ADVANCED BANK MANAGEMENT
HUMAN IMPLICATIONS OF ORGANIZATIONS STRUCTURE
22.0 Objectives
22.1 Human Behaviour and Individual Differences
22.2 Employees Behaviour at Work Check Your Progress (A, B and C)
22.3 Diversity and Gender Issues 2'.4 Theories of Motivation and their Practical Implications Check Your Progress (D, E and F)
22.4 Role Concept and Analysis Check Your Progress
(G) Let Us Sum Up Keywords Answers to Check Your Progress (A, B, C, D, E, F and G) Terminal Questions Suggested for Further Reading 1 29
22.1 HUMAN BEHAVIOUR AND INDIVIDUAL DIFFERENCES
According to psychologist Kurt Lewin, behaviour is a function of the person and the environment around him.
The behavior of an individual is influenced by several factors. These can be grouped under the following heads:
1. Environmental Factors:
(a) Economic, (b) Social (norms and cultural values) (c) Political;
2. Personal Factors:
(a) Age, (b) Sex, (c) Education, (d) Abilities, (e) Marital Status, (f) No. of dependants
3. Organizational Factors: (a) Physical Facilities, (b) Organization Structure and Design, (c) Leadership, (d) Compensation and Reward System, etcetera.;
4. Psychological Factors: (a) Personality, (b) Perception, (c) Attitudes, (d) Values. (e) Learning.
One of the well-known studies (Hawthorne studies) has made it clear that economic motives alone do not explain human behavior. Social interactions at workplace, especially how they are treated, and how their contributions are acknowledged, make a big difference in their attitude to perform. Thus the idea of 'social man' was developed.
The team-building skills which are founded on individual behavior and interpersonal skills can help in getting synergy at workplace where the cooperation and collaboration can improve the group performance and output beyond the individual contributions.
Synergy is the highest activity of life, it creates new untapped alternatives; it values and exploits the mental, emotional and psychological differences between people.
Salvotore Maddi defined personality as a stable set of characteristics and tendencies that determine those commonalities and differences in the psychological behaviour (thoughts, feelings, and actions) of people that have continuity in time and that may not be easily understood as the sole result of the social and biological pressures of the moment.
There are several theories to explain the concept of personality.
Type A and Type B behaviour profiles
Restless by nature, so that he always moves, walks and eats rapidly.
Is impatient with the pace of things, dislikes waiting and is impatient with those who are not impatient
Multitasker – does several things at once.
Tries to schedule more and more in less and less time, irrespective of whether everything is done or not.
Usually does not complete one thing before starting on another.
Often displays nervous gestures such as clenched fist and banging on a table.
Does not have time to relax and enjoy life.
Type B personality, however, is systematic and methodical in his day-to-day work. He has full control over time and does not complain of lack of time even due to pressure of work. This is because he plans the work in such a way that urgent and important matters are disposed of in time.
Erikson has identified eight developmental stages in explaining the personality. These stages which are based on a person's state of mind at a given point of time are mentioned below:
Stage 1: Trust versus Mistrust
Stage 2: Autonomy versus Shame and Doubt
Stage 3: Initiative versus Guilt
Stale 4: lndustry versus Inferiority
Stage 5: Identity versus Role Diffusion
Stage 6: Intimacy versus Isolation
Stage 7: Growth versus Stagnation
Stage 8: Integrity versus Despair
Check Your Progress (A) Answer the following – True or False:
1. Type ‘A’ person feels a chronic of time urgency. -- True.
2. Type ‘B’ is an easy going individual. -- True.
3. Type ‘A’ person is not achievement oriented. --- True.
4. Type ‘B’ person does not experience any competitive drive in his activity. --False.
5. Erikson's model of personality has eight stages. --True.
6. During youth, according to Erikson, one develops a need for intimate relationship with others. -- True.
7. There is mutuality of interest among organizational members. --True.
8. Type ‘B’ person does several things at a time. -- False.
There are certain common patterns and variables which determine the personality of the people. Accordingly, experts have developed certain personality theories:
Psycho-analytical Theory (PT)
Based primarily on the Freudian concept of unconscious, subconscious and conscious nature of personality.
