UNIT 2

SELECTION AND ASSESSMENT

Selection Practices in Human Resource Management
Hiring the right individuals is one of the most crucial functions of human resource (HR)
management, as it enhances an organization's human capital resources. These resources
include employees' specialized skills, collective knowledge, and abilities, which are critical to
organizational success. However, identifying top candidates from numerous applications is
challenging. The selection process aims to match individual attributes such as ability and
experience with job requirements to ensure performance and satisfaction.
Stages of the Selection Process
The selection process typi
cally involves three stages: initial selection, substantive selection, and contingent selection.
Candidates may be rejected at any stage, though organizations may bypass certain steps
depending on their hiring needs. For instance, specialized industries might fast-track
processes to address labor shortages.
1. Initial Selection
This stage involves preliminary screening to determine if applicants meet basic job
qualifications. Common methods include:
 Application Forms and Résumés: These provide a basic overview of a candidate’s
qualifications, although they are limited in predicting performance. Résumés,
sometimes enhanced with photos or video introductions, may be evaluated using
keyword-matching software. However, practices like requiring photos or minority
applicants "whitening" résumés to avoid discrimination raise ethical concerns.
 Background Checks: Many employers verify employment history, personal
references, or even credit and criminal records. While essential, these checks often
yield limited useful information due to legal restrictions or concerns about
discrimination. Employers are advised to use these methods cautiously and ensure
their relevance to the job.
2. Substantive Selection
This is the core stage, involving a variety of assessment tools:
 Written Tests: These measure cognitive abilities, personality traits, or integrity.
Cognitive tests are especially useful for roles requiring complex problem-solving,
while personality tests assess traits like dependability. However, applicants may fake
responses, reducing test reliability.
 Performance-Simulation Tests: These include work samples, assessment centers,
and situational judgment tests. Work samples simulate actual job tasks, providing
hands-on insights into candidate skills. Assessment centers, used to evaluate
managerial potential, are elaborate but expensive. Situational judgment tests are cost-
effective alternatives that assess decision-making skills in hypothetical scenarios.
  Realistic Job Previews (RJPs): By involving candidates in actual work scenarios,
RJPs help assess their abilities and reduce turnover by setting clear expectations for
the job.
 Interviews: Despite their widespread use, interviews are prone to bias, especially
unstructured ones. Structured interviews, with standardized questions and a focus on
job-related attributes, improve reliability. Behavioral structured interviews, which
examine past problem-solving behavior, and panel interviews, which minimize
individual bias, are particularly effective. Interviews can also be used to assess
organizational fit and attract candidates to the company culture.
3. Contingent Selection
Candidates who pass substantive assessments undergo final checks before hiring. Drug
testing, a common contingent method, is often viewed as invasive but is considered essential
for workplace safety. Other contingent checks may include verifying health conditions or
specific certifications.
Gatewood and Feild (1998) outline the following steps in the development of a selection
process for effective recruitment and hiring
1. Job Analysis
Job analysis identifies the duties, responsibilities, and requirements of a specific job. Data is
collected through observation, interviews with current employees, or review of
documentation.
 Example: For a software developer role, a job analysis might reveal primary tasks
like coding, debugging, and collaborating with teams. Required tools might include
programming languages like Python and project management software like Jira.
2. Identification of Relevant Job Performance Dimensions
This step specifies key performance metrics to evaluate job success. These dimensions could
include productivity, accuracy, teamwork, or customer satisfaction.
 Example: For a customer service representative, dimensions might include first-call
resolution rate, average handling time, and customer satisfaction scores.
3. Identification of Knowledge, Skills, and Abilities (KSAs)
KSAs necessary for the job are detailed, including technical skills, cognitive abilities, and
interpersonal traits.
 Example: A graphic designer might need proficiency in Adobe Creative Suite
(knowledge), creativity (skill), and attention to detail (ability).
4. Identifying Worker Characteristics
Beyond KSAs, broader traits like adaptability, motivation, and cultural fit are assessed.
 Example: For a remote role, characteristics such as self-discipline and time
management are crucial.
5. Specification and Rating of KSAs
The KSAs are prioritized and linked to job tasks. Managers or job incumbents rate each
KSA's importance to ensure critical aspects are emphasized.
 Example: In an accountant’s role, technical expertise in tax regulations might be rated
as critical, while familiarity with niche software could be secondary but desirable.
6. Development of Assessment Methods
Assessment tools like structured interviews, situational judgment tests, and psychometric
evaluations are designed to measure KSAs.
 Example: A structured interview for a project manager might include scenario-based
questions such as handling conflicts in a cross-functional team. An accompanying test
could evaluate time management skills.
7. Validation of Assessment Methods
Validation ensures the chosen methods are reliable and predictive of job performance. This
involves:
 Content validity: Do the tests reflect job requirements?
 Construct validity: Are the tests measuring relevant attributes?
 Criterion validity: Do scores predict actual performance?
 Example: A sales aptitude test might be validated by comparing candidates’ test
scores with their subsequent sales figures over six months.
8. Use of Assessment Methods in Application Processing
Validated methods are applied systematically to shortlist and evaluate candidates. This step
emphasizes fairness and consistency.
 Example: In a hiring process for teachers, applications might be filtered based on a
writing assessment and followed by teaching demonstrations to observe classroom
management.
Conclusion
Each step ensures a selection process that is systematic, predictive, and aligned with job
requirements. By tailoring these methods to specific roles, organizations can improve hiring
accuracy, reduce turnover, and enhance overall efficiency. For instance, selecting a data
scientist might involve a coding challenge to assess technical KSAs and an interview to
gauge problem-solving abilities.
Such an evidence-based approach builds a competent workforce while ensuring legal and
ethical compliance.
Test
A test, according to Robert Guion (1998), is "an objective and standardized procedure for
measuring a psychological construct using a sample of behavior." This broad definition
covers various types of tests and methods, including: Paper-and-pencil tests, Internet testing,
Interviews, Work sample tests and Application blanks
Tests can measure a range of attributes such as cognitive ability, personality, values, technical
knowledge, communication skills, and interpersonal skills. Employers often assess these
attributes using multiple techniques (e.g., technical knowledge of a word-processing
applicant might be evaluated with tests, interviews, work samples, and checking education
credits).
The meaning of a test score is usually interpreted through a process called norming, which
involves comparing an individual's score to relevant norms. For example, scoring 88% could
mean different things depending on how it compares to others’ scores or pre-determined
standards. Interpretation of scores is crucial for determining the test’s validity, or its ability to
predict future performance.
Administrative Test Categories
1. Speed vs. Power Tests:
 Speed Tests: These tests have strict time limits, requiring quick responses. An
example is a clerical speed test, like data entry. Speed tests generate more variable
results, which are useful for predicting performance in roles where fast decision-
making is crucial (e.g., pilots or police officers). However, they can be unfair to older
individuals or those with disabilities, as processing speed may decline with age,
leading to potential legal challenges.
 Power Tests: These tests have no strict time limits, focusing instead on knowledge or
skills. For example, a technical skills test might assess problem-solving ability. Power
tests are better suited for roles where deep understanding is more important than quick
responses.
22. Group vs. Individual Tests:
 Group Tests: These tests are administered to many people simultaneously, such as a
cognitive ability test for police academy candidates. Group testing is cost-effective
and efficient for screening large pools of applicants. Digital formats enable virtual
group testing, increasing flexibility.
 Individual Tests: Individual tests are one-on-one assessments, such as an interview or
hand-eye coordination test. They provide deeper insight into a candidate’s problem-
solving style or interpersonal skills, making them ideal for specialized roles or high-
stakes hiring.
3. Paper-and-Pencil vs. Performance Tests:
 Paper-and-Pencil Tests: Common in industrial testing, these tests evaluate
knowledge or traits, such as a multiple-choice test or digital questionnaire.
 Performance Tests: These tests require candidates to complete tasks involving
physical objects, such as a dental hygienist preparing tools. Performance tests
measure practical skills relevant to job tasks.
Key Considerations:
 Speed Tests and Age/Disability Considerations: Speed tests can disadvantage older
individuals or those with disabilities, as cognitive processing speed can decrease with
age, even when it is irrelevant to job performance. Accommodations, such as
extended time for test-takers with learning disabilities, are often necessary under
regulations like the Americans with Disabilities Act (ADA).
 Individual Tests for Detailed Assessment: Individual tests are better suited for
situations where the candidate’s style, thought process, or interpersonal skills are
important, such as executive roles or positions that require hands-on expertise
Assessment Procedures: Content
Cognitive Tests

1. Cognitive ability tests assess mental skills like knowledge, perception, memory,
problem-solving, and reasoning.
2. Some tests, such as the Wonderlic Personnel Test, provide a single score evaluating
verbal, numerical, and spatial abilities.
3. Tests of specific abilities focus on particular cognitive skills. For example, the
Bennett Mechanical Comprehension Test measures mechanical understanding,
while spatial ability tests, ask candidates to visualize how objects would appear when
mentally manipulated.
4. Cognitive test batteries assess multiple cognitive abilities. The SAT and GRE are
widely recognized academic test batteries measuring similar skills.

