Organizational Behavior

Unit 1

Dr . SABIYA . MUFTI
What is an Organization?

An organization is
a collection of
people who work
together to achieve
individual and
organizational
goals.
 What is an Organization

A consciously coordinated social unit,

composed of two or more people, that
functions on a relatively continuous
basis to achieve a common goal or set
of goals.
What is Organizational Behavior?

Organizational behavior
(OB) is the study of factors
that affect how individuals
and groups act in
organizations and how
organizations manage their
environments.
Levels of Analysis
Organizational Level

Group Level

Individual
Level
Components of Organizational Behavior
 What is Management?

Management is the process of

planning, organizing, leading, and
controlling an organization’s human,
financial, material, and other
resources to increase its
effectiveness.
The Functions Of Management
Management
process of working with people and resources to

accomplish organizational goals

 effective - achieve organizational goals
 efficient - achieve goals with minimum waste of resources

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Planning
Organizing
Managers’ Job
Leading
Controlling

Manageme
nt
Henry Fayo Functions
l a French I
all manage ndustrialis
rs perform t wrote that
functions f o ur manageme
nt
 Managers’ Job
Management Functions Organizing
Henry Fayol a French Industrialist
wrote that all managers perform Determines what tasks are to
four management functions
be done;
Planning
Organizing
Who is to do them;
Leading How the tasks are to be
Controlling
grouped;
Planning Who reports to whom; and
Organizing Where decisions are to be
Leading
made.
controlling
 Managers’ Job
Management Functions Leading
Henry Fayol a French
Industrialist wrote that all Motivating employees;
managers perform four
management functions Direct their activities;
Planning Select the most effective
Organizing
Leading
communication channels; or
Controlling Resolve conflicts among
members.
Planning
Organizing

Leading
controlling
 Managers’ Job
Management Functions
Henry Fayol a French
Industrialist wrote that all
managers perform four
management functions
Planning
Organizing
Leading
Controlling
Controlling
Monitoring performance;
Comparing performance with
the set standard;
Making corrections, if
necessary.

Planning
Organizing
Leading
Controlling
Management Levels
Top-level
managers

Middle
managers

Frontline managers

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 Management Levels
Management level
Top-level managers
senior executives responsible for overall management
of an organization

 focus on long-term issues
 emphasize the survival, growth, and effectiveness of the firm


 concerned with the interaction between the organization and



its external environment

1-17
 Management Levels
Management level (cont.)
Middle-level managers (tactical managers)

 located between top-level and frontline managers in the
organizational hierarchy
 responsible for translating strategic goals and plans into more


specific objectives and activities

 traditional role was that of an administrative controller who


bridged the gap between higher and lower levels

 growing role is that of a developmental coach to the people


who report to them

1-18
 Management Levels
Management level (cont.)
Frontline managers (operational managers)

 lower-level managers who supervise the operational activities of
the organization
 directly involved with non management employees


 increasingly being called on to be innovative and



entrepreneurial
Working leaders with broad responsibilities

 in leading small companies, managers have strategic, tactical,
and operational responsibilities
 have a knowledge of all business functions, are accountable for


results, and focus on internal and external customers

1-19
 Managerial Roles
Manager: Any person who supervises one or more
subordinates.
Role: A set of behaviors or tasks a person is
expected to perform because of the position he or
she holds in a group or organization.
Managerial roles identified by Mintzberg.
Figurehead Leader
Liaison Monitor
Disseminator Spokesperson
Entrepreneur Disturbance handler
Resource allocator Negotiator
 Management Roles
In 1960s, Mintzberg after studying 5 executives to

determine what those managers did on their jobs.

Mintzberg concluded that mangers perform 10

different, highly interrelated roles – or set of behaviors

– attributable to their jobs.
 Mintzberg’s Managerial Roles

Role Description
Interpersonal

Figurehead Symbolic head, required to perform a

number of routine duties of a legal or social nature

Leader Responsible for the motivation & direction of

employees

Liaison Maintains a network of outside contacts who

provide favors & information
 Mintzberg’s Managerial Roles

Role Description
Informational

Monitor Receives a wide variety of information; serves as

nerve centre of internal & external information of the
organization

Disseminator Transmits information received from outsiders or

from other employees to members of the
organization

Spokesperson Transmits information to outsiders on

organization's plans, policies, actions, & results; serves as an
expert on organization’s industry
 Mintzberg’s Managerial Roles
Role Description
Decisional
Entrepreneur Searches organization & its environment for
opportunities & initiatives projects to bring about
change

