Sun. Nov 1st, 2026

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

  1. Which reinforcement schedule is most resistant to extinction?                                                                                  (a) Fixed interval (b) Continuous (c) Variable ratio (d) Fixed ratio
  2. “Initiating structure” and “consideration” come from:                                                                                                     (a) Michigan studies (b) Ohio State studies (c) Fiedler (d) Path–goal theory
  3. Cognitive dissonance theory was proposed by:                                                                                                                   (a) Festinger (b) Kelley (c) Rotter (d) Bandura
  4. In the Managerial Grid, 1,9 represents:                                                                                                                           (a) Task management (b) Country club management (c) Impoverished management (d) Team management
  5. 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).