This report includes the various concepts and theories related to the organization behaviour in a business firm. For further research, I have chosen ‘personality and individual differences’. In this research, the impact of personal including the individual differences in the behaviour of a business firm is also analysed. In addition, I also collect data from various scholars and journals as per the active secondary sources. The topic is selected for the research is because of its significance in the today organization business environment and every individual is different from one another relating to his/her mind or personal ability. In this era of globalization, every organization is focusing on improving multicultural workforce. Moreover, this approach of ‘personality and individual differences’ will help individuals in learning the various elements of managing the behaviour of people in a business firm.
Personality and individual differences
Organization behaviour is considered a compelling and crucial set of tasks based on managing people, structures and processes. A manager needs to implement a strong and effective organization behaviour with in individuals and business firm. (Saks and Gruman, 2011)
In addition, ‘Personality and individual difference’ plays a significant role in framing organization behaviour within the business enterprise. Personality refers to the various characteristics relating to set of behaviours, and emotional patterns based on certain factors. In an organization, every individual constitutes a different set of ‘personal brand’, which shows a different style of identification. As per Bellou (2010), individuals’ personal traits is an important aspect of job satisfaction.
Moreover, Shiner and Allen (2013) stated that there are certain significant principles of personality and business enterprise. As per the attrition cycle based on the attraction selection, the interaction personality organization is very particular. In the structured and rule based society, personality can be less dominant but in an unstructured organization, an individual will be more dominant in the weak position. For every human being, genetic and social elements considered to be an important element of a character.
Considering the effective organization behaviour, one of the most important attributes of a character will be the ability. Ability is defined as all the set of efforts and behaviour made towards producing a purposeful result. In addition, there are many types of knowledge including cognitive, psychological, and emotional. A productive manager needs to identify or acknowledge the differences in individuals so that to promote respective behaviour or culture within a business firm (Hogan and Coote, 2014)
‘Personality and individual difference’ is the branch of psychology as every individual differs from one another due to some psychological factors. An individual set of character defined personality. In an organization, personality of an individual has a significant impact on the environment, behaviour and motivation as per the different situations. For judging an individual difference and character of an individual, ‘Personality Type Theory’ will be best fitted (Whitworth, 2008).
‘Psychological Type’ theory is based on the psychological classification of diverse types of individuals. In addition, the personality type of a person can easily be distinguished with the help of their character traits. The ‘Type theory’ defined two types of people in the community i.e. extrovert and introvert. According to the personality typology, every individual behaviour is connected to the opposite term and individual attributes. Moreover, Type A and Type B personality theory were also invented by Meyer Friedman and his co-workers in relation with the personality type theory. (Roberts et al, 2007)
Meyer Friedman perceives Type A and Type B as the two designs of the individual differences and personality. The individuals perceived as Type A personality are stated to be as hard-workers and high-risk takers. On the contradictory side, Type B people take low risk and also constitute less competiveness. However, according to this theory, many people are the combination of both types of personality.
For knowing the difference in a character of individual, Myers-Briggs can also prove to be fruitful as according to this approach, type of a character of an individual can be learned by the knowledge of different factors of personality. In addition, this model helps organization in testing the type of personality in an individual.
In respect to personality and organizational behaviour, the five-factor model will be very applicable. With the help of this model, the job characteristics model can be expanded so as to define the effect of personality traits on the result of the work. This model is also known as a psychological model of personality and helps in classifying inimitable personality of any person. This model is also linked to the rise of leadership within a business firm. (Walumbwa and Schaubroeck, 2009)
The big five personality traits are the compelling elements in respect with the organization behaviour. There are five dimensions in the personality traits, which are connected with the effective behaviour of an organization. An organization need to consider the five traits of personality so that it can create multicultural workforce and environment.
- Openness – In every situation, this trait of personality states originality and individuality. They are also focused on achieving creativity. They stood as a leader for the effective position of leadership.
