MPOB (Unit 3)

(Fundamentals of Organizational Behavior UNIT 3)

1) Introduction and Meaning

What is an organization? - An organization is a consciously coordinated social

unit, composed of two or more people that functions on a relatively continuous
basis to achieve a common goal or set of goals.

What is organizational behavior? - Organizational behavior is a field of study

that investigates the impact that individuals, groups, and structure have on behavior
within organization, for the purpose of applying such knowledge toward improving
an organizations effectiveness.

Meaning & definition of organizational Behavior

OB comprises three main features

1. OB is the study of human behavior

2. The study of behavior in organization

3. Knowledge about human behavior would be useful in improving an

organization’s effectiveness.

“Organization on Behavior is concern with the study of the behavior of people

within an organizational setting. It involves the understanding prediction and
control of human behavior and the factors which influence the performance of
people as members of organization.” Fred Luthans

OB is a field that investigates the impact that individuals, group or structure have
on behavior with external environment to improve organizational effectiveness.

Organizational Behavior encompasses three broad areas –

1. Behavior of People in organization – OB includes study psychology
anthropology and sociology to gain insight into Behavior of individuals in
organizational settings.

It includes.

 Perception, cognition& learning

 Personality & motivation
 Leadership, Power, Conformity, Communication
 Decision making etc.

2. Organizational Structure – OB studies the organizational structure as to

how people are organized or arranged to achieve organizational goals. It
includes –

 Task identification
 Departmentation
 Co-ordination & control mechanism
 Process & Procedures like promoting, hiring, compensation
 Organizational Farm
 Size
 Centralization of decision making
 The relationship among these variables

3. Behavior of Organization – OB not only studies the interaction of

individuals with organization with each other but it also study the interaction
of organization into its environment i.e., organizations behavior with
external actors by following methods –
4. a. Adoption of new Practices such as –

 down sizing
 Team based structure
 Re-engineering

b. Adoption to changing conditions –

 Global competition
 Increasing technological use
 Changing social structure (status if women disabled ethic group)
Why study organizational behavior? : - Behavior is generally predictable, and
the systematic study of behavior is a means to making reasonably accurate
predictions.

Systematic study involves looking at relationships, attempting to attribute causes

and effects, and drawing conclusions based on scientific evidence.

Characteristics of OB

1. Science as well as Art – OB is both science and art. It is a systematic body of

knowledge about human behavior so it is considered as science but it is in exact
science as human behavior cannot be predicted exactly so sometimes it cannot
provide answers to specific organizational problems. As an art the knowledge of
OB is applied to improve organizational effectiveness.

2. Human tool – Organizational behavior is a human tool for human benefit which
helps the manager of certain actions. It also provides the education needed for
creative thinking to save human problems in organizations.

3. Action & goal oriented – OB is a goal directed discipline that studies human
behavior and explain it in organizational context as well as helps in taking proper
action to mould that individual behavior towards the goal achievement of
organization.

4. Commonality of Interest – OB helps in providing commonality of interest

between individual goals and organizational goals and objectives. It provides
super-ordinate goals that unite the variety of needs that bring people to
organizations.

5. Holistic Concepts – OB is a holistic concept which relates people whole group,

organization as a whole system. It gives a broad view of people in organization and
studies many factors that influence their behavior. It gives a broad view of human
related issues & problems.

6. Behavioral Approach to Management – OB is a behavioral approach to

management. It is a part of management related with analyzing behavior of human
beings in group & organization. It is distinct field of study.

7. Integrating Approach – OB is an integrating approach of human technical and

ethical values s work which draws knowledge from various disciplines such as
anthropology, Psychology, Law, Sociology, Economics, IT Political Science,
engineering etc.

Importance of OB

1. OB provides a road map to individuals in organization. It helps people to

understand their behavior and its impact while working in organization.

2. OB helps a manger to motivate his subordinates regularly as it helps

subordinates regularly as it helps the manager understand the basis of motivation
and what he should do to motivate others.

3. Understanding of OB is useful to maintain cordial industrial relations.

4. OB helps an individual in maintaining good intrapersonal & interpersonal

relations.

5. OB helps in influencing organizational events by understanding the

organizational culture & behavior appropriately and effectively to influence the
environment they live in .for ex: how to communicate effectively, managing
conflicts, better decision making, more effective team work and team dynamics.

Elements of OB

1. PEOPLE (Individual & group)

2. EXTERNAL ENVIRONMENT
3. ORGANIZATIONAL STRUCTURE
4. TECHNOLOGY

1. Individual: The most important element of OB. OB studies the

behavioral of individual (or in a group) and the various factors
influencing the behavior and its effects on organization
2. Group: Group can be formal, informal, small, large, official, unofficial
in nature. Group is dynamic ever changing in nature.
3. Organization structure: OB establishes various post & positions for
people in organization & thus creates a professional relationship in
between them.
4. Technology: Use of technology also influences human behavior External
environment: - Organization is a part broader external environment.
5. Environment affects the organization through technological or scientific
developed, social, cultural and Govt. actions.
Disciplines of OB

Organizational behavior is a applied behavioral science which is drawn

from no. of behavioral disciplines like

1. Psychology: Psychology is the study and understanding of human

mind and thinking and the behavioral aspects based on such thinking.
Psychology tries to measure, explain at times even modify the behavior
of human beings & animals. It includes personality, perception, learning,
motivation, attitude etc.

2. Sociology: Sociology addresses the study of group behaviors. It

studies the behavior of the people in the fellow human beings in a group.
It studies how much people are socially active. It includes group
dynamics, communication, leadership conflict management, formal and
informal organizations etc.

3. Anthropology: It is the study of human culture its history and

evaluation. It deals both the development of human values, systems,
norms, sentiments etc. It also studies the impact of organizational culture
on the behavior of employees. It deals with individual culture,
organizational culture.

Besides these three are some other disciplines such as social psychology,
law, economics, practical science, engineering etc.

Foundation/Assumptions of OB
1. Individual differences: Each individual differs with each other in
different ways like intelligence, physique, personality, thinking behavior
etc and organization has to follow different styles to deal with them and
to get the work done. OB begins with individual and studying their
distinct behavior.

2. A Whole Person: OB is based the concept that when a person is

appointed only his/her skill is not hired but their social background,
bikes, dislikes, pride etc, are also hired. Managers should try to develop a
work place a home away from none and should focus to provide a better
person in terms of growth and development.
 3. Caused Behavior: OB lays on the concept that behavior of individuals
towards any other person, thing or a situation is caused due to some
reason behind it. Behavior of the employee depends on thinking of his/
her towards the situation as right or wrong.

4. Human dignity: This concept is based on ethical philosophy- at

treating human beings differently from other factors of production with
complete respect in humanity & dignity not as the economic tool.

5. Organizations are social systems: OB treats organizations as the

social system having both psychological & social needs & roles like
individuals. Two types of social system exist in organizations formal and
informal social system and organization environment is dynamic in
nature with all the parts of system being interdependent & influenced
with each other.

Challenges and opportunities for organizational behavior

 Responding to globalization
 Managing work force diversity
 Responding to the labor shortage
 Improving customer service
 Improving people skills
 Empowering people
 Stimulating innovation and change
 Helping employees balance work/ life conflicts
 Improving ethical behavior

OB MODELS AND APPROACHES

Internal vs. External Determinants of Behavior

Environment plays a major role in shaping behavior and genetic endowment and
personality development is influenced by our historical heritage.

ii) Personality vs the Environment:

Both personality and situational variables must be taken into account in order to
explain an individual's behavior but a focus on the environment is as important or
perhaps slightly more important than focusing on personality traits.

Cognition vs the Environment

To understand one's behavior all we have to know is the individual's past

responses to similar (stimulus) situations and the rewards or punishments that
followed that response.

There are two models which come out of these approaches:

Behavioristic Model: In this model the behavior is dependent on two factors i.e.,
stimulus and response. Learning occurs with this kind of model. Pavlov and
Watson with their research felt that behavior can be best understood by stimulus
and response. Behaviorist model is represented as: S - R (Stimulus-Response)

Cognitive Model: S-OR-R. This model emphasizes the positive and free-will
factors of human beings and uses concepts such as expectancy, demand and
incentive. Tolman with his experiments found that the basis of learning as of
`expectancy' which is understood as one particular event leading to a particular
consequence i.e., goal. Human behavior is based on these goals. The cognitive
model is represented as: S - O - R (Stimulus-Organism-Response model) Both
approaches see learning and the environment as having a major impact on
behavior. From these different approaches it can be said that: Behavior is caused
by instincts, genetic background and personality traits that are formed at an early
age. Change is very difficult for the individual and that one's capacity is severely
limited. Behavior is mostly learned through our interactions with the environment.
Present events rather than past events are important. Even though there are some
limitations on. one's capacities, one is capable of great amounts of change.

TYPES OF MODELS OF ORGANIZATIONAL BEHAVIOR

The models of organizational behavior are developed considering input, process

and output. Input contains various independent variables. Processes involve
interaction with other individuals, groups formally or informally and take into
consideration organization resources, managerial roles, leadership styles,
motivational factors, level of conflicts, stress factors, channels of command and
control, organizational development measures undertaken by the organization,
prevailing organizational culture and hosts of other factors. These factors then
culminate into output in the form of dependent variables discussed earlier. The
models of organizational behavior have been developed through the historical
development of management thoughts discussed in chapter two of the book. In
India, organizational behavior models differ from organization to organization.
Every organization adopts one or more models of behavior. The different types or
organizational behavior models are discussed in succeeding paragraphs.

 Feudal Model: Feudal Model treats employees inferior. The concept is

based upon Theory X where actions, policies and procedures are considered
superior to human beings. In feudal model employees are treated sternly and
hire and fire principle is applicable in the organization. A fear psychosis is
created among the employees. These models have been practiced world over
by various organizations where people have been laid off for cost cutting.
Employee desires, value, emotions are not considered pragmatically by the
organizers. People are treated as another resource for all purposes.

 Autocratic Model: Autocratic model is based on the concept that managers

are superior. They have power to hire and fire any employees. Managers
words are considered final. Autocratic model believes in power and
authority of the manager. Employee have to obey the orders of the boss.
Autocratic model proposes that minimum employee needs are met. It
believes that higher salaries given to employees is sheer waste of resources
as they spend money for unproductive needs. Individuals are controlled by
the managers based on official authority and power attached to it.
Employees are driven to work as this model assumes that nobody wants to
work unless he is forced to do so. Managers are considered neutral born
leaders who are obeyed and respected in all areas. The autocratic model is
very commonly used in Indian organizations like, railways, defense
organization, police organization, banks etc. Autocratic model has however
proved to be partly in-effective because of introduction of human rights
commission. This has reduced the scope to abiding by rules regulations and
written instructions of an organization.

 Custodial Model: Custodial model imply that owners are custodian of

resources in the organization and they are bound to look after the welfare of
employees. It considers that assets of organization belong to industrialist,
managers and employees in equal measures and that nobody has monopoly
rights. Employees are given opportunities to bring their problems to the
notice of the employer and it is the duty of the latter to solve the same.
 Redressal of grievance procedure exists in the organization. Employees
depend on the organization for security and their welfare. The organizations
provide wages and salary while employees are in service. They also provide
pensionary benefits to the employees so that they can sustain their post
retirement life comfortably. While in service employees get fair wages rather
than subsistence wages. They depend on the organization rather than the
boss. Employees devote themselves for the organizational development
because they feel that the organization look after the employee welfare not
only during service but also post service periods. Employees are interested
in economic rewards and benefits. The model proposes passive involvement
of employees and money as the only motivating factor. Direct cooperation of
employees is not sought. Employee value, preferences, attitude, emotions
and psychological motivational factors are not considered for organizational
effectiveness. The model however is useful for organizational growth.