Physical ability tests

1. Physical ability tests assess key attributes like static strength, explosive strength,
coordination, and stamina.
2. Physically demanding jobs typically require a combination of these abilities, so tests
often simulate real tasks. For instance, firefighter candidates undergo events requiring
multiple abilities, such as climbing stairs while carrying heavy equipment, pulling
hoses, and handling ladders.
3. Studies by the Equal Employment Opportunity Commission (EEOC) and
Hoffmann (1999) support that these tests effectively predict job success, emphasizing
the importance of measuring performance rather than injury risk.
Psychomotor ability tests
1. It assess coordinated limb movements in response to situational factors.
2. These tasks can be complex, like flying a plane or driving, or simpler, such as firing a
weapon or administering an injection.
3. Psychomotor abilities contribute to job performance beyond cognitive or physical
abilities. Tests like the Perdue Pegboard Dexterity Test are often used in pre-
employment screenings to measure dexterity. Advanced psychomotor tests, such as
those developed by Ackerman for air traffic controllers, help in assessing job-specific
skills.
Personality Tests
1. Personality attributes are important for job success, and various instruments measure
these traits, often based on the Big Five model.
2. Tests are divided into two categories: screen-out tests, which identify signs of
psychopathology (e.g., the MMPI-II), and screen-in tests, which assess normal
personality traits.
3. Certain high-trust positions, such as public safety officers, nuclear power plant
operators, air traffic controllers, and commercial airline pilots, may require
psychopathology testing for safety reasons.
4. However, for most industrial jobs, such testing is not justifiable. The Saville
Consulting Wave test is an example of a tool used to evaluate normal personality in
applicants.
Emotional Intelligence
1. Emotional intelligence (EI) refers to the awareness of one's own and others' emotions,
often measured by an emotional intelligence quotient (EQ).
2. While the concept has gained popularity, there is no consensus on its definition or
measurement, with many tests lacking reliability and validity.
3. Mayer-Salovey-Caruso Emotional Intelligence Test (MSCEIT™) is one of the
marketed assessments.
4. Research indicates that EI may be predictive of specific outcomes, such as public
speaking and group effectiveness, but skepticism remains regarding its overall value.
Individual Tests
1. Individual assessment is designed for evaluating a single candidate or a few
candidates on multiple attributes, often used for high-level positions, such as CEO
selection in Fortune 500 companies.
2. This process may involve various assessments, including: Ability tests, Personality
tests, Interviews etc.
3. While it primarily serves selection purposes, individual assessments can also identify
training needs and provide career counseling or performance feedback. They are time-
intensive and costly, typically used only for key organizational roles, ensuring
confidentiality for both candidates and the organization.
Interviews
1. Interviews are crucial for selection and promotion decisions, with their evolution
marked by early texts like Bingham and Moore (1931) and extensive research, such as
Guion (2011).
2. They can be categorized into structured and unstructured types. Structured interviews
feature specific questions and detailed scoring systems. Within this category,
situational interviews ask candidates how they would respond to hypothetical
situations, while behavior description interviews focus on candidates’ past actions.
3. Recent studies suggest that behavior description interviews are particularly effective
for high-level positions due to their emphasis on assessing experience rather than
abilities alone.
 4. Conversely, unstructured interviews involve broader questions with varied responses
and less formal scoring.
5. While managers often prefer unstructured interviews for perceived flexibility,
structured formats have shown greater effectiveness.
6. Training interviewers and addressing biases, especially regarding cultural differences
in self-presentation, remain essential.
Work Samples and Situational Tests
Work Sample Tests
1. Work sample tests measure job skills by simulating realistic job conditions.
2. One of the earliest examples was in 1910 when trolley car operators in Boston were
assessed using a simulated work station designed by Munsterberg.
3. Modern work sample tests, such as those for call center representatives, require
applicants to manage customer interactions and perform tasks like entering account
information and resolving disputes. Candidates are scored on hard skills (e.g.,
efficiency) and soft skills (e.g., anger management).
4. Similarly, accounts payable clerks may balance a petty cash ledger or generate
invoices, with scores reflecting their performance against standards.
Situational Judgment Tests (SJTs)
1. They have expanded this concept to white-collar roles. SJTs present candidates with
written scenarios and multiple-choice responses.
2. Research, including McDaniel et al. (2001), indicates SJTs are valid and assess
general mental ability and procedural knowledge, even predicting performance
beyond cognitive and personality tests.
3. For example, Clevenger et al. (2001) found SJTs enhanced performance prediction in
government and private sectors.
4. Video adaptations of SJTs show even lower adverse impacts and higher acceptance,
particularly among minority test-takers.
5. Overall, SJTs are job-related, well-accepted, and less prone to bias compared to
traditional tests, though susceptibility to faking remains a concern.
Testing and Culture
The 1950s and 1960s marked a period when testing lacked adequate legal and professional
controls, making cultural bias prevalent. For instance, some tests used complex language to
assess simple skills, disproportionately disadvantaging individuals with limited vocabulary or
reading comprehension.
Modern testing practices have largely addressed such readability issues but continue to
grapple with cultural influences.
Murphy and Davidshofer (2005) highlighted distinctions between bias, fairness, and culture
in testing.
 Bias, a statistical term, refers to a test's tendency to produce errors in predicting
performance for specific subgroups. For example, a strength test that underpredicts
women’s job performance while overpredicting men’s would be deemed biased.
  Conversely, fairness reflects value judgments about the appropriateness of decisions
based on test scores. A strength test may fairly predict job success for male and female
firefighter applicants but still exclude most women due to inherent physical
differences. Such outcomes might be seen as unfair despite the absence of bias.
 Culture, distinct from bias or fairness, involves the extent to which test-takers are
familiar with the subject matter or processes required. For example, generational
differences in cultural literacy can render items about technology or modern slang
unfair for older populations.
Greenfield (1997) and Sternberg (2004) emphasized the need to consider cultural contexts in
interpreting intelligence, with different cultures prioritizing distinct traits, such as humility in
Taoist traditions or lifelong learning in Confucian ideals.
1. Cultural issues in testing have evolved as societies have become more multicultural,
especially in workplaces.
2. Today, the cultural content in tests remains relevant due to the growing diversity of
applicant pools.
3. Testing practices worldwide further highlight cultural and procedural variations. For
instance, Europe tends to rely more heavily on structured assessment practices, with
organizations like the International Test Commission setting international guidelines
for test use.
4. Internationally, significant variations exist in how tests are administered and
regulated. In countries like Finland, Slovakia, and Japan, psychologists frequently
conduct industrial tests, while nonpsychologists handle these tasks in countries like
Canada and Germany.
5. While nations such as the U.S., the Netherlands, and Japan lead in test quality
research, others like China and South Africa lag. India and China, in particular, lack
regulation in testing, underscoring the need for certification and training for test
administrators.
6. The global trend indicates a move toward better regulation and adherence to
international standards, as seen in efforts to emulate the U.S.’s comprehensive testing
guidelines, such as those developed by the American Educational Research
Association and SIOP.
7. These advancements aim to minimize bias, ensure fairness, and account for cultural
diversity, aligning testing practices with ethical and professional ideals worldwide.

TRAINING
1. Training is the systematic acquisition of skills, concepts, or attitudes that leads to
improved performance in a different environment (Goldstein & Ford, 2002).
2. It is rooted in learning, which involves a relatively permanent change in behavior due
to experience and practice.
3. Learning outcomes can be categorized into cognitive, skill-based, and affective
outcomes (Kraiger, Ford, & Salas, 1993). Cognitive outcomes involve declarative
knowledge, such as police officers learning laws and court procedures. Skill-based
outcomes focus on developing motor skills (e.g., using specialized tools) and
technical skills (e.g., software understanding). Affective outcomes pertain to attitudes
 and beliefs that influence behavior, like organizational commitment and appreciation
of diversity, which can be shaped through training (Klein & Weaver, 2000).
4. However, not all training translates to improved job performance, particularly if the
work environment is unsupportive. Organizations implement various training
programs, including new employee orientation, team training, etc.

