8 Evolution of Organisational behaviour-I

Dr. Harpreet Singh Chahal

1. Learning Outcome

2. Introduction

3. Industrial Revolution

4. Scientific management

5. Administrative theory of management

6. Bureaucratic model of organisation.

7. Summary

1.Learning Outcome:

After completing this module the students will be able to:
Describe the basic model of OB.
Discuss types of OB models and their relevance
Illustrate various behavioural models which are useful to understand individual behaviour.

2. Introduction

History of any disciplines plays a vital role to tell us about when and how a particular field of study started, from where initially it is originated and how it gets a place in the particular discipline. In this module, we will discuss historical evolution of organisational behaviour as distinct field of study and contribution of various management Gurus in the field of organisational behaviour. They conducted various studies to develop ideas and theories so that organisations can be managed in better way by using the concept of organisational behaviour. Some of the famous gurus are Adam Smith, F.W. Taylor, Chester Barnard, Henri Fayol, Frederick Herzberg, Abraham Maslow, Elton Mayo.

The concern for welfare exists since ages. The concern for employee welfare has also been documented in ‘Kautilya’s Arthashastra’. Arthashastra stated that sound base for systematic management of human resources exists since 4th century B.C. then after, government started taking active interest in the setting systematic procedures for regulating employee-employer relationship. Experts of human behaviour have tried to chronicle the growth of the subject from the beginning of 19th century. It was observed that industrial revolution took place in early stages of 19th century and it resulted in the complete transformation of industrial environment. To analyze the history of organization, following parts will be included:

Classical approach

Behavioural approach

Source: Slideshare

3. Industrial Revolution

Industrial revolution started the phenomenon of materialism, discipline, monotony, boredom, job displacement, impersonality, work independence and many other such phenomenons. Industry started manufacturing more goods and services; which eventually enabled the workers to draw more wages, led to decreased hours of work and increased job satisfaction. In this era, Robert Owen, a young Welsh factory owner, firstly emphasised on human needs of employees. He was completely against the employment of child labour. The workers were trained about cleanliness, executing self-control and improving their working conditions. Due to his working style, he was entitled as ‘Father of Personnel Management’. This was not actually OB, but a perfect start in that direction.

Robert Owen was a Welsh entrepreneur who bought his first factory in 1789, at the age of 18. He is important in the history of OB because he was one of the first industrialists to recognize how that growing factory system was demeaning to workers. Repulsed by the harsh practices he saw in factories—such as the employment of young children (many under the age of 10 with 13- hour workdays, and miserable working conditions—Owen became a reformer. He chided factory owners for treating their equipment better than their employees He criticized them for buying the best machines but then employing the cheapest labour to run them. Owen argued that money spent on improving labour was one of the best investments that business executives could make .He claimed that showing concern for employees both was profitable for management and would relieve human misery. For his time, Owen was an idealist. What he proposed was a utopian workplace that would reduce the sufferings of the working class. He was more than a hundred years ahead of his time when he argued, in 1852, for regulated hours of work for all, child labor laws, public education, company-furnished meals at work, and business involvement in community projects. The history which has become a past now shows how each management wizard contributed towards welfare of employees, their working conditions and hence eventually increasing the productivity.

In 1835, Andrew Ure in his book, “The philosophy of manufacturers” considered human factor as one of the important factors of production, besides other commercial as well as mechanical factors. Due to his strong belief in human factor, he provided medical treatment and sickness payments to the employees of organisation. In India, J.N Tata was the first person to express his interest in welfare of employees. In 1885, he constituted a pension fund and in 1895, he started paying accidental compensation. The ideas of Owen, Ure and Tata started gaining acceptance by the society slowly.

4. Scientific Management

F.W Taylor gave this approach. He is also called “father of scientific management’ because he gave a concrete shape to the generalisations propounded by other management scholars. He was the one who generated the interest in the welfare of workers in 1990s. Taylor began his career as a mechanist and progressed as a chief engineer. In light of the problems faced by the workers, such as widespread inefficiency, wastage of material, faulty equipments, restricted output, inadequate training of the workers and little cooperation between management and workers, he suggested few best practices for managing the things. Taylor advocated the selection of right people for the right jobs, placing them to the jobs to which they suit best, providing them adequate training and appropriate remuneration. Though, Taylor’s scientific management approach aimed at operational efficiency, he also attempted point out the importance of human resources.

Taylor published a book, “Principles of scientific Management” in 1911. His philosophy of scientific management can be expressed in terms of following principles:

Science, not a rule of thumb: According to this principle, scientific rules should be used for solving the routine problems and taking decisions. The ‘rule of thumb’ approach says that ‘hit or miss’ approach should be replaced with the rule of thumb. Problem should be studied thoroughly and for that data should be collected and analysed. Therefore, intuitions should be replaced with facts.

