Behavioural Theory.pptx

BEHAVIOURAL THEORY

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BEHAVIOURAL THEORY “THE BEHAVIOURAL THEORY IS A PERSPECTIVE ON MANAGEMENT THAT EMPHASISES THE IMPORTANCE OF ATTEMPTING TO UNDERSTAND THE VARIOUS FACTORS THAT AFFECT HUMAN BEHAVIOUR IN ORGANISATIONS”. THE EMPLOYEES BEHAVIOR WAS NOT AFFECTED BY JOB CONDITIONS ALONE, THERE WERE INTERNAL REACTIONS TO THE JOB SITUATION ALSO THAT AFFECT THEIR BEHAVIOUR.

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INCLUDES THREE ERAS OF BEHAVIORAL APPROACH HUMAN RELATIONS MOVEMENT HUMAN NEEDS AND MOTIVATION INTEGRATIVE CONCEPTS

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HUMAN RELATIONS MOVEMENT HUMAN RELATIONS REFER TO THE WAY IN WHICH MANAGERS INTERACT WITH THEIR SUBORDINATES. WHEN THE FOCUS OF MANAGEMENT IS HUMAN BEINGS AND HUMAN RELATIONS, THE MORALE OF WORKERS GOES UP AND IS POSITIVELY REFLECTED IN INCREASED PRODUCTIVITY AND EFFICIENCY OF THE ORGANISATION.

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ELTON MAYO AND HUMAN RELATION THEORY ELTON MAYO IS REGARDED AS THE FATHER OF HUMAN RELATION APPROACH. HE CONDUCTED A SERIES OF EXPERIMENT AT THE HAWTHORNE PLANT OF THE WESTERN ELECTRIC COMPANY TO STUDY THE IMPACT OF ILLUMINATION AND OTHER WORKING CONDITIONS ON THE PRODUCTIVITY OF WORKERS. THIS IS KNOWN AS HAWTHORNE STUDIES. IT IS DIVIDED INTO TWO GROUPS TEST ROOM STUDIES 1)ILLUMINATION EXPERIMENT 2)RELAY ASSEMBLY ROOM EXPERIMENT INTERVIEWING STUDIES OBSERVATION STUDIES uts

TEST ROOM STUDIES THESE STUDIES WERE CONDUCTED BY THE WESTERN ELECTRIC RESEARCHERS TO STUDY THROUGH EXPERIMENT THE IMPACT OF A SINGLE VARIABLE ON THE WORKERS PRODUCTIVITY. 1. ILLUMINATION EXPERIMENT TO STUDY THE EFFECT OF LIGHTING ON THE WORKERS PRODUCTIVITY. DIVIDED THE WORKERS INTO TWO GROUPS GROUP -1 :- LIGHTING CONDITION IMPROVED AND THE PRODUCTIVITY WENT UP . GROUP-2 :- LIGHTING CONDITION REMAINED CONSTANT AND THE PRODUCTIVITY INCREASED.

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RELAY ASSEMBLY TEST ROOM EXPERIMENT GROUP OF SIX GIRLS WAS CHOSEN AND ASKED TO WORK IN A TEST ROOM. CHANGES IN WORKING CONDITIONS WAS TRIED ON THEM , THIS HAD A POSITIVE IMPACT ON PRODUCTIVITY. BUT EVEN AFTER WITHDRAWING THESE CONDITIONS THE PRODUCTIVITY DID NOT GO DOWN.

HAWTHORNE EFFECT MOTIVATION, LEADERSHIP AND COMMUNICATION PLAY A MORE IMPORTANT ROLE ON HUMAN BEHAVIOUR THAN THE GENERAL PRINCIPLES OF MANAGEMENT OR EVEN THE FINANCIAL INCENTIVES.

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INTERVIEWING STUDIES WORKERS WERE INTERVIEWED TO FIND OUT THEIR ATTITUDE TOWARDS THEIR SUPERIORS, JOB AND JOB CONDITIONS.THIS HELPED TO INCREASE THE MORALE OF WORKERS AND THEY VOICED THEIR PROBLEMS AND GRIEVANCES OPENLY TO THEIR MANAGERS.

