Friday, 26 February 2021

Organizational Behaviour Theories (Management-1 26Feb 2021)

Organizational Behaviour Theories

Important Organizational Behaviour Theories of management are discussed below:

1. Bureaucracy Theory

2. Scientific Theory

3. Process Management Theory

 

1. Bureaucracy Theory

Max Weber (1864-1920) a German sociologist introduced the theory of Bureaucracy. His major contribution to the theory is the concept of authority, structure and it inter relationship.

Weber in his model of bureaucracy stated that there are three types of authority in any organization.

· Legal authority indicating that a person holds authority based on legal position or rank within the hierarchy.

· Traditional authority: employees obey a person because he comes from a traditionally recognized power holding family or a person belonging to a royal family.

· Charismatic authority: which indicates special power or an appeal that a leader possesses.

 

2. Scientific Management Theory

Scientific management approach was developed by F.W. Taylor at the beginning of the 20th century.

· This theory supported the use of certain steps in scientifically studying each element of a job, selecting and training the best workers for the job.

· It provided a scientific rationale for job specialization and mass production. His assumption was that employees are motivated largely by money.

· Taylor recommended co-operation among workers as against chaotic individualism.

 

3. Process / Administrative Management Theory

Administrative management theory was developed by Henri Fayol in the early 1900s and is considered to be highly relevant even today. Fayol created fourteen principles which he believed outlined the basis for strong and successful companies. It is important to know that Fayol agreed with many of Taylor’s ideas and ideologies, however, the main difference is that Taylor focused on the process of completing the work most effectively, and Fayol focuses on the organizational structure of a company as a whole.

Some of Fayol’s principles included a clear division of labour, ensuring each employee had only one direct manager to report to, and a healthy manager-employee relationship. Another important part of Fayol’s administrative management theory is the idea that everyone in a company should be aligned by organizational goals. Fayol believed that organizational structure was vital to the success and productivity of a company.


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