1.

1 INTRODUCTION TO PSYCHOLOGY

As a science, psychology applies the scientific method to study psychological phenomena. A

goal of psychology is not only to understand the processes that underly human thinking and
behaviour, but apply that understanding to solve practical problems. Psychology is a broad
ranging discipline which incorporates both the scientific study of human behaviour and its
biological, cognitive, and social bases, and the systematic application of this knowledge to
applied problems. Training in psychology involves not only the acquisition of information, but
also the development and cultivation of analytical thinking skills which are valuable personally
and in many professions.

Clinical psychologists, for example, may work in hospitals where they might assess and treat
people with emotional and behavioural problems, or they may work in private practice or clinics.
Organisational psychologists may consult independently or work within private and public
organisations as human resource professionals, helping to develop a motivated and skilled
workforce and to diagnose and solve group and organisational problems. Educational
psychologists typically work within schools or the public service, and sport psychologists often
work to enhance the performance of teams or individuals.

MEANING OF PSYCHOLOGY:

Psychology is the study of mind and behaviour; it encompasses the biological influence, social
pressures and environmental factors that affect how people think, act and feel. Gaining a richer
and deeper understanding of psychology can help people achieve insights into their own actions
as well as a better understanding of other people. Psychology is a broad and diverse field that
encompasses the study of human thought, behaviour, development, personality, emotion,
motivation, and more.

The term ‘psychology’, literally means the science of the soul. (Psyche—soul; logos =science).
Formerly, psychology was a part of metaphysics, and dealt with the nature, origin, and destiny of
the soul. It was called rational psychology. But modern psychology is empirical, and does not
deal with the problems relating to the soul.

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 It deals with mental process apart from the soul or mental substance. It is the science of
experience and behaviour, which tells us how the mind works and behaves. It can predict the
behaviour of an individual, and control it to a certain extent by putting him under proper
conditions. It seeks to discover the laws of mind.

Psychology is concerned with the experience and behaviour of the individual. Behaviour is the
expression of experience, which belongs to a subject, and which is due to the interaction of
subject and object. It implies the duality of subject and object. If there were no subject and
object, there would be no experience.

Experience presupposes a subject, or mind, or self that experiences an object, and involves the
reality of subject and object. So Psychology has to assume the reality of the subject, or mind as
an experiment, but it does not enquire into its nature. Modern psychology tries to explain the
nature and development of experience and behaviour.

The modern Behaviorists reject the notions of mind and consciousness, and regard psychology as
the science of behaviour or response of an organism to the stimulus. They reduce psychology to
a biological science. They regard the so-called mental processes as mere responses of an
organism to stimuli in the environment, and define psychology as the science of behaviour.

DEFINITIONS OF PSYCHOLOGY:

 H.D. Hamm defines psychology as the '' scientific study of the behavior of humans and animals''.
 Eric Pettifor defines psychology as '' an art which presents itself as science''
 According to Woodworth: "The Psychology deals with the activities of the individual in relation
to his environment."
 Skinner: "Psychology is the science of behavior and experience."
 Munns: "Psychology today concerns with the scientific investigation of behavior."
 Crow & Crow: “Psychology is the study of human behavior and human relationships."

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 INTRODUCTION TO ORGANIZATIONAL PSYCHOLOGY:

Organizational psychology is a field held that utilizes scientific methodology to better understand
the behaviour of individuals working in organizational settings. This knowledge is also used, in a
variety of ways, to help make organizations more effective. Effective organizations are typically
more productive, often provide higher-quality services to customers, and are usually more
financially successful than less effective organizations. For private organizations, financial
success often results in greater job securities for employees, increased shareholder wealth for
investors. for public organizations, such as police departments, municipal governments, and
public universities, success means higher-quality services and cost savings to taxpayers.
Successful organizations provide employment opportunities, which helps to foster the economic
well-being of society as a whole. Also, in many instances, employees in successful organizations
are more satisfied and fulfilled in their work than employees in less successful organizations.
These positive attitudes may carry over to nonwork-related roles such as parent and community
member. Consumers also benefit from enhanced organizational effectiveness than their less
successful competitors.

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 behaviour. 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.

DEFINITIONS OF ORGANIZATIONAL PSYCHOLOGY:

 Jex
In 2002, Jex defined Organisational psychology as the “scientific study of individual and group
behaviour in formal organisational settings”
 Spector
In 2002, Spector defined the concept of organizational and / or industrial psychology as a small
field of applied psychology that refers to the development and applications of scientific
principles in the workplace.
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 Andy and Conte
Three years later, Andy and Conte reviewed the conceptualization carried out by Spector and
reformulated the term organizational psychology as the application of the psychological, the
theory and the research in the labor scenario.
These authors also postulated that industrial and / or organizational psychology went beyond the
physical limits of the workplace, influencing many other factors in organizational behavior.
 Blum and Neylor
These authors were among the pioneers in establishing the concept of organizational psychology
and defined it as the application or extension of psychological facts and principles to problems
that concern human beings working within the context of business and industry.
 Saal and Knight
According to these authors, organizational psychology refers to two main concepts.
In the first place, it is the study of the behavior, the thoughts and the feelings of the human
beings as they adapt to the companions, the objectives and the environment in which they
develop professionally.

1.2 CHARACTERISTICS OF ORGANIZATIONAL PSYCHOLOGY

2. Organizational Psychology explains the reasons people behave as they do, which helps the
managers to create environment conducive to better performance.
3. The organizational psychology is more focused on understanding how organizations affect
individual behaviour.
4. Organizational psychology is mostly concerned with the subject areas like: Socialization,
Motivation, Occupational Stress, Leadership, Group performance and organizational
Development.
5. Organizational psychology provide valuable tools to managers and leaders such as goal setting
and group decision-making strategies,
6. Organizational psychology covers a range of values, emotions, and cognitions within a person
through the dynamics of interpersonal communication (in groups, teams, or leader) to system
wide interventions such as the creation of a continuous learning environment.

