SHAD1043

CHAPTER 1

CHAPTER 1 : ORGANISATIONAL BEHAVIOR

DEFINITION

Organizational behavior (OB) is the study of the way people interact within groups. Normally this study is applied in an attempt to create more efficient business organizations. The central idea of the study of organizational behavior is that a scientific approach can be applied to the management of workers.

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ORGANIZATIONAL BEHAVIOR

As a multi-disciplinary field, organizational behavior has been influenced by developments in a number of related disciplines including: Sociologyindustrial/organizational psychology, and economics.

The Industrial Revolution is a period from the 1760s where new technologies resulted in the adoption of new manufacturing techniques and increased mechanization. In his famous iron cage metaphor, Max Weber raised concerns over the reduction in religious and vocational work experiences. Weber claimed that the Industrial Revolution's focus on efficiency constrained the worker to a kind of "prison" and "stripped a worker of their individuality".[7] The significant social and cultural changes caused by the Industrial Revolution also gave rise to new forms of organization. Weber analyzed one of these organizations and came to the conclusion that bureaucracy was "an organization that rested on rational-legalprinciples and maximized technical efficiency.

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