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Summary Organisational Psychology

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Summary of Organisational Psychology, by the Radboud University

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Lecture 1

An organisation is a collection of people who work together and coordinate their actions in order to
achieve individual and organisational goals

Components of organisations (Mintzberg)




- Strategic apex: The management
- Middle line: Middle management
- Operating core: People on the work floor
- Technostructure: Assists the core to do their jobs
- Support staff: Assist the company (receptionist, cleaners etc.)
- Ideology: Everything around this

Levels of analysis:

- Individual level
- Group level
- Organisational level

All these groups have influence on each other

Organisational theory:
1. Classical: Bureaucracy, Scientific management, Fordism.
Objective: to improve the organisational structure in order to increase efficiency
Normative: How it should be done.
 Mooney & Reiley:
 Principle of coordination  act together, exercising authority, need for
discipline
 Scalar principle  Vertical division, hierarchy.
 Functional principle  Horizontal division
 The difference between line (core business) and staff (supportive)
 Taylor:
 Responsibility for the organisation of work from the employee to the
manager
 Use of scientific methods in order to determine the most efficient way of
working
 Scientific selection, training and development of employees
 Monitoring job performance
 Employees as machines, division of labour
 Idea: people are motivated by financial gain

,  Ford:
 Inspired by Taylor
 Mass production
 Standardised products
 Low costs
 Strong division of labour
 Standard salary
 Paternalistic (education, homes, healthcare
 Weber (Bureaucracy):
 Specialisation of the function, not the employee (efficiency through
specialization)
 Division of labour
 Hierarchy (Clear chain of command)
 Formal selection (employees will be hired based on merit and expertise)
 Career orientation (focus is on your work, nothing else)
 System of rules and regulations (efficiency will increase due to formal rules)
 Impersonality (Personal preferences will be avoided

Disadvantages of weber:

- Rules and other controls may be become ends rather than means
- Lack of appreciation or concern for changed conditions in the environment
- Delegation of authority to lower levels may encourage emphasis on subunit rather than
overall rules  subunit conflict and decreased effectiveness
- Working to the rules

Disadvantages of the classical approach are:

- Ignores the psychological and social processes of employees
- Inflexibility

Classical approach conclusion:

Assumptions:

- Work is inherently distasteful to most people (lazy)
- What they do is less important that what the earn it for (homo economicus)
- Few want or can handle work which requires creativity, self-direction or self-control

Management:

- Close supervision and control of behaviour (no trust)
- Breaking tasks down into simple, repetitive, easily learned operations
- Establishing detailed work routines and procedures, and enforce firmly but fairly




2. Human relations

, - Humanising the work organization: focus on employee as an individual. Analysing what
motivated employees
- The hawthoenre experiments
- Attentions to: The informal structure, leadership, motivation, communication, needs of
employees, groups within the organisation
- Employees aren’t just motivated by money

Conclusion of human relations approach:

Assumptions:

- People want to feel useful and important
- People desire to belong and to be recognized as individuals
- These needs are more important than money in motivating people

Management:

- Make each worker feel useful and important
- Keeping workers informed and listen to their objections to management plans
- Allow workers to exercise self-direction and self-control on routine matters

Disadvantages of Human relation approach:

- Scientific quality: The methodological value of the Hawthorne studies
- Satisfied employee: Productive employee?
- Ignores the organisation and the context of the organisation
- People without organisations



3. System approach:
- Organisations can be seen as open systems.
- It has influence on its environment, and vice versa
- It has 3 stages:
1. Input stage: Raw materials, money and capital, humans resources
2. Conversion stage: Machinery, computers, human skills
3. Output stage: Goods, services
Sales of outputs allow organisations to obtain new supplies of inputs
- Changing social and cultural environment
- Changing global environment
- Developments in information technology
- Shifting working relationships
- Trist:
 Synchronisation between structure, technology and the human side of organisation
 Joint optimism
 Self-managing/responsible groups, autonomy
 Whole tasks
 The meaningfulness of tasks

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