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7. It tries to improve one's job satisfaction, increase productivity and have a healthy relationship
with the organization while identifying potential issues at the workplace and suggesting solutions
based on facts
8. Organizational psychology handles one's work relationship from many aspects, from the
employees’ point of view, from the employer's point of view while taking external factors into
account as well.
9. Organizational Psychology is a field of study that includes understanding what people think,
feel and do in organizations. In other words, it’s brain stuff.
10. Organizational Psychology includes Organizational Behaviour as a subset, in which the
psychology explains the behaviour. Organizational structures, social norms, management styles,
and role expectations are all factors that can influence how people behave within an
organization.
11. Organisational psychology utilizesscientifically-based psychological principles and research
methods to study a variety of topics important to understanding human behaviour in many
different types of organisations.
12. It is a legitimate field of study in its own right, organizational psychology is actually part of the
broader field of Industrial/Organizational (I/O) psychology.

1.3 MEANING AND DEFINITIONS OF ORGANIZATIONS

MEANING:
An entrepreneur organizes various factors of production like land, labour, capital, machinery,
etc. for channelizing them into productive activities. The product finally reaches consumers
through various agencies. Business activities are divided into various functions; these functions
are assigned to different individuals. Various individual efforts must lead to the achievement of
common business goals. Organization is the structural framework of duties and responsibilities
required of personnel in performing various functions with a view to achieve business goals
through organization. Management tries to combine various business activities to accomplish
predetermined goals.
Present business system is very complex. The unit must be run efficiently to stay in the
competitive world of business. Various jobs are to be performed by persons most suitable for

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them. First of all various activities should be grouped into different functions. The authority and
responsibility is fixed at various levels. All efforts should be made to co-ordinate different
activities for running the units efficiently so that cost of production may be reduced and
profitability of the unit may be increased.

DEFINITIONS:

Louis Allen “Organization is the process of identifying and grouping work to be performed,
defining and delegating responsibility and authority and establishing relationships for the
purpose of enabling people to work most effectively together in accomplishing objectives.”

Oliver Sheldon “Organization is the process so combining the work which individuals or groups
have to perform with the facilities necessary for its execution, that the duties so performed
provide the best channels for the efficient, systematic, positive and coordinated application of the
available effort”.

Wheeler, “Internal organization is the structural framework of duties and responsibilities

required of personnel in performing various functions within the company. It is essentially a blue
print for action resulting in a mechanism for carrying out function to achieve the goals set up by
company management”. In Wheeler’s view, organization is a process of fixing duties and
responsibilities of persons in an enterprise so that business goals are achieved.

Koontz and O’Donnell, ‘The establishment of authority relationships with provision for co-
ordination between them, both vertically and horizontally in the enterprise structure.” These
authors view organization as a coordinating point among various persons in the business.

CHARACTERISTICS OF ORGANIZATION

The following are the different characteristics of an organisation:

(a) Modern organisational is too large in terms of number of people in employment and in terms
of the amount of investment. Direct contact between employer and employee is not possible in
modern organisation.

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(b) Division of Work:

In organisation the total work of the enterprise is divided into activities and functions. For
efficient accomplishment various activities are assigned to different persons. This brings in
division of labour. Specialisation in different activities is necessary to improve one’s efficiency.
Organisation helps in division of work into related activities so that they are assigned to different
individuals.

(c) Co-Ordination of Various Activities:

Co-ordination among various activities of a department and of the organisation is necessary for
the harmonious functioning of the organisation. Co-ordination is done by the divisional head and
the organisation-head.

(d) Huge Investment and Complicated Technology:

Modern organisation involves huge investment and complicated technology, their management
and operation is a complex affair. It needs assistance from specialists at all levels.

(e) Mutually Agreed Purpose:

There must be mutually agreed purpose because all activities in an organisation are goal-
oriented.

(f) Proper System of Working in All Organisations:

There must be proper system of working in all organizations. It means there must be well defined
hierarchical levels, a chain of command, rules and procedures and communication network, so
that consistency and uniformity in behaviour may exist.

(g) Differentiation is a Must:

A chain of systematic division of labour takes place by assigning authority and responsibility to
an individual who is supposed to be specialized in the job and this leads to differentiation.

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(h) Interaction with Other Systems is Also Must:

All systems are interdependent and exert influence on others and are influenced by others.
Mutual dependence necessitates interaction and consequently adaptation.

Thus, the modern organisation is an ideal co-ordination of the functions of a number of people
for attaining the mutually agreed purposes through a well-defined system of working, i.e.,
hierarchical levels, chain of command, rules and procedures and communications and through
the principle of division of labour. It influences and is influenced by the social systems.

TYPES OF ORGANIZATIONAL STRUCTURE:

Hierarchical org structure

Functional org structure

Horizontal or flat org structure

Divisional org structure

Matrix org structure

Team-based org structure

Network org structure

1. Hierarchical org structure

The pyramid-shaped organizational chart is referred to as known as a hierarchical org chart. It’s
the most common type of organizational structure––the chain of command goes from the top
(e.g., the CEO or manager) down (e.g., entry-level and low-level employees) and each employee
has a supervisor.

