Function of Organisation Theory Organisation Behaviour Notes

Function of Organisation Theory Organisation Behaviour Notes

Function of Organisation Theory Organisation Behaviour Notes :-All BBA 2nd semester students’s we are provide the study material and r of BBA . and in this article you can find few year notes. BBA Organisation Behavior notes 2020 today our team presented BBA Organisation Behavior previous year question paper for you practise. and special links related to the BBA Organisation Behavior and all subject question paper and study material. we provided mock paper, question paper, simple paper, unsold paper last five year question paper.

Foundations of Organizational Theory


“Management is the science of which organizations are put on experiments.”

Everyone belongs to organizations, but what do we really know about them? Not the social kind, where people simply get together to do whatever comes to mind, but the enduring kind where people deliberately try to get organized to accomplish something. Clearly there is much that is different about these kinds of organizations. We know that such organizations traditionally form along lines of a pyramid shaped hierarchy based on a military model. We also know that in order to be “formal”, an organization must have a mission statement, goals, objectives, tasks, as well as a roster of personnel or members. We further know that in order to be “rational”, an organization will be able to depict their membership in some kind of chart and there will be principles or rules such as a chain of command, unity of command, span of control, and channels of communication. What we don’t know is why and how informal organizations develop inside of formal organization. An informal organization almost always develops an can either help or hinder mission accomplishment there is further the problem of size. As organizations become larger, the units within them tend to become more specialized. Specialization can enhance effectiveness and efficiency, but overspecialization can seriously impede the mission. Specialization requires a high degree of coordination, and coordination is critical for any organization, larger or small, specialized or not. By design, most organizations have the following components:

Function of Organisation Theory Organisation Behaviour Notes








Function of Organisation Theory Organisation Behaviour Notes

The mission is the organization’s reason for existence, and it’s the component held up to the outside world or external environment which makes the organization relevant to social order or societal progress.

Goals are those general purpose or functional divisions of the organization which are specific enough to enable stakeholders (people economically impacted) and clientele (people served) to relate to the organization.

Objectives are specific, measurable outcomes related to goals, such as a 30% improvement or reduction in something, and they are usually time-specific, but more importantly are designed to be what employees can relate to.

Behaviour refers to the ordinary task productivity of employees. Accountability of behaviour to objectives is a personnel function, and of behaviour to goals in most organizational designs. Organizations can accomplish amazing wonders when, by design, they concentrate on a limited number of functions in a systematic way to achieve coherent goals and objectives.

Study of organizational behaviour is related to the structure and design of the organizations. It explains how the organizations are actually designed. It helps in understanding the organizational needs and problems. Organizational theory is the way of thinking about organizations. It analysis the whole organization as unit, i.e., the macro-examination of organization.

Meaning or organizational theory

The world theory is derived from the Greek word “Qewpix” meaning “theoria”. It means looking at, viewing or contemplation. Thus theory means systematic grouping of interrelated happenings having relationships between two or more dependent and inter dependent variables.

Organization theory is a discipline that studies the structure and design of the organization. Organization theory refers to both the descriptive and prescriptive aspects of the discipline. It describes how the organizations are actually structured and offers suggestions on how they can be constructed to improve their effectiveness. Organization theory can be defined as:

According to Topsi, “Organization theory is a set of interrelated constructs (concepts), definitions, and propositions that present systematic view of behaviour of individuals, groups, and subgroups interacting in some relatively patterned sequence of activity, the intent of which is goal directed.”

Organizational theory is a practical discipline and helps in examining organizations more precisely and thoroughly than one otherwise could. The primary focus is on organization as a unit. It considers aggregate behaviour of the individuals.

The present organization theory is the result of an evolutionary process. Over a period of many decades, academics and practitioners from diverse backgrounds and within the divers perspective have studies and analyzed organizations. Theories have been introduced, evaluated, and refined overtime; new insights tend to reflect the limitations of earlier theories. In order to understands what is happening to day in organizational theory, one need to look back along the path from which it has come.

