LESSON 6 : Evaluating Selection Techniques and
Decisions
Reliability
- The extent to which a score from a test or from
an evaluation is consistent and free from error.
Test-Retest Reliability
- The extent to which repeated administration of
the same test will achieve similar results.
- Temporal stability: The consistency of test
scores across time.
Alternate-Forms Reliability
- The extent to which two forms of the same test
are similar.
- Counterbalancing:
A method of controlling for order
effects by giving half of a sample Test
A first, followed by Test B, and giving the
other half of the sample Test B first,
followed by Test A.
- Form stability:
The extent to which the scores on two
forms of a test are similar.
Internal Reliability
- The extent to which similar items are answered
in similar ways is referred to as internal
consistency and measures item stability.
- Item stability:
The extent to which responses to the
same test items are consistent.
- Item homogeneity:
The extent to which test items measure
the same construct.
Three terms that refer to the method used to
determine internal consistency:
- Kuder-Richardson Formula 20 (K-R
20): A statistic used to
determine internal reliability of tests
that use items with dichotomous
answers (yes/no, true/false).
- Spearman-Brown prophecy formula:
Used to correct reliability
coefficients resulting from split-half
methods
- Split-half method: A form of internal
reliability in which the consistency of
item responses is determined by
comparing scores on half of the items
with scores on the other half of the
items.
- Coefficient alpha: A statistic used to
determine internal reliability of tests that
use interval or ratio scales.
Scorer Reliability
- The extent to which two people scoring a test
agree on the test score, or the extent to
which a test is scored correctly.
- When human judgment of performance is
involved, scorer reliability is discussed in terms
of interrater reliability.
Validity
- The degree to which inferences from test scores
are justified by the evidence.
Content Validity
- The extent to which tests or test items sample
the content that they are supposed to
measure.
Criterion Validity
- The extent to which a test score is related to
some measure of job performance.
- Concurrent validity:
A form of criterion validity that
correlates test scores with measures
of job performance for employees
currently working for an organization.
- Predictive validity:
A form of criterion validity in which test
scores of applicants are compared at
a later date with a measure of job
performance.
 - Restricted range:
A narrow range of performance scores
that makes it difficult to obtain a
significant validity coefficient.
- Validity generalization (VG):
The extent to which inferences from
test scores from one organization can
be applied to another organization.
Construct Validity
- The extent to which a test actually measures the
construct that it purports to measure.
- Known-group validity:
A form of validity in which test scores
from two contrasting groups “known”
to differ on a construct are compared.
Face Validity
- The extent to which a test appears to be valid.
- Barnum statements:
Statements, such as those used in
astrological forecasts, that are so
general that they can be true of
almost anyone.
- (3) there are plenty of current employees who
are not performing well, thus there is room for
improvement
To use the Taylor-Russell tables, three pieces of
information must be obtained.
● Criterion validity coefficient
● Selection ratio
● Base rate
Proportion of Correct Decisions
- Proportion of correct decisions:
A utility method that compares the
percentage of times a selection decision
was accurate with the percentage of
successful employees.

Computer-adaptive testing (CAT)

- A type of test taken on a computer in which the
computer adapts the difficulty level of
questions asked to the test taker’s success
in answering previous questions.

Establishing the Usefulness of a Selection Device

Lawshe Tables
- Lawshe tables:
Taylor-Russell Tables
Tables that use the base rate, test
- Taylor-Russell tables are designed to estimate
validity, and applicant percentile on a
the percentage of future employees who will be
test to determine the probability of future
successful on the job if an organization uses a
success for that applicant.
particular test.
● Validity coefficient
- The philosophy behind the Taylor-Russell tables
● Base rate
is that a test will be useful to an organization if:
● Applicant's test score
- (1) the test is valid,
- (2) the organization can be selective in its hiring
because it has more applicants than openings,
and
 ● Mean standardized predictor score of selected
applicants (m)

Brogden-Cronbach-Gleser Utility Formula

- Another way to determine the value of a test in a
given situation is by computing the amount of
money an organization would save if it used the
test to select employees.
- Fortunately, I/O psychologists have devised a
fairly simple utility formula to estimate the
monetary savings to an organization. To use
this formula, five items of information must be
known.
Brogden-Cronbach-Gleser Utility Formula
● Number of employees hired per year(n).
● Average tenure (t) Determining the Fairness of a Test
● Test validity (r)
● Standard deviation of performance in dollars Measurement Bias
(SDy) - Group differences in test scores that are
unrelated to the construct being measured.
 - Adverse impact:
An employment practice that results in
members of a protected class being
negatively affected at a higher rate than
members of the majority class. Adverse
impact is usually determined by the four-
fifths rule.
Predictive Bias
- A situation in which the predicted level of job
success falsely favors one group over another.
- Single-group validity:
The characteristic of a test that
significantly predicts a criterion for one
class of people but not for another.
- Differential validity:
The characteristic of a test that
significantly predicts a criterion for two
groups, such as both minorities and non-
minorities, but predicts significantly
better for one of the two groups.
Making the Hiring Decision
Multiple regression
- A statistical procedure in which the scores from
more than one criterion-valid test are weighted
according to how well each test score predicts
the criterion.
Unadjusted Top-Down Selection
- With top-down selection, applicants are rank-
ordered on the basis of their test scores.
- Selection is then made by starting with the
highest score and moving down until all
openings have been filled.
Compensatory approach
- A method of making selection decisions in which
a high score on one test can compensate for a
low score on another test. For example, a high
GPA might compensate for a low GRE score.
Rule of three
- A variation on top-down selection in which the
names of the top three applicants are given to a
hiring authority who can then select any of the
three.
Passing Score
- The minimum test score that an applicant must
achieve to be considered for hire.
Multiple-cutoff approach
- A selection strategy in which applicants must
meet or exceed the passing score on more than
one selection test.
Multiple-hurdle approach
- Selection practice of administering one test at a
time so that applicants must pass that test
before being allowed to take the next test.
Banding
- A statistical technique based on the standard
error of measurement that allows similar test
scores to be grouped.
- Standard error of measurement (SEM)
The number of points that a test score
could be off due to test unreliability.
LESSON 7: EVALUATING EMPLOYEE
PERFORMANCE
Step 1: Determine the Reason for Evaluating
Employee Performance
 ● Providing Employee Training and
Feedback
● Determining Salary Increases
● Making Promotion Decisions
● Making Termination Decisions
● Conducting Personnel Research
Step 2: Identify Environmental and Cultural
Limitations
● The second step in the performance appraisal
process is to identify the environmental and
cultural factors that could affect the system.
● For example, if supervisors are highly
overworked, an elaborate, time-consuming
performance appraisal system will not be
successful.
● In an environment in which there is no money
available for merit pay, developing a numerically
complex system will become frustrating, and the
results of the evaluation may not be taken
seriously.
● In an environment in which employees are very
cohesive, the use of peer ratings might reduce
the cohesiveness.
Step 3: Determine Who Will Evaluate
Performance
● 360-degree feedback:
A performance appraisal system in which
feedback is obtained from multiple sources such as
supervisors, subordinates, and
peers.
● Multiple-source feedback:
A performance appraisal strategy in which an
employee receives feedback from sources (e.g., clients,
subordinates, peers) other than just his or her
supervisor.
● Supervisors - By far the most common source
of performance appraisal is the supervisor
rating. Though supervisors may not see every
minute of an employee’s behavior, they do see
the end result.
● Peers - Whereas supervisors see the results of
an employee’s efforts, peers often see the
actual behavior.
● Subordinates - Subordinate feedback (also
called upward feedback) is an important
component of 360-degree feedback, as
subordinates can provide a very different view
about a supervisor’s behavior.
● Customers - Organizations also seek customer
feedback in the form of secret shoppers—
current customers who have been enlisted by a
company to periodically evaluate the service
they receive.
● Self-Appraisal - Allowing an employee to
evaluate her own behavior and performance is a
technique used by an increasing number of
organizations.
Step 4: Select the Best Appraisal Methods to
Accomplish Your Goals
● Criteria are ways of describing employee
success.
● Prior to developing the actual performance
appraisal instrument, two important decisions
must be made: the focus of the performance
appraisal dimensions and whether to use
rankings or ratings.
Decision 1: Focus of the Appraisal Dimensions
● Trait-Focused Performance Dimensions - A
trait-focused system concentrates on
 such employee attributes as dependability, Decision 3: Use of Employee Comparisons,
honesty, and courtesy. Objective Measures, or Ratings

● Competency-Focused Performance Employee Comparisons

Dimensions - Rather than concentrating on
an employee’s traits, competency-focused ● Rank order:
dimensions concentrate on the employee’s A method of performance appraisal in
knowledge, skills, and abilities. which employees are
ranked from best to worst.
● Task-Focused Performance Dimensions -
Task-focused dimensions are organized
by the similarity of tasks that are performed.

● Goal-Focused Performance Dimensions -

The fourth type of performance
dimension is to organize the appraisal on the
basis of goals to be accomplished by the
employee.

● ** Contextual Performance - the effort an

employee makes to get along with peers,
improve the organization, and perform tasks that
are needed but are not necessarily an
official part of the employee’s job description.

Decision 2: Should Dimensions be Weighted?

● Once the type of dimension has been

determined, the next decision is whether the
dimensions should be weighted so that some
are more important than others.

● Weighting dimensions makes good

philosophical sense, as some dimensions might
be more important to an organization than
others.

● Though differential weighting of dimensions

makes sense and has some advantages, many
organizations choose to weight all performance
dimensions equally because it is
administratively easier to compute and to
explain to employees.
● Paired comparison:
A form of ranking in which a group of
employees to be ranked are compared
one pair at a time.

