Industrial Organisational Psychology Ac Rev.

. INDUSTRIAL/ORGANIZATIONAL PSYCHOLOGY

1.1. INTRODUCTION

INTRODUCTION

Industrial/Organizational Psychology encompasses three major areas of research and practice:

Personnel Psychology is concerned with theory and applications related to evaluating, selecting, and training workers.  Job analysis, performance appraisal, personnel selection, training, and career counseling are topics included in this area.

Organizational Psychology focuses on individual and group processes within organizations and is concerned with the factors that affect such outcomes as job satisfaction, motivation, work effectiveness, and quality of work life. Topics in this area include leadership style, decision-making, and organizational development.   

Engineering Psychology, also called human factors psychology and ergonomics, deals with the relationships between workers and the work context.  Issues of interest to engineering psychologists include work schedules, job burnout, and accidents.  

PERSONNEL PSYCHOLOGY:  PERFORMANCE APPRAISAL, SELECTION, TRAINING, AND CAREER COUNSELING

A.  Summary of Key Concepts

1.  Job Analysis:  The purpose of job analysis is to describe the precise requirements of a job.  A job analysis can produce information that is job-oriented, worker-oriented, or a combination of the two.  Methods of job analysis include interviews, questionnaires (e.g., the Position Analysis Questionnaire), direct observation, and work diaries.  

2.  Performance Evaluation:  Evaluations of employee performance are made to assist in decisions about raises and bonuses, promotions and dismissals, and to provide employees with feedback about their performance.  Measures of job performance (criterion measures) can be objective (data that can be easily quantified, such as dollar amount of sales and number of units produced) or subjective (ratings by supervisors, peers, or employees themselves).  Subjective measures are affected by rater biases, including the halo effect, the central tendency bias, the leniency bias, the strictness bias, and the contrast effect. Subjective rating methods include Personnel Comparison Systems, Critical Incidents, Behaviorally Anchored Rating Scales, Behavioral-Observation Scales, and Forced-Choice Checklists.

3.  Personnel Selection:  Commonly used personnel selection techniques include work samples, interviews, biographical inventories, assessment centers and standardized tests. Cognitive ability tests and job knowledge tests have been shown to have the highest validity for job selection purposes across different jobs, while interest inventories generally have the lowest validity.

4.  Legal Issues in Personnel Selection:  When selecting or evaluating personnel, legal issues must be considered, especially those set forth in the EEOC’s Uniform Guidelines.  A potential legal problem is adverse impact, which occurs when minority group members are hired at a substantially lower rate than majority group members.  Causes of adverse impact include differential validity and unfairness.  

5.  Psychometric Issues in Personnel Selection:  Several factors determine the usefulness of a selection test.  Besides being reliable and valid, a selection instrument should increase decision-making accuracy (i.e., should have incremental validity) and should be cost-effective.  A measure’s incremental validity is affected by the selection ratio (percentage of applicants to be hired), the base rate (proportion of current employees considered successful), and the measure’s validity coefficient. Incremental validity can be estimated by subtracting the base rate from the positive hit rate (the proportion of employees hired with the new selection test who are successful on the job).

6.  Training:  Needs analysis is the first step in developing a training program.  It involves three components:  organization analysis, task analysis, and person analysis.  The second step, program design, involves choosing the appropriate training program format (e.g., on-the-job training, vestibule training, classroom training, or programmed instruction).  The final step is program evaluation, in which the effectiveness of training is assessed.  Evaluations can be formative (which take place as the program is being developed) or summative (conducted after the program is complete).

7.  Career Counseling:  Tests used in career counseling include achievement tests, aptitude tests, and interest inventories.  Aptitude tests are designed to measure a person’s potential for learning, whereas achievement tests measure how much content a person has mastered in a particular content domain.  Since the distinction between these two types of tests is not all that clear, some experts recommend that the term “ability test” be used to refer to both.

8. Theories of Career Choice:  Theories related to career choice focus either on the personality variables that affect career decisions or on the stages of career development.  Holland’s Personality and Environmental Typology is an example of the former; Super’s Career and Life Development Theory is an example of the latter.  

B.  Key Concepts

Activities of interest to personnel psychologists include evaluation of employee performance, personnel selection and training, and career counseling.  Many of these activities make use of information derived from a job analysis.  

1.  JOB ANALYSIS

A job analysis is conducted in organizations for several reasons, including developing and validating selection and recruitment instruments, identifying measures of job performance, and assisting in the development of training programs.  The various job analysis techniques provide information that is job-oriented, worker-oriented, or a combination of the two.  Job-oriented techniques focus on the task requirements of the job (e.g., lifting, repairing, installing), while worker-oriented techniques identify the knowledge, skills, abilities, and personal characteristics that are required for successful job performance (e.g., high school education, manual dexterity, 20/20 vision, adaptability).

Methods of job analysis include interviews, questionnaires, direct observation, and work diaries.  The interview approach involves interviewing workers currently performing the job, their supervisors, and/or other knowledgeable individuals.  One of the most frequently used questionnaires in job analysis is the Position Analysis Questionnaire (PAQ).  It consists of 194 job elements that are organized into six divisions, each representing a different facet of job behavior:  information input, mental processes, work output, relationships with other persons, job context, and other job characteristics.  When using the PAQ, a job is rated in terms of the importance of each of these six elements.  Direct observation involves watching workers perform their jobs and may include the use of video cameras.  Finally, information about a job can be obtained by having employees keep a detailed record of their activities in a work diary or log.

2.  PERFORMANCE EVALUATION

Performance evaluation, also called performance appraisal or merit rating, is the process of evaluating a person’s job performance.  Performance evaluation is most commonly undertaken to determine whether an employee is entitled to a raise or bonus, but it is also used to provide employees with feedback about their performance and to help make decisions related to promotions, placement, transfers, or dismissals.  The measures used to evaluate employee job performance are sometimes called “criterion measures,” and they are categorized as being either objective or subjective.

Objective Measures:  Objective measures are direct, quantitative measures of performance.  For example, a car salesman’s effectiveness can be measured by the number of cars sold, and a lawyer’s job performance can be assessed by determining the percentage of cases won.  Other objective measures include salary, number of work days missed, and number of absences.  A limitation of objective measures is that they do not measure many important facets of job performance, such as an employee’s motivation or ability to cooperate with or supervise others. Also, objective data are limited by situational factors (e.g., equipment difficulties, number of coworkers, the economy), and they may not be useful for evaluating performance in complex jobs.

Subjective Measures:  Subjective measures of job performance rely on the judgment of a rater.  Subjective measures are useful for assessing complex, less concrete aspects of job performance, such as motivation, ability to supervise, problem-solving ability, and effectiveness when working with others.  However, subjective measures have disadvantages.  Raters are sometimes not motivated to provide accurate ratings or do not understand the rating scale.  These measures are also affected by rater biases (see below), which limit their reliability and validity.  

In organizations, ratings of job performance are usually made by the employee’s supervisor.  However, ratings can also be made by the employee him/herself, peers, and others familiar with the employee’s performance.  Research on peer ratings has shown that they are valid as predictors of job performance, particularly for predicting supervisor ratings, promotions, and training success. In recent years, there has been growing interest in “360-degree” performance measures, which incorporate ratings from multiple raters such as supervisors, supervisees, peers, subordinates, and customers.  These measures are designed to provide information that is useful for feedback to managers for the purpose of management development (Morgan and Smith, 1996).

Subjective Rating Techniques

Subjective rating techniques include Personnel Comparison Systems, Critical Incidents, Behaviorally Anchored Rating Scales, Behavioral-Observation Scales, and Forced Choice Checklists.

Personnel Comparison Systems (PCS):  These techniques involve rating an employee by comparing him/her to other employees.  In a rank-ordered system, the rater ranks employees from best to worst.  In a paired comparison system, each employee is compared with every other employee on each job behavior.  The larger the number of employees, the more impractical this method is to use. In a forced distribution system, the rater categorizes employees into a predetermined distribution (e.g., the top 10%, the next 25%, the middle 30%, the next 25%, the bottom 10%).  An advantage of Personnel Comparison Systems is that they reduce the effects of certain rater biases (e.g., central tendency, leniency and strictness).  

Critical Incidents:  Critical incidents are descriptions of specific job behaviors that are associated with very good and very poor performance.  The original “critical incident method” involved having the supervisor observe employees while they worked and keeping a tally of good and poor job behaviors for each employee.  Subsequently, critical incidents were incorporated into Likert-type rating scales so that each point on the scale is “anchored” with a description of a specific job behavior.  “Is late for work at least twice a week” is an example of a negative critical incident; “discusses problems with employees effectively” is an example of a positive critical incident.  

Behaviorally Anchored Rating Scales (BARS):  When using BARS, employees are rated on several dimensions of job performance. For each dimension (e.g., motivation, decision-making), a set of “behavioral anchors” (critical incidents) is created, with each anchor being tied to a numerical point on a Likert-type scale. For example, if we were rating clinical psychologists on the dimension of empathy, a 7-point BARS might look like the following:

A BARS for Rating Clinical Empathy

7: Is very supportive and concerned if patient is distressed.

6: Makes appropriately-timed interventions.

5: Allows patient freedom to express him or herself.

4: Inquires if patient has any feelings he or she wishes to discuss.

3: Speaks a lot about him or herself.

2: Discusses patient with colleague in an exhibitionistic manner.

1: Is often late to begin sessions and/or often cancels sessions.

BARS differs from other rating scales in its construction, which involves several steps and multiple contributors.  Different groups of workers and supervisors are responsible for identifying job dimensions and the critical incidents for each dimension and for ranking the identified critical incidents in terms of their importance to job performance.  An advantage of BARS is that it produces information that is useful for employee feedback.  In addition, its format and development process may improve rating accuracy.  Disadvantages of BARS are that it is time-consuming to construct and is usually specific to the particular job for which it was developed.   

Behavioral-Observation Scales (BOS):  BOS is similar to BARS in terms of advantages and disadvantages.  However, unlike BARS where raters select the critical incident for each job dimension that best describes the employee’s behavior, when using BOS, the rater indicates how often the employee performs each critical incident (e.g., always, sometimes, never).

Forced-Choice Checklists (FCCL):  A FCCL presents the rater with a series of statements that have been grouped so that the statements in each group are similar in terms of social desirability and ability to distinguish between successful and unsuccessful job performance.  Ideally, this format helps reduce social desirability and other rater biases.  

Rater Biases

As mentioned above, the accuracy of subjective ratings may be limited by rater biases.  These include the halo effect, the central tendency bias, the leniency bias, the strictness bias, and the contrast effect.

Halo Effect:  The halo effect is the tendency to judge all aspects of a person’s behavior on the basis of a single attribute or characteristic.  For example, if a supervisor gives a high rating to an employee on cooperation and, as a result, also gives the employee high ratings on other unrelated dimensions of job behavior, the supervisor is exhibiting a positive halo.  In contrast, if the supervisor rates an employee low on cooperation and then also gives the employee low ratings on other dimensions, the supervisor is exhibiting a negative halo.

Central Tendency, Leniency, and Strictness Biases:  The central tendency bias is the tendency to assign average ratings to all ratees; the leniency bias is the tendency to give all ratees positive ratings; and the strictness bias is the tendency to assign negative ratings to all ratees.

Contrast Effect:  The contrast effect refers to the tendency to give ratings on the basis of comparisons to other ratees.  For example, when rating employees, if the first three employees are very poor workers, the rater might give the fourth employee (who is actually mediocre) inaccurately high ratings.  

Although the format of a rating scale can alleviate rater biases to some extent, it is generally agreed that the best way to reduce bias is to adequately train raters.  Training is most effective when it focuses less on rating errors and more on accuracy — i.e., on teaching raters to recognize the multiple contributors to good job performance and to evaluate behavior in an objective way.  Frame-of-reference training was designed specifically to help raters recognize the multidimensional nature of job performance and to ensure that different raters have the same conceptualizations of job performance (Woehr, 1994).

3.  PERSONNEL SELECTION

The selection of personnel involves determining whether job applicants have the knowledge, skills, abilities, and personal characteristics (“KSAPs”) required by the job.  Commonly-used selection techniques and legal and psychometric issues related to personnel selection are discussed below.

Selection Procedures

Selection techniques (“predictors”) are used to predict job performance and thereby facilitate hiring decisions.  Commonly-used selection techniques include cognitive ability tests, job knowledge tests, work samples, interviews, biographical inventories, assessment centers, personality tests, and interest inventories.

General Mental Ability (also called cognitive ability and general intelligence) Tests:  Although the results of the meta-analyses have not yielded entirely consistent results, it is probably safe to say that cognitive ability tests are the most valid predictors of job performance across jobs and settings, with their validity increasing as the complexity of the job increases.  Obtained validity coefficients for cognitive ability tests vary depending on who is conducting the analysis and what the criterion of success is.  For instance, Schmitt, et al. (1998) report an average validity coefficient of .51 when cognitive ability tests are used to predict performance ratings; Hunter and Hunter (1984) report an average validity coefficient of .75 when such tests are used to predict performance on a work sample.  

Job Knowledge Tests:  Job knowledge tests are job specific,  commonly used when individuals have previous experience or training, and are considered good predictors of performance. There is less research on job knowledge tests than on cognitive ability tests.  However, one meta-analysis of the studies indicates that the average validity coefficient for job knowledge tests is .62, which is higher than the coefficients usually reported for cognitive ability tests (Dye, Reck, and Murphy, 1993).  The validity of job knowledge tests increases as job complexity and job-test similarity increase.  

Work Samples:  Work (job) sample tests measure a sample of work behavior in standardized, job-like conditions.  Examples of work samples include a carving dexterity test for dental students; shorthand and stenography tests; programming tests for computer programmers; and the in-basket test for managers.  Work samples have several uses in organizations.  As selection techniques, they are generally good predictors of job performance. In a meta-analysis by Roth, Bobko and McFarland (2005), an observed mean correlation between work sample tests and measures of job performance of .33 was found when measures of job performance (e.g., supervisory ratings) were corrected for attenuation. The research also suggests that work samples of motor skills have more validity than work samples of verbal skills (Asher and Sciarrino, 1974).  Additional advantages of work samples as a selection technique are that they are acceptable to applicants and are less likely than other methods to unfairly discriminate against members of minority groups.    

Work samples are also used as trainability tests, which are designed to identify people who are likely to benefit from training.  When used for this purpose, work samples include a period of structured, controlled learning followed by an evaluation of work performance.   Finally, work samples are sometimes part of a realistic job preview, which may also include a written description of the job, interviews, group discussions with current employees, and other activities.  The purpose of a realistic job preview is to prevent unrealistic expectations about a job in order to reduce turnover.  

Interviews:  Although interviews are the most commonly used selection technique, they tend to be only moderately accurate in predicting job performance.  For example, one meta-analysis reports the average validity coefficient for interviews is .37 (McDaniel, Whetzel, Schmidt, and Mauer, 1994).  Interview validity depends on the content of the interview (situational, job related, or psychological), the nature of the criterion (job performance, training performance) and how the interview is conducted (structured vs. unstructured;  individual vs. panel). Research on interviews indicates situational interviews have higher validity than job-related interviews, which have higher validity than psychologically based interviews. Structured interviews have been found to have higher predictive validity than unstructured interviews, .51 and .38, respectively (Schmidt and Hunter, 1998) and structured board interviews using consensus ratings are associated with the highest corrected validity (Wiesner and Cronshaw, 1988).

Biographical Information (Biodata):  Biographical inventories ask for information about an applicant’s work history, education, and personal interests and skills.  They can be highly predictive of job success when they have been empirically validated — that is, when items are included because they correlate highly with job performance.  Indeed, many experts believe that biographical data is only slightly less valid than cognitive ability for predicting job performance (Tett, Meyer, and Roese, 1994).

One advantage of biodata as a selection tool is that it is particularly useful for predicting turnover, which is important to companies that are concerned about the costs of hiring and training employees who will stay on the job for only a short period of time.  Cascio (1976), for example, reported validity coefficients of .77 and .79 for predicting the turnover of whites and African-Americans, respectively.   These figures not only confirm the predictive accuracy of biodata but also indicate that biodata is equally valid for members of different racial/ethnic groups.

There are a number of empirically derived biographical information forms.  When using a Weighted Application Blank, items are given different weights (numerical values) based on their correlation with a measure of job performance.  By summing the weights, a total score can be derived for each applicant. The Biographical Information Blank (BIB) assesses a wider range of biographical and attitudinal issues than a Weighted Application Blank and presents items in a multiple -choice format. One disadvantage of empirically derived biographical information forms is that they are specific to the job and to the organization for which they were devised.  In addition, although items correlate with job performance, they may lack “face validity” (i.e., they may not look like they have anything to do with job performance).  

Assessment Centers:  Assessment centers are used for the selection, promotion, and training of administrative and managerial level employees. They are usually conducted in groups and include multiple methods of assessment such as structured interviews, tests, and simulation exercises (work samples).  The in-basket test is an example of the latter.  It involves seeing how a participant responds to the kinds of tasks (memos, reports, messages) that he or she would actually encounter on the job. Each participant in an assessment center is evaluated by an assessment team, which rates the participant on a series of dimensions such as decision-making, administrative ability, persuasiveness, impact, flexibility, and motivation.  

Reported validity coefficients for assessment centers are generally high, especially when performance in the assessment center is correlated with future promotions (Klimoski and Strickland, 1977).  However, the validity of assessment centers has been questioned since their evaluation may be affected by criterion contamination, which artificially inflates the validity coefficient.  Criterion contamination occurs when a rater’s knowledge of a person’s performance on a selection instrument (e.g., performance in the assessment center) affects how the rater evaluates the person’s performance once he or she is on the job.  Finally, assessment centers are expensive to develop and administer, making them difficult for many companies to use.

Personality Tests:  Since 1990, many studies have challenged the earlier conclusion that personality tests are not good predictors of job performance.  For instance, research on the “big-five” personality dimensions of extraversion, agreeableness, openness, emotional stability, and conscientiousness has shown that conscientiousness is an accurate predictor of job performance and training success across a wide range of settings.  (The big-five personality traits have been repeatedly identified by factor analyses as the core traits that underlie all other personality characteristics.)  In addition, personality tests that measure specific characteristics have been found to be more accurate predictors of job performance than those measuring more global traits.  For example, a mean validity coefficient of .50 has been reported for a test of agreeableness and emotional stability in predicting the performance of workers in customer service jobs (Hogan, Hogan, and Roberts, 1996).  Finally, there is some evidence that personality tests are better predictors of contextual performance (i.e., enthusiasm, effort, and other behaviors that contribute to the social and psychological environment of the organization), while cognitive ability tests are better for predicting task performance (Arvey and Murphy, 1998).

Interest Inventories:  Interest inventories (e.g., the Strong-Campbell Interest Inventory (SCII) or Kuder Occupational Interest Survey) have low validity for predicting occupational success. However, they are useful for vocational counseling and for predicting job satisfaction, job persistence, and job choice.

Integrity Tests:  Even though their validity is lower in terms of predicting job performance, integrity tests are used to select employees with reduced probability of counterproductive job behaviors, such as sabotaging equipment, stealing, drinking, using drugs or fighting on the job, etc.

4.  LEGAL ISSUES IN PERSONNEL SELECTION

Several legal issues must be considered when using selection tests and other employment procedures.  

Adverse Impact

The Equal Employment Opportunity Commission (EEOC) has developed the Uniform Guidelines on Employee Selection Procedures, which provide standards for tests and other procedures that are used as a basis for employment decisions.  A critical term in the Uniform Guidelines is adverse impact.  A selection procedure is having an adverse impact when it produces a substantially different rate of selection for different groups that are defined on the basis of gender, race/ethnicity, age, etc.  

Adverse impact can be determined mathematically using the 80 percent (4/5ths) rule.  When using this technique, adverse impact is occurring when the selection rate for a minority group is less than 80% of the selection rate for the majority group.  For example, if 60% of male applicants are hired, at least 48% (.80 x .60 = .48) of female applicants must be hired.  If the rate for females is less than 48%, then adverse impact is occurring.

Note that adverse impact may be permitted when the selection criterion is a “bona fide occupational qualification” (BFOQ). This means that there is a valid reason for hiring a substantially larger proportion of a particular subgroup.  In other words, if an employer can demonstrate that it is job related and a business necessity, despite having adverse impact, the employer may be able to continue using the procedure.  If a job requires heavy lifting, for example, a measure of physical strength would be acceptable even though its use results in hiring more men than women. Adverse impact does not mean that unfair discrimination has occurred; however, if adverse impact is established, the employer is responsible for demonstrating that the selection procedure used is valid and necessary.

Causes of Adverse Impact:  Adverse impact has many causes including differential validity and unfairness.  Differential validity occurs when the validity coefficients for two subgroups differ significantly.  An example would be a selection test that has a high validity coefficient for males but a very low validity coefficient for females.  The research suggests that differential validity is actually a rare phenomenon and, when it occurs, it negatively affects the majority group just as often as the minority group (McCormick and Ilgen, 1985).

Unfairness occurs when one group consistently scores lower than another group on a selection test, but both groups perform equally well on the job.  In this situation, the selection test might be a valid predictor for both groups (i.e., there may be a high correlation between the selection test and job performance for both groups), but because members of one group consistently score lower on the test, they are much less likely to be hired.

Score Adjustment

For certain tests, women and members of some minority groups tend to score lower than men and members of the majority group. Several methods for compensating for this bias have been suggested (Sackett and Wilk, 1994):

Separate Cutoffs:  This entails setting different cutoff scores on the selection test for different groups.

Within Group Norming:  This method involves converting raw scores to standard scores, percentile ranks, or other norm-referenced scores within each group and then using the same predetermined cutoff for both groups.  When using this technique, members of different groups can obtain different raw scores on a test but the same norm-referenced score.   

Banding:  Banding involves treating scores within a given score range (or band) as equivalent.  For example, all scores between 91 and 100 might be assigned to Band 1, all scores between 81 and 90 might be assigned to Band 2, etc.  Applicants scoring within a given band are viewed as equivalent.

Americans with Disabilities Act

The Americans with Disabilities Act of 1990 (ADA; amended 1994) prohibits employers, employment agencies, labor organizations, and joint labor-management committees from discriminating against “a qualified individual with a disability because of the disability of such individual in regard to job application procedures, the hiring, advancement, or discharge of employees, employee compensation, job training, and other terms, conditions, and privileges of employment.”  Under this act, a qualified individual with a disability is a person whose physical or mental impairment substantially limits one or more of his/her major life activities but who can perform the essential functions of the job with or without reasonable accommodation.  

Examples of discrimination, as defined by the ADA, include the following:

• Classifying a job applicant or employee based on a disability in a way that adversely affects that person’s opportunities or status.

• Using qualification standards, employment tests, medical tests, or other selection criteria that screen out individuals with a disability, unless the selection criterion is shown to be job-related.  

• Failing to select and administer employment tests in a manner that ensures that test results accurately reflect the skills of a disabled person.

• Not making reasonable accommodations to the known physical or mental limitations of an otherwise qualified individual with a disability, unless it can be demonstrated that the accommodation would impose an undue hardship on the organization.  “Reasonable accommodation” includes making facilities accessible to people with disabilities, job restructuring, adjusting work schedules, modifying examinations, and providing qualified readers or interpreters.

Note that the ADA specifically excludes individuals who are “currently engaging in the illegal use of drugs” from protection under its provisions.  However, it does protect past substance abusers as long as they are participating in or have completed a supervised rehabilitation program and are not currently using drugs.  Drug testing is not prohibited by the ADA.  

5.  PSYCHOMETRIC ISSUES IN PERSONNEL SELECTION

The usefulness of a selection test is affected by several factors including its reliability, validity, incremental validity, and utility.  Reliability and validity are covered in the TEST CONSTRUCTION section; incremental validity and utility are discussed below along with methods for combining multiple predictors.  

Incremental Validity

Incremental validity refers to the usefulness of a selection test in terms of decision-making accuracy.  A test’s incremental validity can be determined in a couple of ways.  When data from a criterion-related validity study are available, incremental validity can be calculated by subtracting the “positive hit rate” by the “base rate.”  For example, say that the data indicates that 50% of employees hired using current selection procedures turn out to be good workers.  In this situation, the base rate is 50%.  If the data from the validity study show that, when the new selection test is used, 70% of those hired will be good workers, then the positive hit rate is 70%.  When the base rate of 50% is subtracted from the positive hit rate of 70%, we get 20%, which means that the incremental validity of the test is 20% — i.e., that use of the new selection test will increase the company’s decision-making accuracy by 20%.  

Incremental Validity = Positive Hit Rate - Base Rate

             = 70% - 50% = 20%

Alternatively, a test’s incremental validity can be determined using the Taylor-Russell tables, which provide an estimate of the positive hit rate based on the test’s validity coefficient, the base rate, and the selection ratio.  As noted above, the base rate is the proportion of employees hired using current techniques who are successful.  The selection ratio is the ratio of the number of job openings to the total number of applicants. If there are 100 applicants for a single job, the selection ratio is low; if there are only three applicants, the selection ratio is high.  

If you looked at the Taylor-Russell tables (which isn’t necessary for the licensing exam), you’d see that a measure’s incremental validity is maximized when its validity coefficient is large, when the base rate is moderate, and the selection ratio is low: A high validity coefficient is always preferred since that means that test scores are accurate predictors of job performance.  A moderate base rate (around 50%) is optimal because it suggests that a new predictor is likely to be helpful.  (When the base rate is high, the current procedure is already doing a good job; when it is low, this suggests that something other than selection is the problem — e.g., that the standard for judging good job performance is too high.)  Finally, when the selection ratio is low, this means that there are many applicants, which helps ensure that there will be qualified applicants to choose from.  

Utility Analysis

Utility analysis is used to assess the cost-effectiveness of a selection procedure.  There are a number of different methods of utility analysis.  In the most commonly used method, utility is defined as the dollar gain in job performance when using the selection procedure of interest as opposed to using a prior or alternative procedure.  The mathematical formulas used to derive an estimate of utility are very complex and won’t be given here. However, the variables included in most formulas are the average number of years of incumbents in the target position, the number of people to be selected for the position, the difference in the validity coefficients in the two procedures under consideration, the standard deviation of the dollar value of job performance, the selection ratio, and the difference in cost associated with the two procedures being considered (Goldsmith, 1990).

Combining Predictors

Multiple predictors are often preferred because they provide more information about applicants than just one predictor.  To be useful, each predictor should have a high correlation with the criterion.  However, to ensure that predictors aren’t providing redundant information, each predictor should have low correlations with the other predictors.  (The term multicollinearity is used to describe the situation when predictors are highly correlated.)  Methods of combining predictors include the following:

Multiple Regression:  Multiple regression is used to estimate an applicant’s score on a criterion on the basis of his or her scores on two or more predictors.  For example, the scores of an applicant for a sales position on three measures — a cognitive ability test, a job knowledge test, and a weighted application blank — might be plugged into a multiple regression equation to predict the dollar amount of sales the applicant will generate for the company during a six-month period.  Multiple regression is a compensatory technique:  This means that an applicant who gets a low score on one predictor can “make up for it” by doing very well on another predictor.  (Multiple regression is discussed in more detail in the STATISTICS section of your materials.)

