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Organizational Psychology

Organizational Psychology­ (PSY510)
Fred Luthans' And Diane Lockwood's Study 1984
Fred Luthans and Diane Lockwood in 1984 observed various organizations and leader's/manager's
activities and prepared a description of them under twelve heads:
1. Planning
The first activity is that of planning. Planning refers to setting goal for the organization or the group
that is being lead. It goes on till each member is aware of his or her duty and the contribution expected.
Each activity is coordinated by the leader's planning.
2. Staffing
Staffing is the process of hiring and recruiting people for the organization. It starts from developing job
descriptions for position openings. It goes on till information dissemination to the applicant of his or
her hiring.
3. Training
Training is the process of teaching the employee on job skills. It is an essential part of organizational
human resource management. Orienting employee, holding seminars, clarifying roles, duties, etc. are all
part of training which is also a function or job of the leader.
4. Problem Solving
Manager or leader is a person how has a very important role to play in the organization in terms of
managing people's problems and organizational problems. He or she is the one who defines problems,
selects alternatives, and actually decides what to do.
5. Processing
Processing refers to managing day to day work in terms of finalizing, overseeing, documenting,
reporting, etc. A manager processes mails, reads reports, writes reports etc.
6. Exchanging Information
The manager is supposed to be an expert in the field with all the relevant knowledge important for the
organization. He or she exchanges information with the people in the organization and directs them
under the information he possesses.
7. Monitoring
One of the four tasks of a manager is to monitor the organizational processes. A manager is also
responsible for monitoring and evaluating the performance of the employees and organization as a
These were the jobs that Luthans and Lockwood thought were essential for a good manager.
David Whetten's and Kim Cameron's Study
In the modern international organizational culture, David Whetten and Kim Cameron in 1991 identified 10
skills of successful leaders and managers across cultures using 400 managers as their subjects of study.
These skills are as follows:
1. Verbal communication
Verbal communication skills are essential for managers and leaders in order to communicate effectively
with the subordinates or followers.
2. Managing Time and Stress
Leaders and mangers are the people who are under the greatest stress and have very little time to do a
large number of activities. They should have skills to manage their time and stress.
3. Managing Individual Decisions
Managers manage individuals and their decisions. They give authority to people to make decisions and
ensure that right decisions are made. Further, they are also responsible for decision making.
4. Solving Problems
Managers also work are problem solvers solving the problems of the organization, employees,
subordinates, followers, etc.
5. Motivating
Managers have a prime responsibility to create an urge to work among the people in the organization.
6. Delegating
Organizational Psychology­ (PSY510)
Managers in the organization have a task of delegating authority and letting people manage different
parts of the organization on their behalf. It is essential that managers are able to delegate authority
7. Setting Goals and Articulating a Vision
One of the basic functions of mangers is to set goals and articulate the vision to the people, i.e.
communicate the objectives, mission, and the path towards the goal.
8. Self-awareness
Self-awareness means the ability to assay oneself. Managers need to be aware of their abilities and
should also help people realize their true potential.
9. Team Building
Team building is becoming an important aspect of every manager's job since organizations prefer to
leverage expertise in teams rather than individual expertise.
10. Managing Conflicts
Managers are also responsible for managing and resolving individual and group conflicts within the
Robert House's and Philip Podsakoff's Study
Researches by Robert House and Philip Podsakoff (1994) have shown ten activities as the core of leadership
style, and they have a great impact on an organization:
1. Vision
Great leaders articulate an ideological vision that is in consonance with the values of the followers; the
vision describes a better future for the followers.
2. Passion and self sacrifice
Great leaders imply display passion for, and have a strong conviction of, the moral correctness of their
vision. They engage in outstanding or extraordinary behaviour and make extraordinary self-sacrifices in
the interest of their mission.
3. Confidence, determination, persistence
Great leaders display a high level of confidence and are determined to achieve their set targets, deterred
very little by any hindrances.
4. Image building
Great leaders develop an extraordinary image of themselves and tend to use that image to motivate and
convince the followers.
5. Role modelling
Great leaders play the role of role models leading from the front. They show the followers the path by
treading on it themselves.
6. External representation
Leaders play the role of a spokesperson for the organization. They represent the organization externally.
In other words, they are the face of the organization.
7. Expectation and confidence in the followers
Leaders have high expectations from the followers and have high confidence in them.
8. Selective motive arousal
Great leaders arouse in themselves those motives that are beneficial for the organization.
9. Frame alignment
Great leaders have the ability to convince followers to accept and implement change.
10. Inspirational communication
Great leaders have the charisma and the ability to influence people by their talk. Their communication
is inspirational for the followers.
Researchers have combined all of these skills of managers and leaders into the following four
·  Participative and Human Relations
Great managers tend to be supportive to their subordinates and have a sense of empathy for them.
·  Competitiveness and Control
Great managers have the ability to be competitive and then control the working of the organization and
people to achieve the desired goals.
Organizational Psychology­ (PSY510)
Innovativeness and Entrepreneurship
Great managers are visionary people who possess the ability to innovate and also have entrepreneurial
skills necessary to change the vision into reality.
·  Maintaining Order and Rationality
Managers tend to maintain order in the organization by resolving problems and conflicts and helping
employees. They are expected to be dictated by rationality in each decision making.