Ratings of Performance
● Forced distribution method:
A performance appraisal method in
which a predetermined percentage of
employees are placed into a number of
performance categories.
Objective Measures
● Quantity:
A type of objective criterion used to
measure job performance by counting
the number of relevant job behaviors that
occur.
● Quality:
A type of objective criterion used to
measure job performance by comparing
a job behavior with a standard.
● Attendance:
Attendance can be separated into three
distinct criteria: absenteeism, tardiness, and
tenure.
● Safety:
Employees who follow safety rules and
who have no occupational accidents do not cost
an organization as much money as those who
break rules, equipment, and possibly their own
bodies.
● Graphic rating scale
- A method of performance appraisal that
involves rating employee performance
on an interval or ratio scale.
● Behavioral Checklist
- This list is used to force the supervisor to
concentrate on the relevant behaviors
that fall under a dimension.
● Comparison with Other Employees
- Supervisors can rate performance on a
dimension by comparing the employee’s
level of performance with that of other
employees
 Ratings of Performance

Frequency of Desired Behaviors:

- Behaviors can be rated based on the frequency
with which they occur.

Extent to Which Organizational Expectations are

Met:
- Perhaps the best approach is to rate employees
on the extent to which their behavior meets the
expectations of the organization. Such an
approach allows for high levels of feedback and
can be applied to most types of employee
behavior.

Examples of three scales to measure behavior

Examples of behavioral anchored rating scale

 Step 5: Train Raters

● Frame-of-reference training:
- A method of training raters in which the
rater is provided with job-related
information, a chance to practice ratings,
examples of ratings made by experts,
Example of forced choice rating scale
and the rationale behind the expert
ratings.

Step 6: Observe and Document Performance

Critical incidents:
- A method of performance appraisal in which the
supervisor records employee behaviors that
were observed on the job and rates the
employee on the basis of that record.

Documentation is important for four reasons

First,
- documentation forces a supervisor to focus
Example of a Mixed standard Scale on employee behaviors rather than traits and
provides behavioral examples to use when
reviewing performance ratings with employees.

Second, documentation helps supervisors recall

behaviors when they are evaluating performance.

Supervisors tend to remember the following:
● First impressions.
● Recent Behaviors
● Unusual or extreme behaviors.
● Behavior consistent with the supervisor’s
opinion.
Third, documentation provides examples to use when
reviewing performance ratings with employees.
Fourth, documentation helps an organization defend
against legal actions taken against it by an employee
who was terminated or denied a raise or promotion.
Step 7: Evaluate Performance
Obtaining and Reviewing Objective Data:
- When it is time to appraise an employee’s
performance, a supervisor should first obtain
and review the objective data relevant to the
employee’s behavior.
Reading Critical-Incident Logs:
- After obtaining objective data, the supervisor
should go back and read all of the critical
incidents written for an employee.
Completing the Rating Form:
- Once critical-incident logs have been read and
objective data reviewed, the supervisor is ready
to assign performance appraisal ratings.
EVALUATE PERFORMANCE
● Cognitive Processing of Observed Behavior
● Emotional State
● Bias
Step 7: Evaluate Performance
Obtaining and Reviewing Objective Data:
- When it is time to appraise an employee’s
performance, a supervisor should first obtain
and review the objective data relevant to the
employee’s behavior.
Reading Critical-Incident Logs:
- After obtaining objective data, the supervisor
should go back and read all of the critical
incidents written for an employee.
Completing the Rating Form:
- Once critical-incident logs have been read and
objective data reviewed, the supervisor is ready
to assign performance appraisal ratings.
Common Rating Errors
Distribution errors:
- Rating errors in which a rater will use only a
certain part of a rating scale when evaluating
employee performance.
Leniency error:
-  A type of rating error in which a rater
consistently gives all employees high ratings,
regardless of their actual levels of performance
- Central tendency error:
 - A type of rating error in which a rater
consistently rates all employees in the middle of
the scale, regardless of their actual levels of
performance
- Strictness error:
- A type of rating error in which a rater
consistently gives all employees low ratings,
regardless of their actual levels of performance.
- ●
- Halo Errors:
-  A halo error occurs when a rater allows
either a single attribute or an overall
impression of an individual to affect the
ratings that she makes on each relevant
job dimension.
- Proximity Errors:
-  Proximity errors occur when a rating
made on one dimension affects the rating
made on the dimension that immediately
follows it on the rating scale.
- Contrast Errors: 
- The performance rating one person
receives can be influenced by the
performance of a previously evaluated
person.
Low Reliability Across Raters:
- raters often commit the rating errors previously
discussed raters often have very different
standards and ideas about the ideal employee.
● Sampling Problems
- Recency effect
- Infrequent Observation
Step 8: Communicate Appraisal Results to
Employees
● Perhaps the most important use of
performance-evaluation data is to provide
feedback to the employee and assess her
strengths and weaknesses so that further
training can be implemented.
Normally, in most organizations a supervisor
spends a few minutes with employees each
year to tell them about the scores they received
during the most recent evaluation period.
● Furthermore, seldom does evaluating
employees benefit the supervisor. The best
scenario is to hear no complaints, and the worst
scenario is a lawsuit.
● Research suggests that certain techniques can
be used to make the performance appraisal
interview more effective: time, scheduling, and
preparation.
Step 8: Communicate Appraisal Results to
Employees
Prior to the Interview
Allocating Time:
- Both the supervisor and the employee must
have time to prepare for the review interview.
Scheduling the Interview:
- The interview location should be in a neutral
place that ensures privacy and allows the
supervisor and the employee to face one
another without a desk between them as a
communication barrier.
Preparing for the Interview:
- While preparing for the interview, the supervisor
should review the ratings she has assigned to
the employee and the reasons for those ratings.
Meanwhile, the employee should rate her own
 performance using the same format as the
supervisor
During the Interview
● the role of performance appraisal—that making
decisions about salary increases and
terminations is not its only purpose;
● how the performance appraisal was conducted;
● how the evaluation process was accomplished;
● the expectation that the appraisal interview will
be interactive; and
● the goal of understanding and improving
performance.
Step 9: Make Personnel Decisions
● As such, performance ratings should be
analyzed each rating period to determine if there
are gender, race/ethnicity, or age differences.
● If there are such differences, the organization
should determine whether the differences are
justified by factors such as experience or if the
differences are due to discrimination.
● Likewise, the personnel decisions that are
based on the performance appraisal ratings
should be analyzed to ensure discrimination
does not occur in the raises, bonuses,
promotions, and terminations that result from
the performance ratings.