Rater Training
Rater training is essential to improve the accuracy and reliability of performance evaluations
by addressing unintentional or motivated distortions. Three primary types of rater training are
administrative training, psychometric training, and frame-of-reference (FOR) training.
Administrative Training focuses on familiarizing raters with the mechanics of evaluation
systems. While traditional systems like graphic rating scales require minimal training, more
complex systems such as Behaviorally Anchored Rating Scales (BARS) or Behavioral
Observation Scales (BOS) necessitate additional guidance. Administrative training ensures
raters understand dimension headings, anchors, and rating methods, especially when
structural issues in the scale exist. However, the ideal solution is improving the scale itself
rather than compensating with extensive training.
Psychometric Training aims to make raters aware of common rating errors such as central
tendency, leniency/severity, and halo effects. This training assumes that highlighting these
distortions will help raters avoid them. However, research suggests otherwise. Bernardin and
Pence (1980) found that psychometric training led raters to avoid distortions but resulted in
less accurate performance ratings. Raters focused on avoiding biases rather than accurately
describing performance. These findings were corroborated by Woehr and Huffcutt (1994),
emphasizing the limitations of psychometric training in improving rating accuracy.
Frame-of-Reference (FOR) Training addresses the cognitive aspects of performance rating
and is considered more effective than psychometric training. FOR training provides a
structured context or "frame" for ratings by including four key steps:
1. Educating raters about the multidimensional nature of performance.
2. Clarifying the meaning of rating scale anchors.
3. Conducting practice rating exercises using standardized examples, such as videotaped
scenarios.
4. Offering feedback on the practice ratings to refine rater judgment.
FOR training enhances raters’ observational skills, memory storage, and retrieval processes,
leading to more accurate evaluations. Studies by Gorman and Rentsch (2009) and Melchers et
al. (2011) support its effectiveness, showing that practice and feedback improve raters' ability
to apply performance standards consistently.
In summary, while administrative training ensures familiarity with evaluation systems and
psychometric training highlights biases, FOR training focuses on cognitive processes,
enabling raters to provide more accurate and reliable evaluations. This method is increasingly
preferred in performance management due to its comprehensive and impactful approach.
 Analysis
Training Needs Analysis (TNA) is essential for determining the need, content, and target
audience for training programs (Goldstein & Ford, 2002). It typically follows a three-step
process: organizational analysis, task analysis, and person analysis (Dierdorff & Surface,
2008).
1. Organizational Analysis examines company goals, available resources, and the
environment to identify training needs across departments. It assesses support for
training transfer, considering factors like organizational climate and alignment with
broader HR strategies. For example, if safety is prioritized in a production
department, training needs will reflect this focus (Zohar, 2002a). Supervisor and peer
support can significantly influence employee motivation to apply new skills on the job
(Colquitt, LePine, & Noe, 2000).
2. Task Analysis identifies job responsibilities and the required knowledge, skills,
abilities, and other characteristics (KSAOs). It includes developing task statements
and identifying task clusters to guide training content. For instance, training for train
operators might focus on emergency procedures derived from task analysis results.
Competencies, defined as behaviors leading to desired outcomes (Kurz & Bartram,
2002), can also be assessed to enhance core competencies like innovation in training
programs (Shippmann et al., 2000).
3. Person Analysis focuses on identifying individuals who require training and their
specific instructional needs. It utilizes performance evaluations, 360-degree feedback,
and objective performance data to assess employee weaknesses. Increasingly,
personality and ability assessments are included in this analysis to evaluate readiness
for training.
Training Methods Overview
Training methods can be categorized into on-site and off-site programs, each encompassing
several distinct types. The effectiveness of these methods is grounded in learning principles
that emphasize relevant information, skill demonstration, practice opportunities, and feedback
1. On-Site Training Methods
1.1 On-the-Job Training (OJT)
 Definition: OJT involves assigning trainees to actual jobs and encouraging them to
learn through observation and practice alongside experienced employees.
 Advantages: It allows for real-world application of skills and knowledge.
 Effectiveness: The effectiveness of OJT is enhanced when it includes clear training
objectives, behavioral modeling, and regular feedback (Goldstein & Ford, 2002).
 McDonald’s University, also known as Hamburger University, was established by
Ray Kroc to provide comprehensive training to franchisees and managers. The
program teaches McDonald's operational standards, emphasizing quality, cleanliness,
service, and price. Trainees learn everything from customer service techniques to
managing kitchen efficiency, ensuring uniformity across franchises globally. By
 standardizing operations, the university maintains the consistency of the McDonald’s
brand, instilling Kroc’s vision in franchisees across diverse regions.
1.2 Apprenticeship
 Definition: A structured form of OJT designed to teach skilled trades through a
combination of practical experience and classroom instruction.
 Example: Apprenticeships are commonly found in trades such as plumbing, electrical
work, and carpentry. They typically last from two to five years and include at least
144 hours of classroom instruction annually.
 Process:
1. Knowledge Acquisition: Apprentices start with foundational knowledge,
often through trade schools.
2. Behavioral Modeling: They observe journeymen performing tasks.
3. Practice: Apprentices perform job tasks under supervision.
4. Feedback: They receive guidance and further practice until tasks are mastered
(Noe, 2010).
 Global Context: In countries like Germany and Denmark, apprenticeships play a
significant role in vocational education. For instance, about two-thirds of German
students who do not attend college participate in these programs, which are supported
by various stakeholders in society. However, a concern exists regarding the specificity
of skills gained, which may not always transfer to other jobs (Ilgen & Pulakos, 1999).
 Siemens offers an apprenticeship program in Germany where trainees learn technical
trades such as electrical engineering. This combines classroom instruction with
supervised on-the-job training, ensuring apprentices master both theoretical
knowledge and practical skills in real-world settings.
1.3 Job Rotation
 Definition: This method involves moving employees through various jobs or
departments within an organization.
 Advantages: It helps employees acquire a broader skill set and promotes a deeper
understanding of the organization. For instance, an entry-level HR employee may
rotate through staffing, compensation, benefits, and training functions.
 Management Preparation: Job rotation is often used to prepare high-potential
employees for future management roles. For example, new executives might rotate
through key departments like HR, operations, and finance to gain comprehensive
knowledge (Wexley & Latham, 2002).
 Networking and Skills Development: Employees who undergo job rotation often
build valuable internal networks and enhance decision-making and problem-solving
skills. Research has linked job rotation to positive outcomes like promotions and
salary increases (Campion, Cheraskin, & Stevens, 1994). PwC's “Tours of Duty”
 program exemplifies this approach, allowing consultants to rotate among teams
globally, thus enhancing their skills and cultural understanding (Barbian, 2002).
2. Off-Site Training Methods
2.2 Programmed Instruction
 Definition: An instructional approach that utilizes reinforcement principles, where
trainees interact with materials at their own pace.
 Types:
o Linear Programming: All trainees follow the same path through the material.
o Branching Programming: Tailors the learning experience to address
individual difficulties.
 Effectiveness: Studies have shown no significant differences in retention between
programmed instruction, lectures, and discussions, but trainees using programmed
instruction tend to complete training in about 30% less time (Goldstein & Ford,
2002).
 AT&T uses programmed instruction for employee development in technical fields,
providing self-paced online training modules. Employees work through structured
content and quizzes, receiving instant feedback to help improve technical
competencies in telecommunications and IT services.
2.3 Simulators
 Definition: Training tools that replicate real-world environments to enhance learning
and facilitate skill transfer.
 Applications: Simulators are crucial in fields requiring high-stakes skills, such as
aviation (e.g., flight simulators) and medical training (e.g., CPR dummies). They
allow for safe, realistic practice and decision-making in complex scenarios (Noe,
2010).
 Advantages:
1. Controlled Reproducibility: They recreate real-world conditions effectively.
2. Safety: Allow for practice without real-world consequences.
3. Learning Principles: Utilize active practice and feedback mechanisms.
4. Cost-Effectiveness: Reduce the costs associated with real-world errors,
especially in high-stakes environments.
 Fidelity: The concept of fidelity in simulators emphasizes the importance of realism,
both physically and psychologically. Higher fidelity leads to better learning outcomes
and skill transfer (Goldstein & Ford, 2002).
 Boeing uses high-fidelity flight simulators to train pilots. The simulators replicate real
flight conditions, enabling pilots to practice safely in high-stakes scenarios without
actual risk.
2.4 Distance Learning and Computer-Based Training
 Distance Learning: A growing trend that allows trainees to learn remotely through
various media, including video conferencing and online platforms. It is particularly
beneficial for businesses and educational institutions looking to reach a wider
audience (Goldstein & Ford, 2002).
 Blended Learning: Combines distance learning with traditional classroom methods,
enhancing motivation and engagement (Klein, Noe, & Wang, 2006).
 Computer-Based Training (CBT): Involves the use of computers for training
delivery, allowing for flexibility and individualization. Companies like Merrill Lynch
use CBT to train employees effectively (Guernsey, 2000).
 Adaptive Guidance: This approach provides trainees with feedback on their
performance, helping them understand their strengths and areas for improvement,
which positively influences practice habits and learning outcomes (Bell & Kozlowski,
2002b).
 Deloitte utilizes CBT for global training initiatives, offering employees access to e-
learning platforms that cover topics from leadership development to technical skills.
The flexibility allows employees to complete training remotely at their own pace,
fostering continuous learning.
360-Degree Feedback
1. 360-degree feedback, also known as multisource feedback, is a process that collects
performance feedback about a manager or executive from various sources, including
supervisors, peers, subordinates, customers, and suppliers.
2. This feedback is essential for motivating change and providing direction for
development (Hollenbeck & McCall, 1999).
3. To enhance the effectiveness of this feedback, it should be timely, anonymous, and
confidential, ensuring that raters feel comfortable providing honest assessments.
Research indicates that feedback given anonymously tends to be more open and
constructive, while confidentiality encourages recipients to be more receptive to the
feedback they receive (Morgeson, Mumford, & Campion, 2005).
4. General Electric (GE) uses 360-degree feedback in its performance appraisals,
allowing employees to receive input from supervisors, peers, and subordinates, which
aids in leadership development
Coaching
1. Coaching serves as a practical, goal-focused form of one-on-one learning aimed at
improving performance, enhancing careers, or navigating organizational changes
2. A coach works with employees to develop their skills through personalized feedback
and reinforcement.
3. Coaches can be internal or external to the organization. Research by Feldman and
Lankau (2005) identifies four primary activities in coaching relationships: data
gathering, feedback, intervention (coaching), and evaluation.
4. While initial studies indicate significant results from executive coaching, additional
research is needed to evaluate its long-term impact on learning and job performance.
 5. IBM offers personalized coaching for leaders, enhancing their performance and
facilitating organizational change, resulting in improved leadership effectiveness and
employee satisfaction.

Sexual Harassment Awareness Training

1. Sexual harassment encompasses unwelcome sexual advances or conduct that affects
employment or creates a hostile work environment.
2. It includes two main types: quid pro quo sexual harassment, where compliance with
sexual demands is tied to job benefits, and hostile working environment harassment,
where ongoing offensive behavior interferes with work performance.
3. The prohibition of sexual harassment is embedded in Title VII of the Civil Rights Act
of 1964, which has seen a surge in claims, tripling from 1991 to 2007.
4. Organizations are encouraged to implement zero-tolerance policies and effective
complaint processes to mitigate risks associated with harassment.
5. Training programs aim to educate employees on recognizing inappropriate behaviors
and understanding their rights.

6. In 2018, Starbucks faced a public incident involving the arrest of two Black men at a
Philadelphia store for trespassing while waiting for a friend. This incident sparked
widespread criticism and highlighted issues of racial bias and discrimination. In
response, Starbucks implemented company-wide training on sexual harassment and
bias awareness to promote a more inclusive workplace.

Ethics Training
1. Ethics training has gained importance following high-profile corporate scandals,
prompting organizations to instill ethical decision-making among employees.
2. Research indicates that having an ethics training program positively affects
employees' perceptions of their organization's ethical environment (Valentine &
Fleischman, 2004).
3. To enhance ethical behavior, organizations can select individuals with high integrity
and conscientiousness, complemented by comprehensive ethics training programs.
4. This dual approach fosters an environment that supports ethical decision-making and
aligns with the organization's values.
5. Ex - Wells Fargo faced a significant scandal in 2016 involving the creation of millions
of unauthorized accounts. Employees opened accounts without customer consent to
meet aggressive sales targets, resulting in a major breach of customer trust and ethical
standards. Wells Fargo revamped its ethics training after a scandal, emphasizing
integrity and ethical decision-making through interactive modules to rebuild trust
within the organization.
Cross-Cultural Training
1. Cross-cultural training prepares individuals to interact effectively with people from
diverse cultures, particularly for expatriates working abroad.
2. Culture shock, often experienced four to six months into an assignment, can lead to
homesickness and reduced work effectiveness.
 3. To counter this, companies frequently provide language and cross-cultural training
programs to facilitate adjustment to new environments.
4. Cross-cultural training methods include cultural assimilators, which present scenarios
involving critical cross-cultural incidents and offer feedback on behavioral choices.
5. These methods aim to enhance awareness of cultural values and improve
understanding between individuals from different backgrounds.
6. Coca-Cola encourages expatriates to share their experiences and challenges faced
during their assignments. This feedback helps the company continuously improve its
training programs and address any cultural gaps.

JOB ANALYSIS AND PERFORMANCE APPRAISAL

Campbell’s model of job performance
It was developed in the context of industrial-organizational (I-O) psychology, focuses on
understanding the factors influencing worker behavior and performance in a job setting.
One of the key ideas from this model is that performance is fundamentally about behavior. It
refers to actions or behaviors that are relevant to an organization’s goals and can be measured
in terms of individual proficiency. Performance, therefore, is what employees do to achieve
the objectives they were hired to fulfill.
Campbell et al. (1993) recognized that many conventional performance measures –
 Time to complete a training course
 Number of pieces produced
 Total days absent
 Total value of sales
 Promotion rate within an organization
These factors—such as equipment availability, work design, market conditions, and
organizational policies—can limit the extent to which an individual has control over these
performance outcomes.
This insight led Campbell to emphasize that effective performance measurement requires
distinguishing between individual behavior and factors beyond the worker’s control, such as
workflow processes or organizational structures (Doerr et al., 2004; Tett & Burnett, 2003).
Campbell’s model identifies three core determinants of performance: declarative knowledge
(DK), procedural knowledge and skill (PKS), and motivation (M).
 Declarative knowledge refers to a worker’s understanding of job-related facts and
information.
 Procedural knowledge and skill involve knowing how to perform tasks and applying
that knowledge efficiently.
 Motivation reflects the individual’s desire and effort to complete the work effectively.
These three determinants shape performance by affecting how well a person can carry out
their duties.
Crucially, these determinants are influenced by factors like training, experience, personality,
and incentives. For instance, training enhances DK and PKS, while motivational factors, such
as rewards, affect effort and persistence.
Research shows that personality traits like conscientiousness can indirectly impact
performance by shaping goal-setting behavior, which enhances declarative knowledge (Tett
& Burnett, 2003). This highlights the importance of considering how indirect factors
influence the three direct performance determinants.
In addition to the determinants of performance, Campbell identified eight performance
components that are applicable to most jobs.
1. Job-specific task proficiency: An individual’s capacity to perform the core substantive
or technical tasks central to the job.
2. Non-job-specific task proficiency: An individual’s capacity to perform tasks or
execute performance behaviors that are not specific to his or her particular job.
3. Written and oral communication task proficiency: An individual’s proficiency in
writing and speaking, independent of the correctness of the subject matter.
4. Demonstrating effort: The consistency of an individual’s effort; the frequency with
which people will expend extra effort when required; the willingness to keep working
under adverse conditions.
5. Maintaining personal discipline: The extent to which an individual avoids negative
behavior such as excessive absenteeism, alcohol or substance abuse, and law or rules
infractions.
6. Facilitating peer and team performance: The extent to which an individual supports
peers, helps peers with problems, helps keep a work group goal directed, and acts as a
role model for peers and the work group.
7. Supervision/leadership: Proficiency at influencing the performance of subordinates
through face-to-face interpersonal interaction and influence.
8. Management/administration: Behavior directed at articulating for the unit, organizing
people and resources, monitoring progress, helping to solve problems that might
prevent goal accomplishment, controlling expenses, obtaining additional resources,
and dealing with other units.
By focusing on both the direct determinants (DK, PKS, M) and performance components,
Campbell’s model provides a comprehensive framework for understanding job performance
across different roles.
Ex- at Google. Employees are evaluated on factors like job-specific proficiency (e.g., coding
skills for engineers), communication proficiency (written and verbal presentations), and
demonstrating effort (problem-solving under tight deadlines). Google provides extensive
training to enhance declarative and procedural knowledge and uses incentive programs like
bonuses to boost motivation.
Typical versus Maximum Performance
1. The distinction between typical and maximum performance reflects two different
levels of worker output.
2. Typical performance refers to the day-to-day effort an employee usually puts into
their job, often around 70% effort. Maximum performance, on the other hand, is the
peak level of output a person can achieve when exerting 100% effort.
3. This peak effort is usually unsustainable over long periods, and examples include
high-stress periods like the days leading up to Christmas for delivery drivers or
wildland firefighters in emergencies.
4. Sackett and colleagues (1988) suggested that maximum performance is mainly driven
by abilities, such as intelligence, while typical performance is influenced by both
ability and motivation.
5. Research shows that goal setting can increase maximum performance, while low
confidence hinders it (Mesmer-Magnus & Viswesvaran, 2007; Klehe et al., 2007). In
complex tasks, workers tend to display maximum performance in priority areas, while
typical performance dominates less critical areas. Moreover, cognitive ability and
declarative knowledge are key for maximum performance, while typical performance
is more closely linked to personality traits like conscientiousness (Klehe & Anderson,
2007). This distinction holds promise for refining employee selection and
performance evaluations.
A Comprehensive Framework for Considering Performance
 The "Great Eight" model of competencies, developed by Bartram (2005), integrates
several key performance dimensions, including Campbell’s work, Organizational
Citizenship Behavior (Behavior that goes beyond what is expected), and Pulakos’
concept of adaptability (Performance component that includes flexibility and the
ability to adapt to changing circumstances).
 This comprehensive framework categorizes performance into eight competencies,
which provide an overarching view of what drives success at work.
 Bartram also links specific traits and abilities to each competency, offering insights
into which attributes predict these areas of performance.
 This model represents a significant advancement in understanding performance by
combining previously separate theories and providing a unified approach to
performance evaluation.
Regarding expert performance, research by Ericsson and Charness (1994) reveals that
expertise is not primarily due to innate talent or superior intelligence, but rather deliberate,
sustained practice. Experts in fields such as music, sports, chess, and science typically follow
a rigorous practice routine for over 10 years, averaging four hours of practice per day. The
key differentiator is the deliberate nature of this practice, involving targeted efforts to
improve specific skills. This insight challenges the notion that expertise is unattainable,
showing that dedication and structured practice are essential.