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OBSERVATION STUDIES THESE STUDIES COMPRISED OF THE BANK WIRING OBSERVATION ROOM EXPERIMENT.A GOUP OF 14 WORKERS WAS SELECTED AND NO CHANGES WERE MADE IN THEIR WORKING CONDITIONS.BUT THE GROUP MEMBERS THEMSELVES LAID THEIR STANDARD OUTPUT THAT THEY WOULD ACHIEVE IN A DAY.THIS IS BECAUSE OF THE SOCIAL PRESSURES CREATED BY GROUP MEMBERS. THE EXPERIMENT CONCLUDED THAT : 1.INFORMAL AND SOCIAL GROUPS WERE AN IMPORTANT COMPLEMENT TO THE FORMAL GROUPS. 2.SOCIAL PRESSURE WERE MORE IMPORTANT THAN THE FINANCIAL INCENTIVES THAT MOTIVATED THE WORKERS TO WORK IN AGIVEN DIRECTION. uts

HIGHLIGHTS OF HAWTHORNE STUDIES 1. THERE IS NO DIRECT RELATIONSHIP BETWEEN WORKER PRODUCTIVITY AND PHYSICAL FACTORS. 2. WORKER IS NOT A RATIONAL MAN BUT IS A SOCIAL MAN. 3. INFORMAL GROUPS ARE IMPORTANT AS FORMAL GROUPS IN INFLUENCING THE HUMAN BEHAVIOUR. 4. WORK IS CONSIDERED AS A GROUP ACTIVITY AND NOT AS AN OPERATION PERFORMED BY AN INDIVIDUAL WORKER. 5. THE HUMAN SOCIAL AND SOCIAL FACTORS RESULT IN THE OVERALL GROWTH AND DEVELOPMENT OF THE HUMAN RESOURCE. 6. NON FINANCIAL INCENTIVES ARE MORE IMPORTANT THAN FINANCIAL INCENTIVES IN DETERMINING THE ATTITUDE OF WORKERS TOWARDS THEIR SUPERIORS AND JOB RELATED TASK. uts

EVALUATIONS 1. IT CREATED AN IMPACT ON THE ORGANISTION’S EFFICIENCY BY FOCUSING ON THE FACT THAT SOCIAL NEEDS OF THE WORKERS WERE MORE IMPORTANT THAN OTHER NEEDS AND THAT THE FULFILMENT OF THESE NEEDS WAS REFLECTED IN INCREASED OUTPUT. 2. THE WORKWRS ARE SEEN AS A PART OF THE WHOLE GROUP WHERE INFORMAL COMMUNICATION AND LEADERSHIP PROVES TO BE MORE EFFECTIVE THAN THE FORMAL ONE. 3. THE MANAGERS CAN GET BETTER RESULT BY FOLLOWING A CHANGE IN THEIR MANAGEMENT STYLE. 4. FINANCIAL INCENTIVES ARE NOT ALWAYS AS REWARDING AS THE NON FINANCIAL INCENTIVES IN AFFECTING THE HUMAN BEHAVIOUR. uts

HUMAN NEEDS AND MOTIVATION

Theory X and Theory Y: Douglas McGregor • Douglas McGregor (1906-1964) – To understand human behavior, one must discover the theoretical assumptions upon which behavior is based – Especially interested in the behavior of managers toward workers – “Every managerial act rests on assumptions, generalizations, and hypotheses– Theory X – Theory Y – FOCUS: Manager’s assumptions about HUMAN NATURE

McGregor’s Beliefs • Employees are not machine parts to be fixed, redesigned, or eliminated • They are individual people in all of their complexity

McGregor’s Contribution to Management Theory • Theory X assumptions The average person dislikes work and will avoid it Most people must be controlled People avoid responsibility and have little ambition

McGregor’s Contribution to Management Theory • Theory Y assumptions Physical and mental work effort are natural Commitment is a function of proper rewards People learn to seek responsibility People have the ability to creatively solve organizational problems Employees need the freedom to utilize their potential

Theory X and Theory Y Theory X

Theory Y

Avoid Work

Work is Natural

Must be Controlled

SelfDirection

Avoid Responsibility

Seek Responsibility

Seek Security

Good Decisions, creativity

• Theory X... management through: force tight controls threats punishments

• Theory Y... management through: open systems communication self-managing teams

Abraham Maslow (1908-1970) Considered to be the founder of humanistic psychology.

theory of human needs had three assumptions: • Human needs are never completely satisfied. • Human behavior is purposeful and is motivated by the need for satisfaction. • Needs can be classified according to a hierarchical structure of importance from the lowest to highest.

Maslow’s Hierarchy of Needs • • • • •

Self-Actualization Esteem(appreciation) Social need Safety Physiological

Maslow’s Hierarchy of Needs MOST NEEDS HAVE TO DO WITH SURVIVAL PHYSICALLY AND PSYCHOLOGICALLY

PHYSIOLOGICAL OR SURVIVAL NEEDS

Physical needs

• • • • •

What did Maslow mean by physical needs?

