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Organisation. Structure and Dynamics . Chapter 1 .ORGANISATIONAL BEHAVIOUR.

As different phases of our lives, each of us isassociated with some kind of organisation- a college,club, hospital or a business. These organisations differ from one another in more ways than one. Some like ag i a n t c o r p o r a t i o n l i k e T A T A T e a o r t h e I n d i a n A r m y m a y b e o r g a n i s e d v e r y f o r m a l l y . O t h e r s l i k e a l o c a l football club may be less formally organised. Butirrespective of their differences, all the organisations of w h i c h , e a c h o f u s i s a m e m b e r h a v e s o m e c o m m o n features.Management is basically concernedwith ideas, things and people. Harold Koontz definesm a n a g e m e n t i n a v e r y s i m p l e f o r m . H e s t a t e s t h a t management is the art of getting things done throughand with the people in formally organised groups.Management is a process of organised activities.Without organised activities, two groups of peoplew o n t b e i n v o l v e d i n t h e p e r f o r m a n c e o f a c t i v i t i e s . Management process suggests that all the managers inthe organisation perform certain functions to get thingsdone by others. These functions include planning,organising, staffing, directing and controlling. Organizing i s t h e p r o c e s s o f a r r a n g i n g a n d allocating work, authority, and resources amongorganizations members so they can achieve theorganizations goals. The managers must match ano r g a n i z a t i o n s s t r u c t u r e t o i t s g o a l s a n d r e s o u r c e s , a process called organizational design. Organisation is the place where managersp r a c t i c e t h e a r t o f m a n a g e m e n t . A n o r g a n i z a t i o n i s a structured social system consisting of groups andindividuals working together to meet some agreed upono b j e c t i v e s . I n o t h e r w o r d s a n o r g a n i z a t i o n c o n s i s t o f people who, alone and together in work group, strive toattain common goals. Organization signifies aninstitution or sub unit of an institution. Thus, business,units, universities, and departments within theseinstitutions are organization.Behaviour is a way of action. It is basically goaloriented. Webster defines it as the mode of conductingoneself; the way in which a person acts in response to astimulus. Thus human behaviour is his actions,expressed or implied, in response to various stimuli internal and mental or external and physical. A manager must understand, predict and control the activities of aperson at a given moment. To predict behaviour,manager must know which motives or needs of peopleevoke a certain action at a particular time. ORGANISATIONAL BEHAVIOUR .T h e f i e l d o f O r g a n i z a t i o n a l B e h a v i o u r d e a l s with human behaviour in organizations. It is the studya n d a p p l i c a t i o n o f k n o w l e d g e a b o u t h o w p e o p l e a c t within organizations. OB is directly concerned with theunderstanding, prediction, and control of humanbehaviour in organizations.Stephen .P. Robbins defines OrganisationalB e h a v i o u r a s a f i l e d o f s t u d y t h a t i n v e s t i g a t e s t h e impact that individuals, groups, and structure have onbehaviour within organizations for the purpose of applying such knowledge towards improving anorganizations effectiveness.T h u s O B i s e s s e n t i a l l y c o n c e r n e d w i t h w h a t p e o p l e d o i n o r g a n i z a t i o n s . I t a p p l i e s t h e k n o w l e d g e gained about individuals, groups and the effect of structure on behaviour in order to make organizationswork more effectively. FUNDAMENTAL CONCEPTS. The subject Organisational Behaviour is basedon a few fundamental concepts which revolve aroundthe nature of people and organizations. Suchfundamental concepts are not peculiar to the field of OB.E v e r y d i s c i p l i n e , b e i t a s o c i a l s c i e n c e o r a p h y s i c a l s c i e n c e , w i l l f l o u r i s h o n d e f i n i t e a s s u m p t i o n s . T h e subject OB is developed on the following concepts.Individual Difference.People have much in common, but each personin the world is also individually different. Eachi n d i v i d u a l i s d i f f e r e n t f r o m o t h e r s i n s e v e r a l w a y s . Whether it is intelligence, physique, personality or anysuch trait, one can find striking differences. This concepts a y s t h a t e a c h p e r s o n i n t h i s w o r l d i s u n i q u e a n d individual experiences after birth make people evenmore different. Individual difference mean thatm a n a g e m e n t c a n g e t t h e g r e a t e s t m o t i v a t i o n a m o n g employees by treating them differently.2. A whole person.When an individual is appointed, his skill aloneis not hired, but his social background, likes anddislikes, pride and prejudices etc is also hired. Apersons family life cant be separated from hisp r o f e s s i o n a l l i f e . I t i s f o r t h i s r e a s o n t h a t m a n a g e r s should try to make the office, home away from home. --------------------------------------------------------------------------------------------------------------NSS College. Rajakumari. 1 ORGANISATION. STRUCTURE AND DYNAMICS. Unit 1 -

Importance & scope of organisational psychology - individual difference - intelligence tests- measurement of intelligence - personality tests - nature, types & Uses Organisation. Structure and Dynamics . 3. Caused Behaviour.B e h a v i o u r o f a n e m p l o y e e i s c a u s e d a n d n o t r a n d o m . T h u s w h e n a w o r k e r comes late or makes aproblem with the supervisor, there is a cause behind.The manager m u s t r e a l i z e t h i s b a s i c p r i n c i p l e a n d t o solve the problems, he must discover the cause behindthe behaviour.4. Human Dignity.T h i s c o n c e p t c o n f i r m s t h a t p e o p l e a r e t o b e t r e a t e d d i f f e r e n t l y f r o m o t h e r f a c t o r s o f p r o d u c t i o n , b e c a u s e t h e y a r e o f a h i g h e r o r d e r i n t h e u n i v e r s e . I t recognizes human dignity because people are of a higher order, they want to be treated with respect and dignityand should be treated this way. The concept of humand i g n i t y r e j e c t s t h e o l d i d e a o f u s i n g e m p l o y e e s a s economic tools.5. Organizations are Social Systems.From sociology we learn that organizations aresocial systems; and the activities there in are governedby the social laws as well as psychological laws. Just aspeople have psychological needs, they also have socialroles and status. Their behaviour is influenced by their group as well as by their individual drives. Infact twotype of social system exist side by side in organizations.One is the formal system and the other is the informal social system. CONTRIBUTING DISCIPLINE. Organizational Behaviour is an appliedbehavioural science. It has drawn heavily from a number of disciplines such as psychology, sociology, andanthropology. A brief description of each is in order.1. Psychology.Psychology is understood as the science of mind. It has greatly contributed to the development of OB. Intra personal aspect of OB, like motivation,personality, perception, attitude, opinion and learningowe their study to psychology.2. Sociology.Sociology is the study of group behaviour. Itstudies the behaviour of people in relation to their fellowhuman beings. Sociologists have contributed to thestudy of inter personal dynamics like leadership, groupdynamics, communication, formation of groups, formaland informal organsiations and the like.3. Anthropology.Anthropology is understood as the study of manand his works. In particular anthropologists study thec u l t u r e . C u l t u r e h a s s i g n i f i c a n t i n f l u e n c e o n h u m a n behaviour. It dictates what people learn and how theybehave. An employees behaviour, discretion aboutt h i n g s g o o d o r b a d , a n d h i s s t y l e o f f u n c t i o n i n g a r e influenced by the culture of his organization.4. Political Science.Political science studies the behaviour of individuals and groups within a political environment.Specific topics of concern to political scientists includeconflict resolution, group coalition, allocation of power,and how people manipulate power for individual self-interest.5. Economics.Economics helps understand the decisionprocesses, allocation of scarce resources, and the impactof economic policies on organisation. In particular ithelps explain human motivation and the way people andtheir organizations make decisions. ORGANISATIONAL PSYCHOLOGY . Organisational psychology is one of the mostactive and prosperous branches of modern psychologicals c i e n c e . I n m o s t o f t h e o r g a n i s a t i o n s ; i n t h e U S A - , which is regarded as the home of psychology - and alsoin Europe, it is very common to find industrialpsychologists working along with the other people. InI n d i a , a l s o t h i s a r e a i s o f g r e a t e s t i m p o r t a n c e t o t h e psychologists. Industrial psychology is gainingp o p u l a r i t y b e c a u s e i t t r i e s t o u n d e r s t a n d t h e h u m a n p r o b l e m s t h a t h a v e a r i s e n a s a r e s u l t o f t r e m e n d o u s expansion of industry in the last few decades. Thoughthere is considerable dispute about the precise time of itsformal beginning, it is now more or less accepted that itb e g a n a s a b r a n c h o f p s y c h o l o g y i n D e c e m b e r 1 9 0 1 , when Doctor Walter Dill Scott, in the USA spoke on thepossibilities of the application of psychologicalprinciples to the field of advertising. Many, however place the beginning of industrial psychology in the year 1 9 3 0 , w h e n H U G O M U N S T E R B E R G p u b l i s h e d h i s book Psychology and Industrial Efficiency. Meaning and Definition .I n d u s t r i a l p s y c h o l o g y m a n s t h e s t u d y o f t h e p s y c h o l o g y o f t h e p e r s o n s w o r k i n g i n a n i n d u s t r i a l enterprise. It is necessary to recognise that people areessential ingredients in all organisations; be theybusiness, industrial, educational, public utility or governmental. Industrial psychology deals with thea t t i t u d e s a n d a p t i t u d e s o f t h e p e o p l e w o r k i n g i n t h e organisations. Industrial means the activities relatedwith the production of goods and services andp s y c h o l o g y m e a n s w i t h t h e s c i e n c e o f m i n d s . T h u s industrial psychology is a systematic study of state of minds of the people who are engaged in the productionof goods and services. It is the study of the problemsrelated with human behaviour in reference toorganisations.

Industrial psychology has been defined in --------------------------------------------------------------------------------------------------------------NSS College. Rajakumari. 2 Organisation. Structure and Dynamics . various ways by various psychologists. Accordingto J.C.Naylor, Industrial Psychology is simply theapplication or extension of psychological facts andprinciples to the problems concerning humanbeings operating within the context of business andindustry. Industrial Psychology is a systematic study anda n a l y s i s o f t h e p r o b l e m s o f b e h a v i o u r o f e m p l o y e e s working in an industrial enterprise, so that their problems may be solved and the employees may work tot h e b e s t o f t h e i r e f f i c i e n c y . I t a l s o t r i e s t o i m p r o v e industrial relations. Industrial psychology stresses upont h e i m p r o v e m e n t o f h u m a n r e l a t i o n s i n a n i n d u s t r i a l enterprise, which is helpful, in providing satisfaction tot h e e m p l o y e e s ; a n d i n i n c r e a s i n g p r o d u c t i v i t y o f t h e organisation. IMPORTANCE AND SCOPE. The applications of psychological principles tothe people working in an organisation over a long periodmake it easier to understand the scope of typicalactivities of industrial psychologists working in anindustry. Industrial psychology is used in all the areas of an industry. Wherever manpower is required, theimportance of industrial psychology cant be under estimated. The scope of industrial psychology can beexplained under the following heads.1. Personal Selection, Placement and Promotions.Industrial psychology is used for the selection,placement and promotions of employees in an industrialenterprise. It helps in selecting the right person for thejob and also for assigning right job for the right person.I t a l s o h e l p s t o d e v e l o p t h e i n s t r u m e n t s o f p e r s o n a l selection by conducting relevant research. These includestandardised application form, scientific screening of a p p l i c a t i o n a n d u s e o f p s y c h o l o g i c a l t e s t s t o t e s t t h e ability and capability of candidates.2. Education, Training and Development.I P e v a l u a t e s t h e e f f i c i e n c y a n d a b i l i t y o f t h e employees of an organisation, so that necessaryprogrammes for the education, training, anddevelopment of these employees may be prepared andimplemented.I P d e v e l o p s t h e m e t h o d s a n d m e a n s o f t h e appraisal of the performance of employees. it alsodevelops the procedures of measuring attitudes of employees.3. Human Engineering.I P m a k e s a d e e p s t u d y a n d a n a l y s i s o f a l l t h e p r o b l e m s o f a n i n d u s t r y . i t i s p a r t i c u l a r l y h e l p f u l i n dealing with human problems such as suggestingc h a n g e s , i n n o v a t i o n s i n d e s i g n s o f t h e m a c h i n e s a n d equipments, arranging proper working conditions to theemployees and also facing labour turnover andabsenteeism.4. Motivation.Success of organisations depends to a greater extent upon the co-operation of the employees workingin the enterprise. IP makes deep and analytical study of the feelings and emotions of the employees and suggestsas to which of the financial and non-financial incentivesare required to motivate the employees.5. Productivity study.IP also helps in lessening worker fatigue,improving environmental conditions such as lighting,v e n t i l a t i o n , w o r k i n g a r r a n g e m e n t s e t c w i t h a v i e w t o maximise efficiency.6. Determination of Wages and Salary.IP determines the qualities, qualifications, dutiesand responsibilities of different jobs. Wages and salariesf o r d i f f e r e n t j o b s a r e a l s o d e t e r m i n e d o n t h e b a s i s o f qualifications, abilities, duties and responsibilities. IPh e l p s i n t h e d e t e r m i n a t i o n o f w a g e s a n d s a l a r i e s b y using the techniques of job analysis, job evaluation andmerit rating.7. Trade Union areas.I P p l a y s a n i m p o r t a n t r o l e i n d e v e l o p i n g a n d maintaining harmonious relations between workers andmanagement. Mutual negotiation, collective bargaining,grievance handling process etc are subjects of industrialpsychology.8. Employee Relation and Public Relation.IP is a tool, which advises the management onissues of relations between employee and is also helpful in improving the relations with generalpublic and consumers.9. Industrial Relations.IP has been successful in changing thepsychology and thinking of employers, managers andemployees. The studies of IP revealed that bothemployers and employees have some emotions, feelingsand needs, without which the organisational objectivesc a n t b e a c h i e v e d . A l l t h e p o s s i b l e f i n a n c i a l a n d n o n - financial incentives should be provided to the employeesto encourage them to dedicate their efforts in theorganisation. IP motivates all the employers, managersand employees and helps in establishing cordialindustrial relations.10. Advertisement and Salesmanship.T h e s c o p e o f I P i s v e r y w i d e . I t i s n o t l i m i t e d only to increase the production and productivity of theenterprise. it is also helpful in effective advertisementand salesmanship. IP stresses upon the study of thinking Organisation. Structure and Dynamics . and attitudes of consumers, so that suitable programs of advertisement and salesmanship may be developed andimplemented.Above discussion makes it clear that IP is helpful in all the spheres of the industrial enterprises andt h e t e c h n i q u e s o f I P c a n b e e f f e c t i v e l y u s e d t o s o l v e most of the problems of the industry. INDIVIDUAL DIFFERENCE.

