INDUSTRIAL AND ORGANIZATIONAL

PSYCHOLOGY

I/O

Where do you see its implementation in Pakistan?

What is I/O Psychology?• Scientific study of human side of an organization• Research and practice oriented• Evidence-based field (difference from other discipline)• Applied psychology• Eclectic in nature

– Experimental psychology– Psychological testing– Engineering– Management– Social psychology– Sociology

Industrial (personnel) Psychology

Management perspective of organizational efficiency through appropriate use of human resources or people.

Concerned with– Efficient job design– Employee selection– Training– Performance appraisal

Organizational Psychology• Developed from human relations movement in

organizations• Focus on individual employee

– Employee behaviour– Employee attitudes– Job stress– Supervisory practices– Enhancing well-being in work-place

• Much overlapping in two forms existe.g., motivation is topic of interest for both

Settings of I/O• Research and practice

• Efficient working of organizations

• Causes of work related behaviour

• Problem-solving approach

• College and university based researches implemented in organizations

• Firms, government, military, private corporations• Consulting firms

• Academics

Historical Background

• Roots in 1800s and early 1900s

• Roots based in experimental psychology– Early work on job performance and organizational

efficiency– Hugo Munsterberg (German) --- personnel selection

and use of psychological tests– Walter Dill Scott --- Psychology of advertising

Cont…

• Fredrick Winslow Taylor (engineer) --- (1911) employee productivity, Scientific Management, for handling production workers in factories, guide organizational practices

– Job analysis (optimal way of doing tasks)– Selection as per employees characteristics --- for

this existing employees’ characteristics should be studied

– Training– Rewarded for productivity

Cont…• Frank and Lillian Gilberth (engineer and

psychologist) --- (1915) how people perform task

– Time and motion study– Roots for field of human factor --- how best to

design technology for people.– Designing consumer products

Cont…

• World War I --- US military

– Robert Yerkes (1917) led psychologists in offering services

– Army Alpha and Army Beta tests for mental ability– For recruitment and placement– Mass-testing then in educational and employment

setting like SAT

Cont…

• 1921 Penn State University --- Bruce V. Moore

• Consultants

• Psychological Corporation (Harcourt Assessment; 1921) --- James McKeen Cattell

• Hawthorne Studies --- Western Electric Company

• World War II

• APA --- 1944 (14 Division Industrial and Business Psychology)

Cont…

• Arthur Kornhauser --- effect of work condition on employee’s mental health– Occupational health psychology

• 1970 APA changed name as Division of Industrial and Organizational Psychology– Society of Industrial and Organizational Psychology

(SIOP)– Civil Rights Act (1964)– American with Disabilities Act (1990)

HUMAN RESOURCE MANAGEMENT

JOB ANALYSIS

• “An accurate picture of details of job and characteristics of the people who will do that job”.e.g., what police officer do in the whole day job?

– Systematic by specifying the procedure

– Job is broken into small units

– Written report (of job description)

ApproachesJob-oriented approachDefining tasks and SOPs in hierrarchical order defining

(Brannick et al., 2007)1. Position2. Duty3. Task4. Activity5. Element

Person-oriented approach(KSAOs)KnowledgeskillsAbilityOther characteristics

Need of Job analysis

• Career development– Career ladder– Competency system

• Legal issues– Defining essential functions

• Performance appraisal– e.g., Critical incidents (poor to outstanding)

• Selection (Assessment)• Training

– Evaluating required KSAOs and KSAOs of applicants– Target deficiencies

• Vocational counseling (assessment based)• Research

Managing steady flow of new people in organization• On newly created positions • To replace those who have left organization

– Planning the need for new employees– Getting appropriate people to apply for job (Recruitment )– Deciding whom to hire (selection)– Making selected people to take the job (hiring and training)– Legal issues

I/O Psychologist may be involved in– Application form– Testing (is it reasonable?)– Assessment should be relevant and predictive

PLANNING HUMAN RESOURCE NEEDS

• Careful planning to fill the vacancies is needed

• Focus on organization’s needs for people and potential people to hire

• Establishment list

Cont…

• Organizations change and expand e.g. use of robots– Reduction in one type of employee and increase in other

– Hire new or give training to old

– Feasibility plan (cost and benefit analysis)

– Selection vs. training approach

– Information about ‘demand and supply’ of people

– Change in demand of jobs with change in needs

Recruitment• Challenge is to have ample people to apply for job

• In undersupply situation --- attract right people for the job (e.g., prof. in univ.)– Ads in newspaper– Website (25% higher use than others)– extensive recruiting by going in colleges and universities

(e.g., job fair; Fullbright)– Employee referrals (help in better performance, remain on

job for longer period, more satisfied and realistic expectations, prescreen, recommended as fit)

– Agencies– Walk-in

Cont…

• Clearly define KSAOs for the job --- help in where to look for– e.g., computer skills in univ. and manual

employment in high unemployment zone

• Marketing organization and making it attractive for applicants e.g.,– Pay package and rewards– Career development– Work environment– Repute of organization

Selection of Employees

• Lucky organizations --- good number of applicants

• I/O Psychologists procedures work best when there are several applicants– Mathematical and statistical procedures

• Selection process– Interviewing applicants and decide subjectively– Scientific Method

Cont…

• Scientific Method– Job analysis --- consider legal issues and hiring

people with KSAOs

– Defining criteria --- def. of good employee based on job performance

– Define Predictors --- KSAOs

– Validate predictors --- concurrent and predictive

– Cross-validate

Getting employees to accept job

• Fair recruitment or treatment in selection

• Salary offers– Cafeteria benefit program

• Behaviour of recruiters– Truthfulness and honest– Realistic job preview (RJP)

Training

For old and new employees

Lifelong process

• Need assessment (like job analysis)– Organization level– Job level– Person level

• Objectives– What to achieve after training?– Define criteria of training

Cont…

• Training design– Transfer of training --- Expectation for learning to

apply knowledge – Model of Baldwin and Ford (1988) factors

affecting learning and transfer of training

1. Trainee characteristics– Ability and motivation– Effect training outcome– Varied time required to learn

Cont…

2. Design Factors– Feedback– General principles– Identical elements– Over-learning --- automaticity– Sequence of training --- massed or spaced,

Distributed or whole

3. Work environment– Support and supervisory attitude– Opportunity for applying new learning

Cont…

4. Training methods– Audiovisual instructions– Auto-instructions– Conference– Lecture– Modeling– On job training --- apprenticeship– Role-playing– Simulation– Electronic training– Mentoring– Executive coaching

Cont…• Delivery of training

– Subject matter experts

• Evaluation of training program– A type of research– Define criteria --- training level vs. performance

level, reaction criteria, learning criteria, behaviour criteria, result criteria

– Choose design – pre and posttest, control group– Choose measures for criteria– Collect data– Analyze and interpret

Work Environment

Work environmentPositive and negative effects on performanceStructured or unstructured

Job characteristics• Job Characteristic Theory (Hackman & Oldham, 1980)

– Interesting and enjoyable tasks maintain motivation and high performance

– Job characteristics lead to three psychological states (motivating level of job)

1. Skill variety, task identity, and task significance (meaningfulness of task)

2. Autonomy --- leads to responsibility

3. Feedback --- leads to knowledge of result

Cont…

• Motivation Potential Score (MPS) for a jobSkill variety + task identity + task significance / 3 X Autonomy X Feedback

• High MPS --- better job performance and satisfaction (mixed results)

• Moderating role of personality trait of employee

– Growth Need Strength (GNS)

– More GNS --- More impact of motivating job on performance and psychological states

– Certain type of people respond to high MPS jobs

Cont…

Incentives • piece-rate system (reinforcement theory)

e.g., sales people or factory workers, or for attendance

– Peer pressure negative plays role

– Effective if employees capability to produce.

