PSYCHOLOGY NOTES

Unit 1: Industry and organization, current status of I/O psy, I/O psy in indian context
Unit 2: Work related attitude: Job satisfaction, organizational commitment, organizational citizenship behaviour
Unit 3: Work motivation, Theories and application, Indian perspective
Unit 4: Leadership, classical and contemporary approaches to leadership, cross cultural leadership issues, indian perspective on
leadership

ORGANIZATION AND INDUSTRY

Organisation and Industry are interrelated with each other. Without the help of an organization, industry cannot form
and if the industry does not form, the organization cannot reach its goal.

ORGANIZATION which is 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. By this definition, manufacturing and service firms
are organizations, and so are schools, hospitals, churches, military units, retail stores, police departments, and local,
state, and federal government agencies.

Features
1) Organizations are artifacts: Organisations are not natural entities like living beings but are brought into existence by
human beings.
2) Goal directed: As the above definition makes it amply clear, organisations are created to serve some purpose. This
however does not mean that everyone in the organisation has a common goal, or even that everyone is aware of and
understands the organisational goals.
3) Social entities: According to the definition, organisations are ‘composed of two or more people’ and as such are social
entities.
4) Structured activity: In order to achieve the purpose or goals of an organisation, it is required that human activity be
deliberately structured and coordinated in some way. Hence usually there are identifiable parts or activities in an
organisation.
5) Nominal boundaries: This refers to consensus regarding who or what is a part of the organisation and who or what
belongs elsewhere.

INDUSTRY, group of productive enterprises or organizations that produce or supply goods, services, or sources of income.

Levels

● Primary: Primary means first. These are small industries that produce raw materials from which useful items can
be made.
● Secondary: Secondary means second. These are those industries, which through processing and manufacturing,
change raw materials into a useable materials.
● Tertiary: Tertiary means third. These industries include transportation, finance, education, retail, and other
services.
● Quaternary: Quaternary means fourth. These industries are the creation and transfer of information, including
research and training.
● Quinary: Quinary means fifth. These industries control the industrial and government decision-making process.

INDUSTRIAL-ORGANIZATIONAL PSYCHOLOGY IO Psy is a specialized area of applied research and psychological practice
that focuses on individual and group behavior in the workplace. I-O psychologists use theories and principles of
psychology to study various types of workplace issues, including job productivity and satisfaction, hiring and promotion
processes, leadership and management techniques, and organizational dynamics. The general aim of I-O psychology is to
provide businesses, public agencies, and other types of organizations with scientifically based strategies for improving
workplace conditions, workforce productivity, managerial decision-making, and organizational effectiveness.

CURRENT STATUS OF I/O PSY

● f one takes a global perspective, perhaps the most significant event of this period was the breakup of the Soviet
Union and the eventual fall of many Communist regimes. A number of the nations that embraced democracy
during this period have also attempted to establish free market economies. As many of these new democracies
have found, managing and motivating employees in state-owned businesses is quite different from doing so in a
free market economy (Frese, Kring, Soose, & Zempel,1996; Puffer, 1999; Stroh & Dennis, 1994). The science and
the practice of organizational psychology have the potential to help these nations make this difficult economic
transition.

● Another important trend is the change in the demographic composition of the workforce. The world
population is aging rapidly and becoming more ethnically diverse. One of the implications of these demographic
shifts is that organizational psychologists will likely devote much more time and attention to understanding the
process of retirement (e.g.,Adams & Beehr, 1998). Organizational psychologists will likely help organizations as
they assist employees in making the retirement transition. The increasing level of cultural diversity will also have
wide-ranging implications. Organizational psychologists will increasingly be called upon to investigate the impact
of cultural differences on organizational processes such as socialization, communication, and motivation.

● A recent trend is the shift away from highly specialized jobs and toward temporary, project-based work. Some
people have called this "de-jobbing". At the most fundamental level, this trend has impacted and will continue
to impact the “psychological contract” between organizations and employees. What does an organization owe
its employees? What do employees owe the organization they work for?
- Another implication of this trend is that many individuals in the future will not be “employees” in the way we
typically use that word today. Rather, in the future, it will become increasingly common for individuals to hire
themselves out on a project or “per diem” basis. This trend suggests a number of interesting and challenging
issues for organizational psychologists. How does an organization maintain a consistent culture and philosophy
with a relatively transient workforce? Is it possible to motivate temporary employees to perform beyond an
average level of performance? At the present time, we simply do not know the answers to these and many
other questions. The trends discussed above represent only a subset of those that will impact organizational
psychology in the twenty-first century.

● Other current issues that will continue to impact the field include technological change, increasing use of
telecommuting and other flexible work arrangements, and increased globalization, to name a few.

Considering all of these trends, it is clear that the work world of the future will be highly complex and fast paced. In fact,
this is one of the most exciting times in history to be involved in the science and practice of organizational psychology.

I/O PSY INDIAN CONTEXT

Kao, Sinha, &Wilpert, (1999) stated; “Industrial/ organizational psychology in Asian educational psychology obtained
more concentration beginning within the Nineteen Nineties”. In a similar way in India cognizance towards more than a
few fields of psychology including educational and organizational psychology developed not too long ago.
Psychologists at the moment are supplied jobs in hospitals and armed forces for psychotherapy of patients and
psychological evaluation for determination and recruitment of infantrymen.

Educational institutions and company sector each government and confidential have also started to hire psychologists
with specialization in the central fields.In academic institutions obligations of the incumbent involves scholar comparison,
steering and counseling, even as organizational psychologists are quite often hired for employee recruitment/selection
and persona evaluation.

Organizational psychologists work on contract basis or as outsourced consultants for specific projects or functions. The
reason usually quoted for such an arrangement is the relief and trust employees tend to show in outside professionals
than toward a everlasting employee. Psychologists also report to keep an impartial stance without organizational
pressures when they work as outsiders

Major problems
The career of business/organizational psychology is confronted with fundamental hurdles in India. Some of these are
individualistic trends even as others are systematic lacking. A number of of those core disorders are elaborated as
beneath:

● Economic Constraints In a developing country like India financial constraints are a fundamental hurdle in any
developmental undertaking. With the currency dropping its price with each coming day it's tricky and
oftentimes unattainable for academic institutions to procure scan material from international publishers to
proceed with their educational programs. Psychological labs are allocated limited money which are most
commonly fairly less than the amount apportioned for clinical or an engineering lab/workshop.
● Qualification in the absence of qualified psychologists in the organizational field, those with qualification within
the medical psychology have crammed the positions. Accordingly, as a result of their lack of specialised
competencies scientific psychologists fail to realise and cater to organizational demands.
● Unethical practices: With few regional instruments on hand, most psychologists rely on the importation of good
developed western character assessments. Absence of certified organizational psychologists also presents
possibilities for the unqualified to carry out unethical practices in this regard. From colleges to universities,
personal to government organizations the effortless utilization of illegal observe is not hidden from any person,
where little adherence customarily is given to respecting the copyright of the tests.
● Future challenges: Lack of the essential education and coaching in organizational psychology limits the scope of
work for the psychologists employed in organizational surroundings. This is likely one of the reasons why this
discipline has shown sluggish development in India regardless of of rapid enlargement in other parts of the
sector.

Measures that can be taken

● In an effort to reinforce the specialization in organizational psychology in the country it's the need of the hour
that our universities provoke a unanimous effort to introduce necessary qualifying diplomas and levels in
organizational psychology to fill the present hole within the subject.
● Psychologists and college members should work together to see to the moral use for instruments. In addition,
devices must be developed in the community to meet the desires that arise in the organization phase.
● These guidelines must be circulated more broadly and used systematically throughout Asia. Wants and
demands for training in the usage of exams in Asia are giant. Workshops offered in association with regional
conferences furnish opportunities to deal with these problems with Asian psychologists.
● Worldwide associations might discover nearer collaboration with nearby psychological associations on these
issues in an effort to raise the requirements governing test progress and use in Asia on the regional degree
CHALLENGES FACED BY IO PSY

RESPONDING TO GLOBALIZATION: Workplaces are becoming more globalized, and this means there will need to be a
greater awareness of cross-cultural issues in the workplace. The more diverse workforce means that rather than imposing
a set of organizational standards throughout global companies, it will be more effective for teams to have standards that
are reflective of local practices. Along with globalization comes an increasingly remote workforce. This presents
challenges for collaboration, communication and building a sense of teamwork that industrial-organizational
psychologists may wish to address.

MANAGING WORKFORCE DIVERSITY: One of the most important challenges for organizations is adapting to people who
are different. We describe this challenge as workforce diversity. Whereas globalization focuses on differences among
people from different countries, work- force diversity addresses differences among people within given countries.
Workforce diversity acknowledges a workforce of women and men; many racial and ethnic groups; individuals with a
variety of physical or psychological abilities; and people who differ in age and sexual orientation. Managing this diversity
is a global concern. Most European countries have experienced dramatic growth in immigration from the Middle East,
Argentina and Venezuela host a significant number of migrants from other South American countries, and nations from
India to Iraq to Indonesia find great cultural diversity within their borders. As the head of the huge Society of Human
Resource Management (SHRM) has identified outcomes such as the following for effective diversity management:

● Creating a work environment or culture that allows everyone to contribute all that they can to the organization.
● Leveraging differences and similarities in the workforce for the strategic advantage of the organization; and
● Enhancing the ability of people from different backgrounds to work effectively together.

