empirical research on 200 engineers and accountants. The model states that employee motivation is achieved with challenging enjoyable work.

The job itself is the motivator . McClelland David C. The affiliation motivation is similar to Maslow's belongingness and love need where people relate to others on a social basis. organizational behavior as a scientific field of inquiry has made considerable strides. 3. whereas hygiene factors can make an employee unhappy and dissatisfied. competence and power. such as poor lighting. but cannot motivate him/her.6 Toward Organizational Behavior McClelland Most scholars would agree that organizational behavior began to emerge as a mature field of study in the late 1950s and early 1960s.5. His achievement motivation theory is important for managers seeking understanding of employee motivational patterns. affiliation.achievement. Based upon this research.2. McClelland developed an achievement motivation theory consisting of four sets of needs: achievement. and advancement are encouraged and recognized.ii Achievement motivation is a need people have to succeed through overcoming challenges.2.3 David C. That period saw the field’s evolution from the simple assumptions and behavioral models of the human religionists to the concepts and methodologies of a scientific discipline. and poor supervisory relations. responsibility. The competence need is the desire to accomplish a job well done. and the power motivation is the need to control others and make a difference in the outcome of a given situation. although there have been occasional steps . determines the motivational state of the subjects from these descriptions. McClelland believes people have strong needs. serve as dissatisfiers. The difference between motivators and hygiene factors is that motivators cause an employee to develop his/her own internal motivations. ventilation. McClelland of Harvard University performed research on motivation patterns. low salaries. Most notably this was done with the Thematic Apperception Test (TAT) where an individual writes a descriptive analysis of their individual reactions from unstructured pictures. growth. The environmental or hygiene factors. poor working conditions. 3. Since that time.

is perhaps the greatest contributor to the field of organizational behavior. whereas organizational psychologists specifically address the behavior of people in organizational settings. 3. But themes of interest to political . Sociologists study social systems such as families. the field clearly overlaps with areas of sociology that focus on the organization as a social system.1 Contemporary organizational behavior Contemporary organizational behavior has two fundamental characteristics that warrant special discussion. such as individual differences and motivation. and organizations. Psychologists study human behavior. Anthropology is concerned with the interactions between people and their environments. occupational classes. it draws from a variety of fields and attempts to describe behavior (as opposed to prescribing how behavior can be changed in consistent and predictable ways).6. Because a major concern of organizational behavior is the study of organization structures. Many of the ideas discussed in this book have emerged over the past two decades. Political science also interests organizational behaviorists. are also central to studying of organizational behavior. Psychology.2. We usually think of political science as the study of political systems such as governments. It also generally accepts a set of concepts to define its domain. Characteristics of the field Researchers and managers who use concepts and ideas from organizational behavior must recognize that it has an interdisciplinary focus and a descriptive nature. We turn now to contemporary organizational behavior. Many of the concepts that interest psychologists. that is. especially their cultural environment. especially organizational psychology. An Interdisciplinary Focus In many ways. Culture is major influence on the structure of organizations as well as on the behavior of individual people within organizations.backward as well. Sociology also has had a major impact on the field of organizational behavior. organizational behavior synthesizes several other fields of study.

cannot predict with certainty that changing a specific set of workplace variables will improve an individual employee’s performance by a certain amount. political behavior. Economists study the production. Also. human resource planning and forecasting. Organizational behaviorists share the economist’s interest of topics such as labor market dynamics. the behavior of interest groups. decision making. or nonexistent in other settings. Increasing research is showing that controlling the causes and consequences of stress in and out of organizational settings is important for the well-being of the individual as well as that of the organization. work flow analysis and design. productivity. Nevertheless. conflict. specifically in the area of stress. productivity measurement. At best. we may not know if better working conditions lead to more satisfaction. These are also major areas of interest in organizational behavior. job design.scientists include how and why people acquire power. . distribution. the observed relationship between satisfaction and perceptions of working conditions may be considerably stronger. Most recently. Industrial engineering in particular has long been concerned with work measurement. or if both satisfaction and perceptions of working conditions are actually related through other variables. For instance. and cost-benefit analysis. weaker. Engineering has also influenced the field of organizational behavior. medicine has influenced organizational behavior in connection with study of human behavior at work. and coalition formation. employee satisfaction and individual perceptions of working conditions correlate positively. The theories and concepts of the field. theories can suggest that certain general concepts or variables tend to be related to one another in particular settings. research might indicate that in one organization. for example. Obviously these areas are also relevant to organizational behavior. A Descriptive Nature A primary goal of organizational behavior is to describe relationships between two or more behavioral variables. and labor relations. if more satisfied people see their jobs differently from unsatisfied people. and consumption of goods and services.

