CU-MA-PSY-SEM-I-Organizational Psychology - Second Draft-converted

MASTER OF ARTS SEMESTER I ORGANIZATIONAL PSYCHOLOGY 21MAP604

2 CU IDOL SELF LEARNING MATERIAL (SLM)

CHANDIGARH UNIVERSITY Institute of Distance and Online Learning Course Development Committee Prof. (Dr.) R.S.Bawa Pro Chancellor, Chandigarh University, Gharuan, Punjab Advisors Prof. (Dr.) Bharat Bhushan, Director – IGNOU Prof. (Dr.) Majulika Srivastava, Director – CIQA, IGNOU Programme Coordinators & Editing Team Master of Business Administration (MBA) Bachelor of Business Administration (BBA) Coordinator – Dr. Rupali Arora Coordinator – Dr. Simran Jewandah Master of Computer Applications (MCA) Bachelor of Computer Applications (BCA) Coordinator – Dr. Raju Kumar Coordinator – Dr. Manisha Malhotra Master of Commerce (M.Com.) Bachelor of Commerce (B.Com.) Coordinator – Dr. Aman Jindal Coordinator – Dr. Minakshi Garg Master of Arts (Psychology) Bachelor of Science (Travel &Tourism Management) Coordinator – Dr. Samerjeet Kaur Coordinator – Dr. Shikha Sharma Master of Arts (English) Bachelor of Arts (General) Coordinator – Dr. Ashita Chadha Coordinator – Ms. Neeraj Gohlan Academic and Administrative Management Prof. (Dr.) R. M. Bhagat Prof. (Dr.) S.S. Sehgal Executive Director – Sciences Registrar Prof. (Dr.) Manaswini Acharya Prof. (Dr.) Gurpreet Singh Executive Director – Liberal Arts Director – IDOL © No part of this publication should be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording and/or otherwise without the prior written permission of the authors and the publisher. SLM SPECIALLY PREPARED FOR CU IDOL STUDENTS Printed and Published by: TeamLease Edtech Limited www.teamleaseedtech.com CONTACT NO:- 01133002345 CHANDIGARCHU IDUONLISVELEFRLESAIRTNYING MATERIAL (SLM) 3 For: Institute of Distance and Online Learning

First Published in 2021 All rights reserved. No Part of this book may be reproduced or transmitted, in any form or by any means, without permission in writing from Chandigarh University. Any person who does any unauthorized act in relation to this book may be liable to criminal prosecution and civil claims for damages. This book is meant for educational and learning purpose. The authors of the book has/have taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person in any manner whatsoever. In the event the Authors has/ have been unable to track any source and if any copyright has been inadvertently infringed, please notify the publisher in writing for corrective action. CONTENT 4 CU IDOL SELF LEARNING MATERIAL (SLM)

Unit – 1 Introduction To Organizational Psychology..................................................................... 6 Unit – 2 Interdiscplinary Approach .............................................................................................. 27 Unit – 3 Models Of Organization Behaviour: Part – I.................................................................. 45 Unit – 4 Models Of Organization Behaviour: Part – 2 ................................................................. 58 Unit – 5 Human Resource Developement .................................................................................... 67 Unit – 6 Personality: Part – I......................................................................................................... 83 Unit – 7 Personality: Part – II ..................................................................................................... 108 Unit –8 Motivation: Part – I........................................................................................................ 133 Unit –9 Motivation: Part – II ...................................................................................................... 146 Unit –10 Decision Making: Part-I............................................................................................... 157 Unit –11 Decision Making: Part-II ............................................................................................. 178 Unit –12 Personnel Decisions..................................................................................................... 197 Unit –13 Relevance Of Employees In Decision Making............................................................ 211 Standard Criteria For Decision Making...................................................................................... 224 5 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT – 1 INTRODUCTION TO ORGANIZATIONAL PSYCHOLOGY Structure 1.0 Learning Objectives 1.1 Introduction 1.2 Nature of Organizational Psychology 1.3 History and Methodology 1.4 Summary 1.5 Keywords 1.6 Learning Activity 1.7 Unit End Questions 1.8 References 1.0 LEARNING OBJECTIVES After studying this unit, students will be able to: • Explain the nature and meaning of Organizational Psychology • Describe the scope of Organizational Psychology • Explain the role of organizational psychologists. • Describe the emerging thoughts and research methodology in Organizational Behaviour. 6 CU IDOL SELF LEARNING MATERIAL (SLM)

1.1 INTRODUCTION Before we start the paper on organizational psychology, let us look into some basic pointers related to the paper. There are two major branches of psychology. One of them is based on theories and is known as pure psychology and other is based on application is called as applied psychology. Each of these fields has several fields under it. Organization psychology is one of the papers under the applied psychology branch. It is known as industrial / organizational psychology. Hence in this paper, we will use this term. In this book, we will use the terms organizational psychology, industrial psychology, and industrial/organizational psychology interchangeably. In this chapter, we will examine the nature and scope of industrial/organizational psychology. We will also explore the role of industrial / organizational psychologists in an organization. We will also learn about the history and research methods used in industrial / organizational psychology. Workplace is where people spend a major part of their active days. The environment in the workplace has a great impact on the psychological and physiological health of its employees and associates. Hence improving the culture and systems of the employees has been one of the focuses of the organizations. Creating an environment where the employees feel encouraged and contribute positively to the organizations helps both the organizations as well as the employees. In long term it also has indirect impact on the personal life of the employees. Hence cultivating a positive work culture impacts both the employees and their family. This is the role of industrial / organizational psychologists. Now let us understand the terms industrial psychology and organizational psychology. Industrial Psychology Industrial psychology is an applied field in psychology. This field applies theories and principles of psychology and behaviour to workplace environments. Industrial psychology in other words refers to the application of organizational psychology. It used to study, analyse, and understand human behaviour in the workplace, mainly how business works and how employees’ function. 7 CU IDOL SELF LEARNING MATERIAL (SLM)

Industrial psychology plays a significant role in establishing and maintaining a conducive work environment. It also aims at optimizing human and organizational efficiency. Key benefits of hiring an industrial psychologist include better workplace cooperation, higher levels of job satisfaction, and increased productivity. Industrial psychology may be defined as “simply the application or extension of psychological facts and principles to the problems concerning human beings operating within the context of business and industry” (Blum & Naylor, 1968) Organizational Psychology The systematic study of people's behaviours and attitudes within organizations is known as organizational behaviour (OB). In companies, it is individual behaviour and group dynamics. Organizational behaviour research focuses on the psychosocial, interpersonal, and behavioural processes that occur in organizations. Organizational variables that influence human behaviour at work, on the other hand, are often pertinent to the study of organizational behaviour. Jobs, architecture, and organizational structure examples of organizational variables. Organizational variables are important as the context in which human behaviour occurs, even though individual behaviour and group dynamics are the primary concerns in the study of organizational behaviour. The term 'organizational behaviour' is defined by Stephen P Robbins as \"a field of study that investigates the impact of individuals, groups, and structures on behaviour within organizations to apply such knowledge towards improving an organization's effectiveness\". Organizational psychology may be defined as “the study of the structure of an organization and of the ways in which the people in it interact, usually undertaken in order to improve the organization.” The focus of organizational psychologists has changed from the individual per se to the individual as a member of a group or to larger units like groups and organizations. Organizational psychology examines the effects of work environments and management styles on worker motivation, job satisfaction, and productivity According to this definition, organizational behaviour: 8 CU IDOL SELF LEARNING MATERIAL (SLM)

