Management Thought

and OB

1
 Organizational Behaviour is the
study of what people think, feel,
and do in and around Organizations

 Organizations are groups of people

who work interdependently toward
some purpose
Why Study Organizational
Behavior
Understand
organizational
events

Organizational
Behavior
Research
Influence Predict
organizational organizational
events events
 OB and the Bottom line
 OB knowledge is also important for an organization’s
financial health
 A study of 700 firms calculated that companies applying
performance-based rewards, employee communication,
work-life balance, and other OB ideas have three times the
level of financial success as compared to other companies
without these OB practices
 Warren Buffet and other investment gurus have considered
the organization’s leadership and the quality of employees
as two of the best predictors for a firm’s financial potential

4
The Evolution of Management
Theory
 Taylor’s Theory of Scientific
Management

 Frederick W.Taylor (1856-1915)

 “TheFather of Scientific Management”
 Maximize worker capacity and profits
 PROBLEM: Get employees to work at their
maximum capacity, and avoid “soldiering”
 PRIMARY FOCUS: TASKS
Taylor’s Theory of Scientific Management
 Elements of Scientific Management
 Scientific design of every aspect of every task
 Time and Motion Studies
 Careful selection and training of every task
 Proper remuneration for fast and high-quality work
 Maximize output - increase pay
 Equal division of work and responsibility between worker
and manager
 Underlying Themes
 Managers are intelligent; workers are and should be
ignorant
 Provide opportunities for workers to achieve greater
financial rewards
 Workers are motivated almost solely by wages
 Maximum effort = Higher wages
 Manager is responsible for planning, training, and
evaluating
 Four Steps in Scientific
Management
Step 1 – Develop a science for each element
of the job to replace the old rule-of-thumb
methods
Step 2 – Scientifically select employees and
then train them to do the job as described
in Step1
Step 3 – Supervise employees to make sure
that they follow the prescribed methods for
doing the jobs
Step 4 – Continue to plan the work but use
the workers to actually get the job done
Video clip – Modern Times
 Taylor’s Theory of Scientific Management
 Application in the Modern Workplace
 Assembly Line Plants as Prototypical
Examples
 “Prisoners of Taylorism”
 System of Remuneration (quotas -
commission)
 Re-Design - Reengineering
 Benchmarking
 Data are used to refine, improve, change,
modify, and eliminate organizational
processes
 Lean Manufacturing
 Weber’s Theory of Bureaucracy
 Max Weber (1864-1920)
 German Sociologist
 Theory of Social and Economic
Organization (1947)
 Principles and Elements of Management -
describe an ideal or pure form of
organizational structure (general policy
and specific commands)
 PRIMARY FOCUS: Organizational Structure
 Worker should respect the “right” of
managers to direct activities dictated by
organizational rules and procedures
 More DESCRIPTIVE
 Weber’s
Principles of
Bureaucracy
 Weber’s Theory of Bureaucracy
 Tenets of Bureaucracy
 Rules
 Specified sphere of competence
 Hierarchy
 SpecializedTraining
 Workers do not own technology
 No entitlement to “official position” by
incumbent
 Everything written down
 Maintenance of “ideal type” - bureaucracy
 Weber’s Theory of Bureaucracy

 Concerned with describing the ideal

structure of an organization
 Cornerstone: existence of written rules

 The rational application of written rules

ensures the promotion of legitimate
authority and the effective and
efficient functioning of the
organization.
 Weber’s Theory of Bureaucracy

 Application
in the Modern Workplace
Large organizations guided by
countless rules are bureaucracies
Linked with inefficient, slow-moving
organizations
Organizations have several
characteristics of bureaucracies
 Fayol’s Administrative Theory
 Henri Fayol (1841-1925)
 General and Industrial Management
 Principles and Elements of Management -
how managers should accomplish their
managerial duties
 PRIMARY FOCUS: Management

(Functions of Administration)
 More Respect for Worker than Taylor
 Workers are motivated by more than money
 Equity in worker treatment