Individuals differ widely in their physicalcharacteristics, temperamental qualities, mental abilitiesand the ways in which they behave. These differencesform the very basis of organisational psychology. Thesignificance and implications of these differences are sogreat that the study of individual differences and their proper evaluation assumes greater importance inorganisational psychology.Organisations are composed of individuals.Each individual is an island in himself; each subject toparticular motives, aspirations, perceptions and abilities.The behaviour of each individual is influenced bys e v e r a l f a c t o r s . N o t w o i n d i v i d u a l s a r e a l i k e i n t h e i r physical characteristics like height, weight, appearanceetc. This also equally true of the psychologicalcharacteristics of individuals such as their intelligence,interests and aptitudes, personal qualities likeaggressiveness, honesty and so on. These individualdifference, both in physical and psychologicalcharacteristics of the individuals for the very basis of organisational psychology. The reasons for these is thatonly by understanding the various physical andpsychological assets as well as liabilities of anindividual, that we are in a better position to assign theright type of work. For example no company will ever try to select a driver or machine operator who has poor eyesight, or a salesman who is unattractive in physicalfeatures.The study and measurement of individualdifference, thus, forms the very basis of some importantfunctions of psychologists in organisational functionssuch as personal selection, placement, promotions andso on. in modern times technology and industry haveadvanced so much that every position in a Co demandscertain physical or psychological characteristics in ani n d i v i d u a l . I t i s f o r t h i s r e a s o n t h a t a m a j o r p a r t o f industrial psychologists efforts are directed towardsinvestigating and understanding the differences amongi n d i v i d u a l s a n d a p p l y i n g s u c h k n o w l e d g e i n v a r i o u s areas in an organisation. Factors Affecting Individual Difference. The behaviour of each individual in anorganisation is different; and his behaviour is influencedby several factors. The basic aspects in whichindividuals may vary are broadly outlined below. 1 PSYCHOLOGICAL FACTORS. Psychological factors are an individuals mentalcharacteristics and attributes that can affect anindividuals behaviour. There are several psychologicalf a c t o r s a n d m o r e p r o m i n e n t a m o n g t h e m a r e g i v e n below

Organisation. Structure and Dynamics


2. PERSONNAL FACTORS. Every individual brings to the work place, avariety of personal characteristics and

attributes like age,education, abilities and similar related factors.A. Differences in Physical Characteristics.Physic al characteristics like height, weight,strength, keenness of vision,

keenness of hearing,reaction time, etc are often measured in some context or other. The study of the differences in such physicalcharacteristic s acquires great importance; becausesuccessful

performance often depends upon some of these characteristics. Some heavy job requireconsiderable physical energy, others require a very keensense of vision or learning.B. Age.Age is an important

variable because of itsimpact on performance turnover, productivity andsatisfaction. Performance depends on age. As ageadvances, performance is likely to decline. Similarlyageing has

impact on turnover. There is positiveassociation between age and satisfaction level of employees.C. Sex.The issues of male and female employees hasreceived considerable attention

from academics,sociologist s and researchers. There may be differencesin problem solving ability, analytical skill, motivation,and leadership or learning ability. Sex has its impact onabsenteeism

also. It has been proved that some timesabsenteeism is high among female workers due tofamily responsibilities.D. Education.Education has its effect upon individualdifference, and behaviour , largely through the

level of education received. Increased levels of educationpositively affect the working capacity and ability of aperson. The type of education can also affect thebehaviour of a person.E. Abilities.Ability refers

to an individuals capacity toperform the various tasks in a job. Ability of anindividual is made up of two sets of skills. Intellectualand physical.Intellectual abilities are needed to performmental activities. IQ tests, for

example, are designed toascertain ones intellectual abilities. Physical abilitiesmanifest in ones stamina, strength and the like. As eachemployees physical abilities are different, their performance

level will also be different.F. Marital Status.Marital status has influence on peoplesbehaviour. It affects absenteeism, turnover andsatisfaction levels. As marriage imposes additionalresponsibilit y, hence the needs for

steady job and steadyincome. The success or failure of ones marriage life alsoaffect the behaviour of the individual.G. Number of Dependants.There is correlation between number of dependants an

employee has and his behaviour in anorganisation. Number of children an employee has ispositively related to absence, especially among females. 3. ENVIRONMENTAL FACTORS.

Environmental factors include such variables aseconomic, social, political, and the like. These factorsare mainly external and will cause individual difference.A. Economic Factors.The economic environment is an

importantdeterminant of individual difference. All work isperformed within economic framework that bothdirectly and indirectly affects the individuals working init. Employment opportunities will have a stronginfluence

on behaviour. Fewer job opportunities increasethe emphasis on job security and can even change thebasic nature of the employee. Wages satisfy variousindividual needs. Money is a complex variable and

itseffect on individual behaviour varies tremendously.Inequali ties in wages will have a negative effect onemployee performance.B. Cultural Environment.The cultural environment is made up

of institutions and other forces that affect the society'sbasic values, perceptions, work ethics, preferences andbehaviour. People grow up in a particular society thatshape their basic beliefs, values and

behaviours. Culturevaries from country to country and these variationsproduce different behaviours; work ethics, achievementneed, effort reward expectations and values areimportant

cultural factors which affect individuals.In the context of job, work ethic implies hard work andcommitment to work. Strong work ethic ensuresmotivated employees. Achievement need too

hasinfluence on employee behaviour. A person with a 'highneed to achieve' tends to see a high degree of personalresponsibility . It is too well known that a perfect matchbetween effort and reward will

produce better performance from an individual. When the individualfeels that he has been treated unfairly, the performancesuffers.C. Political Factors. -----------------------------------------------------

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Organisation. Structure and Dynamics


The political climate in which an individuallives can affect the individual behaviour through severalfactors. The political ideology of a country and societyaffects individual behaviour. 4

. ORGANISATIONAL FACTORS. Individual behaviour is also influenced byphysical facilities, organisation structure and design,leadership and reward system in an organisation.A. Facilities.The physical

facilities such as lighting, heating,ventilation, air conditioning, space provided,equipments etc will have their influence on employeebehaviour and performance.B. Organisation Structure

and Design.An organisation is a planned co ordination of anumber of people and their activities for theachievement of some specific goals. Organisationstructure shows the way in which different groups

anddepartments in the organisation are set up. Thebehaviour and performance of an individual isinfluenced by where that person fits into the overallstructure and design of the organisation.C.

Leadership.The organisation establishes a system of leadership and supervision to provide direction,assistance, advise and coaching to individual members.The leader behaviour is, there fore, a potential source

of influence on an individual.D. Reward Systems.Organisations establish reward systems tocompensate their employees. the behaviour andperformance of an individual is influenced by the rewardsystem his

organisation has established.E. Motivation.Another factor which affects individualdifference is motivation. One of the most important task of a management job is to identify and activateemployee motives consciously

and constructivelytowards the achievement of the objectives. PSYCHOLOGICAL TESTS

Psychological tests are the tests that aremeant to test the ability of the candidates in

apsychological manner. These tests are commonlyadopted these days to select employees in abusiness and industrial enterprise. These tests helpin testing

the ability of a candidate for a particular job, their attitudes towards work, nature and mentalstatus etc. these tests have proved very useful andhelpful in various fields, such

as selection,direction, training, promotion and developmentprogra mme.Psychological tests are of various types.They include intelligence tests,

interest tests and soon.

INTELLIGENCE TESTS. Intelligence may be defined as the capacity of an individual of comprehension and reasoning. It mayalso be described as the

adjustment of an individual in agiven situation.The earliest effort to measure intelligencesystematic ally was made by French psychologists AlfredBinet & Simon, in the year 1905, when the worlds firstpsychological test

to measure intelligence was devised.This test constituted a great land mark in the history of testing and all psychological testing that has developedlater is either applications, elaborations or

refinementsof original ideas of Binet.Since Binet, a number of intelligence tests havebeen constructed and most of these tests measure suchfunctions as learning memory, flexibility in thinking,speed of

thinking etc. Intelligence tests are very helpfulin judging the mental ability, awareness and reasoningability of the candidate in in different situations. Thesetests are used for selection of employees for

almostevery type of jobs.Intelligence tests may be broadly grouped in totwo categories. Those which give an overall score of intelligence like Intelligence Quotient(IQ) Test, or Mental Age (MA) and those that give us

someindication of persons standing in various elements or factors of intelligence. Intelligence Quotient Test (IQ Test). The concept of Mental Age (MA) was firstdeveloped by Binet. It is very

simple in its conception.we know that the average child of a given intelligence isable to perform certain functions, such as obeyingcertain commands, giving meanings to words and so on.If the tested

child shows an over all ability to performsuch operations, - say a 10 year old child- he is then saidto have a mental age of 10 years. (ie MA=10). If thechild is also ten years old, we can say that his mental

ageequals his chronological age. But he may also performthe average functions, which a child of 11, 12 or 13years could perform. such child then has higher mentalage than which may follow from his

chronological age.but if a ten year old is unable to pass the task set for hisage, and is able to pass only for a five year old, hismental age is 5 years (MA=5) and this means he ismentally retarded. IQ is calculated as the

ratio betweenmental age and chronological age. (MA & CA).MAIQ = ------- X 100. ----------------------------------------------------------------------------------------------------------NSS College. Rajakumari.

Organisation. Structure and Dynamics


CAIn the case of an average person, the IQ will be100. But if there is discrepancies in the MA and CA,

itcan be either above 100 (ie better than averageintelligence) or below 100 (Lower than averageintelligence).T hus by finding the IQ, we can say whether a person is of average intelligence or above or below it.


1. The Stanford Binet Tests and Weschler Scales.These tests are used mostly on singleindividuals and require a trained person to conduct thetest and to interpret the performance.

These tests can beused in a number of areas. But in modern selectionpractice however, they are rarely used because of thetime required to test a person fully.2.Otis Test.This test is available in two forms. - For

schoolgoing children and for college students and adults. Inindustry the adult form of these tests have been used for almost every type of job. This type of test is foundextremely useful for lower level jobs.

Many adaptationsof this tests are now available in Indian languages.3 Wonderlic Personnel Test.This test is a quick test requiring only 12minutes time to answer. The items of this test is soselected that they

can distinguish between a poor worker and a good worker an a variety of industrial jobs.4. Multi factor Tests.The present trend in testing is towards usingmore and more specific tests, which can tell how

anindividual scores on various factors of intelligence.Most of these tests give scores on each separate factor and can be combined as a group. Some such tests are
A. Chicago Test.

