Robert Owen is important in the history of OB because he was one of the first industrialists who
argued for :-
• Regulated hours of work for all workers
• Child labour laws
• Public education
• Company supplied meals at work
• Business involvement in community projects.
German Sociologist, Max Weber developed “a theory of authority structures and described
organizational activity based on authority structures”.
Soon after Max Weber, F W Taylor introduced a “systematic use of goal setting and rewards to
motivate employees” and also defining clear guidelines for improving production efficiency by
his one of the paper called “The Principles
of Scientific Management”.
Henry Fayol, father of modern Management defined the universal functions that all managers
perform and the principles (14 principles of Management) that constitute good management
practices.
In the late 1950’s people like Abraham Maslow, Douglas McGregor, David McCellenad,
Herzberg, Freud Sigmund and other behavioural scientists propounded many theories on
employee behaviour.
Definitions of OB
Stephen P Robbins - “Organisational behaviour is a field of study that investigates the
impact that individuals, groups and structure have on behaviours within the organizations for the
purpose of applying such knowledge towards improving an organization's effectiveness”.
Fred Luthans - “Organisational behaviour is directly concerned with the understanding
production and control of human behaviour in
organization”.
Raman J. Aldag – “Organisational behaviour is a branch of the social sciences that seeks
to build theories that can be applied to predicting, understanding and controlling behaviour in
work organizations”.
By analyzing the above definitions, we can define OB as a Behavioural Science that states
about :
• Nature of Man
• Nature of the Organization
• Knowledge of human that is useful in improving an organization’s effectiveness.
Nature of OB
1) OB must look at the unique perspective that each individual
brings to the work setting.
2) OB is to study the dynamics of how the incoming individuals
interact with the broader organization. No individual can work in
isolation he/she comes into contact with the other individuals
and the organization in a variety of ways.
3) OB must be studied from the perspective of the organization
itself because an organization exists before a particular
individual joins in and continues to exist after he or she left the
organization.
We can say that we cannot study individual behaviour completely without learning
something about the organizations. On the other hand, we cannot study the
organizations without studying the behaviour of the individuals working in it. This is
because the organization influences and is influenced by the people working in it.
Foundations of OB
The subject OB is based on a few fundamental concepts which are explained below :-
1) Individual Differences
Each person is different from one to another in intelligence, physique, personality, or any
such trait. Individual differences mean that management can cause the greatest
motivation among employees by treating them differently. If it were not for individual
differences, some standard, across-the-board way of dealing with all employees could
be adopted and minimum judgement would be required thereafter. It is because of
individual differences that OB begins with the individual. Only a person can take
responsibility and make decisions.
2) A whole Person
When an individual is appointed, his or her skill alone is not hired, his/her social
background, likes and dislikes, pride and prejudices are also hired. A person’s family life
cannot be separated from his or her work life. It is for this reason that managers
endeavour to make the workplace a home away from home, to develop a better
employee out of a worker, but also a better person in terms of growth and fulfillment.
3. Caused Behaviour
The behaviour of the employee is caused and not random. This behaviour is directed
towards someone that the employee believes is in his/her interest. The manager must
realize this basic principle and correct this behaviour.
4. Human Dignity
This states that people want to be treated with respect and dignity. Every job, however
simple, entitles the people who do it to proper respect and recognition of their unique
aspirations and abilities. The concept of human dignity rejects the old idea of using
employees as economic tools. Organizational behaviour always involves people, ethical
philosophy is involved in one way or other in each action. Human decisions cannot and
should not be made devoid of values.
5. Organizations are Social systems
Organizations are social systems; consequently activities therein are governed by social
as well as psychological laws. The people also have social roles and status. Their
behaviour is influenced by their group as well as by their individual drives.
The existence of a social system implies that the organizational environment is one of
dynamic change, rather than a static one. All parts of the system are interdependent and
are subject to influence by any other part.
6. Mutuality of Interest
Organizations are formed and maintained on the basis of mutuality of interest. Among
their participants i.e. organizations need people and people also need organizations.
People see organizations as a means to help them reach their goals, while, at the same
time, organizations need people to help attain organizational objectives. Mutual interest
provides a superordinate goal that unites the variety of needs that people bring to
organizations.
7. Holistic Concept
This concept interprets people-organization relationships in terms of the whole person,
whole group, whole organization, and the whole social system. It takes an
all-encompassing view of people in organizations in an effort to understand
as many of the possible factors that influence their behaviour. Issues are analyzed in
terms of the situation affecting them rather than in terms of an
isolated event or problem.