It is a field of study with a common body of knowledge. It studies three determinants of behaviour in organizations. They are individuals, groups, and structures. It applies the knowledge gained about individuals, groups, and the effect of structure on behaviour to make organizations work more effectively. 1.2 NATURE OF INDUSTRIAL / ORGANIZATIONAL PSYCHOLOGY Industrial / organizational psychology can be seen as having two major aspects. First, there is an industrial perspective. This area involves looking at how to find best match between individuals and specific job roles. This segment of industrial / organizational psychology is also sometimes referred to as personnel psychology. Psychologists who work in this area assess characteristics of the employee and then match these individuals to jobs in which they are likely to perform well. Other functions of that fall on the industrial side of industrial / organizational psychology include training employees, developing job performance standards, and measuring job performance. The organizational side of psychology on the other hand is focused on understanding how organizations affect individual behaviour. The various factors that influence the way people behave within an organization include organizational structures, social norms, management styles, and role expectations. By understanding these factors, industrial / organizational psychologists hope to improve individual performance and health while at the same time benefiting the organization. While industrial / organizational psychology is an applied field, basic theoretical research is also essential. The roots of this field can be found in experimental psychology. In addition to this, I-O industrial / organizational psychology has a number of different sub-areas such as human- computer interaction, personnel psychology, and human factors. Organizational behaviour should not be seen as a discipline in the usual sense of the term. Instead, it can be understood as an eclectic field of study that integrates the theory of behaviour sciences into the study of human 9 CU IDOL SELF LEARNING MATERIAL (SLM)

behaviour within organizations. Organizational behaviour is a relatively young field of inquiry, in terms of the use of scientific techniques. In order to learn about human behaviour in organizational context is not an exact science is in itself a significant realization. One of the shortcomings of the scientific management movement was its belief that human behaviour could be easily predicted. So, while the field of organizational behaviour may be inaccurate, it is more realistic. Organizational behaviour, therefore, is neither a purely scientific area of inquiry nor a strictly intellectual endeavour. It involves the study of abstract ideas, which include valance and expectancy in motivation, as well as the study of concrete matters. It includes study of these observable behaviours and physiological symptoms of distress at work. Therefore, learning about organizational behaviour is a multidimensional activity as shown in Figure 1.1 below. Mastery of basic Development of Application of objective special skill and Knowledge and knowledge abilities skills Figure 1.1 Learning about OB Basic objective knowledge mastery: Objective knowledge is established through basic and applied research in any field of study. Cognitive mastery of theories, conceptual models, and research results is needed for acquiring objective knowledge. The study of organizational behaviour necessitates the learning of skills: Organizational actions and the mastery of skills are crucial to an organization's performance. The following are the essential skills defined by the United States Department of Labour: • Skills of Resource management like time management • Skills of Information management like data interpretation • Skills of Personal interaction like teamwork • Skills of Systems behaviour and performance like cause-effect relations 10 CU IDOL SELF LEARNING MATERIAL (SLM)

• Skills of Technology utilization like troubleshooting. Most of these skills, like decision-making and information management, are directly related to the study of organizational behaviour. Developing these skills is different from acquiring objective knowledge in the sense that it requires structured practice and feedback. Application of Information and Skills: To apply both effectively in particular organizational environments, it is important to combine objective knowledge and skill growth. Goals of Organizational Behaviour: The goals of organizational behaviour are to: 1) Explain individual and group behaviour: When we want to know why people or groups acted the way they did, we pursue the answering goal. For example, if an organization's turnover rate is extremely high, we want to know why so that we can take steps to rectify the problem in the future. 2) Predict a specific behavioural reaction to change: Prediction is the process of predicting what consequences will occur as a result of a specific behaviour. Knowing OB well will assist the manager in predicting these behavioural reactions to change. As a result, the manager will predict which approaches can result in the least amount of conflict. Employee resistance and make decisions based on that knowledge. 3) Control behaviour: The knowledge of OB can be used by managers to control behaviour. Managers frequently see the control objective as the most valuable contribution that OB makes toward their effectiveness on the job. 11 CU IDOL SELF LEARNING MATERIAL (SLM)

1.3 HISTORY AND RESEARCH METHODOLOGY Adam Smith had proposed a new system based on hierarchy of the division of labour in 1776. Almost a century later, German sociologist named Max Weber popularized the idea of rational organizations and pioneered the notion of charismatic leadership. While the study of organizational behaviour can be traced back to Max Weber and earlier organizational studies, it is commonly thought to have started as an academic discipline with the introduction of scientific management in the 1890s, with Taylorism serving as the pinnacle of the movement. Thus, it was Fredrick Winslow Taylor who introduced the systematic use of goal setting and rewards to motivate employees that could be considered as the starting of the academic discipline of Organizational Behaviour. Proponents of scientific management held that rationalizing the organization with precise sets of instructions and time-motion studies would lead to increased productivity. Studies of different Compensation systems were also carried out to motivate workers. In the 1920's Elton Mayo an Australian-born Harvard Professor and his colleagues conducted productivity studies at Western Electric's Hawthorne plant. With this epoch-making study, the focus of organizational studies shifted to the analysis of how human factors and psychology affected organizations. This shift of focus in the study of organizations was called the Hawthorne Effect. The Human Relations Movement focused on teams, motivation, and the actualization of goals of individuals within organizations. Studies conducted by prominent scholars like Chester Barnard, Henri Fayol, Mary Parker Follett, Organizational Behaviour Frederick Herzberg, Abraham Maslow, David McCellan, and Victor Vroom contributed to the growth of Organizational Behaviour as a discipline. In the 1960s and 1970s, the field was strongly influenced by social psychology and the emphasis in the academic study was quantitative research. In the 1930s, industrial - organizational psychology greatly expanded its scope. Until then, it had been involved primarily in personnel issues such as the selection and placement of employees. However, in the 1930s, when the findings from the famous Hawthorne studies were published, psychologists became more involved in the quality of the work environment, as well as the 12 CU IDOL SELF LEARNING MATERIAL (SLM)

attitudes of employees. The Hawthorne studies, conducted at the Hawthorne plant of the Western Electric Company in the Chicago area, demonstrated that employee behaviour was complex and that the interpersonal interactions between managers and employees played a tremendous role in employee behaviour. The Hawthorne studies were initially designed to investigate such issues as the effects of lighting levels, work schedules, wages, temperature, and rest breaks on employee performance. Much to the surprise of the researchers, the actual work conditions did not affect productivity in the predicted manner. That is, there were times when productivity improved after work conditions were made worse, and times when productivity decreased after work conditions were made better. After interviewing employees and studying the matter further, the researchers realized that employees changed their behaviour and became more productive because they were being studied and received attention from their managers, a condition that is now commonly referred to as the Hawthorne effect. Perhaps the major contribution of the Hawthorne studies was that it inspired psychologists to increase their focus on human relations in the workplace and to explore the effects of employee attitudes. An explosion of theorizing, bounded rationality, informal organization, contingency theory, resource dependence, institution theory, and population ecology theories have contributed to the study of organizational behaviour. Various Historical Concept 1) Industrial Revolution: It has only been since the Industrial Revolution of the nineteenth century that a relatively large number of individuals has been required to work together in manager-subordinate relationships. Before this many of the large organizations that did exist, were military ones in which the authority of the leader was supreme and practically unquestioned since membership was not voluntary. Behavioural problems were relatively easy to deal with under these conditions. It is certainly no accident that much of our current knowledge about human behaviour has been derived from organizations in which influencing behaviour consists of more than just giving orders. 13 CU IDOL SELF LEARNING MATERIAL (SLM)

Famous industrialists such as William C Durant, Henry Ford, Andrew Carnegie, and John D Rockefeller were all master managers. They had the management skills needed in the early stages of industrialization. This strategy, however, was no longer acceptable as the industrial revolution matured and stabilized. 2) Scientific Management: The great industrialist was primarily concerned with an overall managerial organization for their companies to survive and prosper. The scientific management movement around the turn of the century took a narrower, operations perspective. Yet, the two approaches were certainly not contradictory. The managers in both cases applied the scientific method to their problems and they thought that effective management at all levels was the key to organizational success. Fredrick W Taylor (1856 - 1915) is the recognized father of scientific management. Taylor started scientific management in his time-and-motion studies at the Midvale Steel Company in the early 1900s. As an industrial engineer, he was concerned with inefficiencies in manual labour jobs and believed that by scientifically studying the specific motions that made up the total job, a more rational, objective, and effective method of performing the job could be determined. In his early years as a foreman in the steel industry, he saw different workers doing the same job in different ways. It was his opinion that each man could not be optimally doing his job, and he set out to find the \"one best way\" to perform the job efficiently. His argument proved to be correct, and, in some instances, \"Taylorism\" resulted in productivity increases of 400 percent. In almost all cases, his methods improved productivity over existing levels. Taylor had shop and engineering experience and therefore was intimately involved with tools, products, and various machining and manufacturing operations. His well-known metal-cutting experiments demonstrated the scientific management approach. Over twenty-six years, Taylor tested every conceivable variation in speed, feed, depth of cut, and kind of cutting tool. The outcome of this experimentation was high-speed steel, considered one of the most significant contributions to the development of large-scale production. 14 CU IDOL SELF LEARNING MATERIAL (SLM)