Types of Performance Measures

Performance measures in industrial-organizational (I-O) psychology are typically categorized
into three types: objective, judgmental, and personnel measures (Guion, 1965).
 Objective measures quantify work results, such as the number of cases a judge
handles or sales made by a representative.
 Judgmental measures involve evaluations by supervisors, often in the form of annual
performance ratings based on various aspects of an employee's behavior.
 Personnel measures track events like absences, promotions, or disciplinary actions.
Campbell’s model highlights concerns with objective and personnel measures, as many are
influenced by factors beyond individual control (e.g., sales territories). In contrast,
judgmental measures allow evaluators to adjust for such factors and focus more on individual
behavior. However, each type of measure has its strengths and limitations, which will be
explored further in performance evaluation practices.
 JOB ANALYSIS
1. Job analysis Process that determines the important tasks of a job and the human
attributes necessary to successfully perform those tasks.
2. The analyst wants to understand what the important tasks of the job are, how they are
carried out, and what human attributes are necessary to carry them out successfully. In
short, job analysis is an attempt to develop a theory of human behavior about the job
in question.
3. Job analysis provides valuable information that can be used for various purposes,
including job description, recruitment, selection, training, compensation, criterion
development, and performance evaluation:
 Job descriptions outline the essential tasks, duties, responsibilities, and
qualifications required for each job position.
 Job analysis informs recruitment strategies by identifying the specific skills,
abilities, and experience required for each job. Job analysis guides the
development of effective selection tools and processes. By identifying the critical
competencies and skills required for successful job performance, organizations
can select assessment methods that accurately measure these attributes.
 Job analysis helps organizations identify areas of performance that require
targeted training interventions. By understanding the specific challenges and
opportunities for growth within each job, organizations can provide tailored
training programs that address the gaps between current performance and desired
outcomes.
 Job analysis plays a key role in determining fair and equitable compensation
structures. By identifying the key performance components and expectations for
each job, organizations can establish appropriate pay scales that reflect the value
and demands of each role.
 Job analysis provides the foundation for developing meaningful performance
criteria.
Types of Job Analysis
Job analysis is a method used to combine the demands of a job with knowledge of human
attributes to develop a theory of job behavior. Two primary approaches are used: work-
oriented and worker-oriented job analysis.
A work-oriented job analysis focuses on the specific tasks performed, tools used, and the
work context. For example, a snowcat operator’s task might be operating a Bombardier
Snowcat to smooth out snow on a ski slope. In contrast, a worker-oriented job analysis
emphasizes the characteristics required to complete the job. For the same snowcat operator,
this might involve evaluating snow conditions and choosing the appropriate settings and
number of passes needed for the terrain.
Both approaches ultimately aim to identify the required KSAOs:
 Knowledge (facts and information related to the job),
 Skill (a practiced capacity to perform specific tasks),
  Ability (the stable capacity to engage in behaviors),
 Other characteristics (personality traits, interests, training, experience).
Neither approach is inherently superior, but worker-oriented analyses tend to produce more
generalized descriptions, which are helpful in structuring training programs and providing
performance appraisals. They are less tied to specific tools or technologies, making the data
more adaptable across various jobs.
Methods of Job Analysis
Job analysis gathers detailed information about a job, and there are several methods to
achieve this. A key term in job analysis is subject matter expert (SME), often an incumbent
worker or supervisor with extensive knowledge of the job. Common job analysis methods
include:
1. Observation: This involves watching SMEs perform their job tasks, taking notes,
asking questions, and sometimes even performing the tasks to understand them better.
This method provides first-hand insight into the job, and it has been widely used in
various settings like mining, police patrol, or ship piloting.
2. Interviews: Supplementing observation, structured interviews with incumbents or
supervisors provide valuable insights. These interviews use specific questions based
on observations or prior job studies to get a clearer understanding of job
responsibilities.
3. Critical incidents and work diaries: The critical incident technique asks SMEs to
identify behaviors that led to success or failure in critical situations, such as an error
that caused a massive power loss. Work diaries ask workers to log their activities
periodically, capturing real-time details of their job tasks.
4. Questionnaires/surveys: SMEs rate tasks or behaviors based on frequency,
importance, and the necessary KSAOs. These responses can be analyzed statistically,
providing an objective record of the job's components. Increasingly, these surveys are
conducted online, allowing for broader and more efficient data collection.
Each method contributes to a deeper understanding of a job's demands, and multiple
approaches are often combined to produce a comprehensive analysis.
Newer Developments in Job Analysis
The rapid evolution of technology has significantly advanced job analysis, introducing
modern methods such as electronic performance monitoring (EPM) and cognitive task
analysis (CTA). These innovations provide deeper insights into job performance and
cognitive processes, offering precise tools for employee assessment and development.
Electronic Performance Monitoring (EPM)
Electronic Performance Monitoring (EPM) involves using technology to track employee
activities in real time. For instance, flight data recorders help analyze pilots’ actions during
emergencies, while businesses monitor call center agents or delivery drivers. Although EPM
provides passive data collection and immediate feedback, concerns arise about privacy,
fairness, and over-monitoring. Organizations must balance efficiency with employee
autonomy to avoid demotivation and misuse of data.
Cognitive Task Analysis (CTA)
Cognitive Task Analysis (CTA) focuses on the mental processes behind job performance,
especially for roles that involve decision-making and problem-solving. Using techniques like
think-aloud protocols, CTA helps capture cognitive strategies in complex fields like medicine
or aviation, improving training programs. While time-consuming, CTA’s insights into
cognitive demands make it valuable in high-stakes industries where errors have serious
consequences.
Personality-Based Job Analysis
Recent developments emphasize the role of personality traits in job performance. Tools like
the Personality-Related Position Requirements Form (PPRF) leverage the Big Five
personality dimensions—openness, conscientiousness, extraversion, agreeableness, and
emotional stability—to align candidates with job demands. By incorporating personality into
job analysis, employers can enhance employee fit and selection processes, resulting in better
performance and satisfaction.
Computer-Based Job Analysis and O*NET
Computer-based job analysis systems streamline data collection, enabling Subject Matter
Experts (SMEs) to provide remote input and generate quick reports for HR tasks like
performance evaluation. ONET, a comprehensive electronic database, replaced the
Dictionary of Occupational Titles (DOT). ONET includes detailed information on experience,
skills, wages, and work context, offering users real-time insights that reflect the modern labor
market.
Competency Modeling
Competency modeling identifies behaviors that contribute to organizational success, using
high-performing employees as benchmarks. By linking individual competencies to broader
organizational goals, competency modeling helps align workforce behavior with company
missions. While it overlaps with traditional job analysis, integrating both methods into
strategic work analysis enhances workforce management by promoting organizational
alignment and individual performance.
PERFORMANCE APPRAISAL
Performance Appraisal and Its Formats
Performance appraisal is a structured process for evaluating employee performance, typically
conducted annually and initiated by HR. It differs from performance management, which
occurs more frequently and involves collaborative feedback between supervisors and
employees. While performance appraisal systems are HR-driven and used by managers to
evaluate subordinates, performance management systems are co-developed by managers and
employees, focusing on continuous feedback and improvement.
Feedback in performance appraisal is generally given annually, following the appraisal
process, whereas performance management allows for ongoing discussions whenever needed.
In performance management, both the appraiser and appraisee collaboratively assess
performance criteria, evaluate the employee's behavior in relation to these criteria, and
identify areas for growth.
Absolute Appraisal Rating Formats
Absolute appraisal rating formats involve evaluating individuals against an established set of
criteria or standards. This method provides objective and consistent assessments based on
predetermined expectations rather than subjective comparisons.
Examples of Absolute Formats:
1. Graphic Rating Scales
Employees are rated on a scale (e.g., 1 to 5) for specific traits or behaviors, such as
"teamwork" or "punctuality." For example, a manager may rate an employee as a 4 for
teamwork, indicating above-average performance.
2. Behaviorally Anchored Rating Scales (BARS)
Performance is rated using specific behavioral descriptions as anchors. For instance, a
BARS scale for "customer service" might have:
 1: Frequently rude to customers.
 5: Consistently resolves customer complaints effectively.
This format ensures clarity and reduces rater bias by aligning ratings with
observable behaviors.
3. Behavior Observation Scales (BOS)
BOS measures the frequency of specific behaviors. For example, an employee might
be evaluated on how often they "offer assistance to colleagues" using categories such
as "always," "sometimes," or "rarely."
4. Essay-Type Formats
Supervisors write descriptive essays about employee performance. For example, a
manager might describe an employee’s strengths in meeting deadlines and suggest
areas for development in time management.
Relative Appraisal Rating Formats
Relative appraisal rating formats evaluate individuals in comparison to others in their group.
These methods highlight strengths and weaknesses relative to peers but can foster unhealthy
competition and reduce team cohesion.
Examples of Relative Formats:
1. Straight Ranking
Employees are ranked from best to worst based on overall performance. For instance,
in a team of five, the top performer might be ranked 1, and the least effective 5.
2. Forced Distribution
This method requires placing employees into predetermined performance categories,
such as "top 10%," "middle 80%," and "bottom 10%." For example, in a team of 10,
one employee must be in the bottom 10%, even if overall performance is high.
Examples in Practice
 Absolute Format Example: In a retail store, an employee could be rated on a graphic
rating scale for "customer satisfaction" from 1 (poor) to 5 (excellent) based on
customer feedback surveys.
 Relative Format Example: A sales team might use forced distribution to identify the
top-performing salesperson for a quarterly bonus.
While absolute formats prioritize fairness and objectivity, relative formats can be useful in
identifying standout performers for rewards or promotions. The choice of format depends on
organizational goals and culture.
MOTIVATION
Motivation as the processes that account for an individual’s intensity, direction, and
persistence of effort toward attaining a goal.
Motivation involves the intensity, direction, and persistence of effort toward achieving a goal.
Intensity refers to how hard someone tries, while direction ensures this effort aligns with
organizational objectives. Persistence measures how long someone maintains their effort.
Effective motivation in the workplace balances all three, ensuring that high effort leads to
meaningful outcomes.
Motivation and Performance
Motivation is a key driver of workplace productivity, as highlighted in Viteles' 1953 work and
Pritchard's ProMES model. The formula Performance = Motivation × Ability × Situational
Constraints shows that without motivation, even ability cannot produce strong results. By
enhancing employee motivation, organizations can significantly boost both individual and
collective performance.
Motivation and Work-Life Balance
Excessive work motivation, as seen in workaholism, can negatively impact physical health
and mental well-being. Research emphasizes that motivation is a finite resource, and when
overly concentrated on work, it can reduce focus on other life areas, such as family and
leisure. Balancing work motivation with personal life is crucial for sustained productivity and
employee well-being.
Motivation and Personality
Personality traits play a significant role in workplace motivation. Conscientious individuals,
for instance, tend to set ambitious goals and maintain high motivation, while those with high
neuroticism may struggle. The locus of control (LOC) also influences motivation; individuals
with an internal LOC believe their actions shape outcomes, leading to higher motivation.
Optimism is another key factor, though it can decline over time in a work environment,
reflecting the impact of long-term organizational exposure.
Maslow’s Hierarchy of Needs
Abraham Maslow's Hierarchy of Needs is a foundational theory in psychology that
categorizes human needs into a five-level pyramid. Each level represents a different category
of need, which must be satisfied in a specific order for individuals to progress toward higher-
level motivations.
1. Physiological Needs: This is the base of the pyramid and includes essential biological
requirements such as hunger, thirst, shelter, and sex. These needs are fundamental for
survival, and until they are met, individuals will focus primarily on fulfilling them.
2. Safety-Security Needs: Once physiological needs are satisfied, individuals seek
safety and security. This encompasses both physical safety (freedom from harm) and
emotional stability (financial security, health, and well-being).
3. Social-Belongingness Needs: After achieving safety, humans have an intrinsic desire
for social interaction. This level involves relationships and connections, including
friendships, romantic partnerships, and family ties. A sense of belonging fosters
