OB ch-1
OB ch-1
OB ch-1
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Question for Brain Brush
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Short Summary for Brain Brush Questions
What Managers Do
Managerial
ManagerialActivities
Activities
••Make
Makedecisions
decisions
••Allocate
Allocateresources
resources
••Direct
Directactivities
activitiesofofothers
othersto
to
attain
attaingoals
goals
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Where Managers Work
An organization is defined
as a collection of people
who work together to
achieve a wide variety of
goals.
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Management Functions
Planning
Planning Organizing
Organizing
Management
Management
Functions
Functions
Controlling
Controlling Leading
Leading
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Managerial Roles
EXHIBIT 1-1a
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Cont………..
EXHIBIT 1-1b
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Cont…….
EXHIBIT 1-1c
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Management Skills
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Brainstorming Question
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“The stellar universe is not so difficult
of comprehension as the real actions
of other people”. —Marcel Proust
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Definition and concepts of OB
• Organizational behaviour (OB) is a field of study
that investigates the impact that individuals,
groups, and structure have on behaviour within
organizations, for the purpose of applying such
knowledge toward improving an organization’s
effectiveness.
• OB is the study of human behaviour in
organizational settings, how human behaviour
interacts with the organization, and the
organization itself
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Cont…..
• It studies three determinants of behaviour in organizations:
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Example
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Contributing Disciplines to the OB Field
EXHIBIT 1-3a
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Cont……….
EXHIBIT 1-3b
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Cont…..
EXHIBIT 1-3c
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Cont…..
EXHIBIT 1-3d
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Cont……
EXHIBIT 1-3f
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Why study OB?
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Understand
Behaviour
Predict
Influence
Behaviour Behaviour
Why study
OB?
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Model of OB
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Basic OB Model
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Cont….
• A table on the next slide presents, the skeleton on
which construct OB model.
x
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Cont….
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Cont……
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Cont……
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Cont…..
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The Independent Variables
Independent
Independent
Variables
Variables
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Enter Organizational Behavior
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Foundations of OB
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• How management concepts are evolved?
• The origin of management can be traced back to the days
when man started living in groups.
• One can argue that management took the form of
leadership which was essential to coordinate the efforts of
the group members in order to arrange the necessities of
life.
The principle of management can be traced back many centuries:
prehistoric times-hunting, food preparation, etc. in primitive society
Egypt- The Egyptians organized their people and their slaves to build
their cities and pyramids – need for effective management
Roman- The Roman Empire is thought by many to have been so
successful because of the Romans‘ great ability to organize the
military and conquer new lands. Emperor Diocletian’s (A.D. 284)
Roman Catholic Church - with its efficient
formal organization and management
techniques. The most important contributions:
Hierarchy of authority: there was a hierarchical
structure from pop-bishop- priest – laity
Specialization of activities: there was a training
to be a pop, bishop, priest & laity
Bible (exodus 18: 13-16)- Jethor, Moses’ father
in-law, observed Moses spending an entire day
listening to the complaints & problems of this
people
Then, Jethor advised Moses to relief him of his
burden:
Ordinance & laws should be taught to the people – policies, rules & procedures
Leader should be selected & assigned to be rulers of thousands, hundreds, fifties &
tens – delegation of authority
The rulers should administer all routine matters & should bring to Moses the
important questions – the principle of exception
China- the great wall of china – the importance of
organizational effectiveness
Ethiopia- the magnificent obelisk of Axum, rock hewn
churches of Lalibela- the need for effective organization
Various ancient civilization of Greek, Mesopotamia, India
etc. contributed to the early management thought
All these are good examples that indicate how modern mgmt was practiced in
ancient times
Although management practices go back several
thousands years, the development of management as a field
of knowledge is much recent.
Much of the impetus for the development of management
theories & principles grew out the industrial revolution of
the early 1800s
It was manifested by the:
• Revolution of factories & large organization
• Substitution of human labor by machine power
• Need for the coordination of the efforts of large numbers of
people
Thus, attempts to develop theories & principles of
management as a discipline evolved almost 200 years ago
Cont….
• systematic body of knowledge and distinct
discipline is the product of 20th C. When
different schools of management thought
began to develop.
• industrial revolution which began in 18th c
and run through 20th c
• Industrial revolution resulted in:
• economic growth of countries, minimized
dependency on agriculture, and expansion of
many and giant industries which needed
many employees/workers.
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Pre- Robert Own-(1771-1858)
Pre-classical
classical
Management
Management A British industrial & an owner –
theory manager of several successful cotton mills
theory
in Scotland
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Arose because of the need to increase
Scientific
Scientific productivity and efficiency.
Management
Management
Theory
Theory
The emphasis was on trying to find the best way to get the most
work done by examining how the work process was actually
accomplished and by analyzing the skills of the workforce
Frederick W. Taylor (1856–1915)
A pioneer who advocated scientific principles of management as
the result of his intense research in different industrial activities
Started work as an beginner pattern making in a small workshop in
Midvale steel company
Within 8 years, he progressed from ordinary laborer to chief
engineer (time keeper, machinists, gang boss, foreman, assistant
engineer)
He worked in Bethlehem steel company till 1901,
acquired a technical excellence in the field of
engineering
Published principle of scientific management (1911)
Thus, he is considered as the father of scientific
management
He saw that the employees were deliberately working at
a pace slower than one capabilities.
