Industrial Psychology and

Sociology
Engr. Misbah ul Hassan
9.1. Individual Differences
According to Drever James:
• “Variations or deviations from the average of the group,
with respect to the mental or physical characters,
occurring in the individual member of the group are
individual differences.”
9.1.1. Types of Individual Differences:
1. Physical differences:
• Shortness or tallness of stature, darkness or fairness of complexion,
fatness, thinness, or weakness are various physical individual
differences.
2. Differences in intelligence:
• There are differences in intelligence level among different individuals.
Test classify the individuals from super-normal (above 120 I.Q.) to
idiots (from 0 to 50 I.Q.) on the basis of their intelligence level.
3. Differences in attitudes:
• Individuals differ in their attitudes towards different people, objects,
institutions and authority.
4. Differences in achievement:
• It has been found through achievement tests that individuals differ in their
achievement abilities. These differences are very much visible in reading,
writing and in learning mathematics.
5. Differences in motor ability:
• There are differences in motor ability. These differences are visible at
different ages. Some people can perform mechanical tasks easily, while
others, even though they are at the same level, feel much difficulty in
performing these tasks.
6. Differences on account of gender:
• McNemar and Terman discovered the following differences between men
and women, on the basis of some studies:
(i) Women have greater skill in memory while men have greater motor
ability.
(ii) Handwriting of women is superior while men excel in mathematics and
logic.
(iii) Women show greater skill in making sensory distinctions of taste, touch
and smell etc., while men show greater reaction and conscious of size-
weight illusion.
(iv) Women are superior to men in languages, while men are superior in
physics and chemistry.
(v) Women are more susceptible to suggestions while there are three
times as many colour blind men as there are women.
(vi) Young girls take interest in stories of love, fairy tales, stories of the
school and home and day-dreaming and show various levels in their play.
On the other hand boys take interest in stories of bravery, science, war,
scouting, stories of games and sports, stories and games of occupation
and skill.
7. Racial differences:
• “Racial differences” can be defined as biological or genetic factors
associated with disease risk, outcome, or treatments not caused by social
factors that vary in prevalence in population groups.
8. Differences due to nationality:
• Individuals of different nations differ in respect of physical and mental
differences, interests and personality etc. ‘Russians are tall and stout’;
‘Germans have no sense of humour’.
9. Differences due to economic status:
• Differences in individual’s interests, tendencies and character are caused by
economic differences.
10. Differences in interests:
• Factors such as gender, family background level of development,
differences of race and nationality etc., cause differences in interests.
11. Emotional differences:
• Individuals differ in their emotional reactions to a particular situation.
Some are irritable and aggressive and they get angry very soon. There
are others who are of peaceful nature and do not get angry easily.
• At a particular thing an individual may be so much enraged that he may
be prepared for worst crime like murder, while another person may only
laugh at it.
12. Personality differences:
• There are differences in respect of personality. On the basis of
differences in personality, individuals have been classified into many
groups.
• Jung classified people into three groups:
(a) Introverts,
(b) Extroverts, and
(c) Ambiverts.
• Trottor divided individuals into:
(a) Stable minded, and
(b) Unstable minded.
• Terman has classified people into nine classes according to their
level of intelligence:
(a) Genius,
(b) Near genius
(c) Very superior,
(d) Superior,
(e) Average,
(f) Backward,
(g) Feebleminded,
(h) Dull, and
(i) Idiot.
9.2. Causes of Individual Differences
1. Heredity:
• Individuals inherit various physical traits like face
with its features, color of eyes and hair, type of skin,
shape of skull and size of hands, color blindness.
2. Environment:
• Environment significantly influences individual differences. Changes in
Individual’s environment are reflected in the changes in his personality.
• According to Psychology, a person’s environment consists of sum total of
stimulation which he receives from conception until his death.
• Environment consists of physical, intellectual, social, moral, political,
economic and cultural forces. All these forces cause individual differences.
• Personality is the outcome of mutual interaction between heredity and
environment.
3. Influence of caste, race and nation:
• Individuals of different castes and races exhibit very marked differences.
• Similarly individuals of different nations show differences in respect of
their personality, character and mental abilities. These are the outcome
of their geographical, social and cultural environment.
• Many studies have shown the existence of differences between
Americans and Negroes, Chineese and Japaneese, English and Indian
individuals.
4. Gender differences:
• Development of boys and girls exhibits differences due to difference in
gender. Girls are kind, affectionate and sympathetic while the boys are
brave, hard, choleric, efficient and competent.
5. Age and intelligence:
• Physical, intellectual and emotional development is caused by the growth
in age. Many individuals differ because of the differences in intelligence.
• Individuals who are below the average in intelligence and mental age find
much difficulty in learning.
6. Temperament and emotional stability:
• Some people are by temperament active and quick, while others are
passive and slow, some humorous and others short tempered.
• Emotional stability of the individual is differently affected by physical,
mental and environmental factors. Differences in emotional stability cause
individual differences.
7. Economic condition and education:
• Individual differences are caused by economic condition of the parents
and the education of the children. It is not possible for the children of two
economic classes to have a similarity and equality.
8. Other Causes:
• Interests, achievements, sentiments, character, educational and
home background lead to individual differences.
9.3. Tests of Personality and Interests
9.3.1. The Myers–Briggs Type Indicator:
The Myers–Briggs Type Indicator (MBTI) is the most widely used
personality-assessment instrument in the world.36 It is a 100-question
personality test that asks people how they usually feel or act in
situations. Respondents are classified as extraverted or introverted (E
or I), sensing or intuitive (S or N), thinking or feeling (T or F), and
judging or perceiving (J or P).
9.3.2. Personality types in Myers–Briggs Type Indicator

• Extraverted (E) versus Introverted (I). Extraverted individuals are

outgoing, sociable, and assertive. Introverts are quiet and shy.
• Sensing (S) versus Intuitive (N). Sensing types are practical and prefer
routine and order, and they focus on details. Intuitives rely on
unconscious processes and look at the “big picture.”
• Thinking (T) versus Feeling (F). Thinking types use reason and logic to
handle problems. Feeling types rely on their personal values and
emotions.
• Judging (J) versus Perceiving (P). Judging types want control and
prefer order and structure. Perceiving types are flexible and
spontaneous.
9.3.3. Problems in MBTI Tests
• MBTI forces a person into one type or another; that is, you are either
introverted or extraverted.
• When people retake the assessment, they often receive different
results.
• MBTI tend to be unrelated to job performance.
9.5. The Dark Triad
• Researchers have identified three other socially undesirable traits,
which we all have in varying degrees: Machiavellianism, narcissism,
and psychopathy.
9.5.1. Machiavellianism:
• An individual high in Machiavellianism is pragmatic, maintains
emotional distance, and believes that ends can justify means. “If it
works, use it” is consistent with a high-Mach perspective. High Machs
manipulate more, win more, are persuaded less by others, but
persuade others more than do low Machs.
9.5.2. Narcissism:
• Narcissism describes a person who has a grandiose sense of self-
importance, requires excessive admiration, and is arrogant.
Narcissists often have fantasies of grand success, a tendency to
exploit situations and people, a sense of entitlement, and a lack of
empathy. However, narcissists can be hypersensitive and fragile
people.
9.5.3. Psychopathy:
Psychopathy is defined as a lack of concern for others, and a lack
of guilt or remorse when actions cause harm. Measures of
psychopathy attempt to assess motivation to comply with social norms,
impulsivity, willingness to use deceit to obtain desired ends, and a lack
of empathic concern for others.
10.1. Personnel Selection
• Recruitment is attracting people with the right qualifications (as
determined in the job analysis) to apply for the job.
• Recruitment Process have following steps.
Stage I - Identify the vacancy
• Vacancy is created when some employee leaves the job or when a
change in organization create it. Vacancies may b created due to the
new setup formation.
Stage 2 - Carry out a job analysis
• When a vacancy becomes available in an organization it is important
that the tasks and skills required for the position are identified. This is
known as a job analysis.
• A job analysis is important as it can be used to identify whether a
vacancy needs to be filled or whether the tasks and duties can be
redistributed to other staff. It is used to help write the job description
and person specification.
Stage 3 - Create a job description
• A job description is a document that states the tasks and
responsibilities of the job. It contains information on:
• duties
• pay
• location
• hours
• conditions of work
• This sets out clearly expectations for whoever applies to fill the
vacancy.
Stage 4 - Create a person specification
• A person specification is a document that states the skills and
qualifications needed to do the job. These skills and qualities can be
listed as either essential or desirable. This will provide a series of
measures against which the organisation can judge people who might
take on the vacancy.
Stage 5 - Advertise the job
• A job can be advertised either internally or externally.

Definition Method of advertising

When you promote or move
Company intranet,
Internal recruitment a person who is already
noticeboard
working for the company
National press, local press,
When you employ a person
recruitment agencies, job
External recruitment from outside the
centres, online
organisation
advertisement
Stage 6 – Accepting Applications
• Candidates are requested to send their application along with CV.
Stage 7 – Create a shortlist
• It would be too costly and time consuming to interview every
candidate that applied for a position so a shortlist is made to reduce
the number of candidates who will be interviewed.
• The application forms or CVs are compared to the person
specification and job description. This is used to draw up a shortlist of
the most suitable candidates. These candidates will be invited to
interview.
• Stage 9 - Hold interviews/testing
• An interview allows the organisation to ask potential candidates a
series of questions. This means each candidate can be compared and
the organisation can assess the candidates’ appearance and
personality.
