Personality Definition and Theories

 Q. Define Personality. Explain the various theories of personality.

Ans. Meaning of Personality: Personality refers to that role which a person displays to the public. It combines both the psychological and physical aspects with the help of which one comes to have a special adjustment to the circumstances. It is only on the basis of personality that a person appears to be different from the other members of the group. 

In the organisational behaviour human behaviour is primarily the focus of study and personality happens to be an important aspect of human behaviour. It is, therefore, important for the managers to study personality so that they are able to control the behaviour of their subordinates. 

Definition of Personality: 

(i) According to Allport, “Personality is the dynamic organisation with the individual of those psycho-physical systems that determime his unique adjustments to his environment.”

(ii) According to Valentine, “Personality is the sum total of innate and acquired disposition.”

(iii) According to Burges, “Personality is an individual’s unique and relatively stable pattern of behaviour, thoughts and feelings.”

Theories of Personality: The following are the leading theories of personality:

● I. Psycho-Analytical Theory: This theory of personality was propounded by Sigmund Freud. In order to establish his theory, Freud divided the mind of a human being into three parts, i.e., conscious, pre-conscious and unconscious. Apart from this, he brought out the fact that the following three factors play an important role in the formation of personality. 

(1) Id: Id represents the unconscious mind of a human being. Its chief characteristic is that it wants immediate satisfaction of the desires in the unconscious mind of a person. It is a sort of metal agency which happens to be present in a human being right from his birth. According to Freud it happens to be a store house of innumerable rumnants of the memory of various ancestors. It does not bother about the consequences of its actions. That is perhaps the reason that the moment some tension is built-up his/her Id makes efforts to get rid of it. In order to get rid of tension Id makes use of one of the following two methods:

(a) Primary Process: According to this process, a person makes/forms a mental picture of the thing that he/She desires. With this effort a person gets rid of tension but this is short-lived. For example, a person happens to be hungry and if he happens to create a picture of his/her favourite food in his/her mind, he/she will get rid of tension at least for some time but he/she will not be satisfied.

(b) Reflex Action: Under it, a person behaves in a manner as to show that he/she happens to be tension-free. Here a person makes use of the inherited behaviour pattern, e.g., by showing his satisfaction by sneezing, coughing or batking eye-lids. 

Although both the above mentioned methods can make a person tension-free temporarily but they cannot restore him to a state of tranquility or comfort. To get rid of tension the actual or the real thing is required and not its shadow or reflection. 

(2) Ego: At the time of birth an infant has only Id in its mind. As it comes in contact with the outward environment, its Id starts getting affected. Consequently, another part of human mind develops which is called Ego. Ego is created because of Id and it fulfils the objectives of Id very intelligently. On the one hand, the mental pictures of the desires falling under Id are created, and are considered to be everything, and the person likes to fulfill his desires unmindful of their being right or wrong. On the other hand, a person makes use of knowledge or intelligence under Ego. He starts making use of language and thinking and makes efforts to control his uncontrolled impulses. Now he starts making a distinction between a mental picture and a reality. In order to satisfy his images he starts finding his real things rather than their mental images. A hungry man would no longer create mental images of his favourite food, but he has started understanding that mental images of food do not fill his stomach. What is required is the real food and not its images. Hence, it can be observed that Ego works on the Principle of Reality and it will not be wrong to describe it as the Executive Officer of personality.

(3) Super Ego: Super Ego is a step ahead of Ego. Under ‘Id’ nobody pays attention to reality while ‘Ego’ is based on the Principle of Reality and under ‘Super Ego’ morality gets attached with reality. It can be said that Super Ego is absolutely opposite of Id. Super Ego represents the standard norms of society. It is an important factor of personality. When a child starts making a distinction between the right and the wrong and understands the difference between the moral and the immoral, the emergence of Super Ego starts appearing. It guides an individual to behave in a good manner in a society. In the above example, a hungry man gets satisfied with the mental picture of food (this is Id), then he starts understanding the difference between the mental picture and the reality (this is Ego) and now he starts realising that he happens to be vegetarian and would not accept non-vegetarian food under any condition (This is Super Ego). It is the basic quality or thinking of Super Ego that what is done should be of the highest quality. 

