Modern organizational behavior has become complex. It synthesizes the classical and neoclassical theories of organization, while incorporating technological development. Modern organization theories are classified into quantitative theory, system theory and contingency theory.
1. Quantitative Theory
The quantitative theory includes operation research and quantification of the problem. It analyses the problems from quantifiable angles and provides solutions to complex problems only with the help of statistical and mathematical models such as linear and non-linear programming, game theory, decision tree, simulation and probability. Computers are used to solve management problems whereas mathematical models were previously used for the purpose. A large number of problems are solved with the use of simulation equations and computers. The development of equations requires specialized skills and advance knowledge of mathematics, statistics, economics and behavioral sciences. Models are tested while the context of the real world and use of operation research. Operation research is conducted by diverse specialists and management experts. It is useful from the levels of planning for organizing, actuating and control.… Read More »
The classical organization theories concentrated on discipline and the economic well-being of people. They ignored their morale and desires. Neoclassical organization theories while accepting the merits of classical theories have given more importance to human relations and behavioral sciences. The neoclassical organization theories modified, added and extended the classical theories by realizing the fact that management exists in a social system wherein human factors have cognizant roles to perform. Employees can play crucial roles in the decision-making process. Human Relations and Behavioral Science have become two important approaches of neoclassical theories.
1. Human Relations Theory
The human relations theory was developed by Elton Mayo and his associates from 1924 to 1932 at the Hawthrone plant of Western Electric Company. They experimented in four phases: Illumination experiment, relay assembly test, interviewing programs and the bank wiring observations room experiments.
Illumination experiments revealed that light had no significant impact on the productivity of workers. The intensity of light did not influence the productivity of telephone relays. The relay assembly test provided several facilities to telephone relay assemblers wherein it was observed the special attention and treatment caused employees to increase their productivity. It was termed as the Hawthorne effect, where people feel the pride of belonging to a group. The interviewing program was tested on human relations rather that on favorable physical conditions. It revealed that employees are unwilling to answer direct questions. They gave important clues towards the management style when asked indirectly. The bank wiring room experiment gave sufficient freedom to an informal group. It revealed that employees were not only economic beings but social and psychological beings as well. Their productivity is influenced by sentiments, beliefs and the group behavior of employees. The Hawthrone experiments brought about the conclusions that the business organization also includes social and psychological factors. It considered organization as a social process where feelings, sentiments and attitudes were given due importance. Mayo and Roethlisberger of Harvard Business School postulated that efficiency and productivity could increase if the attitudes of employees were well regarded.… Read More »
Classical organization theories are based on traditional thinking. These theories were first propounded in the beginning of 19th century and incorporated original and initial ideas of management. The classical theories of organization were devoted mainly to the superior’s authority, objectives, rules and economic activities. The classical organization theories are broadly divided into Bureaucracy, Scientific management and Process management.
The bureaucratic model developed because some people wanted to dominate others in business and other activities. They organized men and materials for achieving objectives for their personal benefits. This theory was given a formal shape by a German Sociologist, Max Weber, who believed that bureaucracy was an ideal weapon to harness human and physical resources. It is a formative model of organization characterized by a large and complex atmosphere with impersonal detachment from human resources. Rules, regulations, rigid hierarchy and specialized functions are important feature of bureaucracy. It is the epitome of structural relationship to control.
Features – The hierarchy of authority involving the superior-subordinate relationship is the main feature of bureaucracy. The superior has more authority to control the subordinate. There is a chain of superior-subordinate relations. There is a clear-cut division of work upon which the structural organization is based, for getting the benefits of specialization and functionalization. Rules, regulations and procedure are considered to be important functional guidelines for management. The importance of routine, objectivity, uniformity and consistency are stressed under bureaucracy. Behavior is controlled by rules and regulations. The discipline is judged from the extent of following of rules and regulations. Impersonal attachment is always observed in this type of organization.… Read More »
Each person tends to develop certain motivational drives as a result of his cognitive pattern and the environment in which he lives. David McClelland gave a model of motivation, which is based on three types of needs, namely, achievement, power and affiliation. They are stated below:
(i) Need for achievement (n-Ach): a drive to excel, advance and grow;
(ii) Need for power (n-Pow): a drive to influence others and situations; and
(iii) Need for affiliation (n-Aff): a drive for friendly and close interpersonal relationships.
Achievement motivation: some people have a compelling drive to succed and they strive for personal achievement rather than the rewards of success that accompany it. They have a desire to do something better or more efficiently than it has been done before. This drive is the achievement need. From researches into the area of achievement need, McClelland found that high achievers differentiate themselves from others by their desire to do things better. They seek situations where they can attain personal responsibility for finding solutions to problems, where they can receive rapid feedback on their performance so they can set moderately challenging goals.… Read More »
Serious doubts have been expressed about the existence of the five distinct need categories, which Maslow hypothesized. There seems to be some overlapping between esteem, social, and physiological needs. Also, the lines between esteem, social, and self-actualization needs are not entirely clear. With these points in mind, Clayton Alderfer condensed Maslow’s five need categories into three sets:
(i) Existence need: these include all forms of material and physiological and safety needs. i.e., Maslow’s first two level needs.
(ii) Relatedness need: this includes all needs that involve relationships with other people we care about. Thus, the opposite of satisfaction or relatedness needs is emotional distance rather than hatred. Relatedness needs cover Maslow’s social needs and that of esteem needs which are derived from other people.
(iii) Growth need: these needs involve persons making creative efforts to achieve full potential in the existing environment. It is like Maslow’s last level need of self-actualization.
Alderfer also revised Maslow’s theory in three other ways:
(a) He argued that the three need categories form a hierarchy only in the sense of decreasing concreteness.… Read More »
Attacking Herzberg’s two-factor theory, Vroom offered an expectancy approach to the understanding of motivation. According to him, a person’s motivation towards an action at any time would be determined by an individual’s perception that a certain type of action would lead to a specific outcome and his personal preference for this outcome.
There are three variables of Vroom’s model given in the form of an equation. Since the mode is multiplicative, all the three variables must have high positive values to imply motivated performance choices. If any of the variables approaches zero, the probability of motivated performance approaches zero.
Motivation = Valence*Expectancy*instrumentality
Valence is the strength of an individual’s preference for a reward, expectancy is the probability that particular action will lead to a desired reward and instrumentality denotes an individual’s estimate that performance will result in achieving the reward. Thus, if an individual has a particular goal, some behaviour must be produced in order to achieve that goal. He will weigh the likelihood that various behaviors will achieve the desired goals and if certain behaviour is expected to be more successful than others, that particular behaviour will be preferred by the individual.… Read More »