Fields contributing to organizational behavior Managers’ roles and functions Organizational behavior in the context of globalization Definition of management Approaches to management: Classical, Behavioral, Quantitative Management principles : Taylor, Weber, Fayol Hawthorne studies Workforce diversity

1. MANAGEMENT THOUGHT
& ORGANIZATIONAL
BEHAVIOR
Shilpi Arora

2. CONTENT
 Fields contributing to organizational behavior
 Managers’ roles and functions
 Organizational behavior in the context of globalization
 Definition of management
 Approaches to management: Classical, Behavioral, Quantitative
 Management principles : Taylor, Weber, Fayol
 Hawthorne studies
 Workforce diversity

3. Definition and meaning
 Organizational behavior is "the study of human behavior in organizational settings,
the interface between human behavior and the organization, and the organization
itself"
 It is an interdisciplinary field that includes sociology, psychology, communication
and management.

4. Challenges and Opportunities of OB
 Responding to Economic Pressures
 Responding to Globalization
 Managing Workforce Diversity
 Improving Customer Service
 Improving People Skills
 Stimulating Innovation & Change
 Coping with “Temporariness”
 Working in Networked Organizations
 Helping Employees balance work life conflicts
 Creating a positive work environment
 Improving ethical behavior

5. Importance of Organizational behavior
for the managers
 It helps managers to look at the behavior of individuals within an
organization.
 It aids their understanding of the complexities involved in interpersonal
relations, when two people (two coworkers or a superior-subordinate pair)
interact.
 Organizational Behavior is valuable for examining the dynamics of
relationships within small groups, both formal teams and informal groups.
 Organizations can also be viewed and managed as whole systems that have
inter organizational relationships.
 OB helps the managers to understand the basis of motivation and what he
should do to motivate his subordinates.

6. Organizational behavior model is a basic structure that shows the relations
between variables at different levels in the organization.

7. Fields contributing to Organizational
Behavior

13. Managerial Roles and functions

14. MANAGERIAL ROLES
Henry Mintzberg in his
classic book, The Nature
of Managerial Work,
describes a set of ten
roles that a manager
fills. These roles fall into
three categories:

15. Managerial Skills

16. Allocation of Activities by Time

17. OB in context of Globalization
 Globalization is the free movement of goods, services and people across the
world in a seamless and integrated manner.
 Globalization means to increase their base of operations, expand their
workforce with minimal investments, and provide new services to a broad range
of consumers

18. Impact of Globalization
 Multi national corporations developed operations world wide and companies
developed joint ventures with foreign partners.
 Workers increasingly chased job opportunities across national borders.
 Organizations that have operations around the world pose a unique problem to the
organizational behavior. Each location has its own view of observed holidays,
communication, organizational change and gender and a manager must consider all
these aspects. All of these aspects, and more, make up a country's economy, culture
and politics.

19. Globalization in organization behavior
 As organizations have become more global , their work force has become
culturally diverse.
 Globalization has created a large shift in organizational behavior as increasing
diversity has brought together people of different backgrounds with different
values, cultures and beliefs all working together for common objective.

20. Workforce Diversity

21. Definition
 “Workforce diversity is a workforce consisting of a broad mix of workers from
different racial and ethnic background of different ages and genders, and of
different domestic and national cultures.”
 “Workforce diversity means that the organizations are becoming more
heterogeneous mix of people in terms of gender, age, ethnicity and sexual
orientation.”

22. Elements of Diversity
 Age
 Gender
 Ethnicity
 Race
 Physical Ability
 Sexual Orientation
 Physical Characteristics
 Income
 Education
 Marital Status
 Religious Beliefs
 Geographic Location
 Parental Status
 Personality Type

23. Reasons for the emergence of diversity
Changing demographic structure of the workforce
Government , legislation & lawsuits alleging discrimination
Enhance competitiveness of firms
Increase globalization of firms
Recognition and desire for diverse viewpoints

24. Benefits of Workplace Diversity
 Maximize the productivity.
 Enhance the creativity.
 Increase the loyalty of employees.
 Getting competitive advantage.
 Improving decision making by providing different perspective on problems
 Satisfy diverse needs of customers

25. Managing Diversity
 Managing Diversity is defined has the “planning and implementing
organizational systems and practices to manage people so that the potential
advantages of diversity are maximized while its potential disadvantages are
minimized”
 Creation of family friendly workplace
 Providing diversity training to employees
 Developing mentoring programs for employees
 Implementation of diversity in the workplace plan
 Foster an attitude of openness in your organization
 Promote diversity in leadership positions

26. Goals of Workforce Diversity
 To identify, attract, and retain, the best people of each group.
 To create a workplace where that talent can perform at its best to maximize
shareholders value.
 To assess and understand the diversity of the marketplace.

27. Challenges of Diversity in the Workplace
 Communication
 Resistance to change
 Implementation of diversity in the workplace policies
 Successful Management of Diversity in the Workplace

28. Approaches to Managing Diversity
 There are two major approaches
 1) Individual approach to manage diversity
Learning
Empathy
 2) Organizational approach to manage diversity
Testing
Training
Mentoring

29. Definition of management
 Harold koontz “Management is the art of getting things done through others and with
formally organised groups.”
 F.W. Taylor “Management is the art of knowing what you want to do and then seeing
that they do it in the best and the cheapest manner.”
 George R.Terry “Management is a distinct process consisting of planning, organising,
actuating and controlling; utilising in each both science and arts, and followed in order
to accomplish predetermined objective.”
 Peter Drucker “Management is a multipurpose organ that manage a business and
manages managers and manages workers and work.”
 Henri Fayol “Management is to forecast, to plan, to organize, to command, to
coordinate and control activities of others.”

30. MANAGEMENT PRINCIPLES :
 1. TAYLOR'S PRINCIPLES OF SCIENTIFIC MANAGEMENT
 2. WEBER'S BUREAUCRATIC APPROACH
 3. FAYOL'S PRINCIPLES OF MANAGEMENT: ADMINISTRATIVE THEORY

31. Organization Theories
Classical Organization
- Scientific Management
Approach
- Weber’s Bureaucratic
Approach
- Administrative Theory
Neoclassical Theory
Modern organization
approach
- System Approach
- Contingency/Situational
Approach

32. Classical organization theory
 The Classical Theory is the traditional theory, wherein more emphasis is on
the organization rather than the employees working therein.
 According to the classical theory, the organization is considered as a machine
and the human beings as different components/parts of that machine.
 Classical organization theories (Taylor, 1947; Weber, 1947; Fayol, 1949) deal
with the formal organization and concepts to increase management
efficiency.

33. Classical organization theory
characteristics
 It is built on an accounting model.
 It lays emphasis on detecting errors and correcting them once they have been
committed.
 It is more concerned with the amount of output than the human beings.
 It is assumed that employees are relatively stable in terms of the change, in
an organization.
 It is assumed that the authority and control should be vested with the central
authority only, in order to have a centralized and integrated system.

34. Scientific management approach-by F Taylor
 Known for its application of engineering science at the production floor. Also
called as “Taylorism”.
 The scientific management theory focused on improving the efficiency of
each individual in the organization.
 The major emphasis is on increasing the production through the use of
intensive technology,
 Human beings are just considered as adjuncts to machines in the performance
of routine tasks.

35.  Division of Labor
 Hierarchy: Clear chain of command
 Managers would design the work process and employees should follow
 Separate planning from doing.
 Most productive employees should be paid more.
 Proper scientific selection and training of workmen should be done.
 Time, motion and fatigue studies shall be used to determine the fair amount of work done by
each individual worker.
 Improving the working conditions and standardizing the tools, period of work and cost of
production.
 Thus, the scientific management theory focused more on mechanization and automation, i.e.,
technical aspects of efficiency rather than the broader aspects of human behavior in the
organization.

36. Weber's bureaucratic approach(1864-1920)
 Organizations should act rationally to achieve their goals by clarifying
leadership & rules of decision making.
 Authority of leadership positions should be formalized and fixed to these
positions.
 Authority resides in the position or office.
 Organizations should be run by policies and rules.
 Rigid separation of personal life from work life.
 Selection of personnel on the basis of qualifications and experience.
 Fixed division of labor among employees.
 Weber was against favoritism.

37. Administrative Theory-Fayol
 Suggests that more emphasis should be laid on organizational management and
the human and behavioral factors in the management.
 Suggests that there are 6 activities to run an organization-
Technical,commercial,financial,security,accounting, managerial

38. Henry Fayol’s 14 Principles of Management
 Division of Work
 Authority and Responsibility
 Discipline
 Unity of Command
 Unity of Direction
 Subordination of Individual to General Interest
 Remuneration of Personnel
 Centralization
 Scalar Chain
 Order: right man should be in the right job.
 Equity: All the employees in the organization must be treated equally with
respect to the justice and kindliness.

