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    Chapter 6 :Human Resource Management

    (Part 2)

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    What do you want tolearn or focus on inthis course?• ____________ ____________

     ____________ ____________ ____________

     ____________ ____________ ____________

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     After studying this chapter, you should be able to:

    6.2 Identify psychology in industry.6.2.1 List benefit industrial psychology.

    6.2.2 Define scope of industrial psychology.

    6.2.3 Justify theory X and Y.

    6.3 Identify types of morale.

    6.3.1 Describe concept of morale.

    6.3.2 Identify types and methods to measure

    & improve of morale.

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      What Is Industrial/Organizational(I/O) Psychology?

    6.2 Identify Psychology in Industry

    • Psychology is the science of human behavior.

    • I/O psychology is the science of human behavior at work. 

    • Definition: - Application of psychological theory and research methods

    (principles) to issues concerned with work.

    • Domains: – Cognition (worker perception) –  Affect (worker emotion)

    • Influences worker going beyond call of duty.

     – Behavior

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    Industrial Psychology • n. The branch of applied psychology that is concerned with

    efficient management of an industrial labor force and especiallywith problems encountered by workers in a mechanized

    environment.

    http://www.thefreedictionary.com/industrial+psychology

    What Is Industrial/Organizational(I/O) Psychology?

    Defined by the Society for Industrial and Organizational Psychology

    (SIOP) as:

    "the scientific study of the workplace." As a type of appliedpsychology, I-O psychology assists organizations in selectingpersonnel with a focus toward how to maximize human capital.

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    Industrial vs Organizational Psychology

    • Industrial Psychology (personnel psychology ): – Personnel selection--individual differences of employees

     – Prediction of job performance.

     – Covers job analysis• distinguish what a successful worker from unsuccessful

     – and selection, training, performance appraisal.• Job performance = company “bottom line”  

     – Traditionally, correlational approach used for research(motivation, interview test)

    • Organizational Psychology (social life aspects applied to work) : – Leadership

     – Not only job performance, but satisfaction, motivation, etc.

     – Traditionally experimental research method

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    6.2.1 List Benefit Industrial Psychology

    • Even though hiring an IO psychologist is costly forcorporations and organizations, employers typicallyreceive benefits by listening to the psychologist andemploying her suggestions.

    Benefits :

    • Lower employee turnover rates,

    • Helping organizations to maximize their human

    capital.• Decreased cost of overall production and

    company-to-employee match.

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    6.2.2 Define Scope of Industrial Psychology

    Scope of Industrial Psychology:• Selection• Training• Organizational Development

    • Performance Appraisal• Quality of Work-life

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    6.2.2 Define Scope of Industrial Psychology

    Selection

    • Develop, validate, and administerpsychological tests to assess (measure) skills,abilities and interests as aids in selection andplacement and promotion.

    • Hiring systems :- Recruitment.- Testing (Integrity tests and biographical inventories).- Interviews.

    - Work Samples and Exercises.

    • Placement : - matching job and employee characteristics. 

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    6.2.2 Define Scope of Industrial Psychology

    Training

    •  Analyze: First thing I/O dude does, is try tounderstand nature of job--knowledge & taskrequirements.

    • Conduct training programs, and evaluate the

    effectiveness of training.• Orientation

     –  Acquaint employees with the organization andwith other employees

    • Formal Training

     – Overlearning – making the task “automatic”   – Employee development

    • Mentoring –  “Natural” mentoring relationships 

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    6.2.2 Define Scope of Industrial Psychology

    Organizational Development•  Analyze organizations’ culture/climate, developinterventions --> increase in efficiency. – Deal with issues within the organization.

     – Help the organization transition to a desired state.

     – Includes people, structures, technology, etc… 

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    Performance Appraisal• Develop rating scales, and other measures of individual /

    organizational performance to improve employeeperformance.

    • Determine how to measure employee performance.

    • Link appraisal with other organizational systems, such astraining, pay, promotion, termination and/or downsizing,etc...

    6.2.2 Define Scope of Industrial Psychology

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    Quality of Work-life• Previously, human workers were not viewed as human• Develop surveys that assess employees’ satisfaction with

    their jobs and commitment to the organization.Satisfaction: one of most common surveys.