STIMULATING INNOVATION AND CHANGE: Today’s successful organizations must foster innovation and master the art of
change, or they’ll become candidates for extinction. Victory will go to the organizations that maintain their flexibility,
continually improve their quality, and beat their competition to the marketplace with a constant stream of innovative
products and services. Domino’s single-handedly brought on the demise of small pizza parlors whose managers thought
they could continue doing what they had been doing for years. An organization’s employees can be the impetus for
innovation and change, or they can be a major stumbling block. The challenge for managers is to stimu- late their
employees’ creativity and tolerance for change. The field of OB provides a wealth of ideas and techniques to aid in
realizing these goals.

COPING WITH TEMPORARINESS: Globalization, expanded capacity, and advances in technology have required orga-
nizations to be fast and flexible if they are to survive. The result is that most managers and employees today work in a
climate best characterized as “temporary. Workers must continually update their knowledge and skills to perform new
job requirements. That was not part of their job descriptions 20 years ago. In the past, employees were assigned to a
specific work group, gaining a considerable amount of security working with the same people day in and day out. That
predictability has been replaced by temporary work groups, with members from different departments, and the
increased use of employee rotation to fill constantly changing work assignments. Today’s managers and employees must
learn to cope with temporariness, flexibility, spontaneity, and unpredictability.

WORKING IN NETWORKED ORGANIZATIONS: Networked organizations allow people to communicate and work together
even though they may be thousands of miles apart. The manager’s job is different in a networked organization.
Motivating and leading people and making collaborative decisions online requires different techniques than when
individuals are physically present in a single location. As more employees do their jobs by linking to others through
networks, managers must develop new skills.

IMPROVING QUALITY AND PRODUCTIVITY: Due to the advent of globalization, privatization and liberalization,
organizations are exposed to competition. Unhealthy employees mean lower productivity, more time missed from work
and possibly even more turnover. When an organization addresses work-life balance and employee health, it benefits
both the employee and the workplace. However, there may be privacy and other implications for workplace health and
wellness programs that organizational-industrial psychologists will examine. In such a scenario, managers have to think
seriously about improving the quality and productivity. To achieve this target, managers are implementing programmes
like Total Quality Management and Reengineering

MORE WOMEN THAN EVER: In the 1950s, the “typical American family” was characterized by a man who went to work
and his wife who stayed at home and watched the children. Although this profile still may be found, it is far from typical.
In fact, women now comprise half of the workforce, a figure that has risen steadily over the years. This trend stems not
only from economic necessity but also from the growing social acceptance of women working outside the home. These
developments have their own implications for human resource managers in organizations.

AUTOMATION AND ARTIFICIAL INTELLIGENCE: Over the next decade, a growing number of jobs will be automated, and
this is expected to lead to widespread disruption in the workplace. Organizations may need to address issues such as
morale and training. As artificial intelligence begins to perform increasingly sophisticated tasks, organizational
psychologists may begin to look at whether and how people form relationships with the AI they work with. The increasing
use of big data that will be able to improve performance and track a number of other things. These technological
innovations may also raise ethical questions that psychologists will examine.

BRIEF HISTORY OF IO

● The field of I/O psychology is almost as old as the field of psychology itself. The term “founding father” of I/O
psychology is usually associated with Hugo Munsterberg of Harvard University. His 1913 book on Psychology
and Industrial Efficiency, is considered to be the first textbook in I/O psychology. The book is the first to discuss
topics such as how to find the best person for the job and how to design jobs to maintain efficiency by dealing
with fatigue.
● One of his contemporaries, Frederick Taylor, was not a psychologist and is considered to be a founding father
not of I/O psychology but of scientific management. Despite his non-psychology background, his ideas were
important to the development of the I/O psychology field, because they evolved at around the same time, and
some of his innovations, such as job analysis, later became critically important aspects of I/O psychology.
● Taylor was an engineer and management consultant who pioneered time studies where management observed
how work was being performed and how it could be performed better. For example, after analyzing how
workers shoveled coal, he decided that the optimum weight of coal to be lifted was 21 pounds, and he
designed a shovel to be distributed to workers for this purpose. He instituted mandatory breaks to prevent
fatigue, which increased efficiency of workers. His book Principles of Scientific Management was highly
influential in pointing out how management could play a role in increasing efficiency of human factors.
● Lillian Gilbreth was an engineer and I/O psychologist, She and her husband, Frank Gilbreth, developed Taylor’s
ideas by conducting time and motion studies, but also bringing more humanism to these efforts. Gilbreth
underlined the importance of how workers felt about their jobs, in addition to how they could perform their
jobs more efficiently. She was also the first to bring attention to the value of observing job candidates while
they performed their jobs, which is the foundation behind work sample tests.
● World War I was a turning point for the field of I/O psychology, as it popularized the notion of testing for
placement purposes. During and after the war, more than 1 million Americans were tested, which exposed a
generation of men to the idea of using tests as part of selection and placement.
 ● Findings of I/O psychology have the potential to contribute to the health and happiness of people around the
world. When people are asked how happy they are with their lives, their feelings about the work domain are a
big part of how they answer this question. I/O psychology research uncovers the secrets of a happy workplace.
Organizations designed around these principles will see direct benefits, in the form of employee happiness,
well-being, motivation, effectiveness, and retention.

WORK RELATED ATTITUDES

Our behavior at work often depends on how we feel about being there. Therefore, making sense of how people behave
depends on understanding their work attitudes. An attitude refers to our opinions, beliefs, and feelings about aspects of
our environment. We have attitudes toward the food we eat, people we interact with, courses we take, and various other
things. At work, two particular job attitudes have the greatest potential to influence how we behave. These are job
satisfaction and organizational commitment.

JOB SATISFACTION

Job satisfaction is typically defined as an employee’s level of positive affect toward his or her job or job situation. It also
has a cognitive and behavioural aspect. The cognitive aspect of job satisfaction represents an employee’s beliefs about
his or her job or job situation; that is, an employee may believe that his or her job is interesting, stimulating, dull, or
demanding etc. Whereas the behavioral component represents an employee’s behaviors or, more often, behavioral
tendencies toward his or her job. An employee’s level of job satisfaction may be revealed by the fact that he or she tries
to attend work regularly, works hard, and intends to remain a member of the organization for a long period of time.

Most Important Determinants of Job Satisfaction :

Job satisfaction is intangible and it is multivariable. A number of factors influence job satisfaction of employees. They can
be classified into two categories. They are organizational and personal variables. They are discussed below:

Organizational Determinants Employees spend most of the time in organizations. Therefore, a number of organizational
factors determine job satisfaction of the employees. Organizations can increase job satisfaction by organizing and
managing the organizational factors. Let us learn the organization determinants of job satisfaction.

● Wages: Wage is the amount of reward a worker expects from the job. It is an instrument of fulfilling the needs.
Everyone expects to get a commensurate reward. The wage should be fair, reasonable and equitable. A feeling
of fair and equitable reward produces job satisfaction.
● Nature of Work: The nature of work has a significant impact on job satisfaction. Jobs involving intelligence,
skills, abilities, challenges and scope for greater freedom make the employee satisfied on the job. A feeling of
boredom, poor variety of tasks, frustration and failure leads to job dissatisfaction.
● Working Conditions: Good working conditions are needed to motivate the employees. They provide a feeling of
safety, comfort and motivation. Poor working conditions give a feeling that health is in danger.
● Opportunities for Promotion: Promotion is an achievement in life. Promotion gives more pay, responsibility,
authority, independence and status. Therefore, opportunities for promotion determine the degree of
satisfaction to the employees.
● Work Group: Isolated workers dislike their jobs. The work group exerts a tremendous influence on the
satisfaction of employees. Satisfaction of an individual depends largely on the relationship with the group
members, group dynamics, group cohesiveness and his own need for affiliation.
● Leadership Styles: Leadership style also determines the satisfaction level on the job. Democratic leadership
style enhances job satisfaction. Democratic leaders promote friendship, respect and warmth relationships
 among the employees. On the other hand, employees working under authoritarian leaders express low levels of
job satisfaction.

Personal Determinants: Job satisfaction relates to psychological factors. Therefore, a number of personal factors
determine the job satisfaction of the employees. They are mentioned below:
● Personality: Individual psychological conditions determine the personality. Factors like perception, attitudes and
learning determine the psychological conditions. Therefore, these factors determine the satisfaction of
individuals.
● Age: Age is a significant determinant of job satisfaction. Younger age employees possessing higher energy levels
are likely to feel more satisfied. As employees grow older, aspiration levels increase. If they are unable to find
their aspiration fulfilled, they feel dissatisfied.
● Education: Education provides an opportunity for developing one’s personality. It enhances individual wisdom
and evaluation process. Highly educated employees possess persistence, rationality and thinking power.
Therefore, they can understand the situation and appraise it positively.
● Gender Differences: The gender and race of the employees determine Job satisfaction. Women are more likely
to be satisfied than their counterparts even if they are employed in small jobs.

