PSY201 StudyGuide

PSY201
ORGANIZATIONAL
PSYCHOLOGY
STUDY GUIDE (5CU)

Course Development Team
Head of Programme : Dr Emily Ortega
Course Developer(s) : Dr Ng Aik Kwang
Production : Educational Technology & Production Team
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Release V2.3
CONTENTS
COURSE GUIDE
1. Welcome ...........................................................................................................................1
2. Course Description and Aims .......................................................................................1
3. Learning Outcomes.........................................................................................................3
4. Learning Material ............................................................................................................3
5. Assessment Overview ....................................................................................................4
6. Course Schedule ..............................................................................................................5
7. Learning Mode ................................................................................................................5
STUDY UNIT 1
WHAT IS INDUSTRIAL/ORGANIZATIONAL PSYCHOLOGY
Learning Outcomes........................................................................................................ SU1-1
Overview ......................................................................................................................... SU1-1
Chapter 1 Definition, History and Research Methodology .................................... SU1-2
1.1 Introduction: Definitions and History ................................................................. SU1-2
Additional Non-Compulsory Readings .................................................................... SU1-5
Find out more ................................................................................................................ SU1-5
Local & International News ......................................................................................... SU1-6
1.2 Research Methods in I/O Psychology .................................................................. SU1-7
Additional Non-Compulsory Readings .................................................................. SU1-12
Find out more .............................................................................................................. SU1-12
Local & International News ....................................................................................... SU1-13

STUDY UNIT 2
HR & PERSONNEL ISSUES
Overview ......................................................................................................................... SU2-1
Chapter 1 From Job Analysis to Employee Recruitment ......................................... SU2-2
1.1 Job Analysis .............................................................................................................. SU2-2
Find out more ................................................................................................................ SU2-6
1.2 Employee Recruitment ........................................................................................... SU2-8
Find out more .............................................................................................................. SU2-11
Overview ....................................................................................................................... SU2-13
Chapter 2 Selecting Employees and Evaluating Their Performance .................... SU2-14
2.1 Assessing/Selecting Employees .......................................................................... SU2-14
Find out more .............................................................................................................. SU2-18
2.2 Evaluating Employee Performance ..................................................................... SU2-20
Find out more .............................................................................................................. SU2-25

STUDY UNIT 3
DEVELOPING EMPLOYEES AT WORK
Overview ......................................................................................................................... SU3-1
Chapter 1 Motivating and Leading Employees ......................................................... SU3-2
1.1 Motivation in the Organization ............................................................................. SU3-2
Find out more ................................................................................................................ SU3-7
1.2 Leadership in the Organization ............................................................................ SU3-9
Find out more .............................................................................................................. SU3-14
Overview ....................................................................................................................... SU3-16
Chapter 2 Shaping Employee Attitudes and Behaviours for the Better .............. SU3-17
2.1 Job Satisfaction and Positive Employee Attitudes/Behaviours ....................... SU3-17
Find out more .............................................................................................................. SU3-21
2.2 Worker Stress and Negative Employee Attitudes/Behaviours ....................... SU3-23
Find out more .............................................................................................................. SU3-27

STUDY UNIT 4
WORK GROUP & ORGANIZATIONAL ISSUES
Overview ......................................................................................................................... SU4-1
Chapter 1 Enhancing Work Groups in the Organization ........................................ SU4-2
1.1 Group Processes in Work Organizations ............................................................. SU4-2
Find out more ................................................................................................................ SU4-6
1.2 Organizational Structure, Culture and Development ....................................... SU4-8
Find out more .............................................................................................................. SU4-13

COURSE GUIDE
PSY201 COURSE GUIDE
1. Welcome
(Access video via iStudyGuide)
Welcome to the course PSY201 Organizational Psychology, a 5 credit unit (CU) course.
This Study Guide will be your personal learning resource to take you through the
course learning journey. The guide is divided into two main sections – the Course
Guide and Study Units. This study guide is not an independent academic textbook
but solely meant to guide through the course materials. It therefore does not contain
any in-text citations/reference list. The references can be found in the textbook and
readings.
The Course Guide describes the structure for the entire course and provides you
with an overview of the Study Units. It serves as a roadmap of the different learning
components within the course. This Course Guide contains important information
regarding the course learning outcomes, learning materials and resources,
assessment breakdown and additional course information.
2. Course Description and Aims

Industrial/organizational (I/O) psychology is the branch of psychology that deals
with the study of work behavior. The scientific goal of I/O psychology is to increase
our knowledge and understanding of work behavior, while the practical goal is to
use this knowledge to improve the performance and well-being of workers. A wide
range of topics is dealt with in this course. They include methodological issues (e.g.,
research approaches in I/O psychology); personnel issues (e.g., employee
recruitment, selection & assessment); worker issues (e.g., motivation, leadership, job
satisfaction, work stress); as well as work group & organizational issues (e.g., group
processes, organizational development). By the end of this course, students would
understand what I/O psychology is and how to conduct research on work behavior;
gain insight on a variety of factors that affect employees at work; analyze work-
related issues using a variety of theories & concepts in I/O psychology; as well as
apply what they’ve learnt in this course to deal with problems and challenges in the
workplace.
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PSY201 COURSE GUIDE
Course Structure
This course is a 5-credit unit course presented over 6 weeks.
There are 4 Study Units in this course. The following provides an overview of each
Study Unit.
Study Unit 1 – What is Industrial/Organizational Psychology
This unit looks at what industrial/organizational (I/O) psychology is and how to

conduct research in I/O psychology.
Study Unit 2 – HR & Personnel Issues
This unit looks at different personnel issues such as job analysis, employee
recruitment & selection, as well as employee evaluation.
Study Unit 3 – Developing Employees At Work
This unit looks at different worker issues such as motivation & leadership, job
satisfaction, worker stress as well as other positive & negative employee
attitudes/behaviours.
Study Unit 4 – Work Group & Organizational Issues
This unit looks at the key features and processes in the work group. In addition, it
also examines various aspects of the organization, such as organizational
structure/culture/development.
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PSY201 COURSE GUIDE
3. Learning Outcomes
Knowledge & Understanding (Theory Component)
 Discuss key theories/models/findings in organizational psychology.

 Compare different ways of conducting research in organizational psychology.
 Examine key trends/issues/ challenges faced by companies and I/O psychologists.
Key Skills (Practical Component)
 Illustrate different approaches to recruit/select/appraise employees.

 Explain how to motivate and lead employees to be productive and satisfied with
their work.
 Show different strategies for employees to cope with stress and engage in
positive work attitudes/behaviours (vs negative work attitudes/behaviours).
4. Learning Material
 Riggio, R. E. (2018). Introduction to Industrial/Organizational Psychology. (7th ed.).
New York: Taylor & Francis.
 Study Guide
o Additional non-compulsory readings: In the study guide, you will find
several readings at the end of each topic to enhance your learning. For
your convenience, we have included web-links to the library, where
possible, for these articles (use only Google Chrome as your browser).
Please note that these links were valid at the time of production of the
study guide. In case a link is not functional anymore at the time you
access it, please use the library databases to find the article.
o Local and International News: Use only Google Chrome as your browser,
as the final document would otherwise not open due to technical
requirements under the database provider’s control. Go to SIM Library
e-Resources: Database A to Z, click on this link
http://primo.sim.edu.sg/eresources/ Next, use the Login button to
login, and go to database Newslink. Then, use “advanced search” and
restrict your search by choosing The Straits Times and the publication
date when searching for the article.
o Links to websites and videos with practice examples: Note that these links
are solely provided to demonstrate examples of I/O psychology
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PSY201 COURSE GUIDE
practice. SUSS is not responsible for the contents nor endorses any
commercial offers that may be available on these websites.
5. Assessment Overview
The overall assessment weighting for this course is as follows:
Assessment Description Weight Allocation
Assignment 1 Pre-class Quiz (PCQ01) 5%
Assignment 2 Pre-class Quiz (PCQ02) 5%
Assignment 3 TMA 01 (includes tasks to be 20%

completed before submission
deadline)
Assignment 4 TMA 02 (includes tasks to be 20%

completed before submission
deadline)
Examination Exam questions 50%
TOTAL 100%
SUSS’s assessment strategy consists of two components, Overall Continuous

Assessment (OCAS) and Overall Examinable Component (OES). They make up the
overall course assessment score. Both components are equally weighted 50:50.
(a) OCAS: Assignments 1 and 2 (Pre-class Quizzes) are weighted 5% each,

Assignment 3 (TMA01) is weighted 20% and Assignment 4 (TMA02) is also
weighted 20%. Together they constitute 100% of OCAS.
(b) OES: The Examination is 100% of this component.
How to pass this course:
To be sure of a pass result you need to achieve scores of 40% in each the OCAS and
OES component. Your overall rank score is the weighted average of both
components.
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PSY201 COURSE GUIDE
Non-graded Learning Activities:
Activities for the purpose of self-learning are present in each study unit (Reflect-
Read-Explore/Local & International News), as well as in the formative assessment
which is non-graded. These learning activities enable you to assess your
understanding and achievement of the learning outcomes. You are expected to
complete the suggested activities either independently and/or in groups.
6. Course Schedule
To help monitor your study progress, you should pay special attention to your
Course Schedule. It contains study unit related activities including Assignments,
Self-assessments, Face-to-Face Seminars, Discussion Board etc. Please refer to the
Course Time-table in the Student Portal for the updated Course Schedule.
Note: You should always make it a point to check the Student Portal for any
announcements and latest updates.
7. Learning Mode
There are different modes of learning in this course. They include the following:
(a) Study guide/e-learning/recommended text (for all the sessions)
(b) Discussion Board
(c) Face-to-face seminars
The learning process for this course is structured along the following lines of
learning. First, self-study based on the study guide/e-learning/recommended text.
Independent study will require several hours per week. Second, working on
assignments (e.g., TMAs, summative quiz) & participation in class activities (e.g.,
Discussion Board, face-to-face seminars).
iStudyGuide
You may be viewing the iStudyGuide version, which is the mobile version of the
Study Guide. The iStudyGuide is developed to enhance your learning experience
with interactive learning activities and engaging multimedia. Depending on the
reader you are using to view the iStudyGuide, you will be able to personalise your
learning with digital bookmarks, note-taking and highlight sections of the guide.
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PSY201 COURSE GUIDE
Interaction with Instructor and Fellow Students
Although flexible learning – learning at your own pace, space and time – is a
hallmark at SUSS, you are encouraged to engage your instructor and fellow students
in online discussion forums. Sharing of ideas through meaningful debates will help
broaden your learning and crystallise your thinking.
Academic Integrity
As a student of SUSS, it is expected that you adhere to the academic standards

stipulated in The Student Handbook, which contains important information
regarding academic policies, academic integrity and course administration. It is
necessary that you read and understand the information stipulated in the Student
Handbook, prior to embarking on the course.
6
STUDY UNIT 1
WHAT IS
INDUSTRIAL/ORGANIZATIONAL
PSYCHOLOGY?
PSY201 STUDY UNIT 1
Learning Outcomes
By the end of this unit, you should be able to:
1. define I/O psychology.
2. outline history & development of I/O psychology.
3. analyse key trends in I/O psychology.
4. outline the key steps in conducting research in I/O psychology.
5. compare and contrast a variety of research approaches in I/O psychology.
Overview
The first part of this chapter (Topic 1 – Introduction: Definitions & History) defines
industrial-organizational (I/O) psychology. It gives the reader a feel for what this
branch of psychology is about, what are the areas which different I/O psychologists
specialise in, as well as the challenges faced by I/O psychologists in the modern world
of work. The examples drawn from the early history and development of I/O
psychology, as well as the discussion of current and future trends, show how far the
field has progressed over time. The second part of this chapter (Topic 2 – Research
Methods in I/O Psychology) presents an overview of how to conduct scientific research
in I/O psychology. It introduces a variety of research approaches that are used to
investigate work-related behaviour. Many of the research concepts described here
will be used throughout the course when discussing theories, interpreting results and
studying the effectiveness of various interventions conducted by I/O psychologists.
Therefore, it’s important for the reader to develop a good grasp of the research
methodology behind I/O psychology.
SU1-1
PSY201 STUDY UNIT 1
Chapter 1 Definition, History and Research

Methodology
1.1 Introduction: Definitions and History
Industrial/organizational psychology is the branch of psychology that deals with the

study of work behaviour. Some I/O psychologists study the basic personnel functions
within organizations, such as the way workers are recruited, selected and evaluated.
Other I/O psychologists study the psychological processes underlying work
behaviour, such as employee motivation, job satisfaction and work stress. Still other
I/O psychologists focus on group and organizational processes in the workplace, such
as teamwork, leadership as well as organizational change and development.
Regardless of the area of specialisation, all I/O psychologists are concerned with the
science and practice of industrial/organizational psychology. The scientific goal is to
increase our knowledge and understanding of work behaviour, while the practical
goal is to use this knowledge to improve the psychological well-being of workers. It’s
also important to note that the study of work behaviour is a multidisciplinary,
cooperative venture because of the complexity of the subject matter. Hence I/O
psychologists are not the only scholars who study work behaviour; they combine their
research with the work of scholars in other disciplines such as management,
economics, sociology etc.
Important historical contributions that led to the development of the field of I/O
psychology include the work of Frederick Taylor, who founded the school of scientific
management. This theoretical perspective held that work behaviour could be studied
by systematically breaking down a job into its components and recording the time
needed to perform each set of task. The application of such time-and-motion studies
increased the efficiency of many manual labour jobs. During World War I and World
War II, I/O psychologists became involved in the psychological testing of military
recruits to determine work assignments. This first large scale testing programme was
the beginning of formalised personnel testing, which is still an important part of I/O
psychology.
Elton Mayo and his human relations movement emphasised the role that social
factors played in determining worker behaviour. Through a series of studies, Mayo
demonstrated the importance of worker morale or satisfaction in determining
performance and also discovered the Hawthorne effect. This refers to the notion that
subjects' behaviour could be affected by the mere fact that they knew they were being
observed and by the expectations they associated with being subjects in an
experiment.
SU1-2
PSY201 STUDY UNIT 1
Following World War II, there was tremendous growth and specialisation in I/O
psychology, including specialties within the field that focus on how work groups and
organizations function, as well as how technology and workers interface. Today, I/O
psychology is a rapidly growing field of study. Various trends in the workplace pose
challenges to I/O psychologists conducting their research and practice in different
parts of the world. These trends include:
 Changing nature of work