 More PRESCRIPTIVE
 Fayol’s Administrative Theory

 Five Elements of
Management -- Managerial
Objectives
 Planning
 Organizing
 Command
 Coordination
 Control
 Keep machine functioning
effectively and efficiently
 Replace quickly and
efficiently any part or
process that did not
contribute to the
objectives
 Fayol’s Administrative Theory
 Fourteen Principles of Management (Tools for
Accomplishing Objectives)
 Division of work - limited set of tasks
 Authority and Responsibility - right to give orders
 Discipline - agreements and sanctions
 Unity of Command - only one supervisor
 Unity of Direction - one manager per set of activities
 Subordination of Individual Interest to General Interest
 Remuneration of Personnel - fair price for services
 Centralization - reduce importance of subordinate’s role
 Scalar Chain - Fayol’s bridge
 Order - effective and efficient operations
 Equity - kindliness and justice
 Stability of Tenure of Personnel - sufficient time for
familiarity
 Initiative - managers should rely on workers’ initiative
 Esprit de corps - “union is strength” “loyal members”
 Fayol’s Administrative Theory
 Positioned communication as a necessary
ingredient to successful management

 Application in the Modern Workplace

 Fayol’s elements of management are recognized
as the main objectives of modern managers
 Planning - more participatory
 Organizing - human relationships and
communication
 Especially applicable for large organizations
(military)
 The Hawthorne Studies
 Series of studies at Western Electric
Company’s Hawthorne Works,
Chicago
 Examined the relation between the
physical environment and
productivity
 Researchers’ findings contradicted
their anticipated results
 The Hawthorne Studies
Concluded that a worker’s
behavior and sentiments were
closely related

Group influences were significant

in affecting individual behavior.
 The Hawthorne Studies
Group standards were highly
effective in establishing
individual worker output.

Money was less a factor in

determining worker output
than were group standards,
sentiments, and security.
Behavioral Management Theory
Behavioral Management
The study of how managers should
behave to motivate employees and
encourage them to perform at high
levels and be committed to the
achievement of organizational goals.
Focuses on the way a manager should
personally manage to motivate
employees
 Behavioral Management Theory
Mary Parker Follett
 Concerned that Taylor ignored the
human side of the organization
Suggested workers help in
analyzing their jobs
If workers have relevant
knowledge of the task, then
they should control the task
Management Science Theory
An approach to
management that
uses rigorous
quantitative
techniques to
maximize the use
of
organizational
resources.
Management Science Theory
 Quantitative management — utilizes linear programming,
modeling, simulation systems and chaos theory.
 Operations management —techniques used to analyze all
.
aspects of the production system
Management Science Theory
 Total Quality
Management (TQM) —
focuses on analyzing
input, conversion, and
output activities to
increase product quality.

 Management
Information Systems
(MIS) — provides
information vital for
effective decision making.
 Organizational Environment
Theory
Organizational Environment –

The set of forces and conditions that

operate beyond an organization’s
boundaries but affect a manager’s
ability to acquire and utilize
resources
 Contingency Theory

There is no one best way to organize”

The idea that the organizational structures and
control systems manager choose depend on—are
contingent on—characteristics of the external
environment in which the organization operates.
Contributing Disciplines to
the OB Field
Contributing Disciplines to
the OB Field (cont’d)
Contributing Disciplines to
the OB Field (cont’d)
Contributing Disciplines to
the OB Field (cont’d)
Contributing Disciplines to
the OB Field (cont’d)
 Summary of Session 1
 Buildings, machines or financial resources by themselves do not make
organizations. Organizations are groups of people who have a common
goal, and are interdependent. OB studies their behaviour in order to be
able to influence them. Successful organizations are those that have
adopted good OB practices
 The worker was initially considered as merely a tool of production, and
the Hawthorne studies marked a shift in the emphasis from a clinical
approach to a Human Relations approach. It was realised that man is a
social animal, and that various social factors also affect the productivity.
These gave rise to other theories. There are also some who maintain
that there is no one way to organize.
 OB has heavily drawn from subjects like psychology, sociology, social
psychology, anthropology, political science etc.
THANK YOU
Management Thought and OB

SESSION 2

H.Ramaseshan Iyer
Management Functions

Planning Organizing

Management
Functions

Controlling Leading
Management Functions
(cont’d)
Management Functions
(cont’d)
Management Functions
(cont’d)
Management Functions
(cont’d)
Mintzberg’s Managerial Roles
Mintzberg’s Managerial Roles
(cont’d)
Mintzberg’s Managerial Roles
(cont’d)
Management Skills
Effective Versus Successful
Managerial Activities
(Luthans)
1.
1.Traditional
Traditionalmanagement
management
• •Decision
Decisionmaking,
making,planning,
planning,and
andcontrolling
controlling
1.
1.Communications
Communications
• •Exchanging
Exchangingroutine
routineinformation
informationand
andprocessing
processing
paperwork
paperwork
1.
1.Human
Humanresource
resourcemanagement
management
• •Motivating,
Motivating,disciplining,
disciplining,managing
managingconflict,
conflict,staffing,
staffing,
and
andtraining
training
1.
1.Networking
Networking
• •Socializing,
Socializing,politicking,
politicking,and
andinteracting
interactingwith
withothers
others
Allocation of Activities by
Time
 Theory X and Theory Y

