GBU 205: MANAGEMENT & ORGANISATIONAL

BEHAVIOR
WEEK 3

APPROACHES TO THE STUDY OF

ORGANISATIONAL BEHAVIOR AND
MANAGEMENT

(The Development of Management and

Organisational Behaviour)

By Grace Abban - Ampiah

Learning Outcomes
At the end of this lecture, students will be
able to:

Recognise how management principles and

practice have changed over the years before
(1900s).

Understand the significance of the different

approaches of management and organisational
behaviour to the present-day management.
Content
Evolution of Management (Historical Roots of
Management and Organizational Behaviour)

Management before the Industrial revolution (1900s).

Management during the Rapid industrialization and

Technological advancement (Before 18th and 19thth
Century)

Contributions of Management Schools of thought

towards the evolution of Management Studies.

Relevance of theories of management to present-day

Management in organizations.
Lecture Structure
Reasons why understanding the history of
management thought is important to
managers.
Evolution of Management
Management before Industrial Revolution
Period

Management during the rapid Industrial

Revolution
Lecture Structure
Contributions of Management Schools of thought
towards the evolution of Management Studies.

Classical Management School

Scientific Management theory (Frederick .W.Taylor)
Administrative Management Theory (Henri Fayol)
Bureaucratic Management theory (Max Weber)

Behavioural (Human Relations Management School)

Hawthorne Studies (Elton Mayo)

Modern Management Theory

Contingency Management theory
 Introduction

The main motive for the

evolution of the management
theories is to search for better
ways for ensuring organizational
efficiency
Group Exercise
Discuss the reasons why it is important for
managers/future managers to study and understand
the work of Past Theorists towards the
development of management and organizational
Behaviour in this dynamic and changing world.

Elect a leader to present your comments to the class.

 Why is it important for managers to study
and understand past theorists in this
changing business
It is important for managers to study and understand Past theorists
because of the following:

In order to become an successful manager requires an

appreciation of early ideas in management and reasons for its
development.

The theories still form a vital part of the build up body of

management knowledge.

It ensures that managers does not have to re-invent ideas that

have been generated by others.

Early ideas form the basis for current understanding and boost
your ability to develop new ideas.
 Management before the
Industrial Revolution
Before the industrial revolution:

There was no management theory.

Most people worked in small workshops.

Most people used horses for plowing the field

and simple tools for manufacturing of
products.
 Management before
Industrial revolution
Continued
Management was based on trial and
error with little or not theory.

There was no common body of

knowledge or theoretical basis for
managing resources.

There was no best practices (lack of

sharing of ideas influenced the
management practices in the world).
Management before the Industrial
Revolution (Before 20th Century)
Industrial Revolution Era (1700-1785) in
England

What is Industrial Revolution?

This refers to a major change in an economy which is

characterized by replacement of the use of primitive
tools to rapid expansion of mechanical industries or
power driven tools. E.g. use of steam engine for
performing work in textiles and steel factories.
 Characteristics of Industrial
Revolution in England/USA
Inventions of different machinery used
in factories E.g. manufacturing, textiles
e.t.c
Improved transportation (railways)
for moving goods and resources from one
place to another.
Available Electricity for production of
products in factories.
High demand for goods and services.
Concentration of workforce in factories.
 When and How did
management evolved
Management began during the
advancement in large manufacturing
industries (Industrial revolution) resulting in
increased in the number of employees:

Inefficiencies during Industrial Revolution

Workers became dissatisfied with their working
conditions.
Many workers lacked the required training on
how to do their work efficiently.

These problems, made managers to attempt to

find possible way for workers to perform their work
efficiently.
 Classical Theories of
Management

Classical School of thought represent

one of the earliest theories about
management of people at work.

Contributions Classical theories emphasized their

to Management main attention on organization
structure.

They believe that if the structure of the

organization is well-designed then
organizational effectiveness shall be
accomplished.
 Classical Theories of
Management Contd
Classical 1. Scientific Management (Frederick W.
Management Taylor)
Schools
Contributor

2. Administrative Management (Henri

Fayol)

3. Bureaucracy (Max Weber)

Aim/Objective Increase Productivity and Efficiency

 Scientific Management School
Contribution towards Management
Studies
Founder of Frederick W. Taylor (1890 -
Scientific 1915)
Management
School
Focus of Formulated scientific
Management management principles:

Focused his attention of one

aspect of organization
structure the design of
jobs.
Scientific Management Tools
to ensure
efficiency/Productivity
Work Study: involves all techniques used
to assessing work methods and equipment
used in performing a job in order to ensure
maximum outputs.

