OrganisationalBehaviourClassicalTheoriesofOrganisationalStructure

Classicalmanagementtheoriescanbedividedintothreeareasasfollow:

1.ScientificManagementTheory(Taylorism):FrederickTaylor(18561915)is
thefatherofScientificManagementtheory.Heproposedinthistheorythathowproductivityofworkerscanbe
improvedbyapplyingscientificmethodstotheirwork.Headvocatedforincentivewagesystemthroughwhich
workerscanearnextrafortheirextraworkandthemanagementcanearnextrarevenues.Whichalsohelpsin
buildingemployees'motivationtoworkattheirfullcapacity.Heuseddifferentscientifictechniquessuchastime
andmotionstudies,Gnattchart,etcfordevelopingscientificmethodsofperformingtasks.
PrinciplesofScientificManagement
Taylor'sfourimportantprinciplesofscientificmanagementareasfollow:
1.Developascienceforeachtaskofaman'sworkandreplaceitwiththeoldruleofthumb.
2.Scientificallyselectandthentrain,teachanddeveloptheworkman.
3.Managementshouldheartilycooperatewiththeworkerssothatitensuresthatalltheworkhasbeendonein
accordancewiththescientificmethodswhichhavebeendeveloped.
4.Divideequallytheworkandresponsibilityamongmanagementandworkers.Themanagementtakeoveralmost
alltheworkforwhichtheyarebetterfittedthantheworkmen.

2.AdministrativeManagementTheory(Fayolism)

3.BureaucraticManagementTheory
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OrganisationalBehaviourMaxWeber'sBureaucraticManagement
Theory
MaxWeber(18641920)aGermansociologististhefatherofbureaucratictheoryofmanagement.Hewrotethe
book"TheTheoryofsocialandEconomicOrganisation."AccordingtohimBureaucracyistheorganisational
structurewithhighlyroutineoperatingtasksperformedunderformalisedrulesandregulationswithtasksassigned
tovariousdepartments.Itistheformalsystemoforganisationandadministrationdesignedtoensureefficiency
andeffectiveness.
PrinciplesofBureaucracy
1.Divisionofwork:Workisdividedintosimple,routineandwelldefinedtasksandcategorisedonthebasis
ofcompetencyandspecialisation.
2.Hierarchy:Positionsinanorganisationareorganisedinanhierarchywheresuperiorscontroltheir
subordinates.
3.RulesandRegulations:Theorganisationisgovernedbycertainrulesandregulationswhichhavetobe
strictlyfollowed.Itgovernsdecisionmakingandleadstoimpersonalrelationships.
4.Impersonalrelations:Theconductofamanagershouldbehighlyformalandimpersonal,notaffectedbyhis
personalityandpersonalrelations.Heshouldtreatalltheemployeesequally.
5.Employment:Selectionoftheemployeesistotallyformalbasedonhisperformanceinselectionexamand
technicalknowledge.Thereisaprobationperiodandafterthatemployeeisafulltimeemployeeprotectedfrom

arbitrarydismissal.
6.Jurisdiction:Jurisdictionofworkisclearlydefinedbyrulesandofficialdutiesandisnotgovernedby
superior'sorderonly.
7.Departmentalisation:Similarkindoftasksaregroupedintofunctionaldepartments.
8.Records:Awrittenrecordofdaytodayalltheofficialactivitiesismaintainedinfiles.
9.Rationality:Decisionmakingisbasedonrationalityontheprescribedrulesandregulationsandnotuponones
liking.
10.Compensation:Compensationofthebureaucratsisnotbasedonworkdonebythembutonthebasisofrank
heldbythemintheorganisation.Theyarecompensatedbyregularsalaryandfacilityofpensionfortheiroldage.
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Tuesday,May27,2014

