PSYCHOLOGICAL PRACTICES IN ORGANIZATION

NOTES

Module 1
➢ Introduction to I/O psychology
➢ Understanding organizations from a psychological perspective
➢ Role of an HR professional

INTRODUCTION TO I/O PSYCHOLOGY

Industrial Psychology
Wikipedia defines industry as “the production of an economic good (either
material or a service) within an economy”. ​
Industrial psychology may be defined as “simply the application or extension of
psychological facts and principles to the problems concerning human beings
operating within the context of business and industry” (Blum & Naylor, 1968, p.
4). ​
So what do psychologists do in industries? ​
➔ Selection and testing​
➔ Personnel development: training, performance appraisal, attitude
measurement, employee counseling, career planning​
➔ Productivity study: worker fatigue, monotony, absenteeism, physical
aspects of work environment, e.g. lighting and temperature​
➔ Human relations: relations between supervisor and subordinates, and of a
labor union to management​
➔ Others: marketing research, accidents, and safety, etc.​
Organizational Psychology
➔ Organisation refers to “a consciously coordinated social unit, composed
of two or more people, that functions on a relatively continuous basis to
achieve a common goal or set of goals” (Robbins, 1991, p. 4). ​
➔ Based on this definition you can see that manufacturing and service firms,
retail stores, military units, hospitals, educational institutions,
Non-Governmental Organisations (NGOs), other governmental or state
agencies – are all organizations.​
➔ Organizational psychology may be defined as “the study of the structure
of an organization and of how the people interact, usually undertaken to
improve the organization” (Collins Dictionary).
 ➔ Organizational psychology examines the effects of work environments
and management styles on worker motivation, job satisfaction, and
productivity.​
➔ Industrial psychologists are mainly involved in testing, selection, job
evaluation, etc., while organizational psychologists are involved in
individual and organizational change. ​

Majors goals in IO Psychology

● To increase the productivity and well-being of the employees, there are
two approaches to how this can be accomplished.
1. The Industrial Approach: focuses on determining the competencies
needed to perform a job, staffing the organization with employees
who have those competencies, and increasing those competencies
through training.
2. The organizational Approach: creates an organizational structure
and culture that will motivate employees to perform well, give
them the necessary information to do their jobs, and provide
 working conditions that are safe and result in an enjoyable and
satisfying work environment.

Major Fields in IO Psychology

1. Personnel or Industrial Psychology: Study and practice in such areas as

analyzing jobs, recruiting applicants, selecting employees, determining
salary levels, training employees, and evaluating employee performance.
2. Organizational psychology is a discipline interested in how the
relationships among employees affect those employees and the
performance of a business. This includes studying worker satisfaction,
motivation, and commitment. This field also studies management,
leadership, and organizational culture, as well as how an organization’s
structures, management, and leadership styles, social norms, and role
expectations affect individual behavior. As a result of its interest in
worker wellbeing and relationships, organizational psychology also
considers the subjects of harassment, including sexual harassment, and
workplace violence.
3. Human factors psychology is the study of how workers interact with the
tools of work and how to design those tools to optimize workers’
productivity, safety, and health. These studies can involve interactions as
straightforward as the fit of a desk, chair, and computer to a human
having to sit on the chair at the desk using the computer for several hours
each day. They can also include the examination of how humans interact
with complex displays and their ability to interpret them accurately and
quickly. In Europe, this field is referred to as ergonomics.

Brief History

Industrial-organizational psychology, formerly called industrial psychology,

application of concepts and methods from several subspecialties of the
discipline (such as learning, motivation, and social psychology) to business and
institutional settings.
The study of industrial-organizational (I-O) psychology originated in the United
States in the early 1900s through the work of psychologists Hugo Münsterberg
(Father of IO Psychology) and Walter Dill Scott (both of whom were trained
by German physiologist and psychologist Wilhelm Wundt), while its practical
application developed largely through the work of American industrial engineer
Frederick W. Taylor. I-O psychology grew rapidly after World War I and even
more so after World War II.
Timeline
➔ Walter Dill Scott- The Theory of Advertising (1903)
➔ Walter Dill Scott- Increasing Human Efficiency in Business (1911)
➔ Hugo Munsterberg- Psychology and Industrial Efficiency (1913)
➔ Before WWI- "economic psychology," "business psychology," and
"employment psychology"
➔ WWI- IO psychologists made an impact
➔ Frank Gilbreth and Lillian Moller Gilbreth- improve productivity and
reduce fatigue
➔ Frederick Taylor- Scientific Management Theory
➔ Elton Mayo's Hawthorne Studies ー Electrical Plant in Illinois (1935)

Important People in IO Psychology

There have been several prominent figures in the field of IO Psychology,

including:

➔ Frederick W. Taylor: Taylor was a mechanical engineer who published

an influential book on improving industrial efficiency.
➔ Hugo Münsterberg: Munsterberg was an applied psychologist who
wrote an early text on how psychology could be used for industrial,
occupational, and organizational purposes. His work had an important
impact on the early development of the field.
➔ James McKeen Cattell: Cattell was an early proponent of looking at
how individual differences influence human behavior.
➔ Kurt Lewin: Lewin was an influential applied psychologist who
described several leadership styles that people may exhibit. His work also
focused on looking at all of the forces that influence a situation rather
than just taking individual behavior into account.
➔ Robert Yerkes: Yerkes was a psychologist known for his work in the
field of intelligence testing. He developed the Alpha and Beta
Intelligence Tests for the U.S. Army, which were used to evaluate
military recruits during WWI. Scores on the tests were used to determine
 respondents’ capabilities, including the ability to serve and leadership
potential.
➔ Elton Mayo: Elton Mayo, in full George Elton Mayo, (born Dec. 26,
1880, Adelaide, Australia—died Sept. 7, 1949, Polesden Lacey, Surrey,
Eng.), Australian-born psychologist who became an early leader in the
field of industrial sociology in the United States, emphasizing the
dependence of productivity on small-group unity. He extended this work
to link the factory system to the larger society.

List of Important Events

Timeline
➔ 1991- American Disability Act passed
➔ 1970- APA adopts the name I/O Psy
➔ 1964- Civil Rights Act Passed
➔ 1941- World War II war efforts begin
➔ 1924- Hawthorne Studies begin
➔ 1921- First 10 Ph.D. awarded Psychological Corporation Founded
➔ 1917- Mental Tests for Job Placement Developed
➔ 1913- First 10 textbooks published
➔ 1904-The term industrial Psychology was used for the first time by W L
Bryan who had written a paper in 1899

What is an Organization?​
An organization is nothing but a common platform where individuals from
different backgrounds come together and work as a collective unit to achieve
certain objectives and targets.​

What is culture?​
The attitude, traits, and behavior patterns that govern the way an individual
interacts with others are termed culture. Culture is something that one inherits
from his ancestors and it helps in distinguishing one individual from the other.​

What is Organisational Culture?

Organizational culture refers to the beliefs and principles of a particular
organization. The culture followed by the organization has a deep impact on the
employees and their relationships amongst themselves.​
Importance of Organisational Culture
➔ Organizational culture affects all aspects of your business, from
punctuality and tone to contract terms and employee benefits. When
workplace culture aligns with your employees, they’re more likely to feel
more comfortable, supported, and valued. Companies that prioritize
culture can also weather difficult times and changes in the business
environment and come out stronger.
➔ Culture is a key advantage when it comes to attracting talent and
outperforming the competition. 77 percent of workers consider a
company’s culture before applying, and almost half of employees would
leave their current job for a lower-paying opportunity at an organization
with a better culture. The culture of an organization is also one of the top
indicators of employee satisfaction and one of the main reasons that
almost two-thirds (65%) of employees stay in their job.
➔ The culture decides the way employees interact at their workplace.​
➔ The culture of the workplace also goes a long way in promoting healthy
competition at the workplace.​
➔ The culture of an organization represents certain predefined policies that
guide the employees and give them a sense of direction at the workplace.​
➔ The work culture goes a long way in creating the brand image of the
organization. The organization’s culture brings all the employees on a
common platform. The work culture unites the employees who are
otherwise from different backgrounds.​
➔ The work culture promotes healthy relationships amongst the employees.
It is the culture of the organization which extracts the best out of each
team member.​

Qualities of a great organizational culture

Every organization’s culture is different, and it’s important to retain what makes
your company unique. However, the cultures of high-performing organizations
consistently reflect certain qualities that you should seek to cultivate:

➔ Alignment comes when the company’s objectives and its employees’

motivations are all pulling in the same direction. Exceptional
organizations work to build continuous alignment to their vision, purpose,
and goals.
 ➔ Appreciation can take many forms: a public kudos, a note of thanks, or a
promotion. A culture of appreciation is one in which all team members
frequently provide recognition and thanks for the contributions of others.
➔ Trust is vital to an organization. With a culture of trust, team members
can express themselves and rely on others to have their back when they
try something new.
➔ Performance is key, as great companies create a culture that means
business. In these companies, talented employees motivate each other to
excel, and, as shown above, greater profitability and productivity are the
results.
➔ Resilience is a key quality in highly dynamic environments where change
is continuous. A resilient culture will teach leaders to watch for and
respond to change with ease.
➔ Teamwork encompasses collaboration, communication, and respect
between team members. When everyone on the team supports each other,
employees will get more done and feel happier while doing it.
➔ Integrity, like trust, is vital to all teams when they rely on each other to
make decisions, interpret results, and form partnerships. Honesty and
transparency are critical components of this aspect of culture.
➔ Innovation leads organizations to get the most out of available
technologies, resources, and markets. A culture of innovation means that
you apply creative thinking to all aspects of your business, even your
cultural initiatives.
➔ Psychological safety provides the support employees need to take risks
and provide honest feedback. Remember that psychological safety starts
at the team level, not the individual level, so managers need to take the
lead in creating a safe environment where everyone feels comfortable
contributing.

Types of Organisations

Type # 1. Line or Scalar Organisation:

Line organization is the simplest form of organization structure. The line
structure is based on the scalar principle, which states that authority and
responsibility should flow in a direct line vertically from the highest level of the
organization to the lowest level. The primary emphasis in line organization is
upon the superior-subordinate relationship. Every person in the organization is
in the direct chain of command.​
One of the advantages of the line organization is that it facilitates
decision-making and execution because there is a definite authority at each level
of the hierarchy. ​
However, the disadvantage is that if a wrong decision is made at the top level,
the same is carried out simply without anybody down the line venturing to point
out its deficiencies.​

Type # 2. Functional Organisation:

This is the most widely used form of organizational structure because of its
simple logic and common sense appeal. Here the tasks are grouped based on
common functions. So, all production activities or all financial activities are
grouped into a single function that undertakes all the tasks required of that
function.​
The functional structure suits best the small to medium organizations producing
one or a few products, where the goals of the organization emphasize functional
specialization, efficiency, and quality.​
The main advantages of this type of structure are that by grouping people
based on their specialist expertise, the organization can facilitate both their
utilization and their coordination in the service of the whole organization. ​
One of the major disadvantages of this form of organization is the growth of
sectional interest which may conflict with the needs of the organization as a
whole. For example, the members of the production department will see their
activities from the narrow perspective of their department rather than viewing
the same from the broader perspective of the entire organization.​
Type # 3. Line and Staff Organisation:
This type of organizational structure is in large enterprises. The functional
specialists are added to the line in line and staff organization. Line functions are
those which have direct responsibility for accomplishing the objectives of the
enterprises and staff refers to those elements of the organization that help the
line to work most effectively in accomplishing the primary objectives of the
enterprises.​
The main advantage of line and staff organization is that the staff specialists
relieve the line executives of the bother of concentrating on specialized
functions like selection, training, development, wage and salary administration,
accounting, public relations, etc. ​
However, the disadvantage of this structure is that since functionaries are not
accountable for the results, they may not be performing their duties effectively.​
Type # 4. Line, Staff, and Functional Organisation:
➔ Because of scientific methods, enough market competition, and
complications in the busi­ness, to obtain a sound system, the combination
of line, staff, and functional type of organization is required.
➔ In this system, as regards the discipline and output, the workers are kept
under the direct control of the foreman.
 ➔ As regards quality, the inspector will have the proper authority to control
the quality and he can directly order the workman as in the functional
organization.
➔ In the staffing relationship, there may be a research department for the
analysis of raw materi­als, semi-finished and finished products to
withstand market competition.
➔ In this way, all the three are combined and as this is complicated,
there­fore also called the complicated type of organization.