The theory of Freud can be understood, in a way of conclusion, that whereas Id happily tries to find out, while Ego tries to find our reality and the Super Ego tries to find out the best.

● II. Neo-Freudian Theory: Sigmund Freud developed psycho-analytical theory of personality. Some of his contemporary theorists, too, helped in advancing the thoughts of Freud. The prominent scholars included the names like Sullivan, Erikson and Horney. The ideas advanced by all these three thinkers regarding personality came to be called Neo-Freudian concept.

Sullivan laid a specific stress on the social and cultural aspects. He believed that an individual remains in perpetual contact with the social and cultural factors right since his childhood. These factors produce some kind of action and reaction. This ultimately leads to the formation of personality of an individual. It goes a long way in determining individual behaviour. It can, therefore, be said that personality is finally shaped and moulded by interpersonal behaviour.

Erikson feels that an ideal personality can be developed by making adjustment with the changing social background. 

Horney feels that concern for future happens to be a decidedly important factor in the formation of personality.

● III. Trait Theory: It has been generally observed that different people behave differently. This is because of the traits present in them which, too, happens to be different. The variety of traits is primarily responsible for giving people their separate identity. Modern psychologists feel that these traits perform the job of forming personality. It should include only those specialities which reflect themselves in different situations in their actual context. As per personality related traits, two important theories are: 

(1) Allport Trait Theory: Allport propounded this theory. He has taken the traits of personality as its base. According to this theory, the traits of people have been divided in the following two parts:

(i) Common Traits: Common traits means those traits which are commonly found in all the people of same category. Therefore, on theor basis the different people can be compared with each other. Dominance is a good example of common traits. It can be said that the dominance of one person is more than the other.

(ii) Personal Disposition: Personal Disposition means those traits which are limited to a person of a particular group or category. It obviously means that they are not found in all the people. That is the reason that there can be no comparison among different people on the basis of those traits. A comparative study of an individual can be made from different angles on the basis of personal disposition. If we say that Mr. Ankit is more active and less inactive, then it would be an example of personal disposition. Allport in his personal trait theory has laid more stress on personal disposition than common traits. He has pointed out 18000 personal disposition. Personal dispositions can be divided into following three parts:

(a) Cardinal Disposition: This is an individual trait which cannot be kept hidden. This trait is not present in all the people, but those who possess it, it becomes a base for their being widely discussed. The unshakable faith of Mahatma Gandhi in the principle of non-violence is an example of this very trait. 

(b) Central Disposition: These traits are almost found in all the people. They are nearly 5 to 10 in number, e.g., sociability, depression, self-confidence, etc. 

(c) Secondary Disposition: These traits are those traits which are less important and less consistent, e.g. hairstyle, eating habits, dress, etc. These are the traits which do not help in understanding personality. 

(2) Catell’s Trait Theory: After Allport’s trait theory of personality, Catell’s contribution is equally important. Catell took up the process of discovering those traits which go to influence personality. He took up 4500 trait out of a total of 18,000 which are pointed out by Allport. Later on this figure fell to 200 and finally it was reduced to 35. Catell has divided the traits of personality in the following two parts:

(i) Surface Traits: Surface traits refers to those traits which can be easily observed in the day to day behaviour of an individual. They are more clear and there cannot be any difference of opinion about them. For example, integrity, cheerfulness, altruism, etc. 

(ii) Source Traits: According to Catell, source traits play an important part in the formation of personality. Their number happens to be less than surface traits. Unlike the surface traits, these traits do not get reflected in the day to day behaviour of a person. According to Catell, there are 23 source traits which are found in normal individuals, while there are 12 source traits which are present only in abnormal people. Source traits are also of two types, I.e., Environmental Mold Traits and Constitutional Traits. The environmental mold traits are mostly affected by the environmental factors while constitutional traits are influenced by the heredity. 