 Supportive Model: Employees are considered active workers who have

their value, attitude, desire, and preferences. Leaders use attitude and value
system of employees to motivate them. Supportive model believes that
employees are active and with ideal environment and support, they can use
their energies and skill for higher productivity of the organization. If
employees are given opportunities, they can increase their capacity to do a
particular work. Owner has to provide and support various activities for
individual, group and organizations. The employees should develop sense of
belonging and feeling of participation in over all organizational growth. The
model does not support the custodial model concept where money is
considered as motivating factor. Employees get opportunities for
recognition. They develop positive outlook towards work culture. Managers
and workers participate together in the development of organization while
achieving development of their own skills. Many organizations have
developed as a result of adopting the supportive model. The model helps in
the development of individuals, groups and organizations. It is more
effective in developed countries. It has not been proved very effective in
developing nations because of restrictive social and cultural environment.
Supportive model is used in many organizations with modifications. many
organizations with modifications.

 Collegial Model: Collegial model refers to body of persons having common

objective. The basis of the model is the partnership of the employees with
owners. The emphasis is on team management between workers and owners.
Employees are given responsible and trustworthy jobs. They are self-
 disciplined and self-motivated. Managers and workers have similar
activities, work environment and understanding. Managerial cadre is not
considered superior to the employees. They contribute jointly rather than
bosses or leaders. They have to develop as a team with employees and
impress upon quality and performance. Combined efforts contribute to the
growth and performance of the organization.

 Human Value Model: The natural process of behavior is Stimulus,

Organism, Behavior and Consequence. It is generally known as SOBC.
Every organization should provide enough incentives in the form of intrinsic
and extrinsic stimuli. Intrinsic stimulus is achieved by encouraging
individuals by recognition, empowerment, delegation of authority, better
inter-personal relations and cognitive behavior in general. Extrinsic stimuli
refer to economic incentives in the form of reward for the job done. It is
monetary in nature and are exercised for influencing organism of employees.
The aim of these incentives is to stimuli the employees in the desired
direction so that productivity and growth is achieved. Organizations should
identify best social, cultural, physical and technological stimuli so that
positive consequences in the form of behavior is achieved. It must be
understood that people work in the organization for achieving psychological
satisfaction. They want to belong to a social group so that they are mentally
at peace and that would lead to desired behavior in the organization.
Environment of the organization therefore must be conducive to work and
quality of work life should be very rich.
 Contingency Model: Contingency model of organizational behavior refers
to complex variables that influence individual, group and organizational
structures. Contingency model is designed to meet the contingent situations
like management of conflict, handling of stress, achieving growth and
managing the complexities caused due to changes in organization structures.
In the contingency model relations between manager and employees are
based on co-operation, trust and desire of well-being. Promotion to
employees is assured. No distinction is made between specialist and non-
specialist. It is also known as the hybrid model where long term employment
is assured to the employees.

Approach to study OB

1. Human Resources Approach: This approach recognize fact that human

resources is the central and most important resources of any organization and
should be developed towards high competency, creativity so that they can
contribute to the success of the organization. This approach is also called
supportive approach.

2. Contingency Approach: This approach assumes that there is no best way

available in any organizational situations and each situation is contingent or
influenced by many other variables. Appropriate managerial action on any
situation depends on various elements related to that situation.

3. Systems Approach: Systems approach vie all its parts or activities as

interrelated.

4. Productivity approach: Productivity is the ratio output input shows the

efficiency and effectiveness of organization. It is expressed in terms of economic
inputs and outputs but human and social inputs and outputs are also important OB
decision involve human, social and economic issues and so productivity is the
significant part of literature of OB.

5. Internationalism: Internationalism studies that how people select interpret

behavior in various situations to determine individuals' behavior.

Assumptions about Individual Behavior

Law of individual differences-Each person is substantially different from all

others in terms of their personalities, needs, demographic factors and past
experiences and/or because they are placed in different physical settings, time
periods or social surroundings. This diversity needs to be recognized and viewed as
a valuable asset to organizations.

Perception- Perception is the unique way in which each person sees, organizes and
interprets things based on their background of individual differences. Each person
reacts not to an objective world, but to a world judged in terms of his/her own
beliefs, values and expectations. Sometimes it may lead to selective perception in
which people tend to pay attention to only those things that are consistent with or
reinforce their own expectations. Selective perceptions may lead to
misinterpretation of single events at work or create a barrier in the search for new
experience. Managers need to recognize the perceptual differences among the
employees and manage them accordingly.

A whole person- People function as total human beings. People are physical,
mental, social and spiritual beings and the organization actually employs the whole
person rather than certain characteristics. There are spillover effects between the
work life and life outside work and management’s focus should be in developing
not only a better employee but also a better person in terms of growth and
fulfillment. If the whole person can be developed, then benefits will extend beyond
the firm into the larger society in which each employee lives.

Motivated behavior- Individual’s behavior is guided by their needs and the

consequences that results from their acts. In case of needs, people are motivated
not by what others think they ought to have but by what they themselves want.
Motivation of employees is essential to the operation of organizations and the
biggest challenge faced by managers.

Desires for Involvement-Many employees actively seek: Opportunities at work

to become involved in relevant decisions, thereby contributing their talents and
ideas to the organization’s success. Consequently, organizations need to provide
opportunities to the employees for meaningful involvement.

Value of the Person- People want to be treated with care, dignity and respect and
increasingly they are demanding such treatment from their employers. They want
to be valued for their skills and abilities and to be provided with opportunities to
develop themselves.

HAWTHRONE STUDIES

Hawthrone studies were conducted during the human relations movement. Elton
Mayo who is also called as the "father of human relations school" conducted this
study at western electric Hawthrone plant (1927-1932) to evaluate the attitudes and
psychological reactions of workers in on-the lab situations. Earlier from 1924 to
1927 national research council along with western electric co. conducted the study
to determine the impact of lighting (illumination) & improvement in the working
conditions on the productivity of workers but they didn't found any consistent
relationship and output tended to increase inspite of variation in illumination or
working conditions. So they conducted the research to find out the real factors
other than working conditions which were influencing output.

Stages of Experiment

a. Test Room study- This study was done on two group of female workers to
determine effect of changes in working conditions an employee’s efficiency and
they found that despite of deterioration in working conditions there was increase in
the output due to favorable change in workers attitude caused by changes in pattern
of supervision, social conditions of workers and so on. By making they feel
important and by providing their participations workers attitude was changed.

b. Relay Assembly room study- six female employee assembling telephone relay
were brought into test room separate from the plant. That group was very informal
& friendly with each other. The main object was to study the effect of rest &
recreation on output on observer was there to record the observation. They found
that rest period, walking houses, incentives payments and temperature didn't have a
very significant co-relation with productivity. It was the feelings of importance due
to participation, tension-free inter relations, informal atmosphere and group
cohesion were the causes of increased productivity and importance of human
relationship in industry was recognized.

c. Bank wiring observation room study- It was conducted between 1931 and
1932. Study was done on 14 male workers employed in bank wiring room to judge
the influence of informal group on human behavior as influence of social
environment on individual attitudes. A incentives wage plan was used as the
hypothesis that workers would produce more individuality and help others to take
benefit of bonus but it was found that group laid down and norm of day's work' of
producing 6600 unit per person per day and group pressure was applied to ensure
that members of the group did not produce more than group standards.

d. Mass interviewing programme- Under this programme about 20000

interviews were conducted to find opinions or attitude of employees towards the
job, the company working conditions etc. it was found that experiences,
perceptions, interactions and interpersonal relations were found to be the basic
factor responsible for behavior at work place.

Contribution of Hawthrone studies

1. Organizational is a social system.

2. Social environment on the job affects the people

3. In formal organization an informal organization also exists and is affected by

and affects the formal organization.

4. A conflict between organizational & individual goals often exist which increases
the integration between two.
 5. Man is interdependent and his behavior can be predicted in terms of social &
psychological factors.

6. Man is diversely motivated and fulfills different types of needs.

7. Man often behaves irrationally

8. Communication is necessary for the functioning of the organization and the

feeling/ Sentiments of people who work in it.

9. Team work is essential factor and sound organization functioning.

Personality

What does personality mean?

People use different terms like good, popular, strong, honest, weak, polite,ect., to
denote personality. Behavioral scientists and common people define personality
from different perspective.
The world personality can be traced to the Latin words ‘per sona’ which are
translated as “to speak through.” According to Gordon Allport, personality is “the
dynamic organization within the individual of those psychological systems that
determine his unique adjustments to his environment.”
Fred Luthans defines the term personality as, “how people affect others and how
they understand and view themselves, as well as their pattern of inner and outer
measurable traits and the person- situation intervention.” Robbins defines
personality as, “the sum total of ways in which an individual reacts to and interacts
with others.”

Characteristics –
The following elements should form the meaning of personality.

1. Personality has both internal and external elements. The external traits are the
observable behaviors that we notice in an individual. Personality internal states
represent the thoughts values & genetic characteristic that we infer from the
observable behaviors.
2. An individual’s personality is relatively stable. If it changes at all, it is only after
a very long time or as the result of dramatic events.
3. An individual’s personality is both inherited as well as shaped by the
environment our personality is partly inherited generically from our parents.
However these genetic personality characteristics one altered somewhat by life
experiences.
4. Each individual is unique in Behavior. There are striking differences among
individual. Thus personality refers to the sum total of internal & external traits of
the individual which are relatively stable & which make the individual different
from others.

Personality factors/ determinants of Personality

1. Biological factors
• Heredity
• Brain
• Physical features

2. Family & social factors

3. Situational factors
• Culture
• Religion
5. Other factors
• Temperament
• Interest
• Character
• Schema
• Motives
1. Biological Factors

a. Heredity: It has a great influence on biological and mental features. It means the
transmission of the qualities from ancestor to descendant through a mechanism
lying primarily in the chromosomes of germ cells. Physical stature facial
attractiveness, sex, temperament, muscle composition, reflexes are inherited from
one’s parent.

b. Brain: There is a general feeling that brain plays an important role in

development of one’s personality persons with a broader forehead, big right
hemisphere i.e., left-handed has a learning towards truth, welfare beauty, justice,
kindness artistic, emotional musician poet etc, similarly persons having broader
left hemisphere i.e. right handed with sharp nose, big ears are logical, analytical,
strong & have criminal

c. Physical features: An individual’s external appearance may have a tremendous

effect on his personality. Some people give relatively higher weightage to the
physical features of an individual while defining his personality. Such factors
include height, weight, color, facial features. Eg: - Good physical appearance is an
asset for the job of a sales person & public relations.

2. Family & Social factors:

The family has considerable influence on personality development,

particularly in early stages children learn from their parents, siblings etc
 . • The mother is the first teacher in initiating personality development.
Father motivates & modifies behavior. Eg:- Mother - dressing, cooking,
sense, father - driving

• Family and social factors shape a person’s personality through the process
of socialization and identification. Socialization is a process by which an
infant acquires, from the enormously wide range of behavioral potentialities
that are open him at birth, those behavior patterns that are customary &
acceptable to family & social group.

• The identification process occurs when a person tries to identify himself

with some person whom he feels ideal in family, generally a child in the
family tries to behave like his father or mother. Eg:- of impact of socio
economic factors on personality child nurtured under a warm, loving
stimulating environment are positive & active as compared to children
neglected by their parents are.

3. Situational factors:
An individual’s Personality may change in different situations. The demand
of different situation may call for different aspects of one’s personality
therefore we should not look at the personality factor in isolation.

a. Culture: The accepted norms of social behavior are referred as cultural.

The way in which people behave with others & the driving force of such
functions are considered important components of culture children brought
up in traditional norms, attitudes & values on the other hand. Modern
cultural outlook of family & society has inspired children to become
independent, free thinking of self developing. (ex of joint & nuclear family)

b. Religion: Religion plays a significant role in shaping one’s personality

from those of Muslims & Christians. The children in Hindu Societies learn
from the very childhood learn about the value of Karma (hard work) and
God-feasting attitudes. The Protestants are taught about work ethics, family
system, friendship & cooperation The Sikh are hard working, dogmatic
aggressive. The Muslims are ready to undertake any job & vocation &
acquire personalities.