Both jobs and organizations are rapidly changing and evolving in the
modern world due to technological advancement, e.g. using social media to
market a product.
 Expanding focus on human resources

As our world becomes more globalised, there is an intense competition for
highly skilled workers, e.g. Google and Apple compete with each other to
recruit talented employees.
 Increasing diversity and globalisation of the workforce

Employees from different cultural backgrounds working in the same
organization have led to greater workplace diversity, e.g. foreign talent in
local companies.
 Increasing relevance of I/O psychology in shaping workplace policies/practices

A number of workplace issues affect both the company and its employees
which I/O psychologists can effectively address, e.g. how to improve the
well-being of employees by making the company a great place to work in.
Key terms
Industrial/organizational (I/O) psychology is the branch of psychology that is

concerned with the study of behaviour in work settings and the application of
psychology principles to change work behaviour.
Scientific management, a movement started by Frederick Taylor, was a method of

using scientific principles to improve the efficiency and productivity of jobs.
Time-and-motion studies are procedures in which work tasks are broken down into
simple component movements timed to develop a more efficient method for
performing the tasks.
The human relations movement was based on the studies of Elton Mayo that
emphasised the importance of social factors in influencing work performance. The
SU1-3
PSY201 STUDY UNIT 1
Hawthorne effect refers to changes in behaviour occurring as a function of

participants’ knowledge that they are being observed and their expectations
concerning their role as research participants.
Introduction: Definitions & History

2015 Science for a smarter workplace [Video file]. (2016, Jan 19). Retrieved from
https://www.youtube.com/watch?annotation_id=annotation_2837321309&feature=iv
&src_vid=oG5ew9rhkBg&v=1fLCmoxCdRc
1. Discuss the increasing globalisation of business as well as diversity of workforce

around the world. How will such work trends affect the behaviour of the average
employee in the company? What are the implications for the I/O psychologist?
2. Discuss the multidisciplinary nature of work and analyse which disciplines

(besides I/O psychology) may be interested in the study of work behaviour. How can
these scholars in these disciplines complement the work of I/O psychologists?
3. Imagine that you decided to choose a career path in I/O psychology. What research
questions or practice issues would interest you? How might these interests affect the
area of specialisation in I/O psychology that you might focus on?
SU1-4
PSY201 STUDY UNIT 1
Additional Non-Compulsory Readings

Cummings, S., & Bridgman, T. (2011). The relevant past: Why the history of
management should be critical for our future. Academy of Management Learning
& Education, 10(1), 77−93.
https://ap01.alma.exlibrisgroup.com/view/action/uresolver.do;jsessionid=2DCBA139CDC7299E59AD3846282259B6.a
pp02.prod.alma.dc05.hosted.exlibrisgroup.com:1801?operation=resolveService&package_service_id=43897959000219
1&institutionId=2191&customerId=2190
Kiechel, W. (2012). The management century. Harvard Business Review, 90(11), 62−75.
https://ap01.alma.exlibrisgroup.com/view/action/uresolver.do?operation=resolveService&package_service_id=438979
Find Out More

http://www.siop.org
Society for Industrial and Organizational Psychology; excellent information on

graduate training in I/O psychology; profile the careers of different I/O psychologists,
enabling reader to gain an insight on what they do.
SU1-5
PSY201 STUDY UNIT 1
Local & International News

Lee, M. (2014, October 27). Preparing for Gen Z workforce. The Straits Times, p. B12.
Woo, J. (2014, September 4). Call for capitalism that gives back. The Straits Times, p.
B10.
Nirmala, M. (2014, August 28). Riding the technology wave without fear. The Straits
Times, p. A32.
Lee, J. X. (2014, July 9). Older workers more private than younger ones: Survey. The
Straits Times, p. B7.
SU1-6
PSY201 STUDY UNIT 1
1.2 Research Methods in I/O Psychology
The goals of I/O psychology are to describe, explain, predict and then alter work
behaviour. Research methods are important tools for I/O psychologists because they
provide a systematic and objective means for investigating work behaviour. There are
six steps in conducting psychological research on work behaviour, as shown in Figure
1.1 below:
Figure 1.1 How to conduct psychological research on work behaviour
Step 1. Formulation of problem

Step 2. Generation of hypotheses
Step 3. Choosing a research design
Step 4. Collection of data
Step 5. Analysis of data
Step 6. Interpretation of results/drawing of conclusion
The first step in conducting psychological research involves the formulation of the
problem or issue. For example, a researcher might be interested to find out whether
a new work technique increases worker productivity. The second step involves taking
those elements that the researcher intends to measure, known as variables, and
generating statements concerning the supposed relationship between these variables,
known as hypotheses. For example, workers who employ this new technique to do
their jobs are more productive compared to those who don’t. The third step is
choosing a particular research design. The type of design selected depends on such
things as the research setting and the degree of control that the researcher has over the
research setting. For example, the researcher might decide to conduct a laboratory
experiment to investigate if this new technique increases the productivity of the
worker. He might use undergraduates as participants or “workers” to ensure control
in this experimental study.
The fourth and fifth steps involve the collection and analysis of data. Frequently, this
involves statistical analysis of quantitative data (e.g., self-report), although qualitative
data can also be analysed (e.g., personal interview). The final step in the research
process is interpretation of result. Here the researcher draws conclusions about the
meaning of the findings and its relevance to actual work behaviour. For example, if
the researcher found positive results, he would conclude that the new technique
increased the productivity of the worker. At the same time, he would point out a
major limitation of this study, i.e., the finding cannot be generalised to the actual work
setting since the experimental study is based on undergraduates, not real workers.
SU1-7
PSY201 STUDY UNIT 1
I/O psychologists use a variety of research approaches to conduct their investigation.

In the experimental method, the researcher manipulates one variable, labelled the
independent variable, and measures its effect on the dependent variable. In an
experimental design, any change in the dependent variable is presumed to be caused
by the manipulation of the independent variable. Typically, the experimental method
involves the use of a treatment group and a control group. The treatment group is
subjected to the manipulation of the independent variable, while the control group
serves as a comparison by not receiving the experimental treatment.
Variables that are not of principal concern to the researchers, but which may affect the
results of the research are termed extraneous variables. In the experimental method,
the researcher attempts to control for extraneous variables through the random
assignment of participants to the treatment and control groups, in order to ensure that
any extraneous variables will be distributed evenly between the groups. The strength
of the experimental method is the high level of control that the researcher has over the
setting, which allows the investigator to determine cause-and-effect relationships. The
weakness of the method is that the controlled conditions may be artificial and may not
generalise to actual, uncontrolled work settings.
Quasi-experiments are often conducted when the researcher does not have the ability
to randomly assign participants to different conditions. For example, a researcher
might compare one group of workers who have undergone a particular training
programme with another group of workers who have not undergone the training.
Because workers are not randomly assigned to the groups, these groups are not
equivalent. Therefore, a cause-and-effect relationship cannot be determined as
extraneous variables cannot be ruled out.
Another type of research approach, known as the correlational method (sometimes

called the observational method), looks at the relationships among measured
variables as they naturally occur, without the intervention of the experimenter and
without strict experimental controls. The strength of this design is that it may be more
easily conducted in actual settings. However, the correlational method does not allow
the specification of cause-and-effect relationships.
A third type of research approach is meta-analysis. This method allows the results of
a number of studies to be combined and analysed together to draw an overall
summary or conclusion. Meta-analysis may also be used to determine if the results of
different studies of the same factors are significantly different from each other. A
fourth research approach is the case study, a commonly-used descriptive
investigation that lacks the controls and repeated observations of the experimental
and correlational methodologies. The case study can provide important information,
but it does not allow the testing of hypotheses.
SU1-8
PSY201 STUDY UNIT 1
Although these research approaches differ from one another, they have something in
common. Specifically, the researcher will need to measure the key variables in the
study. A variety of measurement techniques are used by I/O psychologists to do this.
Researchers may measure variables through obtrusive or unobtrusive observation of
behaviour. In obtrusive observation, the researcher is visible to the research
participants, who know that they are being studied. Unobtrusive observation involves
observing participants' behaviour without their knowledge. Another measurement
strategy is self-report techniques, which yield information about participants'
behaviour from their own reports. One of the most widely used self-report techniques
is the survey.
When interpreting research results, a researcher should consider the limitations of the
findings. One concern is the extent to which the researcher is confident that changes
in the dependent variable were actually caused by the independent variable, as
opposed to extraneous variables. This is called internal validity. Attention must also
be given to the external validity of the findings, that is, whether they will generalise
to other settings. The American Psychological Association lists several core principles
that should guide the ethical conduct of research in psychology, including I/O
psychology. One key element in working with human participants is obtaining
informed consent. With informed consent, a research participant is fully informed of
the nature of the experiment and has the right not to participate in the research.
Key terms
Variables are the elements measured in research investigations.
Hypotheses are statements about the supposed relationships between or among

variables.
The experimental method is a research design characterised by a high degree of

control over the research setting to allow for the determination of cause-and-effect
relationships among variables.
Independent variables are variables that are manipulated by the researcher using the
experimental method.
Dependent variables are the variables that are acted upon by the independent
variable(s).
The treatment group is the group in an experimental investigation that is subjected to

the change in the independent variable.
SU1-9
PSY201 STUDY UNIT 1
The control group is the group in an experimental investigation that receives no

treatment.
Extraneous variables are variables other than the independent variable that may
influence the dependent variable.
Random assignment is a method of assigning subjects to groups to control for the

effects of extraneous variables.
Quasi-experiment follows the experimental design but lacks random assignment

and/or manipulation of the independent variable.
The correlational method is a research method that examines the relationship among
or between variables as they occur naturally.
Meta-analysis is a technique that allows results from several different research studies
to be combined and summarised.
The case study is a descriptive investigation that involves a one-time assessment of

behaviour.
Obtrusive observation is research observation in which the presence of the observer

is known to the participants.
Unobtrusive observation is observation in which the presence of the observer is not

known to the participants.
Self-report techniques are measurement methods that rely on research participants’

reports of their own behaviours or attitudes.
Surveys are a common self-report measure in which participants are asked to report
on their attitudes, beliefs, and/or behaviours.
Internal validity is the extent to which extraneous or confounding variables are

removed.
External validity refers to whether research results obtained in one setting will apply
to another setting.
Informed consent is when a research participant is fully informed of the nature of the
experiment and has the right not to participate in the study.
SU1-10
PSY201 STUDY UNIT 1
Research Methods in I/O Psychology

Psychological research: Crash course psychology [Video file]. (2014, Feb 10). Retrieved
from https://www.youtube.com/watch?v=hFV71QPvX2I
1. Discuss how you can scientifically examine the effects of worker training on work
performance using the experimental method. Describe how you will complete each
step of the research process and define the independent and dependent variables.
Identify any extraneous variables which may affect the results of your research.
2. Construct a list of at least five variables of interest which may be examined in actual
work settings, including such factors as worker job satisfaction, worker productivity,
work conditions, and so on. Determine how these variables can be measured.
Delineate which factors can be used in an experimental research design, and which
will require a correlational research design.
SU1-11
PSY201 STUDY UNIT 1

Alvesson, M., & Gabriel, Y. (2013). Beyond formulaic research: In praise of greater
diversity in organizational research and publications. Academy of Management
Learning & Education, 12(2), 245−263.
Cozby, P. C., & Bates, S. C. (2012). Methods in behavioural research (11th ed.). New York,
NY: McGraw-Hill.
http://primo-direct-apac.hosted.exlibrisgroup.com/65SIM:65SIM_ALMA2127059650002191
Oswick, C., Fleming, P., & Hanlon, G. (2011). From borrowing to blending: Rethinking
the processes of organizational theory building. Academy of Management Review,
36(2), 318−337.
Find Out More

http://methods.fullerton.edu
A research methods website designed to accompany Cozby & Bates’s book on

behavioural research (see above).
SU1-12
PSY201 STUDY UNIT 1

Facebook manipulated users' emotions. (2014, June 30). The New Paper, p. 4.
Wee, C. F. (2014, September 9). Like it or not, brainwaves don’t lie. The Straits Times,
p. B7.
Ho, A. (2014, July 24). The creeping invasion of Big Data. The Straits Times, p. A25.
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STUDY UNIT 2
HR & PERSONNEL ISSUES
PSY201 STUDY UNIT 2
Learning Outcomes

1. describe job analysis and its products.
2. compare and contrast different techniques of job analysis.
3. discuss employee recruitment/screening/selection/placement.
4. compare and contrast different methods of deciding which employee to select.
5. discuss different types of errors that can be made when hiring an employee.
6. examine different types of test reliability and validity.
7. compare and contrast different types of selection tests.
8. analyse key issues in the effective use of selection tests.
9. compare and contrast between objective and subjective measures of
performance.
10. analyse different issues in the development of performance criteria.
11. examine the individual and comparative methods of rating performance.
12. analyse common errors when conducting a performance appraisal.
Overview
The first part of Chapter 1 (Topic 1 – Job Analysis) provides insight on what job analysis
is, as well as the different techniques of doing job analysis. It is important to develop
a good grasp of job analysis, since it is the foundation of nearly all personnel activities.
For example, when a company conducts recruitment, screening, testing and selection
of applicants for a job, it must first determine what knowledge, skills, abilities and
other characteristics (KSAOs) are required to perform the job before it makes the
hiring decision. Likewise, when a company evaluates the work performance of its
employees, it needs to know what job a certain employee is doing before it can assess
how well he is doing on the job. The second part of Chapter 1 (Topic 2 – Employee
Recruitment) looks at how companies recruit, screen, select and place new employees
on the job. A variety of employee recruitment methods are explored, such as
advertisements, college recruitment programmes, employment agencies, and
employee referrals. In addition, the reader will also gain insight on the different
methods of deciding which candidate to hire for the job, as well as the possible errors
in making such a hiring decision.
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Chapter 1 From Job Analysis to Employee Recruitment
1.1 Job Analysis
Job analysis is the systematic study of a job's tasks, duties, and responsibilities, as
well as the knowledge, skills, abilities & other characteristics (KSAOs) needed to
perform the job. Job analysis yields several products including job description, job
specification, job evaluation and performance criteria, as shown in Figure 2.1 below.
Figure 2.1 Products of job analysis
i. job description - detailed accounting of job tasks, procedures, responsibilities and

output
ii. job specification - information about the physical, educational and experiential
qualities required to perform the job
iii. job evaluation - assessment of the relative value of jobs for determining
compensation as well as performance criteria which serve as a basis for appraising
successful job performance
iv. performance criteria - means for appraising worker success in performing a job.
Job analysis and its products are important because they provide detailed information
needed for other personnel activities, such as planning, selection and recruitment,
performance appraisal, ensuring compliance with the legal framework of
employment and so on.
Job analysis methods include observation, the use of existing data, interviews,
surveys, and job diaries. In addition to these general methods for conducting job
analysis, there are also a number of specific, standardised techniques. One structured
job analysis technique is the job element method, a broad approach to job analysis
that focuses on the KSAOs required to perform a particular job.
A second technique of job analysis is the critical incidents technique (CIT). It

involves the collection of particularly successful or unsuccessful instances of job
performance. Through the collection of hundreds of these incidents, a very detailed
profile of a job emerges. A third job analysis technique is the Position Analysis
Questionnaire (PAQ) which uses a structured questionnaire that analyses jobs in
terms of 187 job elements arranged into six categories.
A fourth technique is the functional job analysis (FJA) which classifies jobs in terms
of the worker's interaction with data, people, and things. FJA uses the Dictionary of
Occupational Titles (DOT), a reference book listing general job descriptions for
thousands of jobs. The DOT has since been replaced by Occupational Information
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Network or O*NET (www.onetcenter.org). This one-stop website for job career

information, which is established by the U.S. Department of Labor, contains a wealth
of information about job categories, KSAOs, wages/salaries, job training and licensing
requirements and so on.
One important outcome of job analysis is job evaluation, or an assessment of the

relative value of jobs used to determine appropriate compensation. These evaluations
usually examine jobs on dimensions that are called compensable factors, which are
given values that signify the relative worth of the job and translate into levels of
compensation.
An important topic in the area of job evaluation concerns the gender gap in wages.
Evidence indicates that women are paid far less than men for comparable work. This
inequity has recently given rise to the comparable worth movement, which argues
for equal pay for equal work. This issue is controversial because of the difficulty and
costs of making compensation for comparable jobs equitable. Research has also
suggested that women and ethnic minorities are affected by a glass ceiling which
creates difficulties for members of minority groups in rising to the highest-level
positions in organisations.
Key terms
Job analysis is the systematic study of the tasks, duties, and responsibilities of a job
and the qualities needed to perform it.
Job description is a detailed description of job tasks, procedures, and responsibilities;

the tools and equipment used; and the end product or service.
Job specification is a statement of human characteristics required to perform a job.
Job evaluation is an assessment of the relative value of a job to determine appropriate

compensation.
Performance criteria refer to the means for appraising worker success in performing
a job.
The job element method is a job analysis method that analyses jobs in terms of the
knowledge, skills, abilities, and other characteristics (KSAOs) required to perform the
job.
The critical incidents technique (CIT) is a job analysis technique that relies on
instances of especially successful or unsuccessful job performance.
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The Position Analysis Questionnaire (PAQ) is a job analysis technique that uses a
structured questionnaire to analyse jobs according to 187 job statements, grouped into
six categories.
Functional job analysis (FJA) is a structured job analysis technique that examines the
sequence of tasks in a job and the processes by which they are completed.
The Dictionary of Occupational Titles (DOT) is a reference guide that classifies and
describes over 40,000 jobs that is used in FJA.
O*NET is the U.S. Department of Labor’s website that provides comprehensive

information about jobs and careers.
Compensable factors are the job elements that are used to determine appropriate
compensation for a job.
Comparable worth refers to the notion that jobs that require equivalent KSAOs should
be compensated equally.
The glass ceiling refers to limitations placed on women and minorities preventing
them from advancing into top-level positions in organisations.
Job Analysis
How to write a job description [Video file]. (2014, Jan 14). Retrieved from
https://www.youtube.com/watch?v=jsHC15xh43A
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1. Conduct a job analysis of your current occupation. It should result in the products
of job analysis, namely, job description, job specification, job evaluation, and
performance criteria. Consider the comparability of these products to the structure of
your job and pay. Evaluate the thoroughness and accuracy of each product.
2. Describe three occupations (e.g., teacher, accountant, detective) in terms of the

categories delineated by functional job analysis (i.e., data, people, things). Evaluate
the differences between the occupations regarding the educational level and skills
required in terms of the functional job analysis categories.
3. Discuss the gender gap in wages and the concept of comparable worth. Discuss
how this situation may change in the future and how it may be affected by changes in
the general workforce.
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Cucina, J. M., Martin, N. R., Vasilopoulos, N. L., & Thibodeuax, H. F. (2012). Self-
serving bias effects on job analysis ratings. Journal of Psychology, 146(5),
511−531.
Ployhart, R. E., Schneider, B., & Schmitt, N. (2006). Staffing organizations: Contemporary
practice and theory. Mahwah, NJ: Lawrence Erlbaum Associates, Publishers.
Prien, E. P., Goodstein, L. D., Goodstein, J., & Gamble, L. G. (2009). A practical guide
to job analysis. San Francisco, CA: Pfeiffer.
Stetz, T. A., Button, S. B., & Porr, W. B. (2009). New tricks for an old dog:
Visualizing job analysis results. Public Personnel Management, 38(1), 91−100.
Find Out More

http://www.onetcenter.org
Occupational Information Network or O*NET, the U.S. Department of Labor “one-

stop” website for job career information.
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Davie, S. (2014, July 22). Computing is cool again – more and better students apply
for courses in NUS. The Straits Times, p. A2.
Seow, J. (2014, July 15). Jobs Bank kicks off with 16,000 positions. The Straits Times, p.
A1.
Mok, F. F. (2014, April 26). Steps to put more women on company boards. The Straits
Times, p. C12.
Mok, F. F. (2014, March 10). Survey shows fewer women in top corporate roles in
Singapore. The Straits Times, p. B11.
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1.2 Employee Recruitment
Employee recruitment is the process of attracting potential workers to apply for jobs.
There are a variety of employee recruitment methods, such as advertisements, college
recruitment programmes, employment agencies, and employee referrals. An
important element of the recruitment process is to present applicants with an accurate
picture of the job through the use of realistic job previews (RJPs), which help increase
satisfaction and decrease turnover of new employees. Employee screening is the
process of reviewing information about job applicants to select individuals for jobs.
A wide variety of data sources, such as resumes, job applications, letters of
recommendation, employment tests and hiring interviews, can be used in screening
potential employees. Employee selection is the actual process of choosing people for
employment from a pool of applicants. In employee selection, all the information
gained from the screening process above is combined in some manner to make an
actual selection decision. The primary goals are to maximise the probability of
accurate decisions in selecting job applicants as well as to ensure that the decisions
are made in a way that is free from both intentional and unintentional discrimination
against the applicants.
Two kinds of variables are involved in making a decision about which employee to
hire: criteria and predictors. Criteria (or the singular, criterion) are measures of job
success. The most common way to think of success on the job is in terms of
performance criteria, e.g. for a salesperson, amount of sales in dollar terms is a
performance criterion. Predictors are any pieces of information that we are able to
measure about job applicants that are related to (or predictive of) the criterion. In
employee selection, we measure predictors such as job-related knowledge and
expertise, education, IQ, personality traits and so on, in an attempt to predict who will
be successful in a given job.
Once employers have gathered information about job applicants from these
predictors, they can combine it in various ways to make selection decisions. But all
too often, subjective decision-making processes are used. This results in a variety of
errors in employee selection. One type of error is known as false-positive error, i.e.,
when the company erroneously accept applicants who would have been unsuccessful
on the job. Another type of error is known as false-negative error, i.e., when the
company erroneously rejects applicants who would have been successful on the job.
The alternative approach is to use statistical models of decision-making in employee

selection. One is the multiple regression model, an approach that allows predictors
or test scores to be combined statistically. Another is the multiple cutoff strategy, a
method of setting minimum cut-off scores for each predictor or test score. A third one
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is the multiple hurdle approach, a stringent method that uses an ordered sequence of
screening devices.
Whereas employee selection deals with how people are hired for jobs, employee
placement is the process of deciding which job the hired workers should be assigned
to. Employee placement typically only takes place when there are two or more
openings that a newly hired worker can fill. An overriding concern in all personnel
decisions is to protect against discrimination in employment. The federal Equal
Employment Opportunity Commission (EEOC) has established guidelines to ensure
against discrimination against ethnic minorities and other protected groups. To take
preventive steps to avoid employment discrimination, many organisations have
adopted affirmative action plans to ensure that jobs are made available to members
of protected groups.
Key terms
Employee recruitment is the means by which companies attract job applicants.
A realistic job preview (RJP) is an accurate presentation made to applicants of the

prospective job and organisation.
Employee screening is the process of reviewing information about job applicants to

choose workers.
Employee selection is the process of choosing people for employment from a pool of
applicants.
Criteria are measures of job success typically related to performance.
Predictors are variables about applicants that are related to the criteria.
False positive errors refer to erroneously accepting applicants who would have been
unsuccessful.
False negative errors refer to erroneously rejecting applicants who would have been
successful.
The multiple regression model is an employee selection method that combines

separate predictors of job success in a statistical procedure.
The multiple cut-off model is an employee selection method that uses a minimum
cut-off score on each of the various predictors of job performance.
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The multiple hurdle model is an employee selection strategy that requires that an
acceptance or rejection decision be made at each of several stages in a screening
process.
Employee placement is the process of assigning workers to jobs.
Protected groups are groups including women and certain ethnic and racial minorities
that have been identified as previous targets of employment discrimination.
Affirmative action refers to the voluntary development of policies that try to ensure
that jobs are made available to qualified individuals regardless of sex, ethnicity etc.
Employee Recruitment, Selection & Placement

Recruitment and Selection [Video file]. (2014, Jan 12). Retrieved from
https://www.youtube.com/watch?v=r-VcHu-wZxE
1. Discuss the challenges faced by an employer when hiring someone for a particular
job. Describe these problems as they may occur during employee recruitment,
screening, selection and placement.
2. Develop realistic job previews for three different jobs. Think about how to
communicate both the strengths and weaknesses of these positions. Discuss the
drawbacks of an unrealistic job description for both the employer and potential
employee.
3. Come up with a job description for a teaching assistant position. Develop a set of
questions that represent predictors to illustrate the multiple cutoff model, e.g. GPA
(cut off any student below a 3.0), grade on the final exam (cut off any student who did
not score a B or higher).
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Brock, M. E., & Buckley, M. R. (2013). Human resource functioning in an information
society: Practical suggestions and future implications. Public Personnel
Management, 42(2), 272−280.
Compton, R., Morrissey, W., & Nankervis, A. (2009). Effective recruitment and selection
practices. North Ryde, NSW: CCH Australia.
Klotz, A. C., Motta Veiga, S. P., Serge, P., Buckley, M. R., & Gavin, M. B. (2013). The
role of trustworthiness in recruitment and selection: A review and guide for
future research. Journal of Organizational Behavior, 34, 104−119.
Ryan, A. M., & Tippins, N. T. (2004). Attracting and selecting: What psychological
research tells us. Human Resource Management, 43(4), 305−318.
Find Out More

http://www.hr-guide.com
Contains many useful resources relating to all aspects of HR, e.g. personnel selection.
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Boon, R. (2014, October 20). Life-time degree from university of hard knocks. The
Davie, S. (2014, August 20). The more internships the better for SMU students. The
Shan, H. P. (2014, July 15). Watchdog probes allegation of discrimination. The Straits
Times, p. B4.
Boon, R. (2014, May 26). Good HR policies draw talent, boost business growth. The
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Overview
The first part of Chapter 2 (Topic 1 – Assessing/Selecting Employees) explores a variety
of selection tests used in hiring different candidates for the job. I/O psychologists have
been very active in this area, developing all sorts of tests to predict who may be best
suited for working in a particular job. In selecting employees for a certain job, the first
step is the evaluation of written materials such as applications and resumes. The
second step is employee testing, which typically uses standardised instruments to
measure characteristics that are predictive of job performance. Different types of
selection tests are examined here, including cognitive ability tests, mechanical ability
tests, motor and sensory ability tests, job skills and knowledge tests, personality tests,
hiring interviews, assessment centres etc. Regardless of the selection test being used,
it must be a reliable and valid predictor of job performance. Also, a variety of selection
tests are often combined in a test battery to increase the chance of hiring the best
qualified candidate. The second part of Chapter 2 (Topic2 – Evaluating Employee
Performance) looks at how employees’ job performance is measured in organisations.
Two types of performance criteria are examined. Objective criteria are quantifiable
measurements of employee performance such as number of units produced, while
subjective criteria are judgements of employee performance such as supervisor rating.
Two subjective methods for rating employee performance are described, namely,
comparative versus individual. In addition, a variety of problems and pitfalls in
performance appraisals are considered.
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Chapter 2 Selecting Employees and Evaluating Their

Performance
2.1 Assessing/Selecting Employees
A wide variety of data sources, such as resumes, job applications, letters of

recommendations, employment tests and hiring interviews, can be used to select
potential employees. In selecting employees for a certain job, the first step is the
evaluation of written materials such as applications and resumes. Basic background
information can be translated into numerical values to compare the qualifications of
applicants through the use of weighted application forms. Employee screening also
involves methods, such as references and letters of recommendation. However, the
use of these methods is on the decline because they tend to be overly positive and are
often uninformative. The second step in selection is employee testing, which typically
uses standardised instruments to measure characteristics that are predictive of job
performance. Any test must demonstrate that it has reliability or consistency as well
as validity or accuracy as a selection instrument.
There are three methods for establishing reliability. In the case of test-retest
reliability, the same measure is administered to the same people at two different
times; the two scores are then correlated. In the case of parallel forms, the reliability
of a selection test is determined by correlating scores on two different but equivalent
versions of the same measuring instrument. Finally, internal consistency is a
common method of establishing reliability by examining how the various items of the
selection test inter-correlate.
Similarly, there are three methods to establish validity of a selection test. Content
validity refers to the ability of test items to measure the various characteristics needed
to perform a job. Construct validity refers to the ability of test items to measure the
abstract construct and make accurate predictions of job performance based on the said
construct. Criterion-related validity refers to the accuracy of the selection test in
determining the relationship between scores on the instrument and some criterion of
job success.
Selection tests vary greatly both in their format and in the characteristics that they
measure. Test format includes whether it is an individual or group test, power or
speed test, as well as paper-&-pencil or performance test. Types of selection tests
include cognitive ability tests, mechanical ability tests, motor and sensory ability tests,
job skills and knowledge tests, personality tests, and other measuring instruments
such as integrity tests. Often two or more selection tests are combined together in a
test battery to help select the best qualified candidates. One issue in the effective use
of selection test is validity generalisation or the test's ability to predict job
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performance in settings different from the one in which it was validated. Another
issue is test utility or an estimate of the dollars gained in increased productivity and
efficiency because of the use of screening tests. A final issue in selection test is faking
or trying to beat an employment test by distorting responses.
To hire a candidate for a high-level managerial position, organizations frequently use

the assessment centre. This is a selection test which offers a detailed, structured
assessment of applicants' employment potential. Specific managerial skills and
characteristics an assessment centre attempts to measure include oral and written
communication skills, behavioural flexibility, organizational planning and decision-
making. Most organizations will also conduct interviews when hiring candidates for
a certain job. In spite of its popularity, research indicates that the hiring interview, as
it is typically used, generally has low levels of reliability and validity. Used correctly,
the interview should help supply information that cannot be obtained from
applications, resumes, or tests, and should present the applicant with a realistic job
preview. However, most interviews are not conducted with this in mind. One of the
greatest sources of problems with hiring interviews stems from interviewer biases.
For example, interviewers may allow factors such as an applicant’s gender, race,
physical attractiveness and so on to influence their judgements. There may also be a
tendency for an interviewer to make a snap judgement, arriving at an overall
evaluation of the applicant in the first few moments of the interview, then spending
the remaining time trying to confirm that first impression of the applicant.
Key terms
Weighted application forms are forms that assign different weights to the various
pieces of information provided on a job application.
Reliability refers to the consistency of a measurement instrument or its stability over

time.
Validity refers to the accuracy of a measurement instrument (whether it measures

what it says it does).
Test-retest reliability is a method of determining the reliability of a measurement

instrument by administering the same measure to the same people at two different
times and then correlating the scores.
Parallel forms is a method of establishing the reliability of a measurement instrument

by correlating scores on two different but equivalent versions of the same instrument.
Internal consistency is a common method of establishing a measurement instrument’s

reliability by examining how the various items of the instrument intercorrelate.
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Content validity refers to the ability of test items to measure the various characteristics
needed to perform a job.
Construct validity refers to the ability of test items to measure the abstract construct
and make accurate predictions of job performance based on the said construct.
Criterion-related validity refers to the accuracy of the selection test in determining the
relationship between scores on the instrument and some criterion of job success.
Integrity tests are measures of honest or dishonest attitudes and/or behaviours.
A test battery is a combination of employment tests used to increase the ability to

predict future job performance.
Validity generalisation refers to the ability of a screening instrument to predict

performance in a job or setting different from the one in which the test was validated.
Test utility refers to the value of a screening test in determining important outcomes,
such as dollars gained by the company through its use.
Faking refers to purposely distorting one’s response to a test to present one’s self in a
positive, socially-desirable way.
Assessment centres involve a detailed, structured evaluation of job applicants using a

variety of instruments and techniques.
Assessing/Selecting Employees
Psychological testing and types of tests [Video file]. (2013, Aug 27). Retrieved from
https://www.youtube.com/watch?v=Q3eGoeUcXiw&list=PL-
ZPh6i6fq7JF8oJhFCoNbLOazMuw5O_s
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1. Discuss the importance of reliability and validity in the development of a variety of

psychological tests to screen and select applicants for a job. Compare and contrast the
different methods of determining test reliability and validity.
2. Construct a list of different jobs (e.g., customer service officer, police officer,
security guard) for which the various types of selection tests (e.g., job knowledge test,
personality test, integrity test) could be used in screening job applicants.
3. Describe a personal experience concerning a job interview. Provide key

information such as the job applied for, the knowledge, skills and abilities required by
the job, the questions posed by the interviewer, responses to these questions etc.
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Heneman, H. G., & Milanowski, A. T. (2011). Assessing human resource practices
alignment: A case study. Human Resource Management, 50(1), 45−64.
Lohman, M. C. (2004). The development of a multirater instrument for assessing

employee problem-solving skill. Human Resource Development Quarterly, 15(3),
303−321.
Malakate, A., Andriopoulos, C., & Gotsi, M. (2007). Assessing job candidates'
creativity: Propositions and future research directions. Creativity & Innovation
Management, 16(3), 307−316.
Schuler, R. S., & Jackson, S. E. (2007). Strategic human resource management. Malden,
Mass: Blackwell.
Find Out More

http://www.wonderlic.com
An example for a test publisher site where you can look at some of the employment
tests available.
http://www.ipacweb.org/
Site of the International Personnel Assessment Council, an organisation devoted to

personnel testing and assessment.
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Tan, A. (2014, October 5). Game’s up for job seekers who lie. The Sunday Times, p. 14.
Ganapathy, N. (2014, July 31). Indian job applicants protest against test in English. The
Straits Times, p. A18.
Lim, Y. L. (2014, January 19). Busting the myths of lie detection. The Sunday Times,
p.14.
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2.2 Evaluating Employee Performance
Performance appraisals involve the assessment of worker performance on the basis

of predetermined organizational standards. Performance appraisals serve many
important purposes, including being the basis for personnel decisions and a means of
assessing performance. One way to categorise performance is in terms of objective
and subjective criteria. Objective performance criteria are more quantifiable
measurements of performance, such as the number of units produced or dollar sales.
Subjective performance criteria typically involve judgements or ratings of
performance. Concerns for a performance criterion include whether it is relevant to
job success, called criterion relevance; whether the criterion contains elements that
detract from the "pure" assessment of performance, termed criterion contamination;
the degree to which a criterion falls short of perfect assessment of job performance,
called criterion deficiency; and whether the criterion is usable, called criterion
usefulness.
Research on ratings of job performance has examined who is making performance

ratings. Self-appraisals are ratings or evaluations made by the workers themselves.
Peer appraisals involve co-workers rating one another's performance. In some
instances, subordinates may rate the performance of their supervisors. Most common,
of course, are supervisory ratings of subordinates' performance. 360-degree feedback
involves getting multiple performance evaluations from supervisors, peers,
subordinates, and customers.
There are two basic methods for rating performance, comparative versus individual.
Comparative methods of appraisal directly compare one worker's performance with
that of other workers. They include ranking from best to worst employee, paired
comparison between two employees and forced-distribution which involves
assigning employees to pre-established categories of performance.
On the other hand, individual methods of appraisal do not make direct comparisons
with other workers but focus on the individual employee. The most common method
of individual performance appraisal involves the use of graphic rating scales,
whereby an appraiser uses a standardised rating instrument to make a numerical
and/or verbal rating of various dimensions of job performance. A specific type of
rating technique, the behaviourally anchored rating scale (BARS), uses examples of
good and poor behavioural incidents as substitutes for the scale anchors found in
traditional rating instruments. Another performance assessment technique related to
the BARS is behavioural observation scale (BOS) in which the rater indicates how
often the employee has been observed performing key work-related behaviours.
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A major problem in rating job performance is caused by systematic biases and errors.
Response tendency errors, such as leniency/severity or central tendency errors, lead
to consistently good, bad, or average ratings, respectively. Halo effects occur when
appraisers make overall positive or negative performance appraisals because of one
known outstanding characteristic or action. There are also errors caused by giving
greater weight to more recent performance, known as recency effects; as well as
various attribution errors such as the actor-observer bias. The latter may lead an
appraiser to place greater emphasis on dispositional factors and lesser emphasis on
situational factors that may have affected performance.
A good performance appraisal consists of two parts: the performance assessment and
performance feedback. The feedback should occur in a face-to-face situation in which
the supervisor provides constructive information, encouragement and guidelines for
the improvement of the worker's future performance. Because performance
appraisals are important to the worker's livelihood and career advancement, there are
considerable legal overtones to the appraisal process. Performance appraisals must be
valid procedures, resulting from job analysis, that do not unfairly discriminate against
any group of workers. Also, due to the proliferation of work teams, organisations are
developing team appraisals, which involve evaluating an interdependent group of
workers as a unit. The changing nature of work means that performance appraisal
systems need to be constantly reviewed and revised to keep up with changes in jobs
e.g., using briefer but more frequent “check-ins” or mini performance assessments.
For instance, in place of annual performance appraisals, managers in General Electric
conduct regular feedback sessions via a smartphone app that was designed in-house.
Key terms
Performance appraisals are the formalised means of assessing worker performance in

comparison to certain established organisational standards.
Objective performance criteria are measures of job performance that are easily
quantified (also called “hard” criteria).
Subjective performance criteria are measures of job performance that typically consist
of ratings or judgements of performance (also called “soft” criteria).
Criterion relevance refers to the extent to which the means of appraising performance
are pertinent to job success.
Criterion contamination refers to the extent to which performance appraisals contain

elements that detract from the accurate assessment of job effectiveness.
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Criterion deficiency refers to the degree to which a criterion falls short of measuring
job performance.
Criterion usefulness refers to the extent to which a performance criterion is usable in

appraising a particular job.
360-degree feedback is a method of gathering performance appraisals from a worker’s

supervisors, subordinates, peers, customers, and other parties.
Comparative methods are performance appraisal methods involving comparisons of

one worker’s performance against that of other workers; include rankings, paired
comparisons, and forced distributions.
Rankings are performance appraisal methods involving rank ordering of supervisors

from best to worst.
Paired comparison methods are performance appraisal methods in which the rater
compares each worker with each other worker in the group.
Forced distributions are performance appraisal methods that involve assigning

workers to established categories of poor to good performance with fixed limitations
on how many employees can be assigned to each category.
Individual methods are performance appraisal methods that evaluate an employee by

himself or herself, without explicit reference to other workers.
Graphic rating scales are performance appraisal methods using a predetermined scale
to rate the worker on important job dimensions.
Behaviourally anchored rating scales (BARS) are performance appraisal techniques

using rating scales with labels reflecting examples of poor, average, and good
behavioural incidents.
Behavioural observation scales (BOS) are performance appraisal methods that

require appraisers to recall how often a worker has been observed performing key
work behaviours.
The leniency error is the tendency to give all workers very positive performance
appraisals.
The severity error is the tendency to give all workers very negative performance
appraisals.
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The central tendency error is the tendency to give all workers the midpoint rating in
performance appraisals.
The halo effect refers to the overall positive evaluation of a worker based on one
known positive characteristic or action.
The recency effect refers to the tendency to give greater weight to recent performance
and lesser weight to earlier performance.
The actor-observer bias refers to the tendency for observers to over-attribute cause to
characteristics of the actor and the tendency for the actor to over-attribute cause to
situational characteristics.
Evaluating Employee Performance

Performance reviews: Performance evaluations & appraisal [Video file]. (2014, Jul 18).
Retrieved from https://www.youtube.com/watch?v=KcGhX7Htk9U
1. Compare the strengths and weaknesses associated with objective and subjective
performance criteria. How would you use these two types of performance criteria to
evaluate the performance of a sales executive in the insurance industry? Provide
relevant examples.
2. Discuss how criterion relevance, criterion contamination, criterion deficiency, and

criterion usefulness may apply in assessing the performance of a waitress in a fine-
dining restaurant. Identify a relevant example of how each may occur in this
performance appraisal.
3. Analyse the pros and cons of using individual versus comparative methods of
performance appraisal to rate the work performance of five employees in an
organizational consultancy firm.
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4. Identify common errors made by a manager when evaluating the performance of

subordinates in his department. Discuss how such errors can be overcome so as to
enhance the accuracy of the managerial appraisal.
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Bennett, W., Lance, C. E., & Woehr, D. J. (Eds.). (2006). Performance measurement:
Current perspectives and future challenges. Mahwah, NJ: Lawrence Erlbaum.
DeNisi, A. S., & Pritchard, R. D. (2006). Performance appraisal, performance

management and improving individual performance: A motivational
framework. Management & Organization Review, 2(2), 253−277.
Farndale, E., & Kelliher, C. (2013). Implementing performance appraisal: Exploring

the employee experience. Human Resource Management, 52(6), 879−897.
Picher, S. (2012). The social context of performance appraisal and appraisal reactions:
A meta-analysis. Human Resource Management, 51(5), 709−732.
Find Out More

http://performance-appraisals.org
A website with resources to help understand performance appraisals.
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Whang, R. (2014, September 8). Investing in staff self-improvement. The Straits Times,
p. B12.
Boon, R. (2014, January 13). Two-way appraisal: Is that the way to a better
workplace? The Straits Times, p. B11.
Boon, R. (2014, January 27). Disappointed with salary review? Try negotiating. The
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DEVELOPING EMPLOYEES AT WORK
PSY201 STUDY UNIT 3
Learning Outcomes

1. define motivation and analyse its impact on employee performance.
2. compare and contrast the different types of motivational theories.
3. define leadership and examine its role in work groups and organizations.
4. compare and contrast the different theories of leadership.
5. define job satisfaction and analyse its relationship with key variables such as
job performance.
6. compare and contrast different strategies to increase job satisfaction.
7. examine other forms of positive employee attitudes/behaviours such as
organizational citizenship behaviour.
8. define worker stress and examine different sources of worker stress.
9. compare and contrast different strategies of coping with worker stress.
10. examine other forms of negative employee attitudes/behaviours such as
counterproductive work behaviours.
Overview
The first part of Chapter 1 (Topic 1 – Motivation in the Organization) introduces a variety
of theories of motivation in the workplace. Although the key concepts of motivation
in these theories are different, they should not be viewed in isolation from one another.
Instead, we should consider how the theories, in combination, help us to develop a
deeper insight of what motivates the individual worker. For example, the need
theories may emphasise the satisfaction of basic human needs as a key to worker
motivation, while the behavioural theories may argue that motivation is caused by
work-related rewards. However, the satisfaction of human needs can be seen as the
experience of a reward. The second part of Chapter 1 (Topic 2 – Leadership in the
Organization) examines the different theories of leadership that have been developed
by I/O psychologists. This examination begins with the earliest and simplest
leadership theories and progress to more current and complex models of leadership.
Later theories tend to build on earlier theories and so contain some similar elements,
but they are enhanced in different ways. Also, the different theoretical approaches
sometimes lead to very different interventions to develop leadership in the
organization.
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Chapter 1 Motivating and Leading Employees
1.1 Motivation in the Organization
Motivation is the force that energises, directs and sustains behaviour. The many
theories of work motivation can be classified as need theories, behaviour-based
theories, job design theories and cognitive theories. Needs are physiological or
psychological deficiencies that an organism is compelled to fulfil. Maslow's need
hierarchy theory arranges needs in a hierarchy from lower-order needs (e.g.,
physiological) to higher-order needs (e.g., self-actualisation). Alderfer's ERG theory
categorises needs into existence, relatedness and growth needs. McClelland's
achievement motivation theory proposes that the three needs important in work
motivation are needs for achievement, power, and affiliation, which can be measured
with a projective test known as the Thematic Apperception Test. Unlike Maslow's
and Alderfer's need theories, McClelland's theory has been used extensively in work
settings to encourage worker motivation.
Behaviour-based theories include both reinforcement and goal-setting approaches to

motivation. Reinforcement theory stresses the role that reinforcers and punishments
play in motivation. Positive reinforcers (e.g., money) strengthen the tendency to
respond; negative reinforcers (e.g., noise) strengthen a behaviour through the
avoidance of an aversive event and punishment (e.g., scolding) weakens the tendency
to perform the behaviour in question. Reinforcement theory is applied to increase
motivation through organizational behaviour modification programmes. On the
other hand, goal-setting theory emphasises setting challenging goals for workers, and
getting workers committed to those goals as the keys to motivation. Such goals must
be clear, specific, attainable and quantifiable, e.g. mark three assignments in one hour.
Job design theories of motivation stress the structure and design of jobs as key factors
in motivating workers. Herzberg's two-factor theory focuses on job satisfaction and
dissatisfaction as two independent dimensions important in determining motivation.
Motivators are factors related to job content that, when present, lead to job
satisfaction. Hygienes are elements related to job context that, when absent, cause job
dissatisfaction. According to Herzberg, the presence of hygienes will prevent job
dissatisfaction, but motivators are needed for employee job satisfaction and hence
motivation. Hackman and Oldham have proposed the job characteristics model,
another job design theory of motivation, which states that five core job characteristics
influence three critical psychological states that in turn lead to motivation. This model
can be affected by certain moderators, including growth need strength, the notion
that certain workers feel a need to grow on their jobs. Workers must be high in growth
and need strength if programmes such as job enrichment are indeed going to produce
motivation. Job enrichment, which involves redesigning jobs in order to give workers
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greater responsibility in the planning, execution, and evaluation of their work, is the
application that grew out of the job design models of motivation.
Cognitive theories of motivation emphasise the role that cognition plays in

determining worker motivation. Equity theory states that workers are motivated to
keep their work inputs in proportion to their outcomes. According to equity theory,
workers are motivated to reduce perceived inequities. This perception of
equity/inequity is determined by comparing the worker’s input–outcome ratio to
similar comparison others. Underpayment inequity is the worker’s perception that
inputs are greater than outcomes, whereas overpayment inequity is the worker’s
perception that outcomes are greater than inputs. Expectancy theory (with its three
core components of valence, instrumentality, and expectancy) is a complex model,
which states that motivation is dependent on expectations concerning effort–
performance–outcome relationships. The three core components of expectancy
theory are valence, instrumentality and expectancy. Valence refers to the desirability
of a particular outcome to an individual; instrumentality refers to the perceived
relationship between the performance of a particular behaviour and the likelihood of
receiving a particular outcome; and expectancy refers to the perceived relationship
between the individual’s effort and performance of a behaviour.
Key terms
Motivation is the force that energises, directs, and sustains behaviour.
Needs are physiological or psychological deficiencies that an organism is compelled

to fulfil.
Need hierarchy theory is a motivation theory proposed by Maslow that arranges

needs in hierarchy from lower, more basic needs to higher-order needs.
ERG theory is Alderfer’s motivation model that categorises needs into existence,
relatedness, and growth needs.
Achievement motivation theory is McClelland’s model of motivation that

emphasises the importance of achievement, power and affiliation needs in
determining worker motivation.
The Thematic Apperception Test (TAT) is a projective test that uses ambiguous
pictures to assess psychological motivation.
Reinforcement theory is the theory that behaviour is motivated by its

consequences.
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Positive reinforcers are desirable events that strengthen the tendency to respond.
Negative reinforcers are events that strengthen a behaviour through the avoidance
of an existing negative state.
Punishment is an unpleasant consequence that reduces the tendency to respond.
Organizational behaviour modification is the application of conditioning

principles to obtain certain work outcomes.
Goal-setting theory is the motivational theory that emphasises the setting of

specific and challenging work performance goals.
Two-factor theory is Herzberg’s motivational theory that proposes that two factors
- motivators and hygienes - are important in determining worker satisfaction and
motivation.
Motivators are elements related to job content that, when present, lead to job
satisfaction.
Hygienes are elements related to job context that, when absent, lead to job
dissatisfaction.
The job characteristics model is a theory that emphasises the role that certain
aspects of jobs play in influencing work motivation.
Growth need strength is the need and desire for personal growth on the job (a
component of the job characteristics model).
Job enrichment is a motivational programme that involves redesigning jobs to give

workers a greater role in the planning, execution, and evaluation of their work.
Equity theory is the theory that workers are motivated to reduce perceived
inequalities between work inputs and outcomes.
Comparison others are persons used as a basis for comparison in making

judgements of equity/inequity.
Underpayment inequity is a worker’s perception that inputs are greater than

outcomes.
Overpayment inequity is a worker’s perception that outcomes are greater than

inputs.
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Expectancy theory is a cognitive theory of motivation that states that workers weigh
expected costs and benefits of particular courses of action before they are motivated
to behave.
Valence refers to the desirability of an outcome to an individual.
Instrumentality refers to the perceived relationship between the performance of a

particular behaviour and the likelihood of receiving a particular outcome.
Expectancy refers to the perceived relationship between the individual’s effort and
performance of a behaviour.
Motivation in the Organization

Pink, D. (2010, Jan 29). Daniel Pink: What really motivates workers [Video file]. Retrieved
from https://www.youtube.com/watch?v=feDJ3zL23qw
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1. Describe McClelland's achievement motivation theory. Evaluate your own levels

of the three needs described in his theory. Discuss how they relate to your own levels
of work motivation and academic motivation.
2. Discuss the use of positive reinforcers, negative reinforcers and punishments in the
workplace. Provide a specific example for each type of reinforcement at work.
Analyse its effectiveness in motivating employee behaviour.
3. Choose a certain job that you are familiar with, e.g. school teacher, customer service
officer, administrative manager etc. Discuss how to enrich this particular job based
on the five core job characteristics in the job characteristic model.
4. Describe the expectancy theory of motivation, including definitions of valence,

expectancy, and instrumentality. Based on this theory, discuss how to motivate a sales
executive in the computer industry to increase his sales of computer products.
5. How would you design a programme to improve motivation for a group of low-
achieving students in a neighbourhood secondary school? What would the elements
of the programme be? What motivational theories would you use?
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Battistelli, A., Galletta, M., Portoghese, I., & Vandenberghe, C. (2013). Mindsets of
commitment and motivation: Interrelationships and contribution to work
outcomes. Journal of Psychology, 147(1), 17−48.
Latham, G. P. (2012). Work motivation: History, theory, research and practice. Thousand
Oaks, CA: SAGE.
Michaelson, C. (2005). Meaningful motivation for work motivation theory. Academy of

Management Review, 30(2), 235−238.
Thomas, K. W. (2009). Intrinsic motivation at work: Building energy & commitment. San
Francisco, CA: Berrett-Koehler Publishers.
Van den Broeck, A., Schreurs, B., De Witte, H., Vansteenkiste, M., Germeys, F., &
Schaufeli, W. (2011). Understanding workaholics' motivations: A self-
determination perspective. Applied Psychology: An International Review, 60(4),
600−621
http://primo-direct-apac.hosted.exlibrisgroup.com/65SIM:TN_ghent1254258
Find Out More Icon

http://www.motivation.com
An example for a commercial website that tries to help people to motivate themselves.
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Russell, J. E. A. (2014, September 15). Catching up with work: Don’t get too caught up.
The Straits Times, p. B12.
Davie, S. (2014, September 9). Improving, excelling in one’s work despite age. The
Straits Times, p. A6.
Seow, J. (2014, September 4). Small businesses offer bigger perks to draw and keep
staff. The Straits Times, p. B1.
Kwok, J. (2014, April 13). Should you work for passion or for money? The Sunday
Times, p. 35.
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1.2 Leadership in the Organization
Leadership is the ability to direct a group towards the attainment of goals. Leadership
theories can be divided into three categories: universalist theories, behavioural
theories and contingency theories. Universalist theories of leadership look for the
major characteristics common to all effective leaders. One example is the great
man/woman theory which holds that some people are natural, born leaders. Another
example is the trait theory which specifies certain personality traits or characteristics
that are common to all effective leaders. These universalist theories suffer from the
facts that they are simplistic and that they focus on individual leader characteristics.
The behavioural theories of leadership are typified by studies conducted at Ohio

State and University of Michigan that looked directly at leader behaviour, rather than
at inferred leader characteristics. Two dimensions of leader behaviour emerged:
initiating structure (also called task-oriented behaviours) which focuses on work task
production and consideration (also known as relationship-oriented behaviours)
which emphasises interpersonal relationships among workers. The Leadership Grid
is an application of the findings from the behavioural theories – a programme that
stresses both task-oriented and relationship-oriented behaviours as the keys to leader
success.
Next to emerge were the contingency theories of leadership. Fiedler's contingency

model states that effective leadership depends on a match between the leader's style
and the favourableness of the work situation. Leader style is assessed through the
least preferred co-worker (LPC) measure which assesses a leader’s task or
relationship orientation by having him rate the most difficult fellow worker. The
favourability of situations is determined by three variables: leader-member relations
or quality of the relationship between leaders and followers; task structure or how
well elements of the work task are structured and the leader's position power or the
leader’s authority to punish or reward followers. Task-oriented leaders who focus on
getting the job done are most effective in either very favourable or very unfavourable
situations. By contrast, relationship-oriented leaders who focus on interpersonal
relationships do better in moderately favourable situations.
The path-goal theory asserts that the leader is a facilitator who chooses the type of
behaviour that will most help the work group to achieve their goals. According to the
path-goal theory, the leader can adopt four types of leader behaviour. Directive
behaviour provides instructions and suggestions for performing a job;
achievement-oriented behaviour focuses on particular work outcomes; supportive
behaviour emphasises interpersonal relationships and shows concern for workers’
well-being; and participative behaviour encourages members to assume an active
role in group planning and decision making. The decision making model sees the
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leader's main role as making work-related decisions. This prescriptive model contains
a decision tree framework for the leader to follow to decide the appropriate
decision-making strategy (ranging from autocratic to democratic) to use in a particular
situation. The leader-member exchange model examines the quality of the
relationship between the leader and each subordinate, which leads to a more precise
determination of work outcomes.
Whereas contingency theories of leadership focus on the interaction between a

leader’s behaviour or style and elements of the situation, other leadership theories
look at truly “exceptional” leaders such as Winston Churchill or Martin Luther King.
For example, charismatic leadership theory focuses on exceptional characteristics or
qualities that great leaders possess. On the other hand, transformational leadership
theory focuses on the leader’s ability to provide shared values and a vision for the
future for the work group.
The application of leadership theories involves one of two strategies: instituting

leadership training programmes or redesigning the job to fit the leader. The majority
of the theories advocate leadership training, either by teaching specific leader
behaviours (for example, task-oriented or relationship-oriented) or by training leaders
to diagnose situations that call for task-oriented or relationship-oriented behaviours.
Job redesign usually involves changing characteristics of the situation to fit the
leader's typical style or orientation. However, work situations that are amenable to
such job redesigns may be limited. In other situations, particularly where roles and
procedures are well-defined, substitutes for leadership, such as self-managing work
teams or shared leadership, may be appropriate.
Key terms
Leadership is the ability to guide a group to the achievement of goals.
Universalist theories of leadership look for the major characteristics common to all
effective leaders.
Great man/woman theory is a universalist theory of leadership that maintains that

great leaders are born, not made.
Trait theory attempts to discover the traits shared by all effective leaders.
Behavioural theories of leadership are theories derived from studies at Ohio State
and Michigan that focus on the behaviours common to effective leaders.
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Initiating structure are leader behaviours that define, organise, and structure the
work situation.
Consideration behaviours are leader behaviours that show a concern for the
feelings, attitudes, and needs of followers.
The Leadership Grid is an application of the findings from the behavioural theories
of leadership that stresses that effective leaders should be both task-oriented and
relationship-oriented.
Contingency theories of leadership are theories that look at the interaction of

characteristics of both the leader and the situation.
Fiedler’s contingency model maintains that effective leadership depends on a

match between the leader’s style and the degree to which the work situation gives
control and influence to the leader.
The least preferred co-worker (LPC) is a measure that assesses leaders’ task or
relationship orientation by having them rate their most difficult fellow worker.
Leader-member relations refer to the quality of the relationship between leaders

and followers.
Task structure refers to an assessment of how well elements of the work task are
structured.
Position power refers to the leader’s authority to punish or reward followers.
The path-goal theory states that a leader’s job is to help the work group achieve
their desired goals.
Directive behaviour is leader behaviour that provides instructions and suggestions

for performing a job.
Achievement-oriented behaviour is leader behaviour that is concentrated on

particular work outcomes.
Supportive behaviour is leader behaviour focusing on interpersonal relationships

and showing concern for workers’ well-being.
Participative behaviour is leader behaviour that encourages members to assume an

active role in group planning and decision making.
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The decision-making model is a theory that matches characteristics of the situation

with leader decision-making strategies.
The leader-member exchange model (LMX) is a theory that effective leadership is

determined by the quality of the interaction between the leader and particular
group members.
Charismatic leadership theory states that leaders possess some exceptional

characteristics that cause followers to be loyal and inspired.
Transformational leadership theory focuses on the leader’s ability to provide

shared values and a vision for the future for the work group.
Shared leadership is where leadership is shared among the group members rather
than being centralised in one person.
Leadership in the Organization

Steve Jobs leadership skills breakdown: How to motivate people [Video file]. (2016, Jan 4).
Retrieved from https://www.youtube.com/watch?v=dVLERJ5IdrA
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1. Apply the great man-woman theory to shed light on historical leaders and/or
powerful individuals in the real world. Discuss the validity of this theory, i.e., are
great leaders born and not made as implied in this theory?
2. Discuss the similarities and differences in the leadership theories developed by the
University of Michigan and the Ohio State researchers.
3. Fiedler’s contingency model describes two leadership styles, namely, task-oriented

versus relationship-oriented. Identify two supervisor/managers whom you personally
know. One should be task-oriented while the other should be relationship-oriented.
Compare and contrast the behaviours of these two supervisor/managers.
4. Define transformational and charismatic leadership. Identify a business or political

leader who possesses a leadership style that is both charismatic and transformational
at the same time.
5. Design a leadership training programme for student prefects in a primary school.

What would the elements of the programme be? What leadership theories would you
use?
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Avolio, N. J. (2005). Leadership development in balance: Made/born. Mahwah, NJ:
Erlbaum.
Bottomley, K., Burgess, S. & Fox III, M. (2014). Are the behaviors of transformational
leaders impacting organizations? A study of transformational leadership.
International Management Review, 10 (1), 5 - 9.
Hogg, M. A., Van Knippenberg, D., & Rast III, David E. (2012).
Intergroup leadership in organizations: Leading across group and
organizational boundaries. Academy of Management Review, 37(2), 232−255.
Storey, J. (Ed.). (2011). Leadership in organizations: Current issues and key trends.
New York: Routledge.
Find Out More Icon

http://www.ila-net.org/
Website for the International Leadership Association, a professional organisation for

scholars and practitioners from many disciplines who are interested in the study and
practice of leadership.
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Shannonhouse, R. (2014, October 27). When your boss is making you sick. The Straits
Times, p. B10.
Chia, Y. M. (2014, August 18). Room for diversity at the top. The Straits Times, p. B11.
Tan, A. (2014, July 20). 5 things bosses and staff don’t see eye to eye on. The Sunday
Times, p. 14.
Boon, R. (2014, July 14). Nurturing the next leaders. The Straits Times, p. B10.
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Overview
The first part of Chapter 2 (Topic 1 – Job Satisfaction & Positive Employee
Attitudes/Behaviours) examines the positive aspects of work, for example what causes
employees to feel satisfied with their jobs, what are the links between job satisfaction
and job performance, how to increase job satisfaction of the employee. Also, we look
at how managers can encourage their employees to behave positively in the workplace
by engaging in organizational citizenship behaviours. The second part of Chapter 2
(Topic 2 – Worker Stress & Negative Employee Attitudes/Behaviours) examines the
negative aspects of work, especially in relation to stress in the workplace. Issues
considered here include the measurement of work stress, the sources of work stress,
the effects of work stress and how employees can cope with stress in the workplace.
In addition, counterproductive work behaviours which can result from work-related
stress are also examined.
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Chapter 2 Shaping Employee Attitudes and Behaviours for

the Better
2.1 Job Satisfaction and Positive Employee

Attitudes/Behaviours
Employee engagement, a psychological state characterised by vigour, dedication, and

absorption in one’s work and work organization, is linked with many positive
outcomes for workers and organizations. Engaged employees have positive attitudes
towards work and the organization; engage in positive work behaviours, and are
motivated and productive. Employee engagement is positively related to job
satisfaction and organizational commitment, and is negatively related to intentions to
leave a work organization.
Job satisfaction, which involves the positive feelings and attitudes one has about a
job, can be conceptualised in overall or global terms as well as in specific components
or facets. It can be measured through interviews or with self-report instruments. The
most widely used self-report measures are the Minnesota Satisfaction Questionnaire
(MSQ) measuring 20 job facets; as well as the Job Descriptive Index (JDI) measuring
five job facets. Research indicates that there is a positive but complex relationship
between job satisfaction and job performance. For example, the Porter-Lawler model
proposes that the link between job satisfaction and job performance is mediated by
work-related rewards.
Job satisfaction is positively correlated with organizational commitment, or

employees' feelings and attitudes about the entire work organization. Both job
satisfaction and organizational commitment tend to be negatively correlated with
employee absenteeism. However, the relationships are complex and difficult to
decipher, partly due to the difficulty involved in distinguishing voluntary
absenteeism from involuntary absenteeism.
Job satisfaction can be enhanced in different ways. One strategy involves restructuring
the work of the employees. For example, job rotation involves the systematic
movement of workers to different tasks to reduce monotony, while job enlargement
involves the expansion of a job to include more varied work tasks.
Another strategy involves changing the pay structure of employees. One method is
skill-based pay in which workers are paid based on their skills and knowledge of the
job. Another method is performance-based pay in which workers are paid based on
their performance on the job. Examples include merit pay, gainsharing and profit
sharing. Merit pay is a compensation system in which employees receive a base rate
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and additional pay based on performance; gainsharing is a compensation system

based on effective group performance; and profit sharing is a plan where all
employees receive a small share of an organization’s profits.
A third strategy to increase job satisfaction is by adopting flexible work schedules. For
example, compressed work weeks are schedules that decrease the number of days in
the work week while increasing the number of hours worked per day. Flextime is a
schedule that commits an employee to working a specified number of hours per week,
but offers flexibility in regard to the beginning and ending times for each day. A
fourth strategy is the use of benefits programmes which can include flexible working
hours, a variety of health-care options, retirement plans, employee-sponsored child
care etc. “Cafeteria-style” benefit programmes where the employee can choose from
a number of options are growing in popularity as a way to enhance job satisfaction
employee.
Positive employee behaviours beyond the normal job routine are termed
organizational citizenship behaviours and these are positively related to desirable
work outcomes. Most recently, research has focused on the role of positive affect in
employee behaviour, with job satisfaction mediating the relationship between affect
and work outcomes. This emphasis on positive employee attitudes, emotions, and
behaviours reflects I/O psychology’s concern with both organizational functioning
and employee well-being.
Key terms
Employee engagement is a psychological state by vigour, dedication, and

absorption in one’s work and work organization.
Job satisfaction consists of the positive and negative feelings and attitudes one has
about one's job.
The Minnesota Satisfaction Questionnaire (MSQ) is a self-report measure of job

satisfaction that breaks satisfaction down into 20 job facets.
The Job Descriptive Index (JDI) is a self-report job satisfaction rating scale
measuring five job facets.
The Porter-Lawler model is a theory where the relationship between job satisfaction
and performance is mediated by work-related rewards.
Organizational commitment is a worker’s feelings and attitudes about the entire

work organization.
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Job rotation is the systematic movement of workers from one type of task to another
to alleviate boredom and monotony (as well as training workers on different tasks).
Job enlargement is the expansion of a job to include additional, more varied work
tasks.
Skill-based pay is a system of compensation in which workers are paid based on

their knowledge and skills rather than on their positions in the organisation.
Merit pay is a compensation system in which employees receive a base rate and
additional pay based on performance.
Gainsharing is a compensation system based on effective group performance.
Profit sharing is a plan where all employees receive a small share of an

organization’s profits.
Compressed work weeks are schedules that decrease the number of days in the
work week while increasing the number of hours worked per day.
Flextime is a schedule that commits an employee to working a specified number of

hours per week, but offers flexibility in regard to the beginning and ending times
for each day.
Organizational citizenship behaviour (OCB) consists of efforts by organizational

members that advance or promote the work organization and its goals.
Positive affect are positive emotions (e.g., joy, happiness) that affect mood in the
workplace.
Job Satisfaction & Positive Employee Attitudes/Behaviours

Pryce-Jones, J. (2012, Sep 14). Jessica Pryce-Jones on the science of happiness at work [Video
file]. Retrieved from https://www.youtube.com/watch?v=twI6dy8AxRw
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1. Identify a variety of factors that influence employee engagement. These factors

may relate to the worker, job, organization, family, community etc. Provide specific
examples for each factor in the workplace.
2. Discuss the different methods of measuring job satisfaction. For each method,
analyse the challenges involved in the measurement of job satisfaction. How can I/O
psychologists deal with these problems in measuring job satisfaction?
3. Identify a list of essential variables in the workplace such as job performance,

employee absenteeism, organizational commitment, customer satisfaction, sales
turnover etc. Analyse the link between job satisfaction and each of these variables.
4. Consider the job that you are currently working in. What are the “normal” duties
associated with your job, and what may be considered “organizational citizenship
behaviours” for your job? Propose a variety of ways in which your company can
encourage its employees to engage in OCBs.
5. A company has asked you to recommend various strategies to improve job

satisfaction and increase organizational commitment. These strategies can focus on
different areas such as the job itself, the compensation system, the scheduling of work
etc. What recommendations would you make to this company?
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Bouckenooghe, D., Raja, U., & Butt, A. N. (2013). Combined effects of positive and
negative affectivity and job satisfaction on job performance and turnover
intentions. Journal of Psychology, 147(2), 105−123.
Finkelstein, M. A. (2012). Individualism/collectivism and organizational citizenship

behavior: An integrative framework. Social Behavior & Personality: An
International Journal, 40(10), 1633−1643.
Macey, W. H., Schneider, B., Barbera, K. M., & Young, S. A. (2009). Employee
engagement: Tools for analysis, practice and competitive advantage. Chichester, U.K.;
Malden, Mass.: John Wiley & Sons.
Ruiz-Palomino, P., Sáez-Martínez, F., & Martínez-Cañas, R. (2013). Understanding

pay satisfaction: Effects of supervisor ethical leadership on job motivating
potential influence. Journal of Business Ethics, 118 (1), 31−-43.
Templer, K. J. (2012). Five-factor model of personality and job satisfaction: The

importance of agreeableness in a tight and collectivistic Asian society. Applied
Psychology: An International Review, 61(1), 114−-129.
Find Out More Icon

http://www.shri.org.sg/
Website of the Singapore Human Resource Institute (SHRI), which contains a lot of
information on good human resource practices to enhance employee performance and
well-being in Singapore.
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Schulte, B. (2014, September 8). Hopping from job to job to job…for life. The Straits
Times, p. B12.
Chua, G. (2014, August 11). Engineers use skills and know-how for good causes. The
Tan, A. (2014, August 11). Marrying work and life. The Straits Times, p. B3.
Yahya, Y. (2014, July 22). Going ‘flexi’ can be tricky, say experts. The Straits Times, p.
A6.
Yahya, Y. (2014, July 19). The love-work imbalance. The Straits Times, p. D2-D3.
Ibrahim, Z. (2014, May 18). Work-life balance: Young workers want it all. The Sunday
Times, p. 43.
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PSY201 STUDY UNIT 3
2.2 Worker Stress and Negative Employee

Attitudes/Behaviours
Although there is a great deal of disagreement over definitions of stress, worker stress
can be defined as the physiological or psychological reactions to an event that is
perceived to be threatening or taxing. Stress is actually a perception, so there is
tremendous individual variation in what one perceives to be stressful.
Negative stress, or distress, can cause stress-related illness, and it can affect
absenteeism, turnover, and work performance. Certain occupations, such as air traffic
controllers and health care providers, are stereotypically associated with high levels
of stress. Worker stress can also come from organizational sources or individual
sources.
Organizational sources of worker stress include work overload or having too much
to do on the job; as well as underutilisation or not making full use of one’s
knowledge, skills and abilities on the job. Other organizational sources of stress
include job ambiguity which occurs when job tasks and responsibilities are not
clearly defined; a worker's sense of having a lack of control over the job; as well as
interpersonal stress which arises from difficulties in one’s relations with co-workers.
Individual sources of work stress include the worker's experience of stressful life
events (e.g., being bullied at work) that can cause stress. Also included in this
category are susceptibility to stress such as the lack of hardiness or resistance to
stress-related illnesses; as well as certain patterns of behaviour such as the Type A
behaviour pattern, which is marked by competitiveness and hostility. A low level of
self-efficacy or belief in one’s competence on the job can also be an individual source
of stress.
Worker stress is measured in different ways. They include physiological measures,

self-report assessments, the measurement of stressful life events, and the match
between worker characteristics and the demands of the work situation, referred to as
the person-environment (P-E) fit approach. Stress has been shown to be related to
certain physical illnesses such as ulcers, high blood pressure, and heart disease. These
stress-related illnesses as well as stress itself are tied to rates of employee absenteeism
and turnover and to job performance, although the relationship between stress and
performance is complex. Long-term stress can lead to job burnout, a multi-
dimensional construct that relates to one’s tendency to withdraw from work.
Strategies for coping with worker stress can be divided into individual and
organizational coping strategies. Individual coping strategies include programmes
of exercise, diet, systematic relaxation training, meditation, biofeedback, time
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PSY201 STUDY UNIT 3
management, work planning, and cognitive coping strategies. Organizational coping

strategies include improving the person-job fit, offering better training and
orientation programmes, giving workers a sense of control over their jobs, eliminating
punitive management styles, removing hazardous work conditions, and improving
organizational communication.
Counterproductive work behaviours (CWBs) are destructive behaviours designed to

harm employers or fellow employees. They can result from stress, frustration,
feelings of inequality or personality differences, such as trait negative affectivity. An
important concern of management is reducing counterproductive work behaviours
and dealing with alcohol and drug use in the workplace. One strategy is to offer
Employee Assistance Programmes (EAP) to help workers deal with alcohol and drug
problems, as well as personal issues and workplace stress.
Key terms
Worker stress is defined as physiological or psychological reactions to an event that

is perceived by an individual to be threatening or taxing.
Work overload is a common source of stress resulting when a job requires excessive
speed, output, or concentration.
Underutilisation is a source of stress resulting from workers feeling that their

knowledge, skills, or energy are not being fully used.
Job ambiguity is a source of stress resulting from a lack of clearly defined jobs
and/or work tasks.
Lack of control is a feeling of having little input or effect on the job and/or work
environment that typically results in stress.
Interpersonal stress is stress arising from difficulties with others in the workplace.
Stressful life events are significant events in a person’s recent history that can cause
stress.
Hardiness refers to the notion that some people may be more resistant to the health-
damaging effects of stress.
The Type A behaviour pattern is a personality characterised by excessive drive,

competitiveness, impatience, and hostility that has been linked to greater incidence
of coronary heart disease.
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Self-efficacy is an individual’s belief in his or her abilities to engage in courses of

action that will lead to desired outcomes.
Person-environment (P-E) fit refers to the match between a worker’s abilities,

needs, and values, and organizational demands, rewards, and values.
Burnout is a syndrome resulting from prolonged exposure to work stress that leads
to withdrawal from the organization.
Individual coping strategies are techniques such as exercise, meditation or

cognitive restructuring that can be used to deal with work stress.
Organizational coping strategies are techniques that organisations can use to

reduce stress for all or most employees.
Counterproductive work behaviours (CWBs) are deviant, negative behaviours that

are harmful to an organization and its workers.
Employee assistance programmes (EAPs) refer to counselling provided for a

variety of worker problems, particularly drug and alcohol abuse.
Worker Stress & Negative Employee Attitudes/Behaviours

McGonigal, K. (2013, Sep 4). Kelly McGonigal: How to make stress your friend [Video
file]. Retrieved from https://www.youtube.com/watch?v=RcGyVTAoXEU
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1. List the sources of work stress in your own life. Ask a colleague to do the same.
Compare and contrast the similarities and differences in these two lists. What are the
implications of these similarities and differences for defining, understanding and
measuring work stress?
2. Consider how the world of work will be changing in the next few decades with the
advent of new technology like cloud computing, social media etc. What are the
implications for worker stress? How can companies help their employees to cope with
the stress of working in this brave new world?
3. Design a stress management programme for a crew of waiters/waitresses in a

McDonald’s restaurant. Your programme should address the individual/
organizational sources of stress, as well as incorporate both individual and
organizational coping strategies of stress.
4. Examine the connections between worker stress and counterproductive work

behaviours like alcohol and drug use. Identify the types of industries/jobs where this
connection is most likely to develop. What can the respective organizations do to
prevent/reduce its occurrence?
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Sulsky, L., & Smith, C. (2005). Work stress. Belmont, CA: Thompson-Wadsworth.
Kuchinke, K. P., Cornachione, E. B., Seok, Y. O., & Hye, S. K. (2010). All work and no
play? The meaning of work and work stress of mid-level managers in the
United States, Brazil and Korea. Human Resource Development International,
13(4), 393−408.
Leiter, M. P., & Maslach, C. (2005). Banishing burnout: Six strategies for improving your
relationship with work. San Francisco, CA: Jossey-Bass.
Lu, L., Kao, S. F., Siu, O. L., & Lu, C. Q. (2011). Work stress, Chinese work values,
and work well-being in the Greater China. Journal of Social Psychology, 151(6),
767−783.
Raghuram, S., & Wiesenfeld, B. (2004). Work-nonwork conflict and job stress among
virtual workers. Human Resource Management, 43(2/3), 259−277.
Spector, P. E., & Fox, S. (2010). Counterproductive work behavior and organisational
citizenship behavior: Are they opposite forms of active behavior? Applied
Psychology: An International Review, 59(1), 21−39.
Find Out More Icon

http://www.apa.org/helpcenter/work-stress.aspx
Psychology Help Centre of the American Psychological Association, which provides

information on how to cope with stress in the workplace.
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Chong, S. A. (2014, May 16). Work, stress and burnout. The Straits Times, p. A26.
Lai, L. (2014, May 7). One-quarter of workers report high stress levels. The Straits
Times, p. A2.
Heng, J. (2014, March 28). Workplace health problems cost $3.5b a year. The Straits
Times, p. B3.
Grose, J. (2014, March 10). Work-life conflicts not just women’s problem. The Straits
Times, p. B11.
Boon, R. (2014, March 3). Toiling away without sleep is not normal. The Straits Times,
p. B11.
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STUDY UNIT 4
WORK GROUP &
ORGANIZATIONAL ISSUES
PSY201 STUDY UNIT 4
Learning Outcomes

1. define the work group and examine its key features such as roles and norms.
2. analyse group processes such as conflict resolution and decision-making.
3. understand the impact of the workgroup on the employee/organization.
4. define organizational structure and its various dimensions.
5. compare and contrast traditional and non-traditional organizational structures.
6. describe organizational culture and examine its societal influences.
7. define organizational development and evaluate various techniques of
organizational development.
Overview
The first part of this chapter (Topic 1 – Group Processes in Work Organizations) defines
the work group and examines its key features such as roles and norms. It also analyses
basic processes that occur within the work group, such as conformity, cohesiveness
and conflict resolution. Other core functions like group decision-making are
scrutinised as well. The second part of this chapter (Topic 2 – Organizational Structure,
Culture and Development) defines organizational structure and its various dimensions
such as chain of command. It also compares traditional and non-traditional types of
organizational structure. Also examined are the notion of organizational culture and
the various societal forces impinging on it, as well as organizational development
(OD) and different techniques of intervention in OD such as survey feedback.
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Chapter 1 Enhancing Work Groups in the Organization
1.1 Group Processes in Work Organizations
A group is two or more individuals, engaged in social interaction to achieve some

goal. Teams consist of interdependent workers with complementary skills working
towards a shared goal. Within work groups, members play various roles, which are
patterns of behaviour adopted based on expectations held about the function of a
position. Work groups also develop norms or rules to help govern member behaviour.
The process of organizational socialisation refers to the integration of individuals into
work groups and organisations through learning work procedures, work roles, and
organizational and group norms.
Certain basic processes occur in all work groups. One is conformity, the process of
adhering to and following group norms. Another basic process, cohesiveness, is the
degree of attraction among group members. A number of factors, such as group size,
member status, member stability, and member similarity can influence group
cohesiveness.
Two common yet opposing forces that are evident in all groups are cooperation and
competition. Cooperation is critical to coordinating the activities of work group
members. However, social loafing can occur when workers in groups put in less
effort than they would when working alone. Competition can lead to conflict, which
is behaviour by one party that is designed to inhibit the goal attainment of another
party. Conflict can occur at a number of levels within work organizations, taking the
form of intraindividual, interindividual, intragroup, intergroup or
interorganizational conflict.
Conflict can arise from various sources, most notably from a scarcity of desired
resources and from individual and group interdependence. The effect of conflict can
be both positive and negative. It is positive when it motivates workers or stimulates
them to be creative or innovative, and negative when it disrupts group work activities
and social relationships. Managing conflict involves regulating the level of conflict,
resolving it when it is negative and stimulating it when it is positive or productive. A
number of conflict resolution and conflict stimulation strategies are used in
organizations, including accommodation, compromise, collaboration and avoidance.
An important function in work groups is group decision making, which has several
advantages and disadvantages over individual decision making. While group
decision making is slow and conflict-ridden, it can lead to high-quality decisions and
greater member satisfaction with and commitment to the decision. Brainstorming is
a group process generating creative ideas or solutions through a non-critical,
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PSY201 STUDY UNIT 4
nonjudgemental process. A type of breakdown in the effectiveness of decision-making

groups is termed groupthink, which is a concurrence-seeking tendency that overrides
the ability of a cohesive group to make critical decisions. Group polarisation is the
tendency for groups to make more extreme decisions, either more risky or more
cautious, than individuals.
For teams to be effective, careful attention must be given to the appropriateness of the
task, the characteristics of the team members, and organizational support for the team.
The use of self-managed work teams where members work on a complete task,
product, or service, is on the rise.
Key terms
A group consists of two or more individuals engaged in social interaction to achieve

some goal.
A team consists of interdependent workers with complementary skills working

towards a shared goal.
Roles are patterns of behaviour that are adopted based on expectations about the
functions of a position.
Norms are rules that groups adopt governing appropriate and inappropriate
behaviour for members.
Organizational socialisation is the process by which new employees learn group

roles and norms, and develop specific work skills and abilities.
Conformity is the process of following group norms.
Cohesiveness is the degree of attraction among group members.
Social loafing refers to the phenomenon whereby individuals working in groups

exert less effort than when working alone.
Conflict is behaviour by a person or group that is intended to inhibit the goal

attainment of another person or group.
Intraindividual conflict is conflict that occurs when an individual is faced with two
sets of incompatible goals.
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Interindividual conflict is conflict that occurs when two people are striving to
attain their own goals, thus blocking the other’s achievement.
Intragroup conflict is conflict that arises when a person or faction within a group
attempts to achieve a goal that interferes with the group’s goal attainment.
Intergroup conflict is conflict that occurs between two groups trying to attain their
respective goals.
Interorganizational conflict is conflict between organizations with incompatible

goals.
Accommodation is a conflict resolution strategy of making a sacrifice to resolve a

conflict.
Compromise is a conflict resolution strategy in which both parties give up some

part of their goals.
Collaboration is a conflict resolution strategy in which the parties cooperate to

reach a solution that satisfies both.
Avoidance refers to withdrawing from or avoiding a conflict situation.
Brainstorming is a group process generating creative ideas or solutions through a

non-critical and nonjudgemental process.
Groupthink refers to a syndrome characterised by a concurrence-seeking tendency

that overrides the ability of a cohesive group to make critical decisions.
Group polarisation is the tendency for groups to make decisions that are more
extreme than those made by individuals.
Self-managing work teams are teams that have complete responsibility for whole
tasks.
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PSY201 STUDY UNIT 4
Group Processes in Work Organizations

5 golden rules for building a great team [Video file]. (2014, Mar 14). Retrieved from
https://www.youtube.com/watch?v=CYRpK9HBlIY
1. Consider a work group in your current company of which you are a member. What
are the various roles that members play in this work group? What are some of the
norms that are peculiar to this work group?
2. Discuss the ways in which both cohesiveness and conflict can be good or bad for a
work group. Cite specific incidents from your work experience to support your
argument.
3. Examine an occurrence of groupthink in the real world which you are familiar with
(e.g., through the media). Analyse to what extent the eight symptoms of groupthink
can be applied to this case. What steps can a decision-making group take to try to
avoid/reduce this sort of groupthink?
4. What is a self-managing work team? How can organisations use this sort of work
team in an effective way to achieve important work goals? What are some challenges
in setting up such a work team? Provide some examples from the business world to
support your argument.
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PSY201 STUDY UNIT 4
Forsyth, D. R. (2010). Group dynamics (5th ed.). Belmont, CA: Wadsworth.

Liang, D. J., Shaw, J. D., Tsui, A. S., & Tae, Y. P. (2014). A social-structural perspective
on employee-organization relationships and team creativity. Academy of
Management Journal, 57(3), 869−891.
Salas, E., Goodwin, G. F., & Burke, C. S. (Eds.). (2009). Team effectiveness in complex
organizations: Cross-disciplinary perspectives and approaches. New York, NY:
Psychology Press
Warrick, D. D. (2014). What leaders can learn about teamwork and developing high
performance teams from organization development practitioners. OD
Practitioner, 46 (3), 68−-75.
https://ap01.alma.exlibrisgroup.com/view/action/uresolver.do;jsessionid=87D226061E47B1A6B9A98DDAECAA916C.
app02.prod.alma.dc05.hosted.exlibrisgroup.com:1801?operation=resolveService&package_service_id=4389878800021
Find Out More Icon
http://donforsythgroups.wordpress.com/
A group dynamics site designed to accompany Forsyth’s text on Group Dynamics.
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PSY201 STUDY UNIT 4

Kwok, J. (2014, July 16). Doing good is a team effort at this company. The Straits Times,
p. B15.
Boon, R. (2014, June 30). When power play gets in the way of teamwork. The Straits
Times, p. B10.
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1.2 Organizational Structure, Culture and Development
Organizational structure is the arrangement of positions in an organization and the

relationships among them. Organizational structures can be generally classified into
traditional and non-traditional forms. Traditional organizational structures tend to be
stable and rule driven, while non-traditional structures are characterized by their
flexibility, adaptability, and lack of formal authority lines. Important dimensions of
organizational structure are the number of authority levels in an organization, or
chain of command, and the number of workers reporting to a single work supervisor,
or the span of control. Organizations can also be divided by the kinds of tasks per-
formed – a functional structure – or by the types of products produced or customers
served – a divisional structure. Decision-making power can either be concentrated at
the top levels of the organization (centralisation), or dispersed throughout the
organization (decentralisation).
The bureaucracy and the line-staff organization typify the traditional structure. The
bureaucracy is a structure based on authority relationships among organizational
members that operate through a system of formal rules and procedures. The line-staff
organization is a formal structure in which the line executes organizational objectives,
while the staff is designed to support the line. Non-traditional organizational
structures are exemplified by the team organization, a permanent team of competent
workers designed for maximising organizational adaptability, and by the project task
force, a more temporary structure. A matrix organization is a combination of both
product and functional organizational designs. The most recent approaches to
organizational structure are contingency models whereby the most effective type of
structure depends on the fit between structure and the external or internal
environment of the work organization.
Organizational culture refers to the shared values, beliefs, assumptions and patterns
of behaviour in organizations. Organizational culture derives from many sources, can
be stronger in some organizations than in others, and has important influences on
organizational behaviour. Societal/national influences on organizational culture can
be very strong. Recently, a great deal of attention has been given to developing
methods for assessing organizational culture. One method involves the examination
of artefacts of the organization’s culture such as its symbols, stories and myths.
Another method involves the use of survey instruments such as the Organizational
Culture Profile and the Organizational Practices Scale.
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PSY201 STUDY UNIT 4
Organizational development (OD) is the process of preparing for and managing

change in organizations. OD programmes use a consultant who is commonly called a
change agent. OD programmes usually occur in phases. One model for such a
programme is action research, which involves collecting data, diagnosing
organizational problems, and developing strategies to take action to solve them.
A variety of interventions are used in OD programmes, including survey feedback, a

technique of using data about organizational members' feelings and concerns as the
basis for planned change; t-groups or sensitivity training, a process of increasing
workers' awareness of their own and other members' behaviour; team building, the
development of teams of workers to focus on ways to improve group performance;
process consultation, a long-term method of helping an organization to develop
problem-solving strategies; management by objectives (MBO), a goal-setting
technique designed to increase worker commitment to the attainment of personal and
organizational goals; and quality circles which are groups of employees who meet
regularly to discuss quality-related work problems. Evaluation of OD programmes
indicates that they can be effective for improving certain aspects of organizational
effectiveness, although neither their implementation nor their evaluation is easy.
Key terms
Organizational structure is the arrangements of positions in an organization and

authority and responsibility relationships among them.
Chain of command refers to the number of authority levels in an organization.
Span of control refers to the number of workers who must report to a single
supervisor.
Functional structure is an organizational structure that divides the organization

into departments based on the functions or tasks they perform.
Divisional structure is an organizational structure that divides the organization

according to types of products or customers.
Centralisation refers to the degree to which decision-making power rests at the

upper levels of the organizational hierarchy.
Decentralisation refers to the process of taking the decision-making authority away

from the top levels of the organization and distributing it to lower levels.
The bureaucracy is a traditional organizational structure typified by a well-defined

authority hierarchy and strict rules governing work behaviour.
SU4-9
PSY201 STUDY UNIT 4
The line-staff organization is a traditional organizational structure composed of

line and staff.
Line is the group of employees who achieve the goals of the organization.
Staff is the group of employees who support the line.
The team organization is a non-traditional organizational structure consisting of a

team of members organized around a particular project or product.
The project task force is a non-traditional organization of workers who are

assembled temporarily to complete a specific job or project.
The matrix organization is a non-traditional organizational design that blends

functional and divisional (product) structures.
Organizational culture is defined as the shared values, beliefs, assumptions, and

patterns of behaviour within an organization.
Organizational development (OD) is the process of assisting organizations in

preparing for and managing change.
Change agent is a name for an OD practitioner, referring to the person’s role as a

catalyst who helps organizations through the process of change.
Action research is an OD methodological model that applies social science research

methods to collecting relevant organizational data that are used for solving
organizational problems.
Survey feedback is an OD technique whereby the consultant works with the

organization to develop and administer a survey instrument to collect data that are
fed back to organizational members and used as the starting point for change.
T-groups (Sensitivity training) is an OD technique that uses unstructured group

interaction to assist workers in achieving insight into their own motivations and
behaviour patterns in dealing with other organizational members.
Team building is an OD technique in which teams of workers discuss how to

improve team performance by analysing group interaction.
Process consultation is an OD technique in which a consultant helps a client-

organization study its problems objectively and learn to solve them.
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Management by objectives (MBO) is a goal-setting OD technique in which

supervisors and subordinates jointly set performance goals. At the end of the goal
period, goal attainment is evaluated and new goals are set.
Quality circles are small groups of volunteer employees from the same work area
who meet regularly to solve work-related problems.
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PSY201 STUDY UNIT 4
Organizational Structure, Culture & Development

Top 10 tips for change management communication [Video file]. (2015, Jun 19). Retrieved from
https://www.youtube.com/watch?v=2p92KRbatxs&list=PLGyDZCG2isqAIox7RgrN2KojkSv
Uri3hv&index=22
1. Consider a past or current organization which you are familiar with. Examine the
structure of this organization (e.g., traditional vs non-traditional) as well as its key
dimensions (e.g., chain of command, span of control). Describe the culture of this
organization (e.g., shared values, beliefs).
2. Discuss how the ethos and fabric of a society (e.g., individualistic culture of the
West versus collectivistic culture of the East) can influence the organizational culture
of a company operating in that particular society (e.g., American company in USA
versus Japanese company in Japan).
3. Imagine you are an organizational consultant helping an SME (small & medium
size enterprise) in Singapore to modernise its work processes. What intervention
techniques would you use in this organisational development (OD) project? What
are some challenges in carrying out this OD project?
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PSY201 STUDY UNIT 4

Darling, J. R. (2009). Organization development in an era of socioeconomic change: A
focus on the key to successful management leadership. Organization
Development Journal, 27 (2), 9−-26.
Heugens, P. P., & Lander, M. W. (2009). Structure! Agency! (and other quarrels): A
meta-analysis of institutional theories of organization. Academy of Management
Journal, 52(1), 61−85.
Hofstede, G. (2010). Cultures and organizations: Software of the mind: Intercultural

cooperation and its importance for survival. New York: McGraw-Hill.
Mohrman, S. A., & Edward, E. L. (2012). Generating knowledge that drives change.
Academy of Management Perspectives, 26 (1), 41−-51.
Schein, E. H. (2010). Organizational culture and leadership. San Francisco, CA: Jossey-
Bass.
http://primo.sim.edu.sg/eresources/login.aspx?returnToUrl=%3Fqurl%3Dhttp%3A%2F%2Fwww.books24x7.com%2F
marc.asp%3Fbookid%3D36500
Find Out More Icon

http://www.odnetwork.org
The OD Network site. A professional network of OD practitioners.
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PSY201 STUDY UNIT 4

Cultivate a ‘challenge culture’ on risk, bosses urged. (2014, September 4). The Straits
Times, p. B12.
Cheng, W. (2014, August 27). Capitalism is dead, long live capitalism! The Straits
Times, p. A18.
Boon, R. (2014, August 11). Starting first day at work on right foot. The Straits Times,
p. B10.
Mahbubani, K. (2014, August 9). Big Idea No. 7: Be Bold. The Straits Times, p. A34.
Velloor, R. (2014, April 27). Transforming a company – by design. The Sunday Times,
p. 47.
SU4-14

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PSY201

STUDY GUIDE (5CU)

Head of Programme : Dr Emily Ortega

Course Developer(s) : Dr Ng Aik Kwang

Production : Educational Technology & Production Team

© 2018 Singapore University of Social Sciences. All rights reserved.

No part of this material may be reproduced in any form or by any means

Educational Technology & Production

2. Course Description and Aims .......................................................................................1

4. Learning Material ............................................................................................................3

5. Assessment Overview ....................................................................................................4

6. Course Schedule ..............................................................................................................5

7. Learning Mode ................................................................................................................5

WHAT IS INDUSTRIAL/ORGANIZATIONAL PSYCHOLOGY

Learning Outcomes........................................................................................................ SU1-1

Overview ......................................................................................................................... SU1-1

Chapter 1 Definition, History and Research Methodology .................................... SU1-2

1.1 Introduction: Definitions and History ................................................................. SU1-2

Additional Non-Compulsory Readings .................................................................... SU1-5

Find out more ................................................................................................................ SU1-5

Local & International News ......................................................................................... SU1-6

1.2 Research Methods in I/O Psychology .................................................................. SU1-7

Additional Non-Compulsory Readings .................................................................. SU1-12

Find out more .............................................................................................................. SU1-12

Local & International News ....................................................................................... SU1-13

HR & PERSONNEL ISSUES

Learning Outcomes........................................................................................................ SU2-1

Overview ......................................................................................................................... SU2-1

Chapter 1 From Job Analysis to Employee Recruitment ......................................... SU2-2

1.1 Job Analysis .............................................................................................................. SU2-2

Additional Non-Compulsory Readings .................................................................... SU2-6

Find out more ................................................................................................................ SU2-6

Local & International News ......................................................................................... SU2-7

1.2 Employee Recruitment ........................................................................................... SU2-8

Additional Non-Compulsory Readings .................................................................. SU2-11

Find out more .............................................................................................................. SU2-11

Local & International News ....................................................................................... SU2-12

Overview ....................................................................................................................... SU2-13

Chapter 2 Selecting Employees and Evaluating Their Performance .................... SU2-14

2.1 Assessing/Selecting Employees .......................................................................... SU2-14

Additional Non-Compulsory Readings .................................................................. SU2-18

Find out more .............................................................................................................. SU2-18

Local & International News ....................................................................................... SU2-19

2.2 Evaluating Employee Performance ..................................................................... SU2-20

Additional Non-Compulsory Readings .................................................................. SU2-25

Find out more .............................................................................................................. SU2-25

Local & International News ....................................................................................... SU2-26

DEVELOPING EMPLOYEES AT WORK

Learning Outcomes........................................................................................................ SU3-1

Overview ......................................................................................................................... SU3-1

Chapter 1 Motivating and Leading Employees ......................................................... SU3-2

1.1 Motivation in the Organization ............................................................................. SU3-2

Additional Non-Compulsory Readings .................................................................... SU3-7

Find out more ................................................................................................................ SU3-7

Local & International News ......................................................................................... SU3-8

1.2 Leadership in the Organization ............................................................................ SU3-9

Additional Non-Compulsory Readings .................................................................. SU3-14

Find out more .............................................................................................................. SU3-14

Local & International News ....................................................................................... SU3-15

Overview ....................................................................................................................... SU3-16

2.1 Job Satisfaction and Positive Employee Attitudes/Behaviours ....................... SU3-17

Additional Non-Compulsory Readings .................................................................. SU3-21

Find out more .............................................................................................................. SU3-21