Disturbance handler Responsible for corrective action when

organization faces important, unexpected
disturbances

Resource allocator Makes or approves significant organizational

decisions

Negotiator Responsible for representing the organization at

major negotiation
 Managerial Skills
Conceptual Skills:
The ability to analyze and
diagnose a situation and
distinguish between cause and
effect.
Human Skills:
The ability to understand, work
with, lead, and control the
behavior of other people and
groups.
Technical Skills:
Job-specific knowledge and
techniques.
 Luthans’ Study of Managerial Activities
Four types of managerial activity:
Traditional Management
Decision-making, planning, and controlling.
Communication
Exchanging routine information and processing paperwork
Human Resource Management
Motivating, disciplining, managing conflict, staffing and training.
Networking
Socializing, politicking, and interacting with others.

Managers who promoted faster (were successful) did different

things than did effective managers (those who did their jobs well)
 Wilson Managerial Skills
Research
Statistically Dealing effectively with people is
validated profile of what management is all about;
managerial skills: The 11 skills constitute a goal
over 20 years’ creation/communication/feedback
research by Clark /reward/accomplishment cycle
Wilson et al (2003) with human interaction at every
turn.
Managers with high skills’ mastery
tend to have better subunit
performance & employee morale
than managers with low skills’
mastery
 Wilson Managerial Skills Research
(cont.)

Statistically Effective female & male managers

validated profile of do not have significantly different
managerial skills: skill profiles, contrary to claims in
over 20 years’ the popular business press in
research by Clark recent years.
Wilson et al (2003) At all career stages, derailed
managers (those who failed to
achieve their potential) tended to
be the ones who overestimated
their skill mastery ( rated
themselves higher than their
employees did).
 Research evidence
Concluding remarks of researcher:

“when selecting individuals for promotion to

managerial positions, those who are arrogant, aloof,
insensitive, and defensive should be avoided”
Skills exhibited by Effective Manager
Clarifies goals & objectives for everyone involved;

Encourages participation, upward communication, &

suggestions;
Plans & organizes for an orderly work flow;

Has technical & administrative expertise to answer

organization-related questions;
Facilitates work through team building, training, coaching, &

support;
 Skills exhibited by Effective Manager (Cont.)

Provides feedback honestly & constructively;

Keeps things moving by relying on schedules, deadlines, & helpful

reminders;

Controls details without being arrogant;

Applies reasonable pressure for goal accomplishment;

Empowers & delegates key duties to others while maintaining goal
transparency & commitment;

Recognizes good performance with rewards & positive corroboration.

Managing For Competitive Advantage

Cost
Innovation
Competitiveness

Competitive
Advantage

Quality Speed

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Managing For Competitive Advantage
Cost competitiveness

costs are kept low enough so that you can realize profits and price your products at

levels that are attractive to consumers


key is efficiency - accomplishing goals by using resources wisely and minimizing waste
Quality

excellence of a product, including its attractiveness, lack of defects, reliability, and
long-term durability

importance of quality has increased dramatically


must identify specific elements of quality to correct problems, target needs, and deliver

world-class value

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Managing For Competitive Advantage (cont.)

Speed
 often separates winners from losers in world competition

 speed became a vital requirement in the 1990s


 requirement has increased exponentially

Innovation
 the introduction of new goods and services

 important to adapt to changes in consumer demands and to new sources

of competition

Best managers and companies delivering all four

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 Organizational Behavior

A field of study that investigates the impact that

individuals, groups, and structure have on behavior within
organizations, for the purpose of applying such knowledge
toward improving an organization’s effectiveness.

“Gregory Moorhead :2007”

 Organizational Behavior
The field of OB deals with human behavior in

organizations
OB is the multidisciplinary field that seeks

knowledge of behavior in organizational settings

by systematically studying individual, groups, and
organizational processes.
“Jerald Greenberg:2008”
 Organizational Behavior
This knowledge is used both by scientists

interested in understanding human behaviour

& by practitioners interested in enhancing
organisational effectiveness & individuals well
being.
“Robert A .Baron:2008”
 Organizational Behavior
Organisation Behaviour is concerned with the
study of what people do in an organisation
and how that behaviour affects the
performance of the organisation.
“Robbins: 1998,9”
 Organizational Behavior
OB highlights four central characteristics of
the field.
It is firmly grounded in the scientific method.

