Industrial-Organizational Psychology: Research Methods, Performance Appraisals, and Organizational Equity

Correlation

A correlation evaluates the strength and direction of a statistical relationship between two variables.

Correlation Values Range

Correlation values range between -1.00 and +1.00.

Positive Correlation

Values closest to +1 indicate a positive correlation.

Negative Correlation

Values closest to -1 indicate a negative correlation.

Strong Positive Association

A correlation coefficient of 0.90 represents a strong positive association between variables.

Causation Distinction

An association between two variables does not imply that one variable causes the other.

Archival Data

Information gathered from existing historical records and historical data sources rather than primary collection.

Surveys

Survey instruments capture standardized data across individuals.

Advantages of Surveys

Efficient collection of large amounts of data.

Disadvantages of Surveys

Potential response bias, self-report inaccuracy, and design limitations.

Deductive Approach

A top-down research approach that begins with an established theoretical framework.

Inductive Approach

A bottom-up research approach that begins with the observation of a specific real-world phenomenon.

Laboratory Experiments

Experimental designs conducted within highly controlled environments to isolate specific variables.

Field Experiments

Experimental designs conducted in real-world, naturalistic settings.

Reliability

The consistency or stability of a measure across repeated applications.

Test-Retest Reliability

Assesses measurement consistency by administering the exact same assessment to the same group of individuals at two different points in time.

Validity

The degree to which a test accurately measures the specific concept or construct it claims to evaluate.

Content Validity

The extent to which an assessment instrument adequately covers all representative aspects of the target subject domain.

Construct Validity

The degree to which a test measuring a theoretical construct actually reflects the intended theoretical construct.

Institutional Review Board (IRB)

Administrative bodies established within universities, hospitals, and research institutions to review, approve, and monitor research involving human subjects.

Position Analysis Questionnaire (PAQ)

A structured, content-type job analysis questionnaire and survey instrument used to systematically evaluate job duties, workplace activities, and candidate requirements.

KSAOs

An acronym defining the core foundational attributes required for job performance: Knowledge, Skills, Abilities, Other characteristics.

Actual Criterion

The real measures or operational metrics used to assess employee performance.

Criterion Problem

The fundamental difficulty in identifying, capturing, and measuring the exact conceptual criteria of success in a job.

Critical Incident Technique

A job analysis technique that collects detailed behavioral narratives of particularly effective or ineffective worker behaviors during specific critical work incidents.

Purposes of Performance Appraisals

Four primary operational objectives justify performance appraisal systems within organizations: Developmental functions, Legal defense and documentation, Administrative decision-making.

Effective Systems

Must demonstrate accuracy, practical utility, and strategic fit (direct alignment with organizational goals and objectives).

Ineffective Systems

Fail due to inaccuracy, impracticality, or misalignment with organizational strategy.

Trait Appraisals

Evaluation based on fixed personal attributes or personality characteristics (e.g., friendliness in customer service).

Behavior Appraisals

Evaluation focused on specific observable actions and workplace behaviors.

Outcome Appraisals

Evaluation focused on quantitative, objective metrics and clear end results (e.g., sales volume or numerical production targets).

Behaviorally Anchored Rating Scale (BARS)

An appraisal tool that combines rating scales with explicit narrative examples of specific job behaviors along a performance continuum.

Self-Appraisals

Evaluations where employees assess and rate their own performance against established criteria.

Electronic Performance Monitoring (EPM)

The use of technology and electronic tracking systems to continuously observe, gather, and assess employee productivity and work performance.

Halo Error

Occurs when a rater's overall positive impression of an individual influences their rating across all specific performance dimensions.

Contrast Error

Occurs when an evaluation of an individual is skewed by comparison against a recently evaluated worker rather than objective performance standards.

Leniency Error

Occurs when an evaluator consistently assigns higher performance ratings to all employees regardless of actual achievement.

Recency Error

Occurs when an evaluator overly weights recent employee behavior immediately preceding the evaluation rather than assessing performance over the entire rating period.

Similarity Bias

The tendency for raters to evaluate employees more favorably if they share similar characteristics, background, or personal qualities with the rater.

Likability Bias

The tendency to rate individuals higher based on personal affinity or social likability rather than objective merit.

Internal Equity

The fairness of compensation levels across different jobs within the same organization relative to their internal value.

External Equity

The fairness of an organization's pay rates compared to compensation levels for similar jobs in the external labor market.

Comparable Worth

The principle that jobs requiring equivalent levels of skill, effort, responsibility, and working conditions should receive equal compensation, regardless of employee gender or demographic composition.

360-degree feedback

A feedback system that systematically gathers performance evaluation input from multiple sources across different organizational levels, including direct supervisors, peers, subordinates, and self-evaluations.