integ: iop (intro to iop)

Industrial/Organizational Psychology

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

• to enhance the dignity and performance of human beings and the organizations they work in, by advancing the science and knowledge of human behavior

IO Psychology

• Application of psychological principles

• How to make people productive to attain work productivity. 

• Ex. hire minimal yet competent and productive workers to maximize production.

• Focus: People at work

• Goal is to make people more productive, satisfied, and effective
  Believes that healthy, motivated employees = better performance

Business Programs

• How to make overall business productive. Usually, they do not prioritize people as part of business. Goal is to earn larger money.

• Focus: The business as a whole. Increase profit & business growth

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 trainings

• "Who should we hire, and how do we train them well?"

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

industrial approach

• Key Difference: Efficiency of work

• Easy way to remember: Industrial = JOB-focused

• Think: “Right person for the job to maximize productivity.”

organizational approach

• Key Difference: Behavior of people at work

• Easy way to remember: Organizational = PEOPLE-focused

• Think: “Happy, motivated employees perform better.

Personnel Psychology

• Who to employ?

• This branch is concerned with the “individual - job fit” 

• The field of study that concentrates on the selection and evaluation of employees

• Study and practice in such areas as analyzing jobs, recruiting applicants, selecting employees, determining salary levels, training employees, and evaluating employee performance

Personnel Psychology

• Choose existing tests or create new ones that can be used to select and promote employees

• Analyzes jobs to obtain a complete picture of what each employee does, often assigning monetary values to each position

• Construct performance appraisal instruments to evaluate employee performance

• Examine various methods that can be used to train and develop employees

• evaluating employee performance

Human Factors/Ergonomics

• Concentrate on workplace design, human- machine interaction, ergonomics, and physical fatigue and stress

• Frequently works with engineers and other technical professionals to make the workplace safer and more efficient

• Sample activities in this subfield have included designing the optimal way to draw a map, designing the most comfortable chair, and investigating the optimal work schedule.

• Focus: Making the workplace safe and efficient by improving how people interact with tools and machines

• "Is the design of the workplace helping or hurting people?"

Wage

• not fixed, output based

• Common for part-time, contractual, or manual jobs

Salary

• fixed, above wage, given regularly

• Common for full-time, professional, or office jobs

Hawthorne Effect

• employees changed their behavior and became more productive because they were being studied and received attention from their managers

• Job satisfaction, employee morale, motivation, shift to human relations

Ethical Dilemmas

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

Type A Dilemma

• Has a high level of uncertainty as to what is right or wrong

• Appears to have no best solution

• Contains both positive and negative consequences to a decision

Type B Dilemma

• Rationalizing dilemmas

• Difference between right and wrong is much clearer

• Individuals usually know what is right but choose the solution that is most advantageous to themselves

Organizational Theory

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

Organization

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

organizational theories

classical theory

structural theory

neo-classical theory

humanistic theory

motivation theory

modern organization theory

contingency theory

open-systems theory

functional principle

scalar principle

line/staff principle

span of control

4 Major Structural Principles of classical organizational theory

functional principle

• the concept behind division of labor

• organizations should be divided into units that perform similar functions

• (horizontal growth)

• People who do similar kinds of work should be in the same department.

• ex: All marketing employees are in the Marketing Department, All accountants are in the Finance Department, All recruiters are in Human Resources

scalar principle

• refers to the chain of command that grows with levels added to the organization

• (vertical growth)

• Everyone should know who their boss is and who they report to.

• ex: CEO → Manager → Supervisor → Employee
  If an employee has a concern, they should go to their supervisor first, not directly to the CEO.

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

ex: Production workers (they make the product)

staff functions

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

ex: HR, Legal, IT (they support the workers but don’t make the product)

span of control

• the number of subordinates a manager is responsible for supervising

• According to Lyndall Urwick; the optimal range of span of control is about 5 to 6 subordinates

• Narrow span: Few employees per manager. 1 manager 5 employees. commonly 3-8

• Wide span: Many employees per manager. 1 manager 20 employees. commonly 10-30

• scientific management

• bureaucracy

• administrative theory

3 theories of classical organizational theory

Scientific Management (Frederick Taylor)

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

• Taylorism – as this approach was sometimes called—had as its premise the notion that there is one best way to get the job done

• Instead of guessing how to do a job, managers measure, test, and improve each step to make work faster and easier

• ex: In a fast-food restaurant:

  • The process of making burgers is broken into steps

  • Each worker has a specific task (grilling, assembling, wrapping)

  • Time is measured to make service faster

bureaucracy (max weber)

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

• 4 Major Features: Division of Labor. Top-down Pyramidal. Organization. Delegation of Authorities, Span of Control

• Everything follows clear rules and procedures, not personal preferences.

• In a government office:

  • You follow strict procedures to get documents

  • Employees have specific roles

  • window 1 kukuha ka ng ganito, window 2 ganito naman

bureaucracy: division of labor

• Work is broken down into smaller, specialized tasks, and each person focuses on one task

• “Do one thing well instead of many things poorly.”

• In a hospital:

  • Doctors diagnose patients

  • Nurses assist and monitor

  • Pharmacists prepare medicine

bureaucracy: top-down pyramidal organization

• Power and authority flow from top (leaders) to bottom (workers).

• ex: In a company:

  • The CEO makes major decisions

  • Managers implement them

  • Employees follow instructions

bureaucracy: delegation of authority

• Boss assigns the work, but also gives the power to do it

• ex: A manager asks a team leader to:

  • Handle a project

  • Make decisions for the team

  • Report progress

administrative theory (henri fayol)

• Focused on the organization and structure of work tasks;

• looked at how management and workers are organized within a business to allow for the completion of tasks

• 5 Functions of Management: Planning (setting goals), Organizing (arranging resources), Commanding (leading employees), Controlling (checking performance), Coordinating (aligning activities)

• It provides general principles that managers can use to manage effectively.

• ex: A company manager:

  • Plans a project

  • Assigns tasks to employees

  • Monitors progress

  • Makes sure everything stays on track

the basic parts of an organization in structural theory of Henry Mintzberg

Operating Core

Strategic Apex

Middle Line

Technostructure

Support Staff

Ideology

Politics

Operating Core

• who are responsible for conducting the basic work duties that give the organization its defining purpose

• ex: Teachers; Factory Workers; Call Centers

Strategic Apex

• responsible for the overall success of the entire organization

• ex: CEO, School Principal, Hospital Director

Middle Line

• who have the day-to-day authority for ensuring that the overall goals are met

• ex: Department Head; Supervisor; Manager

Technostructure

• possesses specific technical expertise that facilitates the overall operation of the organization

• ex: HR; Engrs; Accountants;, Policy Planner

Support Staff

• provides services that aid the basic mission of the organization

• ex: Security; Janitors; Cafeteria Workers

Ideology

• a belief system that compels commitment to a particular value

• ex: School Mission; Company Vision

Politics

• side effects of ideology, causes divisiveness and conflict

• ex: Informal power; Internal Competition/Conflicts

• how power, authority, and decision-making inside an organization can be influenced not just by formal rules, but also by personal interests, relationships, and informal behavior.

neoclassical theory

• There is no formal theory

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

• It argues that organizations are not just systems—they are made up of people with emotions, needs, and social relationships

• emphasizes: human needs, social relationships, motivation, group dynamics

• Workers are not machines—they are human beings.

hawthorne effect in hawthorne studies by elton mayo

refers to the phenomenon where individuals change their behavior when they are aware that they are being observed or studied

Comprehensive Theory of Behavior In Formal Organization (Chester Barnard)

• Organizations are cooperative systems that exist to overcome individual limitations, requiring communication, cooperation, and a shared purpose

• An organization works only if people are willing to cooperate

• ex: In a company:

  • Management sets goals (common purpose)

  • Employees communicate and coordinate

  • Workers choose to cooperate because they receive fair rewards

  • Authority works because employees accept leadership

Application of Classical Theories to Current Situations of His Time (Herbert Sim)

• Human decision-making is bounded by limited information and cognitive abilities, leading to “satisfying” rather than optimizing, and organizations are complex systems best understood through a contingency approach

• Management should be based on how people actually make decisions—not just on perfect rules.

• In a modern company:

  • Classical approach: Follow strict rules and hierarchy

  • Simon’s approach:

    • Managers adapt decisions based on the situation

    • Accept that choices are not perfect

    • Focus on practical solutions

Theory X by mcgregor

negative view of employees

Workers are lazy and need to be pushed.

Assumptions:

• Employees dislike work

• Avoid responsibility

• Need strict supervision

• Must be controlled or forced to work

Management style:

• Authoritarian (strict, controlling)

• Uses punishment and close monitoring

Example:
A manager:

• Watches employees closely

• Gives detailed instructions

• Uses warnings or penalties for mistakes

theory y by mcgregor

positive view of employees

Workers are capable and can be trusted

Assumptions:

• Employees like work (or can enjoy it)

• Can be self-directed

• Accept responsibility

• Can be creative and motivated

Management style:

• Participative (involves employees)

• Encourages autonomy and trust

Example:
A manager:

• Allows employees to make decisions

• Encourages ideas and creativity

• Focuses on motivation and growth

Growth Perspective by Argyris

Organizations that acknowledged and aided this growth would be more likely to prosper than those that ignored or actively inhibited this growth

People naturally want to grow and become more mature, but rigid organizations can prevent that.

