People and Organization


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People and Organization

  2. 2. Early The scientific The Social The Modernmanagement management Person Era Era thought Era
  3. 3. BACKGROUND The Greek philosopher Plato wrote about the essence of leadership. Aristotle addressed the topic of persuasive communication. Adam Smith advocated a new form of organizational structure based on the division of labor. One hundred years later, German sociologist Max Weber wrote about rational organizations and initiated discussion of charismatic leadership. Frederick Winslow Taylor introduced the systematic use of goal setting and rewards to motivate employees. In the 1920s, Australian-born Harvard professor Elton Mayo and his colleagues conducted productivity studies at Western Electrics Hawthorne plant in the United States. Though it traces its roots back to Max Weber and earlier, organizational studies began as an academic discipline with the advent of scientific management in the 1890s, with Taylorism representing the peak of this movement.. After the First World War, the focus of organizational studies shifted to how human factors and psychology affected organizations, a transformation propelled by the identification of the Hawthorne Effect. This Human Relations Movement focused on teams, motivation, and the actualization of the goals of individuals within organizations.Prominent early scholars included Chester Barnard, Henri Fayol, Frederick Herzberg, Abraham Maslow, David McClelland, and Victor Vroom.
  4. 4. BACKGROUND The thoughts of Mary Parker Follett (1868-1933) have significant implications for leadership. According to Wren (2005), Follett’s theory spans five critical areas of the leadership and management spheres; the group, conflict, business organization, authority and power and task leadership. With regard to the group, Follett believed that the essence of group principle is to bring out individual differences and integrate them into unity” (Wren, 2005. )
  5. 5.  Eduard C. Lindeman (1885-1953) Jacob L. Moreno (1889-1974) Kurt Lewin (1890-1947) Abraham H. Maslow (1908-1970) Joseph N. Scanlon (1899-1956) James F. Lincoln (1883-1965) Charles P. McCormick (1876-1970) William Foote Whyte (1914-2000) Leadership Studies at Michigan and Ohio State with Rensis Likert (1903-1981), Ralph Stogdill (1904-1978) and Carroll L. Shartle (1903-1993). Herbert A Simon (1916-2001)
  6. 6. BACKGROUND Organizational behavior is a modern form of business management study and research that examines how a company operates based on its hierarchy, employee relationships and leadership styles. It draws from many different disciplines, especially studies of social and psychological aspects of human behavior. Organizational behavior has led to the emergence of many theories of management and business techniques. As the field has grown, analysts have found it convenient to separate the discipline into both micro- and macro- sections in order to differentiate study.
  7. 7. PEOPLE AT WORK Micro View Micro Micro-organizational behavioral studies focus on individual and group dynamics within an organization. In other words, how employees act alone or in teams. On an individual basis, much of micro-organizational behavior is concerned with rewarding employees in ways that work best for them, and studying their personality types to determine where they might be a good fit. Mentorship and coaching also fall in the personal section Micro Changes  The purpose of organizational behavioral studies is to change businesses in ways that make a difference, improving performance and ultimately profits. On the micro level, this has a lot to do with interpersonal relations. Businesses seek ways to coach employees to learn more skills and advance in the company.
  8. 8. Developing Constructs for group analysis Eduard C. Lindeman (1885-1953) Interest in the study of group appears to have been a product Social Gospel.  1921, Federal council of the churches of Christ in America approved a national conferences on the “meaning of christianity for human relationship, with special attention to industry…[and to] effectively stimulate group thinking. ( The Inquiry )  Early study of group behavior in member interaction, participation, and attitudes. Eduaqd C. Lindeman Origin of phrase “participant-observer” : The role of an observer planted inside the group to corroborate the findings of an outside observer. Lindeman was a friend of Mary Parker Follett and they appear to have influenced each other.