4. Other factors
 a. Temperament: Temperament and other non-intellectual personality traits
are distributive according to normally distribution. Temperament is the
degree to which one responds emotionally.

b. Interest: The individual normally has many interests in various areas.

The top executives in any organization do not have interest in common task
and people. The organization should provide opportunities like job rotation
& job enrichment & special training programmer to satisfy the Interest of
executives.

c. Character: Character primarily means honesty & integrity. It is

resistance to stealing and cheating others. Character integrity & morals of
high standards is a very important requirement for responsible jobs. It is
likely that an individual may not steal under normal circumstances for ex: If
the family of an individual is starving, there is a great probability that one
will steal.

d. Schema: It is an individual’s belief, frame of reference, perception and

attitude which the individual possesses towards the management, the job,
working conditions pay, fringe benefits, incentive system etc. The
perception of individual depends upon his socio-economic conditions &
particular culture he lives to follow. The Behavior of an individual depends
to a great extent upon his form of reference which he develops from
childhood experience.

e. Motives: Motive is inner drives of individual. They represent goal

directed behavior of individual. A motive is a cognitive factor which
operates in determining one’s behavior towards a goal.

Theories of Personality
Trait Theory
Trait theory presents an approach to understand personality. Many traits are
common to most people. However, there are many other traits that are unique to a
person. It may be remembered that traits are reactions and not what a person
possesses. A person does not possess emotion but
he acts emotionally in some circumstances. One the basis of the traits, people may
be described as emotional, aggressive, loyal, creative, flexible, humorous,
sentimental, and impulsive and so on. Traits are the basic elements of personality
and can be used to summarize the behavior of
a person.
 Trait is a relatively enduring cross – situationally consistent personality
characteristic that is inferred from a person’s behavior. It is a predisposition to
understand or to respond in an equivalent manner to various kinds of stimuli.

Personality traits are the reactions, of persons in different situational interaction.

Under trait theory personality of individuals are determined & classified on the
basis of certain set of features such as intelligence, emotional stability,
aggressiveness, creativeness or any other dimensions.

There are two ways of assessing personality traits:-

(1) The person describes himself by answering questions about this attitude,
feelings and behaviors. (Personal Inventory)

(2) Someone else evaluates the person’s traits either from what he knows about
the individual or from direct observation of behavior. (Rating scale Method) Under
personal inventory a questionnaire is been answered by an individual containing
questions which can be rated to determine single dimension of personality or
several personality traits (introvert & extrovert).

Psychoanalytical Theory

The psychoanalytical theory of personality is based on the Freudian concept of

unconscious nature of personality. On the basis of his clinical experience, Freud
noted that his patient’s behavior could not always be consciously explained. This
prompted him to believe that the personality structure is primarily founded on
unconscious framework and that human behavior and motivation are the outcomes
of such conflicting psychoanalytic concepts as the id, the ego and the super ego.
Id is the foundation of the unconscious and is the basis of libido drives. It strives
for sexual and other biological pleasures and has animal instincts of aggression,
power and domination. Ego is conscious in nature and is a mechanism to relate our
conscious urges to the outside real world. It keeps the id in check through the
realities of the external environment.
While id demands immediate pleasure, regardless of costs, ego controls it so that
these pleasures are granted at an appropriate time and in an acceptable manner.
Because of difficulty in keeping the id under control, ego is supported by super
ego. The super ego is the higher level restraining
force and can be described as the conscience of the person. The conscience creates
standards of what is right and what is wrong and is generally subconsciously
developed by the absorption of cultural and ethical values of the social
environment. All these three Freudian elements are interrelated and each cannot
exist in isolation from others. In order to create a “normal” personality, there must
be a balance in the relationship among these three forces.

Big Five Model of Personality

Personality is composed of external traits & no two individual possess identical

characteristics. There are thousands of words representing personality
characteristics which were reduced to five abstract personality dimensions of
personality defined in Big five model

1. Extroversion: Person who score positive on this dimension have a comfort level
of relationship & relatedness with others. They are sociable, talkative, assertive,
open to establish new relationship with and who scores negative on this dimension
are introverts and are less sociable, talkative and lack of establishing good
relationship & relatedness with others.

2. Agreeableness: - Agreeableness shows person’s ability to get agreed with others.

Person who scores positive in this dimension are co-operative, trusting and value
harmony and agree on thoughts of others more than on their own saying &
thoughts. Person who score low on agreeableness lacks of cooperation trust &
harmony with others & only focus on their needs and thoughts.

3. Conscientiousness: - Conscientiousness refers to number of goals that a person

focuses on. A highly conscientiousness person focuses on relatively few goals at
one time. They are more organized, systematic, careful, thorough, responsible,
self-disciplined and achievement oriented. A person scoring negative on this
dimension focus on higher no. of goals are disorganized, less systematic, careless,
irresponsible less thorough & self-disciplined.

4. Emotional Stability: - This dimension focus on individual’s ability to cope with

stress. Highly emotional stability in individual makes them calm, enthusiastic &
secured. Person with low emotional stability are nervous, depressed & unsecured.

5. Openness to experience: - This dimension shows one’s range of interest.

Positively scoring people are open to new thoughts, ideas, beliefs and are
fascinated by novelty, innovation & creativity. They have positive attitude towards
new ideas & information. On the other hand people with low level of openness are
less receptive to new ideas and less willing to change their minds towards new
thoughts, ideas, beliefs & suggestions.

Other Personality Traits

(1) Authoritarianism:- Authoritarian personality individuals has a strong belief on

established mechanism of formal authority, obedience to authority, follow
traditional value systems, intellectually rigid, rigid in their positions, place high
moral value on their beliefs, prefer stable & structural work environment governed
by clean rules & regulations. They prefer autocratic & directive leadership.

(2) Locus of Control: - Locus of control refers to belief of individual regarding

occurrence of events or situations either with one’s own control (internal locus of
control) or by external forces beyond one’s control (external locus of control).
Externals are less satisfied with their jobs, have higher absenteeism rate and are
more alienated from work settings. Internals have more control on their behavior &
are good decision maker.

(3) Machiavellianism: - Machiavellianism is individuals’ habit to manipulate

people. They highly participate in organizational politics, can handle matters
related to negotiation & bargaining effectively.

(4) Achievement Orientation: - It is the trait in individuals to achieve anything in

their life. People with high need to achieve continuous by focus on doing things in
better way than others. They prefer doing something different or moderately
difficulty tasks in comparison to others. They like challenges. They belief that
success or failure is the result of their own actions.

(5) Self-Esteem:- Self-Esteem is the feeling of like or dislike of oneself. People

with high self -Esteem belief that they have abilities to do challenging jobs and
choose unconventional jobs. They are more confident on themselves for getting
success. People with low self-esteem are dependent on others for receiving positive
evaluations & approval from others. They follow the beliefs & behaviors of those
they respect.

(6) Risk-Taking: - This defines the managers ability to take risk high risk-taking
managers take rapid decisions and used less information in making their choice.
These people are more suitable in stock market or trading firm. vice-versa is with
the people who are less risk taking.
(7) Self-Monitoring: - It refers to the individual’s ability to adjust their behavior
according to external factors. It shows the adoptability of the individuals in
external situations. These individuals have the capability of behaving contradictory
in their public, personal life. Low self-monitors face difficulty deviating their
behavior in different situations.

8)Type A & B Personality :Type A personality are person who are competitive
hostile, always prefer doing some work, cannot cope with leisure, think or do two
or more things at one time. They are always in hurry to do things. Type B
personality people are relaxed, easy This people going, feel no need to display or
discuss their achievements until or unless demanded by situation can relax without
guilt.

Perception

Perception is the selection and organization of environmental stimuli to provide

meaningful experience for the perceiver. Perception refers to factors that shape and
produce what we actually experience. It is described as a person’s views of reality
and is affected by, among other things, the individual’s values. For example, if a
person is member of a union, he/she may discard most of what management says
about declining sales, decreased profit margin, etc. Most of such talk is regarded
by unions as attempts by management to exploit the workers for its own gain.
Perception can be defined as a process by which individuals organize and interpret
their sensory impressions in order to give meaning to their environment. Thus,
perception refers to giving colour to sensory inputs.

What is perception?

According to Stephen P Robbins, Perception is a process by which individuals

organize and interpret their sensory impressions in order to give meaning to their
environment. The term originated from a Latin word ‘percepio’ meaning receiving,
collecting, action of taking possession, apprehension with the mind or senses.
Fred Luthans has defined Perception as a complicated interactions of selection,
organization and interpretation of stimuli. According to Luthans, the perceptual
process comprises of External environment—Confrontation—Registration—
Interpretation—Feedback—Behavior—Consequence.

Perceptual Process

The perceptual process is a complex process. The four variables of perceptual

process are discussed as under:

(i) Inputs. Perceived inputs are the objects, events people, etc. that are
received by the perceiver.
(ii) Process. The received inputs are processed through the selection,
organization and interpretation.
(iii) Outputs. Through the processing mechanism, the outputs are derived.
These outputs may be feelings, actions, attitudes, etc.
(iv) Behavior. Behavior is dependent on the perceived outputs. The
perceiver’s behavior, in turn, generates responses from the perceived and
these responses given rise to a new set of inputs.

Perceptual Selectivity

Perceptual selection is the process by which people filter out irrelevant or less
significant information so that they can deal with the most important matters.

Perceptual Selection is determined by


External Factors

Internal Factors

External Factors affecting perceptual selection:

Size: The larger the size, the more likely it is to be perceived. The tallest person in
the office will invariably be noticed.

Intensity: The more intense an external factor (bright light, loud noise, high pitch
sound etc.) the more likely it is to be perceived. One may notice that the TV
commercials always have high pitch as compared to normal telecast.
Contrast: External factors that stand out against the background or things that are
not which people expect are more likely to be perceived.

Motion: A moving factor is more likely to be perceived than stationary factor.

Films (motion pictures) attract people more than a static picture.

Repetition: A repeated factor is more likely to be noticed. Marketing managers use

this principle in trying to get attention of the prospective customers.

Novelty and familiarity: Either novelty or familiarity will can attract attention.
People would quickly notice a person riding an elephant on a busy street in Delhi.
On the other hand, one is likely to spot a familiar face in a crowd or a familiar
voice even if there is a lot of noise and confusion.

A combination of these or similar factor may be operating at any time to affect

perception. Along with the internal factors, they determine whether any particular
stimulus is more or less likely to be noticed.

Internal factors affecting perceptual selection:

Personality: Personality has an interesting influence on what and how people

perceive. For example, conscientious people tend to pay more attention to external
environmental cues than does a less conscientious person. Less conscientious
persons are impulsive, careless, and irresponsible. They see their environment as
hectic and unstable which affects the way they make perceptual selections. On the
other hand, more conscientious people organize their perceptions into neat
categories, allowing themselves to retrieve data quickly and in an organized
manner. In other words, they are careful, methodical, and disciplined in making
perceptual selections.

Learning: Learning determines the development of perceptual sets. A perceptual

set is an expectation of a particular interpretation based on past experiences with
the same or an identical object. In organizational settings, past experiences of the
managers and employees influence their perceptions to a great extent.

Motivation: A person’s most urgent needs and desires at any particular time can
influence perception. People perceive things that promise to help satisfy their
needs and that they have found rewarding in the past. Also, according to Pollyanna
principle, people process pleasant event more efficiently and accurately than they
do unpleasant events. For example, an employee who receives both positive and
negative feedback during the appraisal meeting may more easily and clearly
remember the positive statements than the negative ones.