POSITIVE IMPACTS OF JS

● JOB INVOLVEMENT It is the degree to which a person identifies psychologically with his or her work and the
importance of work to one’s self-image. The level of involvement may depend on a person’s satisfaction with his
or her job. Brown stated: “A state of involvement implies a positive and relatively complete state of engagement
of core aspects of the self in the job, whereas a state of alienation implies a loss of individuality and separation
of the self from the work environment”. A sample statement from a job involvement questionnaire is, “I
consider my job to be very critical to my existence.”
● ORGANISATIONAL COMMITMENT Organisational Commitment is the degree to which an employee feels a
sense of allegiance to his or her employer. If a person feels satisfied with his job at a certain organisation, he or
she may demonstrate a certain kind of attachment, loyalty and belongingness with their organisation. An
example from an organisational commitment questionnaire, “I really feel as if this organization’s problems are
my own.”
● ORGANISATIONAL CITIZINSHIP BEHAVIOUR It refers to the contributions that employees make to the overall
welfare of the organization that go beyond the required duties of their job. It is a general tendency to do more
than expected when one feels gracious and job satisfaction tends to impact an employee’s feelings, for say,
when they are treated better and belonged, they may reciprocate in ways that are beyond the expectations of
their duties and profile.
● JOB PERFORMANCE (PRODUCTIVITY AND EFFICIENCY) An employee, if satisfied, with his or her work, may
work effectively and efficiently. This is a result of an employee’s feeling to continue to be satisfied and be
rewarded along the similar lines, and keep up the job performance.

NEGATIVE IMPACTS OF JS

● JOB STRESS When employees are not happy with their jobs, they are much more likely to experience and report
stress on the job. Workers who are satisfied or happy at work are much less likely to report feeling stressed out
by their job.
● ABSENTEEISM Absence is the failure of an employee to report for work on duty when he is scheduled to work
on his duty. An employee is to be considered as scheduled to work when the employer has work available for
him and the employee is aware of it.
 ● HIGH TURNOVER RATES Low job satisfaction also creates high turnover rates with employees. Sooner or later,
the employee is going to quit so that they can find a job they actually enjoy doing. Many industries such as food
service suffer from high turnover rates and the inability to retain qualified workers.
● POOR OVERALL MORALE When one employee is miserable doing their job, all of the other employees they
come into contact with are going to be affected by their attitude. If they see someone who is so obviously
miserable, it will begin to colour how they view their own jobs.]
● WORKPLACE DEVIANCE Job dissatisfaction and antagonistic relationships with co-workers predict a variety of
behaviours organisations find undesirable, including unionization attempts, substance abuse, stealing at work,
undue socializing, and tardiness. Researchers argue these behaviours are indicators of a broader syndrome
called deviant behaviour in the workplace. If employees don’t like their work environment, they’ll respond
somehow and it may show workplace deviance of the employee.

Measurement

Tools such as the following help measure some important factors that go into employees’ job satisfaction (Spector, 1997,
chapter 2):
● Job Satisfaction Survey (Spector, 1985)
● Job Description Index (Castanheira, 2014)
● The Minnesota Satisfaction Questionnaire (Weiss, Dawis, and England, 1967)

● Given the importance of job satisfaction to organizational psychologists, it is crucial to have viable measures
available to measure this construct. It is impossible to study something if you can’t measure it.
● A scale that has enjoyed extremely widespread use is the Job Descriptive Index (JDI) developed in the late 1960s
by Patricia Cain Smith and her colleagues. The scale does require that respondents describe their jobs. Users of
the JDI obtain scores for various facets of the job and the work environment. The JDI provides scores for the
individual facets of work, pay, promotion opportunities, supervision, and coworkers. Although some users of the
JDI combine the facet scores to form an overall satisfaction index, this practice is not recommended by the
developers of the JDI. The primary advantage of the JDI is that a great deal of data supports its construct
validity.
● Minnesota Satisfaction Questionnaire (MSQ). The items comprising the MSQ consist of statements about
various facets of the job, and the respondent is asked to indicate his or her level of satisfaction with each. For
example, a respondent is presented with an item having to do with activity level, such as “Being able to keep
busy all the time,” and is asked to indicate his or her level of satisfaction with the statement.
● Job Satisfaction Survey (JSS). This scale was originally developed by Spector (1985) as an instrument to measure
job satisfaction levels of Human Service employees. The JSS consists of 36 items designed to measure nine
facets of the job and work environment. the items represent statements about a person’s job or job situation.
Respondents are then asked to indicate the extent to which they agree with each item.

Importance

● Increased profits: This is one any manager and employee might appreciate. Keeping employees satisfied can
lead to higher sales, lower costs, and a stronger bottom line.
● Higher productivity: Irrespective of their job titles or salary, employees who are more satisfied with their job,
whether they feel satisfied with the organizational culture, with the rewards they are getting, or with
recognition, can produce more and do it more efficiently.
● Lower turnover: If employees are more satisfied with their job, they are less likely to leave. It also helps to
recruit better quality talent as new talent sees employee staying power as added value.
 ● Loyalty: When employees feel there is a growth path for them, they are more satisfied. In turn, because they
feel the organization has their best interests at heart, they tend to support the organization’s mission and
objectives. When this happens, employees may tell their friends or relatives about the good nature of the
organization, which helps spread organizational goodwill.

Models of Job satisfaction

1) The Dispositional Model of Job Satisfaction

● This approach claims that job satisfaction is a relatively stable characteristic that stays with people through
various situations. According to this conceptualization, people who like the jobs they are doing at one time also
tend to like the jobs they may be doing at another time, even if the jobs are different.
● People are consistent in liking or disliking their jobs over as long as a 10-year period, although they may have
had several different positions during that time.
● Indeed, research has shown that people who tend to be positive and cheerful most of the time do indeed tend
to express higher job satisfaction than ones who tend to be “down” and gloomy.
● It is a very general model that suggests that people have innate dispositions that cause them to have
tendencies toward a certain level of satisfaction, regardless of one’s job. This dispositional approach suggests
that job satisfaction is closely related to personality. The evidence for this approach can be divided into indirect
studies and direct studies.
● In other words, some people possess inherited tendencies to be either satisfied or dissatisfied with all aspects
of their lives, including their jobs. genetic factors play a role in job satisfaction tendency to experience positive
or negative moods (positive and negative affectivity).

2) Value Theory of Job Satisfaction

● Another approach to job satisfaction, known as value theory of job satisfaction, takes a broader look at the
question of what makes people satisfied. This theory argues that almost any factor can be a source of job
satisfaction so long as it is something that people value.
● The less people have of some aspect of the job (e.g., pay, learning opportunities) relative to the amount they
desire, the more dissatisfied they will be—especially for those facets of the job that are highly valued. Thus,
value theory focuses on discrepancies between what people have and what they want: The greater those
discrepancies, the more dissatisfied they will be.
● This approach to job satisfaction implies that an effective way to satisfy workers is to find out what they want
and, to the extent possible, give it to them. However, because it often is unknown what employees want, this is
easier said than done.
● In fact, organizations sometimes go through great pains to find out how to satisfy their employees. With this in
mind, a growing number of companies, particularly big ones, survey their employees systematically. For
example, FedEx is so interested in tracking the attitudes of its employees that it has started using a fully
automated online survey. The company relies on information gained from surveys of its U.S.-based employees
as the key to identifying sources of dissatisfaction and testing possible remedies.

3) Social Information Processing Model

● It’s your first day on a new job. You arrive at the office excited about what you will be doing, but you soon
discover that your coworkers are far less enthusiastic. “This job stinks,” they all say, and you hear all the details
when you hang out with them during lunch. Soon, your own satisfaction with the job begins to fade. What once
seemed exciting now seems boring, and your boss, who once seemed so pleasant, now looks more like an ogre.
Your attitudes changed not because of any objective changes in the job or your boss, but because you changed
your outlook based on the messages you received from your coworkers.
 ● The idea that people’s attitudes toward their jobs are based on information they get from Other people are
inherent in the social information processing model.
● This approach specifies that people adopt attitudes and behaviors in keeping with the cues provided by others
with whom they come into contact with.
● The social information processing model is important in so far as it suggests that job satisfaction can be affected
by such subtle things as the offhand comments others make.

ORGANIZATIONAL COMMITMENT

At a very general level, organizational commitment can be thought of as the extent to which employees are dedicated to
their employing organization and are willing to work on its behalf, and the likelihood that they will maintain membership.

According to Meyer and Allen (1991), organizational commitment is defined as “a psychological state that (a)
characterizes the employee’s relationship with the organization, and (b) has implications for the decision to continue or
discontinue membership in the organization.”

There are three varieties of organisational commitment.

