Approaches to OB

There is growing awareness that all managerial problems are not technical in nature and that productivity and organizational effectiveness did not depend entirely on the mechanical processes. This awareness focused on the philosophy that behavioural and social processes have significant impact on the workers in the work place and that an understanding and predictability of human behaviour could help managers make their organizations more effective. Hence the emphasis shifted to social sciences as well as to psychologists, sociologists, anthropologists who studied management problems from behavioural perspective and tried to develop a unified body of knowledge concerning OB.

Types of Approaches Classical Approach Administrative theory approach( Henry Fayol 14 Principles , Max Weber Theory of Bureaucracy )

Scientific management approach( Fredrick Taylor ) Human resources approach

( Elton Mayo (Hawthorne studies) , Abraham Maslow ( Need Hierarchy theory) , McGregor ( Theory X and Theory Y ) Contingency approach - Fred.E.Fiedler Systems approach

Fayols 14 Principles Division of labour Authority Discipline Unity of command Unity of Direction Subordination of individual interest to the general interest Remuneration

CentralizationScalar Chain Order Equity Stability Initiative Espirit DeCorps

Max webers Theory of Bureaucracy: 5 Principles :

1) Labour is divided with clear definitions of authority and responsibility that are legitimized as official duties2) Positions are organized in hierarchy of authority, with each position under the authority of a higher one

3) Rules and regulations determine and standardize behaviour4) Administrative acts and decision are recorded in writing 5) Management is separate from ownership in any organization

Scientific Management approach Fredrick Taylor -The father of Scientific Management", In 1911 -The Principles of Scientific Management". Developed clear guidelines for improving production efficiency. He defined four principles. 1 Every job should be broken into its elements and a scientific method to perform each element should be established. 2. Workers should be scientifically selected with right attitudes and ability for the job and then train, teach and develop the worker. (Previously, workers chose their own work and trained themselves as best they could) 3. Management should heartily cooperate with workers to ensure that all work is done in accordance with the scientific principles. 4. Divide work and responsibility almost equally between management and workers. (Previously ,almost all the work and the greater part of the responsibility were thrown upon the workers) Taylor argued that following these principles would result in the prosperity on both management and workers. To motivate workers he favoured incentive wage plans. Contributions of Henry Fayol & Max Weber (Administrative theory )

Human Resources Approach or Behavioural approach:The human relations approach is based upon the premise of increase in productivity and managerial efficiency through an understanding of the people. It was a movement spearheaded by Elton Mayo. The essence of the movement was the belief that the key to higher productivity was employee satisfaction. Dale Carnegie, Abraham Maslow and Douglas McGregor also made the contribution to above philosophy. In this section we will briefly study the contributions made by these scientists.

Hawthorne Studies A ProjectHawthorne studies were initially sponsored by National research council at the Western electric companys Hawthorne works in Cicero, Illinois in the year 1924 but eventually expanded up to middle of 1930s.The Hawthorne project involved three sets of studies.- RBI 1) Relay Room Experiment 2) Bank Wiring Room Experiment 3) Illumination Studies Illumination Studies: Engineers of the company Initial research The objective of the study -To examine the effect of various illumination levels on productivity. Control group Experimental group ( varying light intensity) It was expected that the individual output be directly related to intensity of light.

Conduct and Findings of the Study As the illumination was increased in the experiment group, output increased in both the groups. As the light level was dropped in the experimental group, productivity continued to increase in both the groups. Productivity decrease was observed in the experimental group only when the light intensity had been reduced to that of moonlight. These findings baffled the engineers of the Western electric company, who concluded that illumination levels were not responsible for higher productivity

Elton Mayo who at that time was working at Harvard University as professor, joined the study group along with his team. Following studies were undertaken by him, which started in the year 1927 and lasted up to 1932

Relay Room Experiment

Study involved 5 women workers who assembled electrical relays in test room Specific variables - length of workday, rest breaks and method of payment No Supervisory under researcher guidance / Special Privileges Findings similar to Illumination studies Each test period yielded higher productivity than the previous one ( Even when subjected to original conditions of the experiment ) The researchers felt physical changes are of lesser importance. Something was still not being controlled that was causing the change in the productivity.

Mass Interview & Bank Wiring Experiment

Bank wirers placed in a separate roomNo experimental changes were done unlike other tests Observer was placed in the room / Departments regular supervisor was used Result was opposite to other studies / No increase in productivity was seen Scientific management analysis 2 equipments ( banks) can be made But workers had informal daily output 2 banks per day actual output Even though workers were paid - according to output almost all workers restricted output If they produce more they were victims of harassment Mayo Concluded that 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.