Importance or organization theory

  1. Organization are complex entities and organization theory helps in reducing complexity by providing useful set of concepts and models.
  2. Organization theory explains how organization interacts with their environment and how they are affected by the environment in the interaction process.
  3. Organization theory explains how organization function, i.e., how they are designed internally to convert inputs into outputs.
  4. Organization theory helps in designing and understanding the organizational structure.
  5. Organization theory helps in exploring, analysing and explaining what is happening in the organization.

Principles of administrative approach

As a result of his long management career, Fayol developed fourteen management principles :

  • Division of work: Division of work, specialization, produces more and better work with the same effort. It focuses effort while maximizing employee efforts. It is applicable to all work including techincla applications. There are limitations to specialization which are determined by its application.
  • Authority and responsibility: Authority is the right to give orders and the power to exact obedience. Distinction must be made between a manager’s official authority deriving from office and personal authority created through individual personality, intelligence and experience. Authority creates responsibility.
  • Discipline: Obedience and respect between a firm and its employees based on clear and fair agreements is abosolutely essential to the functioning of any organization. Good discipline requires mangers to apply sanctions whenever violations become apparent.
  • Unity of command: An employee should receive orders from only one superior. Employees cannot adapt to dual command.
  • Subordination of individual interest to general interest: The interests of one employee or group of employees are subordinate to the interests and goals of the organization and connot prevail over it.

Scientific theory Management

Frederick Winslow Tylor (1856-1915), who rose from a labourer to a chief engineer, and later a manger of steal works in philiadelphin, is generally regarded as the father of scientific management. He believed that the casual, rule-of-thumb approach to amangerment prevalent in his days should be replaced by scientific analysis. He developed a number of management principles which are still operative. Among his contributions was the scientific development of time study and standards Management.

Function of Organisation Theory Organisation Behaviour Notes

Scientific Management also trmed as taylorism or the Classical Perspectived is  a method in management theory that determines changes to improve labour productivity. This was essentially the brainstorming idea of Frederick Winslow Taylor in “The Principles of Scientific Management.” Taylor held the belief that traditional decisions and guidelines should be replaced by accurate procedures that are developed after careful research and study of an individual’s work. The need for scientific management is propelled by the fact that the demand of the competent man surpasses the supply. Countries and organizations are always on the look out for a man who has already been trained. There is a seeming lack of opportunity and contribution towards systematically training and making a man competent.

Fundamentals of Scientific Management

The principal goal of scientific management is to successfully acquire maximum prosperity for the employer as well as the maximum prosperity of each employee.

The term prosperity here not only refers to the net profits or dividends of the company as a whole or its owner for that matter. It encompasses the successful development of every branch of the particular business that functions at peak efficiency, thereby retaining the prosperity on a permanent basis, similarly, for each employee of the company, maximum prosperity not only implies higher salaries but enhancing and developing their state of maximum efficiency. This in turn would increase and produce the highest grade of work that perfectly befits the capabilities of a particular individual. When an individual reaches a peak of efficiency, he is in turn producing largest daily output.

The guiding principal behind Taylor’s concept was to design a production system comprising of both men as well as machines in order to enhance efficiency. He believed that this design would function as good as a well-oiled machine.

The resultant of Scientific Management was reduced cost of the manufactured products, thereby making it more affordable for buyers. It also resulted in increased wages while the products cost was dropping. This change further created employment of machine operators who were more highly paid as compared to the unskilled labourer. Tayor was one of the first industrial managers who perceived “the interrelated character of the new manufacturing systems and the need for a disciplined, comprehension change if the manufacturer and the industrial sector were to attain the optimum results.”

The entire concept of Scientific Management gained more popularity after world War I. Taylor’s theory and views met much resistance from the labour. He hold the belief that by adopting methods of management control and a systemized method of production, inceases prosperity.

The general approach of Scientific Management includes selection of work force with appropriate abilities for specific tasks, training, Planning, wage incentives for increasing output and standard method of performing each job.

