102 –Organization Behaviour

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Semester I 102 - Organizational Behaviour
3 Credits LTP: 2:1:1 Compulsory Generic Core Course

Course Outcomes: On successful completion of the course the learner will be able to
CO# COGNITIVE ABILITIES COURSE OUTCOMES
CO102.1 REMEMBERING DESCRIBE the major theories, concepts, terms, models, frameworks and
research findings in the field of organizational behavior.
CO102.2 UNDERSTANDING EXPLAIN the implications of organizational behavior from the perspectives of
employees, managers, leaders and the organization.
CO102.3 APPLYING MAKE USE OF the Theories, Models, Principles and Frameworks of
organizational behavior in specific organizational settings.
CO102.4 ANALYSING DECONSTRUCT the role of individual, groups, managers and leaders in
influencing how people behave and in influencing organizational culture at
large.
CO102.5 EVALUATING FORMULATE approaches to reorient individual, team, managerial and
leadership behaviour inorder to achieve organizational goals.
CO102.6 CREATING ELABORATE UPON the challenges in shaping organizational behavior,
organizational culture and organizational change.

1. Fundamentals of OB: Evolution of management thought , five functions of management,

Definition, scope and importance of OB, Relationship between OB and the individual, Evolution of OB,
Models of OB (Autocratic, Custodial, Supportive, Collegial & SOBC), Limitations of OB. Values,
Attitudes and Emotions: Introduction, Values, Attitudes, Definition and Concept of Emotions,
Emotional Intelligence - Fundamentals of Emotional Intelligence, The Emotional Competence
Framework, Benefits of Emotional Intelligence , difference between EQ and IQ. Personality & Attitude:
Definition Personality, importance of personality in Performance, The Myers-Briggs Type Indicator and
The Big Five personality model, Johari Window , Transaction Analysis , Definition Attitude Importance
of attitude in an organization, Right Attitude, Components of attitude, Relationship between behavior and
attitude. (7+2)
2. Perception: Meaning and concept of perception, Factors influencing perception, Selective
perception, Attribution theory, Perceptual process, Social perception (stereotyping and halo effect).
Motivation: Definition & Concept of Motive & Motivation, The Content Theories of Motivation
(Maslow’s Need Hierarchy & Herzberg’s Two Factor model Theory), The Process Theories (Vroom’s
expectancy Theory & Porter Lawler model), Contemporary Theories- Equity Theory of Work Motivation.
(8+2)
3. Group and Team Dynamics : The Meaning of Group & Group behavior & Group Dynamics,
Types of Groups, The Five -Stage Model of Group Development Team Effectiveness & Team Building.
Leadership: Introduction, Managers V/s Leaders. Overview of Leadership- Traits and Types,
Theories of Leadership.- Trait and Behavioral Theories. (8+2)
4. Conflict Management – Definition and Meaning, Sources of Conflict, Types of Conflict,
Conflict Management Approaches. Organizational Culture: Meaning and Nature of Organization
Culture - Origin of Organization Culture, Functions of Organization Culture, Types of Culture,
Creating and Maintaining Organization Culture, Managing Cultural Diversity. (7+2)
5. Stress at workplace: Work Stressors – Prevention and Management of stress – Balancing work
and Life, workplace spirituality. Organizational Change: Meaning, definition & Nature of
Organizational Change, Types of Organizational change, Forces that acts as stimulants to change. Kurt
Lewin’s- Three step model, How to overcome the Resistance to Change, Methods of Implementing
Organizational Change, Developing a Learning Organization. (5+2)
Note: Evolution of Management thought to OB and functions of management to be covered in brief
as a background interface to the subject only

Suggested Text Books:

1. Organizational Behaviour, Robins
2. Organizational Behaviour, Nelson & Quick
3. Organizational Behaviour, Fred Luthans
4. Organizational Behaviour, Stephen Robins, Timothy Judge, Neharika Vohra
5. Organizational Behaviour, M N Mishra
6. Organizational Behaviour, K Ashwathappa

Suggested Reference Books

1. Understanding OB, Uday Pareek
2. Change & Knowledge Management, Janakiram, Ravindra and Shubha Murlidhar
Human Resource Management, Nkomo, CENGAGE Learning

Unit 1: Organizational Behaviour

Definition-Scope & Importance: Organizational Behavior (OB) is the

study of human behavior in organizational settings, the interface
between human behavior and the organization.

Organizational behavior (OB) is the study of how people act within

groups. Its principles are applied primarily in attempts to make
businesses operate more effectively.

The study of organizational behavior, thus, involves four key

elements; (i)People. (Ii)Structure, (iii)Technology and (iv) Environment
in which the organization operates.

People: People make up the internal and social systems of

the organization.
Structure: Structure defines the formal relationships of the people in
organizations.

OB gives insight of how employees behave and perform in the

workplace. It helps to develop an understanding of the aspects that can
motivate employees, increase their performance, and help
organizations to establish a strong and trusting relationship with their
employees.

OB is related to individuals, group of people working together in

teams. OB becomes more challenging when situational factors
interact. It relates to the expected behaviour of an individual in the
organization.

No two individuals are likely to behave in the same manner in a

particular work situation. It is the predictability of a manager about
the expected behaviour of an individual. There are no absolutes in
human behaviour. It is the human factor that is contributory to the
productivity hence to know about human behaviour is important.

Management must understand the credentials of an individual,

his/her background, social framework, educational level, impact of
social groups and other situational factors on behaviour.

Managers under whom an individual is working should be able to

predict, evaluate and modify human behaviour that will largely
depend upon knowledge, skill and experience of the manager in
handling large group of people in diverse situations.

The value system, emotional intelligence, organizational culture, job

design and the work environment are important factors in
determining human behaviour. Cause and effect relationship plays an
important role in how an individual is likely to behave in a particular
situation and its impact on productivity.
Definitions: (i) K Aswathappa, “OB is the study of human behaviour in
organisational setting, of the interface between human behaviour and
organisation and of the organisation itself.”

(ii)Stephen P. Robbins, “OB is a field of study that investigates the

impact that individuals, groups and structures have on behaviour
within organisations for the purpose of applying such knowledge
towards improving an organisation’s effectiveness.”

(iii)L. M. Prasad, “Organisational behaviour can be defined as the

study and application of knowledge about human behaviour related to
other elements of an organisation such as structure, technology and
social systems.”

(iv) Davis and Newstram, “Organisational behaviour is the study and

application of knowledge about how people act within organisations.”

(v)Fred Luthans, “Behaviour is directly concerned with the

understanding, prediction and control of human behaviour in
organisations.”

(vi)John Newstram and Keith Devis, “Organisational behaviour is the

study and application of knowledge about how people as individuals
and as groups act within organisations. It strives to identify ways in
which people can act more effectively.”

Factors Affecting Individual/Group Behaviour: Personality,

perception, learning, attitude, family background, training,
motivation, job satisfaction, performance appraisal, leadership
effectiveness, norms, values and ethics are the factors which affect the
individual behaviour.

Group dynamics, communication, organisational environment,

individual and organisational culture affect group behaviour.
Organisational structure, power & politics, status, relation with juniors
& seniors, conflicts and culture affect the individual behaviour in the
organisation.
organisational behaviour gives a knowledge about:
i. Why people behave in a way?
ii. Why one person is more effective than the other?
iii. Why one group is more effective than the other?
iv. Why one person is more effective in one organisation as compared
to the other organisations?

Knowledge about above factors can be applied in shaping the

behaviour and taking various decisions related to policy making in
human resource management.

Scope of OB:
1)Job design
2)Perception
3)Leadership
4)Group behaviour
5)Study of emotions
6)Study of emotions
7)Employee motivation
8)Transactional analysis
9)Organizational culture
10)Management of change
11)Organizational development
12)Management of conflict and stress
13)Impact of personality on performant
14)Development of effective organization
15)How to create effective teams and groups
16)Study of different organizational structures
17)Individual behaviour, attitude and learning
18)Impact of culture on organizational behaviour
Organizations have been set up to fulfil needs of the people. In today’s
competitive world, the organizations must be growth- oriented. This is
possible when productivity is ensured with respect to quantity of
product to be produced with zero error quality. Employee absenteeism
and turnover has a negative impact on productivity.

Employee who absents frequently cannot contribute towards

productivity and growth of the organization. In the same manner,
employee turnover causes increased cost of production. Job
satisfaction is a major factor to analyse performance of an individual
towards his work. Satisfied workers are productive workers who
contribute towards building an appropriate work culture in an
organization.

Organizations are composed of number of individuals working

independently or collectively in teams, and number of such teams
makes a department and number of such departments makes an
organization. It is a formal structure and all departments must
function in a coordinated manner to achieve the organizational
objective. It is therefore important for all employees to possess a
positive attitude towards work. They need to function in congenial
atmosphere and accomplish assigned goals. It is also important for
managers to develop an appropriate work culture. Use of authority,
delegation of certain powers to subordinates, division of labour,
efficient communication. Benchmarking, re-engineering, job re-design
and empowerment are some of the important factors so that an
organization can function as well-oiled machine. This is not only
applicable to manufacturing organizations but also to service and
social organizations.

Models of Organizational Behaviour:

a) Autocratic Model- The root level of this model is power with a

managerial orientation of authority. ...
b) Custodial Model- The root level of this model is economic resources
with a managerial orientation of money. ...

c)Supportive Model- The supportive model approach states that

employees are self-motivated and have value and insight to contribute
to the organization, beyond just their day-to-day role. It is built around
the concept of leadership.

d)Collegial Model- Collegial refers to a highly co-operative set of people

working together by dividing the labour among themselves for the sake
of efficient working and to achieve organisational goals. This model is a
sensible extension of the concepts proposed by a supportive model of
organisational behaviour

e) System Model- In the system model, the organisation looks at the

overall structure and team environment, and considers that individuals
have different goals, talents and potential. The intent of the system
model is to try and balance the goals of the individual with the goals of
the organisation.

a) Autocratic Model: It is the model that depends upon strength, power

and formal authority.
In an autocratic organisation, the people (management/owners) who
manage the tasks in an organisation have formal authority for
controlling the employees who work under them. These lower-level
employees have little control over the work function. Their ideas and
innovations are not generally welcomed, as the key decisions are made
at the top management level.
The guiding principle behind this model is that management/owners
have enormous business expertise, and the average employee has
relatively low levels of skill and needs to be fully directed and guided.
This type of autocratic management system was common in factories in
the industrial revolution era.
One of the more significant problems associated with the autocratic
model is that the management team is required to micromanage the
staff – where they must watch all the details and make every single
decision. Clearly, in a more modern-day organisation, where highly paid
specialists are employed an autocratic system becomes impractical and
highly inefficient.
The autocratic model is also a detractor to job satisfaction and
employee morale. This is because employees do not feel valued and
part of the overall team. This leads to a low-level of work performance.
While the autocratic model might be appropriate for some very
automated factory situations, it has become outdated for most
modern-day organisations.

