Organizational Psychology Notes

ORGANISATIONAL PSYCHOLOGY AS PART OF THE SCIENCE OF PSYCHOLOGY

Historical Context

  • Disciplines Related to Psychology:

    • Natural Science

    • Philosophy

  • Philosophical Roots:

    • Plato (IV c. BC):

      • Idealistic conception of the soul: The soul is an eternal, incorporeal force.

      • Believed the soul was incorporeal, existing independently of the body.

      • Envisioned metempsychosis, where the soul inhabited successive bodies.

    • Aristotle:

      • Materialistic conception of the soul: The soul is an essential aspect of the living body, not a separate entity.

      • Living beings consist of both matter and form.

      • Sought to support his theory with observations and measurements.

Brief History of Industrial/Organizational (I/O) Psychology

  • The Early Years:

    • Students of Wilhelm Wundt:

      • Hugo Münsterberg: "father of industrial psychology"

        • 1909: Psychology and Market (article) which was an early study of applied psychology, suggesting psychology could be used for industrial applications like management, advertisement, and marketing.

        • Developed many questionnaires.

        • 1913: Psychology and Industrial Efficiency (book)

      • Walter Dill Scott:

        • Focused on using psychology to make advertisements more effective.

        • 1903: The Theory and Practice of Advertising (book)

        • Involved in advertisement factors like emotions, sympathy, sentimentality, suggestibility

        • Invented intelligent tests and improved selection processes

  • World Wars:

    • Army Alpha Test:

      • Developed during World War I by the US Army and APA for military personnel.

      • Verbal test assessing general intelligence, cognitive functions, and ability to follow directions and rules.

      • Considered occupational needs of the army.

    • Army Beta Test:

      • Non-verbal test used for soldiers who could not read.

    • The Edison Test (1921):

      • Knowledge test with more than 140 questions; only 5% passed.

    • Army Classification Test

    • Armed Forces Qualification Test

  • The Management Theory of Frank and Lillian Gilbreth (1930):

    • Believed in regulation and consistency in the workplace.

    • Based on 3 fundamental principles:

      1. Reduce the number of motions in a task

        • Used "therbligs": 18 kinds of elemental motions that make up a set of fundamental motions required for a worker to perform a manual operation or task

      2. Focus on the incremental study of motions and time

        • Closely studied motion and time to calculate the most efficient way to complete a given task

      3. Increase efficiency to increase profit and worker satisfaction

        • Prioritized finding a method of optimization that would boost profits without sacrificing the health, safety or well-being of workers.

MAIN AREAS OF COMPETENCE IN ORGANISATIONAL PSYCHOLOGY (Arnold, J. et al. Work Psychology. Understanding Human Behaviour in the Workplace. Pitman Publishing, 1995.)

  1. Selection and recruitment

    • Recruitment, career profile, aptitude testing (interviews, questionnaires, tests, aptitude tests, AC, etc.), assessment of performance, competency analysis --> competency tests, intelligence tests, motivation questionnaires, structured interview techniques, AC

  2. Training

    • training method, skills development, training, further training, communication, relationship building, assertiveness training, distance learning, training needs assessment, organisational learning --> motivational questionnaires, personal development plan, SMART goals, before and after scales, needs assessments

  3. Performance assessment

    • analysis and evaluation of work performance, implementation of performance appraisal system, feedback, rating --> 360 degree assessment, competency tests, feedback system

  4. Ergonomics

    • The working and physical working environment, work organisation, "safety-efficiency-comfort", human- machine/computer interaction, workplace and work equipment design --> needs assessment, Physical Symptoms Scale, Observation procedure, satisfaction survey

  5. Careers and careers advice

    • career choice, career development, career planning, career counselling, promoting socialisation at work --> motivation questionnaire, management attitude questionnaire

  6. Social skills

    • interpersonal relations and skills, social psychology in the workplace --> sociometry

  7. Equality, diversity

    • occupational rehabilitation, special categories in the workplace, integration of people with disabilities, accessibility

  8. Occupational health

    • mental health, stress at work, safety at work, accidents, drugs, smoking, health promotion at work --> Burn-out questionnaire, COPSOQ questionnaire, Perceived Stress Level, Physical Symptoms Scale,

  9. Job analysis and design, job description

    • --> survey, 360 degree assessment

  10. Attitude test

    • attitude measurement, work value tests, questionnaires ---> Employee Identification, Life Satisfaction Scale, Turnover

  11. Satisfaction

    • job satisfaction survey, work-life harmony --> Job Satisfaction Survey (COPSOQ)

Evolution of Organisational Psychology

  • Emergence with industrialisation, skilled jobs, and mass employment.

  • Early scientific management by Taylor sought to rationalise the early chaos; principles still reflected today.

  • Refinement of Taylor's metric precision and performance orientation over time.

  • Emergence of newer trends like human relations as formulated by Mayo.

  • Organisational psychology "trends" always appear embedded in the historical, cultural and economic context of the time, be it about leadership motivation core values organisational development directions organisational structure etc…

Theories About Employees

Employee as a Rational-Economically Oriented Person

  • Philosophy of hedonism: People are aimed to maximize their own advantage and self-interest.

  • Humans are inherently lazy and can be motivated by external incentives.

  • They don’t like their jobs and try to avoid work and responsibility.

  • The goals of the individual and the organization are opposite: external regulators are necessary for the employee to act in accordance with the goals of the organization.

  • Man is incapable of self-discipline and self-control (because of his irrational emotions).

  • Employees are mainly motivated by financial rewards.

Management Strategy Based on Rational-Economically Oriented Model

  • The organization buys the services and obedience of the employee with a financial reward.

  • The organisation's purpose is to protect itself and the worker "against the irrational characteristics of employees nature" with the help of its authority and control system. (Kovács, 2006)

  • The basis of authority: position (not expertise or personality)

  • High level of control!

Consequences of This Theory

  • Self-fulfilling prophecy: a prediction that directly or indirectly causes itself to become true → Apathetic, hostile employees (pygmalion effect)

  • If money is the only reward you can get, you want more and more of it

Scientific Management - Taylor

  • F. W. Taylor (1856-1915): mechanical engineer, known as Father of Scientific Management.

  • Main objective: improving efficiency, productivity

  • It was Taylor who invented the assembly line used by Henry Ford

Principles of scientific management:

  • Rationalization of company activities: Task management, everyone should be assigned a task according to their abilities → development of career suitability tests

  • Production planning and management: Work standards, standardized working conditions, technological conditions, written rules, development of programs and timetables.

  • Creating a functional organization: defining tasks

  • Work and time studies: Motion study, time measurement, elimination of unnecessary movements. It is the basis of the ergonomic approach.

  • Development of salary and incentive systems: high performance should be rewarded, low performance people should be replaced

Techniques of Scientific Management

  • Motion study

  • Time study

  • Functional Foremanship

  • Standardization and Simplification of work

  • Method study

  • Fatigue study

  • Differential Piece Rate System

Consequences of Scientific Management

  • Advantages

    • Better planning and decision making

    • Improved economic and work efficiency

    • More opportunities for workers to acquire training

    • Reduced waste

    • "a fair day's pay for a fair day's work.” (performance based wages)

  • Disadvantages

    • The feeling of pressure among workers

    • Decreasing motivation

    • Extreme specialisation – meaningless work

    • Complete managerial control over the workplace – low autonomy

    • Alienation of workers

Hawthorne studies

  • Hawthorne Works (a Western Electric factory outside Chicago)

  • 30 000 employees

  • Acceptable wages and working circumstances (vacations, sickness leave) but low productivity

  • 1924-1932: studies by National Scientific Academy & Harvard University & Western Electric

  • Manipulating different environmental factors (illumination, temperature, humidity/wages, rest time, length of workday)

  • Effect on productivity

Studies:

  • Effect of illumination

    • Study 1: 3 different departments → higher productivity even at increased or decreased illumination

    • Study 2: Experimental group: decreasing illumination control group: no changes → higher productivity at both groups

  • But why??

    • Besides illumination what other factors can be in the background?

    • Attention, the experience of being important, group identity, standing out from the crowd

  • The Hawthorne-effect: Employees are affected by any developmental changes at the workplace → increasing performance in the short run, after a short period the performance begins to fall

  • Increased performance is not certainly the effect of change

  • The feeling of being important, being in the centre of attention can increase productivity

The Effects of Hawthorne-studies

  • Besides financial motivators, social motivators are also important (e.g. being a valued member of a group)

  • Social relationships are strong incentives

The theory of socially motivated employees

  • Employees are mainly motivated by social needs.

  • Social relationships can compensate for even purposeless and not joyful work.

  • Acceptance and acknowledgement of co-workers can be more motivating than a manager's attention.

Management strategies based on the theory of socially motivated employees

  • Managers should not only concentrate on tasks but on employees' needs

  • They care about workers’ feelings

  • Not just controlling employees but supporting their work

  • Not motivate employees, because they have internal motivation

  • When an organization can fulfil the employees’ social needs→ they will be motivated to work for organizational aims

Elton Mayo

  • Hawthorne Works (a Western Electric factory outside Chicago)

  • 30 000 employees

  • Acceptable wages and working circumstances (vacations, sickness leave) but low productivity

  • 1924-1932: studies by National Scientific Academy & Harvard University & Western Electric

  • Manipulating different environmental factors (illumination, temperature, humidity/wages, rest time, length of workday)

  • Effect on productivity