management thoughts & organizational behaviour
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management thoughts & organizational behaviour
- 1. MANAGEMENT THOUGHT & ORGANIZATIONAL BEHAVIOR MS. PREETI BHASKAR ASSISTANT PROFESSOR ICFAI BUSINESS SCHOOL , DEHRADUN
- 2. • Definition of management • Approaches to management: Classical, Behavioral, Quantitative • Management principles : Taylor, Weber, Fayol • Hawthorne studies • Fields contributing to organizational behavior • Managers’ roles and functions • Organizational behavior in the context of globalization • Workforce diversity
- 3. Definition and meaning • Organizational behavior (OB) or organizational behavior is "the study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself“ • Organizational Behavior is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations for the purpose of applying such knowledge towards improving an organization's effectiveness.
- 4. Why study Organizational behavior ? • Responding to Economic Pressures • Responding to Globalization • Increased Foreign Assignments • Working with People from Different Cultures • Overseeing Movement of Jobs to Countries with Low-Cost Labor
- 5. The goals of organizational behavior. • The four goals of Organizational behavior are: • To describe systematically how people behave under variety of conditions • To understand why people behave as they do • Predicting future employee behavior • Control at least partially and develop some human activity at work.
- 6. Importance of Organizational behaviour for the managers It helps managers to look at the behavior of individuals within an organization. It aids their understanding of the complexities involved in interpersonal relations, when two people (two coworkers or a superior-subordinate pair) interact. Organizational Behaviour is valuable for examining the dynamics of relationships within small groups, both formal teams and informal groups. When two or more groups need to coordinate their efforts, managers become interested in the intergroup relations that emerge. Organizations can also be viewed and managed as whole systems that have inter organizational relationships.
- 7. Models of Organizational Behavior • Autocratic Model • Custodial Model • Supportive Model • Collegial Model • SOBC Model
- 9. Definition of management • Harold koontz “Management is the art of getting things done through others and with formally organised groups.” • F.W. Taylor “Management is the art of knowing what you want to do and then seeing that they do it in the best and the cheapest manner.” • George R.Terry “Management is a distinct process consisting of planning, organising, actuating and controlling; utilising in each both science and arts, and followed in order to accomplish pre- determined objective.” • Peter Drucker “Management is a multipurpose organ that manage a business and manages managers and manages workers and work.” • Henri Fayol “Management is to forecast, to plan, to organize, to command, to coordinate and control activities of others.”
- 11. Source: Based on F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz, Real Managers (Cambridge, MA: Ballinger, 1988).
- 12. Henry Mintzberg in his classic book, The Nature of Managerial Work, describes a set of ten roles that a manager fills. These roles fall into three categories: Source : https://www.wisdomjobs.com/e-university/principles-of-management-tutorial-293/managerial-roles- 9220.html
- 13. • Conceptual skills • Human skills • Technical skills
- 14. MANAGEMENT PRINCIPLES : 1. TAYLOR'S PRINCIPLES OF SCIENTIFIC MANAGEMENT 2. WEBER'S BUREAUCRATIC APPROACH 3. FAYOL'S PRINCIPLES OF MANAGEMENT: ADMINISTRATIVE THEORY
- 15. 14/06/2018 Organization theories CLASSICAL ORGANIZATION THEORY · Scientific management approach · Weber's bureaucratic approach · Administrative theory. NEOCLASSICAL THEORY MODERN ORGANIZATION THEORY · Systems approach · Socio-technical approach · Contingency or Situational approach
- 16. Classical organization theory Classical organization theories (Taylor, 1947; Weber, 1947; Fayol, 1949) deal with the formal organization and concepts to increase management efficiency. Taylor presented scientific management concepts, Weber gave the bureaucratic approach, and Fayol developed the administrative theory of the organization. They all contributed significantly to the development of classical organization theory. 14/06/2018
- 17. Scientific management approach The scientific management approach is based on the concept of planning of work to achieve efficiency, standardization, specialization and simplification. The approach to increased productivity is through mutual trust between management and workers. Taylor (1947) proposed four principles of scientific management: · science, not rule-of-thumb; · scientific selection of the worker; · management and labour cooperation rather than conflict; and · scientific training of workers.
