SIXTH EDITION

CHAPTER 1
Foundations of
Organisational Behaviour
ORGANISATIONAL
ORGANISATIONAL BEHAVIOUR
BEHAVIOUR

Learning Outcomes

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ORGANISATIONAL
ORGANISATIONAL BEHAVIOUR
BEHAVIOUR

Learning Outcomes

Give an overview of the different views that were a source

for the development of the organisational behaviour (OB)
field

Explain Taylor’s principles

Describe the five key tasks of a manager according to Fayol

Give Barnard’s view on co-operation

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ORGANISATIONAL
ORGANISATIONAL BEHAVIOUR
BEHAVIOUR

Learning Outcomes

Contrast McGregor’s Theory X and Theory Y assumptions

about employees

Describe Morgan’s eight organisational metaphors

Define the term ‘organisational behaviour’.

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ORGANISATIONAL BEHAVIOUR

The beginnings of organisational behaviour

• OB IS ABOUT THE PEOPLE IN ‘PEOPLE MANAGEMENT’

• Job security
• Careful hiring
• Power to people
• Generous pay for
• Less emphasis on status
performance
• Trust building
• Lots of training

REMEMBER: Talk is not a substitute for action

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ORGANISATIONAL BEHAVIOUR

The beginnings of organisational behaviour

• 19TH CENTURY SOCIOLOGISTS

o Shift from feudalism to capitalism, and from an agriculture-based society to

an industrial one.
o Karl Marx development of the working class.

o Emile Durkheim studied the loss of solidarity in the new kind of society.

o Max Weber was the first to study the working of organisations and the
behaviour of people within organisations.
o He is especially known for his work on bureaucracy.
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ORGANISATIONAL BEHAVIOUR

Frederick Taylor
• SCIENTIFIC MANAGEMENT
• Worker/factory outcomes:
- Higher output/Standardisation
- Control and predictability
- Replacement of skilled workers by
non-skilled workers
- Thinking is for the managers only

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ORGANISATIONAL BEHAVIOUR

Henri Fayol

THE FIVE BASIC

MANANGEMENT TASKS:
1. Planning
2. Organising
3. Leading
4. Co-ordinating
5. Controlling
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ORGANISATIONAL BEHAVIOUR

Henri Fayol
14 GENERAL MANAGEMENT PRINCIPLES

1. Division of labour 8. Centralisation

2. Authority and responsibility 9. Hierarchy
3. Discipline 10. Order
4. Unity of command 11. Equity
5. Unity of direction 12. Stability of tenure of personnel
6. Focus on general interest rather 13. Initiative by every employee
than individual interest 14. Unity among the employees.
7. Fair salary

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ORGANISATIONAL BEHAVIOUR

Chester Barnard

• 3 necessary elements for • Major contributions

co-operative actions o Individual choice
o Willingness to co-operate o Power
o A common purpose o Informal groups
o Communication

• Major departutre from scientic management was the informal aspect of

management and organisations
• Rejects the idea that wages are sufficient to motivate workers

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ORGANISATIONAL BEHAVIOUR

Elton Mayo and the

Hawthorne studies

• Basic principle: focusing attention on employees

• Lighting improves productivity
• Output of interviews used to improve work conditions,
supervisory techniques and employee relations
• Goal: social organisaton of employees
• Informal groups developed their own rules of
behaviour, their own norms.
• Workers were more responsive to social forces of their
peer group than to the controls and incentives of
management
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ORGANISATIONAL BEHAVIOUR

Mary Parker Follett

• Integration of the individual and the organisation
• Improvement in the relationships between management and
employees
• Participatory decision-making / Decentralised power base
• Key themes for today’s managers:

• Dynamism • Leadership
• Empowerment • Conflict
• Participation • Experience

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ORGANISATIONAL BEHAVIOUR

Douglas McGregor

Table 1.2
McGregor’s
Theory X and
Theory Y

Source: Adapted from D. McGregor, The

Human Side of Enterprise (New York:
McGraw-Hill, 1960), Ch 4.

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ORGANISATIONAL BEHAVIOUR

Eight organisational metaphorical lenses

Table 1.3
Morgan’s
Organisational
Metaphors

Source: Adapted from D. McGregor, The

Human Side of Enterprise (New York:
McGraw-Hill, 1960), Ch 4.

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ORGANISATIONAL BEHAVIOUR

Eight organisational metaphorical lenses

Symbolic
interactionism

Postmodernism
• Rejects uniform concepts, general principles or any other statement about the
truth or the true world.
• Questions traditional boundaries.
• Work will be more flexible, informal, decentralised and unpredictable.
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ORGANISATIONAL BEHAVIOUR

Eight organisational metaphorical lenses

A MODEL OF
COMPETITION

RESOURCE
DEPENDENC
E

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ORGANISATIONAL BEHAVIOUR

Eight organisational metaphorical lenses

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ORGANISATIONAL BEHAVIOUR

Eight organisational metaphorical lenses

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ORGANISATIONAL BEHAVIOUR

Eight organisational metaphorical lenses

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ORGANISATIONAL BEHAVIOUR

Alternative views
• Conflict theory:
o Social structures and relationships in
organisations are based on conflicts
between groups and social classes

• Critical theory:
o Critics to the rational, functionalistic,
managerial and capitalistic views on
organisatons

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