Organizational behaviour is concerned with the study of the behaviour of people within an organizational setting. It involves the understanding, prediction and control of human behaviour and the factors which influence the performance of people as members of an organization. Organizational behaviour dose not encompass the whole of management; it is more accurately described in narrower interpretation of providing a behavioural approach to management.
All organizations face the basic challenge of mongering psychological contract. They want value from their employees, and they must give employees the right inducements. If psychological contracts are created, maintained, and managed effectively, the result is likely to be workers who are satisfied and motivated. On the other hand, poorly managed psychological contract may result in dissatisfied, unmotivated workers. That’s why it is important to study OB. INFLUENCES ON BEHAVIOUR IN ORGANIZATION: 1. The individual:
Organizations are made up of their individual is a central feature of organizational behaviour and a necessary part of any behavioural situation, where acting in isolation or as part of a group, in response to expectations of the organisation, or as a result of influences of the external environment. Where the needs of the individuals and the demands of the organization are incompatible, this can result in frustration and conflict. It is the task of management to provide a working environment which permits the satisfaction of individual needs as well as the attainment of organizational goals. . The group: Groups are exist in all organisations and are essential to their working and performance. The organization is comprised of groups of people and almost everyone in an organization will be member of one or more groups. Informal groups arise from the social needs of people within the organization. People in group influence each other in many ways, and groups may develop their own hierarchies and leaders. And this is one example of a formal group in a Company of Rashid Al Kiyumi Trading Est: 3. The organization:
Individuals and groups interact within the structure of the formal organization structure is created by management to establish relationships between individuals and groups, to provide order and system and to direct the effort of the organization into goal-seeking activities. It is through the formal structure (technology, style of leadership and systems management) that people carry out into their organizational activities in order to achieve aims and objectives. 4. The environment: The organization functions as part of the border external environment of which it is part.
The environment affects the organization through, for example, technological and scientific development, economic activity, social and cultural influences and governmental action. The effects of the operation of the organization within its environment are reflected in terms of management of opportunities and risks and the successful achievement of its aims and objectives. MANAGEMENT THEORIES: Before talking about management theories, it is important to know the dose job satisfaction means. Job satisfaction means the degree of enjoyment that people drive from performing their jobs.
If people enjoy their work, they are satisfied; if there are not enjoy their work, they are unsatisfied. In turn, satisfied employees are likely to have high moral. Morals reflect the degree to which they perceive their needs are been met by their jobs. Such as pay, benefits, co-workers, and promotion opportunities. The other thing is to know why it is important to study management theories. It is necessary to view the interrelationship between the development of theory, behaviour in organizations and management practices.
Also, it is to understand principles underlining the process of management. The main approaches organization, structure and management are: ? Classical ?Human Relations ?System ?Contingency 1)THE CLASSICAL APPROACHES: The classical writers thought of the organization in terms of its purpose and formal structure. They placed emphasis on the planning of work, the technical requirement of the organizations, principles of management and assumption of rational and logical behaviour. All that was studied by many of writers such as: Taylor, Fayol, Urwich, Moony and Reilen and Brech.
The classical writers have been criticized generally for not taking sufficient account of personality factors and for creating on organization structure in which people have only limited control over their work environment. The tow major “sub groping “of the classical approaches are: a)Scientific management. b)Bureaucracy. First, scientific management: Many of classical writers were concerned with the important of management as a means of increasing productivity and high level of output. A major contributor to this approach was F.
W. Taylor (1856 – 1917). He believed that in the same way that there is a best machine for each job, so there is a best working method by which people should undertake their jobs. “ONE BEST WAY “F. W. Taylor. He saw workers soldiering or deliberately working beneath their potential and designed a 4-step method to overcome this problem. •It begins with breaking the job into its smallest pieces. •The second step is to select the most qualified employees to perform the job and train them to do it. Next, supervisors are used to monitor the employees to be sure they are following the methods prescribed. •Finally, continue in this fashion, but only use employees who are getting the work done. McDonalds Is one of the world’s most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually every country in which do business. It serves the world some of its favourite foods (World Famous French Fries, Big Mac, Quarter Bounder, Chicken McNuggets and Egg McMuffin).
McDonalds starts to apply the Scientific Management principles in their business operations because the company establishes systems of rewards for meeting the goals. Taylor stated that the non-incentive wage systems encourage low productivity if the employee will receive the same pay regardless of how much is produced. McDonald’s encourages employees through many effective ways. It establishes competitive wage and promotion programs, hard work, dedication, motivation and results are recognized and rewarded at McDonald’s.
McDonald’s also offers great incentive programs with access to gift certificates, merchandise, free food, etc. In addition, McDonald’s also establish an incentive pay system and provide employees with the opportunity to earn competitive total compensation when performance meets and exceeds goals. The company pays a bonus on top of employees’ base salaries based on business performance and their individual performance. Scientific Management became a powerful force as it contributed to increased efficiency in industrial establishments.
McDonald’s shows the evidence of applying the principles of Scientific Management. They institute bonus systems to encourage the employees to perform well to meet the goals. Also, they train the workers scientifically rather than passively leaving them to train themselves. It aims to bring everyone’s production efficiency into full play to accomplish maximum profit. It also has made an important contribution to the business world we see today. The ideas generated by Frederick Taylor still have a place in current management thinking.
Because of Taylor, production efficiency has improved, products become more and more plentiful. Nowadays people can have a rich and colourful life like a king in the past. Second, bureaucracy: “THE DECISIVER RESON FOR THE ADVANCE OF BUREAUCRATIC ORGANIZATION HAS ALWAYS BEEN ITS PURELY TEAHNICAL SUPERIORITY OVER ANY OTHER FROM THE ORGANIZATION” Weber. Weber pointed out that the definition of tasks and responsibilities within the structure of management rise to a permanent administering and standardization of work procedures not with standing changes in the actual holders of office.
Contributions of bureaucracy: ?Promotes efficient performance of routine operations. ?Eliminates subjective judgment by employees and management. ?Emphasizes position rather than the person. Limitations of bureaucracy: ?Limited organizational flexibility and slowed decision making. ?Ignores the importance of people and interpersonal relationships. ?Rules may become ends in themselves. Finally, it is important to say that classical system helped to improved factory productivity and efficiency, introduced scientific analysis to the workplace and cerate system equated worker rewards and performance.
But in the other hand systematic management ignored the relationship between an organization and its environment. Also it neglects the human side within the organization, workers viewed as parts of a machine (Organizations without People). That’s why researchers start to think of another approach which can be more efficient and effective to mat both organization and individual goals, which is human relation approach. 2) THE HUMAN RLATIONS APPROACH: The main emphasis of the classical writers was on structure and the formal organization.
But during the 1920s, the years of the great depression, greater attention began to paid to the social factors at work and to the behaviour of employees within an organization that is, to human relation. The human relations movement, which stemmed studies, is based on the idea that a manager’s concern for workers will lead to their increased satisfaction and improved performance. The movement includes the need theories of motivation, such as Maslow’s hierarchy of needs, and McGregor’s Theory X and Theory Y.
Psychologist Abraham Maslow’s hierarchy of human needs model proposed that people have several different needs that they attempt to satisfy in their work. He classified these needs into five basic types and suggested that they be arranged in the hierarchy of importance. First level physiological needs: a person’s biological demands – food and water, sleep, bodily needs, exercise and rest and sex. Second level safety needs: security, protection, comfort and peace, and orderly surroundings. Third level Social needs: acceptance, belonging, love and affection, and membership opportunities, competence and strength, intelligence and success.
Forth level esteem needs: recognition and presetting, confidence and leadership, opportunities, competence and strength, intelligence and success. Fifth level: self – actualization: or simply becoming what one is capable of becoming; self – actualization involves self – fulfilment and achieving a goal for the purposes a challenge and accomplishment. According to Maslow needs are hierarchical because, Lower- Level needs must be met before a person will try to satisfy Higher- Level. For example, if you feel secure in your job.
