Video Lectures for MBA

By:
Video.edhole.com
ORGANISATION BEHAVIOUR
Video.edhole.com
ORGANISATION BEHAVIOUR


Organisation Behaviour is concerned with the
study of what people do in an organisation and
how that behaviour affects the performance of the
organisation.
(Robbins: 1998,9)
Video.edhole.com
ORGANISATION BEHAVIOUR
The study of Organisational Behaviour involves:
consideration of the interaction among the formal structure
(organisational context in which the process of management takes
place)
the tasks to be undertaken
the technology employed and the methods of carrying out work
the behaviour of people
the process of management
the external environment
Video.edhole.com
ORGANISATION BEHAVIOUR
Interrelated dimensions influencing behaviour:
The Individual - working environment should satisfy individual
needs as well as attainment of organisational goals.
The Group - formal and informal. Understanding of groups
complements a knowledge of individual behaviour.
The Organisation - impact of organisation structure and design,
and patterns of management, on behaviour.
The Environment - technological and scientific development,
economic activity, governmental actions.
Video.edhole.com
IMPORTANCE OF MANAGEMENT THEORY
What leading writers say is an important part of the study of management.

It is necessary to view the interrelationships between the development of
theory, behaviour in organisations and management practice.

An understanding of the development of management thinking helps in
understanding principles underlying the process of management.

Knowledge of the history helps in understanding the nature of
management and organisation behaviour.

Many earlier ideas are still important and are often incorporated into more
current management thinking.

1
Video.edhole.com
MANAGEMENT THEORY

Theory provides a sound basis for action BUT
if the action is to be effective the theory must
be adequate and appropriate to the task and
to improved organisational performance.
Video.edhole.com
MANAGEMENT THEORY


In theory, theory and practice are the same.

In practice, theory and practice are different.

From LEADERSHIP ... with a human touch
20 October 1998
Video.edhole.com
DIVISION OF LABOUR

Definition:
The extent to which the organisations
work is separated into different jobs to be
done by different people.
(Moorhead and Griffin:1998,448)
Video.edhole.com
DIVISION OF LABOUR
Major purpose or function

Product or service

Location

Nature of the work performed
Common time scales

Common processes

Staff employed

Customer or people to be
served
Video.edhole.com
DIVISION OF LABOUR
ADVANTAGES
Efficient use of labour
Reduced training costs
Increased standardisation
and uniformity of output
Increased expertise from
repetition of tasks

DISADVANTAGES
Routine, repetitive jobs
Reduced job satisfaction
Decreased worker involvement
and commitment
Increased worker alienation
Possible incompatibility with
computerised manufacturing
technologies
Video.edhole.com
DIVISION OF LABOUR
Decisions on division of work should take
account of:
the need for co-ordination
the identification of clearly defined divisions of work
economy
the process of managing the activities
avoiding conflict
the design of work organisation should take account of the
nature and interests of staff and job satisfaction.
Video.edhole.com
DIVISION OF LABOUR
Mintzbergs five basic elements of structure which
Serve as co-ordinating mechanisms for the work of
the organisation.

1. Mutual Adjustment
2. Direct Supervision
3. Standardisation of Work Processes
4. Standardisation of Work Output
5. Standardisation of Worker Skills
Video.edhole.com
DIVISION OF LABOUR
ADVANTAGES OF CENTRALISATION
Easier implementation of a common policy for the organisation as
a whole.
Prevents sub-units becoming too dependent.
Easier co-ordination and management control.
Improved economies of scale and a reduction in overhead costs.
Greater use of specialisation, including better facilities and
equipment.
Improved decision-making which might otherwise be slower.
Video.edhole.com
DIVISION OF LABOUR

ARGUMENTS AGAINST CENTRALISATION
More mechanistic structure
Lengthens scalar chain (number of different levels in the structure
of an organisation).
Video.edhole.com
DIVISION OF LABOUR
ADVANTAGES OF DECENTRALISATION
Enables decisions to be made closer to the operational level of
work.
Support services will be more effective if they are closer to the
activities they are intended to serve.
Opportunities for training in management.

Tends to be easier to implement in private sector
organisations rather than the public sector -
accountability, regularity, uniformity.
Video.edhole.com
DIVISION OF LABOUR
Six key elements to be addressed when designing
structure:
Work Specialisation
Departmentalisation
Chain of Command (Scalar Chain)
Span of Control (Number of subordinates reporting
directly to a manager or supervisor.)
Centralisation and Decentralisation
Formalisation
Video.edhole.com
CLASSICAL APPROACH
Emphasis on purpose, formal structure, hierarchy of management,
technical requirements and common principles of organisation.

This perspective was concerned with structuring organisations
effectively.

Two major sub-groupings of this approach are:
Bureaucracy
Scientific Management (sometimes categorised as an
approach in its own right)
Video.edhole.com
CLASSICAL APPROACH
Major Contributors:

Henri Fayol
Linda Urwick
Max Weber most
prominent of the three.
Weber proposed a
bureaucratic form of structure
that he believed would work
for all organisations.