● Affective commitment is the strength of a person’s desire to work for an organisation because he or she regards
it positively and agrees with its goals and values. For example, an employee of the Red Cross might like her
co-workers and her boss, share the altruistic goals of the organisation, and realize that her efforts will result in
better organisational performance.
● Normative commitment is the strength of a person’s desire to continue working for an organisation because he
or she feels obligations from others to remain there. For example, an employee who was given her first job by
an organisation, was mentored by her manager, and was trained at great cost to the organisation. The employee
may feel that she is ethically obligated to remain with the organisation because of its extensive investment in
her.
● Continuance commitment is the strength of a person’s desire to continue working for an organisation because
he or she needs to do so and cannot afford to do otherwise. For example, an employee might hate her job and
want to leave, but realizes that no other organisation would hire her or give her the salary she desires. Striving
for an actively committed workforce is important because they contribute to successful organisational
performance, they are unlikely to withdraw, and they are willing to make sacrifices for the organisation

How to Promote Affective Commitment

However, although managers cannot control the economy, they can do several things to make employees want to stay
working for the company—that is, to enhance affective commitment.
● ENRICH JOBS. People tend to be highly committed to their organizations to the extent that they
have a good chance to take control over the way they do their jobs and are recognized for making
important contributions. When people get to perform jobs they believe are interesting and that provide
opportunities to do work that challenges them mentally, they demonstrate their commitment to the
organizations by working hard. In view of this, the practice of enriching jobs is an effective way of enhancing
motivation.
● ALIGN THE INTERESTS OF THE COMPANY WITH THOSE OF THE EMPLOYEES. Whenever making something good
for the company also benefits employees, those employees are likely to be highly committed to those
organizations. Many companies establish this directly by introducing gain-sharing plans—that is, incentive plans
in which employees receive bonuses in proportion to their companies’ profitability. Such plans are often quite
effective in enhancing organizational commitment, especially when they are administered fairly.
 ● RECRUIT AND SELECT NEW EMPLOYEES WHOSE VALUES CLOSELY MATCH THOSE OF THE ORGANIZATION.
Recruiting new employees is important not only insofar as it provides opportunities to find people whose values
match those of the organization, but also because of the dynamics of the recruitment process itself. Specifically,
the more an organization invests in someone by working hard to lure him or her to the company, the more that
individual is likely to return the same investment of energy by expressing commitment to the organization. In
other words, companies that show their employees they care enough to work hard to attract them are likely to
find those individuals, in turn, strongly committed to them.

How Job Satisfaction affects Organisational Commitment

● Since the Hawthorne studies, it was found that employee attitudes toward satisfaction and commitment are
indicators to the solidarity between organizational members and management (Tonges et al., 1998). According
to Meyer et al. (2002), job satisfaction is a determinative of organizational commitment. The main difference
between organizational commitment and job satisfaction is that while organizational commitment can be
defined as the emotional responses which an employee has towards his organization; job satisfaction is the
responses that an employee has towards any job. It is considered that these two variables are highly
interrelated. In other words, while an employee has positive feelings towards the organization, its values and
objectives, it possible for him to be unsatisfied with the job he has in the organization (Çelik, 2008).
● Several studies have demonstrated that there is a strong connection between organizational commitment, job
satisfaction and fluctuation (Porter et al., 1974), as well as that people who are more committed to an
organization are less likely to leave their job. Organizational commitment can be thought of as an extension of
job satisfaction, as it deals with the positive attitude that an employee has, not toward her own job, but toward
the organization. The emotions, however, are much stronger in the case of organizational commitment and it is
characterized by the attachment of the employee to the organization and readiness to make sacrifices for the
organization. The link between job satisfaction and organizational commitment has been researched relatively
frequently (Mathieu and Zajac, 1990; Martin and Bennett, 1996; Meyer et al., 2002; Falkenburg and Schyns,
2007; Moynihan and Pandey, 2007; Morrow, 2011). This, there is believed to be a positive relationship between
job satisfaction and organizational commitment.

ORG CITIZENSHIP BEHAV

Generally speaking, OCB refers to behaviors that are not part of employees’ formal job descriptions (e.g., helping a
coworker who has been absent; being courteous to others), or behaviors for which employees are not formally rewarded.
Even though such behaviors are not formally mandated by organizations, in the aggregate they are believed to enhance
the effectiveness of groups and organizations

According to Organ (1977, 1994), OCB in organizations can be categorized as five different types:
● Altruism: In a workplace it occurs when an employee helps or assists another employee without expecting
anything in return. A simple example of altruistic behavior at work is when someone offers their assistance to a
co-worker who is formed by taking over their task or volunteering to help clean up the canteen after an internal
company event. Altruism in the workplace can boost employee morale, productivity and effectiveness.
● Courtesy: It is polite and considerate behavior towards other people, in this case, other employees. Examples of
courtesy at work includes saying good morning, asking a coworker, how their holiday was, how their kids are
doing, how a project they’re currently working on is going, basically any question related to a personal subject
someone has previously spoken about it shows people to have listened to what they were saying.
● Sportsmanship: Put simply, it is about an employee's ability to be a good loser. It's about being able to deal
with situations that don't go as planned or negative surprises and to not demonstrate negative behavior when
that happens. An example of good sportsmanship in the workplace is an employee who is temporarily taking
 over the task of the team member who broke his leg and will be on a sick leave for a few weeks while there is
considerable increase is this employees workload she isn't complaining about it to her colleagues because she
know it's a temporary solution that she's taking one for the team.
● Conscientiousness: It is defined as a behavior that involves a certain level of self-control and discipline and that
goes beyond the minimum requirement. In a work setting this means that employees don't just show up on
time and stick to deadlines but that they for instance also plan ahead before they go on a holiday so that their
colleagues won't be drowning in a big workload. An example that’s related to a remote work set-up is having
enough self-discipline to get up in the morning and get the work done, even when there is no manager around
to give you a nudge. Conscientiousness also means knowing that sometimes the job simply needs to get done,
despite the fact that it’s after hours.
● Civic virtue – Civic virtue is about how well someone represents the organization they work for. It’s about how
an employee supports their company when they’re not in an official capacity. Civic virtue can also be
demonstrated by employees signing up for business events such as fundraisers, or running a (semi) marathon
for a charity with a team of co-workers. Civic virtue is a type of organizational citizenship behavior that creates a
sense of community and camaraderie within the organization. This, in turn, leads to higher job satisfaction and
better job performance.

Why do employees engage in OCB?

● The primary determinant is positive affect, typically in the form of job satisfaction. Furthermore, positive mood
and helping behavior are actually mutually reinforcing because helping others usually makes people feel good.
● Moorman (1991) found that the best predictor of OCB was interactional justice, or the manner in which
supervisors treat employees as they carry out organizational policies and procedures.Procedural justice refers to
employees’ perceptions of the fairness of procedures used to make decisions such as pay raises; distributive
justice refers to perceptions of fairness of the outcomes one receives as a result of those procedures.
● A third explanation for OCB is that it is due to dispositions. According to this viewpoint, certain personality traits
predispose individuals to engage in OCB. In other words, some people are naturally more helpful than others
are

Special Issues in OCB

● What is typically argued is that if employees performed their jobs exactly as written, and did nothing beyond
that, organizations would not be able to function effectively. What is still not clear, from research on OCB and its
effectiveness, is the direction of causality underlying this relationship. Researchers have largely operated under
the assumption that OCB has a causal impact on group and organizational effectiveness. However, it is also
possible that the direction of causality could be reversed. Members of effective groups may report high levels of
OCB, regardless of whether they actually exist. When a group is successful, group members may perceive high
levels of OCB as they bask in the glow of this success
● A second issue has become important in recent OCB research: the validity of the OCB concept itself. As
originally defined by Organ (1977), OCB represents behavior that is above employees’ formal job
responsibilities, and for which there are no formal rewards. With regard to the first issue, it is becoming
increasingly questionable that, in performing their day-to-day activities, employees make the “in-role” versus
“extra-role” distinctions upon which OCB is based. This suggests that many employees view activities such as
helping other employees, being courteous to others, and occasionally attending functions on behalf of their
organization, as part of their formal role responsibilities.
● A third issue in OCB research is whether employees really engage in OCB without the expectation that such
behaviors will be rewarded. Despite Organ’s (1977) initial claim, recent evidence suggests that this assumption
may be rather questionable. For example, it has been shown empirically that performing OCB positively
 influences formal performance appraisals (Eastman, 1994), and it is doubtful that employees are unaware of
this.
● A final issue in OCB research is whether OCB will remain a viable concept in the workplace of the future.
Bridges (1994), among others, has pointed out a clear trend in recent years: Organizations have been moving
away from formal job descriptions. In fact, Bridges has predicted that the concept of a “job” will eventually
cease to exist. This has not occurred as yet, but it is true that the work of employees in many organizations has
become increasingly project-driven, and their activities revolve more and more around project completion
rather than fulfilling their job duties.

Benefits of OCB:

● OCB can boost employee morale

● It increases people’s levels of work meaningfulness
● It is good for employee performance and productivity; in fact, research shows that OCB positively predicts
performance
● It creates better social interactions between employees
● It reduces stress
● It creates a sense of community among employees
● It is good for your Employer Brand

MOTIVATION (process, benefits, strategies in hrm)

We define motivation as the processes that account for an individual’s intensity, direction, and persistence of effort
toward attaining a goal. While general motivation is concerned with effort toward any goal, we’ll narrow the focus to
organizational goals in order to reflect our singular interest in work-related behavior.

The three key elements in our definition are intensity, direction, and persistence. Intensity describes how hard a person
tries. This is the element most of us focus on when we talk about motivation. However, high intensity is unlikely to lead to
favorable job-performance outcomes unless the effort is channeled in a direction that benefits the organization.
Therefore, we consider the quality of effort as well as its intensity. Effort directed toward, and consistent with, the
organization’s goals is the kind of effort we should be seeking. Finally, motivation has a persistence dimension. This
measures how long a person can maintain effort. Motivated individuals stay with a task long enough to achieve their goal.

Mills et al. (2006) defines work motivation as the individual’s desire to direct and sustain energy toward optimally
performing to the ebay of his or her ability, the task required in order to be successful in a work position . Work has been
defined variously by authors and researchers from several streams. A broad definition that encompasses
conceptualisations of work across social and behavioral sciences work and its related motivational variables have also
been defined from the point of view of the worker.

Characteristics

● Motivation can be positive or negative: There can be positive motivation and negative motivation. Positive
motivation can be simulative, such as higher pay, power position etc. Negative motivation implies the use of
penalties, punishments etc.
 ● Motivation is goal oriented: Motivation is a behavioural concept. It directs human behaviour towards the
accomplishment of goals. If properly motivated, employees put in their best possible efforts in orders to achieve
the desired goals.
● Motivation is complex in nature: Different individuals behave differently to a given set of incentives. Some
employees may be highly motivated when they are given monetary incentives, whereas others may be more
motivated with the use of non-monetary incentives.
● Motivation is system oriented: Motivation is a combined effect of these groups of factors. Forces operating
within individual, i.e., his nature, needs, values etc.
● Motivation is different from job satisfaction: Motivation is the act to satisfy needs and desires. Job satisfaction
results only when such needs and desires are fulfilled. Job satisfaction is the outcome of motivation.
● Motivation is a continuous process: Motivation is not a one-time process. This is because, human needs and
desires are never ending. When one need is satisfied, another need emerges that is to be satisfied. Therefore,
managers have to identify the emerging needs of their subordinates and strive to satisfy such needs at regular
intervals.

Types of motivation

● Intrinsic motivation: This type of motivation comes out from an individual pleasure or interest in the task and it
does not involve working on activities for the sake of external rewards, it instead necessitates the feeling of
inner pleasure in the activity itself. It can be seen as a force that involves doing activities without external
incentive. According to Amabile (1993), individuals are intrinsically motivated when they seek enjoyment,
interest, satisfaction of curiosity, self-expression, or personal challenge in the work (Amabile 1993, 185-201).
● Extrinsic motivation: The source of extrinsic motivation is from an individual physical environment. More job
benefits, bigger salary, incentives and job promotion are some rewards that leads to extrinsic motivation.
Extrinsic motivation as money and verbal reward, mediated outside of a person, on the other hand intrinsic
motivation is mediated inside the person. A person can be intrinsically motivated to do a task if there is no clear
reward for the task done except the task itself or the feelings which upshot from the task. Amabile (1993)
argues that employees can either be intrinsically or extrinsically motivated or even both. (Amabile 1993,
185-201).

According to Story et al. (2009), individuals high in intrinsic motivation seem to prefer challenging cognitive tasks and can
self-regulate their behaviours, so, offering rewards, settling external goals or deadlines, will do little for them, unless they
are also high in extrinsic motivation.

THEORIES

- Maslow
- Herzberg’s 2 factor
- Equity
- Expectancy
- ERG
- 3 needs theory- mclelland - look, copy
TWO FACTOR THEORY-

Diff in both factors

1. Hygiene factors
○ Pay - The pay or salary structure should be appropriate and reasonable. It must be equal and
competitive to those in the same industry in the same domain.
○ Company Policies and administrative policies - The company policies should not be too rigid. They
should be fair and clear. It should include flexible working hours, dress code, breaks, vacation, etc.
○ Fringe benefits - The employees should be offered health care plans (mediclaim), benefits for the
family members, employee help programmes, etc.
○ Physical Working conditions - The working conditions should be safe, clean and hygienic. The work
equipment should be updated and well-maintained.
○ Status - The employees’ status within the organization should be familiar and retained.
○ Interpersonal relations - The relationship of the employees with his peers, superiors and subordinates
should be appropriate and acceptable. There should be no conflict or humiliation element present.
○ Job Security - The organization must provide job security to the employees.
2. Motivational factors
- Recognition - The employees should be praised and recognized for their accomplishments by the
managers.
○ Sense of achievement - The employees must have a sense of achievement. This depends on the job.
There must be a fruit of some sort in the job.
○ Growth and promotional opportunities - There must be growth and advancement opportunities in an
organization to motivate the employees to perform well.
○ Responsibility - The employees must hold themselves responsible for the work. The managers should
give them ownership of the work. They should minimize control but retain accountability.
○ Meaningfulness of the work - The work itself should be meaningful, interesting and challenging for
the employee to perform and to get motivated.

ERG THEORY

The most direct descendant of Maslow’s Need Hierarchy was Alderfer’s (1969) ERG Theory of motivation. The acronym
ERG stands for “existence,” “relatedness,” and “growth.” Essentially, Alderfer collapsed Maslow’s five need levels into
three.
● Existence needs concern our basic material requirements for living. These include what Maslow categorized as
physiological needs (such as air, food, water, and shelter) and safety-related needs (such as health, secure
employment, and property).
● Relatedness needs have to do with the importance of maintaining interpersonal relationships. These needs are
based in social interactions with others and align with Maslow’s levels of love/belonging-related needs (such as
friendship, family, and sexual intimacy) and esteem-related needs (gaining the respect of others).
● Finally, growth needs describe our intrinsic desire for personal development. These needs align with the other
portion of Maslow’s esteem-related needs (self-esteem, self-confidence, and achievement) and
self-actualization needs (such as morality, creativity, problem-solving, and discovery).

ERG theory also deviates from the Need Hierarchy in other important ways. Unlike Maslow’s theory, ERG Theory allows
for the possibility that needs do not have to operate in a strict hierarchical fashion (Alderfer, 1969). For example, an artist
may be trying to scratch out a living and, at the same time, to achieve his or her artistic potential. ERG also allows for the
possibility that people may regress if their needs at one level are not satisfied. Suppose an artist fails to achieve his or her
potential.
According to Alderfer, such a person may become more focused on satisfying “lower level” needs. The artist may become
focused on making friends and connecting with people socially. Recall that Maslow’s theory is focused only on moving up
through the hierarchy of needs. It says little about situations in which needs are thwarted.

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.
Also, the frustration- regression aspect of ERG Theory has an added effect on workplace motivation. 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. The sooner the manager realizes and
discovers this, the more immediate steps they will take to fulfill those needs which are frustrated until such time that the
employee can again pursue growth.

MCLELLAND 3 NEEDS

American psychologist David McClelland’s theory explains how the need for achievement, power and affiliation motivates
people in a professional environment. According to this theory, which was developed in the 1960s, all individuals have
these needs in varying degrees, irrespective of race, age or location.

According to McClelland’s theory, a person’s specific needs are not natural but picked up during the course of their life..
These needs are shaped by the individual’s life experiences and can be classified under the three heads i.e. achievement,
power and affiliation. According to McClelland, an individual’s quality of performance is directly influenced by one of
these three needs. Hence, some people refer to McClelland’s theory as the Three Needs Theory or the Learned Needs
Theory as well.

Let’s go ahead and take a look at these three factors in detail.

NEED FOR ACHIEVEMENT

● According to the first factor of McClelland’s theory, people want to achieve things and want to be known as
accomplished names in their respective field. A footballer might want to be known for the number of goals
scored whereas an author might want to win major awards for her books.
● At the same time, the achievement motive theory also characterizes achievement-oriented individuals as being
averse to risky situations. While they are constantly innovating to achieve their objectives, they are not fond of
collaborative working. They tend to be reliant on constant feedback.
● McClelland’s achievement motivation theory is applicable to people who are comfortable working in a
hierarchical system that rewards performance-linked achievements.

NEED FOR POWER

● According to McClelland’s theory of motivation, a person has an internal desire to gain control and authority
over others. Unlike the achievement motive theory, a person with a need for power aims to influence and alter
the other person’s decision to suit their own wishes. McClelland’s theory of needs suggests that seeing others
accepting their ideas and views boosts their own self-esteem.
● McClelland’s theory of motivation says those with a need for power can be considered suitable for leadership
roles. They are focused on managing others efficiently while working towards organizational goals. According to
McClelland’s theory of needs, those who are motivated by the need for power regulate themselves and expect
others to be disciplined as well. They look for personal reputation and social standing.
NEED FOR AFFILIATION
● The third need in McClelland’s theory of motivation is the need for affiliation. This need is felt by people who
are keen to develop social relationships with a specific set of people. Such individuals prefer to work in groups
and are therefore fond of creating friendly and long-term relationships. They crave to be liked and welcomed by
others. Such people make great collaborators. They also shy away from highly risky or uncertain situations.
● The need for affiliation emphasizes an individual’s desire for social acceptance as opposed to achievement
motive theory where performance is a driver.