It studies individuals, groups & organisations.

It is interdisciplinary in nature.

It is used as the basis for enhancing organisational

effectiveness & individual well-being.

 Organizational Behavior
The study of Organisational Behaviour involves:
consideration of the interaction among the formal structure

(organisational context in which the process of management

takes place)
the technology employed and the methods of carrying out work

the behaviour of people

the process of management

the external environment

 Organizational Behavior
Interrelated dimensions influencing behaviour:
The Individual - working environment should satisfy individual

needs as well as attainment of organisational goals.

The Group - formal and informal. Understanding of groups

complements a knowledge of individual behaviour.

The Organisation - impact of organisation structure and design,

and patterns of management, on behaviour.

The Environment - technological and scientific development,

economic activity, governmental actions.

Intuition and Systematic Study
Intuition
 Gut feelings
 Individual observation
 Common sense
Systematic Study
Looks at relationships
Scientific evidence
Predicts behaviors
The two are complementary means of
predicting behavior.
An Outgrowth of Systematic Study…
Evidence-Based Management (EBM)
 Basing managerial decisions on the best available
scientific evidence.
 Must think like scientists:
 Pose a managerial question
 Search for best available evidence
 Apply relevant information to case
 Intuition and Systematic Study
The trick is to know when to go with your gut.
“Jack Welch”
Intuition is often based on inaccurate
information
Faddism is prevalent in management
Systematic study can be time-consuming
Use evidence as much as possible to inform your
intuition and experience. That is the promise of OB.
Managers Should Use All Approaches
 Behavioral Contributions Unit of Output
science Learning
analysis
Learning
Motivation
Motivation
Personality
Personality
Emotions
Emotions
Perception
Perception
Training
Training
Leadership
Leadership effectiveness
effectiveness
Psychology Job
Job satisfaction
satisfaction
Individual
Individual decision
decision making
making
Performance
Performance appraisal
appraisal
Attitude
Attitude measurement
measurement
Employee
Employee selection
selection
Wok
Wok design
design Individual
Individual
Work
Work stress
stress

Behavioral
Behavioral change
change
Attitude
Attitude change
change
Social
Social Communication
Communication
psychology
psychology Group
Group processes
processes
Group
Group decision
decision making
making

Communication
Communication Study of
Group
Power
Power organizational
Conflict
Conflict behavior
Intergroup
Intergroup behavior
behavior
Sociology Formal organization
organization theory
Formal theory
Organizational technology
Organizational technology
Organizational
Organizational change
change
Organizational
Organizational culture
culture
Organizational
Organizational
Comparative
Comparative values
values system
system
Comparative
Comparative attitudes
attitudes
Cross-cultural
Cross-cultural analysis
analysis
Anthropology
Anthropology Organizational
Organizational environment
environment
power
power
Organizational
Organizational culture
culture
Four Contributing Disciplines
Psychology
The science that seeks to measure, explain,
and sometimes change the behavior of
humans and other animals.
Unit of Analysis:
Individual
Contributions to OB:
 Learning, motivation, personality, emotions, perception
 Training, leadership effectiveness, job satisfaction
 Individual decision making, performance appraisal,
attitude measurement
 Employee selection, work design, and work stress
Four Contributing Disciplines
Social Psychology
An area within psychology that blends concepts from
psychology and sociology and that focuses on the
influence of people on one another.
Unit of Analysis:

Group
Contributions to OB:
 Behavioral change
 Attitude change
 Communication

 Group processes
 Group decision making
 Four Contributing Disciplines
• Sociology
The study of people in relation to their fellow human beings.
– Unit of Analysis:
Organizational System
–
–
Group

Contributions to OB:
 Group dynamics
 Formal organization theory
 Work teams
 Organizational technology
 Communication
 Organizational change
 Power
 Organizational culture
 Conflict
 Intergroup behavior

1-48
Four Contributing Disciplines
Anthropology
The study of societies to learn about human beings and
their activities.
Unit of Analysis:
Organizational System
--
--
Group
Group

Contributions to OB: • Comparative values

 Organizational culture
 Organizational environment • Comparative attitudes
• Cross-cultural analysis
 SIGNIFICANCE OF OB

