Individual Process: Personality

Personality is the exceptional and relatively stable pattern of behavior, thoughts, and emotions
shown by individuals. Briefly, personality refers to the lasting ways in which any one person is
different from all others. Personality is used to describe people.

Psychologists define personality as a strong pillar on which individual processes stand and is
comparatively a blueprint of how a person behaves in an organizational set-up. In fact, it
explains our behavioral patterns by referring to our internal states.

According to theorists, Personality is the comparatively enduring pattern of thoughts, emotions,

and behaviors that differentiate a person, along with the psychological processes behind those
characteristics. It is the array of qualities that make people similar to or different from other
people. It can assess an individual's personality by what he or she says and does, and people
infer the person's internal states including thoughts and emotions-from these observable
behaviors.

In today's competitive business environment, huge organizations are recognizing more

importance of personality when recruiting for candidates to fill job openings.

Various traits such as openness, emotional stability, and agreeableness all predict that an
individual will have less conflict, work better in teams, and have positive attitudes about his or
her work. People with this type of personality should be placed in situations where they would
be working with or leading others. Those who do not have these traits will have less motivation
and be more negative when they are placed in these situations.

Personality trait is basically influenced by two major features:

● Inherited characteristics
● Learned characteristics

Inherited Characteristics

The features an individual acquires from their parents or forefathers, in other words the gifted
features an individual possesses by birth is considered as inherited characteristics. It consists of
the following features:

● Color of a person’s eye

● Religion/Race of a person
● Shape of the nose
● Shape of earlobes

Learned Characteristics
Nobody learns everything by birth. First, our school is our home, then our society, followed by
educational institutes. The characteristics an individual acquires by observing, practicing, and
learning from others and the surroundings is known as learned characteristics.

Learned characteristics includes the following features:

● Perception: Result of different senses like feeling, hearing etc.
● Values: Influences perception of a situation, decision making process.
● Personality: Patterns of thinking, feeling, understanding and behaving.
● Attitude: Positive or negative attitude like expressing one’s thoughts.

PERSONALITY TRAITS

1. Openness

This trait features characteristics such as imagination and insight.People who are high in this
trait also tend to have a broad range of interests. They are curious about the world and other
people and eager to learn new things and enjoy new experiences.

People who are high in this trait tend to be more adventurous and creative. People low in this
trait are often much more traditional and may struggle with abstract thinking.

High
● Very creative
● Open to trying new things
● Focused on tackling new challenges
● Happy to think about abstract concepts

Low
● Dislikes change
● Does not enjoy new things
● Resists new ideas
● Not very imaginative
● Dislikes abstract or theoretical concepts

2. Conscientiousness

Standard features of this dimension include high levels of thoughtfulness, good impulse control,
and goal-directed behaviors.Highly conscientious people tend to be organized and mindful of
details. They plan ahead, think about how their behavior affects others, and are mindful of
deadlines.

High
● Spends time preparing
● Finishes important tasks right away
● Pays attention to detail
● Enjoys having a set schedule

Low
● Dislikes structure and schedules
● Makes messes and doesn't take care of things
● Fails to return things or put them back where they belong
● Procrastinates important tasks
● Fails to complete necessary or assigned tasks

3. Extraversion

Extraversion (or extroversion) is characterized by excitability, sociability, talkativeness,

assertiveness, and high amounts of emotional expressiveness. People who are high in
extraversion are outgoing and tend to gain energy in social situations. Being around other
people helps them feel energized and excited.

People who are low in extraversion (or introverted) tend to be more reserved and have less
energy to expend in social settings. Social events can feel draining and introverts often require a
period of solitude and quiet in order to "recharge."

High
● Enjoys being the center of attention
● Likes to start conversations
● Enjoys meeting new people
● Has a wide social circle of friends and acquaintances
● Finds it easy to make new friends
● Feels energized when around other people
● Say things before thinking about them

Low
● Prefers solitude
● Feels exhausted when having to socialize a lot
● Finds it difficult to start conversations
● Dislikes making small talk
 ● Carefully thinks things through before speaking
● Dislikes being the center of attention

4. Agreeableness

This personality dimension includes attributes such as trust, altruism, kindness, affection, and
other prosocial behaviors.People who are high in agreeableness tend to be more cooperative
while those low in this trait tend to be more competitive and sometimes even manipulative.

High
● Has a great deal of interest in other people
● Cares about others
● Feels empathy and concern for other people
● Enjoys helping and contributing to the happiness of other people
● Assists others who are in need of help

Low
● Takes little interest in others
● Doesn't care about how other people feel
● Has little interest in other people's problems
● Insults and belittles others
● Manipulates others to get what they want

5. Neuroticism

Neuroticism is a trait characterized by sadness, moodiness, and emotional instability.Individuals

who are high in this trait tend to experience mood swings, anxiety, irritability, and sadness.
Those low in this trait tend to be more stable and emotionally resilient.

High
● Experiences a lot of stress
● Worries about many different things
● Gets upset easily
● Experiences dramatic shifts in mood
● Feels anxious
● Struggles to bounce back after stressful events

Low
● Emotionally stable
● Deals well with stress
● Rarely feels sad or depressed
● Doesn't worry much
● Is very relaxed
 Major Personality Attributes
Following are the five major personality attributes that influence OB −

1. Locus of Control
Locus of control is the center of control of an individual’s code of conduct. People can be
grouped into two categories i.e., internals and externals respectively.

People who consider themselves as the masters of their own fates are known as
internals, while those who affirm that their lives are controlled by outside forces are
known as externals.

Before making any decision, internals actively search for information, they are
achievement driven, and want to command their environment. Thus, internals do well on
jobs that craves complex information processing, taking initiative and independent
action.

Externals, on the other hand, are more compliant, more willing to follow instructions, so,
they do well in structured, routine jobs.

2. Machiavellianism
Machiavellianism is being practical, emotionally distant, and believing that ends justify
means.

Machiavellians are always wanting to win and are great persuaders. Here are the
significant features of a high-mach individuals −

High-Machs prefer precise interactions rather than beating about the bush.
High-Machs tend to improvise; they do not necessarily abide by rules and regulations all
the time.
High-Machs get distracted by emotional details that are irrelevant to the outcome of a
project.

3. Self-esteem
It is the extent up to which people either like or dislike themselves. Self-Esteem is
directly related to the expectations of success and on-the-job satisfaction.
Individuals with high self-esteem think that they have what it takes to succeed. So, they
take more challenges while selecting a job. On the other hand, individuals with low
self-esteem are more susceptible to external distractions. So, they are more likely to
seek the approval of others and to adapt the beliefs and behaviors of those they respect.

4. Self-monitoring
 Self-monitoring is the capability of regulating one’s behavior according to social
situations. Individuals with high self-monitoring skills easily adjust their behavior
according to external, situational factors. Their impulsive talents allow them to present
public personae which are completely different from their private personalities.

However, people with low self-monitoring skills cannot cover themselves. Regardless of
any situation, they are always themselves. They have an attitude of, “what you see is
what you get.”

5. Risk taking
Generally, managers are reluctant to take risks. However, individual risk-taking
inclination affects the bulk of information required by the managers and how long it takes
them to make decisions.

Thus, it is very important to recognize these differences and align risk-taking propensity
with precise job demands that can make sense.

Myer-Briggs Personality Types

(Socionics Theory)
Socionics, in psychology and sociology, is a theory of information processing and
personality type, distinguished by its information model of the psyche. The idea of
Socionics is that information is intuitively divisible into eight categories, called information
aspects, which a person's psyche processes using eight psychological functions.

The purpose of Socionics is to provide a means of predicting the character of relations

and degree of business compatibility, information sharing and psychological compatibility
of people before their joining in one collective group.

Socionics is extraversion (E), sensing (S), thinking (T), judgment (J), introversion (I),
intuition (N), feeling (F), perception (P).

Socionics divides people into 16 different types, called sociotypes which are; ESTJ,
ENTJ, ESFJ, ENFJ, ISTJ, ISFJ, INTJ, INFJ, ESTP, ESFP, ENTP, ENFP, ISTP, ISFP,
INTP & INFP. A formal conversion is carried out following the Myers–Briggs Type
Indicator.

The 16 Myer-Briggs Personality Types

1. The Inspector (ISTJ Personality)

ISTJs are serious, proper, and formal in appearance which can be intimidating. They are
cultured and have an affection towards tradition. In contrast, they are quiet and usually
calm. They are called inspectors because of their keen attention to detail. ISTJ are rule
followers who always take the logical approach towards their goals and projects.