He suggested some principles to overcome this
problems. These principles formed the basis of scientific
management theory.
Cont…
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Cont…
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Henry Gantt (1861-1919)
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Cont…
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Henry Gant (1861-1919)
Task Duration Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1 2 mo.
2 2 mo.
3 2 mo.
4 2 mo.
5 2 mo.
6 2 mo.
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Contributions of scientific management theory
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Limitations of scientific management theory
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Cont…
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1. Division of labour : Division of work leads to specialization
resulting in higher output.
2.Authority : Managers must have the authority to issue orders and
instructions to the subordinates.
3.Discipline : Discipline means respect for rules and agreements.
4.Unity of command : There should be one boss for one
subordinate.
5. Unity of direction : All operations in an organization need to be
directed towards one objective.
6.Subordination of individual interest to general interest : If
there is a conflict between the individual goals and organizational
goals, preference should be given to organizational goals,
7. Remuneration : There should be a fair system of remuneration
that ensures equal pay for equal work.
8. Centralization : It refers to declining role of subordinates in the
decision making.
9. Scalar Chain (Hierarchy) : This the line of authority running
from top level to lower level of management.
10. Order : People and material should be in the right place at the
right time.
11. Equity : Managers should be fair to their subordinates.
12. Stability of staff : Employee turnover should be less to ensure
efficiency of an organization.
13. Initiative : Subordinates should have the freedom to conceive
new ideas and do their task, even though they commit mistakes.
14. Esprit de corps : ‘ Unity is strength’. People should work as a
team to enjoy the benefits of synergy.
Contributions of classical organization or administrative Theory
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C. Bureaucracy theory
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Cont…
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Cont..
• Efficiency in bureaucracies comes from:
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Cont…
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Cont…
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2. Neo classical theory
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Behavioral or Human relation approach
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George Elton Mayo (1880-1949)
(Australian Psychologist)
• He headed a group of researchers in
conducting the How throne studies,
• The objective of the behavioral theorists was
to identify factors that will serially affect
productivity of employees.
• But the initial purpose of how throne studies
was to determine the effect of illumination
on outputs.
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how throne study
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These experiment signified new approach to the problem
of productivity
b/c scientific management theorists believed that physical
factors are determinants of workers productivity
Illumination experiments :
The intension of this experiment was to learn if there was
any correlation b/n intensity of light & productivity
Accordingly, two group of women were taken for the
experiment:
The experiment group- one subjected to variety in the
intensity of light
A controlled group –which was exposed to constant
illumination intensity
After their experiment, the researchers were puzzled
by their experiment:
Productivity constantly increased in both the
experimental & controlled groups
Surprisingly, productivity kept on ascending even if
they:
Increased the intensity of illumination in the
experimental room
Diminished the light so that it was barely enough
to see in the control room
After seeing this puzzle, researchers concluded that
illumination has little or no effect on productivity.
Relay assembly test room experiment :
This set of experiments was conducted under the guidance of
Elton Mayo.
The researchers selected six women employees of the relay
assembly test room, and were put in a separate room.
In the test room, a number of variables were altered, like
increased wages and rest period, shortened workday and
workweek etc.
Productivity increased during the study period.
Such results led the researcher to believe that better treatment
of subordinates made them more productive.
They highlighted the significance of social relations. This
condition was later labeled as the Hawthorne effect.
The researches concluded that socio-psychological factors such as
feeling of being important, recognition, attention, participation,
cohesive workgroup, and non-directive supervision held the key for
higher productivity.
INTERVIEW PHASE :
Large number people were interviewed. The purpose of
the interviews was to explore the attitude of workers in
depth. The conclusions that emerged were.
All objects, persons, and events carry some social meaning.
They relate to employee’s satisfaction or dissatisfaction.
Workers assign meaning to their status in the organization and
give value to events, objects, and specific features of their
environment
Workers derive satisfaction or dissatisfaction from the
social status of an organization. This means that they
also look for social rewards, associating them with an
organization.
Workers’ social demands are influenced by social
experiences in groups, both inside and outside the
workplace
BANK WIRING OBSERVATION ROOM EXPERIMENT
In this experiment there were fourteen participants including
wiremen, solder men and inspectors.
There was no change in the physical working conditions.
Sample workers were paid based on an incentive pay plan,
relating their pay to output. They had the opportunity to earn
more by increasing the output.
However, it was observed that the output was constant at a
certain level.
Analysis of the results showed that the group encourages neither
too much nor too little work.
They enforce ‘a fair day’s work’ on their own. Group norms,
therefore more important to the worker than money.
This study, thus provided, some insight into informal social
relations within groups
Cont..
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Cont…
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Modern Approach
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1. The system approach
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Cont…
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Cont…
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2. contingency theory/ no absolute method
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