Chicago Test is developed by

L.L.Thurstone inthe year 1941. This test include verbal meaning test,space test, reasoning, tests using numbers and wordfluency.
B. The DAT ( Differential Aptitudes Tests)

This test measures important abilities like verbalreasoning,

numerical ability, clerical speed, languageusage and so on. This test is used extensively inindustrial selection. They measure different mentalabilities in different proportion.

This test, called General Aptitude Test Battery,is specifically constructed by the US EmploymentService. It is so constructed that it can test all of apersons vocational abilities. it has twelve tests and nineaptitude scores.Most of these

tests are now adapted to theIndian populations in different regions and can be usedwith considerably greater effectiveness because Indiannorms are developed for them. It is certain that it willgrow rapidly in

the coming years because no industrycan survive, unless it selects its personnel on scientificbasis.

Psychological tests have been an important partof

selection procedure these days. These tests haveproved their utility themselves. The utility andimportance of such tests can be summarised as follows.1. Helpful in scientific appointments.A great

problem before every business thesedays is to get right persons for right jobs. Success of theorganisation depends largely upon the ability, efficiencyand the sincerity of the employees. Psychological

testshelp in selecting appropriate persons for the enterpriseby testing their ability, efficiency and interest in theparticular work.2. Helpful in selection for training.In almost every organisations, training is givento

workers for doing their job in most efficient manner.But everyone cant get the benefit of training. Anindividual can get the benefit from training, only if hehas intelligence and interest required for a particular work.

Psychological tests help in testing these abilitiesof employees so that most suitable employees may beselected for training and both employees and theorganisation may get maximum benefits of trainingprogramme.3.

Helpful in classification according to the level of intelligence.Succes s of a person in a particular work dependsto a large extent upon his level of intelligence. on thebasis of

psychological test, workers can be grouped in todifferent categories. Different jobs requiring differentlevels of intelligence and capacity can be assigned toindividuals based on these classifications.4. Help

in prediction.Using psychological tests, psychologists caneasily make forecast of success possibilities of anindividual. They can also predict the degree of successthat one is likely to achieve.5. Helpful in

diagnosis of problems.Psychologic al tests are helpful in making proper diagnosis of a given problem. (that may be problemrelating to an individual or a group). If the problem isproperly analysed,

steps may be taken to treat theproblem easily.Thus it can be concluded that psychological ----------------------------------------------------------------------------------------------------------NSS College. Rajakumari.

Organisation. Structure and Dynamics


tests are very helpful in many areas. To ensure utility of these tests, care should be

taken to see that the tests arecorrectly administered. PERSONALITY Personality is an important determinant of employee behaviour. It influences selection of individuals to occupy various

positions in anorganisation. The personality required for a successfulsales manager is different from those required for anexecutive in charge of production.The term personality has been derived fromLatin

name persona, which means speak through. Itdenotes the mask worn by actors in ancient Greece andRome. In psychology, it is interpreted in different waysby different theorists. According to Gordon

Allport;personality is the dynamic organisation within theindividual of those psychological systems that determinehis unique adjustment to his environment. It is theorganized set of characteristics possessed by a

personthat uniquely influences his or her cognitions,motivation s, and behaviours in various situations.
(A) Heredity

The concept that heredity is a determinant of personality is embedded in our

minds. In our day today life, so many times we use the term "Like father like son" as "Like mother like daughter * When weuse these terms we generally refer to the traits likephysique, eye

colour, hair colour, height,temperament, energy level, intelligence, reflexes etc.However, the importance of heredity varies from onepersonality trait to another.
(B) Environment.


personality traits are not completely dictated by heredity, environment also plays a very important rolem the development of personality of a

person.Environment comprises of culture, family, social andsituational factors : 1. Culture. According to Hoebel, "Culture isthe sum total of learned behaviour traits which aremanifested and shared by the

members of the society." Culture establishes norms, attitudes and values thatare passed along from generation 10 generation andcreate consistencies over time. Every culture expectsand trains its

members to behave in the ways that areacceptable to the group. Persons belonging todifferent cultural groups generally have differentattitudes towards independence, aggression,competiti

on, cooperation, artistic talent etc. 2. Family. One of the very important determinants of the personality of a person is his immediate family.Families influence the

behaviour of a personespecially in the early stages. The nature of suchinfluence will depend upon the following factors : (1)Socio-Economic level of the family (2) Family size(3) Birth order (4) Race

(5) Religion (6) Parent'seducational level (7) Geographic location.To elaborate, a person brought up in a rich andprestigious family has a different personality ascompared to the people who belong to

a poor family.The family size will also affect the behaviour of achild. The personality of a single child is differentfrom the personality of a person who is brought up ina family of more than

two siblings. Similarly, thepersonality of a person brought up in a nuclear familywill be different from that of a person brought up in ajoint family. Studies have also shown that first bornchildren are

more responsible, rational, independent,ambitio us and more sensitive to social acceptance.Empirica l evidence also suggests that the home andfamily environment, created by the mother and

thefather as well as their own behaviour is highlyinfluential on personality development of the child. 3. Social. Socialization is a process by whichan infant acquires from the enormously wide

range of behavioural potentialities that are open to him at birth,those behaviour patterns that are customary andacceptable to the family and social groups. Initiallysocialisation starts with the

contact of the infant withthe mother when he grows up. Contacts with the other members of the family and social groups influence hissocialisation process. These social groups includeschool mates,

friends, then friends or colleagues atwork place, groups to which an individual belongs.Because ''A man is known by the company he keeps,"all these social groups influence the

behaviour of theindividuals. 4. Situational. Apart from the above factors,situational factors also play a very important role indetermining the personality of a person Migram

sresearch study indicates very powerful role thesituation may play in human personality On the basisof his research studv he states that "A situation exertsan important press on the individual It

exercisesconstraints and may provide push. In certaincircumstances , it is not so much the kind of person