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.

THE PRACTICAL VALUE OF MOTIVATION THEORIES

Having reviewed what are generally considered to be the major theories of employee motivation, we now ask: How
valuable are these theories to managers in organizations? There is no way, for example, to rank-order the theories in this
chapter in terms of practical value. However, it is possible to draw some general conclusions about the four general types
of theories described. Generally, Need Theories probably fare the worst, among the four different general approaches to
motivation. Needs may be highly specific to individual employees, so it may be extremely difficult for a manager to either
figure out a given employee’s level of need satisfaction or take steps to respond to it. Also, because a given need may be
satisfied in multiple ways, motivating on this basis would be quite time-consuming and cumbersome for managers.

Job-based theories, in contrast, fare considerably better in terms of practical value. Job content is something that most
managers can relate to, and in fact have some control over. Thus, if a manager sees that an employee lacks autonomy in
his or her job, steps may be taken to increase autonomy. On the other hand, in some cases, changing a person’s job is
simply not practical. For example, job content may be governed by a union contract, or perhaps changing one employee’s
job would have such wide-ranging effects throughout an organization that the cost would be prohibitive.

Cognitive process theories may also have considerable practical value, although the exact value varies considerably for
each theory. Expectancy Theory, for example, has much to offer managers in designing reward systems and in the
diagnosis of performance problems; that is, performance-based rewards will be effective only if employees are able to
see a connection between their performance and the level of rewards they attain (e.g., Instrumentality). Similarly, a
performance problem may be linked to a belief that effort will make no difference (e.g., low expectancy), a belief that
performance will make no difference (e.g., low instrumentality), or the fact that an employee simply does not value the
rewards that an organization is providing. Goal-setting theory has also proven to be very useful and, in fact, is employed
extensively in organizations.

LEADERSHIP (Characteristics, quality, imp, role in hrm)

Yukl and Van Fleet (1992) define leadership as “a process that includes influencing the task objectives and strategies of an
organization, influencing people in the organization to implement the strategies and achieve the objectives, influencing
the group maintenance and identification, and influencing the culture of the organization.”
THEORIES OF LEADERSHIP
● Fiedler
● Path goal
● Trait and behavioural
● Inspirational approach (Transformational, transactional and charismatic)
● LMX

PATH GOAL THEORY

Path–Goal Theory was developed by Robert House. It says that it is the leader’s job to provide followers with the
information, support, or other resources necessary to achieve their goals. The Path-Goal model is a theory based on
specifying a leader’s style or behaviour that best fits the employee and work environment in order to achieve a goal. The
goal is to increase an employee’s motivation, empowerment, and satisfaction so they become a productive member of
the organization. The original Path-Goal theory identifies achievement-oriented, directive, participative, and supportive
leader behaviours rooted in four (4 styles).

Leader Behavior or Style

● Directive: The leader informs her followers on what is expected of them, such as telling them what to do, how
to perform a task, and scheduling and coordinating work. It is most effective when people are unsure about the
task or when there is a lot of uncertainty within the environment.
● Supportive: The leader makes work pleasant for the workers by showing concern for them and by being friendly
and approachable. It is most effective in situations in which tasks and relationships are physically or
psychologically challenging.
● Participative: The leader consults with his followers before making a decision on how to proceed. It is most
effective when subordinates are highly trained and involved in their work.
● Achievement: The leader sets challenging goals for her followers, expects them to perform at their highest
level, and shows confidence in their ability to meet this expectation. It is most effective in professional work
environments, such as technical, scientific; or achievement environments, such as sales.

Path–Goal theory assumes that leaders are flexible and that they can change their style, as situations require. The theory
proposes two contingency variables, such as work environment and employee characteristics, that moderate the leader
behaviour-outcome relationship.

Employee Characteristics
Employees interpret their leader's behavior based on their needs, such as the degree of structure they need, affiliation,
perceived level of ability, and desire for control. For example, if a leader provides more structure than what they need,
they become less motivated. Thus, a leader needs to understand their employees so they know how to best motivate
them.

Task and Environmental Characteristics

Overcoming obstacles is a special focus of path-goal theory. If an obstacle becomes too strong, then the leader needs to
step in and help the employee select a path to work around it. Some of the more difficult task characteristics that often
arise are:

● Design of the task - The design of the task might call for the leader's support. For example, if the task is
ambiguous, then the leader might have to give it more structure or an extremely difficult task might call for
leader support.
 ● Formal authority system - Depending upon the task authority, the leader can provide clear goals and/or give the
employee some or all control.
● Work group - If the team is non-supportive, then the leader needs to be cohesiveness and espouse
esprit-de-corps that provides comradeship, enthusiasm, and devotion to all team members.

Strengths:
● Tool for leaders that are flexible enough to adjust their leadership model in order to motivate employees to
perform in a certain way.
● It was one of the first theories to specify four conceptually distinct varieties of leadership.
● The most obvious and strong point in it is result-motivated employees. When the members of the team
understand what they do and why they do it, they tend to be more effective.
● It attempts to integrate the motivation principles of expectancy theory into a theory of leadership. It forces
internally to ask questions such as about followers' motivation: how can I motivate followers to feel that they
have the ability to do the work?
● The story provides a model that in certain ways is very practical. The Representation of the model underscores
and highlights the important ways leaders helped followers. It Shout Out for leaders to clarify the path to the
goal and you move or help followers around the obstacles to the goal.

Criticisms:
● The theory is so complex and incorporates So many different aspects of leadership that interpreting the theory
can be confusing.
● A second limitation of the theory is that it has received only partial support from the many empirical research
studies that have been conducted to test the validity. Not all aspects of the theory have been given equal
attention.
● Another criticism is that it fails to explain adequately the relationship between leadership behavior and
follower motivation. The theory does not describe how a leader could use various styles directly to help
followers feel competent or assured of success.
● A final criticism that it can be made of theory concerns a practical outcome of the theory. It suggests that it is
important for leaders to provide coaching, guidance and direction for followers to help followers define and
clarify goals to help followers around obstacles as they attempt to reach their goals. In effect, this approach
treats leadership as a one way event. The leader here affects the followers.The potential difficulty in this type of
helping leadership is that followers may easily become dependent on the leader to accomplish their work. It
places a great deal of responsibility on leaders and much less on followers. Over time this kind of leadership
could be counterproductive because it promotes dependency and fails to recognise the full abilities of the
followers.

LEADERSHIP-MEMBER EXCHANGE (LMX) THEORY

According to the theory, leaders form different kinds of relationships with various groups of subordinates. One group,
referred to as the in-group, is favoured by the leader. Members of in-group receive considerably more attention from the
leader and have more access to the organizational resources. By contrast, other subordinates fall into the out-group.
These individuals are disfavoured by the leader. As such, they receive fewer valued resources from their leaders.

Leaders distinguish between the in-group and out-group members on the basis of the perceived similarity with respect to
personal characteristics, such as age, gender, or personality. A follower may also be granted an in-group status if the
leader believes that person to be especially competent at performing his or her job. The relationship between leaders
and followers follows these stages:
 ● Role taking: When a new member joins the organization, the leader assesses the talent and abilities of the
member and offers them opportunities to demonstrate their capabilities.
● Role making: An informal and unstructured negotiation on work-related factors takes place between the leader
and the member. A member who is similar to the leader is more likely to succeed. A betrayal by the member at
this stage may result in him being relegated to the out-group.

The LMX 7 scale assesses the degree to which leaders and followers have mutual respect for each other’s capabilities, feel
a deepening sense of mutual trust, and have a sense of strong obligation to one another. Taken together, these
dimensions determine the extent to which followers will be part of the leader’s in-group or out-group.

In-group followers tend to function as assistants or advisers and to have higher quality personalized exchanges with the
leader than do out-group followers. These exchanges typically involve a leader’s emphasis on assignments to interesting
tasks, delegation of important responsibilities, information sharing, and participation in the leader’s decisions, as well as
special benefits, such as personal support and support and favourable work schedules.

Strengths of LMX Theory

● LMX theory is an exceptional theory of leadership as unlike the other theories, it concentrates and
talks about specific relationships between the leader and each subordinate.
● LMX Theory is a robust explanatory theory.
● LMX Theory focuses our attention to the significance of communication in leadership. Communication
is a medium through which leaders and subordinates develop, grow and maintain beneficial
exchanges. When this communication is accompanied by features such as mutual trust, respect and
devotion, it leads to effective leadership.
● LMX Theory is very much valid and practical in it’s approach.

Criticisms of LMX Theory

● LMX Theory fails to explain the particulars of how high-quality exchanges are created.
● LMX Theory is objected on grounds of fairness and justice as some followers receive special attention
of leaders at workplace and other followers do not.

Implications
According to many studies conducted in this area, it has been found that leaders definitely do support the members of
the in-group and may go to the extent of inflating their ratings on poor performance as well. This kind of a treatment is
not given to the members of the out-group. Due to the favoritism that the in-group members receive from their leaders,
they are found to perform their jobs better and develop positive attitude towards their jobs in comparison to the
members of the out-group. The job satisfaction of in-group members is high and they perform effectively on their jobs.
They tend to receive more mentoring from their superiors which helps them in their careers. For these reasons, low
attrition rate, increased salaries, and promotion rates are associated with the in-group members in comparison to that of
the out-group members.