In short, it can be said that according to Catell the source traits have an important contribution in the formation of personality.

● IV. Personality Type Theory: Personality Type Theory is the oldest theory. According to this theory, individuals can we placed in different categories on the basis of their special traits. All the people belonging to a particular category have similar traits. It means that all have a similar personality. Therefore, it can be said that there can be various types of personality. The personality type theory has been presented by Sheldon and Karljung. They are the following:

(1) Sheldon’s Personality Theory: In the year 1940, Sheldon presented his Personality Type Theory on the basis of physical formation. He studied 4,000 students in order to determine the type of personality based on the physical formation. He divided personality into the following three parts:

(i) Endomorph: In this category of personality, the people are short statured and fat. Their body is of round shape. According to Sheldon, these people are jovial, social, enjoy taking rest, and show great interest in eatables. These people are popular with others.

(ii) Mesomorph: People belonging to this type of personality, are attractively built. Their main traits happen to be assertion and aggressiveness. These people enjoy giving commands to others. 

(iii) Ectomorph: People belonging to this type of personality are lean and thin and have a good height. Physically they are not fully developed. These people like loneliness and do not want to meet people freely. They are shy by nature and they suffer from some problems with their sleep.

(2) Karljung’s Personality Theory: Karljung has made a mention of the following two types of personality.

(i) Extrovert: These people have following traits: 

● Interested in social activities.

● Like meeting people. 

● Be always happy and cheerful.

● They are of optimistic nature.

● They believe in realism.

● They are useful for society.

● They are interested in eating and drinking.

(ii) Introvert: These people possess the traits which happen to be opposite of the traits of people who are extrovert. Their chief traits are the following.  

● Not interested in social activities.

● Like living alone.

● Be always uneasy.

● Conservative by nature. 

● They are self centered.

● They do not like consulting other people.

● Ungenial behaviour.

● V. Social Learning Theory: This theory is the outcome of the research work conducted by Albert Bandura. He has given more importance to the social factors than the physical factors in the formation of personality. He supported the social learning theory on the basis of various experiments. In one of his experiments, Bandura showed a film to some children. In this film the behaviour of an adult was shown. The film had been divided into three parts. Every child was shown only one part of the film. In the first part of the film the hero displayed an aggressive behaviour and he is punished for it. In the second part of the film again the hero behaves aggressively for which he was rewarded. In the final part of the film, the hero again displayed an aggressive behaviour and at this stage, he was neither punished, nor rewarded. After showing the film every child was placed in similar conditions about which they were shown in the film. Then their behaviour was studied. It was found that children ignored that behaviour of the hero where he was punished for his aggressive behaviour. It makes it clear that a person learns from social factors and the same learning becomes helpful in the formation of his personality.

● VI. Need Theory: Need Theory of personality is propounded by Henry Murray. According to this theory, it is because of the need of the individual that he behaves in a particular way under particular circumstances. Needs create a situation of disequilibrium within an individual. Behaviour of an individual is very much influenced by the disequilibrium so developed in him. In other words, an individual feels lacking in something, he is prompted to come into action. It is expressed through his behaviour. 

Murray has divided the needs of man into the two categories: 

(i) Primary Needs: These are the basic needs of a man. For instance, food, water, air, etc. These needs are easily fulfilled. Behaviour of an individual does not undergo any particular change on account of these needs. 

(ii) Secondary Needs: These needs arise because of the psychological nature of an individual. These are:

• Achievement

• Recognition 

• Dominance 

• Autonomy 

• Affiliation

According to Murray, secondary needs are more powerful. These arise again and again. Man’s behaviour turns intense because of them. These needs go a long way in building the personality of an individual. Corresponding to rise or fall in these needs, there is change in the behaviour and personality of individuals.

● VII. Self Concept Theory: Carl Rogers has advocated this theory. It is closely related to organisational behaviour. 