Type # 5. Committee Organisation:

A committee is a group of persons formed to advise on certain important
problems, which cannot usually be solved by an individual. It helps by pooling
the thoughts of several persons on problems involving several functions and
offers for criticism. Therefore, nowadays many large companies add a network
of committees to the line and staff organization.

Advantages:
1. Since “two” heads are better than “one”, quick and valuable decisions can be
taken.
2. By this, schedule and proper follow-up are instituted which causes speedy
ac­tion.
3. Decision taken is impersonal which leaves the chairman free from personal
criticism.
4. As the members are from the plant side, they know better what is going on in
the shops and can give the correct suggestions and team up with other persons
and de­partments.
5. There is a stimulus towards co-operative action.
6. Expert knowledge is utilized.
Disadvantages:
1. Sometimes the committees may be too large in strength which causes delayed
actions and wasted time.
2. It is an expensive form of organization as outside members are paid traveling
allow­ance and honorarium for attending the meetings.
3. Committees tend to hang on after their usefulness is over.
4. As members are from different departments, they may not conclude at all.
5. It functions very slowly.
6. As there is a joint responsibility of members. Hence, it amounts to
irresponsibility, as “Everybody's business is nobody's business”.

Factors affecting Organisational Behaviour

1. People: People make up the internal social system of the organization.
That system consists of individuals and groups and groups may be large
and small, formal and informal. Groups are dynamic. Group form,
change and disband. Since the organization is a combination of a group of
people, managers must handle the people in the right direction. This is
very challenging to guide people or employees who have different
educational backgrounds, talents, and perspectives. So managers must
understand, predict and control the people. They build up a relationship
among the employees and motivate themselves.

2. Structure: The structure defines the formal relationship and use of

people in the organization. There are managers, employees, and account
assemblers to accomplish different kinds of activities. They are related
structurally so that their work can be effectively coordinated. Because no
organization can be successful without proper coordination. Many
organizational structures have become flatter. This downsizing and
restructuring have occurred as a result of the pressure to lower costs while
remaining competitive. Other structures have grown more complex as a
result of mergers, acquisitions, and new ventures. Several organizations
have experimented with hiring contingent workforces (temporary,
part-time, or contract employees). Finally, many firms have moved from a
traditional structure to a team-based one.
 3. TechnologyTechnology provides the resources with which people work
and affects the tasks that they perform. They cannot accomplish work
with their bare hands. The technology used has a significant influence on
working relationships. The great benefit of technology is that it allows
people to do more and better work, but it also restricts people in various
ways’ It has cost as well as benefits. Examples of the impact of
technology include the increasing use of robots and automated control
systems in an assembly line. The dramatic shift from a manufacturing to a
service economy, the impressive advances in computer hardware and
software capabilities, the rapid move toward the widespread use of the
information highway (internet). And the need to respond to societal
demands for improved quality of goods and services at acceptable prices.
If any person has a lack of technological knowledge he/she cannot work.
Moreover, technology decreases per unit cost and improves the quality of
the products and services.

4. Environment: All organizations operate within an internal and external

environment. A single organization does not exist alone. An organization
is a part of a larger system that contains many other elements, such as the
government, the family, and other organizations. Numerous changes in
the environment create demands on organizations. Citizens expect
organizations should be socially responsible; new products and
competition for customers come from around the globe; the direct impact
of unions diminishes; the dramatic pace of change in society quickens.
There is a direct impact on several trade unions of organizations. So all
the elements of environments influence the attitude and provide
competition. It must be considered in the study of human behavior in an
organization.

Role of an HR Professional
Responsibility 1: Participate in Planning and Development
In the modern marketplace, human resource executives serve as strategic
partners. They participate in the identification, development, and execution of
corporate objectives. In this capacity, HR executives align the work of their
business unit to achieve company goals. Participation in company planning
allows human resource leaders to gain a profound understanding of the
organizational activities needed to aid in the sustainable growth of the
enterprise.

Responsibility 2: Provide Employees With Career Assistance

Periodically, human resource leaders conduct staff member evaluations. Today,
HR professionals take an active role in helping employees advance their careers.
Instead of simply grading employees on a checklist of performance points,
modern human resource specialists help workers identify areas for improvement
and develop specific action steps.
By helping employees with career development, modern HR professionals gain
deeper insight into available human capital and the availability of internal
candidates for potential role succession. This helps organizations gain a marked
advantage in filling future roles and meeting, forthcoming market demands.

Responsibility 3: Find and Recruit Employees That Advance Company

Objectives: Today’s human resource executives do more than post ads and
interview job candidates to fill open positions. Modern HR executives formulate
employer brands designed to attract the right job candidates.
In this responsibility, human resource leaders work to promote their respective
firms as highly favorable workplaces. HR executives often earn this kind of
accolade for organizations by creating a positive culture and providing
satisfactory compensation and benefits as ways to attract ideal work candidates.

Responsibility 4: Serve as Leaders of Change

Modern human resource leaders frequently lead change initiatives for their
organizations. As a result, current HR executives yield strong project
management skills in their corporate toolboxes. The professionals are skilled at
helping organizational stakeholders make the connection between change
initiatives and strategic needs, minimizing change resistance and employee
unrest.
Shaping organizational culture, managing staff member satisfaction, and
weighing the success of change initiatives are all a part of the human resource
professional’s scope of responsibility in the modern workplace.

Responsibility 5: Advocate for Employees

While fulfilling their roles as employee advocates, HR executives play an
integral part in the success of organizations. In this regard, human resource
professionals contribute to building a work environment where employees feel
satisfied and motivated.
To promote this outcome, HR leaders deploy effective practices such as
employee empowerment, goal setting, and open communication, resulting in a
positive culture that leads to the workforce delivering better consumer
experiences.

Responsibility 6: Provide Support for Domestic Violence Victims

The Centers for Disease Control (CDC) forecasts that domestic violence can
affect 1 in 4 women and 1 in 7 men in the United States. The issue has grown so
prevalent that employers can no longer afford to think of domestic violence as a
matter best left to the local authorities. As a result, today’s HR professionals
encourage those who’ve experienced domestic violence to seek help in the
workplace.
To encourage this, human resource professionals promote an organizational
culture where staff members do not feel intimidated or ashamed to approach HR
employees with domestic violence concerns.

Responsibility 7: Ensure No Cyberbullying At Work

Traditionally, workplace intimidation took place solely in the office. Today,
however, the connectivity of the Internet extends the influence of bullies to
victims’ workstations and homes, an activity called cyberbullying. Employees
and supervisors know that this can happen in the workplace, yet dealing with
office cyberbullying may prove challenging. Despite this, contemporary human
resource executives strive to eliminate this kind of negative activity in the
workplace.
Modern HR professionals are leaders in their organizations. The specialists
sponsor the organizational mission, vision, values, and goals among staff
members, and they monitor and adjust organizational activities to ensure the
success of various initiatives. Human resource specialists contribute to
enterprises by managing the most important asset of any organization, the
people who complete the daily tasks that result in productive outcomes. Their
work aids in the global success of their organizations.

Some typical Daily Tasks of an HR worker include:

➔ Consult with employers to identify needs and preferred qualifications​
➔ Interview applicants about their experience, education, and skills​
 ➔ Contact references and perform background checks​
➔ Inform applicants about job details such as benefits and conditions​
➔ Hire or refer qualified candidates​
➔ Conduct new employee orientations​
➔ Process paperwork​

HR managers will also:​

➔ Plan and coordinate the workforce to best use employees' talents​
➔ Resolve issues between management and employees​
➔ Advise managers on policies like equal employment opportunity and
sexual harassment​
➔ Coordinate and supervise the work of specialists and staff​
➔ Oversee recruitment and hiring process​
➔ Direct disciplinary procedures​

MODULE 2
TOPICS:
➢ Motivation and Job satisfaction
➢ Theories of motivation
➢ Theories of Emotion
➢ Emotional intelligence in the Organization
Motivation
➔ “In psychology, we define motivation as a hypothetical internal process
that provides the energy for behavior and directs it toward a specific
goal”. (BaronByrne)
➔ “Motivation refers to the driving and pulling forces which result in
persistent behavior directed towards particular goals”. (Morgan, King)
Basic Motivation Concept
● Need: A need is an organic state of deficiency or excess
● Drive: The word ‘Drive’ refers to a state of tension and activity that is
aroused by one of the needs.
● Incentive: It is our goal
Intrinsic motivation: Deciding to do something because you are interested in it
& enjoy doing it. Your reasons are internal, they come from within you, & you
are not driven by other people or by a result or outcome.
Extrinsic motivation: Deciding to do something because you are told you have
to do it by someone else. Doing something because of external factors, such as
needing to achieve a goal, wanting to get a reward, or seeking to avoid a
disadvantage.

Work Behavior that implies Motivation:

➔ Excellent Supervisor Rating
➔ Highly productive
➔ High quality
➔ Number of promotions
➔ Not missing work
 ➔ Arriving to work early
➔ Helping coworkers
➔ Accepting Feedback
➔ Participating in Training
Kinds of Motives
1. Inborn Motives / Biological Motives:
➔ Hunger
➔ Thirst
➔ Elimination
➔ Sleep
2. Acquired Motives / Social Motives:
➔ Need for Achievement
➔ Need for Affiliation
➔ Need for Power and Status
➔ Need for Aggressiveness
➔ Approval Motives or Need
3. Achievement Motive:
➔ Achievement motivation refers to a desire to achieve some goal. This
motive is developed in the individual who has seen some people in the
society attaining high success, reaching high positions and standards.
➔ On the other hand, low achievers do not accept challenges, put on average
standards, and accept failures easily. Parents must try to inculcate
leadership qualities in children for better achievement in their future life.
➔ They must allow children to take decisions independently, and guide them
for higher achievement from childhood so that the children develop high
achievement motivation.
4. Aggressive Motive:
➔ It is a motive to react aggressively when faced with frustrations.
Frustration may occur when a person is obstructed from reaching a goal
or when he is insulted by others. Even in a fearful and dangerous
do-or-die situation, the individual may resort to aggressive behavior. An
individual expresses such behavior to overcome opposition forcefully,
which may be physical or verbal aggression.
5. Power Motive:
➔ People with power motives will be concerned with having an impact on
others.
 ➔ They try to influence people by their reputation. They expect people to
bow their heads and obey their instructions.
➔ Usually, people with high power motives choose jobs, where they can
exert their powers. They want people as followers.
➔ They expect high prestige and recognition from others. For example, a
person may aspire to go for jobs like Police Officer, Politician, Deputy
Commissioner, etc.
6. Affiliation / Gregariousness Motive:
➔ Affiliation is a tendency to associate oneself with other members of the
group or same species. The individual will be interested in establishing,
maintaining, and repairing friendly relationships and will be interested in
participating in group activities.
➔ An individual will conform to social norms and other ethical codes of the
groups in which he/she is interested.
➔ To greater extent gregariousness is developed because many of the needs
like basic needs, safety, and security needs are fulfilled.
Is an employee predisposed to being Motivated?
Types Specifications
Openness to Experience Learn new things and enjoy new
experiences. Openness includes traits
like being insightful and imaginative
and having a wide variety of interests
Conscientiousness Reliable, prompt, and organized
Extraversion Extraversion includes the traits of
energy, talkative, and assertive.
Agreeableness Traits include being kind,
affectionate, and sympathetic.
Maslow’s Hierarchy of Needs Theory
● Abraham Maslow is well renowned for proposing the Hierarchy of Needs
Theory in 1943. This theory is a classical depiction of human motivation.
This theory is based on the assumption that there is a hierarchy of five
needs within each individual. The urgency of these needs varies.
● According to Maslow, individuals are motivated by unsatisfied needs. As
each of these needs is significantly satisfied, it drives and forces the next
need to emerge. Maslow grouped the five needs into two categories -
Higher-order needs and Lower-order needs.
● The physiological and the safety needs constituted the lower-order needs.
These lower-order needs are mainly satisfied externally. The social,
esteem, and self-actualization needs constituted the higher-order needs.
These higher-order needs are generally satisfied internally, i.e., within an
individual.
Implications of Maslow’s Hierarchy of Needs Theory for Managers
➔ As far as physiological needs are concerned, the managers should give
employees appropriate salaries to purchase the necessities of life. Breaks
and eating opportunities should be given to employees.
➔ As far as the safety needs are concerned, the managers should provide the
employees’ job security, safe and hygienic work environment, and
retirement benefits to retain them.
➔ As far as social needs are concerned, the management should encourage
teamwork and organize social events.
➔ As far as esteem needs are concerned, managers can appreciate and
reward employees for accomplishing and exceeding their targets. The
management can give the deserved employee a higher job rank/position
in the organization.
➔ As far as self-actualization needs are concerned, the managers can give
the employees challenging jobs in which the employees’ skills and
competencies are fully utilized. Moreover, growth opportunities can be
given to them so that they can reach their peak.
Evaluation of Maslow’s Theory
➔ Confusion regarding the no. of level
➔ A second problem with the theory is that some people do not progress up
the hierarchy as Maslow suggested.
 ➔ Another problem is that the theory predicts that once the needs at one
level are satisfied, the next need level should become more important.
➔ Through examining cultures in which large numbers of people live in
poverty (such as India), it is clear that people are still capable of
higher-order needs such as love and belongingness. However, this should
not occur, as according to Maslow
Educational applications
➔ Maslow's (1962) hierarchy of needs theory has made a major contribution
to teaching and classroom management in schools. Before a student's
cognitive needs can be met, they must first fulfill their basic physiological
needs.
➔ Maslow looks at the complete physical, emotional, social, and intellectual
qualities of an individual and how they impact learning.
Alderfer’s ERG theory
➔ Clayton Alderfer was an American psychologist who held academic posts
at Yale and Rutger. He’s known for his study of workplace race relations
and some job factors resulting in some job factors conflict in the
rebuilding of Maslow’s famous pyramid.
➔ Alderfer’s ERG theory on employee motivation looks at three levels of
need: Existence, Relatedness, and Growth. The ERG theory is an
adaptation of Maslow’s theory on the hierarchy of needs.
● Existence Needs: Include all material and physiological desires (e.g.,
food, water, air, clothing, safety, physical love, and affection).
Maslow's first two levels.
● Relatedness Needs: Encompass social and external esteem; relationships
with significant others like family, friends, co-workers, and employers.
This also means to be recognized and feel secure as part of a group or
family. Maslow's third and fourth levels.
● Growth Needs: Internal esteem and self-actualization; impel a person to
make creative or productive effects on himself and the environment (e.g.,
to progress toward one's ideal self). Maslow's fourth and fifth levels.
This includes desires to be creative and productive and to complete
meaningful tasks.
Differences between ERG theory and Maslow's model
 ➔ ERG Theory states that at a given point of time, more than one need may
be operational
➔ ERG Theory also shows that if the fulfillment of a higher-level need is
subdued, there is an increase in the desire for satisfying a lower-level
need.
➔ According to Maslow, an individual remains at a particular need level
until that need is satisfied. While according to ERG theory, if a
higher-level need aggravates, an individual may revert to increase the
satisfaction of a lower-level need.
Implications of the ERG Theory
➔ Managers must understand that an employee has various needs that must
be satisfied at the same time. According to the ERG theory, if the
manager concentrates solely on one need at a time, this will not
effectively motivate the employee.
➔ For instance: if an employee is not provided with growth and
advancement opportunities in an organization, he might revert to the
relatedness need such as socializing needs and to meet those socializing
needs, if the environment or circumstances do not permit, he might revert
to the need for money to fulfill those socializing needs.
Herzberg two factor theories
➔ In 1959, Frederick Herzberg, a behavioral scientist proposed a two-factor
theory or the motivator-hygiene theory.
➔ According to Herzberg, some job factors result in satisfaction while other
job factors prevent dissatisfaction.
Limitations of Two-Factor Theory
➔ The two-factor theory overlooks situational variables.
➔ Herzberg assumed a correlation between satisfaction and productivity.
But the research conducted by Herzberg stressed satisfaction and ignored
productivity.
➔ The two-factor theory is not free from bias as it is based on the natural
reaction of employees when they have inquired about the sources of
satisfaction and dissatisfaction at work. They will blame dissatisfaction
on external factors such as salary structure, company policies, and peer
relationships. Also, the employees will give credit to themselves for the
satisfaction factor at work.
➔ The theory ignores blue-collar workers. Despite these limitations,
Herzberg’s Two-Factor theory is acceptable broadly.
Implications of Two-Factor Theory
➔ The Two-Factor theory implies that the managers must stress upon
guaranteeing the adequacy of the hygiene factors to avoid employee
dissatisfaction.
➔ Also, the managers must make sure that the work is stimulating and
rewarding so that the employees are motivated to work and perform
harder and better.
➔ This theory emphasizes upon job-enrichment to motivate the employees.
➔ The job must utilize the employee’s skills and competencies to the
maximum. Focusing on the motivational factors can improve work
quality.
The McClelland Motivation Theory
● The American psychologist David McClelland studied how people satisfy
their needs. According to David McClelland, people have motivating
drivers that are directly linked to need regardless of age, gender, culture,
or race.
● McClelland identified three types of motivational needs:
➔ Need for achievement: McClelland found that some people have an
intense desire to achieve. He has identified the following characteristics
of high achievers:
High achievers take moderate risks, i.e. a calculated risk while
performing the activities in the management context. This is
opposite to the belief that high achievers take high risks.
 High achievers seek to obtain immediate feedback for the work
done by them, to know their progress towards the goal.
Once the goal is set, the high achiever puts himself completely into
the job, until it gets completed successfully. He will not be satisfied
until he has given his 100% in the task assigned to him.
A person with a high need for achievement accomplishes a task
that is intrinsically satisfying and is not necessarily accompanied
by material rewards. Though he wants to earn money, satisfaction
in the accomplishment of work itself gives him more pleasure than
merely the cash reward.
➔ Need for power: Power is the ability to induce or influence the behavior
of others. The people with a high power need to seek high-level positions
in the organization, to exercise influence and control over others.
Generally, they are outspoken, forceful, demanding, practical/realistic-not
sentimental, and like to get involved in the conversations.
➔ Need for affiliation: People with a high need for affiliation derive
pleasure from being loved by all and tend to avoid the pain of being
rejected. Since human beings are social animals, they like to interact and
be with others where they feel, people accept them. Thus, people with
these needs like to maintain pleasant social relationships, enjoy a sense of
intimacy, and help and console others at the time of trouble.

NEED FOR ACHIEVEMENT NEED FOR POWER

HIGH HIGH
Must win at any cost Desires control of everyone &
everything
Must be on top & receive credit Exaggerates own position &
resources

Conclusion
● Motivation plays a crucial role in an organization’s productivity and
employee satisfaction levels. McClelland’s theory of motivation is a
research-based approach for identifying the factors that motivate
employees.
 ● According to McClelland’s theory, some individuals love projects that
challenge them while others are driven by having power and
responsibility for large teams. Some others remain content to gain the
approval of others while collaborating with them.
Process theories
Expectancy Theory of Motivation
The expectancy theory was proposed by Victor Vroom of Yale School of
Management in 1964. Vroom stresses and focuses on outcomes, and not on
needs, unlike Maslow and Herzberg. The theory states that the intensity of a
tendency to perform in a particular manner is dependent on the intensity of an
expectation that the performance will be followed by a definite outcome and on
the appeal of the outcome to the individual.
Expectancy is the individual’s belief that effort will lead to the intended
performance goals. Expectancy describes the person’s belief that “I can do this.”
Usually, this belief is based on an individual’s experience, self-confidence, and
the perceived difficulty of the performance standard or goal.
Instrumentality is the belief that a person will receive the desired outcome if
the performance expectation is met. Instrumentality reflects the person’s belief
that “If I accomplish this, I will get that.” The desired outcome may come in the
form of a pay increase, promotion, recognition, or a sense of accomplishment.
Instrumentality is low when the outcome is vague or uncertain, or if the
outcome is the same for all possible levels of performance.
Valence is the significance associated by an individual with the expected
outcome. It is an expected and not the actual satisfaction that an employee
expects to receive after achieving the goals. Factors associated with the
individual’s valence are needs, goals, preferences, values, sources of motivation,
and the strength of an individual’s preference for a particular outcome.
Advantages of the Expectancy Theory
➔ It is based on the self-interest of individual who want to achieve
maximum satisfaction and who wants to minimize dissatisfaction.
➔ It emphasizes rewards or pay-offs.
➔ It focuses on psychological extravagance where the final objective of the
individual is to attain maximum pleasure and least pain.
Limitations of the Expectancy Theory
 ➔ The expectancy theory seems to be idealistic because quite a few
individuals perceive a high degree of correlation between performance
and rewards.
➔ The application of this theory is limited as a reward is not directly
correlated with performance in many organizations. It is related to other
parameters also such as position, effort, responsibility, education, etc.
Implications of the Expectancy Theory
➔ The managers can correlate the preferred outcomes to the aimed
performance levels.
➔ The managers must ensure that the employees can achieve the aimed
performance levels.
➔ The deserving employees must be rewarded for their exceptional
performance.
➔ The reward system must be fair in an organization.
➔ Organizations must design interesting, dynamic, and challenging jobs.
➔ The employee’s motivation level should be continually assessed through
various techniques such as questionnaires, personal interviews, etc.
Adam’s Equity Theory
● Adam’s Equity Theory, also known as the Equity Theory of Motivation,
was developed in 1963 by John Stacey Adams, a workplace behavioral
psychologist.
● Equity Theory is based on the idea that individuals are motivated by
fairness. In simple terms, equity theory states that if an individual
identifies an inequity between themselves and a peer, they will adjust the
work they do to make the situation fair in their eyes.
● As an example of equity theory, if an employee sees that a peer doing the
same job and earning more money, then they may choose to do less work,
thus creating fairness in their eyes.
● To understand Adam’s Equity Theory in full, we need to first define
inputs and outputs.
★ Common inputs include:
➔ The number of hours worked (effort).
➔ The commitment showed.
➔ The enthusiasm showed.
➔ The experience brought to the role.
➔ Any personal sacrifices made etc.
 ★ Common outputs include:
➔ Salary
➔ Bonus
➔ Pension
➔ Annual holiday allowance
➔ Company car etc.

