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ORGANIZATIONAL BEHAVIOUR [8 L]

Different Schools of Management Thought: Scientific Management, Administrative Theory, Theory of Bureaucracy, Human relations theory (Elton Mayo). Motivation: Concept, Different theories ( Maslow, ERG, Herzberg ) pose,.

Communication: Purpose, process, barriers to effective communications, Guidelines to make communications effective
Perception: Process, importance, factors influencing perception, Shortcut to judging people-Halo effect, Stereotyping, Projection

1.0 MANAGEMENT
Management is a set of people with some resources for the purpose of attainments of organisational goals in an effective and efficient manner through planning, organising, leading and controlling functions. Organisational resources include men (human resource), money, machines and materials collectively known as 4 Ms. Effective means achieving organisational goals. Efficient means achieving organisational goals with least waste of resources. Goals- a desired future state that an organisation endeavors to reach - Goals provides sense of direction - Goals help focus on efforts - Goals guide plans and decisions - Goals help evaluate and monitor progress

1.1 G R JONES MODEL ON EFFECTIVENESS AND EFFICIENCY


EFFICIENCY

LOW
HIGH E F F E C T I V E N E S S Managers achieve goals but with poor ultilisation of resources Product is over-priced Managers pursue wrong goals and make poor and wrong ultilisation of resources Product is of low quality

HIGH
Managers achieve goals but with good ultilisation of resources Quality product at right price Managers pursue wrong goals but make good ultilisation of resources High quality product but price is not affordable

LOW

2.0 FOUR ESSENTIAL FUNCTIONS OF MANAGEMENT


Organisation functions create a structure of task and authority relationships in functioning of various departments.

2.1 Planning Are well thought set of programmes for achieving the various objectives leading to goals. Lack of Planning can ruin any organisations. Examples .. 2.2 Organising
2.3 Leading Act of motivating people to achieve objectives and goals set by the organisation. It involves shared culture and values, communicating goals to employees, and infusing them with the desire to perform continually at higher levels. Good leaders can raise an organisation to a commanding height. Examples Narayana Murthy, Azim Premji, Bill Gates, Steve Jobs 2.4 Controlling To ensure actual performances at all levels conform to or are better than planned ones, and with best utilisation of resources (men, machines, money and materials). It includes recourses to corrective measures and actions

3. LEVELS OF MANAGERS

Top level managers

Middle level Managers

First line managers

Functions / Departments:- HR, Finance, Technical,Design, Planning, Manufacturing, Marketing,After Sales Service

3.1 MANAGERS INVOLVMENT IN FOUR FUNCTIONS


Planning Organising Leading Controlling

TOP

LEVEL

MIDDLE

LEVEL

FIRST

LEVEL

4.0 DIFFERENT SCHOOLS OF MANAGEMENT THOUGHT


Period Management Theory and Advocator Guiding Principles

1880 to 1940

Scientific Management Theory- Frederick Taylor (USA), Father of Scientific Management; Frank Galbreth and Lillian Galbreth further contributed to this theory

1)Systematic and analytical approach towards industrial problems 2) Application of scientific t, echniques in recruitment, selection, training of workers 3)Scientific study of production methods and time study for finding best way for production 4)Scientific way for division work amongst workmen, supervisors and managers, and finally working out high productivity and efficiency MAJOR AREA OF TAYLOR s COTRIBUTION: METHOD STUDY, MOTION STUDY, TIME STUDY, INCENTIVE SCHEMES. CRITISISM : IGNORED HUMAN ELEMENTS; INCREASED CONFLICT

4.0 DIFFERENT SCHOOLS OF MANAGEMENT THOUGHT

Period

Management Theory and Advocator

Guiding Principles

1890 to 1920: continued till 1970/ 80

Administrative TheoryMax Weber(Germany), Social Scientiest; Theory of Bureaucracy

1)Labour is divided with clear definitions of authority and responsibility 2)Hiererchies of authorities fom from highest level to lowest level of management and each position reports to next higher one 3)Rules and regulations determine and standardise behaviour 4)Adminsitrative acts and decisions are recorded in writing 5)Mangement is separate from ownership

