DEFINITION OF OB

OB refers to the behavior of individual and group within organizations and the interaction between organizational members and their external environment. Three features in definition OB is the study of human behavior The study is about behavior in organization Knowledge about human behavior would be useful in improving an organizations effectiveness.

ORIGIN OF OB
INDUSTRIAL REVOLUTION 1. It brought about materialism, discipline, monotony, boredom, impersonality and work interdependence. 2. Robert Owen about the year 1800 was first one to emphasis the human needs of employees. He refused to employ young children and taught his workers cleanliness and improved their working condition. He is called as father of personal management 3. In 1835 Andrew Ure published The philosophy of Manufactures which include human factor as one of the factor of production. He provided workers with hot tea, medical treatment and sickness payments.

3. J.N. Tata took a special interest in the welfare of his workers. He installed the first humidifiers and fire sprinklers in this factory. In 1886 he instituted a pension funds and in 1895 begun to pay accident compensation

SCIENTIFIC MANAGEMENT
1. Taylor is called father of scientific management 2. He advocated the selection of right people for right jobs, training them adequately, placing them in job which they were best suited and remunerating them. 3. He published his major work Principles of Scientific Management in 1911.

 HUMAN RELATIONS MOVEMENT

1. Failure of Scientific Management gave birth to the human relation movement which emphasis on employee cooperation and morale. 2. People were treated as human beings and not as machines. Their needs and wants were listened and involved in decision making. 3. There are 3 most important contributing factor for human relation A. Great Depression B. The Labour Movement C. Hawthorne Studies

A. Great Depression 1. The stock exchange crashed of 1929 in America marked the beginning of the Great Depression 2. The consequence of the Depression were wide spread unemployment, decline of purchasing power, collapse of markets and low standard of living 3. Positive outcome of Depression was that management began to realize that production alone could not be its major function. Marketing, Finance and personnel were also required for business to survive and grow.

B. Labour Movement 1. Exploited workers realize that their protection lay in their own hands. They formed unions and had desired effect on management. 2. Management began to place primary emphasis on employee relation and secondary on wages, hours of work and condition of employment. C. Hawthorne Studies The were carried out at the Western Electrical Companys Hawthorne works in Cicero, a suburb of Chicago and was closely linked with Elton Mayo.

 Elton Mayo is called father of human relations movement Hawthorne studies reflected the Scientific management tradition of seeking greater efficiency by improving the tools It studies on the relation between lighting and productivity that were conducted by the National Research council. The research involve 3 sets. 1. Illuminating Studies 2. The Relay Assembly Room Study 3. The Bank Wiring Room Study

1. ILLUMINATION STUDIES The experiment took place between 1924 and 1927 In this study lighting was decreased over successive period for the experimental group while it was at a constant level for the control group The researchers were surprised to discover that productivity increased roughly at the same rate in both the group. In final experiment, light was decreased to 0.06 foot candle (moonlight intensity) the performance in the experiment group declined as the workers complained that they could not see anything. In the first round experiment they came to know that peoples knowledge that they are being studied leads them to modify their behavior.

2. THE RELAY ASSEMBLY ROOM STUDY

Experiment took place between 1927 and 1933 Five women who assembled electrical relays in Royal Assembly Test Room, where they were away from other workers and researchers could alter work condition and evaluate the result Researchers changed the supervision arrangement and workers would operate under the general direction of researchers Workers were given special privileges such as being able to leave their work station without permission, free mid morning lunch and variation in the method of payment. Productivity increased over a period of study, regardless of how the factors were manipulated

 The

study concluded that the change in the supervision arrangement was the major reason for the increase in the productivity and physical changes such as free lunch and incentives were of lesser importance

3. THE BANK WIRING ROOM STUDY The study was conducted between 1931 and 1932 It is based on the findings of second set. A group of 14 men who wired telephone banks was observed in a standard shop condition The observer take continuous note on worker's condition & was not allowed to give orders or involve in conversation with workers. It took 3 weeks to settle behavior of workers. The workers were relatively free from constant supervision. It was noted that workers established an informal daily norms of 6600 units per person & some of the men could do more than 6600 units but if they indicated that they would be more productive & become victims of harassment.

 The researchers concluded that the behavioral norms set by the work group had a powerful influence over the productivity of the group. The higher the norms, the greater the productivity . Lower the norms ,the lower the productivity

NATURE OF OB
1. What are Organizations ? Organization are as old as human race Organization are people who work together to achieve a set of goals An individual or a group of people who believe that they possess the necessary skill and knowledge form an organization to produce goods and services 2. Why do Organization Exist ? To increase specialization and the Division of Labour Use large scale technology Manage the external environment Economize on transaction cost Exert power and control

ORGANIZATIONAL EFFECTIVENESS
Organization are said to be effective when they produce quality goods & service at reasonable cost without compromising on profit making Satisfy Stakeholders (customer, suppliers, employees and investors)

CONTEMPORARY OB
An Interdisciplinary focus Psychology: Science or study of behaviour & include human and animal behavior Sociology: Study of group behaviour. Interpersonal dynamics like leadership, communication. Social Psychology: It focuses on the influence of people on one another Anthropology: Study of human race & its culture Political Science: Study the behaviours of individual and group within a political environment Engineering: It is concern with work measurement, productivity measurement, workflow analysis & design

 Scope of OB: Study of individual behaviour, interpersonal behaviour and of organization themselves. Intrapersonal behaviour: Personality, attitude, perception, learning, motivation, job satisfaction and stress management Interpersonal behaviour: Group dynamic, team dynamics, intergroup conflict, leadership, communication Organization: study covers formulation, structure, effectiveness, formal and informal organization. There is no one best answer to a problem: