I O PSY Lecture Notes PDF

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INDUSTRIAL/ORGANIZATIONAL PSYCHOLOGY CHAPTER 1: INTRODUCTION TO I/O PSYCHOLOGY Industrial/Organizational Psychology - a branch of psychology that applies the principles of psychology to the workplace - goal is to increase the productivity and well-being of employees. Two Approaches in I/O Psychology 1. 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. 2. Organizational Approach – creates an organizational structure and culture that will motivate employees to perform well, give them the necessary information to do their jobs, and provide working conditions that are safe and result in an enjoyable and satisfying work/life environment. Major Fields of Industrial/Organizational Psychology 1. Personnel Psychology - field of study that concentrates on the selection and evaluation of employees. - study and practice in such areas as analyzing jobs, recruiting applicants, selecting employees, determining salary levels, training employees, and evaluating employee performance - choose existing tests or create new ones that can be used to select and promote employees which are then constantly evaluated to ensure that they are both fair and valid - analyze jobs to obtain a complete picture of what each employee does, often assigning monetary values to each position - determines complete job descriptions and constructs performance-appraisal instruments to evaluate employee performance - examine various methods that can be used to train and develop employees - 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 2. Organizational Psychology - field of study that investigates the behavior of employees within the context of an organization.

- concerned with the issues of leadership, job satisfaction, employee motivation, organizational communication, conflict management, organizational change, and group processes within an organization - often conduct surveys of employee attitudes to get ideas about what employees believe are an organization’s strengths and weaknesses - serves the role of a consultant, thus makes recommendations on ways problem areas can be improved (ex. 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)

1918, World War I provides I/O psychologists with the first opportunity for large-scale employee testing and selection. (Army Alpha, for literate & Army Beta, for those who can’t read)

3. Human Factors/Ergonomics - field of study concentrating on the interaction between humans and machines. - concentrate on workplace design, human machine interaction, ergonomics, and physical fatigue and stress - frequently work with engineers (such as Industrial Engineers) and other technical professionals to make the workplace safer and more efficient - includes activities such as designing the optimal way to draw a map, designing the most comfortable chair, and investigating the optimal work schedule

Thomas A. Edison created a 150-item knowledge test that he administered to over 900 applicants. Only 5% of the applicants passed.

John Watson, who is better known as a pioneer in behaviorism, served as a major in the U.S. Army in World War I and developed perceptual and motor tests for potential pilots. Henry Gantt, were responsible for increasing the efficiency with which cargo ships were built, repaired, and loaded

Frank Gilbreth and Lillian Moller Gilbreth, one of the pioneer scientists to improve productivity and reduce fatigue by studying the motions used by workers. 1921, First Ph.D. in I/O psychology awarded to Bruce Moore and Merrill Ream at Carnegie Tech 1932, First I/O text written by Morris Viteles

Ψ There are different areas/settings as to which you can apply I/O Psychology that requires Human Resource Management (HRM) such as in educational setting, organizational/business setting, clinical setting, and etc… Brief History of I/O Psychology In 1903, Walter Dill Scott wrote “The Theory of Advertising”, in which psychology was first applied to business. In 1911, he published Increasing Human Efficiency in Business. 1913, Hugo Munsterberg publishes Psychology and Industrial Efficiency (German version published in 1910). The term “industrial psychology” was seldom used prior to World War I. Instead, the common terms for the field were “economic psychology,” “business psychology,” and “employment psychology” (Koppes & Pickren, 2007). 1917, Journal of Applied Psychology first published

1933, Hawthorne studies were published, conducted at the Hawthorne plant of the Western Electric Company in the Chicago area, demonstrated that the interpersonal interactions between managers and employees played a tremendous role in employee behavior. It was initially designed to investigate such issues as the effects of lighting levels, work schedules, wages, temperature, and rest breaks on employee performance. Employees changed their behavior and became more productive because they were being studied and received attention from their managers (Hawthorne effect.) 1937, American Association for Applied Psychology established 1945, Society for Industrial and Business Psychology established as Division 14 of APA with 130 members 1951, Marion Bills elected as first woman president of Division 14 1960, Division 14 renamed as Society for Industrial Psychology, membership exceeds 700 1963, Equal Pay Act passed

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1964, Civil Rights Act passed. First issue of The IndustrialOrganizational Psychologist (TIP) published 1970, Division 14 membership exceeds 1,100 1971, B.F. Skinner publishes Beyond Freedom and Dignity 1980, Division 14 membership exceeds 1,800 1982, Division 14 renamed Society for Industrial and Organizational Psychology (SIOP) 1986, Society for Industrial and Organizational Psychology (SIOP) holds first annual national conference separate from APA meeting 1989, Supreme Court sets conservative trend and becomes more “employer friendly” 1990, Americans with Disabilities Act passed. SIOP membership exceeds 2,500 1991, Civil Rights Act of 1991 passed to overcome 1989 conservative Supreme Court decisions 1997, SIOP celebrates golden anniversary at its annual conference in St. Louis 2000, SIOP membership exceeds 3,600 2005, Office of Federal Contract Compliance Programs (OFCCP) and Equal Employment Opportunity Commission (EEOC) become more aggressive in fighting systemic discrimination 2008, The journal Industrial and Organizational Psychology: Perspectives on Science and Practice begins publication as an official journal of SIOP 2009, Lilly Ledbetter Fair Pay Act and Americans with Disabilities Act Amendment Act (ADAAA) passed 2010, SIOP membership exceeds 8,000; SIOP members narrowly vote to keep the name Society for Industrial Organizational Psychology rather than change the name to the Society for Organizational Psychology 2013, OFCCP issues new regulations affecting the hiring of military veterans and individuals with disabilities 2014, SIOP membership exceeds 8,300

