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(Brooks 2009), “Organizational behavior is the study of human behavior in organizational contexts, with a focus on individual and group processes and actions. Hence, it involves an exploration of organizational and managerial processes in the dynamic context of the organization and it’s primarily concerned with the human implications of such activity”
In other words we can say that organizational behavior is the study of the behavior of staff with in a firm, understanding of individual and groups and patterns of structure in which they work to improve performances.
There are three main disciplines of an organization behavior which have made an important contribution to the field of organization and which helps us to understand the four main approaches of organization. Disciplines are as follows;
Psychology is concerned with the human behavior individually or in a small group. The main focus of psychology is on the personality, attitudes, and motives of an individual in an organization.
Sociology is concerned with the study of social behavior, relationships found between social groups and societies. The main emphasis of sociology is on social structure and positions of those structures.
Anthropology is concerned with the study of cultural system, beliefs, customs, ideas and human behavior of a group or a society. The Comparisons of different culture in an organization their affects on each other.
There are four approaches from which we can understand the study of organization.
Classical approach is about laws or principles which represent the single best way to manage and organize work. Company gives importance to the planning of work, principles of management, technical requirements which they need and assumption of logical behavior. According to this approach it is essential for an organization to understand how it works and by which method its working can be improved. This idea is arises from (Brooks lan 2009) “Armed forces which had organized large number of personnel, often in dynamic and difficult situations. Even today considerable military language infiltrates common organizational discourse for example groups of employers are often referred to as ‘the troops’ and bureaucratic organization have ‘lines of command'”. We can also understand the classical approach by discussing its major two groups.
Scientific management is about the improvement of management to increase the productivity from individual worker. In an organization productivity can be increased by using technical structures of work, one of them would be increased in incentives for the worker to get high level of output. We can use a best machine for each work to get more products in less time from each worker. Profits can be increased by using best machine method because each person then gives more productivity by using machines. We can take a example from, Tyalor’s(1856-1917) “work at the Bethlehem steel works in the USA, involving the effects the efforts of a pig iron handler called Schmidt(an alias), is discussed in most organizational behavior and theory texts. Taylor sought to alter fundamentally the way in which a simple task, the movement of iron, was conducted. As a result of his detailed time and motion observations and measurements, productivity in the process was raised four times that is by 400 percent. In other words only one quarter of the workers would be required to move the same quantity of iron; alternatively the company could move four times the quantity of iron using the same number of workers”.
Criticisms: By using scientific method we can get much production by each worker but not watching the feelings and social needs of workers this method is uses the worker as a machine.
Bureaucracy (Mullins.J Laurie, 2008) “Bureaucracy is a form of structure found in many large scale organizations. Bureaucracy is based on specialization of tasks, hierarchy of authority and decision making, systems of rules and regulation and an impersonal orientation from officials”. Workers in an organization must know their duties. In bureaucracy workers are not allowed to interfere in their co-partner’s work and therefore workers have no feelings for each other. Different tasks are divided to the staff according to their jobs position and there is a division between labor and specialized personnel. In bureaucratic organization decision and actions are made by simple system established by the authorities in the higher levels of hierarchy which helps employees to work according to the rules.
Criticisms: But now a day’s new generation is against of bureaucracy because they think that organization should give some relaxation to the workers and give them chance to give suggestions and provide flexibility in their work.
Human relation approach: This gives attention on the people aspects of work, the social conditions under which it was undertaken and the group ideas involved. It paid not enough attention to the organizational aspects relevant to the work or the job design and environmental situations surroundings the work. It also ignored the technological and economic issues surroundings work and organizational functioning. The main focus was given to basic requirement and motivation of employees,
System approach is about the working system in an organization how much and how it works, interrelationships of staff with structure and behavior, and the different changes takes place in an organization. The system approach views the organization from all the sides of its working and gives deep look towards the connections and relations with other organizations working system. This approach studied about the changes in organization through technically and socially because if there would be any change in technical or social it will make affects on whole of the company. So system approach looks whole of the company as a part of environment. System arises from the management and people in an organization, systems such as technological and structural and targets; they all are connected to each other.
Contingency approach is concern with the importance of structure as a strong impact on an organizational performance. The contingency highlights all possible means of differentiating between other related forms of organization. The success of company is dependent on the nature of their tasks which are designed to deal. According to the contingency approach the nature of the organization’s environment, its size, its technology, the character of its markets, its legal character, its personal and other factors not only faces the organizations with problems but also offer opportunities. Contingency arises from the recognition that environment of organizations constantly changes. Managers of an organization must know and adapt the changes occurring both inside and outside of organizations. This approach enables managers to diagnose each situation so that they can manage it effectively.
An organization can be analyzing the environment by using the two frame work PESTLE and SWOT.
PESTLE analysis is design for business organizations. This analysis is about the external environment for business. It includes factors which can effects the profits or which can make troubles, how to become aware of them, what should be plan to meet external hurdles. In short words we can say to scan the external environment for the business. If we evaluate the pestles we come to know,
Political process, how they affect and interferes the organization, factors are tax policies, working hours, trade restriction, and new laws.
Economic process, change in economic growth, interest rates, foreign exchange rates and inflation rates are the factors which can affects the organization operation.
Social process which includes population growth, career opportunities, cultural aspects and these factors can affects the supply and demand of an organization.
Technological process involves change in technology and changes in production of an organization. Factors include barrier to entry, new invention lead to change in cost, quantity and profits.
Environmental process includes, weather, climate, organization which are involves in farming, and tourism can be affect from these aspects.
Legal aspects which includes change in laws and legislation. This may affects the employment, taxation and import, export.
SWOT analysis emphasis on focusing on strengths, weakness, opportunities and threats facing by an organization. SWOT analysis shows in detail on internal and external factors of a company which are in favour or against of the projects. SWOT analysis is mostly used to make profit plan for business. If we evaluate the SWOT analysis it states as;
Strength tells advantages or benefits of a business as compare to others.
Weakness tells about the disadvantages of a business as compare to other business.
Opportunity states chances or ways to make more profits for business.
Threats shows about external facts give stress to someone to act upon which makes troubles.
Purposes of using these both frame work would be as;
Pestle analysis is use to understand the environment of the business in which it is being operated. We can find out threatens and others issues to solve them and SWOT analysis is not only use for profit earning companies bit it also be use for the right decision making for company. It is use for making future plans for the crises time period.
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