4.0 DIFFERENT SCHOOLS OF MANAGEMENT THOUGHT


Period Management Theory and Advocator Guiding Principles

1916 to 1925: continued till 1980/ 90

PRINCIPLES OF MANAGEMENT by Henry Fayol, enriched Administrative Theory with 12 principles

1)Division of work into discrete tasks and assign specific responsibilities to individuals 2)Authority- delegate authority along with responsibility 3)Discpline: make expectations clear and punish violations 4)Unity of command: each employee assigned to only one supervisor 5)Unity of direction: employee effort to be focused to companys objective 6)Subordination of individual interest to general interest 7)Remuneration; reward efforts systematically 8)Centralisation: Determine relative importance of superior and subordinate roles

4.0 DIFFERENT SCHOOLS OF MANAGEMENT THOUGHT


Period Management Theory and Advocator Guiding Principles (Contd.)

1916 to 1925: continued till 1980/ 90

PRINCIPLES OF MANAGEMENT by Henry Fayol, enriched Administrative Theory with 12 principles

9) Scalar Chain: Follow communication in line with chain of command 10) Order jobs and materials so as to meet organisation objectives 11) Equity: Fair discipline and order, enhance employees commitment 12) Stability and Tenure of Personnel: promote employee loyalty and longevity 13) Initiative: Encourage employee to act of their own in support of organisations directions 14) Esprit de Corps ( Team Sprit and Unity is Strength )- Promote a unity of interest between employees and management

4.0 DIFFERENT SCHOOLS OF MANAGEMENT THOUGHT


Period Management Theory and Advocator Guiding Principles

1920 s To 1990s

Human Relations Approach Or Behavioural Management Theory- Elton Mayo, Professor of Industrial Research, Harvard School of Business

Hawthorne Studies conducted at Western Electric Company, USA plant (1924-32): 1)Illumination study (1924-32)- lighting decreased over successive periods for the experimental group of workmen, kept at constant level for control group; But productivity was rising for both the groups. Conclusion : Poorer lighting did not affect productivity 2) Relay Assembly Room Study (1927-33)Experiment done on a group of 5 assembly workers. Formal supervision by line supervisors were withdrawn, instead the researchers took their positions. A flexi time slots for personal requirement sere accommodated for the workmen. They were also given variations in the methods of payment. Conclusion : Change in supervisory arrangement increased productivity

4.0 DIFFERENT SCHOOLS OF MANAGEMENT THOUGHT


Period Management Theory and Advocator Guiding Principles

1920 s To 1990s

Human Relations Approach Or Behavioural Management Theory- Elton Mayo, Professor of Industrial Research, Harvard School of Business

3) Bank Wiring Room Study (1931-32): One group of 14 men in a standard shop conditions and continuous supervision; The other group in same shop condition but practically with no supervision. One supervisor only playing the role of facilitator noted and provided the workers support requirement. After about 3 weeks, observed the second group performed better in productivity. CONCLUSION: IT LAID THE FOUNDATION OF HUMAN RELATIONS MANAGEMENT IN WORKPLACE; Peoples social and Psychological Behaviour in workplace

4.1 ELTON MAYOS HUMAN RELATIONS APPROACH


Elton Mayos Human Relations Approach came as a turning point in management
thought.

During and consequent upon Hawthornes studies Elton Mayo came up with new
thoughts of management known as Hman Relations Theory which included:

1)

2)

3) 4)

Human factor is important and it plays dominant role in organisational performance. Their social and psychological needs in the workplace can not be ignored Non-economic awards: Workers do not only work for money and monetary incentives, and needed recognition, sense of participation and belonging Social man: Human beings are more responsive to the social forces of the group and find identity through social relationship with others Organisation a Social System: Important relationship is more important than formal structure and relationships

MCGREGOR THEORY ON MOTIVATION: THEORY X AND THEORY Y In his 1960 book, The Human Side of Enterprise, Douglas McGregor proposed two theories by which to view employee motivation: Theory X and Theory Y. Both of these theories begin with the premise that management's role is to assemble the factors of production, including people, for the economic benefit of the firm. Beyond this point, the two theories of management diverge. Theory X Theory X assumes that the average person: Dislikes work and attempts to avoid it. Has no ambition, wants no responsibility, and would rather follow than lead. Is self-centered and therefore does not care about organizational goals. Resists change. Is gullible and not particularly intelligent. Essentially, Theory X assumes that people work only for money and security.