EQUITY THEORY
Individual outputs = Others’ output
Individual inputs Others’ input
● Individuals will always adjust their inputs so that the equation is always
in balance. So, if an individual believes their outputs are lower than their
inputs relative to others around them they will become demotivated.
● Likewise, an individual may need to increase their inputs if their outputs
are greater than those doing the same job. Essentially, an individual
within an organization will always try to keep fairness (equity) in
balance.
Key Points for Managers
➔ People measure the total of all inputs against the total of all outputs. This
could mean that a person with children may accept flexible working
hours in return for lower pay.
➔ Although understandably, conflict more senior staff earn significantly
more, there are limits, and excessive pay for senior people can be
demotivating.
➔ An employee who believes they are overcompensated may increase their
effort.
Equity Theory Summary
➔ Equity Theory of Motivation proposes that high levels of employee
motivation in the workplace can only be achieved when each employee
perceives their treatment to be fair relative to others.
➔ Employees will compare themselves to other groups both inside and
outside of the organization. In doing so, they will compare the total of all
inputs against the total of all outputs. If they perceive unfairness they will
adjust their inputs to compensate, working more or working less,
 depending on if their situation is positive or negative relative to the group
or person being compared.
Goal-Setting Theory of Motivation
● In the 1960s, 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 effort is required to be put in. The
important features of the goal-setting theory are as follows:
➔ The willingness to work towards the attainment of a goal is the 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. Participation in setting goals,
however, makes goals more acceptable and leads to more involvement.
Goals should be realistic and challenging. This gives an individual a
feeling of pride and accomplishment when he attains them, and sets him
up for the attainment of the 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 behavior
and contributes to higher performance than the absence of feedback.
Feedback is a means of, making clarifications and regulating goal
difficulties. It helps employees to work with more involvement and leads
to greater job satisfaction.
Goal-setting theory has certain possibilities such as:
● Self-efficiency- Self-efficiency is the individual’s self-confidence and
faith that he has the potential of performing the task. The higher the level
of self-efficiency, the greater will be the efforts put in by the individual
when they face challenging tasks. While, lower the level of
self-efficiency, less will be the efforts put in by the individual or he might
even quit while meeting challenges.
 ● Goal commitment- Goal setting theory assumes that the individual is
committed to the goal and will not leave the goal. The goal commitment
is dependent on the following factors:
➔ Goals are made open, known, and broadcasted.
➔ Goals should be set-self by individuals rather than designated.
➔ Individuals’ set goals should be consistent with the organizational goals
and vision.
Advantages of Goal Setting Theory
➔ Goal-setting theory is a technique used to raise incentives for employees
to complete work quickly and effectively.
➔ Goal-setting leads to better performance by increasing motivation and
efforts, but also through increasing and improving the feedback quality.
Limitations of Goal Setting Theory
➔ At times, the organizational goals conflict emotionally intelligent people
with the managerial goals.
➔ Very difficult and complex goals stimulate riskier behavior.
➔ If the employee lacks skills and competencies to perform actions essential
for the goal, then the goal-setting can fail and lead to undermining of
performance.
➔ There is no evidence to prove that goal-setting improves job satisfaction.
Theory X and Theory Y
➔ In 1960, Douglas McGregor formulated Theory X and Theory Y
suggesting two aspects of human behavior at work, or in other words, two
different views of individuals (employees):
➔ One of which is negative called Theory X and the other is positive, called
Theory Y.
➔ According to McGregor, the perception of managers on the nature of
individuals is based on various assumptions.
Assumptions of Theory X
➔ An average employee intrinsically does not like work and tries to escape
it whenever possible.
➔ Since the employee does not want to work, he must be persuaded,
compelled, or warned with punishment to achieve organizational goals.
Close supervision is required on part of managers. The managers adopt a
more dictatorial style.
 ➔ Employees generally dislike responsibilities.
➔ Employees resist change.
➔ An average employee needs formal direction.
Assumptions of Theory Y
➔ Employees can perceive their job as relaxing and normal. They exercise
their physical and mental efforts inherently in their jobs.
➔ Employees may not require only threat, external control, and coercion to
work, but they can use self-direction and self-control if they are dedicated
and sincere to achieve the organizational objectives.
➔ If the job is rewarding and satisfying, then it will result in employees’
loyalty and commitment to the organization.
➔ An average employee can learn to admit and recognize the responsibility.
He can even learn to obtain responsibility.
➔ The employees have skills and capabilities. Their logical capabilities
should be fully utilized. In other words, the creativity, resourcefulness,
and innovative potentiality of the employees can be utilized to solve
organizational problems.
➔ Thus, we can say that Theory X presents a pessimistic view of
employees’ nature and behavior at work, while Theory Y presents an
optimistic view of the employees’ nature and behavior at work. If
correlate it with Maslow’s theory, we can say that Theory X is based on
the assumption that the employees emphasize the physiological needs and
the safety needs.
➔ McGregor views Theory Y to be more valid and reasonable than Theory
X. Thus, he encouraged cordial team relations, responsible and
stimulating jobs, and participation of all in the decision-making process.
Implications of Theory X and Theory Y
➔ Quite a few organizations use Theory X today. Theory X encourages the
use of tight control and supervision. It implies that employees are
reluctant to make organizational changes. Thus, it does not encourage
innovation.
➔ Many organizations are using Theory Y techniques. Theory Y implies
that the managers should create and encourage a work environment that
provides opportunities to employees to take initiative and self-direction.
Employees should be given opportunities to contribute to organizational
well-being.
 ➔ Theory Y encourages decentralization of authority, teamwork, and
participative decision-making in an organization. Theory Y searches and
discovers how an employee can make significant contributions to an
organization. It harmonizes and matches employees’ needs and
aspirations with organizational needs and aspirations.
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 a job as the work meets the
expectations of the individual.
● E. A. Locke describes job satisfaction as, “the pleasurable emotional state
resulting from the appraisal of one’s job as achieving or facilitating the
achievement of one’s job values”.
● According to P. E. Spector, “Job satisfaction is the extent to which people
like or dislike their jobs”.
Factors affecting the level of job satisfaction are:
➔ Working Environment.
➔ Fair Policies and Practice.
➔ Appreciation.
➔ Pay.
➔ Promotion.
➔ Feelings of Belongings.
➔ Initiation and Leadership
➔ Safety and Security.
➔ Challenges
➔ Personal Interest and Hobbies.
➔ Respect from Co-Workers.
➔ Relationship with Supervisors.
➔ Feedback.
➔ Nature of Work Etc.
Importance of job satisfaction
➔ Lower Turnover.
➔ Higher Productivity.
 ➔ Increased Customer Satisfaction.
➔ Employee Absenteeism.
➔ Helps to Earn Higher Revenues.
➔ Satisfied Employees tend to Handle Pressure.
Causes of Job Dissatisfaction
➔ Underpaid.
➔ Limited Career Growth.
➔ Lack of Interest.
➔ Poor Management.
➔ Unsupportive Boss.
➔ Lack of Meaningful Work.
➔ Opportunities for growth or incentives for meaningful work.
➔ Work and Life Balance.
IMPORTANCE OF EMPLOYEE MOTIVATION & JOB SATISFACTION
FOR ORGANIZATIONAL PERFORMANCE
● Every successful organization is backed by a committed employee base,
and the commitment is the outcome of motivation and job satisfaction. It
is the energy that compels employees towards organizational objectives.
It would be impossible for the organization to generate performance
without commitment. To create a competitive advantage, organizations
need to have competitive employee policies and practices.
● Motivation is an important stimulation that directs human behavior. No
individual has the same attitude or behavior, hence amid this diversity
organizations are supposed to frame practices that will be able to satisfy
the group and not just an individual. Organizations should be able to
identify and evaluate internal motivation which an employee derives from
job satisfaction and further enhance it with external motivation as
required for which organization could take note of motivation theories.
● Organizations are in deep need of motivated employees as it is being
understood that motivation affects helps achieve the following
organizational objectives:
➔ The unified direction of the group/Teams
➔ Higher level of effectiveness and efficiency
➔ Elevated organizational commitment
➔ Optimum use of resources
➔ Building a performance-oriented environment (Creative & Innovative)
 ➔ Increases organization ability to face uncertain business challenges
➔ Employee retention and attraction for stable and continuous manpower
supply
Emotion
● “Emotion” word is derived from the Latin word “Emovere” which means
to excite.
● “By emotion, we mean a subjective feeling state involving physiological
arousal, accompanied by characteristic behavior”. (Baron, Byrne &
Kantrowitz)
● “We will define emotion as feeling or affect, that can involve
physiological arousal, conscious experience, and behavioral expression”.
(Santrock)
Classification of Emotions
➔ Love or Affection
➔ Joy and Elation
➔ Sadness and Depression
➔ Boredom
➔ Fear and Anxiety
➔ Anger
➔ Jealousy

Why do we need Emotions?

● Emotions Can Motivate You to Act: When faced with a nerve-wracking
exam, you might feel a lot of anxiety about whether you will perform
well and how the test will impact your final grade. Because of these
emotional responses, you might be more likely to study. Since you
experienced a particular emotion, you had the motivation to take action
and do something positive to improve your chances of getting a good
grade. You also tend to take certain actions to experience positive
emotions and minimize the probability of feeling negative emotions. For
example, you might seek out social activities or hobbies that provide you
with a sense of happiness, contentment, and excitement. On the other
hand, you would probably avoid situations that might potentially lead to
boredom, sadness, or anxiety. Emotions increase the likelihood that you
will take action. When you are angry, you are likely to confront the
 source of your irritation. When you experience fear, you are more likely
to flee the threat. When you feel love, you might seek out a partner.
● Emotions Help You Avoid Danger: Naturalist Charles Darwin was one
of the earliest researchers to scientifically study emotions. He believed
that emotions are adaptations that allow both humans and animals to
survive and reproduce. He suggested that emotional displays could also
play an important role in safety and survival. If you encountered a hissing
or spitting animal, it would indicate that the creature was angry and
defensive, leading to you back off and avoiding possible danger.
Emotions can also prepare the body to take action. The amygdala, in
particular, is responsible for triggering emotional responses that prepare
your body to cope with things like fear and anger. Sometimes this fear
can trigger the body's fight-or-flight response, which leads to several
physiological responses that prepare the body to either stay and face the
danger or flee to safety. Emotions serve an adaptive role by prompting
you to act quickly and take actions that will maximize your chances of
survival and success.
● Emotions Can Help You Make Decisions: Your emotions have a major
influence on the decisions you make, from what you decide to have for
breakfast to which candidates you choose to vote for in political elections.
Researchers have also found that people with certain types of brain
damage affecting their ability to experience emotions also have a
decreased ability to make good decisions. Even in situations where you
believe your decisions are guided purely by logic and rationality,
emotions play a key role. Emotional intelligence, or your ability to
understand and manage emotions, has been shown to play an important
role in decision-making. Research has found that experiencing fear
increases perceptions of risk, feeling disgusted makes people more likely
to discard their belongings, and feeling joy or anger causes people to leap
into action.
● Emotions Help Others Understand You Better: When you interact
with other people, it is important to give clues to help them understand
how you are feeling. These cues might involve emotional expression
through body language, such as various facial expressions connected with
the particular emotions you are experiencing. In other cases, it might
involve directly stating how you feel. When you tell friends or family
members that you are feeling happy, sad, excited, or frightened, you are
 giving them important information that they can then use to take action.
Research suggests that people experience positive emotions 2.5 times
more frequently than they do negative emotions.
● Emotions Allow You to Understand Others: Just as your own emotions
provide valuable information to others, the emotional expressions of
those around you also give a wealth of social information. Social
communication is an important part of your daily life and relationships,
and being able to interpret and react to the emotions of others is essential.
It allows you to respond appropriately and build deeper, more meaningful
relationships with your friends, family, and loved ones. It also allows you
to communicate effectively in a variety of social situations, from dealing
with an irate customer to managing a hot-headed employee.
Components of Emotions
1. Physiological: Pertain to the internal changes in our arousal level which
may result in increased heart rate, high blood pressure, and increased
respiration.
2. Behavioural: It is the outward signs of emotions such as facial
expression, body gesture, posture, and tone of voice.
3. Cognitive: It determines the types and intensity of the emotions we
experienced based on our thought, belief, and experiences.
Impact of Emotions in the Workplace
● Negative Emotions in the Workplace: Negative emotions are those
which are destructive to the goals of the organization. The managers must
understand emotionally intelligent people the factors that lead to such
emotions and their likely effects. "Toxic Emotions at Work", written by
Peter Frost said, emotion can become toxic if it is not dealt with properly.
● Positive Emotions in the Workplace: They can lead to high morale,
improved performance, and better job satisfaction. Managing emotions is
an important criterion for achieving success in the workplace.
Tips for keeping an Organization Emotionally Balanced:
➔ Employees could be asked to attend stress management classes
➔ Activities that promote team spirit
➔ Assistance could be offered who require help in managing their emotions
➔ Tensions should not be allowed to grow.
Theories of emotions:
Emotional intelligence
● Emotional intelligence can best be described as the ability to monitor
one's own and other people's emotions, to discriminate between different
emotions and label them appropriately, and to use emotional information
to guide thinking and behavior.
● According to Salovey and Mayer, there are four different levels of
emotional intelligence:
➔ Perceiving emotions
➔ Reasoning with emotions
➔ Understanding emotions
➔ Managing emotions
People With High EQ
➔ Make better decisions and solve problems
➔ Keep cool under pressure
➔ Resolve conflicts
➔ Have greater empathy
➔ Listen, reflect, and respond to constructive criticism
People With Low EQ
➔ Play the role of the victim or avoid taking responsibility for errors
➔ Have passive or aggressive communication styles
➔ Refuse to work as a team
➔ Are overly critical of others or dismiss others' opinions
Components of Emotional Intelligence
1. Self-Awareness: A person having wisdom about this pillar of
self-awareness will easily understand and analyze his/ her strengths as
well as weaknesses. This will help him/ her to analyze the impact of the
actions taken by him/ her on other people.
 2. Self-Regulation: Higher EQ means that the person can show off his/ her
emotions in a mature manner, while also practicing restraint as and
when needed. Instead of putting a lid on his/ her feelings, the person
knows well how to put them across with the proper amount of dominance
as well as a restriction.
3. Motivation: It has been found that emotionally intelligent people shared,
a function of being self-motivated. It is not just money or the job title
which motivates them, usually, they are found to be highly optimistic as
well as strong, mostly in disappointing situations. It is their inner goals
that drive them.
4. Empathy: A person who has the quality of showing empathy will be
generally compassionate and will be analyzing human nature also very
well. This also helps the person to easily associate with the other staff or
team members at an emotional level. Thus, the capability of showing
empathy helps the person to deliver better service as well as to take the
right actions towards the concerns of other people
5. Social / People Skills: Being a person with higher emotional intelligence
skills makes one possess more affinity and such people can easily build
trust with their team members. Mostly they try to stay away from the
habit of backstabbing as well as power struggles. They are most fond of
others around them while showing respect for the other team members
or colleagues working with them.
★ These five pillars of EQ are necessary for successful candidates who can
easily thrive and create a positive environment in the workplace.
Therefore the organizations need to look for new hires with higher EQ
and on a similar front, they should also have business leaders or managers
who can quickly act in an emotionally intelligent manner to cater to the
requirements of their workers and their needs.
Effective Ways Fostering Emotional Intelligence skills in Organizations
➔ Detect the Stress and Response to it
➔ Take care of People Around
➔ Develop Emotional Awareness
➔ Non-verbal Communication
➔ Think Before Acting
➔ Show Humor and Humility
➔ Be Responsible
MODULE 3
TOPICS:
➢ Organizational Leadership
➢ Theories of leadership
➢ Leader v/s manager
➢ Effective organizational communication
➢ Problem-solving and Decision making in organizations
A leader is one who
➔ Initiate first
➔ Inspires the followers
➔ Develops the follower
➔ Shows how to do the job
➔ Assumes obligations and
➔ Overcome various obstacles in attaining the goal
➔ Accomplishes work
Leadership
➔ Leadership is lifting a person’s performance to a higher standard, the
building of a personality beyond his normal limitations
➔ Leadership is the process of influencing the behavior of others towards
the accomplishment of goals in a given situation.
➔ The process by which a person motivates and guides the group towards a
visualized goal
➔ Leadership is “the process of encouraging and helping others to work
enthusiastically towards objective”.
➔ Leadership is “the behavior of an individual when he is directing the
activates of a group towards a shared goal”.
➔ Leadership is “the relationship in which one person (the leader)
influences others to work together willingly on related task to attain goal
desired by the leader and or group”.
➔ Management is a process of planning, organizing, coordinating, directing,
and controlling the activities of others.
➔ Managership is the authority to carry out these functions.

