organizational psychology - final paper

8/3/2019 Organizational Psychology - Final Paper

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Running head: ORGANIZATIONAL PSYCHOLOGY 1

Organizational Psychology Applied

Jennifer L. Johnson

University of the Rockies

ORG 5011: Survey of Organizational Development & Leadership II

February 26, 2012

Dr. Kate Andrews


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ORGANIZATIONAL PSYCHOLOGY 2

Abstract

Organizational psychology is evolving in the 21st century. Organizational psychology concepts

are based on leaders and an organization understanding what motivates individuals; the attitudes,

behaviors and feelings that drive behaviors which lead to job satisfaction. Individual well-being

and perception of justice with regard to fairness and diversity affect job performance. Successful

execution of organizational and team process impact the ability for organizational strategic

development.


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Organizational Psychology Applied

As a management consultant and emerging industrial and organizational psychologist,

understanding the fundamental concepts of organizational psychology is pivotal to effectively

leading organizations in the 21st century. Understanding how motivation, attitudes, emotions,

stress, well-being, fairness, justice affect individuals both personally and professionally will

equip me as a leader to effectively lead teams and organizations to achieve common goals with

positive outcomes.

Motivation Goal Setting Theory

Motivation is about choices (Landy & Conte, 2010). Motivation involves the variance of

intensity, persistence, and quality of those choices and consequential behaviors (Landy & Conte,

2010). Over the history of industrial and organizational psychology metaphors have evolved to

describe motivational theories. From the 1930s-1960s, person as a machine was a reactionary,

involuntary approach lacking conscience awareness to actions (Landy & Conte, 2010), where

individuals functioned and behaved as machines. Starting in 1960 and spanning through the

1990s, the motivational behavior evolved from person as scientists, where individuals thoughts

were reflective, not automatic and rational (Landy & Conte, 2010). Through the decades the

scientist metaphor shifted, including the notion of expectancies to drive behavior. Research

psychologists Kahneman and Tversky (1982) began to identify a limitation in rationality of the

person as a scientist model, due to the inability of individuals to perfectly rationalize a behavior.

Recognizing limited rationality made way for motivational theories to consider the influence of

emotions and society on decisions and in effect motivation. The person as judge metaphor

gives way to the modern motivation theory where individuals to proactively seek information


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others are responsible for, assessing the associated positive or negative events; and intended

actions in order to make a decision (Landy & Conte, 2010).

The notion of intentional behavior demonstrated in person as judge, introduced more

modern approaches to work motivation, where the person as intentional approach is represented

by the goal setting theory (Locke & Latham, 2002). Work motivation includes behavior driven

by goals (Landy & Conte, 2010). The goal setting theory is driven by the motivational force of

the individual who identifies specific, challenging goals to increase performance. The goal

theory has evolved to include the feedback loop of the understanding results of a goal and the

transitional periods between the state of goals, which offers the individual to adjust or perform

control on their outcomes.

Goals set standards for personal satisfaction with performance (Locke & Latham, 2006).

Accountability in the system does provide intrinsic motivation of individuals to perform, adjust

and continue to drive to better outcomes. Accomplishing higher or harder goals can motivate

behavior, as feelings of success and the ability to grow in ability (Locke & Latham, 2006), create

positive behaviors. In consultant performance management systems, consultants typically have

more complex, team based tasks, objectives and outcomes.

Given the modern work environment is changing, the goal setting theory, needs to be

further explored to look at more cognitive reward systems that account for variables such as

knowledge and skills (Locke, 2001). Societal and perceptions of fairness could become an issue

if the goal setting theory does not expand to a larger cognitive model. Generation X and Y

workers may be motivated by different goals, however in the modern workplace; team constructs

in consulting firms have become a standard operating model and practice.

Attitudes and Emotions Job Satisfaction


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Life is wrought full of strong emotions. Emotions individuals experience at the

workplace have spheres of influence in both work and non-work behavior (Landy & Conte,

2010). To understand emotions in the workplace is not a trivial task for organizational

psychologists and requires understanding the complexity of work, and the range of behaviors that

include attitude, emotion and mood.

