COURSE GUIDE BUS 831 ORGANISATIONAL THEORY & BEHAVIOUR
COURSEGUIDEBUS 831ORGANISATIONAL THEORY AND BEHAVIOURCourse TeamDr. Emmanuel Agwu Arisi-Nwugballa (CourseWriter/Developer) Ebonyi State University,AbakalikiDr. E.M . Aghedo (Course Editor) - CalebUniversity , Imota, LagosDr (Mrs) Caroline Aturu-Aghedo (ProgrammeCoordinator) – NOUNNATIONAL OPEN UNIVERSITY OF NIGERIA
BUS 831COURSE GUIDE 2018 by NOUN PressNational Open University of NigeriaHeadquartersUniversity VillagePlot 91, Cadastral ZoneNnamdi Azikiwe ExpresswayJabi, AbujaLagos Office14/16 Ahmadu Bello WayVictoria Island, Lagose-mail: centralinfo@nou.edu.ngURL: www.nou.edu.ngAll rights reserved. No part of this book may be reproduced, in anyform or by any means, without permission in writing from the publisher.Published by National Open University of NigeriaPrinted 2018ISBN: 978-978-8521-254-5ii
BUS 831COURSE GUIDECONTENTSPAGEIntroduction What you will Learn in this Course .Course Aims . . Course Objectives . Working Through this Course .Course Materials . Study Units Set Text Books .Assignment File . Presentation Schedule Assessment . Final Examination and Grading . How to get the most from this Course . Tutors and Tutorials . Summary .ivivivvvviiviixxxiixiixxxixiii
BUS 831COURSE GUIDEINTRODUCTIONBUS 831: Organisational Theory and Behaviour is a three credit course,available to all students of M.Sc. Business Administration programmeof the Faculty of Management Sciences. The course consists of 21 units,which cover the concept and theory of organisational theory andbehaviour. This course guide tells you briefly what BUS 831 is allabout, the materials you will be using and how to make use of them. Italso includes self-assessment and tutor-marked questions.COURSE AIMSThe aims of this course are to expose you to the nature of theory andreviews of major organisational theories, and to the concepts andpractices of organisational behaviour as the bases for guiding themanagement of organisations.COURSE OBJECTIVESAt the end of this course, you should be able to: explain the different organisational theories and their themesexplain the principles, theories, and practices of organisationalbehaviour.WORKING THROUGH THE COURSEYou are required to read the study units in each module, in addition torelevant textbooks and journal articles that will help you to understandthe issues and be well grounded. This study is simplified to aid yourunderstanding. There are self-assessment exercises and tutor-markedassignments in each unit. You will, at the end of the semester, beexamined on this course.COURSE MATERIALSTHE National Open University of Nigeria provides you with coursematerials namely; ivCourse GuideStudy UnitsReferences for further Reading
BUS 831COURSE GUIDESTUDY UNITSThe study units in this course are as follows:Module 1: Introduction to Organisational Theory and BehaviourUnit 1:Unit 2:Unit 3:Unit 4:Unit 5:Unit 6:Unit 7:Introduction to OrganisationClassical Organisation TheoryNeo-Classical Organisation TheoryHuman Resource/Organisational Behaviour PerspectiveModern Structural Organisation TheorySystems Theories of OrganisationIntroduction to Organisational BehaviourModule 2: Individual BehaviourUnit 1:Unit 2:Unit 3:Unit 4:Unit 5:PersonalityPerceptions and Individual Decision-MakingJob SatisfactionEmotions and MoodMotivationModule 3: Group BehaviourUnit 1:Unit 2:Unit 3:Unit 4:Unit 5:Unit 6:Unit 7:Foundations of Group BehaviourCommunicationsWork TeamsLeadershipPower and Politics in OrganisationsConflict and NegotiationOrganisational Structures/DesignModule 4: Organisation SystemsUnit 1:Unit 2:Organisational Culture/ClimateOrganisational Change and DevelopmentMODULESThis course is grouped into four modules namely: Module 1:Introduction to Organisational Theory and Behaviour; Module 2:Individual Behaviour; Module 3: Group Behaviour; and Module 4:Organisation Systems.v
BUS 831COURSE GUIDEASSESSMENTSYour assessment on this course will be two-pronged. First, you arerequired to study each unit, attempt the tutor-marked assignments andsend them to your Centre for marking. Second, you shall sit forexamination on this course at the end of the semester. The selfassessment exercises are meant for you to monitor your personalprogress on the course.TUTOR-MARKED ASSIGNMENTSThe tutor-marked assignments constitute your continuous assessment,and accounts for 30% of the total score for this course. You are requiredto attempt, at least, four tutor-marked assignments, three of which mustbe submitted to your Centre before you sit for the end-of-courseexamination. Your Facilitator will give you the tutor-marked assignmentto attempt and submit.FINAL EXAMINATION AND GRADINGYou are required to sit for examination at the end of this course. Theexamination accounts for 70% of the total score for this course. Yourscore in the examination will be added to your score in the tutor-markedassignment to make up your total score for the course. Your Centre willinform you of the examination period.COURSE MARKING SCHEMEASSESSMENTTutor-marked assignments 1-4End of course examinationTotalMARKSBest three (3) marks out of thefour (4) assignments, for a total of30% (10 marks each).70% of overall course marks100%HOW TO GET THE MOST FROM THIS COURSETo make the most from this course guide: viDesign your study scheduleStick to your scheduleGather your study materialsFollow the study units sequentiallyGo through the objectives of each study unit, after studying theunit, to convince yourself that you understood the unit. If thereare doubts, re-study that unit and/or seek support.
