Organisational Behaviour - Classical Theories of Organisational Structure

Classical management theories can be divided into three areas as follow:

1. Scientific Management Theory (Taylorism): Frederick Taylor (1856-1915) is the father of Scientific Management theory. He proposed in this theory that how productivity of workers can be improved by applying scientific methods to their work. He advocated for incentive wage system through which workers can earn extra for their extra work and the management can earn extra revenues. Which also helps in building employees' motivation to work at their full capacity. He used different scientific techniques such as time and motion studies, Gnatt chart, etc for developing scientific methods of performing tasks.

Principles of Scientific Management

Taylor's four important principles of scientific management are as follow:

1. Develop a science for each task of a man's work and replace it with the old rule of thumb.
2. Scientifically select and then train, teach and develop the workman.
3. Management should heartily cooperate with the workers so that it ensures that all the work has been done in accordance with the scientific methods which have been developed.
4. Divide equally the work and responsibility among management and workers. The management take over almost all the work for which they are better fitted than the workmen.

2. Administrative Management  Theory (Fayolism)

3. Bureaucratic Management Theory

Organisational Behaviour - Max Weber's Bureaucratic Management Theory

Max Weber (1864-1920) a German sociologist is the father of bureaucratic theory of management. He wrote the book "The Theory of social and Economic Organisation." According to him Bureaucracy is the organisational structure with highly routine operating tasks performed under formalised rules and regulations with tasks assigned to various departments. It is the formal system of organisation and administration designed to ensure efficiency and effectiveness.

Principles of Bureaucracy

1. Division of work: Work is divided into simple, routine and well defined tasks and categorised on the basis of competency and specialisation.
2. Hierarchy: Positions in an organisation are organised in an hierarchy where superiors control their subordinates.
3. Rules and Regulations: The organisation is governed by certain rules and regulations which have to be strictly followed. It governs decision making and leads to impersonal relationships.
4. Impersonal relations: The conduct of a manager should be highly formal and impersonal, not affected by his personality and personal relations. He should treat all the employees equally.
5. Employment: Selection of the employees is totally formal based on his performance in selection exam and technical knowledge. There is a probation period and after that employee is a full time employee protected from arbitrary dismissal.
6. Jurisdiction: Jurisdiction of work is clearly defined by rules and official duties and is not governed by superior's order only.
7. Departmentalisation: Similar kind of tasks are grouped into functional departments.
8. Records: A written record of day to day all the official activities is maintained in files.
9. Rationality: Decision making is based on rationality on the prescribed rules and regulations and not upon ones liking.
10. Compensation: Compensation of the bureaucrats is not based on work done by them but on the basis of rank held by them in the organisation. They are compensated by regular salary and facility of pension for their old age.

Organisational Behaviour - Fayol's Administrative Management Theory

Henry Fayol (1841-1925) was a French management theorist. He developed Administrative theory of management and wrote the book "General and Industrial Administration". This theory is also known as Fayolism. He developed 14 principles that can be used by management to coordinate the internal (administrative) activities of an organisation. Other theorists who contributed to to administrative management theory were James D. Mooney, Sheldon, Urwick, Luther H. Gulick.

Fayol's functions of management:

1. Planning
2. Organising
3. Commanding
4. Coordinationg and
5. Controling

Fayol classified business operations into six major activities:

1. Technical
2. Commercial
3. Financial
4. Security
5. Accounting and
6. Managerial

Fayol's 14 Principles of Management:

1. Division of work: Work of all kind must be divided and subdivided and then allotted to various persons according to their expertise in a particular area. Specialisation leads to efficiency and economy in business.
2. Authority: Authority and responsibility comes together. Managers must be given authority for performing tasks.
3. Discipline: Discipline means sincerity, obedience, respect of authority and observance of rules and regulations of the enterprise. It can be enforced by the effective leadership and punishment can be applied judiciously whenever required.
4. Unity of command: Subordinates should receive orders from only one superior at a time and they should be accountable to their orders only.
5. Unity of direction: There should be one plan for activities having similar objectives and these activities should be grouped together. They should also be under the command of a particular manager.
6. Equity: Managers should be fair and impartial while dealing with the subordinates.
7. Order: There should be systematic arrangement of things and people in the organisation.
8. Subordination of individual interest to the general interest: There should be harmony between individual and organisation's interests. Organisation's interest should prevail over individual interest.
9. Remuneration: Remuneration paid to the employees should be fair, reasonable, satisfactory and rewarding to the efforts.
10. Centralisation and decentralisation: Centralisation is concentration of power to the management and decentralisation is disseminionation of power to subordinates. Degree of centralisation and decentralisation depends on size of business, experience of superiors, dependability and ability of subordinates, etc.
11. Scalar Chain: It is the chain of authority from top most level to the lowest level. Normally communication is done following the chain of authority. But if there is urgency communication should be done directly between the sender and ultimate receiver cutting short the chain of authority which is known as Gang Plank.
12 Stability of Tenure: Tenure of employee at a particular job should be fixed so that he get used to that work and become efficient at it which will increase quality as well as quantity of his work.
13. Initiative: Management should provide healthy environment to his employees to take initiative, suggest ideas, experiences and new and improved methods of performing jobs. Monetary and non monetary incentives can be useful in this.
14. Espirit De' Corps: Encouraging team spirit, understanding, and trust among work groups helps them to perform better and they offer their best towards the organisation.

UGC NET Examination

SCHEME OF EXAMINATION
i)	The Test consist of three papers. All the three papers consist of only objective type questions and will be held in two separate sessions as under:
	Session Paper Marks Number of Question Duration First I 100 60 out of which 50 question to be attempted 1¼ Hours (09.30 A.M. to 10.45 A.M.) First II 100 50 questions all are compulsory 1¼ Hours (10.45 A.M. to 12.00 NOON) Second III 150 75 questions all are compulsory 2½ Hours (01.30 P.M. to 4.00 P.M.)
	Paper-I is of general nature, intended to assess the teaching/research aptitude of the candidate. It is primarily  designed to test reasoning ability, comprehension, divergent thinking and general awareness of the candidate. It consists of Sixty (60) multiple choice questions of two marks each, out of which the candidate is required to answer any fifty (50). In the event of the candidate attempting more than fifty questions, the first fifty questions attempted by the candidate would be evaluated.
	Paper-II consist of 50 objective type compulsory questions based on the subject selected by the candidate. Each question carries 2 marks.
	Paper-III consist of 75 objective type compulsory questions from the subject selected by the candidate. Each question carries 2 marks. All questions of Paper-II and Paper-III are compulsory, covering entire syllabus (including all electives, without options). The candidate requires to mark the responses for questions of Paper-I, Paper-II and Paper-III on the Optical Mark Reader (OMR) sheet provided along with the Test Booklet. The detailed instructions for filling up the OMR Sheet will be uploaded on UGC website (www.ugcnetonline.in or www.ugc.ac.in). PROCEDURE & CRITERIA FOR DECLARATION OF RESULT: This comprises of following steps: Step I: Minimum marks to be obtained in NET for considering a candidate for the award of JRF and eligibility for Assistant Professor: The candidates are required to obtain following minimum marks separately in Paper-I, Paper-II and Paper-III as given below:
	CATEGORY Minimum Marks (%) to be obtained PAPER – I PAPER – II PAPER– III GENERAL 40 (40%) 40 (40%) 75 (50 %) OBC(Non-creamy layer) 35 (35%) 35 (35%) 67.5 (45 %) rounded off to 68 PWD/SC/ST 35 (35%) 35 (35%) 60 (40 %)
	Step II: Amongst those candidates who have cleared step I, a merit list will be prepared subject-wise and category-wise using the aggregate marks of all the three papers secured by them. Step III: Top 15% candidates (for each subject and category), from the merit list mentioned under step II, will be declared NET qualified for eligibility for Assistant Professor only. Step IV: A separate merit list for the award of JRF will be prepared from amongst the NET qualified candidates figuring in the merit list prepared under step III. It may be noted that the above qualifying criteria decided by UGC is final and binding.
ii)	For Persons with Disability (Visually Challenged candidates) thirty minutes’ compensatory time shall be provided separately for paper-I and Paper-II. For paper-III, forty five minutes’ compensatory time shall be provided. They will also be provided the services of a scribe who would be a graduate in a subject other than that of the candidate. Those Persons with Disability (Physically Challenged) candidates who are not in a position to write in their own hand-writing can also avail these services by making prior request (at least one week before the date of UGC-NET) in writing to the Co-ordinator of the NET Coordinating Institution. Compensatory time and facility of scribe would not be provided to otherPersons with Disability (Physically Challenged) candidates. The facility of Scribe is applicable only for candidates with disability of 40% or more. The candidate has the discretion of opting for his/her own scribe or has to request the Co-ordinator of the Coordinating Institution for the same in writing at least one week in advance of the test. In such instances the candidate is allowed to meet the scribe a day before the examination so as to verify whether the scribe is suitable or not. Those candidates who opt for their own scribe have to produce the scribe before the Co-ordinator along with her/his certificates of educational qualifications at least one day before the test.
iii)	Syllabus of Test: All questions of Paper-II and Paper-III will be compulsory, covering entire syllabus (including all electives, without options). Syllabi for all NET subjects can be downloaded from the UGC Website www.ugc.ac.in and are also available in the libraries of all Indian Universities. UGC will not send the syllabus to individual candidates.
iv)	In case of any discrepancy found in the English and Hindi versions, the questions in English version shall be taken as final. Source www.ugcnetonline.in

UGC NET Management Syllabus

(A link to updated syllabus of NET management has been given on the right side bar of this page.)

Code No. : 17

Subject : Management ( including Business Administration  Management / Marketing / Marketing Management / Industrial Relations and Personnel Management., etc ).

UGC NET Management Paper II & Paper III ( A ) [ Core Group ]

Unit – I 

• Managerial Economics – Demand Analysis
• Production Function
• Cost – Output Relations
• Market Structures
• Pricing Theories
• Advertising
• Macro – Economics
• National Income Concepts
• Infrastructure – Management and Policy
• Business Environment
• Capital Budgeting

Unit – II

• The concept and significance of organisational behaviour – Skills and Roles in an organisation – Classical, Neo – Classical and Modern Theories of Organisational Structure – Organisational Design – Understanding and Managing individual behaviour personality – Perception – Values – Attitudes – Learning – Motivation.
• Understanding and Managing Group Behaviour, Processes – Inter – personal and group dynamics – Communication – Leadership – Managing change – Managing conflicts.
• Organisational Development.

Unit – III

• Concepts and perspectives in HRM; HRM in changing environment.
• Human Resource Planning – Objectives, Process and Techniques.
• Job analysis – Job Description.
• Selecting Human Resources.
• Induction, Training and Development.
• Exit policy and Implications.
• Performance Appraisal and Evaluation.
• Potential Assessment.
• Job Evaluation.
• Wage Determination.
• Industrial Relations and Trade Unions.
• Dispute Resolution and Grievance Management.
• Labour Welfare and Social Security Measures.

Unit – IV

• Financial Management – Nature and Scope.
• Valuation Concepts and Valuation of Securities.
• Capital Budgeting Decisions – Risk Analysis.
• Capital Structure and Cost of Capital.
• Dividend Policy – Determinants.
• Long – Term and Short – Term Financing Instruments.
• Mergers and Acquisitions.

Unit – V

• Marketing Environment and Environment Scanning; Marketing Information Systems and Marketing Research; Understanding Consumer and Industrial Markets; Demand Measurement and Forecasting; Market Segmentation – Targeting and Positioning; Product Decisions, Product mix, Product Life Cycle; New Product Development; Branding and Packaging; Pricing Methods and Strategies.
• Promotion Decisions – Promotion mix; Advertising; Personal Selling; Channel Management; Vertical Marketing Systems; Evaluation and Control of Marketing Effort; Marketing of Services; Customer Relation Management;
• Uses of Internet as Marketing Medium – Other related issues like branding, market development, Advertising and retailing on the net.
• New issues in Marketing.

Unit – VI

• Role and Scope of Production Management; Facility Location; Layout Planning and Analysis; Production Planning and Control – Production Process Analysis; Demand Forecasting for Operations; Determinants of Product mix; Production Scheduling; Work measurement; Time and Motion Study; Statistical Quality Control.
• Role and Scope of Operations Research; Linear Programming; Sensitivity Analysis; Duality; Transportation Model; Inventory Control; Queuing Theory; Decision Theory; Markov Analysis; PERT / CPM.

Unit – VII

• Probability Theory; Probability distributions – Binomial, Poisson, Normal and Exponential; Correlation and Regression analysis; Sampling theory; Sampling distributions; Tests of Hypothesis; Large and small samples; t, z, f, Chi – square tests.
• Use of Computers in Managerial applications; Technology issues and Data processing in organizations; Information systems; MIS and Decision making; System analysis and design; Trends in Information Technology; Internet and Internet – based applications.

Unit – VIII

• Concept of Corporate Strategy; Components of Strategy Formulation; Ansoff’s Growth Vector; BCG Model; Porter’s Generic Strategies; Competitor Analysis; Strategic Dimensions and Group Mapping; Industry Analysis; Strategies in Industry Evolution, Fragmentation, Maturity, and decline.
• Competitive strategy and Corporate Strategy; Trans-nationalisation of World Economy; Managing Cultural Diversity; Global Entry Strategies; Globalisation of Financial System and Services; Managing International Business; Competitive Advantage of Nations; RTP and WTO.

Unit – IX

• Concepts – Types, Characteristics; Motivation; Competencies and its development; Innovation and Entrepreneurship; Small business – Concepts Government policy for promotion of small and tiny enterprises; Process of Business Opportunity Identification;
• Detailed business plan preparation; Managing small enterprises; Planning for growth; Sickness in Small Enterprises; Rehabilitation of Sick Enterprises; Intrapreneurship (Organisational Entrepreneurship).

Unit – X

• Ethics and Management System; Ethical issues and Analysis in Management; Value based organisations; Personal framework for ethical choices;
• Ethical pressure on individual in organisations; Gender issues; Ecological consciousness; Environmental ethics; Social responsibilities of business; Corporate governance and ethics.

UGC NET Management Paper III ( B )

[ Electives ]

Elective – I

• Human Resource Management ( HRM ) – Significance; Objectives; Functions; A diagnostic model; External and Internal environment;
• Forces and Influences; Organizing HRM function.
• Recruitment and Selection – Sources of recruits; recruiting methods; Selection procedure; Selection tests; Placement and Follow-up.
• Performance Appraisal System – Importance and Objectives; Techniques of appraisal system; New trends in appraisal system.

• Development of Personnel – Objectives; Determining Needs; Methods of Training & Development programs; Evaluation.
• Career Planning and Development – Concept of career; Career planning and development methods.
• Compensation and Benefits – Job evaluation techniques; Wage and salary administration; Fringe Benefits; Human resource records and audit.
• Employee Discipline – importance; causes and forms; Disciplinary action; Domestic enquiry.
• Grievance Management – Importance; Process and Practices; Employee Welfare and Social Security Measures.
• Industrial Relations – Importance; Industrial conflicts; Causes; Dispute settlement machinery.
• Trade Unions – Importance of Unionism; Union leadership; National Trade Union Movement.
• Collective Bargaining – Concept; Process; Pre-requisites; New trends in collective bargaining.
• Industrial Democracy and Employee Participation – Need for industrial democracy; Pre – requisites for industrial democracy; Employee Participation – Objectives; Forms of Employee Participation.
• Future of Human Resource Management.

Elective – II

• Marketing – Concept; Nature and Scope; Marketing myopia; Marketing mix; Different environments and their influences on marketing; Understanding the customer and competition.
• Role and Relevance of Segmentation and Positioning; Static and Dynamic understanding of BCG Matrix and Product Life Cycle; Brands – Meaning and Role; Brand building strategies; Share increasing strategies.
• Pricing objectives; Pricing concepts; Pricing methods.
• Product – Basic and Augmented stages in New Product Developments
• Test Marketing Concepts.
• Promotion mix – Role and Relevance of advertising Sales promotion – media planning and management.
• Advertising – Planning, execution and evaluation.
• Different tools used in sales promotion and their specific advantages and limitations.
• Public Relations – Concept and Relevance.
• Distribution channel hierarchy; Role of each member in the channel; Analysis of business potential and evaluation of performance of the channel members.
• Wholesaling and Retailing – Different types and the strengths of each one; Emerging issues in different kinds of retailing in India.
• Marketing Research – Sources of Information; Data Collection; Basic Tools used in Data Analysis; Structuring a Research Report.
• Marketing to Organisations – Segmentation Models; Buyer behaviour models; Organisational, buying process.
• Consumer Behaviour theories and models and their specific relevance to marketing managers.
• Sales Function – Role of technology in automation of sales function Customer relationship management including the concept of ‘Relationship Marketing’.
• Use of internet as a medium of marketing; Managerial issues in reaching consumers / organisation through internet.
• Structuring and managing marketing organisations.
• Export Marketing – Indian and global context.

Elective – III

• Nature and Scope of Financial Management.
• Valuation Concepts – Risk and Return; Valuation of Securities; Pricing Theories – Capital asset pricing model and Arbitrage pricing theory – Understanding financial statements and analysis thereof.
• Capital budgeting decisions; Risk analysis in capital budgeting and Long – Term sources of finance.
• Capital Structure – Theories and Factors; Cost of capital.
• Dividend Policies – Theories and Determinants.
• Working Capital Management – Determinants and Financing; Cash management; Inventory management; Receivables management.
• Elements of Derivatives.
• Corporate risk management.
• Mergers and Acquisitions.
• International Financial Management.

Elective – IV

• India’s Foreign Trade and Policy; Export promotion policies; Trade agreements with other countries; Policy and performance of Export zones and Export – oriented units; Export incentives.
• International marketing logistics; International logistical structures; Export Documentation framework; Organization of shipping services; Chartering practices; Marine cargo insurance.
• International financial environment; Foreign exchange markets; Determination of exchange rates; Exchange risk measurement; International investment; International capital markets; International Credit Rating Agencies and Implications of their ratings.
• WTO and Multilateral trade agreements pertaining to trade in goods; trade in services and TRIPS; Multilateral Environmental Agreements (MEAs); International Trade Blocks – NAFTA, ASEAN, SAARC, EU, WTO and Dispute Settlement Mechanism.
• Technology monitoring; Emerging Opportunities for Global Business.

Organisational Behaviour - Skills and Roles in an organisation

Management Skills

Skills are those mind tools with which a manager performs certain tasks. Different kind of skills are required to perform different tasks. According to Katz there are three essential basic skills which a manager needs to perform a task. These are as follow:

1. Technical Skills: Technical skills are the proficiency and knowledge required in an specific area like IT skills in the field of IT, Finance skills for finance work, Mechanical Engineering, Architecture for buildings, etc. Technical skills are more required at the execution level of a project for junior and middle management level.

2. Interpersonal Skills: Interpersonal skills of a manager shows how he interacts with subordinates, peers, seniors, customers and business partners. Interpersonal skills are required at all the levels in an organisation. It helps a manager to understand, to motivate and to resole conflict if any in his team. It helps him to lead the team effectively by knowing every person of his team well, by taking maximum output from the strengths of his team member. It includes motivational skills, understanding other's perception and attitude, communication skills, negotiation skills, etc. These are normally called as soft skills.

3. Conceptual Skills: Conceptual skills are more required at the top management level as they are the people who are basically involved in giving direction to the organisation and big decision making. Conceptual skills are those skills which helps a manager to see the organisation in a big picture like impact of upcoming government policies in the related field, budding competition, expansion plans in a new territory, need of a marketing campaign, etc. It helps a manager to understand the relationship between various sub units and visualize how organisation fit into this broader environment.

