3RD YEAR 1ST SEMESTER: INDUSTRIAL/ORGANIZATIONAL

PSYCHOLOGY
INTRODUCTION TO I/O organization such as marketing channels,
PSYCHOLOGY transportation networks, and cost accounting
(Kimbrough, Durley, & Muñoz, 2005).
Goal of Industrial Psychology ➢ I/O psychology relies extensively on
➢ To hire employees who love their work so research quantitative methods, and testing
much that they can't wait to get to work techniques. I/O are trained to use empirical
everyday data and statistics rather than clinical
➢ To develop outstanding employees who are judgment to make decisions.
well suited and trained. ➢ IO psychologists rely on scientist-
practitioner model. That is, I/O
WHAT IS I/O PSYCHOLOGY? psychologists act as scientists when they
➢ A branch of psychology that applies the conduct research and as practitioners when
principles of psychology to the workplace. they work with actual organizations.
➢ The purpose of I/O psychology is to enhance ➢ I/O psychologists act as scientist-
the dignity and performance of human practitioners when they apply research
beings, and the organizations they work in, findings so that the work they perform with
by advancing the science and knowledge of organizations will be of high quality and
human behavior (Rucci, 2008) enhance an organization’s effectiveness

Application of psychological principles like the TWO APPROACHES IN I/O PSYCHOLOGY

following: 1. Industrial - Focuses on determining the
- Principles of learning are used to develop competencies needed to perform a job,
training program and incentive plans staffing the organization with employees
- Principles of social psychology are used to who have those competencies, and
form work groups and understand employe increasing those competencies through
conflict training.
- Principles of motivation and emotions are 2. Organizational - Creates an organizational
used to motivate and satisfy employees structure and culture that will motivate
employees to perform well, give them with
How does it differ from business-related courses? the necessary information to do their jobs,
➢ Many HRM advocates the unstructured and provide working conditions that are safe
interview as an excellent solution for and result in an enjoyable and satisfying
selecting the best employees. I/O work environment.
psychologists, however, consider MAJOR FIELDS OF I/O PSYCHOLOGY
unstructured interviews to be of less value
than more suitable alternatives such as 1. Personnel Psychology - Study and practice
psychological tests, behavioral interviews, in such areas as analyzing jobs, recruiting
work samples, biodata, and assessment applicants, selecting employees, determining
centers (Berry, 2003). salary levels, training employees, and
➢ I/O psychology examines factors that affect evaluating employee performance
the people in an organization as opposed to - People within this subfield usually work in a
the broader aspects of running an training department of an organization and
are involved in such activities as identifying
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PSYCHOLOGY
the organization’s training needs, developing ➢ 1911, When Scott wrote the book Increasing
training programs, and evaluating training Human Efficiency in Business
success.
During World War I
2. Organizational Psychology - - I/O psychology made its first big impact
Organizational psychologists often conduct because of the large number of soldiers who
surveys of employee attitudes to get ideas had to be assigned to various units within
about what employees believe are an the armed forces, I/O psychologists were
organization’s strengths and weaknesses. employed to test recruits and then place
Usually serving in the role of a consultant, them in appropriate positions.
an organizational psychologist makes - Interestingly, John Watson, who is better
recommendations on ways problem areas known as a pioneer in behaviorism, served
can be improved. as a major in the U.S Army in World War I
- Concerned with the issues of leadership, job and developed perceptual and motor tests for
satisfaction, employee motivation, potential pilots.
organizational communication, conflict ➢ Though certainly not an I/O psychologist,
management, organizational change, and inventor Thomas A. Edison understood the
group processes within an organization. importance of selecting the right employees.
In 1920, Edison created a 150-item
3. Human Factors/Ergonomics - knowledge test that he administered to over
Concentrates on workplace design, human- 900 applicants. The test and passing score
machine interaction, ergonomics, and were so difficult that only 5% of the
physical fatigue and stress. These applicants passed.
psychologists frequently work with ➢ Frank Gilbreth and Lillian Moller Gilbreth
engineers and other technical professionals were among the first, if not the first,
to make the workplace safer and more scientists to improve productivity and reduce
efficient. fatigue by studying the motions used by
- Sample activities in this subfield have workers.
included designing the optimal way to draw ➢ In 1930s,
a map, designing the most comfortable chair, - I/O psychology greatly expanded its scope.
and investigating the optimal work schedule. Until then, it had been involved primarily in
personnel issues such as the selection and
Even though I/O psychologists make a good
placement of employees.
salary, the real benefits to the field involve the
- Hawthorne studies were published,
positive impacts on the lives of others. (Aamodt,
psychologists became more involved in the
2010)
quality of the work environment, as well as
WHEN IT ALL STARTED? the attitudes of employees.
➢ 1903, When Walter Dill Scott wrote The HAWTHORNE STUDIES
Theory of Advertising, in which psychology
➢ The study demonstrated that employee
was first applied to business
behavior was complex and that the
➢ 1910, When Hugo Munsterberg wrote
interpersonal interactions between managers
Psychology and Industrial Efficiency
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PSYCHOLOGY
and employees played a tremendous role in 4. I/O psychologists took a renewed interest in
employee behavior. developing methods to select employees.
Its Effects ➢ 2000, The greatest influence on I/O
psychology is the rapid advances in
- After interviewing employees and studying
technology such as computer-administered
the matter further, the researchers realized
tests, employers recruit and screen
that employees changed their behavior and
applicants online, employees are being
became more productive because they were
trained using e-learning and distance
being studied and received attention from
education, and managers are holding
their managers, a condition that is now
meetings in cyberspace rather than in
commonly referred to as the Hawthorne
person.
effect.
Contribution
- It inspired psychologists to increase their RESEARCH IN I/O PSYCHOLOGY
focus on human relations in the workplace Why do we conduct research?
and to explore the effects of employee
attitudes. ➢ To answer questions and make decisions
- One of the characteristics of I/O psychology
➢ In 1960s, Civil rights legislation laws is its extensive use of research and statistics.
focused the attention of HR professionals on Research ultimately saves organizations
developing fair selection techniques. As a money.
result, the need for I/O psychologists greatly - Many organizations relied on the
increased. employment interview as the main method
➢ 1970 - The decade understood issues that for selecting employees (most still do). But
involved employee satisfaction and researchers have shown that the unstructured
motivation and saw the development of employment interview is not the best
many theories about employee behavior in predictor of future behavior on the job
organizations. Like the increased use of (Schmidt & Hunter, 1998). Thus, without
behavior-modification techniques in research, an organization might still be
organizations. spending money on a method that actually
➢ 1980-1990 lowers its profits rather than raises them.
➢ To use it on everyday life
Major changes in I/O Psychology happened: - Research confronts us on an almost daily
1. Increased use of fairly sophisticated statistical basis, both at home and on the job.
techniques and methods of analysis. - Understanding research helps you to
critically listen and analyze results of these
2. A new interest in the application of cognitive studies to make more intelligent decisions.
psychology to industry like in performance ➢ Common Sense if often WRONG
appraisal. - Thirty-three studies investigating this
3. Increased interest in the effects of work on family question all concluded that contrary to
life and leisure activities. common sense, the majority of the
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PSYCHOLOGY
- time, an answer will be changed from wrong - One disadvantage of laboratory research is
to right (Kruger, Wirtz, & Miller, 2005). external validity, or generalizability of
results to organizations in the “real world.”
CONSIDERATIONS IN CONDUCTING
• Field research - Away from the laboratory
RESEARCH
and out in the “field”.
How to conduct research? - Field research has a problem opposite to that
of laboratory research. What field research
1. Decide what to research - It stems from
obviously gains in external validity it loses
starting a sentence with “I wonder…”
in control of extraneous variables that are
2. Form a Hypothesis - Prediction is usually
not of interest to the researcher (internal
based on a theory, previous research, or
validity).
logic.
3. Look for a theory - In psychology, there are
often competing theories that predict the
same outcome, but for different reasons.
4. Literature review - It can provide some
good ideas on how to conduct your study.
Four Types of Periodicals
a. Journals - It consist of articles written by
researchers directly reporting the results of a
study. It is the best source of unbiased and
accurate information about a topic.
b. Bridge Publications - Designed to “bridge
the gap” between academia and the applied Ethics in Research
world. Articles in these publications are ➢ Psychologists require that subjects
usually written by professors about a topic participate in studies of their own free will—
of interest to practitioners, but they are not a concept called informed consent.
as formal or statistically complex as articles ➢ On the basis of our ethical guidelines,
in journals. informed consent can be waived only when
c. Trade Magazines - It contain articles the research involves minimal risk to the
usually written by professional writers who participants, the waiver will not adversely
have developed expertise in a given field. affect the rights of the participants.
