1. ORGANISATIONAL
BEHAVIOUR

2. Organisation
A structured social system consisting of
groups of individuals working together to
meet some agreed-on objectives

3. Organisational Behaviour is the field that
seeks knowledge of all aspects of
behaviours in organisational settings by
the use of the scientific method

4. Three levels
 Individuals
 Groups
 Organisations

5. Early Practices
Adam Smith
Scottish philosopher
Wrote ‘Causes of
Wealth of Nations’
Proposed ‘Division of
Labour’

6. Charles Babbage
British Mathematics professor
Wrote ‘On the Economy of
Machinery and Manufactures’
Proposed advantages of
division of labour:
•Reduces the time needed for
learning a job
•Reduces waste of material
•Attainment of high skill levels
•Matching skills and abilities
with jobs

7. Robert Owen
Welsh entrepreneur
Recognised how factory work
was demeaning to employees

8. The Classical Era
Scientific Management- Frederick Taylor
 Develop a science for each element of an
individual’s work
 Scientifically select, train, teach and
develop worker
 Cooperation with workers
 Divide work responsibility equally between
management and workers

9. Hawthorne studies
Illumination experiment
Relay room experiment
Mass interviewing
Bank wiring observation

10. Classical Organisation Theory
Administrative Theory
 French industrialist Henry Fayol
 Proposed that a manager plans,
organises, directs, controls and
coordinates
 14 principles of management including
division of labour, authority, scalar chain,
unity of command, initiative

11. Max Weber
Proposed Structural Theory
Described bureaucratic
structure
Division of labour, clearly
defined hierarchy, detailed
rules and regulations and
impersonal relationships

12.  Formal rules regulations
 Division of labour
 Hierarchical structure
 Authority structure
 Lifelong commitment

13. Social Man Theory
Mary Parker Follett
Emphasised on
group ethics
Manager must
coordinate group
efforts

14. Chester Barnard
Social Systems Theory
Organisations made up
of people who have
interacting social
relationship
They communicate
Success depends on
maintaining good
relations

15. Herbert Simon
 Described
organisations as a complex
network of decisional process
 Decision process comprises i) intelligent
activity ii) design activity iii) choice activity
 Bounded rationality
 administrative

16. Peter Drucker
 Nature
of management as innovative and
creative
 Manager has to act as administrator,
entrepreneur, set objectives etc.
 Organisation structure to facilitate effective
functioning
 MBO

17. Behavioural Era
Hugo Munsterberg
Published ‘psychology
and Industrial efficiency’
Saw a link between
scientific management
and industrial psychology
Suggested use of
psychological tests

18. Wagner Act
 After great depression of 1929, Wagner
Act was passed which recognised union
as the authorised representatives of
workers

19. Human Relations
 Hawthorne studies
 DALE carnegie
 Maslow
 McGregor

20. Behavioural Science Theories
 Moreno-sociometry for studying group
interactions
 Skinner-operant conditioning
 McClelland Theory-need theory
 Fiedler-situational theory of leadership

21. Contingency perspective
 No one ‘best way’ to manage people.

22. Challenges/emerging issues for
OB
 Globalisation
 Workforce diversity
 Nature of organisation
 Changing nature of work
 Changing employee needs
 Improving quality and productivity

23. Orgnisations are dynamic
 Open systems
-Self sustaining systems that transform input
from the external environment into input,
which the system then returns to the
environment

24. Forces shaping OB
 Globalisation of economy
 Diversification of workforce
 New working arrangements (flexitime,
compressed workweek,job sharing,
telecommuting
 MNCs
 Multicultural society

25. New forms of organisation
 Leaner organisations
-informate : process by which workers
manipulate objects through inserting data
between themselves and those objects
 Outsourcing
 Contingent workforce

26.  Virtual corporations
Highly flexible, temporary organisations
formed by a group of companies to exploit
a specific opportunity