Human behaviour and motivation are the outcome of psychoanalytic elements, namely, id, the ego, and the super ego.
Id is the foundation of the unconscious, Ego is conscious in nature and relates our conscious urges to the outside world. It keeps the id in check through the realities of the external environment. Because of difficulty of keeping the id under control, ego is supported by super ego. The super ego is the higher level restraining force and can be described as the conscience of the person.
All these three Freudian elements (id, the ego, and the super ego) are interrelated and each cannot exist in isolation from others. In order to create a 'normal' personality, there must be a balance in the relationship among these three forces.
Trait Theory
Trait theory believes that the traits of a person which determine his personality and behaviour are basically inherent to a person, that is, more of a heredity impact than the environment .
On the basis of Trait theory, people can be described as aggressive, loyal, pleasant, flexible, humorous, sentimental, impulsive, cool and so on.
Self-Concept Theory
This theory believes that personality and behaviour are to a great extent determined by the individual himself. We have an image of our own and our actions would be consistent with that image.
Carl Rogers is closely associated with this theory, When we get positive feedback from others in response to our behaviour, our self-concept is positively reinforced. On the other hand, when we get negative feedback, our self-regard is lowered, resulting in tension and anxiety.
Social Learning Theory
This theory believes that personality development is more a result of social variables than biological factors.
Personality is the sum total of all that a person has learned. The social learning theory uses 'reinforcement and punishment' approach in understanding personality.
For example, frustration caused by external environment, causes and reinforces aggression as a personality trait. Also, good behaviour is rewarded by the society in terms of praise which further reinforces good behavior. Thus, behavior and external environment have mutual interaction.
Check Your Progress (B) Answer the following  True or False:
Id is the foundation of the unconscious. …. True.
In order to create a normal personality there should be a balance in the relationship among the id, the ego and the super ego. …. True.
People behaving in a forceful manner in most situations could be described as sentimental. …. False.
We have an image of our own and our actions are consistent with that image. …. True.
Personality is a sum total of all that a person has learnt. …. True
Personality and Brain (Left and Right Brain)
An important biological factor which influences personality is the role of brain of an individual. Two types of contribution can be found in this area: Electrical stimulation of the brain (ESB) and split brain psychology.
Accordingly it may be possible physically to manipulate personality through ESB. It may also be possible to use ESB as a method of reducing stress and tension and stimulate creative thinking.
Matching Personality with Jobs
John Holland's personality job fit theory is of late receiving increasing attention.
The theory is based on the match of personalities with jobs.
Holland presents six personality types and proposes that satisfaction and dissatisfaction with the job depends on how individuals successfully match their personality with their occupations
Check Your Progress (C) Answer the following statements in True or False:
1. Human brain is believed to contain definite pleasurable and painful areas. …. True.
2. Extroverts are quiet, reflective people. …. False.
3. Successful people have high tolerance for ambiguity. …. True.
4. Individuals with low self-esteem take more risk in their career. …. False.
5. Personality job fit theory was developed by John Holland. …. True.
6. Right brain controls intuitive and creative behaviour. …. True.
7. Left brain controls analytical behaviour. …. True.
8. Right brain controls Speech and Verbal ability. …. False.
22.3 DIVERSITY AND GENDER ISSUES
The three predominant traditional HR approaches for managing diversity are: diversity enlargement, diversity sensitivity and cultural audits
Diversity enlargement approach increases the representation of individuals of different ethnic and cultural backgrounds in an organization. The goal of this strategy is to create diversity by changing an organization's demographic composition.
Diversity sensitivity approach acknowledges the existence of cultural distance and attempts to teach individual members about cultural differences via training. The purpose is to promote communication and understanding, and to build relationships among members of different backgrounds
A third strategy, the cultural audit, generally tries to determine what is blocking the progress of nontraditional employees. Data is collected through surveys to assess various demographic groups' identification of major obstacles they face in the current culture.