Food Water Air Shelter Clothing

What physical needs do every person have?

These are essential for good health and well-being, and for continuation of life.

Maslow’s Hierarchy of Needs ON THE WHOLE AN INDIVIDUAL CANNOT SATISFY ANY LEVEL UNLESS NEEDS BELOW ARE SATISFIED

SAFETY NEEDS

PHYSIOLOGICAL OR SURVIVAL NEEDS

Safety and Security Needs • Staying well, avoiding being ill • Avoiding danger or Safe circumstances • Stability

Maslow’s Hierarchy of Needs

SOCIAL NEED SAFETY NEEDS

PHYSIOLOGICAL OR SURVIVAL NEEDS

Social needs • Friends, family,affectionate relationships in general, even a sense of community

Maslow’s Hierarchy of Needs

ESTEEM NEEDS SOCIAL NEEDS

SAFETY NEEDS

PHYSIOLOGICAL OR SURVIVAL NEEDS

The Esteem needs • Self-esteem – The need for the respect from others, the need for status, fame, recognition, attention, reputation, appreciation, even dominance.

• Individual level – Confidence, competence, dignity,achievement, independence and freedom

Maslow’s Hierarchy of Needs NEED FOR SELF-

ACTUALIZATION MASLOW EMPHASIZES NEED FOR SELF ACTUALIZATION IS A HEALTHY INDIVIDUAL’S PRIME MOTIVATION

SELF-ACTUALIZATION MEANS ACTUALIZING

Who am I????? How am I doing????

Maslow’s Hierarchy of Needs NEED SELFACTUALIZATION

ESTEEM NEEDS

SOCIAL NEEDS

SAFETY NEEDS

PHYSIOLOGICAL OR SURVIVAL NEEDS

Maslow’s view on a Self-actualized Person • Has mental stability • Fully explore talents • Motivated by values

• Implications for Management • Physiological needs: Provide lunch breaks, rest breaks, and wages that are sufficient to purchase the essentials of life. • Safety Needs: Provide a safe working environment and job security.

• Social Needs: Create a sense of community via team-based projects and social events.

• Esteem Needs: Recognize achievements to make employees feel appreciated and valued. Offer job titles that convey the importance of the position. • Self-Actualization: Provide employees a challenge and the opportunity to reach their full career potential with value based approach.

• Limitations of Maslow's Hierarchy • There is evidence that contradicts the order of needs specified by the model. For example, some cultures appear to place social needs before any others • There is little evidence to suggest that people are motivated to satisfy only one need level at a time, except in situations where there is a conflict between needs.

Maslow’s Hierarchy of Needs General Examples Self-Fulfillment Status

Family, Friendship Stability Food, Shelter

Organizational Examples SelfSelfActualization Actualization Needs Needs Esteem Needs Esteem Needs Social Needs Needs Social

Security Needs Security Needs Physiological Needs Physiological Needs

Challenging Job

Job Title

Friendly work environment Job security

Salary

Theory Z • Theory Z has been called a sociological description of the humanistic organizations •

“Theory Z is an approach to management based upon a combination of American and Japanese management philosophies”. Proponents of Theory Z suggest that it leads to improvements in organizational performance.

• The following sections highlights; 1. The definition of Theory Z

2.

The Maker – William G. Ouchi

3.

The History of Theory Z

4.

American Management V/s Japanese Management .

5.

Transformation.

6.

Features

7.

An evaluation of Theory Z.

Definition 1.

The Japanese management style popularized in the 1980s that assumes employees have an interest in good working relationships with management and other employees. Management generally has high confidence in employees, who are encouraged to participate in the management decision making. Employees are viewed as long-term assets who will stay with the same firm throughout their careers.

2.

Japanese consensus management style based on the assumptions that (1) employees want to build cooperative relationships with their employers, peers, and other employees in the firms; for this they (2) require high degree of support in the form of secure employment and facilities for development of multiple skills through training and job rotation, (3) they value family life, culture and traditions, and social institutions as much as material success, (4) they have well-developed sense of dedication, moral obligations, and self-discipline, and (5) they can make collective decisions through consensus.

William G. Ouchi •

American professor and author in the field of business management.

•

B.A.- Williams College. MBA- Stanford University. Ph.D. in Business Administration- The University of Chicago.

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Stanford business school professor for 8 years.

•

First book in 1981 -“Theory Z: How American Management Can Meet the Japanese Challenge” .

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Second book- The M Form Society: How American Teamwork Can Recapture the Competitive Edge

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Ouchi also came up with his three approaches to control in an organization's management:

1.