Perceptual Organization

Figure-ground: Perceived objects stand out as separable from their general

background. In the context of organizations, a company may import a new
technology in order to compete in the globalized economy. Here import of a new
technology is a figure and global competitive environment is the background. The
employees will immediately notice the installation of new technology whereas the
global competitive environment is not visible by naked eyes.

Perceptual grouping: There is a general tendency among individuals to group

several stimuli together into a recognizable pattern. There are certain underlying
uniformities in grouping. When simple constellations of stimuli are presented to
people, they tend to group them together by closure, continuity, proximity, and
similarity.

Closure: An individual may perceive a whole while one actually does not exists.
The person’s perceptual process closes the gaps that are unfilled by from sensory
inputs. In a formal organization, employees may either see a ‘whole’ that does not
exist or not be able to put the pieces together into a ‘whole’ that does exist. For
example, head of a project team may take the view that the entire team agrees to
his plan of action whereas there are differing views among the team members,
which remains unarticulated in a formal manner. On the other hand, a functional
team might view/perceive that their objectives are the objectives of the whole
company.

Continuity: An individual tend to perceive continuous lines/patterns. This leads to

inflexible thinking on the part of organizational members (both managers and
employees). Thus, only the obvious, continuous patterns or relationships are
perceived. For example, a new design for some production process or product may
be limited to obvious flows or continuous lines/patterns. New innovative ideas or
designs may not be perceived.

Proximity: A group of stimuli that are close together will be perceived as a whole
pattern of parts belonging together. For example, several employees in an
organization may be identified as a single group because of physical proximity.
Several workers who work on a particular process may be viewed as a single
whole. If the output is low and the supervisor reports a number of grievances from
the group, the management may perceive that all the workers working on that
particular process are trouble makers whereas in some of them might be loyal and
dedicated employees.

Similarity: The greater the similarity of stimuli, the greater is the tendency to
perceive them as a common group. Similarity is conceptually related to proximity
but in most cases stronger than proximity. In an organization, all employees who
wear blue collars may be perceived as a common group, when in reality, each
employee is a unique individual. This might also lead to perceptual error termed as
stereotyping.

Perceptual Constancy: There are two issues. While objective reality of stimuli
remains unchanged, people’s subjective reality also remains constant. That is, the
individual is likely to give meaning to stimuli in the same way whenever exposed
to them unless and until objective reality has been revealed more broadly by way
of undoing the perceptual errors. For example, a manager in the company who
believes that female employees are poor performers would continue to have the
same perception until and unless the latter prove that they are better than their male
colleagues.

Perceptual Context: It gives meaning and value to simple stimuli in the

environment. The organizational culture and structure provide the primary context
in which workers and managers perceive things. Thus, a verbal order, an e-mail
message, a new policy, a suggestion, a raised eyebrow, a pat on the back takes on
special meaning and value when placed in the context of work organization.

Perceptual Errors:
Similarity error: People are predisposed towards those having similar traits,
socio-economic-cultural background.

Contrast error: People tend to compare among the available resources and thus
arrive at a conclusion that might be far from the objective reality.

Race/gender/age bias: People’s perception may be tempered by their prejudices

vis-à-vis race, gender, and age.

First impression error: People may hold a long-term view about a person or thing
based on first impression.

Perceptual defense: People tend to defend the way they perceive things. Once
established, a person’s way of viewing the world may become highly resistant to
change. Sometimes, perceptual defense may have negative consequences. This
perceptual error can result in manager’s inability to perceive the need to be creative
in solving problems. As a result, the individual simply proceeds as in the past even
in the face of evidence that business as usual is not accomplishing anything
worthwhile.

Stereotyping: It is the belief that all members of a specific groups share similar
traits and behavior. Most often, a person is put into a stereotype because the
perceiver knows only the overall category to which the person belongs. However,
because each individual is unique, the real traits of the person are generally quite
different from those that stereotype would suggest.

Halo effect: Under halo effect, a person is perceived on the basis of a single trait.
It generally occurs during performance appraisal where the supervisor rates an
employee on the basis of only one trait e.g. intelligence, punctuality,
cooperativeness appearance etc.
Projection: It is the tendency of seeing one’s own traits in others. Thus,
individuals project their own feelings, personality characteristics attitudes, or
motives onto others. Projection may be especially strong for undesirable traits that
the perceivers possess but fail to recognize in themselves. People whose
personality traits include stinginess, obstinacy, and disorderliness tend to rate
others higher on these traits than do people who do not have these traits.

Attribution: When people given cause and effect explanation to their behavior, it
is known as attribution.

Impression: People often form impression of others on the first sight. Even before
knowing any of their personality traits they start having impression and assessing.
This sometimes leads to perceptual distortion. We shall discuss this aspect later in
detail.

Inference: There is a general tendency on the part of people of judges other on

limited information. For example, an employee might be sitting at his desk
throughout the working hours without doing anything an employee might be sitting
at his desk throughout the working hours without doing anything but it may be
inferred that he is hardworking.

VARIOUS FACTORS INFLUENCING PERCEPTION

Stimuli play a significant role in the perceptual procession as various factors

relating to the perceptual process have been studies by various experts. The factors
influencing perceptions are perceiver characteristics, objects and situation.
However, they can be categorized under specific heads such as perceive
characteristic, internal and external factors, stimuli factors etc.

(A)Perceive Characteristics: Perception depends upon how an individual

views the objects and situations. Some employees may perceive the work
place as incorporating favorable working conditions, while others may
perceive it as a place of good pay. The perception is not always actual or
accurate, however it is the viewing of the reality which differs from person
to person according to their respective characteristics. The perception of the
object are influenced not only by individual characteristics but also by the
characteristics of the employees, the manager’s personality and employees
 views on the basis of perception of the work place. The characteristics of
employees such as attitude, motives, interests, habits, experience, values,
expectations, learning and personality, have a bearing or great influence on
formation of perception.

(B)Influence of Internal External Factors

There are number of external and internal factors which influences the
perception and these are discussed below:
I. Internal Factors. The internal factors like needs and desires of individuals,
individual personality influencing perception include and the experience of
people.
(a) Needs and desires. Depending on the needs and desires of an
individual, the perception varies.
(b) Personality. Individual personality has a profound influence on
perceived behavior as for example.
1. Secure individuals tend to perceive others as warm, not cold.
2. Individuals do not expose by expressing extreme judgments of others.
3. Persons who accept themselves and have faith in their individuality
perceive things favorably.
4. Self-accepting individuals perceive themselves as liked, wanted and
accepted by others.
The age, sex, race, dress. If the perceiver is female and the stimulator is
made, the perceiver gets some influence only if she prefers male. Otherwise,
the perception will be distorted. The ethnic personalities have some
influence on perception.

(c) Experience. Experience and knowledge has great influence on

perception. Successful experience enhances and boosts the perceptive ability
and lead to accuracy in perception of a person whereas failure erodes self-
confidence. A young employee takes time to understand the object and
situation. Experienced employees generally understand objects quickly and
correctly. But, in contradictory situations, it is difficult to correct aged
employees, whereas the young employees are easily molded towards
achieving the objectives of the organization.

II. External Factors. The external factors, which influence the perception
are; size, intensity, frequency, status, etc.
 (a) Size. The bigger the size of the perceived stimulus, the higher is the
probability that it is perceived. Size attracts the attention of an individual. It
establishes dominance and enhances perceptual selection. The maintenance
staff may pay more attention to a big machine then to a small one, even
though smaller one costs as much and in as important to be operation. In
advertising, full page spread attracts more attention than a few lines in the
classified sections.

(b) Intensity. Researches on human behavior have revealed that the more
intense the stimuli the higher attention and recognition in the perceptual
process. A strong voiced Manager has more impact on supervisors and
employees. It observed that managers use voice modulation to get attention
of employees. Intensity attracts to increase the selective perception.

(c) Frequency. Repeated external stimulus is more attention attracting than

a single time. Managers send reminders regularly to reprimand the behavior
of erring employees. As advertises also repeat the advertisement to bring it
to notice of customers.

(d) Status. Perception is also influenced by the status the perceiver. High
status people can exert greater influence on perception of an employee than
low status people.

(e) Contrast. Stimuli that contrast with the surrounding environment are
more likely to be attention catching than the stimuli that blend in.

(f) Nature. By nature we mean, whether the object in visual, auditory etc. It
is commonly known that pictures attract attention more readily than words.
Further a picture with human beings attracts more attention than a picture of
inanimate objects. A rhyming auditory passage attracts attention more
readily than the same passage presented as a narrative.

(c) Stimulus Factors: It is important to discuss the various factors

associated with stimulus which influence the perception by individuals and
these are discussed below.

(i) Similarity. Other things being equal, similar things tend to be

perceived as belonging together. For instance, all students with long
hair and bearded may be perceived as revolutionaries.
 (ii) Proximity: - Other thing being equal, thing near each other tends to
be perceived as belonging together.

(iii) Continuity. Stimuli that form a complete or symmetrical figure or

good form tend to be grouped as parts of a whole.

(iv)Context. The environment or the setting f an object often

determines how a thing will be perceived. A classic example found in
most psychology books is the reversible figure is a vase or goblet. It
the background s seen as white, the figure is two black profiles. This
is also known as Figure Ground Principle. The figure ground
principle states that the relationship of a target to its background
influences perception. In other words, perceived objects stand out as
separable from their general background.

LEARNING

Learning brings relatively permanent change in human behavior that occurs as a

result of experience. All complex behavior is a learned behavior. If we want to
predict and explain behavior, we must understand how people learn. Learning
involves change in behavior. It is continuous process, which occurs all the time.
We cannot see learning but we can see changed behavior as a consequence of
learning. Learning changes attitude of individuals to a large extent. An individual
reacts to any situation or responds to instructions in particular fashion, that fashion
or style is caused due to learning. Theoretical approach to learning incorporates
behaviorist, cognitive and newly emerging social learning theories. Understanding
of these theories is important to the study of organizational behavior.

“Learning” means different things to different people and is used somewhat

differently in different theories. As theories of learning evolved over the past half-
century, definitions of learning shifted from changes that occur in the mind or
behavior of an individual to changes in participation in ongoing activities with
other individuals to changes in a person's identity within a group (e.g., a change
from being a follower to being a leader). Although, most definitions of learning
involve a change in an individual's knowledge, ability to perform a skill, or
participate in an activity with other individuals, there is considerable variation
among the theories about the nature of this change.

Learning is a powerful incentive for many employees to stick to certain

organizations. Learning has a significant impact on individual behavior as it
influences abilities, role perceptions and motivation. Along with its role in
individual behavior, learning is essential for knowledge management. Knowledge
management enhances an organization’s capacity to acquire, share and utilize
knowledge in ways that improve its survival and success.

MEANING AND DEFINITION

Learning is defined as “a relatively permanent change in behavior that occurs as a

result of prior experience.” Learning is understood as the modification of behavior
through practice, training, or experience. This is supplemented with five important
components of learning:

[Link] involves change: a change may be for good or bad. Change may not be
evident until a situation arises in which the new behavior can occur. Learning is
not always reflected in performance

[Link] all changes reflect learning: to constitute learning, change should be

relatively permanent. Temporary changes may be only reflective and fail to
represent any learning. This requirement, therefore, rules out behavioral changes
caused by fatigue or drugs.

[Link] is reflected in behavior: a change in an individual’s thought process or

attitude, not accompanied by behavior, is no learning. It should be further clarified
that learning needs to result in behavior potentiality and not necessarily in the
behavior itself. The reason for this distinction lies in the fact that an individual may
learn but owing to lack of motivation, may not exhibit any changed behavior.

[Link] change in behavior should occur as a result of experience, practice or

training: this implies that behavior caused from maturity, disease, or physical
damages does not constitute learning
 [Link] practice or experience must be reinforced in order for learning to occur: if
reinforcement does not accompany the practice or experience, the behavior will
eventually disappear.