Coupled with Taylor's logical, rational, engineering-like approach to management was a simple theory of human behaviour: people are primarily motivated by economic rewards and well take direction if offered the opportunity to better their economic positions. Put simply, Taylor's theory stated that: Physical work could be scientifically studied to determine the optimal method of performing a job. Workers could thereafter be made more efficient by being given prescriptions for how they were to do their jobs. Workers would be willing to adhere to these prescriptions if paid on a \"differential piecework\" basis. In addition to advocating the use of scientific means to develop the best way to do a task, Taylor argued that several other principles were important. Workers with appropriate abilities had to be selected and trained in the appropriate task method. Supervisors needed to build cooperation among the workers to ensure that they Followed the designated method of work. Building such cooperation included soliciting Workers' suggestions and being willing to discuss ideas for improved work methods. There needed to be a clear division of work responsibilities. Previously, the workers planned how to approach a task, and then they executed it. Under the Taylor Scheme, it was the management's job to do the task planning, using scientific methods. Taylor's four principles of scientific management are summarized here: Scientifically study each part of a task and develop the best method for performing the task. Carefully select workers and train them to perform the task by using the scientifically developed method. 15 CU IDOL SELF LEARNING MATERIAL (SLM)

Cooperate fully with workers to ensure that they use the proper method. Organizational Behaviour divide work and responsibility so that management is responsible for planning work methods using scientific principles and workers are responsible for executing the work accordingly. Many have criticized Taylor's work for dehumanizing the workplace and treating workers like machines, but his overall contribution to management was significant. Although others were studying similar methods at the same general time, Taylor was one of the first to take the theory and practice of management out of the realm of intuitive judgment and into the realm of scientific inquiry and reasoning. Taylor's ideas on time study, standardization of work practices, goal setting, money as a motivator, scientific selection of workers, and rest pauses have all proved to be successful techniques of management today. Taylor was by no means the only noteworthy scientific manager. Others in the movement, such as Frank and Lillian Gilberth and Henry L Gantt made especially significant contributions. 1. The Gilbreths: Other major advocates of scientific management were the husband-and-wife team of Frank Gilbreth (1868 - 1924) and Lillian Moller Gilberth (1878 - 1972). As Frank become involved in training young bricklayers, he noticed the inefficiencies that were handed down from experienced workers. To remedy the situation, he proposed using motion studies to streamline the bricklaying process. Frank also designed special scaffolding for different types of jobs and devised precise directions for mortar consistency. Based on these and other ideas, Frank was able to reduce the motions involved in bricklaying from 18 ½ to 4. Using his approach, workers increased the number of bricks laid per day from 1000 to 2700 with no increase in physical exertion. Frank married Lillian Moller, who began working with him on projects while she completed her doctorate in psychology. The two continued their studies aimed at eliminating unnecessary motions and expanded their interests to exploring ways of reducing task fatigue. Part of their work involved the isolation of 17 basic motions, each called a therblig (\"Gilbreth\" spelled backward, with the \"t\" and \"h\" reversed). Therbligs included such motions as select, position, 16 CU IDOL SELF LEARNING MATERIAL (SLM)

and hold - motions that were used to study tasks in several industries. The Gilbreths used the therblig concept to study tasks in several industries. The Gilbreths used the therblig concept to study jobs and also pioneered the use of motion picture technology in studying jobs. Lillian helped define scientific management by arguing that scientific studies of management must focus on both analysis and synthesis. With analysis, a task is broken down into its essential parts or elements. With synthesis, the task is reconstituted to include only those elements necessary for efficient work. She also had a particular interest in the human implications of scientific management, arguing that the purpose of scientific management is to help people reach their maximum potential by developing their skills and abilities. Lillian Gilbreth ranks as the first woman to gain prominence as a major contributor to the development of management as a science. 2. Henry L Gantt (1861-1919): One of Taylor's closest associates, Henry Gantt later becomes an independent consultant and made several contributions of his own. The most well-known is the Gantt Chart, a graphic aid to planning, scheduling, and control that is still in use today. He also devised a unique pay incentive system that not only paid workers extra for reaching the standard in the allotted time but also awarded bonuses to supervisors when workers reached the standard. He wanted to encourage supervisors to coach workers who were having difficulties. Scientific managers like Taylor, Frank and Lillian Gilberth, and Henry Gantt were not the first or only group that recognized the importance of the operating functions. A hundred years earlier, Adam Smith had carefully pointed out the advantages of division of labour and in 1832, Charles Babbage, a British mathematician with some astounding managerial insights, discussed transference of skill in his book Economy of Machinery and Manufacture. 3. The Human Relations Movement: The second major step on the way to current organizational behaviour theory was the Human Relations Movement that began in the 1930s and continued in various forms until the 1950s. The practice of management, which places heavy emphasis on employee cooperation and morale, might be classified as human relations. Raymond Mills states that the human relation approach was simply to \"treat people as human beings (instead of machines in the productive process), acknowledge their needs to belong and to feel 17 CU IDOL SELF LEARNING MATERIAL (SLM)

important by listening to and heeding their complaints where possible and by involving them in certain decisions concerning working conditions and other matters, then the morale would surely improve, and workers would cooperate with management in achieving good production\". The Human Relations Movement, popularized by Elton Mayo and his famous Hawthorne studies conducted at the Hawthorne Plant of the Western Electric Company, in many ways remained the foundation of much of our management thinking today. Before the Hawthorne studies officially started, Elton Mayo headed a research team, which was investigating the causes of very high turnover in the mule-spinning department of a Philadelphia textile mill in 1923 and 1924. After interviewing and consulting the workers, the team set up a series of rest pauses, which resulted in greatly reduced turnover and more positive worker attitudes and morale. Illumination Experiments: The initial experiments strongly reflected the physical orientation of scientific management since they were designed to explore the relationship between lighting and productivity. The rational approach of scientific management predicted a positive relationship i.e., as lighting increased, productivity would increase up to a point of course. Logically, at some (high) level of illumination productivity should begin to decline, so the original experiment was designed to determine the optimal level of illumination. The light experiments were conducted on female workers, who were divided into two groups. One group was placed in a test room where the intensity of illumination was varied, and the other group worked in a control room with supposedly constant conditions. The results were baffling to the researchers. The researchers found no predictable relationship between lighting and output and because the research results could not be explained by existing knowledge, the researchers were forced to find a new explanation. Further research indicated that the lack of a predictable relationship between lighting and output was related to the mental and emotional side of organizations rather than the physical, mechanistic side recognized by scientific management. Additional studies showed that economic factors, such as incentive systems, were equally poor in predicting behaviour. Relay Room Experiments: Intrigued with positive changes in productivity some of the engineers and company officials decided to attempt to determine the causes through further 18 CU IDOL SELF LEARNING MATERIAL (SLM)