- Conscientiousness – According to Lin (2010), this individuals personality trait help people to stay organized within the different situations of leadership. The people in this group take various initiatives and responsibilities. They also play a significant role in the leadership.
- Extraversion – This group people are energetic, assertive and socially active. They also enjoy the interaction with the other groups of individuals within the social environment. They show self-confidence in various circumstances. This trait is also linked with the certain aspects of leadership (Ludtke, Roberts, Trautwein and Nagy, 2011). The groups pertaining extraversion are also sociable and dominant within the business environment.
- Agreeableness – It is considered to be a superordinate trait. This trait presence can be perceived when shared decisions are rewarded (Cobb-Clark and Schurer, 2012). However, this trait can become the barrier when the critical success factor of the respective business firm is competition. On the other hand, an effective manager can use both extraversion and agreeableness to make an organized group and bring strong relationship.
- Neuroticism – The leader who possesses this trait are anxious, moody and temperamental (Amichai-Hamburger and Vinitzky, 2010).
With many extensive sorts of exploration, it can be said that conscientiousness and extraversion are the two beneficial personality traits, which are deeply linked to the characteristics of leadership. In addition, extravert personality can deliver superior direction to the associates of a group.
Relationship of ‘personality and individual differences’ with OB
As per Chamorro-Premuzic and Furnham (2008), every individual is dissimilar from one another using his/her personality. In an organization, human behaviour is a very multifaceted aspect, which needs to be understood in an effective manner so that to manage and match every task with the minor employee to the manager of the team. In addition, every manager needs to consider the internal and external stimuli of the unconscious mind of every person.
Each business firm should consider the significance of organization behaviour theories while managing the teams and group of employees. For example, there are various pertinent theories proposed by many researchers. According to Taylor, there are various scientific management techniques that help in the development of logical and rational methods to enhance productivity. In addition, Henry Fayol also stated certain fundamentals of management that helps in the operation of a business firm and is related to the administrative management (Golden Pryor and Taneja, 2010).
In the existing section of control, McGregor has defined contemporary philosophies of behaviour by developing the assumptions of theory X and theory Y (Russ, 2011).
It is related to the standards of productivity, creativeness and pledge of every employee. This globalization phase brings various industries and organization in a line of competition. Moreover, enriching the synergy of motivation among the teams and employees are always remain as a challenge for the business firm. Every employee in an organization needs motivation so as to continue with their roles and jobs towards the goals of organization (Derakshan and Eysenck, 2009).
On the contradictory side, Komarraju, Musulkin and Bhattacharya (2010) indicated that employee motivation is related with the reassurance and there are various dissimilar aspects that have an impact on the motivation of the employees within the business enterprise. In addition, motivation is connected with the internal drive of an employee and this also influenced by various factors such as biological, social and intellectual. Management of the organization needs to start various activities for motivating the employees in the organization.
Willis-Shattuck et al, (2008) state various effective measures helping towards the motivation of employees present in an organization. These factors are connected with the role and responsibilities of the managers and management of an organization.
- Putting leadership action within the employees for empowers the workers by the management.
- Delivering constant and clarified communication.
- Putting of dignity and respect to every worker by the management.
- Providing constant recognition to each and every worker.
- Giving of benefits and compensation by the HR department of a business firm.
Impact of ‘personality and individual differences’ on employee motivation
Motivation is based on various aspects related to the individual differences of every individual and the level of motivation depends on the personality of an individual. It is an essential relation between action and thinking as well as capability and performance. Moreover, it is the responsibility of the manager to stimulate the workers during the active course and the operations of the business. In addition, there is a situational restraint for every individual due to the differences in mind and psychology of every individual. Moreover, for accomplishing extra level of motivation, the individual differences play a crucial role. These roles also help in getting different jobs in the industry.
