Evolution of organisation behaviour

1. ORGANISATIONAL ORGANISATIONAL
BEHAVIOURBEHAVIOUR

2. OrganisationOrganisation
A structured social system consisting of A structured social system consisting of
groups of individuals working together to groups of individuals working together to
meet some agreed-on objectivesmeet some agreed-on objectives

3. Organisational Behaviour is the field that Organisational Behaviour is the field that
seeks knowledge of all aspects of seeks knowledge of all aspects of
behaviours in organisational settings by behaviours in organisational settings by
the use of the scientific methodthe use of the scientific method

4. Three levelsThree levels
IndividualsIndividuals
GroupsGroups
OrganisationsOrganisations

5. Early PracticesEarly Practices
Adam SmithAdam Smith
Scottish philosopher
Wrote ‘Causes of
Wealth of Nations’
Proposed ‘Division of
Labour’

6. Charles BabbageCharles Babbage
British Mathematics professor
Wrote ‘On the Economy of
Machinery and Manufactures’
Proposed advantages of
division of labour:
•Reduces the time needed for
learning a job
•Reduces waste of material
•Attainment of high skill levels
•Matching skills and abilities
with jobs

7. Robert OwenRobert Owen
Welsh entrepreneur
Recognised how factory work
was demeaning to employees

8. The Classical EraThe Classical Era
Scientific Management- Frederick TaylorScientific Management- Frederick Taylor
Develop a science for each element of an Develop a science for each element of an
individual’s workindividual’s work
Scientifically select, train, teach and Scientifically select, train, teach and
develop workerdevelop worker
Cooperation with workersCooperation with workers
Divide work responsibility equally between Divide work responsibility equally between
management and workersmanagement and workers

9. Hawthorne studiesHawthorne studies
Illumination experimentIllumination experiment
Relay room experimentRelay room experiment
Mass interviewingMass interviewing
Bank wiring observationBank wiring observation

10. Classical Organisation TheoryClassical Organisation Theory
Administrative TheoryAdministrative Theory
French industrialist Henry FayolFrench industrialist Henry Fayol
Proposed that a manager plans, Proposed that a manager plans,
organises, directs, controls and organises, directs, controls and
coordinatescoordinates
14 principles of management including 14 principles of management including
division of labour, authority, scalar chain, division of labour, authority, scalar chain,
unity of command, initiativeunity of command, initiative

11. Max WeberMax Weber
Proposed Structural TheoryProposed Structural Theory
Described bureaucratic Described bureaucratic
structurestructure
Division of labour, clearly Division of labour, clearly
defined hierarchy, detailed defined hierarchy, detailed
rules and regulations and rules and regulations and
impersonal relationshipsimpersonal relationships

12. Formal rules regulationsFormal rules regulations
Division of labourDivision of labour
Hierarchical structureHierarchical structure
Authority structureAuthority structure
Lifelong commitmentLifelong commitment

13. Social Man TheorySocial Man Theory
Mary Parker Follett
Emphasised on
group ethics
Manager must
coordinate group
efforts

14. Chester BarnardChester Barnard
Social Systems Theory
Organisations made up
of people who have
interacting social
relationship
They communicate
Success depends on
maintaining good
relations

15. Herbert Simon
Described organisations as a complex
network of decisional process
Decision process comprises i) intelligent
activity ii) design activity iii) choice activity
Bounded rationality
administrative

16. Peter Drucker
Nature of management as innovative and
creative
Manager has to act as administrator,
entrepreneur, set objectives etc.
Organisation structure to facilitate effective
functioning
MBO

17. Behavioural EraBehavioural Era
Hugo Munsterberg
Published ‘psychology
and Industrial efficiency’
Saw a link between
scientific management
and industrial psychology
Suggested use of
psychological tests

18. Wagner ActWagner Act
After great depression of 1929, Wagner After great depression of 1929, Wagner
Act was passed which recognised union Act was passed which recognised union
as the authorised representatives of as the authorised representatives of
workersworkers

19. Human RelationsHuman Relations
Hawthorne studiesHawthorne studies
DALE carnegieDALE carnegie
MaslowMaslow
McGregorMcGregor

20. Behavioural Science TheoriesBehavioural Science Theories
MorenoMoreno-sociometry for studying group -sociometry for studying group
interactionsinteractions
SkinnerSkinner-operant conditioning-operant conditioning
McClelland McClelland Theory-need theoryTheory-need theory
FiedlerFiedler-situational theory of leadership-situational theory of leadership

21. Contingency perspectiveContingency perspective
No one ‘best way’ to manage people.No one ‘best way’ to manage people.

22. Challenges/emerging issues for Challenges/emerging issues for
OBOB
GlobalisationGlobalisation
Workforce diversityWorkforce diversity
Nature of organisationNature of organisation
Changing nature of work Changing nature of work
Changing employee needsChanging employee needs
Improving quality and productivityImproving quality and productivity

23. Orgnisations are dynamicOrgnisations are dynamic
Open systemsOpen systems
-Self sustaining systems that transform input -Self sustaining systems that transform input
from the external environment into input, from the external environment into input,
which the system then returns to the which the system then returns to the
environmentenvironment

24. Forces shaping OBForces shaping OB
Globalisation of economyGlobalisation of economy
Diversification of workforceDiversification of workforce
New working arrangements (flexitime, New working arrangements (flexitime,
compressed workweek,job sharing, compressed workweek,job sharing,
telecommutingtelecommuting
MNCsMNCs
Multicultural societyMulticultural society

25. New forms of organisationNew forms of organisation
Leaner organisationsLeaner organisations
-informate : process by which workers -informate : process by which workers
manipulate objects through inserting data manipulate objects through inserting data
between themselves and those objectsbetween themselves and those objects
OutsourcingOutsourcing
Contingent workforceContingent workforce

26. Virtual corporationsVirtual corporations
Highly flexible, temporary organisations Highly flexible, temporary organisations
formed by a group of companies to exploit formed by a group of companies to exploit
a specific opportunitya specific opportunity