- 18. Weber's bureaucratic approach Weber's bureaucratic approach considers the organization as a part of broader society. The organization is based on the principles of: · structure; · specialization; · predictability and stability; · rationality; and · democracy.
- 19. Administrative theory : Fayol's principles of management · Division of work (specialization) · Authority and responsibility · Discipline · Unity of command · Unity of direction · Subordination of individual interest · Remuneration of personnel · Centralization · Scalar chain · Order · Equity · Stability of tenure of personnel · Initiative · Esprit de corps The elements of administrative theory (Fayol, 1949) relate to accomplishment of tasks, and include principles of management, the concept of line and staff, committees and functions of management.
- 20. Modern approach Modern theories are based on the concept that the organization is an adaptive system which has to adjust to changes in its environment. Discuss the important characteristics of the modern approach to organizations. Modern theories include the systems approach, the socio- technical approach, and the contingency or situational approach. · Systems viewpoint · Dynamic process of interaction · Multileveled and multidimensional · Multi-motivated · Probabilistic · Multidisciplinary · Descriptive · Multivariable · Adaptive Characteristics of modern approaches to the organization
- 21. Systems approach The systems approach considers the organization as a system composed of a set of inter-related - and thus mutually dependent - sub-systems. Thus the organization consists of components, linking processes and goals COMPONENTS LINKING PROCESSES GOALS OF ORGANIZATION · The individual · The formal and informal organization · Patterns of behaviour · Role perception · The physical environment · Communication · Balance · Decision analysis · Growth · Stability · Interaction
- 22. Socio-technical approach The socio-technical approach considers the organization as composed of a social system, technical system and its environment. These interact among themselves and it is necessary to balance them appropriately for effective functioning of the organization. The socio-technical systems approach is based on the premise that every organization consists of the people, the technical system and the environment. People (the social system) use tools, techniques and knowledge (the technical system) to produce goods or services valued by consumers or users (who are part of the organization's external environment). Therefore, an equilibrium among the social system, the technical system and the environment is necessary to make the organization more effective.
- 23. Contingency or situational approach The contingency or situational approach recognizes that organizational systems are inter-related with their environment and that different environments require different organizational relationships for effective working of the organization. The contingency approach suggests that different environments require different organizational relationships for optimum effectiveness, taking into consideration various social, legal, political, technical and economic factors.
- 25. The Hawthorne plant of General Electric Company, Chicago, was manufacturing telephone system bell. It employed about 30,000 employees at the time of experiments. In respect of material benefits to workers, this was the most progressive company with pension and sickness benefits and other recreational facilities, there was great deal of dissatisfaction among the workers and productivity was not up to the mark. After the utter failure of an investigation conducted by efficiency experts, in 1924, the company asked for the assistance form the national academy of sciences to investigate the problems of low productivity. A team was constituted led by Elton Mayo (psychologist), Whitehead and Roethlisberger , William Dickson. The researchers set out to study the relationship between productivity and physical working conditions.
- 26. • Illumination Experiment • Relay Assembly Test Experiments • Relay Assembly Room #2 • Mica Splitting Test Group • Plant Interview Group • Bank Wiring Observation Group
- 27. • 1924-1927 • Funded by General Electric • Conducted by The National Research Council (NRC) of the National Academy of Sciences with engineers from MIT • Measured Light Intensity vs. Worker Output • Result : - Higher worker productivity and satisfaction at all light levels - Worker productivity was stopped with the light levels reached moonlight intensity. • Conclusions: - Light intensity has no conclusive effect on output - Productivity has a psychological component • Concept of “Hawthorne Effect” was created
- 28. • 1927-1929 • Experiments were conducted by Elton Mayo • Manipulated factors of production to measure effect on output: - Pay Incentives (Each Girls pay was based on the other 5 in the group) - Length of Work Day & Work Week (5pm, 4:30 pm, 4pm) - Use of Rest Periods (Two 5 minutes break) - Company Sponsored Meals (Morning Coffee & soup along with sandwich) • Results: - Higher output and greater employee satisfaction • Conclusions: - Positive effects even with negative influences - workers’ output will increase as a response to attention - Strong social bonds were created within the test group. Workers are influenced by need for recognition, security and sense of belonging
- 29. • 1928-1929 • Measured effect on output with compensation rates - Special observation room - 1st Session- Relay Assemblers changed from departmental incentive to small group incentive - 2nd Session - Adjusted back to large group incentive • Results: - Small group incentives resulted in highest sustained level of production - 112% over standard output base - Output dropped to 96.2% of base in 2nd session • Conclusion: - Pay relevant to output but not the only factor
- 30. • 1928-1931 • Measured output with changes to work conditions only: - Special Observation Room - Length of Work Day - Use of Rest Periods - Workers stayed on established Piece-rate compensation • Result: - Productivity increased by 15% over standard output base • Conclusions: - Productivity is affected by non-pay considerations - Social dynamics are a basis of worker performance
- 31. • Conducted 20,000 interviews. • Objective was to explore information, which could be used to improve supervisory training. • Initially used the method of Direct Questioning and changed to Non Directive. • Results - Merely giving an opportunity to talk and express grievances would increase the morale. - Complaints were symptoms of deep-rooted disturbances. Social groups created big impact on work. -Workers are governed by experience obtained from both inside and outside the company. -The worker was satisfied/dissatisfied depending upon how he regarded his social status in the company. -The worker was satisfied/dissatisfied depending upon how he regarded his social status in the company. - Production was restricted by workers regardless all financial incentives offered as group .
- 32. • 1931-1932 • Limited changes to work conditions - Segregated work area - No Management Visits - Supervision would remain the same - Observer would record data only - no interaction with workers • Small group pay incentive • Result: - No appreciable changes in output • Conclusions: - Preexisting performance norms - Group dictated production standards - Systemic Soldiering - Work Group protection from management changes.
- 34. • Psychology is the science that seeks to measure, explain, and sometimes change the behaviour of humans and other animals. • Sociology: Whereas psychologists focus on the individual, sociologists study the social system in which individuals fill their roles; that is, sociology studies people in relation to other human beings. • Social psychology is an area within psychology, but it blends concepts from psychology and sociology. It focuses on the influence of people on one another. One of the major areas receiving considerable investigation from social psychologists has been change--how to implement it and how to reduce barriers to its acceptance. processes. • Anthropology is the study of societies to learn about human beings and their activities. Anthropologists’ work on cultures and environments, for instance, has helped us understand differences in fundamental values, attitudes, and behaviour between people in different countries and within different organizations. • Political science studies the behaviour of individuals and groups within a political environment. Specific topics of concern include structuring of conflict, allocation of power, and the manipulation of power for individual self-interest.
- 36. Definition “Workforce diversity is a workforce consisting of a broad mix of workers from different racial and ethnic background of different ages and genders, and of different domestic and national cultures.” “Workforce diversity means that the organizations are becoming more heterogeneous mix of people in terms of gender, age, ethnicity and sexual orientation.”
