Human Implications of Organisations

Module C: Human Resource Management

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Advanced Bank Management: Human Implications of Organisations

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Contents
Coverage:
1. Human

Behaviour

and

Individual Differences
2. Employees Behaviour at Work
3. Diversity and Gender Issues
4. Theories of Motivation and
their Practical Implications
5. Role Concept and Analysis
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1.

HUMAN BEHAVIOUR AND

INDIVIDUAL DIFFERENCES
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Human Behaviour
Combination of originating and responding behaviour
Result of biological, psychological and social processes
Function of the person and the environment around him

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Factors Influencing Behaviour

Economic
Social (Norms and Cultural
Values)
Political

Age
Sex
Education
Abilities
Marital Status
No of dependents

Environment
al Factors

Personal
Factors

Psychologica
l Factors

Organisation
al Factors

Personality
Perception
Attitudes
Values
Learning

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Physical Facilities
Organisational Structure
and Design
Leadership
Compensation and
Rewards System

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2.

EMPLOYEES BEHAVIOUR AT WORK

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Assumptions about human behaviour at work

There are
differences
between
individuals

An individual has
dignity

Concept of a whole
person

Behaviour of an
individual is caused

Organisations are
social systems

There is mutuality
of interest among
organisational
members

Organisation
behaviour is
holistic
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Commonalities
People differ, yet, there are certain commonalities in the
persons. Every person is, in certain respects:
Like all other persons
Like some other persons
Like no other person

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Personality
Salvotore Maddi A stable set of characteristics and
tendencies

that

determine

those

commonalities

and

differences in the psychological behaviour (thoughts, feelings

and actions) of people that have continuity in time and that
may not be easily understood as the sole result of the social
and biological pressures of the moment.
Individuals do not change drastically overnight

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Type A Type B Personality Theory

Type A

Type B

Restless
Impatient
Multi-tasker
Tries to schedule more and more in
less and less time
Does not complete one thing before
starting another
Displays nervous gestures
Does not have time to relax and
enjoy life
Insensitive
Go getter
Stress Prone

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Sociable
Relaxed/Placid
Balanced outlook in life
Humane
Team Person
Long Term Success
Systematic
Methodical

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Eriksons Development Model

Stage 1:
Trust vs.
Mistrust

Stage 2:
Autonomy
vs. Shame
and Doubt

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Stage 3:
Initiative vs.
Guilt

Stage 4:
Industry vs.
Inferiority

Stage 5:
Identity vs.
Role
Diffusion

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Stage 6:
Intimacy vs.
Isolation

Stage 7:
Growth vs.
Stagnation

Stage 8:
Integrity vs.
Despair

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Psycho Analytical Theory

In order to create a normal personality there must be a
balance in the relationship among the three forces Id, Ego and
Super Ego
Id: Foundation of the unconsciousness
Ego: Conscious in nature and relates our conscious urges to the
outside world
Super Ego: Higher level restraining force the conscience of the
person

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Trait Theory
Traits of the person which determine his personality and
behaviour are basically inherent to a person
Explains personality as a demonstration of certain traits of the
individual

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Self Concept Theory

Personality and behaviour are to a great extent determined by
the individual himself
People have an image of their own and their actions are
consistent with that image
A result of peoples interaction with the environment

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Social Learning Theory

Personality development is more a variable of social variables
than biological factors
Human behaviour is either learnt or modified by learning
Reinforcement and Punishment approach

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Personality and Brain (Left and Right Brain)

Left Hemisphere

Right Hemisphere

Controls right side of body

Controls left side of body

Speech/Verbal

Logical/Mathema
tical

Linear/Detailed

Spatial/Musical

Holistic

Artistic/Symbolic

Sequential

Controlled

Intellectual

Simultaneous

Emotional

Intuitive/Creative

Dominant

Active

Analytic

Minor (Quiet)

Spiritual

Synthetic, gesalt
oriented

Reading, Writing,
Naming

Sequential
Ordering

Perception of
significant order
comprehension

Facial
Recognition

Simultaneous

Perception of
Abstract

Complex Motor
Sequences
Patterns

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Recognition of
Complex figures

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Matching Personality with Jobs

John Hollands Typology of Personality and Congruent Professions
Type

Nature

Personality Characteristics

Congruent Occupations

Realistic

Prefers physical activities that

require skill, strength and
coordination

Shy, genuine, persistent,

stable, conforming, practical

Mechanic, drill press operator,

assembly-line worker, farmer

Investigative

Prefers activities that involve

thinking, organising and
understanding

Analytical, original, curious,

independent

Biologist, Economist,
Mathematician, News Reporter

Social

Prefers activities that involve

helping and developing others

Sociable, friendly,
cooperative, understanding

Social worker, teacher,

counselor, clinical psychologist

Conventional

Prefers rule regulated, orderly,

and unambiguous activities

Conforming, efficient,
practical, unimaginative,
flexible

Accountant, Corporate
Manager, Bank Teller, File Clerk

Enterprising

Prefers verbal activities where

there are opportunities to
influence others and attain
power

Self confident, ambitious,

energetic, domineering

Lawyer, Real Estate Agent,

Public Relations Specialist,
Small Business manager

Prefers ambiguous and

unsystematic activities that
allow creative expression

Imaginative, disorderly,
idealistic, emotional,
impractical

Painter, musician, writer,

interior-decorator

Artistic

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3.