CHAPTER 2: JOB ANALYSIS AND EVALUATION Job Analysis - the process of gathering and analyzing information about the work an employee performs, the conditions under which the work is performed, and the worker characteristics needed to perform the work under the identified conditions. - is the process of determining the work activities and requirements - job analysis and job descriptions serve as the basis for many HR activities, including employee selection, evaluation, training, and work design. - goal is to identify the tasks performed in a job, the conditions under which the tasks are performed, and the knowledge, skills, attitudes, other factors (KSAOs) needed to perform the tasks under the conditions identified Job Description - is the written result of the job analysis - should contain the following eight sections: job title, brief summary, work activities, tools and equipment used, work context, performance standards, compensation information, and personal requirements. Methods Used in Conducting a Job Analysis 1. Observation - the analyst observes and documents all the activities performed by current job holders while they work - useful for repetitive jobs and in conjunction with other methods of job analysis or as a way to verify information 2. Interview - analyst conducts structured interviews with job holders and supervisors using a series of job-related questions to identify the tasks and responsibilities of a job - a standardized interview form is used often to record information - both the employee and the employees supervisor must be interviewed to obtain complete details - group or panel interviews are used - a team of subject matter experts (SME) who have varying insights about a group of jobs can be assembled to provide job analysis information as well 3. Questionnaire - widely used method of gathering data about jobs - offer the major advantage of efficiency in effectiveness as a large number of jobs can be collected inexpensively in an over a relatively short period of time

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- using the same questionnaire for all position provides standard types of data across jobs - assumes that employees can accurately analyze and communicate information about their own job Steps in Conducting a Job Analysis Step 1: Identify Tasks Performed - identify the major job dimensions and the tasks performed for each dimension, the tools and equipment used to perform the tasks, and the conditions under which the tasks are performed. Gathering Existing Information. Interviewing Subject Matter Experts (people who are knowledgeable about the job and include job incumbents, supervisors, customers, and upper-level management) Observing Incumbents. (the job analyst observes incumbents performing their jobs in the work setting) Job Participation. Step 2: Write Task Statements - will be used in the task inventory and included in the job description. - a properly written task statement must contain an action (what is done) and an object (to which the action is done). Often, task statements will also include such components as where the task is done, how it is done, why it is done, and when it is done. Step 3: Rate Task Statements - conduct a task analysis — using a group of SMEs to rate each task statement on the frequency and the importance or criticality of the task being performed.  Task analysis – the process of identifying the tasks for which employees need to be trained. Step 4: Determine Essential KSAOs - identify the KSAOs needed to perform the tasks. Knowledge – is a body of information needed to perform a task. Skill – is the proficiency to perform a learned task. Ability – is a basic capacity for performing a wide range of different tasks, acquiring knowledge, or developing a skill. Other characteristics – include such personal factors as personality, willingness, interest, and motivation and such tangible factors as licenses, degrees, and years of experience. Step 5: Selecting Tests to Tap KSAOs - will be used to select new employees and include such methods as interviews, work samples, ability tests,

personality tests, reference checks, integrity tests, biodata, and assessment centers. Job Evaluation - the process of determining the monetary worth of a job - is typically done in two stages: determining internal pay equity and determining external pay equity. - concerns the worth of the job itself, not the worth of a person in the job. Four Methods of Job Evaluation 1. Ranking - a simple system that places jobs in order from highest to lowest by their value to the organization - is a quantitative method in which the entire job is considered rather than individual components - generally is more appropriate for a small organization that has relatively few jobs 2. Classification - uses written descriptions of job classes in which each job is put into a category that it best matches - major difficulty with this method is that subjective judgments are needed to develop class descriptions that then you place job descriptions in 3. Point Factor - most widely used job evaluation method - looks at compensable factors in a group of similar jobs and assigns weights or points to them - a compensable factor identifies a dimension that is part of every job that can be rated for each job - relatively simple to use and considers the components of the job rather than the total 4. Market Pricing - uses market pay data to identify the relative value of jobs based on what other employers pay for similar work - identifies relevant market pay data for jobs that are good matches with the employers jobs Volatility, Uncertainty, Complexity and Ambiguity (VUCA) - captures the experience of operating in complex environments made prevalent by the rise of globalization and information technology  Volatility - means liable to change rapidly and unpredictably - change is constant, violent, and uncontrollable - strategy needs to evolve from resisting change to working with it through agility and enabling adaptive capacity