  9. 9. Developing Constructs for group analysis Jacob L. Moreno (1889-1974)  Doctor of Medicine specialty in psychiatry  Sociometry, an analytical technique to classify individuals into groups that were capable of harmonious relationships. “a process of classification, which is calculated to bring individuals together who are capable of harmonious interpersonal relationship and so create a social group which can function at the maximum efficiency and with a minimum of disruptive tendencies and processes”  Sociometry research has sought to combine work groups such that they would be superior in quality and quantity of work as well as conducive to higher morale for the participants  Moreno classified as  Attraction  Repulsion  Indifference Jacob L Moqeno
  10. 10. Developing Constructs for group analysis  Psychodrama and Sociodrama, formed a basic for role playing techniques and analysis of interpersonal relations.  Psychodrama, a cathartic experience for an individual in a group setting, enabling individuals to release and relieve their innermost doubts, anxieties, and ather disorders.  Sociodrama (outgrowth of psychodrama), the basis of role playing. A dramatic play in which several individuals act out assigned roles for the purpose of studying and remedying problems in group or collective relationships. Sociogqam Sociodqama
  11. 11. Developing Constructs for group analysis Kurt Lewin(1890-1947)  Lewin studied at the university of Berlin under Max Wertheimer and Wolfgang Kohler (founders of Gestalt Movement)  Group Dynamic, the way groups and individuals act and react to changing circumstances. A group was a never at a steady state of equilibrium, but was in a continuos process of mutual adaptation that Lewin called ‘quasi-stationary equilibrium”.  Field Theory, influenced by Gestalt psychology, Lewin developed a theory that emphasized the importance of individual personalities, interpersonal conflict and situational variables. Lewins Field Theory proposed that behavior is the result of the individual and the environment.  The Lewin, Lippitt, and White Study (Leadership),this early study was very influential and established three major leadership styles. In the study, groups of schoolchildren were assigned to one of three groups with an authoritarian, democratic or laissez-fair leader. The children were then led in an arts and crafts project. Researchers then observed the behavior of children in response to the different styles of leadership Kuqt
  12. 12. Developing Constructs for group analysis1. Authoritarian Leadership (Autocratic) Also known as autocratic leaders provide clear expectations for what,when and how things should be done. There is also a clear division between the leader and the followers. Authoritarian leaders make decisions independently with little or no input from the rest of the group. Authoritarian leadership is best applied to situations where there is little time for group decision-making or where the leader is the most knowledgeable member of the group.2. Participative Leadership (Democratic) is generally the most effective leadership style. Democratic leaders offer guidance to group members, but they also participate in the group and allow input from other group members. Participative leaders encourage group members to participate, but retain the final say over the decision-making process. Group members feel engaged in the process and are more motivated and creative.3. Delegative (Laissez-Faire) Leadership Researchers found that children under delegative leadership, were the least productive of all three groups. The children in this group also made more demands on the leader, showed little cooperation and were unable to work independently. Delegative leaders offer little or no guidance to group members and leave decision- making up to group members.
  13. 13. Developing Constructs for group analysis  Change Theory, Lewin found that changes were more easily induced through group participation and discussion than through lectures and individual methods.  The idea that change was facilitated when people felt that they had been involved in decision to change rather than when they were simply told to change.  His three step model are:  “unfreezing” the present level  “moving” to the new level  “freezing” (reinforcing) goup life on the new level  Lewin’s three step procedure provide a foundation for future ‘ action research’.  1945, Lewin founded Research Center for Group Dynamics at the MIT. Where Rensis Likert and others would further the study of subordinate participation in decision making and use of group to achieve change in behavior  Briefly,Lindeman, Moreno and Lewin brought new focus to the group rather than the individual, The effect of the group on the individual.