Their dominant cognitive function is introverted sensing which helps them take in the
details about their environment while their auxiliary cognitive function is extraverted
thinking which makes them efficient and logical thinkers.

In their relationships, they are very loyal to their friends and family members. Usually,
they have a small circle with who they prefer spending their time with. The ISTJ thrives in
jobs that require structure, logic, and stability.

2. The Counselor (INFJ Personality)

INFJs are visionaries who have a different view of the world. They love introspection and
refuse to take things at a surface level. They could be termed weird by others because of
how they see life. The INFJ are idealists who love understanding complex issues. They
are reserved leaders who are usually creatives due to how easily they get inspired.
Also known as the diplomats, the INFJ prefers to cooperate with members of their team
as opposed to conflict.

The dominant cognitive function of an INFJ is introverted intuition which helps them
focus on internal insights and generally influences their decision making. Their tertiary
cognitive function is an extraverted feeling which makes them highly sensitive to the
feeling of others or what others refer to as being empathetic.

The INFJ thrives in jobs that require a deal of compassion, psychology and/or
collaboration.

3. The Mastermind (INTJ Personality)

INTJs are introverts who are comfortable being by themselves. They would avoid
socializing as it drains their energy. They excel at developing plans and strategies. As
analytical problem solvers, this personality type is strategic and innovative

Their dominant cognitive function is Introverted intuition which they use to read between
the lines and unravel patterns. The auxiliary function is extraverted thinking which makes
them deliberate about solutions and highly organized.
 Also known as the architects, the INTJ thrives in jobs that require logical systems and
innovative solutions. They usually prefer to work alone. In relationships, they are loyal
and are great at encouraging their partners.

4. The Giver (ENFJ)

ENFJs are individuals who are people-centered. They rely mostly on their intuition and
feelings and tend to live through their imagination. They focus on abstracts and what
could happen in the future.

They are highly empathetic not just to their close friends and family but people in
general.

The ENFJ generally loves feedback and they can be referred to as people pleasers.

Their dominant cognitive function is an extraverted feeling that helps them be in tune
with other people’s feelings. Their auxiliary functions are introverted intuition that makes
them focus on the future as opposed to the present moment.

They thrive in jobs where they can encourage others and push them to grow. This also
includes humanitarian focused jobs. In relationships, they are supportive and always
willing to understand their partners

5. The Craftsman (ISTP)

ISTPs are a mysterious, rational, and highly logical bunch. They are spontaneous and
unpredictable most times albeit oblivious to those around them because they are experts
at hiding their true nature.

Their dominant cognitive function is introverted thinking which makes them focus on the
logical aspect of a situation. The ISTP’s auxiliary cognitive function is extraverted
sensing which helps them focus on abstract things.

They thrive in jobs that require technical expertise and physical activity. In relationships,
they are calm lovers who prefer being handy around the house

6. The Provider (ESFJ)

ESFJs are stereotypically known to be extroverts. They are cheerleaders and raise the
spirits of those around them earning them popularity. Because of their nature, they are
easily liked and people easily warm up to them.

Their dominant cognitive function is extroverted feeling that makes them work and make
decisions based on their gut feeling. The ESFJ’s auxiliary cognitive function is
 introverted sensing which helps them focus on the present instead of the future or other
abstract details.

They thrive in jobs that require processes and interpersonal skills. In relationships, they
are the traditional partners who believe in structure and stability.

7. The Idealist (INFP)

INFPs are usually reserved and introverted. They usually spend time all by themselves
in quiet places. They love analyzing signs and symbols using them to draw inferences in
explaining what is happening around them.

Their dominant cognitive function is introverted feeling which helps them with processing
emotions internally. The INFP auxiliary cognitive function is the extraverted intuition that
helps them focus on the big picture through imagination.

They thrive in jobs that require visions and aligns with their goals/ interests. In
relationships take time to select their friends and they are quite big on comprise.

8. The Performer (ESFP)

ESFPs are mostly perceived to be entertainers. They enjoy being in the spotlight. They
enjoy exploring and learning to share what they’ve learned with others through their
strong interpersonal skills.

