Organizational Behavior

Concepts and Theory

3 Basic Theories of OB

• Quantitative Approach
• System Approach
• Contingency Approach
 BUREAUCRACY
Max Webber

Bureaucracy refers to the management of large

organizations characterized by hierarchy, Fixed rules,
impersonal relationship, rigid adherence to
procedures, and a highly specialized division of labor.
-Max Webber
Characteristics of
Bureaucracy

• The rules and job responsibilities are written

down and clearly stated

• Clear hierarchy of power is concentrated among

a few high-ranking managers

• Appointments and promotions of officers

are formal, because these officers will be
held accountable.
 Characteristics of Bureaucracy
Employees are hired based on their skills and
knowledge, not because of favouritism or luck.

Salaries are tied to a pay-grade system

Bureaucracies are unable or unwilling to adapt to

changing conditions quickly (Micro-
manageable)
 Characteristics of Bureaucracy
Rigid rules and regulations

Having no consideration for interpersonal relationship

based on emotions and human qualities

Power has been considered as the dominant factor to

administer the organization
Structure of Bureaucracy
 Application and
• Effect
The system may work in large government
organizations or the organization where there is
no change anticipated.

• The theory does not promote fulfilment of

human needs and does not exploit full
potential of employees.
 SCIENTIFIC
MANAGEMENT
Fredrick Winslow Taylor

Knowing exactly what you want men to do and

then see that they do it the best and cheapest way
Features of Scientific Management
 Separation of Planning and doing

 Functional foremanship

 Job Analysis

 Standardization

 Scientific selection and training of workers

 Financial incentives

 Economies

 Mental revolution
Separation of Planning and Doing
Functional Foremanship
 Scientific selection and
training of workers
Workers selection should be carried out on
scientific basis. Taylor suggested that workers
should be given adequate training and work allotted
based on their physical and technical aptitude.
 Financial incentives

•He fixed targets for each work and they were

paid based on efficiency.

•Anybody who worked beyond the laid down

target were paid higher rate of wages and any
employee who could not meet allotted target was
paid below the laid down rate.
 Economies

Taylor insisted that internal economy must

been sured by each worker ensuring that
there was no wastage in time and material
while carrying out the job.
 Mental revolution

Taylor was a firm believer that there must be

sound relations between the management
and the workers.
Principles of Scientific Management

• Replacing Rule of Thumb with Science

• Harmony in Group Action

• Co-operation

• Maximum Output and development of workers

 PROCESS MANAGEMENT
THEORY
He has used the term ‘administration’
instead of management emphasising that
there is unity of science of administration.
 The management theory of Henri Fayol includes 14 principles of
management. From these principles, Fayol concluded that management
should interact with personnel in five basic ways in order to control and
plan production.

Planning
Organizing
Commanding
Coordinating

Controling
• Quantitative Approach
• System Approach
• Contingency Approach
 Neo Classical Theory
Human Relations Era -1927

1. Individual behaviour and sentiments are closely related.

2. Group influences significantly affected individual

behaviour.

3. Group standards established individual output.

4. Money was less a factor in determining output.

5. Group standards, group sentiments and security
provided
by the group were Responsible for higher productivity.
Behavioural Theory
Need Hierarchy
Theory-

Abraham Maslow
 Behavioural Theory
Need Hierarchy
Theory-
Abraham Maslow
• Physiological Needs – Decoration, Vibration, Temperature, Space,
Noise, Gas, and Canteen facilities.

• Security Needs – Job description, regularity, role clarity, structure,

communication, safety report meetings, agreements, and contracts.

• Social Needs – Joint Tasks, appreciation, sharing offices,

recognition and team membership.

• Self – esteem – Being consulted, rank, success, achievement,

encouragement, recognition, pre-requisites.

• Self – actualization – Personal or professional growth, autonomy,

worthwhile job.
•
Behavioural Theory
Theory X and Theory Y
-
McGregor
Behavioural Theory
Theory X and Theory Y
-
McGregor
MODERN MANAGEMENT
THEORIES

• Quantitative Approach
• System Approach
• Contigency Approach
Contingency Theory
•There is no universal or one best way to manage
• Wide range of external and internal factors must be
considered and the focus should be on the action that best
fits for the situation.
System Approach
•Organization is a system consisting of four subsystems
task, structure, people and environment

•Subsystems are interconnected and interdependent

•Management regulates and modifies the system to

optimize performance
 TQ
MF. Juran

TOTAL QUALITY MANAGEMENT APPROACH

• Wide effort to improve quality of products and

services
• People and organizations mainly focus on quality
given by

• Quality = results of work efforts total

costs
 TQ
MF. Juran

1. Build awareness of the need to improve

2. Set goals for improvement

3. Organize so as to reach the goals

4. Provide training

5. Conduct projects to solve problems

 TQ
MF. Juran

6. Report progress

7. Give recognition

8. Communicate results

9. Keep score of progress achieved

10. Maintain the momentum by making annual improvement

part of the regular system and processes of the company.

 Why People in Organization feel and behave as they do?

People behave as they do in response to the way they

are treated, and in response to situational influences
experienced throughout life. Like for example in a
company the manager treat their employees with good
communication, and right supervision in return the
employees will be motivated to do their job and
complete the task given to them.
How will you develop and enhance your skill as a member of your
organization?

I will focus on continuously improving my skills and learn new things to

boost my confidence and help to become the best version of myself. Here
are the things that I do to enhance my skills. First I enrolled to a mater’s
degree to continue studies and to learn more about my subject area. I
attended different webinars to gain more knowledge about new learning
modalities use in teaching. I give time and focus through consistency there
is a saying that “that you cannot learn in one sitting”. That’s why I give time
or a minute habit to practice for the things that I cannot do for the first
time. Learned from other people if there are task that I can’t understand
because its new to me I ask my collegues about it. And lastly love the things
that you do.