Organisation. Structure and Dynamics . employees.2 . 2 . P a r t i c i p a t i o n . P a r t i c i p a t i o n o f s u b o r d i n a t e s i n t h e d e c i s i o n m a k i n g process will motivate an employee to take proper andp r o m p t a c t i o n o n d e c i s i o n i m p l e m e n t a t i o n . T h i s w i l l also increase his responsibility.3. 3.Communication. Communication is the process of passing ideas fro oneperson or groups to another person or groups. A free andadequate flow of communication is necessary for successful organisational functioning. This providess a t i s f a c t i o n t o w o r k e r s , a s t h e y w a n t t o b e i n f o r m e d properly about the matters concerning their interest. 4. 4. Discipline.The quality of an organisations climate is reflected inthe discipline of its employees. Discipline is theemployees self control to meet organisation standardsa n d o b j e c t i v e s . M a n a g e m e n t s maintain discipline byapplying standards in a consistent, fair and flexiblemanner. D i s c i p l i n e h a s a p o s i t i v e r o l e i n s a t i s f y i n g employees by providing them proper atmosphere.I n a n o r g a n i s a t i o n a l l t h e s e f a c t o r s s h o u l d b e used for motivating the employees. Previously there wasan assumption that higher money would bring higher productivity. But now a days social and

psychologicalsatisfaction is getting more importance.5. Management by objectives.6.Job Satisfaction7.Job enlargement8. Job enrichment. Management by Objectives (MBO) Management by Objectives (MBO) is a processof agreeing upon objectives within an organization sothat management and employees agree to the objectivesand understand what they are in the organization.The term "management by objectives" was firstp o p u l a r i z e d b y P e t e r D r u c k e r i n h i s 1 9 5 4 b o o k ' T h e Practice of Management.The essence of MBO is participative goal setting,c h o o s i n g c o u r s e o f a c t i o n s a n d d e c i s i o n m a k i n g . A n important part of the MBO is the measurement and thecomparison of the employees actual performance withthe standards set. Ideally, when employees themselveshave been involved with the goal setting and thechoosing the course of action to be followed by them,they are more likely to fulfill their responsibilities.Elements in the MBO process.1. Central Goal setting.:-The first step in the MBO process is to defineand verify organisational objectives. These objectivesare generally set by the central management and usuallyin consultation with the other managers. Before settingthe objectives; a detailed assessment will be made of the resources available. This detailed analysis willhighlight the desirable long run as well as short runobjectives. At attempt should be made to make thatobjectives specific and realistic. 2. Departmental and Individual Goal Setting. After setting the organisational objectives, thenext step is to set the departmental objectives. The topmanagement should discuss the objectives with thedepartmental heads so that objectives can be mutuallyagreed upon. Each department sets its long range ands h o r t r a n g e o b j e c t i v e s w i t h t h e a p p r o v a l o f t h e t o p management. After setting the departmental goals, thesubordinates work with their respective managers to settheir own goals relative to the organisational goals. Such participative objectives are important because peoplebecome highly motivated by achieving the objectives setby them. 3. Revision of Job Descriptions . Under MBO, resetting of the individual goalswill call for a revision of the job descriptions of variouspositions which in turn, will call for the revision of thewhole organisational structure. The organisational chartsa n d m a n u a l s w i l l b e a m e n d e d t o d e p i c t t h e c h a n g e s brought in by the MBO. 4. Matching Goals and Resource Allocation . Setting of objectives does not mean anything initself unless resources and means to achieve thereo b j e c t i v e s a r e a l s o p r o v i d e d . T h u s , t h e s u b o r d i n a t e s must be provided necessary tools and materials by themanagements, so that they can achieve their goalseffectively ; and efficiently.5. Establishing Check Points.MBO ensures periodic meetings between them a n a g e r a n d h i s s u b o r d i n a t e t o d i s c u s s t h e p r o g r e s s towards the accomplishment of the targets of thesubordinates For this the manager mustestablish check points or standards of performance for evaluating theprogress of the subordinate. 6. Appraisal of Performance.While informal performance appraisal of asubordinate is done by his manager almost everyday,there should also be periodic review of performance.These periodic reviews are necessary since priorities andconditions are constantly changing and these must beconstantly monitored. These reviews will assist themanagers and subordinates in modifying either theo b j e c t i v e s o r t h e m e t h o d s i f a n d w h e n n e c e s s a r y . 8 . Counseling. The performance review conducted atperiodic intervals assesses the subordinate in improvinghis performance in the future. The superior will discussw i t h t h e s u b o r d i n a t e t h e ways and means to remove --------------------------------------------------------------------------------------------------------------NSS College. Rajakumari. 17 Organisation. Structure and Dynamics . deficiencies in performance and advise him as to howhis efficiency can be improved.7. Counselling.The performance review conducted at periodicintervals assist the subordinates in improving hisperformance. The superior will discuss with thesubordinates the ways and means to remove deficienciesin performance and advise him as to how his efficiencycan be improved. TRANSACTIONAL ANALYSIS.

