Organizational Behavior and Industrial Psychology

MASLOW’S NEED HIERARCHY THEORY

Abraham Maslow was a clinical psychologist in USA. His motivation theory is widely
accepted and studied. Maslow suggested that every individual has complex set of needs at
any particular moment and his behavior is determined by the existence of strongest
need. He stated that human beings have five types of needs and physiological need is the
strongest hence the individual behaves in a particular manner to satisfy that need. Needs
are hierarchal in nature and only one need dominates at any one point of time. Once the
strongest need is satisfied then the second need emerges as being the strongest need and
human behaviour is regulated in process of achieving satisfaction in series of need requirements.
Maslow further started that there is only one need satisfying process is underway
at any one time. They do not disappear once they are satisfied but their intensity is
reduced (relegated) below the subsequent need. He has arranged the needs as per Figure
7.2 given below.

Let us discuss the hierarchy of needs theory:

1. Physiological Needs - As per Maslow physiological need is strongest in every
human being and hence it has highest strength as compared to the other needs.
Individual behaves in a particular manner to satisfy basic bodily needs like hunger;
thirst, shelter and clothing. These needs keep dominating unless they are
reasonably satisfied. Human being is therefore motivated to work in that direction.
2. Safety Needs or Security Needs - Once the physiological need of an individual
is satisfied, the safety need /security need arises and is dominant at that point of
time. This need is related to the following:–
(a) Every worker is concerned about his personal safety and wants to be free of
physical danger.
(b) There are various dangerous processes in the work setting. Individual desires
to be free and work toward self-preservation.
(c) Safety need is also related to employee/employer relationship, which should be
cordial and free from any threat to job security.
(d) There should be certainty in the job and non existence of arbitrary action on the
part of management/employer.
(e) Administration policy of any organization must cover various points that are
related to safety of an individual like pay, pension, insurance, and gratuity.
Individual should be given opportunities for choice of job so that he derives
satisfaction. He must also be given adequate security against being fired, laid
off or demotion.
3. Social Needs - Once the safety need is satisfied, third need i.e. social need arises.
People want to belong to some social group where their emotional need of love,
affection, warmth and friendship are satisfied. Being member of sports club, social
organizations or being the company of friends and relatives, needs can satisfy
social. In the work setting individuals want to be member of work group and
contribute towards it so that the social need of the individual is fulfilled.
4. Esteem Need or Ego Need - Fourth need in the hierarchy of needs as suggested
by Maslow is Esteem need or Ego need. Individual wants self-recognition, appreciation
for the work done. It is related to self-respect, self-confidence, praise, power
and control. It these needs are satisfied it gives an individual a sense self-worth
and ego satisfaction.
5. Self-actualization Need - Self-actualization is the last need in the need hierarchy.
Once esteem need is satisfied, there appears the self-actualization need of
human being. It is related to an intense carving for something supreme one wants
to achieve in life. It is transcended and related to achieving the very best that may
be possible of human endeavour. People set high goals, achieve them and set a
higher goals again and to achieve the same by utilising fullest potential. It is
related to development of intrinsic capabilities. An individual seeking to satisfy
self-actualization need seek situations or jobs that are challenging in nature -
achievement of highest value out of the work. Mahatma Gandhi wanted to achieve
freedom for India by unique weapons of peace and non-violence. He strived hard,
faced various challenges but ultimately achieved his goal.

HERZBERG’S MOTIVATION— HYGIENE THEORY (Two factor theory)

Fredrick Herzberg and his associates developed Motivation Theory based on two main
factors in late 1950’s. This theory is also known as Two Factor Theory. Herzberg carried
out research in nine different organizations where 200 respondents comprising accountants
and engineers were subjects. A structured interview was carried out. The purpose of
the study was to identify various factors for goal achievement and also the factors that
could be included so that motivation levels do not fall.
Findings of the study: Herzberg concluded, “ There are two types of needs, independent
of each other”.
(a) Motivational Factors: There is a set of job conditions, which operates primarily
to build strong motivation and job satisfaction. These factors are called motivational factors.
106 ORGANIZATIONAL BEHAVIOUR
They are intrinsic in nature and help increase one’s output. These factors have positive
effect on morale, productivity, and job satisfaction and over all efficiency of the organization.
These factors are as under:
Achievement
Advancement
Possibility of Growth
Recognition.
Work Itself
Responsibility
(b) Maintenance Factors: There are some job conditions which operate primarily to
dissatisfy employees when these conditions are absent. These factors are also called hygiene
factors. When these factors are present they do not motivate in a strong way, when absent
they dis-satisfy, That is why these factors are called dissatisfiers. These factors are.
• Company Policy and administration.
• Technical supervision.
• Interpersonal relationship with superiors.
• Interpersonal relationship with peers.
• Interpersonal relationship with subordinates.
• Salary.
• Job security.
• Personal Life.
• Working condition.
• Status.
Above factors are not an intrinsic part of a job. They prevent losses due to work
restrictions. These factors are necessary to maintain a reasonable degree of satisfaction of
employees. As stated earlier they are demotivators if they are not present. For example
minimum level of working conditions must be maintained by the organization to ensure
that minimum level of satisfaction exists. If working conditions are poor, the employees
will be dissatisfied and it would have adverse effect on goal achievement. Potency of
various factors does not increase the motivational level. It is influenced by personality and
characteristics of individual employee. Herzberg has identified that employees are either
maintenance seekers or motivation seekers.

ANALYSIS
Herzberg’s Theory indicates the following:
(a) It has been found that most of the people are capable of satisfying their lower level
needs considerably as they are not motivated by maintenance factors/hygiene
factors.
(b) Any improvement in Hygiene factors do not motivate workers but their reduction
below a certain level will dissatisfy them. For example increase in status or salary
need not motivate an employee because he feels it, as a matter of happening but if
he was not to get an increase in salary or if his status is not increased he would be
dissatisfied. Hence the hygiene factors are called dissatisfiers. Therefore they do
not contribute towards motivation.
(c) The model suggested by Herzberg is not applicable in all conditions. There is a
mixing up of both factors in a job, which cannot be separated, as intrinsic and
extrinsic. Because the level of personal need and relative strength of each of the
needs is different from person to person.
(d) Job satisfaction and job dissatisfaction are two opposite points on a single continuum.
It has been seen that individuals are affected more by job environment or
job contents when we want to achieve this, what we are actually doing is keeping
hygiene factors constant and increasing the motivational factors in a job like improving
the work itself or having growth orientation or we delegate the job to an
individual and vest in him the full authority and responsibility.
(e) Herzberg’s theory of motivation is not conclusive as the scope was narrow. Only
200 respondents were interviewed and that to persons belonging to white collar
jobs [engineers & accountants] hence effect of various hygiene factors may be
positive on workers.
(f) The study is “Method bound”. It has not shown any positive results in actual work
environment.
(g) Herzberg’s study of motivation is important, as it has identified two main factors
as Motivational factors and Maintenance or Hygiene factors. They should not be
divided in strict water tight compartments. Certain overlap is bound to happen.
Since these are applied in relation to various human beings.

McGREGOR’S THEORY X AND THEORY Y

Douglas McGregor introduced Theory X and theory Y which are diagonally opposite to
each other. McGregor is aware that human beings are rational in their thought process
and they are social by nature. They display very high degree of behaviour relating to
achieving self-actualization. There is interaction of variety of need fulfillment phenomenon
and complex nature displayed by an individual in different situations.

Theory X
Theory X is a traditional theory of human being McGregor assumed that with respect to
Managerial action. Management is responsible for organizing various element of an
enterprise like money, material equipment and people. With respect to people, it is a
process of directing people, their efforts, motivating them, controlling their actions, modifying
their behaviors so that they fit in the organizations. In Theory X McGregor assumed
that people would be passive therefore management must persuade, reward and
punish the worker to achieve the desired behavior of workers.
Human nature –McGregor further stated that Human being have indolent nature, he
works minimum. McGregor summaries workers as lacks ambition, dislike responsibility,
prefers to be led. An individual is self-centered and indifferent to organizational needs, by
nature he resists change. Lastly, he gullible and not very bright.
In theory X, McGregor states that those who subscribe to the views expressed above,
the manager will have to structure, control and closely supervise employees.
External control has to be exercised towards immature and irresponsible behavior of
the employees, so that there energies can be regulated towards productive work. Theory
X is applicable to traditional organizational and characterized by centralized decision
making hierarchical pyramid and external control.
After Theory X was proposed, McGregor observed that some changes in human nature
have taken place. It was not due to the changes in human behaviour and reactions to
various situations but due to change in industrial organizations, management policies and
practices that have tremendous effect on human nature. At this point he proposed. Theory
Y as under:
Theory Y
(a) Expenditure of physical and mental efforts on the pant of employees is as natural
as play or rest. The average human being does not inherently dislike work.
(b) Workers seek direction and exercises self control. He dislikes punishment.
(c) Commitment to organizational objective is associated with rewards like pay promotion
etc, ego satisfaction and satisfaction of self-actualization needs.
(d) Average human being learns under proper conditions. He accepts seeks
responsibilities. At times, it will be seen that certain individuals display phenomenon
like avoidance of responsibility, lack of ambition and lay undue stress on security.
McGregor suggested that these are due to inherent human characteristics.
(e) Capacity to exercise high degree of imagination, ingenuity and creativity is widely
distributed among workers that must be identified and fully utilized.
(f) Intellectual potential of workers is partially utilized. In the above situation McGregor
recommends that the organization should reorient based on the human behavioural
change. More co-operation, maximum output with minimum control and self-direction
is predominant among workers. It is also seen that there is no conflict between
individual and organizational goals. The emphasis is on very smooth running of
organization with greater participation of individuals.

ERG THEORY OF MOTIVATION

Clayton Alderfer of Yale University carried out further studies on Maslow’s theory of need
hierarchy. He identified three basic needs of human being against five needs of maslow.

These are as under:

(a) E-Existence need - There are related to provision of basic material requirement
of human being and are related to Maslow’s Physiological and safety needs.
(b) R-Relatedness - This need is related to desire of an individual to maintain sound
interpersonal relationship. It is related to Maslow’s, Social need and External component
of Esteem need i.e., status, recognition and attention.
(c) G-Growth - Growth is an intrinsic desire for personal development. It is related
to intrinsic component of Esteem Need like advancement, self respect, autonomy,
achievement and self-actualization need.
Evaluation
(a) Alderfer advocated three need patterns of an individual as against five steps proposed
by maslow.
(b) Alderfer recommends that all the needs, need not be in rigid stepwise progression.
Any need may be stronger and individual is forced to fulfill that need.
(c) More than one need may be operative at any one time. It gratification of higher
need is stifled, the desire to satisfy lower level need may increase. ERG Theory
contains a frustration — regression dimensions (when there is a frustration in
higher level need, lower level needs may get more activated.)
Alderfer recommends satisfaction - progression patten of need. i.e. when one level
need is satisfied then higher level need arises (satisfaction-progression).

EXPECTANCY THEORY-VROOM
Vroom has propagated Expectancy Theory based on employee expectancy. He believes that
employee is motivated to exert high level of efforts when he believes that efforts will lead
to good performance and therefore organizational rewards that will satisfy achievement of
personal goals. The focus of the theory has three elements.
(a) Efforts - Performance relationship. It is related to the probability perceived by
individual that exerting a given amount of efforts will lead to performance
(Expectancy).
(b) Performance - Reward Relationship. The degree to which the individual believes
that performing a particular level will lead to attainment of desired outcome
(Instrumentality).
(c) Reward-personal goal relationship. The degree to which an organizational
reword will satisfy individual needs and its attractiveness for the individual
(Valence).