Maslow's Hierarchy of Needs is a "content theory" of motivation" (the other main one is Herzberg's Two Factor Theory). Maslow's theory consisted of two parts: (1) The classification of human needs, and (2) Consideration of how the classes are related to each other

MASLOWs THEORY ON NEED OF HIERARCHY

- A person starts at the bottom of the hierarchy (pyramid) and will initially seek to satisfy basic needs (e.g. food, shelter)
- Once these physiological needs have been satisfied, they are no longer a motivator. the individual moves up to the next level - Safety needs at work could include physical safety (e.g. protective clothing) as well as protection against unemployment, loss of income through sickness etc) - Social needs recognise that most people want to belong to a group. These would include the need for love and belonging (e.g. working with colleague who support you at work, teamwork, communication)

- Esteem needs are about being given recognition for a job well done. They reflect the fact that many people seek the esteem and respect of others. A promotion at work might achieve this - Self-actualisation is about how people think about themselves - this is often measured by the extent of success and/or challenge at work
Maslow's model has great potential appeal in the business world. The message is clear - if management can find out which level each employee has reached, then they can decide on suitable rewards.

PROBLEMS WITH THE MASLOW MODEL


Problems with the Maslow model when real-life working practice is considered:

- Individual behaviour seems to respond to several needs - not just one


- The same need (e.g. the need to interact socially at work) may cause quite different behaviour in different individuals - There is a problem in deciding when a level has actually been "satisfied" - The model ignores the often-observed behaviour of individuals who tolerate low-pay for the promise of future benefits - There is little empirical evidence to support the model. Some critics suggest that Maslow's model is only really relevant to understanding the behaviour of middle-class workers in the UK and the USA (where Maslow undertook his research).

MCGREGOR THEORY ON MOTIVATION: THEORY X AND THEORY Y In his 1960 book, The Human Side of Enterprise, Douglas McGregor proposed two theories by which to view employee motivation: Theory X and Theory Y; Management's role is to assemble the factors of production, including people, for the economic benefit of the firm. Beyond this point, the two theories of management diverge. THEORY X Theory X assumes that the average person: Dislikes work and attempts to avoid it. Has no ambition, wants no responsibility, and would rather follow than lead. Is self-centered and therefore does not care about organizational goals. Resists change. Is gullible and not particularly intelligent. Essentially, Theory X assumes that people work only for money and security.

THEORY Y: makes the following general assumptions:


Work can be as natural as play and rest. People will be self-directed to meet their work objectives if they are committed to them. People will be committed to their objectives if rewards are in place that address higher needs such as self-fulfillment. Under these conditions, people will seek responsibility. Most people commonly have creativity and Under these assumptions, there is an opportunity to align personal goals with organizational goals by using the employee's own quest for fulfillment as the motivator. McGregor recognized that some people may not have reached the level of maturity assumed by Theory Y and therefore may need tighter controls that can be relaxed as the employee develops.

Theory Y Management Implications If Theory Y holds, the firm can motivate its employees in following ways: 1)Decentralization and Delegation - If firms decentralize control and reduce the number of levels of management, each manager will have more subordinates and consequently will be forced to delegate some responsibility and decision making to them. 2)Job Enlargement - Broadening the scope of an employee's job adds variety and opportunities to satisfy ego needs. 3)Participative Management - Consulting employees in the decision making process taps their creative capacity and provides them with some control over their work environment. 4)Performance Appraisals - Having the employee set objectives and participate in the process of evaluating how well they were met.

For further reading refer to hand out in addition to class lecture on

Motivation Communication Perception