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Ob Disciplines, Approaches and Analysis

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Module 1-Lesson 3- OB DISCIPLINES, APPROACHES AND ANALYSIS

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:
1. 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.
2. 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.
3. 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
effects on each other.
There are four approaches from which we can understand the study of organization.
a. 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. We can also understand the classical approach by
discussing its major two groups.

b. 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.

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 uses the worker as a machine.

c. 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.

d. 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 surrounding 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.

e. 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.

f. 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
PESTLE analysis is design for business organizations. This analysis is about the external environment for
business. It includes factors which can affect the profits or which can make troubles, how to become
aware of them, what should be the 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
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
favor 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 but it can also be used for the right decision making for company. It is use for
making future plans for the crises time period.

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