Individual invariably asks questions to himself like probability of good performance,

assessment based on the skill and non-performance criteria and personal likes and dislikes.
In second stage he evaluates performance-reward relationship in terms of award of
seniority or the amount of co-operation he is liked to get in the organization and lastly the
rewards attractive enough to fulfill his personal goal of promotion. Management must
therefore identify individual goal pattern and lay down performance criteria and reward
system. The key is to understanding of an individual’s goal linkage between efforts and
performance, between performance and rewards, and between rewards and individual
goal satisfaction.
Adam’s Equity Theory
Definition: The Adam’s Equity Theory posits that people maintain a fair relationship between
the performance and rewards in comparison to others. In other words, an employee gets de-
motivated by the job and his employer in case his inputs are more than the outputs.

The Adam’s Equity Theory was proposed by John Stacey Adams, and is based on the following
assumptions:
 ▪ Individuals make contributions (inputs) for which they expect certain rewards (outcomes).
▪ To validate the exchange, an individual compares his input and outcomes with those of others
and try to rectify the inequality.
There are three types of exchange relationships that arise when an individual input/outcomes are
compared with that of the other persons.

1. Overpaid Inequity: When an individual perceives that his outcomes are more as compared to his
inputs, in relation to others. The overpaid inequity can be expressed as:

Thus, an individual’s level of motivation depends on the extent he feels being treated fairly, in
terms of rewards, in comparison to others.

Argyris's Theory

Chris Argyris (born July 16, 1923, an US Business theorist) has developed his motivations
theory based on proposition how management practices affect the individual behaviour and
growth. In his view, the seven changes taking place in an individual's personality make him/her a
mature one. In other words, personality of an individual develops from immaturity to maturity as
follows :

Argyris views that immaturity exists in individuals mainly because of organizational setting and
management practices such as task specialization, chain of command, unity of direction and span
of management. In order to make individuals grow mature, he proposes gradual shift from the
existing pyramidal organization structure to humanistic system; from existing management system
to the more flexible and participative management. He states that such situation will satisfy not
only their physiological and safety needs, but also will motivate them to make ready to make more
use of their potential in accomplishing organizational goals.

Reinforcement Theory of Motivation (B F Skinner)

Reinforcement theory of motivation was proposed by BF Skinner and his associates. It states that
individual’s behaviour is a function of its consequences. It is based on “law of effect”, i.e,
individual’s behaviour with positive consequences tends to be repeated, but individual’s behaviour
with negative consequences tends not to be repeated.

Reinforcement theory of motivation overlooks the internal state of individual, i.e., the inner
feelings and drives of individuals are ignored by Skinner. This theory focuses totally on what
happens to an individual when he takes some action. Thus, according to Skinner, the external
environment of the organization must be designed effectively and positively so as to motivate the
employee. This theory is a strong tool for analyzing controlling mechanism for individual’s
behaviour. However, it does not focus on the causes of individual’s behaviour.

The managers use the following methods for controlling the behaviour of the employees:

Positive Reinforcement- This implies giving a positive response when an individual shows
positive and required behaviour. For example - Immediately praising an employee for coming
early for job. This will increase probability of outstanding behaviour occurring again. Reward is a
positive reinforce, but not necessarily. If and only if the employees’ behaviour improves, reward
can said to be a positive reinforcer. Positive reinforcement stimulates occurrence of a behaviour.
It must be noted that more spontaneous is the giving of reward, the greater reinforcement value it
has.
Negative Reinforcement- This implies rewarding an employee by removing negative /
undesirable consequences. Both positive and negative reinforcement can be used for increasing
desirable / required behaviour.
Punishment- It implies removing positive consequences so as to lower the probability of repeating
undesirable behaviour in future. In other words, punishment means applying undesirable
consequence for showing undesirable behaviour. For instance - Suspending an employee for
breaking the organizational rules. Punishment can be equalized by positive reinforcement from
alternative source.
Extinction- It implies absence of reinforcements. In other words, extinction implies lowering the
probability of undesired behaviour by removing reward for that kind of behaviour. For instance -
if an employee no longer receives praise and admiration for his good work, he may feel that his
behavior is generating no fruitful consequence. Extinction may unintentionally lower desirable
behavior.
Implications of Reinforcement Theory
Reinforcement theory explains in detail how an individual learns behavior. Managers who are
making attempt to motivate the employees must ensure that they do not reward all employees
simultaneously. They must tell the employees what they are not doing correct. They must tell the
employees how they can achieve positive reinforcement.

What is Theory Z?

The Theory Z was invented by the American economist and management professor William
Ouchi, following the X and Y theory by Douglas McGregor in the 1960s. The theory Z was
introduced in the 1980s by William Ouchi as the Japanese consensus style. He argued that western
organizations could learn from their Japanese counterparts. In 1981 William Ouchi, of Japanese
heritage, wrote his book ‘Theory Z: How American Business can meet the Japanese Challenge.‘
According to Ouchi, the theory Z promotes stable employment, high productivity and high
morality and employee satisfaction. The loyalty of employees is increased by offering them a job
for life with a strong focus on employee well-being both on the job as well as in their private lives.
Assumptions

The theory Z revolves around the assumption that employees want to enter into partnerships with
their employer and colleagues. Employees have a strong desire for connection. This requires a high
level of support from the manager and the organisation in the form of a safe working environment
and the right facilities. The possibility for development and training can also be included on this
list. Another assumption is that employees expect reciprocity and support from their organisation.
Employees find a work-life balance important and want to maintain this. Family, culture and
traditions are therefore just as important as working conditions. The theory Z also assumes that
employees trust that they can carry out their work properly with the right support from
management.

The X theory is also referred to as ‘hard’ management style and the Y theory as ‘soft’ or
‘enlightened’ management style. The theory Z is a continuation of this last style, which makes it
an even more participative style than the Y theory.

1. Collective decision-making

This is the core principle of the Z theory and connects to the previously mentioned Y theory. By
involving employees in decision-making, they feel part of the organisation and will do everything
they can to maintain the decision taken.
2. Long-term employment

Following the need for safety, as Maslow mentioned, it is vital for employees to possess the
certainty that they will have a job in the future. This job security or job guarantee generates loyal
employees who feel part of the organisation.

3. Job rotation

It helps employees to become generalists rather than specialize, although a specialism benefits the
organization as well. With job rotation, employees are given the opportunity to get to know all
facets of the organization, gain insight into each other’s work and improve their skills. For
example, there is a chance that they can be deployed in different departments and levels.

4. Slow promotion

It is not necessary for employees to shoot up on the hierarchical ladder like a rocket in a short time.
By taking more time, they get the chance to develop well and carry out their work with more
dedication. This leads to a permanent workforce with loyal employees, in which they have the
opportunity to develop at a single company over the course of their career. Should they end up at
a higher management level, then they can be expected to subsequently treat their own employees
in the same way and let them develop.

5. Focus on training

This leads to continuous improvement of employees’ performance. They get plenty of time to
develop, which will improve their qualities and skills in the organization’s favor.

6. Care for personal circumstances

Although an employee is present at work for eight hours a day, they also have a private life in
which their family plays an important role. According to the Z theory, an organisation cannot
ignore this. An organization, therefore, has the moral obligation to pay attention to the personal
circumstances of its employees and to provide support, understanding and dedication under
challenging situations.

7. Formalized measures

By giving clarity, employees know where they stand. This is why it is the task of an organization
to draw up rules and to indicate in advance what the end goal is and what is expected of employees.
This makes it possible to work more efficiently and effectively.

8. Individual responsibility

In line with the previously mentioned Y theory, it is essential for employees to have their own
responsibilities and to help contribute to the organisation. They are motivated to carry out the work
on time and well when they have their own responsibilities.
Group Dynamics: Types, Formation of Groups, Resultant factors and formation of team
spirit
A group may be defined as set of people who have the same interests or objectives and who
organize themselves to work together and strive towards a common goal.

According to Shaw, “Group is defined as two or more persons who are interacting with each other

in such a manner that each person influences and is influenced by each other.”

A group is characterized by the following features:

i. a common motive or goal and shared attitudes

ii. a hierarchical group structure i.e., clearly defined role for each member

iii. standard norms of behavior

iv. Influence of interaction with each other.

Groups exist in every organization and it is believed that “an organization will function best when

its personnel function not as individuals but as members of highly effective work groups with high

performance goals.”

As groups are essential for organizational functioning, they are either created by the organization

itself in order to facilitate division of labor for achieving its sub-goals and ultimately its ultimate
goal or groups are created automatically, as a result of the socio-psychological factors at the

workplace. The study of group dynamics provides understanding of groups.

The term ‘group dynamics’ is formed by the combination of the two words ‘group’ and ‘dynamics.’

While ‘group’ refers to two or more individuals sharing an explicit socio-psychological

relationship, ‘dynamics’ refers to the forces within the group that shape the patterns of interaction

between group members i.e., the power or capacity of a group member to change or influence
change in other members according to changed circumstances.
There are 3 views about group dynamics:

1. First view describes how a group should be organized and conducted, stressing more on

democratic leadership and members’ participation.

2. Second view describes the techniques used in group dynamics, for instance, role playing,

leaderless groups, brainstorming, group therapy, transactional analysis etc.

3. Third view describes group dynamics from the perspective of internal nature of groups; the

structure, processes, reasons and methods of their formation, their influence within the group, with

other groups and with the organization.

The three views can be summarized by describing group dynamics as a study of the nature and

development of groups.

Types of Groups:

There are two types of groups in every organization:

Formal groups and Informal groups

1. Formal Groups:

An organization creates and maintains formal groups to fulfill needs or tasks that are included in

its mission or organizational goals. In order to achieve its ultimate goal, an organization creates

sub-goals which it assigns to different units or departments. These formal groups created by the

organization itself are regulated by the organizational rules and regulations.

Life of the formal groups may be permanent or temporary depending upon the specific objectives

to be fulfilled. Examples of permanent formal groups are board of directors, managing committees

etc. and temporary formal groups are exemplified by task force or temporary committees created

to fulfill certain specified objectives.

2. Informal Groups:

Informal groups are created voluntarily and spontaneously due to the socio- psychological forces

operating in the workplace. Individuals working together often develop liking for each other and

socialize with each other to overcome the psychological fatigue, boredom and monotony

associated with their work.

Informal groups are formed as they satisfy the social needs of individuals while at work. As they

are not created by the organization, the working of informal groups is not regulated by

organizational rules and regulations.

As informal groups are smaller in size as compared to formal groups group-cohesiveness is easy

to maintain. In-spite of this, informal groups are not very stable. The instability is primarily due to

the personality differences between the members of the informal group.

An individual having the capacity to fulfill maximum needs of group members emerges as the

informal leader and remains till the members think him capable of it. They are neither formed nor

abolished by the management, rather if the management ever tries to abolish informal groups, then

it may lead to alienation of employees as a protest against the management’s actions.

Jeff Lane was at his wits end. As a newly appointed production manager, he had tried virtually
everything to get his workers to achieve the production targets. The equipment was operating

properly, and the group had the training and experience to meet expectations, yet it was not

performing well. What was wrong? And what could he do to correct the situation?

Managers and supervisors frequently face such a dilemma. What Jeff Lane and other

managers/supervisors sometimes fail to realize is that within every organization there are often

informal group pressures that influence and regulate individual behavior.

Informal groups formulate an unspoken set of standards establishing acceptable behaviour In Jeff’s

department, the informal group may have established a norm below that set by the organization.

