Organizational Behavior

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Organizational Behavior

• Patricia Parker
• Class One
• Review of Management Theory

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A Review of Management Theories
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Theories of Management
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Theories of Management
CLASSICAL THEORIES
SCIENTIFIC MANAGEMENT
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Frederick Taylor

• Developed the specific principles of Scientific
  Management

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Taylors 4 Principles ofScientific Management

• Scientifically study each part of a task and
  develop the best method for performing the task
• Carefully select workers and train them to
  perform the task by using the scientifically
  developed method

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Taylors 4 Principles ofScientific Management

• Cooperate fully with workers to ensure that they
  use the proper method
• Divide work and responsibility so that management
  is responsible for planning work methods using
  scientific principles and workers are responsible
  for executing the work accordingly

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Case Study

• Henry Ford

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Behavioural Theories

• Emphasise the importance of attempting to
  understand the various factors that affect human
  behaviour in organisations.

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Theories of Management
BEHAVIOURAL THEORIES
HAWTHORNE STUDIES
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The Hawthorne Studies

• A group of studies conducted at the Hawthorne
  plant of the Western Electric Company during the
  late 1920s and early 1930s

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Hawthorne Studies

• Researchers monitored the productivity of five
  women who assembled electrical relays for several
  years.

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The Hawthorne Effect
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Theories of Management
BEHAVIOURAL THEORIES
HUMAN RELATIONS
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Self Actualisation
Maslows Hierarchy of Needs
Self Esteem
Social Needs
Safety Security Needs
Basic Needs
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Theory X Theory Y

• Theory X
• The average person dislikes work and will try to
  avoid it.
• Most people need to be coerced, controlled,
  directed, and threatened with punishment to get
  them to work towards organisational goals.
• The average person WANTS to be directed, shuns
  responsibility, has little ambition, and seeks
  security above all.

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Theory X Theory Y

• Theory Y
• Most people do not inherently dislike work it is
  seen as natural as recreation and rest.
• People will exercise self-direction and
  self-control to reach goals to which they are
  committed.
• Commitment to goals is a function of the rewards
  available particularly esteem and
  self-actualisation needs.

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Theory X Theory Y

• Theory Y
• When conditions are favourable, the average
  person learns not only to accept responsibility,
  but also to seek it.
• Many people have the capacity to exercise a high
  degree of creativity and innovation in solving
  organisation problems.
• The intellectual potential of most individuals is
  only partially utilised in most organizations.

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Theories of Management
QUANTITATIVE THEORIES
MANAGEMENT INFORMATION SYSTEMS
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Management InformationSystems

• Focuses on designing and implementing
  computer-based information systems for use by
  management.
• These systems turn raw data into information that
  is useful to various levels of management.

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Theories of Management
CONTEMPORARY THEORIES
SYSTEMS THEORY
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Systems Theory

• Based on the idea that organizations can be
  visualised as systems
• System
• A set of interrelated parts that operate as a
  whole in pursuit of common goals

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• Outcomes
• Products
• Services
• Profit Losses
• Employee Growth Satisfaction

• Resources
• Human
• Materials
• Equipment
• Finance
• Information

• Abilities
• Planning
• Organising
• Leading
• Control
• Technology

Inputs
Transformation Processes
Outputs
Feedback from Environment
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Systems Theory

• Developed through the sciences of Biology and
  Physical Science

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The Systems Approach

• What is a System?
• A collection of parts that operate
  interdependently to achieve a common purpose.
• Systems Approach
• Posits that the performance of the whole is
  greater that the sum of the performance of its
  parts.
• Analytic versus synthetic thinking outside-in
  thinking versus inside-out thinking.
• Seeks to identify all parts of an organized
  activity and how they interact.

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The Systems Approach (contd)

• Chester I. Barnards Early Systems Perspective
• Wrote Functions of the Executive.
• Characterized all organizations as cooperative
  systems.
• Defined principle elements in an organization as
• willingness to serve.
• common purpose.
• communication.
• Strong advocate of business ethics.

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General Systems Theory

• General Systems Theory
• An area of study based on the assumptions that
  everything is part of a larger, interdependent
  arrangement.
• Levels of systems
• Each system is a subsystem of the system above
  it.
• Identification of systems at various levels helps
  translate abstract systems theory into more
  concrete terms.

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General Systems Theory (contd)

• Closed Versus Open Systems
• Closed system
• A self-sufficient entity.
• Open system
• Something that depends on its surrounding
  environment for survival.
• Systems are classified open (closed) by how much
  (how little) they interact with their
  environments.

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Open vs. Closed Systems

• Closed System
• A system that does little or no interacting with
  its environment and receives little feedback
• Open System
• A system that operates in continual interaction
  with its environment

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General Systems Theory (contd)

• New Directions in Systems Thinking
  Organizational learning and knowledge management
• Organizations are living and thinking open
  systems that learn from experience and engage in
  complex mental processes.
• Chaos theory
• Every complex system has a life of its own, with
  its own rule book.
• Complex adaptive systems
• Complex systems are self-organizing.

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Case StudyThe EdselSystems Breakdown
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Theories of Management
CONTEMPORARY THEORIES
CONTINGENCY THEORY
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Contingency Theory

• A viewpoint that argues that appropriate
  managerial action depends on the circumstances of
  the situation.
• In other words ..

there is no single right way to manage
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Contingency Theory
Contingency View Appropriate managerial action
depends on situation
Situation A
Universal Management Principals
Situation C
Situation B
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Organizational Behavior

• Organization Behavior
• A modern research-oriented approach seeking to
  discover the causes of work behavior and to
  develop better management techniques.
• Lessons from the Behavioral Approach
• People are the key to productivity.
• Success depends on motivated and skilled
  individuals committed to the organization.
• Managerial sensitivity to employees is necessary
  to foster the cooperation needed for high
  productivity.