OrganisationalBehaviourFayol'sAdministrativeManagementTheory
HenryFayol(18411925)wasaFrenchmanagementtheorist.HedevelopedAdministrativetheoryof
managementandwrotethebook"GeneralandIndustrialAdministration".ThistheoryisalsoknownasFayolism.
Hedeveloped14principlesthatcanbeusedbymanagementtocoordinatetheinternal(administrative)activitiesof
anorganisation.OthertheoristswhocontributedtotoadministrativemanagementtheorywereJamesD.Mooney,
Sheldon,Urwick,LutherH.Gulick.
Fayol'sfunctionsofmanagement:
1.Planning
2.Organising
3.Commanding
4.Coordinationgand
5.Controling
Fayolclassifiedbusinessoperationsintosixmajoractivities:
1.Technical
2.Commercial
3.Financial
4.Security
5.Accountingand
6.Managerial
Fayol's14PrinciplesofManagement:
1.Divisionofwork:Workofallkindmustbedividedandsubdividedandthenallottedtovariouspersons
accordingtotheirexpertiseinaparticulararea.Specialisationleadstoefficiencyandeconomyinbusiness.
2.Authority:Authorityandresponsibilitycomestogether.Managersmustbegivenauthorityforperforming
tasks.
3.Discipline:Disciplinemeanssincerity,obedience,respectofauthorityandobservanceofrulesandregulations
oftheenterprise.Itcanbeenforcedbytheeffectiveleadershipandpunishmentcanbeappliedjudiciouslywhenever
required.
4.Unityofcommand:Subordinatesshouldreceiveordersfromonlyonesuperioratatimeandtheyshouldbe
accountabletotheirordersonly.
5.Unityofdirection:Thereshouldbeoneplanforactivitieshavingsimilarobjectivesandtheseactivitiesshould
begroupedtogether.Theyshouldalsobeunderthecommandofaparticularmanager.
6.Equity:Managersshouldbefairandimpartialwhiledealingwiththesubordinates.

7.Order:Thereshouldbesystematicarrangementofthingsandpeopleintheorganisation.
8.Subordinationofindividualinteresttothegeneralinterest:Thereshouldbeharmonybetween
individualandorganisation'sinterests.Organisation'sinterestshouldprevailoverindividualinterest.
9.Remuneration:Remunerationpaidtotheemployeesshouldbefair,reasonable,satisfactoryandrewardingto
theefforts.
10.Centralisationanddecentralisation:Centralisationisconcentrationofpowertothemanagementand
decentralisationisdisseminionationofpowertosubordinates.Degreeofcentralisationanddecentralisation
dependsonsizeofbusiness,experienceofsuperiors,dependabilityandabilityofsubordinates,etc.
11.ScalarChain:Itisthechainofauthorityfromtopmostleveltothelowestlevel.Normallycommunicationis
donefollowingthechainofauthority.Butifthereisurgencycommunicationshouldbedonedirectlybetweenthe
senderandultimatereceivercuttingshortthechainofauthoritywhichisknownasGangPlank.
12StabilityofTenure:Tenureofemployeeataparticularjobshouldbefixedsothathegetusedtothatworkand
becomeefficientatitwhichwillincreasequalityaswellasquantityofhiswork.
13.Initiative:Managementshouldprovidehealthyenvironmenttohisemployeestotakeinitiative,suggestideas,
experiencesandnewandimprovedmethodsofperformingjobs.Monetaryandnonmonetaryincentivescanbe
usefulinthis.
14.EspiritDe'Corps:Encouragingteamspirit,understanding,andtrustamongworkgroupshelpsthemto
performbetterandtheyoffertheirbesttowardstheorganisation.
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Wednesday,May14,2014