emotional support and acceptance.
4. Esteem Needs: At this level, individuals seek self-respect, autonomy, and
achievement, along with external validation in the form of status, recognition, and
attention from others. Meeting esteem needs enhances self-confidence and feelings of
worth.
5. Self-Actualization Needs: The pinnacle of the hierarchy involves realizing one’s
potential and achieving personal growth and self-fulfillment. This need reflects the
desire to become the best version of oneself and pursue meaningful goals.
A recent proposal suggests a sixth need focused on Intrinsic Values, which emphasizes
higher-level motivations driven by personal values and fulfillment beyond the original five
needs. According to Maslow, as each lower-level need is satisfied, individuals naturally
progress to the next level, making it crucial for managers and leaders to identify which level
their employees are currently on to effectively motivate them. For example, organizations
may adopt benefits or rewards menus, allowing employees to choose from a variety of
options that cater to their individual needs, thus aligning with Maslow’s hierarchy
Application: Companies have recognized that addressing employees’ needs at various levels
can lead to increased motivation and satisfaction.
Example: Google employs various strategies to satisfy employees' needs. At the base level, it
provides essential amenities like free meals and health facilities, catering to physiological
needs. For safety and security, Google offers comprehensive health insurance and retirement
plans. Social belongingness is fostered through team-building activities and open office
layouts, promoting collaboration. To meet esteem needs, Google encourages recognition
programs where employees are celebrated for their achievements. Finally, Google emphasizes
self-actualization by offering professional development opportunities, allowing employees to
pursue innovative projects like “20% time,” where they can work on personal interests that
align with the company's goals.
Herzberg’s Two-Factor Theory
Frederick Herzberg’s Two-Factor Theory, also known as the motivation-hygiene theory,
explores job satisfaction and dissatisfaction by identifying two distinct sets of factors
influencing employees’ feelings about their work.
 1. Motivators (Intrinsic Factors): These are related to job satisfaction and include
elements such as achievement, recognition, responsibility, and advancement.
Employees who feel good about their jobs typically attribute their satisfaction to these
intrinsic motivators, which enhance their engagement and commitment.
2. Hygiene Factors (Extrinsic Factors): These do not lead to satisfaction but can
prevent dissatisfaction. Hygiene factors include company policies, supervision
quality, pay, working conditions, and relationships with colleagues. While addressing
these factors may eliminate employee dissatisfaction, it does not inherently increase
satisfaction or motivation.
Herzberg posits that the opposite of satisfaction is “no satisfaction,” and the opposite of
dissatisfaction is “no dissatisfaction.” Therefore, merely removing negative conditions does
not motivate employees; true motivation arises from enhancing intrinsic job characteristics.
Despite criticism regarding Herzberg’s methodology and assumptions, his theory remains
influential in various management practices worldwide, especially in different cultural
contexts.
Application: Organizations have adopted Herzberg's theory to create environments that
enhance job satisfaction while mitigating dissatisfaction.
Example: The Ritz-Carlton applies this theory by focusing on intrinsic motivators to
enhance job satisfaction. The hotel chain emphasizes achievement and recognition by
empowering employees to make decisions that improve guest experiences. For example,
every employee is given a $2,000 budget to solve customer issues, fostering a sense of
responsibility and achievement. In terms of hygiene factors, Ritz-Carlton ensures good
working conditions and fair pay, addressing issues that could lead to dissatisfaction.
McClelland’s Theory of Needs
David McClelland’s theory of needs focuses on three primary motivations, which differ from
basic survival needs and are more closely associated with personal and professional
achievement.
1. Need for Achievement (nAch): This is the desire to excel and achieve in relation to
set standards. High achievers prefer tasks with a moderate chance of success (around
50%), as they seek challenges that allow them to stretch their capabilities without
risking failure.
2. Need for Power (nPow): This motivation relates to the desire to influence or control
others. nPow can manifest positively (e.g., leadership and inspiring others) or
negatively (e.g., manipulative behavior).
3. Need for Affiliation (nAff): This reflects the desire for friendly and close
interpersonal relationships. Individuals with a high nAff often thrive in collaborative
environments and prioritize teamwork and open communication.
Research supports the validity of McClelland’s theory across various cultures, highlighting its
relevance in understanding employee motivation and performance. For example, individuals
with a high nAch often demonstrate positive attitudes and perform exceptionally well in
challenging situations.
Application: Companies utilize McClelland’s theory to tailor motivational strategies based
on individual employees' primary needs.
Example: General Electric (GE) applies McClelland’s theory through its leadership
development programs. Employees identified with a high need for achievement (nAch) are
given challenging projects to excel. Those with a need for power (nPow) are often placed in
leadership roles or given opportunities to influence team direction. For employees with a high
need for affiliation (nAff), GE fosters teamwork through collaborative projects, ensuring they
thrive in environments that emphasize relationship building.
Reinforcement Theory
Reinforcement Theory, developed by B.F. Skinner, offers a different perspective on
motivation. This behaviorist approach posits that behavior is influenced by the relationship
between stimuli, responses, and rewards. Central to this theory are contingent rewards,
which are provided based on specific behaviors. For instance, if a worker achieves a
particular level of performance and receives a monetary bonus, this reward reinforces the
behavior, making it more likely that the worker will repeat that level of performance in the
future.
Skinner's research also highlighted the effectiveness of intermittent rewards—where
rewards are given sporadically rather than every time a desired behavior occurs. For example,
sales commissions and year-end performance bonuses serve as intermittent rewards, which
can lead to higher levels of performance than continuous reinforcement.
Application: Organizations use reinforcement theory to encourage desired behaviors through
appropriate rewards.
Example: Salesforce employs reinforcement theory through its sales commission structure.
Sales representatives receive bonuses based on performance metrics, reinforcing behaviors
that lead to high sales figures. Additionally, Salesforce utilizes intermittent rewards, such as
quarterly bonuses or recognition at company meetings, to maintain high motivation levels
over time. This approach encourages employees to continuously strive for performance
improvements.
Contemporary Theories of Motivation
Self-Determination Theory
Self-Determination Theory (SDT) posits that individuals are motivated by intrinsic factors
rather than external rewards. This theory suggests that people prefer autonomy and control
over their actions.
SDT emphasizes three psychological needs: autonomy, competence, and relatedness.
Among these, autonomy is critical for positive attitudinal and affective outcomes, while
competence is more strongly correlated with performance. The theory warns against
excessive reliance on extrinsic rewards, as they can diminish intrinsic interest in tasks. For
example, if a programmer enjoys coding to solve problems, offering a bonus for completing a
set number of lines may feel coercive and diminish their intrinsic motivation.
Recent studies support that intrinsic motivation contributes significantly to work quality,
while extrinsic rewards often boost quantity. Goals pursued for intrinsic reasons lead to
greater job satisfaction and alignment with personal values. Individuals motivated
intrinsically tend to be happier and more successful, enjoying the process of striving towards
their goals, irrespective of the outcome. This suggests that organizations should foster
environments where employees feel their work is meaningful and aligned with their interests.
Managers are encouraged to provide a mix of intrinsic and extrinsic incentives, enhancing
recognition, employee growth, and making work engaging to promote motivation and
commitment.
Application: Organizations have begun to emphasize intrinsic motivations alongside
extrinsic rewards to enhance job satisfaction and performance.
Example: Atlassian, a software company, employs self-determination theory by granting
employees “FedEx Days,” where they have 24 hours to work on any project of their choice.
This approach nurtures autonomy and encourages creativity, allowing employees to pursue
interests that align with their personal values. The result is increased job satisfaction and
innovation, as employees engage more deeply with their work.
Goal Setting Theory
Developed by Edwin Locke, Goal Setting Theory emphasizes the importance of specific,
challenging goals in enhancing performance. This theory contends that clear intentions
toward a goal serve as a significant source of motivation. Research supports that specific and
challenging goals lead to higher performance compared to vague objectives like "do your
best."
Three critical aspects define Goal Setting Theory:
1. Goal Specificity: Specific goals serve as internal motivators. For instance, a trucker
aiming for 12 round trips weekly has a clear target, enhancing performance compared
to an employee with a generalized goal.
2. Goal Difficulty: Accepting challenging goals often results in higher performance.
While easier goals are generally more accepted, once a difficult goal is embraced,
employees are likely to exert significant effort.
3. Feedback: Receiving feedback is crucial for progress monitoring and guiding
behavior. Self-generated feedback is particularly effective, allowing employees to
gauge their performance independently.
Factors influencing the goals-performance relationship include goal commitment, task
characteristics, and national culture. Goal commitment is highest when individuals believe
their efforts will lead to success and when they participate in setting goals. Task
characteristics, such as task simplicity and independence, also affect the goals-performance
link. Moreover, cultural differences impact the effectiveness of goal-setting approaches. In
collectivist cultures, moderate goals might be more motivating than challenging ones.
Application: Organizations have leveraged goal-setting theory to enhance performance
through specific, challenging objectives.
Example: Intel employs goal-setting theory by utilizing the OKR (Objectives and Key
Results) framework. Employees set clear, ambitious goals (objectives) and measurable
outcomes (key results) each quarter. This process not only clarifies expectations but also
motivates employees to achieve challenging goals. Regular check-ins and feedback sessions
help maintain focus and adjust strategies, significantly improving performance outcomes.
Expectancy Theory
Victor Vroom’s Expectancy Theory is a widely recognized framework for understanding
motivation. This theory posits that the strength of an individual's motivation is determined by
their expectations of outcomes. It revolves around three relationships:
1. Expectancy: The belief that effort will lead to performance. If individuals doubt that
effort will result in effective performance, motivation diminishes.
2. Instrumentality: The belief that performance will lead to rewards. If rewards are
perceived as unrelated to performance, motivation wanes.
3. Valence: The attractiveness of the rewards to the individual. If the rewards do not
align with personal goals, motivation may be low.
Expectancy Theory explains why many workers remain unmotivated and perform only
minimally. For instance, if employees do not perceive a connection between effort and
performance due to inadequate performance appraisals or non-performance-based rewards,
their motivation will suffer. Additionally, if the rewards do not resonate with their personal
aspirations, motivation declines.
Application: Companies apply expectancy theory to ensure that employees see a clear
connection between effort, performance, and rewards.
Example: Amazon uses performance-based rewards to motivate its workforce. Employees in
warehouses are often given bonuses for meeting productivity targets, linking effort directly to
rewards. Amazon also provides clear performance metrics, ensuring that employees
understand how their efforts lead to outcomes. This transparency helps motivate employees,
as they can see how their work influences their compensation and career advancement
Financial Incentives
1. Financial incentives are directly monetary, i.e., money that can be measured in
monetary terms. Money has become a crucial component of our lives in today’s
socioeconomic climate, both in urban and rural areas.
2. Since money has purchasing power, it meets practically all our demands. Thus,
financial incentives and promotions positively impact employee engagement and
loyalty around the world.
3. Salaries, bonuses, retirement benefits, commission, benefit sharing or gain sharing,
promotions, medical reimbursement, and employee stock ownership are all examples
of financial advantages and rewards necessary for an organisation’s plan.
4. Every organisation that wants to recruit and retain employees, their management must
improve these financial incentives. Financial incentives can be given to them
individually or in groups to satisfy employees’ monetary or future security needs.
Non-Financial Incentives
1. Financial incentives sometimes may not be enough or adequate to motivate the
workers. Managers can combine financial incentives with other incentives to increase
employees’ productivity.
2. In addition to meeting monetary and future security demands, an employee has
psychological, social, and emotional needs that need to be satisfied. Fulfilling these
social, economic, and psychological requirements is vital for their motivation.
3. Non-financial incentives primarily focus on meeting these requirements and cannot be
calculated in monetary form. Personal attention, business vehicles, preparation and
career advancement, approval and appreciation, recognition are some examples of
non-financial incentives.
4. Furthermore, there is a possibility that a non-financial incentive will also include a
financial incentive. For example, when employees get a promotion in their job, this
increases their salary or bonus and fulfils their psychological demands because they
gain more authority and their position also rises in the organisation.

