Behavioral Issues in Operations Management

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The subject “Organizational Behavior” discusses behavioral issues related to organizations and their management.

The textbook on the subject by Fred Luthans covers the following topics under the major areas.

Cognitive Processes

Perception and Attribution
Personality and Attitudes
Motivational Needs and Processes
Positive Psychology Insights: Optimism, Emotional Intelligence and Self Efficacy

Dynamics of Organizational Behavior

Decision Making
Stress and Conflict
Power and Politics
Groups and Teams

Managing Organizational Behavior

Managing Performance through Job Design and Goal Setting
Behavioral Performance Management
Effective Leadership Process

Operating departments employ the maximum man power in organizations generally. Therefore issues of people behavior have to be understood by them to select, train, and direct people effectively and efficiently. All the above behavioral issues are relevant in operations management and business education programs include the subject of organizational behavior as a core course.

As an illustration, the issue of downward communication can be examined.

Downward Communication

Luthans cited Katz and Kahn and gave five basic purposes of downward communication.

1. To give specific directives and instructions related to tasks and jobs.
2. To give information about organizational procedures and practices.
3. To provide information about the rationale of the job.
4. To tell subordinates about their performance (give feedback)
5. To provide ideological information to facilitate the indoctrination of goals.

Luthans says, managers are undertaking only the first two types of communication. Such a practice is having negative effect. Communicating the ideology of the organization (mission and vision), explaining the role of the job in the vision achievement and feedback about job performance greatly benefit the organization. Visionary Leadership for Operations Management explains how aligned vision is important dimension for effective organizational performance. In the downward communication, concern for the task, concern for people and mechanism to align vision are to be there.

Summary of each chapter of Organizational Behavior is available in:
Organizational Behavior Book by Fred Luthans – Review Notes

The Human Factor in Works Management – 1912

Operations management began in the later years of 19th century as shop management and works management. It is interesting to note that issues related to managing men were treated as the most important area in management and early papers presented in American Society of Mechanical Engineers were in the area of managing men. In 1912, James Hartnell, a member of ASME authored the book, The Human Factor in Works Management. He covered two topics, The value of Habit and The inertial of Habit in that book.

The human factor in works management
by Hartness, James, 1861-1934
Publication date 1912


The Function of the Mind in Determining,Teaching and Installing Methods of Least Waste



Definition of Psychology of Management Importance of the Subject Purpose of this Book
Definition of Management The Three Types of Management Possible Psychological Studies
of Management Plan of Psychological Study Here Used Underlying Ideas or Divisions of
Scientific Management Outline of Method of Investigation Conclusions to be Reached.



Definition of Individuality Place of Individuality in Psychology Individuality Under Tradi-
tional Management Individuality Under Transitory Management Individuality Under Scientific
Management Selection of Workers Separating Output Recording Output Separately Individual Tasks Individual Instruction Cards Individual Teaching Individual Incentives Individual Welfare Summary: (a) Effect of Individuality upon Work; (b) Effect of Individuality upon Worker.



Definition of Functionalization Psychological Use of Functionalization Functionalization
in Traditional Management Functionalization Under Transitory Management Functionaliza-
tion Under Scientific Management Separating the Planning From the Performing Functional-
ized Foremanship The Function of Order of Work and Route Clerk The Function of In-
struction Card Clerk > The Function of Time and Cost Clerk The Function of Disciplinarian
The Function of Gang Boss The Function of Speed Boss The Function of Repair Boss
The Function of Inspector Functionalizing the Worker Functionalizing the Work Itself
Summary: (a) Effect of Functionalization upon the Work; (b) Effect of Functionalization upon
the Worker.



Definition of Measurement Importance of Measurement in Psychology Relation of Measurement in Psychology to Measurement in Management Importance of Measurement in Management Measurement in Traditional Management Measurement in Transitory Management

Measurement in Scientific Management Qualifications of the Observer Methods of
Observation ‘Definitions of Motion Study and Time Study Methods of Motion Study and
Time Study Summary: (a) Effect of Measurement on the Work ; (b) Effect of Measurement
on the Worker; (c) Future Results to be Expected; (d) First Step Toward Obtaining These



Definition of Analysis Definition of Synthesis

Use of Analysis and Synthesis by Psychology

Importance of Analysis and Synthesis in Management Place in Traditional Management
Place in Transitory Management Place in Scientific Management The Work of the Analyst

Determining Factor in Amount of Analysis Field of Pyschology in Analysis Qualifications
of an Analyst Worker’s Interest in AnalysisThe Work of the Synthesist Results of Synthesist’s Work The Task Discussion of the Name ” Task ” Definition of ” Task ” in Scientific Management Field of Application of the Task Idea Qualifications of the Synthesist
Summary: (a) Effect of Analysis and Synthesis on the Work; (b) Effect of Analysis and Syn-
thesis on the Worker.