BUS 831 COURSE GUIDEMake your personal notes as you study the units; that will helpyou to revise for your examination more easily.Meticulously revise this study guide as part of your preparationfor the end of course examination.SUMMARYThis course, BUS 831: Organisational Theory and Behaviour, exposesyou to the review of major organisational theories, and to the conceptsand practices of organisational behaviour as the bases for guiding themanagement of organisations. A good understanding of the study unitswill equip you to pass your examination comfortably. More importantly,it will equip you to perform well at work and evolve into an effectiveand efficient manager.vii
MAINCOURSECONTENTSPAGEUnit 1:Unit 2:Unit 3:Unit 4:117Unit 5:Unit 6:Unit 7:Introduction to Organisation.Classical Organisation Theory.Neo-Classical Organisation Theory.Human Resource/Organisational BehaviourPerspective.Modern Structural Organisation Theory.Systems Theories of Organisation.Introduction to Organisational Behaviour.12151923Module 2: Individual Behaviour.26Unit 1:Unit 2:Unit 3:Unit 4:Unit 5:Unit 6:Personality.Perceptions and Individual Decision-Making.Job Satisfaction.Emotions and Mood.Emotions.Motivation.263036444955Module 3: Group Behaviour.63Unit 1:Unit 2:Unit 3:Unit 4:Unit 5:Unit 6:Unit 7:Foundations of Group Behaviour.Communications.Work Teams.Leadership.Power and Politics in Organisations.Conflict and Negotiation.Organisational Structures/Design.6373808695102108Module 4: Organisation Systems.118Unit 1:Unit 2:118125Organisational Culture/Climate.Organisational Change and Development.
BUS 831MODULE 1MODULE 1ORGANISATIONAL THEORYUnit 1Unit 2Unit 3Unit 4Unit 5Unit 6Introduction to OrganisationClassical Organisation TheoryNeo-Classical Organisation TheoryHuman Resource/Organisational Behaviour PerspectiveModern Structural Organisation TheoryTheories of Organisation and EnvironmentUNIT 1INTRODUCTION TO ionObjectivesMain Contents3.1Meaning of Organisation3.2Features of organisation3.3Types of OrganisationConclusionSummaryTutor-Marked AssignmentsReferences/Further Reading1.0INTRODUCTIONIt is logical that we start our discussion of Organisational Theory andBehaviour from a discussion of what an organisation is, whyorganisations are formed, the different types of organisations, etc. Ourunderstanding of these basic issues will aid our understanding of thiscourse.2.0OBJECTIVESAt the end of this unit, you should be able to: explain the meaning of organisationidentify the features of organisationsidentify the types of organisations.1
BUS 831ORGANISATIONAL THEORY BEHAVIOUR STUDY GUIDE3.0MAIN CONTENT3.1Meaning of OrganisationIt is important to understand, at this level of your education, thatdefinitions of concepts or phenomena are important but may not be asimportant as the understanding and description of the features orcharacteristics of those concepts and phenomena. This is especially so inmanagement and social sciences where there are few consensus ondefinitions, especially at the postgraduate level. This does not, in anyway, suggest that definitions are irrelevant but that we may have greaterconsensus on the features or characteristics of a concept or phenomenonthan on definitions.The word “organisation” is known to refer to a scale of operation thatrequires the involvement of two or more persons to achieve. This maybe due to the nature or scale (size) of the operation. For example, oneperson may cook and serve him- or herself, eat and wash dishes alone,but it may be impossible for one person to cook, serve, and wash dishesfor a big restaurant with many customers, alone. The restaurant ownermust employ people to assist him or her to run it. An operation may alsorequire the involvement of more than one person due to an inherent oracquired inability of an individual to carry out a particular task alone.For instance, a man who wants to start a family knows that he cannotkeep himself company. He needs another person to play that role. And ifhe wants to also have his own biological children, he may bebiologically unable to make children all by himself; he will have topartner a productive female to be able to do so. This biological inabilitycompels him to involve another person to form a family. Similarly,somebody who has a very good business idea may be unable to financethe idea (he looks for partners) or execute the idea alone, and mayemploy workers to assist him.Restaurant and family are organisations. Each was formed because of anindividual’s inability to cope with the scale or nature of the operation,making him or her to employ, partner, or marry another person(s) toform an organisation. So, organisations are formed to make up for theinabilities of individuals.The foregoing discussion reflects Robbins, Judge, and Vohra’s (2013)definition of organisation as “a consciously coordinated social unit,composed of two or more people that functions on a relativelycontinuous basis to achieve a common goal or set of goals” (p.5).2
