This document provides an overview of organizational behavior and theories of organization. It discusses classical, non-classical, and modern organizational theories. Classical theory views the organization as a machine and employees as parts, focusing on division of labor, departmentalization, coordination, and structure. Non-classical theory focuses on human elements and both formal and informal organization. Modern theory takes a system approach looking at internal and external variables, and contingency approach where organizational design suits particular situations based on factors like environment, technology, size, and people.

1. ORGANIZATIONAL
BEHAVIOUR
By: Sathish Rajamani
Professor – HOD Psychiatric Nursing

2. INTRODUCTION
 Organization is the process of identifying and grouping work to be
performed.
 The process of organization also includes the following:
 Defining
 Delegating responsibilities
 Authority and establishing relationships
On the other hand organization was defined as a set up where
people work together as a team to attain common organizational
goals.

3. THEORIES OF ORGANIZATION
 An organizational theory gives general information about behavioral
patterns in an organization. There are various theories of an
organization which show the behavioural patterns in the organization.
There are enlisted below:
 A. Classical Organization Theory
 B. Non – Classical Organization Theory
 C. Modern Organization Theory

4. CLASSICAL
ORGANIZATIONAL THEORY

5. CLASSICAL THEORY OF ORGANIZATION
 It primarily deals with the anatomy of formal organizations and also
views one as a machine and the employees as parts of the machine.
 Therefore, in order to increase the efficiency of the organization, each
employee working in it must become efficient.

6. CLASSICAL THEORY OF ORGANIZATION
6 Pillars of Classical Organizational Theory

7. 1. DIVISON OF LABOR
In order to obtain a clear specialization in order to
improve the performance of individual workers, the
organization must divide work.

8. 2. DEPARTMENTALIZATION
The organization must group various activities and jobs
into departments. This allows it to minimize costs and
also facilitate administrative control.

9. 3. COORDINATION
The organization must ensure harmony among diverse
functions. This allows it to arrange the group effort in
an orderly manner which provides unity of action while
pursuing a common purpose.

10. 4. SCALAR AND FUNCTIONAL
PROCESSES
A scalar chain is the series of superior-subordinate
relationships from the top to the bottom in an
organization. It facilitates the delegation of authority or
command, communication or feedback, and also
remedial action or decision.

11. 5. STRUCTURE
 Structure is the logical relationship of functions in an
organization. Further, these functions are arranged for
effective objective accomplishment.

12. 5. SPAN OF CONTROL
 This is the number of subordinates that a manager can
effectively supervise..

13. NON – CLASSICAL
ORGANIZATION THEORY

14. NON – CLASSICAL ORGANIZATIONAL
THEORY
 This theory focuses on human beings in the
organization.
Two points were emphasized in this theory
 The organization situation should be viewed in social,
economical and in technical terms.
 Importance of formal and informal forms of the
organization.

15. NON – CLASSICAL ORGANIZATIONAL
THEORY
 Non – Classical theory focuses on the decentralized
organization as it is having wider span of control than
the centralized organization.
This theory supports the need for both formal and
informal organization at the same time. Both forms are
independent to each other and help the workers to feel
better.

16. MODERN ORGANIZATIONAL
THEORY

17. MODERN ORGANIZATIONAL THEORY
 This theory emphasis on the conceptual analytical
base, its reliance on the empirical research data and
integrating nature.
This theory has two approaches
 System approach
 Contingency approach

18. MODERN ORGANIZATIONAL THEORY
System approach – This approach studies the organization in its
totality. Both internal and external variables are studies in analyzing
the nature of the organization. Here the organization as a system can
be well understand by understanding various subsystem within it. Each
subsystem may be identified by certain processes, rules and structures
and norms of conduct.

19. MODERN ORGANIZATIONAL THEORY
Contingency approach – It suggests an organizational design which
suits a particular unit. The influence of both external and internal factors
should be considered while forming suitable organizational structure.
This approach suggests the needs, requirements, situations of a particular
concerns should be considered while designing an organizational structure.
The factors which influence an organization may be described as
environment, technology, size of operations and people.