39.  Stability of Tenure: The employees should be retained in the organization, as
new appointments may incur huge selection and training cost.
 Initiative: The manager must motivate his subordinates to think and take
actions to execute the plan. They must be encouraged to take initiatives as
this increases the zeal and energy among the individuals.
 Esprit de Corps: This means “unity is strength”. Thus, every individual must
work together to gain synergy and establish cordial relations with each other.

40. NeoClassical theory
 NeoClassical Theory is the extended version of the classical theory wherein
the behavioral sciences gets included into the management.
 According to this theory, the organization is the social system, and its
performance does get affected by the human actions.
 NeoClassical theory suggests that an organization is the combination of both
the formal and informal forms of organization, which is ignored by the
classical organizational theory.

41. Modern Approach
 Modern theories are based on the concept that the organization is an adaptive system
which has to adjust to changes in its environment. Modern theories include the
systems approach, the sociotechnical approach, and the contingency or
situational approach.
 The modern theory considers the organization as an open system.
 The organization is said to be adaptive in nature, which adjusts itself to the changing
environment.
 it covers both the micro and macro environment of the organization.
 The modern theory is multi-variable, which means it considers multiple variables
simultaneously.

42. Systems approach
 Every organization is a system.
 It consist of many independent and interacting sub systems within
themselves.
 Manager should ensure that output of the organization should be more than
the combined output of its individual departments.

43. Contingency or situational approach
 The contingency or situational approach recognizes that organizational
systems are inter-related with their environment and that different
environments require different organizational relationships for effective
working of the organization.
 The contingency approach suggests that different environments require
different organizational relationships for optimum effectiveness, taking into
consideration various social, legal, political,technical and economic factors.

44. HAWTHRONE STUDIES(Human
Relations movement)-Elton Mayo

45.  The Hawthorne plant of General Electric Company, Chicago, was manufacturing telephone
system bell.
 It employed about 30,000 employees at the time of experiments.
 Despite of material benefits to workers, this was the most progressive company with
pension and sickness benefits and other recreational facilities, there was great deal of
dissatisfaction among the workers and productivity was not up to the mark.
 Experiments done to find out the reasons of fluctuating productivity.
 The Hawthorne studies discovered that workers were highly responsive to additional
attention from their managers and the feeling that their managers actually cared
about, and were interested in, their work. The studies also found that although
financial motives are important, social issues are equally important factors in worker
productivity.

46. Experiments Conducted
 Illumination Experiment(1924-27)
 Relay Assembly Test Experiments(1927-29)
 Mass Interview Group
 Bank Wiring Observation Group

47. ILLUMINATION STUDIES
 1924-1927
 Funded by General Electric
 Measured Light Intensity vs. Worker Output
 Two groups-experimental and control group
 Result : - Higher worker productivity and satisfaction at all light levels -
Worker productivity was stopped with the light levels reached moonlight
intensity.
 Conclusions: - Light intensity has no conclusive effect on output -
Productivity has a psychological component
 Concept of “Hawthorne Effect” was created

48. RELAY ASSEMBLY TEST EXPERIMENTS(1927-29)
 Designed to determine the changes of various job conditions on group
productivity.
 Selected relay assembly test room, selected 6 women.
 Duration was 6 weeks.
 Incentive system was changed.(Productivity increased).
 5 minutes rest in 2 intervals.(Productivity increased).-Frequent changes
 Working hours decreased and work offs increased.
 Morale, absenteeism decreased, less supervision.
 Conclusions: -Physical factors didn’t influence the productivity but it is
influenced by need for recognition, security and sense of belonging

49. MASS INTERVIEW PROGRAM
 Conducted 20,000 interviews.
 Objective was to explore information, which could be used to improve
supervisory training.
 The worker was satisfied/dissatisfied depending upon how he regarded his
social status in the company.
 Complaints were symptoms of deep-rooted disturbances
 Social groups created big impact on work.
 Production was restricted by workers regardless all financial incentives
offered as group
 Social behavior is impacting productivity.

50. BANK WIRING OBSERVATION GROUP(1931-32)
 14 male workers
 It was conducted to analyze the functioning of small group and its impact on
individual behaviors.
 Limited changes to work conditions - Segregated work area - No Management
Visits - Supervision would remain the same - Observer would record data only
- no interaction with workers
 Small group pay incentive
 Result: -Informal relationships play an important role in determining human
behavior and productivity.

51. Thank You