Employment-at-Will Doctrine:

- In the private sector, the employment-at-will

doctrine in most states allows employers
freedom to fire an employee without a reason—
at will. In the public sector, an employee can be
fired only for cause.

Legal Reasons for Terminating Employees

● Probationary Period
● Violation of Company Rules
● Inability to Perform
● Reduction in Force (Layoff)

LESSON 8:Designing and Evaluating Training

Systems
Step 10: Monitor the Legality and Fairness of the
Appraisal System Training

● Performance appraisal systems are subject to ● A planned effort by an organization to facilitate

the same legal standards as are employment the learning of job-related behavior on the part
tests and other employment decisions. of its employees.
Needs Analysis
● The process of determining the training needs of
an organization.
THE TRAINING NEEDS ASSEESSMENT PROCESS
Organizational Analysis
● The process of determining the organizational
factors that will either facilitate or inhibit training
effectiveness.
Task Analysis
● The purpose of a task analysis is to use the job
analysis methods to identify the tasks performed
by each employee, the conditions under which
these tasks are performed, and the
competencies (knowledge, skills, abilities)
needed to perform the tasks under the identified
conditions.
Person Analysis
● The process of identifying the employees who
need training and determining the areas in
which each individual employee needs to be
trained.
Performance Appraisal Scores
● Low ratings on a particular dimension for most
employees may indicate that additional training
in that dimension is needed.
● Conversely, if most employees score high on a
particular dimension, relatively little training time
is needed.
Surveys
● First, they eliminate the problems of
performance rating errors, which were
discussed previously.
● Second, employees often know their own
strengths and weaknesses best. Thus, to
determine what employees need,ask them.
● Finally, training needs can be determined with
surveys.
NOTE:The main disadvantages of surveys are that
employees may not be honest and the organization
may not be able to afford the training suggested by the
employees.
Interviews
● Interviews are not used as extensively as
surveys, but they can yield even more in-depth
answers to questions about training needs.
 ● NOTE: The main advantage of interviews is that
employee feelings and attitudes are revealed
more clearly than with the survey approach
. ●
● NOTE: The main disadvantage of interviews is
that interview data are often difficult to
quantify and analyze.
Skill and Knowledge Tests
● If all employees score poorly on these tests,
training across the organization is indicated.
● If only a few employees score poorly, they are
singled out for individual training.
● The greatest problem with using testing as a
method to determine training needs is that
relatively few tests are available for this
purpose.
● An organization that wants to use this method
will probably have to construct its own tests, and
proper test construction is time-consuming and
expensive.
Critical Incidents
● Although not a commonly used method, it will
be discussed here because it is relatively easy
to use, especially if a proper job analysis is
available.
● To use this technique for needs assessment,
the critical incidents are sorted into dimensions
and separated into examples of good and poor
performance.
● Dimensions with many examples of poor
performance are considered to be areas in
which many employees are performing poorly
and in which additional training is indicated.
Setting Goals for Training
● Training goals and objectives should
concretely state the following (Mager, 1997):
What learners are expected to do
● The conditions under which they are expected
to do it
● The level at which they are expected to do it
Using Lectures to Provide Knowledge
● Lectures are a good training source if the goal is
for employees to obtain knowledge, but unless
they are accompanied by such techniques as
simulations and role-plays, they are not usually
effective at teaching skills.
Using Case Studies to Apply Knowledge
Case study:
- A training technique in which employees,
usually in a group, are presented with a real or
hypothetical workplace problem and are asked
to propose the best solution.
Living case :
- A case study based on a real situation rather
than a hypothetical one.
Using Simulation Exercises to Practice New Skills
Simulation:
● An exercise designed to place an applicant in a
situation that is similar to the one that will be
encountered on the job.
Practicing Interpersonal Skills Through Role-Play
Role-play
- :A training technique in which employees act out
simulated roles.
Increasing Interpersonal Skills Through Behavior
Modeling
Behavior modeling
- A training technique in which employees
observe correct behavior, practice that behavior,
and then receive feedback about their
performance.
Delivering the Training Program
Conducting Classroom Training
Initial Decisions
● Who will conduct the training
● Where will the training be held
● How long should the training be
Preparing for Classroom Training
● Adjusting for the Audience
Delivering the Training Program
● Introducing the Trainer and the Training Session
● Using Icebreakers and Energizers
● Delivering the Presentation
Asynchronous Distance Learning
● Interactive video
● Programmed instruction
Synchronous Distance Learning
● Webinar
● Webcasts
● Blog
●
● Wiki
● Listserv
Conducting On-the-Job Training
- Learning by Modeling Others
● Characteristics of the Model
● Characteristics of the Observer
- Learning Through Job Rotations
● Cross-Training
- Learning Through Apprentice Training
- Learning Through Coaching and Mentoring
● Pass-through programs
● Professional coaches
● Mentoring
Motivating Employees to Learn During Training
● Providing Incentives for Learning
Skill-based pay:
Compensating an employee who participates in a
training program designed to increase a particular job-
related skill.
Interest:
Employees will be more motivated to learn when
the training program is interesting.
Feedback:
Providing employees with specific information about
how well they are performing a task or series of tasks.
● Ensuring Transfer of Training
❖ Use Realistic Training Programs
❖ Have Opportunities to Practice Work-Related
Behavior During Training
❖ Provide Employees with the Opportunity to
Apply Their Training
❖ Ensure Management is Supportive of the
Training
 ❖ Have Employees Set Goals