A new pension plan will probably be less important to you then the chance to make new friends and join an informal network among your co-w Contributions of human relation approach: ?Gave insights into interpersonal processes in organizations such as motivation and group dynamics. ?Focused managerial attention on these processes. ?Challenged the view of employees as tools and not resources. Limitations of human relation approach: ?The complexity of human behaviour makes prediction difficult. ?Managers may be reluctant to adopt some of the behavioural concepts. Contributions are often not communicated to the practicing managers in an understandable form. For example:- In Binary Computer Company mangers believed that if the programmers are in very good conditions in office room, they will produce good programs. So that they did provide a private office room for each programmer with all stuff they need like (computers, printers, air conditions) nice and comfortable places. Yet, those programmers were not able to create and devolved good programs as it was expected from them. They did not reach the goals which the Binary Company aimed to.
So as the human relation writers approved those happy workers can’t be productive if they are not qualified and responsible, and the approach concerned about the human said and neglect the technical said (People without Organization). So, they have introduced another approach which can help a satiation of reaching high level of organization goals and individual goals. It is system approach. 3) THE SYSTEM APPROACH: More recently attention has been focused on the analysis of organization as system with a number of interrelated sub-systems.
The system approach views the organization as a whole and involves the study of the organization in terms of the relationship between technical and social variables within the system. Changes in one part technical will affect other parts and thus the whole system. The concept of the organizations as “socio-technical “concerned with the interactions between the psychological and social factors and the needs and demands of the human part of the organizations, and its structural and technological requirements. Never the less some writers believed that it is no matter to apply classical or human approaches in the organization.
The most important is when and where you can apply them, which approach is suitable for the situation and can solve problems too. That’s why they have introduced the contingency approach. 4)THE CONTINGENCY APPROACH: The contingency approach believes that it is impossible to select one way of managing approaches that works best in all situations. It is based on the idea that there is no one best way to manage and that to be effective, planning, organizing, leading, and controlling must be tailored to the particular circumstances faced by an organization.
Contingency refers to the immediate (contingent or touching) circumstances. The manager has to systematically try to identify which technique or approach will be the best solution for a problem which exists in a particular circumstance or context. An example of this is the never ending problem of increasing productivity. The different experts would offer the following solutions: •Behavioural scientist: create a climate which is psychologically motivating. •Classical management approach: create a new incentive scheme. Contingency approach: both ideas are viable and it depends on the possible fit of each solution with the goals, structure and resources of the organization. It is important to realize that the contingency approach is not really new because Taylor already emphasized the importance of choosing the general type of management best suited to a particular case. Henri Fayol, in turn, also found that there is nothing rigid or absolute in management affairs. IN CONSOLATION: The classical approach emphasized on the technical requirements of the organization and its needs (Organizations without People).
Workers are solely motivated by money. Paying the workers more should prompt them to produce more. Meanwhile, the firm that analyzed jobs and found better ways to perform them would be able to produce goods more cheaply, make higher profits and can pay motivated employee better than its competitors. The opposite is the human relation approaches which emphasized on the psychological and social aspects and the consideration of human needs more than the organization needs. The human relations movement has lead to ideas on increasing production by humanising the work organization (People without Organization).
Human relation writers demonstrate that people go to work to satisfy a complexity of needs and not simply for monetary reward. In my opinion, the most important theory is the system approaches, where it is a combination between technical and social variables. So that the workers will perform more if they needs were fulfil and also they feel secure in their jobs in an organized and systematic work place. But at same time it is necessary to understand that it doesn’t matter which approach is better than what. And what approach can be effective for the organization.
The most important is when and where you can apply either classical, human relation or socio-technical approach in one organization. All of that is depending on the situation (there is no best way, there is a suitable way). List of references: ?http://www. freeonlineresearchpapers. com/scientific-management-theory. ?http://www. mcdonalds. com/corp/about. html. ?http://www. bookrags. com/research/contingency-approach-to-management-eom. ?Management and Organizational Behaviour, Fourth Edition, Laurie J Mullins. ?Business Essentials, Forth Edition, Ronald J. Ebert and Ricky W. Griffin.