The main audience for trade magazines is ➢ When studies involve negative
practitioners in the field. consequences for a subject, as would be the
d. Magazines - These periodicals are designed case if we subjected employees to intense
to entertain as well as inform. heat to study the effects of temperature,
5. Identify the location of the study - You informed consent can be waived only if the
must decide whether to conduct the study in importance of the study outweighs the
the laboratory or in the field. negative consequences.
• Laboratory Research - Usually, this is
done at a university, but research is also
conducted in such organizations.
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PSYCHOLOGY
6. Choose Research Method particular situation, the decision that one
a. Experimental - The most powerful of all person makes may be very different than
research methods because it is the only one what another one makes.
that can determine cause-and-effect
Types of Dilemmas
relationships. Thus, if it is important to
know whether one variable produces or a. Type A Dilemma
causes another variable to change, then the - There is a high level of uncertainty
experiment is the only method that should be as to what is right or wrong;
used. - There appears to be no best solution;
b. Quasi-experiment - are often used to - There are both positive and negative
evaluate the results of a new program consequences to a decision.
implemented by an organization. b. Type B Dilemma - In a Type B dilemma,
c. Archival - involves using previously also called rationalizing dilemmas…
collected data or records to answer a - Usually, individuals know what is
research question. right but choose the solution that is
d. Survey - This method allows the researchers most advantageous to themselves.
to ask people their opinion on some topic. - Individuals “rationalize” they are
Surveys might ask employees about their right because “everyone else does
attitudes toward the organization, HR it.”
directors about their opinions regarding the
best recruitment method, or managers about
the success of their child-care centers.
e. Meta Analysis - a statistical method of
reaching conclusions based on previous
research. With meta-analysis, the researcher
goes through each article, determines the
effect size for each article, and then finds a
statistical average of effect sizes across all
articles. A meta- analysis results in one
number, called the mean effect size, which
indicates the effectiveness of some variable.
ETHICS IN IO PSYCHOLOGY
➢ Ethical dilemmas are ambiguous situations
that require a personal judgment of what is
right or wrong because there are no rules,
policies, or laws guiding such decisions.
➢ Individuals often rely on their morals and
personal values, which often leads to
different decisions by different people in
similar situations. Because people have
different backgrounds which impact their
personal values and how they define a
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PSYCHOLOGY
JOB ANALYSIS Is there a possibility that we encounter problems
in promoting employees?
➢ Gathering, analyzing, and structuring
information about a job’s components, • Peter Principle - Promoting the person who
characteristics, and requirements (Sanchez performs the best in the job immediately can
& Levine, 2000). result to Peter Principle. This refers to
promoting employees until they eventually
Goal of Job Analysis
reach their highest level of incompetence
• To identify the tasks performed in a job (Peter & Hull, 1969).
• The conditions under which the tasks are - An employee is promoted based on their
performed success in previous jobs until they reach a
• The KSAOs (knowledge, skills, abilities and level at which they are no longer competent,
other characteristics) needed to perform the as skills in one job do not necessarily
tasks under the conditions identified translate to another.
5. Performance Appraisal - Job analysis is
Importance of Job Analysis the basis of creating a tool for performance
➢ It is the foundation for almost all human appraisal.
resources activities. What is Performance Appraisal?
➢ It provides information and aids writing job
descriptions, selection of employees, ➢ Performance appraisal is a systematic
evaluation of performance and training evaluation of the performance of employees
programs. and to understand the abilities of a person
for further growth and development. It
1. Writing Job Descriptions - One of the assesses an individual employee's job
written products of a job analysis. It is the performance and productivity in relation to
process of determining the work activities certain pre-established criteria and
and requirements. organizational objectives.
- Job description—a brief summary of the 6. Job Classification - Job analysis enables a
tasks and job requirements. human resource professional to classify jobs
2. Employee Selection - Basis of clear into groups based on similarities in
understanding the tasks performed and the requirements and duties. Job classification is
competencies needed to perform those tasks. useful for determining pay levels, transfers,
3. Training - Job analysis yield lists of job and promotions.
activities that can be systematically used to 7. Job Evaluation - Job analysis information
create training programs. can also be used to determine the worth of a
4. Person Power Planning - Job analysis is job.
also used to determine worker mobility - Job evaluation is an assessment of the
within an organization. Worker mobility is relative worth of various jobs on the basis of
the worker’s expectation on their promotion a consistent set of job and personal factors,
and career success aside from the current such as qualifications and skills required.
position that they are in. The objective of job evaluation is to
determine which jobs should get more pay
than others.
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PSYCHOLOGY
8. Job Design - Job evaluation is an Remember
assessment of the relative worth of various
➢ Duties can always be added to a job
jobs on the basis of a consistent set of job
description, which can, and should, be
and personal factors, such as qualifications
updated on a regular basis.
and skills required. The objective of job
➢ The phrase “and performs other job-related
evaluation is to determine which jobs should
duties as assigned” should be included in the
get more pay than others.
job description.
- Through job design, organizations try to
raise productivity levels by offering non- Sections of Job Description
monetary rewards such as greater
1. Job Title - Job titles provide workers with
satisfaction from a sense of personal
some form of identity. Job titles affect
achievement in meeting the increased
perceptions of the status and worth of a job.
challenge and responsibility of one's work.
- An accurate title describes the nature of the
Techniques: job and aids in employee selection and
recruitment. If the job title indicates the true
➢ Job enlargement - increase in job tasks and
nature of the job, potential applicants for a
responsibilities to make a position more
position will be better able to determine
challenging.
whether their skills and experience match
➢ Job enrichment - exposure of employees to
those required for the job.
a variety of tasks that can help broaden the
2. Brief Summary - The summary need be
scope of their assigned job duties.
only a paragraph in length but should briefly
➢ Job rotation - strategy where employees
describe the nature and purpose of the job.
rotate between jobs at the same business.
3. Work and Activities - The work-activities
Employees take on new tasks at a different
section lists the tasks and activities in which
job for a period of time before rotating back
the worker is involved.
to their original position.
4. Tools and Equipment Used - List of all the
➢ Job simplification - breaking the job into
tools and equipment used to perform the
relatively easier sub-parts with the intention
work activities in the previous section.
to enhance the individual’s productivity by
5. Job Context - This section should describe
minimizing the physical and mental efforts
the environment in which the employee
required to perform a complex job.
works and should mention stress level, work
9. Organizational Analysis - A diagnostic
schedule, physical demands, level of
business process that can help organizations
responsibility, temperature, number of
understand their performance, look for
coworkers, degree of danger, and any other
problem areas, identify opportunities, and
relevant information.
develop a plan of action for improving
6. Work Performance - This section contains
performance.
a relatively brief description of how an
WRITING JOB DESCRIPTIONS employee’s performance is evaluated and
what work standards are expected of the
➢ For a job description to be of value, it must
employee.
describe a job in enough detail that decisions
7. Compensation Information - This section
about activities such as selection and
of the job description should contain
training can be made.
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information on the salary grade, whether the ➢ Field-based job analysis
position is exempt, and the compensable ➢ The job analyst individually
factors used to determine salary but interviews/observes a number of
employee’s actual salary or salary range incumbents out in the field.
should not be listed on the job description. g. What types of information should be
8. Job Competencies - These are the obtained?
knowledge, skills, abilities, and other ➢ Formal and informal requirement should be
characteristics (KSAOs) (such as interest, included. For example, formal requirements
personality, and training) that are necessary for a secretary might include typing letters
to be successful on the job. or filing memos. Informal requirements
might involve making coffee or picking up
Frequently Asked Questions
the boss’s children from school.
a. Who will conduct the Job Analysis? h. What types of information should be
➢ A job analysis is conducted by a trained obtained?
individual in the human resources ➢ If this task is in the job description, an
department, but it can also be conducted by applicant will know about this duty in
supervisors, or outside consultants. advance and can decide at the time of hire
b. How often should a job description be whether it is acceptable.
updated?
➢ A job description should be updated if a job HOW TO CONDUCT JOB ANALYSIS
changes significantly.
Step 1: Identify Tasks Performed - Identify the
c. How often should a job description be
major job dimensions and the tasks performed for
updated?
each dimension.
➢ An interesting reason that job descriptions
change across time is job crafting – the - the tools and equipment used to perform
informal changes that employees make in - the tasks, and the conditions under which the
their jobs (Wrzesniewski & Dutton, 2001). tasks are performed
That is, it is common for employees to
This information is usually gathered by the ff:
quietly expand the scope of their jobs to add
tasks they want to perform and to remove ➢ obtaining previous information on the job
tasks that they don’t want to perform. ➢ interviewing job incumbents
d. Are there ways to perform Job Analysis? ➢ observing performance
➢ Job analysis can be done either in a ➢ actually performing the job itself
committee-based job analysis or a field-
based job analysis. A. Gathering Existing Information -
e. Which employees should participate? Information can be from existing job
➢ Committee-based job analysis. descriptions, task inventories, and training
➢ A group of subject matter experts (e.g., manuals.
employees, supervisors) meet to generate B. Interviewing Subject Matter Experts -
the tasks performed, the conditions under SMEs are people who are knowledgeable
which they are performed, and the KSAOs about the job and include job incumbents,
needed to perform them. supervisors, customers, and upper-level
f. Which employees should participate? management.
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It comes in two forms: Characteristics of a well-written task statement:

• individual 1. One action should be done to one object. If the

• group statement includes the word "and", it may have
more than one action or object.
Guidelines for interviewing SMEs:
2. Should be written at a level that can be read and
➢ Prepare for the interview by announcing the
understood by a person with the same reading
job analysis to the employees well in
ability as the typical job recruitment
advance by selecting a quiet and private
interview location. 3. Written in same tense
➢ Open the interview by establishing rapport,
4. Should include tools and equipment used to
putting the worker at ease, and explaining
complete the task
the purpose of the interview.
➢ Conduct the interview by asking open-ended 5. Should not be competencies
questions, using easy-to-understand
6. Should not be a policy
vocabulary, and allowing sufficient time for
the employee to talk and answer questions. 7. Makes sense by itself
C. Observing Incumbents - During a job
8. For those activities that involve decision
analysis observation, the job analyst
making, the level of authority should be indicated.
observes incumbents performing their jobs
in the work setting. Step 3: Rate Task Statements

Advantage: It lets the job analyst actually see the ➢ Conduct Task Analysis - using a group of
worker do her job and thus obtain information that SMEs to rate each task statement on the
the worker may have forgotten to mention during frequency and the importance or criticality
the interview. of the task being performed.
➢ According to frequency and importance
Disadvantage: Once employees know they are
➢ Tasks will not be included in the job
being watched, their behavior changes, which keeps
description if their average frequency rating
an analyst from obtaining an accurate picture of the
is 0.5 or below
way jobs are done.
Step 4: Determine KSAOs
D. Job Participation - This involves analyzing
the job by actually performing it. It is ➢ A knowledge is a body of information
effective because it is easier to understand needed to perform task
every aspect of a job once you have done it ➢ A skill proficiency to perform a learned task
yourself. ➢ An ability is a basic capacity for performing
a wide range of different tasks, acquiring a
Step 2: Write Task Statements - Write task
knowledge, or developing a skill
statements that will be used in the task inventory
➢ Other characteristics includes such factors as
and include the job description.
personality, willingness, interest and
motivation and such tangible factors as
licenses, degrees, and years of experience
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PSYCHOLOGY
➢ In the old days, KSAOs were called job b. Determining the Levels for Each Compensable
specifications. Currently, KSAOs are Factor - factor such as education
commonly referred to as competencies.
c. Determining the Factor weights
➢ Once the list of essential KSAOs has been
developed, another group of SMEs is given 1. A job evaluation committee determines the
the list and asked to rate the extent to which total number of points that will be
each of the KSAOs is essential for distributed among the factors. Usually, the
performing the job. KSAOs with an average number is some multiple of 100 and is based
score of 0.5 or less are eliminated from on the number of compensable factors.
further consideration. 2. Each factor is weighted by assigning a
number of points. The more important the
Step 5: Selecting Tests to Tap KSAOs
factor, the greater the number of points that
➢ Method will be used to select new will be assigned.
employees and include such methods as 3. The number of points assigned to a factor is
interviews, work samples, ability tests, then divided into each of the levels.
personality tests, reference checks, integrity
2. Determining External Pay Equity - comparing
tests, biodata, and assessment centers.
the job to the external market (other organizations)
HOW TO CONDUCT DETERMINE THE
- Attract and Retain Employees
SALARY OF A JOB
The Organizations are paying their Employees in
Through Job Evaluation
two ways
➢ It is the process of determining a job’s
1. Direct Compensation - from internal and
worth.
external pay equity
➢ It is important to determine how much
employees in a position should be paid. 2. Indirect Compensation - Pay for time worked
like holidays and leave
Two stages of Job Evaluation
- Health protection
1. Determining Internal Pay Equity - involves
comparing jobs within an organization
a. Determine Compensable Job Factors- decide
factors differentiate the relative worth of the job
Possible compensable job factors include:

• Level of responsibility
• Physical demands
• Mental demands
• Education requirements
• Training and experience requirements
• Working conditions