Elton Mayo made a new beginning on human factor in functioning of the organization and attainment of organizational goals. Hawthorne studies have proved that experiment and behavioral research can play a vital role in management and decision making. Mayos contribution will ever be remembered for its contribution to the behavioral approach to management

Need Hierarchy Theory-Abraham MaslowThe need hierarchy theory of Maslow is often quoted and used in management to motivate workers Original theory of Maslow did recognize that peoples needs varied at different times, and in hierarchical order. Before a person enters to fulfill higher order needs he must achieve minimum two basic needs (Physiological and Safety). He further stated that needs do not disappear but its potency is reduced and the next higher order need takes precedence, once that is fulfilled the next needs becomes dominating and so on. Maslows hierarchy of needs theory can be applied to the individuals life span. In the early years of life a person is concerned about fulfillment of basic needs. But when a person takes up a job and experience independence, which is marked by crave for autonomy, he feels that he should be consulted and works to achieve recognition. Employees first want physical and job security later a suitable working environment, appreciation, job stability recognition, growth and autonomy. Thus making a full cycle of need beginning with physiological needs to self actualization needs

Physiological Needs Decoration, Vibration, Temperature, Space, Noise, Gas, and Canteen facilities.( food, drink, shelter ) Security Needs Job description, regularity, role clarity, structure, communication, safety report meetings, agreements, and contracts.( security and protection from physical and emotional harm) Social Needs Joint Tasks, appreciation, sharing offices, recognition and team membership.( affection , belongingness ,acceptance , friendship) Self esteem Being consulted, rank, success, achievement, encouragement, recognition, pre-requisites. ( Internal esteem factors such as self respect achievement autonomy , External esteem factors such as status recognition attention) Self actualization Personal or professional growth, autonomy, worthwhile job, Growth , self fulfillment , drive to become what one is capable of becoming)

Maslows Hierarchy of Needs

Self

Be where you want to be

Esteem

Need for respect from others

Social

Need to be in a group, be loved

Safety

Need for stability and consistency

Physiological

Basic needs like food, water

Theory X and Theory Y McGregorTheory X and Theory Y were introduced by Douglas McGregor based on two diagonally opposite views of human behaviour.Theory x assumes physiological and safety needs dominated individuals were as Theory y assumes social and esteem needs dominate individuals.

Theory X

Assumes - average human being dislikes work - will try to avoid it if possible. Employees are lazy; they must be controlled, coerced and even punished to achieve organizational goals. Average employees do not accept responsibility and seek direction from their superiors. They lack ambition. McGregor therefore recommends organizations so structured that enable close supervision, tight control and mangers must exert energy to achieve organizational objective. After Theory X, there were certain changes in external environment. Entrepreneurs took business seriously and on the scientific manner. There was industrial revolution; management practices were being applied in the business. Because of these changes McGregor proprogated Theory Y.

Theory Y

Suggests - average human being likes work and takes it as natural as play. Employees can exercise self-direction and self-control and given the proper working conditions, average person seeks responsibilities.

McGregor felt that wisdom is widely spread among the employees and they are innovative and can take quality decisions. It therefore assumes that management must appreciate the potential among employees and adopt such management practices like delegation, job enlargement and management by objective. Management must appreciate the individual and organizational goals and create such environment, which is conducive for its attainment. Reward System, recognition and facilities for creativity should be provided. McGregor in his theory displayed a total recognition of humanistic approach. He laid stress on delegation of authority, setting organizational objectives and leaving it to the employees to attain the same.He carried forward the behaviour approach proposed by Mayo, Maslow in mid 20th century. McGregors theory Y is as valid to day as it was 50 years ago.

Contingency Approach:

A contingency approach to organizational behaviour implies that different situations require different behavioral practices for effectiveness instead of following a traditional approach for all situations. Each situation must be analyzed carefully to determine the significant variables that exist in order to establish the more effective practices. The strength of this approach is that it encourages analysis of each situation prior to action. Thus, it helps to use all the current knowledge about people in the organization in the most appropriate manner. The contingency view of management and OB was first proposed by Fred.E.Fiedler Fred Luthans: Has identified four contingencies that must be addressed by managers: 1.Organization size or structure 2.Routineness of task and technology 3.Environmental uncertainty 4.Individual differences

SYSTEMS APPROACH This approach views organization as United, Purposeful system composed of Interrelated parts. Managers view org in totality as a whole person. If the activity of any segment of org is affected so do othersOrgInput Human Material Financial InformationalImport from the Environment Export to

Output Product / Services Profit / Loss Employee Behaviour Additional information

Product Production

Order Fulfillment

the Environment

Thus the organization becomes an input transformation output system

The systems approach highlights the importance of an organization environment. Failing to acquire appropriate resources and to heed feedback from the environment can be disastrous.