BUS 8313.2MODULE 1Features of OrganistionFrom our definition of organisation, as stated above, organisations havethe following features, which agree with the restaurant and familyexamples above: It is a social unitIt is consciously established and coordinatedIt is composed of two or more personsIt functions on a relatively continuous basisIt is aimed at achieving a common goal or set of goals - may beproduction, distribution, consumption purposes, etc.3.3Types Of OrganisationAs mentioned earlier, both restaurants and families are organisations.Organisations can be classified by their primary objective: e.g. for-profitand not-for-profit organisations; or whether it is formal or informal, etc.i.ii.For-profit organisations are commercial organisations that areprimarily established to make profits as a way of increasing thewealth of its owners. Such organisations may do so by providinggoods and services to customers at a profit. Profit-makingorganisations in Nigeria are numerous. Examples include:Dangote Cement Plc., Peace Mass Transit Limited, DaarCommunication Plc., First Bank of Nigeria Plc., EnuguElectricity Distribution Company Ltd., among others.Not-for-profits organisations are organisations that are primarilyestablished to serve purposes other than profit-making. Suchorganisations may generate revenue from providing goods and/orservices to its customers or clients but at very low marginsintended to cover the costs of providing the goods and/orservices, not for profit. Some of such organisations are fullyfunded by the government. There are also many of suchorganisations in Nigeria, including government ministries,agencies, and parastatals such as government-owned hospitals,schools, universities, etc. Examples include: National OpenUniversity of Nigeria, National Hospital; Ministry of Power,Works and Housing Nigeria Police Force; and Federal RoadSafety Commission; among others. Other not-for-profitorganisations are charity organisations (also called nongovernmental organisations, NGOs) established by individuals,groups and corporate bodies to pursue specific causes. Examplesinclude: Amnesty International Nigeria, Association forReproduction and Family Health, religious bodies, etc.There are also formal and informal types of organisations.3
BUS 831 ORGANISATIONAL THEORY BEHAVIOUR STUDY GUIDEFormal organisations are consciously planned and coordinated,with well-defined jobs, structure, lines of authority andresponsibilities, etc., aimed at achieving defined objectives(s). Aformal organisation is guided by the structure, rules andprocedures of operations usually specified in its officialdocuments, e.g. memorandum of association, articles ofassociation, bylaws, etc. Informal organisations are opposite offormal organisations.Furthermore, there are several typologies of organisations in literature,including those developed by Talcott Parsons (1960), Blau and Scott(1963), Katz and Kahn (1978), etc.i.Parsons identified four types of organisations by their functionsor goals namely; production, political, integrative, and patternmaintenance. Production organisations are those produce goods,e.g. Dangote Cement PLC. Political organisations aregovernment agencies that pursue the realisation of public goodsand services, e.g. Federal Ministry of Power, Works andHousing. Integrative organisations are those that resolve conflictsand promote peaceful coexistence of society, e.g. The NigerianPolice, Judiciary, etc. Lastly, pattern maintenance organisationsare those that pursue the functions of society’s renewal andperpetuation via educational and cultural activities, etc., e.g.National Open University of Nigeria, churches, mosques,families, etc.ii.Blau and Scott’s typology classified organisations according tothe basic beneficiaries of organisations’ outputs. Accordingly,they identified mutual benefit associations, business, service, andcommonwealth organisations. Mutual benefit associations areorganisations whose members are its primary