7[n this unit, you will know about the significance of human behaviour m the Organisational

context. 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