Harmony: This principle states that workers and departments of the organisations are subunits which work together to accomplish common goals. Therefore, there should be complete harmony in the functioning of these subunits.

Cooperation and not individualism: according to this principle, cooperation should be promoted and not individualism. Contributions of all individuals in achievement of organisational goals should be equally acknowledged.

Maximum output: production of the goods should be done in accordance to the maximum capacity of the production unit. The reason behind this is when the production will increase, overall cost will decrease.

Development of each man to his greatest efficiency: this principle rightly says that efficiency of the individuals should be enhanced for the prosperity of the workers and the organisations they are working in. Organisations should provide adequate training to the workers in order to develop their capacities and potential to the maximum level.

4.1 Techniques of scientific management: Taylor developed many techniques of scientific management on the basis of his experiences at shop floor. These are:

Scientific study and planning of the work: Taylor suggested that assignment of work to the workers should be studied and analysed to plan and determine standards of work for each worker. He suggested several studies for this purpose like time study, motion study, fatigue study and work study. This would enable the worker to have an idea of what is to be done and how efficiently.

Scientific selection, placement and training: Taylor was of the view that selection of workers should be based on the scientific methods instead of judgement and intuition of the top management. It includes selecting a candidate by matching their skills with the requirements of the job. Scientific training should be given to the employees in order to develop their potential abilities.

Standardization: Taylor suggested that there should be standardization of raw material, tools and equipments and working conditions provided to the workers. It is because any difference in the quality of raw material and tools and equipments may directly affect efficiency level of the workers. In the same way, productivity will also vary if there is any difference in the working conditions provided to the employees doing same work.

Division of responsibility between management and workers: Taylor was of the view that two aspects of planning viz. thinking and doing should be separated. Planning should be solely the responsibility of the managers. They should concentrate only on developing work standards, incentive schemes for workers, maintain discipline and assigning the work. On the other hand the role of the workers should be confined to the implementation of the plans.

Functional foremanship: the concept of functional foremanship states that instead of having one foreman as incharge for the whole production process, all activities at lowest level of departments should be divided into two groups: planning forum and workshop. Each group should have four supervisors.

Mental revolution: Taylor suggested that in order to get desired results of scientific management, complete mental revolution should be brought in all workers as well as managers. Workers should change their attitude, outlook and behaviour towards their work, fellow workers and management. Managers should also change their attitude and outlook towards workers and their problems.

Wage incentive: Taylor suggested that incentives should be directly linked with the productivity. The worker producing more should get higher wages. For this purpose a differential piece rate plan was introduced by Taylor. This plan favoured different wage rate for difference in the levels of efficiency of workers.

Scientific management theory was criticised for its emphasis on task accomplishment and monetary incentives instead of well being of human resources.

5. Administrative Theory

This theory is based on the works of Henry Fayol. Henry Fayol was a French mining engineer who became chief administrator in a large French mining and metallurgical company. On the basis of his rich administrative experience, he gave some practical guidelines for successful managers. Fayol suggested that every manager has to perform five functions of management viz. planning, organising, staffing, leadership and control. In addition to this, he also gave 14 principles of general management. These are discussed as follows:

Source: Marketing91

i. Division of labour: Specialization increases output by making employees more efficient.

ii. Authority: Authority gives management the right to order. Authority goes with responsibility.

iii. Discipline: Employee must obey and respect the rules. Good discipline is the result of effective leadership.

iv. Unity of command: Every employee should receive communication from only one person.

v. Unity of direction: Each group of organizational activities that have the same objective should be divided by one manager using one plan.

vi. Remuneration: Wages paid to workers should be fair.

vii. Subordination of individual interest: The interest of any one employee or group should not take precedence over the interests of the organization as a whole.

viii. Centralisation: The optimum degree of centralization should be maintained for each situation.

ix. Scalar chain: The Scalar chain measures the line of authority from top management to the lowest ranks. Communication should follow this chain.

x. Order. Material and people should be in the right place at the right time.

xi. Equity: Managers should be kind and fair to their subordinates.

xii. Stability: High employee turnover is inefficient. Management should provide personnel planning and ensure replacements.

xiii. Initiative: Employee allowed to originate and carry out plans will exert high levels of effort.

xiv. Esprit-de-corps: Promoting team spirit will build harmony and unity within the organization. Fayol also recommended that in order to perform managerial functions effectively, a manager must possess physical qualities, mental ability, moral education, general education, experience and special knowledge etc. Fayol’s principles and functions of management were appreciated widely, therefore, he is also called father of modern management.

