According to Aldag and Brief, OB is a branch of social science that seeks to built theories that can be applied to pridict, understand and control behaviour in a working organisation.
Significance of OB -
1. Understanding human behaviour
• Individual behaviour
• Behaviour with other
• Behaviour in a group
• Behaviour during interaction between two group
2. Controlling and directing behaviour
• Use of power and seniority
• Leadership
• Communication
• Organisational climate
3. Organisational adaptation
OB theories :
1. Classical theories
Frederick W Taylor: (scientific management theory)
Taylor is known as father of scientific management.
In 1909, Taylor published "The principle of scientific management". In this he proposed that by optimising and simplifying Jobs, productivity would increase.
Principle of scientific management:
a. Scientific task planning-
Management should find out the amount of work which an average worker can perform during a day under normal working condition.
This can be achieved by times and motion studies. The aim is to eliminate unnecessary and wasteful motion and findout minimum times required to do a job.
b. Standardisation -
Standard have ho be set in advance for deciding work procedures, quality parameters, time schedule, working conditions. This will increase efficiency of the employee as well as ORGANISATIONs.
c. Scientific selection and training of workers
d. Functional foremanship-
Taylor proposed 8 different supervisors to give instruction.
Functional foremanship
e. Maximarion of output
f. Differential piece rate system
g. Harmony not discord
2. Administrative theory-
14 principle of Henry Fayol in management
1) Division of work- stress on specialisation of job. Work must be decided in to sub decision and alloted as per the expertise of individuals.
2) Order - proper and systematic arrangement of things and people in an organisational.
3) Equity- similar treatment to people at all level. No discrimination in the basis of age, sex, caste etc.
4) Authority and responsibility
5) Principle of one boss/ Unity of command
6) Unity of direction.
7) Discipline
8) Initiative
9) Remuneration of employee
10) stability of tenure
11) Scale chain
12) Subordination of individual interests to general interest
13) Centralisation and de-Centralisation
14) Esprit De'corps ( team spirit)
Fayol's element of management - POC3
1. Planning
2. coordination
3. Organising
4. Controlling
5. Commanding
3. Bureaucracy Theory:- for formal organisation
Max Weber's theory of social and economic organisation.
a. Hierarchy
b. Division of work
c. Rules and Regulations
d. Departmentalisation
e. Nerrow span of control
f. Record
g. Interpersonal relationship (No place for personal relationship)
h. Administrative class
I. Rationality
4.Neo-classical theory:-
This theory try to find out social factors effecting workers of an organisation.
This theory discuss that the real cause is human behaviour was some what more than mere physiological variables.
The 3 key theories are as follows-
A) Hawthorne effect: ( By Elton Mayo)
I. Western Electric company's Hawthorne plan
ii. Bank wiring room experiment of Hawthorne
B) Human relationship approach :
No universal principal. Every human is different from eachother.
This approval focus on using motivational, leadership and group dynamics. It laid stress on people management skills and urged organisations to be people oriented.
C) Behavioural science approach:
It's an advance theory as compared to human relationship approach. It state that an employee may behaved different in group and in isolation.
Modern Organisation theory (MOT):