Work measurement; is concerned with

the length of time it takes an employee to
complete a work task.
 Scientific Management School Steps
to design Job Structure
Design of Job 1. Systematic analysis of all work
Structure processes and procedure.

a) Work study: Analyze all work

techniques, methods,
equipments for performing job.

. b) Work Measurement.
(determine the average time a
worker spend to complete
work.) E.g. Hourly basis.

2. Determine standardized
techniques, methods,
equipments for performing a job.
Scientific Management
School Steps to design Job
Structure
Design of Job Structure Training: Scientifically
Select workers and develop
them through appropriate
training (E.g. development of
skills and ability on their job
role)

3. Close co-operation
between managers and
employees to ensure better
results and no interruptions.

4. Reward: Provide
incentives to workers.
 Practical Example of a
Classical Manager
If for example Peter is a Classical Manager
working in a Textile Manufacturing Industry

Peter must have a good understanding of

the business functions to enable her
structure the organization based on task
assigned to individuals.
Scientific Management
School - Work Study
Process
Break down process into how products are
produced into 3 main parts.

1. Identify what needs to be done in the

organization.
( job definition/task roles and responsibilities).
E.g.
Processing of products
Distributing of products
Managing of raw materials
 Scientific Management
School - Work Study
2. List the skills that needs to help the work to be
done:

A person with knowledge and skills in

production (Production Manager).
A person with knowledge and skills in
Sales (Sales Manager).
A person with knowledge and skills in
manufacturing raw material (Material
Management Supervisor)

3. Training: Equip workers with the knowledge

and skills required for the job.
Scientific Management
School Work Measurement
Reward workers efforts based on the
average length time of to accomplish task.

E.g. hourly based.

Basic Scientific management
Principle
 Relevance of scientific Management to
Modern Management
It has help to avoid using common sense or
rule of thumb but to focus on scientific
method to study work and the most efficient
way to perform.

It has helped to match workers to their jobs

based on their abilities, motivation and to
train them to perform efficiently. E.g.
recruitment and selection

Use of performance related-pay, financial

incentives, bonuses, and total quality
management.
Relevance of scientific Management
to Modern Management
It has helped to review and monitor
workers performance by providing them
with good supervision and
instructions.

It enables managers to concentrate on

planning and organizing which helps
employees to perform creditably.
Exercise
Spend few minutes to divide yourselves
into groups and reflect on the advantages
and disadvantages of the Scientific
Management School of Thought.

Select a leader to present your views to the

class
 Advantages and
disadvantages of Scientific
Management
Advantages Disadvantages
Application and use High investment in
of scientific capital for
methods. E.g. Work establishment of
study, and work planning department,
measurement in large work-study,
companies(Public standardized tools and
sectors) .E.g. training of workers.
manufacturing Applicable in only
industries. large companies
Broad scope for rather than small
specialization and businesses.
accurate planning.
 Advantages and disadvantages
of Scientific Management
School

Advantages Disadvantages
Benefits to workers Repetitive tasks, E.g.

(higher wages and employee boredom, no

job rotation.
less burden of work),
Focus on quantity, not
management.
quality
Minimum wastages
More power is given to
of materials, time management rather than
and money. workers.
Cordial relations Does not encourage
between workers and creativity and
management. initiatives of workers
 Contributions of Administrative
Management (Henri Fayol,
1916)
According to Henri Fayol, management is part of
our life e.g. home, work, School.
He introduced five management principles to
ensure organizational effectiveness.

Planning: forecasting and determining what

will be needed to achieve organizational goals.

Organizing: involves mobilizing all the

necessary resources needed to accomplish
task/goals.
 Contributions of Administrative
Management (Henri Fayol,
1916)
Commanding: ensuring that the necessary
actions are done to achieve organizational
goals.
E.g. Motivating, persuading and convincing
people to help achieve productivity. Provide
feedback, incentives, recognition.

Co-ordinating: ensuring that group or

individuals are working together effectively.

