“In a
few hundred years, when the history of our time will be written from a
long-term perspective, it is likely that the most important event historians
will see is not technology, not the Internet, not e-commerce. It is an
unprecedented change in the human condition. For the first time - literally -
substantial and rapidly growing numbers of people have choices. For the first
time, they will have to manage themselves. And society is totally unprepared
for it.” --Peter F. Drucker
A prelude to organizational behavior study
Traditional management education focuses on competency such
as accounting, finance, marketing, operations and information technology
related areas. However, with the growth and expansion of organizational needs,
it has become essential to understand the process of management to be successful in the
competitive global market place. Within this process view of management now the
attention is given to the roles, behaviors, and skills that are necessary for
effective managerial performance. Some of these behavioral ‘soft’ skills are
communicating with peers, subordinates, and bosses; obtaining and sharing
information; running meetings; allocating resources to different groups; and
handling conflict within or between teams,
The understanding of management processes, often referred
to as organizational behavior (OB) extends managerial education
to the study of people, groups, and their interactions in organizations.
Changing business environment demands broader skill sets that helps in problem
solving, decision-making, and handling communication and interpersonal
relationships.
Historical background of organizational development
Essence of leadership was first recorded by the Greek
philosopher Plato. Aristotle introduced persuasive communication in leadership.
Niccolò Machiavelli in 16th century laid the foundation for
organizational power and politics. Adam Smith in 1776 brought in organizational
structure based-on division
of labor. In late 18th century,
German sociologist Max Weber introduced the idea of rational organizations.
Weber also initiated discussion of charismatic leadership. Soon after,
systematic goal setting, and reward was introduced by Frederick Winslow Taylor.
Elton Mayo and his colleagues in 1920’s have done productivity studies in
Hawthorne laboratory.
Schools of historical thought on organizational theory
Studies show systematic transformation of the orientation
from machine into human potential. In general, while examining the history of
organizational behavior, a marked shift from scientific management era to more
human behavior approach in organizations is evident. The basic assumptions
underlying human behavior were now perceived to be oriented to personal growth,
accomplishment, and inner development. If managers were to become truly
effective, it was argued, they must go beyond simply providing fair pay and
treatment and attempt to make organizational members feel important.
Understanding an organization
An organization is a tool used by people to coordinate
actions to obtain something desire or value—that is, to achieve their goals.
The production of goods and services most often takes place in an
organizational setting because people working together to produce goods and
services usually can create more value than people working separately.
Organizations exist because of their ability to create value and acceptable
outcomes for various groups of stakeholders, people who have an interest,
claim, or stake in the organization, in what it does, and in how well it
performs. Most people have a casual attitude toward organizations because
organizations are intangible. Today, many organizations being founded, and
particularly those experiencing the fastest growth, are producing goods and
services related in some way to new information technology. The increasing use
of computers and new information technologies such as the Internet are
revolutionizing the way all organizations operate.
Organizational theory is the study of how organizations
function and how they affect and are affected by the environment in which they
operate. For any organization, an appropriate structure to facilitates
effective responses to problems of coordination and motivation—problems that
can arise for any number of environmental, technological, or human reasons that
need to be addressed. As organizations grow and differentiate, the structure
likewise evolves. Organizational structure and culture are the means the
organization uses to achieve its goals; organizational design is about how and
why various means are chosen. Further, organizational structure can be managed
through the process of organizational design and change.
Global Dimensions of Organizational Behavior
In the globalization age corporate success is increasingly
linked to worldwide operations and a global staff. Top executive teams have
learned first-hand one of the foremost lessons of doing business in
international markets to understand the local culture. All around the globe,
people working in large and small businesses alike are facing the many
challenges and opportunities associated with business competition in an
increasingly complex and “borderless” world. The ability to respect
differences and value diversity is an important key to success in managing
organizational behavior across cultures.
Summary and conclusions
Today’s organizations need managers with global awareness
and cultural sensitivity. This does not mean that they all must work in foreign
lands. But it does mean that they must be aware of how international events may
affect the well-being of organizations. They must know how to deal with people
from other countries and cultures. Especially for those who cross cultural and
national boundaries, understanding these differences is critical for success
working in an interconnected world.
Today, managers must be inquisitive and willing to learn
quickly from management practices around the globe. Insights into effective
management and high performance organizations are not restricted to any one
location or culture. Contributions to our understanding about people and
organizations can be found from Africa to Asia and from Europe to North and
South America. Finally, in the interest of effective and efficient
organizational performance, managers should create jobs and organizational
structures that allowed people an opportunity to develop their abilities and to
experience personal growth.
Regards,
Saju Skaria
SajuSkaria@gmail.com
www.SajuSkaria.com
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