• Interviews can be:
• one-to-one– one person interviews the candidate
• panel– more than one person interviews a candidate
• Pros and Cons of Interview Method
Advantages Disadvantages
Identifies personality of candidate Time-consuming
Candidate may not react well in stressful
Allows further clarification on information
situations – meaning the best candidate
provided in the application form
for the job is not selected
Gives the candidate an opportunity to ask
questions
Testing
• Testing can provide extra information on a candidate’s suitability
through practical assessments. There are many methods that can be
used to test a candidate’s ability.
10.2. Performance Appraisal
• Performance Appraisal refers to the regular review of an employee's
job performance and overall contribution to a company.
10.2.1. Goals of an appraisal system.
• They are as follows:
• To improve the company's productivity
• To make informed personnel decisions regarding promotion, job
changes, and termination
• To identify what is required to perform a job (goals and
responsibilities of the job)
• To assess an employee's performance against these goals
• To work to improve the employee's performance by naming specific
areas for improvement, developing a plan aimed at improving these
areas, supporting the employee's efforts at improvement via
feedback and assistance, and ensuring the employee's involvement
and commitment to improving his or her performance.
10.2.1. Management by Objectives (MBO)
• Management by objectives (MBO) is the appraisal method where
managers and employees together identify, plan, organize, and
communicate objectives to focus on during a specific appraisal
period. After setting clear goals, managers and subordinates
periodically discuss the progress made to control and debate on the
feasibility of achieving those set objectives.
• This method uses the SMART Technique.
• Specific, Measurable, Achievable, Realistic, and Time-sensitive
10.2.1.1. Common reason for failure:
1. Incomplete MBO program.
2. inadequate corporate objectives.
3. lack of top management involvement.
10.2.2. 360-Degree Feedback
• 360-degree feedback is a multidimensional performance appraisal
method that evaluates an employee using feedback collected from
the employee’s circle of influence namely managers, peers,
customers, and direct reports. This method will not only eliminate
bias in performance reviews but also offer a clear understanding of an
individual’s competence.
• It has five basic components.
1. Self-appraisals
• Self-appraisals offer employees a chance to look back at their
performance and understand their strengths and weaknesses.
2. Managerial reviews
• Performance reviews done by managers are a part of the traditional
and basic form of appraisals. These reviews must include individual
employee ratings awarded by supervisors as well as the evaluation of
a team or program done by senior managers.
3. Peer reviews
• As hierarchies move out of the organizational picture, coworkers get a
unique perspective on the employee’s performance making them the
most relevant evaluator. These reviews help determine an employee’s
ability to work well with the team, take up initiatives, and be a
reliable contributor.
4. Subordinates Appraising manager (SAM)
• This upward appraisal component of the 360-degree feedback is a
delicate and significant step. Reportees tend to have the most unique
perspective from a managerial point of view. However, reluctance or
fear of retribution can skew appraisal results.
5. Customer or client reviews
• The client component of this phase can include either internal
customers such as users of product within the organization or
external customers who are not a part of the company but interact
with this specific employee on a regular basis.
10.2.2.1 Advantages of using 360-degree feedback:
• Increase the individual’s awareness of how they perform and the
impact it has on other stakeholders
• Serve as a key to initiate coaching, counselling, and career
development activities
• Encourage employees to invest in self-development and embrace
change management
• Integrate performance feedback with work culture and promote
engagement
10.2.2.2.Common reason for failure of 360 Degree Feedback:
1. Leniency in review,
2. Cultural differences,
3. Competitiveness,
4. Ineffective planning, and
5. Misguided feedback.
10.2.3. Assessment Centre Method
• During the assessment, employees are asked to take part in social-
simulation exercises like informal discussions, fact-finding exercises,
decision-making problems, role-play, and other exercises that ensure
success in a role.
• The major drawback of this approach is that it is a time and cost
intensive process that is difficult to manage.
10.2.3.1. Advantages of the assessment centre method:
1. Enhance a participant’s knowledge, boost his/her thought process,
and improve employee efficiency
2. Can be tailored to fit different roles, competencies, and business
needs
3. Offer an insight of the employee’s personality (ethics, tolerance,
problem-solving skill, introversion/extroversion, adaptability, etc.)
10.2.4. Behaviorally Anchored Rating Scale
(BARS)
• Behaviorally Anchored Rating Scales, also known as BARS, are a type
of performance management scale that use behavior “statements” as
a reference point instead of generic descriptors commonly found on
traditional rating scales.
• Designed to add the benefits of both qualitative and quantitative
information to the appraisal process, the BARS method of
performance appraisal measures an employee’s performance against
specific examples of behavior that are given a number rating for the
purpose of collecting data.
