Define Organizational Behaviour & Evolution (14 Marks)

A. Definition of Organizational Behaviour (OB) - 5 Marks

Fred Luthans: OB is understanding, predicting and controlling human behaviour in organizations.
Stephen P. Robbins: Field of study that investigates impact of individuals, groups, and structure on behaviour within organizations to improve effectiveness.
Keith Davis: Study and application of knowledge about how people act within organization.

Key Features:

• Interdisciplinary (Psychology, Sociology, Anthropology, Economics, Political Science)
• Behavioural science - not pure science but applied
• Studies at 3 levels: Individual (learning, personality, motivation, perception), Group (teams, communication, leadership, conflict, power), Organisational System (structure, culture, change)
• Goals: Describe, Understand, Predict, Control behaviour
• Oriented to human benefit & organizational effectiveness.

Nature: Art + Science, value-laden, contingency approach.

B. Evolution of OB - 9 Marks

OB evolved through distinct phases feeding its theory:

1. Classical Era (Pre-1930s):

• Scientific Management (F.W. Taylor, 1911): Emphasis on efficiency, one best way, time-motion study, piece-rate. Viewed man as economic/rational.
• Administrative Theory (Henri Fayol, 1916): 14 principles, POCCC management functions. Focus on structure/formal organization.
• Bureaucracy (Max Weber): Ideal rational-legal organization - hierarchy, rules, impersonality.
• Limitation: Neglected human/social aspect.

2. Neoclassical / Human Relations Era (1930s-1950s):

• Hawthorne Studies (Elton Mayo, Roethlisberger, 1927-32 at Western Electric): Discovered importance of social factors, informal groups, attention (Hawthorne effect) over physical conditions. Birth of Human Relations Movement.
• Contributions of Follett, Barnard (Functions of Executive).
• Emphasis on employee morale, groups, supervisory behaviour.

3. Behavioural Science Era (1950s-1970s):

• Rigorous research with psychology/sociology.
• Key contributors:
  • Maslow (Hierarchy of Needs), Herzberg (Motivation-Hygiene), McGregor (Theory X/Y), Likert (Management systems), Argyris, McClelland.
  • Group dynamics (Lewin), decision-making (Herbert Simon)
• Systematic theory building using research.

4. Modern OB / Contemporary Phase (1970s - Present):

• Systems Approach: Org as open system interacting with environment.
• Contingency Approach: No one best way; behaviour depends on situation.
• Integration: Inclusion of OB topics → Motivation, Leadership, Personality, Perception, Attitudes, Culture, Politics, Conflict, Change, Stress.
• Recent Trends: Positive Organizational Behaviour (Luthans), Emotional Intelligence, Globalisation, Diversity, Ethics, IT/AI & Virtual Teams, Knowledge Management, Work-life balance, Evidence-based management.

Summary Table: 1900 Classical → 1930 Human Relations → 1950 Behavioural Science → 1980+ Modern OB.

Conclusion: OB evolved from mechanistic efficiency focus to human-centred, system-contingency view integrating multidisciplinary knowledge to manage complex human side of modern organizations.