Chapter 6 :

Human Resource Management

(Part 2)

What do you want to

learn or focus on in
this 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.

6.2 Identify Psychology in Industry

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

What Is Industrial/Organizational
(I/O) Psychology?
Industrial Psychology
n. The branch of applied psychology that is concerned with
efficient management of an industrial labor force and especially
with problems encountered by workers in a mechanized
environment.
http://www.thefreedictionary.com/industrial+psychology
Defined by the Society for Industrial and Organizational Psychology
(SIOP) as:
"the scientific study of the workplace." As a type of applied
psychology, I-O psychology assists organizations in selecting
personnel with a focus toward how to maximize human capital.

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

6.2.1 List Benefit Industrial Psychology

Even though hiring an IO psychologist is costly for
corporations and organizations, employers typically
receive benefits by listening to the psychologist and
employing her suggestions.

Benefits :
Lower employee turnover rates,
Helping organizations to maximize their human
capital.
Decreased cost of overall production and
company-to-employee match.

6.2.2 Define Scope of Industrial Psychology

Scope of Industrial Psychology:

Selection
Training
Organizational Development
Performance Appraisal
Quality of Work-life

6.2.2 Define Scope of Industrial Psychology

Selection
Develop, validate, and administer
psychological tests to assess (measure) skills,
abilities and interests as aids in selection and
placement and promotion.
Hiring systems :
-

Recruitment.
Testing (Integrity tests and biographical inventories).
Interviews.
Work Samples and Exercises.

Placement :
- matching job and employee characteristics.

6.2.2 Define Scope of Industrial Psychology

Training
Analyze: First thing I/O dude does, is try to
understand nature of job--knowledge & task

requirements.

Conduct training programs, and evaluate the

effectiveness of training.
Orientation
Acquaint employees with the organization and
with other employees
Formal Training
Overlearning making the task automatic
Employee development

Mentoring
Natural mentoring relationships

6.2.2 Define Scope of Industrial Psychology

Organizational Development
Analyze organizations culture/climate, develop
interventions --> increase in efficiency.
Deal with issues within the organization.
Help the organization transition to a desired state.
Includes people, structures, technology, etc

6.2.2 Define Scope of Industrial Psychology

Performance Appraisal
Develop rating scales, and other measures of individual /
organizational performance to improve employee
performance.
Determine how to measure employee performance.
Link appraisal with other organizational systems, such as
training, pay, promotion, termination and/or downsizing,
etc...

6.2.2 Define Scope of Industrial Psychology

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 productive
workforce
May include job design to increase employee motivation,
satisfaction, etc

6.2.3 Justify theory X and Y

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: Managers assumptions about HUMAN NATURE.

Theory X and Theory Y

Theory X Assumptions Theory Y Assumptions
People dislike work
Need controlling and
direction
Require security
Motivated by threats
of punishment
Avoid being
responsible
Lack ambition
Do not use
imagination

People regard work as

natural and normal
People also respond to
recognition and
encouragement
Commitment matched
to reward system
Seek inner fulfillment
Accept responsibility
Can be creative and
innovative

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 believed
in Theory X (How are you going to convince workers to work
quickly??)
2) Outline how you would put this to the workers if you believed
in Theory Y
3)What are the three main differences in the two approaches
4)Which theory would you personally support? State your
reason as fully a possible

6.3 Identify Types of Morale

Types of Morale

Individual Morale

Group Morale

6.3 Identify Types of Morale

a) Individual Morale
The components of morale are still rather elusive, despite growing
agreement upon several generalisations.
One of these generalisations is that the group climate must
provide opportunity for individual self-expression or selfaccommodation by the members of the group.
Another is that the occupational context must furnish outlets for
the individuals pride in his own workmanship.
Still another and more important is that members of the group
must find it easy to accept the purposes and values of the group
as their own so that they have a sense of belonging to the group
or identity with it.
All these may be described as individualistic bases of morale.

6.3 Identify Types of Morale

b) Group Morale
Hawthorne studies pointed out, pride in group is an important
component 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 group
morale, as well as individual morale.
Since good supervision correlated with good group morale, special
attention should be paid to the training programme of supervisory
staff.
Whether it is group or individual morale, it must be evaluated from
time to time in the interest of the organisation.