 Uncertainty - the inability to know everything fully - future is unpredictable, making it hard to prepare for - comes from the large number of elements with nonlinear interactions and their capacity to adapt to local events as they co-evolution over time  Complexity - refers to many parts being interconnected and interdependent - with so much going on, things can often feel chaotic and confused - managing complexity means giving up traditional conceptions of strategy and leadership  Ambiguity - the quality of being open to more than one interpretation - results in the haziness of reality and the potential for misreading - lack clarity because it’s hard to know what the root cause of the problem is - arises due to lack of models to explain an observed phenomena caused by complex environments - understanding the context within which the event takes place resolves it requires systems thinking to see the interconnections, to gain different perspectives in order to build up the full context within which an event can be properly understood - steps in coping up with a VUCA environment: 1. Counter volatility with vision - create a compelling vision and values for your people that will give them a clear focus so that they can react quickly to change 2. Meet uncertainty with understanding - when you know the current trends, you’ll be able to anticipate threats and take advantage of new opportunities 3. React to complexity with clarity - be crystal clear when you communicate, and promote teamwork and collaboration thus leading to a clear direction and encouragement of solving complex problems together

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4. Fight ambiguity with agility - stay adaptable even during uncertain times by learning new skills, stimulating debate, and embracing creativity

CHAPTER 3: LEGAL ISSUES IN EMPLOYEE SELECTION Labor-Management Relations - labor relations, relationships between employee on one hand and management on the other - nowadays, the term is used to cover the relationships between management and labor unions Labor Relations as Personnel Management Function - the efficient use of the material resources as any organization depends on how well it is utilized by its personnel and manpower. - a code of ways of organization and treating individual at work so that they will each get the greatest possible realization of their intrinsic abilities. Labor Problem - is a difficulty caused by impairment of the harmonious relations between employees and management - the existence of such problem affects the morale of employees and in serious cases impairs the efficient operations of the company - sources of labor problems: irritation, complaints, grievances, and misunderstanding Satisfaction of Human Needs - basic physiological needs: hunger, rest and sleep, protection, reproduction - social needs: companionship, approval of others, assertion of oneself, self-approval Satisfaction of Personal Needs - wage or salary - company personnel policy - working conditions - job security and stability - opportunity for advancement and self-improvement - supervisors who are understanding, fair, and tactful in dealing with workers - sympathetic assistance Complaint - is a spoken or written dissatisfaction that disturbs the worker enough to cause a negative reaction to be brought to the attention of supervisor/management

- is a feeling of dissatisfaction, expressed or suppressed, valid or not, concerning a matter or situation relating to work Grievance - any dissatisfaction, complaint, irritation, or misunderstanding - it arises from his job or his relationship with his employer, any violation of the CBA or Labor Code that he thinks or feels he is wronged or treated unfairly Settling Disputes 1. Mediation - is a process of negotiation in which the disputing parties come together to discuss their differences under the supervision of a mediator - the mediator may be court-appointed or chosen jointly by the parties 2. Conciliation - is similar to mediation but is more commonly used by government agencies or tribunals - for example, industrial disputes involving employers and employees may often be referred to conciliation 3. Arbitration - is quite similar to a court hearing - the disputing parties are present, commonly accompanied by their lawyers, and the dispute is determined by an impartial arbitrator who may be court-appointed - the benefit of using arbitration is that it is cheaper and the rules of arbitration are not as rigid as the rules of court. Discrimination - is the behavior or actions, usually negative, towards an individual or group of people, especially on the basis of sex/race/social class, etc.

Prejudice – is an unjustified or incorrect attitude (usually negative) towards an individual based solely on the individual’s membership of a social group.

CHAPTER 4: EMPLOYEE SELECTION – RECRUITMENT AND INTERVIEWING Selection Process - can be defined as the process of selection and shortlisting of the right candidates with the necessary qualifications and skill set to fill the vacancies in an organization - the selection process varies from industry to industry, company to company and even among departments of the same company.

Differential Validity – occurs when there are significantly different criterion-related validity for different group on the same test. put more simply, differential validity means that the test is more valid for predicting the performance of one group than it is for predicting the performance of another. (ex. male vs. females)

Complete Process Cycle From Job Vacancy To Employee Evaluation

Importance of the Selection Process 1. Proper selection and placement of employees lead to growth and development of the company. The company can similarly, only be as good as the capabilities of its employees. 2. The hiring of talented and skilled employees results in the swift achievement of company goals. 3. Industrial accidents will drastically reduce in numbers when the right technical staff is employed for the right jobs. 4. When people get jobs they are good at, it creates a sense of satisfaction with them and thus their work efficiency and quality improves. 5. People who are satisfied with their jobs often tend to have high morale and motivation to perform better Steps in the Recruiting Process 1. Planning - is when a company settles on the number of employees they are looking to hire and the skill sets they require of these employees - compare their needs to the expected number of qualified candidates in the labor market.

Adverse Impact – is based on the 80% or 4/5ths rule Unfairness – it occurs when minorities and non-minorities score differently on the predictor test yet perform similarly on the criterion. (ex. MCAT)

3. Employee Selection - is the process by which an employer evaluates informatio...