    • Examine factors that contribute to healthy and productiveworkforce

    • May include job design to increase employee motivation,satisfaction, etc… 

    6.2.2 Define Scope of Industrial Psychology

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    Theory X and Theory Y: Douglas McGregor• Douglas McGregor (1906-1964)

     –  Articulated basic principles of human relations theory. – To understand human behavior, one must discover the

    theoretical assumptions upon which behavior is based. – Especially interested in the behavior of managers toward

    workers. –  “Every managerial act rests on assumptions,

    generalizations, and hypotheses--that is to say, on theory

    . . . Theory and practice are inseparable.”   – Two Objectives:• Predict and control behavior• Tap Unrealized potential

     – FOCUS: Manager’s assumptions about HUMAN NATURE. 

    6.2.3 Justify theory X and Y

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    Theory X and Theory Y

    • Theory X Assumptions – People dislike work

     – Need controlling and

    direction – Require security

     – Motivated by threatsof punishment

     – Avoid beingresponsible

     – Lack ambition

     – Do not useimagination

    • Theory Y Assumptions – People regard work as

    natural and normal

     – People also respond torecognition andencouragement

     – Commitment matchedto reward system

     – Seek inner fulfillment – Accept responsibility

     – Can be creative andinnovative

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    Your Task

    •  As a manager you need to get an important order out quickly,

    by the end of this week at the latest!!!

    • 1) Outline how you would put this to the workers if you believedin Theory X (How are you going to convince workers to workquickly??)

    • 2) Outline how you would put this to the workers if you believedin Theory Y

    • 3)What are the three main differences in the two approaches

    • 4)Which theory would you personally support? State yourreason as fully a possible

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    6.3 Identify Types of Morale

    Types of Morale

    Individual Morale Group Morale

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    6.3 Identify Types of Morale

    a) Individual Morale

    • The components of morale are still rather elusive, despite growingagreement upon several generalisations.

    • One of these generalisations is that the group climate mustprovide opportunity for individual self-expression or self-accommodation by the members of the group.

    •  Another is that the occupational context must furnish outlets forthe individuals pride in his own workmanship.

    • Still another and more important is that members of the groupmust find it easy to accept the purposes and values of the groupas their own so that they have a sense of belonging to the groupor identity with it.

    •  All these may be described as individualistic bases of morale.

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    6.3 Identify Types of Morale

    b) Group Morale

    • Hawthorne studies pointed out, pride in group is an importantcomponent of morale.

    • Employees like to belong to be part of and be accepted by the group

    even where and employee dislikes the actual work itself.• He may have high morale, stemming from his pleasure of group with

    his group work.

    • Where there is a well integrated group, there would be high groupmorale, as well as individual morale.

    • Since good supervision correlated with good group morale, specialattention should be paid to the training programme of supervisorystaff.

    • Whether it is group or individual morale, it must be evaluated fromtime to time in the interest of the organisation.

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    Meaning: • Morale is an indicator of the attitude of employees

    towards their jobs, superiors and their organisationalenvironment.

    • It is a collection of the employees’ attitude, feelings and

    sentiments.• 'Morale' is an attitude of satisfaction with desire to

    continue in and willingness to strive for the goals of aparticular organisation.

    • There are two important elements: – Firstly, that the individual shares the purpose which gives

    him enthusiasm, energy and self-discipline. – Secondly, the responsibility of the authorities to infuse

    the feeling of togetherness, a sense of identification andhis consideration for other members of the institution.

    6.3.1 Describe Concept of Morale 

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    Definition:•  According to William Spriegel, “morale is the co-

    operative attitude or mental health of a number ofpeople who are related to each other on some basis”. 

    •  According to Leighton, “morale is the capacity of agroup of people to pull together persistently andconsistently in pursuit of a common purpose”. 

    6.3.1 Describe Concept of Morale 

    • It refers to team spirit and co-operation of people for a

    common purpose.• It is felt by the management that if the morale of the

    employees is high, production would be higher andvice-versa.

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    Characteristics of Morale:• Morale is basically a psychological concept.

    • Morale is intangible therefore it is very difficult tomeasure the degree of morale accurately.

    • Morale is contagious in the sense that people learnfrom each other.

    • Morale in dynamic in nature. It cannot be developedovernight. Managers have to make continuous effortsto build and maintain high morale. It is a long-termconcept.

    • Morale is a group phenomenon consisting of apattern of attitudes. It is the sum total of employees’attitudes, feelings and sentiments.