On the other hand, Collings and Mellahi (2009) stated that managing great level of motivation among the workers is the responsibility of the manager and also there are different type of managers who perceive employee to be a treasure of the business firm. While some managers always focus on earning of the profit so as to maintain in a business organization.
As stated by Miller et al (2009), in the history of many organizations, employers do not hesitate to terminate the workers so as to gain more profit. For motivating the employees of a business firm, personal behaviour and individual differences played an important role. The management of the company is bound with four corresponding functions; achievement of objectives, decision-making, team maintenance and integration. One can measure the efficacy of a leader while focusing on the aspect of motivating the behaviour of each employee in a business firm.
In the field of Human Resource Management, there are various theories linked to the motivation aspect of an organization. Some of the binding philosophies of motivation are -
Herzberg’s ‘Two-factor’ theory
In light of personality and individual differences, this model will be considered as the most significant one and it is developed by Fredrick Herzberg. This theory is based on the satisfaction and dissatisfaction of each person when presiding job in a business firm.
Source: (Richard, 2013)
The element of the above two principles based on dissimilar person. The individual’s trait of job satisfaction can be ascertained with these elements. Numerous hygiene factors of a business firm impact several aspects of the job dissatisfaction. Various factors of job dissatisfactions include the working conditions and the linkages of the peers, regulation and rules, attributes of employer and wages. On the contradictory side, many other aspects also contribute to job satisfaction among the workers in a business enterprise. In addition, success, advancement, appreciation, etc., are linked with the job satisfaction among the employees in an organization.
According to this model, High motivation and High hygiene will be considered as an ideal situation for making employees highly motivated. On the contradictory side, Low motivation and High hygiene will be the situations where employees have few complaints and not very driven by the managers of the business firm.
In addition, the mixture of high motivation and low hygiene considers that the management of the organization can motivate the employees. However, employees will also have number of complaints in this situation. In this context, the employees will get more challenges during the course of the job but salaries and work condition will not be suited to their needs. Moreover, the context, low motivation and low hygiene define the worst situation of the management. The employees will not be motivated under this context and have highest number of complaints. This affects their work effectiveness and overall productivity.
However, an individual who can work in low motivational places can work in any environment. The elements this model is also connected with the personality including the capability and differences of those people but the job satisfaction factors are solely linked with the different personality of persons.
McGregor’s Theory X and Theory Y
In respect to human motivation and management, this theory is considered as the most significant as their factor are connected with the differences of personality and capability of different individuals. According to ‘Theory X’ of motivation, the main focused is on the penalties, supervision, control and management whereas ‘Theory Y’ states the motivation role of job satisfaction which enables employees to achieve organization goal more effectively.
Zhang and Bartol (2010) define ‘theory x’ as the authoritative management style and as per this theory, the average number of individuals dislike work or avoid to do respective work. This propensity of individuals is connected to the side of individual differences and personality.
In addition, Bredin (2008) argued that manager guidance is important in the direction of personality of average person. Average number of person seeks to dodge prior accountability while employed in any business firm. They also need proper safety while operating in any business firm.
‘Theory Y’ reflects participative management style (Lu, ZhoWx`u, and Wang, 2009). The individuals seek to lead self-direction and self-control without any fear of penalty. This also helps the employees to get the respective reward for achieving the goal of the business firm.
Moreover, this theory delivers effective information relating to the psychological factor of doing job. The motivation theory ‘X and Y’ gives assumption relating to the potential of individuals. It is important that these factors need to be evaluated by the business enterprise.
With the help of above discussion, it can be said that individual difference and personality have a significant impact on the behaviour of person in an organization. In organization, man factors lead to the motivation of individuals. It is also important for every individual to be motivated so as to achieve the goals of an organization. However, level of motivation depends on the personality as everyone differs from each other. Moreover, the employee also needs to consider the individual differences while delivering various factors of motivation. Every skilled manager is responsible to gain insight about the personality and behaviour of individuals in an organization. Also, they should understand the principle factors of human cognition.
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