Road map to our lives in organizations

Helps us understand and predict organizational life

Influences events in organizations

Helps understand self and others better

Helps a manager get things done better

Helps maintain cordial relations

Highly useful in the field of marketing

Helps in career planning and development

 Limitations of OB
Knowledge about OB does not help an individual manage personal

life better
Qualities of OB are mysterious

Has become a fad with managers

Is selfish and exploitative

Managers expect quick-fix solutions-not possible

Principles and practices may not work in the events of declining

fortunes
Cannot eliminate totally conflict and frustration
Challenges & Opportunities for
OB
Responding to Globalization

Managing Workforce Diversity

Improving Quality and Productivity

Improving Customer Service

Improving People Skills

Stimulating Innovation and Change

Coping with “Temporariness”

Working in Networked Organizations

Helping Employees Balance Work-Life Conflicts

Creating a Positive Work Environment

Improving Ethical Behavior

1-52
OB Challenges
 Globalization
Refers to the economic, social and cultural
connectivity within people in other parts of the
world.
It is all about the ongoing process of increasing
interdependence with each other around the
planet, whether through trading goods & services,
sharing knowledge or interacting with people
from different cultures & locations in the world.
Challenges and Opportunities for OB

Responding to Globalization
Increased foreign assignments
Working with people from different cultures
Overseeing movement of jobs to countries with low-
cost labor
Managing people during the war on terror

1-55
 Why Globalization?
Access to additional resources (including skilled
workforce)
Low cost
Economies of scale
Favorable regulations & tax systems
Direct access to new and growing markets
Ability to customize products to local tastes &
styles
 Workforce Diversity
Workforce diversity means that organisations are
becoming a more heterogeneous mix of people in
terms of gender , age , race , physical ability etc .
A diversity workforce e.g. may include ,
 Women
 Color of people
 The physically disabled
 Senior citizens etc.
 Workforce Diversity in India
Indian organisations have accommodate a very
diverse social group of employees based on socio-
economic, cultural and linguistic composition.
 Scheduled castes & Scheduled tribes
 Other Backward castes
 Bonafide members of the state
 Ex-defense & paramilitary personnel
 Disabled persons
 Gender issues
 Diversity
Diversity enhances creativity and innovation
(Adler, 1997;Jackson et al., 1992), and
produces competitive advantages(Coleman, 2002;
Jackson et al., 1992).
Diverse teams make it possible to enhance
flexibility (Fleury, 1999) and
Rapid response and adaptation to change (Adler,
1997; Jackson et al., 1992.
The Four Layers of Diversity
Functional Level/
Classification

Geographic Location

Marital Work
Mgmt. Income
Status Content/
Status Age
Field

Parental Personal
Status Race Habits
Personality
Recreational Division/
Appearance Sexual
Habits
Ethnicity Dept./
Union Orientation
Unit/
Affiliation Group
Physical
Work Ability
Religion
Experience
Educational
Background
Work
Location Seniority
 Test Your Knowledge
 Sam is a 55 year-old, male Sales
Manager for XYZ corporation. He likes
to drive fast cars and is Native
American. Which layer of diversity has
not been mentioned about Sam?
A. Personality
B. Internal
C. External
D. Organizational
Challenges and Opportunities for OB
Managing Workforce Diversity

The people in organizations are becoming more

heterogeneous demographically (disability, gender,
age, national origin, non-Christian, race, and
domestic partners)
Embracing diversity
Changing demographics etc.
Primary and Secondary Dimensions of Diversity
 Impact of Diversity
Organizational culture

Calls for diverse approaches to managing people

including training the staff in desired skills

For example, “people with adequate programming skills

are not available in US & UK markets” (HR Head,

Infosys, Economic Times, 2009)
Prominent world level companies
McDonald
Founded in 1967 in Canada

Operating income 50% earned from outside US

operations (2005)
Every three hrs. a new McDonald opens somewhere

on earth
2/3rd of its workforce non-US
Prominent world level companies
Coca-Cola
Operates in more than 200 countries

80% of its workforce are non- US citizens

Has 500 trained personnel to go anywhere in the

world to offer advice and expertise concerning

operational and customer service problems
70% of its operating income comes from operations

out side of US
Prominent world level companies
Nokia
 the cell phone giant from Finland employs over 1000
foreign workers in Finland & over 60% of its 53000
employees are non-fins
Philips
 an electronic giant employs 83% of its workforce
outside of its headquarters in the Netherlands
IBM
 employ almost 80000 people in India (Eco. Times,
April, 2010)
Prominent world level companies
TCS
 an Indian IT giant is planning to increase its non-
Indian workforce to 20000 from present 10000 over the
next 5 years