In a company:

• Traditional approach:
  Employee follows strict orders → feels bored and restricted

• Argyris’ growth approach:
  Employee is given responsibility and input → becomes motivated and p

humanistic theory

• organizational success in terms of employee motivation and the interpersonal relationships that emerge within the organization

• Employees are human beings with needs, goals, and potential—not just workers.

self-fulfilling prophecy

• employees, over time, learn to act and believe in ways consistent with how managers think they act and believe

• If you expect something to happen, your actions can help make it happen—even if it wasn’t true at first.

• when a belief or expectation about a person influences how they behave toward that person, and that behavior actually causes the expectation to come true.

MOTIVATION THEORY

seeks to explain why individuals behave the way they do and what drives, directs, and sustains their actions

Motivation

internal force that drives a worker to action as well as the external factors that encourage that action

Self-Esteem

the extent to which a person views him/herself as valuable and worthy

chronic self-esteem

• a person’s overall feeling about him/herself

• long-term, stable sense of self-worth that does not change easily.

• A person consistently believes: “I am a capable and valuable employee.”

• Even after small failures, their self-view doesn’t change much.

situational self-esteem

• a person’s feeling about him/herself in a particular situation

• changes depending on the current situation or experience.

• Example:

  • An employee feels confident after successfully finishing a task

  • But feels less confident after making a mistake in a meeting

Social Influenced Self-Esteem

how a person feels about themselves based on the expectations of others

Experience-with-Success

the employee is given a task so easy that he will almost certainly succeed

Galatea Effect

• the power of self-expectations.

• An individual’s belief in their own abilities directly impacts their performance

Pygmalion/Rosenthal Effect

describes how high expectations from a superior or authority figure can lead to improved performance in a subordinate

Golem Effect

negative or low expectations from others can lead to a decrease in performance

intrinsic motivation

self rewarding (you love your job)

Extrinsic Motivation

some type of reward or to avoid consequences (reward/pay)

Work Preferences Inventory

measures the intrinsic and extrinsic motivation

David McClelland’s Achievement Motivation

• Need for Achievement (nAch)

• Need for Affiliation (nAff)

• Need for Power (nPow)

Job Expectancy Theory (Victor Vroom)

• why people choose to behave in certain ways at work based on expected outcomes.

• People are motivated when they believe their effort will lead to good performance, and that performance will lead to rewards they value.

• Motivation= V x I x E

• Valence - Rewards (How much do I want the reward?)

• Instrumentality - Performance (I believe good performance will lead to rewards)

• Expectancy - Effort (I believe my effort will lead to good performance)

job characteristic model (hackman & oldham): Skill Variety

• a job requires the worker to use a variety of abilities and skills to perform work-related tasks (Graphic Designer)

• A nurse uses communication, technical, and problem-solving skills

job characteristic model (hackman & oldham): Task Identity

• a job requires the completion of an entire job or function (Baker)

• A chef prepares an entire dish

job characteristic model (hackman & oldham): Task Significance

• a job has a substantial impact on other people within the organization, such as coworkers, or persons outside of the organization, such as consumers (Paramedic)

• The job has an impact on other people or society

• A teacher shaping students’ future

• A cleaner maintaining hospital hygiene

job characteristic model (hackman & oldham): autonomy

• the job gives the worker freedom and independence to choose how to schedule and carry out the necessary tasks (Freelancer)

• A manager lets employees decide how to complete tasks

job characteristic model (hackman & oldham): feedback

• the job allows the worker to receive direct and clear information about the effectiveness of performance (Sales showing targets)

• Customer reviews give direct feedback

Maslow’s Hierarchy of Needs: Physiological Needs

the most basic needs for survival, including food, water, shelter, and sleep

Maslow’s Hierarchy of Needs: safety needs

security of body, employment, resources, morality, the family, health, and property

Maslow’s Hierarchy of Needs: love and belonging needs

focuses on the need for social connection, including friendship, family, intimacy, and a sense of belonging

Maslow’s Hierarchy of Needs: esteem needs

need for respect, self-respect, status, recognition strength, and freedom

Maslow’s Hierarchy of Needs: self-actualization needs

highest level, where individuals strive to become the best they can be, to fulfill their potential, and experience personal growth

Alderfer’s ERG Theory

• a simplified version of Maslow’s hierarchy, in which any step can be skipped in order to move into another, proposing three core needs (“succession-progression, frustration-regression theory”)

• Existence – physiological and safety

• Relatedness – social and interpersonal

• Growth – esteem and self-actualization

Herzberg’s Two-Factor Theory (Motivator-Hygiene Theory)

• job satisfaction and dissatisfaction arise from different sets of factors

• Hygiene Factors (maintenance) – (e.g., salary, working conditions) can prevent dissatisfaction, but don't necessarily motivate

• Motivators (satisfiers)– (e.g., achievement, recognition) can lead to satisfaction and motivation