b) Custodial Model: It is based around the concept of providing

economic security for employees – through wages and other benefits –
that will create employee loyalty and motivation.
In some countries, many professional companies provide health
benefits, corporate cars, financial packaging of salary, and so on – these
are incentives designed to attract and retain quality staff.
The underlying theory for the organisation is that they will have a
greater skilled workforce, more motivated employees, and have a
competitive advantage through employee knowledge and expertise.
One of the downsides with the custodial model is that it also attracts
and retains low performance staff as well. Or perhaps even deliver a
lower level of motivation from some staff who feel that they are
“trapped” in an organisation because the benefits are too good to
leave.

c)Supportive Model: Unlike the two earlier approaches, the supportive

model is focused around aspiring leadership.
It is not based upon control and authority (the autocratic model) or
upon incentives (the custodial model), but instead tries to motivate
staff through the manager-employee relationship and how employees
are treated on a day-to-day basis.
Quite opposite to the autocratic model, this approach states that
employees are self-motivated and have value and insight to contribute
to the organisation, beyond just their day-to-day role.
The intent of this model is to motivate employees through a positive
workplace where their ideas are encouraged and often adapted.
Therefore, the employees have some form of “buy-in” to the
organisation and its direction.

d)Collegial Model: It is based around teamwork – everybody working as

colleagues. The overall environment and corporate culture need to be
aligned to this model, where everybody is actively participating – is not
about status and job titles – everybody is encouraged to work together
to build a better organisation.
The role of the manager is to foster this teamwork and create positive
and energetic workplaces. In much regard, the manager can be the
“coach” of the team. And as coach, the goal is to make the team
perform well overall, rather than focus on their own performance, or
the performance of key individuals.
The collegial model is quite effective in organisations that need to find
new approaches – marketing teams, research and development,
technology/software – indeed anywhere the competitive landscape is
constantly changing and ideas and innovation are key competitive
success factors.

e) System Model : The final organisational model is referred to as the

system model.
This is the most contemporary model of the five models discussed in
this article. In the system model, the organisation looks at the overall
structure and team environment, and considers that individuals have
different goals, talents and potential.
The intent of the system model is to try and balance the goals of the
individual with the goals of the organisation.
Individuals obviously want good remuneration, job security, but also
want to work in a positive work environment where the organisation
adds value to the community and/or its customers.
The system of model should be an overall partnership of managers and
employees with a common goal, and where everybody feels that they
have a stake in the organisation.

Core Values of OB: Core values are a set of statements that explain

the organization’s beliefs about people, work and non-
negotiable behaviors’. Organizational core values help employees
understand how they should treat each another at work and how they
should treat customers and clients.

Generally, value has been taken to mean moral ideas, general

conceptions or orientations towards the world or sometimes simply
interests, attitudes, preferences, needs, sentiments and dispositions.

It is important and lasting beliefs or ideals shared by the members of a

culture about what is good or bad and desirable or undesirable.

It has a major influence on a person’s behavior and attitude and serves

as broad guidelines in all situations. The value represents basic
convictions that a specific mode of conduct or end-state of existence is
personally or socially preferable to an opposite or converse mode of
conduct or end-state of existence.

Definition : Values are defined in Organizational Behavior as the

collective conceptions of what is considered good, desirable, and
proper or bad, undesirable, and improper in a culture.
Some common business values are fairness, innovations and
community involvement.
i)According to M. Haralambos, “A value is a belief that something is
good and desirable”.

ii)According to R.K. Mukherjee, “Values are socially approved desires

and goals that are internalized through the process of conditioning,
learning or socialization and that become subjective preferences,
standards, and aspirations”.

iii)According to Zaleznik and David, “Values are the ideas in the mind of
men compared to norms in that they specify how people should
behave. Values also attach degrees of goodness to activities and
relationships”

iv)According to I. J. Lehner and N.J. Kube, “Values are an integral part of

the personal philosophy of life by which we generally mean the system
of values by which we live. The philosophy of life includes our aims,
ideals, and manner of thinking and the principles by which we guide our
behavior”

v)According to T. W. Hippie, “Values are conscious or unconscious

motivators and justifiers of the actions and judgment”

Familiar examples of values are wealth, loyalty, independence, equality,

justice, fraternity and friendliness. These are generalized ends
consciously pursued by or held up to individuals as being worthwhile in
them.

Characteristics of Value: Values are different for each person. These can
be defined as ideas or beliefs that a person holds desirable or
undesirable. The variability in that statement is, first, what a person
could value, and second, the degree to which they value it. Values may
be specific, such as honoring one’s parents or owning a home or they
may be more general, such as health, love, and democracy.

Individual achievement, personal happiness, and materialism are major

values of modem industrial society. It is defined as a concept of the
desirable, an internalized creation or standard of evaluation a person
possesses.
Such concepts and standards are relatively few and determine or guide
an individual’s evaluations of the many objects encountered in
everyday life.

The characteristics of values are:

These are extremely practical, and valuation requires not just
techniques but also an understanding of the strategic context.
These can provide standards of competence and morality.
These can go beyond specific situations or persons.
Personal values can be influenced by culture, tradition, and a
combination of internal and external factors.
These are relatively permanent.
These are more central to the core of a person.

Values are loaded with effective thoughts about ideas, objects,

behavior, etc.

They contain a judgmental element in that they carry an individual’s

ideas as to what is right, good, or desirable.

Values can differ from culture to culture and even person to person.

Values play a significant role in the integration and fulfillment of man’s

basic impulses and desire stably and consistently appropriate for his
living.
They are generic experiences in social action made up of both individual
and social responses and attitudes.

They build up societies, integrate social relations.

They mold the ideal dimensions of personality and depth of culture.

They influence people’s behavior and serve as criteria for evaluating the
actions of others.

They have a great role to play in the conduct of social life. They help in
creating norms to guide day-to-day behavior.

The values of a culture may change, but most remain stable during one
person’s lifetime.

Socially shared, intensely felt values are a fundamental part of our lives.

These values become part of our personalities. They are shared and
reinforced by those with whom we interact.

Since values often strongly influence both attitude and behavior, they
serve as a kind of personal compass for employee conduct in the
workplace.

These help to determine whether an employee is passionate about

work and the workplace, which in turn can lead to above-average
returns, high employee satisfaction, strong team dynamics, and
synergy.

Types of Values: There are two types of values;

a) Terminal Values- (TV) is the value of a business or project beyond

the forecast period when future cash flows can be estimated. Terminal
value assumes a business will grow at a set growth rate forever after
the forecast period. Terminal value often comprises a large percentage
of the total assessed value. Like family security, national security, and
salvation (the act of preserving or the state of being preserved from
harm. a person or thing that is the means of preserving from harm).
etc.

b) Instrumental Values- Instrumental values can be defined as specific

methods of behavior.  Like being polite, obedient, and self-controlled.
Examples of terminal values include family security, national security,
and salvation.

Values are the enduring beliefs that a specific mode of conduct or end-
state of existence is personally or socially preferable. These are more
difficult to change or alter.

Values are general principles to regulate our day-to-day behavior. They

not only give direction to our behavior but are also ideals and
objectives in themselves. They are the expression of the ultimate ends,
goals or purposes of social action.

Our values are the basis of our judgments about what is desirable,
beautiful, proper, correct, important, worthwhile and good as well as
what is undesirable, ugly, incorrect, and improper .

i)Durkheim who was a sociologist emphasized the importance of values

in controlling disruptive individual passions.
He also stressed that values enable individuals to feel that they are part
of something bigger than themselves.

ii)E. Shils also emphasized the importance of values in controlling

disruptive individual passions.
iii)R.K. Mukherjee Indian sociologist writes: “By their nature, all human
relations and behavior are embedded in values.

Values and morals can not only guide but inspire and motivate a
person, give energy and a zest for living and for doing something
meaningful.

Values are important to the study of organizational behavior because

they lay the foundation for the understanding of attitudes and
motivation. Individuals enter an organization with preconceived notions
of what “ought” or what “ought not” to be. Of course, these notions
are not value free.

As we grow and change as individuals, we will begin to value different

aspects of life. If we value- family when we are younger, as our children
get older, we might start to value success in business more than the
family.

Sources of Values: Sources of values are;

Family: Family is a great source of values. A child learns his first value

from his family.

Friends & peers: Friends and peers play a vital role in achieving values.

Community or society: As a part of society, a person learns values from

society or different groups of society.

School: As a learner, school and teachers also play a very important role
in introducing values.

Media: Media such as – Print media, Electronic media also play the role
of increasing values in the mind of people.
Relatives: Relative also helps to create values in the minds of people.
Organization: Different organizations and institutions also play a vital
role in creating value.

Likewise, Religion, History., Books, Others has also plays role in value as
a source

Values and Beliefs: Values are socially approved desires and goals that
are internalized through the process of conditioning, learning or
socialization and that become subjective preferences, standards, and
aspirations.
They focus on the judgment of what ought to be. This judgment can
represent the specific expression of the behavior.
They are touched with moral flavor, involving an individual’s judgment
of what is right, good, or desirable.
Thus- Values provide standards of competence and morality.

Beliefs are the convictions that we generally hold to be true, usually

without actual proof or evidence.
They are often, but not always connected to religion. Religious beliefs
could include a belief that God is alone and created the earth.

Nonreligious beliefs could include: that all people are created equal,
which would guide us to treat everyone regardless of sex, race, religion,
age, education, status, etc with equal respect.
Conversely, someone might believe that all people are not created
equal. These are basic assumptions that we make about the world and
our values stem from those beliefs.
Our values are things that we deem important and can include
concepts like equality, honesty, education, effort, perseverance, loyalty,
faithfulness, conservation of the environment and many, many other
concepts.
Our beliefs grow from what we see, hear, experience, read and think
about
From these things, we develop an opinion that we hold to be true and
unmovable at that time.
Everyone has an internalized system of beliefs that they have
developed throughout their lives.

Values in Workplace: Values can strongly influence employee conduct

in the workplace. If an employee values honesty, hard work, and
discipline, for example, he will likely try to exhibit those traits in the
workplace.
This person may, therefore, be a more efficient employee and a more
positive role model to others than an employee with opposite values.
Conflict may arise, however, if an employee realizes that his co-workers
do not share his values. eg. an employee who values hard work may
dislike co-workers who are lazy or unproductive without being
reprimanded.
Even so, additional conflicts can result if the employee attempts to
force his own values on his co-workers.

Values and Attitudes: We can control our behavior in a way that does
not reflect our beliefs and values, which in order to embrace a diverse
culture and behaviors as a successful manager; we must adapt our
behavior in a positive manner.
There are some similarities and differences between values and
attitudes.
Human Resource Function:
Human Resource Philosophy – HR philosophy revolves around
management's beliefs and assumptions about people – their nature,
needs, value and their approach to work. These beliefs and
assumptions, then determine how people should be treated.
The HR Management Philosophy is not mainly about Human Resources
Function. It is more about the leadership style of the top management,
the current corporate culture and values. It is about the vision of the
leader of the organization. The modern leader usually requires a modern
HR Management approach and builds the environment suitable for the
evolution of the modern HR Management. This is the HR Management
Philosophy behind the scene.

The development of the HR Management Philosophy is a long term

process. The philosophy is usually informal and respects values and
opinions of the main stakeholders. The leader of the organization has a
significant influence on the HR Philosophy. The HR Leader is the next
one influencing the philosophy significantly.