When two people interact with each other, thereresults a social transaction. Analysis of the socialtransactions is called Transactional Analysis. TA is thestudy of moves, people make in their dealings with eachother. It offers a model of personality & its relationshipsto others. It is a method of analysing and understandinginterpersonal behaviour. Transactional Analysis wasoriginally developed by Eric Berne, a psychotherapist in1950. He observed that it was as if several persons wereinside each persons, and these various selvestransmitted with people in different ways. EGO STATES. Basic to TA is the assumption that a person has3 ego states, namely Parent, Adult and Child.The Parent Ego state: - This represents the partof a persons personality that is authoritative, controlling, nurturing and critical. The parent ego stateincorporates the attitudes and behaviour of alle m o t i o n a l l y s i g n i f i c a n t p e o p l e w h o s e r v e a s a p a r e n t figure, when an individual was a child. The value andbehaviour of these people are recorded in the mind of i n d i v i d u a l a n d t h e s e b e c o m e t h e b a s i c v a l u e s o f t h e personality. The parent ego is there fore the taught egostate.The Adult Ego state: - This represents the naturea n d r a t i o n a l p a r t o f a p e r s o n s p e r s o n a l i t y . P e r s o n s interacting with adult ego views people as equal, andreasonable human being. The adult is characterised bylogical thinking and reasoning. The individual gathersrelevant information, analyses it carefully, generatesalternatives and makes logical choices. In dealing withother people, the adult state is characterised by fairnessand objectivity.T h e C h i l d E g o s t a t e : - T h i s r e p r e s e n t s t h e c h i l d i s h , d e p e n d e n t a n d i m m a t u r e p a r t o f a p e r s o n s personality. These characteristics grow out of oneschildhood experiences. The child age is characterised byn o n - l o g i c a l a n d i m m e d i a t e a c t i o n s . T h i s s t a t e h a s n o self-direction and no ability to move out to face the life. SOCIAL TRANSACTIONS. When people interact, they involve in atransaction with others. Thus when a stimulus from aperson is being responded by another person, atransaction is said to occur. Depending on the kinds of ego states involved, the transaction can be either complimentary, crossed or ulterior.COMPLIMENTARY TRANSACTIONS.T h e s e o c c u r , w h e n t h e m e s s a g e s e n t b y o n e persons ego state receives the appropriate or expectedresponse from other persons ego state. Here the stimulusand response patterns from one ego state to another areparallel.Usually in such a case both parties are satisfieda n d c o m m u n i c a t i o n i s c o m p l e t e . S i n c e t h e s e t y p e o f transactions meet the needs and expectations of initiators communications flow freely and interpersonalrelationships will improve.CROSSED TRANSACTIONS.In this case, the stimulus and response lines arenot parallel. This happens when the person who initiatesthe transactions, expecting a certain responsedoes not get it. Crossed transaction is not a satisfactoryone, because the line of communication is blocked andfurther transaction does not take place. Crossedtransactions are the source of much interpersonalconflict in an organisation.ULTERIOR TRANSACTION. --------------------------------------------------------------------------------------------------------------NSS College. Rajakumari. 18 Organisation. Structure and Dynamics . Ulterior transaction is the most complex becausethe communication has double meaning. This type of transaction involves at least two ego states on the part of the first person. The individual may say one thing (as inadult), but mean some thing quite different.(as parent). When an ulterior message is sent, it is oftendisguised in a socially acceptable way. On the surfacelevel, the communication has a clear adult message,where as it carries a hidden message on thepsychological level.Ulterior transactions are also undesirable.Transactional Analysis is an approach towardsunderstanding human behaviour and it can be applied toany field of human interactions. It improvesinterpersonal relationship by providing understanding of ego states of persons involved in interaction. BRAINSTORMING. Brainstorming technique was developed by AlexOsborn, in 1938. The technique was used originally todevelop an advertising programme, but the technique isn o w w i d e l y u s e d b y m a n y C o m p a n i e s , e d u c a t i o n a l institutions and other organisations; for building creativeideas.Osborn has defined brainstorming simply usingthe brain to storm the problem.B r a i n s t o r m i n g i s a c o n f e r e n c e t e c h n i q u e b y w h i c h a g r o u p a t t e m p t s t o f i n d a s o l u t i o n f o r a p r o b l e m b y amassing all the ideas spontaneously contributed by itsmembers. For conducting brainstorming, a group of 10to 15 members is constituted. The problem is given tot h e g r o u p a n d e a c h m e m b e r i s a s k e d t o g i v e i d e a s through which problem can be solved. Here thei m p o r t a n c e i s o n q u a n t i t y o f i d e a s , a n d q u a l i t y m a y f o l l o w l a t e r . T h e m e m b e r s a r e e x p e c t e d t o p u t t h e i r ideas for problem solution, without taking in toconsideration any limitations financial, legal,organisational or otherwise. Any criticism, judgementor comment is strictly prohibited. This encouragespeople to propose bold, unique ideas without worryingabout what others think of them.Brainstorming is based on the idea that criticaljudgement discourages people from expressingu n o r t h o d o x i d e a s , & t h e s e i d e a s m a y b e t h e k e y t o solving the problems faced by the organisation.Although brainstorming is useful for all types of d e c i s i o n s , i t i s m o r e u s e f u l f o r s i m p l e , w e l l d e f i n e d problems. It encourages enthusiasm and a competitivespirit among members in generating

ideas; it alsoprevents group members from feeling hopelessregarding the range of possibilities in a given situation. --------------------------------------------------------------------------------------------------------------NSS College. Rajakumari. 19 Organisation. Structure and Dynamics . CHAPTER 3JOB SATISFACTION. W h e n a n e m p l o y e e j o i n s a n o r g a n i s a t i o n a n d performs his duties, he wants to satisfy his economic,social and psychological needs. When he does not feelsatisfied with his job, negative attitudes towards work develop in his mind. In this case he tries to change thejob. On the other hand if an employee is satisfied withhis job, he will perform his duties with his wholeheartede f f o r t s . H e w i l l contribute best of his efficiency a n d capability towards the achievement of predeterminedobjectives of the enterprise. Job satisfaction of anemployee is the result of many attitudes and factors.According to Dale Yoder Job satisfaction is regarded asthe composite of attitudes of individual employeestowards their job and relationship they create.Keith Davis defines job satisfaction as a set of favourable or unfavourable feelings with whichemployees view their work.Job satisfaction refers to ones feelings towards job. It isoften determined by how well outcomes meet or exceedexpectations. High job satisfaction may lead toimproved productivity, decreased turnover, improvedattendance and less job stress. Factors affecting Job satisfaction. Several job elements / factors contribute to jobsatisfaction. These include the nature of job, workingconditions, and capabilities and some specific attitudesdeveloped by the circumstances prevailing in theenterprise.JOB FACTORS.Following are job factors which affect job satisfaction.1 . W a g e s : - W a g e s p a y a s i g n i f i c a n t r o l e i n influencing job satisfaction. This is because of twor e a s o n s . F i r s t m o n e y i s a n i m p o r t a n t i n s t r u m e n t i n fulfilling ones needs and employees often see pay as areflection of managements concern for them. Employeeswant a pay system which is simple, fair and in line withtheir expectations.2 . N a t u r e o f w o r k : - M o s t e m p l o y e e s p r e f e r intellectual challenges on jobs. Employees feeldissatisfied, if they have to do the work of similar naturef o r a l o n g t i m e . I f t h e w o r k o f a n e m p l o y e e i s o f different type, and includes moderate challenges,employees experiences pleasure and job satisfaction.3 . S u p e r v i s i o n : - T h e r e i s a p o s i t i v e r e l a t i o n s h i p between the quality of supervision and job satisfaction.Supervisors who establish a supportive relationshipcontribute to their employee satisfaction. Employeesp r e f e r a s u p e r v i s o r w h o h e l p s i n p e r s o n a l p r o b l e m s , does not interfere in work and is friendly.4 . W o r k G r o u p : - T h e w o r k g r o u p a l s o s e r v e a s a source of satisfaction to individual employees. Itprovides opportunities for interaction of group members.It is well known that for many employees work fills theneed for social interaction.5 . W o r k i n g condition:- Working condition thatprovides physical comfort to the employees and t h a t facilitate doing a good job contribute to job satisfaction.Temperature, humidity, ventilation, lighting and heatingare the features which affect job satisfaction.6 . S t a b i l i t y o f J o b : - I f t h e e m p l o y e e s f e e l s t a b i l i t y i n their jobs they feel more satisfied and if they feel their job is not stable, they will remain dissatisfied. This isdue to wide spread un employment, and uncertainties inthe employment market.7. Training Arrangement:- Arrangements of training also satisfy the employees because trainedemployees can do work easily and more efficiently.8 . H u m a n r e l a t i o n s i n t h e e n t e r p r i s e : - I f t h e r e a r e --------------------------------------------------------------------------------------------------------------NSS College. Rajakumari. 20 ORGANISATION STRUCTURE AND DYNAMICS. Unit 3 Job satisfaction - meaning - factors - theories - measurement of job satisfaction - morale - importance -Employee attitudes & behaviour & their significance to employee productivity - job - enrichment - job enlargement. Organisation. Structure and Dynamics . c o r d i a l r e l a t i o n s i n t h e e n t e r p r i s e a n d i f t h e l a b o u r problems are solved in a democratic way, it increasesthe feeling of job satisfaction among employees.INDIVIDUAL FACTORS. Following individual factors also affect job satisfaction.1. Level of Education:- Level of education affects thefeeling of job satisfaction. It has been seen that educatedemployees feel more satisfied with their jobs than theuneducated. But the Indian studies have generally shownthat there is a tendency for the more educated workers tobe less satisfied.2 . I n t e l l i g e n c e : - T h e r e i s a d i r e c t c o r r e l a t i o n between intelligence and satisfaction. It has been theexperience that intelligent employees feel satisfied withtheir jobs. But the relation of

