Unit 2 is rich in theories, thinkers and classifications, which makes it ideal for matching and assertion–reason questions. Learn each theory with its author, its components and one practical example.
1. Personality
- Big Five (OCEAN): openness, conscientiousness, extraversion, agreeableness, neuroticism (emotional stability).
- MBTI: 16 types from four dimensions: extraversion–introversion, sensing–intuition, thinking–feeling, judging–perceiving.
- Type A and Type B personalities (Friedman and Rosenman): Type A people are impatient, competitive and time-pressured.
- Locus of control (Julian Rotter): internals believe they control outcomes; externals credit luck or others.
- Other traits tested: Machiavellianism, self-monitoring, self-esteem and risk-taking.
2. Perception and Attribution
- Kelley’s attribution theory uses three cues: distinctiveness, consensus and consistency.
- Fundamental attribution error: blaming others’ behaviour on internal factors and underestimating the situation.
- Self-serving bias: taking credit for success and blaming external factors for failure.
- Perceptual shortcuts: selective perception, halo effect, contrast effect, stereotyping and projection.
- Pygmalion effect: a self-fulfilling prophecy where high expectations raise performance.
3. Learning, Attitudes and Values
- Classical conditioning (Pavlov), operant conditioning (Skinner) and social learning theory (Bandura).
- Reinforcement schedules: continuous, fixed interval, variable interval, fixed ratio and variable ratio. The variable ratio schedule is the most resistant to extinction.
- Attitude components: cognitive, affective and behavioural.
- Cognitive dissonance (Leon Festinger, 1957): discomfort when attitudes and behaviour conflict.
- Rokeach Value Survey: 18 terminal values (desired end-states) and 18 instrumental values (preferred means).
- Organisational commitment (Meyer and Allen): affective, continuance and normative.
4. Motivation Theories
|
Type |
Theory |
Key idea |
| Content | Maslow’s hierarchy | Physiological, safety, social, esteem, self-actualisation |
| Content | Herzberg’s two-factor theory | Hygiene factors prevent dissatisfaction; motivators create satisfaction |
| Content | McClelland’s needs theory | Achievement, affiliation and power |
| Content | Alderfer’s ERG | Existence, relatedness, growth; frustration–regression |
| Process | Vroom’s expectancy theory | Motivation = Expectancy × Instrumentality × Valence |
| Process | Adams’ equity theory | People compare their input–outcome ratio with others’ |
| Process | Locke’s goal-setting theory | Specific, difficult goals with feedback raise performance |
McGregor’s Theory X assumes people dislike work; Theory Y assumes they seek responsibility. Ouchi’s Theory Z describes Japanese-style long-term employment and collective decisions.
5. Groups and Teams
- Tuckman’s stages: forming, storming, norming, performing; “adjourning” was added in 1977.
- Groupthink (Irving Janis): pressure for agreement suppresses critical thinking.
- Social loafing (Ringelmann effect): individuals put in less effort in groups.
- Belbin’s team roles describe the mix of roles that balanced teams need.
6. Leadership
|
Approach |
Key theory |
Remember |
| Behavioural | Ohio State studies | Initiating structure and consideration |
| Behavioural | Michigan studies | Employee-oriented vs production-oriented |
| Behavioural | Blake and Mouton’s Managerial Grid | 9,9 team management; 1,1 impoverished; 9,1 task; 1,9 country club; 5,5 middle-of-the-road |
| Contingency | Fiedler’s LPC model | Leader style is fixed; match it to the situation |
| Contingency | Hersey–Blanchard situational model | Telling, selling, participating, delegating |
| Contingency | House’s path–goal theory | Leader clears the path to goals |
| Modern | Transformational vs transactional (Burns, Bass) | Inspiration vs exchange of rewards |
Rensis Likert’s four systems run from exploitative-authoritative (System 1) to participative (System 4).
7. Transactional Analysis, Stress and Conflict
- Transactional analysis (Eric Berne): ego states of Parent, Adult and Child; life positions popularised in Thomas Harris’s I’m OK – You’re OK.
- Selye’s General Adaptation Syndrome: alarm, resistance and exhaustion. Positive stress is eustress; harmful stress is distress.
- Thomas–Kilmann conflict modes: competing, collaborating, compromising, avoiding and accommodating. Collaborating is high on both assertiveness and cooperativeness.
8. Organisational Culture
- Edgar Schein’s three levels: artifacts, espoused values and basic underlying assumptions.
- Hofstede’s cultural dimensions: power distance, individualism, masculinity, uncertainty avoidance, long-term orientation and indulgence.
9. Emotional Intelligence, Justice and Diversity
- Daniel Goleman’s emotional intelligence: self-awareness, self-regulation, motivation, empathy and social skills.
- Organisational justice: distributive (fairness of outcomes), procedural (fairness of processes) and interactional (fairness of treatment).
- Whistle-blowing is reporting wrongdoing inside an organisation; listed companies must have a vigil mechanism.
- Workforce diversity covers gender, age, culture, ability and background; inclusion is what turns diversity into performance.
10. The Learning Organisation
Peter Senge’s The Fifth Discipline (1990) describes five disciplines of a learning organisation: personal mastery, mental models, shared vision, team learning and systems thinking. Systems thinking is the “fifth discipline” that integrates the other four.
11. HR Foundations
- Job analysis produces a job description (what the job involves) and a job specification (what the person needs).
- HR planning forecasts demand and supply of people.
- Recruitment draws on internal and external sources; selection filters candidates through tests, interviews and checks.
- Training methods: on-the-job (coaching, job rotation, apprenticeship) and off-the-job (lectures, simulations, case studies).
12. Recruitment, Selection and Training in Practice
- Internal sources: promotions, transfers and employee referrals. External sources: campus recruitment, placement agencies, advertisements and e-recruitment portals.
- Selection steps: screening, tests, interviews, reference checks, medical examination and the final offer.
- Selection tests: aptitude, achievement, personality, interest and intelligence tests. A good test must be both reliable and valid.
- Interview types: structured, unstructured, panel, stress and behavioural interviews.
- Kirkpatrick’s four levels of training evaluation: reaction, learning, behaviour and results.
Common Exam Traps
- Herzberg’s hygiene factors (pay, supervision, working conditions) only prevent dissatisfaction; they do not motivate.
- Fiedler treats leadership style as fixed; Hersey and Blanchard treat it as flexible.
- Social loafing is about effort in groups; groupthink is about decisions in groups.
Practice MCQs
- Which reinforcement schedule is most resistant to extinction? (a) Fixed interval (b) Continuous (c) Variable ratio (d) Fixed ratio
- “Initiating structure” and “consideration” come from: (a) Michigan studies (b) Ohio State studies (c) Fiedler (d) Path–goal theory
- Cognitive dissonance theory was proposed by: (a) Festinger (b) Kelley (c) Rotter (d) Bandura
- In the Managerial Grid, 1,9 represents: (a) Task management (b) Country club management (c) Impoverished management (d) Team management
- Which is NOT one of Kelley’s attribution cues? (a) Consensus (b) Consistency (c) Distinctiveness (d) Conformity
Answers: 1 (c); 2 (b); 3 (a); 4 (b); 5 (d).