Job satisfaction is an attitude or emotional state as a consequence of an individuals job

experience (Landy & Conte, 2010). The work motivation metaphor and job satisfaction have

been closely linked (Landy, 1989). Christen, Iyer and Soberman (2006) meta-analysis identified

a positive effect of job performance on job satisfaction. Therefore individuals who are motivated

to perform are more likely to experience a higher level of job satisfaction.

The implications for industrial and organizational psychologists, along with

organizational consulting firms are they must determine effective ways to motive and retain

talented individuals (Christen, et al. 2006). Locke (1976) identified a number of precursors to job

satisfaction that includes effects (work, reward, and working conditions) and agents (self,

management, organization, and benefits). Given the 21st century workplace complexity, Landy

and Conte (2010), identified for industrial and organizational psychologists additional variables

to consider which included attitudes in a diverse environment, satisfaction with production

models, job security and organizational sense of urgency.

In addition to precursors, there are social, demographic, and environmental variables as a

consequence of job satisfaction that could create issues for organizations (Landy & Conte, 2010)

which consulting firms must be aware. Job satisfaction has been linked to fewer occupational

injuries, which reduce the risk of lawsuits (Barling, Kelloway, and Iverson, 2003). Harter,

Schmidt and Hayes (2002) meta-analysis identified a positive correlation between employee


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satisfaction and customer satisfaction, productivity, profit, safety and employee retention, which

increases employee perception of fairness mitigating pursuit of ethical legal action.

Stress and Worker Well-being Consequences of Stress

Stress is a fundamental part of life. Hans Seyle, (1956), known as the father of stress

(Landy & Conte, 2010), was first credited as defining stress as the non-specific response of the

human body to any demand made on it. A more modern day definition defined by Erkutlu and

Chafra (2006) identifies stress as a reaction of individuals to demands imposed. I-O

psychologists have spent a significant amount of efforts researching work stress causes

relationships to an individuals health and how to develop effective coping mechanisms to

manage stress.

Stress related to work influences both organizations and individuals, so it is important for

I-O psychologists and management consulting organizations to understand the implications.

According to the American Heart Association (2006) Americans paid over $400 billion for

medical and disability related costs of heart disease. Lawsuits have become a significant cost

associated with stress, according to Landy and Conte (2010) employers spend more than $700

million annually to replace individuals from age 45-65 due to heart disease related to stress.

The link between occupational stress and adverse health outcomes are clear (Cooper et.

al, 2001). Individuals experience stressors that can be behavioral, mental or physical in nature

while organizational stress issues include performance, job satisfaction and commitment

(Beheshtifar, Hoseinifar, & Moghadam, 2011). Understanding the negative consequences of

stress is important for individuals to understand in order to identify stressors in their environment

and organizations as well as organizational psychologists to develop stress prevention plans.

Behavioral consequences of stress include a detrimental effect on processing of information as it


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relates to decision making; negative job performance on highly complex tasks (management

consultants routinely engage in); and the propensity for counterproductive work behaviors with

decreased motivation (Landy & Conte, 2010). Psychological consequences of stress include

burnout, anxiety, fatigue, personal and professional job dissatisfaction (Landy & Conte, 2010).

Physiological implications can be very disruptive and life threatening to include heart disease

and stroke (Landy & Conte, 2010). Organizations and I-O psychologists must understand the

how the impact of changes in job, workplace environment and organizational behavior increases

individuals work-related stress in order to devise effective training plans, identify and remove

work place stressors that have a negative effect on workers physical and mental well-being.

Given the dynamic, complex work environment, there is an increased risk of stressors that could

lead to a host of legal and ethical issues if not addressed on the individual and organizational

level.

Fairness and Diversity Interactional Justice

Justice and fairness are used to qualify an exchange in a relationship (Landy & Conte,

2010).To determine fairness in the workplace, employees look at expectations the organizationsmeet, leadership behavior and level of their trustworthiness along with the policies implemented

effectively (Landy & Conte, 2010). Organizational justice is comprised of organizational

processes, procedures, outcomes and personal interactions (Landy & Conte, 2010).