Multiple Cutoff:  When this method is used, applicants must score above a minimum cutoff point on each predictor in order to be hired.  If the applicant scores below the cutoff on any predictor, the applicant is not hired, regardless of his or her scores on the other predictors.  In other words, multiple cutoff is a noncompensatory technique, since a low score on one predictor cannot be made up for by a high score on another.  It is a useful procedure whenever a minimum level of competence in multiple domains is necessary to succeed.  For example, if an airline is using tests of visual and auditory acuity, motor skills, and job knowledge to hire pilots, it would probably prefer the multiple cutoff technique to multiple regression.

Multiple Hurdle:  The multiple hurdle technique is also noncompensatory.  When using this method, applicants must also meet a minimum level of performance on multiple predictors in order to be selected.  However, predictors are administered one at a time, in a predetermined order, with each predictor being administered only if the applicant was successful on the previous one.  In other words, unlike multiple cutoff, not all predictors will be administered to all applicants.  As a result, the multiple hurdle technique can save time and money.  

6.  TRAINING

Training is conducted in organizations for many reasons.  One national survey found that the most frequent types of training are occupation-specific technical training followed by computer-related and managerial-supervisor training (U. S. Bureau of Labor Statistics, 1992).  Regardless of the type of training, there are three basic steps in training program development:  needs analysis; program design; and program evaluation.

Needs Analysis

A needs analysis involves determining if and what kind of training is necessary.  It consists of four components:  The first is an organization analysis, which answers the question “Is training what the organization needs to solve its problems?” Next is a task analysis, which is similar to job analysis and entails determining what knowledge, skills, and abilities are required to perform the job satisfactorily.  Task analysis yields a set of objectives that form the instructional goals.  Finally, there is person analysis, which helps determine if employees have deficits in the areas identified by the task analysis and demographic analysis, which helps determine the training needs of employees from different groups (i.e., younger vs. older employees).

Program Design

The selection of a training program format is based on consideration of cost factors, material to be taught, and characteristics of the trainees.  A general rule is that the most effective training program is the one that teaches skills that closely approximate those necessary for the job.  That is, the more similar the training situation to the actual job situation, the greater the transfer of training.  Common types of training are on-the-job training, classroom training, and programmed instruction.

On-The-Job Training:  On-the-job training involves having a trainee perform the job under the guidance of an experienced employee, supervisor, or training instructor.  Job rotation, a type of on-the-job training, involves “rotating” employees through several jobs to increase their range of skills so they can perform other jobs in the company.  On-the-job training offers several advantages, not the least of which is economy. The company does not have to establish a separate training facility or employ professional trainers.  However, there are disadvantages.  On-the-job training is often carelessly planned and poorly implemented, and there is the danger that production rates will be slowed and that accident rates will increase. Finally, current workers may not make the best trainers.

Vestibule Training:  Vestibule training attempts to combine the advantages of off-the-job and on-the-job training.  It involves providing training in a physical replication or simulation of the actual work environment and conditions.  Examples include a “mock-up” assembly line and a flight simulator.  Vestibule training is particularly useful when the consequences of errors or slowdowns are too serious for on-the-job training, when repeated practice is required to learn the task, and when special coaching is required.  

Classroom Training:  With classroom training, a simulated work environment is set up in a separate training facility. Because its purpose is solely to train workers, there is no emphasis on production.  This and the use of professional trainers means that more personalized attention can be given individual trainees.  Also, trainees do not have to worry about making costly or embarrassing errors, damaging equipment, or slowing production.

Programmed Instruction:  Programmed instruction presents information that has been broken down into logical, organized sequences.  It ranges from paper-and-pencil book-type formats to more sophisticated computer-assisted instruction.  Programmed instruction is not effective for teaching many complex skills, but it is useful for teaching content knowledge, especially that requiring rote memorization.  An advantage of programmed instruction is that it allows trainees to progress at their own pace.  

Program Evaluation

When a program evaluation is conducted, it ordinarily occurs along three dimensions:  1) Formative evaluations assess variables internal to the program, including trainees’ assessments of program effectiveness, satisfaction with the program, and degree of learning.  The purpose of a formative evaluation is to identify necessary changes to the program that can be made while the program is in progress. 2) Summative evaluations are done to assess the effectiveness of the program. Summative evaluations take place after the program is complete. 3) Finally, a training program is evaluated in terms of its cost-effectiveness.

One popular approach to the evaluation of training and learning programs in organizations is Kirkpatrick’s (1976, 1994, 1998) framework of four ‘levels’ of criteria. Kirkpatrick’s evaluation model delineates four levels of training outcomes: reaction, learning, behavior, and results. Each level of evaluation is used to assess the effectiveness of training programs and the effects of the training on the employees.

Level 1: reaction criteria focus on the participants' response to the training or intervention, often assessing trainees’ affective responses to the quality (e.g. satisfaction with the instructor) or the relevance (e.g. work-related utility) of training.

Level 2: learning criteria quantifiably measure what has been learned during the course of the training, often using pre/post-tests or end-of-course tests. 

Level 3: behavior criteria address the impact of the intervention on the individual’s behavior or performance in the workplace.

Level 4: results criteria measure the impact of training on the broader organizational goals and objectives. In recent practice, the typical focus of has been on organizational-level financial or non-financial measures.

Phillips' (2000), return on investment (ROI), is a “level 5” evaluation, proposed to calculate the return on investment of an intervention or training. Phillips’ Five Level ROI is an expansion of Kirkpatrick’s model and encourages ROI evaluations for each of the first four levels.

7.  CAREER COUNSELING

A recent trend in organizations is providing employees with career planning assistance.  Techniques used in companies for this purpose include tuition reimbursement, career seminars, individual career counseling, and testing.  

Tests Used In Career Counseling

Tests commonly used in career counseling include aptitude tests, achievement tests, and interest inventories.  Since interest inventories are covered in the CLINICAL PSYCHOLOGY section, only achievement and aptitude tests will be reviewed here.

Aptitude Tests:  Aptitude tests are designed to assess a person’s potential for learning or performance. Included in this category are special aptitude tests and multiple aptitude batteries.

Special Aptitude Tests:  Special aptitude tests are used to assess specific abilities needed for a particular job. Examples are measures of psychomotor abilities, which include the Purdue Peg Board, the O’Connor Finger Dexterity Test, and the Minnesota Rate of Manipulation Test.  Because special aptitudes usually do not correlate, a score on a measure of one aptitude (e.g., visual tracking) is not likely to be a good predictor of a score on a measure of a different aptitude (e.g., lifting heavy objects).  In other words, special aptitude tests have a high degree of specificity.

Multiple Aptitude Batteries:  Multiple aptitude batteries consist of a number of tests or subtests that each measure a different aptitude.  The Differential Aptitude Test (DAT) includes measures of both job-related and general cognitive abilities (e.g., verbal reasoning, clerical skills, mechanical reasoning).  It was designed for use with students in grades 8-12 to assist in career and educational counseling but is also used with adults.  The General Aptitude Test Battery (GATB) is appropriate for high school seniors and adults for the purposes of vocational counseling and job referral.  

Achievement Tests:  Achievement tests measure how well a person has mastered a particular domain; i.e., how much a person has learned.  A career counselor might use an achievement test to determine if a person has the basic reading and math skills required by a job.      

Note that the distinction between aptitude and achievement tests is not absolute.  A person’s mastery of a content domain, as reflected by the results of an achievement test, may also be indicative of his or her potential for learning.  And a person who is well-educated is likely to score higher on most aptitude tests, regardless of his or her so-called potential for learning. For this reason, many authors use the term “ability test” to refer to both achievement and aptitude tests, with ability being defined as “capacity to perform a task” (Aiken, 1985).

8. THEORIES OF CAREER CHOICE

Theories of career choice are often divided into two main types.  The first emphasizes the personality variables that lead a person to choose a particular occupation. The second focuses on the sequence of stages a person passes through in his or her vocational development.  Holland’s Personality and Environmental Typology is an example of the former; Super’s Career and Life Development Theory is an example of the latter.  Other career choice theories are based in learning, values-based and constructivist theories.

Holland's Personality and Environment Typology:  Holland (1985) proposed that all behaviors (including career choice) are a function of personality and the social environment.  He distinguished between the following six personality types (which can be memorized using the acronym RIASEC):

1.  Realistic:  Prefers activities involving the manipulation of machinery or tools.

2.  Investigative:  Analytical, curious, methodical, and precise.

3.  Artistic:  Expressive, nonconforming, original, and introspective.

4.  Social:  Enjoys working with others and avoids ordered, systematic activities which involve tools or machinery.

5.  Enterprising:  Leans toward activities which entail manipulating others in order to attain organization goals or economic gain.

6.  Conventional:  Enjoys the systematic manipulation of data, filing records, or reproducing materials.

The six personality types are depicted in a hexagon so that those adjacent to each other are most similar (e.g., realistic and investigative), and those opposite each other are most dissimilar (e.g., realistic and social).  

Holland also classified occupational environments in terms of the same six categories, and he referred to the fit between personality type and occupational environment as “congruence.”  For example, if a person whose predominant personality type is realistic is working in a realistic environment, there is congruence.  Consequently, the person will be satisfied, productive, and likely to stay in that environment.  

When an individual scores high on one of the six interests and low on all the others, there is a high degree of differentiation. According to Holland, the personality-environment match is most accurate as a predictor of job-related outcomes when there is a high degree of differentiation. 

Holland’s personality types can be measured using the Vocational Preference Inventory, the Self-Directed Search, or the Strong-Campbell Interest Inventory.  Each yields a profile that describes the individual’s personality in terms of a two or three letter code.  A career counselor, for example, would be likely to have an SEA profile, which means that his/her personality is primarily social, enterprising, and artistic, in that order.

Roe's Fields and Levels Theory:  Anne Roe's (1956) theory of vocational choice links children’s experiences with their parents to their later occupational choice and the level they achieve within that occupation.  Roe distinguished between three parenting orientations:  overprotective, avoidant, and acceptant.  She also identified eight occupational fields (e.g., business, science, arts and entertainment) and six occupational levels (e.g., managerial, skilled, unskilled).  According to Roe, parenting orientation affects children’s needs and personality traits that, in turn, influence occupational outcomes.  For example, children of avoidant parents gravitate toward object-oriented fields such as science or technology, and, if they had to work hard during childhood to satisfy their needs, they are likely to achieve a higher occupational level within their chosen field.

Super's Career and Life Development Theory:  Super's (1996) life-space, life-span theory of career development is based on the assumptions that career development can be described in terms of a predictable sequence of stages and that the tasks of each stage must be mastered in order for the individual to progress to the next stage.  Key concepts in Super’s theory are self-concept, life span, career maturity, life space and life-career rainbow.  Self-concept refers to the person’s abilities, interests, values, personality traits, physicality, etc. Super suggested people achieve job satisfaction when they are able to express themselves and develop their self-concept through their work roles.

Super's proposed five developmental stages of career development across the life span include:

Growth (Birth - 15 years):  In this stage, the person begins to develop capacities, attitudes, interests, and needs associated with the vocational self-concept.  Career-related behaviors include fantasy, play, and, later in the stage, thinking about abilities and job requirements.

Exploration (15-24 years):  In this stage, career choices are narrowed but not finalized.  Self-examination, role try-outs, and occupational exploration take place in school, leisure activities, and part-time work.

Establishment (25-44 years):  In this stage, an effort is made to establish a permanent place in the chosen occupational field.  Changes may occur in position, job, and employer, but not in occupation.

Maintenance (45-64 years):  Maintenance represents a continuation of the person’s established pattern.  The person is concerned with maintaining the position and status established in the previous stage.

Decline (65+ years):  This stage is characterized by a decline in work output and eventual retirement.  The person has to find non-vocational sources of satisfaction and, as a result, a modification of the self-concept is required.

Career maturity refers to the extent that a person has mastered the tasks related to his or her developmental stage. When describing adults, the term career adaptibility is sometimes used as well. Career maturity can be measured with Super’s Career Development Inventory or Crites’s Career Maturity Inventory.  Life space refers to the varied social roles adopted at different points during the life span (e.g., child, student, worker, spouse).  

In his more recent writings, Super (1994) uses five figures to illustrate aspects of his career development theory: 1) the Life Career Rainbow; 2) the Archway of Career Determinants; 3) the Ladder Model of Life Career Stages; 4) the Cycling and Recycling Model for Career Tasks; and 5) the Web Model for Bases of Career Maturity. The first two figures are most critical to Super’s theory.  The Life Career Rainbow depicts the nine major roles (child, student, worker, partner, parent, citizen, homemaker, leisurite, and pensioner) that an individual adopts during five different life stages of career development.  The Archway depicts the personal and environmental factors that combine to determine a person’s career path (e.g., interests, self-concept, peer groups, economy). 

Tiedeman and O’Hare’s Decision Making Model:   Tiedeman and O’Hare felt that Super’s 1953 self-concept model fell short of being a complete model for personal development.  They believed that theories related to career choice and development should address not only the “making of a living,” but also the “making of a life.”  In developing this idea in 1963, they based their concept on Erikson’s 1959 psychosocial theory of ego identity.  They used it as a framework for understanding the many differentiations and reintegrations of an individual’s experience during career development.  They posed career-related correlates to each of Erikson’s eight psychosocial crisis resolutions (trust, autonomy, initiative, industry, identity, intimacy, generativity, and integrity) over a lifespan that includes the stages of infancy, early childhood, play age, school age, adolescence, and young adulthood.