intelligence to jobsatisfaction depends on the level and range of intelligence and challenge of the job.3 . A g e : A g e a l s o a f f e c t s j o b s a t i s f a c t i o n a m o n g employees. Generally it is seen that young employees donot feel satisfied with their jobs because they always tryt o g e t b e t t e r j o b , w h i l e o l d e r e m p l o y e e s f e e l m o r e satisfied with their job.4 . N u m b e r o f d e p e n d e n t s : - F e w I n d i a n s t u d i e s indicated that, the more the number of dependents oneh a s , t h e l e s s s a t i s f a c t i o n h e h a s w i t h t h e j o b . I t i s possible that the stress of greater financial needs, andfamily problems due to increase in family size creategreater dissatisfaction with ones job.Although the management cant control thepersonnel factors of employees, job factors arecontrollable by the management. The issue of wages,security, supervision etc may be given a seriousconsideration. MEASUREMENT OF JOB SATISFACTION. There are a number of ways of measuring jobs a t i s f a c t i o n . T h e m o s t c o m m o n w a y o f m e a s u r i n g include rating scales, critical incidents and interviews.1 . R A T I N G S C A L E . The most common approach for measuring jobsatisfaction is the use of rating scales. These scales fallin to 2 categories. Tailor made scales, which arec o n s t r u c t e d f o r a p a r t i c u l a r p r o j e c t a n d S t a n d a r d i s e d scales developed to establish group norms. It is the tailor made scales which are frequently used in practice.One of the most popular standardised scales isthe Job Descriptive Index (JDI) developed by Smith,Kendell and Hulin in 1969. the JDI has separate scalesfor satisfaction with pay, promotions, supervision, work and co- workers. Requiring only 10 to 15 minutes for a d m i n i s t e r , J D I h a s b e e n w i d e l y u s e d b y b e h a v i o u r researchers aver the years and provides a broad pictureof employee attitudes towards the major components of jobs.A n o t h e r standardised scale is the MinnesotaSatisfaction Questionnaire (MSQ) which in its l o n g f o r m h a s 1 0 0 q u e s t i o n s . I t t a k e s a b o u t 3 0 m i n u t e s t o administer and gives a detailed picture of the specificsatisfaction and dissatisfaction of employees.2. CRITICAL INCIDENTS.The critical incidents approach to the measurement of j o b s a t i s f a c t i o n w a s d e v e l o p e d b y H e r z b e r g a n d h i s associates in their research on the two factor theory of motivation. Employees were asked to describe incidentson their jobs, when they were particularly satisfied or dissatisfied. These incidents were then analysed todetermine which aspects were closely related to positiveand negative attitudes.3 . I N T E R V I E W S . A n o t h e r m e t h o d o f m e a s u r i n g j o b s a t i s f a c t i o n i s t h e personal interview. Employees are interviewedindividually and the response reveal their satisfaction or dissatisfaction.4. USE OF EXISTING INFORMATION.B e f o r e c o n d u c t i n g a n y s u r v e y , m a n a g e r s d o w e l l t o examine two other methods of assessing employeefeelings. Daily contacts and existing data. Managersa r e i n c o n t a c t w i t h t h e i r e m p l o y e e s t h r o u g h c o n s t a n t interaction and communication. This is a practical andtimely method of determining the job satisfaction. Byanalysing the data relating to labour turnover,absenteeism, performance and suggestions, a manager can find out the satisfaction level of employees.5 . S U R V E Y . Surveys are also used for measuring the job satisfaction.Objective surveys using multiple choice questions anddescriptive surveys which give answers in employeesown words are used widely to measure employeesatisfaction. The chief defect of objective survey is thatm a n a g e m e n t p r e p a r e s t h e q u e s t i o n n a i r e a n d p r o v i d e a l t e r n a t i v e a n s w e r s . I t d o e s n o t g i v e m u c h c h a n c e t o employees to express themselves in their own ways. Inthe case of descriptive survey, employees have a greater freedom of expression. The descriptive survey may beu n d e r t a k e n e i t h e r t h r o u g h a n i n d i v i d u a l i n t e r v i e w o r through a group discussion. MORALE. Morale means the attitude of a group of personst o w a r d s t h e i r j o b s , t h e i r e n t e r p r i s e a n d t o w a r d s their --------------------------------------------------------------------------------------------------------------NSS College. Rajakumari. 21