OrganisationalBehaviourSkillsandRolesinanorganisation
ManagementSkills
Skillsarethosemindtoolswithwhichamanagerperformscertaintasks.Differentkindofskillsarerequiredto
performdifferenttasks.AccordingtoKatztherearethreeessentialbasicskillswhichamanagerneedstoperforma
task.Theseareasfollow:
1.TechnicalSkills:TechnicalskillsaretheproficiencyandknowledgerequiredinanspecificarealikeITskillsin
thefieldofIT,Financeskillsforfinancework,MechanicalEngineering,Architectureforbuildings,etc.Technical
skillsaremorerequiredattheexecutionlevelofaprojectforjuniorandmiddlemanagementlevel.
2.InterpersonalSkills:Interpersonalskillsofamanagershowshowheinteractswithsubordinates,peers,
seniors,customersandbusinesspartners.Interpersonalskillsarerequiredatallthelevelsinanorganisation.It
helpsamanagertounderstand,tomotivateandtoresoleconflictifanyinhisteam.Ithelpshimtoleadtheteam
effectivelybyknowingeverypersonofhisteamwell,bytakingmaximumoutputfromthestrengthsofhisteam
member.Itincludesmotivationalskills,understandingother'sperceptionandattitude,communicationskills,
negotiationskills,etc.Thesearenormallycalledassoftskills.
3.ConceptualSkills:Conceptualskillsaremorerequiredatthetopmanagementlevelastheyarethepeoplewho
arebasicallyinvolvedingivingdirectiontotheorganisationandbigdecisionmaking.Conceptualskillsarethose
skillswhichhelpsamanagertoseetheorganisationinabigpicturelikeimpactofupcominggovernmentpoliciesin
therelatedfield,buddingcompetition,expansionplansinanewterritory,needofamarketingcampaign,etc.It
helpsamanagertounderstandtherelationshipbetweenvarioussubunitsandvisualizehoworganisationfitinto
thisbroaderenvironment.

Rolesinanorganisation

AccordingtoMintzberg(1975)managersofalllevelsofhierarchybehaveinthesameway,carryintoeffect
similaractivitiesandthereforefulfillsimilarroles.Hedividedtheseactivitiesinto10rolesanddefinesthemas
organizedsetofbehaviours.
FurtherStonerandWankel(1997)groupedthese10rolesinto3mainrolesas:
1.InterpersonalRoles:Interpersonalrolesareconcernedwithcreatingandmaintaininginterpersonal
relationshipsinwork.Theseare:
a)Figureheadrole:Managerrepresentsorganisationinallmattersofformality,legalityandsociallytoinsideor
outsidetheorganisation.Heislikeasymbolicoftheorganisation.
b)LeaderRole:Managerbeingaleaderofthedepartmentsetsgoals,makesplantoreachthegoal,motivates
employeeslookaftertheirneedsandleadstheteamtoachievethatgoal.
c)Liaisonrole:Managerinteractswithpeopleinsideandoutsidetheorganisationtogainvaluableinformation,
tocomeintoanagreement,togainordersfortheorganisation.
2.Informationalroles:Theseareconcernedwithinformationalaspectofmanagerialworklikereceiving,
collecting,anddisseminatinginformation.Theseare:
a)MonitorRole:Managerlooksoutforinformationregardingtheorganisation.Hecollectstheinformationfrom
inside(likeinformationregardingproblemareasoftheorganisation)aswellasoutside(informationregarding
competition,newtechnology,etc)theorganisationthroughreports,magazines,etc.
b)DisseminatorRole:Managertransmitstheimportantinformationgatheredfrominsideoroutsidethe
organisationtorelatedorganisationalmembers.Hemaydothisbyholdinginformationalmeetings,sending
reportsoremails,makingphonecallsetc.
c)Spokesperson:Managertransmitsorganisation'sinformationtooutsidelikegovernment,departments,
public,mediaetc.Thisinformationmayincludeorganisation'sannualreports,achievements,plans,policies,etc.
Theymaydoitbyholdingboardmeetingsoradvertisinginnewspapers,etc.
3.Decisionalroles:Thesearerelatedtomakingdecisions.Theseare:
a)Entrepreneur:Manageranalysesorganisation'sdevelopmentopportunitiesandpossibilitiesandbringabout
organicchangestogrowtheorganisationandmakeitmoreprofitable.Hemotivatesemployeestogivetheir
suggestionsandachieveorganisation'sobjectives.
b)DisturbanceHandler:Managertakescorrectiveactionswheneveranydisturbanceorcrisisoccursinsideor
outsidetheorganisation.Handlesdisputesamongemployees,amongemployeesandbusinesspartners,andamong
businesspartners.Thusheplaystheroleofarescuer.
c)ResourcesAllocator:Managerallocatestheorganisation'sresourceslikepeople,money,infrastructure,etcso
thatitisoptimallyutilisedandenhanceitsproductivity.Heapprovesplans,budgetsandprogrammes,andset
priorities.
d)Negotiator:Managernegotiateswiththeteam,departmentsandorganisationstodefendbusinessinterestsand
gainadvantageforhisteam,departmentandorganisation.

