Psy 292

PSY 292
Industrial and Person nel

Psychology
COURSE MANUAL
Industrial and Personnel

Psychology
PSY292
University of Ibadan Distance Learning Centre

Ibadan Open and Distance Learning Course Series Development
Version 1.0 beta
Copyright
Copyright © 2009, 2013 by Distance Learning Centre, University of
Ibadan, Ibadan.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise, without the prior permission of the copyright owner.
ISBN:978-021-376-7
General Editor: Prof. Bayo Okunade
Page layout, instructional design & development by

EDUTECH portal, www.edutechportal.org
University of Ibadan Distance Learning Centre

University of Ibadan,
Nigeria
Telex
: 31128NG
Tel: +234
(80775935727)
E-mail:
[email protected]
Website:
www.dlc.ui.edu.ng
Vice-Chancellor’s Message
The Distance Learning Centre is building on a solid tradition of over two decades of service in
the provision of External Studies Programme and now Distance Learning Education in Nigeria
and beyond. The Distance Learning mode to which we are committed is providing access to
many deserving Nigerians in having access to higher education especially those who by the
nature of their engagement do not have the luxury of full time education. Recently, it is
contributing in no small measure to providing places for teeming Nigerian youths who for one
reason or the other could not get admission into the conventional universities.
These course materials have been written by writers specially trained in ODL course delivery.
The writers have made great efforts to provide up to date information, knowledge and skills in
the different disciplines and ensure that the materials are user-friendly.
In addition to provision of course materials in print and e-format, a lot of Information
Technology input has also gone into the deployment of course materials. Most of them can be
downloaded from the DLC website and are available in audio format which you can also
download into your mobile phones, IPod, MP3 among other devices to allow you listen to the
audio study sessions. Some of the study session materials have been scripted and are being
broadcast on the university‗s Diamond Radio FM 101.1, while others have been delivered and
captured in audio-visual format in a classroom environment for use by our students. Detailed
information on availability and access is available on the website. We will continue in our
efforts to provide and review course materials for our courses.
However, for you to take advantage of these formats, you will need to improve on your I.T.
skills and develop requisite distance learning Culture. It is well known that, for efficient and
effective provision of Distance learning education, availability of appropriate and relevant
course materials is a sine qua non. So also, is the availability of multiple plat form for the
convenience of our students. It is in fulfillment of this, that series of course materials are being
written to enable our students study at their own pace and convenience.
It is our hope that you will put these course materials to the best use.
Prof. Isaac Adewole

Vice-Chancellor
Foreword
As part of its vision of providing education for ―Liberty and Development‖ for Nigerians and
the International Community, the University of Ibadan, Distance Learning Centre has recently
embarked on a vigorous repositioning agenda which aimed at embracing a holistic and all
encompassing approach to the delivery of its Open Distance Learning (ODL) programmes.
Thus we are committed to global best practices in distance learning provision. Apart from
providing an efficient administrative and academic support for our students, we are committed
to providing educational resource materials for the use of our students. We are convinced that,
without an up-to-date, learner-friendly and distance learning compliant course materials, there
cannot be any basis to lay claim to being a provider of distance learning education. Indeed,
availability of appropriate course materials in multiple formats is the hub of any distance
learning provision worldwide.
In view of the above, we are vigorously pursuing as a matter of priority, the provision of
credible, learner-friendly and interactive course materials for all our courses. We commissioned
the authoring of, and review of course materials to teams of experts and their outputs were
subjected to rigorous peer review to ensure standard. The approach not only emphasizes
cognitive knowledge, but also skills and humane values which are at the core of education, even
in an ICT age.
The development of the materials which is on-going also had input from experienced editors
and illustrators who have ensured that they are accurate, current and learner-friendly. They are
specially written with distance learners in mind. This is very important because, distance
learning involves non-residential students who can often feel isolated from the community of
learners.
It is important to note that, for a distance learner to excel there is the need to source and read
relevant materials apart from this course material. Therefore, adequate supplementary reading
materials as well as other information sources are suggested in the course materials.
Apart from the responsibility for you to read this course material with others, you are also
advised to seek assistance from your course facilitators especially academic advisors during
your study even before the interactive session which is by design for revision. Your academic
advisors will assist you using convenient technology including Google Hang Out, You Tube,
Talk Fusion, etc. but you have to take advantage of these. It is also going to be of immense
advantage if you complete assignments as at when due so as to have necessary feedbacks as a
guide.
The implication of the above is that, a distance learner has a responsibility to develop requisite
distance learning culture which includes diligent and disciplined self-study, seeking available
administrative and academic support and acquisition of basic information technology skills.
This is why you are encouraged to develop your computer skills by availing yourself the
opportunity of training that the Centre‗s provide and put these into use.
In conclusion, it is envisaged that the course materials would also be useful for the regular
students of tertiary institutions in Nigeria who are faced with a dearth of high quality textbooks.
We are therefore, delighted to present these titles to both our distance learning students and the
university‗s regular students. We are confident that the materials will be an invaluable resource
to all.
We would like to thank all our authors, reviewers and production staff for the high quality of
work.
Best wishes.
Professor Bayo Okunade

Director
Course Development Team
Content Authoring David E. Okurame, Ph.D.
Content Reviewer Prof. David E. Okurame
Content Editor Prof. Remi Raji-Oyelade Dr.

Production Editor Gloria O. Adedoja Folajimi
Learning Design & Technologist Olambo Fakoya Ogunmefun
Managing Editor Oladele Abiodun Prof. Bayo
General Editor Okunade
Contents
About this course manual 1
How this course manual is structured ............................................................................................................................... 1
Course overview 3
Welcome to Industrial and Personnel Psychology PSY292...................................................................................... 3
Industrial and Personnel Psychology PSY292—is this course for you? ............................................................. 3
Timeframe ...................................................................................................................................................................................... 4
How to be successful in this course..................................................................................................................................... 4
Need help? ...................................................................................................................................................................................... 5
Academic Support....................................................................................................................................................................... 5
Activities.......................................................................................................................................................................................... 5
Assessments .................................................................................................................................................................................. 6
Bibliography .................................................................................................................................................................................. 6
Study Session 1 7
Introduction to Industrial Psychology............................................................................................................................... 7
Introduction .................................................................................................................................................................... 7
1.1 Definition of Industrial Psychology ............................................................................................................... 7
1.2 The Significance of Industrial Psychology .................................................................................................. 7
1.3 The Practice of Industrial Psychology .......................................................................................................... 8
1.4 The Duties of Industrial Psychologists ......................................................................................................... 8
Study Session Summary ........................................................................................................................................................... 9
Assessment ................................................................................................................................................................................. 10
Bibliography ............................................................................................................................................................................... 10
Study Session 2 11
Research in Industrial Psychology ................................................................................................................................... 11
Introduction ................................................................................................................................................................. 11
2.1 Steps in Research in Industrial Psychology ............................................................................................ 11
Study Session Summary ........................................................................................................................................................ 12
Assessment ................................................................................................................................................................................. 12
Bibliography ............................................................................................................................................................................... 12
Study Session 3 13
Industrial Psychology and the Work Environment................................................................................................... 13
Introduction ................................................................................................................................................................. 13
3.1 The New Work Environment......................................................................................................................... 13
3.2 Concepts of Recruitment, Selection and Placement ............................................................................ 14
3.3 Personnel Decisions .......................................................................................................................................... 14
ii

Assessment ................................................................................................................................................................................. 15
Bibliography ............................................................................................................................................................................... 15
Study Session 4 16
Criterion ....................................................................................................................................................................................... 16
Introduction ................................................................................................................................................................. 16
4.1 What is Criterion?............................................................................................................................................... 16
4.2 Difficulties of Criterion..................................................................................................................................... 16
Assessment ................................................................................................................................................................................. 17
Bibliography ............................................................................................................................................................................... 17
Study Session 5 18
Job Analysis................................................................................................................................................................................. 19
Introduction ................................................................................................................................................................. 19
5.1 Job Analysis ........................................................................................................................................................... 19
8.2 Methods of Job Analysis?................................................................................................................................. 19
Assessment ................................................................................................................................................................................. 21
Bibliography ............................................................................................................................................................................... 21
Study Session 6 22
Selection Instrument and Process .................................................................................................................................... 22
Introduction ................................................................................................................................................................. 22
6.1 Utility of Selection Instrument ...................................................................................................................... 22
6.2 Models for Selection with Multiple Instruments .................................................................................. 23
6.3 Selection Process ................................................................................................................................................ 23
Assessment ................................................................................................................................................................................. 25
Bibliography ............................................................................................................................................................................... 25
Study Session 7 26
Training Approaches and Process .................................................................................................................................... 26
Introduction ................................................................................................................................................................. 26
7.1 Approaches to Training ................................................................................................................................... 26
7.2 The Training Process......................................................................................................................................... 27
Assessment ................................................................................................................................................................................. 28
Bibliography ............................................................................................................................................................................... 28
Study Session 8 29
Performance Evaluation, Training and Methods ....................................................................................................... 29
Introduction ................................................................................................................................................................. 29
8.1 Performance Evaluation and Training ...................................................................................................... 29
8.2 Performance Evaluation Methods............................................................................................................... 30
Assessment.................................................................................................................................................................................. 31
Bibliography ............................................................................................................................................................................... 31
References 32
About this course manual Introduction to Industrial Psychology
About this course manual

Industrial and Personnel PsychologyPSY292 has been produced by
University of Ibadan Distance Learning Centre. It is structured in the
same way, as other psychology course.
How this course manual is

structured
The course overview
The course overview gives you a general introduction to the course.
Information contained in the course overview will help you determine:
 If the course is suitable for you.
 What you will already need to know.
 What you can expect from the course.
 How much time you will need to invest to complete the course.
The overview also provides guidance on:
 Study skills.
 Where to get help.
 Course assessments and assignments.
 Activity icons.
 Study sessions.
We strongly recommend that you read the overview carefully before

starting your study.
The course content

The course is broken down into study sessions. Each study session
comprises:
 An introduction to the study session content.
 Learning outcomes.
 Content of study sessions.
 A study session summary.
 Assessments and/or assignment, as applicable.
1
PSY292 Industrial and Personnel Psychology
Your comments
After completing this course, Industrial and Personnel Psychology, we
would appreciate it if you would take a few moments to give us your
feedback on any aspect of this course. Your feedback might include
comments on:
 Course content and structure.
 Course reading materials and resources.
 Course assessments.
 Course assignments.
 Course duration.
 Course support (assigned tutors, technical help, etc).
 Your general experience with the course provision as a distance
learning student.
Your constructive feedback will help us to improve and enhance this
course.
2
Course overview Introduction to Industrial Psychology
Course overview
Welcome to Industrial and