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 2. Functional org structure

Similar to a hierarchical organizational structure, a functional org structure starts with positions
with the highest levels of responsibility at the top and goes down from there. Primarily, though,
employees are organized according to their specific skills and their corresponding function in the
company. Each separate department is managed independently.

3. Horizontal or flat org structure

A horizontal or flat organizational structure fits companies with few levels between upper
management and staff-level employees. Many start-up businesses use a horizontal org structure
before they grow large enough to build out different departments, but some organizations
maintain this structure since it encourages less supervision and more involvement from all

4. Divisional org structure

In divisional organizational structures, a company’s divisions have control over their own
resources, essentially operating like their own company within the larger organization. Each
division can have its own marketing team, sales team, IT team, etc. This structure works well for
large companies as it empowers the various divisions to make decisions without everyone having
to report to just a few executives.

 Market-based divisional org structure

Divisions are separated by market, industry, or customer type. A large consumer goods
company, like Target or Walmart, might separate its durable goods (clothing, electronics,
furniture, etc.) from its food or logistics divisions.

 Product-based divisional org structure

Divisions are separated by product line. For example, a tech company might have a division
dedicated to its cloud offerings, while the rest of the divisions focus on the different software
offerings––e.g., Adobe and its creative suite of Illustrator, Photoshop, InDesign, etc.

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 Geographic divisional org structure

Divisions are separated by region, territories, or districts, offering more effective localization and
logistics. Companies might establish satellite offices across the country country or the globe in
order to stay close to their customers.

5. Matrix org structure

A matrix organizational chart looks like a grid, and it shows cross-functional teams that form for
special projects. For example, an engineer may regularly belong to the engineering department
(led by an engineering director) but work on a temporary project (led by a project manager). The
matrix org chart accounts for both of these roles and reporting relationships.

6. Team-based org structure

It’ll come as no surprise that a team-based organizational structure groups employees according
to (what else?) teams––think scrum teams or tiger teams. A team organizational structure is
meant to disrupt the traditional hierarchy, focusing more on problem solving, cooperation, and
giving employees more control.

7. Network org structure

These days, few businesses have all their services under one roof, and juggling the multitudes of
vendors, subcontractors, freelancers, offsite locations, and satellite offices can get confusing. A
network organizational structure makes sense of the spread of resources. It can also describe an
internal structure that focuses more on open communication and relationships rather than
hierarchy.

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IMPORTANCE OF ORGANIZATIONS:

Organisation brings adaptability to the table for any enterprise. It helps in a smooth transition in
accordance with the dynamic business environment. To point out, this is achieved by facilitating
growth and survival. The importance of organisation is highlighted as follows;

1. Benefits of Specialisation

Organisation assigns work in a systematic manner to the diverse employees within an

organisation. It ensures that suitable work is handed out repetitively to an employee who is a
good performer in his field. An employee working regularly in a specific area gains invaluable
experience in the long run. Consequently, this leads to specialisation.

2. Clarity in Working Relationships

As discussed before, organisation induces accountability by defining relationships among the

employees within an enterprise. This is done by defining whom an employee is accountable to.
In effect, it provides an ordered flow of information and instructions. Furthermore, this also
helps in clarification of the extent of authority, responsibility and provides for a hierarchy.

3. Optimum Utilisation of Resources

Organisation helps in optimum utilisation of financial and human resources. It not only aids in
the proper assignment of jobs to suitable employees but also keeps track that there is no waste of
resources and efforts due to duplication of work.

4. Effective Administration & Governance

Another important feature of organising is that it ensures that the jobs are clearly defined within
an enterprise such that there is no duplication and wastage. Coupled with, facilitating the
clarification of work relationships, it promises effective administration.

5. Development of Personnel

Assignment of jobs to suitable personnel is an important step for the organisation. This
delegation of jobs helps in the induction of creativity in managers. This happens because, with
the help of delegation, a manager not only looks to reduce the workload but also discover new
ways of getting the tasks done.

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Further, this gives them the tie to explore areas for growth of the company. From the employee’s
perspective, it generates experience and prepares him to face new challenges which effectively
helps him to realise his full potential.

6. Growth and Expansion

Organisation ensures that the enterprise undertakes new challenges. As a result, the company
grows and diversifies.

7. Coordination is established:

All the persons working within a department are specialists of their respective jobs. It makes
coordination easier at the departmental level.

8. Managerial Efficiency is increased:

It helps in increasing managerial efficiency because of performing the same work again and
again. Further, this results in increased profit.

9. Minimal Duplication of Efforts:

In this type of organisation unnecessary duplication of efforts is eliminated. For example, the
function of finance is only carried out by the finance department. There is no need to establish
two or more departments. It makes it possible to utilise the human and other resources
effectively.

10. Training is facilitated:

It facilitates the training of personnel as the focus is only on a limited range of skills. For
example, the employees of finance department are given training of financial issues.

11. Equal Weight age to All Functions:

It ensures that all the functions/activities get equal weight age.

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 1.4 SCOPE OF ORGANIZATIONAL PSYCHOLOGY

1. Organizational psychology is also known as “Industrial and Occupational Psychology” and

also as “Business Psychology”. The purpose of organizational psychology is to improve the
overall efficiency of an organization by analysing and implementing necessary tools in place.
2. It studies everything that has an effect on the organization from the management styles to
employees’ conditions. It tries to create optimal conditions for a good place in which the
employees are in peace with the management leading to better business, higher job satisfactions
and maximum efficiency.
3. Organizational psychology is concerned with conflicts at the workplace as well as
psychological matters at the workplace to ensure healthy social connection and communication
in the organization
4. Studying the organizational structure of an organization from the perspective of organizational
psychology is essential since it will bring improvements to the organizational structure and
identify areas of improvement by constantly studying and analysing.
5. Organizational psychology’s scope could be defined as increasing the overall efficiency of an
organization by studying the organization, behaviours and identify issues that has negative
effects on the organization.
6. Organizational psychology tackles various issues by implementing training and development
programs, performance appraisal programs which will help identify the best person for a job,
suggest ideas that will be beneficial for the organization and the employees
7. Organizational psychologists teach management about how to select the right person for a
particular job requirement and also set out the criteria through which they can be promoted.