6.3.1 Describe Concept of Morale

Meaning:
Morale is an indicator of the attitude of employees
towards their jobs, superiors and their organisational
environment.
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 a
particular 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 and
his consideration for other members of the institution.

6.3.1 Describe Concept of Morale

Definition:
According to William Spriegel, morale is the cooperative attitude or mental health of a number of
people who are related to each other on some basis.
According to Leighton, morale is the capacity of a
group of people to pull together persistently and
consistently in pursuit of a common purpose.

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 and
vice-versa.

6.3.1 Describe Concept of Morale

Characteristics of Morale:
Morale is basically a psychological concept.
Morale is intangible therefore it is very difficult to
measure the degree of morale accurately.
Morale is contagious in the sense that people learn
from each other.
Morale in dynamic in nature. It cannot be developed
overnight. Managers have to make continuous efforts
to build and maintain high morale. It is a long-term
concept.
Morale is a group phenomenon consisting of a
pattern of attitudes. It is the sum total of employees
attitudes, feelings and sentiments.

6.3.1 Describe Concept of Morale

Significance of Morale:
Morale is the vital ingredient of
organisational success because
attitudes and sentiments of
employees greatly influence
productivity and satisfaction of
employees.
Morale may be high or low; when the
morale of the employees is high, they
co-operate fully with the management
towards the achievement of
organisational objectives.
High morale leads to good discipline,
high degree of interest in the job ,
loyalty to the organisation and high
performance.

6.3.1 Describe Concept of Morale

Consequences of low Morale:

Low morale indicates the presence of mental unrest.

This mental tension or unrest not only hampers
production and productivity but also leads to ill-health of
the working people. The other consequences of low
morale 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, every
manager should attempt to build high morale amongst
his subordinates.

Steps to build High Morale:

Every manager should attempt to build high morale of his
subordinates. Both individual and collective efforts are required
to develop and maintain high morale. The following measures
are taken to improve the morale of employees in the
organisation:-

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, education
facilities for children, canteen, credit facilities, and safety measures
should be provided as they are very helpful in developing positive
attitude among the employees.
- Workers should be given proper training so that they may perform their
jobs without frustration and get job satisfaction.

6.3.2 Identify Types & Methods to Measure &

Improve of Morale
Morale is not static. It is subject to daily, or even to monetary
fluctuations.
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 and
satisfying as possible; it tends to encourage a favourable and
enthusiastic group action.
ii. Job Training:
Job training, orientation, education, apprentice training and a
broad variety of general educational efforts will help in building
up employees' morale.

6.3.2 Identify Types & Methods to Measure &

Improve of Morale
iii. Recognition of Aspirations:
Recognition of individual aspirations and
goals, and definite provision of means by
which such goals can be achieved will go a
long way in boosting morale.
iv. Unrest:
A careful study must be made on various
indices of employees unrest, with the
ultimate objective of constructive guidance
and action.
v. Counselling Interviews:
Counselling Interviews help to discover the
feelings of employees.

6.3.2 Identify Types & Methods to Measure &

Improve of Morale
vi. Opportunities:
promising opportunities like good promotional
avenues, good working conditions, satisfactory
remuneration and other benefits for personal
development.
vii. Relations:
The supervisory staff should ensure, human
relations, informal relations, fact finding and
adopt participative and employee orientated
attitude.
viii. Facilities:
Apart from the above measures, the facilities
like, transport, housing, health, family welfare,
children's education, and other recreational
facilities would also help in building up
employees morale.

6.3.2 Identify Types & Methods to Measure &

Improve of Morale
Whether of an individual or a group, the level of morale must be
observed and expressed largely in terms of complex reactions. There
are several methods of survey of morale :
1. Attitude Survey
These surveys depend upon questionnaires, which are administered
orally or in writing from any employees.
By answering these questionnaires, employees indicate their attitude
towards a wide range of conditions related to their work.
Analysis of their replies provides a guide to general levels of morale
as well as more specific indications of their likes and dislikes in the
prevailing employment situation.
2. Morale Interviews
By frequent and periodic interviews with employees their morale can
be assessed.
In these visits, the interviewer encourages the employee to speak
freely and frankly in respect of his job, his supervisors, his fellow
employees, and any other conditions affecting his employment
without any fear or hazard to his status in the organisation.

6.3.2 Identify Types & Methods to Measure &

Improve of Morale
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 what
employees thought of their jobs and of working conditions in the
organlsation.
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 some
of 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.