[Link] not implied in any standard definition of learning: contrary to popular

belief, learning is not confined to one’s schooling. Learning occurs throughout
one’s life Theories of Learning

THEORIES OF LEARNING

There are four theories which explain how learning occurs. They are :-

1. Classical conditioning

2. Operant conditioning

3. Cognitive theory

4. Social learning theory

1. Classical Conditioning

Classical Conditioning – behaviorist theory

“Classical conditioning can be defined as a process in which a formerly neutral

stimulus when paired with an unconditional stimulus, becomes a conditioned
stimulus that illicit a conditioned response. (Luthans 1995)

Ivan Pavlov a psychologist who won Nobel prize introduced classical conditioning
theory. The experiment envisaged dog as a subject. Pavlov carried out this
experiment in three sequential stages. In stage one, he presented meat
(unconditional stimulus) to the dog. He noticed a great deal of salivation
(unconditional response). In stage two he only rang up the bell (neutral stimulus),
the dog had no salivation. In stage three, Pavlov was to accompany the offering of
meat to the dog along with ringing up of bell. After doing this several times,
Pavlov rang up only bell (without offering of meat to the dog). This time the dog
salivated to the ringing up of bell alone. Pavlov concluded that the dog has become
classically conditioned to salivate (response) to the sound of the bell (stimulus). It
will be seen that the learning can take place amongst animals based on stimulus –
response (SR) connections. The study was undoubtedly single most famous study
ever conducted in behavioral sciences. It was a major breakthrough and had a
lasting impact on understanding of learning.

This stimulus – response connection (S-R) can be applied in management.

Historically when a CEO visits an organization, production charts are updated,
individuals put on a good dress, window panes are cleaned and floors are washed.
What all one has to do is to just say that the Top Boss is visiting. You will find that
all above work is undertaken (response) without any instructions. Because the
people in the organization have learned the behavior (conditioned). It has caused a
permanent change in the organization (S-R connections). Robbins2 states that
classical condition is passive. Something happens and we react in a specific way. It
is elicited in a response to specific, identifiable events. As such, it can explain
simple reflective behaviors. But most behavior – particularly the complex behavior
of individual organizations is emitted rather than elicited. It is voluntary rather than
reflective.

2. Cognitive theory of learning

Edward Tolman was recognized as pioneer of Cognitive Theory. The theory

consists of relationship between environmental (cognitive) cues and expectations.
He used white rat in his psychological experiment of Cognitive theory. He found
that the rat could run through critical path with particular intention of getting food
(goal/objective). In the experiment, Tolman established certain choice points where
expectations were established. The rat learned cognitive cues at various choice
points, which would raise its expectation to move forward to the objective (food).
Thus the rat turned to acquire food, based on relationship of Cues and Reward or
expectations. This theory was later applied on human resources where incentives
were related to higher performance.

Contemporary perspective about learning is that, it is a cognitive process.

Cognitive process assumes that people are conscious, active participants in how
they learn. Cognitive theory of learning assumes that the organism learns the
meaning of various objects and event and learned responses depending on the
meaning assigned to stimuli.

3. Social learning theory

Also called observational learning, social learning theory, emphasizes the ability of
an individual to learn by observing others. The important models may include
parents, teachers, peers, motion pictures, TV artists, bosses and others. An
individual acquires new knowledge by observing what happens to his or her model.
This is popularly known as vicarious learning. A learner acquires tacit knowledge
and skills through vicarious learning. Social learning has considerable relevance in
organizational behavior. A great deal of what is learned about how to behave in
organizations can be explained as the result of the process of observational
learning. A new hire acquires job skills by observing what an experienced
employee does. Observational learning also occurs in a very informal,
unarticulated manner. For instance, people who experience the norms and
traditions of their organizations and who subsequently incorporate these into their
own behavior may be recognized as having learnt through observation. Social
learning is also valuable because it enhances the self-efficacy of the learner. Self-
efficiency refers to a person’s belief that he or she has the ability, motivation and
situational contingencies to complete a task successfully. People strong in self-
efficiency have a ‘can do’ attitude towards a specific task and, more generally,
with other challenges in life. Social learning increases self- efficiency because
people gain greater self-confidence after observing someone else do it than if they
are simply told what to do. Managers can shape employee behavior by
systematically reinforcing each successive step that moves the individual closer to
the desired response. If an employee, for example, who has been chronically a
half-hour late for work comes in only twenty minutes late, the boss can reinforce
that improvement. The influence of the model is the centre to the social learning
view point. Four Processes have been found to determine the influence of a model
on an individual.

1. Attention Process – people learn from a model only when they recognize and
pay attention to its critical features

2. Retention Process – A model’s influence will depend on how well the

individual remembers the models action after the model is no longer readily
available.

3. Motor reproduction process – after a person has seen a new behavior by

observing the model, the watching must be converted to doing. This process then
demonstrates that the individual can perform the modelled activities.
4. Reinforcement Process- Individual will be motivated to exhibit they modelled
behavior if positive incentives or rewards are provided. Behavior that is positively
reinforced will be given more attention, learned better and performed more often.

4. Operant Conditioning

Operant conditioning deals with Response—Stimulus (R-S) connection. The

concept was originated by B.F. Skinner. He felt that more complex behavior
couldn’t be explained by Classical Conditioning concept. He states that most
human behavior operates based on the environment. Operant Conditioning is
concerned primarily with learning as a consequence of behavior (R-S). In Operant
Conditioning particular response occurs as a consequence of many stimulus
situations. Stimulus typically serves as a cue for a particular response. In his
concept a “response” is first evaluated out of many stimuli, which is environmental
in nature. Behavior is a function of consequences. It is voluntary in nature.
Reinforcement increases the probability of occurrence. Behavior is learned and is
not a matter of reflects. If we create learning consequences, the probability of
specific forms of behavior increases. For example an individual will take a long
trek (Response) to library because he knows he would be able to get a desired book
(Stimulus), (R-S connections). Individual would work hard(R) because he knows
that he would be able to get praise, or even promotion (S). Operant Conditioning
has greater impact on learning as compared to Classical Conditioning.

4. Reinforcement Theory

Reinforcement theory is based on the concepts of operant conditioning developed

initially by the well-known psychologist B.F. Skinner. Reinforcement theory
argues that the behavior of people is largely determined by its consequences. In
other words, those actions that tend to have positive or pleasant consequences tend
to be repeated more often in the future, while those actions that tend to have
negative or unpleasant consequences are less likely to be repeated again. The
reinforcement theory suggests that managers should try to structure the
contingencies of
rewards and punishments on the job in such a way that the consequences of
effective job behavior are positive while the consequences of ineffective work
behavior are negative or unpleasant. The focus of this approach is upon changing
or modifying the behavior of people on the job. That is why it is also labeled as
organizational behavior modification. The basic nation underlying reinforcement
theory is concept of reinforcement itself. An event is said to be reinforcing if the
event following some behavior makes the behavior more likely to occur again in
the future. It involves the use of four strategies to systematically reinforce and are
discussed as under:

(i) Positive Reinforcement: It entails the use of rewards (or other positive
consequences) that stimulates desired behavior and strengthens the probability of
repeating such behavior in the future. Positive reinforcers can be money, praise,
promotion, recognition, etc.

(ii) Negative Reinforcement: This strategy also called “avoidance learning”. It

implies the use of unpleasant consequences to condition individuals to avoid
behaving in undesirable ways.
By making unpleasant consequences contingent on undesirable behavior,
individuals learn to systematically change patterns of behavior. In work
environments, training, safety warnings,
orientation sessions and counseling help alert employees against negative
consequences of undesirable behavior.

(iii) Extinction: There is withdrawal of all forms of reinforcement to remove

undesirable behavior. For instance, a disruptive employee who is punished by his
supervisor for his undesirable behavior may continue the disruptions because of the
attention they bring. By ignoring or isolating the disruptive employee, attention is
withheld and possibly also the motivation for fighting.

(iv) Punishment: This tool is used when an unpleasant or undesirable behavior

needs to be reduced or eliminated. For example, a worker’s wages may be
deducted if the quality of goods
produced is of substandard quality.

APPLICATION OF REINFORCEMENT TO SHAPE BEHAVIOR

Management of human resource plays a dominant role in the growth of an

organization. Various material inputs in the organization can be put to its optimum
utilization if the employees display positive attitude towards organizational
systems, processes, activities and have an appropriate interpersonal behavior. This
is possible if a manager is able to identify human requirements (needs) try and
satisfy them in an unambiguous manner. This can be achieved by applying
reinforcement to individuals in the course of their performance. If a cleaner keeps
the workshop floor neat and clean at all the times, he should be awarded so that he
continues to display the same behavior.
A soldier was publicly congratulated for smart salute by his commander showed an
overall higher standard of salutation in the entire defense unit. It has happened (at
no cost) because of the reinforcement received and soldiers showed an overall
higher standard in the performance of their duty. Application of reinforcement
model developed by Skinner could be applied with positive results in the
organization. Continuous Schedule Continuous re-inforcement re-inforces the
desired behavior of an individual in the organization. When a worker is required to
do a particular assignment and if he does it on time he should be rewarded for the
same. Because he would continue to display the same behavior every time with the
hope of reward. It has been seen that when the re-inforcement (reward) is
withdrawn the individual is unlikely to do the job on time. It is not possible for the
manager to keep a tag of each and every individual and the activities they perform
in the organization. It is therefore important to lay down the policy in this respect
so that employees achieve higher productivity by displaying desired (standard)
behavior. Partial Re-inforcement Schedule In partial re-enforcement every positive
act of individual is not re-enforced (rewarded). In this schedule individual’s
behavior is re-enforced after a long gap and his accumulated behavior is rewarded.
It has been observed that partial re-enforcement has a fair chance of individual
behaving in a positive and desired manner because he feels that sooner or later his
work would be recognised. Partial re-inforcement has a wide application in the
organizations.

Fixed Interval Schedule The re-inforcement is related to the hygiene factors or

administrative factors of the organization like salary, organizational policy,
interpersonal relationship, status and the like. In the interval schedule the critical
factor is time. As a manager, one has to apply reinforcement schedule on a fix
interval of time. Daily wagers will look forward to get their salary at the end of the
day and those on piece rate of payment would work hard to earn maximum. Fixed
interval re-inforcement is not very effective. The re-inforcement is of temporary
nature and does not motivate individuals on a long-term basis.

Variable Interval Re-enforcement In this method re-enforcement is not based on

the fix period of time. It varies from job to job. Individual’s behavior can be
modified based on incentives on a variable time period basis. Promotion,
upgradation, or incentives in salary structure coming on different timings that are
not on a pre-fixed basis motivate individuals and increment in productivity is
achieved. Variable interval re-enforcement schedule generates higher rate of
responses and is more consistent.
 Fixed Ratio Schedule Fixed ratio schedule is related to administration of reward
system after the individual accomplishes a particular volume of work. A worker is
paid or a re-inforcement is administered after manufacturing of particular pieces of
product under piece rate of payment. The individual works hard and displays a
sense of devotion to his work because of the proposed reward for which a
particular quantity has to be manufactured. The response level under fixed ratio
schedule is higher than under an Interval ratio schedule.

Variable Ratio Schedule Variable ratio is similar to fix ratio schedule except that
in variable ratio, quantity is not fixed. Re-inforcement is awarded to an individual
based on the situation to situation. For example a sales person may be awarded a
higher commission on the sales he made irrespective of volume of sales. The
incentive may also be given based on number of successful sales calls made by the
sales person.

Variable ratio schedule has been most effective to modify individual behavior or
ensure sustenance of a particular behavior. The method draws a very rapid and
positive response at a desirable level. This type of reinforcement is considered to
be very effective tool to obtain willing obedience of subordinates in a particular
situation. The impact largely would depend upon the timings and volume of work
performed by the individuals in the organization and the skill of the moderator

MOTIVATION

Motivation is an internal state or condition (sometimes described as a need,

desire, or want) that serves to activate or energize behavior and give it
direction.