10.2.4.1. Disadvantages of Using the Bars
Approach:
• It’s a time-consuming process. As great as it sounds to design the unique
experience for each position, an organization with many different roles
would have to invest an enormous amount of time and resources to get it
done.
• It can be expensive. Time is money. For smaller organizations with multiple
roles, this may not be feasible to accomplish in the short run.
• It demands a management team that is highly devoted/motivated. All of
the statements and anchors used on the appraisal need to be developed. It
is demanding and managers would have to be highly involved.
• It can be accused of leniency bias. BARS directly removes the opportunity
for an evaluation to be biased, however, it doesn’t remove them all. Some
believe there is still room for the leniency error.
10.2.5. Psychological Appraisals
• Psychological appraisals come in handy to determine the hidden
potential of employees.
• This method focuses on analyzing an employee’s future performance
rather than their past work.
• These appraisals are used to analyze seven major components of an
employee’s performance such as interpersonal skills, cognitive
abilities, intellectual traits, leadership skills, personality traits,
emotional quotient, and other related skills.
• Qualified psychologists conduct a variety of tests (in-depth interviews,
psychological tests, discussions, and more) to assess an employee
effectively.
10.2.5.1. Common reasons for failure:
1. Absence of proper training,
2. Lack of trained professionals to administer reviews, and
3. Nervousness or anxiety of candidates can skew results.
10.2.6. Human-Resource (Cost) Accounting
Method
• Human resource (cost) accounting method analyses an employee’s
performance through the monetary benefits he/she yields to the
company.
• It is obtained by comparing the cost of retaining an employee (cost to
company) and the monetary benefits (contributions) an organization
has ascertained from that specific employee.
• When an employee’s performance is evaluated based on cost
accounting methods, factors like unit-wise average service value,
quality, overhead cost, interpersonal relationships, and more are
taken into account.
• Its high-dependency on the cost and benefit analysis and the memory
power of the reviewer is the drawback of human resources
accounting method.
10.2.6.1. Limitations of Human-Resource
(Cost) Accounting Method
• There is no specific guideline for measuring the cost and value of
human resources.
• While valuing human assets, demand for rewards and compensation
might be higher.
11. Management:
Management is the act of getting people together to accomplish
desired goals and objectives using available resources efficiently and
effectively.
Management functions include:
Planning, organizing, staffing, leading or directing, and controlling an
organization (a group of one or more people or entities) or effort for
the purpose of accomplishing a goal.
Evolution of Management Philosophies
• Management theories can be grouped under three categories;
1- Classical theory,
2- Neoclassical theory and
3- Modern management theory.
The theories that emerged under the classical evolution of
management thought are:
11.1. Scientific Management
• Fredrick Winslow Taylor, an engineer, proposed and developed the
Scientific Management Theory. He is also known as the Father of
Scientific Management and his school of thought came to be known
as Taylorism. He introduced a scientific approach to productivity,
which meant that an increase in efficiency can lead to higher
productivity and profits. He believed that research-backed and
standardized procedures were necessary for effective management.
11.1.1. Four Rules of Scientific Management Theory:
1. Science, Not Rule of Thumb
2. Harmony, Not Discord
3. Cooperation, Not Individualism
4. Development of Each and Every Person to His / Her Greatest
Efficiency and Prosperity
11.2. Administrative Management
• Henry Fayol, a French mining engineer, laid down 14 principles of
management under the theory of Fayolism. This gave way to the
school of administrative management. He believed that these
principles can guide managers to fulfill their responsibilities
effectively and they should have the liberty to determine how to use
them.
11.3. NEOCLASSICAL THEORY OF
MANAGEMENT
• The theories that emerged under the neoclassical evolution of
management practices are:
11.3.1. Human Relations Management
• Developed by Elton Mayo, an Australian psychologist, the Human
Relations Theory of Management was proposed after a series of
experiments, also known as Hawthorne Studies or Hawthorne
Experiments. This theory emerged as a response to the criticism faced
by the classical management theories, where social factors such as
human behavior and attitudes weren’t considered important.
1.Industrial problems are primarily caused by human and social
factors.
Human Relations is the main way to resolve industrial problems (but
technical efficiency via Scientific Management is also important).
2.Workplace rules and procedures influence workers’ attitudes.
3.Workers’ attitudes determine the characteristics of and informal
rules within workplace social groups.
4.Interactions with supervisors and co-workers can cause stress and
fatigue.
5.If group attitudes are negative, informal rules can take precedent
over formal rules, in turn negatively impacting production.
6. A lack of attention paid to workers can result in intentional
underproduction. Workers should be given an appropriate amount of
attention by managers and supervisors.
7. Job satisfaction, group dynamics, and individual and group attitudes
toward work all have a strong influence on motivation and
productivity (but physical working conditions and incentives are still
relevant and important).