reliable. acquire most of their material possessions from organizations. the interactional view. Because most readers of this study are either present of future managers. and the lack of valid. we adopt a managerial perspective throughout. Because behavioral processes pervade most managerial functions and roles.2 Contextual Perspectives on Organizational Behavior Several contextual perspectives have increasingly influenced organizational behavior: the systems approach and contingency perspectives. and because the work of organizations is done primarily by people. we should still take a few moments to emphasize certain points. and people as people.6. 3. or investors.Organizational behavior is descriptive for several reasons: the immaturity of the field. The Importance of Organizational Behavior Although the importance of organizational behavior may be clear. Many of our activities are regulated by organizations called governments. people as resources. employees. And most adults spend the better part of their lives working in organizations. Many of the concepts and theories we discuss in the chapters that follow reflect . the knowledge and understanding gained from the field can help managers in significant ways. For example. we may adopt any one of several roles or identities. we have every reason to be concerned about how and why those organizations function. Organizational behavior can greatly clarify the factors that affect how managers manage. Because organizations influence our lives so powerfully. The value of organizational behavior is that it isolates important aspects of the manager’s job and offers specific perspectives on the human side of management: people as organizations. People are born and educated in organizations.2. and accepted definitions and measures. and the popular-press perspectives. the complexities inherent in studying human behavior. and die as members of organizations. we can be consumers. It is the field’s job to describe the complex human context in which managers’ work and to define the problems associated with that realm. Whether the field will ever be able to make definitive predictions and prescriptions is still an open question. In our relationships with organizations. But the value of studying organizational behavior nonetheless is firmly established.

2. or the theory of systems. these inputs are combined and transformed to create products such as gasoline and motor oil. was first developed in the physical sciences. In addition to having on-the-job contacts with customers and suppliers. employee behaviors. As outputs. Through complex refining and other processes. As an example. Finally. and dividends.2. stockholder investment. such as management. financial. when they occur. Human input includes the effort put forth by oil field workers. sales projections.these perspectives. and similar analyses. office staff. The organization then combines and transforms the inputs and returns them to the environment in the form of products or services. the system receives feedback from the environment regarding these outputs. A system is an interrelated set of elements that function as a whole. employees live in the community and participate in a variety of activities away from the workplace. these products are sold to the consuming public. information about the company and its operations is also . Finally. Finally. and additional information.1 The Systems Perspective The systems perspective. losses. and other people employed by the company. Financial input includes the money received from oil and gas sales. and so forth. Material input includes pipelines.6. 3. we can apply systems theory to an oil company. profits or losses. but it has been extended to other areas. the company receives information input from forecasts about future oil supplies. hit the environment by reducing stockholders’ incomes. they represent basic points of view that influence much of our contemporary thinking about behavior in organizations. An organizational system receives four kinds of inputs form its environment: material. Profits from operations are fed back into the environment through taxes. investments. human. geological surveys on potential drilling sites. and the machinery used to refine petroleum. Each is concerned with interrelationship among organizational elements and between organizational and environmental elements. In varying degrees. and informational. at least some part of this behavior is influenced by their experiences as workers. refinery workers. crude oil. The systems and contingency perspectives take related viewpoints on organizations and how they function.

