Copyright 1999 by Brent Smith, Ph.D. Micro-Organizational Behavior: History (cont.) and the Changing Nature of Work

Copyright 1999 by Brent Smith, Ph.D. In Review OB is the science of human behavior in organizationsOB is the science of human behavior in organizations OB is a hybrid scienceOB is a hybrid science Frederick Taylor—Scientific ManagementFrederick Taylor—Scientific Management Henri Fayol—Administrative theoryHenri Fayol—Administrative theory Max Weber—Organizational Structure and BureaucracyMax Weber—Organizational Structure and Bureaucracy

Copyright 1999 by Brent Smith, Ph.D. The Hawthorne Studies Elton Mayo hired to explain the results of a study of illumination on productivity and Western ElectricElton Mayo hired to explain the results of a study of illumination on productivity and Western Electric Conducted two additional studiesConducted two additional studies –Relay Room –Bank Wiring Room

Copyright 1999 by Brent Smith, Ph.D In general, productivity increased with each change in work conditions Standard work conditions Two 5-min. rests Two 10-min. rests Six 5-min. rests 15-min. rests + lunch Same + 4:30 p.m. stop Same + 4 p.m. stop 15-min. rests + lunch Same + Sat. a.m. off Standard 15-min. rests + lunch Percentage of Standard Output

Copyright 1999 by Brent Smith, Ph.D. Bank Wiring Room Introduced incentive pay system.Introduced incentive pay system. Expected individual worker output to increase.Expected individual worker output to increase. Found no change in worker output.Found no change in worker output. Workers established informal norms because they feared the company would increase their quota.Workers established informal norms because they feared the company would increase their quota.

Copyright 1999 by Brent Smith, Ph.D. Impact of the Hawthorne Studies Elton Mayo is considered the father of the Human Relations movementElton Mayo is considered the father of the Human Relations movement Human Relations recognizes that there are other factors beyond rational economics that drive individual behavior.Human Relations recognizes that there are other factors beyond rational economics that drive individual behavior. Productivity and satisfaction are inextricably linked—You cannot forget the human side of the equationProductivity and satisfaction are inextricably linked—You cannot forget the human side of the equation

Copyright 1999 by Brent Smith, Ph.D. 4 Distrusting Basically Lazy Low (disinterested) Work when pushed Accepting, promotes betterment Need to achieve and be responsible High (very interested) Work when appropriately trained and recognized Theory X (traditional approach) Theory Y (modern approach) Orientation toward people Assumptions about people Interest in working Conditions under which people will work hard Theory X versus Theory Y: Douglas MacGregor (1960)

Copyright 1999 by Brent Smith, Ph.D. Human Nature The shift from scientific management to human relations mirrored a similar shift in Philosophy and Psychology.The shift from scientific management to human relations mirrored a similar shift in Philosophy and Psychology. In Psychology, the dominant view moved from behaviorism to humanism.In Psychology, the dominant view moved from behaviorism to humanism. Those who advanced the human relations movement were primarily psychologists in the humanistic tradition.Those who advanced the human relations movement were primarily psychologists in the humanistic tradition.

Copyright 1999 by Brent Smith, Ph.D. What has changed? The traditional bureaucratic model is dying a slow death.The traditional bureaucratic model is dying a slow death. Our economy is now dominated by the “service sector”.Our economy is now dominated by the “service sector”. No one believes they have a “job for life”.No one believes they have a “job for life”. New focus on quality.New focus on quality. New focus on social responsibility.New focus on social responsibility.

Copyright 1999 by Brent Smith, Ph.D. The Changing Nature of Work Workforce DemographyWorkforce Demography –Gender –Age –Race (50% of CA’s population in 2005 will be people of color speaking 80 different languages) –Culture Problem: How do you manage such diversity?Problem: How do you manage such diversity?

Copyright 1999 by Brent Smith, Ph.D. 7 Women in the Workplace: Their Numbers are Rising estimate Percentage Year Percentage of women working outside the home Percentage of women in the workforce relative to men (33.9) (29.6) (37.7) (43.3) (51.5) (57.5) (63.0) (33.4) (38.1) (42.5) (45.3) (47.4) Both statistics have been rising steadily

Copyright 1999 by Brent Smith, Ph.D. 8 Minorities in the Workplace: Their Numbers are Rising White, non-Hispanic African American, non-Hispanic Hispanic Asian and other non-Hispanic estimate The relative percentage of whites in the U.S. population, although highest, is dropping. The relative percentage of minority groups in the U.S. population is on the rise. (78.5) (73.0) (10.7) (11.6) (7.7) (11.1) (3.1) (4.3) Percentage of Total Population Year

Copyright 1999 by Brent Smith, Ph.D. The Changing Nature of Work GlobalizationGlobalization –Our national economy is now coupled with the global economy. –International trade accounts for 20% of all U.S. Jobs. –There are 35,000 MNC—the largets 300 account for ¼ of the worlds productive assets Problem: How do you address cultural differences?Problem: How do you address cultural differences?

Copyright 1999 by Brent Smith, Ph.D. The Changing Nature of Work New Working ArrangementsNew Working Arrangements –Flextime –Compressed Workweeks –Job Sharing –V-time –Telecommuting (Currently 25 million) Problem: What happens to commitment?Problem: What happens to commitment?

Copyright 1999 by Brent Smith, Ph.D. The Changing Nature of Work New Organizational FormsNew Organizational Forms –Virtual Organizations –Adhocracies –The Contingent Workforce –Outsourcing What happens to organizational identity?What happens to organizational identity?

Copyright 1999 by Brent Smith, Ph.D. 9 Contingent Workers: What Kinds of Jobs Do They Do? Percentage of Companies Using Contingent Workers ClericalProfessional/TechnicalProductionServiceManagerial (75%) (36%) (34%) (30%) (1%) The greatest percentage of people in the contingent workforce perform clerical jobs. About one-third of the people in the contingent workforce perform professional/technical, production, and service jobs. Very few people in the contingent workforce perform managerial jobs. Job Category