Personnel
PsychologyPSY292
This course will expose you to the field of industrial and personnel
psychology. Personnel psychology is generally considered the important
side of the industrial/organizational equation and encompasses both
selection and training. This course will therefore examine the theory,
research, and practice perspectives of selection and training.
This course manual supplements and complements PSY292 UI Mobile
Class Activities as an online course. The UI Mobile Class is a virtual
platform that facilitates classroom interaction at a distance where you can
discuss / interact with your tutor and peers while you are at home or
office from your internet-enabled computer. You will also use this
platform to submit your assignments, receive tutor feedback and course
news with updates. For more information about this course or to request
for web access code, please visit learnersupport.dlc.ui.edu.ng
Industrial and Personnel

PsychologyPSY292—is this
course for you?
PSY292 is a three unitcompulsorycourse. The course examines
psychology as applied to business and industry. The prerequisites to this
course are PSY101, PSY102, PSY103 and PSY105.
Course outcomes
Upon a successful completion of Industrial and Personnel

PsychologyPSY292, you will be able to:
 analyse primary business and industrial personnel decisions
addressed in industrial and personnel psychology.
Outcomes
 highlight human factor selection principles.
 carry out performance evaluation and training approaches.
3
Timeframe
This is a 15 week course. It requires a formal study time of 45 hours. The
formal study times are scheduled around online discussions / chats with
your course facilitator / academic advisor to facilitate your learning.
Kindly see course calendar on your course website for scheduled dates.
You will still require independent/personal study time particularly in
How long? studying your course materials.
How to be successful in this

course
As an open and distance learner your approach to learning will be
different to that from your school days, where you had onsite education.
You will now choose what you want to study, you will have professional
and/or personal motivation for doing so and you will most likely be
fitting your study activities around other professional or domestic
responsibilities.
Essentially you will be taking control of your learning environment. As a
consequence, you will need to consider performance issues related to
time management, goal setting, stress management, etc. Perhaps you will
also need to reacquaint yourself in areas such as essay planning, coping
with exams and using the web as a learning resource.
We recommend that you take time now—before starting your self-
study—to familiarize yourself with these issues. There are a number of
excellent resources on the web. A few suggested links are:
 http://www.dlc.ui.edu.ng/resources/studyskill.pdf
This is a resource of the UIDLC pilot course module. You will find
sections on building study skills, time scheduling, basic concentration
techniques, control of the study environment, note taking, how to read
essays for analysis and memory skills (―remembering‖).
 http://www.ivywise.com/newsletter_march13_how_to_self_study.htm
l
This site provides how to master self-studying, with bias to emerging
technologies.
 http://www.howtostudy.org/resources.php
Another ―How to study‖ web site with useful links to time
management, efficient reading, questioning/listening/observing skills,
getting the most out of doing (―hands-on‖ learning), memory building,
tips for staying motivated, developing a learning plan.
The above links are our suggestions to start you on your way. At the time
of writing these web links were active. If you want to look for more, go to
4
Course overview Introduction to Industrial Psychology
www.google.com and type ―self-study basics‖, ―self-study tips‖, ―self-

study skills‖ or similar phrases.
Need help?
As earlier noted, this course manual complements and supplements
PSY292at UI Mobile Class as an online course, which is domiciled at
www.dlc.ui.edu.ng/mc.
You may contact any of the following units for information, learning
Help resources and library services.
Distance Learning Centre (DLC) Head Office
University of Ibadan, Nigeria Morohundiya Complex, Ibadan-
Tel: (+234) 08077593551 – 55 Ilorin Expressway, Idi-Ose,
(Student Support Officers) Ibadan.
Email: [email protected]
Information Centre Lagos Office

20 Awolowo Road, Bodija, Speedwriting House, No. 16
Ibadan. Ajanaku Street, Off Salvation
Bus Stop, Awuse Estate, Opebi,
Ikeja, Lagos.
For technical issues (computer problems, web access, and etcetera),

please visit: www.learnersupport.dlc.ui.edu.ng for live support; or send
mail to [email protected].
Academic Support
A course facilitator is commissioned for this course. You have also been
assigned an academic advisor to provide learning support. The contacts of
your course facilitator and academic advisor for this course are available
at the course website: www.dlc.ui.edu.ng/mc
Help
Activities
This manual features ―Activities,‖ which may present material that is
NOT extensively covered in the Study Sessions. When completing these
activities, you will demonstrate your understanding of basic material (by
answering questions) before you learn more advanced concepts. You will
be provided with answers to every activity question. Therefore, your
5
Activities emphasis when working the activities should be on understanding your

answers. It is more important that you understand why every answer is
correct.
Assessments
There are three basic forms of assessment in this course: in-text questions
(ITQs) and self assessment questions (SAQs), and tutor marked
assessment (TMAs). This manual is essentially filled with ITQs and
SAQs. Feedbacks to the ITQs are placed immediately after the questions,
Assessments while the feedbacks to SAQs are at the back of manual. You will receive
your TMAs as part of online class activities at the UI Mobile Class.
Feedbacks to TMAs will be provided by your tutor in not more than 2
weeks expected duration.
Schedule dates for submitting assignments and engaging in course / class
activities is available on the course website. Kindly visit your course
website often for updates.
Bibliography
For those interested in learning more on this subject, we provide you with
a list of additional resources at the end of this course manual; these may
be books, articles or websites.
Readings
6
Study Session 1 Introduction to Industrial Psychology
Study Session 1
Introduction to Industrial
Psychology
Introduction
This Study Session provides you with some definitions of industrial
psychology, and an explanation of the major thrust of these definitions.
The Session will also explain why students of psychology and the general
population require the knowledge of industrial psychology. It will
therefore provide you with modes of practice of industrial psychology in
different organisations. Lastly, this Study Session will expose you to the
indispensable duties of industrial psychologists in the workplace.
When you have studied this session, you should be able to:
i. define industrial psychology.
ii. discuss the origins of industrial psychology
iii. highlight the importance of industrial psychology.
Learning Outcomes iv. outline how industrial psychology is practiced in academic, public
and private organisations.
v. highlight at least seven essential duties of industrial psychologists in
industries.
1.1 Definition of Industrial Psychology

Industrial psychology has been defined in various ways. While some
definitions focus on the research context of industrial psychology, others
focus on the practice context (application) or both. This conclusion can
be inferred from the following definitions:
 the scientific study of human behaviour in the work setting.
 the scientific study of workplace behaviour, and the use of this
information to improve employee and organisational performance.
 the selection and placement of individuals in an industry, using
scientific method.
 the application of psychological principles and theory to the
workplace.
 a subfield of psychology that is concerned with the application of
psychological principles to the selection, placement, appraisal and
training of employees.
1.2 Origins of Industrial Psychology

Considering that the field of psychology itself has been around for only a
relatively short time (1879), it is not surprising that I/O psychology has a
correspondingly short history. Although various experts disagree about the
precise beginning of I/O psychology, it is generally thought to have started
7
either in 1903 when Walter Dill Scott wrote The Theory of Advertising, in
which psychology was first applied to business; in 1910 when Hugo
Munsterberg wrote Psychology and Industrial Efficiency, which was first

published in English in 1913; or in 1911 when Scott wrote the book
Increasing Human Efficiency in Business (Koppes & Pickren, 2007).
Regardless of the official starting date, I/O psychology was born in the
early 1900s. In addition to Scott and Munsterburg, pioneers in the field
include James Cattell, Walter Bingham, John Watson, Marion Bills, and
Lillian Gilbreth. Interestingly, the term ―industrial psychology‖ was
seldom used prior to World War I. Instead, the common terms for the field
were ―economic psychology,‖ ―business psychology,‖ and ―employment
psychology‖ (Koppes & Pickren, 2007).
I/O psychology made its first big impact during World War I. Because of
the large number of soldiers who had to be assigned to various units
within the armed forces, I/O psychologists were employed to test recruits
and then place them in appropriate positions. The testing was
accomplished mainly through the Army Alpha and Army Beta tests of
mental ability. The Alpha test was used for recruits who could read and
the Beta test for recruits who could not read. The more intelligent recruits
were assigned to officer training, and the less intelligent to the infantry.
Interestingly, John Watson, who is better known as a pioneer in
behaviorism, served as a major in the U.S. Army in World War I and
developed perceptual and motor tests for potential pilots (DiClemente &
Hantula, 2000). I/O psychologists, especially Henry Gantt, were
responsible for increasing the efficiency with which cargo ships were
built, repaired, and loaded (Van De Water, 1997).
In the 1930s, I/O psychology greatly expanded its scope. Until then, it had
been involved primarily in personnel issues such as the selection and
placement of employees. However, in the 1930s, when the findings from
the famous Hawthorne studies were published, psychologists became
more involved in the quality of the work environment, as well as the
attitudes of employees. The Hawthorne studies, conducted at the
Hawthorne plant of the Western Electric Company in the Chicago area,
demonstrated that employee behavior was complex and that the
interpersonal interactions between managers and employees played a
tremendous role in employee behavior. The Hawthorne studies were
initially designed to investigate such issues as the effects of lighting
levels, work schedules, wages, temperature, and rest breaks on employee
performance.
1.3 The Significance of Industrial Psychology