studies. Accordingly, the second set of experiments took place between 1927 and 1933 known as the Relay Room experiments. The most famous study involved five girls assembling electrical relays in the Relay Assembly Test Room, a special room away from other workers where the researchers could alter work conditions and evaluate the results. During the experiment, the girls were often consulted and sometimes allowed to express themselves about the changes that took place in the experiment. The researchers were concerned about possible negative reactions and resistance from the workers who would be included in the experiment. To lessen potential resistance, the researchers changed the usual supervisory arrangement so that there would be no official supervisor; rather, the workers would operate under the general direction of the experimenter. The workers also were given special privileges such as being able to leave their workstation without permission, and they received considerable attention from the experimenters and company officials. In total, they were treated and recognized as individuals with something to contribute. The study was aimed at exploring the best combination of work and rest periods, but several other factors were also varied, such as pay, length of the workday, and provisions for free lunches. Generally, productivity increased throughout the study, regardless of how the factors under consideration were manipulated. The results in the relay room were practically identical to those in the illumination experiment. Each test period yielded higher productivity than the previous one had done. Even when the girls were subjected to the original conditions of the experiment, productivity increased. The conclusion was that the independent variables (rest pauses and so forth) were not by themselves causing the change in the dependent variable (output). One outcome of the studies was the identification of a famous concept that ultimately came to be known as the Hawthorne effect. The Hawthorne effect refers to the possibility that individuals singled out for a study may improve their performance simply because of the added attention they receive from the researchers, rather than because of any specific factors being tested in the study. More contemporary investigations now suggest that the Hawthorne effect concept is too simplistic to explain what happened during the Hawthorne studies and that the Hawthorne effect 19 CU IDOL SELF LEARNING MATERIAL (SLM)

concept itself is defective. In the Hawthorne situation, the workers likely viewed the altered supervision as an important positive change in their work environment, even though that was not what the researchers intended. Bank Wiring Room Study The final phase of the research program was the bank wiring study, which started in November 1931 and lasted until May 1932. Its primary purpose was to make an observational analysis of the informal workgroup. A group of male workers in the study provided knowledge about informal social relations within groups and about group norms that restrict output when such steps sum advantageous to the group. It also included a massive interviewing program (1928 - 1931) that was initially aimed at improving supervision but evolved into a means of learning what workers had on their minds and allowing them to let off steam. The results in the bank wiring room were essentially opposite to those in the relay room. The output was restricted by the bank wirers. By scientific management analysis, a standard of 7312 terminal connections per day had been arrived at. This represented 2½ pieces of equipment. The workers had a different brand of rationality. They decided that 2 types of equipment were a \"proper\" day's work. The researchers determined that the informal group norm of 2 pieces of equipment represented restriction of output rather than a lack of ability to produce 2 ½ pieces of equipment. The following evidence supports this contention: The observer noted that all the men stopped before quitting time. Most of the men admitted to the interviewer they could easily turn out more work. Tests of dexterity and intelligence indicated no relationship between capacities to perform and actual performance. Assessing the Hawthorne Studies: The Hawthorne studies have been severely criticized mainly because the studies often had major flaws (such as changing several factors at the same time) and because important data were sometimes ignored in concluding (especially in discounting the potential importance of pay). The Human Relations Movement, like Scientific Management, is 20 CU IDOL SELF LEARNING MATERIAL (SLM)

not without its shortcomings. Because of the nature of its findings and the resulting lessons for managers, it has been criticized as \"cow Sociology\"(so-called because happy cows presumably give more milk). This simplistic view of the relationship between morale and productivity is something that existing research has not been able to verify. Yet, despite their shortcomings, the effects of these pioneering studies were far-reaching. In strong contrast to the impersonality that characterized the classical approach, the Hawthorne studies pointed to the impact that social aspects of the job had on productivity, particularly the effect of personal attention from supervisors and relationships among group members. As a result, the focus of the field of management was drastically altered. A common interpretation of the Human Relations Movement is that managers need only treat their employees well to generate maximum productivity. This conclusion is unfortunate for two reasons. It is oversimplified and therefore often inaccurate. Those who do not agree with this conclusion might be labelled advocates of poor treatment of employees - which, of course, is also false. Quite possibly the positive but simplistic philosophy of human relations has hindered needed research into organizational behaviour. This does not necessarily mean that an understanding of human relations is not useful; it may have a payoff in areas other than performance, such as absenteeism, turnover, etc. The influence of the human relations philosophy can be seen in many management trainings programs today. Topics such as communication, counselling, understanding people, and leadership are common Organizational behaviour ingredients in many training programs and reflect the findings of the original Hawthorne studies. Often participants are taught that improved communications, etc., will increase morale. Unfortunately, these topics can erroneously be seen as the totality of the manager's job, thereby increasing the probability that employee morale may increase, and productivity may decrease. 21 CU IDOL SELF LEARNING MATERIAL (SLM)

1.4 SUMMARY • Industrial/organizational psychology is that specialty area within the broad field of psychology that studies human behaviour in work settings. Most jobs are quite complicated, requiring the use of a wide range of mental and motor skills. • Work organizations are often large and complex entities made up of hundreds or even thousands of workers who must interact and coordinate activities to produce some product, service, or information. • More and more often, workers are physically distant from one another, working in different parts of the country or the world, coordinating their work activities through online networks and other communication technologies. • Industrial / organizational psychology has two objectives: first, to conduct research in an effort to increase our knowledge and understanding of human work behaviour; and second, to apply that knowledge to improve the work behaviour, the work environment, and the psychological conditions of workers. • Organizational behaviour (OB) is the systematic study of the actions and attitudes that people exhibit within organizations. It is individual behaviour and group dynamics in organizations. • It has only been since the Industrial Revolution of the nineteenth century that a relatively large number of individuals have been required to work together in manager subordinate relationships. • The major step on the way to current organizational behaviour theory was the Human Relations Movement that began in the 1930s and continued in various forms until the 1950s. • The Human Relations Movement, popularized by Elton Mayo and his famous Hawthorne studies conducted at the Hawthorne Plant of the Western Electric Company, in many ways remained the foundation of much of our management thinking today. • Today it is common to picture modern management theory as a blend of the extremes of the principles contained in scientific management and human relations, with each contributing valuable insight for managing organizations. 22 CU IDOL SELF LEARNING MATERIAL (SLM)

• Regardless of one's interpretation of the Hawthorne experiments, or perceptions of their social significance, that series of investigations stand as a monumental research study in the field of organizational behaviour. • Organizational behaviour is a blended discipline that has grown out of contributions from numerous earlier fields of study. These interdisciplinary influences are the root for what is increasingly recognized as the independent discipline of organizational behaviour. 1.5 KEY WORDS • Industrial-organizational (I-O) psychology: The application of psychological principles, theory, and research to the work setting • Organizational Behaviour - Organizational behaviour is a field of study that investigates the impact that individuals, groups, and organizational structure have on behaviour within the organization, for the purpose of applying such knowledge towards improving an organizational effectiveness. • Organizational psychology: Field of psychology that combines research from social psychology and organizational behaviour and addresses the emotional and motivational side of work. 1.6 LEARNING ACTIVITY 1. Explain the role of industrial / organizational psychology in contemporary work environment. ______________________________________________________________________________ _________________________________________________________________ 2. Enlist the important landmarks in the history and development of industrial / organizational? ______________________________________________________________________________ _________________________________________________________________ 23 CU IDOL SELF LEARNING MATERIAL (SLM)

1.7 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define industrial psychology. 2. Define organizational psychology. 3. Define organizational behaviour. 4. What is industrial revolution? 5. Name any two famous people in the field of industrial / organizational psychology. Long Questions 1. Explain the different terms associated with industrial / organizational psychology? 2. Write a note on the nature of industrial / organizational psychology. 3. Explain the key events in the history of industrial / organizational psychology? 4. What is the role of industrial revolution in industrial / organizational psychology? 5. What are the goals of organizational behaviour? B. Multiple Choice Questions 1. Which of the following is not one of the three major concentrations of I-O psychology? a. personnel psychology b. industrial technology c. human engineering d. organizational psychology 2. Motivation, stress, leadership, and teamwork are addressed by: 24 CU IDOL SELF LEARNING MATERIAL (SLM)

a. personnel psychology b. industrial technology c. human engineering d. organizational psychology 3. I-O psychology is defined as: a. The influence of an individual’s personality on work and non-work behaviours. b. The application of psychological principles, theory, and research to the work setting. c. The concept of contextual work and organizational citizenship behaviour. d. The study of ways to maximize productivity. 4. Organization structure primarily refers to ________ a. How activities are coordinated & controlled b. How resources are allocated c. The location of departments and office space d. The policy statements developed by the firm 5. Hawthorne Studies is related to which stage of the organizational behaviour evolution a. Industrial revolution b. Scientific management c. Organizational behaviour d. Human relations movement Answer 1- b; 2- d; 3- c; 4- b; 5- d 25 CU IDOL SELF LEARNING MATERIAL (SLM)