Extrinsic rewards are usually financial or tangible rewards given to employees, such as pay
raises, bonuses, and benefits.

1. They are extrinsic because they are external to completing the work itself and are
controlled by people other than the employee.
2. They can be essential in jump-starting initial buy-in or participation from people in
the initial stages of readiness to change (pre-contemplation or contemplation).
3. They usually have limited impact over time if they are not increased.
4. They are a powerful lever to reinforce and drive the behaviors that a culture values
most but wouldn’t be the norm without. (e.g. sales commissions, performance
bonuses, etc.)
5. Think of them as a defibrillator to a stopped heart. Their job is to get the heart beating
on its own.
Intrinsic rewards are psychological rewards that employees get from doing meaningful work
and performing it well.
1. They are intrinsic because they are internal to the work being done and achieving
them largely depends on one’s own effort.
2. They are essential to sustained behavior change.
3. Can be created by allowing employees to do more self-managing and adding value to
their work by innovating, problem-solving and improvising.
4. When someone achieves an intrinsic reward, there is a positive emotional reaction.
5. Think of them as a pacemaker for a heart that is already beating. Their job is to keep
the heart on-pace and in rhythm.

Biological Theories of Motivation in Organizational Psychology

Biological theories of motivation focus on innate physiological and neurological factors
driving behavior. In the organizational context, these theories help explain how employees’
natural needs and biological drives influence their motivation and performance. By
understanding these aspects, organizations can design workplaces that align with human
nature and foster productivity.
1. Drive-Reduction Theory
This theory, introduced by Clark Hull, posits that motivation arises from biological needs that
create internal tension, or "drives." The goal of behavior is to reduce this tension and restore
equilibrium, known as homeostasis. For example:
 Application in Organizations: In the workplace, hunger and thirst are basic drives
that can distract employees. Providing facilities such as cafeterias or water dispensers
ensures these biological needs are met, allowing employees to focus on tasks.
 Example: A tech company providing free snacks and beverages helps employees
maintain energy levels, reducing distractions caused by hunger or thirst.
2. Arousal Theory
Arousal theory suggests individuals are motivated to maintain an optimal level of arousal.
Too little arousal can lead to boredom, while too much can cause stress.
 Application in Organizations: Work tasks should be designed to match employees'
arousal needs. Engaging tasks stimulate employees who seek higher arousal, while
routine tasks suit those who prefer lower arousal levels.
 Example: A creative advertising agency might assign challenging projects to high-
energy employees to keep them engaged, while data-entry roles might suit employees
who thrive in structured, less stimulating environments.
3. Incentive Theory
Incentive theory emphasizes external rewards (e.g., money, recognition) as key motivators.
Biologically, rewards trigger dopamine release in the brain, reinforcing behavior.
 Application in Organizations: By linking performance to rewards, companies can
harness the biological response to incentives to drive motivation.
 Example: Sales teams often use performance-based bonuses. An employee earning a
bonus for exceeding targets experiences satisfaction due to the biological reward
response, encouraging continued high performance.
4. Maslow’s Hierarchy of Needs (Physiological Perspective)
Maslow’s theory, though psychological, incorporates biological needs as its foundation. The
hierarchy begins with physiological needs (e.g., food, water, shelter), followed by safety,
social, esteem, and self-actualization needs.
 Application in Organizations: Addressing employees’ basic and safety needs creates
a stable foundation for higher-order motivation.
 Example: Factories ensuring safe working conditions and protective gear satisfy
safety needs. Once these are met, employees can focus on teamwork (social needs) or
seek recognition (esteem needs).
5. Biological Basis of Stress and Motivation
Cortisol and adrenaline, hormones released during stress, influence motivation. Chronic
stress reduces motivation, while moderate stress can enhance focus and performance.
 Application in Organizations: Managers should maintain a balance, ensuring work
challenges are stimulating but not overwhelming.
 Example: A deadline-driven environment at a marketing firm may boost adrenaline,
motivating employees to meet targets. However, consistent overwork could lead to
burnout, requiring interventions like wellness programs.

HUMAN ATTRIBUTES
Cognitive Abilities and Intelligence
Intelligence, often referred to as "g," represents general cognitive ability. It includes
reasoning, problem-solving, and learning. Though IQ was historically used to measure
intelligence, the term is now less relevant.
Importance of "g" at Work - "g" is crucial in the workplace, especially for jobs that require
handling large amounts of information. Studies (Schmidt & Hunter, 2004) show that the more
complex a job is, the more predictive "g" is for job performance. However, high "g" alone
doesn't guarantee success if other skills like communication or interpersonal traits are
required (Tanner, 1965).
Can Intelligence Change? - The Flynn effect shows that intelligence is rising across
generations, possibly due to better healthcare, education, and environmental factors. While
intelligence tends to stabilize with age, generational gains are significant.
Specific Cognitive Abilities - Beyond "g," specific abilities like fluid intelligence, memory,
and visual perception also influence job performance (Carroll, 1993). For example, a
nutritionist relies more on knowledge, while a backhoe operator uses visual/spatial skills.
Studies (Lubinski et al.) show that specific cognitive abilities, such as math and spatial skills,
predict career paths—math skills lead to science careers, while verbal skills lead to the
humanities.
Working Memory and Multitasking - Working memory is another key cognitive ability,
especially for multitasking jobs. People with more working memory can handle multiple
tasks better (König et al., 2005). This insight may guide future job assessments.
Physical Abilities
1. Hogan (1991) proposed seven physical abilities that are sufficient for analyzing most
jobs. These abilities were compared to similar dimensions identified by Fleishman
and Reilly (1992), and there was a close match.
2. For example, Hogan combined Fleishman and Reilly’s "extent flexibility" and
"dynamic flexibility" into a single dimension called “flexibility.”
3. Hogan grouped her seven abilities into three higher-order physical categories:
muscular strength, cardiovascular endurance, and movement quality.
 4. Most physically demanding jobs require some combination of muscular tension,
power, and endurance, as opposed to just one of these elements. Likewise, flexibility
and balance often go hand-in-hand in such jobs.
5. Fairness in physical ability tests is a concern, especially for women and older
applicants, as tests may favor men due to their generally greater muscular strength and
stamina. Women, however, often excel in flexibility.
6. Employers may encourage applicants, particularly women, to train before tests, as
seen in cases like the firefighter position where discrimination lawsuits occurred.
7. Both men and women, regardless of age, can improve physical abilities through
exercise and training.
8. Many jobs require only a specific level of strength and endurance, beyond which
more doesn’t enhance performance. For example, lifting 100-pound boxes doesn’t
help in a job requiring only 25-pound lifts.
9. Employers often use physical ability tests to predict injuries, but these don’t always
relate to job performance. In one case, Armour Star was fined $3.3 million for
denying women jobs based on such a test (Business and Legal Reports, 2005a).
Sensory Abilities
1. Sensory abilities include vision, hearing, touch, taste, smell, and kinesthetic feedback
(awareness of body position).
2. Hogan incorporated kinesthetic feedback into "movement quality." Vision and hearing
are crucial for I-O psychologists, as employers often test these abilities.
3. The Americans with Disabilities Act (ADA) of 1990 restricts testing for physical or
sensory disabilities before a job offer. Carroll’s (1993) model of intelligence
challenged the separation of sensory and cognitive abilities, linking visual and
auditory perception to cognition.
4. Ackerman’s research (2002, 2005) also showed connections between perceptual speed
and cognitive abilities. In practice, sensation and perception are intertwined, with
people typically relying on verbal or behavioral cues to indicate that they’ve sensed
something.
Psychomotor Abilities
1. Psychomotor abilities, involving coordination, dexterity, and reaction time, are
essential in jobs like surgery, watch repair, and crane operation.
2. Fleishman and Reilly (1992) conducted significant work on these abilities, which are
often tied to visual or auditory perception and cognitive speed, linking them to
Carroll’s intelligence theory.
3. Research by Carroll and Ackerman blurs the line between cognitive and noncognitive
abilities, showing how motor control and perception interact with cognitive functions.
4. For I-O psychologists, understanding these interconnections helps assess how these
abilities combine to produce effective job performance.