Managers Vs Leaders
Managers Leaders
Focus on things Focus on people
Do things right Do the right things
Plan Inspire
Organize Influence
Direct Motivate
Control Build
Follow rules Shape entities

Importance of Leadership
Without leadership, an organization would be what the sage Valmiki wrote in
the Ramayana:
➔ Like an army without a general
➔ Like a night without moon
➔ Like a group of cows without a bull
Leadership not only commits his followers to organizational goals, but can
confuse also pool needed resources, guides, and motivates subordinates to reach
the goals.

Types of Leadership Styles

1. Democratic Leadership: Democratic leaders are all about collaboration

and the sharing of ideas. They make decisions based on the input of
others that may or may not be on the same hierarchal level. They
naturally drive engagement because employees are allowed to be a part of
the decision-making process. Leadership is decentralized, and choices
 have to go through a lot of people before a final decision can be made by
the leader. Workers are encouraged to be innovative, creative, and
independent in their thoughts.
Importance of Democratic Leadership
● Democratic leaders are great for organizations that serve a clientele who
also want to be a part of the decision-making process. For instance:
➔ a school board that seeks insights from parents,
➔ governmental leaders who seek input from representatives of various
districts to find out what the people want,
➔ forward-thinking companies who do not want a rigid managerial style and
want balanced information from employees.
● Creative industries usually benefit from this leadership style.

2. Autocratic Leadership: Autocratic leaders mostly rely on their opinion

and are not keen on seeking input from others. Autocratic leaders make
all of the decisions and decide how work will be done.
Importance of Autocratic Leadership
➔ This leadership style works well for organizations that need decisions to
be made quickly and efficiently, as only one person is responsible for
decision-making.
➔ Autocratic leaders may also do well in small organizations where many of
the workers are not knowledgeable about a particular topic or practice
and need someone to hold the reins.
➔ The military and construction sectors employ this style as authoritarian
leaders are useful for making quick, decisive choices.

3. Laissez-Faire Leadership: It is a component of the democratic

leadership style. However, it is to the extreme of leaving employees to
their own devices. Leaders who subscribe to this method intervene as
little as possible in how employees work or regulate themselves.
Laissez-Faire leaders are there to offer resources that workers might need,
but they do not concern themselves with the nuts and bolts of employee
tasks. Workers are trusted to get the job done. This style of leadership
involves a lot of trust and confidence in the employee level of
competency on the part of the leader.
Importance of Laissez-Faire Leadership
 ➔ Laissez-Fair leadership is best to use in short-term situations: if a new
manager is coming into a company and wants to gauge how workers are
doing, it would benefit them to take a hands-off approach to see how the
teams work uninterrupted.
➔ It is also beneficial to companies when working with high-skilled
independent contractors or freelancers that are self-guided and directed to
accomplish the tasks they need to.
➔ The larger the department or group that needs to be managed, the more
difficult a leadership style like this one becomes.

4. Strategic Leadership: Strategic leaders come into a company with a “big

picture” mindset. Their approach is to turn the organizational structure
into a mechanism that helps the company meet the strategic vision
attached to it. Their ultimate goal is to spur effective productivity and
performance. A strategy is a part of everything they do: encouraging
worker creativity, a generalist mindset, self-control, and a tendency to
delegate.
Importance of Strategic Leadership
➔ Strategic leaders are excellent for any organization that needs someone to
pull all the pieces together.
➔ If companies are having a problem getting one department in sync with
another, managing an unbalanced budget, or being concerned about high
turnover; strategic leaders can come in and create a strategic plan for all
of these problems to work toward a solution eventually.
➔ To the strategic leader, everything is connected. Therefore, companies
that have not figured out how to get all the pieces attached would benefit
from a strategic leader.

5. Charismatic Leadership: If two words could be used to describe these

individuals, it is “excellent communicators.” Charismatic leaders can
inspire loyalty and respect with their words. They know how to make
people feel that they are speaking directly to them even if they are giving
a speech to a group. Their confidence and oratory skills provide them
with a level of influence over employees. Charismatic leaders share
common traits with transformational ones such as idealized influence and
inspirational motivation.
Importance of Charismatic Leadership
 ➔ Charismatic leaders are great for organizations whose employees might
need to be talked through a difficult time.
➔ Cause-driven organizations like nonprofits, political campaigns, and
newly formed organizations would benefit from a charismatic leader.
➔ The relational aspect they bring to the business will help people feel at
ease and inspired to move through a difficult transition or mission.

6. Transformational Leadership: Transformational leaders seek to inspire

individuals to achieve their very best. They encourage employees to do
high-quality work and make them feel that the talents they are bringing to
the table matter. These individuals understand the human element of
employees and want to be empathetic to their needs while also propelling
them forward. They are primarily coaches who lead by example.

Importance of Transformational Leadership

➔ Transformational leaders are great for companies who have an outdated
approach and who need someone to come in to redefine the internal
structure.
➔ They are also great for businesses that have a new direction or strategy
that they need a leader to “sell” to the employees.
➔ These leaders do well in small organizations with big dreams and
aspirations and established and larger groups who want to raise morale
and motivate employees again.

7. Transactional Leadership: While transformational, charismatic, and

visionary leaders motivate employees by developing some relational
bond, transactional leaders are not driven to do this. Their primary goal is
to increase employee productivity and performance. Transactional leaders
use policies and procedures to keep employees on task and in line.
Instead of facilitating relationships, transactional leaders motivate
employees to do their best with money and benefits. These individuals
only intervene when goals are not being met, and are adept at installing
short-term goals they want workers to reach.

Importance of Transactional Leadership

➔ Transactional leaders are useful for companies who need incremental
goals met in a short amount of time.
 ➔ Large or small organizations who know they need to achieve quarterly
and annual goals even if the cost is decreased quality/creativity would
benefit from a transactional leader.
➔ Retail companies, and organizations that depend on a sales representative
to close deals often use transactional leaders.

4 Key Leader Behaviours

High High-relationship & High-task &
Low-Task (Supporting High-Relationship
↑ Style) (Participative Style)
People emphasis
↓ Low-Task & High-Task &
Low-Relationship Low-Relationship
Low (Free-Rein Style) (Autocratic Style)

Low ← Task Emphasis → High

8. Situational leadership: Situational leadership is a leadership style in

which a leader adapts their style of leading to suit the current work
environment and/or needs of a team. This style of leadership is not
dependent on the skills of a leader; rather it is based on a leader's ability
to adjust to the requirements of a team or organization to be a better and
more effective leader. This leadership style may also be referred to as
"Situational Leadership Theory" or the "Situational Leadership Model"
and was originated by Ken Blanchard and Paul Hersey during the
development of the book, Management of Organizational Behavior.

Advantages of Situational leadership

➔ Leaders can use whichever leadership style they believe is best in a given
situation.
➔ A situational leadership style can be more comfortable for good leaders
who know how to use it.
➔ This type of leadership style is fairly simple, as all that is needed is the
ability to assess a situation and adjust to it.
➔ Situational leadership can create a more comfortable environment for
employees as the leadership style implemented will typically match their
needs.

Disadvantages of Situational leadership

 ➔ Situational leadership could confuse within an organization, as a
situational leader may constantly change their approach to addressing
each team or individual's needs.
➔ Situational leadership tends to only focus on short-term goals and as a
result, may overlook long-term goals.
➔ Situational leadership depends on the leader's ability to judge an
employee's maturity level. Some leaders are unable to do this effectively
and may, therefore, provide a style of leadership that does not suit a
particular employee or team.
Theories of Leadership
1. Trait Theory: The trait theories of leadership focus on the individual
characteristics of successful leaders. According to theory, leaders possess
a set trait that makes them distinct from followers. Therefore an attempt
must be made to identify and measure these traits. Ralph Stogdill,
surveyed more than 5000 leadership studies and concluded that
successful leaders tend to have the following qualities:
➔ A strong desire for accomplishment
➔ Persistent pursuit of goals
➔ Creativity and Intelligence
➔ Self-assumed personality
➔ Willingness to accept behavioral consequences
➔ Ability to influence other people
➔ Capacity to motivate people
➔ Perseverance
➔ Self-Confidence
➔ Emotional stability
Advantages of Trait Theory
➔ This is a naturally pleasing theory.
➔ A lot of research has validated the foundation and basis of the theory.
➔ It gives a detailed knowledge and understanding of the leader element in
the leadership process.
Limitations of Trait Theory
➔ There is some subjective judgment in determining who is regarded as a
good or successful leader.
 ➔ The list of possible traits tends to be very long. So it is a very complex
theory.
2. Behavioral Theories: Beginning in the late 1940s and continuing
through the early 1960’s researchers moved away from an emphasis on
traits and towards the study of leader behaviors. Behavioral theories of
leadership are focused on the study of specific behaviors of a leader. For
behavioral theorists, a leader’s behavior is the best predictor of his
leadership influences and as a result. So it is the best way to determine his
or her leadership success.
Ohio State University
The Bureau of Research at Ohio State University conducted these studies. The
main objective of the studies was to identify the major dimensions of leadership
and to investigate the effect of a leader’s behavior on employee behavior and
satisfaction. These studies narrowed the description of leader behavior to two
dimensions:
● Initiating Structure: It refers to the leader’s behavior in defining and
organizing the relationship between himself and members of the group.
The purpose of initiating structure is to:
Establish well-defined patterns of organization.
Develop channels of communications and methods or procedures.
To supervise the activities of employees.
● Consideration: The basic feature of this theory is that leadership behavior
is plotted on two axes rather than on a single continuum. Consideration
refers to the behavior which can be characterized by:
Friendliness
Mutual trust
Respect
Supportiveness
Openness
Concern for the welfare of employees

Human relation Democratic

Low concern for production & High High concern for production & High
concern for people concern for people
 (low)← ↓(low) (high)↑ → (high)
Low concern for production & Low High concern for production & Low
concern for people concern for people
Laissez Faire Autocratic