8. Topics Covered In Organisational Psychology More Closely:

a. Work Motivation:
Motivation is the force that energizes an individual to reach a goal. The psychological study of
motivation answers the question of why people do what they do. Taylor’s introduction of the
piece rate and the bank wiring room study at Hawthorne are two examples of how complex
worker motivation is. At the workplace, it is important for the manager to understand the needs
and drives of subordinates and motivate them accordingly.
b. Job Satisfaction: Organisational Commitment, and Organisational Justice Job satisfaction:

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 one of the most widely researched topics in organisational psychology, reflects an employee’s
overall assessment of his/her job. Job satisfaction has theoretical and practical utility and has
been linked to important job outcomes including absenteeism, employee turnover, health,
organisational effectiveness, and attitudinal variables such as job involvement and organisational
commitment.
c. Leadership:
Leadership is a process of influencing, supporting and motivating others to work effectively
towards achieving the organisation’s objectives or goal. Organisational psychologists are
particularly interested in leadership as it affects the job performances and satisfaction of
subordinates. Organisational psychology literature also makes a distinction between leaders and
managers. While managers process administrative tasks that organize work environments,
leaders conduct those same tasks while also inspiring and motivating the workforce. Managers
cope with complexity; leaders cope with change.
d. Group behaviour: Group behaviour is the interaction between individuals of a collective such
as an organisation. The interactions serve to fulfill some need satisfaction of an individual who is
part of the collective and helps to provide a basis for his interaction with specific members of the
group. A specific area of research in group behaviour is the dynamics of teams. It is increasingly
being recognized that a group of people working together can achieve much more than if the
individuals of the team were working on their own.
e. Work Stress:
Workplace stress is stress that arises from an interaction between people and their jobs.
Research has focused on environmental, organisational, social and individual stressors and their
outcomes. The degree of stress experienced and the ways in which a person reacts to it is also
influenced by a number of factors that are studied as moderator variable
f. Organisational Culture and Development:
Organisational culture as a construct is a relatively recent addition to contemporary
organisational psychology literature. Culture refers to the commonly held and relatively stable
beliefs, attitudes and values that exist within the organisation. Organisation development is an
ongoing, systematic process to implement effective change in an organisation. Psychologists in
this area are focused on understanding and managing organisational change to increase an
organisation’s effectiveness; the change may involve people, work procedures, or technology.

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g. Productive and Counterproductive Behaviour:
Productive behaviour is defined as employee behaviour that contributes positively to the goals
and objectives of an organisation. There are three common forms of productive behavior in
organisations: job performance, organisational citizenship behavior (OCB), and innovation.
Counterproductive behaviour can be defined as employee behaviour that goes against the goals
of an organisation. These behaviors can be intentional or unintentional and result from a wide
range of underlying causes and motivations.
h. Work-Life Balance:
The balance between work and all the other roles (such as family, personal activities, leisure,
community, religion, etc) exercised by a person is referred to as work-life balance. An adequate
work-family balance could lead to facilitation of positive experiences in both the domains, and
conversely, an imbalance could lead to work-family conflict.

1.5 FOUNDATIONS OF ORGANIZATIONAL PSYCHOLOGY

The subject Organizational psychology is based on a few fundamental concepts which revolve
around the nature of people and organisations. These concepts are not peculiar to the field of OB.
Every discipline, be it a social science or a physical science, will flourish on definite
assumptions. For example, the famous principle which runs through financial accounting is that
for every debit there shall be a corresponding credit. Similarly, the law of gravity is common
whether it is in Mumbai or Bangalore. Coming to Organizational psychology, the basic
assumptions distinct to the discipline are:

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There are differences between individuals. A whole person.
Behaviour of an individual is caused.
An individual has dignity.

Organisations are social systems.

Mutuality of interest among organisational members.

Whilst the first four concepts centre around people, the next two are concerned with
organisations. The last one is a combination of the first five assumptions. A brief explanation of
each assumption follows.

1. Individual Differences: People have much in common (they become excited by the arrival of
a new child in the family or they are grieved by the loss of a loved one), but each person in the
world is also individually different. Each one is different from the others in several ways.
Whether it is intelligence, physique, personality, diction, or any such trait, one can find striking
differences. The idea of difference comes originally from psychology. From the day of birth,
each person is unique and individual experiences after birth make people even more different.
Individual differences mean that management can cause the greatest motivation among
employees by treating them differently. If it were not for individual differences, some standard,
across-the-board way of dealing with all the employees could be adopted and minimum
judgement would be required thereafter.

It is because of individual differences that organization psychology begins with the individual.
Only a person can take responsibility and make decisions, a group, by nature, cannot do so. A
group is powerless until individuals therein act.

2. A whole Person: When an individual is appointed, his/her skill alone is not hired, his/her
social background, likes and dislikes, pride and prejudices-are also hired. A person’s family life
cannot be separated from his or her work life. It is for this reason that managers should endeavor
to make the workplace a home away from home. They not only strive hard to develop a better
employee out of a worker, but also a better person in terms of growth and fulfillment.

