Industrial-Organizational Psych Reviewer

INDUSTRIAL/ORGANIZATIONAL PSYCHOLOGY OUTLINE INDUSTRIAL PSYCHOLOGY  A branch of psychology that applies the principles of psychology to the workplace  With the purpose of enhancing the dignity and performance of human beings and the organizations they work in by advancing the science and knowledge of human behavior  It relies on research, quantitative methods and testing techniques  I/O psychologists are trained to use empirical data and statistics than clinical judgment to make decisions  Difference from other related fields (ex: HR): o Application of psychological principles like the use of psychological tests o Psychologists examines factors that affects the people in an organization as opposed to the broader aspects of running an organization 2 APPROACHES OF ACHIEVING THE GOAL OF I/O PSYCHOLOGY  Industrial approach – focuses on determining the competencies needed to perform a job, staffing the organization with employees who have the competencies and increasing competencies through training  Organizational approach – creates an organizational structure and culture that will motivate employees to perform well, give them the necessary information to do their jobs and provide working conditions that are safe and results in an enjoyable and satisfying work environment MAJOR FIELDS OF I/O PSYCHOLOGY  Personnel Psychology o Study of areas such as job analysis, recruitment, selection, determining salary levels, training employees and performance evaluation o Uses tests to select and promote employees o Construct performance appraisal instruments  Organizational Psychology o Concerned with the issues of leadership, conflict management, organizational change, group process within an organization and job satisfaction

Conducts surveys of employees’ attitudes, usually serving the role of a consultant who makes recommendations on ways problems can be improved o Develop organization-wide programs like team building, restructuring, employees empowerment to improve employee performance Ergonomics/Human Factors o Concentrate on workplace design, human-machine interaction, ergonomics, physical fatigue and stress o

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IMPORTANT EVENTS AND PEOPLE IN THE HISTORY OF I/O PSYCHOLOGY 1870s – Appendage of organizational psychology to industrial psychology William Bryan  A psychologist who studied the skills of telegraphers as they use the Morse code  (1st force) He stressed out examining real skills used in everyday life  (2nd force) Desires of industrial engineers to improve productivity of industrial employees evolve 1910 – Industrial Psychology came to be a special area of psychology Walter Dill Scott  1903 he published his 1st book: “Theory of Advertising” emphasizing on the need of psychology in advertising  1911 published his 2nd book: “Increasing Human Efficiency in Business” which is about tactics, loyalty and human efficiency Frederick Taylor  An engineer considered to be the Father of Scientific Management who sought to improve industrial efficiency  One of his important works is the “Principles of Scientific Management” Lillian Moller Gilbreth  A female psychologist who pioneered in industrial management techniques  Her works are concerned with the human aspect of time management  She was the 1st to recognize the effects of stress and fatigue among workers  1908 she gave a speech to industrial engineers pointing out that human beings is the most important aspect of the industry but have not receive any attention

Hugo Munsterberg  Created the Army Alpha Test (German)  Considered to be the Father of Industrial Psychology  He is a popular figure in American Education who applied traditional psychological method to industrial setting  He published the book: “Psychology and Industrial Efficiency” which is about selecting workers, designing work stations and using psychology in sales  He is also famous for his study “What makes a safe trolley operator?” World War I  I/O psychology has made its 1st impact  I/O psychologist were employed to test recruits and place armies on appropriate positions  They used the “Army Alpha” and “Army Beta” tests of Mental Ability by Munsterberg to assess armies Hawthorne Experiments (Western Electric Company)  Most significant research in I/O psychology which shows enormous problems of production in relation to efficiency  The study attempted to find out the relationship of lighting or illumination to employees’ productivity

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New interest in the application of cognitive psychology to the industry Increased interest in the effects of work on family life and leisure activities I/O psychology developed new methods of selecting employees

CRITERIA AS STANDARDS OF DECISION-MAKING CRITERIA  Are evaluative standards by which objects, individuals, procedures or collectives are assessed for the purpose of ascertaining their quality Conceptual Criterion  Is a theoretical construct, an abstract idea that can never actually be measured  It is an ideal set of factors that constitute a successful person as conceived in a psychologist’s mind Actual Criterion  The operational or the actual standard that researchers measure or assess 3 FORMS OF RELATIONSHIP BETWEEN ACTUAL AND CONCEPTUAL CRITERIA

