Evolution of Organizational Behaviour (OB)

OB has evolved over a century from classical theories focusing on structure to modern focus on human behaviour. Its evolution can be traced in 6 major stages:

1. Classical Era (1900-1930) – Scientific Management and Bureaucracy

• F.W. Taylor – Scientific Management (1911): Time and motion study, standardization, differential piece-rate, scientific selection and training. Viewed worker as economic man, focused on efficiency but ignored human/social aspects.
• Henry Fayol – Administrative Theory (1916): 14 principles of management (division of work, unity of command, scalar chain), 5 functions (Planning, Organizing, Commanding, Coordinating, Controlling).
• Max Weber – Bureaucracy (1920s): Ideal rational organization based on hierarchy, rules, impersonality, division of labour. Provided structural framework.

Limitation: Mechanistic, ignored informal organization and psychology.

2. Neo-Classical / Human Relations Era (1930-1960)

• Hawthorne Studies – Elton Mayo (1927-32) at Western Electric: Illumination experiments, relay assembly, bank wiring tests. Discovery of Hawthorne Effect – productivity not just due to physical conditions but social factors, informal groups, attention, and feeling of importance.
• Human Relations Movement: Mayo, Roethlisberger, Dickson emphasized social man, informal organization, morale and leadership over formal structure.
• Contributions of Follett, Barnard: Mary Parker Follett stressed integration and group power; Chester Barnard viewed organization as cooperative social system.

3. Behavioural Science Era (1950-1970)

Interdisciplinary application of Psychology, Sociology, Psychology refined human relations:

• Maslow – Need Hierarchy (1954), McGregor – Theory X & Y (1960), Herzberg – Two-Factor Theory (1959), Vroom – Expectancy Theory, McClelland – Achievement Motivation.
• Focus on motivation, leadership styles, group dynamics, communication, decision making, job satisfaction.
• Studies by Likert (System 4), Argyris (Maturity-Immaturity), Blake & Mouton (Managerial Grid).

4. Modern Organizational Theory / Systems and Contingency Approach (1960-1980)

• Systems Approach: Katz & Kahn viewed organization as open system interacting with environment (inputs-throughputs-outputs-feedback).
• Contingency Approach: No one best way; structure and behaviour depend on situational factors like environment, technology, size (Lawrence & Lorsch, Woodward).
• Decision Theory: Herbert Simon – bounded rationality and satisficing.

5. Organizational Development and Culture Period (1980-2000)

• Focus on Organizational Development (OD): Planned change interventions – sensitivity training, survey feedback, team building.
• Organizational Culture: Peters & Waterman (In Search of Excellence), Deal & Kennedy emphasized strong culture for success.
• Total Quality Management (TQM), Reengineering, Learning Organization (Peter Senge).

6. Contemporary Period (2000 Onwards)

• Positive OB: Luthans – focus on strengths, optimism, resilience.
• Contemporary challenges: Globalization, workforce diversity, virtual teams, AI/automation, emotional intelligence, work-life balance, knowledge management, ethical behaviour, CSR.
• OB now is evidence-based, contingency-oriented, and focuses on Individual (personality, perception), Group (teams, conflict) and Organization (culture, change) levels.

Trend of Evolution:
Economic Man → Social Man → Self-Actualizing Man → Complex Man

Conclusion: Evolution shows shift from task-centered to people-centered to system-centered approach. OB today integrates classic structure with human insight and systems thinking to manage modern dynamic organizations.