The informality of the HR Management Philosophy is important. It

differentiates it from the HR Strategy. The philosophy is the set of
values, behaviour and practices. The practices are extremely crucial for
the leader. The leader is not interested in written formal HR policies.
The leader is interested in the real decision processes in the organization.
They can be different from the written rules (as people do not follow
them, they follow the philosophy).

The main factors influencing the HR philosophy in the organization are:

i)Leadership Style
ii)Corporate Culture
iii)Corporate Values
iv)Market Competition

The leadership style is extremely important. The leaders of the

organization are the role models for managers and employees. The
manager always try to act as the leader does. The behaviour is observed
and spread across the entire organization. The leader sets the basic
expectations from all employees and managers. They adjust their
behaviour to be fully compliant with the leader’s expectations. The HR
Management Philosophy is the same story.
The leader is usually the person, who starts the change or the re-design
of the HR Management Philosophy. The leader observes the behaviour
in the organization and requests several changes. The leader usually calls
a new HR leader, who is responsible for the leadership in the change
management. The biggest task is to change the behaviour of the leader.
The corporate culture and the corporate values define boundaries for the
HR Management philosophy. The HR Management cannot be in the
conflict with the corporate culture. It must be a natural part of the
culture. In case of the changes in the HR Philosophy, the HR team must
start influencing the corporate culture. It must be adjusted as well. The
change of the corporate culture is the joint effort of the leadership
management and Human Resources. It must be changes by changes of
the living examples. The employees will follow the changes naturally.

The external market and the direct and indirect competitors have the
influence on the HR Management Philosophy. The competitors define
the industry standard. The completely different approach usually builds
the organizational weakness. The HR Philosophy must be better; it
cannot be completely different.

The leader usually compares the performance of the organization with

the direct competitors on the market. The leader identifies weaknesses
and advantages. In case of the need, the leader provokes the change of
the corporate culture and the HR philosophy.

Changing Environments of HRM – Changing Nature of Work.

Business environment is changing environment and so is HR
environment. The changing environment of HRM includes work force
diversity, economic and technological change, globalization,
organizational restructuring, changes in the nature of jobs and work
and so on.
Strategic Human Resource Management – Strategic human resource
management is the connection between a company's human
resources and its strategies, objectives, and goals. The aim of strategic
human resource management is to: Advance flexibility, innovation, and
competitive advantage. Develop a fit for purpose organizational culture
It ensures the goals of a human resource department reflect and
support the goals of the rest of the organization. insures a greater
chance of organizational success. utilizes the talent and opportunity
within the HR department to make other departments stronger and
more effective.

The term HRM expands to Human Resource Management; it implies

the implementation of management principles for managing the
workforce of an organization’s is the process of aligning the
business strategy with the company's human resource practices, so as
to attain strategic goals of an organization.

The aim of strategic human resource management is to:

Advance flexibility, innovation, and competitive advantage. Develop a
fit for purpose organizational culture
Strategic human resource management is the connection between a
company’s human resources and its strategies, objectives, and goals.
The aim of strategic human resource management is to:
Advance flexibility innovation, and competitive advantage.
Develop a fit for purpose organizational culture.
Improve business performance.
In order for strategic human resource management to be effective HR
must play a vital role as a strategic partner when company policies are
created and implemented. Strategic HR can be demonstrated
throughout different activities, such as hiring, training and rewarding
employees.
Strategic HR involves looking at ways that human resources can make a
direct impact on a company’s growth. HR personnel need to adopt a
strategic approach to developing and retaining employees to meet the
needs of the company’s long-term plans.

HR issues can be a difficult hurdle to cross for many companies, there

are all kinds of different components that can confuse business owners
and cause them to make ineffective decisions that slow down the
operations for their employees as well as their business. HR
departments that practice strategic human resource management do
not work independently within a silo; they interact with other
departments within an organization in order to understand their goals
and then create strategies that align with those objectives, as well as
those of the organization. As a result, the goals of a human resource
department reflect and support the goals of the rest of the
organization. Strategic HRM is seen as a partner in organizational
success, as opposed to a necessity for legal compliance or
compensation. Strategic HRM utilizes the talent and opportunity within
the human resources department to make other departments stronger
and more effective.

Importance of SHRM- Companies are more likely to be

successful when all teams are working towards the same objectives.
Strategic HR carries out analysis of employees and determines the
actions required to increase their value to the company. Strategic
human resource management also uses the results of this analysis to
develop HR techniques to address employee weaknesses.

Benefits of Strategic Human Resource Management:

i)Boost productivity.
ii)Better work culture.
iii)Increased job satisfaction.
iv)Efficient resource management.
v)Improved rates of customer satisfaction.
vi)Proactive approach to managing employees.

Seven Steps to Strategic Human Resource Management: Strategic

human resource management is key for the retention and development
of quality staff. It’s likely that employees will feel valued and want to
stay with a company that places a premium on employee retention and
engagement. For implemention of strategic human resource
management, organization need to create a strategic HR planning
process which involves following steps:

i)Develop a thorough understanding of company’s objectives

ii)Evaluate HR capability
iii)Analyze current HR capacity considering organization goals
iv)Estimate company’s future HR requirements
v)Determine the tools required for employees to complete the job
vi)Implement the human resource management strategy
vii)Evaluation and corrective action

Strategic human resource management is important for every

company. In fact, if organization have a plan to grow business, it
should think about linking this growth to strategic human resource
management.

Strategic HRM refers to HR that is coordinated and consistent with the

overall business objectives in order to improve business performance.
According to Purcell (1999), SHRM focuses on actions that differentiate
the business from its competitors.
Strategic HRM emphasizes the importance of HR – and the people in
the business – to the success of an organization. Businesses with an
emphasis on strategic human resource management.

Critics of strategic human resource management say that it is a good

idea in theory but often hard to implement at the organizational level.
Translating the organization’s objectives and values into tangible
initiatives that can be driven by the HR department is a complex
problem underlying strategic HRM

About Strategies- Strategy is a multi-dimensional concept going well

beyond traditional competitive strategy concepts.

Strategies are broad statements that set a direction.

Strategies should be SMART (specific, measurable, attainable realistic

and time bound) set of plans carefully developed with involvement by
an institution's stakeholders. These action statements are linked to an
individual or individuals who are accountable and empowered to
achieve the stated result in a specific desired timeframe.

Strategic human resource management is designed to help companies

to meet the needs of their employees while promoting company goals.
Human resource management deals with any aspects of a business that
affects employees, such as hiring and firing, pay, benefits, training, and
administration. Human resources also extend other facilities like work
incentives, safety, welfare, compensation, skill development &
employee engagement programmes, sickness benefits etc.

Strategic human resource management is the process of proactive

management of people. It requires foresight, advance planning,
teamwork in the interest of company to better meet the needs of its
employees, and for the employees to better meet the needs of the
company. This have a impact on improving everything from hiring
practices, employee training programs, discipline, succession planning,
negotiations, employee relations, assessment techniques etc.

SHRM is a branch of Human resource management. It is a new field,

which has emerged out of the parent discipline of human resource
management so called as traditional HRM literature treated the notion
of strategy superficially, rather as a purely operational matter, the
results of which cascade down throughout the organisation. There was
a kind of unsaid division of territory between people-centred values of
HR and harder business values where corporate strategies really
belonged. HR practitioners felt uncomfortable in the war cabinet like
atmosphere where corporate strategies were formulated.

Definition SHRM: Strategic human resource management can be

defined as the linking of human resources with strategic goals and
objectives in order to improve business performance and develop
organizational culture that foster innovation, flexibility and competitive
advantage. In an organisation SHRM means accepting and involving the
HR function as a strategic partner in the formulation and
implementation of the company's strategies through HR activities such
as recruiting, selecting, training and rewarding personnel.

Difference between SHRM & HRM: (i) In the last two decades there has
been an increasing awareness that HR functions were like an island
unto itself with softer people-centred values far away from the hard
world of real business.

(ii)In order to justify its own existence HR functions had to be more

intimately connected with the strategy and day to day running of the
business side of the enterprise.
(iii)Writers in the late 1980s, started clamouring for a more strategic
approach to the management of people than the standard practices of
traditional management of people or industrial relations models.

(iv)Strategic human resource management focuses on human resource

programs with long-term objectives. Instead of focusing on internal
(v)human resource issues, the focus is on addressing and solving
problems that affect people management programs in the long run and
often globally.

(vi)The primary goal of strategic human resources is to increase

employee productivity by focusing on business obstacles that occur
outside of human resources.

(vii)The primary actions of a strategic human resource manager are to

identify key HR areas where strategies can be implemented in the long
run to improve the overall employee motivation and productivity.

(viii)Communication between HR and top management of the company

is vital as without active participation no cooperation is possible.

Features of Strategic Human Resource Management:

i) There is an explicit linkage between HR policy and practices and

overall organizational strategic aims and the organizational
environment

ii)There is some organizing scheme linking individual HR interventions

so that they are mutually supportive

iii)Much of the responsibility for the management of human resources

is devolved down the line
SHRM Approach:

i)Attempts to link Human Resource activities with competency-based

performance measures

ii)Attempts to link Human Resource activities with business surpluses or

profit

These two approaches indicate factors in an organizational setting. The

first one is the human factor, their performance and competency and
the later is the business surplus.

An approach of people concern is based on the belief that human

resources are uniquely important in sustained business success. An
organization gains competitive advantage by using its people
effectively, drawing on their expertise and ingenuity to meet clearly
defined objectives. Integration of the business surplus to the human
competency and performance required adequate strategies.

The way in which people are managed, motivated and deployed, and
the availability of skills and knowledge will all shape the business
strategy.

The strategic orientation of the business then requires the effective

orientation of human resource to competency and performance
excellence.

Benefits of SHRM:
i)To ensure high productivity.

ii)To recruit, retain and motivate people.

iii)To ensure business surplus thorough competency

iv)To develop and retain of highly competent people.

v) To ensure business surplus thorough competency

vi) To meet the expectations of the customers effectively.

vii)Identifying and analysing external opportunities and threats that

may be crucial to the company's success.

viii)Provides a clear business strategy and vision for the future.

ix)To supply competitive intelligence that may be useful in the strategic

planning process.

x)To ensure that people development issues are addressed

systematically.

xi)To supply information regarding the company's internal strengths

and weaknesses.

Barriers of SHRM:

i)Rapid structural changes.

ii)Interdepartmental conflict.

iii)Presence of active labour union

iv) Ramifications for power relations.

v)Vulnerability to legislative changes.

vi)Limited time, money and the resources.

vii)The statuesque approach of employees.

viii)More diverse, outward looking approach.

ix)Diverse workforce with competitive skill sets.

x)Fear towards victimisation in the wake of failures.

xi)Inducing the vision and mission of the change effort.

xii)The commitment of the entire senior management team.

xiii) Barriers to successful SHRM implementation are complex.

xiv)High resistance due to lack of cooperation from the bottom line.

xv) Resistance that comes through the legitimate labour institutions.

xvi)Plans that integrate internal resource with external requirements.

xvii)Improper strategic assignments and leadership conflict over

authority.

xviii)The main reason is a lack of growth strategy or failure to

implement one.

xix)Fear of incompetency of senior level managers to take up strategic

steps.
xx) Economic and market pressures influenced the adoption of strategic
HRM.

