ext.

The more you read about the topic, the more mterestmg It becomes as it has practical applications
in day-to-day life. The following paragraphs will give you more insight into human behaviour at work.

Organisations are created to bring order to a concerted effort for the achievement of certain objectives
and goals. Since these objectives cannot be achieved by an individual or by a small group of individuals,
the concepts of division of labour, hierarchy of authority, etc. within an organization come into play.
Since an individual cannot achieve the objectives of an organisation, it is necessary that many people
come together in pursuit of the objectives of an organisation. However, in order that their efforts are
consequential, they need to be tied in a meaningful relationship. This is achieved by creating a structure,
where people work using technology. In a typical organisation, therefore, there is a constant interaction
among peOple, structure and technology. In order that this relationship bears fruits, every organisation
contains a blueprint of human behaviour at work.

There can be a definite ratio of input to output when it comes to other inanimate factors of production
but in the case of human beings, there cannot be any such Iixed ratio. If the manager handles this
human element properly, two plus two can equal live, or else it can be three. It is, therefore, necessary
for the manager not only to understand human behavior properly but also to channelise that
understanding towards the betterment of the organisation. It is a fact that no manager can be much
more efficient than the sum of the efficiencies of the people working with him. It, therefore, becomes
necessary for him to study human behaviour within the context of an organisation, understand it. ll)’ ‘0
predict human behaviour and, having predicted it, try to control it.

The industrial scene in modem India has undergone tremendous changes The Government of India, until
the last decade of the last century, protected the Indian industry from foreign competition. The
Government which droyt out Coca Cola in the 703, threw open the economy to the multinationals m

1992. The multinationals, which entered the Indian market. enjoyed superior resources in terms of
money. technology as well as market network. With a new

to facing the challenges posed by the multinationals, a sea change in the attitude of the workforce of
organisations was necessary. The reeponsibiiity to do this fcli squarely on the shoulders of every
manager. It called for knowledge of the human behaviour at work.

The composition of the workforce has undergone a huge change. The industrial worker of today is more
educated than his counterpart some ten or fifteen years before. The mix of the skills has also changed. if
a manager desires to be effective, he must understand the behavioural anguiarities of the employees. In
a nutshell, to be efficient as well to be effective, a manager cannot remain content with having the
knowledge of his area of work only. Typically, the discipline of Organisational Behaviour (OB) attempts
to accumulate the knowledge about human behaviour at work from which the manager can draw
insights for understanding. predicting and controlling human behaviour at work.

Modem managers cannot aiTord to have hits and misses. It is expected that they hit the bull’s eye in the
first attempt. Therefore, every manager, irrespective of his specialty or the functional area, should study
the discipline of Organisational Behaviour.

12 HISTORICAL DEVELOPMENT OF ORGANISATIONAL BEHAVIOUR

The field of Organisational Behaviour has developed from the studies conducted by behavioural
scientists such as industrial psychologists, psychologists and sociologists. The focus of these studies lies
in the understanding of human behaviour in the organisations. The levels at which these studies have
been carried out relate to individuals, small groups, intergroups and the total organisation as a socio-
economic and technical system. Some studies have also examined the interaction of the organisation
with its environment.

The discipline of Organisational Behaviour is based on empirical studies of human behaviour at the work
settings. On the other hand, human relations is the study of behavioural knowledge at work to develop
human motivation towards the attainment of organisational goals. Human relations is an action
oriented and a goal-directed approach. According to Keith Davis, the difference between the two is that
of between a pathologist and the physician. While the pathologist attempts to understand human
illness, the physician tends to employ that knowledge to gain results. Thus, organisational behaviour and
human relations are complementary to each other.

Behavioural scientists focus their attention on orgartisauonai the!) especially organisational adaptability,
thc relationship oforgamsanonai :wcg to human behaviour and decision-making. The study Of
managegaéutie? be includes not only the tasks of getting things done through noh su z whys and hows
of mdiv dual behaviour Questions th t on ‘ ofOrgamsanonai behavior‘ are ”related to individual
interpersonal:,small groupand intergroup behaviour, interaction of formal organisation and the informal
groups and organisation as a system, etc.

The predecessors of Organisational Behaviour are:

1.

Industrial psychology: Psychology is the “science of human (and also animal) behaviour because it
collects facts about behaviour by utilizing methods of science.” Industrial psychology is simply the
application or extension of psychological facts and principles concerning human beings operating within
the context of business and industry. Industrial psychology draws upon the facts, generalizations and
principles of psychology. It uses the methods from the parent discipline. Since it applies the techniques
of psychology to the industrial scene and the problems confronting it, industrial psychology formulates
and modifies procedures to meet the conditions found in the industry rather than in the laboratory,

Among the early names is Walter Dill Scott who ushered in the beginning of industrial psychology in
America by showing how psychology could be applied to advertising and selling. Edward K. Strong Jr.
introduced the branch of industrial psychology dealing with guidance on vocational interests. Hugo
Munsterberg with his researches on industrial accidents and his book Psychology and Industrial
Efficiency, published in l9i3, put industrial psychology in to the study of the worker.

Dun'ng World War I, psychologists were quite active in the war effort, developing group tests for army
recruits and aiding in the development of procedures for the selection of personnel. In fact, many of the
postwar developmental areas of industrial psychology, such as group testing, trade testing, rating scales,
and personality inventory had their roots in the activities of the psychologists in the World War I efforts.

During the post-World War I era, industry first began to show an interest in the discipline of industrial
psychology. Certain fnms, such as Procter & Gamble, the Philadelphia Company and the Hawthorne
plant of Western Electric Co. formed their own personnel research programmes. In fact, it was at the
Hawthorne Western Electric Plant that the famous Hawthome studies began in 1924. These studies
provided the foundation and impetus for the expansion of industrial psychology beyond the realm of
selection. placement and working conditions to the study of motivation, morale and human relations.

Scientific management movement: Frederick W. Taylor with his ideas. which he called “scientific
management”, created the interest in the worker and the supervisor. He advocated parity of wages v
internal as well as external parity. He developed various wage payment plans and insisted on
supervisory training in order to make supervisors 3 strong link between non-management and the
management group. F. \N. Taylor also recognized the need for giving financial incentives to workers and
therefore, developed incentive payment plans too. The changes he brought to management thought
paved the way for the later development of Organisational Behaviour3‘ Human relations movement:
According to Fred humans. three ma cumulatively uxhered in the era of human relations movement.
Tiny are:

a) The Great Depreesion b) {be Hawthorne experiments c) Rine of trade unionism

Them: Mentb have been described m deuul in the next DCCIIOR.

9 Check your Progress 1

Multiple Choice Single Response.

1, The application of psychological facts concemmg human MW" within the context of business and
indusu‘Y ‘5 known as: i. Sociobgy

ii. Psychology

iii. industrial Psychology

W. Organisational Behaviour
The pnncapies of scxmtmc management were given by: i. Abraham Maslow

ii. Elton Mayo

iii. Frederick W. Taylor

iv. Frederick Irvmg Herzberg

1»

“i” Activity 1

Arrange the following 111 the correct order of emergence: E. Organisational behavmur 2. Scic