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3. Caused Behaviour: The behaviour of the employee is caused and not random. This behaviour
is directed towards someone that the employee believes, rightly or wrongly, is in his/her interest.
Thus, when a worker comes late to his or her work, pelts stones at a running bus, or abuses the
supervisor, there is a cause behind it. The manager must realize this basic principle and correct
this behaviour and tackle the issue at its root.

4. Human Dignity: This concept is of a different order from the other three just discussed
because it is more an ethical philosophy than a scientific conclusion. It confirms that people are
to be treated differently from other factors of production because they are of a higher order in the
universe. It recognizes that people want to be treated with respect and dignity and should be
treated. Every job, however simple, entitles the people who do it to proper respect and
recognition of their unique aspirations and abilities. The concept of human dignity rejects the old
idea of using employees as economic tools.

Ethical philosophy is reflected in the conscience of humankind, confirmed by the experience of

people in all ages. It has to do with the consequences of our acts to ourselves and to others. It
recognizes that life has an overall purpose and accepts the inner integrity of each individual.
Since organisational behaviour always involves people, ethical philosophy is involved in one
way or the other in each action. Human decisions cannot and should not be made devoid of
values.

5. Organisations are Social Systems: From sociology we learn that organisations are social
systems; consequently activities therein are governed by social as well as psychological laws.
Just as people have psychological needs, they also have social roles and status. Their behaviour
is influenced by their group as well as by their individual drives. In fact, two types of social
systems exist side by side in organisations. One is the formal system and the other is the informal
social system.

The existence of a social system implies that the organisational environment is one of dynamic
change, rather than a static set of relations as revealed in an organisation chart. All parts of the
system are interdependent and are subject to influence by any other part.

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6. Mutuality of Interest: Mutual interest is represented by the statement that ‘organisations need
people and people also need organisations’. Organisations have human purpose. They are formed
and maintained on the basis of some mutuality of interest among their participants. People see
organisations as a means to help them reach their goals, while, at the same time, organisations
need people to help attain organisational objectives. If mutuality is lacking, it makes no sense to
try to assemble a group and develop cooperation, because there is no common base on which to
build. Mutual interest provides a superordinate goal that unites the variety of needs that people
bring to organisations. The result is that people are encouraged to attack organisational problems
rather than each other.

7. Holistic Concept: When the above six fundamental concepts of OB are placed together, a
holistic concept emerges. This concept interprets people-organisation relationships in terms of
the whole person, whole group, whole organisation, and the whole social system. It takes an all-
encompassing view of people in organisations in an effort to understand as many of the possible
factors that influence their behaviour. Issues are analysed in terms of the situation affecting them
rather than in terms of an isolated event or problem.

1.6 CLASSICAL STUDIES- ORGANIZATION PSYCHOLOGY

There are two classical theories discussed below that paved the way for organization psychology.
1.6.1 Time & Motion Study
1.6.2 Hawthrone studies

1.6.1 TIME AND MOTION STUDY

“Work study is a generic term for those techniques, method study and work measurement which
are used in the examination of human work in all its contexts. And which lead systematically to
the investigation of all the factors which affect the efficiency and economy of the situation being
reviewed, in order to effect improvement.”

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 WORKSTUDY

METHOD STUDY WORK MEASUREMENT

MOTION STUDY TIME STUDY

HIGHER PRODUCTIVITY

Framework of work study

Work study is a means of enhancing the production efficiency (productivity) of the firm by
elimination of waste and unnecessary operations. It is a technique to identify non-value adding
operations by investigation of all the factors affecting the job. It is the only accurate and
systematic procedure oriented technique to establish time standards. It is going to contribute to
the profit as the savings will start immediately and continue throughout the life of the product.
Method study and work measurement is part of work study. Part of method study is motion
study, work measurement is also called by the name ‘Time study’.

Advantages of Work Study

Following are the advantages of work study:

1. It helps to achieve the smooth production flow with minimum interruptions.

2. It helps to reduce the cost of the product by eliminating waste and unnecessary operations.

3. Better worker-management relations.

4. Meets the delivery commitment.

5. Reduction in rejections and scrap and higher utilisation of resources of the organization.

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6. Helps to achieve better working conditions.

7. Better workplace layout.

8. Improves upon the existing process or methods and helps in standardization and
simplification.

9. Helps to establish the standard time for an operation or job which has got application in
manpower planning, production planning.

TIME STUDY

Time-and-motion study, in the evaluation of industrial performance, analysis of the time spent
in going through the different motions of a job or series of jobs. Time-and-motion studies were
first instituted in offices and factories in the United States in the early 20th century. These
studies came to be adopted on a wide scale as a means of improving the methods of work by
subdividing the different operations of a job into measurable elements. Such analyses were, in
turn, used as aids to standardization of work and in checking the efficiency of people and
equipment and the mode of their combination.

Time and Motion studies are a center arrangement of instruments which are utilized by the
manager in the industrial area to improve the presentation or the operational effectiveness. It is
finished by separating the work into more straightforward units and setting the execution
benchmarks. This can be utilized related to the pay – motivating force model which helps in
increasing employee motivation. The time and movement contemplates were at first used to
improve efficiency in assembling units but later saw enormous use even in the administration
ventures. Time and motion studies can be utilized to decide the most ideal technique to play out
the sub undertakings in a specialist's activity. This is the first piece-rate remuneration model to
boost the laborers' profitability and to recognize and prepare the workers based on character and
abilities investigation

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 History

The time and motion contemplates are the cornerstone of the logical administration development
began in the late nineteenth century in the United States of America. These are the aftereffects of
the work done by the stalwarts of the logical administration development – Frederick Winslow
Taylor, Frank B Gilbreth and Lillian Gilbreth. Fredrick Winslow Taylor is the father of logical
administration and in certainty the development itself is otherwise called Taylorism. He
distributed his way breaking book, The Principles of Scientific Management in the year 1911,
wherein he depicts in detail how logical administration techniques can help in improving worker
productivity in a modern set up. The center thought behind the logical administration was an
away from between the obligations of the supervisor and the laborers. The supervisors include
fundamentally in arranging though the laborers are answerable for the execution of the errands.
The key idea for the Scientific Management is the sorted out investigation of work.