Using HRM to Attain Competitive Advantage – HR is important as it

helps in creating strong competitive advantage through their personnel
management policies – productivity and employee happiness is
an advantage that often results in superior customer service, which
helps drive sales

HR can review the competitive talent landscape and determine what

compensation strategy will be best aligned with company goals. ... HR
can use data to show how the skill sets of the employees are evolving
over time, and to show business leaders where skills gaps may exist so
those gaps can be addressed proactively

Human Resources is regarded in a growing number of organizations as

a source of competitive advantage, through recruiting, selecting,
retaining and developing human capital that enables organizations to
compete on several different levels to be flexible, capable, and
responsive, demonstrating creativity.

The four primary methods of gaining a competitive advantage are

cost leadership, differentiation, defensive strategies and strategic
alliances.

Relying on human resource department to recruit the best employees,

design appropriate and effective training programs and institute
successful retention programs can give company a competitive
advantage.
While competitors struggle with maintaining an experienced and
motivated workforce, company can focus more on productivity and
increased sales when HR department plays an integral role in
company’s workforce development.

Human resources can ultimately help to locate, hire, train and

maintain a finely tuned and productive workforce, thus providing a
competitive advantage for a business.

Hire Professionals with Experience, Human resource professionals vary

in the kinds of skills and experience they bring to a job. Many are
administrators proficient at processing payroll and executing benefits
programs but have little more leadership status than clerical workers.

Executive-level human resource professionals can help in deigning job

descriptions, training programmes ,advise both management and
employees, from where and how to find best candidates and
participate in defining salary levels that will result in the best new
hires etc.

HR Leadership:
The human resource department often is given job descriptions and
told to fill the positions. Salaries are predetermined and the HR staff
has little or no input into the hiring process. To tap into the HR
professional’s insights, company should bring human resource
manager into the hiring process more completely. If HR person is given
an authority to play a role in determining appropriate recruitment pay
and tactics, he will certainly recruit top talent.

HR Person & Training Programs:

With an HR department that participates in defining and implementing
company goals, company must rely on its human resources team to
consider the company’s profitability with each decision they make. In
addition to defining employee jobs and required qualifications, an
actively participatory HR department can monitor employee activity
levels, morale and customer service success to design and implement
appropriate training programs with line supervisors and executive
management teams.
HR Person & Employee Performance:
The human resource department can build programs to track those
employees who stand out. When human resource professionals are
involved in designing and providing employee reviews, they can help
company to spot talent and advise management on how they can best
groom employees for promotions. They can provide designated
employees with specific training and help employees to devise
opportunities for growth, serving as company’s eyes and ears for
seeking out the best candidates that will push company into a
competitive advantage.

Involvement of Artificial Intelligence in Recruitment:

Now a days AI-driven solution is providing immense innovation in
industries including Banking, Finance, Manufacturing, Retail,
Healthcare, Transportation, Social Media, etc. Organizations are
adopting AI and using it in recruitment and hiring processes. AI-
powered solutions will rule in the year ahead with the following
advantages.

Time saving – Chatbots, considered as the conversational interface

platforms that save time and speed up the recruitment process by
answering the most common questions of the applicants. AI helps to
minimize repetitive tasks, hence enabling organizations to make hiring
decisions faster and improve candidate experience.

Candidates Screening – Screening is a large pool of applicants requires

time and effort. For a single hire, candidate shortlisting, and screening
take up almost a day of a recruiter’s time. AI powered recruitment
solutions helps in filtering high volume of resumes and pre-qualifying
candidates based on the job description and skills. Such solutions are
more in demand This would not only reduce the hiring efforts but also
encourage unbiased candidate assessment and more productive and
talented workforce to select.
Data Analytics & HRM: Using analytics, data driven decisions can be
made by HR professionals to attract and retain top talent.

Coming time will provide endless possibilities to use analytics in

identifying trends and patterns on employee absenteeism, leave
frequency, employee turnover rate, engagement level etc.

Data Analytics & its Role in HRM:

i)Reducing employee turnover

ii)Employee Experience Platforms

iii)Implementing best, proven recruiting practices

iv)Implementing best, proven recruiting practices

v)Increasing employee experience and satisfaction

vi) Increasing workforce productivity and engagement

vii)Managing task automation and process improvement

viii) Improving workforce planning and talent development

Performance Management & HRM:

The approach of yearly feedback and reviews is long gone.
Organizations have gone through a huge transformation in
performance management hoping to achieve high productivity,
improved employee engagement and talent retention. Organizations
are investing in Continuous Performance Management (CPM) tools to
streamline their company processes in a better way and empower
employees.
Continuous Performance Management encourages periodic interaction
between the employee and the manager allowing course-correction,
timely feedback, coaching and development opportunities based on
business needs.

Employee Training & HRM:

Employees require continuous mentoring, training and skill
development to perform well in their jobs. Continuous learning
improves employee skills, making employees more adaptive to the
work environment and preparing them to take up different roles in
their company.

Employee Engagement & HRM:

Organizations are moving forward with well-thought strategies to
improve workforce engagement through HR technology innovations.
The emerging HR trends are encouraging use of employee engagement
tools and survey platforms to capture employee opinions and feedback.

Organization of HR Departments – a)Line and staff functions –

A "line function" is one that directly advances an organization in its core

work. This always includes production and sales, and sometimes
also marketing. A "staff function" supports the organization with
specialized advisory and support functions
Line-staff organization, in management, approach in which authorities
establish goals and directives that are then fulfilled by staff and other
workers. ... Typically, work is carried out in accordance with specialized
functions, and authority is exercised in a hierarchical manner.A line
position is a position that has authority and responsibility for achieving
the major goals of the organization. A staff position is
a position whose primary purpose is providing specialized expertise and
assistance to line position

Line function is one in which a superior exercises authority directly over

a subordinate.
In general, the line personnel have independent offices through which
they function and maintain their separate identity.

Staff function is advisory in nature and is meant to assist the line

personnel. They think for the head of the organization/office and give
necessary support and advice.
There may be three categories of staff-technical i.e. those who deal
with technical matters; officers i.e., those who deal with general
administration, personnel, finance, audit, purchase etc. and office staff
i.e., those who exclusively work in the office and assist the above
mentioned staff and line personnel.

The size of the staff should be determined based on how big the
organization is, how big is the budget, what are responsibilities etc.

Role of Human Resource Manager: Human resources managers plan,

direct, and coordinate the administrative functions of an organization.
They oversee the recruiting, interviewing, and hiring of new staff;
consult with top executives on strategic planning; and serve as a link
between an organization's management and its employees.
HR Manager is the go-to person for all employee-related issues I,e HR
Manager duties  involves  managing activities such as job design,
recruitment, employee relations, performance management, training &
development and talent management.

A)The pivotal role of HR Manager to achieve organizational objectives

are:-
1) Welfare Role
2)Advisory Role
3)Pro-Acting Role
4)Mediator’s Role
5)Motivator’s Role
6)Counsellor’s Role
7)Spokesperson Role
8)Developmental Role
9)Social Upliftment Role

B) The specialist role of HR Manager are:-

1). The Auditor
2). The Executive
3). The Facilitator
4). The Consultant
5). The Service Provider.

C)Role of HR Manager in strategic management are:-

1). HR and Technology.
2). HR’s Role in Executing Strategy
3). HR’s Role in Formulating Strategy

D: Role of HR Manager for meeting the requirements of employees and

customers are: -
1). Strategic Roles.
2). Operational Roles
3). Administrative Roles

E: Important role of HR Manager in an organization are: -

1). Welfare Officer’s Role
2). Employee’s Advocate’s Role
3). Management’s Representative Role
4). Business and Strategic Partners Role

F: Role of HRD Manager are: -

1)Design Job Rotation
2) Identify Organizational Development Needs
3) Provide Inputs for Preparing Promotion Policies

Roles and Responsibilities of Human Resource Manager:

1)Recruiting and Hiring – It is a process of discovering sources of

manpower and employing effective measures for attracting that
manpower in adequate numbers to facilitate the selection of an
efficient working force in an organization.

2)Training and Development – These processes help in enhancing and

enabling the capacities of people to build their strengths and
confidence for them to deliver more effectively.

3) Competency Development – Competency is a cluster of related

knowledge, skills, and attitude that affect a major part of one’s job. It
can be improved by means of training and development.
4). Organization Development – It is an organization-wide effort to
increase its effectiveness and viability, and move towards growth.
5) Communication – It is an activity that involves conveying meaningful
information. At all times, the HR must convey all relevant information
to the employees.

6) Performance Management – It focuses on improving the

performance of the organization, employees, and various other
services.

7) Employee Relations – This is a concept that works towards bettering

the relations among the employees, as well as between the employee
and the management.

8) Coaching, Mentoring, and Counselling – It is a practice of supporting

an individual and helping him overcome all his issues in order to
perform better.

9)Policy Recommendation – Policy recommendations help to

streamline management practices and reduce employee grievances.

10) Wages, Salary, and Compensation Benefits – These benefits are

provided to the employees to keep them motivated towards their work
and the organization.

11) Talent Management and Employee Engagement – It is a

management concept that works towards retaining the talent by
engaging the person in a way which would further the organization’s
interest.

12) Leadership Development – This activity refers to enhancing the

quality and efficiency of a leader in an organization.
13) Team Building – It focuses on bringing out the best in a team to
ensure development of an organization, and the ability to work
together closely to achieve goals.

14) Networking and Partnering – It is also important to build relations

with the external stakeholders, including the customers and suppliers
for better business.

Unit-II-Perception

Meaning and concept of perception:

Perception is a sensual experience of the world. This includes

both recognition of environmental stimuli and behaviour in
response to these stimuli. Through the process of perception, we
obtain information about the characteristics and elements of the
environment that are essential to our survival.

"Perception can be defined as the process by which an individual

organizes and interprets sensory impressions to give meaning to
their surroundings."

Simply put, perception is the act of seeing what is seen.

Perception refers to a series of processes used to understand the
various stimuli presented to us.

Our perception is based on how we interpret different sensations.

The perceptual process begins with receiving stimuli from the

environment and ends with the interpretation of these stimuli.

"Perception is the process of selecting, receiving, organizing, and

interpreting information from the external environment to make it
meaningful. Entering this meaningful information leads to
decisions and actions."

As various authors have stated, Perception: "Perception can be

defined as the process by which an individual organizes and
interprets sensory impressions in order to give meaning to the
environment."

According to Joseph Reitz, "Perception involves all the

processes by which an individual receives information about his
or her environment: seeing, hearing, feeling, tasting, sniffing, and
so on. Studies of these ongoing processes show that their
function is influenced by following three classes of variables:

i)the object or event being perceived,

ii)the environment in which the perception takes place, and

iii)the individual performing the perception.