Hawthorne Effect – the positive change in behavior that occurs at the onset of an intervention followed by a gradual decline often to the original level of the behavior prior to the intervention

Criterion deficiency – is the degree to which the actual criteria fail to overlap the conceptual criteria – that is, how deficient the actual criteria are in representing the conceptual ones

The Psychological Corporation  Founded in 1921 by James Cattell  With the purpose of advancing psychology and promote its usefulness to the industry  As the largest publisher of psychological test it also served as the “clearing house” in order to protect against quacks and to provide the list of psychologists who can render services

Criterion relevance – the degree to which the actual criteria and the conceptual criteria coincide

World War II  The “Army General Classification Test” (AGCT) was used to assess and place draftees and assess the skills and abilities of military men Major Changes in 1980s – 1990s  Increase use of fairly sophisticated statistical techniques and methods for analysis

Criterion contamination – the part of the actual criteria that is unrelated to the conceptual criteria Bias – the extent to which the actual criteria systematically or consistently measure something other than the conceptual criteria Error – the extent to which the actual criteria are not related to anything at all JOB ANALYSIS  Is a procedure useful in identifying the criteria or performance dimensions of a job

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A formal procedure by which the content of a job is defined in terms of tasks performed, the situation in which the work is performed and the human attributes needed to perform the job It is the process of gathering, analyzing and structuring information about a job’s components, characteristics and requirements

IMPORTANCE OF JOB ANALYSIS 1. Writing Job Description 2. Employee Selection 3. Training 4. Personpower Planning 5. Performance Appraisal 6. Job Classification 7. Job Evaluation 8. Job Design 9. Compliance with Legal Guidelines 10. Organizational Analysis JOB DESCRIPTION  A relatively short summary of a job, usually 2-5 pages, it must describe a job in enough detail that decisions about activities such as selection and training can be made  It should be updated on a regular basis  Is the written result of job analysis procedure which serve as basis for HR activities 8 SECTIONS OF A JOB DESCRIPTION  Job Title – an accurate title that describes the job  Brief Summary – a paragraph which describes the nature and purpose of the job which can be used in help-wanted ads  Work Activities – list of tasks and activities in which the worker is involved which can be divided into categories  Tools and Equipments Used – list of all tools and equipments needed on the job  Job Context – should describe the environment in which the employee works, the stress level, work schedule, physical demands, levels of responsibilities, temperature, number of co-workers, degree of danger, etc.  Work Performance – outline of standards of performance and how employee will be evaluated  Compensation Information – info about salary grade and the compensable factors used to determine salary

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Job Competencies – knowledge, skills, abilities (KSAOs) needed on the job at the time of hiring and those that can be obtained after hiring

THINGS TO CONSIDER WHEN PREPARING FOR A JOB ANALYSIS  A trained staff from the HR department, a consultant, or trained job incumbents and supervisors should conduct the job analysis  The job description should be updated if a job changes significantly  Participants of job analysis should be chosen randomly with the consideration of job competence, race, gender, education, personality, and viewpoints  On smaller companies every employees should participate on the job analysis  Levels of specificity, formal vs informal tasks should also be taken into consideration CONDUCTING THE JOB ANALYSIS 1. Identify the Tasks Performed – identify major job dimensions and the tasks performed for each dimension, the tools and equipments used and all the conditions to which the tasks are performed Methods of Gathering Information  Interview – a job analyst interview Subject Matter Experts (SMEs) about their job o Individual interview – one-on-one interview to get the employees’ perspective on the jobs’ duties and responsibilities o Group interview – used when large number of employees perform the same job o Panel discussion – panel of experts representing all levels of the organization discuss the standards of the job 

Direct Observation/Observation of Incumbents – lets the job analyst actually see the worker perform her job and obtain information that the worker may have forgotten during the interview

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Questionnaire/Inventory – use readily available structured/ unstructured questionnaire that acquire existing knowledge about job information into a taxonomy which is applicable for large number of employees

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Job Participation – analyze a job by actually performing it

