Introduction to Organizational Behavior

Chapter Summary

People differ from each other in their needs and values. Group effort eases their task of achieving organizational goals effectively. Human relations can be defined as motivating people in organizations to work as a team. Although human relationships have existed from quite some time in the past, the study of human relations has developed only recently. Social sciences like sociology, psychology, anthropology, economics and political science have contributed to the development of OB and human relations.

Human relations and OB play a significant role in the development of the skills of employees and the improvement of organizational performance. Various studies and theories in the field of organizational behavior have given new insights into the behavior of people at work. The most important studies are the Hawthorne studies, Theory X and Theory Y, and Theory Z.

The Hawthorne Studies, conducted by Elton Mayo at the Western Electric Company, was the first systematic study that recognized the significance of informal groups in the workplace and its impact on productivity. The conclusion drawn from these studies was that it was security and recognition, not just good physical working conditions that bring a drastic improvement in productivity. Moreover, informal groups operating within the work settings exert strong control over work habits of individual workers.

Douglas McGregor formulated two theories called Theory X and Theory Y. In these theories, he has made two contrasting sets of assumptions about individuals at work - negative and positive. Theory X assumes that people are lazy and have an inherent dislike for work, so they have to be forced to work in order to get the desired results. On the contrary, Theory Y believes that work comes naturally to people and they would be more dedicated if they understood and believed in the goals of the organization. William Ouchi proposed Theory Z as an integrative model of organizational behavior. This theory blends the positive aspects of Japanese and American styles of management and stresses on building a close and trusting work environment.

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