1.8 REFERENCES Textbooks • Luthans, F. (1986). Organizational Behaviour. New York: McGraw Hill. • Davis, K. (1981). Human Behaviour at Work New Delhi: Tata McGraw Hill. • Ganguli, H.C. (1964). Structure and Processes of Organization. Bombay: Asia Publishing. Reference Books • Gibson, J.L., Ivancevich, J.M. &Bomnally, J.H. (1976). Organizations: Structure, Processes, Behaviour. Dollas: Business Pub. • Nilakant, V. & Ramnarayan, S. (2008). Managing Organizational Change. New Delhi: Sage Publications. • Ramnarayan, S., Rao, T.V. & Singh, K. (Eds.) (2009). Organizational Development. New Delhi: Sage Publications. • Aquinas P.G (2007) Management Principles and Practices, Bharathiyar University. • Ahmed Abad, (1972). \"Management and Organization Development\", Rachna Prakashan, New Delhi. • Arnold and Feidman, \"Organizational Behaviour\", McGraw Hill International, New York. 26 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT – 2 INTERDISCPLINARY APPROACH Structure 2.0 Learning Objectives 2.1 Introduction 2.2 Industrial / Organizational Psychology and Psychology 2.3 Industrial / Organizational Psychology and Social Psychology 2.4 Industrial / Organizational Psychology and Sociology 2.5 Industrial / Organizational Psychology and Anthropology 2.6 Industrial / Organizational Psychology and Economics 2.7 Major Fields of Industrial / Organizational Psychology 2.8 Summary 2.9 Keywords 2.10 Learning Activity 2.11 Unit End Questions 2.12 References 2.0 LEARNING OBJECTIVES After studying this unit, you will be able to, 27 • Explain the relation between organizational psychology and personal psychology • Explain the relation between organizational psychology and ergonomics CU IDOL SELF LEARNING MATERIAL (SLM)

2.1 INTRODUCTION A multidisciplinary approach in any field involves drawing theories and knowledge from multiple disciplines in an appropriate manner. This helps to redefine problems outside of normal boundaries and reach solutions based on a new understanding of complex situations. Multidisciplinary approach is often seen as revolutionary by skill-centred specialists; however, it should be considered simply as a fundamental expression where one is guided by holism and not reductionism. One of the major barriers to the multidisciplinary approach is the long-established tradition of highly focused professional practitioners cultivating a protective boundary around their area of expertise. This tradition has sometimes been found not to work to the benefit of the wider public interest. Hence, the multidisciplinary approach has recently become of interest to government agencies and some enlightened professional bodies who recognised the advantages of systems thinking for complex problem solving. The use of the term 'multidisciplinary' has in recent years been overtaken by the term 'interdisciplinary' for what is essentially holistic working by another name. The former term tends to relate to practitioner led working while the latter term tends to carry a more academic overtone. 2.2 INDUSTRIAL / ORGANIZATION PSYCHOLOGY AND PSYCHOLOGY Psychology as you know is the science that seeks to measure, explain, and sometimes change the behaviour of humans and other animals. Psychologists are primarily concerned with studying and attempting to understand individual behaviour. As long as industrial / organization psychologists are interested in studying behaviour of people at the workplace, the influence of psychology can be seen clearly. Psychology contributes most to individual-level processes. It explains how, for e.g., Individual employees perceive their jobs, respond to others, learn the skills to perform their jobs, opt for job 28 CU IDOL SELF LEARNING MATERIAL (SLM)

security over money, and so on. How they work and relate to others also depends on their beliefs about themselves, what their needs are, how satisfied they are, etc. Industrial / organization psychology borrows heavily from a number of fields within psychology itself, utilizing the facts, theories, and methods of experimental, social, cognitive, counselling, and clinical psychology. Early industrial / organization psychologists concerned themselves with the problems of fatigue, boredom, and other factors relevant to working conditions that could interfere with effective work performance. The experimental method of psychology teaches us to define the problem concretely, frame hypotheses, vary certain aspects in the conditions while holding others constant collect, and analyses data and verify/reject our hypotheses. This lends scientific rigor to the field of industrial / organization psychology. The influence of clinical and counselling psychology can be seen in attempts of industrial / organization psychologists to study issues of mental health and more recently stress at the workplace. The field of industrial / organization psychology has expanded to include learning, perception, thinking, problem solving, and information processing, clearly depicting the influence of cognitive psychology. The fundamental concepts of psychology, such as personality, intelligence, aptitude, individual differences, emotions, needs and motivational forces, etc. Have also been borrowed to the study of individuals at the workplace. 2.3 INDUSTRIAL / ORGANIZATION PSYCHOLOGY AND SOCIAL PSYCHOLOGY Social psychology is a subfield of psychology that studies the behaviour of the individual in a social context that includes other people as individuals, other people as organized systems such as groups, and the broader culture. It is in its second sense that brings it closest to industrial / organization psychology. In the 1940s, the field of industrial / organization psychology (then largely industrial psychology) added concern for the social factors at the workplace. This may be attributed in part to the interests shown by social psychologists (for e.g., Arygyris, Lewin, Sherif) in developing some scientific understanding of the nature of modern organizations. 29 CU IDOL SELF LEARNING MATERIAL (SLM)

The most notable contribution of social psychology to industrial / organization psychology lies in the ‘open systems approach’ to conceptualize organizations, given by two prominent social psychologists, Katz, and Kahn (1966). Open system refers to a continuous inflow and outflow of energy through permeable boundaries. In industrial / organization psychology terms, the boundaries of an organization are permeable to the external environment (social, economic, legal, technical, and political). The simplest open system can be depicted as: Fig 2.1 The open systems approach to organization thus assumes that organizations operate in a self- sustaining manner, transforming inputs into outputs in a continuous manner. Specific examples of inputs into a business organization include monetary, material, information, and human resources. The processes (e.g., training or manufacturing), transform the input into the output. Output is represented by the product, result, outcome, or knowledge of the system. This output gets transformed back to input and the cycle continues. Let us consider an example to illustrate this. As a productive system, a firm depends upon its environment to provide inputs, say labour and material. This then transforms by say, the process of manufacturing, to produce outputs, goods, and services. This in turn depends on the environment (e.g., Satisfaction of customers/investors) to accept. The inputs from and outputs to the environment come from and go to different subsystems in the environment: the biggest contribution of the open systems approach to industrial / organization psychology was the realization that no social structure is self-sufficient or self-contained. 30 CU IDOL SELF LEARNING MATERIAL (SLM)

An organization is certainly open to its larger external environment making its nature very dynamic. Another important area that has received considerable attention from social psychologists is change and change management. Further, social psychologists have made significant contributions in the areas of measuring, understanding, and changing attitudes, communication patterns, leadership, building trust, group behaviour, and the like. 2.4 INDUSTRIAL / ORGANIZATION PSYCHOLOGY AND SOCIOLOGY Industrial / organization psychology and sociology while psychology focuses on the individual, sociology studies people in relation to their social environment or culture. Sociologists are interested in the individual and group, but generally within the context of larger social structures and processes, such as social roles, class, gender, and socialization. Sociologists have contributed to the field of industrial / organization psychology through their study of group behaviour in organizations, particularly formal and complex organizations. From a sociological perspective, organizations are conceptualised as the totality of inter- connected positions, each having a set of roles that are defined by the rights and duties vested in the positions. Employees often play their respective roles by negotiating their idiosyncratic needs, preferences, attitudes, and expectations. The conceptualization of organization as a social system can be traced back to sociology (perhaps even before social psychology). Sociologists use a combination of quantitative methods and qualitative research designs which have also been often used by industrial / organization psychologists. Most importantly, sociology has contributed to the research on organizational culture, socialization of organizational members, structures, formal organization theory, organizational technology, and communication analysis. In fact, a separate sub field of sociology termed industrial sociology, or the sociology of work, has emerged recently. This field examines the direction and implications of trends in change, technological, global, and organizational; and the extent to which these trends are intimately related to changing patterns of inequality in modern societies. 31 CU IDOL SELF LEARNING MATERIAL (SLM)

