BBA 422: Industrial Psychology Notes

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Summary

FOUNDATION OF INDIVIDUAL BEHAVIOR

Learning Objectives
After reading this lesson, you should be able to:

• Understand the nature of individual differences in organizations
• Identify the individual factors affecting organizational behavior

INDIVIDUAL BEHAVIOR
Human behavior, which is; considered a complex phenomenon, is very difficult to define in absolute terms. It is primarily a combination of responses to external and internal stimuli. These responses would reflect psychological structure of the person and may be results' of the combination of biological and psychological processes, which interpret them, respond to them in an appropriate manner and learn from the result of these responses.
Psychologist Kurt Levin has conducted; considerable research into the human behavior and its causes. He believes that people are influenced by a number of diversified factors, which can be both genetic and environmental. The influence of these factors determines the pattern of human behavior.
Whenever people buy something, for example, a car, both the buyer and the seller sign a contract that specifies the terms of the sales agreement. Similarly, most people, when they begin a working relationship with an organization formulate a psychological contract with their employer. A psychological contract is the overall set of expectations that an individual holds with respect to his or her contributions to the. organization and the organization's response to those contributions. A psychological contract is not written down like a legal contract.
An individual makes a variety of contributions to an organization in the form of—efforts, skills, ability, time, loyalty and so forth. These contributions presumably satisfy various needs and requirements of the organization. In return for contributions, the organization provides incentives such as pay, promotion, and job security to the employee. Just as the contributions available from the individual must satisfy the organization's needs, the incentives must serve the employees' needs in return.
If both the individual and the organization consider the psychological contract fair and equitable, they will be satisfied with the relationship and are likely to continue it. If either party perceives an imbalance or iniquity in the contract, it may initiate a change. A major challenge faced by an organization, thus, is to manage the psychological contracts.
One specific aspect of managing psychological contracts is managing the person-job fit. The 'person-job fit' is the extent to which the contributions made by the individual match the incentives offered by the organization. In theory, each employee has a specific set of needs to fulfill and a set of job related behaviors and abilities to contribute. If the organization can take complete advantage of those behaviors and abilities and exactly fulfill the employee's needs, it will achieve a perfect person-job fit. Of course, such a precise, level of person-job fit is seldom achieved due to various reasons such as imperfect selection procedures, differences in individual skills, constant change in the needs and requirements of people and organization. Thus, the behavior of individuals in organization is the primary concern of management and it is essential that the managers should have an understanding of the factors influencing the behavior of the employees they manage. The figure 5.1 identifies five sets of factors that have an impact upon individual behavior in organizations.
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