Evolution of Management

&
Organizational Behavior

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 What is Organizational
Behaviour?
OB is the study of human behavior,
attitudes & performance within an
organizational setting
M&OB draws on theory, methods &
principles from various disciplines to learn
about individual perception, values,
learning capacities, action
M&OB analyzes the external environment’s
effect on the organization & its human
resources, missions, objectives and
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strategies
 Four Practical Reasons for Studying
Management Theories
Guide to action knowing management principles helps
you develop a set of principles that will guide your
actions
Source of new ideas being aware of various
perspectives can also provide new ideas when you
encounter new situations
Clues to meaning of your managers’ decisions it can
help you understand the focus of your organization,
where the top managers are “coming from”
Clues to meaning of outside events finally, it may
allow you to understand events outside the organization
that could affect it or you

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Is Management an Art or a Science?
Management can be approached deliberately,
rationally, systematically. That’s what the scientific
method is, a logical process, embodying four steps:
1. You observe events and gather facts
2. You pose a possible solution or explanation based on
those facts
3. You make a prediction of future events
4. You test the prediction under
systematic conditions

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 History of Organizational Research
 Scientific management
 Administrative management
 Principles of organization
 Industrial psychology
 Human resources approach
 Human relations movement
 Quantitative approaches
 Systems approach
 Contingency approach
 Cultural Perspective

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Historical Management Perspective:
Classical Viewpoint
The Classical Viewpoint: emphasized finding
ways to manage work more efficiently—two
branches: Scientific and Administrative

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 Panel 2.1: The Historical Perspective
Classical Viewpoint
Emphasis on ways to manage
work more efficiently
Scientific Management
Emphasized scientific study of work
methods to improve productivity of
individual workers
Proponents: Frederick W. Taylor
Frank & Lillian Gilbreth
Administrative
Management
Concerned with managing the
entire organization
Proponents: Henry Taylor
Max Weber
Behavioral Viewpoint
Quantitative Viewpoint
Emphasis on importance of
understanding human behavior & Applies quantitative
motivating & encouraging techniques to management
employees toward achievement
Early Behaviorists Management Science
Focuses on using
Proponents: Hugo Munsterberg,
Mary Parker Follet, Elton Mayo mathematics to aid in
problem solving and
decision making
Human Relations Movement
Proposed better human relations Operations Management
could increase worker productivity
Proponents: Abraham Maslow Focuses on managing the
production and delivery of an
Douglas McGregor organization’s products or
services more effectively
Behavioral science approach
Relies on scientific research for
developments theory to provide
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practical manager tools
 Scientific Management
Scientific Management:
emphasized the scientific study of
work methods to improve the
productivity of individual workers

Two of its chief proponents were

Frederick W. Taylor, & Frank and Lillian Gilbreth
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Principles of Scientific Management
Workers are essentially economic beings
Workers should be developed to their
maximum potential
Competitive pay system
Cooperation between managers and workers
Organizational and individual goals should
be compatible

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 Scientific management
Study jobs systematically with a view to
Improving the way tasks are performed
Select the best employees for the various jobs.
Train the employees in the most efficient methods
Offer incentives(higher wages) to the most able
employees and use piece-rate system of payment to
encourage greater effort.
Use rest pauses to combat fatigue
Entrust to supervisor the task of ensuring that
employees are using the prescribed methods

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 Administrative Management

Administrative
Management: concerned
with managing the total
organization

Among the pioneering theorists were

Henry Fayol & Max Weber
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 Henry Fayol and the Functions
of Management
Henry Fayol was the first to systematize management
management behavior– he was the first to identify the major
functions of management: planning, organizing, leading,
controlling, as well as coordinating
Planning Organizing
You set goals and You arrange tasks,
decide how to people, & other
resources to
achieve them accomplish the work

Controlling Leading
You monitor You motivate, direct &
performance, compare it otherwise influence
with goals and take people to work hard to
corrective action as achieve the
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needed organization’s goals
 Fayol’s Principles of Management
1. Division of labour
2. Authority
3. Discipline
4. Unity of command
5. Scalar chain
6. Equity
7. Esprit de corps

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 Max Weber & the Rationality
of Bureaucracy
To Weber, a bureaucracy was a rational, efficient
ideal organization based on principles of logic.
Good organizations should have six bureaucratic
features:
1. Division of labor
2. A well-defined hierarchy of authority
3. Formal selection
4. Formal rules and procedures
5. Impersonality
6. Careers orientation

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 Classical bureaucracy

Hierarchy of authority
Rights and duties are attached to the
various positions
Division of labour
Rules and procedures
Documentation in which info is recorded
in written form
Technical competence
Separation of ownership from control

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 The Problem with the Classical
Viewpoint