Gender Issues
The Equal Remuneration Act, 1976 has provided for the payment of equal remuneration to men and women employees and for prevention of discrimination on the grounds of gender against women.
To improve the status of women in society, the government has recently amended the Hindu Succession Act 1956 to give equal rights to female successors at par with their male counterparts in ancestral property.
THEORIES OF MOTIVATION AND THEIR PRACTICAL IMPLICATIONS
In its simplest form motivation in an organizational context is referred as 'the extent of willingness of an employee to respond to the organizational requirements'.
Motivation is generally directed, consciously or unconsciously, towards satisfaction of needs (motives). Motivation has direct impact on the job performance of individuals. Motivation is a process beginning from inner state of a person and ending with need fulfillment.
The various theories of motivation are:
Scientific Management or Rational Economic View
F W Taylor, who is known as the Father of Scientific Management, has contributed much to the theory of motivation. Scientific Management is a set of methods and techniques applied to organization of work at the operational level for the purpose of increasing efficiency.
Taylor's logical and rational approach to management explained that people are primarily motivated by economic considerations and will exert more if offered opportunity to improve their economic gains
Taylor believed that workers would be motivated more by the need for money (this assumption is called 'rabble hypothesis'). He thought that the primary interest of the worker is economic gain in the form of higher wages
Contrary to this rabble hypothesis, workers seek satisfaction of a variety of needs in the workplace like need for security, social fulfillment, and a challenging job, including pay.
Human Relations Model
Elton Mayo in 1920s and early 1930s conducted Hawthorne Studies at Western Electric Company. He found that in addition to finding the best technological methods to improve output, management needs to look into human affairs.
The organizations were to be developed around the workers and had to take into consideration human feelings and attitudes.
Elton Mayo and his team found that the social contacts which the workers have at workplaces are also important.
In the Scientific Management Model the workers were expected to accept management's authority in return for higher wages. In the Human Relations Model, workers were expected to accept management's authority because supervisors treated them with consideration and were attentive to their needs.
Check Your Progress (D)
Answer the following statements in Yes or No:
1. The term Motivation has been derived from the Latin word 'movere' (to move). …. Yes.
2. Taylor's Scientific Management theory belongs to Content Theories of Motivation. …. No.
3. Human Relations Model is one of the early theories of Motivation. …. Yes
4. Elton Mayo contributed to a great extent to Human Relation Model. …. Yes
3. Abraham Maslow's Need Hierarchy Theory
Abraham Maslow, a clinical Psychologist from USA submitted (1954, 1968) that people have the following five basic levels of needs.
The prominence of these needs generally follow a hierarchy i.e. when a need is satisfied then only the next need becomes prominent in that hierarchal order.
He identified five needs in an order of hierarchy, namely:-
4.Herzberg's Two-Factor or Motivation-Hygiene Theory
Frederick Herzberg (1959) extended the work of Maslow and developed a specific content theory of work motivation
He asked them two questions:
Herzberg's theory is based on a two-factor hypothesis, that is, factors leading to job satisfaction and the factors leading to job dissatisfaction. The factors so identified were classified by him into two categories: 1. Motivational Factors; and 2. Hygiene or Maintenance Factors.
Check Your Progress (E)
Please mention whether the following statements are true or false:
1. There are five types of needs according to Maslow's theory. …. True.
2. Self-esteem needs is the highest need in Maslow's Need Hierarchy. …. False.
3. Herzberg theory is prescriptive in nature. …. True.
4. Herzberg's theory is based on two factors namely motivators and hygiene. …. True.
5 ERG Theory
This theory is based on existence, relatedness and growth. These are the three sets of needs in organization. ERG theory was advanced by Clayton Alderfer.
Alderfer argued on the same lines of Maslow that people have needs in a hierarchy and that these needs are important determinants of human behaviour relating to work performance. These needs are related to survival and growth
The ERG counters by noting that when a higher level need is frustrated, the individual's desire to increase a lower level need takes place.
6 Achievement Motivation Theory
This theory was developed by David C. McCelland and his associates. According to this theory, there are three needs, namely, need for achievement, need for power<
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