They were working to reach the target set by their group as they had decided that the targets set by

their managers was not acceptable to their group members.

Dynamics of informal Groups:

Informal groups almost always arise if opportunities exist. If management prescribes production

norms that the group considers unfair, the group’s recourse is to adopt less demanding norms and

to use its ingenuity to discover ways in which it can sabotage management’s imposed standards.

Thus they counteract the tendency of the organization to get more output from the workers.

Informal groups have a powerful influence on the effectiveness of an organization. But the

informal group’s role is not limited to resistance. The impact of the informal group upon the larger

formal group depends on the norms that the informal group sets. So the informal group can make

the formal organization more effective, too.

A norm is an implied agreement among the group’s membership regarding how members in the

group should behave. From the perspective of the formal group, norms generally fall into three

categories-positive, negative, and neutral,’ In other words, norms either support, obstruct, or have

no effect on the aims of the larger organization.

For example, if the informal group in Jeff’s shop set a norm supporting high; output, that norm

would have been more powerful than any attempt by Jeff to force compliance with the standard.

The reason is simple, yet profound.

The norm is of the group members own choice, and is not one imposed upon them, There is a big

motivational difference between being told what to do and being anxious to do it.
If Jeff had been aware of group dynamics, he might have realized that informal groups can be

either his best friend or his worst enemy. He should’ have been sensitive to the informal groups

within his area and he should have cultivated their goodwill and cooperation and made use of the

informal group leadership.

That is, he should have wooed the leadership of the informal group and enlisted the support of its

membership to achieve the formal organization’s aims.

For harnessing the power of informal groups one should have:

1. An understanding of group dynamics and,

2. An ability to bring about changes in informal group norms that positively reinforce the formal

organization’s goals.

Formation of Informal Work Groups:

Individuals are employed by an organization to perform specific functions. The organization is

only concerned with the job done by an individual-the output. Because people have needs that

extend beyond the work itself, informal groups develop to fill certain emotional, social, and

psychological needs. The degree to which a group satisfies its members’ needs, determines the

limits within which individual members of the group will allow their behavior to be controlled by
the group.

Sense of Belonging:

Several major functions are served by informal groups. For example, the group serves as a means

of satisfying the affiliation needs of its members for friendship and support. People need to belong,

to be liked, to feel a part of something. Because the informal group can withhold this attractive

reward, it earns the power to exploit group members to comply with its norms.
Identity and self esteem:

Groups also provide a means of developing, enhancing, and confirming a person’s sense of identity

and self-esteem. Although many organizations attempt to recognize these higher needs, the nature

of some jobs-their technology and environment-precludes this from happening. The long

assembly line or endless rows of desks reinforce a feeling of depersonalization.

Stress Reduction:

By developing a consensus about their feelings, group members are able to reduce the anxiety

associated with their jobs. For instance, several individuals may share the feeling that their

supervisor is a slave driver or that their working conditions are inadequate.

All for One, One for All:

Joining forces in a small group makes the members feel stronger, less anxious, and less insecure

in the face of a perceived threat. As long as needs exist that are not served by the formal

organization, informal groups will form to fill the gap. Since the group fills many important needs

for its members, it influences member behavior.

Leadership of Informal Work Groups:

Informal groups possess certain characteristics that can be used to advantage. While many of these

characteristics are similar to those of formal organizations, others are unique. One attribute of
informal groups is rotational leadership.

The informal leader emerges as the individual possessing qualities that the other members perceive

as critical to the satisfaction of their specific needs at the moment; as the needs change so does the

leader. Only rarely does a single individual possess all of the leadership characteristics needed to

fill the various needs of the group.

Unlike the formally appointed leader who has a defined position from which to influence others,

the informal leader does not possess formal power. If the informal leader fails to meet the group’s

expectations, he or she is deposed and replaced by another.

The supervisor can use several strategies to affect the leadership and harness the power of informal

groups. One quick and sure method of changing a group is to cause the leader to change one or

more of his or her characteristics. Another is to replace the leader with another person.

One common ploy is to systematically rotate out of the group its leaders and its key members.

Considering the rotational nature of leadership, a leader may emerge who has aims similar to the

formal goals of the organization.

The supervisor can attempt to ‘co-opt’ informal leaders by absorbing them into the leadership or

the decision-making structure of the formal group and thereby make the formal organizations more

stable. However, a leader may lose favor with the group because of this association with

management, and group members will most likely select another leader.

Communications Network—the Grapevine:

In the informal group, a person who possesses information vital to the group’s functioning or well-

being is frequently afforded leadership status by its members. Also, the centrally located person in
the group is in the best position to facilitate the smooth flow of information among group members.

Knowing about informal group communication the supervisor can provide a strategically placed

individual with information needed by the group. This not only enhances the stature of this

individual perhaps elevating him or her to a leadership position but also provides an efficient

means of distributing information.

Providing relevant information to the group will also help foster harmony between the supervisor

and the informal group. By winning the cooperation of informal group leaders the supervisor will

most likely experience fewer grievances and better relationships.

Group Cohesiveness:

Another characteristic of informal groups is group cohesiveness-the force that holds a group

together. It is the degree of unity in a group. The more is the unity between the group members,

more is the power associated with the group.

According to Walker, “Cohesiveness may be defined as the resultant power of a group to think

and act as a single unit in pursuit of a common objective.”

According to Likert, “Cohesiveness is the attractiveness of the members to the group or resistance

of the members to leaving it.”

According to Seashore, ”Group cohesiveness is the attraction of the members to the group in terms

of the strength of forces on the individual members to remain active in the group and to resist

leaving it.”

A cohesive group is one in which all the members work towards a common goal by taking

responsibilities voluntarily and leave no stone unturned in their efforts to achieve their common

goal. An effective leader plays a major role in keeping the members close knit, thereby increasing

the group cohesiveness.

Group cohesiveness varies widely based on numerous factors-including the:

a. Size of the group-smaller groups has more cohesiveness.

b. Dependence of members upon the group-more the dependence more will be the group

cohesiveness

c. Achievement of goals-If all members are in unison regarding achieving common goals, their
group cohesiveness increases the chances of their being successful in achieving their goals.
d. Status of the group-high status group has more loyal members that confirm to the norms of the

group.

e. Management demands and pressures—group cohesiveness increases strongly whenever the

membership perceives a threat from the outside. This threat produces the high anxiety that strong

group cohesiveness can help reduce.

If the supervisor presses the group to conform to a new organizational norm that is viewed as a

threat to the security needs of group members, the group will become more unified in order to

withstand the perceived threat. With the passing of the threat the group tends to lose its

cohesiveness.

Supervisors can use the factors that affect group cohesiveness in favor of the management. For

instance a supervisor can involve the informal group members in the decision-making process.

Input from group members will not only reduce their feeling of alienation but also improve

communication between the supervisor and subordinates thereby reducing potential conflict.

Where group participation in decision making is not practical the supervisor should carefully

explain the reasons to play down what might be seen as a threat to the group.

COMMUNICATION NETWORKS

A communication network is the pattern of directions in which information flows in the

organization. Channels of communication (networks by which information flows) are either formal
networks or informal networks. Formal networks follow the authority chain and are limited to task-
related communications. The informal network (grapevine) is free to move in any direction, skip
authority levels, and is as likely to satisfy group members' social needs as it is to facilitate task
accomplishments.
Types of Communication Networks in Organizations
Types of Communication Networks in Organizations is shown below

Chain Network
In chain network, communication travels up and down through the hierarchy. Each person
communicates with only the person directly above or below in terms of reporting relationships.
The chain network rigidly follows the formal chain of command.

Y Network Communication

Y Network
In the Y network, the flow of communication resembles an upside down Y; information flows
upward and downward through the hierarchy, widening to encompass the number of employees
reporting to a supervisor.

Wheel Network
In a wheel network, information flows to and from a single person. Employees in the group
communicate primarily with that person rather than with each other. Such a communication
network is a fast means of getting information to employees, since the person at the hub of the
wheel can do so directly and efficiently. The wheel network relies on the leader to act as the central
conduit (channel) for the entire group's communication.

The chain network, the Y network and the wheel network are fairly centralized in that most
messages must flow through a pivotal (essential, crucial) person in the network. In the wheel
network, the most centralized, all messages must flow through the individual at the centre of the
wheel. In the chain network, some members can communicate with more than one member of the
network, but the individual in the center of the chain still tends to emerge as the controller of the
messages. In the Y network, the member at the fork of the "Y" usually becomes the central person
in the network.

Circle Network
In a circle network, employees communicate only with adjoining members of the organization.
The circle network is analogous to a group working in a physical arrangement such that workers
can communicate with their immediate neighbour but not with others in the group.

All channel network communication examples

The All-Channel Network or the Star Network

In an all-channel network, communications flow upward, downward and laterally among all
members of the group. This pattern of communication supports an egalitarian, (equal, unrestricted)
participative culture and fosters (promote, cultivate) cross-functional efforts.

The all-channel network is best if you are concerned with having high member satisfaction.
The circle network and the all-channel network are more decentralized in that there is freer
communication among the various members. In the circle network, each member can communicate
with the individual on either side. The all-channel network is the most decentralized of the
networks; each member can communicate with any other member.

Process # 1. Sender:
Communication starts with the sender, who is the initiator of the message. After generating an
idea, the sender encodes it in a way that can be comprehended by the receiver. Encoding refers to
the process by which the sender translates his thoughts into a series of verbal and non-verbal
actions that he feels will communicate the message to the intended receiver. For example,
translating the thought into any language.

Process # 2. Transmission:
The information that the sender wants to communicate is transmitted over a channel through which
the message travels to the receiver. A channel connects the sender to the receiver. Channels for
communication may include a memorandum, a computer, a telephone, a telegram, or a television.

The choice of a channel depends on the communication situation. For instance, when dealing with
confidential information, direct face-to-face interaction or a sealed letter are more effective
channels than a telephone conversation.
Process # 3. Noise:
Noise is anything that has a disturbing influence on the message. Since noise hinders
communication, the sender should choose a channel that is free from noise. Noise may occur at
the sender’s end, during transmission, or at the receiver’s end.

Examples of noise include:

i. Ambiguous symbols that lead to faulty encoding

▪ ii. A poor telephone connection

▪ iii. An inattentive receiver

▪ iv. Faulty decoding (attaching the wrong meaning to the message)

▪ v. Prejudices obstructing the poor understanding of a message

▪ vi. Gestures and postures that may distort the message

▪ Process # 5. Receiver:
▪ The receiver is the person to whom the message is transmitted. In order to decode the
message, the receiver has to be ready to receive the message. That is. the receiver should
not be preoccupied with other thoughts that might cause him to pay insufficient attention
to the message. Decoding refers to the process of translation of symbols encoded by the
sender into ideas that can be understood.

▪ Communication can be considered effective only when both the sender and the receiver
attach similar meanings to the symbols that compose the message. For example, a message
in technical jargon requires a recipient who understands such terms. Communication is not
complete unless it is understood by both the sender and the receiver.

▪ Process # 6. Feedback:
▪ A message generated by the receiver in response to the sender’s original message is known
as feedback. Feedback is necessary to ensure that the message has been effectively
encoded, transmitted, decoded and understood.

It helps a sender evaluate the effectiveness of his message, so that he can modify his subsequent
messages. Feedback also confirms whether there has been any change in the behavior of the
individual or in the organization as a result of communication.
The communication model discussed above provides the basic framework of the communication
process, identifies the key elements (sender, transmission, receiver, noise and feedback), and
shows their relationships. This framework helps managers pinpoint communication.

