2. Contents
Topics Page No.
What is Organizational Behaviour & Definition 2 - 3
Discipline contributing in Organizational Behaviour 4 - 7
Need & Importance of Organizational Behaviour 8
History of Organizational Behaviour 9 – 21
Challenges and Opportunities of Organizational Behaviour 22 – 28
References 29
14 April 2020Prepared by Anal Mandal 1
3. What is Organizational Behaviour?
Organizational
It is a group of people who are collected to work for a common goal with collective
efforts
Behaviour
It is a verbal or physical response shown by a person as a consequence of the
impact of his/her surroundings
14 April 2020Prepared by Anal Mandal 2
4. Definition of Organisational Behaviour
It is a field of study that investigates the
impact that individuals, groups and
structure have on behaviour within
organization
14 April 2020Prepared by Anal Mandal 3
5. Disciplines contributing to
Organizational Behaviour
Psychology
It is a science that seeks to
measure explain and sometimes
change the behaviour of human as
well as animals
Domains of OB inherited from
Psychology are –
Learning
Motivation
Perception
Personality
Attitude
Job Satisfaction
Work Stress
14 April 2020Prepared by Anal Mandal 4
6. Disciplines contributing to
Organizational Behaviour
Sociology
As Psychology focus on individuals
while sociology studies people in
relation to social environment and
culture
Domains of OB inherited from
Sociology are –
Organizational Culture
Organizational Structure
Power & Politics
Organizational Communication
14 April 2020Prepared by Anal Mandal 5
7. Disciplines contributing to
Organizational Behaviour
Social Sociology
Social Psychology is inherited from
Sociology and Psychology
Social Psychology studies the
influence of people on one
another. It is more oriented
towards group behaviour
Domains of OB inherited from
Social Sociology are –
Group decision making
Communication
Behavioural Change
14 April 2020Prepared by Anal Mandal 6
8. Disciplines contributing to
Organizational Behaviour
Anthropology
It is a field that seeks to study
various societies to learn about
human beings and their activities.
Domains of OB inherited from
Anthropology are –
Cross culture analysis
Organizational Culture
Comparative Values
14 April 2020Prepared by Anal Mandal 7
9. Need and Importance of OB
Skill Development – Abilities and Knowledge of employees
Understanding level of motivation and satisfaction of employees
Helps in increasing efficiency of the organization
To create healthy and ethical environment in the organization
OB helps in utilizing the resources to the optimum level
It helps in predicting behaviour of group and individuals
Overall, it improves the goodwill of the organization
14 April 2020Prepared by Anal Mandal 8
10. History of Organizational Behaviour
Classical View
Bureaucracy
Scientific Management
Administrative
Neoclassical
Human Relations Movement
Chester Barnard
Integrating management theories
Contingency Approach
System
Behavioural approach
Quantitative approach
EARLY MANAGEMENT APPROACHES
MODERN MANAGEMENT APPROACHES
14 April 2020Prepared by Anal Mandal 9
11. Classical Administration Theory
Classical View (Early 1900s-1920)
Bureaucracy:
Max Weber(father of modern sociology)
Strict chain of command, detailed rules, high
specialization, centralized power, and selection and
promotion based on technical competence
14 April 2020Prepared by Anal Mandal 10
12. Classical Administration Theory
Scientific management:
Focusses on worker & machine relationship.
Frederick Taylor(1911)-Father of Scientific Management.
Published- Principles of Scientific Management
Gilberth- “one best way” of doing work
Motion study & time study
Henry Gantt(1861-1919)- Gantt charts
Henry focussed on motivational schemes, leadership and management skills
for an effective industrial organisation
14 April 2020Prepared by Anal Mandal 11
13. Classical Administration Theory
Administrative Management:
Henri Fayol (1941-1924),popularized the concept of the “universality of
management principles”
Father of Modern Management.
Attempts to prescribe the “correct” way to manage an organization and
achieve its goals
High specialization of labour (each dept tended to its own business, and
decision making was centralized)
14 April 2020Prepared by Anal Mandal 12
15. Human Relations Movement
Advocates management styles that are more participative and oriented
towards employee needs
Hawthorne Works of the Western Electric Company; 1924-1932
Initiated as an attempt to investigate how characteristics of the work setting
affect employee fatigue and performance (i.e., lighting)
Found that productivity increased regardless of whether illumination was
raised or lowered
14 April 2020Prepared by Anal Mandal 14
16. Chester Barnard
3 top functions of executives-
Establish and maintain an effective communication system
Hire and retain effective personnel
Motivate those personnel
He gave ‘Acceptance Theory of Authority’
14 April 2020Prepared by Anal Mandal 15
17. Modern Management Approach
System theory
Contingency view
Behavioural approach
Quantitative approach
14 April 2020Prepared by Anal Mandal 16
18. System Approach
Emerged during 1940s and World War-2
System is also an organization just like a human body
It can be defined as “essentially a set or assembly of things interconnection or
interdependent , so as to form a complex unites”
Any degree of change will affect some other system
Firstly applied in the fields of science and engineering system
There are 2 major types of system: 1) Open system 2) Closed system
14 April 2020Prepared by Anal Mandal 17
20. Contingency View(mid 1960s)
Also called Situational approach
Emphasizes the fit b/w organisation process and the characteristic of the
situation
It assumes that managerial behaviour is dependent on wide variety of
elements
14 April 2020Prepared by Anal Mandal 19
21. Behavioural Approach
It is improved and more mature version of the human relations approach
Scientists like Douglas McGregor, Abraham Maslow, Kurt Lewin, Chester
Barnard, Mary Parker Follet etc contributed to this behavioural approach
hence they are called Behavioural scientists
Their contributions helped in understanding OB
14 April 2020Prepared by Anal Mandal 20
22. Quantitative Approach
Also called the management science approach
It gained momentum during 2nd world war to seek solutions to complex
problems in warfare
The scientists engaged for this purpose were known as Operations Research
teams(‘.’ it included construction of mathematical models to simulate the
problem)
14 April 2020Prepared by Anal Mandal 21
23. Challenges and Opportunities for OB
Overseeing movement of jobs to countries with
Low-cost labour
Stimulating Innovation and Change
Working in Networked Organization
Increasing Empowerment
Emergence E-organization
Improving Ethical Behaviour
14 April 2020Prepared by Anal Mandal 22
24. Overseeing movement of jobs to
countries with Low-cost labour
It’s increasingly difficult for managers in advance nation.
In a global economy, jobs tend to flow where lower costs give business a
comparative advantage, through labour group, politicians, and local
community leaders see the exporting of jobs as undermining the job market
at home.
Managers face the difficult task of balancing the interests of their
organization with their responsibilities to the communities in which they
operate.
14 April 2020Prepared by Anal Mandal 23
25. Stimulating Innovation and Change
Today’s successful organizations must foster innovation and master the art of
change, or they’ll become candidates for extinction.
Victory will go to the organizations if that maintain their flexibility,
continually improve their quality, and beat their competition to the
marketplace with a constant stream of innovative product and services.
14 April 2020Prepared by Anal Mandal 24
26. Working in Networked Organization
Network organizations allow people to communicate and work together even
though they may be thousands of miles apart.
The manager’s job is different in a networked organization.
Motivating and leading people and making collaborative decisions online
requires different techniques than when individuals are physically present in
a single location.
14 April 2020Prepared by Anal Mandal 25
27. Increasing Empowerment
If leaders want to tap into the possibilities of an empowerment-based
company, they need to have confidence in employees.
Employees should also be given opportunities to make their own decisions and
successful.
For an empowerment-based organization, rules and policies that interfere
with self-management should be made more soften.
Leaders should also set goals that can inspire people.
14 April 2020Prepared by Anal Mandal 26
28. Emergence E-organization
It refers to the business operations involving electronic mode of transactions.
In this process, the marketing and selling of goods and services are being
carried out over the Internet.
E-business includes developing strategies for running Internet- based
companies, creating integrated supply chains, collaborating with partners to
electronically coordinate design and production, identifying a different kind
of leader to run a ‘virtual’ business, finding skilled people to build and
operate internet and websites, and running the back room or the
administrative side.
Today’s successful organization must focuses on to e- organization
14 April 2020Prepared by Anal Mandal 27
29. Improving Ethical Behaviour
The complexity in business operations is forcing the workforce to face ethical
dilemmas, where they are required to define right and wrong conduct in
order to complete their assigned activities.
A very important organizational challenge relates to ethical behaviours. It is
the duty of today’s managers to create an ethically healthy climate for their
employees, where they can do their work productively and with clean
conscience.
Managers and their organizations are responding to the problem of unethical
behaviour in number of ways. Managers must disclose code of ethics to guide
employees through ethical dilemmas. They can organizing seminars,
workshops, training programs to try to improve ethical behaviour of
employees.
14 April 2020Prepared by Anal Mandal 28