Introduction to Organisational Behavior A historical account of the study of behavior in organisations Lecturer: Eric Vassilikos

Organisational Behavior  Functional and psychological considerations concerning the behaviour and experience of individuals at the workplace.  Trade-off between business and human issues E.g. performance vs. psychological well-being.  Demarcation from other disciplines Human Resources Management (HRM) Personnel management Organisational psychology  Prescription rather than description

The study of behavior in organisations  Scientific management (based on Taylor, 1920s) – How to make work as efficient as it can get Systematical study of jobs to improve processes Selection practices Training in efficient methods and economical movements Offer of incentives based on merit (e.g. piece-rate systems) Use of rest pauses Focus on supervisors Focus on job specialisation & mass production

The study of behavior in organisations  Critique on scientific management De-skilling/degradation of work through specialisation and economising (i.e. fragmentation & mechanisation of work) The machine becomes more important than the worker Shift of control from the worker to the management (who controls the knowledge?)

The study of behavior in organisations  Classical bureaucracy (based on Weber, 1947) – How to organise large numbers of employees into an overall structure Focus on a hierarchy of authority Association of specific ranks with specific duties and rights Division of labour (categorisation/specialisation) Focus on explicit rules and procedures (i.e. how things are done) Documentation (i.e. everything written down) Search for technical competence (emphasis on qualifications) Separation of ownership from control

The study of behavior in organisations  Critique on classical bureaucracy The means become more important than the ends Rigidity (mainly due to division of labour) Alienation (specialisation without initiative) Resistance to change Contrary to the basic human need of relatedness (as opposed to an informal organisation) Trained incapacity

The study of behavior in organisations  Principles of organisation (Fayol, 1949; Urwick, 1952) – How to operate an organisation based on specific guidelines, namely: The organisation’s purpose/objective Hierarchy Span of control (at each rank) Division of labour and specialisation (i.e. compartmentalisation by function or activity) Authority & responsibility (i.e. initiative & accountability) Unity of command and direction Communication Chain of command

The study of behavior in organisations  Principles of organisation (…continued): Coordination (ensuring unity) (De)centralisation Definition (of duties, authority relationships, etc.) Balance (between different parts of the organisation) Continuity (adjustment and re-organisation)  Critique on the principles of organisation Minor emphasis on the importance of individual personality Encouragement of distrust Vulnerable to instances of autoritarianism and fear

The study of behavior in organisations  Industrial psychology (NIIP, 1920s) – Focus on psychological variables of life at the work- place (initial emphasis on ind. fatigue & monotony) Projects included:  Impact of noise  Effects of the menstrual cycle on performance  Prevention of accidents  Selection and training  Staff turnover Focus on systematic research  Use of job analysis, psychometrics and interviews

The study of behavior in organisations  Areas in Industrial psychology Human-machine interaction Design of environments and of work Personnel selection and assessment Appraisal and career development Counselling and individual development Training Employee relations and motivation Organisational development and change

The study of behavior in organisations  Critique on Industrial psychology Strategic issues HRM considerations (e.g. legal implications, expectancies) Social/political considerations within the organisation Communicating in business terms Incorporation of managerial concerns Implications for research Diffusion of relevant psychological knowledge

The study of behavior in organisations  Human relations movement (Mayo, 1930s) – A mixture of scientific management and industrial psychology: How an emphasis on the human element could boost production? Shift of focus from:  Psycho-physiological to socio-emotional model  The body as the instrument of work to attitudes as facilitators of output (productivity) The “Hawthorne effect” – Output when observed

The study of behavior in organisations  The human relations movement gave emphasis on: Collaboration of workers with management in a climate of trust  Unitarist vs. Pluralist view of the organisation The employees as willing consultants Considerate supervision Promotion of social activity/emphasis on social needs Link between satisfaction and productivity Open interviews as a source of information

The study of behavior in organisations  Critique on the human relations movement Methodological issues  Systematicity/Scientific rigour Lack of concern for broader organisational issues Unrealistic view of the organisation Relation between employee participation, satisfaction and productivity

The study of behavior in organisations  Neo-human relations (Miles 1965) – Emphasis on the ‘quality of working life’ based on principles of: Adequate remuneration Safety Minimisation of disruption to leisure and family needs Development of human capacities Opportunities for personal growth and security Breathing space for personal identities Privacy considerations Social responsibility

The study of behavior in organisations  Systems approach (Tavistock Institute, 1950s) – The view of an organisation as an open system, i.e. consisting of inputs, a transformation process, outputs and feedback from the external environment How do changes in technology or the external environment in general affect the orgnisation?

The study of behavior in organisations  Contingency approach  Postulate: There are no universal answers to orgnanisational questions Solutions are contingent on the situation Emphasis on critical thinking in the application of relevant theories (e.g. size of the company vs. formalisation of procedures)