Embraced logic, rationality,
efficiency.
Video.edhole.com
CLASSICAL APPROACH
Webers Ideal Bureaucracy

Job Specialisation
Authority Hierarchy
Formal Selection
Formal Rules and
Regulations
Impersonality
Career Orientation
Criticisms of Bureaucracy

Lack of attention to the
informal organisation.
Restriction of psychological
growth
Bureaucratic dysfunction
Video.edhole.com
CLASSICAL APPROACH
SCIENTIFIC MANAGEMENT

Emphasis on obtaining increased productivity from
individual workers through the technical structuring of
the work organisation and the provision of monetary
incentives as the motivator for higher levels of output.

Major Contributor - FW TAYLOR (1856 - 1917) - held
the view that there was a best working method by which
people should undertake their jobs.
Video.edhole.com
CLASSICAL APPROACH
TAYLORS PRINCIPLES

the development of a true science for each persons work
the scientific selection, training and development of the workers
co-operation with the workers to ensure work is carried out in the
prescribed way
the division of work and responsibility between management and
the workers.
Video.edhole.com
CLASSICAL APPROACH
REACTIONS AGAINST SCIENTIFIC MANAGEMENT

opposition because its specific goal was to get more output from
the workers
argument that his incentive system would dehumanise the
workplace
inadequate views of employee motivation
allegations that he falsified some of his research findings and paid
someone to do his writing for him.
Video.edhole.com
HUMAN RELATIONS APPROACH

During the 1920s, attention began to focus on social factors at
work, groups, leadership, the informal organisation and
behaviour of people.
Behavioural and informal are alternative headings sometimes
given to this approach.
Turning point came with the famous Hawthorne experiments at
the Western Electric Company in America (1924-32)
One of the researchers (leader) was ELTON MAYO (1880-
1949)

Video.edhole.com
HUMAN RELATIONS APPROACH
Four Main Phases to the Hawthorne Experiments
The Illumination Experiments - level of production was
influenced by factors other than changes in physical conditions of
work.
The Relay Assembly Test Room - attention and interest by
management reason for higher productivity.
The Interviewing Programme -20,000 interviews. Gave impetus
to present-day personnel management and use of counselling
interviews. Highlighted the need for management to listen to
workers.
The Bank Wiring Observation Room - Piecework Incentive
Scheme. Group pressures stronger than financial incentives
offered by management.

Video.edhole.com
NEO-HUMAN RELATIONS APPROACH
Writers in the 1950s and 1960s who adopted a more
psychological orientation.

Major focus was the personal adjustment of the individual within
the work organisation and the effects of group relationships and
leadership styles.

Main contributors: MASLOW, HERZBERG AND McGREGOR.
Video.edhole.com
NEO-HUMAN RELATIONS APPROACH
MASLOWS HIERARCHY OF HUMAN NEEDS

General Examples NEEDS Organisational
Examples
Achievement SELF-ACTUALISATION Challenging Job
Status ESTEEM Job Title
Friendship BELONGINGNESS Friends in the Work
Group
Stability SECURITY Pension Plan
Sustenance PHYSIOLOGICAL Base Salary

Video.edhole.com
NEO-HUMAN RELATIONS APPROACH
HERZBERG isolated two different sets of factors affecting
motivation and satisfaction at work.

1. Hygiene or Maintenance Factors - concerned basically with job
environment. Extrinsic to the work itself.
2. Motivators or Growth Factors - concerned with job content.
Intrinsic to the work itself.

Goal of managers is to achieve a state of no dissatisfaction by
addressing Hygiene Factors. Task of improving motivation is
then by addressing the Motivators.
Video.edhole.com
NEO-HUMAN RELATIONS APPROACH
McGREGOR argued that the style of Management adopted is a
function of the managers attitudes towards human nature and
behaviour at work.

He put forward two suppositions called Theory X and Theory Y which
are based on popular assumptions about work and people.
Video.edhole.com
NEO-HUMAN RELATIONS APPROACH
THEORY X ASSUMPTIONS

People do not like work and try to avoid it.
People do not like work, so managers have to control, direct,
coerce, and threaten employees to get them to work toward
organisational goals.
People prefer to be directed, to avoid responsibility, to want
security, and have little ambition.
Video.edhole.com
NEO-HUMAN RELATIONS APPROACH
THEORY Y ASSUMPTIONS
People do not naturally dislike work; work is a natural part of their
lives.
People are internally motivated to reach goals to which they are
committed.
People are committed to goals to the degree that they receive
personal rewards when they reach their objectives.
People will seek and accept responsibility under favourable
conditions.
People have the capacity to be innovative in solving organisational
problems.
People are bright, but generally their potentials are under-utilised.
Video.edhole.com
SYSTEMS APPROACH
Integration of the classical and human relations approaches.
Attempts to reconcile the work of the formal and the informal
writers.
Importance of the socio-technical system.
Attention is focused on the total work organisation and the
interrelationships of structure and behaviour, and the range of
variables within the organisation.
The Systems Approach encourages managers to view the
organisation both as a whole and as part of a larger environment.
Video.edhole.com
CONTINGENCY APPROACH
Best viewed as an extension of the systems approach.
Highlights possible means of differentiating between alternative
forms of organisation structure and systems of management.
There is no one best design of organisation.
Most appropriate structure and system of management is
dependent upon the contingencies of the situation for the
particular organisation.
Video.edhole.com