Infosys & Wipro

could see non-Indians account for 10-15% of their total
employee base in next 3-5 years, from around 5%
presently
(Economic Times, 27th April, 2009)
 Increased Workforce Diversity -
Women
Glass Ceiling
Invisible barrier blocking women and
minorities from top management
positions
Women CEO’s (as of 2/2007):
10 of Fortune 500
23 of Fortune 1000
What helps break the ceiling?
 Increased Workforce Diversity - Race

Racial
minorities are
growing
 2006 – 1,016
race-based
charges of
discrimination
to EEOC
Education and Personal Income
Increased Workforce Diversity - Age
 Benefits from Managing Diversity
Xerox
 plants using diverse work teams are now 30 per cent
more productive than conventional plants.
Procter & Gamble
 achieves 30-40 per cent higher productivity at its 18
diverse team-based plants than at its non-diverse plants.

Motorola
 beat its competition by producing the world’s most
efficient and high-quality cellular phones which are
produced almost exclusively by diverse work teams.

Research has shown that organizations that proactively

recruit, develop, and leverage multinational leaders are in
better positions in the global marketplace.
 Benefits from Managing Diversity
 GE Power Systems achieved 13 per cent productivity gains from
cross-functional and multicultural teams versus homogeneous
teams.
 Numerous empirical studies of work teams demonstrate that when
tasks are complex and not clearly defined, heterogeneous teams
outperform homogeneous teams. ‘Super teams’, those that were
diverse in numerous respects and selected because of their
differences, outperformed those that were homogeneous.
Benefits from Managing Diversity
 ‘Unlike other MNCs, diversity for us is a business imperative and
not an issue of legal compliance. We want HLL’s management to
be representative of our diverse customer base so that they
understand the needs of the customer better. If a manager
understands the brand she is handling, the learning curve is that
much shorter. For instance, in marketing, if the target audience is
women, it is an advantage if a woman is incharge of the brand’.
Says Prem Kawath, HR Manager, HLL.4
 Leaders in Diversity
 Pepsi’s CEO & direct
reports are each assigned
different employee group
(e.g., GLT, Asian, women of
color)
 Responsible for:
 Understanding the issues
these employees face
 Facilitating their growth
and development
 Hold themselves
accountable
 Evolution of Organizational Behaviour

Three significant Eras:

 The Classical Era (1880-1930)

Administrative theory
Scientific Management

 The Behavioural Era (1930-1960)

The Hawthorne Legacy

 The Modern Era (1960 onwards)

Contingency Approach
 A Brief History of OB

 Classical approach to management (scientific

management and administrative management)
 Hawthorne studies (workers respond to attention)

 Human relations movement (treat workers well to

boost productivity)

contd.
 A Brief History of OB
Contd.
 The contingency approach (examine individual
and situational differences before taking action)
 Positive organizational behavior ( focus on
measurable strengths of workers to improve
performance)
 The classical approach
The focus of scientific management was the
application of scientific methods to increase
individual worker’s productivity.

 According to the principles of scientific

management, there is a division of work
between managers and workers.
 The classical approach
TAYLOR’S PRINCIPLES
the development of a true science for each
person’s work
the scientific selection, training and development
of the workers
co-operation with the workers to ensure work is
carried out in the prescribed way
the division of work and responsibility between
management and the workers.
 The classical approach
Administrative management was concerned
primarily with how organizations should be
managed and structured.

 The core of management knowledge lies

within the classical school, including the
framework of planning, organizing, and
controlling.
 The classical approach
Henry Fayol classified all the business activities
into six functions:
Technical activities
Commercial activities
Financial activities
Security activities
Accounting activities
Managerial activities
 The Hawthorne Studies
During the 1920s, attention began to focus on social factors at work,

groups, leadership, the informal organisation and behaviour of

people.
‘Behavioural’ and ‘informal’ are alternative headings sometimes

given to this approach.

