Organisational Behaviour (MGMT20001) – SUMMER 2021

Lecture – Module 2

Contrasting Management
Approaches
This
Module
Meet the Team…
Meet the Team …

Subject Co-Ordinator:
• Joeri Mol, PhD
• Consultation: by prior
appointment (email at least
48 hours in advance)
• jmol@unimelb.edu.au
Student Resources
• Lecture Slides (all content examinable)

• Textbook McShane et al. Organisational

Behaviour 6th Edition (all content
examinable)

• Required Readings (all content

examinable)

• Cases (macro cases examinable)

• Supplementary Readings (not

examinable)
OB Educational Model

Learn key concepts

1. Lecture Learn/Apply
(1 hour)
Learn/Apply
2. Online Tutorial (1
hour)
3. In-Class Tutorial
(1 hour)

Active listening Integration of new Time to share, develop and

and individual knowledge to arrive at a articulate ideas in small
reflection personal position groups and to reach
informed by theory consensus
Important Reminders
• Tutorial Changes: All students must finalise all changes to tutorial
allocations by this Friday January 8th by 5PM latest!
• Attendance Marks: You will need to attend your allocated tutorial to
receive attendance marks
• Monday January 25th: if session appears in your timetable this is
because we will have no classes on Tuesday 26th . Your catch-up class
will instead will be scheduled on Monday January 25th
• Skill Building Workshop … this Friday: January 8th
Skill Building Session
• Scheduled on at the beginning of the semester
• One of your most valuable resources (provided by the library)
• Very important for both assignment 1 and 2
• Recorded on LMS
• The session is designed to:
• Unpack the Individual Assignment questions
• Writing process
• Research process
• Really worth your time! J
 Skills Building Workshop (Assignment 1)

Day Time Zoom Location

Friday
12:00-1:30pm TBC
January 8th, 2021
 Topic
What is OB
What is Organisational
Behaviour?
 Topic
So What Has Organizational Behaviour Become?
What is
Organisational
Behaviour?
• OB studies the impact of individuals,
groups and social structures on
behaviour within organisations
(chiefly ‘work organisations’)
• Multidisciplinary, e.g., psychology,
sociology, anthropology, political
science, and others
• Involves the use of research-based
evidence to develop understanding
• Seeks to apply the knowledge
generated to improving
management practice and
organisational effectiveness
 Individual Group Organizational
Processes Processes Processes
(micro) (meso) (macro)

Individual Group Organizational

Processes Processes Processes
(micro) (meso) (macro)
Three OB processes
also form the
cornerstones of your
your textbook
(McShane et al. (6th
edition):
- Individual processes
- Team processes
- Organizational
processes
Exhibit 1.5 An integrative model of organisational behaviour
Foundations

Exhibit 1.2 Anchors of organisational behaviour knowledge

 Level of Analysis in OB by Module

MICRO / MESO 2. Contrasting Management Approaches

[Modules 2-7] 3. Perception Attribution & Decision-making
1st 4. Teams and Leadership
half 5. Values, Attitudes, Behaviour
1. Individual Level
6. Motivation
2. Group Level 7. Conflict and Negotiation

MACRO 8. Ethics
[Modules 8-12] 9. Change
2nd 10. Culture
half 11. Communication
3. Organizational Level
12. Power and Politics
 Topic
Why Study OB
Organisations are a defining feature of the modern world

All of us work (or will work) in organisations

We will interact with individuals and groups, within structures, as we

work

Many of us will enter management roles

We need to know how individuals and groups behave if we are to

manage them effectively
Why OB is
OB provides a set of conceptual tools, based on evidence, to help us
work effectively
important
OB is a key employability skill going into the future!
20
The Future
of Work
Are machines
taking over?
• Watch the video
and consider
• Is there a genuine
reason to worry
about your future
job opportunity?
• What jobs are
under threat?
• How are you
securing your future
employability?
Jobs in Finance

Skills Shortages
in 2014
Jobs in Finance

Skills Shortages
in 2030
Jobs in
Professional
Services

Skills Shortages
in 2014
Jobs in
Professional
Services

Skills Shortages
in 2030
 “Three Eras of • Era 1: Mass-production: growth through efficiency
and optimized execution (e.g. Taylor)
Management”
• Era 2: Knowledge-based economy: growth through
best socialization of information (e.g. Mayo)

• Era 3: Empathy: emotional intelligence to align all

stakeholders (e.g. McGrath)

McGrath (2014)

Era 1: Efficiency Era 2: Knowledge Era 3: Empathy

 Topic
Management: A Brief History
 Origins of Organization

Source: Lipnack, J. and Stamps, J. (1994) The Age of the Network: Organizing Principles for the 21st Century. New York: Wiley
 Organizational Behaviour Across the Ages

Source: Lipnack, J. and Stamps, J. (1994) The Age of the Network: Organizing Principles for the 21st Century. New York: Wiley
 Multi-Disciplinary Nature of Organizational Behaviour

Source: Hatch, Mary Jo (1997). Organization Theory: Modern, Symbolic, and Postmodern Perspectives. Oxford: Oxford University Press
 Topic
Principles of Scientific Management
Principles of Scientific
Management
• Frederick Winslow Taylor (1856–1915)
• Devised four principles of “Scientific
Management” based on his experience as an
engineer and manager
• Was lauded and criticized
 Principles of Scientific Management
Taylor devised four principles of “Scientific Management” in 1911 to explain how people
should be managed at work for maximum efficiency:

1. Job Design 2. Human Resource 3. Performance 4. Development of

Management Management Management
Profession

Managers Managers should A division of labour

should design Managers should be should be based on
select, train, teach, and responsible for ensuring
job efficiently, expertise. Managerial
specifying develop employees all work is done
(previously employees authority over workers
precisely every according to their
element of an chose their own work should be based on
specifications. Workers scientific impartiality.
employee’s and trained are paid according to
work. themselves). output.
‘On the Art of Cutting Metals’
(1907)

“In concluding let me say that we are now but on the

threshold of the coming era of true cooperation. The
time is fast going by for the great personal or individual
achievement of any one man standing alone and without
the help of those around him. And the time is coming
when all great things will be done by the cooperation of
many men in which each man performs that function for
which he is best suited, each man preserves his
individuality and is supreme in his particular function,
and each man at the same time loses none of his
originality and proper personal initiative, and yet is
controlled by and must work harmoniously with many
other men.”

~ Frederic Taylor
Modern
Watch a clip and afterwards
Times: consider:
1) Benefits of Taylorism/Fordism
Fixed Workers
& Dedicated 2) Costs of Taylorism/Fordism
Machines
 1.No search for work: work delivered to the next worker
2.Orderly & specific sequence of workflow
The Logics of Mass 3.Tasks broken down in their simplest component
Production This led to the introduction of:
1)Dedicated machines perform only one operation at a time (cutting, drilling, etc)
2)Fixed workers perform standardized work procedures under strict supervision
Success of Fordism
• Production of 2 million
cars/year
• Price of car cut by 2/3
• Created a mass market of cars
• Greatly enhanced mobility,
especially for rural areas
Cost of Fordism

• Workers hated job

• Constant monitoring of workers
• No talking
• No drinking (also outside of job!)
• Many were fired or left
• In 1914, 500 new workers each
(!) day to maintain workforce at
15,000
Enduring Legacy
of Scientific
Management
• The separation of conception and execution
(Managers “think” and workers “do”)
• Standardisation of tasks; deskilling
• The belief that managerial authority is based on
scientific impartiality
• Financial reward is the employee’s main motivator
(Taylor’s idea of the “Trained Gorilla”)
• A “mechanistic” view of the organisation – people
as interchangeable parts; just “cogs in the
machine”
• BUT plays down the psychological & social aspects
of organisation (e.g., job satisfaction, social
affiliation, etc.)
The formal organisation
The informal organization
 Topic
Human Relations School (HRS)
The Development of the
Human Relations School

• Elton Mayo (1880-1949)

• An Australian hero?

• University of Queensland
(1919-1923)

• Harvard Business School

(1926-1947)
Development of the
Human Relations
School
• Believed the “worker
problem” (e.g., dissent,
disobedience, industrial
unrest) was a result of
psychological disturbances
brought about by the
alienating nature of work
• Unlike Karl Marx, who
believed that waged labour
was necessarily alienating
and exploitative, Mayo
sought to improve employee
happiness by making work
more involving and by
recognising its social nature.
HRS: The Hawthorne
Studies
 1. Despite the isolating effects of
HRS: Important standardisation and the
4. Managers should
recognise the impact of
Findings of the increasing technical division of
labor, work remains a group
these informal groups
in exerting an influence
Hawthorne activity
on productivity (e.g.,
Studies 2. As a result of their need for
recognition, security and
“chiselers” and
“ratebusters”)
sense of belonging, workers
will gravitate toward informal 5. Organisations should
groups, whether formal work seek to ensure a good
organisation reflects this or “fit” between informal
not groups and formal work
3. An informal group exercises a structures
strong form of social control
over the work habits and
attitudes of its members
Enduring Legacy of the
Human Relations School

• One of the main

considerations of OB is the
quality of the employee’s
working life
• Importantly, social aspects of
work have a major impact on
a person’s quality of working
life
• Often informal social
networks do not align with
formal organisational
structures, which can lead to
serious problems
 • OB has become increasingly interested in the norms,
Enduring Legacy of the values, and social mores that influence behaviour
• The rise of the “Corporate Culture” movement
Human Relations School • The rise of team work as an attempt to improve quality
of work life and align formal organisational structures
with informal social structures
Summary of the
lecture
• OB is about using research-based evidence to develop our
understanding of human behaviour and to apply this to
management in pursuit of organisational effectiveness,
fairness, and sustainability
• In SM and HR we can see two very different understandings of
what shapes behaviour in organisations and how this should
inform management
• The history of management theory and practice can be seen as
the history of the struggle between these two approaches,
however, this is not an either or situation
• SM and HR have profoundly informed real management
practice and continue to do so
• In this way, OB as it is taught in MGMT20001 will matters to
you in your future careers, whatever you end up doing!
Components of Module 2

Learn key concepts

1. Lecture Learn/Apply
• Contrasting Learn/Apply
Management 2. Online Tutorial
Approaches
3. In-Class Tutorial
Complete the Modules
in Canvas:
• Experiential Activity
• Knowledge Testing
(about these two
• Application of management
Theory approaches)
Lecture:
Additional Resources
• Video and Infographic - Deloitte
• Future of Work Graphic - The
Economist
• ‘Three Eras of Management
McGrath – 2014 HBR – will also be
in ‘Online Readings’
(Recommended Readings) for this
Module