Overview and Evolution of Organisational Psychology

Definition: Organisational Psychology, also known as Industrial-Organizational (I-O) or Business psychology, is the science of human behavior, cognitions, emotions, and motivation as it relates to work.
Dual Focus:
- Employees: Emphasis on health and well-being.
- Organisation: Emphasis on efficiency and productivity.
Importance: There are approximately $3.6 \times 10^{9}$ workers globally. Organisational effectiveness leads to cheaper goods and reduced costs through improved performance.
Modern Context: Current trends include remote/virtual teams, artificial intelligence, automation, globalisation, flexibility, mental health, and Diversity, Equity, and Inclusion (DEI).

Early Pioneers:
- Hugo Munsterberg: Known as the "Father of Industrial Psychology."
- Walter Dill Scott: Studied the psychology of advertising and salespersons.
Scientific Management: Frederick W. Taylor proposed applying scientific principles to work to increase efficiency. He believed in "one best method" determined by time and motion studies.
Taylor's Principles: Replace rule-of-thumb with science, select and train workers scientifically, plan work for employees, and divide labor between managers (planners) and workers (performers).
Hawthorne Studies: Led by Elton Mayo at the Western Electric Co. Hawthorne Plant.
- Human Relations Movement: Highlighted that social factors and worker morale influence productivity.
- Hawthorne Effect: People perform better when they know they are being observed.

Definitions:
- Recruitment: Generating a pool of qualified applicants.
- Selection: Choosing individuals with the specific qualifications needed.
Internal Recruitment (Make): Includes promotions, employee referrals, database searches, transfers, and re-recruiting former employees.
External Recruitment (Buy): Includes advertisements, job fairs, job boards, university milk-rounds, and employment agencies.
Selection Process Flow: Screening applications → Employment tests → Interviews → Reference checks → Medical examination → Hiring.
Psychometric Testing: Standardized methods to measure mind-related traits, including aptitude (numerical, verbal, logical) and personality assessments.
Common Biases:
- Primacy Effect: Deciding on a candidate within the first few minutes.
- Contrast Effect: Comparing applicants against each other rather than objective criteria.
- Similarity Bias: Scoring candidates higher if they share personality, race, or gender traits with the interviewer.
- Halo/Horn Effect: One positive or negative trait inflating or tainting the entire impression.

Performance Management: A continuous series of activities (Planning, Monitoring, Reviewing, Rewarding) to ensure the organization meets its performance needs.
Performance Appraisal: A periodic event involving the determination and communication of how well an employee performs relative to a standard.
Appraisal Methods:
- Rating scales and Behaviorally Anchored Rating Scales (BARS).
- Critical incident method and Essay method.
- $360$ -degree feedback method.
Case Study (Aroha the Typist):
- Aroha has a typing speed of $30$ , compared to Jess ( $50$ ) and Meihana ( $60$ ).
- Contextual factors: Aroha is new ( $3$ months), uses an old laptop that freezes, but produces errorless statistical reports. Jess and Meihana have new laptops but more errors.

Core Concept: Leadership uses power and influence to attain goals and change the thoughts/actions of others.
Trait Era (Great Man Theory): 19th-century belief that leaders are born with inherited, divine-inspired traits like dominance, high energy, and persuasiveness.
Behavioural Era (Influence Era): Assumes leaders are made.
- Ohio State & Michigan Studies: Identified task-oriented (initiating structure) vs. relationship-oriented (consideration) styles.
- Lewin’s Styles: Autocratic (no consultation), Democratic (involved decision-making), and Laissez-faire (minimal involvement).
Contingency Era: Proposes there is no "one best style." Effectiveness depends on the fit between the leader's style and the situation (Fred Fiedler; Ralph Stogdill).
Transactional Leadership: Focuses on the exchange between leader and follower; uses rewards (pay, advancement) and penalties to meet expectations.
Transformational Leadership: A process of developing followers to their fullest potential through the "Four I's":
- Idealized Influence.
- Inspirational Motivation.
- Intellectual Stimulation.
- Individualized Consideration.
Charisma: A special personality characteristic (Weber, 1947) that enables deep emotional connections and influence.