The Need for study

i. It helps in improving the current strategies of performance improvement irrespective of the

business or size of activity. The examinations will likewise help in recognizing the correct floor
plan or activity design of the manufacturing plant or office
ii. The consequences of the time study when executed lead to better asset usage, higher job
satisfaction and generally speaking proficiency.
iii. It can likewise be utilized to cut manual exertion due to the execution of better work process
measures.

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Time and motion study (also referred to as motion and time study, the terms are used
interchangeably) is the scientific study of the conservation of human resources in the search for
the most efficient method of doing a task. A fascination with the word “efficiency” began in the
late 19th and early 20th centuries when it was considered one of the most important concepts.

Time study began in the 1880s as a means of wage-rate setting by Frederick W. Taylor, who is
regarded as the “father of scientific management.” It consists of a wide variety of procedures for
determining the amount of time required, under certain standard conditions of measurement, for
tasks involving some human activity.

Motion study was developed by Frank B. Gilbreth and Lillian M. Gilbreth and consists of a wide
variety of procedures for the description, systematic analysis, and means of improving work
methods. It is difficult to separate these two aspects completely. Therefore, the combined term

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usually refers to all three phases of the activity: method determination, time appraisal, and
development of material for the application of these data.

Frank and Lillian also broadened scientific management by including the human element,
therefore using psychology to gain the cooperation of employees. Motion and time analysis
could be used to help find a preferential way of doing the work and could assist in effectively
managing or controlling the activity. This approach has been successfully applied to factories,
hospitals, department stores, housework, banks, cafeteria work, libraries, music, and to many
other human activities. For instance, factories have used it to reduce wasted time and improve
the time to compete a task, while banks use it to help team members reach their sales goals.
However, the goal of a time and motion study is not simply efficiency. These studies are done to
create a baseline that can be used in the future when evaluating procedural, equipment, or
personnel changes. The goal can be to understand the skills required to enable individuals to
perform the work and, thus, to provide the correct training. Another may be to reduce the
discomfort experienced, especially in the case of surgical procedures—a goal such as this,
namely, to create less tissue damage, may run counter to efficiency. In the case of athletes, the
goal may be faster speed or more endurance, which may be achieved not necessarily by the most
efficient way.

Crossing an item off from your to-do list washes a sense of accomplishment over you. But on the
sight of the unfinished items and a quick glance at the clock, panic crawls its way in. Another day
of mad rush impends, to get the piling work done on time and to no satisfaction. You admonish
yourself for the inefficiency, thinking that you should have planned and thought this through. And
what you thought isn’t far from the truth of what you ideally should have done. How? That’s
where Scientific Management and Time & Motion Study come in.

As the name suggests, time & motion study a portmanteau of time-study and motion-study, both
of which are scientific studies in search of optimization of performance by understanding the time
and labour required. The great Athenian thinker Socrates once said, “The unexamined life is not
worth living”. Primarily employed for repetitive tasks in industries, time-study was developed in
the period between the two World Wars by Frederick W. Taylor. It dwells into procedural
measurement of time taken for completion of tasks, while also accommodating human activities.

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Motion study developed by Frank B. Gilbreth and Lillian M. Gilbreth describes, systematically
analyses and provides means for improvement of methods. Accompanied by work-simplification
— cutting down on redundant and wasteful motions — the combination of the two studies helps
in setting time standards along with a wage-incentive system to motivate the workers.

Source: Advantage

Time-motion study can be simmered down to a systematic investigation and analysis of the
number of movements needed to get work done, and the bracket of time that each correct
movement consumes. These movements can range from the motions of a secretary through the
day such as taking calls, sending emails and scheduling meetings to the motions of an assembly
unit of a car company such as reaching, grasping and placing parts of a car. In this way, time-
motion study can be used in cafeterias, libraries, banks, department stores and even household
work to increase operational efficiency.

The knowledge of time-motion study is used as a tool for better comprehension of scientific
management. What is scientific management then? Taylor, the man behind the concept, believed
that optimising the way a work is done rather than extracting the best out of the workers could
prove to be more efficient. The philosophy of scientific management can be phrased as follows —

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scientific analysis of the methodology of work and appropriate allocation of labour or tasks. It is
to be noted that this ideology was developed in a time when there was no standardisation and
motivation, no incentive for more efficient labour. Taylor, who was then a mechanical engineer
(understandably interested in efficiency), conducted various experiments in his workplace (the
most famous being a shovel design) and studied the most optimal ways in which a work could be
done. This led to the framing of the fundamentals of scientific management — Taylorism.

Source: ToolsHero

However, Taylorism in the coming days turned out to be a flop. Experts argued that this
methodology dehumanised the workforce and converted man to machine by following a
reductionist approach to attain optimisation. The implementation seemed to leave no scope for the
worker to think or innovate. The counter-argument was that the modern application of this
technique was not the same as what Taylor visualised. Here’s what he felt:

“The task is always so regulated that the man who is well suited to his job will thrive while
working at this rate during a long term of years and grow happier and more prosperous, instead
of being overworked.”

Though both Taylor and the Gilbreths jointly pioneered the concept of scientific management,
there were some abstract differences in their approaches. While Taylor’s theory was more focused
on achieving maximum efficiency by decreasing the total process time with not much concern for
the practical limitations, the Gilbreths gave more importance to the welfare of workers. In

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Taylor’s theory, which is often quoted to be the “classical perspective” of scientific management,
workers have lesser relevance compared to profit.

Regardless of the reception and deficiencies, implementation of scientific management was one of
the first instances when process improvement and management were treated as a scientific
problem. Ideas from Taylorism were invoked in what resulted in the fourth Industrial Revolution,
Industry 4.0, to gain perspectives for Industrial Automation. Although scientific management has
evolved by leaps and bounds, one would not be wrong to assume that Taylorism laid the
foundation for the large and influential practices of today’s industries.

MOTION STUDY

Motion study is part of method study where analysis of the motion of an operator or work will be
studied by following the prescribed methods.

Principles of Motion study

There are a number of principles concerning the economy of movements which have been
developed as a result of experience and which forms the basis for the development of improved
methods at the workplace. These are first used by Frank Gilbreth, the founder of motion study
and further rearranged and amplified by Barnes, Maynard and others.

The principles are grouped into three headings:

(a) Use of the human body.

(b) Arrangement of workplace.

(c) Design of tools and equipment.

(A) Uses of Human Body When possible:

1. The two hands should begin and complete their movements at the same time.

2. The two hands should not be idle at the same time except during periods of rest.

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3. Motions of the arms should be made simultaneously.

4. Hand and body motions should be made at the lowest classification at which it is possible to
do the work satisfactorily.

5. Momentum should be employed to help the worker, but should be reduced to a minimum
whenever it has to be overcome by muscular effort.

6. Continuous curved movements are to be preferred to straight line motions involving sudden
and changes in directions.

7. ‘Ballistic’ (i.e., free swinging) movements are faster, easier and more accurate than restricted
or controlled movements.

8. Rhythm is essential to the smooth and automatic performance of a repetitive operation. The
work should be arranged to permit easy and natural rhythm wherever possible.

9. Work should be arranged so that eye movements are confined to a comfortable area, without
the need for frequent changes of focus.

(B) Arrangement of the Workplace

1. Definite and fixed stations should be provided for all tools and materials to permit habit
formation.

2. Tools and materials should be pre-positioned to reduce searching.

3. Gravity fed, bins and containers should be used to deliver the materials as close to the point of
use as possible.

4. Tools, materials and controls should be located within a maximum working area and as near to
the worker as possible.

5. Materials and tools should be arranged to permit the best sequence of motions.

6. ‘Drop deliveries’ or ejectors should be used wherever possible, so that the operative does not
have to use his hands to dispose of finished parts.

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7. Provision should be made for adequate lightning, and a chair of type and height to permit good
posture should be provided. The height of the workplace and seat should be arranged to allow
alternate standing and seating.

(C) Design of Tools and Equipments

1. The colour of the workplace should contrast with that of work and thus reduce eye fatigue.

2. The hands should be relieved of all work of ‘holding’ the work piece where this can be done
by a jig or fixture or foot operated device.

3. Two or more tools should be combined where possible.

4. Where each finger performs some specific movement, as in typewriting, the load should be
distributed in accordance with the inherent capacities of the fingers.

5. Handles such as those used on screw drivers and cranks should be designed to permit
maximum surface of the hand to come in contact with the handle.

6. Levers cross bars and wheel bars should be in such position that operator can manipulate them
with least body change and with greatest mechanical advantage.

1.6.2 HAWTHORNE STUDIES: ELTON MAYO

HUMAN RELATION MOVEMENT

Scientific management focused attention on the mechanical and physiological variables of

organisational functioning to increase the efficiency of the organisation. It was found that the
real cause of scientific behaviour was something more than mere physiological variables.
There was a need for a new phenomenon about human behaviour and focused attention on the
people in the organisations. After scientific management, the human relations movement came
into the picture as it was observed that people were a valuable resource for the profession. As
people were people, their concerns regarding decision making in matters relating to their
working conditions were to be addressed. It was important to analyze what motivated employees
in the work settings.
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After the great depression of 1929, there was widespread overproduction and unemployment.
Hence, management realized that production was not its sole function. Personnel management
was equally important along with Marketing and Finance for the survival and growth of the
organisation. Elton Mayo was considered as the father of human relation movement.

The Hawthorne Study was conducted at Western Electric's factory at Hawthorne, area of
Chicago, in the late 1920s and early 1930s. This study was conducted under the supervision of
Elton Mayo. It was designed to find ways to increase worker productivity. Workers have been
divided into two groups. One day the lighting in the work area for one group was improved
dramatically while the other group's lighting remained unchanged. The researchers were
surprised to find that the productivity of the more highly illuminated workers increased much
more than that of the control group. The employees' working conditions were changed in other
ways too (their working hours, rest breaks and so on), and in all cases their productivity
improved when a change was made. Indeed, their productivity even improved when the lights
were dimmed again. By the time everything had been returned to the way it was before the
changes had begun, productivity at the factory was at its highest level. Absenteeism had dropped.
The Hawthorne Study is a type of reflection in which individuals modify or improve an aspect of
their behavior in response to their awareness of being observed.

Elton Mayo was considered as the father of human relation movement. In 1924, Hawthorne
Studies were carried out to examine the relationship between employee productivity and physical
working conditions. Elton Mayo was a professor of industrial research at the Harvard School of
Business Administration. He was brought in to conduct a series of studies at the Western Electric
Company’s Hawthorne Works in Cicero, Illinois.