↔ Initiating Structure ↕ Consideration

The findings of these studies are:
➔ There is a positive relationship between consideration and regularity of
employees and low grievances. But consideration is negatively related to
performance.
➔ There is a positive relationship between initiating structure and employee
performance. But initiating structure is also associated with absenteeism
and grievances.
➔ When both these dimensions are high, performance and satisfaction
tended to be high.
Michigan Studies
These empirical studies were conducted slightly after World War II by the
Institute of Social Research at the University of Michigan. The purpose of these
studies was to identify styles of leadership behavior that result in higher
performance and satisfaction of a group. These studies distinguished between
two distinct styles of leadership:
● Production Centered Leadership: This leadership is also known as
task-oriented leadership. The production-oriented leadership stressed
certain points:
Rigid work standards, procedures, and rules
Close supervision of the subordinates
The technical aspect of the job
Employees were not to be considered as human beings but as tools
to accomplish the goals of the organizations.
● Employee Centered Leadership: This style is also known as
relation-oriented leadership because it emphasizes human relations. The
main parts which are concentrated upon in this approach are:
To treat subordinates as human beings.
 To show concern for the employees’ needs, welfare, advancement,
etc.
To encourage employee participation in goal setting and other
work-related decisions.
To help ensure high performance by inspiring respect and trust.
The findings of Michigan studies
➔ These studies found that both styles of leadership led to an increase in
production, but it was slightly more in the case of production-oriented
style.
➔ On the other hand, a production-oriented style led to decreased
satisfaction and increased turnover and absenteeism.
➔ The employee-centered approach led to improved workflow procedures
and more cohesions in interactions resulting in increased satisfaction and
decreased turnover and absenteeism.
The behavioral approach differs from the traits approach in that:
➔ The traits approach emphasizes some particular trait to be possessed by a
leader whereas this theory emphasized particular behavior by him.
➔ The purpose of trait theory was to separate leaders from non-leaders
based on traits, whereas the purpose of behavioral theory is to determine
how various kinds of specific behavior affect the performance and
satisfaction of subordinates.
Criticism of the Behavioral Approach
➔ This approach does not take into consideration the situational variables. A
particular leadership style may be effective in one situation, but it may
not be so effective or ineffective in another situation. The situation
determines the effectiveness of a particular leadership style.
➔ This approach does not consider the time factor also. A particular
behavior or action of the leader may be effective at one point in time
while the same may be ineffective at some other point in time.
➔ The leadership style suggested by these studies is extreme. A leader is
supposed to follow either of the two styles.
➔ But in practice, these two extremes cannot be followed rigidly, because
leaders cannot restrict themselves to a particular style. They adopt both
styles in varying degrees to suit the particular situation.
 3. The Blake Mouton Managerial Grid: Managerial Grid, or Leadership
Grid, was developed in the early 1960s by management theorists Robert
Blake and Jane Mouton. It plots a manager's or leader's degree of
task-centeredness versus her person-centeredness and identifies five
different combinations of the two and the leadership styles they produce.

Understanding the Model

● Concern for People: this is the degree to which a leader considers team
members' needs, interests, and areas of personal development when
deciding how best to accomplish a task.
● Concern for production: this is the degree to which a leader emphasizes
concrete objectives, organizational efficiency, and high productivity when
deciding how best to accomplish a task.

In the figure, there are 81 possible categories where the leader’s style may
fall.
1) Impoverished Management (1,1): The managers with this leadership
style exert minimum effort to get the work done by the subordinates.
They have minimal concern for both the people and production and they
function merely to preserve their jobs and seniority. Therefore,
disharmony, dissatisfaction, disorganization arise within the organization.
2) Task Management (9,1): Here, the leader is more concerned with the
production and lays less emphasis on the personal needs of his
subordinates. This leadership style is also called a dictatorial or perish
style, where the subordinates are required to perform the task as directed
by the superiors. In this leadership style, the output in the short run may
 increase drastically, but due to tough rules and procedures, there could be
a high labor turnover.
3) Middle of the Road (5,5): The manager with this style tries to keep a
balance between the organizational goals and the personal needs of his
subordinates. Here, the leader focuses on adequate performance through a
balance between the work requirements and satisfactory morale. Both the
people and production needs are not completely met, and thus the
organization land up to an average performance.
4) Country Club (1,9): Here, the leader lays more emphasis on the personal
needs of the subordinates and gives less attention to the output. The
manager adopts this style of leadership with the intent to have a friendly
and comfortable working environment for the subordinates, who get
self-motivated and work harder on their own. However, less attention to
the production can adversely affect the work goals and may lead to
unsatisfactory results.
5) Team Management (9,9): According to Blake and Mouton, it is the most
effective leadership style wherein the leader takes both people and
production hand in hand. This style is based on McGregor’s Theory Y,
where the employees are believed to be committed towards the goal
achievement and need not require the manager’s intervention at every
step. The leader with this style feels that empowerment, trust, respect,
commitment helps in nurturing the team relationships, which ultimately
results in increased employee satisfaction and overall production of the
organization.
Blake Mouton Managerial Grid: 5 Leadership Styles
STYLE FEATURES CONCERN CONCERN
FOR PEOPLE FOR TASK
Impoverished Laissez-faire style; minimal effort 1 1
Management on management; hoping to avoid
blame for errors
Country Club Focus on creating a safe, 9 1
Management comfortable working environment;
minimal conflict
Task Autocratic style, consistent with 1 9
Management McGregor Theory X. workers have
to complete tasks- nothing else
Team Staff closely involved in 9 9
Management decision-making & feel valued;
consistent with McGregor Theory Y
Middle of the Comprises made to achieve 5 5
Road acceptable performance; thought to
Management be the less effective leadership style

Advantages of Blake and Mouton’s Managerial Grid

The Managerial or Leadership Grid is used to help managers analyze their
leadership styles through a technique known as grid training. This is done by
administering a questionnaire that helps managers identify how they stand for
their concern for production and people. The training is aimed at basically
helping leaders reach the ideal state of 9, 9.
Limitations of Blake and Mouton’s Managerial Grid
The model ignores the importance of internal and external limits, matter, and
scenarios. Also, some more aspects of leadership can be covered but are not.
4. The Great Man Theory: The great man theory of leadership became popular
during the 19th-century. The mythology behind some of the world's most
famous leaders such as Abraham Lincoln, Julius Caesar, Mahatma Gandhi and
Alexander the Great helped contribute to the notion that great leaders are born
and not made. Have you ever heard someone described as "born to lead?"
According to this point of view, great leaders are simply born with the necessary
internal characteristics such as charisma, confidence, intelligence, and social
skills that make them natural-born leaders. Great man theories assume that the
leadership capacity is inherent – that great leaders are born, not made. These
theories often portray great leaders as heroic, mythic, and destined to rise to
leadership when needed. The term "Great Man" was used because, at the time,
leadership was thought of primarily as a male quality, especially in terms of
military leadership. Such theories suggest that people cannot learn how to
become strong leaders.
Arguments Against the Great Man Theory
➔ It was a male-centric approach when women have proved to be great
leaders too.
➔ This theory explains that leadership cannot be learned or taught it’s an
inherent trait.
 ➔ There is no scientific validation to support this theory.
➔ It neglected the environmental and situational factors which affect the
leadership process
Contingency Theory (Fiedler): Contingency theories of leadership state that
effective leadership comprises of all three factors, i.e. traits, behavior, and
situational. A leader’s behavior varies as per the situation. To support this theory
of leadership various models were developed, and multiple studies were
conducted in this direction.
Fiedler model postulate that the effectiveness of a leader depends upon two
things:
1. Leaders Motivational Style
● Leaders are motivated by Interpersonal relationships OR
● Task-goal accomplishment
The motivational styles of la leader are measured by the LPC concept. A high
LPC score suggests that the leader has relation-orientation, while a low LPC is
Overall task-oriented.
2. Favorableness of the situation
● Leader-Member relation
● Task Structure
● Position Power
Overall, Situational favorableness is determined by the combination of these
three situational factors.
➔ Good Leader-member relation, highly structured and strong position
power leads to High control situation
➔ Poor Leader-member relation, unstructured task, and weak position
power leads to low control situation
Leadership Match:
1. High control situation = Task-Oriented Leadership
2. Moderate control situation = Relationship Oriented
3. Low control situation = Task-Oriented Leadership
Evaluation of Model
★ Merits:
 ➔ It gives explicit attention to three important components: the leader, the
situation, and the subordinates.
➔ The second merit of the model is its flexibility
➔ Leader match is a programmed learning technique that train leaders to
modify situation to fit their personality.
★ Demerits:
➔ The meaning of some variables included in this model is not clear. For
example, it is difficult to classify structure and unstructured.
➔ It does not explain that why and how one particular leadership trait is
more desirable than the others in a particular situation
➔ It does not satisfactorily explain how and why leaders who describe least
preferred co-worker in negative terms are considered to be task-motivated
and those who describe them in positive terms are considered
relation-motivated.
➔ No attention is given to the actual technical competencies of leaders or
subordinates.
Situational Leadership Theory
Paul Hersey and Kenneth Blanchard developed a situational model of
leadership. The theory states that the style of leadership depends upon the
maturity of the subordinates. Maturity in this context is understood not as age or
emotional stability but as achievement, willingness to accept responsibility, and
task-related ability and experiences.
Hersey Blanchard believed that the relationship between the leader and
subordinates moves through four phases a kind of life cycle as subordinates
develop and mature and that leaders need to vary their leadership styles with
each phase.
➔ Telling: When a new person enters the organization, he has to be told
everything, i.e. he is given training and orientation to make him
understand the task to be performed.
➔ Selling: The leader leads by providing social and emotional support to the
subordinates and convincing the groups to give maximum output.
➔ Participating: It is a democratic style where subordinates are allowed to
participate in the decision-making process. Here, the leader is less
focused on the achievement of objectives.
 ➔ Delegating: The leaders are least concerned about and hardly interfere
with the execution of the tasks. They are not even concerned about the
subordinates and their issues.
Evaluation
★ Merits:
➔ It is dynamic and flexible rather than static
➔ The subordinate must be assessed to determine which style of
combination would be most appropriate.
➔ It does not only motivate people but also helps them to move towards
maturity.
★ Demerits:
➔ Assessment of the maturity level is a difficult task.
➔ Is it possible to change leadership style as subordinates mature?
Practically it is difficult.
➔ This theory suggests that leaders should treat each employee in a slightly
different way. But in practice can leaders exhibit different leadership
styles when all members of the group perform the task together? This
question remains unanswered.
Evans and House Path-Goal Theory
● The Path-Goal Theory was proposed by Robert J. House and Martin
Evans in the 1970s. This theory pro-founded that leader’s noticeable
behavior and the situation in which he is placed are inter-connected.
● To increase the organization's effectiveness, the managers should either
match the situation with the leader’s behavior or change his behavior
according to the situation in which he is placed. This theory focused on
the need for flexibility while adopting different leadership styles in
different situations.
● The essence of the theory is that the leaders’ job is to use structure,
support, and rewards to create a healthy work environment that helps
employees reach the organization's goals.
● This theory is called path-goal because its major concern is how the
leader influences the subordinates’ perceptions of their work goals,
personal goals, and path to goal attainment. This model emphasized four
different behaviors of a leader:
➔ Directive
➔ Supportive
 ➔ Participative
➔ Achievement-Oriented
● Path goal theory suggests that depending on the followers and the
situation, this different leader behavior can increase goal clarity of
followers, enhance their level of satisfaction, and raise their expectations
that effort will result in effective performance.
Vroom-Yetton-Jago Decision-Making Model
This model suggested that leadership style varies based on the decision-making
ability of the leaders in different situations. one of the tasks of a leader is to
make decisions. Leaders who make good decisions will be more effective in the
long run than leaders who make bad ones.
Following are the five decision making Styles derived out of this model:
1. Autocratic (AI): The leader solely decides with the available information.
2. Autocratic (AII): This is an autocratic leadership style where the leader
takes the opinion of group members to gather more information but may
or may not share the final decision with the group members.
3. Consultative (CI): The leaders consult with the group members to explore
opinions but solely take the decision.
4. Consultative (CII): The leaders consult with the group members to
explore opinions and also invite suggestions but solely take the decision.
5. Collaborative (GII): The leader allows the group to take their own
decisions collectively and plays a supportive role in the process.