Training for Leadership
A general belief is that leaders are born and not made. Researches quoted above clearly indicate that
leadership skills can be trained. Training involves enhancing the following:
1. Knowledge
2. Trust
3. Power
4. Understanding of job challenges
5. Flexibility
How to Train
There are six methods which can be used to train managers which are as follows:
1. Coaching managers to inculcate into them leadership skills
2. Job design can be altered to train managers into leaders
3. Behavioural self management skills can be taught to managers
4. OBMOD can be used to change managers into leaders
5. Educational programmes at colleges and universities could be a source of leadership skill training
6. Personal growth training such as psycho-exercise and out door adventures could be useful for
training managers to become leaders
·  Luthans, Fred. (2005). Organizational Behaviour (Tenth Edition). United States: McGraw Hill Irwin.
·  Mejia, Gomez. Balkin, David & Cardy, Rober. (2006). Managing Human Resources (Fourth Edition).
India: Dorling Kidersley Pvt. Ltd., licensee of Pearson Education in South Asia.
·  Robbins, P., Stephen. (1996). Organizational Behaviour (Seventh Edition). India: Prentice Hall, Delhi.
·  Huczynski, Andrzej & Buchanan, David. (1991). Organizational Behaviour: An Introductory Text
(Second Edition). Prentice Hall. New York.
·  Moorhead, Gregory & Griffin, Ricky. (2001). Organizational Behaviour (First Edition). A.I.T.B.S.
Publishers & Distributors. Delhi.
·  Robert
·  Levitt, Theodore. Globalization of markets, Harvard Business Review, 1983
·  Ohio State Leadership Studies:
·  Early Years of the Ohio State University Leadership Studies:
·  Michigan Leadership Studies: http://changingminds.org/disciplines/leadership/actions/michigan.htm
·  Leadership Studies: http://www.ebsdublin.com/Subjects/Grad%20Dip/Leadership%20Studies%20-
·  Leadership. Methods, Models and Theories: http://www.12manage.com/i_l.html
·  Transformational and Charismatic Leadership:
·  Contemporary women world leaders: http://www.terra.es/personal2/monolith/00women.htm
·  Worldwide Guide to Women in Leadership: http:// www.guide2womenleaders.com
Table of Contents:
  2. METHODOLOGIES OF DATA COLLECTION:Observational method, Stability of Measures
  3. GLOBALIZATION:Aspects of Globalization, Industrial Globalization
  4. DEFINING THE CULTURE:Key Components of Culture, Individualism
  5. WHAT IS DIVERSITY?:Recruitment and Retention, Organizational approaches
  6. ETHICS:Sexual Harassment, Pay and Promotion Discrimination, Employee Privacy
  7. NATURE OF ORGANIZATIONS:Flat Organization, Neoclassical Organization Theory
  8. ORGANIZATIONAL CULTURE:Academy Culture, Baseball Team Culture, Fortress Culture
  9. CHANGING ORGANIZATIONAL CULTURE:Move decisively, defuse resistance
  10. REWARD SYSTEMS: PAY, Methods of Pay, Individual incentive plan, New Pay Techniques
  12. PERCEPTION:How They Work Together, Gestalt Laws of Grouping, Closure
  13. PERCEPTUAL DEFENCE:Cognitive Dissonance Theory, Stereotyping
  14. ATTRIBUTION:Locus of Control, Fundamental Attribution Error
  15. IMPRESSION MANAGEMENT:Impression Construction, Self-focused IM
  16. PERSONALITY:Classifying Personality Theories, Humanistic/Existential
  17. PERSONALITY ASSESSMENT:Standardized, Basic Categories of Measures
  18. ATTITUDE:Emotional, Informational, Behavioural,Positive and Negative Affectivity
  19. JOB SATISFACTION:The work, Pay, Measurement of Job Satisfaction
  20. MOTIVATION:Extrinsic motive, Theories of work motivation, Safety needs
  21. THEORIES OF MOTIVATION:Instrumentality, Stacy Adams’S Equity theory
  22. MOTIVATION ACROSS CULTURES:Meaning of Work, Role of Religion
  23. POSITIVE PSYCHOLOGY:Criticisms of ‘Traditional’ Psychology, Optimism
  24. HOPE:Personality, Our goals, Satisfaction with important domains, Negative affect
  25. EMOTIONAL INTELLIGENCE:EI IS Related To Emotions and Intelligence
  26. SELF EFFICACY:Motivation, Perseverance, Thoughts, Sources of Self-Efficacy
  27. COMMUNICATION:Historical Background, Informal-Formal, Interpersonal Communication
  28. COMMUNICATION (Part II):Downward Communication, Stereotyping Problems
  29. DECISION MAKING:History, Personal Rationality, Social Model, Conceptual
  31. JOB STRESS:Distress and Eustress, Burnout, General Adaptation Syndrome
  32. INDIVIDUAL STRESSORS:Role Ambiguity/ Role Conflict, Personal Control
  33. EFFECTS OF STRESS:Physical Effects, Behavioural Effects, Individual Strategies
  34. POWER AND POLITICS:Coercive Power, Legitimate Power, Referent Power
  35. POLITICS:Sources of Politics in Organizations, Final Word about Power
  36. GROUPS AND TEAMS:Why Groups Are Formed, Forming, Storming
  37. DYSFUNCTIONS OF GROUPS:Norm Violation, Group Think, Risky Shift
  38. JOB DESIGN:Job Rotation, Job Enlargement, Job Enrichment, Skill Variety
  39. JOB DESIGN:Engagement, Disengagement, Social Information Processing, Motivation
  40. LEARNING:Motor Learning, Verbal Learning, Behaviouristic Theories, Acquisition
  41. OBMOD:Applications of OBMOD, Correcting Group Dysfunctions
  42. LEADERSHIP PROCESS:Managers versus Leaders, Defining Leadership
  44. GREAT LEADERS: STYLES, ACTIVITIES AND SKILLS:Globalization and Leadership