  14. 14. Changing Assumptions about People at Work  People and Motivation Motivation  Job Enlargement Job Enlargement  Participation in management Participation  Leadership : Combining Leadership people and production
  15. 15. PEOPLE And MOTIVATION Abraham H. Maslow (1908 – 1970)  Human beings have certain needs that they try to satisfy. Need is one of the oldest notion about motovation.  From the work of Henry Murray, he built the most widely recognized theories of motivation. Needs : physiological, safety, love, esteem and self actualization.  These basic needs are related to each other and were arranged in hierarchy of “ prepotency”
  16. 16. PEOPLE And MOTIVATION  Maslow proposed that psychological should be study of the whole person, those values and choices that people make that can be good, honorable, creative heroic, and so on. His “humanistic psychology” was a revolt against behaviorism leading to the Third Force in psychology.  His contact with industry led to the book Eupsychian Management.  Maslow focused on evolutionary, dynamic qualities of human needs, human relation thinking emphasized the social, belonging needs. Abqaham H MAslow
  17. 17. PEOPLE And MOTIVATION Joseph N. Scanlon(1899 – 1956)  Union official and eventually a professor at MIT.  Adhering to the Mayo thesis that industry must promote collaboration and social solidarity, individual incentive plan begin to receive less prominence while group plans received more.  A Scanlon plan, Suggestion plan and production committees that sought methods and means to reduce labor costs.  A union-management productivity plan whereby groups of workers got bonuses for proposing savings in labor costs  There were no individual awards for suggestions, Group oriented  Not profit sharing. James F. Lincoln (1883– 1965)  head of LINCOLN ELECTRIC CO.  Incentive Management, an incentives based confirmation of appeals to the individuals.  Intelligent selfishness, individual ambition. People were not primarily motivated by money, nor by security, but by recognition for their skill.  Lincoln’s plan sought to develop employees to their highest ability and then to reward them with bonus for their contributions to the succes of company.
  18. 18. JOB ENLARGEMENT  1944, IBM Corporation began to combine the jobs of two or more machine operators into one job. It is called job enlargement.  Found that this practice led to higher product quality, less idle time for workers and machine, “enriched the job” for workers by introducing variety and responsibility.  Research in the 1940’s by Walker and Guest indicated some possible improvements if jobs were designed to lengthen (broaden) the work cycle.  This concerned combining jobs rather than increasing job depth.  Job enlargement served to relieve monotomy, enhance skill levels and increase the worker’s feeling of commitment to the total product. Joseph
  19. 19. PARTICIPATION IN MANAGEMENT William B .Given Jr. (1886– 1968)  Industrialists who sought to apply human relations philosophy to their organization.  Using the catchphrase ‘bottom up management’ : people working together. – “ to release the thinking and encourage the initiative off all those down from the bottom up”  Involved widespread delegation of responsibility and authority, considerable managerial freedom in decision making, free interchange of ideas al all levels and corollary acceptance of the fact that managers grow by having a freedom to fail. Charles P. McCormick(1876– 1970)  Industrialists who sought to apply human relations philosophy to their organization.  The McCormick multiple management plan used a participation as a training and motivational method.  Junior Boards Directors were created (“multiple management”), form of selection of 17 promising younger managers from various departments.  To improve communications channel among the junior managers, involve the junior in decision making, manager development, and coordination through participation.
  20. 20. PARTICIPATION IN MANAGEMENT  Participation was viewed as democracy in action, opening communication channel, diffusing authority, motivating people to give a greater commitment of themselves to organizational goals.
  21. 21. LEADERSHIP : PEOPLE And PRODUCTION  Rensis Likert (1908-1981)  University of Michigan Studies, an empirical studies in a variety organizations in order to determine the organizational structure and and the method of leadership.  Found a two dimensional orientation:  An employee orientation : stressing interpersonal relationship on the job.  A production orientation : focusing on producing and was focused on technical aspect of the job.RensisLikeqt  Carroll L. Shartle & Ralph M. Stogdill  Ohio State University studies, a series of investigation that would result in the development of a situational approach to leadership.
  22. 22. LEADERSHIP : PEOPLE And PRODUCTION Carroll L. Shartle & Ralph M. Stogdill  Found a two dimensional view of leadership:  Initiating Structure dimension : in which the leader acted to further the works objective of the groups  Consideration dimension : in which the emphasis was on the needs of the followers and on interpersonal relationships.  Even thought this both of studies used different terms, each develop two-by-two matrix of leader behaviors.  Task Oriented : Production oriented and initiating structure dimension.  Interpersonal relation oriented : Employee oriented and consideration dimension.  The two dimension did not appear mutually exclusive, that is why a leader can combine them.  In brief the micro facet of people and organization may be characterized as a generation and extension of significant research to organizational behavior.  People in group, social motivation, redesigned organizational tasks, participation in decision making and leadership – The way of combining people and production.