2.5 INDUSTRIAL / ORGANIZATION PSYCHOLOGY AND ANTHROPOLOGY Industrial / organization psychology and anthropology very broadly, anthropology is the study of humankind. More narrowly, it is the study of societies to learn about human beings and their activities. Anthropology’s basic concerns are “what defines modern homo sapiens?”, “how do humans behave?”, “why are there variations and differences among different groups of humans?”, “how has the evolutionary past of homo sapiens influenced its social organization and culture?” And so on. Anthropologists’ work on cultures and environments has helped us understand differences in fundamental values, attitudes, and behaviour among people in different countries and even within different organizations. Anthropology enriches industrial / organization psychology by contextualizing it in a cultural frame. Just like a societal culture, organizations to have a culture that is a socially constructed, unseen, and unobservable force behind organizational activities. Much of our current understanding of organizational culture, organizational environments, and differences between national cultures is a result of the work of anthropologists or those using methods borrowed from anthropology. One such research method used in industrial / organization psychology is ethnography. Ethnographers study groups and/or cultures over an extended period through observer immersion into the culture or group. Industrial / organization research on organizational culture research has employed ethnographic techniques and participant observation to collect data. Given the pervasive influence of culture on human behaviour, it is no surprise that culture would also influence behaviour at the workplace. Industrial / organization psychologists have turned their attention towards examining how cultural factors influence work behaviour. This new branch is referred to as cross-cultural industrial / organization psychology. The goal of cross-cultural industrial / organization psychologists (for e.g., ere, triadic, etc.) Is to look at both universal behaviours and unique behaviours to identify the ways in which culture impacts behaviour at the workplace. Factors such as cultural diversity of the workforce, the 32 CU IDOL SELF LEARNING MATERIAL (SLM)

competitive global market, mergers and acquisitions, and emergence of high technology and telecommunication systems (most notably email) have accelerated the need for awareness of cultural differences in proposing solutions to problems of work behaviour. Values and customs prevalent in our society do not necessarily generalize to other cultures, and vice-versa. The very nature and meaning of work are not universal: what constitutes satisfying work differs across cultures. The roots of this relatively new specialty of industrial / organization psychology can be seen clearly in anthropology. The subfield of anthropology, social anthropology, that studies how contemporary living human beings behave in social groups has also contributed to the field of industrial / organization psychology. Practitioners of social anthropology investigate, often through long-term, intensive field studies, the social organization of a particular person (note that the focus of psychology would’ve been the person himself). 2.6 INDUSTRIAL / ORGANIZATION PSYCHOLOGY AND ECONOMICS Wikipedia defines economics as the “the social science that studies the production, distribution, and consumption of goods and services”. Economics touches on behaviour as it deals with the making and distribution of goods, market analyses, and predictions of what people may do next in buying stocks and bonds. The organizational phenomenon of interest that have come from economics are labour markets, product markets and their influence as part of organizational environment (you may recall economic environment as part of the larger organizational environment in conceptualizing an organization as an open system). The influence of economics on the field of industrial / organization psychology can be most strongly seen in decision making. The origins of the rational choice models of decision making (which prescribe what decision makers should do if they behave in a rational way) lie in the economic theory of expected utility. Not surprisingly, an alternative descriptive model of decision making (which identifies processes used by decision makers) – the bounded rationality model – has been proposed by Simon, an economist. Simon was even awarded a Nobel Prize for his research on decision making- in economics! In the 1960s with the advent of cognitive psychology, psychologists (such as Edwards, Tversky and 33 CU IDOL SELF LEARNING MATERIAL (SLM)

Kahneman) began to compare their cognitive models of decision making under risk and uncertainty to economic models of rational behaviour. They (Kahneman & Tversky, 1973) suggested that people often make decisions based on approximate rules of thumb, termed heuristics, not strict logic. Another notable application of a concept originally from economics that found its way in psychology is the game theory. Game theory studies strategic situations where players choose different actions to maximize their returns, given the strategies the other players choose. First developed as a tool for understanding economic behaviour by john von Neumann, game theory has also been used as a psychological model to explain much of human real-life behaviour. Industrial / organization psychology and political science political science is concerned with the theory and practice of politics and the description and analysis of political systems and political behaviour. Political scientists study matters concerning the allocation and transfer of power in decision making, the roles and systems of governance, political behaviour, and public policy. Political science is closely related to industry through its studies of institutionalized governments. But it is the domain of political behaviour in organizations that brings political science most close to industrial / organization psychology. Political science conceptualizes organizations as political systems where individuals and groups are engaged in a continuous struggle to gain greater access to valued resources and positions of power to serve their individual (and sometimes group interests). According to this perspective, all individual, group and organizational-level processes are essentially political and involve power play. Since political activity is pervasive, psychologists have also turned their attention towards understanding organizational politics and political tactics. Thus, power, organizational politics and conflict are areas clearly influenced by political science. Organizational politics deals with the study of what people do in organizations to acquire and maintain power and other resources to obtain one’s preferred outcome. More recently an interdisciplinary field dedicated to the relationship between psychology (not industrial / organization psychology) and political science- political psychology- has emerged. This focuses on the role of human thought, emotion, and behaviour in politics, i.e., ‘the 34 CU IDOL SELF LEARNING MATERIAL (SLM)

psychology of politics. Some of this work enhances understanding of political phenomena by applying basic theories of cognitive processes and social relations that were originally developed outside of the domain of politics, clearly stressing the dynamic interface between psychology and political science. Other disciplines also use industrial / organization psychology concepts on the other side, increasingly other disciplines are employing concepts from industrial / organization psychology. Somewhat surprisingly, the use of soft concepts of industrial / organization psychology is not restricted to disciplines like marketing and business administration, but also economics. Of the business disciplines, perhaps it is marketing that has the closest overlap with industrial / organization psychology. One of the primary areas of marketing is consumer research and trying to predict consumer behaviour is not that different from trying to predict employee behaviour. Consumer behaviour involves the psychological processes that consumers go through in recognizing needs, finding ways to solve these needs, making purchase decisions, and purchasing a product. In fact, consumer behaviour is nothing but ‘the psychology of marketing’. Consumer research is often required to ensure that companies produce what customers really want and not what they think customers want. The influence of psychology on economics has been responsible for a view of human behaviour that calls into question the assumption of complete rationality, the acceptance of experiments as a valid method of economic research, and the idea that utility or well-being can be measured (Frey & Stutter, 2007). This new subfield- behavioural economics- uses social, cognitive, and emotional factors in understanding the economic decisions of individuals and institutions performing economic functions, including consumers, borrowers, and investors; and their effects on market prices, returns and the resource allocation. Behavioural finance and economics rests as much on social psychology within large groups as on individual psychology. Cognitive biases may have strong effects particularly if there is social contagion of ideas and emotions (causing collective euphoria or fear) leading to phenomena such as groupthink. You can pause for a moment here and think of how collective euphoria after a ‘good budget’ leads to a bull run in the stock market. As a matter of fact, the subfields of industrial / organization psychology are not just related to each other but also have found their way in management studies. For instance, organizational behaviour (OB) is more frequently taught to students of business and management than to anyone else, with the 35 CU IDOL SELF LEARNING MATERIAL (SLM)

presupposition that those who want to make their careers in organizations should understand the complexities of human behaviour. 2.7 MAJOR FIELDS OF INDUSTRIAL/ORGANIZATIONAL PSYCHOLOGY Industrial/Organizational Psychology is a diverse field containing several subspecialties Fig 2.2 Major Fields of Industrial/Organizational Psychology Personnel Psychology The term personnel (please don’t confuse it with personal, meaning private) comes from person or people. So, personnel psychology is concerned with individual differences and therefore deals with all aspects of recruiting, selecting, and evaluating personnel. For many years (and perhaps even now) personnel psychology dominated the field of Industrial/Organizational psychology, being the oldest and most traditional activities of Industrial/Organizational psychologists. 36 CU IDOL SELF LEARNING MATERIAL (SLM)

