Human Implications of Organisations: Caiib Paper 1 (Module C), Unit 3

Human Implications of Organisations: Caiib Paper 1 (Module C), Unit 3

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So, here we are providing “Unit 3: Human Implications of Organisations of “Module C: HRM in Banks” from “Paper 1: Advanced Bank Management (ABM)”.

The Article is Caiib Unit 3: Human Implications of Organisations

Human Behaviour and Individual Differences

The behaviour of an individual is influenced by several factors. These can be grouped under the following heads:

  • Environmental Factors: (a) Economic, (b) Social (norms and cultural values), and (c) Political;
  • Personal Factors: (a) Age, (b) Sex, (c) Education, (d) Abilities, (e) Marital Status, (f) No. of dependants;
  • Organizational Factors: (a) Physical Facilities, (b) Organization Structure and Design, (c) Leadership, (d) Compensation and Reward System; and
  • Psychological Factors: (a) Personality, (b) Perception, (c) Attitudes, (d) Values. (e) Learning.

Employees Behaviour At Work

There are some basic assumptions about human behaviour at work:

  • There are differences between individuals.
  • Concept of a whole person.
  • Behaviour of an individual is caused.
  • An individual has dignity.
  • Organizations are social systems.
  • There is mutuality of interest among organizational members.
  • Organization behaviour is holistic.

While the first four concepts centred around people, the next two are concerned with organizations. The last one is a combination of the first six assumptions.

Persons differ and again, there are certain ‘commonalities’ in the persons. Every person is, in certain respects,

  • like all other persons,
  • like some other persons, and
  • like no other person.

This position indicates that an individual possesses some common characteristics of most of the people. He may have some features of some other people. He may also have some characteristics which other persons do not have, i.e. the features unique to an individual.

There are several theories to explain the concept of personality.

One dimension of personality which is getting attention both from organizational as well as medical researchers is the Type A and Type B behaviour profiles.

A person exhibiting Type A behaviour is generally restless, impatient with a desire for quick achievement and perfectionism.

Type ‘B’ personality people are much more easy going, relaxed about time pressure, less competitive and more philosophical in nature.

Friedman, Meyer and Ray Roseman have mentioned the following characteristics of Type W personality:

1.Restless by nature, so that he always moves, walks and eats rapidly.

2.Is impatient with the pace of things, dislikes waiting and is impatient with those who are not impatient.

3.Multitasker – does several things at once.

4.Tries to schedule more and more in less and less time, irrespective of whether everything is done or not.

5.Usually does not complete one thing before starting on another.

6.Often displays nervous gestures such as clenched fist and banging on a table.

7.Does not have time to relax and enjoy life.

Type B personality exhibits just the opposite characteristics and is more relaxed, sociable and has a balanced outlook on life.

Erikson has identified eight developmental stages in explaining the personality. These stages which are based on a person’s state of mind at a given point of time are mentioned below:

  • Stage 1: Trust versus Mistrust
  • Stage 2: Autonomy versus Shame and Doubt
  • Stage 3: Initiative versus Guilt
  • Stale 4: lndustry versus Inferiority
  • Stage 5: Identity versus Role Diffusion
  • Stage 6: Intimacy versus Isolation
  • Stage 7: Growth versus Stagnation
  • Stage 8: Integrity versus Despair

Important Theory

  • Psycho-analytical Theory (PT): PT is based primarily on the Freudian concept of unconscious, subconscious and conscious nature of personality. Freud noted that his patient’s behaviour could not always be explained. This led to him believe that the personality structure is primarily founded on unconscious framework and that human behaviour and motivation are the outcome of psychoanalytic elements, namely, id, the ego, and the super ego.
  • Trait Theory: Trait theory believes that the traits of a person which determine his personality and behaviour are basically inherent to a person, that is, more of a heredity impact than the environment .Trait theory explains personality as a demonstration of certain traits of the individual. While there are many traits common to most people, there are many other traits that are unique to a person and are not shared by other individuals. On the basis of Trait theory, people can be described as aggressive, loyal, pleasant,  flexible, humorous, sentimental, impulsive, cool and so on.
  • Self-Concept Theory: This theory believes that personality and behaviour are to a great extent determined by the individual himself. We have an image of our own and our actions would be    consistent with that image.  Carl Rogers is closely associated  with this theory.  According to him, the best vantage point for understanding behaviour is from the internal frame of reference of the individual himself. An individual himself is the centre of experience. His self-image is an integral of how he views himself and his perception of how others view him.
  • Social Learning Theory: This theory believes that personality development is more a result of social variables than biological factors. Much of human behaviour is either learnt or modified by learning. Through learning, one acquires knowledge, attitudes, values skills, etc.

Personality and Brain (Left and Right Brain)

An important biological factor which influences personality is the role of brain of an individual. Two types of contribution can be found in this area: Electrical stimulation of the brain (ESB) and split brain psychology.

Left Hemisphere Controls Right side of body Right Hemisphere Controls Left side of body
Speech and Verbal Spatial and musical
Logical and Mathematical Holistic
Linear and Detailed Artistic and symbolic
Sequential Simultaneous
Controlled Emotional
Intellectual Intuitive, creative
Dominant Minor (quiet)
Active Spiritual
Analytic Synthetic, gesalt-oriented
Reading, writing, naming Facial recognition
Sequential ordering Simultaneous
Perception of significant order perception of abstract
Complex motor sequence patterns Recognition of complex figures


Note: Adapted from Freed Luthans, Organizational Behaviour, 6th Ed.

