Introduction to Organizational Behavior

Human relations and OB play a significant role in the development of the skills of employees and the improvement of organizational performance. Various studies and theories in the field of organizational behavior have given new insights into the behavior of people at work. The most important studies are the Hawthorne studies, Theory X and Theory Y, and Theory Z. The Hawthorne Studies, conducted by Elton Mayo at the Western Electric Company, was the first systematic study that recognized the significance of informal groups in the workplace and its impact on productivity. The conclusion drawn from these studies was that it was security and recognition, not just good physical working conditions that bring a drastic improvement in productivity. Moreover, informal groups operating within the work settings exert strong control over work habits of individual workers. Douglas McGregor formulated two theories called Theory X and Theory Y. In these theories, he has made two contrasting sets of assumptions about individuals at work - negative and positive. Theory X assumes that people are lazy and have an inherent dislike for work, so they have to be forced to work in order to get the desired results.