Evaluation of Training Results

Research Designs for Evaluation

Pretest
- A measure of job performance or knowledge
taken before the implementation of a training
program.
Posttest
- A measure of job performance or knowledge
taken after a training program has been
completed.
Solomon four-groups design
- An extensive method of evaluating the
effectiveness of training with the use of pretests,
posttests, and control groups.
Evaluation Criteria
PERSONALITY- Conscientiousness is the best
personality predictor of work performance,
organizational citizenship
behavior (OCB), and academic performance; stability
is most associated with salary and setting high
goals; and extraversion is most highly correlated with
the number of promotions received.
Organizational citizenship behaviors (OCBs)
Behaviors that are not part of an employee’s job
but which make the organization a better place to work
(e.g., helping others, staying late).
Self-esteem - The extent to which a person views him
or herself as a valuable and worthy individual.

★ Content Validity Consistency theory - Korman’s theory that employees

★ Employee Reactions will be motivated to perform at levels consistent with
★ Employee Learning their levels of self-esteem.
★ Application of Training
★ Business Impact Chronic self-esteem The positive or negative way
★ Return on Investment in which a person views himself or herself as a
whole.
LESSON 9: EMPLOYEE MOTIVATION, Situational self-esteem The positive or negative way
SATISFACTION AND COMMITMENT in which a person views him or herself in a particular
situation.
MOTIVATION - The force that drives an employee Socially influenced self-esteem The positive or
to perform well. negative way in which a person views him or herself
based on the expectations of others.

Self-Esteem
3 Workshops To increase self-esteem, employees can
attend workshops in which they are given insights into
their strengths.

Experience with Success It is thought that this

success increases self-esteem, which should increase
performance, which furtherincreases self-esteem, which
further increases performance, and so
on.
Self-fulfilling prophecy The idea that people behave
in ways consistent with their self-image.
Galatea effect When high self-expectations result in
higher levels of performance.
SELF ESTEEM
Intrinsic motivation Work motivation in the absence of
such external factors as pay, promotion, and
coworkers.
Extrinsic motivation Work motivation that arises from
such nonpersonal factors as pay, coworkers, and
opportunities for advancement.
Work Preference Inventory (WPI) A measure of an
individual’s orientation toward intrinsic versus extrinsic
motivation.
Needs for Achievement and Power
Need for achievement According to trait theory,
the extent to which a person desires to be successful.
Need for affiliation The extent to which a person
desires to be around other people.
Need for power According to trait theory, the extent
to which a person desires to be in control of other
people.
SELF-REGULATION A theory that employees can be
motivated by monitoring their own progress toward the
goals they set and adjusting their behavior to reach
those goals.
Have the Employee's Values and
Expectations Been Met?
Job Expectations
Realistic job preview (RJP) A method of recruitment
in which job applicants are told both the positive and
the negative aspects of a job.
Job Characteristics
Job characteristics theory
The theory proposed by Hackman and Oldham that
suggests that certain characteristics of a job will make
the job more or less satisfying, depending on the
particular needs of the
worker.
According to job characteristics theory, jobs will have
motivation potential if they allow employees to use a
variety of skills (skill variety) and to connect their efforts
to an outcome (task identification) that has
meaning, is useful, or is appreciated by coworkers as
well as by others in society (task significance)
NEEDS, VALUES, AND WANTS
Maslow's Needs Hierarchy:
Biological Needs, Safety Needs, Social Needs, Ego
Needs, and Self-Actualization Needs
ERG Theory: Existence, Relatedness, and Growth
Two-Factor Theory: Hygiene factors and
Motivators
Goal setting
Goal setting A method of increasing performance in
which employees are given
specific performance goals to aim for.
Goals should be S.M.A.R.T:
Specific
Measurable
Attainable
Relevant
Time-bound
Are employees rewarded for achieving
goals?
Operant conditioning A type of learning based on the
idea that humans learn to behave in ways that will
result in favorable outcomes and learn not to behave in
ways that result in unfavorable outcomes.
6 FACTORS TO BE CONSIDERED IN DETERMINING
THE EFFECTIVENESS OF INCENTIVE PROGRAMS
1. Timing of the incentive
2. Contingency of the consequences
3. Type of incentive used
4. Use of individual-based versus group-based
incentives
5. Use of positive incentives (rewards) versus
negative incentives (punishment)
6. Fairness of the reward system (equity)
Timing of the Incentive
Research indicates that a reinforcer or a punisher is
most effective if it occurs soon after the performance of
the behavior.
Unfortunately, if the timing of the incentive is too long,
the effectiveness of the incentive to improve
performance will be hindered.
Contingency of Consequences
If it is not possible to immediately reward or punish a
behavior, it should at least be made clear that the
employee understands the behaviors that brought
reward or punishment.
Type of Incentive Used
Premack Principle The idea that reinforcement is
relative both within an individual and between
individuals.
Reinforcement hierarchy A rank-ordered list of
reinforcers for an individual.
TYPES OF INCENTIVE USED
INDIVIDUAL VERSUS GROUP INCENTIVES
Rewards versus Punishment
Rather than rewarding desired behaviors, we can
change employee performance by punishing undesired
behaviors. That is, instead of rewarding employees who
do not miss work, we punish those who do. Instead of
providing monetary incentives for high levels of
performance, we suspend employees for low levels of
performance.
Though many psychologists advise against
punishment, it is common, and managers generally
believe it to be effective.
Expectancy Theory
Vroom’s theory that motivation is a function of
expectancy, instrumentality, and
valence.
 Expectancy (E): The perceived relationship
between the amount of effort an employee puts
in and the resulting outcome.
 Instrumentality (I): The extent to which the
outcome of a worker’s performance, if noticed,
results in a particular consequence.
 Valence (V): The extent to which an employee
values a particular consequence.

Fairness of Reward System
Equity theory A theory of job satisfaction stating that
employees will be satisfied if their ratio of effort to
reward is similar to that of other employees.
 Inputs In equity theory, the elements that
employees put into their jobs.
 Outputs In equity theory, what employees get
from their jobs.
Input/output ratio The ratio of how much employees
believe they put into their jobs to how much they
believe they get from their jobs.
Job Satisfaction & Commitment
What Causes Employees to be Satisfied with and
Committed to their Jobs?
Affective commitment The extent to which an
employee wants to remain with an organization and
cares about the organization.
Continuance commitment The extent to which
employees believe they must remain with an
organization due to the time, expense, and effort they
have already put into the organization.
Normative commitment The extent to which
employees feel an obligation to remain with an
organization.
What Individual Differences Affect Job
Satisfaction?
Other factors that can influence employee
satisfaction
 Are Employees Satisfied with Other Aspects of
Their Lives?
 Are Employees’ Job Expectations Being Met?
 Is the Employee a Good Fit with the Job and the
Organization?
 Are the Tasks Enjoyable?
 Do Employees Enjoy Working with Supervisors
and Coworkers?
 Are Coworkers Outwardly Unhappy?
Are Rewards and Resources Given Equitably?
 Organizational justice A theory that postulates
that if employees perceive they are being
treated fairly, they will be more likely to be
satisfied with their jobs and motivated to do well.
 Distributive justice The perceived fairness of
the decisions made in an organization.
 Procedural justice The perceived fairness of
the methods used by an organization to make
decisions.
 Interactional justice The perceived fairness of
the interpersonal treatment that employees
receive in an organization.
Is There a Chance for Growth and Challenge?
 Job rotation A system in which employees are
given the opportunity to perform several
different jobs in an organization.
 Job enlargement A system in which employees
are given more tasks to perform at the same
time.
 Job enrichment A system in which employees
are given more responsibility over the tasks and
decisions related to their job.
Commonly Used Standard Inventories
Faces Scale A measure of job satisfaction in which
raters place a mark under a facial
expression that is most similar to the way they feel benefits associated with the employee time
about their jobs. spent processing applications and interviewing
candidates, and relocation expenses for the new
Job Descriptive Index (JDI) A measure of job employee.
satisfaction that yields scores on five dimensions.
 Hidden costs include the loss of productivity
Minnesota Satisfaction Questionnaire (MSQ) A associated with the employee leaving—other
measure of job satisfaction that yields scores on employees trying to do extra work, no
20 dimensions. productivity occurring from the vacant position—
and the lower productivity associated with a new
Job in General (JIG) Scale A measure of the overall employee being trained.
level of job satisfaction.
Turnover
 Reducing Turnover
 Unavoidable reasons
Consequences of Dissatisfaction and Other  Advancement
Negative Work Attitudes  Unmet Needs
 Escape
1. Absenteeism
 Unmet Expectations
2. Linking Attendance to Consequences
3. Rewards for Attending
4. Discipline for not Attending
5. Clear Policies and Better Record Keeping
6. Increasing Attendance by Reducing Employee
Stress
7. Reducing Absenteeism by Not Hiring "Absence-
Prone" Employees
8. Uncontrollable Absenteeism Caused by Unique
Events

