Psychology: The World of Organization: Subsystem of an Organization (For CBSE, ICSE, IAS, NET, NRA 2022)

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Organization as a System

An organization is a social unit which is created with a specific purpose.

Organization as a System
  • Inputs: Each system takes certain kinds of inputs from its environment.
  • Outputs: Outputs may be both intended as well as unintended.
  • Environment: An organization is called an open system because it is influenced by and also influences the environment.

Subsystem of an Organization

The key sub-system are goal subsystem, technical subsystem, managerial subsystem, structural subsystem and psychological subsystem.

Organizational Climate

Climate is the atmosphere of an organization, a relatively enduring quality of its internal environment, which is experienced by the members and influences their performance. An organization is likely to be more effective if there is two – way communication; employees are cooperative and have a positive view of the organization. Such employees have higher job satisfaction and commitment. Their productivity will also be higher. A positive organizational climate results in making employees more satisfied and productive.

Determinants of Climate

Four of determinants of climate are organizational structure, technology, external environment and management policies and practices.

Interpersonal Relationship at Work

  • Superior- subordinate relationship: Every employee has to build a relationship with the boss to seek instructions and guidance. It is the boss who allows (or disallows) the subordinate to participate in decision making, gives assignments, evaluates performance, determines pay increments and decides who has to be promoted.
  • Relationship with co-worker and peer group: Relationship with peer group often develops as a result of common taste, likes and dislikes.
  • Organizational socialization: The process of organizational socialization refers to the process by which an individual employee acquires the knowledge and skills necessary for assuming a place within the organization.
  • Communication: The effectiveness of all interpersonal relations lies in the quality of communication. It is through communication that we are able to exchange thoughts, feelings, emotions and experiences to others.

Productivity and Excellence at Work

When organizations meet the expectations of the people everyone benefits i.e.. owners, employees, customers and local communities in which they operate. Then they are considered effective. However, when they exceed the minimum standards of effectiveness, they may be considered to have achieved excellence. Over time excellence brings reputation – that is when an organization is regarded and recognized for superior performance. To achieve excellence an organization must be productive and be able to transform inputs into outputs at minimum cost. Individual behavior in organizations is jointly determined by two factors – the characteristics of the perceived environment and the characteristics of the individual.

Factors Influencing Productivity and Excellence

The important factors which influence an individual՚s performance are

  • Abilities, aptitude and interests
  • Role clarity
  • Performance environment

Strategies for Developing Productivity at Work

Four principal strategies exist for developing and enhancing productivity and excellence at work:

  • employee selection and placement.
  • training and development
  • task design
  • performance appraisal and rewards.

Developed by: