Business Physcology

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1.1 Describe the major theoretical approaches of your selected organization.

Human Behavior Approach
It bears the existing and newly developed theories and methods of the relevant social sciences upon the study of human behavior ranging from personality dynamics of individuals to the relations of culture.

Features
* As management is the process of getting things done by people, managers should understand human behavior. * Emphasis is put on increasing productivity through motivation and good human relations. * Motivation, leadership, communication, participative management and group dynamics are the central core of this approach.

Uses
It suggests how the knowledge of human behavior can be used in making people more effective in the organization. An individual’s behavior is not determined by organization factors alone but also by his attitude, pressure, conflicts of cultural environment etc. Hence these factors must be taken into account.

Social System Approach

Organization is essentially a cultural system composed of people who work in cooperation. For achieving organization goals, a cooperative system of management can be developed only by understanding the behavior of people in groups.

Features
* Organization is a social system, a system of cultural relationships. * Relationships exist among the external as well as internal environment of the organization. * Cooperation among group members is necessary for the achievement of organization objectives. * For effective management, efforts should be made for establishing harmony between goals of the organization and the various groups therein.

Uses
It has real significance to the practicing manager in the sense that managers operate in social system and the organization is likely to succeed if the demands of the society in which it operates are fully recognized.

Decision Theory Approach

* Management is essentially decision-making.
* Members of the organization are decision-makers and problems solvers. * Organization can be treated as a combination of various decision centers. The level and importance of organization members are determined on the basis of importance of decisions, which they make. * Quality of decision affects the organization effectiveness. * All factors affecting decision-making are the subject matter of study of management. Besides processes and techniques in decision making factors affecting decisions are information systems, social and psychological aspects of decision-makers.

Uses
* It demonstrates how managers can discharge their functions effectively and for this approach it provides various tools. Decision theorists have grappled with decisions pertaining to diagnosis and the resulting prescriptions for improving communication, incentives, reactions of the individuals to group and analysis of human values write stated objectives.

Contingency or Situational Approach

* Management action is contingent on certain action outside the system or subsystem as the case may be. * Organizational action should be based on the behavior of action outside the system so that organization should be integrated with the environment. * Because of the specific organization – environment relationship, no action can be universal. It varies from situation to situation.

Operational Approach

* Management is the study of what managers do. It emphasizes on management functions and various concepts and principles involved in performing these functions. * Management functions are universal irrespective of the type of organizational or level of management in an organization, though there may be differences on emphasis on a particular function in a particular organization or at particular level. * The conceptual framework of management can be constructed on the basis of the analysis of management process and identification of management principles. The central core of managing...
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