Turnover

Cost of Turnover
 Though some sources estimate that the cost of
turnover can exceed 100% of the employee’s
annual salary, a review of 30 case studies
suggests that the actual cost is probably closer
to 20% of the annual salary for the position Both
visible and hidden costs determine this
estimate.
LESSON 10: LEADERSHIP, GROUP BEHAVIOR,
 Visible costs of turnover include advertising TEAMS, AND CONFLICT
charges, employment agency fees, referral
bonuses, recruitment travel costs salaries and Leader Emergence
A part of trait theory that postulates that certain types of
people will become leaders and certain types will not.
3 aspects of motivation to lead
Affective identity motivation The motivation to lead
as a result of a desire to be in charge and lead others.
Non-calculative motivation Those who seek
leadership positions because they will result in personal
gain.
Social-normative motivation The desire to lead out of
a sense of duty or responsibility.
Leader Performance
 Leader performance A part of trait theory that
postulates that certain types of people will be
better leaders than will other types of people.
 Research on the relationship between personal
characteristics and leader performance has
concentrated on three areas: traits, needs, and
orientation.
Traits
 A meta-analysis by Judge et al. (2002) found
that extraversion, openness, agreeableness,
and conscientiousness were positively related to
leader performance and that neuroticism was
negatively related to leader performance.
 Self-monitoring A personality trait characterized
by the tendency to adapt one’s behavior to fit a
particular social situation.
Needs
 Need for power According to trait theory, the
extent to which a person desires to be in control
of other people.
 Need for achievement According to trait
theory, the extent to which a person desires to
be successful.
 Need for affiliation The extent to which a
person desires to be around other people.
 Leadership motive pattern The name for a
pattern of needs in which a leader has a high
need for power and a low need for affiliation.
TASK VERSUS PERSON ORIENTATION
 Person-oriented leaders such as country club
leaders, Theory Y leaders, and leaders high in
consideration act in a warm and supportive
manner and show concern for their subordinates
 Task-oriented leaders such as task-centered
leaders, Theory X leaders, and leaders high in
initiating structure define and structure their own
roles and those of their subordinates to attain
the group’s formal goals.
 Team leadership: A leadership style in which
the leader is concerned with both productivity
and employee well-being.
 Impoverished leadership: A style of leadership
in which the leader is concerned with neither
productivity nor the well-being of employees.
 Middle-of-the-road leadership: A leadership
style reflecting a balanced orientation between
people and tasks.
ORGANIZATIONAL CLIMATE
IMPACT theory: A theory of leadership that states that
there are six styles of leadership (informational,
magnetic, position, affiliation, coercive, and
tactical) and that each style will be effective only in one
of six organizational climates.
IMPACT THEORY
 Informational style A style of leadership in
which the leader leads through knowledge and
information; most effective in a climate of
ignorance.
 Magnetic style A style of leadership in which
the leader has influence because of his or her
charismatic personality; most effective in a
climate of despair.
 Position style A leadership style in which the
leaders influence others by virtue of their
appointed or elected authority; most effective in
a climate of instability.
Leadership Through Power
 Affiliation style A leadership style in which the
individual leads by caring about others and that
is most effective in a climate of anxiety.
 Coercive style A leadership style in which the
individual leads by controlling reward and
punishment; most effective in a climate of crisis.
 Tactical style A leadership style in which a
person leads through organization and strategy;
most effective in a climate of disorganization.
PATH-GOAL THEORY
 Instrumental style In the path–goal theory, a
leadership style in which the leader plans and
organizes the activities of employees.
 Supportive style In the path–goal theory, a
leadership style in which leaders show concern
for their employees.
 Participative style In the path–goal theory, a
leadership style in which the leader allows
employees to participate in decisions.
 Achievement-oriented style In the path–goal
theory, a leadership style in which the leader
sets challenging goals and rewards
achievement.
 Situational leadership theory: A theory of
leadership stating that effective leaders must
adapt their style of leadership to fit both the
situation and the followers.
 R1: Unable and unwilling or insecure
 R2: Unable but willing or confident
 R3: Able but unwilling or insecure
 R4: Able and willing or confident
 Expert power: Power that individuals have
because they have knowledge.
 Legitimate power: The power that individuals
have because of their elected or appointed
position.
 Reward power: Leadership power that exists to
the extent that the leader has the ability and
authority to provide rewards.