8. Increased communication and cooperation improves group cohesion.
Managers and supervisors should be trained to be effective listeners
and communicators/interviewers in order to understand and address
the personal and social problems of workers. Moreover, they should
use these skills at all times.
9. Job satisfaction, motivation, and productivity depend more on
recognition, involvement, and cooperation than physical working
conditions.
In order to increase job satisfaction, motivation, and productivity,
employees should be given:
• Opportunities to discuss their personal and work-related problems;
• Opportunities to express their opinions;
• Opportunities for social interaction and team building;
• More freedom to determine their own working conditions; and
• The ability to set their own standards of output.
11.4. Behavioral Management
• Behavioral approaches to management set the pace for how modern
workplaces build an employee-friendly culture. Abraham Maslow, an
American psychologist, proposed the hierarchy of need, where
employee need and expectations were prioritized. The theory
suggests that human relations and behavior are essential in driving
efficiency in teams and managing the workforce successfully.
• He proposed that people are motivated
by five categories of needs:
physiological, safety, love, esteem, and
self-actualization. These needs are
represented as a pyramid, with basic
physiological needs such as food, water
and shelter at the base and the need for
self-actualization at the top.
• Maslow further classified the bottom
four levels of the pyramid “deficiency
needs,” noting that “a person does not
feel anything if they are met, but
becomes anxious if they are not.” He
classified the fifth level “a ‘growth
need’ because it enables a person to
‘self-actualize’ or reach his fullest
potential as a human being.
• A need that is satisfied no longer motivates. An unmet need is a
primary motivator. Thus, Maslow’s hierarchy provides managers with
a visual representation of employee motivation.
11.5. MODERN THEORY OF MANAGEMENT

• The theories that emerged with the modern evolution of

management needs are:
11.5.1. Systems Approach
• Views the organization as an open system made up of interrelated
and inter-dependent parts that interact as sub-systems.
• Thus the organization comprises a unified singular system made up of
these subsystems. For example, a firm is a system that may be
composed of sub-systems such as production, marketing, finance,
accounting and so on. As such, the various sub-systems should be
studied in their inter- relationships rather, than in isolation from each
other.
11.5.2. Contingency Approach
• The Contingency Management Theory suggests that there is not any
perfect way to organize a business or corporation. The optimal
solution lies in the situation that an organization operates in. A
business is contingent (depends) upon internal or external
environments.
12. Leadership
• Leadership is the ability of an individual or a group of individuals to
influence and guide followers or other members of an organization.
• Leader versus Manager
• not interchangeable
• management is a process consisting of planning, organizing, directing, and
controlling but leadership is a social (interpersonal) influence relationship
between two or more people who are dependent on each another for goal
attainment.
• Managers are generally appointed to their role but leadership is a
relationship that revolves around the followers’ acceptance or rejection of
the leader.
• Managers commonly derive their power from the larger organization.
They make use of certain “carrots and sticks” (rewards and
punishments) as ways of securing the compliance of their employees.
• leaders to derive power from followers’ perception of their
knowledge (expertise), their personality and attractiveness, and the
working relationship that has developed between leaders and
followers.
• Subordinate complies to a manager because of the carrots and sticks.
The followers of a leader comply because they want to.
12.1.Leadership Thoeries
• 12.1.1. Great Man Theory
• The great man theory of leadership, sometimes called the trait theory,
suggests that good leaders are born. They have innate traits and skills that
make them great, and these are things that can’t be taught or learned.
The trait theory suggests that leaders deserve to be in their position
because of their special traits.
• There is a great amount of criticism for the trait theory, mainly that leaders
are either born or not, that there isn’t work or effort that is needed to be
put in so you can become a leader. This suggests that social or
psychological leaders are predetermined and that leaders are unable to
come from the shadows—they are either chosen or not. There is also
criticism that most of the traits associated with this theory are inherently
masculine, and don't match the real psychology of good leaders.
• People cite Abraham Lincoln, Alexander the Great, Queen Elizabeth I,
and many others as their examples of the great man theory. These
social giants utilized their skills to lead nations.
• High levels of ambition and determination are usually seen in
leaders that appear to bring this theory to life. Today, leaders that
climb to the top may view their traits and abilities as part of the
“great man” theory. So it may appear that leaders get to their position
based on their inherit gifts.
12.1.2. Behavioral theory:
• The behavioral leadership theory focuses on how leaders behave,
and assumes that these traits can be copied by other leaders.
Sometimes called the style theory, it suggests that leaders aren’t
born successful, but can be created based on learnable behavior.
• Behavioral theories of leadership focus heavily on the actions of a
leader—this theory suggests that the best predictor of leadership
success is viewing how a leader acts.
• Action rather than qualities are the focal points of behavioral learning
theory. Patterns of behavior are observed and categorized as “styles
of leadership” in this theory.
• The behavioral theory has many advantages, primarily that leaders
can learn and decide what actions they want to implement to
become the kind of leader they want to be.
• It allows leaders to be flexible and adapt based on their
circumstances.
• Another great benefit of this leadership style is that it suggests
anyone is capable of becoming a leader.
• Some disadvantages of the behavioral theory are that while it allows
flexibility, it doesn’t directly suggest how to behave in certain
circumstances.
• A great example of the behavioral theory is looking at a task-oriented
leader vs. a people-oriented leader.
• If there’s a problem with a team, a task-oriented leader will look at
the process to see if something needs to be adjusted with the
workflow.
• A people-oriented leader will look at the individuals and go right to
them, asking what the issue is.
• Whatever behaviors you choose, the behavioral leadership theory
helps leaders focus on their actions and utilize their decisions to be a
great leader.
12.1.3. Contingency theory.
• The contingency leadership theory, sometimes called situational
theory, focuses on the context of a leader. These theories look at the
situational effects of the success or failure or a leader.
• A leader’s effectiveness is directly determined by the situational
context. While a leader’s personality is a small factor in their success,
the most important factor is the context and situation of the leader.
• This theory takes the specific leadership styles and suggests that good
leaders can adjust their leadership style situationally. It also suggests
that it may be best to find the right kind of leader for a specific
situation.
• The contingency theory has great advantages, including that leaders
are able to be effective no matter their situational context. However,
this theory does have criticism suggesting that there isn’t enough
detail that goes into the context of any situation.
• Contingency theory focuses on the importance of a situation, but may
not focus enough on the psychology of the employees or the
company itself. It also may not focus enough on how leadership styles
can change over time.
12.1.4. Management theory.
• The management theory is sometimes called transactional leadership,
and focuses on supervision, organization, and group performance.
Transactional leadership is a system of rewards and punishments,
and transactional leadership is regularly used in business.
• When employees do something successful, managers reward them.
When they fail, they may get punished.
• Transactional rewards and punishments are given based on the idea
that people really only do things for the reward. Their psychology
doesn't allow human beings to do things out of goodness, but rather
out of the promise of a reward.
• The management leadership style can be extremely effective. Positive
reinforcement is known for working wonders with employees,
encouraging and motivating them to succeed. But there is lots of
criticism around leadership that is strictly transactional as well.
• Consequences and punishments can decrease morale in an
organization, negatively impacting employees. It can also be seen as a
lazy leadership style—rewards and punishments are a relatively
simple way to lead employees.
• A common example of this management style is a leader that offers a
cash bonus for employees who meet a goal. Or a leader who makes
employees do extra paperwork if they miss a deadline.
12.2. Leadership Styles
• 12.2.1. Transactional Leadership
• This style of leadership starts with the premise that team members
agree to obey their leader totally when they take a job on.
• The “transaction” is usually that the organization pays the team
members, in return for their effort and compliance. As such, the
leader has the right to “punish” team members if their work doesn’t
meet the pre-determined standard.
• Team members can do little to improve their job satisfaction under
transactional leadership. The leader could give team members some
control of their income/reward by using incentives that encourage
even higher standards or greater productivity.
• Alternatively a transactional leader could practice “management by
exception”, whereby, rather than rewarding better work, he or she
would take corrective action if the required standards were not met.
12.2.2. Autocratic Leadership
• Under the autocratic leadership styles, all decision-making powers
are centralized in the leader as shown such leaders are dictators.
• Autocratic leadership is an extreme form of transactional leadership,
where a leader exerts high levels of power over his or her employees
or team members.
• People within the team are given few opportunities for making
suggestions, even if these would be in the team’s or organization’s
interest.
12.2.3. Transformational Leadership
• Transformational leadership is a leadership style that is defined as
leadership that creates valuable and positive change in the
followers.
• A transformational leader focuses on “transforming” others to help
each other, to look out for each other, to be encouraging and
supportive, and to look out for the organization as a whole.
• In this leadership, the leader enhances the motivation, morale and
performance of his follower group.
12.2.4. Charismatic leadership
• Charismatic leadership is characterized by a person at the helm who
can inspire and influence others by using their persuasiveness and
strong communication skills to charm others.
• Charismatic leaders can tend to believe more in themselves than in
their teams. This can create a risk that a project, or even an entire
organization, might collapse if the leader were to leave because in the
eyes of their followers, success is tied up with the presence of the
charismatic leader.
12.2.5. Democratic leaders
• Democratic leaders are more likely to ask "How do you see it?" And,
wherever possible, they share information with employees that
affects their work responsibilities. They also seek employees'
opinions before making a final decision.
Morale and Productivity
Lecture 4
13. Morale
• Larry Flippo defines morale as a mental condition or attitude of
individual and groups which determines their willingness to
cooperate. Morale is basically a group phenomenon. It describes the
level of favourable or unfavorable attitudes.