Their dominant cognitive function is extraverted sensing which helps them stick to facts
instead of abstract ideas. The ESFP’s auxiliary cognitive function is introverted feeling
which helps them make decisions.

They thrive in work environments where they can be spontaneous, move around often,
and involves the use of artistic values. In relationships, the ESFP will prioritize their
family and loved ones over anything although they can also strongly dislike a structured
life.

9. The Champion (ENFP)

ENFPs are highly individualistic and refuse to live their lives inside a box. They strive to
create their own methods of doing things. They operate with their feelings and are highly
perceptive and thoughtful.

Their dominant cognitive function is extraverted intuition which allows them to focus on
abstract thoughts and patterns. The auxiliary cognitive function is introverted feelings
which make them focus on their feelings rather than logic.
 In relationships, the ENFP is always expressive and share affection openly. They also
thrive in jobs that demand creativity and imaginative solutions.

10. The Doer (ESTP)

ESTPs are governed by the need to interact with others. They are interested in abstracts
and theories. They are spontaneous and risk-taking. They aren’t afraid of making
mistakes as they make it up as they go along.

Their dominant cognitive function is extraverted sensing which makes them

action-oriented. The auxiliary cognitive function of an ESTP is introverted thinking which
makes them highly disciplined and very observant.

They thrive in career paths that require mechanical skills, flexibility, and one that is quite
unpredictable. In relationships, they can be quite adventurous and prefer activities with
their loved ones.

11.The Supervisor (ESTJ)

ESTJs are organized and governed by the zeal to do what is right and socially
acceptable. They epitomize the ideal individual who is on the track towards doing what is
“good” and “right”. They are happy to be of help.

Their dominant cognitive function is extraverted thinking which makes them quite
practical when compared to other personality types. The auxiliary cognitive functions are
introverted sensing which makes them very keen on details and stability.

The ESTJs like to work in management positions where they can oversee operations
and put in structures. In relationships, they love routines and their loved ones know that
they can always be depended on for anything.

12. The Commander (ENTJ)

ENTJs focus on dealing with all things rationally and logically. They are naturally born
leaders who command respect. They also do enjoy being in charge. They see obstacles
as challenges in which they can prove themselves.

Their dominant cognitive function is extraverted thinking which makes them deliberate
about orders and judgments. The auxiliary function is introverted intuition which makes
them trust their instincts during decision making.

The ENTJ thrives in jobs that are complex and require clear strategies for goals. In
relationships, they can set high expectations for their loved ones and can be sometimes
domineering.
13. The Thinker (INTP)

INTPs are typically known for their brilliant ideas and propositions. They see a pattern in
everything and can easily pick out something that’s out of place. They are concerned
with finding an environment where their creative genius can be harnessed.

Their dominant cognitive functions is introverted thinking which makes them highly
understanding and deep thinkers. The auxiliary functions are extraverted intuition which
helps with their imagination and inspirations.

The INTP thrives in work environments that aren’t focused on traditions. They prefer
flexible and independent work styles. In relationships, they are highly unconventional
and autonomous.

14. The Nurturer (ISFJ)

ISFJs are highly generous and ever-ready to give back to society. They are warm and
kind-hearted individuals. They possess an awareness and consideration towards
bringing out the best in others.

The dominant cognitive function is introverted sensing which makes them very
detail-oriented. Their auxiliary functions are extraverted feeling which makes them
nurturing and very considerate.

They thrive in jobs that require structure and are positioned behind the scenes. In
relationships, the ISFJ will take care of their loved ones unconditionally.

15. The Visionary (ENTP)

ENTPs are extroverts who do not enjoy small talk. These personalities are very rare to
come across. They have a logical and rational approach to discussions and/or
arguments. They are knowledgeable but need constant stimulation.

Their dominant cognitive function is extroverted intuition which makes them always open
to exploring new ideas. The auxiliary function is introverted thinking which makes them
quite logical.

They thrive in jobs where creativity meets challenges. In relationships, the ENTP is
spontaneous and can be quite exciting.

16. The Composer (ISFP)

ISFPs on the outside seem like introverts but deep down they’re warm and very friendly.
They are spontaneous and fun to be with. They are always out to explore new things
and discover new experiences.

Their dominant cognitive function is introverted feeling which makes them caring. The
auxiliary functions are extraverted sensing which makes them appreciate works of art.