- 37. Elements of Diversity Age Gender Ethnicity Race Physical Ability Sexual Orientation Physical Characteristics Income Education Marital Status Religious Beliefs Geographic Location Parental Status Personality Type
- 38. Reasons for the emergence of diversity Changing demographic structure of the workforce Government , legislation & lawsuits alleging discrimination Enhance competitiveness of firms Increase globalization of firms Recognition and desire for diverse viewpoints
- 39. Benefits of Workplace Diversity Increased adaptability Variety of viewpoints Improves corporate culture Easier recruitment of employees Increases creativity Access to overseas markets Reduction in skill shortages Improves client relations Increases productivity Maximizes brand identity Responsive service delivery and enhanced staff skills
- 40. Challenges of Diversity in the Workplace Communication Resistance to change Implementation of diversity in the workplace policies Successful Management of Diversity in the Workplace
- 41. • Managing Diversity is defined has the “planning and implementing organizational systems and practices to manage people so that the potential advantages of diversity are maximized while its potential disadvantages are minimized” Managing Diversity
- 42. Managing Diversity in Workplace Creation of family friendly workplace Providing diversity training to employees Developing mentoring programs for employees Implementation of diversity in the workplace plan Foster an attitude of openness in your organization Promote diversity in leadership positions
- 43. Approaches to Managing Diversity Individual Approaches Learning Empathy Organizational Approaches Testing Mentoring Training http://www.studylecturenotes.com/management-sciences/34-general-topics/48-individual-and-organizational-approaches-to- managing-diversity
Editor's Notes
- Responding to Economic Pressures When times are bad, though, managersare on the front lines with employees who must be fired, who are asked tomake do with less, and who worry about their futures. The difference between good and bad management can be the difference between profit and loss or,ultimately,between survival and failure. In good times, understanding how to reward, satisfy, and retain employees is at a premium.In bad times, issues like stress, decision making, and coping come to the fore. Responding to Globalization Organizations are no longer constrained by national borders all major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin Mexico, and both Mercedes and BMW in South Africa. The world has become a global village. In the process, the manager’s job haschanged.all major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin Mexico, and both Mercedes and BMW in South Africa. The world has become a global village. In the process, the manager’s job haschanged.All major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin Mexico, and both Mercedes and BMW in South Africa The world has become a global village. In the process, the manager’s job has changed. Increased Foreign Assignments If you’re a manager and you are transferred to your employer’s subsidiary in another country, you have to manage a workforce having different needs, aspirations, and attitudes. Working with People from Different Cultures To work effectively with people from different cultures, you need to understand how their culture, geography, and religion have shaped them and how to adapt your management style to their differences. Overseeing Movement of Jobs to Countries with Low-Cost Labor In a global economy, jobs tend to flow where lower costs give businesses a comparative advantage. It’s not by chance that many in the United States wear clothes made in China, work on computers whose microchips came from Taiwan, and watch movies filmed in Canada.
- Responding to Economic Pressures When times are bad, though, managersare on the front lines with employees who must be fired, who are asked tomake do with less, and who worry about their futures. The difference between good and bad management can be the difference between profit and loss or,ultimately,between survival and failure. In good times, understanding how to reward, satisfy, and retain employees is at a premium.In bad times, issues like stress, decision making, and coping come to the fore. Responding to Globalization Organizations are no longer constrained by national borders all major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin Mexico, and both Mercedes and BMW in South Africa. The world has become a global village. In the process, the manager’s job haschanged.all major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin Mexico, and both Mercedes and BMW in South Africa. The world has become a global village. In the process, the manager’s job haschanged.All major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin Mexico, and both Mercedes and BMW in South Africa The world has become a global village. In the process, the manager’s job has changed. Increased Foreign Assignments If you’re a manager and you are transferred to your employer’s subsidiary in another country, you have to manage a workforce having different needs, aspirations, and attitudes. Working with People from Different Cultures To work effectively with people from different cultures, you need to understand how their culture, geography, and religion have shaped them and how to adapt your management style to their differences. Overseeing Movement of Jobs to Countries with Low-Cost Labor In a global economy, jobs tend to flow where lower costs give businesses a comparative advantage. It’s not by chance that many in the United States wear clothes made in China, work on computers whose microchips came from Taiwan, and watch movies filmed in Canada.