Market control.

2.

Bureaucratic control.

3.

Clan control.

History "Theory Z." can be traced to the work of Douglas McGregor in the 1950s and 1960s. Theory X ('authoritarian management' style) Features: The average person dislikes work and will avoid it he/she can. Therefore most people must be forced with the threat of punishment to work towards organizational objectives. The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and wants security above all else.

Theory Y ('participative management' style) Features: Effort in work is as natural as work and play. People will apply self-control and self-direction in the pursuit of organizational objectives, without external control or the threat of punishment. Commitment to objectives is a function of rewards associated with their achievement. People usually accept and often seek responsibility. The capacity to use a high degree of imagination, ingenuity and creativity in solving organizational problems is widely, not narrowly, distributed in the population. In industry the intellectual potential of the average person is only partly utilized.

History(cont..)  In the 1970s and 1980s, many U.S industries lost market share to international competitors, particularly Japanese companies. • Ouchi contrasted American types of organizations (Type A) that were rooted in the United States' tradition of individualism with Japanese organizations (Type J) that drew upon the Japanese heritage of collectivism. • Modified American approach to management with the best characteristics of Japanese organizations while retaining aspects of management that are deeply rooted in U.S. traditions of individualism. • Ouchi proposed that a Theory Z management approach could lead to; 1. Greater employee job satisfaction 2. Lower rates of absenteeism and turnover 3. Higher quality products 4.Better overall financial performance for U.S. firms.

Differences between American and Japanese Management Practices American Organizations

Japanese Organizations

Short-term employment

Lifetime employment

Individual decision making

Collective decision making

Individual responsibility

Collective responsibility

Rapid evaluation & promotion

Slow evaluation & promotion

Explicit control mechanisms

Implicit control mechanisms

Specialized career paths

Non-specialized career paths

Segmented concern for employee as an employee

Holistic concern for employee as a person

Strategies to Transform the Organization 

12 strategies to transform a typical American company, named as type A company to type Z company.

1.

Skeptics have to be allowed to exist.

2.

Audit its philosophy.

3.

Define desired philosophy and be able to involve company leaders.

4.

Create structure and incentive in the company.

5.

Develop interpersonal skills.

6.

Test themselves and the system.

7.

Stabilize employment.

8.

Slow evaluation and promotion.

9.

Broaden the people’s career paths.

10. Working into the lower level. 11. Employee participation is allowed in decision making. 12. Create a sense of family between everyone.

Features LONG-TERM EMPLOYMENT  CONSENSUAL DECISION MAKING INDIVIDUAL RESPONSIBILITY SLOW EVALUATION AND PROMOTION INFORMAL CONTROL WITH FORMALIZED MEASURES MODERATELY SPECIALIZED CAREER PATH

HOLISTIC CONCERN

LONG-TERM EMPLOYMENT

Type Z organizations generally make life-long commitments to their employees and expect loyalty in return, but Type Z organizations set the conditions to encourage this. This promotes stability in the organization and job security among employees.

CONSENSUAL DECISION MAKING

The Type Z organization emphasizes communication, collaboration, and consensus in decision making

INDIVIDUAL RESPONSIBILITY

Type Z organizations retain the emphasis on individual contributions that are characteristic of most American firms by recognizing individual achievements, albeit within the context of the wider group.

SLOW EVALUATION AND PROMOTION

The Type Z organization, conversely, adopts the model of slow evaluation and promotion.

INFORMAL CONTROL WITH FORMALIZED MEASURES

The Type Z organization relies on informal methods of control, but does measure performance through formal mechanisms. This is an attempt to combine elements of both the Type A and Type J organizations.

MODERATELY SPECIALIZED CAREER PATH

The Type Z organization adopts a middle-of-the-road posture, with career paths that are less specialized than the traditional U.S. model but more specialized than the traditional Japanese model.

HOLISTIC CONCERN

The Type Z organization is characterized by concern for employees that goes beyond the workplace. This philosophy is more consistent with the Japanese model than the U.S. model.

Companies following Theory Z. in U.S • IBM • Procter and Gamble • Hewlett Packard • Eastman Kodak • The US Military

Principles of Management - Ouchi's Theory Z

Human Behavior Approach to Mngt. Key Concepts • Behavioral approach explains how managers influence others to achieve organizational objectives through human relations and motivation. • Productivity and employee behavior are influenced by the informal work group. • Cohesion, status, and group norms determine output and productivity. • Managers stress employee welfare, motivation and communication. • Social needs have precedence over economic needs.

Maraming salamat po.