TRANSFORMATIONAL LEADERSHIP THEORY

Transformational leadership may be found at all levels of the organization: teams, departments, divisions, and
organization as a whole. Such leaders are visionary, inspiring, daring, risk-takers, and thoughtful thinkers. They have a
charismatic appeal. But charisma alone is insufficient for changing the way an organisation operates. For bringing major
changes, transformational leaders must exhibit the following four factors:
 ● Inspirational Motivation: The foundation of transformational leadership is the promotion of consistent vision,
mission, and a set of values to the members. Their vision is so compelling that they know what they want from
every interaction. Transformational leaders guide followers by providing them with a sense of meaning and
challenge. They work enthusiastically and optimistically to foster the spirit of teamwork and commitment.
● Intellectual Stimulation: Such leaders encourage their followers to be innovative and creative. They encourage
new ideas from their followers and never criticize them publicly for the mistakes committed by them. The
leaders focus on the “what” in problems and do not focus on the blaming part of it. They have no hesitation in
discarding an old practice set by them if it is found ineffective.
● Idealized Influence: They believe in the philosophy that a leader can influence followers only when he practices
what he preaches. The leaders act as role models that followers seek to emulate. Such leaders always win the
trust and respect of their followers through their action. They typically place their followers needs over their
own, sacrifice their personal gains for them, ad demonstrate high standards of ethical conduct. The use of
power by such leaders is aimed at influencing them to strive for the common goals of the organization.
● Individualized Consideration: Leaders act as mentors to their followers and reward them for creativity and
innovation. The followers are treated differently according to their talents and knowledge. They are empowered
to make decisions and are always provided with the needed support to implement their decisions.

TRANSACTIONAL LEADERSHIP THEORY

Transactional leadership involves motivating and directing followers primarily through appealing to their own
self-interest. The power of transactional leaders comes from their formal authority and responsibility in the organization.
The main goal of the follower is to obey the instructions of the leader. The style can also be mentioned as a ‘telling style’.
The leader believes in motivating through a system of rewards and punishment. If a subordinate does what is desired, a
reward will follow, and if he does not go as per the wishes of the leader, a punishment will follow. Here, the exchange
between leader and follower takes place to achieve routine performance goals.

These exchanges involve four dimensions:

● Contingent Rewards: Transactional leaders link the goal to rewards, clarify expectations, provide necessary
resources, set mutually agreed upon goals, and provide various kinds of rewards for successful performance.
They set SMART (specific, measurable, attainable, realistic, and timely) goals for their subordinates.
● Active Management by Exception: Transactional leaders actively monitor the work of their subordinates, watch
for deviations from rules and standards and taking corrective action to prevent mistakes.
● Passive Management by Exception: Transactional leaders intervene only when standards are not met or when
the performance is not as per the expectations. They may even use punishment as a response to unacceptable
performance.
● Laissez-faire: The leader provides an environment where the subordinates get many opportunities to make
decisions. The leader himself abdicates responsibilities and avoids making decisions and therefore the group
often lacks direction.

CHARISMATIC LEADERSHIP

Charisma is a personal magnetism, compelling charm, or attractiveness that inspires admiration and compliance from
others. Den Hartog and Koopman (2001) define it as a personal attribute of a leader that almost hypnotizes followers and
compels them to identify with and emulate the leader. It also appears to lead to increased organizational citizenship
behaviors among followers

Charismatic leadership is defined by a leader who uses his or her communication skills, persuasiveness, and charm to
influence others. Charismatic leaders, given their ability to connect with people on a deep level, are especially valuable
within organizations that are facing a crisis or are struggling to move forward.
The characteristics
Every charismatic leader looks a little bit different. However, there are many key characteristics that most charismatic
leaders share: Strong communicator, Empathetic and relatable, Confident, Motivational, Engaging and charming,
Optimistic

You may notice that charismatic leadership shares many traits with transformational leadership. While similar, there’s one
important difference: charismatic leaders rely on their own personality and skillset to move their followers to action,
while transformational leaders rely on a shared vision to create change. So while most transformational leaders tend to
be charismatic, not all charismatic leaders are necessarily transformational.

What Are the Benefits of Charismatic Leadership?

● Inspired connection with team members or employees

● The focused commitment to a company or organization’s project or mission
● Strong motivating factors that produce results
● An emphasis on collaboration and team-oriented support to meet the needs of a project or mission
● Positive change is encouraged, which in turn inspires forward movement
● Employees and team members are valued for their input and supported in their goals
● Egos are left at the door in service of the greatest good
● Mistakes are addressed and approached as learning opportunities

What Are the Disadvantages of Charismatic Leadership?

● Charismatic leaders with a less self-assured foundation can prioritize their own focus instead of that of the
company or organization
● Outsiders can see this approach as disingenuous and question the intentions behind products or actions
● Charismatic leaders may create the illusion that nobody can replace them, which can create issues for
companies that may need to replace a leader for multiple reasons
● An inability to course-correct or see the error of their ways may create a situation where the leader can
inadvertently sabotage an initiative
● Some charismatic leaders have been known to believe their own hype to the point that they consider
themselves invincible, leading them to commit violations or crimes
● Similarly, some leaders may decide they don’t need to listen to anyone else, particularly those they lead

How to Practice Charismatic Leadership

● Vulnerability and humility: Be willing to own up to your mistakes and learn from them, admit the things you’re
unable to do and delegate accordingly, and let your failures be opportunities for growth and improvement.
● Listening skills: Don’t just wait to speak! Make sure you really listen to your team, allow them to be heard, and
work with them to address their concerns.
● Transparency: Be open and honest about what you’re doing and why you’re doing it.
● Determination: This quality is particularly important in times of challenge, as your team will look to you for
encouragement and how they should react in stressful situations.
● Communication skills: Go beyond being charming and actually connect with people! Learn more about them
and how you can support their goals, too.
● Compassion: Remember that at the end of the day you’re human, and you’re working with fellow humans who
also have wants, needs, weaknesses, and complications. Do what you can to help your employees when they
need it.
 ● Maturity: Ditch the high school mentality and don’t allow yourself to get wrapped up in psychological warfare
that’s designed to create chaos for you and your team.
● Self-monitoring and self-improvement: Continue working on yourself through therapy, education, leadership
exercises, and more so that you’re able to evolve with your team and the collective vision you’re working
towards.
● Confidence: Find and connect to your inner strength and sense of self and let both inspire your team to great
heights.
● Creativity: Don’t employ the same old, same old! Let your imagination run wild and allow it to inform new ways
to inspire your team and bring your vision to fruition.
● With a little charisma, a strong sense of vision, and a lot of heart, charismatic leadership could help you create a
professional path to greatness.

TRAIT THEORY

Trait theory is also known as the virtue theory of leadership. The foundation of this theory is the characteristics of
different leaders – both successful and unsuccessful ones. The trait theory emphasizes that leaders have inborn traits;
these are “born leaders”, who cannot help but take control and guide situations. Basically, a leader is born with specific
virtues according to trait theory.

Trait theory is based on the characteristics of leaders and helps to determine and forecast the effectiveness of their
leadership. The theory identifies core virtues that decide whether a leader will be successful or not. The core traits
identified in this theory include emotional maturity, cognitive ability, self-confidence, business knowledge, honesty and
integrity, leadership motivation, and drive for achievement. However, these are not solely responsible for determining
leadership effectiveness. There can be other factors that will recognize leadership potentials.

Strengths of Trait Theory

● It is a naturally pleasing theory.
● It has been validated with lots of research.
● Moreover, it serves as an index against which the leadership characteristics of an individual are assessed.
● Besides, it gives detailed knowledge and understanding of the leader element in the leadership process.

Limitations of Trait Theory

● Existence of subjective judgment in determining who is a ‘good’ or ‘successful’ leader
● The list of possible traits tends to be very long.
● The most important trait for an effective leader is not identified.
● Also, the model attempts to relate physiological traits such as height and weight to effective leadership. Most of
these factors relate to situational factors that can vary tasks-wise. For instance, minimum weight and height
required in the military leadership position do not suit for a manager in a business organization.
● Above all, this theory is very complex.

Implications of Trait Theory

The trait theory provides constructive information about leadership. It is possible to apply this to people at all levels in all
types of business organizations. Managers can use information from this theory to evaluate their position in the
organization and to assess how they can make their position stronger in the organization. They can also get an in-depth
understanding of their identity and the way they will affect others in the organization. Overall, this theory makes a
manager aware of his or her strengths and weaknesses while teaching him or her to develop leadership qualities.

BEHAVIORAL THEORY
Behavioral theory explains that it is possible to train and develop a leader. It rejects that leaders are born or that certain
people have their inborn potential to become leaders. According to this theory, anyone can be a leader, but there must
be a good atmosphere and training for leadership qualities to develop. Also, it mainly focuses on specific behavior and
actions of leaders, instead of their characteristics.

Moreover, as per this theory, best leaders are those that have the flexibility to change their behavioral style and choose
the right style suitable for different situations.