- Responding to Economic Pressures When times are bad, though, managersare on the front lines with employees who must be fired, who are asked tomake do with less, and who worry about their futures. The difference between good and bad management can be the difference between profit and loss or,ultimately,between survival and failure. In good times, understanding how to reward, satisfy, and retain employees is at a premium.In bad times, issues like stress, decision making, and coping come to the fore. Responding to Globalization Organizations are no longer constrained by national borders all major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin Mexico, and both Mercedes and BMW in South Africa. The world has become a global village. In the process, the manager’s job haschanged.all major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin Mexico, and both Mercedes and BMW in South Africa. The world has become a global village. In the process, the manager’s job haschanged.All major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin Mexico, and both Mercedes and BMW in South Africa The world has become a global village. In the process, the manager’s job has changed. Increased Foreign Assignments If you’re a manager and you are transferred to your employer’s subsidiary in another country, you have to manage a workforce having different needs, aspirations, and attitudes. Working with People from Different Cultures To work effectively with people from different cultures, you need to understand how their culture, geography, and religion have shaped them and how to adapt your management style to their differences. Overseeing Movement of Jobs to Countries with Low-Cost Labor In a global economy, jobs tend to flow where lower costs give businesses a comparative advantage. It’s not by chance that many in the United States wear clothes made in China, work on computers whose microchips came from Taiwan, and watch movies filmed in Canada.
- Responding to Economic Pressures When times are bad, though, managersare on the front lines with employees who must be fired, who are asked tomake do with less, and who worry about their futures. The difference between good and bad management can be the difference between profit and loss or,ultimately,between survival and failure. In good times, understanding how to reward, satisfy, and retain employees is at a premium.In bad times, issues like stress, decision making, and coping come to the fore. Responding to Globalization Organizations are no longer constrained by national borders all major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin Mexico, and both Mercedes and BMW in South Africa. The world has become a global village. In the process, the manager’s job haschanged.all major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin Mexico, and both Mercedes and BMW in South Africa. The world has become a global village. In the process, the manager’s job haschanged.All major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin Mexico, and both Mercedes and BMW in South Africa The world has become a global village. In the process, the manager’s job has changed. Increased Foreign Assignments If you’re a manager and you are transferred to your employer’s subsidiary in another country, you have to manage a workforce having different needs, aspirations, and attitudes. Working with People from Different Cultures To work effectively with people from different cultures, you need to understand how their culture, geography, and religion have shaped them and how to adapt your management style to their differences. Overseeing Movement of Jobs to Countries with Low-Cost Labor In a global economy, jobs tend to flow where lower costs give businesses a comparative advantage. It’s not by chance that many in the United States wear clothes made in China, work on computers whose microchips came from Taiwan, and watch movies filmed in Canada.
- Conceptual skills is the ability to analyze complex information. It enables managers to process information about the internal/external environment of the organization and determine its implications. Top level managers need to have strong conceptual skills if they are to effectively accomplish goals. Human skills is the ability to work effectively with people. It involves motivating and disciplining employees, monitoring performance, providing feedback, improving communication and instructing employees. Human skills are most important for middle managers as these managers must coordinate efforts of the members in his group as well as other work groups within the organization. Technical skills is the knowledge and the ability to use tools, techniques and procedures that are specific to their particular field. Technical skills tend to be most important for first line managers as they must have the knowledge and the "know-how" to ensure that the products and services of their organization are delivered to customer.
- NOTE: To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image.