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Monday,May12,2014

Theconceptandsignificanceoforganisationalbehaviour
Definetion:AccordingtoStephenP.Robbins,"Organisationalbehaviour(OB)isafieldofstudythatinvestigates
theimpactthatindividuals,groups,andstructurehaveonbehaviorwithinorganizations,forthepurposeof
applyingsuchknowledgetowardimprovinganorganization'seffectiveness."
AccordingtoAldagandBrief,"OBisabranchofsocialsciencesthatseekstobuildtheoriesthatcanbeappliedto
predicting,understandingandcontrollingbehaviourinaworkorganisation."
Organisationalbehaviouristhemultidisciplinaryapproachwhichisanintegrationofdifferentfieldofstudieslike
psychology,sociology,socialpsychology,anthropology,andpoliticalscience.
OBstudieshumanbehaviouratindividuallevel,grouplevelandorganisationallevel.
Basically,organisationsaremadeupofpeoples,thereforemanagersintheorganisationmustknowhowthey
behaveinanorganisationtomakeorganisationproductive.
Determinantsofbehaviourinanorganisationare:
1.Individuals
2.Groupsand
3.Structure
ElementsofOrganisationalBehaviour
1.People:Peoplemakeuptheinternalsocialsystemoftheorganisation.Theyconsistsofindividualsandgroups.
Groupsmaybeformalorinformal.
2.Structure:Structuresdefinetheformalrelationshipbetweenpeopleinanorganisation.
3.Technology:Technologyconsistofphysicalobjects,activitiesandprocess,knowledge,etcthroughwhich
peopleaccomplishtheirtaskstoachieveorganisationalobjectives.
4.Environment:Allorganizationsoperatewithinanexternalenvironment.Itispartofalargersystemthat
containsthousandofotherelements.Thisincludesthesuppliers,customers,competitors,governmentsagencies,
employees,unions,politicalparties,andeconomic,political,cultural,technologicalandsocialfactorsinwhichthe
organizationembedded.

SignificanceofOrganisationalBehaviour
OBisconcernedwithunderstanding,applyingandcontrollingofbehaviouralandstructuralknowledgeofan
organisationfororganisation'seffectiveness.ManagementfunctionincludesPlanning,organising,leadingand
controllingwherepeopleareinvolvedindifferentroles(interpersonalroles,informationalroles,anddecisional
roles)anddifferentcapacities.Therefore,foranorganisationtosucceeditisveryimportantforittounderstandits
organisation'sculture,peoplebywayofunderstandingtheirperception,attitudes,motivation,personality,key
personalitycharacteristicsrelevanttoworkplace,learning,jobsatisfaction,etcthroughtheoriesofmotivation,
learning,andreinforcement.Andmouldtheirdissatifactiontosatisfaction,motivatethemtoachievedesired
results,providethemappropriateworkculture,growthopportunities,punishtheirinappropriatebehaviour,and
infusinglearningenvironmentandleadership.