Differentiation would come from the realization that an occupation is not “fitting” with a person’s personality.  From this awareness, a different choice would be considered and action eventually taken.  The different choice would be considered implementation.  Tiedeman and O’Hare noted that implementation might not always lead to a successful reintegration and that the process could take place many times in the career life of an individual.

Miller-Tiedeman and Tiedeman's Decision Making Model:   Miller-Tiedeman and Tiedeman (1979) built upon and expanded this earlier model.  They defined two kinds of reality, personal reality and common reality.  They espoused the notion that in order for individuals to enhance the development of their careers, they must be aware of the two realities.  Personal authoritative reality is defined as a thought, act, direction, or behavior that the individual feels is right for him or herself. On the other hand, common reality is what “they” say you should do, for example, “if you don’t get a good education, you can’t get a good job.”

Gottfredson’s Theory of Circumscription and Compromise:  Gottfredson's (2002) theory addresses about how gender and prestige influence and limit career choice.  The theory indicates four stages of cognitive development including: orientation to size and power; orientation to sex roles; influence of social class; introspection and perceptiveness. The first stage typically begins around age 3 and the last in mid-adolescence.  Gottfredson postulates the expression of occupational aspirations emerges as a process of elimination, or is the outcome of the competing processes of circumscription and compromise.  Circumscription refers to the progressive elimination of least preferred options or alternatives that occurs as children become increasingly aware of occupational differences in gender or sex-type, prestige, and then field of work. Compromise refers to the expansion of occupational preferences in recognition of and accommodation to external constraints (e.g., level of effort required, accessibility, cost) encountered in implementing preferences. 

Krumboltz’s Social Learning Theory of Career Decision Making (SLTCDM): Krumboltz's (1996) social learning theory proposes that career transitions result from learning experiences from planned and unplanned encounters with the people, institutions and events in each person’s particular environment.  The four types of influences on making career decisions include: genetic characteristics and special abilities (e.g., physical appearance and characteristics); environmental conditions and events (e.g., social, cultural, economic and political influences); learning experiences - primarily instrumental learning (rewards and punishments) and associative learning (classical conditioning); and task approach skills (e.g., personal standards of performance, work habits, emotional responses) developed from interactions among the other three influences. Consequently, the interaction of the four types of influencing factors results in individuals forming worldviews and beliefs about themselves that affect their occupational aspirations and actions.

ORGANIZATIONAL PSYCHOLOGY I:  FOUNDATIONS

A.  Summary of Key Concepts

1.  Historical Background:  Historically, the theories that have had the greatest influence on organizational practice and philosophy include the following:

Scientific management was based on the assumptions that scientific principles could be applied to the design of jobs to improve job performance; that the motivation of workers affects their job performance; and that workers are motivated primarily by economic incentives.  

The human relations approach was based on the assumptions that workers are motivated by social factors including attitudes toward supervisors and co-workers and informal work group norms.  

More recently, the differences between Japanese and American management philosophies have been a focus in the organizational psychology literature.  One of the most recent contributions of the Japanese approach is the emphasis on product quality which is reflected in the adoption of total quality management (TQM) by many U. S. companies.  

2.  Leadership:  Models of leadership include the following:

Leadership Styles:  One of the earlier theories of leadership distinguished between three styles:  autocratic, democratic, and laissez-faire.  Research indicates that autocratic leaders are associated with greater productivity, whereas democratic leaders are associated with greater worker satisfaction.  Investigators using factor analysis to study leadership style identified two independent dimensions —consideration and initiating structure.  

Theory X vs. Theory Y Leaders:  According to McGregor, leaders can be characterized by their assumptions about employee behavior.  Theory X leaders assume that work is inherently distasteful, that most workers lack direction, and that workers must be controlled and coerced to work.  Theory Y leaders believe that work comes naturally and that workers are self-directed, responsible, and autonomous.

Fiedler's Contingency Theory:  Fiedler's theory states that leaders who describe their least preferred co-worker in negative terms are most effective in situations that permit the leader either very much influence or very little influence. Leaders who describe their least preferred co-worker in positive terms are more effective in situations where the leader can exert a moderate degree of control.

House’s Path-Goal Theory:  This model is similar to Fiedler’s theory.  It proposes that the job performance and satisfaction of subordinates is based on the interaction of subordinate and situational characteristics and supervisor style.

Hersey and Blanchard’s Situational Theory:  This theory identifies four leadership styles, based on different combinations of high and low task and relationship orientation. The leader style that is most effective depends on the job maturity of subordinates.

Transformational Leadership:  Transformational leaders are change-focused.  They create a vision of change and motivate followers to support that change by appealing to their higher ideals and values and encouraging them to sacrifice self-interest for the sake of the organization.  

Vroom and Yetton’s Model:  This model specificies five different supervisor styles that are applied based on the outcome of a decision tree of seven problem attributes.

Leader-Member Exchange (LMX) Theory: This theory conceptualizes leadership as a process that is centered on the interactions between leaders and members, proposing how relationships with various members can develop and that not all relationships between members and leaders are equal.

3.  Organizational Development: Organizational development (OD) refers to a wide range of interventions that are designed to enhance individual development and improve the organization’s overall effectiveness.  Methods of OD include quality of work life (QWL) interventions, which focus on improving the impact of the work situation on the worker’s motivation, satisfaction, and commitment; and process consultation, which is designed to help employees understand and alter maladaptive interactions.   

4.  Organizational Behavior: The formal communication networks in organizations can be described as centralized or decentralized. In centralized networks, all information flows through one person or position. In decentralized networks, information is shared freely between all employees. Centralized networks are associated with greater efficiency for simple tasks. Decentralized networks result in greater worker satisfaction and greater efficiency for complex tasks.

Several models of individual decision-making have been distinguished:  Rational-economic decision making involves weighing all alternatives until the best one is found, while administrative decision making involves evaluating alternatives as they become available and choosing the first one that meets a minimal level of acceptability.

Driver and his colleagues elaborated on these models and identified five basic styles of decision-makers:  decisive, flexible, hierarchic, integrative, and systemic.

Kahneman and Tversky added another model of individual decision-making:  prospect theory, which emphasizes the importantace of loss aversion.

Organizational justice refers to the degree to which employees believe they are being treated fairly. The justice dimensions include:

Distributive justice refers to the perceived fairness of outcomes such as hiring, performance appraisals, raise requests, or layoff decisions.

Procedural justice refers to the perceived fairness of the process or procedure by which outcomes are allocated. 

Interactional justice refers to the perceptions of the interpersonal exchangebetween an individual and supervisor or third party.

Organizational culture is comprised of the shared assumptions, values, norms and tangible signs of organization members taught to new members through formal statements and informal behaviors

Research on women in organizations shows that a) physically attractive women tend to be considered less qualified for promotion than equally-qualified, less attractive women; b) although males and females do not differ consistently in terms of leadership style, female leaders are more likely to use a participatory decision-making style; and c) women who adopt a stereotypically male managerial style are likely to be judged less favorably than men who adopt the same style.  Finally, concern about gender inequality in wages is related to the notion of comparable worth, which states that men and women who perform jobs that have equal worth should receive equal pay.  Job evaluation techniques can be used to determine the value of a job in order to set wages.  

B.  Key Concepts

1.  HISTORICAL BACKGROUND

Over the years, organizational philosophy and practice have been influenced by different theories about organizational behavior. These theories include the following:  

Taylor’s Scientific Management

The first systematic studies of job productivity were carried out by Frederick Taylor (1911), who is considered the founder of scientific management.  Taylor’s research showed that he could dramatically improve work productivity by applying several simple principles:  1) Use scientific methods to determine the best way of doing a particular job.  2) Divide jobs into their most elementary components.  3) Use a piece-rate incentive system in which pay depends on output as a way to motivate workers.

Underlying Taylor’s approach are certain fundamental assumptions about workers.  One assumption is that worker motivation affects performance.  Another is that the typical worker is motivated exclusively by economic incentives.  A third assumption is that the average worker needs constant supervision.

Weber’s Bureaucracy

According to Weber, organizational effectiveness is maximized when the organization adopts a bureaucratic structure that is characterized by formal rules and regulations, impersonal treatment of employees, a division of labor, a hierarchical structure, and a rational, efficient approach.  Weber’s positive view of bureaucracies has been largely replaced by a more negative one.  Today, bureaucracies are generally considered to be overly rigid and inefficient, and these views have been supported by a number of studies.  For example, it has been found that, the more bureaucratic employees perceive their organization to be, the lower their job satisfaction.

The Human Relations Approach

In contrast to scientific management, the human relations approach assumes that worker performance is affected primarily by social factors including attitudes toward supervisors and co-workers and informal work group norms.  A major contributor to the human relations approach was the research conducted at the Hawthorne plant of the Western Electric Company in the late 1920’s and early 1930’s.  These studies began with an examination of the effects of illumination and other environmental variables on productivity, but the researchers found that, regardless of how they manipulated the physical variables (e.g., whether they increased or decreased illumination), productivity improved. Eventually, the Hawthorne investigators concluded that it was not the experimental variables that made the difference, but the special attention and treatment the workers were receiving as research participants.  The improvement in performance resulting from increased attention became known as the “Hawthorne effect.”

The Systems Approach

The systems approach emphasizes that an organization is an open system that receives input from both within and without; that changes in one part of the organization affect all other parts; and that the whole organization is an entity greater than the sum of its constituent parts.  The influence of the systems approach is seen in organizational theories that reflect a situational or contingency approach.  These approaches share the following assumptions:  1) Workers have diverse needs; 2) organizations vary in terms of structure, culture, and other characteristics; and, as a result, 3) there is no one managerial strategy that will work for all people and all organizations at all times.

Theory Z

A more recent trend in American organizations is the incorporation of the traditional Japanese management philosophy. Ouchi and Jaeger (1978) summarize the differences between the traditional American philosophy (“Theory A”) and the traditional Japanese philosophy (“Theory J”) as follows:   

Ouchi’s “Theory Z” combines what he views as the best aspects of Theory J and Theory A.  Like Theory J, Theory Z advocates consensual decision-making, slow promotion, and holistic knowledge of the organization; like Theory A, it supports individual responsibility.  Theory Z also emphasizes long-term (rather than short-term or lifelong) employment and a moderately specialized career path, which represent a middle ground between Theories J and A.

Total Quality Management

One of the most recent Japanese influences is the emphasis on product quality, which is reflected in the adoption of total quality management (TQM) by many American companies.  Although the application of TQM varies from company to company, it usually involves changes in the organization’s structure and culture and in job characteristics.  Changes in structure include a “flattening” of the traditional managerial hierarchy, increased teamwork, and a reduced ratio of managers to nonmanagers. Changes in culture include an increased emphasis on cooperation and fairness in the treatment of employees.  Finally, jobs that reflect a TQM approach are characterized by the following (Morgan and Smith, 1996):  

Skill Variety:  Workers are cross-trained to increase their range of knowledge and skills; constant learning and development is required.

Task Variety:  Workers work on a whole product or component of a product and see how their work fits into the “bigger picture.”

Autonomy, Participation, and Empowerment:  Workers have a high degree of decision-making authority.

Task Significance:  Contact and communication with external customers is part of the work process.

Feedback:  Feedback comes directly from the work process (rather than from management).

2.  LEADERSHIP

Leader Styles and Traits

Many of the early studies of leadership attempted to categorize leaders in terms of style or traits.  

Autocratic, Democratic, vs. Laissez-Faire Leaders:  Lewin, Lipitt, and White (1939) distinguished between three types of leaders:  1) autocratic leaders who make decisions alone and instruct subordinates what to do; 2) democratic leaders who involve subordinates in the decision-making process; and 3) laissez-faire leaders who allow subordinates to make decisions on their own with little guidance or help.  Research on these three styles has shown that productivity is highest under autocratic leaders, especially when the work is routine.  However, subordinates are most satisfied and more creative, have better relationships with the leader, and are more likely to continue working in the absence of the leader when the leader adopts a democratic style.

Consideration vs. Initiating Structure:  A number of investigators used factor analysis to categorize leader styles, and their research identified two basic dimensions —consideration and initiating structure.  Leaders who are high in consideration are person-oriented and focus on the human relations aspects of supervision.  In contrast, those high in initiating structure are more task-oriented and focus on setting goals, ensuring that subordinates follow rules, and clarifying subordinate and leader roles.  These dimensions appear to be independent; that is, a leader can be high on both dimensions, low on both dimensions, or high on one and low on the other.  

Personality Traits:  Finally, some investigators have attempted to identify personality traits associated with effective leadership.  While there is some evidence that traits such as intelligence, drive, creativity, stress tolerance, self-confidence, and integrity are more typical of leaders than non-leaders (Kirkpatrick and Locke, 1991), in general, the research on the trait approach has been disappointing.  Probably the best conclusion is that there is no single trait or set of traits that distinguishes good leaders from poor ones.  Instead, the relationship between leader traits and effectiveness is moderated by several factors including the characteristics of supervisees, the type of task, and the nature of the work environment.   

Leadership Theories

The most influential leadership theories are summarized below:  

Theory X vs. Theory Y Leaders:  McGregor (1960) proposes that leaders can be described on the basis of their beliefs about work and workers.  According to McGregor, the assumptions held by “Theory X” managers are most consistent with scientific management and include the beliefs that work is inherently distasteful; that most workers lack ambition and need to be directed; and that motivation is dominated by lower-level needs. In contrast, the assumptions of “Theory Y” managers are closer to the human relations approach.  Theory Y managers believe that, under the proper conditions, work is “as natural as play”; that most workers are self-directed, responsible, and ambitious; and that workers require freedom and autonomy.  McGregor believed that a Theory Y approach is more likely to lead to an effective organization.

Fiedler’s Contingency (LPC) Theory:  Fiedler’s (1971) contingency theory proposes that a leader’s effectiveness is determined by a combination of the leader’s style and the characteristics of the situation.  He described a leader’s style in terms of scores on his Least Preferred Coworker (LPC) Scale.  High LPC leaders describe their least preferred co-worker in positive terms (e.g., as pleasant and friendly) and are primarily relationship-oriented.  Low LPC leaders describe their least preferred co-worker negatively (e.g., as unpleasant and unfriendly) and are task and achievement-oriented.  

Fiedler described the situation’s “favorableness” in terms of the degree to which it enables the leader to control and influence subordinates.  The favorableness of the situation is affected by three factors:  the relationship between the leader and the subordinates; the structure of the task; and the leader’s ability to enforce compliance.  A situation is very favorable, for example, when the leader has good relationships with subordinates, the task is highly structured, and the leader has control over rewards and punishments.  

According to Fiedler, a low LPC leader performs best in situations that are either very favorable or very unfavorable in terms of control, while a high LPC leader is most effective when the situation is moderately favorable.  An important implication of Fiedler’s theory is that no single leadership style is most effective in all situations.  

House’s Path-Goal Theory of Leadership:  House’s (House and Baetz, 1978) path-goal theory of leadership predicts that subordinates  satisfaction and motivation are maximized when they perceive that their leader is helping them achieve desired goals.  A leader can accomplish this by adopting a style that 1) helps subordinates identify specific ways to achieve goals; 2) removes obstacles to goals; and 3) rewards subordinates for accomplishing goals.   House distinguishes between four leader styles:

• Instrumental (directive) leaders provide specific guidelines and establish clear rules and procedures.

• Supportive leaders focus on establishing supportive relationships with subordinates.

• Participative leaders include subordinates in decision-making.

• Achievement-oriented leaders set challenging goals and encourage higher levels of performance.

Like other contingency models, path-goal theory predicts that the best leadership style depends on the attributes of the situation.  For path-goal theory, these include certain characteristics of subordinates (e.g., ability level, need for affiliation, locus of control) and of the work environment (e.g., task structure, formal authority system).

Hersey and Blanchard’s Situational Leadership Model:  Hersey and Blanchard (1974) describe leader style in terms of task and relationship orientation.  They propose that the optimal style depends on the job maturity of subordinates, which is determined by the subordinate’s ability and willingness to accept responsibility:  

If the employee’s ability and willingness to accept responsibility are both low, the leader should adopt a “telling” style (high task orientation and low relationship orientation).

If the employee has low ability but high willingness to accept responsibility, the leader should adopt a “selling” style (high task orientation and high relationship orientation).

If the employee has high ability but low willingness to accept responsibility, the leader should adopt a “participating” style (low task orientation and high relationship orientation).

If the employee’s ability and willingness to accept responsibility are both high, the leader should adopt a “delegating” style (low task and low relationship orientation).

Transformational vs. Transactional Leadership:  In the more recent literature, a distinction is made between transformational and transactional leaders.  Bass (1990) suggested that transformational leadership contains the interrelated components of idealized or charisma influence (attributed or behavioral), inspirational motivation, intellectual stimulation, and individualized consideration. Transformational leaders are change-focused:  recognizing the need for and able to create a vision of organizational change.  They influence and motivate subordinates by activating subordinates’ higher-order needs, appealing to higher ideals and values such as justice and equality, encouraging subordinates to sacrifice self-interest for the sake of the organization, and clarifying what is needed to accomplish the change.   In contrast, transactional leaders focus more on stability than change and leadership is by contingent reinforcement. The subordinates are motivated by the leaders' use of rewards, promises and/or threats of disciplinary actions or punishments.

Vroom and Yetton’s Normative (Decision-Making) Model:  Vroom and Yetton’s (1973) normative model, later modified by Vroom and Jago (1988) and Vroom (2017), is a contingency model that describes 11 situational factors and five leadership styles that are distinguished by the extent to which the leader includes group members in the decision-making process:

AI (autocratic) leaders do not consult subordinates and make decisions on their own.

AII (autocratic) leaders obtain information from subordinates but make the final decision on their own.

CI (consultative) leaders discuss problems with each subordinate individually but make the final decision on their own.

CII (consultative) leaders discuss problems with subordinates as a group but make the final decision on their own.

GII (group decision) leaders discuss problems with subordinates as a group and reach a group decision through discussion and consensus.

Vroom and Yetton suggest that each leader style has both benefits and costs and that the best style depends on the attributes of the situation.  These attributes include 1) the quality of the decision (i.e., the extent to which it will affect the group); 2) the importance of acceptance of the decision by subordinates (i.e., the degree of subordinate commitment needed for implementation); and 3) the time needed to make the decision.  Vroom & Yetton developed a “decision tree” that indicates the optimal leader style(s) based on the leader’s answers to a series of questions that address the situation’s attributes.  

Leader Member Exchange (LMX) Theory:   Leader-member exchange (LMX) theory conceptualizes leadership as a process that is centered on the interactions between leaders and members, with the dyadic relationship between them being the focal point. It emphasizes that not all members of an organization achieve the same quality of relationship with leaders and explains how relationships with various members can develop.

According to LMX theory, members fall into either  "in-group" or "out-group" categories and the nature of the relationship between a leader and member is the determining factor as to which group a member belongs.  The relationship between the leader and members of the out-group is marked by a lower quality, with both parties only completing their formal role obligations. Whereas, in-group members have more decision-making influence, access to resources and responsibility and receive more leader support, trust and initiative beyond the obligations of the job.

LMX theory encourages leaders to become aware of their attitudes toward members (i.e., increased opportunity for one group and formal expectations for another) and create methods for all employees to freely enter the in-group.  Research suggests in-group members move from low quality, one way, self-oriented and scripted to high quality, reciprocal, group oriented and negotiated exchanges with the leader. LMX theory proposes increasing equity among subordinates by developing a leader-member relationship that moves through three phases: stranger, acquaintance, and partner.

Research indicates LMX theory is positively related to “higher job satisfaction, stronger organizational commitment, and better subordinate performance” (Yukl, 1998).

3.  ORGANIZATIONAL DEVELOPMENT AND CHANGE

Organizational Development

Phases of Organizational Development: Organizational development (OD) has been described as a process involving seven distinct phases: entry, contracting, diagnosis, feedback, planning, intervention, and evaluation (Burke, 1982).  The first phase of the process is the entry phase, which is characterized by the identification of the need for some organizational change.  The OD consultant in the entry phase must determine the general nature of the problem, for example, is it a group problem or individual problem?  The next phase is contracting. The OD consultant during the contracting phase specifies the terms and conditions of his or her participation.  If both parties agree to the contract, the process moves into the diagnosis phase.  During the diagnosis phase, the consultant assesses the problems and collects data, often through the use of standardized questionnaires and interviews.  This is followed by the feedback phase in which the organization is helped to understand the diagnostic information obtained so it can begin to address the problem.  The next phase of the process is planning, during which the consultant and the decision-makers work to develop a corrective-action plan.  This is followed by the intervention phase in which the action plan is implemented.  Finally, during the evaluation phase, the progress of the intervention is assessed.

Organizational development (OD) encompasses a number of broad interventions that are aimed at enhancing individual development and improving organizational effectiveness (Cascio, 1995).  The various techniques classified as OD interventions share the following characteristics:  1) A systems approach that focuses on the entire organization; 2) involvement of everyone in the company; 3) the commitment and support of top management; 4) a view of change as a long-term, planned activity; and 5) the use of an internal or external change agent who initiates the change. Specific OD interventions include the following:  

Quality of Work Life Interventions

A premise underlying quality-of-work-life (QWL) interventions is that organizational effectiveness increases as worker satisfaction, motivation, and commitment increase.  QWL interventions often involve job restructuring, or redesigning jobs so that they are more interesting and challenging and provide workers with greater participation in decision-making.  A popular QWL intervention is quality circles (QCs), which are small groups of workers from the same department or division who meet regularly to discuss how their work can be improved.  QCs are voluntary and the decisions reached by workers are not binding on the company.

The research on QCs is not entirely consistent.  There is some evidence that they may increase worker productivity, satisfaction, and commitment as well as overall organizational effectiveness (Buch and Spangler, 1990) but that these effects are often temporary (Lawler et al., 1992).  To ensure that QCs are successful, workers should be assured that they won’t be penalized for making suggestions, and the QC should be supported by management (Steers, 1984).  In addition, QCs should be part of broader changes in the organization.

Organizational Surveys

Organizational surveys are used to assess employee attitudes and opinions about various aspects of work such as organizational philosophy, policies, procedures, feedback, and leadership. They can also be used to gauge reactions to new programs or recent decisions. These surveys are usually kept anonymous or confidential so employees can express their opinions in a non-threatening format. Standardized scales can assess some of these variables, which offers the advantage of being able to compare the information to norms from other organizations.  Custom-made items or scales are also used and have the advantage of addressing issues unique to a particular organization.

The results of these surveys are provided to the employees, or in some cases, to management teams in group settings to discuss potential solutions to the problems identified.

Studies on the effectiveness of organizational surveys have mostly yielded  positive results.  Increases in job satisfaction and employee reports of job conditions were found after surveys were introduced (Spector, 1996).

If implemented properly, surveys can help solve problems and give employees a greater sense of influence in the organization.

Process Consultation

Process consultation refers to efforts to help team members understand and alter processes that are undermining their interactions.  Process consultants observe workers interact and then share their observations and make suggestions for future improvement.  Specific targets of process consultation include communication, decision-making, conflict resolution, and individual roles in groups.

Organizational Change Strategies

Chin and Benne (1976) divide strategies for overcoming resistance to planned change in organizations into three types:

Empirical-Rational:  Empirical-rational strategies are based on the assumption that people are basically rational and, if they have all relevant information about a situation, will act in accord with their self-interest.  

Normative-Reeducative:  These strategies are based on the assumption that social norms underlie patterns of behavior in organizations.  They focus on changing attitudes, values, and relationships in order to bring about change and acceptance of change.

Power-Coercive:  Power-coercive strategies involves using rewards, punishment, or legitimate authority to coerce employees to comply with change.

Resistance to Change

Employee resistance is often a problem when any form of change is introduced.  However, it has been demonstrated that when workers are allowed to participate fully in decisions concerning the change, they will enthusiastically support it (Hinkin and Schriesheim, 1988).

Organizational Assessment

Organizational assessments are useful for analyzing current practices and identifying if they are concurrent with the goals of the organization. Two tools used in organizational assessment are self-assessment and personnel assessments. Self-assessments are effective for identifying areas of organizational development, and are most successful when board members and other stakeholders participate in the process. Personnel assessments involve reviewing individual data, such as records, accomplishments, work samples, or personality tests. 

There are four basic steps to organizational assessment. The first step involves setting goals for the assessment. The purpose of the assessment, budget, time frame, methods used, and how the results will be communicated should be determined at this point. The second step involves identifying what is important to the organization regarding the following: how the organization is performing and how effectively, how sustainable is the organization’s current performance, what motivation is present to achieve the organization’s goals, and how does the environment affect the performance and growth of the organization. Data collection occurs during the third step: documentation and files are reviewed, and interviews, surveys, and direct observation visits may be conducted. Finally, step four is about the results of the organizational assessment. The data are analyzed, and findings are presented.

There are three basic approaches to program evaluation: goals-based, process-based, and outcomes-based. Goals-based program evaluation measures how well a program is meeting objectives. Process-based program evaluation analyzes the effectiveness of the systems and processes that are used to carry out the program’s objectives. Finally, outcomes-based program evaluation focuses on the results and benefits received by clients who participate in the program. 

4.  ORGANIZATIONAL BEHAVIOR

Communication Networks

The formal communication networks in an organization can be divided into two types:  centralized and decentralized.  In a centralized communication network, all communication must pass through one person or one position.  Examples include the wheel (in which all communication passes through a central individual) and the chain (in which communication flows up and down a chain of command).  In a decentralized communication network (e.g., the circle), information flows more freely between individuals.

The research has shown that centralized communication networks are more efficient when tasks are simple and mundane.  In contrast, decentralized communication networks work best when job tasks are complex and when cooperation is necessary to complete the task.  Decentralized networks also result in more individual satisfaction.  The only person for whom centralized communication networks result in greater satisfaction is the person who controls the information (i.e., the person in the middle of the wheel or at the top of the chain).

Individual Decision-Making

There are several different models of individual decision-making.  Two of these models are the rational-economic and the administrative model.

Rational-Economic Model:  People utilizing a rational-economic approach attempt to find the optimal solution.  They search for all possible solutions and weigh alternatives until they make the decision that results in the greatest benefit for the organization.  This strategy is known as “maximizing.”  To make decisions in this manner, the person must have all information relevant to the decision, enough time to make the decision, and sufficient ability to process the information accurately and without bias.  Often, rational-economic decision-making is not practical to implement in organizations, where a lack of information and/or time prevents decision-makers from considering all alternatives.

Administrative Model:  Decision-making based on this model involves evaluating solutions as they become available and selecting the first solution that is minimally acceptable — a strategy known as “satisficing.”  The administrative model recognizes that, because decision-makers are bound by internal and external constraints, they cannot display perfect rationality in making decisions.

Driver’s Decision Making Styles

Driver, Brousseau, & Hunsaker (1998) identified two key factors that determine an individual’s style of decision-making: the amount of information considered; and the focus or number of alternative decisions identified.  These two factors also correspond to the two main stages of decision making — analysis of the situation and formulation of a solution.  It is during the analysis stage that information is considered or analyzed and during the solution formulation stage that alternatives are identified.  

How much information is considered before making a decision varies from person to person. For example, some people jump to decisions based on very little information, while others wait until every bit of information has been thoroughly analyzed.  Those who are fast-acting and rely upon the minimal amount of information necessary to choose one or more “good enough” solutions are known as “satisficers.” “Maximizers,” on the other hand, are those who are slow to act and use all the time and resources necessary to consider all relevant information before making a decision.

When formulating a solution to a problem, people also vary in regards to the number of alternative solutions sought.  Those with a uni-focus pattern use information to produce only one course of action, while those with a multi-focus pattern use information to develop many alternative solutions. Driver, Brousseau, & Hunsaker (1998) proposed that information use and focus combine to form five basic decision-making styles: Decisive, Flexible, Hierarchic, Integrative, and Systemic.

The decisive style is a satisficing and uni-focus style.  Decisives pride themselves on speed and efficiency.  Once they choose a course of action they tend to stick with it. They focus on getting things done now, rather than planning for an uncertain future.  The disadvantages are that decisives tend to be inflexible and short-sighted. Their approach, however, is commonly seen among business and political leaders.

The flexible style is a satisficing, multi-focus style.  The flexible decision-maker moves fast, but is willing to drop one tactic in favor of another at any moment.  Flexibles prefer loose organizations with little structure.  They do best in situations which are quickly changing.

The hierarchic is a maximizing and uni-focus style.  They use a lot of information to identify the best solution and then they work to develop a detailed and specific plan of action.  Although they are thorough, they tend to be rigid and over-controlling.  However, with self-awareness of their own limitations, the hierarchic can be very effective in making good decisions.

The integrative style is a maximizing and multi-focus style.  Integratives use a lot of information to evaluate situations and then they develop a variety of alternative solutions.  In fact, they often pursue several courses of action simultaneously.  They value creativity above all else.  Integratives perform best working with groups since they thrive on diverse ideas and cooperation.

The systemic is a more complex style which combines characteristics of the hierarchic and integrative styles.  It is a maximizing style, since it relies upon analysis of maximum information, but at times it is uni-focused and other times it is multi-focused.  For example, the systemic produces multiple, detailed solutions, with long-term goals, but the details of the plan only apply to the near-future.

Which style is best or worst depends upon the characteristics of the situation.  The decisive and flexible styles tend to work best when things need to be done quickly and when the issues to be considered are relatively simple.  The hierarchic, integrative, and systemic styles do best when the problems are complex and the consequences of the decisions will be long-term and costly.  Although individual managers tend to rely on one style or another, successful managers must: 1) understand their own decision-making styles; 2) be able to identify and work with people who use other styles; and 3) match their own styles to the types of jobs for which they are well suited.

Prospect Theory

Loss aversion is the central concept in Kahneman and Tversky’s (1979) Prospect Theory which has been applied to economics, politics, and other areas involving decision-making.  Loss aversion refers to the tendency to be influenced more by potential losses than potential gains when making decisions.  In other words, the displeasure of experiencing loss is greater than the pleasure associated with gain.  The notion of loss aversion is in contrast to the commonly held beliefs that people are adverse to risk and make decisions based on logic.  Tversky and Kahneman found that people are not adverse to risk; rather, they are adverse to loss.  This explains why investors and gamblers will take riskier and riskier decisions after suffering a loss – in hopes of making their money back, that is, to avoid realizing an actual loss.

In one of their first experiments on loss aversion, Kahneman and Tversky (1979) offered participants the option of an 80% chance of winning $4,000, and a 20% chance of winning nothing, against a 100% chance of receiving $3,000.  The participants chose the 100% chance of receiving $3,000.  This indicated that people are less willing to take a risk on experiencing a gain.  However, the participants were then given an 80% chance of losing $4,000, and a 20% chance of losing nothing, against a 100% chance of losing $3,000.  The vast majority of the participants chose the second option. That is, they chose the remote (20%) chance of losing nothing over the much more likely (80%) chance of losing an additional $1,000.  This indicated that people are more willing to take a risk in order to avoid suffering any loss.

Organizational Justice

Organizational justice refers to the degree to which employees believe they are being treated fairly. The justice dimensions include:

Distributive justice refers to the perceived fairness of outcomes such as hiring, performance appraisals, raise requests, or layoff decisions.

Procedural justice refers to the perceived fairness of the process or procedure by which outcomes are allocated. 

Interactional justice refers to the perceptions of the interpersonal exchangebetween an individual and supervisor or third party.

Recent research suggests interactional justice consists of two distinct justice dimensions, informational and interpersonal (Colquitt et al., 2001). Informational justice refers to the amount of information or the appropriateness of the explanations provided about why procedures were used or outcomes were distributed in a certain way. Interpersonal justice refers to how an individual is treated by a supervisor or third party involved in executing procedures or determining outcomes

Employees’ perceptions of organizational justice has been associated with outcomes such as job satisfaction, organizational commitment and retention. Recent meta-analyses have found procedural justice to be the best predictor of work performance and counterproductive work behavior whereas organizational citizenship behaviors were found to be related to all dimensions of justice (Cohen-Charash & Spector, 2001; Colquitt et al., 2001).

Organizational Culture

Organizational culture is comprised of the shared assumptions, values, norms and tangible signs of organization members taught to new members through formal statements and informal behaviors. According to Schein (1992), organizational culture can be characterized as consisting of three levels:

The first level, behavior and observable artifacts, is the most visible and consists of outward manifestations such as the physical layout of work spaces, dress codes, reports and perquisites provided to executives, technology utilized and where it is utilized. Behavior and artifacts tell what a group is doing, but not why.

The second level consists of values. Organizational values express preferences for certain behaviors or outcomes including the organization’s ideologies, norms and goals. 

The third, deepest, level consists of underlying assumptions (e.g., thoughts, beliefs, perceptions, and emotions). Schein suggests underlying assumptions grow out of values, until they become taken for granted, out of awareness and unconscious.

All three levels are essential to identifying and understanding  organizational culture. The concept of organizational culture has been found to be a critical part of implementing changes in the organization, noting changes need to be made in structures, processes, and culture.

Gender Issues in Organizations

Some of the research on gender-related issues in organizations is summarized below:

Physical Appearance:  Physical attractiveness may work to a woman’s disadvantage in organizations.  When equally qualified women are being considered for promotion, the less attractive candidates are often judged to be more suitable by male executives.  Physically attractive men on the other hand, are judged to be more suitable (Devanna, 1987).

Leadership Style:  Most research suggests that women and men who occupy leadership roles in organizations do not differ markedly in terms of style (e.g., Hollander, 1985). However, there is some evidence of a tendency for women to be more concerned with both interpersonal relationships and task accomplishment than men. In addition, in terms of decision-making, female managers are more likely to adopt a participatory style, while males are more likely to be autocratic or directive (Eagley and Johnson, 1990).

Evaluations of Female and Male Managers:  There is a very small tendency, barely significant, for women managers to be evaluated less favorably than male managers, especially when women use leadership styles that are stereotypically male (i.e., autocratic and non-participative).  In contrast, when men use leadership styles that are stereotypically female (interpersonal and democratic), they are not evaluated less favorably (Eagley et al., 1992).  

Gender Wage Inequality:  Federal law requires that men and women be paid the same for equal work.  However, labor statistics show that women earn about 60 cents for every dollar earned by males. Some argue that gender differences in wages are due to the fact that men and women do different kinds of work.  The counterargument to this position is that the work women do is undervalued.

The controversy about wage inequality is related to the notion of comparable worth, which states that men and women should get equal pay for performing jobs that have equivalent worth. In other words, even in cases where there are differences in the tasks performed by men and women, their pay should be equal if the value of their work is the same. To determine the value of a job in terms of wages, job evaluation techniques may be used. These techniques vary in terms of procedure but all are designed to help identify compensable factors of a job so that an equitable wage can be determined. Such techniques are not commonly used by organizations, however, and many argue that they are inherently biased against women.

ORGANIZATIONAL PSYCHOLOGY II:  MOTIVATION, SATISFACTION, AND COMMITMENT

A.  Summary of Key Concepts

1.  Need Theories of Motivation:  Need theories are based on the premise that people exert effort to fill deficiencies in their lives.

Maslow’s Need Hierarchy:  This theory proposes that people have five basic needs (physiological, safety, social, esteem, actualization) that are arranged in a hierarchy so that the lowest unfulfilled need is the strongest motivator of behavior.  When that need is satisfied, the next higher need becomes the strongest motivator.  Overall, the research suggests that Maslow’s theory is not entirely applicable to motivation in the workplace.  

Alderfer’s ERG Theory:  ERG theory is a reformulation of Maslow’s theory that distinguishes between three needs (existence, relatedness, growth) instead of five.  

Herzberg’s Two-Factor Theory:  Herzberg’s theory addresses both motivation and satisfaction.  It proposes that satisfaction and dissatisfaction are independent constructs that are affected by different factors.  Hygiene factors (e.g., pay, job security) fulfill lower-order needs.  When they are absent, workers are dissatisfied, but their presence does not lead to satisfaction.  Motivator factors (challenge, responsibility, opportunities for growth) fulfill higher-order needs.  When they are present, workers are satisfied and motivated, but their absence does not produce dissatisfaction.  The technique of job enrichment (redesigning jobs to increase worker autonomy, responsibility, and control) is based on Herzberg’s theory.

Job Characteristics Model:  According to this model, worker motivation and satisfaction are affected by the presence or absence of five job characteristics:  skill variety, task identity, task significance, autonomy, and feedback.  The model applies particularly well to people high in growth need strength.

2.  Cognitive Theories of Motivation:  Cognitive theories view motivation as related to complex decision-making processes.

Goal Setting Theory:  Goal-setting theory states that people are motivated to work toward goals when they have consciously accepted those goals.  In addition to acceptance, other factors that affect willingness to work to achieve goals include goal specificity and performance feedback.

Equity Theory:  According to equity theory, workers compare their input/outcome ratio to those of other workers. Equity exists when these ratios are perceived as equal.  If a situation is perceived as inequitable, the person will be motivated to restore equity by adjusting input, attempting to change outcome, or altering his or her evaluation of the input/outcome ratios.  

Expectancy Theory:  This theory posits that motivation is a function of three factors:  a) the belief that effort will result in successful performance (expectancy); b) the belief that successful performance will lead to certain outcomes (instrumentality); and c) the desirability of those outcomes (valence).

3.  Reinforcement Theories of Motivation:  The reinforcement model of work motivation applies the principles of operant conditioning to the workplace and states that motivation is a function of the degree to which effort is externally reinforced. An alternative to this theory is Deci’s model of intrinsic motivation, which holds that internal reinforcers (pride, satisfaction, etc.) are more important than external reinforcers. According to Deci, external reinforcement can actually reduce motivation by reducing one’s sense that behavior is intrinsically motivated.

4.  Job Satisfaction:  Some of the more consistent findings on job satisfaction are that:  a) pay is positively correlated with job satisfaction, though individual satisfaction with pay is affected by whether or not a person perceives his or her level of pay as fair; b) age is positively correlated with satisfaction; c) job satisfaction has a moderate negative correlation with absenteeism and turnover, with the relationship being strongest for turnover; and d) the relationship between satisfaction and performance is weak with authors reporting an average correlation of only .14.  

5.  Organizational Commitment:  Organizational commitment refers to the extent to which a worker identifies with the organization and is willing to help it achieve its goals.  Like satisfaction, commitment is most strongly correlated, in a negative way, with absenteeism and turnover.  

B.  Key Concepts

Motivation has been defined as “the sum of the forces that produce, direct, and maintain effort expended in particular behaviors” (Jewell, 1985).  Work performance is generally considered to reflect a combination of motivation and ability, as expressed by the following equation:  

P = A X M, where P = performance, A = ability, and M = motivation.  

In other words, work performance is a function of ability and motivation.  Dunnette (1973) points out that, on an overall level, empirical evidence suggests that ability is more important than motivation in explaining differences in job performance.

The theories of work motivation can be divided into need theories, cognitive theories, and reinforcement theories.

1.  NEED THEORIES OF WORK MOTIVATION

Need theories of motivation are based on the premise that people are willing to exert effort when that effort will lead to fulfillment of certain deficiencies or needs.  Need theories include Maslow’s need hierarchy, Alderfer’s ERG theory, McClelland’s need for achievement, Herzberg’s two-factor theory, and the job characteristics model.

Maslow’s Need Hierarchy

Maslow believed that people have five basic needs that can be arranged in the following hierarchical order of importance:  1) physiological needs (water, food, etc.); 2) safety needs (security); 3) social needs (company of and acceptance by others); 4) esteem needs (recognition from others); and 5) self-actualization needs (self-fulfillment).  According to the theory, the lowest unfulfilled need is the most prepotent (i.e., the strongest motivator).  Once a need is satisfied, it ceases to motivate behavior and the next one in the hierarchy becomes prepotent.

Applied to the workplace, Maslow’s theory suggests that workers will exert effort to meet their lowest unsatisfied needs.  For example, someone who has just graduated from college may be trying to meet physiological or safety needs and, consequently, will be motivated to work hard by the promise of a raise.  By contrast, an executive who has been earning a big salary for a number of years may be motivated by esteem needs (e.g., recognition from others) or self-actualization needs (e.g., opportunities for personal growth).

Evaluation:  There is empirical support for the theory’s implication that need importance is related to job level: Higher-level employees, for example, rate esteem and actualization needs as more important, while lower-level employees place greater importance on physiological and safety needs.  However, few of the theory’s other tenets have been supported.  For instance, it appears that there are not necessarily five basic needs or that needs emerge in the order predicted by the theory.  Overall, probably the best conclusion about Maslow’s theory, at least as it applies to the workplace, is that it does not have much empirical support.

Alderfer’s ERG Theory

Alderfer’s ERG theory is similar to Maslow’s need hierarchy. However, it distinguishes between three rather than five needs —i.e., existence, relatedness, and growth.  In addition, it does not predict that needs arise in a hierarchical order.

McClelland’s Need for Achievement

McClelland used individuals’ responses to TAT cards to investigate the needs that underlie motivation.  His research suggested that a primary motivator is the need for achievement (nACh).  People with a high need for achievement desire autonomy and personal responsibility, prefer moderately difficult goals, and seek recognition for their efforts.  They are highly motivated to put effort into their work and tend to stay on the job longer and perform better.  McClelland believed that, through training, people with a low need for achievement could develop higher levels of this need.  Research on need for achievement suggests that it is strongly related to entrepreneurial success.

McClelland also identified two other needs that act as motivators.  People with a high need for power (nPOW) are motivated by control over others, visibility, prestige, status, and recognition.  Leaders high in nPOW tend to be more effective managers than those who are low in this need.  People with a high need for affiliation (nAFF) are motivated by good interpersonal relationships; they are sensitive to criticism and prefer to avoid conflict whenever possible.

Herzberg’s Two-Factor Theory

Herzberg’s (1966) two-factor theory is a theory of both motivation and satisfaction.  It posits that satisfaction and dissatisfaction represent two separate states and that each is affected by different factors.  Hygiene factors fulfill Maslow’s lower-order needs and include things like pay, benefits, and relationships with co-workers.  When hygiene factors are absent, a worker is dissatisfied, but the presence of hygiene factors does not have an effect on satisfaction.  Conversely, motivator factors fulfill Maslow’s higher-order needs and include opportunities for responsibility, decision-making, and growth. When motivator factors are adequate, a worker is satisfied and motivated, but the absence of motivator factors does not cause dissatisfaction.  From the perspective of two-factor theory, raising salaries or instituting better supervisory procedures will not increase satisfaction but will only keep workers from becoming dissatisfied.  To increase satisfaction and motivation, a job must provide motivator factors.

Job enrichment is the best known application of Herzberg’s theory.  It involves redesigning a job so that the worker has more challenge, responsibility, decision-making authority, and opportunities for advancement.  In other words, job enrichment ensures that a worker’s motivator needs are fulfilled so that the worker is satisfied and motivated.  (Don’t confuse job enrichment with job enlargement.  Although both methods of job redesign help reduce boredom, job enlargement simply increases the number and variety of tasks a worker performs.)

Evaluation:  Two-factor theory has not been entirely supported by the research.  Though motivators do appear to be more effective than hygiene factors in increasing employee motivation and satisfaction, Herzberg’s distinction between factors that produce satisfaction and dissatisfaction has not been well-supported. Apparently, hygiene factors and motivators both contribute to satisfaction and dissatisfaction.

Research on job enrichment has also yielded equivocal results. Increased job satisfaction and decreased absenteeism usually result.  Improvements in performance are related more to the quality of work than its quantity.  The studies suggest that the effects of job enrichment vary from worker to worker, as well as according to the culture, context, and setting of the work (Hackman and Oldham, 1975).  For instance, job enrichment usually has more positive effects on workers who are younger, well-educated, and high in need for achievement.  

The Job Characteristics Model

The job characteristics model (Hackman and Oldham, 1976) identifies five job characteristics that influence internal work motivation as well as job satisfaction, work quality, and absenteeism and turnover:  

Skill variety: The more skills required by a job, the more meaningful it is.

Task identity: Jobs that constitute a whole piece of work are more meaningful than those that consist of some portion of the whole job.

Task significance: Jobs that have clear importance to others are more meaningful than those that don’t.

Autonomy: Jobs are more meaningful to the degree that they allow for worker independence, freedom, and decision-making authority.

Feedback: Jobs providing built-in feedback are more meaningful than those that do not.

The Job Diagnostic Survey (Hackman and Oldham, 1975) and the Job Characteristics Inventory (Sims, Szilagyi, and Keller, 1976) are used to assess a job in terms of these characteristics and to obtain the information needed for job redesign.  The studies have shown that, when jobs are redesigned according to the job characteristics model, there are improvements in motivation, satisfaction, absenteeism, and turnover.  However, work quality is less likely to be affected (e.g., Loher et al., 1985).  The model seems to apply particularly well to workers high in “growth need strength; i.e., those with a strong need for personal growth and development."

2.  COGNITIVE THEORIES OF MOTIVATION

From a cognitive perspective, motivation is related to a complex decision-making process that involves weighing alternatives, costs and benefits, and the likelihood of achieving desired outcomes.  Cognitive theories include goal-setting theory, equity theory, and expectancy theory.

Goal-Setting Theory

As defined by Locke’s (1970) goal-setting theory, goals serve two purposes — they are a basis for motivation and they direct behavior.  According to this theory, the most important contribution to a worker’s willingness to work to achieve goals is conscious acceptance of and commitment to the goals.  However, other factors are also important.  Specifically, goal attainment is maximized when goals are specific and moderately difficult (i.e., when they are difficult and challenging but attainable) and when frequent feedback about progress toward goal achievement is provided.  Worker participation in goal-setting, though not crucial, increases the chance that goals will be adopted, especially when employees are not likely to accept assigned goals.

The technique known as Management by Objective (MBO) is based on goal-setting theory and involves having an employee and his/her superior agree to specific, measurable goals that the employee will accomplish during a specific time period.  At the end of this period, progress toward these goals is evaluated and necessary changes in goals or work behaviors are made.  

Evaluation:  Studies on goal-setting have shown the following:

1.  Combining goal setting with feedback has a significant positive effect on performance, but adding incentives has little additional affect (Pritchard et al., 1988).

2.  There are some individual differences in the effects of goal setting.  For example, people with high self-esteem are more likely to accept difficult goals than people with low self-esteem.

3.  While goal setting theory considers participation in goal setting unnecessary, there is some evidence that employees work harder when they participate in goal-setting than when goals are assigned to them by a supervisor (Latham, Erez, and Locke, 1988).

4.  For teams working on interdependent tasks, difficult individual goals produce poorer performance than group goals or no goals.  In addition, a combination of group and individual goals may be no more effective than group goals alone (Mitchell and Silver, 1990).

5.  Goal-setting appears to have similar benefits for males and females on goals that are assigned or participatively set (Locke and Latham, 1990).  

Equity Theory

According to equity theory (Adams, 1965), in any work situation, people assess both their inputs (contributions to the work situation) and their outcomes (the rewards they receive for their work).  They also compare, often unconsciously, their input/outcome ratio to that of other workers.  If the ratios are comparable, a state of equity exists and employees maintain their current level of performance.  However, if the perceived input-outcome ratio is less or greater than that of others, a state of inequity exists, and employees are motivated to try to create equity.  

In the case of underpayment inequity, a person perceives his/her input-outcome ratio to be greater than that of other workers.  In other words, relative to others, the person is putting in more and getting less back.  To establish equity, the person will decrease work quality or quantity or attempt to obtain better outcomes.  Overpayment inequity occurs when the person thinks his/her input-outcome ratio is less than that of others.  This motivates the person to increase work quality or quantity.  In either situation, inequity can also be alleviated by changing one’s evaluation of the input-outcome balance.  For example, in an underpayment situation, a person might decide that her contribution is not as valuable as she originally thought or that she is getting rewards she didn’t take into consideration originally.  When the inequity is extreme and cannot be alleviated by these means, the person may quit his or her job. The research has found that a state of underpayment usually has a greater impact on work performance than overpayment.

An issue related to equity theory is the distinction between outcome justice and procedural justice.  Outcome justice refers to the fairness of outcomes such as raises and promotions. Equity theory focuses on how perceptions of outcome justice affect motivation.  Procedural justice refers to the fairness of procedures used to determine outcomes.  Factors that affect perceptions of procedural justice include consistency of treatment across people and time, suppression of biases, and the accuracy of information used to make decisions.

Expectancy Theory

Expectancy theory posits that motivation is a function of three variables:  1) the belief that effort will lead to successful performance (expectancy beliefs); 2) the belief that successful performance will result in certain outcomes (instrumentality beliefs); and 3) the desirability of those outcomes (valence). For example, you will be motivated (one hopes) to study hard for the licensing exam to the extent that you expect that studying will lead to doing well on the exam, that doing well on the exam will be instrumental in obtaining certain outcomes such as being able to practice independently, and that you place high value on being able to practice independently.  

3.  REINFORCEMENT THEORIES OF MOTIVATION

The reinforcement model applies the principles of operant conditioning to work motivation and proposes that:

1.  People keep doing things that have rewarding outcomes; i.e., reinforcement strengthens behavior.

2.  People avoid doing things that have negative outcomes; i.e., punishment reduces the likelihood that a behavior will occur.

3.  People eventually stop doing things that don’t have rewarding outcomes; i.e., without reinforcement, behavior eventually extinguishes.

Most reinforcement models of motivation focus on extrinsic rewards.  An exception is Deci’s (1972) model of intrinsic motivation, which proposes that intrinsic reinforcement (e.g., feelings of pride, accomplishment, and satisfaction) is more important to motivation and that extrinsic reinforcement tends to reduce the motivation of those who obtain intrinsic rewards from their work.  Subjects in Deci’s research initially worked on interesting puzzles, apparently because doing so was intrinsically rewarding.  When external rewards were then provided to some subjects for working on puzzles, they subsequently spent less free time working on the puzzles than subjects who had not been extrinsically rewarded.  Deci used attribution theory to explain these findings:  When extrinsic rewards are introduced, the person believes that his or her behavior is motivated by external factors.  Consequently, when the rewards are taken away, the person is no longer motivated to engage in the behavior.  

Incentive Theory

Incentive Theory is another reinforcement theory of motivation.  It has been used primarily in organizational settings; however, it’s principles are essentially the same as those found in operant conditioning theory.  The focus of Incentive Theory, as it’s name implies, is on the incentives which motivate employees to be most productive.  Of particular importance in Incentive Theory is the role of extrinsic rewards.  Organizations which rely on external, material rewards (e.g., salary, fringe benefits) are viewed as being the most flexible, since the same type of reward can be used for different activities or behaviors (Dollman,1996).

A recent study examined the effectiveness of Incentive Theory and found that among manufacturing firms, the use of a defined-benefit pension plan raised productivity by 6% (Cornwell & Dorsey, 2000).  The same study acknowledged that other, non-material incentives, may be valued by some employees.  However, the material rewards were, overall, considered to offer the most flexibility.

4.  JOB SATISFACTION

The causes and consequences of job satisfaction have been of interest to organizational psychologists for many years.  The results of some of their research are summarized below:  

The Effects of Personal Characteristics

Many studies have been conducted to determine which workers are most and least satisfied with their jobs.  One of the more stable findings is that age is significantly and positively correlated with satisfaction.  The older the employee, the higher the satisfaction he or she reports.  Another clear finding is that level in the organization hierarchy is correlated with satisfaction.  For instance, managers typically report more job satisfaction than non-managers, and the higher the managerial level, the greater the satisfaction.  Another finding is that non-whites are more likely to express dissatisfaction with their jobs than whites.

The studies have also found that satisfaction and dissatisfaction, to some extent, are stable over time and across different jobs.  This finding supports the dispositional explanation of job satisfaction, which proposes that some people are generally satisfied and happy with their work while others are generally dissatisfied and unhappy, with these attitudes having little to do with the work itself.  

The Effects of Job Characteristics

Despite numerous studies, the impact of pay on satisfaction is not entirely clear, and probably the safest conclusion is that the relationship between pay and job satisfaction is complex. Although pay and job satisfaction are positively correlated, there is some evidence that increased satisfaction may be due to other rewards that high-paid workers obtain from their jobs such as greater challenge, autonomy, and control.  In addition, perceptions that one’s salary is fair may be more important than the actual amount of money earned.  There are two basic determinants of perceptions of fairness:  one is the extent to which pay is related to level of performance; the second is comparable worth, or the extent to which pay is perceived to be equitable relative to what others in similar jobs or with similar qualifications are making.  

The degree to which a job permits the person to utilize his or her skills is an important determinant of job satisfaction. O’Brien (1982), for instance, found that skill utilization was, of the job factors studied, the strongest predictor of job success for a wide variety of jobs.

The Consequences of Satisfaction

The research suggests that job satisfaction is moderately and negatively related to absenteeism and turnover and that the highest correlation (-.40) is between satisfaction and turnover (Mobley et al., 1979).  There is some evidence that the relationship between satisfaction and turnover is moderated by performance level, with turnover and satisfaction having a significant relationship for poor performers but not for good performers.

The studies have found that the relationship between satisfaction and performance is positive but weak — a correlation of .14 is typically reported (Jewell, 1985).  Some studies suggest that the relationship between satisfaction and performance is moderated by the degree to which pay is connected to performance.  When pay is clearly tied to performance, there is a positive correlation between the satisfaction and performance; when pay is not connected to performance, there is a negative correlation.

Finally, there is evidence that job satisfaction is related to both physical and mental health.  In fact, in one study, work satisfaction was found to be a better predictor of longevity than either physical health or tobacco use (Palmore, 1969).  Job dissatisfaction has a number of negative physical correlates, including fatigue, headache, loss of appetite, ulcers, arthritis, substance abuse, and cardiovascular problems.  The mental health correlates of job dissatisfaction include anxiety, worry, and impaired relationships.

5.  ORGANIZATIONAL COMMITMENT

Organizational commitment refers to the extent to which a person identifies with an organization and is willing to work to help the organization achieve its goals.  The research suggests that a worker’s organizational commitment is greatest when the job provides opportunities for personal growth and responsibility. The studies also indicate that, like job satisfaction, organizational commitment has a moderate to strong negative correlation with absenteeism and turnover (Mueller & Price, 1990).  A potential “downside” of strong organizational commitment is that it may increase resistance to change.

ENGINEERING PSYCHOLOGY

A.  Summary of Key Concepts

1.  Person-Machine Systems:  In a person-machine system, both components must work together to accomplish a job; that is, neither the person nor the machine can do it alone.  The relative contributions of the person and the machine vary across jobs.  People are generally better than machines at jobs that require flexibility; machines are generally better at jobs that require reliability and consistency.

2.  Work Schedules:  Research on the effects of the compressed work week (e.g., 4 days per week, 10 hours a day) is inconsistent although recent studies suggest that it increases worker/job satisfaction and has little or no effect on job performance. The results of impact on absenteeism have been mixed. Studies on flexitime schedules have found improved productivity, satisfaction with schedule and job, decreased absenteeism, and mixed results for performance.  Rotating shifts have been found to result in lowered productivity and satisfaction, higher accident rates, and more physical and mental health problems.  The most detrimental effects of shift work are for workers on rotating shifts with frequent schedule changes.  

3.  Fatigue, Stress, and Burnout:  Fatigue, stress, and burnout cause decrements in job performance, and all are affected by a variety of situational and individual variables.  A major contributor to job stress is a lack of control over one’s work or work environment.  Burnout is a result of chronic stress and is characterized by exhaustion, feelings of lowered personal accomplishment, and a tendency to think in impersonal terms. Psychotherapists most often cite “lack of therapeutic success” as the major source of stress in their work.

4.  Work-Family Conflict:  Work-family conflict occurs when role expectations and demands at work and at home are incompatible. It is associated with job and life dissatisfaction, lowered job productivity, marital problems, and psychological distress.

5.  Safety and Accidents:  Human error accounts for most accidents.  Research attempting to identify an “accident prone” personality has been largely unsuccessful, though some personality traits (e.g., pessimism, distrust of others) are correlated with accidents.  Accident prevention programs are most likely to be effective if they are based on a positive theme, provide training and education that is tailored specifically to the task, and offer incentives for reducing accident rates. Management commitment to safety is also a key component in ensuring the success of such programs.

6.  The Work Environment:  Noise has its most adverse effects on complex tasks, and intermittent noise is more distracting than continuous noise.  Giving individuals control (or even the perception of control) over noise has proven to reduce its adverse effects.  Music has positive effects on job satisfaction and the performance of simple, repetitive tasks.

B.  Key Concepts

Engineering psychology (also known as ergonomics and human factors psychology) is concerned with the “fit” between workers and their work procedures, environment, and equipment.  

1.  PERSON-MACHINE SYSTEMS

A primary focus of engineering psychology is on person-machine systems in which both components must work together to accomplish the job.  These systems vary with regard to the extent to which humans are actively and continuously involved.  In flying an airplane or controlling traffic at a busy airport, humans are an integral part of the total system and their presence is necessary most of the time.  However, in some large-scale production processes, such as those used by oil refineries, humans are less important than the highly automated equipment.

Such differences across jobs reflect the different abilities of humans and machines.  Essentially, people are flexible but cannot be depended on to perform consistently, while machines are inflexible but can be depended on to perform consistently (McCormick, 1970).  In terms of specific abilities, humans are better than machines at tasks such as recognizing patterns that vary from situation to situation, detecting unusual or unexpected phenomena, drawing on past experiences to help make decisions, generalizing from observations (i.e., inductive reasoning), setting priorities, and coming up with new solutions.  In contrast, machines are better at sensing stimuli that fall outside the range of human perception, working in the presence of environmental distractions, performing repetitive activities, storing information quickly and in large quantities, making rapid and consistent responses, sustaining performance over a long period of time, and recognizing stimuli as belonging to a general class (i.e., deductive reasoning).  

2.  WORK SCHEDULES

Alternative work schedules are variations on the usual five-day, 40 (or 36) hour work week including the compressed work week, flextime and shift work.

Compressed Work Week

The compressed work week (CWW) increases the number of hours worked per day and decreases the number of days worked in a given work period. For example, the work week might be compressed into four days a week, ten hours a day.          

Research on the effects of the CWW is mixed.  A meta-analysis by Baltes and colleagues (1999) found the compressed work week to have positive effects on supervisor ratings of employee performance, employee overall job satisfaction, and employee satisfaction with the work schedule however it was not found to have a strong impact on objective measures of job performance or absenteeism. These findings are inconsistent with earlier conclusions that the four-day (compressed) workweek is associated with a decrease in absenteeism. Productivity is usually unaffected, although depending on the job, may even be negatively affected (e.g., fatigue from work requiring a great deal of physical activity). 

Flextime

Flextime (also called flexitime or flexible working hours) allows employees to determine their own daily schedule as long as they work the total number of required hours and are present at work during certain core hours (e.g., between 10 and 3).  Studies on flextime indicate that it is associated with increased job satisfaction, satisfaction with schedule, productivity and decreased absenteeism.  The effects of flextime on performance are not clear, with some studies showing an increase and others showing no significant effect.

Shift Work

About 25% of the labor force in North America operates on shift-work schedules.  The research has shown that the same workers are less productive on the night shift than the day shift (Vidacek, Kaliterna, and Radosevic-Vidacek, 1986).  In addition, they are prone to make more errors and have more serious accidents.  One explanation for these problems is that most humans are diurnal (as opposed to nocturnal), and disruptions in the normal sleep-wake cycle produce physical and psychological effects that lower productivity.  Even worse than the night shift is the rotating shift, which is associated with lower productivity, higher accident rates, and physical and mental health problems.  There appear to be some individual differences in ability to adjust to rotating shifts.  For instance, younger workers adapt better than older workers (Zedeck, Jackson, and Summers, 1983) and workers who choose the night shift indicate fewer problems than workers assigned to it (e.g., Barton, 1994).

3.  FATIGUE, STRESS, AND BURNOUT

Fatigue and Rest Breaks

Fatigue refers to the subjective feeling of tiredness that affects both physiological and mental processes.  Fatigue is associated with performance decrements, especially on complex tasks that provide little feedback.  Rest breaks are useful for reducing fatigue and maintaining high levels of productivity throughout the work day.  When appropriately scheduled, rest periods also reduce work-related errors and accidents, reduce the length and number of unofficial breaks, and lead to higher worker satisfaction.  Rest breaks are most effective when they are scheduled before fatigue sets in and performance begins to lag and when frequent short breaks (rather than infrequent longer ones) are given.  

Stress

Stress and stress-related illnesses have increased in the past two decades.  One study found that 64% of survey respondents said their jobs involved stress (Gustman et al., 1995), and another study found that five out of every six workers filing illness claims with Blue Cross-Blue Shield reported stress as the major cause of their illness.  (ILO, 1993).  The causes of stress at work include quantitative overload (too much work to do in the time available), qualitative overload (work that is too difficult), and work underload (too little work to do or work that is too easy).  There is evidence that a major source of stress is having no control over one’s work or the work environment.  For example, it is not uncommon for executives to work 50 to 60 hours a week.  However, it is apparently not the long hours that are the source of stress for these individuals but the time pressure and deadlines underlying the need for the long hours (Cooper and Arbose, 1984).  An increasing source of stress is violence.  One survey found that one in every four workers reports being physically harassed, threatened, or attacked at work (Northwestern National Life Insurance Company, 1993).  Finally, another recent contributor is downsizing, which increases stress by increasing job insecurity and job demands (Cappelli et al., 1997).

Some studies have linked certain personality characteristics to stress.  As an example, people with a “Type A” personality are most vulnerable to job and life stress; they are highly prone to heart attacks and have high levels of competitiveness, time urgency, hostility, anger, and impatience.  In contrast, those with “Type B” personalities lack these characteristics and are much less vulnerable to the effects of stress.  Recent research suggests that the negative effects of Type A behavior are connected to certain aspects of it, primarily anger and hostility, rather than to a global personality pattern.

High stress occupations include police officer, fire fighter, computer programmer, dental assistant, electrician, plumber, social worker, telephone operator, and hairdresser.  As you probably know, psychotherapy is another profession that is stressful at times.  Research on the sources of work-related stress for psychotherapists has found that they consider a “lack of therapeutic success” to be the single most stressful aspect of their work (Farber and Heifetz, 1982).

Chronic stress not only leads to lower job performance and increased absenteeism but also to a variety of physical and mental health problems.  Factors that can reduce the effects of job-related stress include high job satisfaction; high autonomy and power; social support; good physical health; and sufficient ability to perform the job.  Hendrix (1991) recommends that stress-related interventions work best when they target the cause of stress.  For example, if goal ambiguity is the primary source of a worker’s stress, then a goal-setting program would be a useful intervention.

Burnout:  Job burnout is a potential response to chronic stress. It is characterized by physical and emotional exhaustion, a sense of reduced personal accomplishment, and a tendency to think in impersonal terms (e.g., to think of people as objects).  Burnout tends to be higher among women, single and divorced employees, people who have little opportunity for promotion, and professionals who deal frequently with other people.  Victims of burnout are often workaholics who are compulsively driven to work hard out of insecurity and lack of fulfillment in their personal lives (Machlowitz, 1980).  So-called “healthy workaholics” derive satisfaction and happiness from their work and are generally free from the effects of burnout.

4.  WORK-FAMILY CONFLICT

Because role expectations and demands at work and at home are often incompatible, overload and conflict result, producing a number of negative outcomes including job dissatisfaction and burnout, lowered work productivity, depression and other psychological distress, and marital and life dissatisfaction. There is some evidence of gender differences in work-family conflict, with women experiencing more conflict and stress than men, in part because they continue to maintain primary responsibility for the family even when pursuing a significant career (Burley, 1994).  Also, while some studies indicate that work interferes more with family than vice versa for both men and women, other studies suggest that work-related expectations and conflicts are a better predictor of work-family conflict for men, while family expectations and conflicts are more predictive for women (Duxbury and Higgins, 1991).

5.  SAFETY AND ACCIDENTS

Human errors account for between 50 and 80% of accidents (Jewell, 1985).  Factors that correlate highly with accidents include age (younger people have higher accident rates than older workers, even after accounting for experience); noxious environmental variables such as excessive heat or noise; alcohol use; poor attitudes toward safety; poor vision; and emotional instability.

A number of investigators have attempted to identify the “accident prone” personality.  Personality traits that correlate with accidents include pessimism, low level of trust in others, and a generally depressed temperament (Jewell, 1985).  However, it is not clear whether there is a specific and stable set of personality traits associated with accident proneness.  

Safety experts believe that training is the single most effective way to improve safe work behavior.  However, workers may be aware of the safest way to operate the equipment, but if their attitude toward safety is negative, knowledge alone may not protect them from harm.  Similarly, a positive attitude will not prevent accidents if employees do not know the rules for safe operation of their equipment.  Therefore, training must focus on both safe behaviors and attitudes toward safety.

To motivate employees to follow safe procedures, many organizations make use of publicity and promotional campaigns. For example, posters are located throughout the plant, booklets on safety are distributed, charts noting accident-free days are displayed, and safety contests are conducted.  Research investigating the effectiveness of these techniques has shown the following:

1.  Programs organized around a positive theme are more likely to be effective than those based on “scare” tactics.

2.  In general, safety posters alone are not that effective in decreasing accident rates.  They are most likely to have an impact on accidents when they are specific (e.g., when they illustrate exactly how to reduce accidents rather than merely state “Think Safe!” in big letters).

3.  Management commitment to safety programs is a key contributor to their success.

4.  Providing incentives for accident reduction (e.g., contests) is helpful, especially when combined with specific information and management commitment.

6.  THE WORK ENVIRONMENT

Noise

Although the research is inconsistent, it appears that, in many situations, long-term exposure to noise has adverse effects on productivity.  In terms of task characteristics, noise is more likely to have a negative effect on tasks requiring close attention or complex mental, perceptual, or motor operations. Automatic and well-learned tasks are not as negatively affected by noise, and performance on monotonous tasks may actually improve.  Intermittent noise is more distracting than constant noise; irrelevant noise is more distracting than noise related to the task (e.g., noise made by the equipment); and meaningful sounds (such as a conversation in the next office) are more distracting than non-meaningful sounds (like street noise).

Perceived control of the noise is a critical factor.  This was demonstrated by a study in which two groups of workers were exposed to distracting noise, with members of one group having no control over the noise and members of the other being told that they could turn off the noise at any time with a switch. Subjects in the switch group performed considerably better on the task — even though they never used the switch (Peters and Waterman, 1978).  Finally, there is evidence that some people are more “noise sensitive” than others and, therefore, more adversely affected by noise (Weinstein, 1978).  

Music

Some studies on the effects of music have found a slight positive effect on productivity if the work is repetitive, simple, and mundane.  However, for complex tasks, there are no consistent positive (or negative) effects.  When workers are asked, they generally report favorable attitudes toward the introduction of music in the workplace (Jewell, 1985).