IO Psych

Kyuti and St. Anne

Organization

a tool people use to coordinate their actions to obtain something they desire or value to achieve a goal and create value (value generators)

Organization

a coordinated group of people who perform tasks to produce goods or services, colloquially referred to as companies

Industrial/Organizational Psychology

a branch of psychology that applies the principles of psychology to the workplace

Industrial/Organizational Psychology

Purpose: “to enhance the dignity and performance of human beings, and the organizations they work in, by advancing the science and knowledge of human behavior”

Industrial Approach

focuses on determining the competencies needed to perform a job, staffing the organization with employees who have those competencies, and increasing those competencies through training

Organizational Approach

creates an organizational structure and culture that will motivate employees to perform well, give them the necessary information to do their jobs, and provide working conditions that are safe and result in an enjoyable and satisfying work/life environment

Personnel Psychology

concentrates on the selection and evaluation of employees

Personnel Psychology

• Analyzing jobs

• Recruiting applicants

• Selecting employees

• Determining salary levels

• Training employees

• Evaluating employee performance

Organizational Psychology

investigates behavior of employees with the context of an organization

Organizational Psychology

• Issues of leadership

• Job satisfaction

• Employee motivation

• Organizational communication

• Conflict management

• Organizational change

• Group processes within an organization

Human Factors

interaction between humans and machines

Ergonomics

Also known as Human Factors

Human Factors

• Workplace design

• Human-machine interaction

• Ergonomics

• Physical fatigue and stress

Ethical Dilemma

Ambiguous situations that require a personal judgment of what is right or wrong because there are no rules, policies, or laws guiding such decisions

Ethical Dilemma

Individuals often rely on their morals and personal values, which often leads to different decisions by different people in similar situations

Type A Ethical Dilemma

There is a high level of uncertainty as to what is right or wrong, there appears to be no best solution, and there are both positive and negative consequences to a decision

Type B Ethical Dilemma

Called rationalizing dilemmas

Type B Ethical Dilemma

individuals know what is right but choose the solution that is most advantageous to themselves; clear difference between right and wrong

Organizational Theory

A set of propositions that explains or predicts how groups and individuals behave in varying organizational structures and circumstances

Organizational Theory

Aims to provide an overview of how organizations functions and the things an organization needs to succeed - become more efficient and become more profitable

Organizational Theory

study of the structures and operations of social organizations, including companies and bureaucratic institutions, applied through the organizational structures

Organizational Theory

Includes analysis of productivity and performance of organizations and the actions of the employees and groups within them

Classical Organizational Theory

Focuses on WORK

Classical Organizational Theory

• Which emerged in the first few decades of the 20th century

• Focuses mainly on structural relationships in organizations

Functional Principle

Orgs should be divided into units that perform similar functions. This relates to horizontal growth of the org - the formation of new functional units (depts) along the horizontal dimension

Functional Principle

the concept behind division of labor

Scalar Principle

Communication and authority should flow through a defined chain of command and deals with orgs vertical growth

Scalar Principle

Each level has its own degree of authority and responsibility in meeting organizational goals, with higher levels having more responsibility

Scalar Principle

Objectives are hierarchy, establishment, decision-making, clarity, accountability, communication flow

Unity of Command

each subordinate should be accountable to only one superior

Line Functions

have the primary responsibility for meeting the major goals of the organization

Staff Functions

support line’s activities but are regarded as subsidiary in overall importance to line functions

Span of Control

• this is the number of subordinates a manager is responsible for supervising

• to ensure proper management and coordination

5 to 6

According to Lyndall Urwick, the optimal range of span of control is how many subordinates

System of Differentiated Activities.

Tenet of Classical Organizational Theory in that all organizations are composed of the activities and functions performed on them and the relationships among these activities and functions

People

Tenet of Classical Organizational Theory in that although organizations are composed of activities and functions, ____ perform tasks and exercise authority

Cooperation

Tenet of Classical Organizational Theory in that _____ must exist among the people performing their various activities to achieve a unity of purpose in pursuit of their common goal

Authority

Tenet of Classical Organizational Theory that is established through superior-subordinate relationships, and such is needed to ensure cooperation among people pursuing their goals

Classical Organizational Theory

• Focuses on routinary tasks and responsibilities of a position

• Highlights what is common among individuals

Classical Organizational Theory

Has a formal organizational structure

Classical Organizational Theory

Has set rules and defined roles and is expressed through hierarchies (chain of command)

Classical Organizational Theory

• views organizations as machines

• Emphasizes efficiency, specialization, and predictability in achieving organizational goals

Classical Organizational Theory

Its criticism includes neglection of the importance of informal groups, undermines the influence of outside factors on individual behavior, does not care about humanistic elements, communication is one-way, not two-way

Neoclassical Organizational Theory

Focuses on WORKER

Neoclassical Organizational Theory

• focuses on the individual and how they relate to others

• Highlights the individual differences among employees

Neoclassical Organizational Theory

has an Informal Organizational Structure

Neoclassical Organizational Theory

Has no set rules and has Negative and Positive Politics

Modern Organizational Theory

Focuses on INTERNAL and EXTERNAL factors

Modern Organizational Theory

Integrates multiple disciplines and emphasizes that no one-size-fits-all approach exists

Frederick Taylor

who proposed Scientific Management Theory

Taylorism

What is scientific management also sometimes called as

Scientific Management Theory

Highlights that there should be a system in managing employees

• Planning of work to achieve efficiency

• Standardization

• Specialization and simplification

Scientific Management Theory

• Views the organization as a machine whose focus is to run effectively by following a system

• Conducted time and motion studies to identify its effects on productivity and efficiency

Scientific Management Theory

The organization is a machine—a pragmatic machine whose focus is simply to run more effectively

Scientific Management Theory

it premise the notion that there is one best way to get the job done

Scientific Management Theory

The principle of this approach are

• Focus is on science, not rule-of-thumb

• Uses scientific analysis in the selection of the worker (presence of qualifications for the role)

• Management and labor cooperation rather than conflict (ensuring that everyone is following a single rule through a hierarchy)

• Scientific training of the worker (learning basic skills to perform the job)

Max Weber

Who proposed Bureaucratic Theory

Bureaucracy

describes the structure, organization, and operation of many efficient organizations

Bureaucratic Theory

• Highlights the processes / rules and regulations within the organization

• Characterized by rules, standardized processes, procedures and requirements, meticulous division of labor, and clear hierarchies

• Includes a formal hierarchy, division of labor, and set of operating procedures

• Lengthy process = risk prevention

Structure

principle of bureaucratic approach in which steps that have to be followed in order to do a certain process (hierarchy)

Specialization

principle of bureaucratic approach which is concentrating on and becoming expert in a particular area

Predictability and Stability

principle of bureaucratic approach which processes predict results

Rationality

principle of bureaucratic approach in which no one is excluded from the rules simply because of their background (ascribing to logic rather than emotions)

Democracy

principle of bureaucratic approach in which it relates to designations / titles

Delegation of Authority

supervisors assign particular tasks to separate employees; avoid micromanaging

Committee

groups of people that join together to achieve common goal

Scientific Management Theory

posited that worker efficiency would lead to managerial efficiency

Division of Labor

Each job is specialized position with its own set of responsibilities and duties

Bureaucracy

These are 4 Major Features

• Division of Labor

• Top-down Pyramidal Organization

• Delegation of Authorities

• Span of Control

Division of Labor

Employees do only the particular tasks and duties assigned to their jobs

Division of Labor

• Pros is allows for taking advantage of strengths of individual

• Cons is that it can be difficult to coordinate

Bureaucratic Theory

• Criticism is that it is ineffective for orgs operating in rapidly changing environments; difficult to adapt to changes

• Work can be so simplified and unchallenging that workers might be dissatisfied and unmotivated

Henri Fayol

Who proposed the Administrative Theory

Administrative Theory

• Highlights the characteristics of admin leadership positions

  • Accomplishment of tasks

  • Include principles of management

  • Concept of line and staff

  • Committees and functions of management

• Do not see individual differences (more on business side of the person)

Administrative Theory

Focused on what managers do

Functions of management

planning, organizing, staffing, directing, coordinating, reporting, and budgeting

Division of Specialization

• Individual functions based on specific job specialization

• Can increase productivity

Authority and Responsibility

Imperative / Command to follow and accomplish organizational objectives

Discipline

• Impose disciplinary actions

• Exist across the hierarchy

• The subordinate must fully obey the superiors

Unity of Command

only one boss from whom a worker receives instructions

Unity of Direction

Members of the organization should jointly work toward the same goal

Subordination of Individual Interest to General Interest

• Not one person is more important than the others

• Everyone should benefit

Remuneration Of

Personnel

• Can be based on diverse factors such as job responsibility, length of stay, compensable benefits, tenures, bonuses, hazard pay, allowances, profit and gain sharing

• compensation is used to incentivize worker performance

Centralization

All decisions are centered on the upper management

Decentralization

decisions come from lower management

Line of Authority

• hierarchy of authority that places workers below managers in the reporting structure

• following a chain of command

Scalar Chain

Line of Authority is also called as

Order

well-defined rules and standards for the work environment and work responsibilities

Equity

Fairness / justice should prevail in the organization

Stability of Personnel Tenure

• Job security improves performance

• Organizations need to have low turnover

Initiative

• allowing employees to create plans and carry them out

• Should exist among the employees

Esprit de Corps

• Team spirit / camaraderie in the organization

• Pride, allegiance, union is strength, sense of belongingness

Classical Organization Theory

Criticism includes as little concern for participation, personality or leadership style, assumes that there is only one best configuration, ignored the possibility that employee behavior may also affect the organization in return

Neoclassical

connotes a modernization or updating of the original (classical) theory, while still acknowledging its contributions

Neoclassical Organizational Theory

a theory developed in the 1950s that described psychological or behavioral issues associated with an organization; recognizes that people are not machines

Neoclassical Organizational Theory

The primary contribution was to reveal that principles propose by classical theory were not as universally applicable and simple as originally formulated

Neoclassical Organizational Theory

• Adds a personal or human element to the study of organizations

• While designing an org structure, the people (employees) and their behavior should be taken into consideration

• Individual factors/differences such as employees’ motives, goals, and aspirations were emphasized

• Has a participative management

Neoclassical Organizational Theory

The following are Core Principles of what theory

• Emphasis on the Human Factor

• Importance of Informal Organization

• Decentralization and Participation

• Focus on Communication and Group Dynamics

Work Group

Informal group within the workplace

• Forming → Storming → Norming

Participative Management

highlights different forms of decision-making