Industrial Psychology: An introduction
Just imagine a situation where all employees loved their jobs so much that they couldn’t
wait to get to work and were so well suited and trained that their performances were outstanding?
Impossible as it seems. Unfortunately, not every employee will enjoy his or her job, and not
every employee will do well on a job. In this introductory course on industrial psychology, you
will learn how industrial psychologists contribute towards the goal of a happy and productive
workforce.
What is Industrial Psychology?
Industrial psychology is a branch of psychology that applies the principles of psychology to
the workplace. The purpose of industrial psychology is “to enhance the dignity and performance
of human beings, and the organizations they work in, by advancing the science and knowledge of
human behavior”. Industrial psychology is, therefore, simply the application or extension of
psychological facts and principles to the problems/challenges/issues concerning human beings
operating in business and industry (Blum & Naylor, 1984). For example, principles of learning
are used to develop training programs and incentive plans; principles of social psychology are
used to form work groups and understand employee conflict; principles of motivation and
emotion are used to motivate and satisfy employees; and knowledge about intelligence and
personality is used in recruitment and selection of employees. A branch of applied psychology,
industrial psychology is concerned with efficient management of work force and especially with
problems encountered by workers in business and industrial environmental.
Sub Divisions/Branches of Industrial Psychology
The major sub-divisions/branches of industrial psychology are as below: -
(i) Personnel Psychology: Professionals involved in personnel psychology study and practice
in areas such as analyzing jobs, recruiting applicants, selecting employees, determining
salary levels, training employees, and evaluating employee performance. Professionals
working in these areas choose existing tests or create new ones that can be used to select
and promote employees. These tests are then constantly evaluated to ensure that they are
both fair and valid. Personnel psychologists also analyze jobs to obtain a complete picture
of what each employee does, often assigning monetary values to each position. After
obtaining complete job descriptions, professionals in personnel psychology construct
performance-appraisal instruments to evaluate employee performance. Psychologists in this
area also examine various methods that can be used to train and develop employees. People
within this subfield usually work in a training department of an organization and are
involved in such activities as identifying the organization’s training needs, developing
training programs, and evaluating training success.
(ii) Organizational Psychology: Professionals working in organizational psychology are
concerned with the issues of leadership, job satisfaction, employee motivation,
organizational communication, conflict management, organizational change, and group
processes within an organization. Organizational psychologists often conduct surveys of
employee attitudes to get ideas about what employees believe are an organization’s
strengths and weaknesses. Usually serving in the role of a consultant, an organizational
psychologist makes recommendations on ways problem areas can be improved. For
example, low job satisfaction might be improved by allowing employees to participate in
making certain company decisions, and poor communication might be improved by
implementing an employee suggestion system. Professionals in this area implement
organization-wide programs designed to improve employee performance. Such programs
might include team building, restructuring, and employee empowerment.
(iii) Human Factors/Ergonomics: Psychologists working in human factors/ergonomics
concentrate on workplace design, human-machine interaction, ergonomics, and physical
fatigue and stress. These psychologists frequently work with engineers and other technical
professionals to make the workplace safer and more efficient. Sample activities in this
subfield have included designing the optimal way to draw a map, designing the most
comfortable chair, and investigating the optimal work schedule.
Approaches to Industrial Psychology
The goal of industrial psychology is to increase the productivity and well-being of
employees and there are two approaches to how this can be accomplished (i) industrial approach,
and (ii) organizational approach. The industrial approach focuses on determining the
competencies needed to perform a job, staffing the organization with employees who have those
competencies, and increasing those competencies through training. The organizational approach
focuses on creating an organizational structure and culture that will motivate employees to
perform well, give them with the necessary information to do their jobs, and provide working
conditions that are safe and result in an enjoyable and satisfying work environment.
Distinct features of Industrial Psychology
There is a considerable overlap between what is taught in a typical industrial psychology
course and courses on Organizational Behavior, Human Resource Management, and Industrial
Sociology. However, there are certain features of industrial psychology which separate it from
other similar disciplines. Such distinct features are as below: -
(i) Application of psychological principles: The application of psychological principles is
what best distinguishes industrial psychology from other related fields. Industrial
psychology draws its facts and principles exclusively from psychology. For example,
principles of learning are used to develop training programs and incentive plans; principles
of social psychology are used to form work groups and understand employee conflict;
principles of motivation and emotion are used to motivate and satisfy employees; and
knowledge about intelligence and personality is used in recruitment and selection of
employees.
(ii) Focus on individual: A second difference between industrial psychology and other similar
fields is that industrial psychology examines factors that affect individuals in an
organization as opposed to the broader aspects of running an organization such as
marketing channels, transportation networks, and cost accounting. A typical graduate
course in business (MBA) program examine such areas as accounting, economics, and
marketing, whereas industrial psychology program focus almost exclusively on issues
involving the individual in an organization.
(iii) Scientific Approach: Industrial psychology relies extensively on research, quantitative
methods, and testing techniques. Industrial psychologists are trained to systematically
observe the phenomenon of their interest, measure it using empirical methods, quantify it,
analyze it, and base their conclusions on these observation and analysis.
(iv) Fundamental as well as applied discipline: The basic difference between being a
fundamental discipline and an applied discipline is the purpose/motive of conducting
research. Research in fundamental discipline is intended to explore a topic in detail or to
increase knowledge about some phenomenon. In contrast, applied research focuses on
application of knowledge about something to address issues/solve problems. Industrial
psychology does both. On one hand, industrial psychology tries to increase knowledge
about human behavior at work place. At the same time, it also uses the existing knowledge
to help individuals and organizations to increase efficiency and productivity.
(v) Relies on Scientist Practitioner Model: An important factor that differentiates industrial
psychology from other similar fields is its reliance on the scientist-practitioner model. It
implies that industrial psychologists act as scientists when they conduct research and as
practitioners when they work with actual organizations. In addition, industrial
psychologists act as scientist-practitioners when they apply research findings so that the
work they perform with organizations will be of high quality and enhance an organization’s
effectiveness.
Scope of Industrial Psychology
Discussed below is the extent of subject matter dealt by industrial psychology: -
(i) Scientific selection of workers: To outperform others, it is extremely important to get the
best available talent in your organization. Industrial psychologists help organizations in
getting the most appropriate employees for any job. For this, industrial psychologists
analyze jobs, recruit applicants, and select employees. Industrial psychologists help
organizations to identify (i) the kind of skill which is required, (ii) the kind of people who
could fulfill their requirements, (iii) to devise an objective, fair and transparent method of
shortlisting and selecting the candidates. Industrial psychologists conduct in-depth
interviews and psychological tests of intelligence, aptitude, skills, abilities, and interests to
judge the suitability of candidates.
(ii) Training: Besides helping organizations to select employees, industrial psychologists are
also involved in designing, executing, and evaluating training programs for employees.
Such training programs are not meant only for new employees but also for existing
employees to upgrade their skills and knowledge. Devising clear methods of performing a
job and training employees in such methods is quite important to increase efficiency of
organizations.
(iii) Systematic allocation of work: Merely selecting best people and training them is not
sufficient. We also need to assign work to the employees keeping in view their knowledge,
skills, and abilities. Industrial psychologists help organizations to clearly define and divide
the work to be done by each employee.
(iv) Performance appraisal: Performance appraisal helps an organization to distinguish
between employees who are meeting the required standards and those who are not.
Industrial psychologists help organizations (i) to define the specific job criteria against
which performance will be measured, (ii) to decide the methods/tools to be used for
performance appraisal, (iii) to measure past job performance accurately, and (iv) justify the
rewards given to individuals and/or groups, thereby discriminating between high and low
performance.
(v) Reducing wastage of human efforts: One of the important jobs of an industrial psychologist
is also to enable organizations to minimize the wastage of human power. Industrial
psychologists help in workplace design, human-machine interactions to make work places
more safe and efficient. Psychological factors causing fatigue or accident are also studied
to devise ways to prevent accidents. The techniques of motivation and morale are used for
this purpose.
(vi) Promoting labour welfare: Not only industrial psychologists help the organizations, they
also help employees by ensuring that the employers follow the statutory
provisions/rules/regulations concerning industrial safety, work place hygiene and labor
welfare.
(vii) Developing industrial relations: Individuals differ from each other in their thoughts,
behavior, and other parameters. Therefore, different measures may be adopted in solving
the problem relating to everyone. Industrial psychology helps in developing industrial
relationship among workers' and management.
Brief History of Industrial Psychology:
Bryan & Harter published a paper in 1897 wherein the term “industrial psychology” was
first used but by mistake. Therefore, industrial psychology is generally thought to have started in
1902 when Walter Dill Scott delivered a series of lectures on using psychology in advertising. In
1903, he compiled these lectures and published them as a book titled ‘The Theory of
Advertising’. In 1911, Scott published another book titled ‘Increasing Human Efficiency in
Business’. In 1913, Hugo Munsterberg wrote a book titled ‘Psychology and Industrial
Efficiency’. Interestingly, the term “industrial psychology” was seldom used prior to 1st World
War. Instead, the common terms for the field were “economic psychology,” “business
psychology,” and “employment psychology”.
Industrial psychology made its first big impact during 1st World War. Because of the large
number of soldiers who had to be assigned to various units within the armed forces, industrial
psychologists were employed to test recruits and then place them in appropriate positions. The
testing was accomplished mainly through the Army Alpha and Army Beta tests of mental
ability. The Alpha test was used for recruits who could read and the Beta test for recruits who
could not read. The more intelligent recruits were assigned to officer training, and the less
intelligent to the infantry. John Watson, a renowned psychologist of his time, developed
perceptual and motor tests for potential pilots. Industrial psychologists, especially Henry Gantt,
were responsible for increasing the efficiency with which cargo ships were built, repaired, and
loaded.
Two of the most interesting figures in the early years of industrial psychology were the
husband and wife team of Frank Gilbreth and Lillian Moller Gilbreth. Gilbreth couple is
remembered in the history of industrial psychology for carrying forward and developing the
Time & Motion studies which were pioneered by F.W. Taylor. The Gilbreths were among the
first scientists to improve productivity and reduce fatigue by studying the motions used by
workers.
Other important time lines in the history of industrial psychology include: -
1917- Journal of Industrial Psychology started publishing
1928 to 33- Hawthorne Studies published. The major contribution of the Hawthorne studies
was that it inspired psychologists to increase their focus on human factors in performance.
1937- American Association for Applied Psychology established
1945- Industrial psychology was recognized as separate branch of psychology and 14th
Division of American Psychological Association with 130 members and named as Society
of Industrial & Organizational Psychology.
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Scientific Management
Also, referred to as ‘Taylorism’ or ‘Taylor’s System’, Scientific Management is a
management theory given by Frederick Winslow Taylor. Considered to be the ‘Father of
Scientific Management’, Taylor was an American mechanical engineer who worked with the
Midvale Steel Company on Philadelphia, USA during 1878 to 1890. Taylor is also known as one
of the first management consultants of the world.
As a management theory, Taylorism analyzed and synthesized workflows. Taylorism was
intended towards improving industrial efficiency, especially labor productivity. It was one of the
earliest attempts to apply scientific thinking to the process of management. In the simplest terms,
Taylorism is art of knowing exactly what is to be done in the best and cheapest way.
But before we discuss what exactly the theory of Scientific Management is, it would be
useful to look at the circumstances in which the theory was put forward.
Brief History of Scientific Management
Industrial revolution and ideas of Adam Smith had transformed the economies of USA and
Western Europe during 18th century. Technology and industry were replacing agriculture and
population as the determinants of a nation’s strength. France, once a dominant power of Europe
because of its population and farmlands, was being overshadowed by its industrial rival Great
Britain. Simultaneously, USA was also emerging as the new industrial hub of the world. Despite
large scale production taking place in factories, which employed hundreds or thousands of
employees, there were no concepts of: -
(i) Worker training
(ii) Sophisticated systems for equipment maintenance
(iii)Quality assurance
(iv) Production Control
In the US, at the beginning of 20th century, skilled labor was in short supply. Hence the
only way to increase production was to raise the efficiency of workers. The theory of Scientific
Management arose, in part, from the need to increase productivity. It is in these circumstances;
Taylor devised a body of principles known as the theory of Scientific Management. He published
two monographs namely ‘Shop Management’ (1903) and ‘The Principles of Scientific
Management’ (1911) in which he elaborated his theory. Taylor’s work was later followed by
contributions from Henry Gantt, Frank Gilbreth, and Lillian Gilbreth.
Objectives of Scientific Management
(i) To ensure maximum prosperity to the employers and the employee.
(ii) Ensuring maximum prosperity of the employer includes development of every branch of
the business.
(iii) Ensuring maximum prosperity of the employee include development of each worker to a
state of efficiency.
Fundamental Principles of Scientific Management
Following are the four fundamental premises on which theory of Scientific Management
rests: -
(i) Development of true science of management, instead of rule of thumb so that the best
method for performing each task could be determined.
Taylor believed that instead of relying on mere estimations of how a task could be
optimally performed, carefully designed scientific studies should be conducted to arrive at
the best, shortest and cheapest method of doing any work. This can be done by simply
breaking each job into smallest individual tasks and carefully observe to point out the steps
which could be improved/shortened or eliminated so that the best method of performing a
job could be fixed.
(ii) Scientific selection of workers so that each worker is given responsibility for the task for
which he/she is best suited.
This principle, again, believes that instead of relying on personal/ general assessment, there
should be a clearly devised objective method of deciding who, among many others, should
be selected whose skills, aptitude and experience matches the job requirement.
(iii) Scientific education, training, and development of each worker to his/her greatest
efficiency
Taylor’s third principles emphasizes on the need to train, educate, and develop each
employee by: -
(a) Clearly defining and dividing the work to be done by each employee;
(b) Devising methods for doing a work and training the worker in the way he/she must
perform his job.
(c) Devising a fair and transparent method of providing incentives, promotions, and
rewards for those employees who meet a certain benchmark.
(iv) Harmony, not discord & cooperation, not individualism
The fourth principle of Taylorism focuses on maintaining a healthy relation between
workers and management. Organizations should treat workers as a part of organization and
not merely wage earners. Also, the employees should co-operate with each other on work
and believe them to be part of the work group.
Scientific Management in action
Taylor’s reorganization of the labor force at Bethlehem Steel between April 1898 and April 1901
qualifies as one of the best-known and most controversial episodes in American industrial
history. Bethlehem Steel Company had five blast furnaces and a large group of workers to load
pig iron. On an average, each worker used to load 12.5 tons per day. A series of studies by
Taylor showed that one person can handle between 47-48 tons per day (1st principle). He
observed the entire group of workers and shortlisted four and finally selected a worker named
Schmidt from Pennsylvania (2nd principle). Schmidt was told that the management would
provide a man to instruct and guide him how to complete his task and was asked to handle 47
tones every day. His salary was increased to USD 1.85 per day (3rd principle). A management
representative was deputed with him who instructed him, cooperated with him, and took care of
him and his strength (4th principle). In this way, Taylor successfully reorganized Bethlehem’s
work force while increasing its productivity and efficiency.
Major criticisms of Scientific Management
Initially, the theory was welcomed passionately but in its later years, it attracted huge
criticisms from various quarters. Some of the major arguments against this theory were: -
(i) It is reductionist in its approach, dehumanizes workers; treats them as merely machines.
(ii) If followed in letter and spirit, it would leave no scope for the individual worker to excel,
think or innovate in his work.
(iii) It goes against the fundamental human nature. Individuals are quite different from each
other and the best way of performing a job could substantially vary from one person to the
other.
(iv) Its obsession with productivity and efficiency often leads to exploitation of workers by the
management.
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Time & Motion Study
Pioneered by the US engineer Frederick Winslow Taylor, Time and Motion Studies were
developed by the husband and wife team of Frank Gilbreth and Dr. Lillian Gilbreth. Time and
motions studies are basically methods which could be used by management to establish standard
time and ways to work to increase productivity and efficiency. Time and motion studies are
generally appropriate only for repetitive tasks.
Time study
Time study can be defined as the method to fix/determine the standard time required to
perform a task by an individual of average efficiency. Other definitions of time study are as
below:
“Time study may be defined primarily as the art of observing and recording time required for
each detailed element of industrial operation”.
(Kimball & Kimball)
“Time study is the analysis and determination of the time necessary to perform a given task”.
(John A. Shubin)
Objectives/Aims of Time study
The objectives of time study are as below: -
(i) To determine/ fix standard time required to perform a task under normal
situation/conditions.
(ii) To avoid unusual idle time and delay in the execution of the task/job.
(iii) To use the standard time data to fix a fair incentive wage plan.
(iv) To create time consciousness among the workers.
(v) To minimize and control the cost.
(vi) To set performance standards and judge the efficiency of a worker.
Process of Time study
The steps involved in conducting time study are as below: -
Step 1- Select a worker of average efficiency.
Step 2- Provide him/her with normal working conditions including facilities/tools/equipment.
Step 3- Standardize the job
Step 4- Observe and record the time consumed at each step
Step 5- Make adjustments, if required, for fatigue, machine time, irregular delay, and human
needs.
Step 6- Fix the standard rate based on above findings.
Advantages & Disadvantages of Time study
Advantages Disadvantages
Helps in measuring the efficiency of each Useful only for repetitive jobs.
worker by setting standards. Results of time study cannot be applied until
Helps in setting of production schedules for all work conditions, equipment, tools, etc.
use in production, planning and control. are standard.
Helps in computing standard costs and cost Standards based upon time study may
reduction. adversely affect the quality of final product.
Helps the management in formulating and Not applicable to factors which indirectly
revising wage structure of employees. affect the speed of production.
Motion study
In simple terms, motion study can be defined as the method to establish ‘the one best way’
to perform a specific task. Motion study consists of dividing work into the most fundamental
elements possible, studying these elements separately and in relation to one another, and from
these studied elements building the methods of least waste. Some other definitions are as below:
-
“Motion study is the science of eliminating wastefulness resulting from using unnecessary, ill-
directed and inefficient motions. The aim of motion study is to find and perpetuate the schemes of
least waste methods of labors”.
(Frank Gilbreth)
“Motion study may be defined as the study of movements, whether of a machine or an operator,
in performing an operation for the purpose of eliminating useless motions and of arranging the
sequence of useful motions in the most efficient order”.
(Kimball & Kimball)
Process of Motion study
The steps involved in conducting motion study are as below: -
Step 1- Break every task into the smallest possible step.
Step 2- Arrange it from beginning to end.
Step 3- Analyze every step to see if it is possible to eliminate step(s) which are not useful or
un-necessary.
Step 4- The abridged version is now the shortest possible way to complete any task.
Advantages & Disadvantages of Motion study
Advantages Disadvantages
Helps in increasing production. It adversely affects the initiative and
Helps in increasing efficiency of workers by creativity of workers.
reducing fatigue and manual labour. It lays down a certain pattern of motions
which, if employed, can make task
Helpful in reducing production costs.
monotonous.
Helps to ensure low price of goods. It does not take into consideration the
It improves working conditions. differences in the efficiency of various
workers.
It fixes standards which may not be
achievable and hence disliked by workers.
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Human Relations School
The Human Relations school has its origin in the works of Professor George Elton Mayo
(1880-1949) and his associates at an electric plant in Hawthorne near Chicago, USA. Mayo, a
professor at the Harvard Business School, published books titled ‘Human Problems of an
Industrial Civilization’ (1933), ‘Social problems of an Industrial Civilization’ (1945), ‘Training
for Human Relations’ (1949) etc. The series of experiments carried out by Mayo and his
colleagues later became famous as ‘Hawthorne Experiments’ and these studies highlighted, for
the first time, the critical relationship between social factors and productivity.
Before the ‘Hawthorne Experiments’ took place, followers of classical school of
management did not attached importance to the human aspects of workers. Productivity of the
employees was believed to be linked only to the physical conditions at work and wages paid to
the workers. Lack of production efficiency and co-operation between the management and
workers resulted in failure of the classical approach and emergence of human
relations movement in management.
Following the Hawthorne experiments, a great deal of work was carried out by behavioral
scientists belonging to a variety of disciplines including Psychology, Sociology, Anthropology
etc. to understand the behavior of people at work. According to the Human Relations approach,
an organization is a social system of interpersonal and inter group relationships and effectiveness
of any organization depends on the quality of relationships among the people working in the
organization. Therefore, managers must also focus on the quality and pattern of interaction of
people within the organization.
The Hawthorne experiments proved to be a turning point in the evolution and development
of management thought. Mayo’s work challenged the basic postulates of the classical approach
and revealed the over-whelming significance of human and social factors in industry. Following
the Hawthorne studies, many organizations initiated measures to improve relations with the
workers. Managers were supposed to assume a new role and to develop new concepts of
authority, motivation and leadership.
However, the Hawthorne experiments were later criticized for lack of scientific analysis
and research. It was alleged that the researchers had certain pre-conceived perceptions and
orientations. The experiments were too narrow and small to provide generalization.
Experiments under Hawthorne Series:
The major phases of Hawthorne experiments are as follows: -
Illumination experiments were conducted to determine the effects of changes in illumination
on productivity.
Relay Assembly Test Room experiments were done to determine the effects of changes in
hours and other working conditions on productivity.
Mass Interviewing programme was conducted to determine worker attitudes and sentiments.
Bank Wiring Observation Room experiment was conducted to determine and analyse social
organization at work.
Each of the four phases of experiment are discussed below in detail.
Illumination Experiments- Illumination experiments were undertaken to find out how
varying levels of illumination (amount of light at the workplace, a physical factor) affected
productivity. It was hypothesized that increase in illumination will increase productivity.
However, it was discovered that illumination did not have any effect on productivity but
something else was interfering with productivity. It was concluded that human factor was
important in determining productivity but which aspect was affecting, it was not sure.
Therefore, another phase of experiments was undertaken.
Relay Assembly Test Room Experiments- Relay assembly test room experiments were
designed to determine the effect of changes in various job conditions on group productivity
as the illumination experiments could not establish relationship between intensity of
illumination and production. These experiments led to redirection in thinking and the results
implied that productivity increased not because of positive changes in physical factors but
because of change in workers’ attitudes towards work and their work group. They developed
a feeling of stability and a sense of belongings. Since there was more freedom of work, they
developed a sense of responsibility and self-discipline. The relationship between supervisor
and workers became close and friendly.
Mass Interviewing Programme- During Hawthorne studies, about 20,000 interviews were
conducted to determine employees’ attitudes towards company, supervision, insurance plans,
promotion, and wages. During interviews, it was discovered that workers’ behaviour was
being influenced by group behavior. However, this conclusion was not very satisfactory and,
therefore, researches decided to conduct another series of experiments.
Bank Wiring Observation Room Experiment- These experiments were conducted to find
out the impact of small groups on the individuals. In this experiment, a group of 14 male
workers were formed into a small work group. The work involved attaching wire with
switches for certain equipment used in telephone exchanges. Hourly wage for each worker
was fixed based on average output of each worker. Bonus was also payable based on group
effort. It was expected that highly efficient workers would bring pressure on less efficient
workers to increase output and take advantage of group incentive plan. However, the strategy
did not work and workers established their own standard of output and this was enforced
vigorously by various methods of social pressure. The workers cited various reasons for this
behavior viz. fear of unemployment, fear of increase in output, desire to protect slow workers
etc.
The Hawthorne experiments clearly showed that a man at work is motivated by more than
the satisfaction of economic needs. Management should recognize that people are essentially
social beings and not merely economic beings. As a social being, they are members of a group
and the management should try to understand group attitudes and group psychology.
Principles of Human Relations School
Following were the major insights into human behavior at work gained by the Hawthorne
research group:
Social Unit- A factory is not only a techno-economic unit, but also a social unit. Men are
social beings. This social characteristic at work plays an important role in motivating people.
Group Influence- Workers in a group develop a common psychological bond uniting them
as a group in the form of informal organization. These groups influence their behavior.
Pressure of a group, rather than management demands, frequently has the strongest influence
on how productive workers would be.
Group Behavior- Management must understand that a typical group behavior can dominate
or even supersede individual propensities.
Motivation- Human and social motivation can play even a greater role than mere monitory
incentives in moving or motivating and managing employee group.
Supervision- The style of supervision affects worker’s attitude to work and his productivity.
A supervisor who is friendly with his workers and takes interest in their social problems can
get co-operation and better results from the subordinates.
Working Conditions- Productivity increases because of improved working conditions in the
organization.
Employee Morale- Mayo pointed out that workers were not simply cogs, in the machinery,
instead the employee morale (both individual and in groups) can have profound effects on
productivity.
Communication- Experiments have shown that the output increases when workers are
explained the logic behind various decisions and their participation in decision making brings
better results.
Balanced Approach- The problems of workers could not be solved by taking one factor i.e.
management could not achieve the results by emphasizing one aspect. All the things should
be discussed and decision be taken for improving the whole situation. A balanced approach
to the whole situation can show better results.
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