  23. 23. PEOPLE AT WORK Macro View Macro  Macro-organizational behavioral research steps back and looks at an organization as a whole. It studies how organizations move in markets, and how their strategies regarding employees and leadership affect the performance of the entire organization. This is the part of the field that may recommend a flat organization with few levels of management over a complex bureaucracy or a business model using inspirational leadership instead of more aggressive programs. Macro-Changes  Macro-changes affect the organization as a whole and are more related toward policy or business formation. For instance, diversity is a common macro-level topic, as are job equality and ethical behavior toward clients and employees alike. These are affected by the companys own standards, government regulations and how the company creates and transmits decisions.
  24. 24. THE SEARCH FOR FUSION William F. Whyte  Restaurant study: A study of the interaction of the social system with technical-work system.(A status on the job)  Supervisors initiate work for subordinate, there were conflict were inevitable when a lower status person initiated work for higher status one.  The conflict mediated by placing orders on spindle, so the initiation of works was depersonalized.  Participatory action research  The use of knowledge of social science to improve performance as well as human relation by : 1. Understanding the nature and functioning of social system 2. Developing teamwork through incentives that fostered collaboration rather than conflict.  In brief Whyte’s work was a contribution to the analysis of the interaction of the work system with social system in a effort to reduce interpersonal frictions that arose when these two mets.
  25. 25. THE SEARCH FOR FUSION E. Wight Bakke (1903-1971)  The "bonds" of organization ( Company and Union) 1. The functional specifications or the organization’s definitions of jobs and departmental relations 2. The status system bond, which placed people in a vertical hierarchy of authority and deference which respect to direction 3. A communication system, which accomplished the transmission of essential information 4. The reward and penalty system, which provide incentive and controls in order to achieve organizational objective 5. The organization charter bond, which included all those elements that contributed to giving the organization a “character” or a quality of entity  Through analysis of these bonds, there were understanding in interaction of the formal and informal systems of relationship  the "fusion" process involving organizational position and personal views of standing or status.
  26. 26. NEW TOOLS FOR MACRO ANALYSIS Herbert A. Simon(1916-2001) The Administrative Behavior was influenced by Barnard.  Simon criticizes Fayols platitudes and Taylors "economic man" assumptions, proposing the "administrative man" . En economic man is who pursues his self-interests but often doesnt know what they are, is aware of only some of the possible decision alternatives, and is willing to settle for an adequate solution than continue looking for an optimal one .  Two key concepts, both attributed to Simon, are related to the theory of administrative behavior. The first is the concept of bounded rationality. He postulated that individuals were limited to grasp the present and anticipate the future there were cognitive Herbert A. Simon limitations of decision makers.  The second concept related to the theory of administrative behaviour is satisficing. Satisficing is a behaviour which attempts to achieve at least some minimum level of a particular variable, but which does not strive to achieve its maximum possible value.
  27. 27. NEW TOOLS FOR MACRO ANALYSIS George Homans He was influenced by Pareto. His study of relationships in work and social systems found dimensions such as:  Activities, What was formally required of member or behavior that informally emerged.  Interactions, any transaction between two or more group member that coul be either organizationally prescribe or informally originated  Sentiments, the elusive nature of feelings.
  28. 28. SUMMARY Evolving management thought had two phases in this period:  Micro level inquiry into sociometry, group dynamics, participation, leadership and motivation  Macro level search for models to explain interactions between the formal and informal organization. Human relation additions to concepts of management include:  An increasing emphasis on the social  Enlarging jobs to counteract overspecialization  Less emphasis on hierarchy, more on participation  Recognition of the informal organization  Developing the means to study the interaction of the formal and informal organization. The group was the process, the social person the product. Management was exhorted to turns its attention to the social side of behavior, to get people involved and to thereby couple worker satisfaction and higher productivity.