- Division of Work – When employees are specialized, output can increase because they become increasingly skilled and efficient. Authority – Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility. Discipline – Discipline must be upheld in organizations, but methods for doing so can vary. Unity of Command – Employees should have only one direct supervisor. Unity of Direction – Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated. Subordination of Individual Interests to the General Interest – The interests of one employee should not be allowed to become more important than those of the group. This includes managers. Remuneration – Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation. Centralization – This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance. Scalar Chain – Employees should be aware of where they stand in the organization's hierarchy, or chain of command. Order – The workplace facilities must be clean, tidy and safe for employees. Everything should have its place. Equity – Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate. Stability of Tenure of Personnel – Managers should strive to minimize employee turnover. Personnel planning should be a priority. Initiative – Employees should be given the necessary level of freedom to create and carry out plans. Esprit de Corps – Organizations should strive to promote team spirit and unity.
- i) Components There are five basic, interdependent parts of the organizing system, namely: · the individual, · the formal and informal organization, · patterns of behaviour emerging from role demands of the organization, · role comprehension of the individual, and · the physical environment in which individuals work.(ii) Linking processes The different components of an organization are required to operate in an organized and correlated manner. The interaction between them is contingent upon the linking processes, which consist of communication, balance and decision making. · Communication is a means for eliciting action, exerting control and effecting coordination to link decision centres in the system in a composite form.· Balance is the equilibrium between different parts of the system so that they keep a harmoniously structured relationship with one another. · Decision analysis is also considered to be a linking process in the systems approach. Decisions may be to produce or participate in the system. Decision to produce depends upon the attitude of the individual and the demands of the organization. Decision to participate refers to the individual's decisions to engross themselves in the organization process. That depends on what they get and what they are expected to do in participative decision making. (iii) Goals of organization The goals of an organization may be growth, stability and interaction. Interaction implies how best the members of an organization can interact with one another to their mutual advantage.
- An organization’s success and competitiveness depends upon its ability to embrace diversity and realize the benefits. When organizations actively assess their handling of workplace diversity issues, develop and implement diversity plans, multiple benefits are reported such as: Increased adaptability Organizations employing a diverse workforce can supply a greater variety of solutions to problems in service, sourcing, and allocation of resources. Employees from diverse backgrounds bring individual talents and experiences in suggesting ideas that are flexible in adapting to fluctuating markets and customer demands. Broader service range A diverse collection of skills and experiences (e.g. languages, cultural understanding) allows a company to provide service to customers on a global basis. Variety of viewpoints A diverse workforce that feels comfortable communicating varying points of view provides a larger pool of ideas and experiences. The organization can draw from that pool to meet business strategy needs and the needs of customers more effectively. More effective execution Companies that encourage diversity in the workplace inspire all of their employees to perform to their highest ability. Company-wide strategies can then be executed; resulting in higher productivity, profit, and return on investment
- Challenges of Diversity in the Workplace Taking full advantage of the benefits of diversity in the workplace is not without its challenges. Some of those challenges are: Communication - Perceptual, cultural and language barriers need to be overcome for diversity programs to succeed. Ineffective communication of key objectives results in confusion, lack of teamwork, and low morale. Resistance to change - There are always employees who will refuse to accept the fact that the social and cultural makeup of their workplace is changing. The “we’ve always done it this way” mentality silences new ideas and inhibits progress. Implementation of diversity in the workplace policies - This can be the overriding challenge to all diversity advocates. Armed with the results of employee assessments and research data, they must build and implement a customized strategy to maximize the effects of diversity in the workplace for their particular organization. Successful Management of Diversity in the Workplace - Diversity training alone is not sufficient for your organization’s diversity management plan. A strategy must be created and implemented to create a culture of diversity that permeates every department and function of the organization.
- Ward off change resistance with inclusion. - Involve every employee possible in formulating and executing diversity initiatives in your workplace. Foster an attitude of openness in your organization. - Encourage employees to express their ideas and opinions and attribute a sense of equal value to all. Promote diversity in leadership positions. - This practice provides visibility and realizes the benefits of diversity in the workplace. Utilize diversity training. - Use it as a tool to shape your diversity policy. Launch a customizable employee satisfaction survey that provides comprehensive reporting. - Use the results to build and implement successful diversity in the workplace policies.