Organisational Behaviour Part 1

The Internal & External Environment of Organisations
1. PESTLE
  1. Political
    1. goverment policy
    2. ideology
    3. civil unrest
    4. trade union policies
  2. Economic
    1. growth patterns
    2. competitor behaviour
    3. tax regime
    4. supplier behaviour
  3. Social
    1. demographic trends
    2. social trends
    3. attitude to work
  4. Technological
    1. new products
    2. new materials
    3. Internet trading
  5. Legal
    1. European harmonization of legalisation
    2. international law
    3. human rights concerns
  6. Environment
    1. environmental concerns
    2. reduction of toxic emissions
    3. noise pollution
2. Globalisation
  1. More competition
  2. More speed
  3. More opportunities
  4. New markets
  5. Few barriers
3. What kind of organisation for what kind of Environment? •
  1. • Little uncertainty, stable, few changes = standardised work processes, hierarchy, bureaucracy
  2. • Moderate uncertainty, variables = planning and some decentralisation
  3. • Increased levels of uncertainty and change = flexible, adaptable, decentralised
  4. • Highly complex, rapidly changing = fluid structures, flexible managers and staff
  5. • Environmental complexity: the range of external factors relevant to the activities of the organisation: the more factors the higher the complexity
Approaches to Organisations and Management
1. Scientific Approach
  1. - underpinned by changes wrought by the industrial revolution
  2. the emergence of capitalism
  3. Time space distanciation of work
  4. Production moves from home to factory for wages
  5. 4 Principles
    1. • a clear division of tasks and responsibilities between management and workers
    2. scientific selection and training of workers
    3. development of true science of work containing rules, laws and principles to replac rule- of -thumb methods
    4. enthusiastic co-opertion of workers to ensure that the work was performed in accordance with scientific management principles- ensured by the use of economic incentives
  6. Criticisms
    1. – leads to the deskilling of labour process (Braverman)
    2. alienation (Mark, Blauner)
    3. high cost of establishing work practices/ establishing standards
    4. work resistance
    5. mistaken view of human nature
2. Human Relations Approach
  1. • Developed around the Hawthorne studies (1924-1932) at the Hawthorne plant, Western Electricity Co. Chicago.
  2. These were a major attempt to systematically study worker behaviour to find out what influences worker's productive behaviour
  3. Social factors at work and employee behaviour within organisations were studied
  4. There were three notable experiments: The illumination experiments Relay assembly room study Bank wiring room study
  5. It has also emphasised a need for management to develop a greater understanding of employees social and psychological needs when attempting to improve the process of management.
    1. It also drew attention management behviour as a vitall ingredient to securing employee motivation and improved performance
      1. Those who are satisfied with their job will feel benevolent to their employee and be more productive
3. Human Resource Approach
  1. This approach: • Borrows from the Japanese model of employee relations
  2. This has been described as policies that promote mutuality – mutual goals, mutual influence, mutual rewards and mutual responsibility. The theory is that policies of mutuality will illicit commitment which in turn will yield both better economic performance and greater human development.
  3. Enshrines effective management of the human resource as part of company strategy
  4. Uses the rhetoric that the employee is the most valued resource
  5. Assumes that the organisation, management and employees have common goals and a commitment to the success of the organisation(unitary perspective
  6. Emphasises trust and the breaking down of 'us and them' models
  7. Mutuality as the correct mind set
  8. Placed an emphasis on employee ownership ( task, company & strategy)
  9. Has a customer emphasis - e.g. TQM
Organisational Structures
Motivation
1. Worker Output
  1. Ability
  2. The environment
  3. Motivation of employee
2. Content Theory of Motivation
  1. Based upon the individual's need state
  2. Make the assumption that we have enduring and universal personal characteristics and needs
  3. This body of work creates models of these needs/characteristics
  4. Workplace behaviour is characterised by the person's current need state
3. Process theories of motivation
  1. where the individual has the cognitive
    1. Cognitive choice/decision based model focuses on the relationship between action and expected outcome
      1. akin to economic models of rationality
      2. Two forms
        Simple path goal
        where action is performed with an expected outcome in mind
        More complex expectancy/rationality
        Where action is carried out taking into account the individual sacrifices that will need to be made in order to achieve the required goal.
  2. decision making role in pursuing goal directed
  3. behaviour
  4. Equity Theory
    1. based on the justice motive
    2. employee engages in behaviour to reduce injustice (works slower? Takes time off sick?)

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Organisational Behaviour Part 1

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	Created by Brenna Hinchliffe over 8 years ago