DIVERSITY AND GENDER ISSUES

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Diversity Issues
Homogeneous Reproduction: Tendency of selection and
promotion systems to allow only those employees to pass
through who fit the characteristics of the dominant coalition
When workgroup diversity is managed effectively, groups
develop processes that can enhance creativity, problem
solving, workgroup cohesiveness and communication

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HR Approaches for Managing Diversity

Diversity Enlargement
To create diversity by changing an organisations demographic composition
Assumed that increasing diversity and exposure to minority community will result
in improved individual and organisational performance
Diversity Sensitivity
Acknowledges the existence of cultural difference and attempts to teach
individual members about cultural differences
To promote communication and understanding, and to build relationships among
members of different backgrounds
Cultural Audits
Tries to determine what is blocking the progress of non-traditional employees

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Critical Mass
Organisations planning for diversity are unable to bring
enough diverse workers.
Critical mass of diverse workers required to make the
employees feel welcome and accepted
Entrance of few diverse workers into the organisation may fall
flat because of sense of isolation and/or overexposure in their
role as token

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Gender Bias

Many jobs have preference for a particular gender both from employers and
workers points of view.

The differentiation is basically on account of physical, social, psychological and

emotional considerations
Men preferred for jobs requiring greater physical stength
Women preferred for jobs requiring hospitality and emotional aspects

Equal Remuneration Act, 1976 has provided for payment of equal

remuneration to men and women employees and for prevention of
discrimination on the grounds of gender against women

Jobs for women requiring odd hours of work require permission under the
Factories Act, 1948
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4.

THEORIES OF MOTIVATION AND

THEIR PRACTICAL IMPLICATIONS
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Motivation
Extent of willingness of an employee to respond to the
organisational requirements
Directed towards satisfaction of needs
Has direct impact on the job performance

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Theories of Motivation
Scientific
Management/Rational
Economic View

Human Relations
Model

Abraham Maslows
Need Hierarchy Theory

Frederick Herzbergs
Two Factor Theory

Clayton Alderfers ERG

Theory

Achievement
Motivation Theory

Victor H Vrooms
Expectancy Model

James Stacy Adams

Equity Theory

Lyman W. Porter and

Edward E. Lawler
Performance
Satisfaction Model

Reinforcement Theory

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Scientific Management/Rational Economic

View

By F W Taylor

Stated that:
1.

Physical work could be scientifically studied to determine the optimal methods of

performing a job

2.

Workers could thereafter be made more efficient by giving prescriptions for how they
were to do their jobs

3.

Workers would be willing to adhere to these prescriptions if paid on a differential piece

work basis

Rabble Hypothesis: Workers would be motivated more by the need for money

Contrary to the rabble hypothesis workers seek satisfaction of a variety of needs in the
workplace like need for security, social fulfillment and a challenging job, including pay
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Human Relations Model

Elton Mayo conducted Hawthorne studies at Western Electric Company in

1920s and early 1930s

The real power centers were the human relations that developed within the
working unit

The leader was to facilitate co-operation for attainment of goals by the

followers

Managers could motivate employees by acknowledging their social needs and

by making them feel useful and important

Workers were expected to accept managements authority because

supervisors treated them with consideration and were attentive to their needs

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Abraham Maslows Need Hierarchy Theory

Self
Actualisation
Needs
Self esteem Needs

Social Needs

Safety/Security Needs

Physiological Needs

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Abraham Maslows Need Hierarchy Theory

Self Actualisation Needs
Desire for excelling in ones job, advancing an important idea, successfully managing the unit
Ego/Self esteem Needs
Needs for self respect and recognition and for respect of others
Social Needs
Desire to belonging and affection in a social context
Safety/Security Needs
Job Security, Salary increases, safe working conditions, unionisation, and lobbying for
protective legislation
Physiological Needs
Food, Drink, Shelter, Oxygen, Sleep, Sex, Weather etc

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Abraham Maslows Need Hierarchy Theory

Motivational Factors: Presence of these factors creates a
highly motivating situation, absence does not cause
dissatisfaction.
Hygiene/Maintenance Factors: Presence does not lead to
motivation, but absence causes serious dissatisfaction leading
to lower productivity

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Frederick Herzbergs Two Factor Theory

Motivational Factors

Hygiene/Maintenance Factors
Company policy and administration

Recognition

Technical supervision
Advancement

Interpersonal relations with subordinates

Interpersonal relations with superiors

Responsibility

Interpersonal relations with peers

Salary

Achievement

Job security
Status

Possibility of growth

Personal life
Work itself

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Working conditions

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ERG Theory
Existence, Relatedness and Growth
By Clayton Alderfer
More than one need may be operative at the same time
When a higher level need is frustrated, the individuals desire
to increase a lower level need takes place