ISFP’s prefer to work independently away from the spotlight. In relationships, they are
accommodating and very easygoing.
 Major Personality Determinants

Personality is not determined by a single factor, but by an accumulation of many factors. Some
of those factors are psychological, while others are physical, biological, and hereditary. I have
compiled some of the most influential factors when it comes to determinants of personality.

1. Brain
The brain is one of the most important personality determinants. It is generally believed the
father and the child adopt almost the same type of brain stimulation. Later differences are the
result of the environment in which the child has grown.
2. Physical Characteristics

One of the most important factors in determining personality are an individual's physical
characteristics. These factors play a vital role in determining one’s behavior in a social
organization. Physical characteristics include, but are not limited to:

● Height
● Skin tone
● Weight
● Hair color
● Beauty
These factors influence interactions with other people, contributing to personality development.

3. Social Experiences

Social experiences play a vital role in determining one’s personality. The things that occur
around a person on a regular basis determine how that person will behave and perceive
themselves. A person's social experiences affect:

● Coordination
● Cooperation
● Family relationships
● Organizational relationships
● Workplaces relationships
● Involvement in communities

4. Culture and Religion

The culture in which one lives almost always involves:

● Traditional practices
● Norms
● Customs
● Procedures
● Rules and regulations
● Precedents
● Values.
These are all highly influential determinants of personality.

5. Heredity

Perhaps the most surprising and astonishing personality determinant is heredity.Heredity is

perhaps the most important factor in determining personality, since mostly all other
determinants, such as physical characteristics, gender, psychology, and more, are passed down
through genes.

Theories of Personality

A theory is a simple model of reality that helps us understand, explain, predict and deal with
reality. We have some theories that explain an individual’s personality.

1. Sigmund Freud’s Psychoanalytic Theory

This theory is based on the belief that man is encouraged more by unforeseen forces than
conscious and logical thought. Freud believed that most of the things in life are not present at
the conscious level but they are present at an unconscious level.

The features of Freud’s theory include three attributes − Id, Ego, and Superego.

Id − It defines the innate component of personality. It is the impulsive and unconscious part of
mind that seeks immediate satisfaction. Example − A hungry baby cries till he/she is fed.

Ego − It is derived from Id and assists in dealing with the external world. It also helps in
translating the inner needs into expressions. It deals with practical and rational thinking process.
Example − We have a fight with our friend and expect the friend to talk first, even though both of
us want to talk.

Superego − It is different from ego and is partially unconscious. It includes the traditional values
of society as interpreted by our parents. It also helps in the integral vision of punishment.
Example − Ram came late today so he is grounded for a week.

2. Erikson’s Theory
This theory states that personality is groomed throughout lifetime. He presents eight distinct
stages each with two possible outcomes. Successful completion of each stage leads to a
healthy personality. These stages are −

Infancy − It is the period between 0-1 years of age. In this stage, children learn the ability to
trust others depending on their caregivers. Unsuccessful completion in this stage results in
anxiety and insecurity. Example − Children of this age are more comfortable with those faces
they see more often and not with strangers.

Early Childhood − It is the period between 1-3 years of age. In this stage, children learn to be
independent. If given support, they become more confident else they become dependent over
others. Example − Children in this age are taught how to walk, how to talk etc.

Play Age − It is the period between 3-6 years of age. In this stage, children assert themselves
frequently. The failure leads to development of a sense of guilt among them. Example −
Children in this age group, need to be taught how to behave and should be taught to be
focused.

School Age − It is the period between 6 years of age till puberty. In this stage, children become
more innovative. They feel confident and want to achieve their goals. If not encouraged they
may feel inferior. Example − Teenagers should be protected and parents need to understand
them and should handle them patiently.

Adolescence − This stage is a transformation from childhood to adulthood. Here children find
their own identity and should be guided and supported in order to help them choose the right
direction. Example − Decision such as which stream to choose science or commerce etc.
happens during this stage.

Young Childhood − This stage is also known as young adulthood. Here, they begin to open up
and become more intimate with others. Example − Making close friends.

Adulthood − In this stage, they focus on establishing career and settling down with
relationships that are important. Example − Applying for jobs.

Mature Adulthood − In this stage, a person is old and thus in this stage the productivity slows
down. Example − Taking care of the family.

Perception

Perception is an intellectual process of transforming sensory stimuli to meaningful information. It

is the process of interpreting something that we see or hear in our mind and use it later to judge
and give a verdict on a situation, person, group etc.

It can be divided into six types −

● Of sound − The ability to receive sound by identifying vibrations.

● Of speech − The competence of interpreting and understanding the sounds of language
heard.
● Touch − Identifying objects through patterns of its surface by touching it.
● Taste − The ability to receive flavor of substances by tasting it through sensory organs
known as taste buds.
● Other senses − They approve perception through the body, like balance, acceleration,
pain, time, sensation felt in the throat and lungs etc.
● Of the social world − It permits people to understand other individuals and groups of
their social world. Example − Priya goes to a restaurant and likes their customer service,
so she will perceive that it is a good place to hang out and will recommend it to her
friends, who may or may not like it. Priya’s perception about the restaurant is good.
Perceptual Process
Perceptual processes are the different stages of perception we go through. The different stages
are −

1. Receiving
2. Selecting
3. Organizing
4. Interpreting

● Receiving
Receiving is the first and most important stage in the process of perception. It is the initial stage
in which a person collects all information and receives the information through the sense
organs.

● Selecting
Selecting is the second stage in the process. Here a person doesn’t receive the data randomly
but selectively. A person selects some information out of all in accordance with his interest or
needs. The selection of data is dominated by various external and internal factors.

External factors − The factors that influence the perception of an individual externally are
intensity, size, contrast, movement, repetition, familiarity, and novelty.
Internal factors − The factors that influence the perception of an individual internally are
psychological requirements, learning, background, experience, self-acceptance, and interest.

● Organizing
Keeping things in order or say in a synchronized way is organizing. In order to make sense of
the data received, it is important to organize them.

1. We can organize the data by −

2. Grouping them on the basis of their similarity, proximity, closure, continuity.
3. Establishing a figure ground is the basic process in perception. Here by figure we mean
what is kept as main focus and by ground we mean background stimuli, which are not
given attention.
Perceptual constancy that is the tendency to stabilize perception so that contextual changes
don’t affect them.

● Interpreting
Finally, we have the process of interpreting which means forming an idea about a particular
object depending upon the need or interest. Interpretation means that the information we have
sensed and organized, is finally given a meaning by turning it into something that can be
categorized. It includes stereotyping, halo effects etc.
Importance of Perception in OB
We need to understand what the role of perception in an organization is. It is very important in
establishing different role of perceptions like −

● Understanding the tasks to be performed.

● Understanding the associated importance of tasks allotted.
● Understanding preferred behavior to complete respective tasks.
● Clarifying role perceptions.
For example, every member in a group has to be clear regarding the role allotted to them.
Programmer writes the code, the tester checks it, etc.

Motivation
Motivation can be described as the internal force that impacts the direction, intensity, and
endurance of a person’s voluntary choice of behavior. It consists of −

● Direction − focused by goals.

● Intensity − bulk of effort allocated.
● Persistence − amount of time taken for the effort to be exerted.
Example − A team leader encourages team members to work efficiently.

Features of Motivation
Motivation is an internal feeling, that is, it defines the psychological state of a person. It is a
continuous process and we should make sure that it is not disturbed. A person should be
encouraged completely.

Motivation consists of three interacting and dependent elements −

● Needs − The requirements or deficiency which is created whenever there is

physiological imbalance.
● Drives − The various camps or events organized to motivate the employees and give
them new opportunities.
● Incentives − Employees need to be rewarded for their nice work in order to keep them
encouraged.

Importance of Motivation
We need to motivate employees because of the following reasons −

1. Motivated employees are more quality oriented.

2. Highly motivated employees are more productive as compared to other employees.
3. It helps in achieving three behavior dimension of human resource namely
4. Candidates must be attracted not only to join but also remain in the firm.
5. Employees must perform tasks in a dependable manner.
6. Employees should be creative, spontaneous and innovative at work.
 Theories of Motivation

● Maslow’s Hierarchy of Needs Theory

This theory was produced in order to answer the question “What motivates an individual”. Every
second need comes to force when the first need is satisfied completely. Maslow explained the
hierarchy of needs by grouping them into two: deficiency needs and growth needs.