The field of psychology is vast and addresses a wide range of issues.
Different human and animal issues in the discipline are therefore
addressed by different subfields. Undergraduate training in psychology
leads to the award of a degree or diploma in the general field of
psychology. This requires that you go through training in basic areas of
the discipline. One of such areas is industrial psychology.
Again, undergraduate knowledge in this area lays the foundation for
postgraduate studies and specialization in industrial psychology.
8
Study Session 1 Introductioonnto Industrial Psychology
.
The global economy has witnessed an unprecedented increase in the
number of industries with a correspondent increase in individuals taking
up positions in them. These individuals, to a large extent, determine the
effectiveness of the organisation in which they work because their
behaviour is affected by it. Since we all work, or will eventually work, in
one form of industry or another, a basic knowledge of workplace
behaviour and how it affects productivity is essential to enable us
diagnose and solve both employee and organisational related problems.
The end-result of this is a buoyant economy.
1.4 The Practice of Industrial Psychology

Industrial psychology is practiced in diverse work settings with a greater
percentage in academics, followed by public and private organizations. In
these organizations, the pivot on which industrial psychology is carried
out is research and/or practice.
Industrial psychologists who work in the academic setting pay more
emphasis on research on diverse organisational issues and problems. The
findings in such investigations are then published in journals, which are
usually scholarly and practice-oriented. This practice of industrial
psychology by academics can be extended to public and private
organisations whenever academics act as consultants to them. In this
case, they provide the concerned establishments with specific empirical
organisational guidance.
Conversely, industrial psychologists employed in public and private
organisations emphasize practice by focusing on the application of
industrial psychology to their organisation or workplace. They apply
established principles and theories to issues and problems in their
organisations. In the Nigerian work environment, a large percentage of
industrial psychologists that are in practice are found in the human
resources or employee development departments of organisations.
1.5 The Duties of Industrial Psychologists

Industrial psychologists perform a wide range of crucial duties that makes
the hiring of an industrial psychologist a necessity for organizations. The
duties /functions are discussed below.
1. First, the traditional function and main duty of an industrial
psychologist is the selection and placement of individuals to be
employed in an organization. People differ in their levels of skills
required to do a particular work well. Selection and placement of
applicants by industrial psychologists take advantage of these
individual differences to maximize work performance. This is
achieved because they utilize scientifically proven psychological
principles to select people for the various positions in an
organization.
9
on
2. Second, they ensure that different categories of workers have basic

skills for success on the job and also help to update these skills
through well designed training programmes. It is logical to expect
that if employees lack the necessary skills to do well on the job, they
will find their job uninteresting. Training especially helps to address
the shortcomings of low performing members of staff, and
addressing these shortcomings eventually helps to make their work
satisfying.
3. Third, they design performance evaluation and appraisal packages
that result in appropriate tangible and non-tangible rewards for high
performing employees. It is common knowledge that if individuals
are rewarded for a job well done, they are happy and derive
satisfaction from doing their job. Consequently, the workforce
managed by industrial psychologists will usually feel fairly treated.
4. Fourth, they assist the organization to design a work friendly
environment that is devoid of work process constraints.
5. Fifth, they help organizations to relate with employees in a fairly
reasonable manner, making them more comfortable and satisfied
with their work activity.
6. Sixth, the duties listed in 1-5 above and other context-specific
packages which the industrial psychologist may choose to design
helps to boost morale and motivate employees.
7. Seventh the end result of all the foregoing activities helps the
industrial psychologists to complete another duty, that of creating a
productive and effective workforce.
Study Session Summary

In this Study Session, you learnt that some definitions of industrial
psychology focused on the research context, while others focused on the
practice context or both. Y o u a l s o l e a r n t t h a t World War I, World
Summary War II, and the Hawthorne studies have had important impacts on the
origins of I/O psychology. This Study Session noted that since the
course teaches how to face and deal with problems related to
workplace, we should all study the course, the reason being that we are
all workers in
one sense or another. Lastly, you examined the duties of industrial
psychologists. Specifically, we presented seven essential duties of an
industrial psychologist, such as: traditional function of selection and
placement of individuals, training of employees, performance evaluation
and design of appraisal packages, fostering a work-friendly environment,
helping organisations to relate with employees in a fairly reasonable
manner, boosting morale and motivation, and building a productive
workforce.
10
Study Session 1 Introduction to Industrial Psychology
Assessment
Required
Assessment
Bibliography
Cascio, W. F., &Aguinis, H. (2011). Applied psychology in human
resource management (7th Edition). Upper Saddle River, NJ: Prentice
Hall.
DiClemente, D. F., & Hantula, D. A. (2000). John Broadus Watson, I-O

psychologist. Th e Industrial-Organizational Psychologist, 37(4), 47–55.
Koppes. L. L., & Pickren, W. (2007). Industrial and organizational

psychology: An evolving science and practice. In L. L. Koppes (Ed).,
Historical perspectives in industrial and organizational psychology.
Mahwah, NJ: Lawrence Erlbaum.
Paul, E. L. (2006).Industrial/Organisational Psychology: Understanding
the Workplace (2nded) New York: Houghton Mifflin Company.
Van De Water, T. J. (1997). Psychology‗s entrepreneurs and the marketing

of industrial psychology. Journal of Applied Psychology, 82(4), 486–499.
11
Study Session2 Research in Industrial Psychology
Study Session2
Research in Industrial
Psychology
Introduction
This Study Session will expose you to how research is carried out in
industrial psychology. It provides basic steps in undertaking research.
i. highlight the basic steps involved in the research process in industrial
psychology.
Learning Outcomes
2.1 Steps in Research in Industrial Psychology

Research in industrial psychology is hinged on science, and this makes it
replicable. In general, such investigations begin with the identification of
the problem or an observed behaviour (e.g. poor work attitude, poor
performance, or absenteeism) that constitutes a problem or catches the
research attention of the industrial psychologist. This often leads to
questions; for example, a manager might say, ―I wonder why some of my
employees can‗t get to work on time‖; an employee might say, ―I wonder if
I could assemble more parts if my chair were higher‖; or a supervisor might
say, ―I wonder which of my employees is the best to promote‖.
Once a question has been asked, the next step is to form a hypothesis—an
educated prediction about the answer to a question. This prediction is
usually based on a theory, previous research, or logic.
The next step involves a clear identification of the variables to be
investigated in the study, the instruments to measure them and the
hypotheses to be tested. A thorough review of the literature on the
identified problem makes these straightforward tasks. Typically, research
by an industrial psychologist involves three variables. These are the
independent, dependent and extraneous variables. Independent variables
are variables that are manipulated by the industrial psychologist.
Dependent variables are the outcome measure or the variable to be
explained by the industrial psychologists while extraneous variables are
factors that the industrial psychologist is not interested in but are potent
enough to confound study results. The next step is to decide how these
variables will be measured and who the study participants would be. The
rule is that instruments of measurement must be reliable and valid.
Subsequently, the researcher determines study setting. Broadly speaking,
the problem or phenomenon is either investigated in a laboratory setting
or in the natural work setting. The laboratory setting makes it more likely
for the industrial psychologist to establish a cause-effect relationship
because there is more control of confounding factors. Conversely, an
investigation in the natural work setting is more realistic because actual
11
employees are examined in a context-specific situation.

Afterwards, the researcher carries out the study. Measures of the
variables taken from study participants form study data that are later
subjected to statistical analysis. Data make no meaning until some form
of statistical techniques is applied to them. Results of statistical analysis
set the stage for the final step where you report findings in the context of
tested hypotheses, discuss what they imply and make conclusions. This
consequently informs organizational policy decisions that solve the
problem under investigation.
The purpose of the preceding discussion is to show you the complexity of

research. At times many theories may explain a particular behavior. At
other times, behavior can be predicted, but the reason for the behavior may
not be known. At still other times, we have questions but can‗t predict what
the answer will be. This complexity of life is what makes research fun.

This Study Session has focused on the process of research in industrial
psychology. We noted that research begins with an identification of the
problem, clear identification of the independent and dependent variables
Summary to be measured, instruments to measure them, participants from which
measures will be taken in the study, statistical tools to be applied to study
data, and a report on the results of the statistical analysis so carried out.
Assessment
Required
Assessment
Bibliography
Paul, E. L. (2006).Industrial/Organisational Psychology:
Understanding the Workplace (2nded) New York: Houghton
Mifflin Company.
12
Study Session3 Industrial Psychology annd the Work Environment
Study Session3
Industrial Psychology and the

Work Environment
Introduction
In this Study Session, you will examine the features of the new work
environment and the challenges they pose for industrial psychologists.
i. state five features of the new work environment.
ii. define and use correctly the following words in bold.
Learning Outcomes concepts of recruitment
selection
placement
induction
iii. present rationale for personnel decision.
3.1 The New Work Environment

The role of an industrial psychologist is even more important given far-
reaching changes in the work environment. The current new work
environment is premised on the following:
1. Greater diversity of workforce: Members of both sexes and people
from different cultures now form the cream of most organisation‗s
workforce.
2. Downsizing – organizations now employ few talented individuals
3. Stiffer competition for few talented individuals to fill organizational
positions.
4. Increased interaction between local and foreign firms.
5. Short-term rather than long-term employment.
6. Computerized office or factory and consistent introduction of hi-
technology equipment and electronic gadgets.
An obvious implication of the new work environment for industrial
psychology is that personnel selection methods will have to be more
sensitive to distinguish ―good‖ and ―bad‖ workers. This will ensure that
they add value to the organisation and increase competitive advantage.
13
3.2 Recruitment, Selection, Placement and Induction

The field of industrial psychology has peculiar concepts that you need to
understand in order to fully appreciate issues of research and practice in
the field. Study Sessions Seven to Eighteen address this concern.
The concepts of recruitment, selection, placement and induction are

erroneously used interchangeably because some people ascribe the same
meaning to them. Although the concepts are some-what linked, they do
not mean the same thing.
Recruitment is an organisational activity, which aims at encouraging
potentially qualified individuals to apply for vacant position in an
organisation. Usually this is done through job or position adverts in the
newspaper, posters, billboards, radio, company bulletin, internal memo,
and more recently in the Nigerian work environment, internet. Vacancies
can also be personally announced to an unemployed individual by current
employees of an organisation. A good recruitment method usually
generates a large pool of potentially qualified applicants.
Selection is the process of picking from the pool of potentially qualified
individuals generated by recruitment, those that are considered most
suitable for the job(s). Put simply, selection is separating the wheat from
the shaft. It helps an organisation to offer employment to applicants who
are more likely to do the job well.
Placement is the process of putting employees in positions or jobs that
they are best suited for. Consider the outcome of a situation where new
entrants into an organisation are placed in wrong positions or jobs for
which they have little or no aptitude. This misfit will result in poor
performance. Therefore placement helps to create a person-job fit that
ensures high performance in prescribed roles.
Induction provides an introduction to the working environment and the set-

up of the employee within the organisation. The process will cover the
employer and employee rights and the terms and conditions of
employment. As a priority the induction programme must cover any legal
and compliance requirements for working at the company and pay attention
to the health and safety of the new employee. Well designed induction
programmes can significantly increase socialization processes and
competency of new employees thus making them more productive in a
shorter period of time.
From the explanations given above, we can all see that the four concepts
are interwoven. In fact, they complement one another. While recruitment
calls everybody‗s attention to the vacant jobs, selection helps to identify
good individuals from those who tender their credentials for recruitment,
placement assigns employees in jobs that they are best suited for while
induction enables employee to become familiar with the modus operandi
within the organizations.
3.3 Personnel Decisions

Personnel decision is a concept that refers to choices that an organization
makes on issues of selection, placement, evaluation, promotion, training
and development of the human factor. Organisations necessarily make a
14
Study Session3 Industrial Psychology annd the Work Environment
choice because diverse options usually exist on the identified issues of

personnel. Thus, the process of choosing among the options is the crux of
what is regarded as personnel decisions.
Personnel decision is necessary because on all of the issues identified,
individuals are normally distributed. To get the best of this distribution,
management essentially attempt to choose the best option. For example, a
good personnel decision results in the selection of the most excellent
applicant from the available options for a given position in an
organization. If the organization does this for every position, then it
would have maximized manpower.
Again personnel decision is necessary because organisations want to

make profit and survive in the ever competitive market. They cannot
achieve this if decisions on hiring, placement, evaluation, promotion,
training and development of the human factor are left to chance. A
careful decision on the best means of addressing each of the personnel
issues helps to ensure organizational effectiveness.

In this Study Session, we examined four inter-related concepts of
recruitment selection placement and induction. We also note the new
challenges, which the industrial psychologists face in the new work
Summary environment .These include diversity of workforce, downsizing, stiffer
competition for talented employees, short-term rather than long-term
employment, introduction of hi-technology equipment and increased
interaction between local and foreign organizations. Lastly, we
examined personnel decision. This refers to choices that an
organization makes on issues of selection, placement, evaluation,
promotion, training, and development of the human factor. Organisations
necessarily choose among options on these issues because they wish to
make profit and remain competitive, and because individuals are normally
distributed on the identified issues.
Assessment
Required
Assessment
Bibliography
Lahey, B. B. (2004) Psychology: an introduction (8thed.) McGraw-Hill,
London
Okurame, D. E. (2006). Organisational Behaviour. In S. K. Balogun., B.
O. Ehigie.,& A. N. Sunmola (ed.) Managerial Psychology: An Overview.
Ibadan: Department of Psychology, University of Ibadan.
15
Study Session 4
Criterion
Introduction
This Study Session explains the notion of criterion and highlights its
importance in the organizational setting. It will also broaden your
knowledge of criterion by explaining the difficulties encountered in the
use of criterion.
i. define criterion.
ii. point out the problems associated with making use of
Learning Outcomes criterion in organizations.
iii distinguish between criterion contamination and criterion
deficiency
4.1 What is Criterion?

Criterion refers to measures of actual job performance that serve as an
evaluative standard for distinguishing between ―good‖ and ―bad‖
employees. The meaning of criterion will be more obvious to you if you
consider the fact that every employee who occupies a position within an
organization has a task or what he/she is expected to do. At the end of a
specified period, management assesses what each of these individuals
have been able to achieve. On the basis of this measure of actual job
performance, an employee is considered successful if targets are met
and/or surpassed (―good‖ employee) or unsuccessful if they fall short of
target (―bad‖ employee). Criterion is an indispensable concept in
organizations because it:
1. Serves as the basis for hiring and firing. Individuals cannot be hired
to fill vacant positions if an organization does not have an idea of
expected job performance. The knowledge of what successful and
unsuccessful performance for a given job is to provide management
with an idea of who to select or dismiss.
2. Aids the assessment of employees for promotion. Criterion measures
are vital features of performance evaluation which organizations use
to judge the suitability of an employee for promotion.
3. Serves as basis for training. Criterion measures help organizations to
identify training needs of employees since it can distinguish between
high and low performers.
4.2 Difficulties of Criterion

A number of difficulties stalls the effective utilization of criterion for
personnel decisions in an organization. Some of these are listed below.
1. Most jobs have diverse indicators of productivity/job-performance.
The problem is which of these is a better index of success on the
job? In a bid to incorporate all relevant indicators, the criterion is at
16
Study Session 4 Criterion
times overloaded. A good job analysis helps to a large extent in

solving this problem.
2. Difficulty in criterion measurement. Though, actual performance is
measurable for many jobs, realistic measures are difficult for a
reasonably others.
3. In practice, different relevant measures of criterion are used in most
organisations. Often, management is faced with the dilemma of
whether to consider the criterion scores independently or together.
The common practice is to use the composite score for criterion
measures to judge if an employee has been successful or not.
Although, this is a much more straightforward means of utilizing
numerous criterion scores, it tends to mask employee deficiency in
any of the indicators.
4.3 Validity of Criterion

Investigations of empirical relationships between test scores and
criterion measures (e.g., training grades, supervisor ratings, job
knowledge test scores) have long been central to the evaluation and
justification of using test scores to select and classify personnel in
both civilian and military contexts. Such investigations, commonly
known as criterion-related validity studies, seek evidence that
performance on criteria valued by an organization can be predicted
with a useful degree of accuracy from test scores or other predictor
variables. The implications of a criterion-related validity study depend
first and foremost on the validity and acceptance of the criterion
measure itself.
When assessing criterion validity, two common threats to the validity

of any criterion measure which deserve special emphasis are
(i) Criterion contamination and (ii) Criterion deficiency.
Criterion contamination occurs when the criterion measure includes

aspects of performance that are not part of the job or when the
measure is affected by ―construct-irrelevant‖ (Mercer, 2005) factors
that are not part of the criterion construct. Criterion deficiency occurs
when the criterion measure fails to include or underrepresents
important aspects of the criterion construct. Criterion must be
accepted as valid, reliable, and relevant to the goals of the Services
before they can serve as the criteria by which the validity of aptitude
tests will, in turn, be judged.

In this Study Session, you learnt that criterion is a measure of actual job
performance that serve as an evaluative standard for distinguishing
between ―good‖ and ―bad‖ employees. It is important in organizations
because it serves as a basis for hiring and firing, training and aids the
assessment of employees for promotion. You learnt that the effective
utilization of criterion for personnel decisions in organizations is hindered
by the fact that most jobs have diverse indicators of productivity/job-
17
performance; difficulty in criterion measurement; and the dilemma of
whether to consider criterion scores independently or together.
Assessment
Required
Assessment
Bibliography
Hoffman, B. J., Blair, C. A., Meriac, J. P., & Woehr, D. J. (2007).
Expanding the criterion domain? A quantitative review of the OCB
literature. Journal of Applied Psychology, 92, 555-566.
Mercer (2005). Mercer 2004/2005 Compensation Planning Survey. New

York: William M. Mercer, Inc.
Paul E. L. (2006) Industrial/Organizational Psychology: understanding
the workplace (2nd ed.) Houghton Mifflin Company, New York.
Spence, J. R., & Keeping, L. M. (2009). The impact of non-performance

information on ratings of job performance: a policy capturing approach.
Journal of Organizational Behavior, 31, 587-608.
Tett, R. P., & Burnett, D. D. (2003). A personality trait-based
interactionist model of job performance. Journal of Applied Psychology,
88, 500-517.
18
Study Session 5 Job Analysis
Study Session 5
Job Analysis
and
Evaluation This Study Session will expose you to the concept and uses of job
analysis. You will also examine methods of analyzing jobs in your course
Introduction of study.
i. define and explain the uses of job analysis.
ii. Highlight at least seven methods of job analysis.
Learning Outcomes
5.1Job Analysis
Job descriptionA Job analysis refers to the procedure utilized by organizations to examine,
comprehensive account of understand, and explain the duties of a job. The outcome of a job analysis
a job task and
responsibilities, the can be a job description, job specification, and / or job evaluation.
equipment and procedure
involved in carrying out the
Job analysis serves the following purposes in organizations.
task and what the final 1. The information obtained from job analysis affords management an
outcome of such task are.
opportunity to know the constituent parts of all jobs within an
organization.
Job 2. It serves as the basis for selection and placement of employees.
specificationThedetails of Certainly there is no way management will be able to make
individual skills, abilities
and personality required to
selections from a pool of applicants and/or place them in appropriate
effectively perform the positions if information on the task and skills required to do the job
identified task of a job. well is lacking.
3. Job analysis information helps organizations to appropriately reward
Job evaluationA employees. Thus enhancing equity perception, motivation and job
statement of the estimated satisfaction among employees.
economic and naira value
of a job.
4. It serves as the basis for criterion development and performance
evaluation.
5. It serves as the basis for informing employees of what is expected of
them and performance feedback.
6. It serves as the basis for training employees to do their jobs well.
7. It serves as a basis for resolving a number of legal disputes between
employees and their employers.
5.2 Methods of Job Analysis?