● Cognitive Resource Theory: This theory explains that if the leader is

experienced he will be able to perform effectively even under stressful
situations whereas an intelligent leader performs well in less stressful
situations.
● Strategic Contingencies Theory: This theory says that the effectiveness
of a leader depends upon his problem-solving skills and ability to handle
critical situations and make decisions wisely. A person with better
problem-solving skills can secure his position and cannot be easily
replaced.
Problem: A perceived gap between the existing state and the desired state, or a
deviation from a norm, standard, or status quo.
Barriers to Problem-Solving
 ● Confirmation bias
● Mental set
● Functional fixedness
● Unnecessary constraints
● Irrelevant information
Causes of Problem-Solving Barriers
● Perspective
● Emotion
● Intellectual
● Expression
● Environment
● Cultural
Divergent Thinking
Divergent thinking talks about considering several solutions to a certain
problem. It is sometimes referred to as “lateral thinking” which is a term
credited to Edward De Bono, a Maltese psychologist, physician, author, and
inventor.
Convergent Thinking
Joy Paul Guilford, an American psychologist, coined the term “convergent
thinking”. It refers to figuring out a certain established solution to a problem.
This is often employed in structured assessments such as multiple-choice items,
identification, and arithmetic problems.
Convergent & Divergent Questions
Convergent Questions Divergent Questions
Allow for only one correct response Allow for many correct responses
Based on concrete facts Call for opinions, hypotheses, or
evaluations
Require recall, analysis for Encourage broader responses
determining the single, correct answer prompting students to think
Eg: “What was the major cause of the Eg: “Why is it important that we
Great Depression” speak correctly?”

The Six-Step Problem Solving Model

 ● The Six Steps
➔ Define the Problem
➔ Determine the Root Cause(s) of the Problem
➔ Develop Alternative Solutions
➔ Select a Solution
➔ Implement the Solution
➔ Evaluate the Outcome
The 5 Most Common Problems of Organizations
● Absence of clear direction. Lack of direction is one of the most common
organizational problems.
● Difficulty blending multiple personalities into a cohesive and unified
team.
● Failure to develop key competencies and behaviors.
● Poor communication and feedback.
● Lack of awareness.
Communication
Communication is simply the act of transferring information from one place,
person, or group to another.
Every communication involves (at least) one sender, a message, and a recipient.
This may sound simple, but communication is a very complex subject.
THE COMMUNICATION PROCESS

4 Different Types of Workplace Communication

➔ Verbal (In-Person) Communication
➔ Body Language & Facial Expressions
 ➔ Phone Conversations
➔ Written Communication
● Others:
➔ Interpersonal communication
➔ Intrapersonal Communication
➔ Impersonal Communication
Barriers to Effective Communication
● Sender Related Barrier:
➔ Communication Goals
➔ Communication Skills
➔ Interpersonal Sensitivity
➔ Improper Diction
➔ Inconsistent Non-verbal communication
➔ Fear
➔ Sender Credibility
● Receiver Related Barrier:
➔ Selective and Poor Listening
➔ Evaluating the Source
➔ Perception
➔ Lack of Responsive Feedback
● Situation Related Barrier:
➔ Jargon
➔ Information Overload
➔ Communication Climate
➔ Noise
➔ Distance
➔ Mechanical failure
Overcoming the Barriers
★ Sender’s Responsibility;
➔ Setting Communication Goals
➔ Using Appropriate Language
➔ Practicing Empathic Communication
➔ Improving Communicator’s Credibility
➔ Encouraging Feedback
➔ Using face to face communication
➔ Developing trusting climate
 ➔ Using Picture
Barriers to Effective Listening
➔ Poor Listening
➔ Inadequate background information
➔ Selective expectation
➔ Bias and being judgment
➔ Partial learning and distraction
➔ Selective perception
➔ Interference from emotions
➔ Responsive feedback
The 10 Principles of Listening
1. Stop Talking
2. Prepare Yourself to Listen
3. Put the Speaker at Ease
4. Remove Distractions
5. Empathies
6. Be Patient
7. Avoid Personal Prejudice
8. Listen to the Tone
9. Listen for Ideas – Not Just Words
10.Wait and Watch for Non-Verbal Communication
Communication Flows in an Organization
● Downward Flow of Communication:
➔ Communication that flows from a higher level in an organization to a
lower level is downward communication. In other words, communication
from superiors to subordinates in a chain of command is downward
communication.
➔ Providing feedback on employees performance
➔ Giving job instructions
➔ Communicating the organization’s mission and vision to the employees.
➔ Highlighting the areas of attention etc.

● Upward Flow of Communication:

➔ Communication that flows to a higher level in an organization is called
upward communication. It provides feedback on how well the
 organization is functioning. The subordinates use upward communication
to convey their problems and performances to their superiors.
➔ The subordinates also use upward communication to tell how well they
have understood the downward communication. It can also be used by the
employees to share their views and ideas and to participate in the
decision-making process.
THE FLOW OF VERTICAL COMMUNICATION
Managing Director
↓ ↑
General Manager
↓ ↑
Assistant General Manager
↓ ↑
Divisional/Departmental Head
↓ ↑
Supervisor
↓ ↑
Employees/Workers
(↓- Downward communication ↑- Upward communication)
● Lateral / Horizontal Communication
➔ Communication that takes place at the same levels of hierarchy in an
organization is called lateral communication, i.e., communication
between peers, between managers at the same levels, or between any
horizontally equivalent organizational member. The advantages of
horizontal communication are as follows:
It is time-saving.
It facilitates the coordination of the task.
It facilitates co-operation among team members.
It provides emotional and social assistance to the organizational
members.
It helps in solving various organizational problems.
It is a means of information sharing
 HORIZONTAL COMMUNICATION
PRODUCTION SALES MANAGER PURCHASE
MANAGER MANAGER
→ → →
← ← ←

● Diagonal Communication: Communication that takes place between a

manager and employees of other workgroups is called diagonal
communication. It generally does not appear on the organizational chart.
For instance: To design a training module a training manager interacts
with Operations personnel to enquire about the way they perform their
task.
● External Communication: Communication that takes place between a
manager and external groups such as - suppliers, vendors, banks,
financial institutes, etc. For instance: To raise capital the Managing
director would interact with the Bank Manager.
MODULE 4
TOPICS:
➢ Recruitment
➢ Selection
➢ Training

RECRUITMENT
● In human resource management, “recruitment” is the process of finding
and hiring the best and most qualified candidate for a job opening, in a
timely and cost-effective manner.
● It can also be defined as the “process of searching for prospective
employees and stimulating and encouraging them to apply for jobs in an
organization”.
● It is a process, that begins with the identification of the needs of the
company concerning the job, and ends with the introduction of the
employee to the organization.
FACTORS THAT INFLUENCE RECRUITMENT
➔ Size of the organization
➔ Current employment conditions in the economy
➔ Salary structure of the organization
➔ Working conditions within the organization
➔ The growth rate of the organization
THE RECRUITMENT PROCESS
Step 1: Conduct a job analysis
➔ Build a job description.
➔ Set minimum qualifications for the employee who will do the job.
➔ Define a salary range.
Step 2: Sourcing of talent
➔ Newspaper Ads
➔ Electronic Media
➔ Point of Purchase Method
➔ Campus Recruiters
➔ Outside Recruiters
➔ Employee Referrals
➔ Direct Mail
 ➔ Internet Recruiters
➔ Employer website
➔ Job fairs
Step 3: Screening of applicants
➔ Preliminary screening
➔ Initial interview (Structure / Unstructured)
➔ Conduct various tests for recruitment
➔ Final interview
➔ Selection
Step 4: Finalization of the job offer
➔ Making the offer
➔ Acceptance of the offer by the applicant
SOURCES OF RECRUITMENT
INTERNAL EXTERNAL
Promotion Advertisements
Transfers Campus Recruitment
Upgrading Placement Agencies
Demotion Outsourcing/Consultancies
Retired Employees Employment Exchanges
Retrenched Employees Labor Contractors

MERITS & DEMERITS OF INTERNAL RECRUITMENT

MERITS DEMERITS
Employee motivation Lack of fresh talent
Employee’s loyalty Encourages favoritism
Cost-effectiveness Limited scope
Reliability
Time-saving

MERITS & DEMERITS OF EXTERNAL RECRUITMENT

 MERITS DEMERITS
Fair & impartial Employee turnover
Transparency Time-consuming
Fresh talent Involves huge cost
Wider scope Employee dissatisfaction
Organizational growth Insecurity

SELECTION

● The selection process can be defined as the process of selection and

shortlisting of the right candidates with the necessary qualifications and
skill set to fill the vacancies in an organization.
● The selection process varies from industry to industry, company to
company, and even amongst departments of the same company.
DIFFERENCE BETWEEN RECRUITMENT & SELECTION

BASIS RECRUITMENT SELECTION

Meaning It is the process of It is the process of
stimulating people to selecting the best
apply for a vacant job candidate from those
position in the who have applied for the
organization job
Objective The objective is to The objective is to get
create a pool of eligible the best candidate
candidates for selection selected for the job
Nature It is a positive process It is a negative process
as it attracts people as it involves the
towards the organization rejection of candidates
at every stage of it.
Sequence It takes place before It takes place after
selection recruitment

JOB ANALYSIS
It is a primary tool in personnel management. In this method, a personnel
manager tries to gather, synthesize and implement the information available
regarding the workforce in the concern. A personnel manager has to undertake
job analysis to put the right man on the right job. Here are two outcomes of job
analysis:
I. Job description
II. Job specification
The information collected under job analysis is :
➔ Nature of jobs required in a concern.
➔ Nature/ size of organizational structure.
➔ Type of people required to fit that structure.
➔ The relationship of the job with other jobs in the concern.
➔ Provision of physical condition to support the activities of the concern.
➔ For example:- separate cabins for managers, special cabins for the
supervisors, healthy conditions for workers, adequate storeroom for
storekeepers.
ADVANTAGES OF JOB ANALYSIS
➔ Job analysis helps the personnel manager at the time of recruitment and
selection of the right man for the right job.
➔
➔ It helps him to understand the extent and scope of training required in that
field.
➔ It helps in evaluating the job in which the worth of the job has to be
evaluated.
➔ In those instances where a smooth workforce is required in concern.
➔ It also helps to chalk out the compensation plans for the employees.
➔ It also helps the personnel manager to undertake performance appraisal
effectively in a concern.

I. JOB DESCRIPTION
It is an organized factual statement of job contents in the form of duties and
responsibilities of a specific job. The preparation of a job description is very
important before a vacancy is advertised. It tells, in brief, the nature and type of
job. This type of document is descriptive and it constitutes all those facts that
are related to a job such as:
➔ Title/ Designation of job and location in the concern.
➔ The nature of duties and operations to be performed in that job.
 ➔ The nature of authority- responsibility relationships.
➔ Necessary qualifications are required for the job.
➔ Relationship of that job with other jobs in a concern.
➔ The provision of physical and working conditions or the work
environment required in the performance of that job.
ADVANTAGES OF JOB DESCRIPTION
➔ It helps the supervisors in assigning work to the subordinates so that they
can guide and monitor their performances.
➔ It helps in recruitment and selection procedures.
➔ It assists in manpower planning.
➔ It is also helpful in performance appraisal.
➔ It is helpful in job evaluation to decide about the rate of remuneration for
a specific job.
➔ It also helps in chalking out training and development programs.

II. JOB SPECIFICATION

It is a statement that tells us minimum acceptable human qualities which help to
perform a job. Job specification translates the job description into human
qualifications so that a job can be performed in a better manner. Job
specification helps in hiring an appropriate person for an appropriate position.
The contents are :
➔ Job title and designation
➔ Educational qualifications for that title
➔ Physical and other related attributes
➔ Physique and mental health
➔ Special attributes and abilities
➔ Maturity and dependability
➔ Relationship of that job with other jobs in a concern.
ADVANTAGES OF JOB SPECIFICATION
➔ It is helpful in preliminary screening in the selection procedure.
➔ It helps in giving due justification to each job.
➔ It also helps in designing training and development programs.
➔ It helps the supervisors for counseling and monitoring the performance of
employees.
➔ It helps in job evaluation.
 ➔ It helps the management to make decisions regarding promotion,
transfers, and giving extra benefits to the employees.
JOB ADVERTISEMENT
It is an announcement that informs people that a certain job position is
available. It is written in an engaging tone and it contains information not only
about the job position but also about your company and the benefits you offer.

WHAT SHOULD YOUR JOB POSTING CONTAIN?

➔ Job Title
➔ Location
➔ Salary
➔ Why the candidate would be interested in the role – what’s in it for them
➔ Summary of the role’s responsibilities in everyday
➔ How to apply for the role (online application/phone call/email)
➔ What to include in their application (e.g. cover letter, resumé, and
references)
➔ When applications close (cut-off date for receiving applications)
JOB ADVERTISEMENT STRUCTURE
● Job title
● Job location
● Duties & responsibilities
● Job requirements
● Company & benefits
● Applying instructions
JOB MATCHING
Job matching is the process of matching the right person to the right job based
upon the individual's inherent motivational strengths. It requires thoroughly
understanding the job and the person under consideration.
4 Benefits of Job Matching
1. Reduced Turnover Costs
2. Increased Retention Rates
3. Increased Overall Company Performance
4. A Thriving, More Profitable Organization
JOB EVALUATION
 ● In simple words, job evaluation is the rating of jobs in an organization. It
attempts to compare the relative intrinsic value or worth of jobs within an
organization. Thus, job evaluation is a comparative process.
● In the words of Kimball and Kimball “Job evaluation is an effort to
determine the relative value of every job in a plant to determine what the
fair basic wage for such a job should be”.
METHODS OF JOB EVALUATION
1. Ranking / Grading Method: The ranking of a job is done by a
committee of experts called raters. The ranking is done at the
departmental level, for every department, the job is ranked in descending
order of importance. The main benefits of this method are that it is
simple, easily understood by all concerned and easy to operate,
inexpensive, and can be used conveniently in small establishments. The
limitations include the degree of differences in the jobs. Sometimes it is
based on the rater's general knowledge of the jobs. It is inappropriate for a
big company with a complex organizational structure.
2. Point Rating Method: In this method, each job is appraised separately,
considering each of the job factors such as skill, effort, responsibility, and
working conditions and combining them into a single point score for each
job. The main advantages are that it is analytical in its approach, it gives a
quantitative value for each job. Basis and guidelines of valuation are
standardized and codified in a user manual. Disadvantages include,
manually being used for rating the jobs needs periodical revision and
update.
ADVANTAGES OF JOB EVALUATION
● Reduction in inequalities in salary structure: It is found that people
and their motivation is dependent upon how well they are being paid.
Therefore the main objective of job evaluation is to have external and
internal consistency in salary structure so that inequalities in salaries are
reduced.
● Specialization: Because of the division of labor and thereby
specialization, a large number of enterprises have got a hundred jobs and
many employees to perform them. Therefore, an attempt should be made
to define a job and thereby fix salaries for it. This is possible only through
job evaluation.
 ● Helps in the selection of employees: The job evaluation information can
be helpful at the time of selection of candidates. The factors that are
determined for job evaluation can be taken into account while selecting
the employees.
● A harmonious relationship between employees and manager:
Through job evaluation, harmonious and congenial relations can be
maintained between employees and management, so that all kinds of
salaries controversies can be minimized.
● Standardization: The process of determining the salary differentials for
different jobs becomes standardized through job evaluation. This helps in
bringing uniformity into the salary structure.
● Relevance of new jobs: Through job evaluation, one can understand the
relative value of new jobs in a concern.
LIMITATIONS OF JOB EVALUATION
● Though there are many ways of applying job evaluation flexibly, rapid
changes in technology and demand for particular skills, create problems
of adjustment that may need further study.
● When job evaluation results in substantial changes in the existing wage
structure, the possibility of implementing these changes in a relatively
short period may be restricted by the financial limits within which the
firm has to operate.
● The process of job rating is, to some extent, inexact because some of the
factors and degrees can not be measured with accuracy.
● Job evaluation takes a long time to complete, requires specialized
technical personnel, and is quite expensive.
REFERENCE CHECKS
The questions that are normally asked in any reference check are the following:
➔ What was the nature of his/her job?
➔ What did his/her superiors think of him/her?
➔ What did his/her subordinates think of him/her?
➔ Did he/she have supervisory responsibility?
➔ How hard did he/she work?
➔ How did he/she get along with others?
➔ What were his/her reasons for leaving?
➔ Would you reemploy him/her? If not, why?
 ➔ Did he/she have any domestic/financial or personal trouble which
interfered with his/her job?
➔ What are his/her strong points?
➔ What are his/her weak points?
➔ Any other relevant information?
How to Write a Resume - Basic Steps
➔ Pick the Right Resume Format & Layout
➔ Mention Your Details & Contact Information
➔ Use a Resume Summary or Objective
➔ List Your Work Experience & Achievements
➔ Mention Your Top Soft & Hard Skills
➔ Include Additional Resume Sections - Languages, Hobbies, etc.
(Optional)
➔ Tailor Your Information For the Job Ad
➔ Craft a Convincing Cover Letter
➔ Proofread Your Resume and Cover Letter
TRAINING & DEVELOPMENT
● “Training is the formal and systematic modification of behavior through
learning which occurs as a result of education, instruction, development,
and planned experience. Development is improving individual
performance in their present Roles and preparing them for greater
responsibilities in the future”. (Armstrong)
● “Training and development are described as a maintenance subsystem,
intended to improve organizational efficiency by increasing reutilization
and predictability of behavior”. (Katz & Kahn)
NEED OF TRAINING & DEVELOPMENT
➔ The training and development activity is required when the company
revises its objectives and goal to adjust to the changing market
conditions.
➔ Companies often endorse training and development programs to improve
the performance of the employees.
➔ The HR training and development is needed to set up a benchmark of
performance which employees are expected to achieve in a financial year.
 ➔ There is always a need for training and development efforts to teach the
employee new skills such as team management, communication
management, and leadership behavior.
IMPORTANCE OF TRAINING & DEVELOPMENT
➔ It is important for optimum utilization of their manpower.
➔ It helps in the improvement of skills like team management and
leadership.
➔ HR Training and development activities are vital to motivate the
employee and to increase their productivity.
➔ Training and development are required to develop a team spirit in the
organization.
➔ These programs are also important from the safety point of view as it
teaches employee to perform their job properly without any life risk.
OBJECTIVE AND PURPOSE OF TRAINING & DEVELOPMENT
➔ One of the most effective methods to show your employees that you
value them is to provide them with training. It demonstrates that you care
as much about their well-being and development as they do about your
company. Employees that are well taken care of will never desire to work
somewhere else.
➔ Training can be used as a preventative measure to prepare people for
expected and unforeseen changes and challenges in the workplace.
➔ There is no better way to produce future leaders than to train the most
talented individuals available. Employees will have a clear career path,
resulting in lower attrition and discontent.
➔ Employees are a significant and most important component of a
company's assets, and caring for them entails caring for the firm as a
whole.
➔ Therefore, any business organization that invests its time and money in its
employees' education or Training & development can only succeed in
achieving their business goals and advancing further.
TYPES OF TRAINING
➔ Technical training
➔ Quality training
➔ Skill Training
➔ Soft skills training
 ➔ Professional training
BENEFITS OF TRAINING
➔ Investing in staff training and development boosts work satisfaction and
morale.
➔ Employee turnover is reduced.
➔ Inspires employees to work harder.
➔ Improves process efficiency, resulting in financial benefit.
➔ Aids in the adoption of new technology and processes.
➔ Increases strategy and product innovation

MODULE 5
TOPICS:
➢ Man-Machine Interaction Psychology
➢ Ergonomics Safety psychology
➢ Man-Machine Interaction
Man-Machine Interaction Psychology
● Human-machine interaction with industrial plants and other dynamic
technical systems has nowadays been recognized as essential for process
safety, quality, and efficiency. It comprises all aspects of interaction and
communication between human users and their machines via the
human-machine interface.
● The term “machine” indicates any kind of dynamic technical system (or
real-time application), including its automation and decision support
equipment and software – and it relates to many diverse application
domains.
● A significant number of manufacturing systems can work automatically
with a limited contribution from employees. However, even in advanced
manufacturing systems, one of the most important factors is still the
human being.
● Usually, overall system performance depends on human decisions, and
the significance of such decisions is higher than it was in the past because
of more complex and costly production systems. In such a situation, the
efficient utilization of manufacturing equipment via proper man-machine
interaction is necessary.
 ● At the interface level, much of the work is concerned with reengineering
the human-machine interaction, commonly known as HMI, where there
are dials, meters, screens, and indicators that employees have to interact
with. Consider: how would you react if a safety warning was visible on
the side of a screen as opposed to the center of the screen?
● So, for example, in cockpit design, there are dials and displays that
provide information about the current aerodynamic operating parameters,
engine performance, as well as primary, secondary, and ancillary systems.
● The pilot needs to be able to get feedback and be able to control the
system when necessary. Color, layout, control input (button, switch, stick,
lever) and alarms, all impact usability.
● Similarly, when it comes to indicator lights, they could vary in not only
color but also intensity, whether they flash, and the frequency of the flash.
All these factors and more underlie the effective use of interfaces by a
human operator.
● Relevant psychological findings are used to determine how the operator
will best be taught the skills for the safe and efficient operation of the
system's mechanisms.

Ergonomics
● “Ergonomics (or human factors) is the scientific discipline concerned
with the understanding of the interactions among human and other
elements of a system, and the profession that applies theory, principles,
data, and methods to design to optimize human well-being and overall
system performance.” (International Ergonomics Association Executive
Council)
● Ergonomics” is the science of designing the workstation to fit within the
capabilities and limitations of the worker.
● The goal of office ergonomics is to design your office workstation so that
it fits you and allows for a comfortable working environment for
maximum productivity and efficiency.
Office Ergonomics Tips
➔ Make sure that the weight of your arms is supported at all times. If your
arms are not supported, the muscles of your neck and shoulders will be
crying by the end of the day.
➔ Don’t be a slouch!
➔ The monitor should be placed directly in front of you, with the top no
higher than eye level.
➔ Talking on the phone with the phone receiver jammed between the neck
and ear is really bad practice. You know that’s true, so don’t do it!
 ➔ The keyboard and the mouse should be close enough to prevent excessive
reaching which strains the shoulders and arms.
➔ Avoid eye strain by making sure that your monitor is not too close, it
should be at least an arm’s length away.
➔ Take steps to control screen glare, and make sure that the monitor is not
placed in front of a window or a bright background.
➔ You can rest your eyes periodically for several seconds by looking at
objects at a distance to give your eyes a break.
➔ The feet should not be dangling when you are seated. If your feet don’t
comfortably reach the floor or there is pressure on the backs of your legs,
use a footrest or lower the keyboard and chair.
Psychological safety
It is being able to show and employ one's self without fear of negative
consequences of self-image, status, or career (Kahn 1990, p. 708). It can be
defined as a shared belief that the team is safe for interpersonal risk-taking.
Benefits of psychological safety
Psychological safety benefits organizations and teams in many different ways.
The following are the most widely empirically supported consequences of a
team being psychologically safe:

1. Improves likelihood that an attempted process innovation will be

successful
2. Increases amount members learn from mistakes
3. Boosts employee engagement
4. Improves team innovation

Leaders as well as some aspects of the team can increase team members'
psychological safety. Two aspects of leadership are particularly instrumental in
creating a psychologically safe team. They are leaders using:

1. Participatory management
2. Inclusive management]

There are also two aspects of a team that help improve its psychological safety.
They are:

1. A clear team structure where members understand their role on the team
2. Strong relationships between cohesive team members
10 tips for work safety

1. Understand the risks. Once you know the particular hazards of your job
or workplace, you can take steps to reduce your risk of work-related
injury or illness.
2. Reduce workplace stress. Common causes include long hours, heavy
workload, job insecurity, and conflicts with coworkers or bosses. Stress
can lead to depression, sleeping difficulties, and problems with
concentration.
3. Take regular breaks. Staying fresh and alert will help you avoid injury
or burnout. Schedule the most difficult tasks of each day for times when
your concentration is best, such as first thing in the morning.
4. Avoid stooping or twisting. Use ergonomically designed furniture and
equipment, and rearrange your work area so that everything you need is
within easy reach.
5. Use mechanical aids whenever possible. Instead of trying to lift or carry
a heavy object, use a wheelbarrow, conveyor belt, crane, or forklift.
6. Protect your back. If you do need to pick up and carry heavy loads, keep
the load close to your body and lift with your thigh muscles.
7. Wear protective equipment to suit the task. If worn correctly, gear such
as earplugs, earmuffs, hard hats, safety goggles, gloves, or full-face
masks can dramatically reduce your risk of injury.
8. Stay sober. Alcohol and drugs are contributing factors in around three
percent of workplace fatalities.
9. Talk over any concerns. Your employer or human resources manager
needs to be informed about hazards and risks. Your employer is legally
obliged to ensure a safe working environment.