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Achievement Motivation Theory

By David C McClelland and Associates
Need for Achievement
Derive satisfaction from achievement of goals
High achievers are not motivated by money, money is their indicator of achievement
Prefer to work independently and dislike easy tasks
Need for Power
Derive satisfaction from the ability to control others and having control over resources
Like to be in positions of influence and control
Need for Affiliation
Derive satisfaction from being social with interpersonal activities
Strong need for interpersonal ties and to get close to people psychologically

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Vrooms Expectancy Model

By Victor H Vroom
Also known as instrumentality theory, path-goal theory and
valence-instrumentality-expectancy theory
People are highly motivated if they believe that a certain type
of behaviour will lead to a certain type of outcome and their
extent of personal preference for that type of outcome

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Vrooms Expectancy Model

Expectancy
Persons perception of the likelihood that a particular outcome will
result from a particular behaviour or action
Instrumentality
Persons belief and expectation that his performance will lead to a
particular desired reward
Performance-Reward Relationship
Valence
Value a person assigns to his desired reward

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Adams Equity Theory

By James Stacy Adams

Motivation to act develops after the person compares inputs/outcomes

with the identical ratio in comparison to the other person

Definitions:
Person: Individual for whom equity/inequity exists
Comparison: Group/Individual used by a person as a reference regarding inputs and

outcomes
Inputs: Characteristics brought by an individual to the job
Outcomes: Salary, promotion, perquisites etc
Inequity: Perception that persons job inputs/outcomes ratio is not equal to the
inputs/outcomes ratio in comparison to the other

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Porters Performance Satisfaction Model

Suggests that performance leads to satisfaction
Motivation, satisfaction and performance are all separate
variables related in different ways
Efforts do not directly lead to performance. It is mediated by
abilities/traits and role perceptions
Rewards that follow and how these are perceived will
determine satisfaction

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Reinforcement Theory
Consequences of an individuals behaviour in one situation
influences the individuals behaviour in a similar situation
Individual behaviour can be predicted from a persons past
experience
Operant Conditioning: Technique to change human behaviour
OB Mod: Organisational Behaviour Modification When
operant conditioning is used to control behaviour of
employees
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Motivation and Behaviour

Motives:
Needs, wants, drives or impulses within the individual directed
towards conscious or unconscious goals
Arouse and maintain activity and determine a general direction of the
behaviour of an individual

Goals:
Hoped for rewards towards which motives are directed

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Motivation and Behaviour

Commonly used incentives to increase motivation to work:
Money

Appreciation

Job
Enlargement

Job
Enrichment

Job Rotation

Participation

Quality of
Work Life

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Motivation and Behaviour

Adequate and
Fair
Compensation
Integration of
job, career,
family life and
leisure time

Safe and Healthy

Environment

Quality
of Work
Life

Protection and
respect for
Employee rights
to privacy,
dissent, equity
etc.

Environment
conducive to
development of
Employee sellfesteem and
sense of identity

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Jobs aiming
development
and utilisation of
employees skills
and abilities

Growth and
Security

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5.

ROLE CONCEPT AND ANALYSIS

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Role

Set of expected behaviour patterns attributed to someone occupying a

given position in a social unit

Includes rights and obligation

Role Space:
The various roles a person is expected to play
Self is at the center of the role space and the other roles are at varying distances

Position is a relational and power related concept whereas role is an

obligational concept

Role Set: Pattern of interrelationships between one role(focal role) among

many others

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Role
Role Stagnation:
A person may be unable to take charge of the new role effectively, and
therefore experience role stagnation
This in turn will cause role stress

Inter role Distance:

An individual occupying more than one role may face a situation of
conflict amongst the various roles

Role Set: Important persons who have different expectations from

the role that an individual occupies
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Role Set Conflicts

Lack of clarity on the role to be
performed on the part of the
individual and organisation
Ability needed to work in
ambiguous situations Ex: A new
area where precedent is
missing

Role Ambiguity

Conflicting expectations
demands from a role

or

Role Expectation
Conflict

Role occupant may feel that

there
are
too
many
expectations
May also be felt in case of
insufficient powers

Role Overload

Individuals feeling that some

important areas which should
be a part of his/her role are
being performed by someone
in another role
May also occur due to
narrowing down of the role as a
part of restructuring etc

Resource Inadequacy
Personal Inadequacy Role
occupant lacks the knowledge,
experience or skills

Handling a role from which the

person was hitherto completely
isolated

Role Erosion

Inadequacy

Role Isolation

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Do you have any questions or queries or some feedback to give?

Just mark an email to super.msahluwalia@yahoo.com

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M S Ahluwalia, amongst other things, is a visual artist, blogger,

blog designer and of course an MBA and Banker from New
Delhi, India.
To know more about him you may visit his blog-site: Estudiante De La Vida

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