This section introduces students to some of the main methods / standard
procedures for carrying out job analysis. These include the following.
19
1. Archive: This involves the use of recorded or documented

information on a job of interest.
2. Observation: This method involves obtaining relevant information
about a job by watching the task and duties carried out by
individuals who are currently on the job.
3. Work participation: It is a variant of the observation procedure. In
this instance, relevant job information is obtained by partaking in the
task and duties of the job being examined.
4. Electronic procedure: This involves the use of electronic gadgets
to record the tasks and duties of individuals as they perform the
routine of their job. Content analysis of the information gathered
through this method serve useful purposes.
5. Check list: This technique requires that an adequate number of
statements reflecting possible tasks, duties and responsibility of a
job be generated. The list is thereafter given to job incumbents for
them to check-off those that are true of their job routine.
6. Work diary: This procedure requires a job incumbent to make an
entry of their task and job activities in a dairy.
7. Interview: In this case, information is elicited from job incumbents,
individuals with previous job experience and professionals in a
particularly relevant field.
8. Questionnaire: This is a survey method that asks questions about
the features and dimensions of a job. Responses of employees to the
questionnaire items form the basis for understanding a job. Standard
examples of this technique are the common-metric and the position
analysis questionnaires.
5.3 Job Evaluation

Once a job analysis has been completed and a thorough job description
written, it is important to determine how much employees in a position
should be paid. This process of determining a job‗s worth is called job
evaluation. A job evaluation is typically done in two stages:
determining internal pay equity and determining external pay equity.
Determining Internal Pay Equity

Internal pay equity involves comparing jobs within an organization to
ensure that the people in jobs worth the most money are paid
accordingly. The first step in evaluating a job is to decide what factors
differentiate the relative worth of jobs. Such factors may include
Level of responsibility
Physical demands
Mental demands
Education requirements
Training and experience requirements
Working conditions
The choice of compensable factors is however often more subjective

than empirical.
20
Study Session 5 Job Analysis
Determining External Pay Equity

With external equity, the worth of a job is determined by comparing the
job to the external market (other organizations). External equity is
important if an organization is to attract and retain employees. In other
words, it must be competitive with the compensation plans of other
organizations. That is, a fast food restaurant that pays cooks N500 an
hour will probably have trouble hiring and keeping high-caliber
employees if other fast-food restaurants in the area pay N 1000 an hour.
To determine external equity, organizations use salary surveys. Sent to

other organizations, these surveys ask how much an organization pays
its employees in various positions. An organization can either construct
and send out its own survey or use the results of surveys conducted by
trade groups, an option that many organizations choose. On the basis of
the survey results, an organization can decide where it wants to be in
relation to the compensation policies of other organizations (often called
market position). That is, an organization might choose to offer
compensation at higher levels to attract the best applicants as well as
keep current employees from going to other organizations. Other
organizations might choose to pay at the ―going rate‖ so that they have a
reasonable chance of competing for applicants, even though they will
often lose the best applicants to higher-paying organizations. Market
position is most important in a good economy where jobs are plentiful
and applicants have several job options.
Each of the identified methods of job analysis has advantages and

disadvantages. Identify these advantages and disadvantages. Which of
these methods will you ascribe to be the best? Post your response on
Study Session Five Forum Page of course website.
Discussion Activity
See course calendar for schedule date of submission

In this Study Session, eight techniques of job analysis were identified and
explained. These are archival, observation, work participation, electronic
checklist, work dairy, interview and questionnaire. You also learnt that
Summary job analysis is a concept that refers to the procedure utilized by
organizations to examine, understand and explain the duties of a job. Job
description, job specification, and job evaluation are possible outcomes of
job analysis. You also learnt that the process of determining a job‗s worth
is called job evaluation. A job evaluation is typically done in two stages:
determining internal pay equity and determining external pay equity.
21
Assessment
Required
Assessment
Bibliography
Aguinis, H., Mazurkiewicz, M. D., &Heggestad, E. D. (2009). Using
web-based frame-of reference training to decrease biases in personality-
based job analysis: An experimental field study. Personnel Psychology,
62, 405-438.
Campion, M. A., Fink, A. A., Ruggeberg, B. J., Carr, L., Phillips, G. M.,
&Odman, R. B. (2011). Doing competencies well: Best practices in
competency modeling. Personnel Psychology, 64, 225-262.
the workplace (2nded) New York: Houghton Mifflin Company.
22
Study Session 6 Selection Instrument and Process
Study Session 6
Selection Instrument and

Process
Introduction
In this Study Session, you will explore the concept of instrument utility to
students. You will also clarify the process of selection in an organisation.
i. explain the utility of a selection instrument and the factors that
influence it.
ii. highlight four models for selection when multiple instruments are
Learning Outcomes
involved in a selection process.
iii. outline the chain of events involved in the selection process.
6.1 Utility of Selection Instrument

New entrants into an organization are usually chosen based on their
performance on a selection instrument. Selection instruments are known
as predictors. A predictor is an instrument used to estimate the likelihood
that an applicant will exhibit high-quality performance if employed to do
a job. Psychological tests are examples of instruments used by industrial
psychologists as predictors. Some of such instruments are available in the
human laboratory of the Department of Psychology, University of Ibadan.
The need for a selection instrument is better appreciated if you consider a
situation where an advertisement for just ten vacant positions generated
over three thousand applications. Imagine too that there are no
instruments for identifying potentially good employees. The chances are
that hiring decisions will be subjective and almost always ineffective.
However, hiring decisions become more effective when they are based on
a useful selection instrument. A useful selection instrument has utility.
The utility of a selection instrument is the extent to which it is apt to
distinguish potentially good employees from the potentially bad ones, and
the degree to which the quality of individuals hired gets better by its use.
A number of factors affect the utility of a selection instrument. These are:
1. Psychometric properties: These include the reliability and
validity of the instrument.
2. Base rate: The proportion of hired employees who were ultimately
successful on the job.
3. Selection ratio: The number of applicants‗ vis-à-vis the number of
job opening.
23
6.2 Models for Selection with Multiple Instruments

This section explains some models for selection when multiple
instruments are involved in a selection process.
1. The profile matching model. This is based on the assumption that
good applicants are those whose attributes and skills match the
profile of employees who have been successful on the job. Usually
important attributes and skills of successful employees in a
particular job are identified and graphically profiled to serve as the
standard profile. Measures of the attributes and skills obtained
through different instruments from applicants are then compared to
the standard.
2. The regression model. This is based on the assumption that
attributes and skills are compensatory. Accordingly, much of an
attribute makes up for little of another. As a result, the combine
score or overall performance on the selection instruments is used as
the cut-off mark for hiring. An applicant‗s score on each attribute is
usually arrived at with reference to the weight assigned to such
attribute.
3. The cut-off model. This is based on the assumption that a minimum
level exist for every performance relevant attribute. As such, a great
deal of an attribute does not compensate for a little of another.
Accordingly, the individual to be selected is that who meets the cut-
off point for all selection instruments.
4. The multiple-hurdle model. This involves dividing the selection
process into stages, specifying attributes or skills to be assessed in
each stage and the minimum score required for an applicant to move
from one stage to another. An application must scale the first stage
hurdle (i.e. cut-off or minimum score for the stage) before moving to
the second, and so on.
6.3 Selection Process

A typical selection process involves six sequences of events. These are:
1. Job analysis. This provides job relevant information that informs
the choice of selection instrument and applicants to be hired.
2. Choosing among alternative instruments and criterion. Here a
choice is made between the varieties of testing instruments
(predictor) that may be available. Similarly, this step involves the
selection of a good indicator of success or failure on the job.
Selection decision is based on the nature of relationship that exists
between the predictor and criterion.
3. Relating measures on criterion and Predictor. Measures on the
chosen predictor and criterion are obtained. Thereafter, the nature of
relationship that exists between the two measures is ascertained. The
outcome of this gives an indication of the instruments‗ validity and
the cut-off line for selection.
4. Determining the utility of selection instrument(s). This is done by
establishing the selection ratio and base rate (refer to lesson
thirteen). The outcome of these justifies the use of a selection
instrument.
24
Study Session 6 Selection Instrument and Process
5. Re-examination. Selection instruments need to be re-evaluated

every once in a while to ensure that they remain effective. This is
particularly important because organizational, societal and
individual circumstances are dynamic. A good selection instrument
at one point may therefore be bad at any period.
6. Actual selection. This actual selection process basically involves six
events. These are:
i. Preliminary screening of applicants to eliminate those who
clearly lack the basic requirements for consideration.
ii. Application forms/blanks. These are usually forms designed by
organisations to elicit personal, demographic and job requirement
information on applicants.
iii. Selection testing. Applicants are made to take a number of
employment tests. The performance of an applicant on the tests
forms the objective basis for selection. These range from
personality, intelligence, aptitude to job performance tests.
iv. References. At this stage, individual whose names have been
submitted by an applicant as referees are contacted. They are
required to comment on an applicants‗ suitability for the position,
and/or corroborate claims made by an applicant in application
blanks.
v. Selection interview. Applicants are invited for a face-to-face or
telephone interview. This affords an opportunity for the
interviewer (s) and the interviewee to find out more about each
other, about the job and to reconcile facts.
vi. Medical examination. This is typically the last event. It is aimed
at finding out if an applicant meets the medical standard for the
job. Applicants who are medically fit are afterward hired.

In the first section of this Study Session, we learnt that selection
instruments are known as predictors. A predictor was defined as an
instrument used to estimate the likelihood that an applicant will exhibit
high-quality performance if employed to do a job. The utility of a
Summary selection instrument was also defined as the extent to which it is apt to
distinguish potentially good employees from the potentially bad ones, and
the degree to which the quality of individuals hired gets better by its use.
Instrument utility is affected by factors such as psychometric properties
and relevance of instrument, base rate and selection ratio.In the second
section, we identified four models for selection when multiple
instruments are involved in the hiring process. These are the profile
matching, regression, multiple cut-off and multiple hurdle models.
Lastly, we noted that the selection process has six basic stages. These are
Job analysis, choosing among alternative instruments and criterion,
relating measures on criterion and predictor, determining the utility of
selection instrument(s), re-examination, and actual selection.
25
Assessment
Required
Assessment
Bibliography
Boudreau, J. W, Ramstad, P. M. (2003) Strategic industrial and
organsational psychology and the role of utility analysis models. In
Borman, W. C., D. R. Ilgen, and R. Klimoski (Eds.), Handbook of
psychology: Vol. 12. Industrial and organizational psychology New
York: Wiley.Lahey, B. B. (2004) Psychology: an introduction (8th ed.)
McGraw-Hill, London
Lievens, F., & Patterson, F. (2011). The validity and incremental validity
of knowledge tests, low-fidelity simulations, and high-fidelity simulations
for predicting job performance in advanced-level high-stakes selection.
Journal of Applied Psychology. Advance online publication. doi:
10.1037/a0023496
the workplace (2nded) Houghton Mifflin Company, New York.
Robbins, P. S. (1995). Organisational Behaviour: Concepts,
Controversies, and Applications (6thEd.) Prentice-Hall Inc., Englewood
Cliffs, N.J., USA.
26
Study Session 7 Training Approaches and Process
Study Session 7
Training Approaches and