PERSONALITY THEORIES

What is this thing we call personality? Consider the following definitions, what do they have in
common?
"Personality is the dynamic organization within the individual of those psychophysical systems
that determine his characteristics behavior and thought" (Allport, 1961, p. 28).
“The characteristics or blend of characteristics that make a person unique” (Weinberg & Gould,
1999).
Both definitions emphasize the uniqueness of the individual and consequently adopt an idiographic
view.
The idiographic view assumes that each person has a unique psychological structure and that some
traits are possessed by only one person; and that there are times when it is impossible to compare
one person with others. It tends to use case studies for information gathering.
The nomothetic view, on the other hand, emphasizes comparability among individuals. This
viewpoint sees traits as having the same psychological meaning in everyone. This approach tends
to use self-report personality questions, factor analysis, etc. People differ in their positions along
a continuum in the same set of traits.
We must also consider the influence and interaction of nature (biology, genetics, etc.) and nurture
(the environment, upbringing) with respect to personality development.
Trait theories of personality imply personality is biologically based, whereas state theories such
as Bandura's (1977) Social Learning Theoryemphasize the role of nurture and environmental
influence.
Sigmund Freud's psychodynamic theory of personality assumes there is an interaction between
nature (innate instincts) and nurture (parental influences).

Freud's Theory
Personality involves several factors:
– Instinctual drives – food, sex, aggression
– Unconscious processes
– Early childhood influences (re: psychosexual stages) – especially the parents
Personality development depends on the interplay of instinct and environment during the first five
years of life. Parental behavior is crucial to normal and abnormal development. Personality and
mental health problems in adulthood can usually be traced back to the first five years.

Psychosexual Development
People – including children – are basically hedonistic – they are driven to seek pleasure by
gratifying the Id’s desires (Freud, 1920). Sources of pleasure are determined by the location of the
libido (life-force).
As a child moves through different developmental stages, the location of the libido, and hence
sources of pleasure, change (Freud, 1905).

Environmental and parental experiences during childhood influence an individual's personality

during adulthood.
For example, during the first two years of life, the infant who is neglected (insufficiently fed) or
who is over-protected (over-fed) might become an orally-fixated person (Freud, 1905).

Tripartite Theory of Personality

Freud (1923) saw the personality structured into three parts (i.e., tripartite), the id, ego,
and superego (also known as the psyche), all developing at different stages in our lives.
These are systems, not parts of the brain, or in any way physical.

The id is the primitive and instinctive component of personality. It consists of all the inherited (i.e.,
biological) components of personality, including the sex (life) instinct – Eros (which contains the
libido), and aggressive (death) instinct - Thanatos.
It operates on the pleasure principle (Freud, 1920) which is the idea that every wishful impulse
should be satisfied immediately, regardless of the consequences.
The ego develops in order to mediate between the unrealistic id and the external real world (like a
referee). It is the decision-making component of personality The ego operates according to the
reality principle, working our realistic ways of satisfying the id’s demands, often compromising
or postponing satisfaction to avoid negative consequences of society. The ego considers social
realities and norms, etiquette and rules in deciding how to behave.
The superego incorporates the values and morals of society which are learned from one's parents
and others. It is similar to a conscience, which can punish the ego through causing feelings of guilt.

Trait Approach to Personality

This approach assumes behavior is determined by relatively stable traits which are the fundamental
units of one’s personality.
Traits predispose one to act in a certain way, regardless of the situation. This means that traits
should remain consistent across situations and over time, but may vary between individuals. It is
presumed that individuals differ in their traits due to genetic differences.
These theories are sometimes referred to a psychometric theories, because of their emphasis on
measuring personality by using psychometric tests. Trait scores are continuous (quantitative)
variables. A person is given numeric score to indicate how much of a trait the they possess.
Eysenck’s Personality Theory
Eysenck (1952, 1967, 1982) proposed a theory of personality based on biological factors, arguing
that individuals inherit a type of nervous system that affects their ability to learn and adapt to the
environment.
During 1940s Eysenck was working at the Maudsley psychiatric hospital in London. His job was
to make an initial assessment of each patient before their mental disorder was diagnosed by a
psychiatrist.
Through this position, he compiled a battery of questions about behavior, which he later applied
to 700 soldiers who were being treated for neurotic disorders at the hospital (Eysenck (1947).
He found that the soldiers' answers seemed to link naturally with one another, suggesting that there
were a number of different personality traits which were being revealed by the soldier's answers.
He called these first-order personality traits
He used a technique called factor analysis. This technique reduces behavior to a number of factors
which can be grouped together under separate headings, called dimensions.
Eysenck (1947) found that their behavior could be represented by two dimensions: Introversion /
Extroversion (E); Neuroticism / Stability (N). Eysenck called these second-order personality traits.
Each aspect of personality (extraversion, neuroticism and psychoticism) can be traced back to a
different biological cause. Personality is dependent on the balance between excitation and
inhibition process of the autonomic nervous system (ANS).

Extraversion/introversion
Extraverts are sociable and crave excitement and change, and thus can become bored easily. They
tend to be carefree, optimistic and impulsive. They are more likely to take risks and be thrill
seekers. Eysenck argues that this is because they inherit an under aroused nervous system and so
seek stimulation to restore the level of optimum stimulation.
Introverts on the other hand lie at the other end of this scale, being quiet and reserved. They are
already over-aroused and shun sensation and stimulation. Introverts are reserved, plan their actions
and control their emotions. They tend to be serious, reliable and pessimistic.
Neuroticism/stability
A person’s level of neuroticism is determined by the reactivity of their sympathetic nervous
system. A stable person’s nervous system will generally be less reactive to stressful situations,
remaining calm and level headed.
Someone high in neuroticism on the other hand will be much more unstable, and prone to
overreacting to stimuli and may be quick to worry, anger or fear. They are overly emotional and
find it difficult to calm down once upset. Neurotic individuals have an ANS that responds quickly
to stress.

Psychoticism/normality
Eysenck (1966) later added a third trait / dimension -Psychoticism – e.g., lacking in empathy,
cruel, a loner, aggressive and troublesome. This has been related to high levels of testosterone. The
higher the testosterone, the higher the level of psychoticism, with low levels related to more normal
balanced behaviour.
According to Eysenck, the two dimensions of neuroticism (stable vs. unstable) and introversion-
extroversion combine to form a variety of personality characteristics.

Critical Evaluation
Twin studies can be used to see if personality is genetic. However, the findings are conflicting and
non-conclusive.
Shields (1976) found that monozygotic (identical) twins were significantly more alike on the
Introvert – Extrovert (E) and Psychoticism (P) dimensions than dizygotic (non-identical) twins.
Loehlin, Willerman, and Horn (1988) found that only 50% of the variations of scores on
personality dimensions are due to inherited traits. This suggests that social factors are also
important.
One good element of Eysenck’s theory is that it takes into account both nature and nurture.
Eysenck’s theory argues strongly that biological predispositions towards certain personality traits
combined with conditioning and socialisation during childhood in order to create our personality.
This interactionist approach may therefore be much more valid than either a biological or
environmental theory alone. It also links nicely with the diathesis stress model of behaviour which
argues for a biological predisposition combining with a environmental trigger for a particular
behaviour.

Eysenck Personality Inventory (EPI)

Cattell's 16PF Trait Theory

Cattell (1965) disagreed with Eysenck’s view that personality can be understood by looking at
only two or three dimensions of behavior.
Instead, he argued that that is was necessary to look at a much larger number of traits in order to
get a complete picture of someone’s personality.
Whereas Eysenck based his theory based on the responses of hospitalized servicemen, Cattell
collected data from a range of people through three different sources of data.

• L-data - this is life record data such as school grades, absence from work, etc.
• Q-data - this was a questionnaire designed to rate an individual's personality (known as
the 16PF) .
• T-data - this is data from objective tests designed to 'tap' into a personality construct.

Cattell analyzed the T-data and Q-data using a mathematical technique called factor analysis to
look at which types of behavior tended to be grouped together in the same people. He identified
16 personality traits / factors common to all people.
Cattell made a distinction between source and surface traits. Surface traits are very obvious and
can be easily identified by other people, whereas source traits are less visible to other people and
appear to underlie several different aspects of behavior.
Cattell regarded source traits are more important in describing personality than surface traits.

Cattell produced a personality test similar to the EPI that measured each of the sixteen traits.
The 16PF (16 Personality Factors Test) has 160 questions in total, ten questions relating to each
personality factor.
Allport's Trait Theory
Allport's theory of personality emphasizes the uniqueness of the individual and the internal
cognitive and motivational processes that influence behavior. For example, intelligence,
temperament, habits, skills, attitudes, and traits.
Allport (1937) believes that personality is biologically determined at birth, and shaped by a
person's environmental experience.

Authoritarian Personality
Adorno et al. (1950) proposed that prejudice is the results of an individual’s personality type. They
piloted and developed a questionnaire, which they called the F-scale (F for fascism).
Adorno argued that deep-seated personality traits predisposed some individuals to be highly
sensitive to totalitarian and antidemocratic ideas and therefore were prone to be highly prejudicial.
The evidence they gave to support this conclusion included:
• Case studies, e.g., Nazis
• Psychometric testing (use of the F-scale)
• Clinical interviews revealed situational aspects of their childhood, such as the fact that
they had been brought up by very strict parents or guardians, which were found of
participants who scored highly on the F-scale not always found in the backgrounds of low
scorers.
Those with an authoritarian personality tended to be:
• Hostile to those who are of inferior status, but obedient to people with high status
• Fairly rigid in their opinions and beliefs
• Conventional, upholding traditional values
Adorno concluded that people with authoritarian personalities were more likely to categorize
people into “us” and “them” groups, seeing their own group as superior.
Therefore, the study indicated that individuals with a very strict upbringing by critical and harsh
parents were most likely to develop an authoritarian personality.
Adorno believed that this was because the individual in question was not able to express hostility
towards their parents (for being strict and critical). Consequently, the person would then displace
this aggression / hostility onto safer targets, namely those who are weaker, such as ethnic
minorities.
Adorno et al. felt that authoritarian traits, as identified by the F-Scale, predispose some individuals
towards 'fascistic' characteristics such as:
• Ethnocentrism, i.e., the tendency to favor one's own ethnic group:
• Obsession with rank and status
• Respect for and submissiveness to authority figures
• Preoccupation with power and toughness.
In other words, according to Adorno, the Eichmanns of this world are there because they have
authoritarian personalities and therefore are predisposed cruelty, as a result of their upbringing.
There is evidence that the authoritarian personality exists. This might help to explain why some
people are more resistant to changing their prejudiced views.

Critical Evaluation
There are many weaknesses in Adorno’s explanation of prejudice:
• Harsh parenting style does not always produce prejudice children / individuals
• Some prejudice people do not conform to the authoritarian personality type.
• Doesn’t explain why people are prejudiced against certain groups and not others.
Furthermore, the authoritarian explanation of prejudice does not explain how whole social groups
(e.g., the Nazis) can be prejudiced. This would mean that all members of a group (e.g., Nazis)
would have an authoritarian personality, which is quite unlikely.
Cultural or social norms would seem to offer a better explanation of prejudice and conflict than
personality variables. Adorno has also been criticized for his limited sample.
Also, Hyman and Sheatsley (1954) found that lower educational level was probably a better
explanation of high F-scale scores than an authoritarian.
WORK STUDY

Definition of Work Study:

“Work study is a generic term for those techniques, particularly method study and work
measurement, which are used in all its context and which lead systematically to the
investigation of all the factors, which effect the efficiency and economy of the situation being
reviewed in order to effect improvement.”
The main objective of work study is to improve productivity of men, machines and materials. The
aim of work study is to determine the best method of performing each operation and to eliminate
wastage so that production increases with less fatigue. The work study is also used in determining
the standard time that a qualified worker should take to perform the operation when working at a
normal place.

Work study is a technique which deals with the following problems:

(a) As to how should a job be done, and

(b) How much time a job should take for completion.

Answer for the first question is found by Motion Study or Method Study or Work Simplification.
Answer for the second question is found by the Time Study or Work Measurement.

Role of Work Study:

1. To standardise the method of doing a work,

2. To minimise the unit cost of production,

3. To determine the standard time for doing a task,

4. To minimise the material movement, and operators movement,

5. To eliminate unnecessary human movements,

6. To utilise facilities such as man, machine and materials most effectively, and

7. To a systematic investigation of all factors.

Objectives of Work Study:

The following are the objectives of work study:
1. Increased efficiency,

2. Better product quality,

3. To choose the fastest method to do a job,

4. To improve the working process,

5. Less fatigue to operators and workers,

6. Effective labour control,

7. Effective utilisation of resources,

8. To decide equipment requirements,

9. To pay fair wages,

10. To aid in calculating exact delivery,

11. To formulate realistic labour budgeting, and

12. To decide the required manpower to do a job.

Advantages of Work Study:

The advantages of work study are the following:
1. Work study ensures higher productivity,

2. Better working conditions with less fatigue,

3. Higher wages to workers,

4. Uniform production flow,

5. Job satisfaction and job security to workers,

6. Reduction in unit cost of production,

7. Quality products to consumers,

8. Fast delivery schedule,

9. Harmonious employer-employee relation, and

10. Better service to customers.

Power and Politics in Organizations
Power and Politics in Organizations

Power and politics in organizations are a reality that no organization can ignore. Though the
evolution of the modern corporation and the concomitant rise of the managerial class with a
professional way of running the firms is touted to be one of the contributory factors for the decline
on power politics in organizations, one cannot just simply say that there are no power centers or
people with vested interests even in the most professionally run and managed firms. The reason
for this is that power and politics are as old as human nature and recorded history and hence,
one cannot simply wish away the primal urge to resist those in power and in turn, try an
impose the will by those in power. This is the interplay of forces within organizations wherein
the top management and the senior leadership often tries to have it their way whereas those in the
middle and those who have been passed over for promotion as CEOs and other C level positions
try to resist such power moves.

Power Struggles in Family Owned Businesses

Of particular interest to our discussion is the way in which family owned businesses often have a
greater component of power politics in them. The reason for this is that family owned businesses
often have rival power centers allied to the different family members. For instance, in organizations
such as Fidelity which is a family concern, it is often the case that there are multiple power centers
with different factions being propped up by the different family members. Indeed, the reason for
choosing this example is the fact that in recent years, the succession struggle is gaining traction
and is responsible for most of the intra firm politics in that company.

Talking about succession struggles, there can be no better example than the case of the Reliance
conglomerate which witnessed an internecine power struggle between the various family members
after the demise of the family patriarch. Indeed, this case has become so famous that many western
universities have come up with case studies on why it happened, who gained and who lost and
whether it was in the benefit of the shareholders and the employees.

Impact of Power Struggles on the Stakeholders

Talking about the impact of power and politics on shareholders and other stakeholders, it is often
the case that the rank and file employees are the major losers in the power games. This is because
they find that those at the top are bickering and always fighting and hence, are demoralized to
work resulting in attrition and lackadaisical performance. In addition, it is the case that the rank
and file employees find that they are caught between rival factions and feel that they are being
sacrificed by the factions whose only interest is furthering their own agendas. Indeed, as the saying
goes, when elephants fight, it is the grass that suffers, whenever there is a power struggle in the
organizations, it is those at the bottom and the middle to some extent who suffer the most. Of
course, the smarter ones among them ally themselves to one faction or the other and hence, find
that it is safe to take sides rather than being caught in the crossfire. In addition, they also find that
it is better to hitch their fortunes to a particular faction so that they play the power game. Needless
to say, all this has an impact on the productivity and performance of the organization. This is the
reason why many shareholders and particularly the institutional ones among them who step in
whenever the power games become too intense and impact the financial and operational
performance of the firms.

Power and Politics are Integral to Human Nature

Having said that, it must be noted that not all power struggles lead to negative outcomes as it is
often the case that the winning faction might be a result of the losing faction becoming too
autocratic or despotic. This is the case in firms such as Hewlett Packard and Apple where the
power struggles resulted in the induction and return of the old guard to the benefit of the firms.
Moreover, it is always good to have a system of checks and balances within firms so that any
excessive centralization of power and control are minimized. It is also good to have specific
attempts at dissent because the more divergent the views and the more diverse the opinions, the
healthier it is for the firm to decide on the best course of action.

Indeed, it is better for the decision makers to listen to multiple perspectives rather than surrounding
themselves with yes men and sycophants who have their own interest in glorifying their masters.
Further, decision making which takes into account all the viewpoints is any day better than
unilateral styles. In conclusion, while power and politics are as old as humanity, it is also the case
that the balancing mechanism whenever there is a tendency to cross the limits means that such
power and politics should be assessed from this perspective rather than taking a negative view.

Defense Mechanisms
Sigmund Freud (1894, 1896) noted a number of ego defenses which he refers to throughout his
written works. His daughter Anna (1936) developed these ideas and elaborated on them, adding
ten of her own. Many psychoanalysts have also added further types of ego defenses.
Defense mechanisms are psychological strategies that are unconsciously used to protect a person
from anxiety arising from unacceptable thoughts or feelings.
We use defense mechanisms to protect ourselves from feelings of anxiety or guilt, which arise
because we feel threatened, or because our id or superego becomes too demanding. They are not
under our conscious control, and are non-voluntaristic.
Ego-defense mechanisms are natural and normal. When they get out of proportion (i.e., used with
frequency), neuroses develop, such as anxiety states, phobias, obsessions, or hysteria.

Why do we need Ego defenses?

Freud once said, "Life is not easy!" The ego -- the "I" -- sits at the center of some pretty powerful
forces: reality; society, as represented by the superego; biology, as represented by the Id.
When these make conflicting demands upon the poor ego, it is understandable if you feel
threatened, overwhelmed, as if it were about to collapse under the weight of it all. This feeling is
called anxiety, and it serves as a signal to the ego that its survival, and with it the survival of the
whole organism, is in jeopardy.
In order to deal with conflict and problems in life, Freud stated that the ego employs a range of
defense mechanisms. Defense mechanisms operate at an unconscious level and help ward off
unpleasant feelings (i.e., anxiety) or make good things feel better for the individual.

Examples of Defenses Mechanisms

There are a large number of defense mechanisms; the main ones are summarized below.

Identification with the Aggressor

A focus on negative or feared traits. I.e., if you are afraid of someone, you can practically conquer
that fear by becoming more like them.
An extreme example of this is the Stockholm Syndrome, where hostages identify with the
terrorists. E.g., Patty Hearst and the Symbionese Liberation Army.
Patty was abused and raped by her captors, yet she joined their movement and even took part in
one of their bank robberies. At her trial, she was acquitted because she was a victim suffering
from Stockholm Syndrome.

Repression
This was the first defense mechanism that Freud discovered, and arguably the most
important. Repression is an unconscious mechanism employed by the ego to keep disturbing or
threatening thoughts from becoming conscious.
Thoughts that are often repressed are those that would result in feelings of guilt from the
superego. For example, in the Oedipus complex, aggressive thoughts about the same sex parents
are repressed.
This is not a very successful defense in the long term since it involves forcing disturbing wishes,
ideas or memories into the unconscious, where, although hidden, they will create anxiety.

Projection
This involves individuals attributing their own thoughts, feeling, and motives to another person
(A. Freud, 1936). Thoughts most commonly projected onto another are the ones that would cause
guilt such as aggressive and sexual fantasies or thoughts.
For instance, you might hate someone, but your superego tells you that such hatred is
unacceptable. You can 'solve' the problem by believing that they hate you.

Displacement
Displacement is the redirection of an impulse (usually aggression) onto a powerless substitute
target (A. Freud, 1936). The target can be a person or an object that can serve as a symbolic
substitute. Someone who feels uncomfortable with their sexual desire for a real person may
substitute a fetish.
Someone who is frustrated by his or her superiors may go home and kick the dog, beat up a family
member, or engage in cross-burnings.

Sublimation
This is similar to displacement, but takes place when we manage to displace our emotions into a
constructive rather than destructive activity (A. Freud, 1936). This might, for example, be artistic.
Many great artists and musicians have had unhappy lives and have used the medium of art of music
to express themselves. Sport is another example of putting our emotions (e.g., aggression) into
something constructive.
For example, fixation at the oral stage of development may later lead to seeking oral pleasure as
an adult through sucking one's thumb, pen or cigarette. Also, fixation during the anal stage may
cause a person to sublimate their desire to handle faeces with an enjoyment of pottery.
Sublimation for Freud was the cornerstone of civilized life, arts and science are all sublimated
sexuality. (NB. this is a value-laden concept, based on the aspirations of a European society at the
end of the 1800 century).

Denial
Anna Freud (1936) proposed denial involves blocking external events from awareness. If some
situation is just too much to handle, the person just refuses to experience it.
As you might imagine, this is a primitive and dangerous defense - no one disregards reality and
gets away with it for long! It can operate by itself or, more commonly, in combination with other,
more subtle mechanisms that support it.
For example, smokers may refuse to admit to themselves that smoking is bad for their health.

Regression
This is a movement back in psychological time when one is faced with stress (A. Freud, 1936).
When we are troubled or frightened, our behaviors often become more childish or primitive.
A child may begin to suck their thumb again or wet the bed when they need to spend some time in
the hospital. Teenagers may giggle uncontrollably when introduced into a social situation
involving the opposite sex.

Rationalization
Rationalization is the cognitive distortion of "the facts" to make an event or an impulse less
threatening (A. Freud, 1936). We do it often enough on a fairly conscious level when we provide
ourselves with excuses.
But for many people, with sensitive egos, making excuses comes so easy that they never are truly
aware of it. In other words, many of us are quite prepared to believe our lies.

Reaction Formation
This is where a person goes beyond denial and behaves in the opposite way to which he or she
thinks or feels (A. Freud, 1936). By using the reaction formation, the id is satisfied while keeping
the ego in ignorance of the true motives.
Conscious feelings are the opposite of the unconscious. Love - hate. Shame - disgust and
moralizing are reaction formation against sexuality.Usually, a reaction formation is marked by
showiness and compulsiveness.
For example, Freud claimed that men who are prejudice against homosexuals are making a defense
against their own homosexual feelings by adopting a harsh anti-homosexual attitude which helps
convince them of their heterosexuality. Other examples include:
* The dutiful daughter who loves her mother is reacting to her Oedipus hatred of her
mother.
 * Anal fixation usually leads to meanness, but occasionally a person will react against this
(unconsciously) leading to over-generosity.

INTERVIEWING

The executive engaged in the normal conduct of business devotes much of his time to interviewing.
However, there is an appalling lack of effort given to systematic attempts at building improvements
into this age-old process. Interviewing remains one of those activities which we think we know all
about merely because we have been doing it so long; we have been lulled by habit. It seems
apparent that a modest effort aimed at an analysis of our interviewing techniques would yield
generous returns.

In the broad sense, interviewing is the process whereby individuals (usually two) exchange
information. The individuals may be concerned with a job opening, a promotion, a special
assignment, a product sale, information for intelligence purposes, a proposed merger, or other
questions. The information exchanged need not be limited to facts. In business, particularly, such
products of an interview as meaning and understanding are oftentimes more significant than
objective factual statements.

Interviewing in the contemporary business setting invariably takes place in an atmosphere filled
with a sense of urgency. The time allocated to the interview is necessarily limited. Consequently,
a nondirective approach finds little application; it is necessary to use the guided interview in the
vast majority of situations. This inherent time constraint sometimes brings about dysfunctional
consequences: the interviewer is so preoccupied with budgeting his time that the content and the
purpose of the interview are vitiated. Hence, we must define what we mean by an effective
interview. For the purposes of this article, an effective interview is one that optimizes the perceived
communication objectives of the individuals involved, with time as the principal constraint. We
shall focus on research findings concerning:

• The proper kind of preparation for the interview.

• Value of such procedures as having an outline of points to be covered and taking notes.
• Use (and misuse) of questions and questioning techniques.
• The kind and amount of control that the interviewer should exercise over the discussion.
• Analysis and evaluation of information obtained.
Planning & Preparation

The lack of adequate planning for an interview is the greatest single fault found in my studies of
the interviewing process.1 All too often, the inexperienced interviewer launches into a discussion
only to find midway through that his preparation is incomplete. A moderate amount of preplanning
can easily obviate such unfortunate occurrences.

When the objective of the interview is well-known in advance, it is usually a good practice to allow
the individual concerned ample time to prepare for the talk before the actual involvement. By
indicating, ahead of time and in writing, the points to be covered, the interviewer gives the
interviewee an added advantage and reinforces the specific purpose of the session. Too often the
expectations of the interviewee may be far different from those of the interviewer. This
misunderstanding, if not corrected, can be disastrous.

On the other hand, too much preplanning and detailing for an interview can be equally harmful.
The interviewee may then develop conventionally correct answers or platitudes which, of course,
reduce the informational content of the interview to virtually zero. In short, he needs a guide, a
“steer”—but no more than that.

A written outline of important points to be covered is not necessarily an indication of rigidity;

rather, it reflects consideration for all parties concerned. When explained, it generates a feeling of
confidence as well as fairness—particularly if two or more people are to be ranked in an evaluation.
The outline may even include typical questions in order to solicit comparable responses. Again,
however, a warning against excess is needed: too much reliance on a programed questioning
approach is often disconcerting to the interviewee and may lead to stereotyped answers. Ideally,
of course, each question should be designed for the situation and the respondent.

In presenting information, a speaker allocates blocks of time to various items on his agenda. If no
time limit is established, the presentation can continue indefinitely. Even worse, the truly important
information may never be told. This process takes place by dint of the normal human trait of
retaining the most significant bits of information for the end. Psychiatrists recognize this and are
particularly attentive in the last ten minutes of the therapy session. Borrowing from this insight,
the interviewer, although not able to set an hourly cycle as does the psychiatrist, should try
discreetly to indicate a time scale. This allows the interviewee to plan and to include relevant
information which otherwise might be withheld. If the interview is terminated too abruptly, the
probability of losing valuable information is very high.

A time limit can be suggested by citing the next appointment or by noting, perhaps, a previously
scheduled conference. Actions such as tapping—consciously or not—on one’s watch to indicate
time are out of order, of course; so is sitting precipitously on the edge of the chair. Sometimes it
may be in the best interest of both parties to set another date for an extended session or to plan on
completing only one or two stages of progress at a time.

Building Rapport

Certainly the general tone of the interview should be one of helpfulness and friendliness so as to
minimize the immediate barriers to forthright communication. In this connection it should be
mentioned that privacy is a first prerequisite to good interviewing. An important component of this
is freedom from distracting interruptions. (The telephone many times is such a distraction.)

In order to establish the critically important element of rapport with the interviewee, a genuine
attempt should be made to put the interviewee at ease—especially in job application, promotion,
or other interviews where significant differences in status exist. Unfortunately, sometimes this
rapport is attempted by such gaucheries as, “Now, don’t be nervous!” or, “Relax!”

Normally, at the beginning of an interview an allowance should be made for the interviewee to
adjust to the interview environment. The situation is new for the interviewee; it may be his or her
first experience of this kind. Unless there is a specified adaptation period, the interviewee may be
unable to reduce his or her level of anxiety, with the resulting loss of the entire session. Part of this
adaptive process is familiarization with the surroundings. It is an often overlooked truism that
whenever an individual is placed in a strange situation, he becomes apprehensive.

Overcoming this fear is often a most difficult procedure. By explaining, for example, the need for
commonplace objects such as pencil and note paper that are anxiety-provoking, the level of tension
may be reduced. Also, it is well to remember that the manner and simple courtesies extended by
the interviewer are greatly magnified in the eyes of the interviewee. Thus, a limited amount of
pleasantries may be condoned if they fulfill this useful purpose.

By jotting down significant bits of information, the interviewer can readily reconstruct what
actually took place. The record assists with details which would be hard to remember if not
recorded. The time that would be needed to fix them in mind without benefit of notes can be used
to greater advantage listening and thinking. Then, too, writing down items compliments the
interviewee; it means that his responses are considered important enough to be recorded. It is a
convenient reinforcing mechanism; it may even be used to guide the path of the interview.

Information of a picayune variety should naturally be avoided. Similarly, allowing the interviewee
to relate too much information can be dangerous. Any inadvertently revealed facts or incidents
may bring about severe anxiety feelings when he or she reflects on them later. Temptations to
divulge information too freely should be sidestepped as lightly as possible so that continued
rapport may be maintained. In addition, circumspection should be exercised at all times lest the
interviewer become too emotionally involved in the exchange. Disagreements tend to provoke
planning for verbal counterattacks with the result that the informational content is lost.

Guiding the conversation

The interviewee is overly sensitive to all reactions by the interviewer. Taking advantage of this,
the interviewer may easily steer the conversation along the most productive channels. Small
inflections in the voice give encouragement. By repeating phrases already expressed, one finds the
respondent expanding with details on a relevant issue. Sometimes, merely restating the reply
allows a time for reflection and quite natural expansion or clarification of a point perhaps lost in
the first verbalization. Phrasing a question by rewording it into a rhetorical one gives the
interviewee a period to think through a definite response (although caution should be observed that
the “right” words are not put into the mind of the interviewee).

Support given by nodding is most effective. Other nonverbal means of rendering assistance are
equally significant. The use of semiverbal expressions of a meaningless nature—for instance,
“Umm…”—can prove most useful. Because such utterances provide no direct interpretation, they
are received as the interviewee wants to receive them. He then emphasizes or magnifies the point
as he sees fit.

A succinct summary of information from time to time not only allows for clarity in the
communication process but also gives the informant a mirror of just what has occurred. Alterations
can be made easily by the interviewee once he hears what he has said. In the final stage, a precise
statement of what was agreed on or of the general conclusions reached often allows for a reduction
of confusion.

When details or figures have been discussed, the summary can often be in the form of a written
memorandum. If the interviewer wants to be sure of what the interviewee communicated or to
check on whether the interviewee really understood the data discussed, he can ask him to write the
memorandum.

Developing Information

The tools of the interviewer are his questions. They should be used with dispatch and yet with the
utmost care. Sarcasm or obscure humor should be avoided unless the interviewer is positive that
the interviewee perceives them as such. Usually, the latter’s interpretation of such activity is
entirely serious; he or she may respond at the time with a semblance of perceived humor, but the
real reaction is often deep concern and suspicion.

Through the judicious use of questions, the skilled interviewer not only obtains information but
also guides the talk along productive lines. Leading questions or questions designed with built-in
responses are usually not very effective. Similarly, the double negative type of interrogation is to
be shunned as it tends to evoke anxiety. To avoid slipping into such traps, even the best interviewer
should review his questioning techniques from time to time. Thus, self-analyzing by tape recording
or by having a third person observe an interview for diagnostic purposes can prevent poor
techniques from developing into set procedures. This process may be extended to the use of video
tape recordings with proportionately more significant results.

In a research project that concentrated on questioning techniques, I analyzed the recordings of

about 100 interviews held for the purpose of selecting job applicants, appraising executive
performance, or counseling employees in their careers. One of the conclusions from this study is
this: successful interviewers (as evaluated by information obtained) utilize at the outset of the
interview a pattern of broad, general questions. Apparently this allows the respondent to answer
with information which he feels is important, as well as providing him the opportunity to expand
into areas that he deems to be of vital concern. Once this information is released, the interviewer
can sharpen the focus with specific questions eliciting short answers. For example, the “yes or no”
kind of question should be reserved for the final exploration of a subject, while queries such as
“How do you feel about working with Joe Smith’s group?” might well obtain results most useful
at the beginning of a particular subject.

Fear of silence

It seems that silence in our society is to be avoided at virtually all times and all places.
Unfortunately, this feeling affects the interview. Usually fear of silence is felt most by the
inexperienced interviewer. All too often he tends to put forth another question while the respondent
is meekly attempting to formulate his own thoughts into a logical reply—all just to keep the air
filled with words.
The tendency to hurry questions and answers is compounded by the distorted sense of time that
people get during an interview. To understand the amount of distortion, one research group carried
out such simple tests as stopping a conversation for a short period. Interviewers’ estimates of the
period of silence magnified it by a factor of from 10 to 100!2 On the other hand, I find, when asking
participants in an interview to estimate the time elapsed, invariably the interviewee underestimates
the period. Consequently, the interviewer in particular should be cautious of pushing forward too
quickly. In many instances, if he will permit another few seconds to elapse, he will obtain vital
bits of information that would otherwise be lost or allowed to remain in a half-expressed state in
the interviewee’s thought processes.

During these periods of silence, the interviewer may profitably spend his time pondering the
question: “What is he really trying to tell me?” Often the content of the interview makes an
incomplete story when analyzed later on. Not only may the words fall far short of the desired goal,
but also they may convey misunderstandings. Allowances for the ever-present failures in semantics
must constantly be made, and further interrogation conducted, in order that a clear approximation
of the true meaning be obtained.

Art of listening

The often posed maxim to the effect that we hear what we wish to hear does not appear at first
glance to be a profound statement. Yet it summarizes the mechanics that lie behind poor listening
techniques. Individual biases and attitudes as well as role perceptions and stereotyping all
contribute to the phenomenon of selective perception. Thus, in order to obtain the best possible
information, it is necessary that one be aware of his own particular filters that tend to impede if
not prevent clear and relatively undistorted reception of information.

It is possible to hear at the rate of from 110 to 140 words per minute over sustained periods.3 The
thinking or thought projection rate is approximately seven times this figure. The result is a surplus
of thinking time over listening time. The manner in which this surplus time is utilized varies, of
course, with the individual. However, it is at this point that the interviewer tends to project his
ideas into the interview process, thereby filtering out the interviewee’s responses.

One result is that he makes assumptions about the respondent and his information that are
compatible not so much with the interviewee as with what the interviewer has already concluded
about the interviewee. Suffice it to say that it is altogether more rewarding to spend this extra time
in formulating hypotheses, which later can be confirmed or denied as more information is revealed,
or in constructing a frame of reference for the on-going interview, which allows acquired
information to be categorized easily as it is given.

Analyzing data

The information that is gathered should be approached and analyzed from two points of reference:
the objective and the subjective.
Objective View.