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These experiments were carried out in four phases, which can be stated as follows:
• During 1924-1927, illumination experiments were undertaken to determine the effect of
changes in the intensity of light on worker’s productivity at workplace. Two groups were
formed, i.e., control group and experimental group. Before the study was conducted both groups
showed equal productivity. The control group worked under constant lighting levels and the
experimental group worked under varied lighting levels. It was found that productivity of both
the groups increased even though the experimental group was working in dim light.

• In 1927 -1928, relay assembly test room experiments were conducted to determine the changes
in working conditions on productivity. It analysed the effect of physical surroundings (rest,
pauses, lunch break duration, the length of working week, etc.) on the productivity of employees.
It was found that the productivity increased even under adverse conditions. Thus, it was found
that productivity of the workers depends on the attitude of the employee and not on the physical
working conditions.

• In between 1928-1930, mass interviewing programmes were conducted through plant-extended

interviews to determine employee attitudes and sentiments. Around 20,000 workers were
interviewed to collect data relating to employee attitude towards working conditions, job

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supervision as well as job role. It was found that staff morale improved when their grievances
were heard by their superiors. Workers formed social groups within the organisation and those
groups had a powerful influence on the workers attitudes, behaviour and actions. It also showed
that employees were affected by the activities outside the company.

• In 1931-1932, bank wiring observation room experiments were conducted for the determination
and analysis of social organisation at work. Fourteen subjects (men) were stationed in a separate
room to work for six months. It was found that although workers were paid according to
individual productivity, their productivity decreased
because the men were afraid that the company would lower the base rate. It was observed that
there were informal groups within the formal groups known as “cliques”. Clubs developed
informal rules of behaviour and mechanisms that would govern them. They served to control
group members and to influence bosses based on their group decisions. Thus, it was found that
the workers were more responsive to the social force of their peer groups than to the control and
incentives of management.

Hawthorne experiments had a dramatic impact on management beliefs regarding the role of
people in organisations. Elton Mayo came to a conclusion that people behaviour and attitudes are
closely related and group factor significantly affect individual behaviour. It was the group
standards that established individual worker’s output. Hence, money was not the sole factor
influencing workers’ productivity but other factors like team standards, group attitude and
security were also equally important.

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 Contributions of the Hawthorne Experiment to Management

Elton Mayo and his associates conducted their studies in the Hawthorne plant of the western
electrical company, U.S.A., between 1927 and 1930. According to them, behavioral science
methods have many areas of application in management. The important features of the
Hawthorne Experiment are:

1. A business organization is basically a social system. It is not just a techno-economic system.

2. The employer can be motivated by psychological and social wants because his behavior is also
influenced by feelings, emotions and attitudes. Thus economic incentives are not the only
method to motivate people.

3. Management must learn to develop co-operative attitudes and not rely merely on command.

4. Participation becomes an important instrument in human relations movement. In order to achieve

participation, effective two-way communication network is essential.

5. Productivity is linked with employee satisfaction in any business organization. Therefore

management must take greater interest in employee satisfaction.

6. Group psychology plays an important role in any business organization. We must therefore rely
more on informal group effort.

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7. The neo-classical theory emphasizes that man is a living machine and he is far more important
than the inanimate machine. Hence, the key to higher productivity lies in employee morale.
High morale results in higher output.

A new milestone in organisational behavior was set and Elton Mayo and his team found a way
to improve productivity by creating a healthy team spirit environment between workers and
supervisors labeling it as The Hawthorne Effect.

The Hawthorne effect is a physiological phenomenon that produces an improvement in human

behavior or performance as a result of increased attention of superiors and colleagues. As a
combined effort, the effect can enhance results by creating sense of teamwork and a common
purpose. As in many ways the Hawthorne effect is interpreted, it generates new ideas concerning
importance of work groups and leadership, communication, motivation and job design, which
brought forward emphasis on personnel management and human relations.

1.7 CONCLUSION

Work is a part of everyone’s life, whether it is domestic work, voluntary work, assisting in a shoe
shop, or nursing in or managing a large hospital. Our work contributes to the meaning we create
about ourselves as we build a sense of identity. Our experience of work also determines our
psychological and physical health. But more than this, work organizations have a profound effect
on society and on the sense of community created within it. Our experience of work spills over
into family life – those whose work is rewarding and fulfilling take the benefits back into their
families and communities. Moreover, organizations can be productive and enhancing players in
society or can behave in exploitative and unethical ways. So understanding work and
organizations is of huge importance in human society.

The challenge is to create work organizations that enhance human well-being, learning and
creativity, contribute to society and its development, and provide models of communities based
on justice, ethics, innovation and economic effectiveness. There is much still to discover, but
psychological theory and research are proving to offer the most profound insights into the world
of work as our understanding of this field develops.

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QUESTIONS

2 marks
1. What do you understand by psychology?
2. What do you mean by organization?
3. Define organization.
4. Define organization psychology.
5. Give the concept of Time and Motion study.
6. Give the concept of Hawthorne study.

4 marks
1. Explain the concept of organization psychology.
2. Give 4 characteristics of organization psychology.
3. What is scope of organization psychology?
4. Explain briefly the foundations of psychology.
5. Explain criticism for Hawthorne study.
6. Give 2 advantages and 2 disadvantages of Time and Motion study.

10 marks
1. What do you understand by organization? Explain carious types of organizations.
2. Explain the foundations of psychology.
3. Explain the scope of organizational psychology.
4. Explain psychology. What are the various branches of it?
5. Explain time and motion study.
6. Critically analyze Hawthorne study.

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