Roles in an organisation

According to Mintzberg (1975) managers of all levels of hierarchy behave in the same way, carry into effect similar activities and therefore fulfill similar roles. He divided these activities into 10 roles and defines them as “organized set of behaviours”.
Further Stoner and Wankel (1997) grouped these 10 roles into 3 main roles as:

1. Interpersonal Roles: Interpersonal roles are concerned with creating and maintaining interpersonal relationships in work. These are:

a) Figurehead role: Manager represents organisation in all matters of formality, legality and socially to inside or outside the organisation. He is like a symbolic of the organisation.

b) Leader Role: Manager being a leader of the department sets goals, makes plan to reach the goal, motivates employees look after their needs and leads the team to achieve that goal.

c)  Liaison role: Manager interacts with people inside and outside the organisation to gain valuable information, to come into an agreement, to gain orders for the organisation.

2. Informational roles: These are concerned with  informational aspect of managerial work like receiving, collecting, and disseminating information. These are:

a) Monitor Role: Manager looks out for information regarding the organisation. He collects the information from inside (like information regarding problem areas of the organisation) as well as outside (information regarding competition, new technology, etc) the organisation through reports, magazines, etc.

b) Disseminator Role: Manager transmits the important information gathered from inside or outside the organisation to related organisational members. He may do this by holding informational meetings, sending reports or emails, making phone calls etc.

c) Spokesperson: Manager transmits organisation's information to outside like government, departments, public, media etc. This information may include organisation's annual reports, achievements, plans, policies, etc. They may do it by holding board meetings or advertising in newspapers, etc.

3. Decisional roles: These are related to making decisions. These are:

a) Entrepreneur: Manager analyses organisation's development opportunities and possibilities and bring about organic changes to grow the organisation and make it more profitable. He motivates employees to give their suggestions and achieve organisation's objectives.

b) Disturbance Handler: Manager takes corrective actions whenever any disturbance or crisis occurs inside or outside the organisation. Handles disputes among employees, among employees and business partners, and among business partners. Thus he plays the role of a rescuer.

c) Resources Allocator: Manager allocates the organisation's resources like people, money, infrastructure, etc so that it is optimally utilised and enhance its productivity. He approves plans, budgets and programmes, and set priorities.

d) Negotiator: Manager negotiates with the team, departments and organisations to defend business interests and gain advantage for his team, department and organisation.

The concept and significance of organisational behaviour

Definetion: According to Stephen P. Robbins, "Organisational behaviour (OB) is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization's effectiveness."

According to Aldag and Brief, " OB is a branch of social sciences that seeks to build theories that can be applied to predicting , understanding and controlling behaviour in a work organisation."

Organisational behaviour is the multidisciplinary approach which is an integration of different field of studies like psychology, sociology, social psychology, anthropology, and political science.

OB studies human behaviour at individual level, group level and organisational level.

Basically, organisations are made up of peoples, therefore managers in the organisation must know how they behave in an organisation to make organisation productive.

Determinants of behaviour in an organisation are:

1. Individuals
2. Groups and
3. Structure

Elements of Organisational Behaviour

1. People: People make up the internal social system of the organisation. They consists of individuals and groups. Groups may be formal or informal.

2. Structure: Structures define the formal relationship between people in an organisation.

3. Technology: Technology consist of physical objects, activities and process, knowledge, etc through which people accomplish their tasks to achieve organisational objectives.

4. Environment: All organizations operate within an external environment. It is part of a larger system that contains thousand of other elements.This includes the suppliers, customers, competitors, governments’ agencies, employees, unions, political parties, and economic, political, cultural, technological and social factors in which the organization embedded.

Significance of Organisational Behaviour

OB is concerned with understanding, applying and controlling of behavioural and structural knowledge of an organisation for organisation's effectiveness. Management function includes Planning, organising, leading and controlling where people are involved in different roles (interpersonal roles, informational roles, and decisional roles) and different capacities. Therefore, for an organisation to succeed it is very important for it to understand its organisation's culture, people by way of understanding their perception, attitudes, motivation, personality, key personality characteristics relevant to workplace, learning, job satisfaction, etc through theories of motivation, learning, and reinforcement. And mould their dissatifaction to satisfaction, motivate them to achieve desired results, provide them appropriate work culture, growth opportunities, punish their inappropriate behaviour, and infusing learning environment and leadership.