Evolution of Organizational Behaviour in Chronological Order

Organizational behaviour is the study of how individuals, groups, and structures impact and are affected by behaviour within organizations. It examines human actions and interactions in a workplace setting to understand, predict, and influence behaviour. 

Table of Contents

• Early Management Theories (Late 19th - Early 20th Century)
• Human Relations Movement (1930s-1950s)
• Organizational Behaviour as a Field (1950s-1970s)
• Modern Developments (1980s-Present)

Organizational behaviour is built on the knowledge of different disciplines, including psychology, sociology, and management This domain provides useful insights to manage workforce diversity, boost innovation, and create a positive organizational environment. It optimizes both individual and organizational outcomes through behavioural dynamics. By analyzing elements such as leadership, motivation, team dynamics, communication, and culture, organizational behaviour aims to improve organizational effectiveness and employee well-being.

Evolution of Organizational Behaviour (1890s - Present)

Let us learn about the evolution of organizational behaviour in chronological order:

Early Management Theories (Late 19th - Early 20th Century)

• Scientific Management (1890s-1910s): Frederick Winslow Taylor, considered the father of scientific management, introduced time-and-motion studies to analyze and improve work processes. Taylor's principles included developing a scientific approach to tasks, selecting and training workers scientifically, and building cooperation between management and workers. His goal was to increase productivity by optimizing and standardizing tasks.
• Bureaucratic Management (1920s-1930s): Max Weber's theory of bureaucracy emphasized a structured, formal network of relationships among specialized positions in the organization. He advocated for a clear hierarchy of authority, well-defined rules and procedures, and impersonal relationships between managers and employees. Weber believed that a bureaucratic structure would lead to efficiency and predictability in organizations.

Human Relations Movement (1930s-1950s)

• Hawthorne Studies (1924-1932): Elton Mayo conducted the Hawthorne Studies, which explored how different work conditions affected productivity. Initially focused on physical work conditions, the studies revealed that social factors and employee attitudes had a significant impact on performance. The "Hawthorne Effect" describes how individuals modify their behaviour in response to being observed, highlighting the importance of human relations in the workplace.
• Maslow's Hierarchy of Needs (1943): Abraham Maslow developed a theory of human motivation which is based on the hierarchy of needs. It includes basic physiological needs to self-actualization. As per Maslow, individuals are motivated to fulfill these needs in order, starting with basic needs like food and shelter, moving up to safety, social belonging, esteem, and finally self-actualization. This theory influenced organizational practices by emphasizing the importance of addressing employees' higher-order needs to motivate them effectively.

Organizational Behaviour as a Field (1950s-1970s)

• Theory X and Theory Y (1960): American professor Douglas McGregor proposed two contrasting theories about worker motivation and management styles. Theory X assumes that employees are naturally lazy, dislike work, and must be coerced or controlled to achieve organizational goals. In contrast, Theory Y suggests that employees are inherently motivated, seek responsibility, and can be trusted to work towards organizational objectives if provided with the right conditions. These theories helped shift managerial practices towards more participative and supportive approaches.
• Contingency Theory (1960s-1970s): Contingency theory posits that there is no single best way to manage an organization. Instead, the effectiveness of a management style or organizational structure depends on various situational factors. Fred Fiedler introduced the Contingency Model of Leadership, suggesting that leadership effectiveness depends on the match between a leader's style and the situational context. Paul Lawrence and Jay Lorsch emphasized that organizations must adapt their structures to fit the environment and tasks they face.

Modern Developments (1980s-Present)

• Organizational Culture (1980s): Edgar Schein and other scholars emphasized the significance of organizational culture, which includes shared values, beliefs, and norms that shape behaviour within an organization. Schein identified three levels of culture: artifacts (visible elements), espoused values (stated values and norms), and underlying assumptions (unconscious beliefs). Understanding and managing organizational culture became critical for building a cohesive work environment and navigating organizational change.
• Transformational Leadership (1980s-1990s): James MacGregor Burns introduced the concept of transformational leadership, later expanded by Bernard Bass. Transformational leaders inspire followers to overachieve their own self-interests for the betterment of the organization. They build a vision, provide intellectual stimulation, and offer individualized consideration. This leadership style contrasts with transactional leadership, which focuses on exchanges and rewards for performance.
• Positive Organizational Behaviour (1990s-Present): Positive organizational behaviour (POB) focuses on the study and application of positive psychological capacities and strengths that are measurable, developed, and manageable for performance improvement. Key concepts include psychological capital (PsyCap), which encompasses hope, efficacy, resilience, and optimism. The goal of POB is to enhance workplace well-being and performance by leveraging employees' positive attributes.
• Diversity and Inclusion (2000s-Present): Recent trends emphasize on the relevance of promoting diversity, equity, and inclusion (DEI) in the workplace. Research and practices focus on creating environments where diverse talents can thrive, recognizing the benefits of diverse perspectives for innovation, problem-solving, and organizational success. DEI initiatives aim to address systemic biases, build inclusive cultures, and ensure equitable opportunities for all employees.