Process
Introduction
This Study Session will expose you to the approaches and process of
training in organizations. In the process, you will examine the steps
involved in arranging training in an organization
i. present ways in which training can be provided in an organisation.
ii. outline the basic sequences of events in training process.
Learning Outcomes iii. evaluate training effectiveness
7.1 Approaches to Training

Training is the ―systematic acquisition of skills, rules, concepts, or
attitudes that result in improved performance‖ (Goldstein & Ford, 2002).
There are two major approaches to training:
 off-the-job training, and
 on-the-job.
Off-the-job training: Usually this involves taking employees away from
their duty post to another setting where they interact with invited experts
who teach new skills and keep them informed about their jobs. Training
centers established by organisations outside their immediate locations
serve the purpose of off-the-job training. Off-the-job training also
encompasses sending employees out for qualification-bearing courses in
universities, lectures and workshops. Off-the-job training has the
advantage of increased concentration by trainees and a high potential for
learning since it is devoid of workplace distractions. Disadvantages of
this approach include excessive cost and loss of man-hour while training
last.
On-the-job training: This involves teaching skills and impacting
knowledge as employees carry out their day to day job activities. Unlike
the off-the-job training, employees within the organisation usually serve
as trainers. On-the-job training has the advantage of reduced training cost
and training by individuals with practical experience of the job and
organization. Disadvantages of this approach include disruption work
activity and work hazard.
A typical example of an on-the-job training technique is mentoring.
Mentoring is a grooming relationship that involves a mentor and a
protégé. Protégés are the younger and less experienced partner in the
relationship while mentors are frequently older and more practiced
27
compared to their protégés. The relationship can be formal or informal.
While informal mentoring develops spontaneously, formal mentoring

relationships are formed through a planned matching of mentors and
protégés by organisations. Mentoring is embraced because of its many
benefits to employees and their organisation. These benefits include:
1. It affords employee a clear understanding of their roles.
2. It allows employees to make productive use of their knowledge.
3. It ensures the transfer of skills which mentees can apply in diverse
professional circumstances thereby ensuring career success, career
growth, salary increases and promotions.
4. It helps to create a pool of well groomed members of staff in an
organisation‗s succession pipeline.
5. It fosters a network of good interactions that enhance satisfaction with
work activity, foster peace and harmony among employees in an
organization.
However, mentoring is not all bed of roses. It is associated with a number of
problems. These are mutual exploitation, interpersonal conflict, and real or
imagined sexual entanglement. Mentors reputation may be hurt by frequent
sponsorship of protégé, it can encourage favouritism, and the displacement
of mentor by protégé may spark off crisis.
Other methods of on-the-job training techniques include
Learning by Modeling Others: This is also called social learning, modeling is a
vitally important method of learning for training in organizations. As the name
implies, employees learn by watching how other employees perform, or model, a
behavior.
Learning through Job Rotation: Job rotation is a process in which an employee
performs several different jobs within an organization. Job rotation is especially
popular for managerial training because it allows a manager trainee to experience
and understand most, if not all, of the jobs within the organization that his
subordinates will perform.
Learning through Apprentice Training: Apprentice training is typically found
in crafts and trades. With apprentice training, an individual usually takes several
hours of formal class work each year and works with an expert for several years
to learn a particular trade and perhaps become eligible to join a trade union.
7.2 The Training Process

. The training process involves six sequences of events. These are:
1. Identification of training needs: Training is necessarily provided to
address shortfalls in employee skills and update job relevant knowledge. A
training needs assessment makes it possible for this purpose to be
achieved. Needs assessment can be done at the level of the organisation,
individual, task or workforce.
2. Identification of trainees and training objectives: Employees who will
benefit most from the training are identified and organised for the
training. Further, the objective of the training programme is spelt out.
3. Design of training content: The issues, topics and substance of the
training are determined. This is done within the context of identified
trainee needs and training objectives.
4. Determination of training method/trainer: A suitable training method
28
Study Session 7 Training Approaches and Process
and trainers that will ensure the attainment of training objective are
chosen.
5. Implementation of training: This stage involves putting the training
plan into action. It is an equally important part of the training process.
Training cannot be effective if it is well thought out but poorly executed.
6. Evaluation of training: Training is effective if the desired change in
employee work behaviour is achieved. An assessment of training outcome
especially within the context of stated training objectives gives an
indication of the effectiveness of a training programme. Evaluation of
training helps to identify lapses that can be targeted for correction in
future training exercise.
7.3 Evaluation of Training Effectiveness

There are many ways to evaluate the effectiveness of a training program, and
two factors differentiate the various methods. The first involves practicality, and
the second is concerned with experimental rigor. Although scientifically
rigorous research designs are preferred, their use is not always possible. Yet a
practical research design without scientific rigor yields little confidence in
research findings. The most simple and practical of research designs implements
a training program and then determines whether significant change is seen in
performance of job knowledge. To use this method, performance or job
knowledge must be measured twice. The first measurement, a pretest, is taken
before the implementation of training. The second measurement, a posttest, is
taken after the training program is complete. A diagram of this simple pretest–
posttest design is as follows:
Pre tes t → T rai ni ng →
Postt est
Although this method is fairly simple, its findings are difficult to interpret
because there is no control group against which the results can be compared.
That is, suppose a significant difference in performance is seen between the
pretest and the posttest. If a training program has occurred between the two tests,
it would be tempting to credit the training for the increase. The increase,
however, may have resulted from other factors, such as changes in machinery, in
motivation caused by non-training factors, or in managerial style or philosophy.
Likewise, suppose no significant increase in performance is observed between
pretest and posttest. The natural conclusion might be that the training program
did not work. Without a control group, that interpretation is not necessarily
correct. The same changes noted above for an increase may have caused a
decrease in performance in this second case. Thus, it is possible that the training
which resulted in no net gain in performance from training. To overcome these
problems, a control group should be used (Kearns, 2001).
For training purposes, a control group consists of employees who will be tested
and treated in the same manner as the experimental group, except that they will
not receive training. The control group will be subject to the same policy,
machinery, and economic conditions as the employees in the experimental group
who receive training. The diagram for a pretest/posttest control group design
looks like this:
Experimental group: Pretest → Training→ Posttest

Control group: Pretest → Posttest
The big advantage this second design has is that it allows a researcher to look
29
at the
PSY292 Industrial and Personnel training effect after
Psychology controlling for outside factors.
30
Study Session 8 Performance Evaluation, Training and Methods

In this Study Session, two approaches to training were identified. These
are off-the-job and on-the-job training approaches. Off-the-job training
involves taking employees away from their duty post to another setting
where they interact with content. On-the-job training involves teaching
Summary skills and impacting knowledge as employees carry out their day-to-day
job activities. You also learnt that a typical training process involves six
events. These are identification of training needs, identification of
trainees and training objectives, design of training content, determination
of training method/trainer, implementation of training and evaluation of
training.
Assessment
Required
Assessment
Bibliography
Burke, R. J., C. A. Mckeen and C. McKenna. 1994. ‗Benefits of
mentoring in organizations: The mentor’s perspective’, Journal of
Managerial Psychology, 9(3): 23 – 32.
Byars, L. L. & Rue, L. W. (2000) Human Resource Management (6th
edition) London: Irwin McGraw-Hill.
Kearns, P. (2001). Establish a baseline. Training, 38(6), 80.
Ragins, B. R. and J. L. Cotton. (1999). ‗Mentor functions and outcomes:
A comparison of men and women in formal and informal mentoring
relationships’, Journal of Applied Psychology, 84 (4): 529 – 550.
Okurame, D. E.and S. K. Balogun. (2005). ‗Role of Informal Mentoring
in the Career Success of First-line Bank Managers: a Nigerian case
study‗, Career Development International, 10 (6/7): 512 – 521.
the workplace (2nded) Houghton Mifflin Company, New York.
Okurame, D. E. (2007). ‗Perceived mentoring functions: Does mentor‗s
gender matter?‗, Women in Management Review, 22 (5): 418 – 427.
31
Study Session 8
Performance Evaluation,
Training and Methods
Introduction
The field of industrial psychology pays particular attention to the
concepts of performance evaluation and training because they have
implications for productivity. Therefore, in this Study Session, you will
explore these concepts and the functions each of the concepts performs in
organisations. You will also examine the methods of performance
evaluation in organisations.
i. highlight the functions performance evaluation in organisations.
ii. highlight ways of evaluating performance in an organisation.
Learning Outcomes
8.1 Performance Evaluation and Training

Performance evaluation refers to all attempts by an organization to
assess whether or not an employee has performed his or her duties up to
the expectations of his or her position. It is a comparison of the actual
performance of an employee in a given period to that which the
organization anticipates in the same period. Performance evaluation is
important in the life of an organisation because of some reasons given
below:
1. The information helps organisations to appropriately reward
employees.
2. It serves as the basis for employee feedback on performance.
3. It serves as the basis for promotion.
4. It serves as the basis for training.
5. It serves as a basis for motivating employees to high performance
Training refers to all efforts made by an organisation to ensure that new
and old employees have required skills and knowledge to executive their
duties effectively. Employees can be trained at their duty posts (i.e. on-
the-job training) or at a location outside their immediate work setting (i.e.
off-the-job training). Training serves the following purposes in
organization:
1. It helps an organisation to equip employees with skills to do their
job well
2. It facilitates the introduction of new technology and work procedure
in an organization.
3. It helps to motivate employees.
32
8.2 Performance Evaluation Methods

