Ob 2

1
Amity Business School
Organizational Behavior
• Organizational behavior (OB) is
– the study of human behavior in the workplace,
– the interaction between people and the organization,
– and the organization itself.
• Organizational behavior’s major goals are to
– explain, predict, and control behavior

2
Benefits of Studying Organizational Behavior
– Develop skills to function effectively in the workplace.
– Grow personally through insight into human behavior.
– Enhance overall organizational effectiveness
– Sharpen and refine common sense.

4
Approaches to Management
• BUREAUCRACY - Max Weber (1864-1920)
• Weber in his model of bureaucracy stated that
there are three types of authority in any
organization:
Legal authority
Traditional authority
Charismatic author

5
• SCIENTIFIC MANAGEMENT
• Frederick Winslow Taylor (20 March 1856-21 March
1915), widely known as F. W. Taylor, was an American
mechanical engineer who sought to improve industrial
efficiency.
• He is regarded as the father of scientific management,
and was one of the first management consultants.

6
• Efficiency Expert in U.S. Steel Industry
• Invented New Tool Designs and Handling Methods
• Designed Stop-Watch Task Timing
• Created Piece-Rate Payment Scheme
• Developed Industrial Departments

7
SCIENTIFIC MANAGEMENT
• Taylor stated that managing workforce is an art. He
further defined managing as
‘knowing exactly what you want men to do and then
see that they do it the best and cheapest way’.

8
Principles of Scientific Management
• Science not the rule of thumb
• Harmony not discard/ cooperation between employers
and employees
• Scientific selection training and development
• Division of work/ responsibility

9
The Hawthorne Studies at Western Electric
– The Hawthorne Effect— the tendency of people to
behave differently (perform better) when they receive
attention.
• Key Findings
1. Economic incentives are less potent than generally believed.
2. Dealing with human problems is complicated and challenging.
3. Leadership practices and work-group pressures strongly
influence productivity, satisfaction, and performance.
4. Personal problems influence worker productivity.
5. Effective communication is critical to success.
6. Factors embedded in the social system influence behavior.

10
• The Human Relations Movement
– Based on belief that managerial practices, morale, and
productivity are strongly linked and that the proper working
environment enhances worker capabilities.
– Douglas McGregor
• Theory X
– Managers assume people dislike work,
avoid responsibility, lack ambition,
and need close supervision.
• Theory Y
– Managers assume people enjoy
work, accept responsibility,
are innovative, and are
self-controlling.

11
• System Approach
• Kast and Rosenzwing,
“defines system as an organized, unitary whole
composed of two or more interdependent parts,
components, or sub – systems and delineated by
identifiable boundaries from its environmental
system”

12
• A system has several parts. These are dynamic in nature and
therefore interact with each other.
• The parts or systems are interdependent and interrelated.
• The interdependence is required due to specialized nature of job,
division of labour, sharing of limited resources and scheduling of
activities.
• Creating various departments that carries out the work in the
organization, sub departments and sections.
• Work is carried out by teams and groups who performed specialized
task to accomplish overall organizational objective.
• Change in one department affect the other departmental work

13
• The Contingency Approach
– Emphasizes that there is no one best way to manage
people. Different situations require managers to make
decisions about which managerial methods and
approaches to use in a specific instance.
– Knowledge of organizational behavior and
management is essential to the examination of
individual and situational differences before
deciding a course of action.

14
Emerging challenges in Global Context
• Phases of Globalization:
- 1492-1800 ----Countries Globalizing
- 1800-2000 ---- Companies Globalizing
- Turn of the new century---- mainly fueled by information
technology available to everyone in the world, groups
and individuals

15
• Diversity in the Workplace
Diversity is not just something to deal with, but
instead a reality to build on to make a stronger,
more competitive enterprise.

16
• Reasons for emergence of Diversity:
1. Changing Workforce Demographics
2. Recognition & Desire for diverse viewpoints
3. Competitive pressures
4. Rapidly growing increase in International Business

Ob 2

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