The objective category can be broken down into content and form:

1. Content—This term refers, of course, to the factual presentation—what is actually being said
and whether or not it is reliable. The overview of the interview or the pattern of the total situation
must be firmly grasped and then noted. In addition, it would seem that the following items are
valuable in evaluating information—

• A response that is overwhelmingly conventional is likely to be suspect, owing to the great

possibility of its being less than valid. For instance, in an employment interview, the
response, “My boss didn’t like me,” is suspect as a cliché. Similarly, the response, “I quit
that job because the pay was too low,” could be merely a platitude to satisfy the interviewer.
• If the respondent is impervious to interruption during the interview, then a measure of
doubt is cast as to the kind of information the interviewee is relating. Such behavior
generally indicates a need to cover all points in a predetermined pattern with such
compulsion that, if the interviewee were interrupted, he would never be able to reassemble
all the parts. Weaknesses in the “pseudo armor” should be investigated.
• A constant shifting of the subject or an extremely short attention span often denotes a
degree of suspicion.
• Should gaps or illogical sequences be prevalent, care should be exercised to augment or to
complete the lapses. The voids should be completed by direct interrogation, preferably later
in the interview, to check continuity and to arouse a minimum of suspicion by the
informant. Later validation by telephone may help with these questions.
• Conflicting times or facts as well as gaps or illogical sequences may indicate areas for
careful attention or further penetration.
• Useful visual barometers of an unduly high anxiety level are such things as—

a. color of face

b. erratic body movements

c. varying eye contact

d. dryness of the mouth

e. pitch of the voice

f. excessive perspiration

2. Form—By form I mean the “how, when, and why” of the information. Words take on different
meanings when differentiated along these lines. Form can be subdivided into verbal (what is heard)
and into nonverbal (what is observed) content. Nonverbal expressions are perhaps the purest kind
of information transmitted, since they are the most difficult to mask or disguise. By developing an
awareness of and a sensitivity to such signals as when a certain fact was mentioned, what prompted
the mention, how it was presented, and so forth, the skilled interviewer takes a most useful if not
an essential step. Indeed, this awareness might well be extended to include the nonverbal
transmissions of the interviewer himself.

Subjective View.

In evaluating information from a subjective point of view, the interviewer is attempting primarily
to assess feelings and attitudes. It is often argued that these intangibles have no obvious place in
an interview that takes place in a business environment. Yet, even though it is impossible to
determine exactly how feelings and attitudes do influence the information transmitted, it is
nonetheless crucially necessary that one be fully aware of the fact that these intangibles are
powerful, active agents in creating opinions.

Concluding the meeting

The final 10% of the interview is perhaps the most important, since the greatest amount of
information per unit of time is generally exchanged during this time interval. In a series of taped
interviews involving appliance sales and sales in which travel arrangements were a factor, it was
found that the sales person often did not hear vital information offered toward the end of the
interview or after the sale. This overlooked information brought about frequent misinterpretations,
which, in turn, accounted for many later cancellations and unsettled complaints. All of this could
have been avoided if a moderate amount of attention had been exercised so as to prevent a
premature termination of the interview.

Part of the conclusion usually consists of a plan of action—something to be done or achieved by

either or both parties. A clear, concise summary of this plan, as mentioned earlier, is a most useful
technique for achieving good results. The summary is helpful to both parties because it enables
them to realize exactly what has been accomplished as well as to focus on a final concordance.

Follow-Up

I have observed in my studies that a general failing of interviewers is their inability to document
just what occurred in a talk. In their usual—often premeditated—hurry to get to the next interview,
they neglect valuable notes. This impatience in many cases is merely behavior resulting from a
self-satisfying need to prove to themselves that they are busy.

Adequate notation of significant events, impressions, and agreed-on information are of great value
in reconstructing the interview at a later date and in providing a framework for planning the next
session. By documenting a series of events, one is able to see things which, if merely left to the
fragile human memory, may fuse into meaningless, disconnected scenes in a panorama of many
human happenings. To be sure, too much recorded information may well lead to a surfeit of data,
a situation I have also observed in several interviewing offices, but this extreme is easily prevented
if good judgment is exercised.

Another benefit of effective documentation is that it offers the opportunity to reflect on a previous
event. By reviewing and considering this information, one can oftentimes discover errors and flaws
in technique and improve his approach. Without such specific means for learning, the same
mistakes tend to become routinized until the point is reached where they become, unintentionally,
an integral part of the interviewer’s technique.

But of all types of learning, self-learning is the most valuable. Without a doubt the most important
key to effective interviewing is recognizing how one’s own attitudes and biases affect the
information he acquires. There is a moral in the story of the professor who lost his key by the front
door, but was discovered on all fours under the lamppost. He rationalized to the police officer as
follows:

“Sir, it is probably true that I lost the key by the front door, but—after all—there is no light there.
Here, there is light. And, besides, while I’ve been looking, I’ve found a 50-cent piece already.”

So often the interviewer is content to come up with “50-cent pieces” of helpful information about
techniques, personality, and so forth. Actually, however, the realkey to effective interviewing lies
closer to his own front door. Once discovered, it can help him attain truly effective results of a
professional nature.

1. See, for example, my report, An Analysis of Precision Learning, Evaluation of Information and
Decision-Reaching, in Two Groups, Using Closed Circuit Television (Los Angeles, Western
Management Science Foundation, 1962).

2. C. H. Best and N. B. Taylor, The Physiological Basis of Medical Practise (London, Baillier,
Tindall and Cox, Ltd., 1950).

3. B. A. Houssay, Human Physiology (New York, McGraw-Hill Book Company, Inc., 1951).
What do you mean by organizational Behaviour? How can you use various aspects of
Organizational Behaviour to achieve the desired goals of an organization?

INTRODUCTION
The study of Organizational Behaviour (OB) is very interesting and challenging too. It is
related to individuals, group of people working together in teams. The study becomes more
challenging when situational factors interact.

The scope of the organizational behaviour is as under:

(a) Impact of personality on performance
(b) Employee motivation
(c) Leadership
(d) How to create effective teams and groups
4 ORGANIZATIONAL BEHAVIOUR
(e) Study of different organizational structures
(f) Individual behaviour, attitude and learning
(g) Perception
(h) Design and development of effective organization
(i) Job design
(j) Impact of culture on organizational behaviour
(k) Management of change
(l) Management of conflict and stress
(m) Organizational development
(n) Organizational culture
(o) Transactional analysis
(p) Group behaviour, power and politics
(q) Job design
(r) Study of emotions

DEFINITIONS
“Organizational behaviour is a field of study that investigates the impact that
individuals, groups and organizational structure have on behaviour within the
organization, for the purpose of applying such knowledge towards improving an
organizational effectiveness”.
Organizational behaviour can be defined as – “the study and application of
knowledge about human behaviour related to other elements of an organization
such as structure, technology and social systems (LM Prasad)
Definition: Job Satisfaction
Job satisfaction is defined as the extent to which an employee feels self-motivated, content &
satisfied with his/her job. Job satisfaction happens when an employee feels he or she is having job
stability, career growth and a comfortable work life balance. This implies that the employee is
having satisfaction at job as the work meets the expectations of the individual.

Importance of Job Satisfaction

A satisfied employee is always important for an organization as he/she aims to deliver the best of
their capability. Every employee wants a strong career growth and work life balance at
workplace. If an employee feels happy with their company & work, they look to give back to the
company with all their efforts. Importance of job satisfaction can be seen from two perspectives
i.e. from employee and employer perspective:
For Employees: Job satisfaction from an employee perspective is to earn a good gross salary,
have job stability, have a steady career growth, get rewards & recognition and constantly have
new opportunities.
For Employers: For an employer, job satisfaction for an employee is an important aspect to get
the best out of them. A satisfied employee always contributes more to the company, helps
control attrition & helps the company grow. Employers needs to ensure a good job description to
attract employees and constantly give opportunities to individuals to learn and grow.
The positive effects of job satisfaction include:
1. More efficiency of employees of workplace if they are satisfied with their job.
2. Higher employee loyalty leading to more commitment.
3. Job satisfaction of employees eventually results in higher profits for companies.
4. High employee retention is possible if employees are happy.

Job Satisfaction Factors

Job satisfaction is related to the psychology of an employee. A happy & content employee at a job
is always motivated to contribute more. On the other hand, a dissatisfied employee is lethargic,
makes mistakes & becomes a burden to the company. The elements & factors which contribute to
job satisfaction are:
1. Compensation & Working conditions: One of the biggest factors of job satisfaction are the
compensation and benefits given to an employee. An employee with a good salary, incentives,
bonuses, healthcare options etc is happier with their job as compared to someone who doesn’t have
the same. A healthy workplace environment also adds value to an employee.
2. Work life balance: Every individual wants to have a good workplace which allow them time
to spend with their family & friends. Job satisfaction for employees is often due a good work life
balance policy, which ensures that an employee spends quality time with their family along with
doing their work. This improves the employee's quality of work life.
3. Respect & Recognition: Any individual appreciates and feels motivated if they are respected
at their workplace. Also, if they are awarded for their hard work, it further motivates employees.
Hence recognition is one of the job satisfaction factors.
4. Job security: If an employee is assured that the company would retain them even if the market
is turbulent, it gives them immense confidence. Job security is one of the main reasons for job
satisfaction for employees.
5. Challenges: Monotonous work activities can lead to dissatisfied employees. Hence, things
like job rotation, job enrichment etc can help in job satisfaction of employees as well.
6. Career Growth: Employees always keep their career growth part as a high priority in their life.
Hence, if a company helps groom employees and gives them newer job roles, it enhances the job
satisfaction as they know they would get a boost in their career.

There are several theories given which help in evaluating & measuring job satisfaction of
employees at workplace. Some of them are:
- Hierarchy of Needs by Maslow
- Hygiene Theory by Herzberg
These help in understanding the parameters or factors which influence job satisfaction of
employees at workplace.

Job Satisfaction Examples

There can be several examples of job satisfaction as it is related to the psychology of an individual.
A particular job can be satisfying for one employee based on the salary, location, workplace,
responsibilities, job level etc and the same be lead to dissatisfaction to some another employee.
Consider an employee who has joined an organization 1 year back and has been awarded for his
good work with bonuses and incentives. Also, the company has chosen him for an exclusive
training program which would help in boosting his career. Also, the employee is entitled for a
sabbatical leave as well to pursue his own dream. Hence, all these factors and HR policies would
lead to job satisfaction.

Measuring Job Satisfaction

It is critical for any company to measure job satisfaction as the efficiency, productivity and loyalty
of an employee depends on it. Companies can conduct surveys with questionnaires asking the
employees about their feedback and understand if they are satisfied or dissatisfied with their job.
Companies can ask the following questions to measure job satisfaction and can give multiple
options like Satisfied, somewhat satisfied, neutral, somewhat dissatisfied, dissatisfied:
1. Are you happy with your salary/incentives?
2. Is your contribution to the company recognized with awards?
3. Do you find your workplace conditions good, hygienic, competitive?
4. Do you have a good work life balance?
5. Are you happy with company policies for your career growth & training and development?
Apart from the above questions, specific open-ended questions about job satisfaction can also help
in understanding employee pain-points and how the company can improve to ensure a happy
employee.
Hence, this concludes the definition of Job Satisfaction along with its overview.
Explain goal setting theory and also state its various principles?

