CHAPTER – 29

Industrial Psychology
 Introduction.
 Aims and objectives of industrial psychology.
 Individual behaviour, beliefs, values, attitudes.
 Commitment to work in Indian organization.
 Group behaviour.
 Types and functions of group.
 Informal groups, meaning and types.
 Hawthorne studies.
 Conflicts and conflicts management.
 Role of top management and trade unions
Introduction
 In any organisation men (human resource), plant and
machinery, materials, money are basic requirements.
 Individual behaviour and group behaviour have to
synchronise and inter-departmental coordination must
work in tandem. Lapse on any individual or group will
adversely affect the working of the whole system.
 Hence the study of industrial psychology has gained
significance.
 “Industrial Psychology” is the study of men at work as
individuals and in groups
 Concepts of personnel management have changed more
towards the human resource management as per changing
needs of time.
 HRM department is now pro-active and dynamic than what
it used to be two decades back.
Objectives of Industrial Psychology
 To take better care of safety and health factors.
 Evaluate morale and make efforts to improve the morale
and enthusiasm at work.
 To resolve inter-person and inter-group conflicts for better
teamwork and conducive environment.
 To help improve the work efficiency and productivity.
 To improve work environment.
Scope of Industrial Psychology
 To understand the problems associated with individuals not
fitting in a group or system.
 To rationalise towards right work for right person.
 To improve selection techniques for different jobs befitting
changing needs and futuristic expectations.
 Organise training and development needs of the
organization at different levels.
 To take motivational steps for improving morale,
attendance and involvement.
Individual Behaviour
 Amongst different individuals the performance level or
efficiency differs due to difference in characteristic like
brainwork, qualifications, general health, adjustment level
and family background.
 Individuals form groups and hence individual behaviour has
effect on groups. The groups are broadly classified as
under.
a) Primary Groups: In this category individuals are in face-
to-face relationships with one another. They interact
directly and have some liberty of action in interpreting
the roles required of them.
b) Secondary Groups: The relationships are more of
contracted type and where roles must be played in more
impersonal and routine manner. The organizations
prefer this type of individuals.
Individual Behaviour Differs
 Individuals differ and therefore, in industries, they are paid different
rates.
 Employees differ in many ways. Difference are in physical appearance,
education, family background, aptitude, abilities and the like.
 The difference in individuals reflect in their performance and
behaviour at work
 The differences in individual behaviour enable to identify training and
development requirements.
 Different individuals react differently for various situations. This
applies more to sad situations, one individual may take one month to
overcome mother’s death and another may take three months.
 The difference in individuals reflects in their performance and
behaviour at work.
 Employees are in acceptable and manageable range of expected
ability. A supervisor is satisfied with such workers and feels confident
of reaching targets in terms of quality and quantity.
 Another 20% employees are above average having more than 100%
ability
Performance/Behaviour of Individuals
Situational variables also affect performance/behaviour of
individuals. These are:
a) Job related variables
 Physical environment
 Work space and layout
 Design and condition of work equipment
 Methods of work
b) Organizational variables
 Character of organization
 Kind of training and supervision
 Type of incentives and bonus
 Social environment
Beliefs
Individuals’ ‘belief’ on certain matters shape their conduct
and decision making in organizational and personal work.
The beliefs could be factual or assumed and not as per
scientific reasoning. Some of the common beliefs individuals
will have are as under.
 World is round and we can travel endless.
 Women do not make good/tough managers.
 ‘Vastu’ system in house (buildings) will bring peace and
prosperity to those who live in such buildings.
 If we start the work at an auspicious time the work will be
a success.
 Most of the news covered by Doordarshan are guided by
politicians or their trusted bureaucrats.
 By taking bath in ‘Kumbh-Mela’ all the sins will be washed.
Attitudes
Attitude is evaluative statement relating to objects, people
and events and hence it reflects how one feels about
something. If one says ‘I like Hindi movies’ it is his attitude
based on opinion, interest and purpose involving expectancy
of certain kind of experience.