JOB ATTITUDE AND JOB SATISFACTION

Attitudes are evaluative statements—either favorable or unfavorable—about objects, people,
or events. They reflect how we feel about something. For example, when you say “I like my
job,” you are expressing your attitude about work. Components of an Attitude:
 Cognitive: The cognitive component of an attitude is the beliefs and thoughts that we
have about something. For example, if you have a positive attitude towards your job,
you may believe that your job is secure, that you are well-compensated, and that you
have opportunities for growth and development.
 Affective: The affective component of an attitude is the feelings and emotions that we
have about something. For example, if you have a positive attitude towards your job,
you may feel happy, satisfied, and motivated when you are at work.
 Behavioral: The behavioral component of an attitude is the way that we act towards
something. For example, if you have a positive attitude towards your job, you may be
more likely to go the extra mile for your employer, to help out your colleagues, and to
stay at the company for a long time.
These components are interconnected, where cognition influences emotions, and emotions
can lead to actions.
 For example, if someone believes they were unfairly treated (cognition), they may
feel upset (affect) and take action (behavior). Understanding attitudes is crucial in
organizations, as they affect behaviors like job commitment and turnover.
 In organizational contexts, the behavioral component of attitudes is crucial, especially
in understanding outcomes like job commitment and turnover.
 If employees develop negative attitudes toward their organization, based on beliefs
and emotions, it could lead them to leave the company.
 For instance, research from the Netherlands suggests that organizational commitment
can be shaped by cognitive beliefs and previous behaviors, which then influence the
emotional component of an attitude. Understanding these three components helps
organizations better manage workplace dynamics and employee satisfaction.
Job Satisfaction
Job satisfaction, a positive feeling about a job resulting from an evaluation of its
characteristics.
A person with high job satisfaction holds positive feelings about the work, while a person
with low satisfaction holds negative feelings.
Lambert, Barton, and Hogan (1999) gave another definition of job satisfaction as “the
fulfillment or gratification of certain needs associated with one's work.”
Job satisfaction can be measured using two primary approaches: the single global rating and
the summation of job facets.
1. Single Global Rating: This method involves asking employees to respond to one
straightforward question, such as "All things considered, how satisfied are you with
your job?" Respondents typically rate their satisfaction on a scale, usually ranging
from 1 (highly dissatisfied) to 5 (highly satisfied). This approach is quick, easy, and
doesn’t require much effort from respondents. Despite its simplicity, research suggests
 that the single global rating is as valid as more complex methods in assessing overall
job satisfaction.
2. Summation of Job Facets: This method involves a more detailed evaluation.
Respondents rate their satisfaction with various aspects of the job, such as:
o The nature of the work itself (e.g., whether it’s engaging or challenging)
o Skills required for the job
o Supervision (quality of leadership and support from supervisors)
o Pay (current compensation)
o Opportunities for promotion (career advancement potential)
o Relationships with coworkers
o Organizational policies and culture
After rating these facets on a standardized scale, the scores are combined to produce an
overall job satisfaction score. This method allows for a more in-depth analysis, helping
managers identify specific areas where employees might be dissatisfied, and enabling more
targeted interventions to improve satisfaction.
Job satisfaction levels can fluctuate with economic conditions. For example, satisfaction in
the U.S. declined significantly during the 2007 recession, hitting a low in 2010. By 2014,
satisfaction had improved but remained below 1987 levels. Globally, satisfaction rates vary
by country, with higher rates in places like Mexico and Switzerland, while countries like
South Korea report lower satisfaction, possibly due to cultural factors like low autonomy and
rigid hierarchies. People tend to be more satisfied with their work, coworkers, and
supervisors than with pay and promotion opportunities.
Job satisfaction is influenced by several key factors:
1. Job Conditions: Interesting jobs that provide training, variety, independence, and
control often satisfy employees. Social factors such as feedback, support from
coworkers, and positive interactions with both colleagues and customers also play a
crucial role. VSP, a leading eye care benefits provider, maintains high employee
satisfaction through innovative HR practices.
2. Personality: Employees with positive core self-evaluations (CSE)—those who
believe in their worth and competence—tend to be more satisfied with their jobs. In
collectivist cultures, this positive relationship between high CSE and job satisfaction
is even more pronounced.
3. Pay: While pay is important, its impact on job satisfaction is limited after a certain
threshold of comfortable living is met. Ex - a Microsoft employee notes that the
“salary is excellent,” and they enjoy a flexible benefits package including a spending
account to claim back for hobbies, family care, dog-walking and more.
4. Corporate Social Responsibility (CSR): Employees often experience greater job
satisfaction when their personal values align with their organization’s commitment to
CSR, such as environmental sustainability or community service. For instance, many
organizations report that CSR programs improve employee happiness. However,
 mandatory participation in CSR activities, especially when they don't align with
personal interests, can lead to lower job satisfaction. For example, requiring
employees to volunteer at soup kitchens or Habitat for Humanity may not suit
everyone, leading to burnout or dissatisfaction. CSR initiatives need to be authentic
and meaningful to employees to be truly effective.
Job satisfaction leads to several important outcomes, including:
1. Job Performance: Numerous studies have shown that happy workers are more
productive. A review of 300 studies indicates a strong correlation between job
satisfaction and job performance, suggesting that individuals with higher job
satisfaction tend to perform better.
2. Organizational Citizenship Behavior (OCB): Job satisfaction is a significant
determinant of OCB, which encompasses behaviors such as promoting the
organization positively, assisting colleagues. Satisfied employees are more likely to
engage in these helpful behaviors due to trust and positive coworker relationships. For
example, individuals who receive positive feedback from peers about their OCB are
likely to continue such behaviors.
3. Customer Satisfaction: In the service industry, employee satisfaction is linked to
customer satisfaction. Satisfied employees tend to foster greater customer loyalty and
satisfaction. A notable example is Zappos, which incentivizes employee satisfaction
by offering a $2,000 bribe for dissatisfied employees to leave after training. This
approach ensures that employees are committed to providing excellent customer
service, as reflected in their high rate of repeat customers (75%).
4. Life Satisfaction: Job satisfaction is closely related to overall life satisfaction, with
evidence suggesting they mutually influence each other. Research indicates that job
satisfaction positively correlates with life satisfaction. For instance, studies in
Germany show that life satisfaction can decrease significantly with unemployment,
highlighting the importance of job happiness in overall well-being.

The Impact of Job Dissatisfaction

Consequences of job dissatisfaction is the EVLN model
The EVLN paradigm, first proposed by Hirschman (1970) suggests that when employees face
declining organizational quality, they engage in communicative behaviors (EVLN: Exit,
Voice, Loyalty, Neglect) to signal issues. These responses can provide valuable feedback to
help management address problems effectively.
EXIT
1. This response involves leaving the organization, either by seeking a new job or
resigning. Researchers measure this through individual terminations and collective
turnover, which represents the loss of employee knowledge and skills to the
organization.
 2. Example: An employee who consistently faces a hostile work environment and is
dissatisfied with their job decides to actively search for a new job in a different
company.
3. Trigger: Prolonged discontentment, severe conflicts, or a breach of expectations
within the organization
VOICE
1. The voice response entails actively and constructively trying to improve job
conditions. This may include suggesting improvements, discussing issues with
management, or participating in union activities.
2. Example: An employee who is unhappy with their workload approaches their
supervisor with suggestions on how to improve efficiency and workload distribution.
3. Trigger: A desire to make constructive changes or address concerns within the
existing job or organization.
LOYALTY
1. Loyalty is a passive but hopeful approach where employees wait for conditions to
improve. They may defend the organization in the face of criticism and trust that
management will address their concerns.
2. Example: A long-term employee who has faced challenges in the workplace remains
loyal to the company by patiently waiting for issues to be resolved and continuing to
support the organization.
3. Trigger: Belief that the organization will address the problems over time or trusting in
the organization's overall mission and values.
NEGLECT
1. This response involves passively allowing conditions to deteriorate, leading to
behaviors like absenteeism, reduced effort, and increased errors.
2. Example: An employee who feels undervalued and ignored at work gradually reduces
their effort, resulting in a decline in the quality of their work.
3. Trigger: Frustration and disillusionment, leading to passive disengagement and
declining performance.

Counterproductive Work Behavior (CWB) refers to harmful actions by employees that

