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ORGANISATION BEHAVIOUR
Shikha sahai
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)
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
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.
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
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.
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
DIVISION OF LABOUR
Definition:
“The extent to which the organisation’s work is separated into different jobs to be done by different people.”
(Moorhead and Griffin:1998,448)
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
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
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.
DIVISION OF LABOUR
Mintzberg’s 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
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.
DIVISION OF LABOUR
ARGUMENTS AGAINST CENTRALISATION More mechanistic structure Lengthens scalar chain (number of different levels in the structure
of an organisation).
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.
DIVISION OF LABOUR
Six key elements to be addressed when designingstructure: 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
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)
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.
CLASSICAL APPROACH
Weber’s 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
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.
CLASSICAL APPROACH
TAYLOR’S PRINCIPLES
the development of a true science for each person’s 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.
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.
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)
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.
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.
NEO-HUMAN RELATIONS APPROACH
MASLOW’S HIERARCHY OF HUMAN NEEDS
General Examples NEEDS Organisational Examples
Achievement SELF-ACTUALISATION Challenging JobStatus ESTEEM Job TitleFriendship BELONGINGNESS Friends in the Work
GroupStability SECURITY Pension PlanSustenance PHYSIOLOGICAL Base Salary
NEO-HUMAN RELATIONS APPROACH
HERZBERG isolated two different sets of factors affectingmotivation 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 byaddressing Hygiene Factors. Task of improving motivation isthen by addressing the Motivators.
NEO-HUMAN RELATIONS APPROACH
McGREGOR argued that the style of Management adopted is a
function of the manager’s 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.
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.
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.
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.
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.