• Morale refers to the total satisfaction, a person derives from his job,
his work group, his boss, the organization and his general
environment. It is reflected in the general feeling of well being,
satisfaction and happiness of people.
• Morale in general sense is referred to 'willingness to work'. High
morale is the result of job-satisfaction which is again the result of
motivational attitude of the management.
• There are three main approaches to Morale :
1. Classical Approach assumes that satisfaction of basic needs is the
symbols of morale. Need satisfaction leads to high morale.
2. Psychological Approach emphasizes that apart from the basic needs,
psychological needs also influence the morale of the people.
3. Social Approach recognizes the morale as social phenomenon which
persuades the people to live in society or groups in achieving the
common goal.
13.1. Individual and Group Morale
• Individual morale is a single person's attitude towards work,
environment etc.
• Whereas group morale reflects the general attitude of a group of
persons. Group morale is everybody's concern and may go on
changing with the passage of time.
• Individual and group morale are inter-related but not necessarily
identical. They have an effect on each other.
• The individual's personal perception of the present conditions may be
high but the group's perception may be low or vice
13.2. Morale and Motivation
• Morale and motivation are inter-related but differ from each other.
Morale refers to the attitude of a person towards his work and
environment while motivation is a process to inspire people.
• Motivation is an inner feeling which energizes a person to work more
for satisfying his unsatisfied demands. Motivation revolves around
needs and incentives while morale will determine the willingness to
cooperate.
• Morale is a group phenomenon while motivation is an individual's
readiness to work more. Moral is related to the combination of
various factors operating at work but motivation concerns to the job
only. Motivation helps in mobilizing energy while morale is
concerned with the mobilization of sentiments.
13.3. Morale and Productivity
• Morale reflects the attitude of employees towards their work.
• A number of research studies reveal that there is no direct
relationship between morale and productivity.
• High morale may lead to higher productivity but in some cases
production may go down even.
• It is generally felt that there is a positive relation between morale and
productivity but the degree may not be the same. For example, 10
per cent increase in morale may lead to higher productivity but
production may not necessarily increase by 10 percent.
• Delbert C. Miller and W.H. Form have given four combinations of
productivity and morale viz.
• (i) high productivity-high morale; (ii) low productivity-high morale; (iii)
high productivity low morale and (iv) low productivity-low morale.
13.3.1. Relationship between morale and productivity.
• The first situation occurs when the individual is satisfied from the job
and prevailing environment. He will try to achieve his standards of
performance which will lead to higher productivity.
• In the second situation (low productivity and high morale) the
employee may be satisfied from his work and situations, prevailing
and showing high morale. Lack of proper teaching of the employee,
lack of administrative skill of supervisor, defective materials,
outdated technology may lead to low productivity inspite of high
morale.
• In the third situation, management may use strict supervision,
prescribe punishments for low productivity and use better
technology for raising productivity, inspite of low morale.
• The fourth situation occurs where factors obtained in combination of
high productivity and high morale are lacking.
• A more accurate statement about high morale is that it indicates a
predisposition to be more productive if leadership is effective along
with proper production facilities and individual's ability.
13.3.2. Factors that determine productivity
• This shows that productivity is a function of four factors-
organizational factors, individual factors, attitudes and morale.
• Attitudes and morale, in turn, are determined by the satisfaction of
individuals which is again affected by organizational and individual
factors.
• The successful managers recognize that behavioral management
requires a positive integration of goals so that people working
together will achieve the desirable high morale with high productivity.
13.4. Conclusion
• There may be following four possible relationship between morale
and productivity.
(i) High morale with high productivity where proper motivation and
supervision exist.
(ii) Low morale with low productivity exists where motivation and
supervision are defective.
(iii) High morale with low productivity exists where employees are not
fully trained and supervise incompetent.
(iv) Low morale with high productivity exists where management is
anti-workers or production oriented.
14. Job Analysis
• Job analysis is the process of studying and collecting information
relating to the operations and responsibilities of a specific job.
• Mathis and Jackson (1999) view job analysis as a systematic way to
gather and analyze information about the content and human
requirements of jobs and the context in which jobs are performed.
• Dessier (2005) defines job analysis as the procedure through which
job analyst determines the duties of different positions of an’
organization and the characteristics of the people to hire them.
14.1 Features of Job Analysis
• Job analysis is a process of gathering relevant information about various
aspects of a job and identifying tasks required to be performed as part of it.
• It approaches systematically defining the role, context, conditions, human
behavior, performance standards, and responsibilities of a job.
• It helps in establishing the job’s worth to an organization. In other words, it
measures the value and contribution of a job to the growth of the
organization.
• It establishes job-relatedness, which is crucial for HR decisions involving
recruitment, selection, compensations, training, health, and safety.
14.2 Information Collection
• The following factors help make distinctions between jobs:
• Knowledge, skills and abilities (KSAs) needed.