Controlling: Ensuring that rules and regulation

are followed. E.g. review and monitor work.
 Administrative Management
theory (Henri Fayol, 1916)
Henri Fayols management functions into six
groups

Work Organization Meaning

Activities

Technical Production and manufacture

Commercial buying & selling - exchange

(banking, insurance,
warehousing, advertising);

Financial seek for optimum use of

(capital banking, insurance)
Administrative
Management theory
(Henri Fayol, 1916)
Security Protection of
organizational
property
Accounting stocktaking,
balance sheets,
costs, statistics
Management Planning,
organizing,
commanding and
controlling
activities.
Bureaucracy Max Weber
Define Bureaucracy?

Bureaucracy refers to a formal

administrative system governing a large
institution.
 Characteristics of
Bureaucracy Max Weber
Written Rules and Regulations to eliminate
managerial inconsistencies.

Authority: The power to hold people

responsible for their actions.

Promotions or Positions: Positions given to

employees should be based on performance
and not social contacts (Whom you
know).
 Characteristics of
Bureaucracy Max Weber
Clearly define position responsibilities:
should be clearly defined to help employees to
understand what is expected of them.

Lines of Authority: should be clearly

recognized, this is to help them know who they
reports to.
 Bureaucracy - Max Weber
Objective Strategy Criticism
Bureaucracy An ideal type 1. Formal Written Failed to recognize
of Organization. (Focus on rules to control barriers to
formal Organizational employees communication. (E.g.
Structure) behaviors'. Hierarchical system)

2. Well-defined
hierarchy (High
level management
control lower level
management).

3. Strict Chain of
command to link
top level
management to
lowest-level
management
(each member
reports to only a
single superior)
 Bereaucracy Max Weber
Objective Strategy Criticism

How 4. Unity of Command: 1. One best way

organization employees should receive of doing things.
operates orders from one person.
(Organizational 2. Elimination of
Structure) 5. Impersonal Treatment: study of human
promotion and selection is behaviours
based on competence.

6. Permanent Career
Commitment: Employment
is viewed as a lifelong
obligation on the part of the
organization

7. Division of Labour
(Employees doing what they
can do best).
Significance of Bureaucracy
in Modern Management
Companies all over the world have adopted
bureaucratic management principles.

E.g. Public sector organizations--

commonly known as bureaucracies--rely on
formal processes and hierarchies to achieve
stable structures and consistent results.
Relevance of Bureaucracy Management
Theory on Modern Organizational
Development.
Bureaucratic Impacthas
The Classical Management Theory on Modern
helped to improve
Management Theory Organization
organizational effectiveness Development
in recent times

Clear Organization Most organization have

hierarchy (Levels of adopted the Hierarchical
management) organizational structure
levels)with clearly defined
roles (the three distinct
hierarchy namely top,
Middle and lower
Management Levels.
Division of Labour Employees roles are clearly
defined with the use of job
descriptions. Projects are
broken down into smaller
tasks that are very simple
and easy to accomplish.
 Relevance of Bureaucracy
Management Theory on Modern
Organizational Development Contd
Impact on Modern
Bureaucratic Organization
Management Theory Development

Autocratic leadership Organizations' have

single leader who
control subordinates
to ensure that
organizational goals are
achieved.
 Criticism/Shortfall of
Bureaucracy Max Weber
Requiring all managers to strict set of
rules and regulations (guidelines)
does not encourage creativity in the
organization

It makes employees to find it difficult to

adapt to change.
Criticisms/Shortfalls of Classical
Management School of Thought
1. Treated humans as machines.(E.g.
Taylors Scientific management Theory).

2. Focus on one best way' of improving

on performance. E.g. Each Theorist
provided one way of achieving
organizational efficiency.
E.g. Taylor focused on systematic
analysis of work processes and
related techniques to achieve
productivity and efficiency
 Behavioural Management Theory (Human
Relations Movement ) Elton W. Mayo
This School of Thought was founded by Elton W. Mayo

Unlikethe Scientific Management School of

thought which focuses on organisational structure.

Aim: Human Relations Movement concentrates on

relationships between employees and employers
(Social and non-economic conditions).

Purpose of Hawthorne Studies

Investigated how psychological and social factors
affect productivity and work adjustment.
Role Play exercise
Do a role play on the Hawthorne Studies.