Performance evaluation can be carried out in diverse ways. Six of these
methods are:
1. Multi-rater assessment or 360 degree feedback. This technique
involves assessment by people with which an employee to be
assessed makes significant contact. They usually include superiors,
juniors, customers, peers and the employee concerned.
2. Work standard technique. This involves setting goals for
employees to meet. The goals set for an employee is considered as
the standard against which his or her is judged.
3. Essay appraisal. This method involves the appointment of an
evaluator who is asked to describe the performance of an employee
using a narrative format. The evaluator is usually provided with
issues or topics that guide his or her assessment.
4. Forced-choice rating. This procedure requires an evaluator to rank
a number of statements that describes how an employee has carried
out his or her duties. Each of the statements is usually assigned
weights that are not made known to the evaluator.
5. Graphic rating scale. This rate an employee on factors considered
relevant to performance. Such factors include quality of work,
quantity of work, job knowledge and so on.
6. Critical incidents method. This involves keeping a record of
favourable and unfavourable job related behaviour of employees‗
overtime. The information so gathered forms the basis for evaluating
the performance of an employee by an evaluator.
8.3 Rating Errors

While making performance ratings, the rater must be careful not to make
common rating errors involving distribution, halo, recency, proximity,
and contrast.
Halo Errors: A halo error occurs when a rater allows either a single
attribute or an overall impression of an individual to affect the ratings
that she makes on each relevant job dimension.
Recency Effect: Research has demonstrated that recent behaviors are
given more weight in the performance evaluation than behaviors that
occurred during the first few months of the evaluation period. Such an
effect penalizes workers who performed well during most of the period
but tailed off toward the end, and it rewards workers who saved their
best work until just before the evaluation.
Proximity Errors: Proximity errors occur when a rating made on one
dimension affects the rating made on the dimension that immediately
follows it on the rating scale. For example, a supervisor gives an
dimension is physically located on the rating form next to the first, there
is a tendency to provide the same rating on both the first and second
dimensions.
Contrast Errors: The performance rating one person receives can be
influenced by the perception of the performance of a previously
evaluated person
Distribution Errors: A common type of error in evaluating employee
33
performance involves the distribution of ratings on a rating scale; such
errors are known as distribution errors. Distribution errors are made
when a rater uses only one part of a rating scale. For example, on a five-
point scale, a supervisor might feel that achieving 4 out of 5 is not
feasible and therefore rates all of her employees based on a scale of 1 to
3. Distribution errors could occur due to leniency errors or strictness
errors. The example given is a strictness error

In this Study Session, you have learnt the meaning of performance
evaluation and training. Performance evaluation was explained as all
attempts by an organization to assess whether or not an employee has
Summary performed his or her duties up to the expectations of their position while
training is all efforts to ensure that new and old employees have required
skills and knowledge to do their job even better. You also learnt that
performance evaluation can be carried out in diverse ways. Six of such
methods of performance evaluation are: the multi-rater assessment or 360
degree feedback, work standards, essay appraisal, forced-choice rating,
graphic rating scale and the employee paired comparison method.
34
Assessment
Required
Assessment
Bibliography
Byars, L. L. & Rue, L. W. (2000) Human Resource Management (6th
edition) Irwin McGraw-Hill. London
Spence, J. R., & Keeping, L. M. (2009). The impact of non-performance
information on ratings of job performance: a policy capturing approach.
Journal of Organizational Behavior, 31, 587-608.
33
Study Session 9 Employee Motivation
Study Session 9
Employee Motivation
Introduction
Once an organization has selected and trained its employees, it is
important that employees be both motivated by and satisfied with their
jobs. Industrial psychologists generally define work motivation as the
internal force that drives a worker to action as well as the external factors
that encourage that action (Locke & Latham, 2002). Ability and skill
determine whether a worker can do the job, but motivation determines
whether the worker will do it properly. Although actually testing the
relationship between motivation and performance is difficult,
psychologists generally agree that increased worker motivation results in
increased job performance.
Learning Outcomes i. define motivation and distinguish between its types.
ii. apply theories of motivation in the organizational settings.
9.1 Intrinsic vs Extrinsic Motivation

A simple definition of motivation is the ability to change behaviour. It is a
drive that compels one to act because human behaviour is directed toward
some goal. Motivation is intrinsic (internal) or extrinsic (external)
Intrinsic motivation is defined as the act of engaging in an activity for its

inherent satisfaction, rather than for some outward and separable out-
comes resulting in an external reward or recognition.
Extrinsic motivation is defined as engaging in an activity because it leads

to a separable outcome in form of rewards earned from performing a task
rather than actual enjoyment of the task.
When people are intrinsically motivated, they will seek to perform well
because they either enjoy performing the actual tasks or enjoy the
challenge of successfully completing the task. When they are extrinsically
motivated, they don‘t particularly enjoy the tasks but are motivated to
perform well to receive some type of reward or to avoid negative
consequences (Deci & Ryan, 1985). People who are intrinsically
motivated don‘t need external rewards such as pay or praise. In fact, being
paid for something they enjoy may reduce their satisfaction and intrinsic
motivation.
9.2 Theories of Motivation

NEED THEORIES
Maslow's Need Hierarchy Theory
Maslow's hierarchy of needs is a theory in psychology, proposed
by Abraham Maslow, (a professor at Brandeis University and a
practicing psychologist) in his 1943 paper A Theory of Human
Motivation, which he subsequently extended to include his
observations of humans' innate curiosity. He identified a set of
needs that he prioritized into a hierarchy based on two
conclusions:
1. Human needs are either of an attraction/desire nature or of an
avoidance nature.
2. Because humans are "wanting" beings, when one desire is
satisfied, another desire will take its place.
The five levels of needs are the following:

● Physiological: These are basic physical comfort or bodily needs:
food, sex, drink and sleep. In the workplace, these needs translate
into a safe, ergonomically designed work environment with
appropriate base salary compensation.
● Security/safety: People want to feel safe, secure, and free from
fear.
They need stability, structure, and order. In the workplace, job
security and fringe benefits, along with an environment free of
violence, fills these needs.
● Belongingness and love: This is a need for friends, family, and
intimacy—for social acceptance and affection from one's peers. In
the workplace, this need is satisfied by participation in work
groups with good relationships among co-workers and between
workers and managers.
● Esteem: People want the esteem of others and they want to be
regarded as useful, competent, and important. People also desire
self-esteem and need a good self image. In the workplace,
increased responsibility, high status, and recognition for
contributions satisfy these needs.
● Self-actualization: This highest motivation level involves
people striving to actualize their full potential, to become more of
what they are capable of being. They seek to attain self-
fulfillment. In the workplace, people satisfy this need by being
creative, receiving training, or accepting challenging assignments.
Focusing on the needs of retraining for growth and challenge as

well as rewards and recognition is important to the quality of work
life. Managers can affect the physical, social, and psychological
environment in the workplace, and they have a responsibility to
help employees fulfill their needs.
ERG Theory
ERG Theory In his work, Clayton Alderfer expanded on Maslow's
hierarchical theory. He proposed three need categories and
suggested that movement between the need levels is not
necessarily straightforward. Failure to meet a higher-order need
could cause an individual to regress to a lower order need. These
ERG theory categories are:
● Existence needs: Needs for physical well-being
● Relatedness needs: Needs for satisfactory relationships with
others
● Growth needs: The development of human potential and the
desire for personal growth and increased competence (Daft, 1997).
Motivation-Hygiene Theory
Frederick Herzberg, a professor of psychology at Case Western
Reserve University, studied the attitudes of workers toward their
jobs. Herzberg proposed that an individual will be moved to action
based on the desire to avoid deprivation. However, this motivation
does not provide positive satisfaction because it does not provide a
sense of growth. Herzberg's research found that positive job
attitudes were associated with a feeling of psychological
PROCESS THEORIES
Process theories help to explain how individuals select particular
behaviours and how individuals determine if these behaviours
meet their needs. Because these theories involve rational selection,
concepts of cognition are employed.
Cognition, according to Petri (1996), "is generally used to describe
those intellectual or perceptual processes occurring within us
when we analyze and interpret both the world around us and our
own thoughts and actions.
Expectancy Theory
Victor Vroom developed the expectancy theory, which suggests
that individuals' expectations about their ability to accomplish
something will affect their success in accomplishing it. Therefore,
this theory is based on cognition—on thought processes that
individuals use. The expectancy theory is based on an individual's
effort and performance, as well as the desirability of outcomes
associated with high performance. The value of or preference for a
particular outcome is called valence. To determine valence, people
will ask themselves whether or not they can accomplish a goal,
how important is the goal to them (in the immediate as well as the
long term), and what course of action will provide the greatest
reward. An individual's expectation of actually achieving the
outcome is crucial to success, and many factors influence this. The
expectancy theory can be applied through incentive systems that
identify desired outcomes and give all workers the same
opportunities to achieve rewards, such as stock ownership or other
recognition for achievement
Equity Theory
The equity theory focuses on individuals' perceptions of how fairly
they are treated in comparison to others. It was developed by J.
Stacy Adams, who found that equity exists when people consider
their compensation equal to the compensation of others who
perform similar work. People judge equity by comparing inputs
(such as education, experience, effort, and ability) to outputs (such
as pay, recognition, benefits, and promotion). When the ratio is
out of balance, inequity occurs. And inequitable pay can create an

impossible situation when implementing salary and incentive
systems. According to Daft (1997), Individuals will work to
reduce perceived inequity by doing the following:
● Change inputs: Examples include increasing or reducing effort.
● Change outcomes: Examples include requesting a salary
increase or improved working conditions.
● Distort perceptions: This occurs when individuals cannot
change their inputs or outcomes; one example is artificially
increasing the importance of awards.
● Leave the job: Individuals might do this rather than experience
what they perceive to be continued inequity. When administering
compensation and incentive programs, managers must be careful
to assure that the rewards are equitable; if programs are not
perceived as equitable, then they will not contribute to employee
motivation.
REINFORCEMENT THEORIES
Theories of reinforcement are based not on need but on the
relationship between behaviour and its consequences. In the
workplace, these theories can be applied to change or modify on-
the-job behaviour through rewards and punishments. B.F. Skinner,
a professor at Harvard, was a highly controversial behavioural
psychologist known for his work in operant conditioning and
behaviour modification. His reinforcement theories take into
consideration both motivation and the environment, focusing on
stimulus and response relationships. Through his research, Skinner
noted that a stimulus will initiate behaviour; thus, the stimulus is
an antecedent to behaviour. The behaviour will generate a result;
therefore, results are consequences of behaviour.
According to McCoy (1992), "The quality of the results will be
directly related to the quality and timeliness of the antecedent. The
more specific the antecedent is and the closer in time it is to the
behaviour, the greater will be its effect on the behaviour. The
consequences provide feedback to the individual". If the results
are considered positive, then the behaviour is positively
reinforced. When the behaviour is positively reinforced, the
individual is more

In this Study Session, you have learnt that moti vation is a drive that
compels one to act because human behaviour is directed toward some goal.
Motivation is intrinsic (internal) or extrinsic (external). The theories of
Summary motivation are also classified as Needs Theories (e.g. Maslow‘s Needs
theory), Process Theories (e.g. Expectancy Theory) or Reinforcement
Theories (e.g. operant conditioning).
Study Session 10 Organizational Restructuring
Assessment
Required
Assessment
Bibliography
Lindner, J.R., (1998) Understanding Employee Motivation, Journal of
Extension, 36 (3), 41-53
McCoy, Thomas J. (1992). Compensation and Motivation: Maximizing

Employee Performance with Behaviour-Based Incentive Plans.
AMACOM, a division of American Management Association, New York,
Quick, Thomas L. (1985). The Manager’s Motivation Desk Book. Wiley,

New York.
Robbins, Stephen P.; Judge, Timothy A. (2007), Essentials of

Organizational Behavior (9 ed.), Upper Saddle River, NJ: Prentice Hall.
Study Session 10
Organizational Restructuring
Introduction
You learned about increasing an individual employee‘s skills through
motivation in Chapter 9. In this chapter, you will learn about organization
development—the process of improving organizational performance by
making organization-wide, rather than individual, changes (Burke, 2008).
Though there are many aspects to organization development, this chapter
will focus on two major issues: managing change and downsizing.
Learning Outcomes i. understand the need for organizational restructuring
ii. identify factors that influence employee acceptance of change
iii. manage the impact of downsizing
9.1 Managing Change

Sacred Cow Hunts
Perhaps the first step toward organizational change is what Kriegel and
Brandt (1996) called a sacred cow hunt. Organizational sacred cows are
practices that have been around for a long time and invisibly reduce
productivity. A sacred cow hunt, then, is an organization-wide attempt to
get rid of practices that serve no useful purpose. In a sacred cow hunt, an
organization looks at all of its practices and policies and asks questions
like these:
• Why are we doing it? Does it add value, quality, service, or
productivity?
• What if it didn‘t exist?
• Is it already being done by someone else?
• How and when did we start doing this?
• Can it be done better by another person, department, or company?
According to Kriegel and Brandt, common types of sacred cows include

the paper cow, the meeting cow, and the speed cow.
Paper cows are unnecessary paperwork—usually forms and reports that
cost organizations money to prepare, distribute, and read.
Meeting cows describe wasted resources, time and efforts in calling for
unproductive meeting. Think about meetings you have attended recently.
How much meeting time was spent doing business as opposed to
socializing? Was the meeting really necessary? To reduce the number and
length of meetings, some organizations ask the person calling the meeting
to determine the cost of the meeting and consider whether the cost will
exceed the potential benefits.
Speed cows describe unnecessary deadlines which are another source for
potential change. Requiring work to be done ―by tomorrow‖ is sometimes
necessary. However, unnecessary deadlines cause employees to work at a
faster than optimal pace, resulting in decreased quality, increased stress,
and increased health problems.
9.2 Employee Acceptance of Change

Though change can be beneficial to organizations, employees are often
initially reluctant to change. This reluctance is understandable, as
employees are comfortable doing things the old way. They may fear that
change will result in less favorable working conditions and economic
outcomes than what they are used to. It is common for employees
undergoing change to feel out of control and as if they are losing their
identity. The extent to which employees readily accept and handle
change is dependent on a number of factors which include;
The Type of Change: Organization change may be evolutionary or

revolutionary. The vast majority of change is evolutionary, that is the
continual process of upgrading or improving processes. Revolutionary
change is a real jolt to the system that drastically changes the way things
are done. Clearly, revolutionary change is more difficult than is
evolutionary change.
The Reason behind the Change: Employee acceptance of change is

often a function of the reason behind the change.
The Person Making the Change: Another factor affecting employee

acceptance of change is the person making or suggesting the change.
Changes proposed by leaders who are well liked and respected and who
have a history of success are more likely to be accepted than changes
proposed by leaders whose motives are suspect
The Way Change is implemented: Another important factor in

employee acceptance of change is the way the change is implemented.
That is, how and when will details be communicated? How long will the
implementation take? Does the organization have the right personnel for
the change? What types of training needs does the organization have?
9.3 Downsizing
When organizations restructure, the result may lead to a need to decrease
in the size of their workforce. These reductions in force are the result of
a variety of factors, including economic difficulties, pressure by
stockholders for quick profits, mergers, new technology replacing
humans. There is need for managers to reduce the impact of downsizing
on both the organization and the employees to be laid.
Signs of Problems
Short of a catastrophe, organizations usually have some warning that
there may be an impending need to downsize. Steps taken at this stage
can greatly reduce the need for, or size of, future downsizing (Cascio,
2002).
i. A strategy taken by many organizations at this stage is to freeze
the hiring of new permanent employees and, if necessary, use
temporary employees (temps) or outsource duties
ii. In the event that there is an impending need to downsize in the
near future, employees can be encouraged to change careers and
then help these employees learn the skills needed to make the
career change.
iii. Another strategy for reducing the need for layoffs is to offer
early retirement packages. The idea here is to make it financially
worthwhile for an employee to retire earlier than planned.
iv. Another option is to ask employees to take pay cuts or defer

salary increases.
Selecting the Employees to Be Laid Off

Should the above measures not be sufficient and a layoff becomes
necessary, the next step is to choose which employees will leave the
organization. Criteria used to make this decision might include seniority,
performance, salary level, and organizational need. To reduce the
chances of legal problems, the committee deciding which employees
will leave should be diverse in terms of race, sex, and age. The
committee‘s decisions should be analyzed to determine potential adverse
impact against protected classes (e.g., race, sex) or intentional
discrimination against older workers.
The Announcement
The way in which the layoff is announced can affect the success of
future programs designed to help employees. Layoff announcements are
best done in person. Some organizations opt for a general
announcement, whereas others prefer that supervisors notify their
employees on a one-to-one basis. At this time, it is essential that
employees receive concrete information. A mistake made by many
organizations is to announce a downsizing but not to have answers to the
hundreds of employee questions and concerns that are bound to follow.
Employees need answers to questions like these:
• Why are the layoffs needed?
• Isn‘t there any alternative?
• When will the layoffs take place?
• Who will be laid off?
• What type of financial assistance will be available?
• Will we get help writing our résumés?
• How will this affect my pension?
When answers to employees‘ questions are not available, employees
become anxious, angry, and resentful and tend to develop their own
answers (rumors).
Outplacement Programs
To help layoff victims move on with their lives, many organizations
have some type of outplacement program (Juergens, 2001). These
programs typically include providing recommendation letters, emotional
counseling, financial counseling, career assessment and guidance, and
job search training.

In this Study Session, you have learnt that managing change is an
important aspect of organizational restructuring, and that employee
acceptance of change is dependent on various factors. You also learnt that
Summary downsizing is sometimes an inevitable event in organizational restructuring
and there is need for managers to reduce the impact of downsizing on both
the organization and the employees to be laid.
Assessment
Required
Assessment
Bibliography
Cascio, W. F. (2002). Strategies for responsible restructuring. Academy of
Management Executive, 16(3), 80–91.
Juergens, J. (2001). Monitoring the survivors. HR Magazine, 46(7), 92–99
Kriegel, R., & Brandt, D. (1996). Sacred cows make the best burgers.
New York: Warner.
Segal, J. A. (2001). Workplace tribal councils. HR Magazine, 46(6), 197–
209.

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PSY 292

Industrial and Person nel

Industrial and Personnel

University of Ibadan Distance Learning Centre

General Editor: Prof. Bayo Okunade

Page layout, instructional design & development by

University of Ibadan Distance Learning Centre

Prof. Isaac Adewole

Professor Bayo Okunade

Content Reviewer Prof. David E. Okurame

Content Editor Prof. Remi Raji-Oyelade Dr.

Study Session Summary ........................................................................................................................................................ 15

About this course manual

How this course manual is

We strongly recommend that you read the overview carefully before

The course content

Welcome to Industrial and

Industrial and Personnel

Upon a successful completion of Industrial and Personnel

How to be successful in this

www.google.com and type ―self-study basics‖, ―self-study tips‖, ―self-

Information Centre Lagos Office

For technical issues (computer problems, web access, and etcetera),

Activities emphasis when working the activities should be on understanding your

1.1 Definition of Industrial Psychology

1.2 Origins of Industrial Psychology

Munsterberg wrote Psychology and Industrial Efficiency, which was first

1.3 The Significance of Industrial Psychology

1.4 The Practice of Industrial Psychology

1.5 The Duties of Industrial Psychologists

2. Second, they ensure that different categories of workers have basic

Study Session Summary

DiClemente, D. F., & Hantula, D. A. (2000). John Broadus Watson, I-O

Koppes. L. L., & Pickren, W. (2007). Industrial and organizational

Van De Water, T. J. (1997). Psychology‗s entrepreneurs and the marketing

2.1 Steps in Research in Industrial Psychology

employees are examined in a context-specific situation.

The purpose of the preceding discussion is to show you the complexity of

Study Session Summary

Industrial Psychology and the

3.1 The New Work Environment

3.2 Recruitment, Selection, Placement and Induction

The concepts of recruitment, selection, placement and induction are

Induction provides an introduction to the working environment and the set-

3.3 Personnel Decisions

choice because diverse options usually exist on the identified issues of

Again personnel decision is necessary because organisations want to

Study Session Summary

4.1 What is Criterion?

4.2 Difficulties of Criterion

times overloaded. A good job analysis helps to a large extent in

4.3 Validity of Criterion

When assessing criterion validity, two common threats to the validity

Criterion contamination occurs when the criterion measure includes

Study Session Summary

Mercer (2005). Mercer 2004/2005 Compensation Planning Survey. New

Spence, J. R., & Keeping, L. M. (2009). The impact of non-performance

5.2 Methods of Job Analysis?

1. Archive: This involves the use of recorded or documented