it suggests that whenever a manager encounters a certain problem or situation (such as motivating employees to work harder). First presented in terms of interactional psychology. Interactionalism Interactionalism is a relatively new approach to understanding behavior in organizational settings. For example. interactionalism attempts to explain how people select. The contingency approach. For example. most situations and outcomes are contingent. managers searched for universal answers to organizational questions. consumers many buy more or less gasoline depending on the quality and price of the product. 3. They discovered that in organizations. More specifically. The environment. and change various situations .released into the environment. Eventually. early leadership researchers tried to discover forms of leadership behavior that would always increase employee satisfaction and effort. acknowledges several other variables that alter the direct relationship. appropriate managerial actions in any given situation depend on elements of that situation. The universal approach.2. In the early days of management studies. a universal approach exists that will lead to the desired outcome (such as raising pay or increasing autonomy). They sought prescriptions that could be applied to any organization under any conditions. on the other hand.2. responds to these outputs and influences future inputs. shown at the top of the exhibit presumes a direct cause-and-effect linkage between variables. interpret. in turn. For example. the relationship between any two variables is likely to be influenced by other variables.6. that is. this view assumes that individual behavior results from a continuous and multidirectional interaction between the characteristics of a person and characteristics of a situation. researchers realized that the complexities of human behavior and organizational settings make universal conclusions virtually impossible.2 The Contingency Perspective Another useful viewpoint for understanding behavior in organizations comes from the contingency perspective. and banks may be more or less willing to lend the company money based on financial information about the company. In other words. however.

group relationship. Both positions are probably incomplete: employee attitudes may influence job perception. In addition. and vice versa. attitudes. Another set of studies may propose that attitudes influence how people perceive their jobs in the first place. Team work of group relationship is also an important aspect in OB. and this varies from personality. and other psychological and management aspects. emotion and feelings. While some of the evidence provided by current research is open to a variety of different interpretations. culture is considered as one of the most important aspects that must be considered in any working relationship in any organization and business. One of this is the historical development of OB as well as the different theories that are related to it. they have focused popular attention on many of the important issues and problems confronting business today. Furthermore. it is less prominent in the chapters that follow than the systems and contingency theories. There are many aspects and information that are related with it. one set of research studies may suggest that job changes will lead to improved employee attitudes. As a result. motivation. The said . Using all of the resources that have been mentioned in this paper. there are different and new information that had helped me to understand more regarding OB. For example. such as motivation. managers of the 1990s better appreciate both their problems and their prospects in working toward more effective organizational practices in the years to come. but these perceptions may in turn influence future attitudes. Because interactionalism is a fairly recent contribution to the field. the interactional view appears to offer many promising ideas for future development in the field. However. Nonetheless. personality and other psychological aspect of an individual can greatly impact the physical and emotional working environment. 4 Concluding Thoughts Organizational Behavior is one of the most talked-about issues in terms of management and human resource. there are other important and depth information that are needed to be considered in order to fully understand the OB.The interactional view implies that simple cause-and-effect descriptions of organizational phenomena are not enough.

This can be done by managing effective communication channel and medium that can help to lessen the different negative impact of cultural differences.aspect is important due to the growing number of multinational companies and multi-cultural companies. Communication plays an important role in managing the organizational behavior. .

com/theory-x-theory-y-reference/theory-x-theory-y http://slidesandnotes.com/pages/article/henri-fayol.The Bibliography          http://www.com/~donclark/hrd/history/xy.html http://www.enotes.com/publications/471001.org/knowledge-hub/business-studies/henry-fayolsprinciples-of-management.apexcpe.htm http://management-guru.com/hawthorne-experiments-reference/hawthorne-experiments http://kalyan-city.blogspot.html http://www.publishyourarticles.nwlink.blogspot.pdf .in/2010/06/scientific-management-principles-fw-taylor/ http://www.com/2011/02/theories-of-motivation-abrahammaslows.html http://www.mindtools.com/2011/04/hawthorne-studies-experiments-4-parts.enotes.html http://www.

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