It is a system popularized by Taylor, in the early 20th century which aimed at developing :

  • Ways of increasing by making work easier to perform and
  • Methods for motivating the workers to take advantage of these labour-saving devices and techniques

Modern theory of Organization

The modern organization theory considers the dynamic conditions at micro and macro levels. It recognizes the dramatic changes taking place in the organization. It is a sophisticated and scientific way of explaining a complex organization. The theory is centered on the concept of system. The theory is very systematic and highly constructive. The present organization theory is the result of an evolutionary process. Over a period of many decades, academics and analyzed organization. Theories have been introduced, evaluated, and refined overtime; new insights tend to reflect the limitations of earlier theories. In order to understand what is happening today in organisaitonal theory, on need to look back along the path from which it has come.

It is basically the combinations of classical and neo-classical principles. The contribution in this school is made by Chester I Bernard, Mary Parker Follet, Norbert Weiner,  W.C Churchman, Katz and Khan and others.

System Theory

It has been said system theory is the dominant paradigm in administrative science. It can also be said that represent the most influential work in systems theory. According to Katz and Kahan(1978), Managerial systems require four subsystems to work properly: a support subsystem; a maintenance subsystem; a production subsystem; and an adaptive subsystem. Further, three factors influence the manner in which these subsystems work: the authority structure; the ideology; and the pattern of formal roles. They focused primarily on the pattern of formal role behavior because they wanted to develop a social psychology of organizations based on the relatively fruitless idea of looking at organizational ideology as a set of norms tied in with role expectations, so they never really developed their social psychology. Other theorists have focused their attention on other components, and for the most part, systems theory is still far from fully exploited in organizational science.

Systems theory is an interdisciplinary field of science and the study of the nature of complex systems in nature, society, and science. More specifically, it is a framework. By which one can analyze and/or describe any group of objects that work in concert to produce some result. This could be a single organism, any organization or society, or any electro-mechanical or informational artifact.

The system approach is particularly relevant to the study of the complex public organizations that have elaborate structures and that have embedded in larger social, political, and economic environments. According to the open system perspective an organization survives and grows by drawing  input from the environment which are processed that an organization lives and develops. The system thinking this input-conversion-output processes that an organization including its different parts and relationships.

The word system is derived from the Greek word meaning bring together or to combine. “A system is group of inter-related ports which function together to achieve a goal.”


Concept an Introduction Nature of Motivation Notes


Motivation is an important function which every manager performs for enthusing people to work for accomplishment of organisational objectives. It is an important factor which encourages giving their best of performance and help in reaching organisational goals. It is a cognitive variable that affects human behaviour. Motivation can not be seen directly but its implication can be seen in the behaviour of the person. Likert has called motivation as core of management. Effective directing of people is a key to organisational effectiveness both at organisational and individual level. A strong positive motivation will enable increased output of employee but negative motivation will reduce their performance.


The term motivation has been derived from Latin word “mover” which means “to move”. It means anything that initiates or sustains an activity. These days’ scholars have their own concept of motivation and they include various terms like motives, needs, wants, drives, desires, wishes, incentives, etc. to define motivation.

Motive can be defined as an inner state that energizes, activates or moves and directs, or channelizes behaviour towards goals. It is psychological force within an individual that sets him in motion for achievement of certain goals or satisfaction of certain needs. Motivation has been defined by various scholars. Some of the definitions are:

According to Michael. J. Jucius, “Motivation is an act of stimulating someone or one self to get desired
course of action, to push the right button to get desired reaction.”

According to Dubin, “Motivation is a complex force starting and keeping a person at work in an organisation. Motivation is something that moves a person to action, and continues him in the course of action already initiative.”

According to Stephen P Robbins, “Motivation is a willingness to exert high level of effort towards
organisational goals, conditioned by effort, ability to satisfy some individual need.”

According to The Encyclopedia of Management, “Motivation refers to degree of readiness in an
organism to pursue some designated goals and implies the determination of nature and locus of forces, including the degree of readiness.”

Therefore in simple words motivation can be defined as willingness towards the accomplishment of a goal or need.


Motivation is a psychological phenomenon which generates within an individual. When a person has certain needs he starts working more to satisfy those needs. Following characteristics of motivation can clarify its nature.

  1. Based on motives: Motivation is based on individual motives which are internal to the individual Motives provide activating thrust towards reaching a goal that comes from the feelings when individual lack something.
  2. Motivation is a psychological phenomenon : The process of motivation is mainly concerned with needs, desires, expectation, confidence, satisfaction that are psychological phenomenon. The psychological make up of every individual is different from others therefore it is very difficult to find out what can motivate the person towards desired goals.
  3. Motivation cannot be easily observed: It is not actually possible to make direct observation of motivation can be observed interactions which constitute their behaviour in terms of underlying motives and satisfaction.
  4. Goal oriented process: Motives are directed towards goals. Motivation has great deal of influence on the human behaviour. Goal directed behaviour is a reason due to which that behaviour takes place.
  5. Motivation is dynamic and situational : The motives, goals, behaviour are all dynamic in nature The needs, drives, expectation of person keep changing with the time; therefore motivation is a dynamic process.
  6. Motivation is related to satisfaction: Whenever a particular need of individual is fulfilled he feels extremely satisfied. The satisfaction is associated results of award or punishment which are based on past experiences.
  7. Person is motivated in totality : All individual in the organisation have various goals and their needs are interrelated. These affect their behaviour in several ways. Also feelings and needs are continuous process.


Motivation is an important factor affecting individual performance. All organisational facilities will go waste in the lack of motivated people to utilize these facilities effectively. Every superior in the organisation must motivate his subordinates for the right types of behaviour. Diagnosing human behaviour and analyzing as to why people behave in a particular way is of prime importance in motivating them irrespective of the nature of the organisation because individual is the basic component of any organisation.

  1. High performance level : Motivated employee put higher performance as compared to other employees. Better performance will also result in higher productivity. The cost of production can also be brought down if productivity is raised.
    2. Low employee turnover and absenteeism: Motivated employees stay in the organisation and their absenteeism is quite low. High turnover and absenteeism create many problems in the organisation. When the employees are satisfied with their jobs and they are well motivated by offering them financial and non-financial incentives then they will not leave the job. The rate of absenteeism will also be low because they will try to increase their output.
    3. Acceptability to change: Organisations are created in the society. Because of the changes in the society changes in technology, value system, etc. organisation has to incorporate hose changes to cope up with the requirement of the time. Generally, employees resist changes for fear of an adverse effect on their employment. When the employees are given various opportunities of development then they can easily adapt to new situations. If they are properly motivated, they accept, introduce, and implement these changes keeping the organisation on the right track of progress.
    4. Better organisational image : Those enterprises which offer better monetary and non-monetary facilities to their employees have a better image among them. Due to better chance of man-power development, the employees will like to join such organisations.
    5. Better industrial relations : A good motivational system will create job satisfaction among employees. The employment will offer employees better service conditions and various other incentives. There will be an atmosphere of confidence among employers and employees. There will be no conflict and cordial relations will be maintained among both sides.


There are many needs which an individual may have and there are various ways in which these may be classified. Needs may be a natural, biological phenomenon in an individual, or these may develop over the period of time through learning. Since these two types of needs emerge from two different sources these may be satisfied by different types of incentives. Thus needs may be grouped into three categories:
1. Primary needs
2. Secondary needs
3. General needs

  1. Primary needs : Primary needs are also known as physiological, biological, basic, or unlearned needs. However, the term primary is more comprehensive as compared to other terms. Primary needs are animal drives which are essential for survival. These needs are common to all human beings, though their intensity may differ. Some of the needs are food, sex, sleep, air to breathe, satisfactory temperature, etc.
    2. secondary needs : Secondary needs are not natural but are learned by the individual through his experience and interaction. Therefore, these are also called learned or derived needs. Emergence of these needs depend on learning. There may be different types of secondary needs like need for power, achievement, státus, affiliation, etc
    3. General needs : There are a number of needs which lie in between the primary and secondary classifications. A need must not be learned but at the same time, it is not completely physiological. There are certain such needs like need for competence, curiosity, manipulation, affection, etc.


When a manager wants to get more work from his subordinates then he will have to motivate them
for improving their performance. This will be done either by offering incentives or may be in the shape o
rewards or may be in the form of instilling fear in them and using force for getting desired work. The
following are the types of motivation:

(a) Positive Motivation

(b) Negative Motivation

Function of Organisation Theory Organisation Behaviour Notes

BBA Organisation Behaviour Question Paper 2018-2021

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