– Incentives will not work if employees are working at their limits

– Something that people want

– Will not work if there are physical or psychological constraints (e.g., no customer)

Cont…Design of technology

• Physical features of job setting

• Field of human factor (ergonomics, engineering psychology)

• Make job safer and easy to accomplish– Displays and controls

• Presentation of information (auditory or visual; quick and accurate)

• Manipulation of tools/machine (controls based on purpose and situation; fine movement or force; logical placement; kinesthetic based or touch for vital knobs; feedback for a function done; logical direction of movement)

Cont…

• Computer-human interaction– Communication with computer --- mental model– Training and appropriate system design

• Computer-supported cooperative work (CSCW) --- meeting electronically

– Email– videoconferencing

Hawthorne studies --- Highlighted social factors

Counter-effects of technology making the job easier– Boredom and stress– Passive than active– Loss of control – Job dissatisfaction and poor emotional well-being

Cont…

• Organizational constraints

• Effect performance negatively– physical environment– Supervisory practices– Lack of needed training, tools, equipment, and time

Cont…

Physical ConditionsOccupational health Psychology (new emerging

field)• Accidents and safety• Infectious diseases • Repetitive actions or lifting• Toxic substances• Loud noise• Workplace violence• Work Schedules (shifts and hours)

Cont…

• Occupational stress

• Work-family conflict

• Burnout

CONSUMER BEHAVIOUR AND MARKETING

?

What do you purchase?

How and where you spend your money?

How you spend your time and resources?

Consumer behaviour

• Activities that people undertake when obtaining, consuming, and disposing of products and services.

• A study of “why people buy?”

• Now consumption analysis --- even after purchase

• Help marketers to devise strategies to attract consumers

Decision what you want to buy

Other products to buy

From where to buy

What you pay

Transportation of product to home

Get rid of left over

How much you throw

Recycling

reselling

How you use product

Storing

Who use

How much you consume

Coming upto expectations

obtaining consuming disposing

MotivationPast experiencesOpinion/ attitudes

PersonalityEmotions

Resourcesknowledge

ServicesConvenienceBrand/ loyalty

AdvertisingPackaging

Product/quality/availabilityPrice

Store ambience

Consumer influences Organizational influences

MarketingProcess of planning and executing the conception,

pricing, and distribution of ideas, goods, and services to create exchanges that satisfy individual (consumer) and organizational objectives.

Organization must understand consumer needs and how they consume products

A product must serve what it’s intended use

Chasing precious consumer

Which ad do you like and how it effected your purchasing decision?

Why you have voted for a particular party?

Increased consumers’ influence• Customer is center piece• Consumer rules

– Electing through vote (money) for any retailer and organization

– Revenue generation– New jobs created– Marketers focus how to please ruler

• Marketing is transforming or changing the organization to have what people will buy.

• “Consumer can fire us” (Sam Walton; Wal Mart world’s largest retail organization)

– Recruit and keep customer

Educate and protect consumer

• Buying wisely --- Deception

• Money saving strategies

• Create awareness --- health and policy– Methods to give information and assistance (e.g. eating,

tobacco consumption, products causing cancer)

• Problems of over and under consumption– Research in motivation and behaviour

Formulate public and personal policy

• Public policy is based on needs– E.g., family planning, energy conservation

• Personal policy– Effect on life-style– How you behave, your values and beliefs, how you

live life– Effects economic quality of life– Consumer differences in spending and saving

Evolution of consumer behaviour Supply Chain

Wholesaler

manufacturer

retailer

consumer

Manufacturing orientationTill W W 2

Marketing orientation

Sellers orientation1970-2000

consumer orientation2000+

Watson’s Unique Selling Proposition

Behaviourismmotivation

positivismpost-modernism

Underlying Principles• Consumer rules

• Consumer is global (needs are global, culture)

• Consumers are different and alike

• Consumer rights (Consumer Bill of Rights)– Fraud and manipulation

• Understand consumer

• Marketing strategy