Ans. Goal setting Theory: In 1960‘s, Edwin Locke put forward the Goal-setting theory of
motivation. This theory states that goal setting is essentially linked to task performance. It states
that specific and challenging goals along with appropriate feedback contribute to higher and better
task performance. In simple words, goals indicate and give direction to an employee about what
needs to be done and how much efforts are required to be put in. The important features of goal-
setting theory are as follows:

The willingness to work towards attainment of goal is main source of job motivation. Clear,
particular and difficult goals are greater motivating factors than easy, general and vague goals.
Specific and clear goals lead to greater output and better performance. Unambiguous, measurable
and clear goals accompanied by a deadline for completion avoids misunderstanding.
Goals should be realistic and challenging. This gives an individual a feeling of pride and triumph
when he attains them, and sets him up for attainment of next goal. The more challenging the goal,
the greater is the reward generally and the more is the passion for achieving it.
Better and appropriate feedback of results directs the employee behaviour and contributes to higher
performance than absence of feedback. Feedback is a means of gaining reputation, making
clarifications and regulating goal difficulties. It helps employees to work with more involvement
and leads to greater job satisfaction.
Employees‘participation in goal is not always desirable.
Participation of setting goal, however, makes goal more acceptable and leads to more involvement.

Five Principles of Goal Setting

To motivate goals must take into consideration the degree to which each of the following exists:

Clarity
Challenge
Commitment
Feedback
Task complexity

1. Clarity
Clear goals are measurable, unambiguous, and behavioral. When a goal is clear and specific, with
a definite time set for completion, there is less misunderstanding about what behaviors will be
rewarded. We know what is expected, and we can use the specific result as a source of motivation.
When a goal is vague – or when it‘s expressed as a general instruction, like ―Take initiative‖- it
has limited motivational value.
To improve our or our team‘s performance, set clear goals that use specific and measurable
standards. ―Reduce job turnover by 15% or ―Respond to employee suggestions within 48 hours‖
are examples of clear goals.
When we use the SMART acronym in order to help us to set the goals, we ensure the clarity of the
goal by making it Specific, Measurable and Time-bound.
2. Challenge
One of the most important characteristics of goal setting theory is the level of challenge. People
are often motivated by achievement, and they‘ll judge a goal based on the significance of the
anticipated accomplishment. When we know that what we will do would be well received, there‘s
a natural motivation to do a good job.
Rewards typically increase for more difficult goals. If we believe we will be well compensated or
otherwise rewarded for achieving a challenging goal that will boost our enthusiasm and our drive
to get it done.

3. Commitment
Goals must be understood and agreed upon if they are to be effective. Employees are more likely
to ―buy into‖ a goal if they feel they were part of creating that goal. The notion of participative
management rests on this idea of involving employees in setting goals and making decisions.

One version of SMART – for use when you are working with someone else to set their goals – has
A and R stand for Agreed and Realistic instead of Attainable and relevant. Agreed goals lead to
commitment.
This doesn‘t mean that every goal has to be negotiated with and approved by employees. It does
mean that goals should be consistent and in line with previous expectations and organizational
concerns.
As we use goal setting in your workplace, make an appropriate effort to include people in their
own goal setting. Encourage employees to develop their own goals, and keep them informed about
what‘s happening elsewhere in the organization. This way, they can be sure that their goals are
consistent with the overall vision and purpose that the company seeks.
4. Feedback
In addition to selecting the right type of goal, an effective goal program must also include feedback.
Feedback provides opportunities to clarify expectations, adjust goal difficulty, and gain
recognition. It‘s important to provide benchmark opportunities or targets, so individuals can
determine for themselves how they‘re doing.
These regular progress reports, which measure specific success along the way, are particularly
important where it‘s going to take a long time to reach a goal. In these cases, break down the goals
into smaller chunks, and link feedback to these intermediate milestones.
SMART goals are Measurable, and this ensures that clear feedback is possible.
5. Task Complexity
The last factor in goal setting theory introduces two more requirements for success. For goals or
assignments that are highly complex, we should take special care to ensure that the work doesn‘t
become too overwhelming.
People who work in complicated and demanding roles probably have a high level of motivation
already. However, they can often push themselves too hard if measures aren‘t built into the goal
expectations to account for the complexity of the task. It‘s therefore important to do the following:
Give the person sufficient time to meet the goal or improve performance.
Provide enough time for the person to practice or learn what is expected and required for success.
The whole point of goal setting is to facilitate success. Therefore, you want to make sure that the
conditions surrounding the goals don‘t frustrate or inhibit people from accomplishing their
objectives. This reinforces the ―Attainable‖ part of SMART.
What is Attitude?

An attitude is a psychological state of mind. It is the way a person thinks about situations, and it
ultimately determines a person's behavior. In the workplace, employees can have either a positive
or negative attitude about specific work tasks, products or services, co-workers or management, or
the company as a whole.

Bad attitudes result in apathy to daily tasks. Employees are easily agitated by minor problems.
Tasks are completed at substandard levels.

Positive attitudes among employees make workdays more enjoyable. Tasks are performed to a
higher standard and without complaint. An example of a positive employee attitude occurs when
an employee views a negative customer service call as an opportunity to change the narrative for
the customer from a bad experience to a good one.

Role of Attitude in Employee Relationship

The performance of an individual is largely dependent on the relation he shares with his colleagues.
It is really important that individuals are friendly with their colleagues so that they can discuss
several issues with each other and come to a conclusion best suited to all. No individual can
perform alone. Tasks are accomplished at a much faster rate when the work load is shared among
all and each one contributes in his best possible way. Nothing productive has ever come out of
conflicts and disputes. They in turn lead to major rifts among employees and create stress at the
workplace. Why to unnecessarily spoil relations with people? You never know when you might
need the other person.

Attitude plays an important role in improving the relationship among the individuals.
Nothing is possible unless and until an individual has a positive attitude towards life. You might
have excellent communication skills, might be an intelligent worker, but if you don’t have a
positive attitude; you would definitely fail to create an impression of yours. People would be
reluctant to speak to you and you would be left all alone.

An individual should never ever have a negative attitude at workplace. It is dangerous. Your
organization pays you and in turn expects quality work from you, so why unnecessarily crib over
things. It is always better to accept things with a smiling face. If your boss assigns you some task,
it means that he finds you capable enough to handle the assignment. Consider yourself fortunate
and the chosen one. Don’t make faces as your superior might feel bad and eventually lose his trust
on you. Clear all your doubts with the person, who has delegated you the responsibility, rather
than criticising and making fun in front of others who are not involved.
Don’t always find faults in others. No two individuals are alike. The other person might not be
as intelligent or as educated as you are, try your level best to adjust with him. Adjustment does not
mean accepting any wrong things, rather it is compromising sometimes.

Sam and Sara were team members and sat at adjacent workstations. Sam had a habit of constantly
chatting over the phone with his friends and family, which sometimes irritated Sara.

Case - 1 Sara always thought that Sam did it intentionally to disturb her. She fought with Sam
terribly and now has strained relationship with her team member.

Case - 2 Sara spoke to Sam about her displeasure, convinced him and requested him to either speak
a little low or go outside for attending calls. Now a days Sara and Sam are best of friends and
together they contribute effectively to their team’s targets.

Case 2 is any day a far better option.

One should not be too rigid or adamant. Be a little more flexible. Don’t always assume that the
other person is wrong and only you are correct. You may be wrong sometimes. Listen to what the
other person has to say and then only come to a conclusion. Don’t take any decisions with a
blocked mind.

An individual should not make issues out of small things. It is always better to forget things.
Ignore things as long as they are not affecting your team’s performance. Don’t take things to heart.
The more you become negative for your colleagues, the more you fight with them and in turn spoil
your relationship.

One should be forgiving. If your boss is angry with you over something, do take the initiative and
say a sorry to him. A simple “Sorry” can actually do wonders. If you do not have the courage to
talk to him, send him a sms. Saying sorry will not lower your self-esteem, instead it would
strengthen the bond between you and your superior.

One should never backstab anyone just for the sake of a mere promotion or some money. It is
unethical. Human relationships are more important and should be valued.

Don’t carry your ego to work. Everyone is equal at workplace. Respect one and all as everyone
is an employee just like you. Don’t treat anyone as untouchables.

One should always keep his personal life separate from his professional affairs. Don’t drag
your personal tensions to work. Try to keep a balance between the two. You cannot afford to ill-
treat your colleague just because you had a fight with your spouse the previous night. Your fellow
team members have nothing to do with it. Learn to enjoy life. One should always look at the
brighter side of life.

Treat your colleagues as your friends. Give them time and try to mingle with them as much as
you can. Go out together for shopping or for a movie once in a while. You will feel attached to
them. The trust factor and the comfort level increases.
Remember there is always some light at the end of a dark tunnel. Never lose hope in life. Stay
positive, be good to others and enjoy a healthy relation with one and all

Employee Performance

Introduction

Managing employee performance is one of the key drivers for organizational success in the present
context of firms trying to adopt a resource centered view of the organizational. We have seen
elsewhere that integrating HRM practices with those of organizational goals and strategy increases
the competitive advantages for the firm. Similarly, managing employee performance within the
larger framework of organizational goals is critical for organizations that count people among their
key assets. As we have been mentioning throughout, firms in the service sector that lay a lot of
emphasis on people need to ensure that employee performance is managed in a holistic manner.

A Two Way Street

When we talk about employee performance, we need to remember that it is a two way process that
tie in the manager and the employee with the HR manager playing the role of a mediator. For
instance, any discussion about employee performance has to include the manager and the
employee or the manager and the managed. Hence, it is imperative that both parties to this
transaction realize their responsibilities and work together to ensure that the process is
smoothened. In the succeeding sections, we discuss the role of the manager and the employee and
how organizational focus on managing employee performance can play a role as well.

The Role of the Manager

The manager has a duty to ensure that his or her management of the employees is free of biases
and prejudices. It’s been the case across industries and verticals where the employees feel
discriminated against leading to attrition, lower employee morale and in the extreme cases,
lawsuits against the company. Hence, the manager has to “walk the talk” and not simply pay lip
service to the company’s policies on employee performance. During the course of working
together as a team, there are bound to be instances where friction between the manager and the
team and within the team manifests itself. It is incumbent upon the manager to ensure that this
does not morph into a corrosive effect that threatens the very existence of the team.

The Role of the Employee

The above section looked at the role of the manager. The manager has a duty to manage the team
effectively and so does the employee have corresponding responsibilities as well. Absenteeism,
Shirking Work, A negative attitude and a blasé approach to work are some things that the employee
must avoid. It is helpful to the employee to know that once he or she is categorized as having an
attitude problem, then it would be difficult for the employee to break the perception and perform
effectively. This does not mean that the employee has to take whatever comes his or her way. The
point here is that the employee must use the channels available for redressal instead of sulking at
work if he or she has grievances about the manager.
Organizational Focus

Though the role of the HR manager and the organization seems to be relatively small, it is a fact
that organizational goals and culture play a very important part in ensuring that employee
performance is managed to the benefit of the organization. Most of us have read about or heard
the benefits of working for MNC’s (Multinational Companies) in India. The reason why they are
highly talked about is the perception among potential and aspiring employees that these companies
treat their people well. Though the point here is not to belittle Indian companies, the objective of
this section is to highlight the ways in which organizations can shape the treatment of people in
theory and practice.

Conclusion

We have seen the centrality of managing employee performance to the success of the organization.
If organizations want to cut down on attrition and boost sagging employee morale, the first thing
they can do is to ensure that the employee performance management system is streamlined. Only
by a focused approach towards this key driver of organizational effectiveness can the firms ensure
that they do not lose out on the “war for talent” as well as “retention” of achievers.