What is general mental ability? General mental ability (GMA) is a term used to describe the level at which an individual learns, understands instructions, i nstructions, and solves problems. Tests of general mental ability include scales that measure specic constructs such as verbal, mechanical, numerical, social, and spatial ability. ability. The overall score is considered the most important factor, eplaining more variation in individual performance than specic abilities.
Why is GMA relevant to business? General mental ability has been found to be the single best predictor of !ob performance across all organisations and positions" it accounts for approimately #$% of the variance in !ob performance. &tudies have found that people with higher general mental ability abili ty ac'uire more !ob nowledge and ac'uire it faster f aster.. igher levels of !ob nowledge lead to better performance. *b!ective assessments of general mental ability can signicantly improve hiring decisions, sta+ retention and productivity.
How does GMA relate to work experience? Many hiring decisions are strongly inuenced by the etent of prior ! ob eperience. -n fact while !ob eperience does inuence !ob performance, its relationship is weaer than the relationship with general mental ability, and the inuence of eperience declines over time, unlie the relationship between !ob performance and general mental ability. ability.
RO o! GMA testing GMA tests are amaingly cost e+ective. /ou /ou can dramatically improve the 'uality of your hiring decisions, avoid painful mistaes, all for a fraction of the cost of the new hire0s rst day at wor.
Assessing likely !uture "ob per!ormance per!ormance 1rom a practical point of view, vie w, the most important property of a personnel pe rsonnel assessment method is predictive validity" that is, the ability to predict !ob performance and !ob2related learning. -n comparison to alternative personnel measures, general mental ability tests have the highest predictive validity, and the lowest application cost. 3or 3or samples and simulations are slightly more valid, but are epensive to set up. &tructured selection interviews often contain !ob nowledge components, and are therefore less suitable for ineperienced or entry2level candidates. Assessment centre approaches are both much more epensive and also have less validity. validity. The personality factor of 4onscientiousness which describes motivation, personal organisation and focus, adds additional predictive power to tests of General Mental Ability. Ability. 5ltimately, the combination of a test of general mental ability, a personality test
and a structured interview is the most cost e+ective approach.
#ests o! General Mental Ability Tests of general mental ability measure a wide variety of constructs, as well as overall cognitive ability.
$onger tests typically measure the following dimensions6 •
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General nowledge6 The degree to which an individual has accumulated nowledge about diverse topics. 7ong2term memory. &ocial -ntelligence 6 -n both verbal and visual forms. Ability to evaluate social behavior and liely outcomes, to apply standards for moral and ethical !udgment. Arithmetic6 8umerical reasoning and problem solving abilities. 9erbal concepts6 Ability to categorise, conceptualise lienesses and di+erences, and to mae subtle comparisons. 9ocabulary6 :tent of verbal concepts learned. -ndicates communication sills, openness to information, ability to e+ectively use information. 4oding 6 Adaptability and speed of learning ;etail orientation6 The ability to pic up on important details, using perceptual and analytical sills. &patial rotation6 Ability to visualise ob!ects in di+erent dimensions and perspectives. &patial reasoning6 Ability to see both the disparate parts of an ob!ect and how they t together.
%horter tests Although, there are a wide variety of shorter instruments available for measuring general mental ability, the most e+ective, and widely used today, is the <# minute 3onderlic =ersonnel Test. -t incorporates a wide variety of problem types including conceptual comparisons, word and sentence meanings, deductive logic, se'uential reasoning, detail matching, analysis of geometric gures, and story problems re'uiring mathematical solutions. Test taers must enter their answers so that, in contrast to the usual multichoice format, there is a richness of information available for evaluation. The applicant0s test score can be compared against minimum recommended scores for various occupational groups. The 3onderlic =ersonnel Test provides 'uantitative insight into how easily individuals can be trained, how well they can ad!ust and solve problems on the !ob, and how satised they are liely to be with the demands of the !ob. igher scoring individuals will gain more from formalised training, and are more liely to e+ectively learn from on the !ob eperience. -n contrast, lower scoring individuals will re'uire more detailed and eplicit instruction, hands on practice, more time
and repetition, and close supervision.
#ests o! &ritical #hinking 1or managers the ability to critically evaluate business propositions and the conclusions drawn by sta+ is vital. The 3atson Glaser is the most widely used test of critical thining. -t assesses ability on di+erent types of critical thining. Given a set of information and a conclusion, to assess" •
what hidden assumptions have been made
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what inference can be taen 2 the relative truth or falsity of the conclusion
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whether the conclusion logically follows from the facts
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the relative strength or weaness of an argument and conclusion
&cores can be compared with similar occupational groups and manageme nt levels. ATT-T5;: -t is dened as the way a person responds to his or her environment either positively or negatively An attitude could be generally dened as the way a person responds to his or her environment, either positively or negatively. The denition of attitude is nonetheless a source of some discussion and debate. 3hen dening attitude, it is helpful to bear two useful conicts in mind. The rst is the eistence of ambivalence or di+erences of attitude towards a given person, ob!ect, situation etc. from the same person, sometimes at the same time. This ambivalence indicates that attitude is inherently more comple than a simple sliding scale of positive and negative, and dening these aes in di+erent ways is integral to identifying the essence of attitude. The second conict to eep in mind is the degree of implicit versus eplicit attitude, which is to say subconscious versus conscious. -ndeed, people are often completely ignorant of their implicit attitudes, complicating the ability to study and interpret them accurately. The taeaway here is to be specic when discussing attitudes, and dene terms carefully. 1or a manager to say that somebody has attitude, or that somebody is being negative or positive about something, is vague and nonconstructive. -nstead, a manager0s !ob is to observe and to try to pinpoint the possible causes and e+ects of a person0s perspective on something. Attitudes in the 3orplace :veryone has attitudes about many things" these are not necessarily a bad thing. *ne aspect of employees0 attitude is the impact it can have on the people around them. =eople with a positive attitude can lift the spirits of their co2 worers, while a person with a negative attitude can lower their spirits. &ometimes, though, this principle wors in reverse, and attitudes are often more comple than positive or negative. Attitudes may a+ect both the e mployee0s wor performance and the performances of co2worers .
Whi l eal l t e amsar egr o up so fi n di v i du al s ,n otal l g r o up sar et ea ms .T eam me mb er swor kt o ge t h er t owar daco mmongoal a n ds h a r eresponsibility f ort h et eam' ss uc c es s .Agr ou pi sc ompr i s edo ft wo ormor ei ndi v i dual st hats har ec ommoni nt er es t sorc har ac t er i s t i c s,andi t smember si dent i f ywi t heac h ot herduet os i mi l art r ai t s .Gr ou psc anr angegr eat l yi ns i z eands c ope.Fore x ampl e,member soft h e mi l l e nni al gener at i onar eagr ou p,buts oi sas mal l bookc l ubf or medbynei ghbor swhoe nj o yr eadi n g. Gr o up sd i ff erf r o mt e amsi ns e v er a lwa y s : Tas orientation6 Teams re'uire coordination of tass and activities to achieve a shared aim. Groups do not need to focus on specic outcomes or a common purpose.
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;egree of interdependence6 Team members are interdependent since they bring to bear a set of resources to produce a common outcome. -ndividuals in a group can be entirely disconnected from one another and not rely on fellow members at all. =urpose6 Teams are formed for a particular reason and can be short2 or long2lived. Groups can eist as a matter of fact" for eample, a group can be comprised of people of the same race or ethnic bacground.
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;egree of formal structure6 Team members0 individual roles and duties are specied and their ways of woring together are dened. Groups are generally much more informal" roles do not need to be assigned and norms of behavior do not need to develop. 1amiliarity among members6 Team members are aware of the set of people they collaborate with, since they interact to complete tass and activities. Members of a group may have personal relationships or they may have little nowledge of each other and no interactions whatsoever.
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es sManagement So ur c e :Bo un dl e s s .“ Di ff e r e nc e sBe t we enGr o up san dT e ams . ”Boundl .Boundl es s ,
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Challenges and Opportunities of Organizational Behavior •
The following are some of the significant problems: Improving People Skills
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Improving Quality and Productivity
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Managing Workforce iversity
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!esponding to "lobali#ation
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$mpowering People
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%oping with Temporariness
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Stimulating Innovation and %hange
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$mergence of the e&organi#ation
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Improving $thical 'ehavior
Improving People Skills: Technological changes( structural changes( environmental changes are accelerated at a faster rate in business field) *nless employees and e+ecutives are e,uipped to possess the re,uired skills to adapt those changes( the achievement of the targeted goals cannot be achieved in time) There two different categories of skills - managerial skills and technical skills) Some of the managerial skills include listening skills( motivating skills( planning and organi#ing skills( leading skills( problem solving skill( decision making skills etc) These skills can be enhanced by organi#ing a series of training and development programmes( career development programmes( induction and sociali#ation etc) Implications for Managers: esigning an effective performance appraisal system with built&in training facilities will help upgrade the skills of the employees to cope up the demands of the e+ternal environment) The lower level cadre in management is re,uired to possess more of technical skills) .s they move towards upward direction( their roles will be remarkably changed and e+pected to have more of human relations and conceptual skills)
Improving Quality and Productivity: Quality is the e+tent to which the customers or users believe the product or service surpasses their needs and e+pectations) /or e+ample( a customer who purchases an automobile has certain e+pectation( one of which is that the automobile engine will start when it is turned on) If the engine fails to start( the customer0s e+pectations will not have been met and the customer will perceive the ,uality of the car as poor) eming defined ,uality as a predictable degree of uniformity and dependability( at low cost and suited to the market) 1uran defined it as fitness for use) The key dimensions of ,uality as follows)
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Performance: Primary operating characteristics of a product such as signal coverage( audio ,uality( display ,uality etc) Features: Secondary characteristics( added features( such as calculators( and alarm clock features in hand phone Conformance: Meeting specifications or industry standards( workmanship of the degree to which a product0s design or operating characteristics match preestablished standards Reliability: The probability of a product0s failing within t a specified period of time Durability: It is a measure of product0s life having both economic and technical dimension
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Services: !esolution of problem and complaints( ease of repair
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Response: 2uman to human interface( such as the courtesy of the dealer
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est!etics: Sensory characteristics such e+terior finish
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Reputations: Past performance and other intangibles( such as being ranked first)
More and more managers are confronting to meet the challenges to fulfill the specific re,uirements of customers) In order to improve ,uality and productivity( they are implementing programs like total ,uality management and reengineering programs that re,uire e+tensive employee involvement) "otal Quality Management #"QM$: It is a philosophy of management that is driven by the constant attainment of customer satisfaction through the continuous improvement of all organi#ational process) The component of TQM are 3a4 intense focus of the customer 3b4 concern for continual improvement 3c4 improvement in the ,uality of everything the organi#ation does 3d4 accurate measurement and 3e4 empowerment of employees) Reengineering: This refers to discrete initiatives that are intended to achieve radically redesigned and improved work process in a bounded time frame) 'usiness Process !eengineering employees a structural methodology that reduces work process to their essential composite activist and provides cost performance matrices to facilitate a business case for dramatic improvements) 'oth functional and cross&functional processes are evaluated through workflow analysis and activity based costing) In many cases( the application of new technology and industries best practices will enable ,uantum improvement in an organi#ation0s cost and performance) Implications for Managers: Today0s managers understand that any efforts to improve ,uality and productivity must influence their employees) These employees will not only be a ma5or force in carrying out changes( but increasingly will participate actively in planning those changes) Managers will put ma+imum effort in meeting the customer0s re,uirements by involving everyone from all the levels and across all functions) !egular communications 3both formally and informally4 with all the staff at all levels is must) Two way communications at all levels must be promoted) Identifying training needs and relating them with individual capabilities and re,uirements is must) Top management0s participation and commitment and a culture of continuous improvement must be established)
Managing %orkforce Diversity: This refers to employing different categories of employees who are heterogeneous in terms of gender( race( ethnicity( relation( community( physically disadvantaged( homose+uals( elderly people etc) The primary reason to employ heterogeneous category of employees is to tap the talents and potentialities( harnessing the innovativeness( obtaining synergetic effect among the divorce workforce) In general( employees wanted to retain their individual and cultural identity( values and life styles even though they are working in the same organi#ation with common rules and regulations) The ma5or challenge for organi#ations is to become more accommodating to diverse groups of people by addressing their different life styles( family needs and work styles) Implications for Managers: Managers have to shift their philosophy from treating everyone alike to recogni#ing individual differences and responding to those differences in ways that will ensure employee retention and greater productivity while( at the same time not discriminating) If work force diversity is managed more effectively( the management is likely to ac,uire more benefits such as creativity and innovation as well as improving decision making skills by providing different perspectives on problems) If diversity is not managed properly and showed biases to favor only a few categories of employees( there is potential for higher turnover( more difficulty in communicating and more interpersonal conflicts)
Responding to &lobali'ation: Today0s business is mostly market driven6 wherever the demands e+ist irrespective of distance( locations( climatic conditions( the business operations are e+panded to gain their market share and to remain in the top rank etc) 'usiness operations are no longer restricted to a particular locality or region) %ompany0s products or services are spreading across the nations using mass communication( internet( faster transportation etc) .n .ustralian wine producer now sells more wine through the Internet than through outlets across the country) More than 789 of okia hand phones are being sold outside of their home country /inland) 1apanese cars are being sold in different parts of globe) Sri ;ankan tea is e+ported to many cities across the globe) $+ecutives of Multinational %orporation are very mobile and move from one subsidiary to another more fre,uently) Implications for Managers: "lobali#ation affects a managerial skills in at least two ways: i4 an $+patriate manager have to manage a workforce that is likely to have very different needs( aspirations and attitudes from the ones that they are used to manage in their home countries) ii4 *nderstanding the culture of local people and how it has shaped them and accordingly learn to adapt ones management style to these differences is very critical for the success of business operations)
(mpo)ering People The main issue is delegating more power and responsibility to the lower level cadre of employees and assigning more freedom to make choices about their schedules( operations( procedures and the method of solving their work&related problems) $ncouraging the employees to participate in work related decision will si#ably enhance their commitment at work) $mpowerment is defined as putting employees in charge of what they do by eliciting some sort of ownership in them) Managers are doing considerably further by allowing employees full control of their work) .n increasing number of organi#ations are using self& managed teams( where workers operate largely without boss) ue to the implementation of empowerment concepts across all the levels( the relationship between managers and the employees is reshaped) Managers will act as coaches( advisors( sponsors( facilitators and help their subordinates to do their task with minimal guidance) Implications for Manager: The e+ecutive must learn to delegate their tasks to the subordinates and make them more responsible in their work) .nd in so doing( managers have to learn how to give up control and employees have to learn how to take responsibility for their work and make appropriate decision) If all the employees are empowered( it drastically changes the type of leadership styles( power relationships( the way work is designed and the way organi#ations are structured)
Coping )it! *"emporariness+ In recent times( the Product life cycles are slimming( the methods of operations are improving( and fashions are changing very fast) In those days( the managers needed to introduce ma5or change programs once or twice a decade) Today( change is an ongoing activity for most managers) The concept of continuous improvement implies constant change) In yester years( there used to be a long period of stability and occasionally interrupted by short period of change( but at present the change process is an ongoing activity due to competitiveness in developing new products and services with better features) $veryone in the organi#ation faces today is one of permanent temporariness) The actual 5obs that workers
perform are in a permanent state of flu+) So( workers need to continually update their knowledge and skills to perform new 5ob re,uirements) Implications for Manager: Managers and employees must learn to cope with temporariness) They have to learn to live with fle+ibility( spontaneity( and unpredictability) The knowledge of
Stimulating Innovation and C!ange Today0s successful organi#ations must foster innovation and be proficient in the art of change6 otherwise they will become candidates for e+tinction in due course of time and vanished from their field of business) =ictory will go to those organi#ations that maintain fle+ibility( continually improve their ,uality( and beat the competition to the market place with a constant stream of innovative products and services) /or e+ample( %ompa, succeeded by creating more powerful personal computers for the same or less money than I'M or .pple( and by putting their products to market ,uicker than the bigger competitors) .ma#on)com is putting a lot of independent bookstores out of business as it proves you can successfully sell books from an Internet website) Implications for Managers: Some of the basic functions of business are being displaced due to the advent of a new systems and procedures) /or e+ample - books are being sold only through internet) Internet selling an organi#ation0s employees can be the impetus for innovation and change6 otherwise they can be a ma5or hindrance) The challenge for managers is to stimulate employee creativity and tolerance for change)
(mergence of (,-rgani'ation (, Commerce: It refers to the business operations involving electronic mode of transactions) It encompasses presenting products on websites and filling order) The vast ma5ority of articles and media attention given to using the Internet in business are directed at on&line shopping) In this process( the marketing and selling of goods and services are being carried out over the Internet) In e&commerce( the following activities are being taken place ,uite often & the tremendous numbers of people who are shopping on the Internet( business houses are setting up websites where they can sell goods( conducting the following transactions such as getting paid and fulfilling orders) It is a dramatic change in the way a company relates to its customers) .t present e&commerce is e+ploding) "lobally( e&commerce spending was increasing at a tremendous rate from *S> ??? billion in ?777 to *S> ?)@ trillion by ABB@) (,business: It refers to the full breadth of activities included in a successful Internet based enterprise) .s such( e&commerce is a subset of e&business) $&business includes developing strategies for running Internet&based companies( creating integrated supply chains( collaborating with partners to electronically coordinate design and production( identifying a different kind of leader to run a Cvirtual0 business( finding skilled people to build and operate intranets and websites( and running the back room or the administrative side) $&business includes the creation of new markets and customers( but it0s also concerned with the optimum ways to combine %omputers( the Web and .pplication Software) . si#able number of multinational corporations are selling goods and services via the Internet) &ro)t! rate of e,business: The application of Internet operations are initially covers a small part of the business) .t this point( their e&commerce operations are secondary to their traditional business) .n increasingly popular application of e&business is merely using the
Internet to better manage an ongoing business) ;ater( there are millions of firms that are now selling anything over the Internet( but they are using e&business applications to improve communications with internal and e+ternal stakeholders and to better perform traditional business functions) Some companies are putting ma+imum effort in improving its internal efficiency and providing support to its wide&reaching dealer network and to on&line sellers by crating a shared and integrated network) The companies wanted to make creasing (,-rgani'ations: This embraces e&commerce and e&business) State and central governments( municipal corporations are using the Internet for e+tending all the public utility services more efficiently through internet) Implications for Managers : The employees must ac,uire skills( knowledge( attitudes in learning new technology( overcoming any resistance
Improving (t!ical be!avior: The comple+ity in business operations is forcing the workforce to face ethical dilemmas( where they are re,uired to define right and wrong conduct in order to complete their assigned activities) /or e+ample( Should the employees of chemical company blow the whistle if they uncover the discharging its untreated effluents into the river are polluting its water resourcesD o managers give an inflated performance evaluation to an employee they like( knowing that such an evaluation could save that employee0s 5obD The ground rules governing the constituents of good ethical behavior has not been clearly defined) ifferentiating right things from wrong behavior has become more blurred) /ollowing unethical practices have become a common practice such as successful e+ecutives who use insider information for personal financial gain( employees in competitor business participating in massive cover&ups of defective products etc) Implications for Managers: Managers must evolve code of ethics to guide employees through ethical dilemmas)