The Left and Right hemispheres of the brain are attributed with some specific dimensions and characteristics as shown in this table. These areas are, however, still open for further research.

Holland’s Typology of’ Personality and Congruent Occupations
Type Personality


Congruent Occupation
1. Realistic: Prefers physical activities that require skill, strength and


1. Shy, genuine, persistent, stable, conforming, practical. 1. Mechanic, drill press operator, assembly-line worker, farmer.
2. Investigative: Prefers activities that involve thinking, organizing and


2. Analytical, original, curious, independent. 2. Biologist, economist, mathematician, news reporter.
3. Social: Prefers activities that involve helping and developing


3. Sociable, friendly, cooperative, understanding 3. Social worker, teacher, counseller, clinical psychologist.
4. Conventional: Prefers

rule-regulated, orderly,

4.  Conforming, efficient,

practical, unimaginative,

4. Accountant, corporate



and unambiguous

activities, flexible file clerk

bank teller.  
5. Enterprising: Prefers verbal activities where there are opportunities to influence others and

attain power.

5. Self-confident, ambitious, energetic, domineering. 5. Lawyer, real-estate agent, public relations specialist, small business manager.
6. Artistic: Prefers ambiguous and unsystematic activities that allow creative


6. Imaginative, disorderly, idealistic, emotional, impractical. 6. Painter, musician, writer, interior-decorator


Theories of Motivation and Their Practical Implications

 What is Motivation?
  • Motivation in an organizational context is referred as ‘the extent of willingness of an employee to respond to the organizational requirements’. Motivation is generally directed, consciously or unconsciously, towards satisfaction of needs (motives). Motivation as a behavioural concept is of great interest to the executives and managers in organizations today.
Theories of Motivation

The various theories of motivation are:

  1. Scientific Management or Rational Economic View
  2. Human Relations Model
  3. Abraham Maslow’s Need Hierarchy Theory
  4. Frederick Herzberg’s Two-Factor Theory
  5. Clayton Alderfer’s ERG Theory
  6. Achievement Motivation Theory
  7. Victor H Vroom’s Expectancy Model
  8. James Stacy Adams’ Equity Theory
  9. Lyman W. Porter and Edward E Lawler – Performance Satisfaction Model.
  10. Reinforcement Theory
Herzberg’s Two-Factor or Motivation-Hygiene Theory

Frederick Herzberg (1959) extended the work of Maslow and developed a specific content theory of work motivation. He conducted a widely reported study on about 200 accountants and engineers from eleven industries in Pittsburg, USA. He used the critical incident method of obtaining data for analysis.

Herzberg’s theory is based on a two-factor hypothesis, that is, factors leading to job satisfaction and the factors leading to job dissatisfaction. The factors so identified were classified by him into two categories:

  • Motivational Factors; and
  • Hygiene or Maintenance Factors.

Motivational Factors

These factors are related directly to the job itself. The presence of such factors creates a highly motivating situation, but their absence does not cause dissatisfaction. People tend to respond positively to the presence of such factors. Herzberg mentioned six such factors:

  • Recognition
  • Advancement
  • Responsibility
  • Achievement
  • Possibility of Growth
  • Work itself

Factors like achievement and responsibility are related to job itself and others emanate from it. This set of factors has been designated as motivators or satisfiers and are   related to job contents.

Hygiene or Maintenance Factors

  • This set of factors is such that their presence does not significantly motivate the employees but their absence cause serious dissatisfaction. The non-availability of such factors is likely to affect motivation and bring down the level of performance.

Maintenance factors mostly are related to environment, outside the job. Herzberg named ten such factors:

  • Company policy and administration
  • Technical supervision
  • Interpersonal relations with subordinates
  • Salary
  • Job security
  • Personal life
  • Working conditions
  • Status
  • Interpersonal relations with supervisors
  • Interpersonal relations with peers and colleagues
Motivation and Behaviour
  • Behaviour of an individual is generally motivated by a desire to achieve some goal. Behaviour is either an ‘activity’ or, ‘a series of activities’. Each activity is supported by motivation. Individuals differ not only in their ability to do but also in their will to do, or motivation. Motives are sometimes defined as needs, wants, drives, or impulses within the individual. These are directed towards goals, which may be conscious or subconscious. Goals are outside an individual. Goals are sometimes referred to as ‘hoped for’ rewards towards which motives are directed.
Motivation to Work
  • Manager should also know specific ways and techniques to motivate employees in the work situation. Most of these techniques are practical in nature and can be adopted by him in the normal course.  Some of the frequently used common incentives in organizations are:
  • Money, appreciation, job enlargement, job enrichment, job rotation, participative management, and quality of work.
Factors contribute to the quality of work life:
  • Adequate and fair compensation.
  • A safe and healthy environment.
  • Jobs aimed at developing and using employee’s skills and abilities.
  • Growth and security; jobs aimed at expanding employees’ capabilities rather than leading to their obsolescence.
  • An environment in which employees develop self-esteem and a sense of identity.
  • Protection and respect for employee’s rights to privacy, dissent, equity. etc.
  • A sensible integration of job career and family life and leisure time.
Role Set Conflicts

The role set consists of important persons who have different expectations from the role

that an individual occupies. The conflicts arise due to incompatibility among the expectations of significant others and the individual himself. These role set conflicts take the following forms:

  • Role ambiguity
  • Role Expectation Conflict
  • Role Overload
  • Role Erosion
  • Resource Inadequacy
  • Personal Inadequacy
  • Role Isolation

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