Self concept implies how much we recognise ourselves and how much we are confident about ourselves. Self concept of an individual determines his concept about the external world. If an individual is doubtful of his ability, he will be afraid of the external world. On the contrary, if an individual is fully confident of himself, he will gladly accept the external world. Self concept of an individual is influenced by feedback of the environment. Feedback here implies to know what others think about us. In case feedback informs us that our opinion about ourselves is at variance with the opinion that others hold about ourselves, then there is need to re-evaluate ourselves. According to Rogers, on the basis of such re-evaluation people try to readjust themselves. Change in self concept brings about change in personality. 

It is on the basis of self concept that an individual perceives the surroundings. In other words, an individual views others in a way similar to his self concept. It can, therefore, be said unhesitatingly that behaviour of the individuals is influenced by self concept.

Since self concept of each individual differs, so a given situation is perceived by different people in different ways. That is why to get work from persons with different self concept, managers have to make use of different methods.

Mixed economy golden path between capitalism and socialism.

 Q. ‘Mixed economy is a golden path between capitalism and socialism’. Explain.

Ans. Meaning of Mixed Economy: Mixed economic system is a synthesis [combination/mixture] of the characteristics of both capitalism and socialism. Under this type of economy, on the one hand there is freedom of economic activities and on the other there is also government interference in the economic activities to achieve the objective of social welfare. In this new system, private sector and public sector co-operate with each other with a view to achieve economic objectives as well as promotion of social welfare. Thus, the economy that comes into being as a result of synthesis of private sector of capitalism and public sector of socialism is called a mixed economy. India has adopted mixed economic system.

According to Anatol Murad, “Mixed economy is that economy in which in which both government and private individuals exercise [to use or apply, काम में लाना] control over economic activities.”

According to Samuelson, “Mixed economy is that economy in which both public and private institutions exercise economic control.”

● Main Features of Mixed Economic System are:

(1) Co-existence of Private and Public Sectors: The most important feature of a mixed economy is that under it both public and private sectors work hand in hand. The main objective of both the sectors is mutual co-operation. They also supplement each other. In the interest of consumer, they also compete with each other in a spirit of healthy competition.

(2) Planned Economy and Government Control: It is the endevaour of the government to launch democratic plans with a view to achieveing economic development. These plans aim at progressive development of both public and private sectors. In order to achieve the set objectives and promote social welfare, the government keeps full control over the industries and other enterprises in the private sector.

(3) Private Property and Economic Equality: Under mixed economy, people are free to acquire private property. But in the interest of equitable distribution of wealth and income in the country, government formulates its economic policies in such a manner that there is no concentration of wealth in the hands of a few people. Government imposes various taxes on private sector. At the same time, it spends a lot of funds in the public sector to promote the welfare of the poor people. 

(4) Price Mechanism and Regulated Economy: In capitalism, the entire economy is regulated by price mechanism, that is, by the forces of demand and supply. Main economic decisions, like what to produce, how to produce and for whom to produce, are determined by price mechanism. On the other hand, under socialism, prices of goods are fixed on the directions of the government. Under mixed economy, one finds the operation (use) of both price mechanism as well as administrative (of govt.) prices. Prices of some goods are determined by market demand and supply but some prices, such as rail and bus fares, electricity tariffs etc. are largely fixed by the government. 

(5) Profit Motive and Social Welfare: Aim of production under mixed economy is to earn private profit as in capitalist economies and to promote social welfare as in socialist economies. 

In short, mixed economic system is a mixture of features of both socialism and capitalism, focussing on social welfare rather than on accumulation of wealth.

● Merits of Mixed Economy 

Mixed economy enjoys merits of both capitalism and socialism. Its main merits are: 

(1) Economic Freedom and Capital Formation: Economic freedom provides incentive to the people to work hard. It promotes setting up of more business units which in turn promotes capital formation.

(2) Competition and Efficient Production: Healthy competition among the producers keeps the standard of efficiency high. Because of the possibility of private profit, all factors work efficiently. Because of competition, all business units try to reduce their wastages, improve efficiency and make optimum utilisation of resources.

(3) Efficient Allocation of Resources: Both private and public sectors are keen to make efficient allocation of resources. Private sector makes efficient use of resources in order to earn more profit. Main motive of public sector is to promote social welfare. Thus, there is a sort of synthesis of social welfare and private profit. Thus, mixed economy promotes both – level of economic development as well as social welfare.

Price mechanism, profit motive, freedom of production and consumption can lead to efficient allocation of resources.

(4) Advantages of Planning: Mixed economy enjoys almost all advantages of planning. There is rapid development of the economy in accordance with the planned development programmes. Problems of unemployment, food shortage, poverty, etc. are properly tackled. Thus, economy works in a planned manner.

(5) Economic Equality: Objectives of economic equality can be achieved without sacrificing economic freedom. Increasing prosperity of private sector is controlled by the government in such a manner that it benefits the people at large. Government imposes tax at higher rates on rich class and spends on social welfare of poor class which in turn promotes economic equality.

(6) Freedom from Exploitation: Poor and middle class people are protected against the exploitation by rich, monopolies and landlord class. To safeguard the interests of poor labourers and farmers, government takes several legislative measures. It also helps poor and backward class people in getting employment in public sector units. Government also provides free education and free medical facilities to these people.

In short, mixed economy is a golden path between capitalism and socialism. It has the main merits of capitalism like inspiration to work, efficient organisation and economic freedom and also that of socialism like economic equality, economic planning, social welfare and lack of exploitation. It is the most useful system for the economic development of undeveloped countries.

Decision Making Techniques in Organisation.

 Q. What is Decision Making? Throw light on various techniques used for making decisions in organisations these days.

Ans. MEANING OF DECISION-MAKING: Decision-making is an important function of every manager. When a manager chooses the best alternative out of many available ones, it is called decision and the process that has been adopted in order to reach the final decision is known as the decision-making. In other words, Decision-making is a process and decision is the outcome of such a process. 

Decision-making means analysing different alternatives and arriving at decision in the face of a particular situation about what to do and what not to do. In this way, decision-making means reaching a conclusion or final decision which can be implemented as a solution of a problem. 

According to Koontz and O’Donnel, “Decision-making is the actual selection from among alternatives of a course of action.”

According to George R. Terry, “Decision-making is the selection based on some criteria from two or more possible alternatives.”

According to Louis A. Allen, “Decision-making is the work which a manager performs to arrive at conclusion and judgement.”

Thus, decision-making involves the selection of the best available alternative as a solution of some problem. It is thus clear that a decision is needed when there are many alternatives to do a work. In other words, if there is only one method of doing a work there is no need to take a decision and in that case that method in itself is a decision. 

Decision-making Techniques: Following are the major techniques of decision-making:

1. Judgement Technique: This is the most ancient and simple technique of decision-making. According to this technique, the decisions are taken on the basis of past and present experience. This technique is the most useful for day-to-day small decisions but the use of this technique for taking important decisions is not free from risks.

2. Statistical Techniques: These days statistical technique is used as an important tool in taking important decisions. The various statistical techniques used in taking decisions are the following:

(i) Theory of Probability, 

(ii) Sampling Analysis,

(iii) Correlation/Regression,

(iv) Time Series Analysis,

(v) Ratio Analysis,

(vi) Variance Analysis,

(vii) Statistical Quality Control, etc. 

3. Operation Research Techniques: Apart from statistical techniques there are other modern techniques which are called Operations Research Techniques. They are used in very important decisions. Following are the Chief Operations Research Techniques:

(i) Linear Programming,

(ii) Game Theory,

(iii) Network Analysis,

(iv) Break-even Analysis,

(v) Waiting Line or Queuing Theory,

(vi) Cost-Benefit Analysis, etc.