• Work activities and behaviors.
• Interactions with others (internal and external).
• Performance standards.
• Financial budgeting and impact.
• Machines and equipment used.
• Working conditions.
• Supervision provided and received.
14.3 Process of Job Analysis

The Process of job analysis have four basic steps.

1. Writing the Job Description
2. Determine the Job Family
3. Determine Job Zone
4. Determine Title
14.3.1 Determine the Job Description
• The job description is a written statement that describes the work
that is to be done and the skills, knowledge and abilities needed to
perform the work.
• Each job has a description identifying the duties, qualifications,
decision-making, interactions, supervision received/exercised and
impact of the position.
14.3.2. Determine the Job Families
• Job families are broadly defined groupings of jobs. They are
composed of jobs related through common vocations/professions.
• Some will have different levels of complexity of duties or different
scopes of responsibility and require a different level of qualifications
and competencies.
• Examples: Quality Control, Production etc.
14.3.3. Determine the Job Zone
• Determine the appropriate zone within the selected job family by
matching the job description of the new or revised job to the zone
criteria described in the Zone Placement Matrix. Descriptions of other
unit jobs in the job family zone should also be reviewed when making
this determination.
• Job families have four zones:
1. Assistant
2. Associate
3. Specialist
4. Senior
• Each zone represents a recognizable and measurable difference in
levels of responsibilities, complexity, impact, skills and expertise
within the specific job family.
• The objective of the zone placement is to find the zone that generally
fits with the nature of the job. Some jobs may contain duties and
responsibilities that partially fit in two zones. The best-fit zone is the
one that is consistent with the majority of the job's duties and
responsibilities.
14.3.4. Determine Job Title
• The System job title is determined by combining the job family name
with the zone title.
• The goals of job titles are to:
• Establish clear and meaningful distinctions among job titles.
• Encourage a multi-skilled staff that works across traditional job
boundaries.
14.4. Job Analysis Methods
14.4.1. Observation Method
• A job analyst observes an employee and records all his performed
and non-performed task, fulfilled and un-fulfilled responsibilities and
duties, methods, ways and skills used by him or her to perform
various duties and his or her mental or emotional ability to handle
challenges and risks.
• This particular method includes three techniques: direct observation,
Work Methods Analysis and Critical Incident Technique.
• Direct Observation method includes direct observation and recording
of behaviour of an employee in different situations.
• Work Methods Analysis involves the study of time and motion and is
specially used for assembly-line or factory workers.
• Critical Incident Technique is about identifying the work behaviours
that result in performance.
14.4.2. Interview Method:
• In this method, an employee is interviewed so that he or she comes
up with their own working styles, problems faced by them, use of
particular skills and techniques while performing their job and
insecurities and fears about their careers.
• And to avoid errors, it is always good to interview more than one
individual to get a pool of responses. Then it can be generalized and
used for the whole group.
14.4.3. Questionnaire Method:
• Another commonly used job analysis method is getting the
questionnaires filled from employees, their superiors and managers.
• In order to get the true job-related info, management should
effectively communicate it to the staff that data collected will be used
for their own good.
• It is very important to ensure them that it won’t be used against
them in anyway. If it is not done properly, it will be a sheer wastage of
time, money and human resources.
14.5. Job Requirements
• Job requirements are “must haves” that an employer is looking for in
a candidate for a certain job position.
• Job requirements are usually written in form of a list that contains the
most important qualifications that a candidate must possess in order
to be able to perform certain job duties.
• These qualifications include:
• Work experience - types and amounts (years) of work experience
• Skills (soft skills and/or technical skills)
• Specific knowledge
• Education level and type
• Professional licenses, accreditations and certifications
• Personal qualities and attributes
• Languages
• Physical abilities.
14.5.1. Benefits:
We demand the best from our people. So it’s only right we reward
them with the best benefits. That’s why we offer a competitive
package, including: a generous bonus, life assurance, private medical
cover, Mercedes company car lease scheme, 25 days holiday, on-site
gym and subsidised restaurant facilities.
• Job Type: Full-time
• Another general rule is that when seeking to fill any vacancy you
should always consider the internal candidates that could be
promoted to the available post and then recruit externally for the
more junior position.
• Too often senior managers pay attention to the recruitment process
and only become actively involved when a senior post is being filled,
or at the end of the process for a quick ‘final’ interview. This is a
mistake and you should be concerned with the quality and
suitability of every employee who joins your business.
• It is often assumed that interviewing is something that any
experienced manager can do. Only trained person should be engaged
for interviewing. Nobody in business should conduct interviews
without adequate training.
• There are many legal issues associated with the recruitment process
and you should familiarize yourself with all relevant legislation.
• The principle objective of the recruitment process should be to
recruit, select and appoint employees appropriate to the present
and future needs of your business.