It is a drive that compels one to act because human behavior is directed

toward some goal. Motivation is intrinsic (internal); it comes from within
based on personal interests, desires, and need for fulfillment. However,
extrinsic (external) factors such as rewards, praise, and promotions also
influence motivation.
Definition: Motivation is defined as “inner burning passion caused by need,
wants and desire which propels an individual to exert his physical and
mental energy to achieve desired objectives”. Efficiency of a person depends
upon performance.

Performance can be expressed as under

Performance= Ability × Motivation

Terms liked motive, motivation and motivating are commonly used in

Organizational Behavior. It is important to fully understand the meanings of
these terms so that they can be appropriately used to derive maximum
benefits.

Motive: As per Burleson and Steiner, (1964) ‘motive’ is defined as “an

inner state that energizes, activates (or moves) and directs (or channelizes)
the behavior towards certain goals.”

Difference between motive and needs. Motive is a strong need which has a
certain degree of strength that propels a person to act for its fulfillment. If
the need or motive is not fulfilled a person remains restless and when
fulfilled a person enjoys a certain degree of satisfaction. Certain amount of
tension is harbored by a person when need exists. If incentives for
accomplishing are given, the person is more enthusiastic for its
implementation. Greater the motive, greater is the tension and higher the
desire to fulfill. A high degree of satisfaction is experienced by an individual
once the desire is fulfilled. For example a clerk who knows manual typing
on typewriting machine. He is aware that if he learns computers he would be
more skilled and he would be able to achieve higher performance in his job
and would probably get higher rewards for the work. Therefore, there exists
a motive to learn computer, due to its higher benefits, the need gets
transformed into motive because of its greater strength. Till the time
individual does not learn computer the tension won’t be released. Once this
is done (due to higher motivation) the individual and organizational
objective (growth) is achieved.

Motivating: Managers must create situations wherein a person/employee is

stimulated to undertake activities, that may motivate him to achieve higher
goals. Creating a situation by alleviating restlessness of a worker. To achieve
higher goals a person should work so that the restlessness is reduced and
later removed. This is possible when worker feels to achieve something and
divert all his energies towards achievement. This process could be called
motivating subordinates. For example, a sepoy can be selected as
commissioned officer in the defense services provided, he acquires
competency as a specialist in any field may be accounts, equipment
management, weaponry and the like. If a leader has been able to ignite a
spark and create certain amount of restlessness among deserving sepoys
(combatants) to work towards one of the above specializations so that in
course of time he is commissioned as an officer in a particular branch. The
entire process could be called motivating. Leader can continuously identify
such situations in the work environment and motivate his subordinates for
self-development and organizational growth.

Motivation: Scot defined motivation as “a process of stimulating people

to action to accomplish desired goals”. Mc Farland has defined
“motivation as the way in which urges, drives, desires, aspirations,
strivings need direct, control or explain the behavior of human beings”.

It can also be refers to ―the forces either within or external to a person that
arouse enthusiasm and persistence to pursue a certain course of action.‖
People who are committed to achieving organizational objectives generally
outperform those who are not committed. Those who are intrinsically
rewarded by accomplishments in the workplace are satisfied with their jobs
and are individuals with high self-esteem. Therefore, an important part of
management is to help make work more satisfying and rewarding for
employees and to keep employee motivation consistent with organizational
objectives. With the diversity of contemporary workplaces, this is a complex
task. Many factors, including the influences of different cultures, affect what
people value and what is rewarding to them. Classification of motivational
theories:

1. Content theories :
 Maslow‘s Hierarchy of Needs
 Herzberg‘s Two Factors
 Alderfers ERG
2. Process theories
 Vroom‘s Expectancy
 Porter Lawler Model
 Equity theory
Motivation is an effective instrument in the hands of a manager for inspiring the
workforce and creating a confidence in doing things effectively. By motivating the
workforce, management creates ‘will to work’ which is necessary for the
achievement of organizational goals. Motivation
involves getting the members of the group to perform effectively, to give their
loyalty to the group and to carry out properly the purpose of the organization.

The following results may be expected if the employees are properly

motivated:

-- The employees will cooperate voluntarily with the management and will
contribute their maximum towards the goals of the enterprise.
-- They will improve the skills and knowledge so that they are able to contribute to
the growth of the organization. This will also result in increased productivity.
-- The rates of labor turnover and absenteeism among the workers will be low.
-- There will be good human relations in the organization as friction among the
workers and the management will decrease.
-- The number of complaints and grievances will come down. Accident rate will
also be low.
-- Contributes for the improvements in quality of products. Better quality of
products will increase the public image of the business.

]
The word ‘motivation’ has been derived from the word ‘motive’ which means any
idea, need or emotion that prompts a man into action. Whatever may be the
behavior of a man, there is some stimulus behind it. Stimulus is dependent upon
the motive of the person concerned. Motive
can be known by studying his needs and desires. Generally, different motives
operate at different times among different people and influence their behavior. The
management should try to understand the motives of individuals which cause
different types of behavior.

Dubin has defined motivation as “the complex of forces starting and keeping a
person at work in an organization. Motivation is something that moves the
person to action, and continues him in the course of action already initiated”.
Motivation refers to the way a person in enthused at work to intensify his desire
and willingness to use his energy for the achievement of organizational objectives.

According to Dalton McFarland, “Motivation refers to the way in which urges,

drives, aspirations, striving or needs direct, control or explain the behavior of
human beings”. Motivation has close relationship with the behavior of human
beings. It explains how and why
human behavior is caused. Thus, motivation is a term which applies to the entire
class of urges, derives, desires, needs and similar forces.

Characteristics of Motivation

(a) Motivation is a psychological phenomenon. It is the inner desire of an

individual to accomplish something more. The very deficiency forces him to
undertake certain amount of work. More is the individual motivated better the
performance and organization relations.

(b) Motivation is a continuous process. Since need is a continuous phenomenon if

one need is satisfied the other need emerges and so does individual propels to
work and thus the continuous chain is created.

(c) Motivation is caused due to anticipated perceived value from an action.

Perceived value is the probability or the expectancy.

Therefore motivation=valance (value) × expectancy.

(d) There are unsatisfied needs. A person remains disturbed till they are satisfied.
This disturbance or tension causes disequilibria in human behavior. More the
motivation level, the higher will be efforts to get over the tension and in the
process job accomplishment would take place.

(e) Individual is motivated by positive motivation. It refers to incentives offered

by the organization to achieve efficiency. Incentive can be monetary like increase
in pay, allowances, and payment of bonus. Payment for additional or overtime
work. It can be non-monetary like issuing of certificates for excellence, awards,
recognition, status, job enrichment, competitions, and the like. Monetary rewards
prevent individuals from getting demotivated or they do not motivate so to say.
However non-monetary awards motivates individual as it is related to the
inner/psychological aspects.

Importance of Motivation

(a) High level of performance: It is the duty of every manager to ensure that the
employees have a high degree of motivation. He should offer monetary and non-
monetary incentives. Highly motivated workers would be regular for work, and
have a sense of belonging for the organization. Quality of product will be
improved, wastage will be minimum and there will be increase in productivity,
and performance level will be high.

(b) Low employee turnover and absenteeism. Employee turnover and

absenteeism is caused due to low level of motivation on the part of managers.
When dissatisfaction is increased employees do not enjoy the work assigned to
them. Therefore there is a tendency of absenteeism. The workers hunt for an
alternative job and leave the organization whenever they get an opportunity. High
level of absenteeism causes low level of production, wastages, poor quality and
disruption in production schedules. Increased turnover is disastrous for any
organization as it puts strain on financial position of the organization due to
additional recruitment, selection, training and development. Motivation is
therefore a very important management tool to achieve organizational excellence.

(c) Acceptance of organization change. Management must continuously scan the

external and the internal environment. There has been a great impact of. Social
change and technology evolution on the motivation level of employees. Social
change increases aspirations of workers and put an additional demand on the
organization, which must be considered positively so that conducing working
environment is created. Technical innovation, better working conditions, better R
& D facilities, encouragement to employees and existence of better personal
policies should be part of any organization. This will facilitate retention of
employees. Management must ensure that the changes are introduced in the
organization and its benefits explained to the employees so that there is no
resistance to change and organizational growth is achieved. Re-engineering,
empowerment, job enrichment, job rotation, introduction of new technology and
processes will go a long way to boost employee morale and achieve high degree of
motivation.

(d) Organizational image: Employees are the mirrors of any organization.

Managers must lay down high performance standards coupled with high monetary
and nonmonetary rewards. Training & development programmes should be
regularly organized and employee skill improved. It will have a positive impact on
the employees and the image of the organization will be improved. It will also
reduce employee turnover and better employee will look forward to join the
organization. High organizational image will contribute towards brand image of
the product and services the organization is marketing.

Motivational Sources
Having understood the concept of motivation, now let us understand the various
sources of motivation. You may note that motivation may sometimes come from
external environment in the form of rewards or punishments and sometimes it is
generated from within an employee in
the form of intrinsic motivation. It may be recognized that under the same set of
external factors, all employees are not equally motivated. It depends upon various
factors which you can understand when you go through the different motivational
theories. The motivational sources are explained below.

Positive vs. Negative Motivation

Motivation may be either positive or negative. Positive motivation takes place
when management recognizes the employee’s efforts towards the achievement of
organizational goals. It is positive because, this kind of motivation increases the
level of performance, promotes team spirit, a sense of cooperation and generates a
feeling of belongingness and happiness. The positive motivational factors are:
-- Praise and reward for good performance.
-- Concern for the well being of an employee.
-- Confidence reposed in the employee.
-- Delegation of authority
-- Scope of participation given in the decision making.

Negative motivation, on the other hand, results from the use of force, pressure, fear
or threat. You may note that fear of punishment also affects motivation and thereby
the behavior of a person. In the organizations, negative motivation may come from
the fear of being transferred, demoted or removed. This fear of punishment
prompts the person to work hard and achieve the goals. It may, however, be
realized that negative motivation is not desirable because employees do not like to
be punished. Hence, it is desirable to motivate the employees by positive means.

Extrinsic Vs. Intrinsic Motivation

Motivation may be either extrinsic or intrinsic.

Extrinsic motivation is induced by external factors primarily financial rewards. It

is expected that the behavior caused by positive rewards is likely to be repeated.
But the reward should be sufficiently powerful for desirable behavior to be
repeated. Money acts as a significant incentive for positive behavior of employees.
Realizing the value of financial incentives as motivators, managements now-a-days
make use of wage increments, bonus payment, fringe benefits, stock options, profit
sharing schemes, paid holidays, medical benefits, etc. for motivating the
employees.

Intrinsic motivation is something that is generated within an individual. It is an

inner feeling. It may be a sense of achievement or recognition leading to
satisfaction that motivates the employee further. Since this kind of motivation
comes from within, it is called intrinsic motivation. There
are many retired doctors who work free in the hospitals because it gives them a
sense of accomplishment and satisfaction? Some of the intrinsic motivators include
praise, status, recognition, esteem, challenge, risk and responsibility in job.

Mc GREGOR’S PARTICIPATION MODEL

It was McGregor who set forth – at opposite extremes – two pairs of assumptions
about human beings which he thought were implied by the actions of autocratic
and permissive managers. First set of assumptions are known as “Theory X” and
the second set of assumption are known
as “Theory Y”. It is important to note that these sets of assumptions are not based
on any empirical research. They, according to McGregor, are intuitive deductions.

Theory X
Managers with Theory X orientation make the following assumptions about
people:
 Average human being has an inherent dislike for work and will
avoid it, if he can.
 The average human being is lazy and avoids responsibility. The
average human being is indifferent to organizational goals.
 The average human being prefers to be directed, wishes to avoid
responsibility, has relatively little ambition and wants security
above all.