negatively impact organizations. Examples include substance abuse, stealing, gossiping,
absenteeism, and tardiness. CWB often stems from job dissatisfaction, leading frustrated
employees to engage in these destructive behaviors.
Employees may choose different forms of CWB based on personal circumstances. For
example, one employee might quit while another might misuse work time. This highlights
that managing only specific behaviors without addressing job dissatisfaction may not resolve
the underlying issues.
Mitigating CWB: Managers can address CWB by: Polling employee attitudes to identify
areas for improvement, Measuring CWB through self-reports or feedback from colleagues,
Fostering strong team dynamics and integrating supervisors into these teams.
Absenteeism: There is a moderate relationship between job satisfaction and absenteeism.
Employees are more likely to take sick days when alternatives jobs are plentiful.
Organizations with generous sick leave policies can see higher absenteeism rates overall.
Turnover: The relationship between job satisfaction and turnover is stronger than that with
absenteeism. Low job satisfaction often predicts employees’ intent to leave. The workplace
climate can influence this, as a culture of dissatisfaction can lead to higher turnover rates. Job
dissatisfaction translates more into turnover when job opportunities are plentiful, especially
for employees with high human capital (education and skills).
Embeddedness: Employees who are well-connected within their workplace (embedded) are
less likely to leave, particularly in collectivist cultures where group ties are strong. This
connection can help mitigate the effects of dissatisfaction and reduce turnover likelihood.
PERSONALITY AND VALUES
The relationship between an individual’s personality and values and their fit within the
workplace has evolved. Earlier, organizations focused on matching personalities to specific
jobs. Now, the focus has broadened to include how well an individual's personality and values
align with the organization’s culture. For example, At Tesla, known for its emphasis on
innovation, employees with a passion for pushing boundaries and taking risks may positively
influence group creativity.
Person–Job Fit
John Holland’s personality–job fit theory emphasizes matching job requirements with
personality traits. Holland identified six personality types (e.g., realistic, investigative,
social) and argued that job satisfaction and turnover are influenced by how well these types
match the job. For example, a realistic person might thrive in a mechanical or technical role.
There are also cultural differences in this concept. In individualistic countries, tailoring jobs
to fit individual personalities increases satisfaction, while in collectivistic cultures, it is less
valued as workers expect predefined job roles.
Person–Organization Fit
Person–organization fit focuses on how well individuals' personalities and values align with
an organization's culture. For instance, extraverts may thrive in team-oriented and dynamic
cultures, while agreeable individuals fit better in supportive environments. Research shows
that when there’s a good match between a person’s values and the organization’s culture,
employees experience higher job satisfaction, lower turnover, and greater commitment.
In today's job market, an organization’s online presence (like its website) is a key tool for
attracting employees, especially millennials, who prioritize factors such as work-life balance.
Organizations that emphasize usability and clear policies in their online presence are more
likely to attract applicants who align with their culture.
What is Personality?
Personality is defined as the sum of ways in which an individual reacts to and interacts with
others. It consists of measurable traits that describe growth and behavior, often organized into
overall traits that explain how individuals think and act.
Measuring Personality
Personality assessments are commonly used in organizations to aid in hiring decisions. These
assessments often involve self-report surveys where individuals rate themselves on specific
factors (e.g., "I worry about the future"). A common issue with these surveys is that people
may overestimate positive traits if they know the results will be used for employment
decisions. Cultural influences also affect self-assessment, with people in individualistic
cultures (like the U.S.) tending toward self-enhancement, while those in collectivist cultures
(like China and South Korea) often practice self-diminishment.
Observer-ratings surveys, where coworkers or others assess the individual, can provide a
more objective view. Research suggests that combining both self-reports and observer reports
offers a better prediction of job success.
Personality Determinants: Heredity and Environment
Heredity and Environment
Personality is influenced by both heredity (genetic factors) and the environment. Heredity
plays a significant role, affecting traits like physical stature, temperament, and energy
levels. For example, an individual's temperament may be strongly influenced by their
biological parents' genetic makeup. Research shows that 40% of personality is hereditary,
while 60% is shaped by environmental factors.
Personality Changes
Personality can change over time, particularly traits like dependability, which tend to
increase as individuals take on responsibilities such as starting families or careers. However,
individual differences in these traits remain consistent, meaning while most people might
become more dependable, their rank in relation to others stays similar.
Personality Frameworks: MBTI and Big Five Model
Myers-Briggs Type Indicator (MBTI)
The Myers-Briggs Type Indicator (MBTI) is a personality assessment that classifies people
into 16 personality types based on four dimensions:
1. Extraverted (E) vs. Introverted (I): Extraverts are sociable and assertive, while
introverts are quiet and shy.
2. Sensing (S) vs. Intuitive (N): Sensing individuals focus on details and practicality,
while intuitives rely on big-picture thinking.
3. Thinking (T) vs. Feeling (F): Thinkers use logic, while feelers rely on emotions and
values.
4. Judging (J) vs. Perceiving (P): Judgers prefer structure, while perceivers are
spontaneous.
For instance, INTJs are original thinkers and determined, making them great visionaries,
while ESTJs are organizers who excel in business roles, being realistic and logical. The
MBTI is widely used for self-awareness and career guidance, though its accuracy for job
performance prediction is questioned.
MBTI is used widely across various organizations, including 89 of the Fortune 100
companies, and is taken by over 2.5 million people annually. However, the validity of the
MBTI has been questioned, with some like Professor Dan Ariely humorously suggesting it is
as useful as a horoscope. The MBTI’s limitations include forcing individuals into binary
categories and producing inconsistent results when retaken. Furthermore, it does not reliably
predict job performance, although it can be helpful for self-awareness and career guidance.
Big Five Personality Model
The Big Five Personality Model is a widely supported framework with five dimensions that
describe most human personality variations:
1. Conscientiousness: High scorers are responsible, organized, and persistent (e.g.,
someone who reliably completes tasks on time).
2. Emotional Stability (Neuroticism): Emotionally stable individuals are calm and self-
confident, while those with high neuroticism are anxious and insecure.
3. Extraversion: Extraverts are sociable and assertive, while introverts are more
reserved.
4. Openness to Experience: Open individuals are creative and curious, while low
scorers prefer routine and familiarity.
5. Agreeableness: Highly agreeable people are cooperative and trusting, while low
scorers may be antagonistic.
For example, Mary Barra, CEO of General Motors, scores high on all five dimensions,
which helped her become the first female CEO of a major global automaker.
Conscientiousness at Work - Conscientiousness is the strongest predictor of job
performance. Highly conscientious employees develop greater job knowledge and maintain
high performance even under abusive supervision, as shown in a study conducted in India.
They engage more in organizational citizenship behaviors (OCBs) and are less likely to
exhibit counterproductive work behaviors (CWBs). A study of 313 CEO candidates in
private equity firms found that traits like persistence and attention to detail were critical for
success. However, extremely conscientious individuals can be overly perfectionistic, which
may hinder creativity and collaboration.
Emotional Stability at Work - Emotional stability correlates strongly with life and job
satisfaction. Individuals with high emotional stability adapt better to workplace demands and
experience less burnout and fewer intentions to quit. In contrast, neurotic individuals may
engage in CWBs and struggle with work–family conflict. For example, those with high
neuroticism are often more susceptible to turnover and less likely to contribute positively to
the organization.
Extraversion at Work - Extraverted individuals perform well in roles requiring
interpersonal interaction. They are assertive, socially dominant, and show high job
satisfaction. Their assertiveness often leads to leadership emergence, but they can also come
across as self-aggrandizing, which may be detrimental in non-social roles.
Openness at Work - People high in openness are creative and innovative, making them
effective leaders. They cope well with organizational change and experience less work–
family conflict. While openness does not correlate with initial job performance, it helps
maintain performance over time, contributing to long-term adaptability.
Agreeableness at Work - Agreeable individuals are typically well-liked and excel in
interpersonally oriented roles, such as customer service. They tend to experience less
work–family conflict and engage in OCBs more frequently. However, high agreeableness
may be associated with lower career success, as agreeable individuals may undervalue their
marketability and hesitate to assert themselves.

The Dark Triad

A constellation of negative per sonality traits consisting of Machiavellianism, narcissism, and
psychopathy - Dark Triad. Although these traits are often considered negative, they are not
clinical pathologies; they may manifest more strongly under stress, potentially derailing
careers and personal lives.
Machiavellianism
Machiavellianism refers to a pragmatic personality trait characterized by emotional distance
and a belief that the ends justify the means. For example, Hao, a young bank manager in
Shanghai, exemplifies this trait with his aggressive tactics and unapologetic attitude towards
his climb up the corporate ladder. Individuals high in Machiavellianism are adept at
manipulation, often winning in the short term but struggling to maintain positive
relationships, ultimately hindering long-term success. Research indicates that high-Mach job
seekers are less influenced by an organization's corporate social responsibility (CSR) efforts
and that their ethical leadership behaviors may not engage followers effectively.
Narcissism
Narcissists, like Sabrina, who seeks attention and has grandiose self-views, exhibit traits
such as a sense of entitlement and lack of empathy. While narcissism is linked to increased
counterproductive work behaviors (CWBs) in individualistic cultures, it is less pronounced
in collectivist settings. Narcissists often believe they are overqualified for their roles and may
ignore performance feedback that contradicts their self-image. Despite these negative traits,
they can be charismatic and are often selected for leadership positions, with moderate levels
of narcissism positively correlating with leadership effectiveness. Research shows that
narcissistic CEOs engage in more acquisitions and generate higher turnover among managers.
Psychopathy
Psychopathy in organizational behavior refers to a lack of concern for others and an absence
of guilt or remorse. While the literature shows mixed results regarding the correlation
between psychopathy and job performance, some studies indicate that it may be associated
with antisocial behaviors and the use of manipulation and bullying. High scores on
psychopathy traits may enable individuals to gain power but often hinder their ability to
utilize it productively.
Values in Organizational Behavior
Values are fundamental convictions that inform what individuals believe to be right or wrong,
good or bad. For example, questions like "Is capital punishment right or wrong?" or "Is a
desire for power good or bad?" illustrate the value-laden nature of ethical considerations.
According to definitions, values represent preferences for specific modes of conduct or end-
states of existence, highlighting the judgmental aspect of values as they reflect a person's
beliefs about what is desirable.
Attributes of Values
Values possess two main attributes:
1. Content Attribute: Indicates that a particular mode of conduct or end-state of
existence is important.
2. Intensity Attribute: Specifies the importance of that value in a person's hierarchy.
This hierarchy, or value system, includes values like freedom, pleasure, self-respect, honesty,
obedience, and equality. For instance, an individual may rank self-respect above obedience,
influencing their decisions and actions accordingly.
Importance and Organization of Values
Values provide a foundation for understanding attitudes and motivation within an
organization. They shape perceptions and influence what individuals consider appropriate
behavior. For example, if someone believes that performance-based pay is the right approach
but joins an organization that rewards seniority, they may feel disappointed, leading to job
dissatisfaction. Their expectation that effort should lead to increased pay will clash with the
organization's policies, affecting their motivation and behavior.
Terminal versus Instrumental Values
Milton Rokeach argued that we can separate them into two categories.
Terminal Values:
1. Terminal values are the ultimate goals an organization is trying to achieve.
2. They refer to desirable end-states of existence, the goals a person would like to
achieve during his or her lifetime.
3. For example, zero poverty around the world, quality education for everyone, world
peace, prosperity and economic success, freedom, health and well-being, world peace,
and meaning in life.
4. One company that thrives by its culture is Ben&Jerry's. This ice cream company has
set an ambitious mission to create delicious ice cream and make the world a better
place. It's one of the company's core values, and they allocate 7.5% of their pretax
profit to the Ben & Jerry's Foundation that improves the world: climate change (A
world of beauty) & inequality (Equality-equal opportunity for all) etc.
Instrumental values:
1. Instrumental values are the ones someone or an organization uses to reach terminal
values. For example, wealth redistribution, discipline, economic education, etc.
 2. They deal with views on acceptable modes of conductor means of achieving the
terminal values.
3. These include being honest, sincere, ethical, and ambitious. These values are more
focused on personality traits and character.
4. For example, the instrumental value which can help in achieving the terminal value of
‘true friendship’ is being ‘responsible’. Similarly, the instrumental value ‘independent’
can help in achieving the terminal value ‘freedom’.
Generational Values in the Workforce

Researchers categorize work values into generational groups to capture shared perspectives
within the U.S. workforce. These labels help us understand trends, but they do not reflect the
beliefs of all individuals within a generation. Employees are segmented based on the era they
entered the workforce, typically between ages 18 and 23. However, research supporting these
classifications has limitations. Early studies had methodological issues, making it hard to
determine genuine differences among generations.

For instance, while leisure values have increased from baby boomers to millennials and work
centrality has declined, research does not support the idea that millennials are more altruistic
in their work values.