ORGANISATION BEHAVIOUR

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ORGANISATION BEHAVIOUR
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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)

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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

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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.

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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.

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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.

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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

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DIVISION OF LABOUR

• Definition
• The extent to which the organisations work
  is separated into different jobs to be done by
  different people.
• (Moorhead and Griffin1998,448)

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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

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DIVISION OF LABOUR

• DISADVANTAGES
• Routine, repetitive jobs
• Reduced job satisfaction
• Decreased worker involvement and commitment
• Increased worker alienation
• Possible incompatibility with computerised
  manufacturing technologies

• ADVANTAGES
• Efficient use of labour
• Reduced training costs
• Increased standardisation and uniformity of
  output
• Increased expertise from repetition of tasks

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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.

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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

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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.

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DIVISION OF LABOUR

• ARGUMENTS AGAINST CENTRALISATION
• More mechanistic structure
• Lengthens scalar chain (number of different
  levels in the structure of an organisation).

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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.

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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

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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)

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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.

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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

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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.

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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.

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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.

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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)

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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.

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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.

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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

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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.

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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.

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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.

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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.

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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.

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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.