FIXED INTERVAL

• fixed time

• salary every 15 of the month

FIXED RATIO

• fixed responses

• earn 1k every 10 products sold

VARIABLE INTERVAL

• random time

• checking messages/email

VARIABLE RATIO

• random response

• slot machine/sales call

Five Factor Model of Personality (Costa & McCrae)

Openness to Experience - imaginative, creative, unconventional, curious, nonconforming, autonomous, & aesthetically perceptive (Creative Director)

Conscientiousness -organized, dependable, goal-focused, thorough, disciplined, methodolical, industrious (Accountant)

Extraversion - outgoing, talkative, energetic, sociable, assertive (Sales Representative)

Agreeableness - trusting, helpful, good-natured, considerate, tolerate, selfless, generous, flexible (HR)

Neuroticism - anxious, insecure, self-conscious, depressed, temperamental

MODERN ORGANIZATION THEORY

• it views organizations as complex, dynamic, and open systems that interact with their external environment

• Systems Theory, Contingency Theory (Situational Theory), Organizational Learning Theory

Systems Theory

• views the organization as a system composed of interconnected subsystems (e.g., departments, individuals, processes)

• Ex: If HR hires unqualified employees, it affects training, operations, and sales. Because all parts influence each other, the organization must be managed as one interconnected system. (An organization is like a machine where all parts work together, and a change in one part affects the whole system.)

Contingency Theory (Situational Theory)

• there is no one “best” way to organize or manage; what works in one situation may not work in another; it depends

• Ex: A highly structured hierachy may work for a military unit but not for a creative design agency (The best management approach depends on the situation, people, and environment.)

Organizational Learning Theory

• focuses on how organizations learn, adapt, and develop capabilities over time.

• Emphasizes the importance of knowledge acquisition, sharing, and retention within the organization

• Ex: A company notices employees frequently miss deadlines, so it reviews past projects and finds that unclear instructions caused confusion. The company then creates standard guidelines and weekly check-ins to improve future projects. (The organization observes a problem → learns from it → improves its system.)

Contingency Model by Joan Woodward (Technology)

• different production technologies demand different organizational structures to be effective

• Unit and Small-Batch Production: made one at a time. Low-volume, customized products (e.g., prototypes, tailored clothing)

• Large-Batch and Mass Production: same product, made many times. Standardized, high-volume products (e.g., assembly lines)

• Continuous-Process Production: Production runs 24/7 without stopping. Highly automated, continuous flow of production (e.g., oil refineries, chemical plants)

Lawrence and Lorsch’s Model (Environment)

focuses on how organizations adapt to the demands of their external environment

Environmental Uncertainty

they viewed the environment as having different sub-environments with varying degrees of uncertainty (TECHNOLOGY)

Differentiation

• organizational subunits differ in terms of their goals, time horizons, interpersonal styles, and formality of structure

• “Each department thinks and works differently.”

• Marketing → creative, fast-paced, customer-focused

• Engineering → technical, precise, structured

• Finance → careful, rule-based, analytical

Integration

• these differentiated subunits need to collaborate and coordinate their activities to achieve overall organizational goals

• Making different departments work as one team

• Regular interdepartmental meetings

• Project managers coordinating teams

• Shared goals and communication systems

Fiedler’s Contingency Model (Leadership)

• focuses on leadership effectiveness being contingent on the fit between the leader’s style and the favorableness of the situation

• Leader-Member Relations (good or poor)

• Task Structure (high or low)

• Position Power (strong or weak)

Mintzberg’s Contingency Model (Configuration)

organizations naturally cluster into certain configurations or types, with each configuration being a relatively stable and effective combination of structure, situation (contingencies), and strategy

Mintzberg’s Contingency Model (Configuration): Age and Size

older and larger organizations tend to be more formalized

Mintzberg’s Contingency Model (Configuration): Technical System

complexity and sophistication of the technology used

Mintzberg’s Contingency Model (Configuration): environment

stability, complexity, market diversity, and hostility

Mintzberg’s Contingency Model (Configuration): power

external control and the power of various stakeholders

OPEN-SYSTEMS THEORY (Katz and Kahn)

• organizations develop and change over time as a result of both external and internal forces

• Organizations (and other types of systems) are not isolated entities but are in constant interaction with their external environment

• An organization survives only if it takes in resources from the environment, transforms them, and gives something back

OPEN-SYSTEMS THEORY (Katz and Kahn)

They take in resources INPUTS (raw materials, energy, people, informations) from the environment, transform them internally THROUGHPUTS (training employees, manufacturing) and release OUTPUTS (products, services, or waste) back into the environment

Static Environment

• stable, predictable conditions

• Things outside the organization stay mostly the same.

• Water supply companies

• Basic utility services (electricity, sanitation)

• Traditional government offices (with stable policies)