6. Bureaucratic model of organisation

Bureaucratic model was developed a German social scientist, Max Weber. According to Weber, bureaucratic form of organisation is more efficient form because of high degree of precision, efficiency, objectivity and rationality. This form of organisation is very popular in government organisations and military organisations. Besides that, every well organised and well managed organisation implement some elements of bureaucracy. Characteristics of bureaucratic model as suggested by Weber are:

Division of Labour: This principle refers to the division of work and assignment of the same to the workers on the basis of their skills, aptitude and abilities.
Chain of Command: A hierarchy of authority and responsibility is followed in the bureaucratic organisations. Such relationships are based on the positions not the persons.
Rigidity in compliance with procedures and framework of rules: To regulate and control the working behaviour of employees, set of rules and procedures should be implemented on them subject to strict compliance of the same.
Impersonality: Bureaucratic organisations don’t operate on the basis of emotions, feelings and personal attachment.
Technical competence: In such organisations, employees are recruited and promoted on the basis of their qualifications, technical competence and merit.

Criticism of Bureaucratic Organisation given by Max Weber:

Weber gave a lot of emphasis on rules and regulations and because of this, there was unnecessary delay in decision making. The delay was due to completing the extra formalities and following the proper regulations of Bureaucratic organisations.
As organisations have to follow the proper hierarchy of authorities, such hierarchy may affect the co-ordination and also communication among all the levels from top level management to lower level.
Bureaucratic organisations have to record each and everything. So they have to do a lot of paper work. This process consumes most of the time, effort as well as money.
Bureaucratic management approach is considered as very complex and does not suit to all types of organisations. It is found useful only in some of the governmental organisations.
Weber gave importance to the qualification for promotion and ignored the dedication and loyalty of the employees.
Weber did not also gave any importance to informal groups in the organisations.

Bureaucratic approach worked as a solution to the problem but only traditional administrative system. This type of system gives all the authorities and powers to the top management only.

7. Summary:

Classical approach

Behavioural approach

Classical approach will be discussed in this module and behavioural module will be discussed in the next module. Classical approach covered the period from 1900 to 1930 approximately when the first general theory of management began. The major contributors were Fredric Taylor, Henry Fayol, Max Weber, Mary Parker Follett and Chester Barnard. Classical approach to management further includes: scientific management theory, administrative theory and bureaucratic model of organisation. Industrial revolution started the phenomenon of materialism, discipline, monotony, boredom, job displacement, impersonality, work independence and many other such phenomenon. Industry started manufacturing more goods and services; which eventually enabled the workers to draw more wages, led to decreased hours of work and increased job satisfaction. In this era, Robert Owen, a young Welsh factory owner, firstly emphasised on human needs of employees. He was completely against the employment of child labour. The workers were trained about cleanliness, executing self-control and improving their working conditions. Due to his working style, he was entitled as ‘Father of Personnel Management’.

F.W Taylor gave this approach. He is also called “father of scientific management’ because he gave a concrete shape to the generalisations propounded by other management scholars. He was the one who generated the interest in the welfare of workers in 1990s. Taylor began his career as a mechanist and progressed as a chief engineer. In light of the problems faced by the workers, such as widespread inefficiency, wastage of material, faulty equipments, restricted output, inadequate training of the workers and little cooperation between management and workers, he suggested few best practices for managing the things. Taylor advocated the selection of right people for the right jobs, placing them to the jobs to which they suit best, providing them adequate training and appropriate remuneration. This theory is based on the works of Henry Fayol. Henry Fayol was a French mining engineer who became chief administrator in a large French mining and metallurgical company. On the basis of his rich administrative experience, he gave some practical guidelines for successful managers. Fayol suggested that every manager has to perform five functions of management viz. planning, organising, staffing, leadership and control. In addition to this, he also gave 14 principles of general management.

Learn More:

1. Stephen Robins (2012). Organizational Behavior. New Delhi-110092: Prentice Hall publications.

2. Aswathappa, K. (2003). Organisational Behaviour. Himalaya Publishing House.

3. Nair, S. R. (2010). Organisational Behaviour (text & Cases). Himalaya Publishing House.

4. Prasad, L. M. (2014). Organizational Behaviour. Sultan Chand & Sons.

5. Greenberg, J. (2003). Organizational Behavior: The State of the Science. Lawrence Erlbaum Associates.

6. Miner, J. B. (2002). Organizational Behavior: Foundations, Theories, and Analyses. Oxford University Press.

7. Pareek, U. (2014), Understanding Organisational Behaviour, Oxford University Press (Revised and Updated by Sushama Khanna)

8. http://www.bput.ac.in/lecture_notes/ob.pdf

9. Ivancevich, J.M., Konopaske, R. and Matteson, M. (2012), Organisational Behaviour and Management, Mc Graw Hill.

10. Moshal, B.S. (2015), Organisational Behaviour, Anne Books.