INDUSTRIAL/ ORGANIZATION
PSYCHOLOGY
Psychology is the scientific study of behavior and mental processes.
I/O Psychology study of human behavior in work settings.
objectives:
§ to conduct research in effort to increase knowledge and
understanding of human work behavior.
§ to apply that knowledge to improve work behavior, work
environment, and the psychological condition of the workers.
Psychologists:
Walter Dill Scott – Theory of Advertising
– Scott Company, a personnel consulting firm in 1919.
Hugo Munsterberg – design of work and personnel selection for jobs.
§ how to find the best person for best possible work.
§ how to improve motivation, performance & efficiency.
Frederick Taylor – Time-and-Motion Studies
§ tasks are simplified into measurable part movements
and record time needed to perform movements.
– Scientific Management
§ scientific principles are used to increase work efficiency
and productivity.
Walter Bingham – Army Alpha and Army Beta for U.S. Army recruits.
§ Alpha for those who could read and write.
§ Beta for nonliterates.
Elton Mayo – Hawthorne Effect indicates that the presence of an
observer increases worker efficiency and productivity.
– Human Relations Movement recognize the importance of
social factors and “work morale” in work productivity.
James Cattell – Applied Psychology available to industry and business.
Kurt Lewin – group dynamics and organizational development.
JOB ANALYSIS
Systematic study of tasks, duties, and responsibilities, and the knowledge, skills, abilities and other characteristics (KSAOs) needed to perform a job
Personnel Products of Job Analysis Job Evaluation and Comparable Worth
1. Job Description – compensation or wages should be related to the KSAOs it requires.
– a detailed accounting of tasks, procedures, and responsibilities of § Compensable factors
worker, machines, tools, and equipment, and job output. – detailed criteria of job evaluation, basis of salary/ wages.
2. Job Specification – physical demands of a job, amount of training/ experience
– provides information about the human characteristics required to required, working conditions, amount of responsibility.
perform the job. § Comparable worth
– physical and personal traits, work experience, and education. – equal pay for equal work whatever gender, race, etc.
3. Job Evaluation § Exceptioning
– assessment of the relative value or worth of a job to an – job evaluation reveals that two jobs, equivalent duties and
organization to determine appropriate compensation or wages. responsibilities, receive very different rates of pay.
4. Performance Criteria
– the means of appraising worker success in performing a job.
Methods
– observation, participation, review of existing data, interviews, surveys,
job diaries/ daily record
Techniques
1. Job Element Method
– job analyst relies on “experts” to identify the job elements
(KSAOs) required for a given job.
2. Critical Incidents Technique (CIT)
– record the worker behaviors (KSAOs) that have led to
particularly successful or unsuccessful job performance.
3. Position Analysis Questionnaire (PAQ)
– structured questionnaire that analyze various jobs.
§ Informed Input – where and how the worker obtains the
information needed to perform the job.
§ Mental Processes – thinking, reasoning, and decision
making required to perform the job.
§ Work Output – tools needed and tasks the worker must
perform.
§ Relationships with other persons
§ Job context/ circumstances
4. Functional Job Analysis (FJA)
– helpful in creating job descriptions for a large number of
positions and gaining insight on how workers perform their jobs.
– uses three broad categories representing the job’s typical
interaction with data, people, and things.
§ Data – information, knowledge, and conceptions.
§ People – amount of contact with others that a job requires.
§ Things – tools, machines, equipment, tangible work
products.
By: CHELSEA GLYCE E. CERENO
 EMPLOYEE RECRUITMENT & SELECTION PERFORMANCE MANAGEMENT & EVALUATION
Process of attracting and selecting qualified candidates for job vacancies facilitating employees in performing tasks effectively to reach their targets and
determining level of performance

HUMAN RESOURCE PLANNING Performance Appraisals - measure performance according to standards

Factors in planning:
§ What are the organization’s goals and strategic objectives?
§ What are the staffing needs required to accomplish org. goals?
§ What are the current HR capacities and existing employee skills?
§ Which additional positions are needed to meet the staffing needs?
Staffing critical issues:
§ Nature of work and the workforce
§ Competition for the best workers
§ A good “fit” between workers and organizations
EMPLOYEE SELECTION § Provide feedback for performance improvement
- process of choosing people for employment from pool of applicants. § Basis for promotion, transfer, and termination
§ Basis for merit increase and reward allocation
Model for Recruiting and Hiring Provide data on training needs and effectiveness
§
§ Criteria - measures of success, performance criterion.
§ Provide data on career development and succession planning
§ Predictors - any pieces of information that measure job applicants
related to criterion. Performance Criteria
Decision Errors: - means of determining successful or unsuccessful performance.
False-positive - accepting applicants who would’ve been unsuccessful § Objective Performance Criteria
§

§ Workforce diversity § False-negative - rejecting applicants who would’ve been successful - measurement of easily quantifiable aspects of job performance
- units produced, amount of sales, time needed to process info.
Four interrelated processes:
Methods: § Subjective Performance Criteria
1. Talent Inventory – assessment of current KSAOs of current employees.
1. Employee Screening - judgments or ratings made by supervisor, co-worker, customer.
2. Workforce forecast – plan for future HR requirements.
– number of positions, skills require, etc. - evaluate the suitability of application to the job vacancy. - related concerns:
§ Criterion Contamination - elements that should not be included
3. Action plans – plan to guide recruitment, selection, training, and
2. Employment Interview
compensation of the future hires. § Criterion Deficiency - criterion falls short of measuring performance
- communication process that assess the competencies possessed § Criterion Usefulness - criterion is usable in appraising a job
4. Control and evaluation – system feedback to assess how well the HR
by an applicant in relation to job and organization.
system is working and how well the company met the HR plan.
§ Stress Interview - how applicant would respond in difficult situation. Sources - supervisor, self, co-worker, customer, 360-degree feedback
§ Behavioral Interview - applicants cite and describe how they
EMPLOYEE RECRUITMENT handled a specific experience in the past, using STAR approach. Methods of Rating Performance
– process of attracting potential worker to apply for jobs. § Comparative Methods - comparison of worker’s performance
3. Employment Testing
1. Rankings
Process: § Cognitive Ability Test – rank from best to worst on specific performance.
1. Review job description and specifications of vacant position. - Intelligence Test measure ability to think, analyze, reason, plan. 2. Paired Comparisons
2. Plan and launch a targeted sourcing strategy. - Aptitude Test measures ability to learn or develop proficiency. – simply pairing to judge who is better performer.
3. Create a list of qualified candidates. § Interest Test 3. Forced Distributions
4. Assess and select the best candidate. - measuring and relating interest to various occupational areas. – rank into categories (poor to excellent)
§ Personality Test Individual Methods - evaluating an employee by him/herself.
Methods: §
- standardized instrument designed to reveal aspects of an 1. Graphic rating scales
§ Internal Sourcing
individual’s character or psychological makeup. – likert scale system for performance evaluation.
– employee referrals and recommendations
§ Emotional Intelligence 2. Behaviorally anchored rating scales (BARS)
– job posting – measure occurrence of each desirable behavior indicator.
- ability to understand, recognize and manage own emotions.
– human resource information system 3. Behavioral observation scales
§ Strengthsfinder
– internship program – objective and detailed descriptions of performance from
- Donald O. Clifton and Tom Rath
§ External Sourcing exceptional level to below average level.
- discover and develop natural talents and signature strengths
– advertisement 4. Checklists
that can be utilized to make positive contribution to organization.
– online job search engine, job board/site 5. Narratives
§ Projective Test – open-ended, written accounts of performance or listing of
– company website and social network - personality test designed to let a person respond to ambiguous specific examples performance strengths and weaknesses.
– professional organizations stimuli, revealing hidden emotions and internal conflicts.
– employment agencies and search firms § Job Performance Test Rater Errors
– employee leasing and outsourcing - performing physical or mental tasks and produce work samples. § Leniency Error – giving all workers very positive appraisals.
§ Assessment Centers § Harshness Error – giving all workers very low/ negative appraisals.
- detailed evaluation of applicants using combined variety of § Primacy Error – overly affected by info presented earlier.
Employee Placement assessment techniques/ tests. § Recency Error – overly affected by information present recently.
- process of deciding to which job hired workers should be assigned. - trained raters review and score each candidate’s performance. § Halo Effect – one positive behavior lead to overall impression.
- Situation Exercise: used for management-level positions. § Horn Effect – one negative trait overshadow positive traits.

4. Reference Checking and Background Investigation

§ Similarity Error – being similar personally/ professionally.
- references, former employees, educational and training § Central Tendency Error – avoid extreme leads to rating in middle.
institutions, online searches, and third-party investigators.

By: CHELSEA GLYCE E. CERENO

 TRAINING & DEVELOPMENT
Organized learning activities that aim to equip people with competencies
needed to perform a current or future job effectively.
EMPLOYEE TRAINING MODEL
Analyze Training Needs
– process of identifying training needs and requirements.
§ Organizational Analysis
– development, operations, mission & vision, plans, and concerns of the org.
SOURCES OF DATA - company profile, company tour, organizational survey, interviews
§ Task Analysis
– KSAOs required to perform a specific job effectively.
SOURCES OF DATA - job description, manual, interview, observation, benchmarking
§ Person Analysis
– examines the current capabilities of the workers.
SOURCES OF DATA - employee profile, appraisal records, tests, survey, interview
§ Demographic Analysis
– determining specific training needs of various demographic groups such as
women and men, certain ethnic minorities, different age brackets.
Designing Training Objectives
– process of defining training objectives, course content & training methods.
§ Terminal Objective – specify how the org. will benefit from training
§ Behavioral Objective – specify the desired OJT actions to be performed
Developing and Testing Training Materials
– process of developing learning activities and course materials.
ON-SITE METHODS
§ Structured warm-up activities – ice breakers and energizers.
§ Training presentations – lecture, demonstration, audio-visual aids.
§ Group discussion – exchange of information, ideas, realizations.
§ Case study – problem situation to analyze and suggest solution.
§ Simulation – hands on exercises patterned after real job situation.
§ Role play – enactment of real life on-the-job scenario.
§ Active learning – indoor and outdoor group games.
§ On-the-Job Training – doing the actual job.
OFF-SITE METHODS
§ E-Learning – use of computers and networks to facilitate activities.
§ Computer based training – through self-paced programmed instruction.
§ Synchronous E-Learning – video conference, virtual classroom, chat
§ Asynchronous E-Learning – email and online discussion board.
Implementation of Training Program
– process of conducting planned training activities.
Evaluation of Training Program
– process of determining the effectiveness of training activities.
TYPES OF CRITERIA
§ Reaction criteria
– measures the impression of trainees such as program’s value,
amount of learning they received, and their enjoyment.
§ Learning criteria
– measures amount of learning that has taken place.
§ Behavioral criteria
– measures amount of newly learned skills displayed once the
trainee has returned to the job.
§ Results criteria
– measures outcomes that are important to the organization such as
increased trainee work output, dollar sales figures, quality of work.
MOTIVATION & REWARDS DESIGN
Motivation is the willingness to exert high levels of effort in achieving organizational goals.
Rewards deals with every type of compensation that employees receive in return for performing tasks.
MOTIVATION
Cognitive Theories
Need Theories
§ Equity Theory of Motivation - J. Stacy Adams
– Needs involve deficiencies that an individual is driven to satisfy.
– employees expect a fair return for what they contribute to their jobs.
§ Hierarchy of Needs - Abraham Maslow § Expectancy Theory - Viktor Broom
1. Physiological – basic survival needs of food, water, air, sleep, sex 1. Expectancy
2. Safety – needs for physical safety and psychological security – believing that effort will lead to performing job effectively.
3. Social – need for love, affection, and friendship. 2. Instrumentality
4. Esteem – need for recognition of accomplishments – believing that effective performance will lead to rewards
5. Self-actualization – reach highest potential and sense of
3. Valence – values the rewards or outcomes.
fulfillment.
§ Carrot Principle - Gostick and Elton
§ ERG Theory - Clayton Alderfer
– recognition from others are accelerators to engage people, retain
1. Existence – all materials and physiological desires
talent, and increase performance.
2. Relatedness – social and external esteem
3. Growth needs – internal esteem and self-actualization
COMPENSATION AND REWARDS
§ Achievement Motivation Theory - David McClelland
Goal
1. Need for Achievement – drive to excel and to succeed.
§ create a system of rewards that is equitable to employee & employer.
2. Need for Power – need to control and influence others.
§ Motivate and retain high performing employees
3. Need for Affiliation – to establish interpersonal relationships
§ Attract high potential and qualified job applicants
Behavior-Based Theories Importance:
§ Reinforcement Theory - B.F. Skinner § Reason why people seek employment
– behaviors are motivated by their consequences. § Provide necessities in life
1. Reinforcement – adding/ removing stimuli to increase behavior
§ Contributing factor to people’s effort
2. Punishment – adding/ removing stimuli to decrease behavior.
§ Indicate an employee’s worth to organization
§ Extrinsic vs Intrinsic Motivation - Deci & Ryan
1. Extrinsic motivation Types:
– driven by external rewards such as money, fame. 1. Direct Financial Compensation (SALARIES & WAGES)
2. Intrinsic motivation – composed of fixed and variable compensations
– driven by internal rewards such as satisfaction 2. Indirect Financial Compensation (BENEFITS)
3. Non-Financial Rewards
§ Goal-Setting Theory - Edwin Locke
– intention to work toward a goal is a major source of motivation – employee recognition program, training and education program, free
housing and meals, company shuttle services, health and wellness
Job Design Theories programs, work life balance programs.
§ Two Factor Theory - Frederick Herzberg
1. Hygiene Factors – Extrinsic motivation that cause dissatisfaction
Ex. salary, work conditions, job security, administration
2. Motivation Factors – Intrinsic motivation that cause satisfaction
Ex. achievement, recognition, advancement and growth
§ Job Characteristics Model - Hackman & Oldham
1. Skill variety – job demands range of skills to perform tasks.
2. Task identity – requires completion of entire job or function.
3. Task significance – job gives a substantial impact on other people
within the organization, such as co-workers or customers.
4. Autonomy – job gives the worker freedom and independence to
choose how to schedule and carry out necessary tasks
5. Feedback – job allows worker to receive direct and clear
information about effectiveness of performance
By: CHELSEA GLYCE E. CERENO

Group – two or more individuals, working together toward a goal.
§ Formal group – designated work group directed toward organizational goal.
§ Informal group – a group appears in response to need for social contact.
Sub classifications of groups:
§ Command group – individuals who report directly to a given manager.
§ Task group – people working together to complete a job task
§ Interest group – working together to attain a goal which each is concerned.
§ Friendship group – brought together because of common characteristics
Perspectives:
§ Social Identity Theory – why individuals consider self as members of groups.
§ In-group Favoritism – we see members of our in-group as better than others
Stages of Group Development
1. Forming stage – characterized by uncertainty
2. Storming stage – intragroup conflict
3. Norming stage – close relationships and cohesiveness
4. Performing stage – group is fully functional
5. Adjourning stage – wrapping up activities
Group Properties
1. Roles – expected behavior about functions of a position in a social unit.
§ Role Perception – view of how he/she is supposed to act.
§ Role Expectations – responsibilities and requirements of the role.
§ Role Differentiation – members learn and take on various define roles.
§ Role Ambiguity – sense of uncertainty over requirements of a role.
§ Role Conflict – individual is confronted by divergent role expectations.
Various Roles Individuals Play in Work Groups:
o Group Tasks Roles
§ Initiator-contributor – recommend new ideas or solutions to problem.
§ Information/ Opinion seeker – getting facts/ feelings about ideas.
§ Information/ Opinion giver – provide information/ own opinions & feelings.
§ Elaborator – clarify and expands points made by others.
§ Coordinator – integrates information from the group.
§ Orientor – guides the discussion.
§ Evaluator-critic – use standards to evaluate group’s accomplishments.
§ Energizer – stimulates the group to take action.
§ Procedural technician – handles routine tasks such as providing materials.
§ Recorder – keeps track of group’s activities and takes minutes or notes.
o Group Building and Maintenance Roles
§ Encourager – encourage other’s contributions.
§ Harmonizer – resolve conflict between members.
§ Compromiser – provide conflicting members with mutually agreeable solution.
§ Gatekeeper – regulates the flow of communication so all members have a say.
§ Standard setter – sets standards or deadlines for group actions.
§ Group observer – makes objective observations about group interaction.
§ Follower – accepts the ideas of others and goes along with group majority.
o Self-Centered Roles
§ Aggressor –promote own status within group by attacking others.
§ Blocker –block all group actions and refuses to go along with group.
§ Recognition seeker –play up own achievements to get group’s attention.
§ Self-confessor – uses group discussion to deal with personal issues.
§ Playboy – engages in humor & irrelevant acts to draw attention away from tasks.
§ Dominator – control or monopolize the group.
§ Help seeker – gain sympathy by expressing insecurity or inadequacy.
§ Special interest pleader – argues incessantly to further own desires.
TEAM DYNAMICS
Group processes in work organizations
2. Norms – standards that groups adopt to indicate appropriate behavior.
§ Performance norms - level of effort, of output, of appropriate tardiness.
§ Appearance norms - dress codes, unspoken rules on when to look busy.
§ Social Arrangement norms - whether to form friendship on & off the job.
§ Resource Allocation norms - assignment of jobs, distribution of resources.
3. Status – a socially defined position or rank given to groups or members
§ Status Characteristic Theory
- differences in status characteristics create status hierarchies within groups.
- three sources:
o Power a person wields over others.
o Ability to contribute to a group’s goals
o Personal characteristics
4. Basic Group Process
§ Conformity - adjustment of one’s behavior to align with norms.
o Reference groups - group where individuals belong or hope to belong.
o Deviant workplace behavior - antisocial behavior that violates norms.
§ Cohesiveness – attraction among members that hold groups together.
§ Efficacy – shared beliefs in their ability to produce a desired outcome.
§ Cooperation – mutual assistance in working toward a goal.
o Reciprocity rule – workers help others so others will help them too.
o Task Interdependence – performance depends on efforts of others.
o Social Loafing - less effort when working collectively than individually.
§ Competition – working against one another to achieve individual goals.
Conflict – competitiveness of workers that become exposed.
– the conflicting parties have incompatible goals.
Levels of Conflict
1. Internalconflict – one person is faced with two set of incompatible goals
2. Interindividual conflict –
the conflict between two people.
3. Intragroup conflict – between one person and other group members.
4. Intergroup conflict – two groups are in conflict of each other.
Sources of Conflict
1. Organizational structure – status differences, simple disagreements.
2. Scarcity of Important Resources – money, materials, tools, supplies.
3. Interdependence – members rely on each other to get jobs done.
4. We-they feeling – having a common enemy within own organization.
5. Interpersonal – certain individuals do not get along with each other.
Conflict Outcomes
1. Increase motivation and energy level of group members
2. Stimulate creativity and innovation
3. Improve the quality ofdecisions.
4. Group processes tend to be more satisfied than those with no influence.
5. Reduction of group cohesiveness
6. Hamper effective group performance when it retards communication
Managing Conflict
1. Dominating – win-lose strategy; one party wins, the other loses.
2. Accommodation – lose-win strategy; self-sacrifice to resolve the conflict.
3. Compromise – lose-lose strategy; each party must give up something.
4. Collaboration – win-win situation; parties cooperate for beneficial solution.
5. Avoidance – suppressing the conflict.
Group Decision-Making
Processes
1. Autocratic– group leader makes decisions alone.
2. Democratic – members discuss the decision and vote on course of action.
3. Consensus – all members have agreed on the chosen course of action.
Effectiveness
1. Offers increased knowledge & experience on which to base the decision
2. It tends to lead to increased member satisfaction and greater member
commitment to the course of action than individual decision making.
3. Increase in electronic decision-making meetings.
Techniques
§ Interacting groups – members interact face to face.
§ Brainstorming – idea-generation process that encourage all alternatives.
§ Nominal Group Technique – members meet face to face to pool judgments
§ Electronic Meeting – interact on computer for anonymity of comments
Group Decision Making Gone Awry
1. Groupthink
– syndrome characterized by tendency to reduce effectiveness of a
cohesive group’s ability to make high quality critical decision.
Eight Symptoms
1. Illusion of vulnerability – members see themselves as powerful & invincible.
2. Illusion of morality – members see themselves as good guys & others as bad.
3. Shared negative stereotypes – members belittle any opposing viewpoints.
4. Collective rationalizations – members explain away any negative information
5. Self-censorship – members suppress own doubts & criticisms on decisions
6. Illusion of unanimity – decision is consensus; silence indicates support.
7. Direct conformity pressure – opposing view or doubt is expressed.
8. Mindguards – play role of protecting or insulting group from opposing opinions
2. Group Polarization
– tendency for groups to make decisions that are more extreme than
those made by individuals.
Team – interdependent workers with complementary skills working toward a goal.
§ Work Group – interacts to share info and make decisions to help each other.
§ Team Group – group efforts result in greater performance > individual
Guidelines for Effective Functioning of Work Teams
1. The task is one that is appropriate for a work team.
2. The team is recognized by its own members and others in the organization.
3. The team has clear authority over the task.
4. The structure of the team, tasks, members, and the norms, need to promote
teamwork.
5. The organization must support the team through policies and systems designed to
support the work team’s needs.
6. Expert coaching and feedback are provided to the teams when it is needed and
when team members are ready to receive it.
Types of Teams
§ Problem Solving teams – 5-12 people discuss ways of improving quality, efficient
and work environment.
§ Self-Managed Work teams – 10-15 people take responsibilities of supervisors.
§ Cross-Functional trams – same hierarchical level but different work areas to
accomplish a task.
§ Virtual teams – use computer technology to tie together physically dispersed
members to achieve common goal.
By: CHELSEA GLYCE E. CERENO
 LEADERSHIP
The ability to influence and direct a group toward the attainment of goals.

Universalist Theories of Leadership

1. Great Man/Woman Theory
– great leaders are born, not made.
– qualities and abilities make certain great persons natural leaders.
2. Trait Theory
– consistent & enduring attributes that are associated with leader success
– intelligence, personality traits, and physical characteristics.

Behavioral Theories of Leadership

– examine the actual behavior of effective leaders to determine what kinds of
behavior led to success, rather than characteristics in the leader’s personality.
1. OhioState Leadership Studies
– accumulated a list of hundreds of leader behaviors.
– two substantial leadership behaviors:
§ Initiating Structure - leader activities that define & organize work situation
§ Consideration - behaviors that show genuine concern for subordinates
2. University
of Michigan Leadership Studies
– found that successful leaders tended to exhibit patterns of behavior.
§ Task/ Production-oriented – concentrated on performing the job.
§ Relationship-oriented – showing concern for employee’s well being

Contingency Theories of Leadership

– examine the interaction of characteristics of the leader and the situation.
1. Fiedler’s
Contingency Model
– effective leadership depends on a match between a leader’s behavioral
style and work situation’s control and influence to the leader.
§ Task-oriented – leader will attend less to the group.
§ Relationship-oriented – leader focus on the group at the expense of a task.
– Leadership styles:
§ Position power – leader’s control over hiring, firing, disciplining, promoting.
§ Task structure – task is made clear and have detailed job descriptions.
§ Leader-member relationship – camaraderie between leader & follower.

2. Path-Goal Theory
– leader’s job is to help work group attain the goals they desire.
§ Directive – provides instructions and suggestions for getting the job done.
§ Achievement-oriented – focus on work outcomes & setting challenging goals
§ Supportive – concentrate on interpersonal relations by showing concern.
§ Participative – encourages members in planning and decision making.

3. SituationalLeadership Model
– there is no single best style of leadership.
§ Leadership style – how leaders behave in influencing people’s performance.
BEHAVIOR:
o Directive Behavior – clearly telling what, how, where, when to act.
o Supportive Behavior – listen and encourage involvement in discussion.
STYLES:
o Directing – high in directive, low in supportive behavior
o Coaching – high D, high S
o Supporting – low D, high S
o Delegating – low D, low S

By: CHELSEA GLYCE E. CERENO