 Coercive power: Leadership power that comes
from the leader’s capacity to punish others.
 Referent power: Leadership power that exists
when followers can identify with a leader and
the leader’s goals.
GROUP DYNAMICS
Definition of a Group
- Gordon (2001) enumerated four criteria that
must be met for a collection of people to be
called a group: (a) The members of the group
must see themselves as a unit; (b) the group
must provide rewards to its members; (c)
anything that happens to one member of the
group affects every other member; and (d) the
members of the group must share a common
goal.
REASONS FOR JOINING GROUPS
 Assignment
 Physical Proximity
 Affiliation
 Identification
 Common Interests
 Common Goals
FACTORS AFFECTING GROUP PERFORMANCE
 Group Cohesiveness: The extent to which
members of a group like and trust one another.
Group Homogeneity:
- Homogeneous groups: Groups whose
members share the same characteristics.
- Heterogeneous groups: Groups whose
members share few similarities.
- Slightly heterogeneous groups: Groups in
which a few group members have different
characteristics from the rest of the group.
 Stability of Membership: The extent to which
the membership of a group remains consistent
over time.
 Isolation: The degree of physical distance of a
group from other groups.
 Outside Pressure: The amount of
psychological pressure placed on a group by
people who are not members of the group.
 Group Size: The number of members in a
group.
 Group Status: The esteem in which the group
is held by people not in the group.
SOCIAL LOAFING
Social loafing- The fact that individuals in a group
often exert less individual effort than they would if they
were not in a group.
GROUP THINK
Groupthink - A state of mind in which a group is so
concerned about its own cohesiveness that it ignores
important information.
TEAMS
What is a Work Team?
- According to Devine, Clayton, Philips, Dunford,
and Melner (1999), a work team is “a collection
of three or more individuals who interact\
intensively to provide an organizational product,
plan, decision, or service” (p. 681).
FACTORS TO CONSIDER
 Identification
 Interdependence
 Power Differentiation
 Social Distance
 Conflict Management Tactics
 Negotiation Process
TYPES OF TEAMS
 Work teams: Groups of employees who
manage themselves, assign jobs, plan and
schedule work, make work-related decisions,
and solve work-related problems.
  Parallel teams: Also called cross-functional
teams, they consist of representatives from
various departments (functions) within an
organization.
 Cross-functional teams: Teams consisting of
representatives from various departments
(functions) within an organization.
 Project teams: Groups formed to produce
onetime outputs such as creating a new
product, installing a new software system, or
hiring a new employee
 Management teams: Teams that coordinate,
manage, advise, and direct employees and
teams.
HOW TEAMS DEVELOP
 Forming stage: The first stage of the team
process, in which team members “feel out” the
team concept and attempt to make a positive
impression.
 Storming stage: The second stage in group
formation in which group members disagree and
resist their team roles.
 Norming stage: The third stage of the team
process, in which teams establish roles and
determine policies and procedures.
 Performing stage: The fourth and final stage of
the team process, in which teams work toward
accomplishing their goals.
GROUP CONFLICT
CONFLICT The psychological and behavioral reaction
to a perception that another person is keeping you from
reaching a goal, taking away your right to behave in a
particular way, or violating the expectancies of a
relationship.
 Dysfunctional conflict: Conflict that keeps
people from working together, lessens
productivity, spreads to other areas, or
increases turnover.
 Functional conflict: Conflict that results in
increased performance or better interpersonal
relations.
TYPES OF CONFLICT
 Interpersonal conflict: Conflict between two
people.
 Individual–group conflict: Conflict between an
individual and the other members of a group.
 Group–group conflict: Conflict between two or
more groups.
Causes of Conflict
 Competition for Resources
 Task Interdependence
 Jurisdictional Ambiguity
 Communication Barriers
 Beliefs
 Personality
CONFLICT STYLES
 Avoiding style: The conflict style of a person
who reacts to conflict by pretending that it does
not exist.
 Accommodating style: The conflict style of a
person who tends to respond to conflict by
giving in to the other person.
  Forcing style: The conflict style of a person
who responds to conflict by always trying to win.

 Collaborating style: The conflict style of a

person who wants a conflict resolved in such a
way that both sides get what they want.

 Compromising style: A style of resolving

conflicts in which an individual allows each side
to get some of what it wants.

THIRD-PARTY INTERVENTION

 Third-party intervention: When a neutral party

is asked to help resolve a conflict.

 Mediation: A method of resolving conflict in

which a neutral third party is asked to help the
two parties reach an agreement

 Arbitration: A method of resolving conflicts in

which a neutral third party is asked to choose
which side is correct.