    6.3.1 Describe Concept of Morale 

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    Significance of Morale:

    • Morale is the vital ingredient oforganisational success becauseattitudes and sentiments ofemployees greatly influence

    productivity and satisfaction ofemployees.

    • Morale may be high or low; when themorale of the employees is high, theyco-operate fully with the managementtowards the achievement of

    organisational objectives.• High morale leads to good discipline,

    high degree of interest in the job ,loyalty to the organisation and highperformance.

    6.3.1 Describe Concept of Morale 

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    Consequences of low Morale: Low morale indicates the presence of mental unrest.

    This mental tension or unrest not only hampersproduction and productivity but also leads to ill-health ofthe working people. The other consequences of lowmorale are the following:

    1. High rate of labour turnover.2. High rate of absenteeism.3. Excessive complaints and grievances.4. Resistance to change.5. Lack of discipline.

    6. Low quantity and quality of output. Low morale can be fatal to the organisation. In order to

    avoid the evil consequences of low morale, everymanager should attempt to build high morale amongsthis subordinates.

    6.3.1 Describe Concept of Morale 

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    Steps to build High Morale: • Every manager should attempt to build high morale of his

    subordinates. Both individual and collective efforts are requiredto develop and maintain high morale. The following measuresare taken to improve the morale of employees in theorganisation:-

    - A fair system of wage and salary payments should be evolved.

    - A sense of security of job should be ensured.

    - The promotion policy should be sound and should be followed promptly.- Competent supervisors should be appointed.- The channel of communication should be effective.- The employees should be made to feel proud of being employed in the

    organisation.

    - Employees’ welfare schemes like housing, medical benefits, educationfacilities for children, canteen, credit facilities, and safety measuresshould be provided as they are very helpful in developing positiveattitude among the employees.

    - Workers should be given proper training so that they may perform their jobs without frustration and get job satisfaction.

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    • Morale is not static. It is subject to daily, or even to monetaryfluctuations.• It is also subject to long-term secular trends. It is useful to think

    of long-term morale trends as responses to pressures & supports.• Usually policy on morale seeks to develop & maintain high levels

    of morale among employees through appropriate means.

    • The following measures are suggested for morale building.

    i. Job Satisfaction:The personnel policy should make jobs as interesting andsatisfying as possible; it tends to encourage a favourable andenthusiastic group action.

    ii. Job Training:Job training, orientation, education, apprentice training and abroad variety of general educational efforts will help in buildingup employees' morale.

    6.3.2 Identify Types & Methods to Measure &

    Improve of Morale

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    iii. Recognition of Aspirations: Recognition of individual aspirations andgoals, and definite provision of means bywhich such goals can be achieved will go along way in boosting morale.

    iv. Unrest: A careful study must be made on variousindices of employees unrest, with theultimate objective of constructive guidanceand action.

    v. Counselling Interviews:Counselling Interviews help to discover thefeelings of employees.

    6.3.2 Identify Types & Methods to Measure &

    Improve of Morale

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    vi. Opportunities:promising opportunities like good promotionalavenues, good working conditions, satisfactoryremuneration and other benefits for personaldevelopment.

    vii. Relations:The supervisory staff should ensure, humanrelations, informal relations, fact finding andadopt participative and employee orientatedattitude.

    viii. Facilities: Apart from the above measures, the facilitieslike, transport, housing, health, family welfare,children's education, and other recreationalfacilities would also help in building upemployees morale.

    6.3.2 Identify Types & Methods to Measure &

    Improve of Morale

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    3. Spies and Informers • In earlier times the employers are used to hire spies and placed them

    in various departments for the specific purpose of finding out whatemployees thought of their jobs and of working conditions in theorganlsation.

    • Morale survey methods are varied from one organisation to another.However, it all depends upon the nature of the work of employee,organisation, authorities' outlook, and size of the organisation etc.

    4. Indices of Morale • Morale, as it is an attendant condition of an activity rather than an

    activity itself, can be measured only indirectly. The following are someof the indices of employee's morale. –  Absenteeism:  A high rate of absenteeism indicates poor morale. – Grievances: Some grievances may arise out of poor morale. – Output Level: High level of output may indicate high level of morale.

    6.3.2 Identify Types & Methods to Measure &

    Improve of Morale