Physiological Needs
Every individual needs to take care of the basic requirements required to sustain. These
requirements include food to eat, clothing to wear and shelter to live in. These necessities are
relatively independent of each other but are finite.

Safety Needs
Everybody wants to stay in a protected environment with minimal danger so that they can have
a peaceful life. Safety needs basically includes protection from physiological danger like
accident and having economic security like bank accounts, health insurance

In an enterprise, it includes job security, salary increment, etc. The managerial practice to satisfy
this involves offering pension schemes, provident fund, gratuity etc.

Social Needs
We have all heard that man is a social animal, we want to be there with those people where we
are loved and we are accepted as we are; nobody wants to be judged. This is a common
requirement every human desires.

This theory helps managers to think about encouraging their employees by identifying employee
needs. In short, it presents motivation as a constantly changing force, expressing itself to the
constant need for fulfillment of new and higher levels of needs.

Esteem
Esteem means the typical human desire to be accepted and valued by others. People often
involve themselves in a profession or hobby to gain recognition, earn fame and respect.
According to Maslow, the needs of humans have strict guidelines - the hierarchies rather than
being sharply separated, are interrelated. This means that esteem and the consequent levels
are not strictly separated but are closely related.

Self-Actualization
Self-actualization means realizing one’s full potential. Maslow describes this as a desire to
complete everything that one can, to become the most that one can be.
 ● Theory X and Y

Our management style is firmly influenced by our beliefs and assumptions about what
encourages members of our team like: If we believe that our team members dislike work, then
we tend towards an authoritarian style of management. However, if we assume that employees
take pride in doing a good job, we tend to adopt a more participative style.

Douglas McGregor, the eminent social psychologist, divides management style into two
contrasting theories −

1. Theory X
2. Theory Y

Theory X
This theory believes that employees are naturally unmotivated and dislike working, and this
encourages an authoritarian style of management. According to this theory, management must
firmly intervene to get things done. This style of management concludes that workers −

● Disfavor working.
● Abstain responsibility and the need to be directed.
● Need to be controlled, forced, and warned to deliver what's needed.
● Demand to be supervised at each and every step, with controls put in place.
● Require to be attracted to produce results, else they have no ambition or incentive to
work.
McGregor observed that X-type workers are in fact mostly in minority, and yet in mass
organizations, such as large scale production environment, X Theory management may be
needed and can be unavoidable.

Theory Y
This theory explains a participative style of management, that is, distributive in nature. It
concludes that employees are happy to work, are self-motivated and creative, and enjoy
working with greater responsibility. It estimates that workers −

● Take responsibility willingly and are encouraged to fulfill the goals they are given.
● Explore and accept responsibility and do not need much guidance.
● Assume work as a natural part of life and solve work issues imaginatively.

In Y-type organizations, people at lower levels are engaged in decision making and have more
responsibility.

● Comparing Theory X & Theory Y

Let us now compare both the theories −

1. Motivation
Theory X considers that people dislike work, they want to avoid it and do not take
responsibilities willingly.

While, Theory Y considers that people are self-motivated, and sportingly take responsibilities.

2. Management Style and Control

In Theory X-type organization, management is authoritarian, and centralized control is
maintained.

While in Theory Y-type organization, the management style is participative, employees are
involved decision making, but the power retains to implement decisions.

3. Work Organization
Theory X employees are specialized and the same work cycle continues.

In Theory Y, the work tends to be coordinated around wider areas of skill or knowledge.
Employees are also motivated to develop expertise, and make suggestions and improvements.

4. Rewards and Appraisals

Theory X-type organizations work on a ‘carrot and stick’ basis, and performance assessment is
part of the overall mechanism of control and compensation.

Coming to Theory Y-type organizations, appraisal is also regular and crucial, but is usually a
separate mechanism from organizational controls. Theory Y-type organizations provide
employees frequent opportunities for promotion.

Application
Admitting the fact that Theory X management style is widely accepted as inferior to others, it
has its place in large scale production procedure and unskilled production-line work.
Many of the principles of Theory Y are widely accepted by different types of organization that
value and motivate active participation.

Theory Y-style management is appropriate for knowledge work and licensed services. Licensed
service organizations naturally develop Theory Y-type practices by the nature of their work, even
high structure knowledge framework, like call center operations, benefit from its principles to
motivate knowledge sharing and continuous improvement.