Types of Attitudes
a) Job Satisfaction
b) Job Involvement
c) Organizational Commitment
Changing the Attitudes
In order to change the attitude of individuals it is essential to
overcome barriers or adopt specific strategies for different
situations
i. Overcoming Barriers
ii. Use of Fear
iii. Influence of Friends or Peers
iv. Co-opting Method
v. Attitudes can be changed by using persuasive methods:
a) Establishing management credibility.
b) Use of positive tactful tone.
c) Making a very clear presentation employing logic in
explanation.
d) At times emotional appeals to be adopted in the interest
of organization.
Values
 Value is an enduring conviction that a specific mode of conduct
is personally and socially preferable to the alternative modes of
conduct.
 Individual’s values become criteria for actions, judgement and
comparisons for moral standards
 An individual can have set of values with relative significance.
Some examples are honesty, self respect, equality, obedience,
socio-cultural values followed for years, different occasions will
have varying priorities for some of these values.

Sources of Values
 Culture is the main source of values especially in formative years
of individuals. Amongst Indians, culture infuse harmony, co-
operation, peace, equity, democracy and respecting the laws.
 Values are inculcated from parents, teachers, friends, publicity
media and seniors
Values of Indian Managers
Important observations made in case of Indian employees are
as follows:
a) Pragmatic
b) Moralistic
c) Affective
d) Mixed
Group Behaviour
 “The term group refers to two or more individuals who
bear an explicit psychological relationship to one another.”
 The group will have cohesiveness and some amount of
interaction among its members who have position, ideas
and role play in the group. Relationships based position
and role.
 Common attitudes and group members have to be aware of
being part of the group.
Types and Functions of Group
Types of Group
a) Primary and Secondary Groups
b) Membership and Reference Groups
c) In and out Groups:
d) Formal and Informal Groups
e) Command and Task Groups

Functions of Group
Three types of functions are normally performed by groups.
These are:
f) Organizational functions
g) Psychological functions and
h) Mixed functions.
Implications of Group Dynamics
From various studies on groups five main implications can be drawn
and managements should take them into account.
 Group formation in any work set up in command and groups will
have an impact on individual behaviour. utilization of the group in
organizational work rather than ignoring them.
 Groups play a key role in perceptions and attitudes of employees the
management should attempt to improve the perceptions and
attitudes. will help to reduce conflicts.
 The groups will have great impact on productivity and quality of
output. Hence management should seek group collaboration to
reduce resistance to management decisions.
 Groups take care of individual’s needs and feelings which may not be
taken care by formal structure. management recognize this as one of
the informal redressal activity and support to the extent possible.
 Since groups facilitate communication to small groups and
individuals, the management should use it in organization interest
for communication.
Teamwork
Teamwork is a broader outlook after cohesive groups. A
cohesive group takes care of good coordination in that
particular group. Such many groups and departments have to
work as a team to achieve organizational goals. Teamwork
involves lot of interaction, discussions and change
management.

Different teams are formed:

a) Project Teams
b) Production Teams
c) Advisory Team
d) Action Teams
Conflicts in Organizations
 “Conflict can be defined as a process in which one party
perceives that its interests are being opposed by another
party.”
 Conflict is a perceived phenomenon. I
 Usually conflicts arise due to disagreements and
incompatibility in an organization. Interaction between
individuals and groups lead to agreements or conflict.
 Conflicts can happen (a) between two persons and (b)
between two groups. Traditional view of conflict says it is
avoidable, bad for the teamwork and organization interest.

Types of Conflicts
1) Intrapersonal Conflicts
2) Inter Personal Conflicts
3) Intra Group Conflicts
Conflict Resolution
i. Avoiding Style
ii. Forcing Style
iii. Accommodating Style
iv. Collaborating Style
v. Compromising Style