 Theory X assumes that employees are

basically lazy and dislike work

 Theory Y On the other hand, assumes

that people consider work as natural as
play or rest
 Theory X assumptions
 The average person dislikes work and tries
to avoid it if he can
 They have to be either coerced by
punishment or goaded by means of
financial rewards to make them work
effectively
 The average employee prefers to be given
directions about his work and shies away
from taking greater responsibilities. They
are not
Video Clip on Globalization
 Globalization Defined
“A set of processes that are widening, deepening, and
accelerating the interconnectedness among societies
”(Kegley & Raymond)

“…processes whereby social relations acquire relatively

distanceless or borderless qualities, so that human lives
are increasingly played out in the world
as a single place.” (Jan Aart Scholte)

“…technological, political, economic, and cultural

dimensions that connect individuals, governments,and
firms across national borders.” (Rosa Gomez Dierks)

Globalization as ‘Deterritorialization’

Breakdown of borders of Space and Time

The Start of Globalization
The Destruction of the
Berlin Wall
The walls
come down…

Tim Berners-Lee
…and the (World Wide)
Web goes out.
Death of Distance
Call Centers in India
Diversity Challenges

Fairness
and
Justice

Decision Making
and Flexibility
Performance
 Effectively Managing
a Diverse Workforce

•Securing top-management
commitment to diversity
•Providing diversity training
•Educating employees about
diversity
•Preventing sexual harassment
 Trends and Prospects in OB
 Reduction in the number of middle
management personnel
 Increasing use of computers and ITin
organizations
 Entry of women and minorities in the
workforce
 Cooperation between management and
unions
 Innovative work approaches for special
needs of employees
 Summary of Session 2
 The four major management functions are planning, organizing,
leading and controlling (Fayol)

 Mintzberg has classified 10 managerial roles as interpersonal(3),

informational(3) and decisional (4)

 Managerial skills can broadly be classified as technical, human and

conceptual. As one goes up the ladder, one requires more
conceptual, and less technical skills. However, every one requires
human relations skills to the same degree

 Globalization means greater integration and interconnectedness

among the world’s nations. Technology has been responsible for
shrinking the distances, and more and more companies are
employing persons belonging to different nationalities, posing a
greater challenge of diversity management to today’s managers
THANK YOU
Individual Behaviour in
Organizations

SESSIONS 3 and 4

H.Ramaseshan Iyer
 Human Behaviour
is analogous to a
jigsaw puzzle – just
as puzzles are
different from each
other, no two
individuals are
alike
 Understanding Behaviour as an
Input-Output system
 TheTraditional Perspective
S-R and later S-O-R

 Behaviouralperspective
S-O-B (Here, ‘S” stands for
situation)
Classical Conditioning
Operant Conditioning
 Variables that have an impact

 Employee productivity
 Absenteeism
 Employee turnover
 Job Satisfaction
 Biographical
Characteristics

Age
Gender
Marital Status
Tenure
 Intellectual Abilities
•Number aptitude
•Verbal comprehension
•Perceptual speed
•Inductive reasoning
•Deductive reasoning
•Spatial visualization
•Memory ability
 MARS Model of Individual
Behavior
Role
Perceptions
Values
Personality Motivation
Individual
Perceptions Behavior and
Emotions Results
Ability
Attitudes
Situational
Stress
Factors
 The Ability-Job Fit
o Requirements of the job
Strategy – Select the applicants whose

Competencies best fir the required tasks

o Training

o Redesign the jobs so that

employees are given only tasks

within their capabilities

 Types of Behavior in
Organizations
Task
Performance

Maintaining
Types of Organizational
Work Citizenship
Attendance Work-Related
Behavior
Joining/Staying Counter-
with the Productive
Organization Behaviors
 Organizational Applications

 Lotteries to reduce
absenteeism
 Well pay versus sick
pay
 Training programs
 Mentoring programs
THANK YOU