Characters
1.Elton Mayo (Researcher) and other
researchers.
2.Two people to work under lightning
conditions
3.Two people to work under low lightning
conditions
Class comments on the role play. (Individuals
behaviour)
Evolution of behavioural management theory
(Human Relations Movement) Hawthorne
Studies
Experiment 1- lighting Levels and Worker Productivity

Objective: To determine the impact of illumination(lighting,

whether dim or bright ) had effect on work productivity.

Description of Experiment:
Two groups of females were observed.
One group worked under a control room condition without any
changes in lighting.
Other group worked whiles lighting were varied (changes in
lighting whether dim or bright)

Results:
Productivity increased in both locations. Thus the output of
lighting remained high even when the lighting was so low that
workers could hardly see what they were doing.
Evolution of behavioural management theory
(Human Relations Movement) Hawthorne
Studies
Experiment 2 - Banking Wiring Room

Objective: To determine the impact of social factors and supervisory

management on employees productivity.

Description of Experiment
Diverse male work groups were observed during regular working
conditions and interviewed afterwards after work. These included the
following privileges:
Leave their workstation without permission.
Enjoy Lunch
Take rest periods.
Results:
Increased Productivity was based on the fact that they were being studied
enabled them feel more motivated to perform effectively.
To whom much is given, much is expected
 Conclusions of Hawthorne
Studies
Interview of Women: They said they were motivated to work
because of attention from supervisor (Social factors) and not
the monetary factors resulting in the following:

Self esteem improved

They felt important
Supervisor valued their output
Happy being part of a team

Conclusion: People should be treated as human beings not as

machines.

.
 Relevance of Human
Relations Management
Theory
Managers roles include caring and being
concern about employees work needs and
well-being

It is important to ensure teamwork.

 Relevance of Human
Relations Management
Theory
Contemporary/Modern Management
-(Contingency Approach)

This approach recognize that there is no one best to

Improve , rather an appropriate style depends on the
demands of the situation.

(Johns . G and Saks, A. M)

.
 Contemporary Management -
(Contingency Approach)
Contributors:

John Woodward Fielder

Lorsch and Law
 Characteristics of Contingency
Management Approach
No one best way to resolving issues in
the organization because:

Every organization has its own

challenges and problem and should
resolve each problem according to the
situation.

Eg. organization is influenced by

External and internal factors.
 Factors influencing
Organisations
effectiveness
Internal factors External factors
Scarce resources (E.g. Changes in technology
physical and human creativity and
resources) innovation.
Incompetent human Government Legislation

resources. on (Taxes, tarriff on

Organizational
structure
Organizational culture
Eg. Leadership styles
Strength of employees
E.g. skills and abilities
imported goods)
Economic conditions
inflation rate (high
inflation lowers purchasing
power), High interest
rate fall in demand of
goods in the economy
 Relevance of modern Management
School - (Contingency Approach)
Managers with the contingency view use
a flexible approach in managing workers
in the organization.

E.g. Draws on variety of theories,

experience and evaluate many options to
enable them solve problems.

Analyze and understand situation and

respond accordingly.
McGregor X and Y Theory
Theory X Theory Y
Managers assumes Managers have the
that: notion that:
Workers are lazy Workers can think for
They dislike work themselves
They need to be They want
forced to work hard. responsibility and
They need close variety of work
supervision to help They are creative.
them to be more
productive
 Relevance of
Theory Y (By McGregors Theory)
Assumptions
Workers are hardworking and perform best in a
right working conditions.

They are seen as the most important assets of

the organization not financial resources,
Machinery, and Equipment.

Managers should be abreast with both

traditional and contemporary theories of
management as well as devise others measures
to ensure organizational effectiveness.
Conclusion

It is important for all managers

and aspiring managers to study
Past Theorists contributions
toward Management and
Organizational Behaviour to
enable them devise suitable
ways to ensure organizational
effectiveness.
Reading Assignment
Critically examine the following School
of Thought contributions towards
Management.

Systems Management Theory

Quantitative Management Theory
Conclusion
What do successful Managers do?

Successful Managers not only focus on theories of

organizational Behavior but extends these approaches in
order to meet the demands of the dynamic environment
and
globalization