The classical viewpoint

tends to be too
mechanistic: it tends
to view humans as
cogs within a
machine, not taking
into account the
importance of human
needs
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 Hawthorne Studies
Elton Mayo & the Supposed Hawthorne
Effect 1. In later experiments, variables such as
Elton Mayo and his 2.
colleagues conducted
studies at Western Electric’s
3.
Hawthorne Plant and began
with an investigation to see
if different lighting affected 4.
workers’ productivity
wage levels, rest periods and length of
the work day were varied
Worker performance seemed to
increase over time leading Mayo and
his colleagues to hypothesize the
Hawthorne Effect
That employees worked harder if they
received added attention, if they thought
managers cared about their welfare and
that supervisors paid attention to them
They succeeded in drawing attention to
the “social man” and how managers
using good human relations could
improve worker productivity
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 Human Resources School
Hawthorne Studies
Illumination Study - Hawthorne effect: workers
felt important because they were observed
Bank Wiring Room Study - individual behavior
motivated by influence of groups
Conclusions: economic rewards didn’t totally
explain behavior; workers respond to groups
norms, social pressures
observation

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 Human Resources School
Conclusions:
– People are essentially social beings
– Non economic rewards play a central
role
– Informal organization is important
– High job specialization does not
increase efficiency
– Communication, participation and
democratic leadership are important

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 The contemporary perspective: Three
Viewpoints
The System Viewpoint
Regards the organization as a
system of interrelated parts that
operate together to achieve a
common purpose
Quality Control
Strategy for minimizing errors by
managing each state of
production
Proponent: Walter Stewart
The Contingency Viewpoint
Emphasizes that a manager’s approach
should vary according to—I.e. be
contingent on—the individual and
environmental situation
Quality Assurance
Focuses on the performance of
workers urging employees to
strive for “zero defects”
The Quality Management
Viewpoints
Three approaches
Total Quality Management
Comprehensive approach
dedicated to continuous quality
improvement, training, and
customer satisfaction
Proponents: W. Edward Deming
Joseph M. Juran
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 Systems Approach

Social organizations are open

systems in that the input of energies
and the conversion of output into
further energy consists of
transactions between the
organization and its environment.

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 Open and Closed Systems

Open System Closed System has little

continually interacts interaction with its
with its environment environment; it receives
very little feedback from
the outside

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 The Systems Viewpoint
The Systems Viewpoint
regards the organization as a
system of interrelated parts
By adopting this perspective
you can look at your
organization in two ways
1. A collection of subsystems—
parts making up the whole
system
2. A part of the larger environment

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 Systems Approach
An organization consists of
- inputs (resources, energy, employees)
- a transformation process, directed by
organizational goals
- outputs (products, services)
- feedback from the environment

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 The Four Parts of a System
Inputs Outputs
The people, money, The products, services,
information, equipment, profits, losses, employee
and materials required satisfaction or
to produce and discontent, and the like
organization’s goods or that are produced by the
services organization
Transformational
Feedback
Processes
Information about the
The organization’s capabilities
reaction of the
in management and technology
environment to the
that are applied to converting
outputs that affect the
inputs to outputs 25
inputs
The Contemporary Perspective: The
Contingency Viewpoint
The Contingency
Viewpoint
emphasizes that a
manager’s approach
should vary according
to—that is, be
contingent on—the
individual and the
environmental situation

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 Contingency approach
There is no optimum way to structure
organization. It is dependent on upon the
contingencies of the situation.
One has to look critically at the situation in
terms of tasks to be done and the
environmental influences when considering
the most appropriate structure to achieve
organization objectives

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 Four Popular Contingency
Variables
Organization size
Routineness of task technology
Environmental uncertainty
Individual differences

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 The Contemporary Perspective:
The Quality Management Viewpoint

The Quality
Management
Viewpoint includes
quality control, quality
assurance, and total
quality management

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 Quality
- the total ability of a product or
service to meet customer needs

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 Quality Control & Quality
Assurance
Quality Control - the strategy for
minimizing errors by managing each
stage of production
Quality Assurance focuses on the
performance of workers, urging
employees to strive for “zero defects’

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 TQM: Creating an Organization
Dedicated to Continuous Improvement
Total Quality Management is a comprehensive
approach—led by top managers and supported
throughout the organization—dedicated to continuous
quality improvement, training and customer
satisfaction
Four Components of TQM:
1. Make Continuous Improvement a Priority
2. Get Every Employee Involved
3. Listen to and Learn from Customers and Employees
4. Use Accurate Standards to Identify and Eliminate
Problems
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 The Learning Organization
A Learning Organization is an organization
that actively creates, acquires, and transfers
knowledge within itself and is able to modify its
behavior to reflect new knowledge

1. Creating and Acquiring Knowledge

2. Transferring Knowledge
3. Modifying Behavior

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Manager’s Focus in a Learning
Organization:
Build a commitment to learning
Work to generate ideas with impact
Work to generalize ideas with impact

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“A good theory
explains, predicts,
and delights”
Karl Weick

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