Definition of Standardization Relation of the Standard to the Task and the Incentive Relation of the Standard to Psychology Purpose of Standardization Standardization Under Tradtional Management Standarization Under Transitory Management Value of Systems Standardization Under Scientific Management

Relation of Standard to Measurement Scope of Standardization Under Scientific Management

Permanence of Results Needs of Standardization Likened to Needs in Field of Spelling –
Standard Nomenclature Advantages of Mnemonic Symbols Standard Phraseology The
Standard Man Standard Means of Conveying Information Definition of the Instruction Card

Detailed Description of the Instruction Card Value of Standard Surroundings Necessity for
Proper Placing of the Worker Standard Equipment Standard Tools and Devices Standard
Clothing Standard Methods Rest from Fatigue Standardization of Work with Animals
Standard Quality Standard “Method of Attack” ‘Summary: (a) Effect of Standardiza-
tion on the Work; (b) Effect of Standardization on the Worker; (c) Progress of Standardization



Definition of Record Records Under Traditional Management Records Under Transitory
Management Records Under Scientific Management Criterion of Records Records of Work
and Workers Records of Initiative Records of Good Behavior Records of Achievement
Records of ” Exceptions ” Posting of Records

Summary of Results of Records to Work and Worker Definition of Programme Programmes Under Traditional Management Programmes Under Transitory Management ‘Programmes Under Scientific Management Programmes and Routing Possibility of Prophecy Under Scientific Management Summary of Results of Programmes to Work and Worker

Relation Between Records and Programmes Types of Records and Programmes Interrelation of Types Illustrations of Complexity of Relations Possibilities of Eliminating Waste
Derivation of the Programme Summary: (a) Effect of Relations Between Records and Pro-
grammes on the Work; (b) Effect on the Worker.



Definition of Teaching Teaching Under Traditional Management Faults Due to Lack of
Standards Teaching Under Transitory Manageagement Teaching Under Scientific Management

Importance of Teaching Conforming of Teaching to Psychological Laws Conservation
of Valuable Elements of Traditional and Transitory Management Scope of Teaching Source
of Teaching Methods of Teaching Instruction Cards as Teachers Systems as Teachers
Drawings, Charts, Plans and Photographs Functional Foremen as Teachers Object Lessons as Teachers Training the Senses Forming Good Habits Importance of Teaching
Right Motions First Stimulating Attention Forming Associations Educating the Memory

Cultivating the Imagination Developing the Judgment Utilizing Suggestion Utilizing Native Reactions Developing the Will Adaptability of Teaching Provision of Places for
Teaching Measurement of Teaching Relation of Teaching to Academic Training and Vocational Guidance Summary: (a) Result of Teaching in the Work; (b) Result of Teaching to
the Worker; (c) Results to be Expected in the Future.



Definition of Incentive Importance of Incentives Direct and Indirect Incentives Definition of Reward Definition of Punishment Nature of Direct Incentives The Reward Under Traditional Management The Punishment Under Traditional Management The Direct Incentive Under Traditional Management Incentives Under Transitory Management Rewards
Under Scientific Management Promotion and Pay Relation of Wages and Bonus Day
Work Piece Work Task Wage – Gain Sharing Premium Plan Profit Sharing Differential Rate Piece Task Work with a Bonus Differential Bonus Three Rate Three Rate with Increased Rate Other Rewards Negative and Positive Punishments Fines and Their Disposal Assignment to Less Pleasant Work Discharge and Its Elimination Use of Direct Incentives Summary: (a) Effect of Incen-
tives upon the Work; (b) Effect of Incentives upon the Worker.



Definition of Welfare ” Welfare ” and “Welfare Work” Welfare Under Traditional Management Welfare Work Under Traditional Management Welfare Under Transitory Management Welfare Work Under Transitory Management Welfare Under Scientific Management Physical Improvement Mental Development Moral Development Interrelation of Physical, Mental and Moral Development Welfare Work Under Scientific Management Summary: (a) Result of Welfare to the Work; (b) Result of
Welfare to the Worker.

Chapter summaries are being prepared for Lilian Gilbreth’s Book

1. The Role of of the Mind – Psychology in Productivity Management – Scientific Management – Lilian Gilbreth

Introduction to Organizational Behavior – Online Book

May – Management Knowledge Revision – Cost and Management Accounting and Organizational Behavior

Updated on 19 May 2019, 2 April 2019