Type of perception:

Ajit Singh describes perception as follows:

"Perception refers to the interpretation of sensory data. In other

words, perception involves recognizing the presence of a
stimulus, and perception involves understanding the meaning of a
stimulus.

viz; when we see something, the visual stimulus is the light

energy reflected from the outside world, and the eye becomes a
sensor. The visual image of this external thing becomes
perception when interpreted in the visual cortex of the brain.
Therefore, vision refers to interpreting the image of the outside
world projected on the retina of the eye and building a model of
the three-dimensional world. " From the above explanation, it is
clear that -

perception is more than sensation. It correlates, integrates and

captures diverse sensations and information from many organs
of the body that one uses to identify sensory-related objects .

Perception is determined by both physiological and psychological

characteristics of humans, but sensations are perceived only by
physiological characteristics. Thus, perception is not just what one
sees with the eyes it is a much more complex process by which
an individual selectively absorbs or assimilates the stimuli in the
environment, cognitively organizes the perceived information in a
specific fashion and then interprets the information to make an
assessment about what is going on in one`s environment.

Perception is a subjective process, therefore, different people

may perceive the same environment differently based on what
particular aspects of the situation they choose to selectively
absorb, how they organize this information and the manner in
which they interpret it to obtain a grasp of the situation.

Importance of Perception:

i)Perception is very important in understanding the human

behaviour, because every person perceives the world and
approaches the life problems differently Whatever we see or feel
is not necessarily the same as it really is. It is because what we
hear is not what is really said, but what we perceive as being said.
When we buy something, it is not because it is the best, but
because we take it to be the best. In this way, perception can be
used to find out why one person is happy with the job and another
is not.
ii)When people act on their own perceptions, understanding their
perceptions of the current environment can predict their behavior
in changing circumstances. One can see facts in a different way
than the facts seen by other viewers.

iii) People's perception is influenced by their needs, so with the

help of perception, the needs of different people can be
determined. Like a mirror in an amusement park, it distorts the
world in terms of tension.

iv) Perception is very important for managers who want to avoid

mistakes when dealing with people and events in the work
environment. This problem is exacerbated/aggravated by the fact
that different people perceive the same situation differently.

To effectively deal with subordinates, managers need to

understand their perceptions correctly. Therefore, in order to
understand human behaviour, it is very important to understand
their perception, that is, how they perceive different situations.
People's actions are based on their perception of what reality is,
not the reality itself. The perceived world is an important world for
understanding human behaviour.

Factors Affecting/Influencing Perception:

1)Preceptor characteristics

2) With the characteristics of perception or goal

3) Characteristics of the situation screen:

1. Preceptor characteristics (internal factors): These are the

personal characteristics of people:
(a) Needs and motivations: An individual's perception is
basically determined by his or her inner needs and motivations.
They take things differently, depending on their different needs
and motivations. Different needs lead to different stimuli, and
people choose different items to meet their needs. According to
Freud, "wishful thinking is a means by which the ego, which is
part of the personality, seeks to relieve tension." In such cases,
people perceive only what corresponds to their wishful thinking.

(b) Self-concept: How one actually perceives others and the

other world clearly determines how one thinks about oneself or
what one's image is. It is mainly based on the complex
psychological composition of the individual. Self-image helps to
understand others.

(c) Belief: Human beliefs have a direct impact on their

perception. In most cases, people act on their beliefs and
perceive them in the same way, making it very difficult for a
person to think beyond their beliefs.

According to Daniel Katz:

1)Individuals censor their communications records to protect their

beliefs and practices from attacks.

2)Individuals seek communication that supports their beliefs and

practices

3)The latter is especially true when the beliefs and practices in

question are attacked.

(d) Past experience: People's perceptions are greatly influenced

by past experiences. Those who have had good experiences in
the past perceive accordingly, and vice versa.
(e) Current mental state: A person's current psychological or
emotional state plays an important role in perception. A person's
current position defines how a person perceives something.
Therefore, a person in a good mood is perceived differently than a
person in a bad mood.

(f) Expectations: Again, expectations play an important role in

determining how one perceives. Expectations are related to the
state of expectations for a person's specific behavior.

Viz; if Mr. X never thinks he will do good, he always feels that he

is wrong, even if he is right.

2) Perceptual or goal characteristics:

a)The greater the perceived stimulus, the more likely it is to be

perceived, and vice versa. People tend to understand things
better when they are explained more clearly, and they understand
the same accordingly.

b) Intense The stronger the external stimulus, the more likely it is

to be perceived. Loud sounds, bright colors, etc. It stands out
more than soft tones or relatively dull colors.

c) Frequency The higher the frequency of repetition of things, the

higher the selectivity of perception. This also corresponds to
iterative learning theory.

d) Status perception is also influenced by the perceiver's status.

High-ranking people can have a greater impact on employee
perception than low-ranking people.

e) Contrast-Environmentally contrasting stimuli attract more

attention than mixed stimuli.
3). Situation factors: Time, place, and situation during
communication play an important role in perception. These
situational factors can be further categorized as follows:

a) Physical environment: This includes location, location, light,

warmth, ventilation, basic equipment, etc. If all this is correct,
people can perceive positively and vice versa.

b) Social environment: This includes human resources. H.

People around you, or people involved, people around you,
people who are worried about you, or people you work with.

c) Organizational environment: This includes organizational

hierarchy, organizational settings, structure, and so on. All of
these affect perception.

Perceptual selectivity:

i)Perception is a selective process because humans can only

perceive a limited amount of information in the environment. They
are characteristically selective.

ii) The choice hides certain aspects of the stimulus and allows
other aspects.

iii) Such perceptual selectivity can be caused by a variety of

factors, which can be broadly divided into external and internal
factors.

A) External Factors of Perceptual Selectivity: External factors

are in the form of sensory input or stimulus characteristics. The
effect of external factors on perceptual selectivity.

1. Size: By influencing the attractiveness of the perceiver, it is

possible to influence the selectivity of perception. In general, the
larger the size of the perceived stimulus, the more likely it is to
attract the perceiver's attention and select it for perception. For
example, the large letters in a book get the reader's attention and
tend to be read before reading all the text.

(2) Strength: The stronger the external stimulus, the more likely it
is to be perceived. For example, loud sounds, strong odors, bright
lights. For example, TV commercials are a little bigger than
shows.

(3) Repeat: Repeated external stimuli attract more attention than

a single stimulus.

(4) Novelty and friendliness: Either a novel or a familiar situation

will help you get attention. For example, job rotation makes new
jobs more careful or more acceptable to communicate in familiar
jargon.

(5) Contrast: More attention will be paid to background stimuli and

stimuli that do not meet expectations. example- Me. Bold ii. A
person in different clothes. iii. Another color

(6) Exercise: Moving objects attract more attention than stationary

objects. For example, TV spots are getting more attention than
print ads. All of these elements should be used with caution.
Noisy bosses can scare their subordinates instead of getting their
attention.

B) Internal factors of perceptual selectivity: These are related

to the complex psychological composition of the individual.

(1) Self-concept: The way a person sees the world depends

heavily on his own concepts and images. The characteristics of
people themselves influence the characteristics that may be seen
by others. They choose only the aspects that they think fit their
characteristics.

(2) Belief: The fact is not what it is, but what one thinks about it.
Individuals usually censor stimulus inputs so as not to confuse
existing beliefs.

(3) Expectations: We expect rough words from union officials. A

spiritual set of beliefs, expectations and values filters perception.

(4) Internal necessity: People with different needs choose

different factors to learn, react to, and experience different stimuli.
When people are unable to meet their needs, they engage in
wishful thinking to meet the needs of the imaginary world rather
than the real world. In such cases people perceive only those
items which are consistent with their wishful thinking.

(5) Response Disposition: Refers to a persons tendency to

perceive familiar stimuli rather than unfamiliar ones. E.g. In an
experiment people with dominant religious values took lesser time
in recognising such related words as priest or minister. Whereas
they took longer time in recognising words related with economic
values such as cost or price.

(6) Response Salience: It is the set of dispositions which are

determined not by the familiarity of the stimulus situations, but by
the persons own cognitive predisposition. For example, a
particular issue within an organization can be seen as a marketing
issue by marketing professionals, but an administrative issue for
accountants and a talent issue for talent development personnel.
The reason for this is that people are trained to see the situation
only from one angle, not from another.

(7) Perceptual defence: It refers to the screening of factors that

cause conflicts and threatening situations for people. They may
even perceive that there are other factors that are not part of the
stimulus situation.

The defence against perception is carried out by:

(A) Deny the existence of inconsistent information

(B) Distort new information to match old information

(C) Confirmation of new information.

However, it is treated as a typical exception.

Managerial Impact on perception: Managers are primarily

interested in achieving the goals of the organization. Perception
influences employee behaviour. Therefore, the facts do not
necessarily have to be accepted at all times. Therefore,
understanding human perception is important for understanding
and controlling behaviour. There are five main areas that require
special attention for perceptual accuracy.

(1) Interpersonal Working Relationship: Managers in the

organization need to know whether or not members share similar
or at least compatible perceptions. If people are not
misunderstanding each other, if they are not working with
preoccupied minds and having positive approach then the
interpersonal relations can be strengthened. Misperceptions
usually lead to strained relations and may even result in open
conflict among people.

(2) Selection of Employees: Selection is based on tests,

interviews and review of the applicant’s background. Managers
perception should not be biased. The choice of employee also
depends on how the candidate asks the question. His answer will
be accordingly. If candidates answer the question exactly as it
was asked, they can answer positively. Differences in perception
completely change the meaning of the reaction, which sometimes
leads to major problems.

(3) Performance evaluation: Ratings are strongly influenced by

the accuracy of the manager's perception. In most cases,
promotion, transfer, recruitment, staff retention, etc. depend on
the process of recognition of the manager. Performance
assessments are related to employee performance and should be
based on objective criteria. But regardless of this, it depends on
subjective criteria, such as the manager's personal likes and
dislikes.

(4) Effort: When assessing a person's workload, managers

assess the qualitative aspects of employee performance. If he
admits it enough and honest, he will appreciate it despite missing
the goal, and vice versa. Administrators need to be careful when
assessing this aspect.

(5) Improvement of loyalty: Correct application of perception can

increase the level of loyalty. If employees think that management
understands it, although it is not being abused by management,
they will recognize it as their own organization and reduce job
changes.

Selective Acceptance: Selective Acceptance is the process by

which people perceive what they want in a media message,
ignoring the opposite perspective. This is a broad term used to
identify the behaviour of all people who tend to "see things" based
on their respective criteria.

Selective perception is the process of perception in which one

perceives only what one wants and sets aside or ignores other
perceptions and perspectives. factors There are several factors
that can affect selective perception. Basically, all previous
experiences of a person affect his selective perceptual
mechanism.

According to advertising researcher Seymour Smith, people

exclude ads based on their beliefs, attitudes, conditioning, habits,
usage preferences, and more. Biological factors such as gender,
age, and race can also affect selective perception.

In addition, a person's needs, expectations, and emotional states

have a strong influence on what he or she perceives. types There
are two types of selective perception: perceptual alertness and
perceptual defence.

Low selective cognition, perceptual arousal, refers to the process

by which an individual perceives and recognizes stimuli that may
be of some importance to him or her.