According to McGregor, this is a traditional theory where workers have to be

persuaded and pushed into performance. Management can offer rewards to a
worker who shows higher productivity and can punish him if performance is below
standard. This is also called ‘carrot and stick’ approach to motivation. It suggests
that threats of punishments and strict control are ways to control the people.

Theory Y
Managers with Theory Y orientation make the following assumptions about
people:
 The average human being does not inherently dislike work.
Depending upon controllable conditions, work may be a source of
satisfaction or a source of punishment.
 The average human being will exercise self direction and self-
control in the service of objectives to which he is committed.
 Commitment to objectives is a function of the rewards associated
with their achievement.
 The average human being learns under proper conditions, not only
to accept, but also to seek responsibility.
 The capacity to exercise a relatively high degree of imagination,
ingenuity and creativity in the solution of organizational problems
is widely, not narrowly, distributed in the population.

Theory Y assumes that goals of the organization and those of the individuals are
not necessarily incongruent. Worker’s commitment is directly related to the
satisfaction to their needs. Thus, this theory places great emphasis on satisfaction
of the needs, particularly the higher ones of the employees. It does not rely heavily
on the use of authority as an instrument of command and control. It assumes that
employees exercise self-direction and self-control in the direction of the goals to
which they feel themselves committed.

Application of Theory X and Theory Y

Theory X and Theory Y are important tools in understanding the behavior of

human beings and in designing the incentive schemes to motivate the employees.
Neither of the two sets of assumptions is applicable fully in all situations and to all
types of people. It appears that Theory X is more applicable to unskilled and
uneducated lower level workers who work for the satisfaction of their basic needs
of food, clothing and shelter. Theory Y appears to be more applicable to educated,
skilled and professional employees who understand their responsibility
and are self-controlled. However, there can be exceptions. A lower-level employee
may be more responsible and mature than a well-qualified higher level employee.
The examples of employees at higher levels in modern organizations shirking
responsibility are not uncommon. Therefore,
management should use an amalgamation of both the theories to motivate different
types of employees.

Maslow’s Need Hierarchy Theory

Abraham Maslow has propounded this need hierarchy theory as early as in 1943.
Maslow points out that human beings have divergent needs and they strive to fulfill
those needs. The behavior of an individual is determined by such needs. These
needs range from biological needs at lower level to psychological needs at the
highest level. Further, these needs arise in an order of hierarchy or priority such
that lower level needs must be satisfied before higher level needs become
important for motivation. Maslow postulates five basic needs arranged in a
hierarchical fashion as Follows:

The first three levels of needs at the bottom are known as lower order needs as they
are related to one’s existence and security. The top two levels of needs are called
higher order needs as they are concerned with personal development and
realization of one’s potential. The needs are
explained below.

Physiological Needs

The physiological needs are the basic needs having the highest strength in terms of
motivation. These are the needs arising out of biological tensions created as a
result of deprivation of food, water, shelter, rest, etc. If these basic needs are
gratified, then the next level needs become
Important and act as motivators.

Safety and Security Needs

Once the physiological needs are fulfilled, safety and security needs become
predominant. These are the needs for self-preservation while physiological needs
are for survival. These needs include security, stability, freedom from anxiety and
a structured and ordered environment. Safety and security needs arise out of the
concern for the fulfillment of physiological needs in the future. An individual seeks
economic or social protection against future threats and dangers that he is exposed
to. If once these needs are gratified, they fail to serve as motivators any more. The
Individual, then, moves on to the next level needs and strives for their fulfillment.

Social Needs

At the third level, social needs or love needs become important. An individual
cannot live an isolated life. A sense of affiliation becomes important for a
meaningful life. These needs include the need for love, affection, companionship
and social interaction. We know very well that
at home the child needs the love of parents and at school he needs the friendship of
his classmates. This is to attain recognition from others which would induce a
feeling of self-worth and self-confidence in the individual. It is an urge for status,
prestige and power. Self-respect is the internal recognition while respect from
others is the external recognition. People who are able to fulfill this need feel that
they are useful and have some positive influence on their surrounding
environment.

Self-actualization Needs

At the highest level is the need to develop and realize one’s capacities and
potentialities to the fullest extent possible. This need gets activated as motivator
when all other needs have been reasonably fulfilled. At this level, the person wants
to excel in the skills and abilities that he is endowed with. As a result, he seeks
challenging work assignments that require creativity and talent. This need is inner-
oriented and the motivation is intrinsic in nature. A self-actualizing person is
creative, independent, content, and spontaneous and has a good perception of
reality. He constantly endeavors to realize his full potential.

In conclusion, it may be said that Maslow’s model explains human behavior in

general. It has nothing to do with the employee motivation at the work place.
Further, human needs may not necessarily have the hierarchy as shown by him.
The relative dominance of not able to satisfy
the social needs may prompt a person to set the physiological needs and safety
needs aside and motivate him for earning the love and affection of the family
members and the friendship of his colleagues.

Maslow felt that the human needs have a definite sequence of domination. Second
need does not dominate until first need is reasonably satisfied and third does not
dominate until first two needs have been reasonably satisfied and so on. The other
side of the need hierarchy is that man is a wanting animal, he continues to want
something or the other. He is never fully satisfied, the other need arises. As said
above (according to Maslow), needs arise in a certain order of preference and not
randomly.

Thus, if one’s lower level needs (physiological and security needs) are unsatisfied,
he can be motivated only by satisfying his lower level needs and not satisfying his
higher level needs. Another point to note is that once a need or a certain order of
needs is satisfied, it cases to be a motivating factor. Man lives for bread alone as
long as it is not available. In the absence of air one can’t live, but there is it is
plenty of air which ceases to be motivating. The physiological and security needs
are finite, but the needs of higher order are sufficiently infinite and are likely to be
dominant in persons at higher levels in the organization. This has been proved by
various studies. A study by Boris Blai supported this by showing that managers
and professionals in U.S.A. highly value self-realization, while service and manual
workers in India reported that they give to priority to job security, earnings and
personal benefits all lower order needs.

Appraisal of Need Hierarchy Model

The need priority model may not apply at all times in all places. Surveys in
European countries and Japan have shown that the model does not apply very well
to their managers. Their degree of satisfaction of needs does not vary according to
the need priority model. For example, workers in
Spain and Belgium felt that their esteem needs are better satisfied than their
security and social needs. Apparently, cultural differences are an important cause
of these differences. Thus, need hierarchy may not follow the sequence postulated
by Maslow.
Another important proposition that one need is satisfied at one time is also a
doubtful validity. Man’s behavior at any time mostly guided by multiplicity of
motives. However, one or two motives in any situation may be more dominant,
while others may be of secondary importance.
There are always some people in whom, for instance, need for self-esteem seems to
be more prominent than that of love. There are also creative people in whom the
drive for creativeness seems to be more important. In certain people, the level of
operation may be permanently lower. For instance, a person who has experienced
chronic unemployment may continue to be satisfied for the rest of his life if only
he can get enough food.
HERZBERG’S Two Factor theory of MOTIVATION

A significant development in motivation theory was distinction between

motivational and maintenance factors in job situation. A research conducted by
Herzberg and his associates based on the interview of200 engineers and
accountants who worked for eleven different firms
in Pittsburgh area. These men were asked to recall specific incidents in their
experience which made them feel particularly bad about jobs. The findings of the
research led to draw a distinction between what are called as ‘motivators’ and
‘hygiene factors’. To this group of engineers and
accountants, the real motivators were opportunities to gain expertise and to handle
more demanding assignments. Hygiene factors served to prevent loss of money
and efficiency. Thus, hygiene factors provide no motivation to the employees, but
the absence of these factors serves as dissatisfies.

Some job conditions operate primarily to dissatisfy employees. Their presence

does not motivate employees in a strong way. Many of these factors are
traditionally perceived by management as motivators, but the factors are really
more potent as dissatisfiers. They are called maintenance
factors in job because they are necessary to maintain a reasonable level of
satisfaction among the employees. Their absence proves to be strong dissatisfiers.
They are also known as ‘dissatisfiers’ or ‘hygienic factors’ because they support
employees’ mental health. Another set of job conditions operates primarily to build
strong motivation and high job satisfaction among the employees. These conditions
are ‘Motivational Hygienic factors include such things as wages, fringe benefits,
Physical conditions and overall company policy and administration. The
presence of these factors at a satisfactory level prevents job dissatisfaction, but
they do not provide motivation to the employees. So they are not considered as
motivational factors, on the other hand, are essential for increasing the productivity
of the employees. They are also known as satisfiers and include such factors as
recognition, feeling of accomplishment and achievement, opportunity of
advancement and potential for personal growth, responsibility and sense of job and
individual importance, new experience and challenging work etc.

Comparison of Herzberg and Maslow Models

In fact, there is a great similarity between Herzberg’s and Maslow’s models. A

close examination of Herzberg’s model indicates that some employees may have
achieved a level of social and economic progress in the society and for them higher
level needs of Maslow (esteem and self-actualization) are the primary motivators.
However, they still must satisfy the lower level needs for the maintenance of their
current state. Thus, we can say that money might still be a motivator for operative
employees and for some managerial employees. Herzberg’s model adds to the
Maslow’s need hierarchy model because it draws a distinction between the two
groups of factors, namely, motivational and maintenance, and points out that the
motivational factors are often derived from the job itself. Most of the maintenance
factors come under comparatively lower order needs. In economically advanced
countries, such needs of the employees are fulfilled
and hence cease to be motivators.

As shown in the following diagram Maslow’s Physiological, security and social

needs come under Herzberg’s maintenance factors whereas self-fulfillment comes
under motivating factors. It may further be noted that a part of esteem need comes
under maintenance factor and another under motivational factors. The esteem
needs are divided because there are some distinct differences between status per se
and recognition. Status tends to be a function of position one occupies. This
position may be gained through family ties or social pressures and so this may not
be a reflection of personal achievement or recognition. Recognition is gained
through competence and achievement. It is earned and granted by others. That is
why status is classified with physiological, safety and social needs as a hygiene
factor, while recognition is classified with esteem as a motivator.

David Mc Clelland’s Three Need Model

David McClelland gave a model of motivation which is based on three types of

needs achievement, power and affiliation. They are stated below:
(i) Need for achievement (n Ach): a drive to excel, advance and grow

(ii) Need for power (n Pow): a drive to influence others and situations

(iii) Need for affiliation (n Aff): a drive for friendly and close interpersonal
relationships.

Achievement Motivation

Some people have a compelling drive to succeed and they strive for personal
achievement rather than the rewards of success. This drive is called the need for
achievement (n ach). Based on his extensive research into the achievement need,
McClelland found that high achievers differentiate themselves from others by their
desire to do things better. They seek situations where they can attain personal
responsibility for finding solutions to problems, where they can receive rapid
feedback on their performance so they can set moderately challenging goals. High
achievers are not gamblers; they dislike succeeding by chance. They prefer the
challenge of working at a problem and accepting the personal responsibility for
success or failure, rather than leaving the outcome to chance or the actions of
others.

Power Motivation
The need for power (n pow) is a drive to have impact, to be influential and to
control others. Individuals high in n pow enjoy being “in charge”, strive for
influence over others, prefer to be placed into competitive and status-oriented
situations, and tend to be more concerned with gaining influence over others than
with effective performance. Power-motivated people wish to create an impact on
their organizations and are willing to take risks to do so.

Affiliation Motivation

This need has received the least attention of the researchers. Affiliation need (nAff)
can be viewed as the desire to be liked and accepted by others. It is the drive to
relate to people on a social basis. Individuals with a high affiliation motive strive
for friendship, prefer cooperative
Situations rather than competitive ones, and desire relationship involving a high
degree of mutual understanding. People possess the above needs in varying
degrees. However, one of the three needs will tend to be more characteristic of the
individual. Individuals with a high need for achievement thrive on jobs and
projects that tax their skills and abilities. Such individuals are goal-oriented in their
activities, seek challenge and want task relevant feedback. Individuals with high
power seek to dominate, influence or have control over others.