The thrust of personnel psychology is to study a job and the traits of individuals who hold the job, and then use this information to predict what kinds of individuals would do well in the future. Among other things, personnel psychologists’ study and practice in areas as employee selection and assessment, job analysis, performance evaluation, job evaluation, etc. Many professionals working in these areas use, construct, or develop tests and other instruments that can be used to select or evaluate employees. Such tests have to be constantly evaluated to ensure that they are both fair and valid. A survey by Rassenfoss and Kraut (1988) revealed that the most common activities of personnel psychologists are: • Developing, administering and analysing employee attitude surveys • Constructing performance appraisal instruments • Validating tests • Developing employee selection tests • Conducting job analyses. Organizational Behaviour (Abbreviated as Ob) Organizational behaviour may be defined as “the study of individuals and groups in organizations” (Schermerhorn et al., 2003, p. 3). Organizational behaviour applies the scientific method to practical managerial problems. For example, if an organization is facing problems of high employee turnover (employees quitting the organization) or lack of teamwork among employees, an organizational behaviour scientist could be called in to study’s the company and give his/her recommendations for reducing turnover or improving teamwork. When applied to organizations and the people in them, the word behaviour can refer to three different levels – individual, group, and organizational. The study of organization behaviour thus involves looking at the attitudes, interpersonal relationships, performance, productivity, job satisfaction, and commitment of employees, as well as leader behaviour, organizational commitment, and even the relationship of the organization with its environment, culture, and processes. 37 CU IDOL SELF LEARNING MATERIAL (SLM)

This field of study investigates the impact that individuals, groups, and structure have on behaviour within organizations, and to apply that knowledge towards improving the organization’s effectiveness (Robbins, 1991). In contrast to personnel psychology that focuses more on individual-level issues; organizational behaviour is more concerned with social and group influences. Ergonomics This branch (also called engineering psychology) is concerned with modifying the work environment in order to be compatible with human skills and talents. The engineering psychologist addresses the human issues of organization through the design of machinery and tools that take human limitations specifically into account. Psychologists in this area are involved in workplace design, man-machine interactions, design of equipment and machinery, to minimize fatigue and stress and to maximize productivity and safety. Such psychologists often work together with engineers and other technical professionals for activities such as designing of displays for airplane cockpits and automobile dashboards, computer keyboards, or home appliances that can be operated safely and efficiently. Vocational and Career Counselling A cross between counselling and I/O psychology, career counselling is a branch that assists individuals in making decisions about their lifelong roles in the world of work and in solving problems that arising in the course of this choice process (Crites, 1969). Through vocational counselling, individuals can determine the career path that is right for them or may even be able to identify a new career they had not previously considered. They can also develop a search strategy to find a job once the best career path is determined. Career counsellors may also administer personality, interest, or aptitude assessment tests to evaluate individual career potential. They may also attempt to resolve conflicts between work and non-work interests and prepare individuals for retirement. Organization Development (Abbreviated as Od) 38 CU IDOL SELF LEARNING MATERIAL (SLM)

Organization development is a long-range, systematic effort, usually supported by to management, to improve an organization’s problem-solving and renewal processes in an organization, with the assistance of a change agent or catalyst and the use of the theory and technology of applied behavioural science (French & Bell, 1984). Psychologists in this area are focused on understanding and managing organizational change; the change may involve people, work procedures, or technology. A few examples of interventions include team building, sensitivity training, leadership development, Total Quality Management, to name a few. Industrial Relations The term industrial relations are made up of two components–industry and relations, and hence addresses the relationship between management and employees, particularly groups of workers represented by a union. Traditionally, industrial relations are used to cover such aspects of industrial life as trade unionism, collective bargaining, workers’ participation in management, discipline and grievance handling, industrial disputes, and interpretation of labour laws and rules and code of conduct. Industrial relations are heavily legislated, hence, a psychologist working in this area must have adequate knowledge of such laws. 2.8 SUMMARY • A multidisciplinary curriculum is one in which the same topic is studied from the viewpoint of more than one discipline. • An approach to curriculum integration which focuses primarily on the different disciplines and the diverse perspectives they bring to illustrate a topic, theme, or issue. • Frequently multidisciplinary and cross disciplinary are used as synonyms describing the aim to cross boundaries between disciplines. • Study of organizational behaviour cannot be undertaken in single discipline, it is necessary to provide multidisciplinary, behavioural science perspective to it. • Although there are areas of overlap among the various social sciences, their sub- divisions, and related disciplines such as economics and political science, the study of behaviour can be viewed in terms of three main disciplines – psychology, sociology, and anthropology. 39 CU IDOL SELF LEARNING MATERIAL (SLM)

• All three disciplines have made an important contribution to the field of organizational behaviour. • Psychologists are concerned, broadly speaking, with the study of human behaviour, with traits of the individual and membership of small social groups. The main focus of attention is on the individual as a whole person, or what can be termed the ‘personality system’, including, for example, perception, attitudes, and motives. • Sociologists are more concerned with the study of social behaviour, relationships among social groups and societies, and the maintenance of order. The main focus of attention is on the analysis of social structures and positions in those structures – for example, the relationship between the behaviour of leaders and followers. • Anthropologists are more concerned with the science of humankind and the study of human behaviour as a whole. As far as organizational behaviour is concerned the main focus of attention is on the cultural system, the beliefs, customs, ideas and values within a group or society, and the comparison of behaviour among different cultures 2.9 KEYWORDS • Personnel psychology: Field of psychology that addresses issues such as recruitment, selection, training, performance appraisal, promotion, transfer, and termination. • Social psychology: the branch of psychology that deals with social interactions, including their origins and their effects on the individual. • Anthropology: the study of human societies and cultures and their development. 2.10 LEARNING ACTIVITY 1. No field operates in isolation. Explain how industrial / organizational psychology exchanges learning from other fields? ______________________________________________________________________________ _________________________________________________________________ 40 CU IDOL SELF LEARNING MATERIAL (SLM)

2. How you as an industrial / organizational student apply the theory of any one field into practice? ______________________________________________________________________________ _________________________________________________________________ 2.11 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define social psychology. 2. Define sociology. 3. Define anthropology. 4. Define Economics 5. What are the major fields of Industrial / Organizational Psychology? Long Questions 1. Explain the relation between Industrial / Organizational Psychology and Social Psychology. 2. Explain the relation between Industrial / Organizational Psychology and Psychology. 3. Explain the relation between Industrial / Organizational Psychology and Sociology. 4. Explain the relation between Industrial / Organizational Psychology and Anthropology. 5. Explain the relation between Industrial / Organizational Psychology and Economics. 41 CU IDOL SELF LEARNING MATERIAL (SLM)

B. Multiple Choice Questions 1. In I-O psychology, field studies are often non-experimental in design. All of the following help explain the popularity of non-experimental field studies except: a. The extent to which a laboratory experiment can reasonably simulate “work” is limited. b. Laboratory experiments are more likely to use samples that are not representative of the population to which I-O psychologists would like to generalize. c. Non-experimental designs in the field are most effective in leading to causal explanations. d. In the field, workers can seldom be randomly assigned to conditions or treatments. 2. ___________ methods rely heavily on tests, rating scales, questionnaires, and physiological measures, while ___________ methods of investigation generally produce flow diagrams and narrative descriptions of events or processes. a. Objective; Subjective b. Subjective; Objective c. Qualitative; Quantitative d. Quantitative; Qualitative 3. Forces affecting organizational behaviour are 42 a. People CU IDOL SELF LEARNING MATERIAL (SLM)

b. Environment c. Technology d. All of these 4. Organizational behaviour is a. A science b. An art c. Science as well as an art d. None of these 5. Which of the following represents the correct sequencing of historical developments of Organizational Behaviour? a. Industrial revolution —> Scientific management –> Human relations movement –> OB b. Industrial revolution —> Human relations movement —> Scientific management –> OB c. Scientific management —> Human relations movement –> Industrial revolution –> OB d. None of these. Answer 1- c, 2- d, 3- d, 4- c, 5- a 43 CU IDOL SELF LEARNING MATERIAL (SLM)