Strengths of Behavioral theory

● Promotes the value of leadership styles with an emphasis on concern for people an collaboration.
● Helps to evaluate and understand how their behavioral styles affect the relationship within the team.
● Also, helps managers to find the right balance between different styles of leadership and helps them to decide
how to behave as a leader.

INDIAN CONTEXT LEADERSHIP

Most of the Indian managers are generally believed autocratic style with limited degree of participation to their
subordinates. Subordinates are closely supervised and appreciated by the mangers based on the situations. However
there are organizations where employees are considered for the participation to maintain the cordial relations and to
create positive motivation to do the work effectively and efficiently. Various research studies have been conducted so far
on leadership effectiveness, the review of which failed to give generalized result. The findings are sometimes
contradictory which indicates the absence of clear-cut managerial behaviour and direction. This may be because of the
fact that, managerial styles are determined by various factors so it is unlikely to follow a uniform leadership style.

From this point of view, Indian work organizations all classified into three types and which all having different features
and consequently followed different styles. They are classified as below.
1. Family managed traditional organizations
2. Private sector Indian organizations
3. Public sector organizations

Manager working in family managed traditional organization’s they follow autocratic style. Today sons and great
grandsons of the entrepreneurs are automatically promoted without having required educational background and
knowledge etc. These people are given the leadership on the basis of inheritance without consideration of efficiency and
suitability. They are highly centralized in their organizational structure and authorization in their approach. Most of the
family managed organization are managed by head of the family members they have highly paternalistic attitude, which
attitude can influence their employees in the organizations.

On the other side, there are many private sector organized and owned by Indians or multinationals They have attitude of
consideration and participative approach to encourage their employees The manager working in private sectors generally
use democratic style. Managers apply modern technique ensuring their styles to motivate the employees based on the
modern approach of management. Thus there is a greater participation of employees in such organizations.

The third category is public sector where entire organizational process is governed by bureaucratic approach; this is
against to participative style. Bureaucratic management is an approach for providing a clearly defined set of rules
followed by a clear organizational structure. This approach defines a clear chain of command and a state where there is a
clearly defined set of rules to be followed by each level of hierarchy. Recent years it has been change to participative
approach based on change made by government in the economic structure, and global competitive world.
Thus in the recent years there has been change in the Indian scenario where participative approach is gaining more
importance both at private and public sectors and is proving to be more effective. Participative style is very useful in
many ways. When workers feel their ideas are important and being made use of, they feel considerably committed to
change in which they have participated. Workers also develop a greater feeling of self-esteem. Indian executives give
more emphasis on keeping the culture and guiding and teaching employees, thus putting their focus on human capital
development.

Some approaches of the Indian organizational leaders are discussed below, which explains the change in approach and
adoption of an inclusive democratic style of leadership, where organizations transform and grow.
- Vineet Nayar, CEO of the Indian IT services giant HCL, in his interview stated that, he sought enough
“transparency” and “empowerment” in the company that “decisions would be made at the points where the
decisions should be made”—that is, by employees, where the company meets the client. Ideally, he said, “the
organization would be inverted, where the top is accountable to the bottom, and therefore the CEO’s office will
become irrelevant.” He led the charge that gave rise to the company’s bracing motto, “Employee first, customer
second”. And he invited employees to evaluate their bosses and their bosses’ bosses; then he posted his own
review on the firm’s intranet for all to see, and urged others to follow his lead.
- “Leadership at Wipro means the ability to win the hearts and minds of all our stakeholders whether internal or
external. It means leading others with humility and yet having big dreams. It means the self-confidence to
accept that you are wrong and resilience to fight back,” says Azim Premji, Chairman of Wipro.

CROSS CULTURAL LEADERSHIP

“the ability of an individual (the leader) to intentionally and unequally influence and motivate members of a culturally
different group toward the achievement of a valued outcome by appealing to the shared knowledge and meaning
systems of that culturally different group.”

Importance of Cross-Cultural Leadership in Organizations and Industries

● The businesses don’t opt to follow the same old strategy once they know that the taste and preferences
changed across their clients shift to a new strategic approach that satisfies the client’s needs. From a broader
perspective, the business extends their bands to several regions and countries to understand and benefit those
sets of the huge population by shaping the value that gives satisfaction to them. Some Companies and
Industries are globally growing and remain a trendsetter for the people who would like to follow them.
● Top companies like Apple, Google, Microsoft, Costco, Qualtrics, etc., are said to follow a versatile leadership
style among all cultural background employees who work under them.
● The senior leaders who belong to such an organization give importance to guiding and supporting the
employees in understanding their nature, culture, attitude, behavior, and things decided based on that.
● The employees are treated well and give them a platform to share their thoughts, experience, and provoke the
advantage of diversified views and ideas expressed by them.
● Such organizations focus on employee’s welfare and arrange multi-national events and conferences to build the
employees’ experience and increase the brand image. This is a win-win benefit gained by employees as well as
the organization.
● The organization has also tremendously succeeded in decreasing its turnover rate, which helped increase the
number of loyal employees to work for its growth and needs. As an example, such kinds of industries conducted
various leadership programs and webinars all across the world to share their successful implementation of how
multicultural leadership educated employees in the organization and how to deal with the business clients
applying the same formula of understanding the different needs of those clients in a cross-culture point of view.
 ● With all of these examples, we can easily realize that understanding culture needs tons of years, especially for
growing business. These are the qualities that the companies must feed to develop their values worldwide to
benefit the people who are inspired to follow them. For the people to get inspired, be good to them and try
giving valuable solutions for which they are seeking for.

7 ISSUES/CHALLENGES IN CROSS CULTURAL LEADERSHIP

“the ability of an individual (the leader) to intentionally and unequally influence and motivate members of a culturally
different group toward the achievement of a valued outcome by appealing to the shared knowledge and meaning
systems of that culturally different group.”

1) Working with differing communication styles and forms of expression: Cultures use different styles of
communication, and leaders should recognize that some cultures use open-ended questions
2) Understanding diversity in the individual frame of reference: A variety of factors affect an individual’s frame of
reference, including geographic location, childhood experience and educational opportunities. Leaders should
consider the impact of these factors on how an employee behaves and communicates.
3) Adjusting to work styles dictated by culture: Leader should accommodate different work schedules, such as
allowing time for longer breaks and acknowledging vacation expectations
4) Navigating differences in motivational factors: Leader should consider the personal values of employees when
creating team goals. For eg. leaders should find out if employees would rather take a risk by pursuing a strategic
partnership in time for quarterly postings or play it safe by taking on low risk activities that will keep their
superiors happy with their performance.
5) Addressing prejudice and cultural stereotypes: Leaders who assume an asian employee’s skills lie with numbers
both overlook that employee’s individual talents and reinforce a limiting stereotype.
6) Overcoming cultural and language barriers: To minimize these barriers, leaders should incorporate pictures,
stories and data into conversations.Dealing with varying expectations toward respecting hierarchy and status:
For eg, many Americans believe the japanese have a hierarchical leadership style, whereas americans often
consider themselves to be egalitarian. Leaders need to adapt their management approach based on the culture
they are working with.

MANAGEMENT BY OBJECTIVES
The term Management by Objectives was coined by Peter Drucker in 1954. Management by objectives (MBO) is a
strategic management model that aims to improve the performance of an organization by clearly defining objectives that
are agreed to by both management and employees. According to the theory, having a say in goal setting and action plans
encourages participation and commitment among employees, as well as aligning objectives across the organization. The
process of setting objectives in the organization to give a sense of direction to the employees is called Management by
Objectives.

Need for Management by Objectives (MBO)

● The Management by Objectives process helps the employees to understand their duties at the workplace.
● KRAs are designed for each employee as per their interest, specialization and educational qualification.
● The employees are clear as to what is expected out of them.
● Management by Objectives process leads to satisfied employees. It avoids job mismatch and unnecessary
confusions later on.
● Management by Objectives ensures effective communication amongst the employees. It leads to a positive
ambience at the workplace.
 ● Management by Objectives leads to well defined hierarchies at the workplace. It ensures transparency at all
levels. A supervisor of any organization would never directly interact with the Managing Director in case of
queries.
● The MBO Process leads to highly motivated and committed employees.
● The MBO Process sets a benchmark for every employee. The superiors set targets for each of the team
members. Each employee is given a list of specific tasks.

Advantages and Disadvantages of Management by Objectives

● MBO comes with many advantages and disadvantages to a company's success. The benefits include employees
taking pride in their work with goals that they know they can achieve. It also aligns employees with their
strengths, skills, and educational experiences. MBO also leads to increased communication between
management and employees. Assigning tailored goals brings a sense of importance to employees, bringing
loyalty to the firm. And lastly, management can create goals that lead to the success of the company.
● Though there are plenty of benefits to MBO, there are some drawbacks and limitations. As MBO is focused on
goals and targets, it often ignores other parts of a company, such as the culture of conduct, a healthy work
ethos, and areas for involvement and contribution. MBO puts increased strain on employees to meet the goals
in a specified time frame. In addition, if management solely relies on MBO for all management responsibilities,
it can be problematic for areas that don't fit under MBO.

LEADER AND MANAGER