McClelland’s research revealed that managers generally score high on the need for
achievement. In other words, motivating forces for managers lie in the challenge
and potential of the job.

Alderfer’s Existence-Relatedness – Growth (Erg) Model

Serious doubts have been expressed about the existence of the five distinct need
categories which Maslow hypothesized. There seems to be some over-lapping
between the security, social and physiological need. Also, the lines between
esteem, social and self-actualization needs are not entirely clear. With these points
in mind, Clayton Alderfer condensed Maslow’s need categories into three sets:
  Existence needs. These include all forms of materials and
Physiological and safety needs, i.e., Maslow’s first two levels of
needs.
 Relatedness needs. These include all needs that involve
relationships with other people we care about. The examples
include anger and hostility as well as friendship. Thus, the opposite
of satisfaction of relatedness needs is emotional distance rather
than hatred. Relatedness needs cover Maslow’s social needs and
that of esteem needs which are derived from other people.
 Growth needs: These needs involve persons making creative
efforts to achieve full potential in the existing environment. It is
like Maslow’s highest level need of self-actualization.

Alderfer also revised Maslow’s theory in three other ways:

1. He argued that the three need categories form a hierarchy only in the sense of
decreasing concretions. That is, as we move from a focus on the existence to
relatedness to growth needs, the ways can satisfy those needs become increasingly
abstract.

2. He recognized that rise in the level of satisfaction of our existence and

relatedness needs may result in decrease in their importance to us. Growth needs
become more important as we successfully satisfy them. That is, as we are able to
be productive and creative, we look
to higher goals and, in so doing, are again dissatisfied.

3. He reasoned that we are likely to try to first satisfy the most concrete needs and
then to move on to more abstract needs. In this sense, Alderfer sounds somewhat
like Maslow, suggesting a pattern of satisfaction progression- that is, as one need is
satisfied, we progress to next higher need.

Alderfer conceived ERG needs along a continuum which avoids the implication
that the higher up an individual is in the hierarchy the better it is. Different types of
needs can operate simultaneously. If a particular path towards the satisfaction is
blocked, the individual will both persist along that path and at the same time
regress towards more easily satisfied needs. In this way, Alderfer distinguishes
between chronic needs which persist over a period of time and the episode needs
which are situational and can change according to the environment.

Equity Theory:
The equity theory focuses on individuals perceptions of how fairly they are treated
in comparison to others. It was developed by [Link] Adams, who found that
equity exists when people consider their compensation equal to the compensation
of others who perform similar work. People judge equity by comparing inputs
(such as education, experience, effort, and ability) to outputs (such as pay,
recognition, benefits, and promotion). When the ratio is out of balance, inequity
occurs. And inequitable pay can create an impossible situation when implementing
salary and incentive systems. Individuals will work to reduce perceived inequity by
doing the following:

Change inputs: Examples include increasing or reducing effort.

Change outcomes: Examples include requesting a salary increase or improved
working conditions.
Distort perceptions: This occurs when individuals cannot change their inputs or
outcomes; one example is artificially increasing the importance of awards.
Leave the job: Individuals might do this rather than experience what they perceive
to be continued inequity.

When administering compensation and incentive programs, managers must be

careful to assure that the rewards are equitable; if programs are not perceived as
equitable, then they will not contribute to employee motivation.

Expectancy Theory

Vroom has propagated Expectancy Theory based on employee expectancy. He

believes that employee is motivated to exert high level of efforts when he believes
that efforts will lead to good performance and therefore organizational rewards that
will satisfy achievement of personal goals. The focus of the theory has three
elements.
(a) Efforts - Performance relationship. It is related to the probability perceived
by individual that exerting a given amount of efforts will lead to performance
(Expectancy).

(b) Performance - Reward Relationship. The degree to which the individual

believes that performing a particular level will lead to attainment of desired
outcome (Instrumentality).
(c) Reward-personal goal relationship. The degree to which an organizational
reword will satisfy individual needs and its attractiveness for the individual
(Valence).

Efforts -----------Performance----------------------Reward--------------------
Satisfaction of goals

Individual invariably asks questions to himself like probability of good

performance, assessment based on the skill and non-performance criteria and
personal likes and dislikes. In second stage he evaluates performance-reward
relationship in terms of award of seniority or the amount of co-operation he is liked
to get in the organization and lastly the rewards attractive enough to fulfill his
personal goal of promotion. Management must therefore identify individual goal
pattern and lay down performance criteria and reward system. The key is to
understanding of an individual’s goal linkage between efforts and performance,
between performance and rewards, and between rewards and individual goal
satisfaction.

Analysis – Maslow’s theory is basically need satisfying concept. Vroom has gone
one step ahead to identify individual expectations from the organization, and its
impact on work behavior of an individual. If a system of performance appraisal
and its resultant benefits are attractive, then the individual will put up his best to
achieve organizational objective. The behavior of an individual has been taken as
rational. The theory helps managers to work beyond Maslow and Herzberg and
create work environment and set organizational goals in such a way that individual
is stretched to achieve higher performance. However the theory is difficult to
implement because of the organizations inability to provided required resources
and time.

PORTER AND LAWLER MODEL OF MOTIVATION

Lyman Porter and Edward Lawler came up with a comprehensive model of

motivation. They combined adding two more components to Vroom’s theory of
motivation. The model is more comprehensive as it includes various aspects that
we have studied so far. This is a multivariate model which explain the relationship
that exists between job attitudes and job performance. This model is based on four
assumptions of human behavior as under:
(a) Individual behavior is determined by a combination of factors that exist in the
individual and are present in the environment.
 (b) Individuals are considered to be rationale people who make conscious and
logical decisions about their behavior when they interact with other people in the
organization.
(c) Every individual have different needs, desires, and their goals are of varied
nature.
(d) On the basis of their expectations, individuals decide between alternate
behaviors. The outcome of the efforts is related to the pattern of behaviors an
individual display.

Porter and Lawler model of motivation is explained in Figure 7.5. 1.

1 Value of rewards. People try to find out the rewards that are likely to be
received from undertaking a particular job will be attractive enough. This
phenomenon is equal to that of valence in Vroom’s theory of motivation. If
rewards are attractive, an individual will put in an extra effort, Otherwise he
will lower the very desire of doing a job.

2 Efforts. Efforts refer to the amount of energy which an individual is

prepared to exert on a job assigned to him.
3 Perceived Efforts - Reward Probability. People try to assess the probability
of a certain level of efforts leading to a desired level of performance and the
possibility of that performance leading to rewards. Bases on the valence-
reward and the efforts-rewards probability, people decide the amount of
efforts they would like to put in.
4 Performance. Efforts leads to performance. The level of performance will
generally depend upon role perception as defined in the standing orders/
policy instructions, the level of efforts, skills, ability, knowledge, and
intellectual capacity of the individual. Traits also play a role in performance
equation. Thus, ability and personality traits will moderate effort-
performance relationship. Performance of the individual is directly related to
reward he is likely to get. Reward is of two type i.e., intrinsic and extrinsic.
Individual is generally motivated by intrinsic rewards. It is therefore
necessary that the organization pay an adequate attention to the reward
system in the organization. Extrinsic Rewards are in the form of money or
other material elements that have been included in hygiene factors of
Hertzberg’s motivation theory.
5 Satisfaction. Satisfaction results from intrinsic rewards. Individual will
therefore compare his actual rewards with the perceived rewards. If actual
rewards are equal or greater than perceived rewards the individual would
feel satisfied. On the contrary if they are less than perceived rewards, an
individual will put in reduced efforts, and obviously he will be less satisfied.

Significance of the Model

Porter and Lawler Model is a complete model and is a departure from the
traditional performance—satisfaction relationship. The model is of a great
significance to managers as it sensitizes them to focus their attention to
achieve employee motivation. Following points need more attention.
1. Matching of individual traits and ability with the job.
2. Managers must explain to the employees the role they play in the
organization and its relationship with reward system.
3. Managers should carry out job analysis carefully, lay down actual
performance levels, which should be attainable by the individuals.
4. Job expectations, performance levels, and reward associated with the job
should be clearly laid down and implemented.
5. Motivation of employees is important. Make sure that the rewards
dispensed are in line with employee expectations. Carry out the review of
reward system periodically.
Financial and Non-Financial Incentives

The term ‘incentives’ means an inducement which arouses or stimulates one to

action in a desired direction. An incentive has a motivational power; it influences
the decisions of individuals on putting in necessary effort towards task
performance. In modern organizations, a
large variety of incentives are used to motivate the people. These incentives may
be broadly grouped into
: (i) financial or pecuniary incentives, and
(ii) non-financial incentives.

The financial incentives may be distinguished from the nonfinancial

incentives on the following grounds:

1. Financial or monetary incentives are meant to satisfy those which money can
buy. The needs for food, clothing, and shelter can be fully satisfied by money, but
the needs for security, social affiliation and status can be partially satisfied by
money. But non-pecuniary incentives are meant for satisfaction of those needs
which can’t be satisfied by money. The examples are higher level needs such as
status, ego, sense of responsibility, career advancement, autonomy.

2. Financial incentives are tangible, i.e. visible and measureable; they have a direct
effect on the organization and the members. But nonfinancial incentives are
intangible and they have an indirect influence on the organization and the
members.

3. Financial incentives are determined by reference to several factors such as job

evaluation, cost of living trends, fringe benefits offered by competitors, agreement
between the employers and employees, etc. Non-financial incentives are based on
the nature of jobs, strength of aspirations and urges of employees and behavioral
orientation of management.

4. Financial incentives are generally used to motivate workers and other non-
managerial employees. But non-financial incentives are used to motivate
managerial and other higher level personnel. They are also used to supplement and
support the pecuniary incentives in the organization.
Role of Non-Financial Incentives

Financial incentives do not work for ever to motivate the people at work. As a
matter of fact, when the physiological and security needs are fulfilled with the help
of money, money ceases to be the motivating force; it becomes the maintenance
factor as said by Herzberg. Therefore, employees do not always run after money.
They have other needs also. The want status and recognition in the society, they
want to satisfy egoistic needs and they want to achieve something in their lives. In
order to motivate the employees having these needs, management can take the help
of following non-financial incentives:

1. Praise: Praise satisfies one’s ego needs. Sometimes, praise is more effective
than another incentive. We have seen that in industry, at home or elsewhere,
people respond better to praise. However, this incentive should be used with
greater degree of care because praising an incompetent employee would create
resentment among competent employees. Or course, occasionally, a pat on the
back of an incompetent employee may act as incentive to him for improvement.

2. Competition: Competition is a kind of non-financial incentive. If there is a

healthy competition among the individual employees or groups of employees, it
will lead them to achieve their personal or group goals in a better way.

3. Opportunity for Growth: Opportunity for growth is another kind of incentive.

If the employees are provided opportunities for their advancement and growth and
to develop their personality, they feel very much satisfied and become more
committed to the organization and become more committed to the organizational
goals.

4. Feedback: Knowledge of the results/performance leads to employee

satisfaction. A worker likes to know the result of his performance. He gets
satisfaction when his superior appreciates the work he has done.

5. Worker’s participation in Management: Employees participation in

management provides an important incentive to the employees. It gives them
psychological satisfaction that their voice is being heard.

6. Suggestion System: Suggestion system in an incentive which satisfies many

needs of the employees. Many organizations which use the suggestion system
make use of cash awards for useful suggestions. They, sometimes, publish the
worker’s name with his photograph in
the company’s inhouse magazines/reports/brochures. This motivates the employees
to be in search for something which may be of greater
use to the organization.