4. Model Building Technique: This technique is employed in manufacturing concerns. Under this technique a model of an intended product is prepared and then it is estimated whether the product is according to the taste of the customers or not. Many models of a particular product are prepared and then the decision to produce a particular model which the approval of the taste of the customers is taken.

5. Behavioural Technique: The science of behaviour has also developed many techniques of decision-making. With the help of these techniques factors affecting a particular decision are evaluated. Group decisions are an important contribution of this science.

6. Principles of Management Technique: This technique lays down that while taking decision the principles of management should be kept in mind. In reality it can be observed that the principles of management are not a technique of decision-making, but prepare only an atmosphere for decision-making process.

7. Intuition Technique: Taking decision under this technique employs one’s intuitive feelings and knowledge. The decision maker thinks about a problem and his mind suggests the solution. Decisions by this technique are quick. The correctness of the decision depends on the experience, education, training, etc., of the decision-maker.

SWOT Analysis: Components, useful/uses in budiness

 Q. What is SWOT analysis ? What are its main components ? How is it useful in business?

Ans. Meaning of SWOT analysis: SWOT analysis is an analysis undertaken by business firms to understand their external and internal environment. The term SWOT consists of four words :

S — Strengths

W — Weaknesses 

O — Opportunities 

T — Threats

It is also known as WOTS–UP analysis. SWOT analysis is applied to formulate effective organisational strategies. The business firms can match through SWOT analysis, the strengths (S) and weaknesses (W) existing within an organisation with the opportunities (O) and threats (T) operating in the environment. An effective organisational strategy according to SWOT analysis is that strategy which capitalizes on the opportunities through the use of its strengths and neutralizes the threats by minimizing the impact of weaknesses. Thus, SWOT analysis enables a business firm to use its strengths to exploit the opportunities provided by the environment. On the other hand, threats of environment are neutralized by reducing its weaknesses to the minimum level. 

Components of SWOT Analysis: The SWOT analysis consists of following components:

1. Environment: The term business environment means the aggregate of all conditions, events and influences that surround and affect the business organisation. It may be of two types:

(a) External Environment: The external environment of a business firm is that environment which includes all the factors outside the organisation. These factors provide opportunities or pose (present or constitute (make) threats to the organisation. Thus, external environment provides opportunities as well as threats. 

(b) Internal Environment: Internal environment is that environment which includes all the factors within an organisation. These factors impart strengths or cause weaknesses of a strategic nature. 

In short, the environment in which an organisation exists can be described (i) in terms of opportunities and threats operating in the external environment and (ii) in terms of strengths and weaknesses existing in the internal environment. 

2. Strengths (S): The strength of a business organisation refers to an inherent capacity by which an organisation can gain important advantages over its competitors. For example, superior research facilities and presence of developmental skills are the strengths of a business organisation. These can be used as development of new products, enabling the business organisation to have competitive advantages over its competitors.

3. Weaknesses (W): The weakness of a firm refers to an inherent limitation of a business firm. It results in significant disadvantages for a firm in comparison to its competitors. For example, over-dependence of a firm on a single product line is its weakness. It can result in losses in times of crisis.

4. Opportunities (O): The availability of opportunity is a favourable condition in the organisation’s environment. It enables it to consolidate and strengthen its position in comparison to its competitors. For example, an increasing demand for the product, produced by the business organisation is an indication of an opportunity. 

5. Threats (T): The presence of a threat is an unfavorable condition in the environment of a business organisation. It causes damages to and creates a risk for the organisation. For example, the emergence of strong new competitors is a threat to the business organisations because of the possibility of a stiff competition. 

Uses of SWOT Analysis: Following are the uses of SWOT analysis: 

1. It helps to determine the strategy of the business.

2. It is used in the initial stage of decision-making.

3. Use of external and internal factors of this analysis, help in visualising a complete picture about the future of the business. 

4. It also helps in facing the competition successfully.

5. SWOT analysis is helpful in minimising the weaknesses and maximising the strengths of the business. 

We can conclude that SWOT analysis is a systematic approach to understand the environment and formulate strategic policies.