Perceptual defence, on the other hand, occurs when a person

builds a barrier between the stimulus and tries to protect it from
being noticed. In most cases, these stimuli are perceived as
threatening or offensive, such as obscene language or violence.

This is a high level of selective cognition in which violence is not

clearly seen or bad words are not heard properly. Researchers
say that people with high perceptual defence have a strong
"perceptual wall" that acts as a filtering mechanism, making them
unable to perceive unwanted stimuli.

Early research Selective exercise, when done consciously, can

lead to "seeing" what one wants and ignoring the opposite.
Classic studies on selective perception included subjects at
Princeton University and Darthmas University. Respondents were
asked to watch a movie about the Princeton-Dartmouth football
match. The results showed that Dartmouth subjects reported
seeing rule violations by the Princeton team almost twice as much
as Princeton viewers perceived in connection with the Dartmouth
team. In this case, the subject experiences selective perception of
the opposing team. Selective perception test Since the beginning
of the 21st century, many researchers have conducted
experiments and studies to gain more knowledge about the
concept of selective perception.

In 1999, psychologists named Daniel the "Invisible Gorilla Test."

This has shown that people can focus on stimuli and situations
and become "blind" to incoming and unexpected situations. This
effect is called "careless blindness".

Attribution Theory: The basis of Attribution Theory is that,

people want to know the reason for the actions they and others
take. Instead of assuming that their behaviour is random, they
want to attribute the cause to the behaviour they look at. This
gives people some control over their behaviour and
circumstances. In the organization, attribution theory aims to help
one to understand the causes of human behaviour.

Generally, this theory is related to perception of a person at work.

It describes the role of this theory in explaining behaviour at work
with the use of examples and evidences.

Attribution theory proposes that the attributions people make

about events and behaviour can be classed as either internal or
external.

In an external, or situational, attribution, people infer that a

person's behaviours is due to situational factors.

Awareness of the cause of a particular behaviours can affect both

the judgment and behaviours of managers and employees. It can
also play an important role in motivating.
Attribution theory tries to explain some of the causes of our
behaviours. Attribution theory assumes that people are trying to
understand why people do what they do. The purpose of
attribution is to achieve cognitive control of the surroundings by
explaining and understanding the causes of behavioural and
environmental events. Attribution gives us the order and
predictability of our lives.

In the organization, attribution theory is designed to help one to

understand the causes of human behaviours. In general, this
theory is related to the perception of a person's work. It explains
the role of this theory in explaining behaviours in the workplace
through examples and evidence.

Attribution theory suggests that attribution that people make about

an event or action can be categorized as either internal or
external.

By external or contextual attribution, people conclude that a

person's behaviours is due to contextual factors. The perception
of the causes of a certain behaviours may affect the judgment and
actions of both managers and employees. It may also play a
significant role in motivation.

There are a number of ways that the halo effect can influence
perceptions of others in work settings. For example, experts
suggest that the halo effect is one of the most common biases
affecting performance appraisals and reviews. Supervisors may
rate subordinates based on the perception of a single.

At work place There are several ways in which the halo effect
can affect the perception of another person's work environment.
For example, experts suggest that the halo effect is one of the
most common biases in performance evaluation and appraisal.
Supervisors may evaluate their subordinates based on their
perception of a single characteristic rather than their overall
performance or contribution.

viz; an employee's enthusiasm and positive attitude can mark a

lack of knowledge and skills and value it , more than the
employee actually guarantees performance.

The halo effect can also affect person’s income Applicants may
also feel the effects of the halo effect. If a potential employer rates
an applicant as attractive or personal, he is also more likely to
rate him as intelligent, competent and qualified. Perceptual
process, social perception.

Perception refers to the process of filtering, selecting, organizing,

and interpreting stimuli in order to give them meaning. Perception
does not necessarily lead to an accurate portrait of the
surroundings, but it does lead to a unique portrait that is
influenced by the needs, desires, values and tendencies of the
perceiver.

As explained by Ketch, the individual's perception of a particular

situation is not a photographic representation of the physical
world. It is a partial personal structure in which a particular object
selected by an individual for an important role is individually
recognized.

All perceivers are, to some extent, non-representative artists who

depict a worldview that expresses an individual view of reality. A
large number of disputed objects are initially selected or screened
by the individual. This process is known as perceptual
selectivity.

Some of these objects get our attention and some don't. When an
individual becomes aware of a particular object, he tries to
understand it by organizing or categorizing it according to his own
reference frame and needs. This second process is called the
sensory tissue.

When an object is valued, the individual can determine the

appropriate response or response to the object. So if individual
clearly see and understand that individual is at risk of falling
rocks and cars, he/she can quickly get out of the way.

Perceptual selectivity is important in understanding the perception

of work situations.

Perceptual selectivity: Perceptual selectivity refers to the

process by which an individual selects an object in the
environment for attention. Without this ability to focus on one or
several stimuli, rather than the hundreds of stimuli that always
surround us, we cannot process all the information needed to
initiate an action.

In this process people are initially exposed to objects and stimuli

such as loud noises, new cars, skyscrapers, and others. Second,
one focuses on understanding or understanding the stimulus,
focusing on that one object or stimulus rather than another object.
viz, two managers came across a machine during a factory tour.
The manager's attention was focused on the stopped machine.
Another manager focused on the worker trying to solve the
problem. Both managers asked the worker a question at the same
time. The first manager asked why the machine went down, and
the second manager asked if the employee thought he could
solve the problem. Both managers faced the same situation, but
noticed different aspects. This example shows that when attention
is directed, people are more likely to keep an image of an object
or stimulus in mind and choose the appropriate response to the
stimulus.
These different impacts on selective attention can be divided into
external and internal (individual) impacts.

External influences consist of the characteristics of the observed

object or person that activates the senses. Most external
influences affect selective attention based on their physical or
dynamic characteristics. The physical properties of the object
itself often affect which object the perceiver observes. The focus
here is on something unique, different and extraordinary.

A particularly important physical characteristic is size. In general,

large objects get more attention than smaller objects. Advertisers
use the largest signs and signs allowed to get the viewer's
attention.

However, if most of the surrounding objects are large, individual

can pay attention to smaller objects than an array of large objects.
In both cases, size is an important variable in perception. In
addition, brighter, larger, and more colourful objects tend to attract
more attention than less intense objects.

viz; if the foreman shouts an order to his subordinates, he may

receive more notifications from the worker (although he may not
get the response he was looking for). However, it should be noted
that intensity only raises attention when compared to other
comparable stimuli. If the foreman keeps screaming/blaring,
employees can stop paying too much attention to the screaming.
Objects that are in strong contrast to the observed background
tend to attract more attention than low-contrast objects.

viz; example of the principle of contrast is the use of systems and

traffic safety signs. Simple messages such as "danger" are written
in black on a yellow or orange background. The final physical
property that can enhance perceptual perception is the novelty or
unfamiliarity of the object. Especially unique or unexpected.
Impact on selective attention: In addition to various external
factors, some important personal factors can also affect a
person's attention to a particular stimulus or object in the
environment. The two most important personal effects on
perceived motivation are

i)the salt content of the reaction (response silence) and

ii)the nature of the reaction (response disposition).

Response salience: This tends to focus on objects related to

urgent needs and desires.

Reacting salt in the working environment is easy to find.

Employees who are tired of working long hours can be very
sensitive to the number of hours or minutes to the end of their
working hours.

Employees negotiating new contracts may know in cents the

hourly wages of workers doing similar jobs throughout the city.
High performance managers can be sensitive to job performance,
success, and promotion opportunities. Finally, female managers
can be more sensitive to contempt for men's attitudes towards
women than many male managers.

Reactive salt can distort the way we look around. viz; as Ruche
points out: “The time required for monotonous work is usually
overestimated. The time spent doing interesting work is usually
underestimated. Judgment of time is related to the feeling of
success or failure. A failed subject is considered to have a longer
interval than a successful subject. Also, a time interval is
determined to be longer by the tester trying to complete the task
to achieve the desired goal than by the tester working without
such motivation.
Responsiveness addresses urgent needs and concerns, but
reaction tendencies tend to recognize familiar objects more
quickly than unfamiliar ones. The concept of response processing
means a clear recognition of the importance of past learning to
what we are currently aware of. e.g. one study presented a group
of people with a set of playing cards with the colours and symbols
reversed. That is, the hearts and diamonds were printed in black,
and the spades and clubs were printed in red. Surprisingly, when
these cards were presented for a short period of time, participants
consistently described the cards as expected (red hearts and
diamonds, black spades and crosses), not the actual cards. They
tended to see things as usual Therefore, the basic perceptual
process is actually very complicated.

Several factors, including our own personal composition and

environment, influence how we interpret and respond to the
events we are focusing on. The process itself may seem a bit
complicated, but it's actually a shortcut that guides individual
through his/her daily routine. i,e without perceptual selectivity,
we would be stuck by millions of stimuli competing for attention
and action.

The process of perception allows individual to focus the attention

on more prominent events or objects, and individual can also
categorize such events or objects and adapt them to individual’s
environment's own conceptual map.

Social perception involves the process by which we perceive

others.

When examining social perception, particular emphasis is placed

on how to interpret, classify, and shape the impressions of others.
Obviously, social cognition is much more complex than inanimate
cognition, such as:
Social Perception in Organizations:

social perception as it relates to the workplace. Social perception

consists of those processes by which we perceive other people.

Particular emphasis in the study of social perception is placed on

how we interpret other people, how we categorize them, and how
we form impressions of them. social perception is far more
complex than the perception of inanimate/non-living objects such
as tables, chairs, signs, and buildings. This is true for at least two
reasons.

i)People are clearly much more complex and dynamic than tables
and chairs. More care needs to be taken not to overlook important
details during perception.

ii)The accurate perception of others is usually personally much

more important than the perception of inanimate objects.

The result of people's misperceptions is amazing. If individual

cannot pinpoint the location of a desk in a large room, individual
may accidentally hit the desk. If individual do not fully understand
a person's hierarchical position and how that person handles the
difference in that position, individual may call the person with an
inappropriate name or use slang in front of that person and if that
person is involved, such a decision can have a serious impact on
the likelihood of promotion. Therefore, social cognition in the
working situation deserves special attention.

Effects on social perception:

(1) the perceived person,

(2) the particular situation, and

(3) the characteristics of the perceiver.

Taken together, these effects are the dimensions of the

environment in which we see other people. It is important for
management people to understand how they interact

The way individual judge in social situations is greatly influenced

by individuals own unique personality traits. In other words,
individual’s clothes, conversations and gestures determine the
type of impression people make towards him/her. In particular,
four categories of personal characteristics can be identified:
(1) Appearance,
(2) Linguistic communication,
(3) Nonverbal communication, and
(4) Ascribed attributes.