2.12 REFERENCES Textbooks • Luthans, F. (1986). Organizational Behaviour. New York: McGraw Hill. • Davis, K. (1981). Human Behaviour at Work New Delhi: Tata McGraw Hill. • Ganguli, H.C. (1964). Structure and Processes of Organization. Bombay: Asia Publishing. Reference Books • Gibson, J.L., Ivancevich, J.M. &Bomnally, J.H. (1976). Organizations: Structure, Processes, Behaviour. Dollas: Business Pub. • Nilakant, V. &Ramnarayan, S. (2008). Managing Organizational Change. New Delhi: Sage Publications. • Ramnarayan, S., Rao, T.V. & Singh, K. (Eds.) (2009). Organizational Development. New Delhi: Sage Publications. • Aquinas P.G (2007) Management Principles and Practices, Bharathiyar University. • Ahmed Abad, (1972). \"Management and Organization Development\", Rachna Prakashan, New Delhi. • Arnold and Feidman, \"Organizational Behaviour\", McGraw Hill International, New York. 44 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT – 3 MODELS OF ORGANIZATION BEHAVIOUR: PART – I Structure 3.0 Learning Objectives 3.1 Introduction 3.2 Organization Behaviour Model 3.3 Bureaucratic Model 3.4 Summary 3.5 Keywords 3.6 Learning Activity 3.7 Unit End Questions 3.8 References 3.0 LEARNING OBJECTIVES After studying this unit, you will be able to, • Explain the different models of Organizational Psychology • Elaborate the Organizational Behaviour Model of Organizational Psychology • Elaborate the Bureaucratic model of Organizational Psychology 3.1 INTRODUCTION It is essential to increase overall efficiency of human beings to improve performance of an organization. While machines, processes, technology of high order can be made available to the individuals, but high productivity can only be achieved if workers are highly skilled and adequately motivated. Motivation perhaps is a single most important factor of the study of organizational behaviour that concerns each and every executive today. As you already know by now, organizational behaviour is the study and application of knowledge about how people, individuals, and groups act in organizations. It does this by taking 45 CU IDOL SELF LEARNING MATERIAL (SLM)

a system approach, that is, it interprets people-organization relationships in terms of the whole person, whole group, whole organization, and whole social system. Its purpose is to build better relationships by achieving human objectives, organizational objectives, and social objectives. All these elements combine to build the model or framework that the organization operates from. In contemporary times, managers confront many challenges and opportunities. These challenges are the result of environmental changes occurring due to factors such as globalization, information technology, quality consciousness, workforce diversity, and ethics. Organizational behaviour models help managers to face these challenges and take appropriate actions. 3.2 ORGANIZATIONAL BEHAVIOUR MODEL OB considers that organizations are made up of levels, moving up from the individual to the group, to the entire organizational structure. Each level contributes to the variety of activities that occur in today's workplace. The three basic levels are like building blocks: Each level is constructed upon the previous level. Individual level Organizational behaviour views the organization as an individual's behaviour. It studies the individual behaviour of people how they react to organizational plans, policies, etc. Psychological theories like learning, motivation, and leadership are also considered to the study of the behaviour of an individual. It has also studied the factor like learning, perception, belief, and attitude of each individual. OB studies the impact of psychological factors upon behaviour and job performance at an individual level. Challenges of Individual level At the individual level, managers and employees need to learn how to work with people who may be different from themselves in a variety of dimensions, including personality, perception, values, and attitudes. Individuals also have different levels of job satisfaction and motivation, and these affects how managers manage employees. 46 CU IDOL SELF LEARNING MATERIAL (SLM)

Individual Differences People enter groups and organizations with certain characteristics that influence their behaviour, the more obvious of these being personality characteristics, perception, values, and attitudes. These characteristics are essentially intact when an individual joins an organization, and for the most part, there is little that those in the organization can do to alter them. Yet they have a very real impact on behaviour. Job Satisfaction Employees are increasingly demanding satisfying jobs. The belief that satisfied employees are more productive than dissatisfied employees has been a basic assumption among managers for years. Although there is evidence that questions that causal relationship, it can be argued that society should be concerned not only with the quantity of life—that is, with concerns such as higher productivity and material acquisitions—but also with its quality. Researchers with strong humanistic values argue that satisfaction is a legitimate objective of an organization. They believe that organizations should be responsible for providing employees with jobs that are challenging and intrinsically rewarding. B. Group Level It has studied, how the group interacts with each other? How do they work? What types of the task the groups are performing? How does leadership influence the group etc.? OB studies the impact of social and psychological group behaviour factors on the behaviour and performance of groups at the group level. The organization consists of a group, teams that work together in full co-operation and co-ordination of each other. OB at the group level focuses on group interaction among members. It is highly concerned with social psychology theories working in a group as it studies. C. Organizational system Level It has studied the behaviour of an organization as a whole. To study the organization, it applies the knowledge of behavioural science. Organizational behaviour has tried to analyse how 47 CU IDOL SELF LEARNING MATERIAL (SLM)

organizational structure designs technology influences organizational effectiveness. It tries to focus on the relationship between the organization and the environmental factors that directly or indirectly affect the organization. 3.3 BUREAUCRATIC MODEL A) Definition: The bureaucratic management theory, introduced by Max Weber stated that to manage an organization efficiently, it is essential to have a clear line of authority along with proper rules, procedures, and regulations for controlling each business operation. Bureaucracy refers to the possessing of control over a group of people or activities through knowledge, power, or authority. This theory focuses on the following two primary criteria: • Developing a hierarchical system in the organization. • Defining clear procedures, methods, rules, and regulations to carry out business operations and transactions. B). Max Weber and His Bureaucracy Theory Max Weber (1864-1920) was a German sociologist and a political economist, and he came forward with the concept of bureaucracy in management. Weber believed that there could be only three kinds of power in the organization: Traditional: In traditional authority, the workers (considered as servants) are dependent upon the leader (lord) working as their servants and following the stated rules and regulations blindly. Charismatic: Under charismatic power, due to the extraordinary personality of the managers, the workers are deeply motivated to perform their best on the task allotted to them. However, this charisma may fade away with the manager’s lay off, resignation or demise. 48 CU IDOL SELF LEARNING MATERIAL (SLM)

Legal-Rational: In legal-rational power, the workers either need to abide by the legal rules or the naturally applicable laws. In short, the entire employee needs to follow a consistent set of principles. Thus, Weber developed the bureaucratic management theory, where he emphasized a formal organizational structure. Proper hierarchy is maintained, and hence a clear set of six principles were framed. C). Principles of Bureaucratic Theory Government organizations majorly adopted Max Weber’s bureaucracy theory. Weber gave the following six principles for managing an organization effectively and efficiently: Figure 3.1 Principles of Bureaucratic Theory Authority Hierarchy Weber proposed that there should be a systematic hierarchy in the organization, defining the position of each employee from top to the lowest level. In such a system, each employee knows whom they have to report, whose orders they need to follow, and what is the role of different personnel in the organization. Formal Rules and Regulations There should be a clear set of principles, procedures, rules, and regulations in written form, to be followed universally by everyone working in the organization irrespective of their position. 49 CU IDOL SELF LEARNING MATERIAL (SLM)

Division of Labour The whole work should be assorted into smaller task sets to ascertain that every set of tasks is assigned to the right person, i.e., the one who has the capability of fulfilling it. This not only improves work efficiency but also ensures proper allocation of job responsibilities. Career Orientation Another essential principle is that management should motivate employees to build a long-term career in the organization by providing job security and performance-based incentives to them. Impersonality In an organization, impersonal relations develop among the employees, which may lead to favouritism or nepotism. Weber said that the application of rules and managerial decisions should be impartial and independent of such relations. Moreover, these decisions must be based on rational and practical grounds rather than emotional or impersonal influence. Formal Selection Process Weber believed that the workers should be recruited through their technical skills and expertise instead of the 'first come first selected' basis. Even the promotion should be based on performance and merit. This not only leads to better productivity but also adds to employee's growth and satisfaction. D). Advantages of Bureaucracy Weber's bureaucracy theory has been widely applied in the era of the 1900s by business entities, government organizations, and political associations. The benefits of this approach are explained in detail below: Specialization or Expertise: In bureaucracy management, the work is divided among the 50 CU IDOL SELF LEARNING MATERIAL (SLM)