2. Write the Task Statements – it should be properly written containing the action (what is done) and the object (to which the action is done) and the where, when, why and how the job is done 3. Rate the Task Statements  Conduct a Task Analysis – where a group of SMEs would rate each statement based on the frequency and importance or criticality of the tasks 4. Determine Essential KSAOs a. Knowledge – body of information needed to perform the task b. Skills – proficiency to perform the learned task c. Ability – basic capacity for performing a wide range of different tasks, acquiring knowledge or developing a skill d. Other characteristics – personality, willingness, interest, motivation and tangible factors like licenses, degrees, years of experience 5. Selecting Tests to Tap KSAOs – use of interviews, work samples, ability tests, personality tests, reference checks, integrity checks and biodata

COMPETENCY MODELING – the activity of determining the specific competencies that are characteristic of high performance and success in a job Difference of Job Analysis and Competency Modeling Job Analysis Examines both the work that gets performed and the human attributes needed on the job Identify specific and different KSAOs that distinguishes jobs within the organization KSAOs are identified using technical methods Does not try to capture/include organization-level values and vision

Competency Modeling Does not consider the work being performed Competencies apply to all employees; more universal and abstract than the KSAOs Include review sessions and group meetings of many employees thus employees readily identify with and relate to resulting competencies Links personal qualities of employees to overall mission of the organization

OTHER JOB ANALYSIS METHOD General Information about Work Activities:  Position Analysis Questionnaire (PAQ)  Job Structure Profile (JSP)  Job Elements Inventory (JEI)  Functional Job Analysis

JOB EVALUATION  Is a useful procedure in determining the relative value of jobs in the organization which in turn helps determine the level of compensation  Assess the value of each job in an organization  Job analysis describes a job while in a job evaluation you compare jobs in terms of those things that the organization considers important determinants of job worth

Information about Tools and Equipments  Job Components Inventory

COMPENSATION – all forms of rewards earned by employees in return of their labor

Information about Work Environment  AET (Ergonomic Job Analysis Procedure) Information about Competencies (KSAOs)  Occupational Information Network (O*NET)  Critical Incident Technique  Job Components Inventory  Threshold Traits Analysis  Fleishman Job Analysis Survey  Job Adaptability Inventory  Personality-Related Position Requirements Form (PPRF)

FORMS OF COMPENSATION:  Direct financial compensation (wages, salaries, bonuses and commissions)  Indirect financial compensation (benefits, leaves, retirement plan)  Non-financial compensation (career development, opportunities for recognition or advancement) To determine successful compensation system there should be fairness or equity 2 FORMS OF PAY EQUITY:  External Equity o Compares the job to the external market

When employees in an organization perceive that they are being rewarded fairly in relation to those who perform similar jobs in another organization Internal Equity o Comparing jobs within an organization to ensure that the people in jobs worth the most money are paid accordingly o When employees in an organization perceive that they are being rewarded fairly according to the relative value of their jobs within an organization o

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Compensable Factors – dimension of work (a skill or effort) used to assess the relative value of a job for determining compensation rates Hay Plan – also known as Hay Guide Chart-Profile Method which is used to identify compensable factors used in determining compensation of managers and executives Salary Surveys – company send surveys to other organizations and ask about how much an organization pay its employees in various positions METHODS OF JOB EVALUATION  Ranking Method –simplest method of job evaluation wherein jobs are usually ranked from highest to lowest in each department and the department rankings are combined to develop an organizational ranking  Classification Method – a predetermined number of job groups or classes are established and pays are assigned to these classifications  Factor Compensation Method – more systematic and scientific method wherein each job is ranked according to a series of factors and pay will be assigned by comparing the weights of the factors required for each job  Point Method – jobs are expressed in terms of key factors in which equivalent points are assigned after prioritizing each factor in order of importance then points are summed up to determine the wage rate for the job JOB PERFORMANCE CRITERIA – the criteria for success in a certain job depend on how that job contributes to the overall success of the organization

2 TYPES OF JOB PERFORMANCE CRITERIA  Objective Performance Criteria – a set of factors used to assess job performance that are objective or factual in character

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Subjective Performance Criteria – a set of factors used to assess job performance that are product of someone’s subjective rating of these factors

EIGHT MAJOR JOB PERFORMANCE CRITERIA  Production  Sales  Tenure or turnover  Absenteeism  Accidents  Theft  Counterproductive workplace behavior  Customer service behavior RECRUITMENT – process of attracting people with the right qualifications ( as determined by a job analysis) to apply for a job 2 FORMS OF RECRUITMENT  Internal Recruitment – promote someone from the organization to do the job  External Recruitment – hire someone from outside the organization METHODS OF RECRUITMENT  Newspaper Ads o Applicants may respond on a newspaper ad in 4 ways:  Respond by calling – used to quickly screen applicants  Apply-in-person – applicants fill out specific job application form and employers get a physical look of the applicants  Send-Resume – the organization who uses this type of ad expects large response and does not have the resources to speak to thousands of applicants  Send-Resume to a Blind Box – resumes were sent to an address other than the organization  Electronic Media – advertising on television and radio stations  Situation-Wanted Ads – are placed by the applicants rather than the organizations  Point-of-purchase Method – same as the “POP” (point-of-purchase) in advertising wherein job vacancy notices are posted in places where customers/current employees are likely to see (ex: windows, bulletin boards)  Recruiters o Forms of Recruiters:

Campus Recruiters – send recruiters to colleges to answer questions about themselves and interview students for available positions  Virtual job fairs – applicants can talk via an instant message to a recruiter, learn more about the company and submit resumes  Outside Recruiters  Public Employment Agencies – operated by the state and local public agencies and are strictly non-profit  Employment Agencies – may charge the company or the applicant when the applicant gets the job  Executive Search Firms – also known as “head hunters” who gave higher-paying non-entry level positions and always charge the organization and usually 30% of the applicant’s 1st year salary is charged Employee Referrals – in which current employees recommends family members and friends for a specific job opening Direct Mail – an employer typically obtain a mailing list and sends helpwanted letters/brochures to people listed through the mail Internet o Employer-based websites – organization lists available job openings and provides info about itself and the minimum requirements needed to apply for the job o Internet Recruiter – s private company whose website lists job openings for hundreds of organizations and resumes for thousands of applicants Job Fairs – designed to provide information in a personal fashion to as many applicants possible 

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REALISTIC JOB PREVIEW – giving an applicant an honest assessment for a job (those informed applicants tend to stay longer because they know what to expect – according to studies) EXPECTATION LOWERING PROCEDURE – lowers applicants’ expectations about work in general

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Reduce the chance of a legal challenge Cost-effective

SELECTION TECHNIQUES Effective selection is essential to recruit people with the right skills and experience to drive the organisation forward. Employers spend a lot of time and money recruiting new staff, so it is important that they follow good practice and get it right first time. (Source) 

EMPLOYMENT INTERVIEW – most commonly used method o Types of Interviews:  Based on Structure – source of questions, extent to which the applicants were asked the same questions and the scoring system  Structured – source of question is a job analysis, all applicants were asked the same questions and a standardized scoring system is used  Unstructured – interviewers are free to ask any questions  Based on Style – determined by the number of interviewers and interviewees  One-on-one – 1 interviewer is to 1 applicant  Panel interview – multiple interviewers ask and evaluate the same applicant  Group interview – multiple applicants answering questions at the same time  Serial interview – series of single interview  Based on Medium – extent to which they are done in person  Face-to-face – interviewer and applicant is at the same place  Telephone – do not allow visual cues  Video conference – conducted on remote areas and the setting is not personal  Written interview – involves applicants answering a series of question and send back their answers through mail or email o

3 CHARACTERISTICS OF EFFECTIVE EMPLOYEE SELECTION TECHNIQUE  Valid – should be based on job analysis, predicts work-related behavior and measures constructs it purports to measure

Types of Interview Questions  Clarifiers – allows the interviewer to clarify information in the resume, cover letter and application, fill in gaps and obtain information

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Disqualifiers – questions that must be answered in a particular manner or the applicant may not be qualified Skill Level Determinants – tap interviewee’s level of expertise Future-focused questions – also called “situational questions” ask an applicant what she would do in a particular situation Past-focused questions – also called “patterned behavior description interview” wherein applicants are asked to provide specific examples of how they demonstrated job related skills in previous jobs Organizational-fit questions – tap the extent to which the applicant will fit into the culture of an organization or with the leadership style of a supervisor

Ways of Scoring Interview Answers:  Right/Wrong Approach – applicable for skill determinants which can be scored simply when an answer is correct or incorrect  Typical Answer Approach – create a list of all possible answers to each question, have SMEs rate the favorableness of each answer and use the ratings to serve as a benchmark answer for each point on the scale  Key Issues Approach – SMEs create a list of key issues they think should be included in the perfect answer

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RESUME – summaries of an applicant’s professional and educational background Characteristics of an Effective Resume  The resume must be attractive and easy to read  The resume cannot contain typing, spelling, grammatical or factual mistakes TYPES OF RESUME:  Chronological Resume – list previous jobs in order from the most to the least recent  Functional Resume – organizes jobs based on the skills required to perform them rather than in order to which they were worked  Psychological Resume – combined strength of chronological and functional, the 1st paragraph contains the strength, then education and work experience 

REFERENCE CHECKS – process of confirming the accuracy of the information provided by the applicant Reference – is an expression of an opinion either orally or a written checklist of applicant’s ability, previous performance, work habits and character potentials for future success. This is usually sent in general using “To Whom It May Concern”

COVER LETTERS – tells the employer that you are enclosing your resume and would like to apply for a job Important Contents:  Salutation – address the letter to the correct person or position  Paragraph  1st paragraph – contain the fact that your resume is enclosed, the name of the job you are applying for and how you know about the job opening  2nd paragraph – state that you are qualified for the job and provide at least three reasons why  3rd paragraph – state why you want to work with the company  Last paragraph – contain the information about how they can reach you.

Signature – use “cordially” or “sincerely” above your signature

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LETTER OF RECOMMENDATION – letter expressing an opinion regarding an applicant’s ability and previous performance and usually sent to a specific person o

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Raynes (2005) Guidelines to follow when providing References:  Explicitly state your relationship with the person you are recommending  Be honest in providing information  Let the applicant read your reference before sending it

APPLICANT’S TRAINING AND EDUCATION – all applicants must have a minimum level of education or training to be considered

Theory-based – the number of dimension is identical to the number postulated by a well-known theorist (ex: MBTI) o Statistically-based – number of dimensions determined through statistical process called “factor analysis” (ex: 16PF) o Empirically-based – number and location of dimension is determined by grouping answers given by people known to possess a certain characteristics (ex: MMPI) Test of Psychopathology – determine whether individuals have serious psychological problems such as depression, bipolar disorder, schizophrenia, etc  2 types: o Objective Tests – structured scoring so that respondent is limited to a few answers that will be scored using standardized ways o Projective Tests – provide respondent with unstructured tasks such as describing inkblots or drawing pictures o

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JOB KNOWLEDGE TESTS – designed to measure how much a person know about the job

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ABILITY TESTS - used when applicants are not expected to know how to perform the job at the time of hire o Cognitive Ability – oral and written comprehension, oral and written expression, numerical facility, originality, memorization, reasoning and general learning o Perceptual Ability – consist of vision, color discrimination, depth, depth perception, glare sensitivity, speech clarity and hearing o Psychomotor Ability – test for finger dexterity, manual dexterity, control precision, multi-limb coordination, response control, reaction time, arm-hand steadiness, wrist-finger speed and speed of limb movement o Physical Ability – often used for jobs that require physical strength or stamina

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WORK SAMPLES - applicants perform the actual job-related tasks

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ASSESSMENT CENTERS – a selection technique characterized by the use of multiple assessment methods that will allow multiple assessors to actually observe applicants perform simulated job tasks

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APPLICANT’S EXPERIENCE o Experience can be measured in 4 ways:  Reference Checks  Interviews  Bio-data – a selection method that considers the applicant’s life, school, military, community and work experience  Experience Ratings of applications/resume – consider amount of experience, level of performance demonstrated during previous experience and how related is the experience to the current job

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PERSONALITY INVENTORIES o Two Categories of Personality Inventory:  Test of Normal Personality – measure the traits exhibited by the normal individual’s everyday life  Basis of Number of Traits and Type of Personality dimension measured:

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INTEREST INVENTORIES – tap vocational interests of the applicant Strong Interest Inventory (SII) – most commonly used interest test which asks individuals to indicate whether they like or dislike 325 items such as bargaining, repairing electrical wirings and taking responsibility

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INTEGRITY TESTS – also called “honesty test” which tells an employer the probability that an applicant would steal money or merchandise o 2 Types of Paper-and-pencil Integrity Test:  Overt Integrity test – based on the premise that a person’s attitudes about theft in society as well as previous theft behavior will predict his future honesty  Personality-based Integrity test – were general in that they tap a variety of personality traits thought to be related to a wide-range of counterproductive behavior