beneficiaries, e.g.Academic Staff Union of Universities (ASUU), PeoplesDemocratic Party (PDP), etc. Business concerns are organisationsthat are privately owned, profit making organisations whoseowners are expected to be the primary beneficiaries of suchorganisations, etc., Dangote Cement PLC. Service organisationsare those whose primary beneficiaries are members of the publicserved by such organisations, e.g. hospitals, schools, etc. Lastly,commonwealth organisations are organisations whose primarybeneficiaries are the general public, e.g. The Nigerian Police, theArmy, Air Force, Navy, etc.iii.Katz and Kahn’s typology of organisations, like that of Parsons,classified organisations according to functions and goals. LikeParsons, they also identified production, pattern maintenance, and4
BUS 831MODULE 1political organisations (as discussed earlier). They furtheridentified adaptive organisations whose goals are to createknowledge, develop and test theories, and apply knowledgetowards solving problems, e.g. Research Centres in Universities,Raw Materials Research and Development Council, etc.4.0CONCLUSIONFrom our discussions in this unit, we can conclude that organisations aresocial units; consciously established and coordinated; composed of twoor more persons; function on a relatively continuous basis; aimed atachieving a common goal or a set of goals. Organisations arenecessitated by the need to make up for individual inabilities arisingfrom the nature and/or scale of operations. Organisations can beclassified in several ways including for-profit and not-for-profit, formalor informal, and using different typologies, etc.5.0SUMMARYIn this unit, we have studied the meaning of organisation, features andtypes of organisations, including some of the different typologies oforganisation in literature.6.0TUTOR-MARKED ASSIGNMENT(1)(2)Explain the concept of organisation and discuss its features.Using three of the typologies you studied in this unit, discuss thetypes of organisations in Nigeria.7.0REFERENCE/FURTHER-READINGBlau, P.M. & Scott, W.R. (1963). Formal Organisations, London:Routeledge and Kagan Paul.Cole, G. (2004). Management Theory and Practice (6th ed.). London:Thomson.Gibson, J.L., Ivancevich, J.M., & Donnelly Jr., J.H. (1994).Organisations, (9th ed.). Boston: Irwin/McGraw-Hill.Hellriegel, D., & Slocum Jr., J.W. (2011). Organisational Behaviour(13th ed.). Mason, OH: South-Western, Cengage Learning.Katz, D. & Kahn, R.L. (1978). The Social Psychology of Organisations.New York: John Wiley & Sons.5
BUS 831ORGANISATIONAL THEORY BEHAVIOUR STUDY GUIDEKinicki, A. & Fugate, M. (2012). Organisational Behaviour: KeyConcepts, Skills & Best Practices (5th ed.). Boston:McGraw-Hill Companies, Inc.Parsons, T. (1960). Structure and process in Modern Society.New York: The Free Press.Robbins, S.P., Judge, T.A., & Vohra, N. (2013). OrganisationalBehaviour (15th ed.), Delhi: Dorling Kindersley (India) Pvt.Limited.6
BUS 831MODULE 1UNIT 2CLASSICAL ORGANISATION ectivesMain Contents3.1 Dominant Models, Underlying Assumptions3.2 Major Theorists And ContributionsConclusionSummaryTutor-Marked AssignmentReferences/Further Reading1.0INTRODUCTIONIn this unit, we shall consider the oldest major organisation theoryknown as the classical organisation theory. This organisation theorydominated into the 1930s but remains influential till today. Ourdiscussion of this theory will be followed by other organisation theoriesthat followed after it.2.0OBJECTIVESAt the end of this chapter, you should be able to: Explain the dominant models and underlying assumptions ofclassical organisation theoryIdentify the major theorists and their contributions to classicalorganisation theory3.0MAIN CONTENT3.1Dominant Models, Underlying Assumptions: Organisations exist for economic and production purposesThere is one best way to organise production, which can be foundthrough scientific inquirySpecialisation and division of labour maximises productionRational economic principles determine the behaviour ofindividuals and organisationsWorkers are seen as interchangeable pa
This course, BUS 831: Organisational Theory and Behaviour, exposes you to the review of major organisational theories, and to the concepts and practices of organisational behaviour as the bases for guiding the management of organisations. A good understanding of the study units will equip you to pass your examination comfortably. More importantly,
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