Turning point came with the famous Hawthorne experiments at the

Western Electric Company in America (1924-32)

One of the researchers (leader) was ELTON MAYO (1880-1949)
 The Hawthorne Studies
Four Main Phases to the Hawthorne Experiments
The Illumination Experiments - level of

production was influenced by factors other than

changes in physical conditions of work.
The Relay Assembly Test Room - attention and

interest by management reason for higher

productivity.
 The Hawthorne Studies

The Interviewing Programme -20,000 interviews. Gave

impetus to present-day personnel management and use of

counselling interviews. Highlighted the need for
management to listen to workers.
The Bank Wiring Observation Room - Piecework

Incentive Scheme. Group pressures stronger than financial

incentives offered by management
 The Hawthorne Studies
 A major conclusion from these studies was the
workers reacted positively because management
cared about them (the Hawthorne effect).

The Hawthorne effect is the tendency of people to

behave differently when they receive attention
because they respond to the demands of the
situation.
contd.
 The Hawthorne Studies
contd.

 The Hawthorne studies also led to many other

conclusions, such as the fact that effective
communication with workers is critical to
managerial success
 The Human Relations Movement
The human relations movement was based on the
belief that an important link exists among
managerial practices, morale, and productivity.

Key points of the movement are that satisfied

workers are more productive and that, given the
proper working environment, virtually all workers
would be highly productive.
 Contingency Approach
 Writers in the 1950s and 1960s who adopted a more

psychological orientation.

 Major focus was the personal adjustment of the individual

within the work organisation and the effects of group

relationships and leadership styles.

 Main contributors: MASLOW, HERZBERG AND McGREGOR.

 Contingency Approach

MASLOW’S HIERARCHY OF HUMAN NEEDS

General Examples NEEDS Organisational

Examples
Achievement SELF-ACTUALISATION Challenging Job
Status ESTEEM Job Title
Friendship social Friends in the Work
Group
Stability SECURITY Pension Plan
Sustenance PHYSIOLOGICAL Base Salary
 Contingency Approach

HERZBERG isolated two different sets of factors affecting

motivation and satisfaction at work.

1. Hygiene or Maintenance Factors - concerned basically with job

environment. Extrinsic to the work itself.
2. Motivators or Growth Factors - concerned with job content.
Intrinsic to the work itself.

Goal of managers is to achieve a state of no dissatisfaction by

addressing Hygiene Factors. Task of improving motivation is
then by addressing the Motivators.
 Contingency Approach

McGREGOR argued that the style of Management adopted is a

function of the manager’s attitudes towards human nature and
behaviour at work.

He put forward two suppositions called Theory X and Theory Y

which are based on popular assumptions about work and
people.
 Contingency Approach

THEORY X ASSUMPTIONS

 People do not like work and try to avoid it.

 People do not like work, so managers have to control, direct,

compel, and threaten employees to get them to work toward

organisational goals.
 People prefer to be directed, to avoid responsibility, to want

security, and have little ambition.

 Contingency Approach
THEORY Y ASSUMPTIONS
 People do not naturally dislike work; work is a natural part of their
lives.
 People are internally motivated to reach goals to which they are
committed.
 People are committed to goals to the degree that they receive personal
rewards when they reach their objectives.
 People will seek and accept responsibility under favourable
conditions.
 People have the capacity to be innovative in solving organisational
problems.
 People are bright, but generally their potentials are under-utilised.
 Contingency Approach
A cornerstone of the human relations movement is
Theory X and Theory Y of Douglas McGregor.

Theory X is the somewhat stern and pessimistic

traditional assumptions about worker capabilities.

Theory Y is an alternative, and optimistic, set of

assumptions
 The Contingency Approach
The contingency approach to management
emphasizes there is no one best way to manage
people or work.

The contingency approach is derived from the

study of leadership styles.

The strength of the contingency approach is that it

encourages managers and professionals to
examine individual and situational differences
before deciding on a course of action.
 Milestones in the History of Organization Behaviour
Industrial Revolution Robert Owen, Andrew Ure and J.N. Tata
provided certain welfare facilities. The ideas
degenerated into paternalistic approach.

Taylor believed in rationalizing production. He

Scientific Management– believed Early 20th Century that human
behaviour was based on ‘rabble hypothesis.’

Human Relations Movement Great Depression, labour movement and

during 1920s to 1940s Hawthorne led to the
movement. The movement subsequently
became a fad Organisational behaviour – 1950’s

The contingency approach is that it encourages

Contingency Approach managers and professionals to examine
individual and situational differences before
deciding on a course of action-1960 onwards.