1)Physical Appearance: Numerous physical properties affect

individuals overall picture. This includes a lot of obvious
demographics such as age, gender, race, height and weight.
According to Mason's research, most people agree with the
physical characteristics of a leader (that is, when individual see
someone who is assertive, goal-oriented, confident, and clearly
visible, that person is natural presumed to be a leader)
It is clothing that has a significant effect on perception of
appearance. Generally, people wearing business suits are
considered to be employed, and those wearing work clothes are
at a lower level is considered an employee.
2)Verbal and Non-verbal Communication: What individual say
to others, and how individual say it, can affect the impression they
make to them.
Individual can identify some aspects of verbal communication.
i)The accuracy of using a language can affect the sophistication
of culture and the impression of education. Accents/pronunciation
give clues about a person's geographical and social background.
The voice tone used indicates the state of mind of the speaker.
After all, the topics people are talking about provide clues about it.
Impressions are also influenced by nonverbal communication,
that is, people's behaviour. e.g., facial expressions often serve as
a guide in forming impressions from others. People who are
always smiling are often said to have a positive attitude.
All areas of research that have recently emerged are body
language. This is a way for people to unknowingly express their
inner feelings through physical behaviour. Instead of looking away
from others, with your eyes. These forms of expression give the
perceiver information about how friendly others are, how confident
they are, or how sociable they are. Attribute with attribute. After
all, we often attribute certain attributes to a person before or at the
beginning of an encounter. These attributes can affect how we
perceive this person. The three attributes are status, occupation,
and personal characteristics. If a person is said to be a manager,
has the best sales record, or has acquired extraordinary fame or
property in any way, we will attribute the status to that person.
Studies have consistently shown that people have different
motivations for those who believe they are high or low, even if
they behave in the same way.

Competent: they are empowered in group decision-making more

than low-ranking people. Moreover, in general, high-ranking
people are more popular than low-ranking people. Occupations
also play an important role in how we perceive people. When
individual describe people as salespeople, accountants, team
leaders, or research scientists, different images of these different
people are created before individual meet them in person. In fact,
these images can even determine if an encounter is likely to
occur.
2)Characteristics of the situation The second major influence
on how we perceive others is the situation in which the perceptual
process takes place individual can identify the impact of two
situations. The location of –
(1) the organization and its employees, and
(2) the location of the event.
The role of the organization. The position of employees in the
organizational hierarchy can also influence their perception.

Motivation: Definition & Concept of Motive & Motivation:

Motivation is largely the underlying power of people to perform

obligations and desires. There are many elements that could
affect worker’s motivation along with organizational structure,
integrity of enterprise operations, and enterprise culture.
Motivation in organizational conduct has a large function to play in
commercial enterprise fulfilment. Managers and group leaders
could make the maximum of it through the usage of some
pointers and tricks.

Understanding Motivation in Organizational Behaviour: What

is it that makes a commercial enterprise truly successful? Surely,
reaching desires and producing effect are leader drivers.
However, an effective and green group of workers is the spine of
fulfilment.

Unless personnel are glad, encouraged and incentivized, groups

are not likely to carry out well. Motivation in organizational
conduct now no longer most effective creates willingness however
additionally encourages personnel to completely make use of
their abilities. In a nutshell, motivation in a corporation refers back
to the tremendous nation of thoughts that drives individual to
obtain his/her targets.

Motivation is a large discipline of examine and numerous

psychologists have studied human conduct to endorse exclusive
motivation theories in organizational conduct. These theories offer
a deeper know-how of the way human beings behave and a way
to incentivize them to do higher.

1. Maslow’s Hierarchy of Needs: Abraham Maslow, an American

psychologist, proposed the hierarchy of wishes in his paper, (A Theory
of Human Motivation). Maslow postulated that human beings are
encouraged while their wishes are fulfilled. Once individuals base
wishes and dreams are met, they encouraged to do extra. e.g, in case
individuals is a person who values a terrific paintings-existence
stability and peoples corporation gives him a part-time opportunity,
he`ll fortunately take the provide and satisfy peoples obligations to the
excellent of his abilities.

Herzberg’s Two-Factor Theory: Frederick Herzberg, an

American psychologist who have become an influential
discern/distinguish in commercial enterprise control, brought the
Two-Factor Theory, additionally referred to as the Motivator-
Hygiene Theory. This principle accommodates parts—hygiene
elements and motivation elements.

Hygiene elements, along with running conditions, income and

activity security, make certain that personnel are satisfied.

Motivation elements, along with recognition, obligation and

possibilities for boom, make certain that human beings are
advocated to higher their overall performance.

Herzberg believed that to obtain fulfilment corporations have to

attempt to keep a healthful stability among them.

McClelland’s Theory of Needs: David Clarence McClelland, an

American psychologist, proposed 3 motivating drivers that affect
people’s existence experiences.

i)The first is the want for fulfilment. He stated human beings with
an excessive want for fulfilment have a tendency to pursue
targets that maintain them accountable. They need
instantaneously acknowledgment in their efforts.

ii)People with the want for the second one sort of motivation,

iii)The want for affiliation, are encouraged through the social

relationships they construct and the tremendous interactions they
have. They thrive in social conditions and make the excellent of
interpersonal talents.

The Role of Motivation in Organizations: The function of a

supervisor or a group chief isn`t easy. Not most effective do they
shoulder the obligation of the complete group, however also are
required to provide them direction. Motivation is the simplest
manner to persuade activity pride on the workplace.

Increases Productivity: The function of motivation is to

recognize a person`s wishes and assist them discover the
excellent manner to make use of their genuine potential; an
encouraged worker can be inclined to place extra attempt into
their works •

Ensures Loyal Workforce: Motivation guarantees that personnel

are trusted to the corporation. This, in flip, reduces turnover
prices and enables to preserve the excellent of the group of
workers. •

Improves Organizational Efficiency: When human beings stay

engaged of their expert roles and are glad approximately the
outcomes, they`re much more likely to meet objectives with extra
enthusiasm.

Going Beyond Higher Salary Many corporations are beneath

the affect that a better income package deal or economic perks
are the most effective manner to interact personnel and raise their
morale. While economic incentives are a terrific motivator, they
aren`t the maximum possible within side the long-run.

Promotion possibilities, to guarantee others that there are

avenues for boom and improvement further to activity pride .
Job enrichment, wherein individual delegate obligations to others
and display them which organisation consider them to maintain
the fort .

Feedback, wherein organisation offer personnel with a positive

evaluation in their overall performance and offer them with
possibilities to enhance their abilities (e.g., upskilling)

Conclusion If organisation need to recognize its group`s

expectancies and use the excellent strategies to assist them live
encouraged.

The skill-will matrix will guide organisation in assessing human

being’s talents and willingness to carry out obligations.

Learn/identify the most effective ways of team management and

motivate everyone like a true leader

Concept of Motivation: The time period motivation is derived

from the phrase `motive”. The phrase `motive` as a noun
approach an objective, as a verb this phrase approach getting into
movement. Therefore, reasons are forces which set off human
beings to behave in a manner, for organisation to make certain
the success of a selected human want at a time. Behind each
human movement there's a motive.

Therefore, control ought to offer reasons to human beings to

cause them to be image for the corporation.

Motivation: Motivation may be defined as a planned

managerial process, which stimulates people to work to the
best of their capabilities, by providing them with motives,
which are based on their unfulfilled needs.
“Motivation means a process of stimulating people to action to
accomplish desired goods.” —William G. Scott
“Motivation is the process of attempting to influence others to
do organization’s will through the possibility of gain or reward.”
— Filippo
Motivation is, in fact, pressing the right button to get the
desired human behavior.
Motivation is no doubt an essential ingredient of any
Organization. It is the psychological technique which really
executes the plans and policies through the efforts of others.

Features of the Motivational Concept:

1. Motivation is a personal and inner feeling. Motivation is a

psychological phenomenon that occurs in an individual.

2. Motivation is based on needs: Without individual needs, the

motivational process will fail. This is the concept of behaviour that
adjusts human behaviour towards a particular goal.

3. Motivation is an ongoing process. Motivation is an ongoing

process, as people's needs are unlimited.
4. Motivation can be positive or negative. Positive motivations
promote people's incentives, and negative motives threaten the
implementation of false incentives.

5. Motivation is a planned process: Different people have different

approaches to responding to the motivational process. Because
they couldn't be motivated in exactly the same way. Therefore,
motivation is a psychological concept and a complex process.

6.Motivation is different from work satisfaction:

Importance of Motivation: Motivation is an important part of the

orientation process. While coaching a subordinate, the manager
must install and maintain the desire to work towards the set goals.

1.High efficiency: A good motivation system freez a vast unused

reservoir of physical and mental abilities. Many studies have
shown that motivation plays an important role in determining the
level of performance.
"Unmotivated people can destroy the most solid organizations,"
Allen said. By satisfying human needs motivation helps in
increasing productivity. Better utilisation of resources lowers cost
of operations. Motivation is always goal directed. Therefore,
higher the level of motivation, greater is the degree of goal
accomplishment.

2. Better Image: Companies that offer financial and personal

promotion opportunities have a better image in the employment
market. People like to work for a company. Because they have
development opportunities and a friendly attitude. This helps
recruit qualified staff and simplifies vacancies.

3. Make changes easy. Effective motivation helps overcome

negative employee attitudes such as resistance to change and
performance limitations. Satisfied employees are interested in
new business goals and are more willing to accept changes that
management may introduce to improve operational efficiency.

4.Relationships: Effective motivation creates job satisfaction,

which leads to a heartfelt relationship between the employer and
the employee.

Labour disputes, absenteeism and variability diminish with

corresponding benefits. Motivation helps to solve the core
management problem of effective utilization of human resources.
Without motivation, workers may not do their best and try to meet
the needs of outside the organization.

The success of an organization depends on the optimal use of

resources.

The use of physical resources depends on the work capacity and

motivation of employees.

In reality, the problem is not the ability, but the will needed to
work. Motivation is the most important tool for building such a will.

For this reason, Resins Likert said, "Motivation is at the core of

management." It is the key to management practice.

Theories of Motivation (Maslow`s Need Hierarchy &

Herzberg`s Two Factor Model Theory):

The basis of Maslow's theory is human needs and their satisfaction. ...
The needs of an individual are divided into two categories i.e.
survival/deficiency needs and growth needs as per Maslow. On the
contrary, in Herzberg's model, the needs of an individual are classified
into Hygiene and motivator factors.
Comparison of Maslow and Herzberg’s Theory of
Motivation shows the similarities and differences between
the hierarchy of needs and two-factor theory. Maslow and
Herzberg provided the most popular human motivation theories
used in the workforce.

Maslow’s hierarchy of needs and Herzberg’s two-factor

theory are compared and scientist find out what makes them
similar and also different.

Similarities of Maslow and Herzberg Theory of Motivation

There is a great similarity between Maslow’s and Herzberg’s

models of motivation.

A close examination of Herzberg’s model indicates that for those

employees who have achieved a level of social and economic
progress in the society, higher-level needs of Maslow’s model
(esteem and self-actualization) are the primary motivators.

However; they still must satisfy the lower level needs for the
maintenance of the current state.

So it can be said that money might still be a chief motivator for

most of the operative employees and also for some low paid
managerial people.

Herzberg’s model distinguishes 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 and motivational factors are somewhat
equivalent to higher-order needs.

Both models assume that specific needs energize behavior.

Although there are marked similarities in the two models, many

differences exist which are shown in the following way:

Differences Between Maslow and Herzberg Theory of

Motivation;

Why is Maslow’s and Herzberg’s Theory of Motivation different?

Issue Maslow’s Model Herzberg’s Model

Why is Maslow’s and Herzberg’s Theory of Motivation different?

Order of The hierarchical No such hierarchical

needs arrangement of needs. arrangement.

Emphasis Descriptive. Prescriptive

Unsatisfied needs
The essence
energize behavior; this Gratified needs cause
of the
behavior causes performance.
theory
performance.

Any need can be a

Only higher-order needs
Motivator motivator if it is relatively
serve as motivators.
unsatisfied.

Takes a micro-view and deals

Takes a general view of
with work-oriented
Applicability the motivational
motivational problems of
problems of all workers.
professional workers

The existence of some

factors creates a positive The positive and negative
Factors attitude and their non- factors are completely
existence creates a different.
negative attitude.
Conclusion: The main difference between them is that; the basis
of Maslow’s theory is human needs and their satisfaction. On the
other hand, Herzberg’s theory relies on reward and recognition.

The Process Theories (Vroom`s expectancy Theory & Porter

Lawler model):

assumes that behaviour results from conscious choices among

alternatives. Its purpose is to maximize joy and minimize pain.

Vroom recognizes that, employee performance is based on individual

factors such as personality, skills, knowledge, experience and abilities.

Vroom's Expectancy Theory: In 1964, Victor Vroom, a Canadian

professor of psychology at Yale School of Management, developed this
theory, he investigated people's motivations and came to the conclusion
that this depends on three factors:

i)expectations,
ii)means/instrumentality, and
iii)values/valence.

Abraham Maslow and Frederick Herzberg also investigated the

relationship between people's needs and their efforts. Vroom
distinguishes between people's efforts, performance, and revenue. His
theory is primarily related to motivation within the work environment.

When employees can make decisions at work, Victor Vroom insists that
in most cases they choose the one that motivates them most.
Components of Vroom Expectancy Theory: Motivational Force
Formula Victor Vroom uses the following formula to calculate
motivation.

Motivational power = expected value x means x valence expected value

This is about the relationship between employees' expectations of their

efforts (expected results) and good performance and results
(expectations of performance). Part of that expectation is the level of
difficulty he is experiencing. e. Difficulty of the goal. Organizations can
respond by finding factors that motivate employees to perform at their
best. It's about the relationship between performance and the right source
of motivation. These factors can be facility, training, or support from
managers who build trust in their employees.

Victor Vroom points out that more effort generally leads to better
performance. Providing juicy carrots can encourage employees to
demonstrate themselves if they are working properly and quickly. It is
also important that the right resources are available, if the employees
have the necessary skills, and that management provides the right
support. means All employees are gears of machines and appliances that
contribute to business performance.

It's about employee performance good enough to get the results

organisation want. Organizations can inspire this by actually keeping
promises of additional rewards such as bonuses and promotions.
Employees must believe that good performance shows appreciation for
the results. Transparency throughout the reward process is an important
prerequisite for the means.

The end results achieved by employees are evaluated in different ways

for each individual. This value is based on individuals own basic needs.
Therefore, it is a good idea for a company to know what individual
employees value and what their personal needs are as a source of
motivation. One may be worth the money, the other may appreciate
more holidays.

Vroom's Expectancy Theory: Individual Factors According to Victor

Vroom, behaviour is the result of a conscious choice of expectations.
Employees like to get the most out of their work with a little effort.
Individual factors play a major role in the goals to be achieved and the
behaviour of employees. viz;, consider an employee's personality,
knowledge, skills, and what they expect from their abilities. Together,
they form a motivational force that encourages employees to take
specific actions. Individual efforts, performance and motivation are
always relevant.

To properly motivate employees, Vroom argues that, a positive

correlation between effort and performance is important. Sensing
Perception is an important element of Vroom's theory. As an employer,
an organization may think that it provides employees with everything
they need to properly motivate them. say, salaries above industry
averages, , training programs, or career opportunities etc.

However, not all employees are fully motivated by this. Everyone has
different perceptions. Some employees may want more help from their
boss. If an organization fails in this regard, it can discourage employees.

Vroom's motivational theory is not necessarily about personal interest in

employee compensation. It's also about the clubs that employees have
with respect to their performance and the resulting consequences.

Application of Vroom's Expectancy Theory: According to Vroom's

theory, employees can be expected to increase their work efforts if the
rewards have higher personal value to them. Organisation will be more
aware of the fact that there is a link between individual efforts and the
consequences. This means that both organization and individual
employees need to be aware of following three processes:
1. Increased effort improves work performance
2. Improved performance leads to greater rewards

3.The rewards provided will be evaluated by the employee.

If any of these conditions are not met, it is difficult to motivate

employees. Especially the last part can be a problem. Therefore, the
organization must, along with its employees, find something that
rewards the value of each individual employee. Even though this theory
shows that this theory is not always the most important factor for
employees, companies often consider monetary compensation to be the
best way to motivate their employees. Therefore, there is a balance
between providing monetary bonuses and clear performance criteria
tailored to individual employees.

The Porter Lawler model (Porter and Lawler, 1968) extends Vroom's
expectancy theory. Opens in a new window that includes motivation, job
satisfaction, recognition of intrinsic and extrinsic rewards, skills, traits,
role recognition, and implicit equity theory.

Contemporary Theories- Equity Theory of Work Motivation.

Equity theory, is based on an individual's perception of how fair they are

treated compared to their peers. Fairness means justice or fairness, and
refers to the fairness recognized in relation to how employees are treated
in the workplace and the rewards they deserve.

Motivational Theory: Early and Modern (Modern) Motivational

Theory is used to understand, explain, and influence human behaviour.
It allows leaders to find reasons for people's actions, desires, and needs.
Motivation theory also explains how individual can influence the
direction of once behaviour. This allows individual to control and direct
employee behaviour. Many motivational theories have been developed
by phycologists and human resource experts.
Early Motivational Theory Early theories are important because they
provide a growing foundation for modern theories. Practical leaders still
regularly use these theories and their terms to explain employee
motivation. The early motivational theories are:

1. Maslow's Need Theory Hierarchy,

2. ERG theory developed by Clayton Alderfer.

3. Theory X and Theory Y by McGregor

4.Two-factor theory of Motivation-Herzberg's hygiene and motivational

factors.

Modern or Contemporary Motivational Theories: The following

theories are considered modern or contemporary as they are not only
inevitably recently developed, but also represent the cutting edge in
explaining employee motivation.

1. Obtained Need Theory from McClelland.

2. Goal setting theory by Edwin Locke.

3. Albert Bandura's theory of self-efficacy.

4. Reinforcement theory by B.F. Skinner and his colleagues

5. Cognitive evaluation theory,

6. Expectancy theory by Victor H. Vroom,

7.J. Stacy Adams' Equity Theory.

In summary, motivation is a means of encouraging people to perform

their tasks efficiently and to work together to achieve common goals.
Adams Equity Theory of Motivation: In the Workplace Equity Theory
helps to analyse employee motivation in terms of equality and equity.
Motivation in the workplace depends on the employee.

For some employees, motivation means money, status, and so on. For
other employees, do the best to be a top performer. Many leaders have
spent time in understanding the theory of employee perception and
motivation. . One such motivational theory is equity theory,

Equity theory, also known as motivational equity theory, was introduced

in 1963 by workplace behavioural psychologist John Stacey Adams. It's
based on a simple idea. A successful workplace can motivate team by
treating everyone with respect and dignity.

According to the Adams Equity Theory of Motivation, employees who

are aware of the situation of inequality between themselves and their
colleagues feel discouraged and desperate. For example, if an employee
knows that a colleague is getting a higher salary for the same amount of
work, this can lead to dissatisfaction. Theory also states that the higher
the justice (fairness) of an employee, the more motivated they are.

Similarly, inequality is the main reason employees are discouraged. To

fully understand Adams Equity Theory, we need to understand the
inputs and outputs of employees.

Input is nothing more than what employees do to achieve output. Input is

only a small or significant contribution that an employee makes to the
organization. for example:
Number of working hours
Engagement
Enthusiasm
Practical experience
Personal victims (if any)

Loyalty to mentors, managers and organizations •

Duties and responsibilities •
Flexibility to work under pressure and tight deadlines

The output, commonly referred to as the result, is what the employee

receives based on the input in the organization. Some of these are
important benefits such as salaries, or intangible benefits such as flexible
working hours and awards.
Some of the typical problems are:
salary
Bonus
Company trip
Detection
Promotion
Performance evaluation
Flexibility
Significant achievements
Learn and develop

Understanding the basics of input and output will help individual clearly
define justice.

The definition of equity is the performance of an employee divided by

the input. However, Adam's equity theory is a level up, stating that
individuals do not measure justice alone. Instead, they compare
themselves to their colleagues. When individual encounter an unjust
situation, individual tend to adjust inputs to keep the balance.

To keep the balance, employees are constantly adjusting their inputs.

Let's assume that the X and Y inputs are the same. However, the output
of Y is much larger than the output of X, so X feels very discouraged.
Also, employees need to make better contributions if their achievements
are more meaningful than their peers doing the same job.

Awareness of employee fairness depends on how bosses treat them by

giving them equal respect and opportunity.

Comparison method: Reference group is a group of people that

people use for comparison. According to Adam's theory of justice-

There are four important reference groups that people tend to compare
themselves to.

1. Self-inside: Employee's essential experience in the current workplace

2. Self-outside: Employee experience with industry standards

3. Other: Employees compare themselves to someone in their current

job

4.Other outside: A person who compares himself to someone outside

the workplace

When the same employee compares his salary to an acquaintance of

another company, he has a relationship with another person outside.
When comparing salary to previous job, this is out of the self and
when they think about their achievements in the same organization, it
refers to self-inside.

The equity theory of motivation in the workplace can be applied when

employees compare themselves to people who have completely opposite
jobs and significant salary differences. Employees determine input in
very different ways.
As a leader or manager, keep in mind that equity theory is widely
applicable. Each employee reacts to unjust relationships in a unique
way.

Critical Points for Managers to Understand Equity Theory:

Employees measure the entire input for all outputs.

For example, single parents accept flexible working hours and low
wages .
Social comparison plays an important role and is fair to all employees at
the same time.
Two employees doing the same job compare their performance to their
individual perceptions.
As a good team leader, individual need to learn these expectations and
influence values.
Older employees receive more salaries than juniors. However, paying
too much salary is a sign of discouraging other employees.
Individual need to know to balance the two .
Employees with higher compensation and awards increase their
commitment. When employees feel low wages, their motivation also
declines. Managers also need to keep an eye on the opportunities
available to reduce workplace inequality and prejudice.
Summary of Equity Theory Overall, the Adams Equity Theory of
Motivation shows that if all employees are given equal and equitable
opportunities, they can achieve greater motivation. Employees typically
compare themselves to other employees inside and outside the company.
They compare the sum of all inputs to the sum of all outputs. When they
see inequality and injustice, they will reduce their contribution to
compensation. Individual choose to work more or less depending on the
positive or negative of the situation.