Lau (2007) identified justice as a singular entity that may be influenced by a number of

attributes. Three types of organizational justice accepted in theory in research are distributive,

procedural and interactional (Landy & Conte, 2010). The individual forms of justice have

unique characteristics, such as interactional justice is affected by work experience where

procedural justice is influenced more by organizational business needs (Lau, 2007). Interactional


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justice deals with emotions and perceptions an employee feels they are respected as well as

treated by the organization (Landy & Conte, 2010). The extent of which an individual feels they

are being treated fairly will impact their behavior and attitude. Landy & Conte (2010) indicate an

individuals perception of justice affect organizational citizenship, respect for leaders, thoughts

of quitting, tendency to file lawsuits, and job performance.

Organizational psychologists and management consulting organizations need to spend a

considerable amount of time pursuing additional research on employees perception of fairness

in the performance management process. The subject of fairness in performance appraisals is

one of the most common feelings of injustice among workers (Landy & Conte, 2010). The

United States is taking a strong stance on equal employment opportunity laws and policies for

employees to promise job success (Landy & Conte, 2010). Including Affirmative Action

programs in the organization is one way both the scientist and practitioners can benefit; the I-O

psychologist can observe perceptions the organizations take that create perceptions of injustice in

the workplace.

Equally important for I-O psychologists and management consulting firms to give

attention to is diversity. Diversity includes differences in demographic attributes as well as

variances in abilities, values, interests and experiences (Landy & Conte, 2010). Successful

management of diversity in an organization requires I-O psychologists to use all the tools they

have learned such as recruiting, selecting, motivating and leading (Landy & Conte, 2010).

Organizations need to be focused on a value model (Herriot & Pemberton, 1995), which

addresses diversity in a multi-cultural organization valuing the uniqueness a diverse group brings

to the work place (Landy & Conte, 2010).

Leadership Transformational Leadership


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According to Landy and Conte (2010) virtually every employee in the 21st century will

be called upon to display leadership behaviors at some point and time. Landy and Conte (2010)

identify effective leadership as a win-win situation for the both the follower and leader when

common outcomes are achieved all individuals are satisfied with. Emerging leadership looks at

leader characteristics of individuals as opposed to leadership effectiveness examines the

behaviors of a leader (Landy & Conte, 2010), both are important in understanding what

leadership outcomes can be within an organization. I-O psychologists and organizational

management consultants must look at both characteristics and behaviors of leaders throughout

the organization in order to determine effective training and leadership development plans.

Transformational leadership is an inspirational behavior a leader exhibits by successfully

appealing to noble motives of followers (Landy & Conte, 2010). Furthermore transformational

leaders have the ability to not only articulate but demonstrate the vision of a better world, in

return the followers buy in to the vision they can affect change positively through their own

actions and in effect support the direction of the leader. Key modern approaches to

transformational leadership are authentic and charismatic leadership. According to Landy and

Conte (2010), authentic leadership is gaining recognition in the I-O field. Authentic leadership

involves being genuine and demonstrating integrity while you lead (Landy & Conte, 2010).

Charismatic leaders possess a magnetism that attracts and compels individuals to admire and

follow their lead (Landy & Conte, 2010). Khans (2010) study of literature underscored how

authentic leaders play a vital role in organizational performance based on their ability to motivate

individuals. Authentic leaders gain commitment through building trust relationships (Landy &

Conte, 2010).


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Emerging topics and challenges are presenting themselves in industrial and

organizational psychology (Landy & Conte, 2010). The work place changes in the past two

decades have been significant changing the leadership landscape. Emerging leadership

challenges include working in a virtual environment with diverse teams, work-life balance with

telecommuting and temporary staff augmentation to become more cost effective. According to

Landy and Conte (2010), with all the 21st century leadership challenges a great deal is yet to be

learned and studied, in order to identify independent, consistent guidelines for leaders to lead

effectively.

Teams Team Processes

Landy & Conte (2010) discuss the input-process-output (I-P-O) model as a structure to

link teams activities, procedures and results in a way to optimize team performance. Inputs

include organizational context, tasks and team structure. Ilgen, Hollenbeck, Johnson and Jundts

(2005) research identify the I-P-O model is limiting as it implies a serial, liner path from input to

outcome. In order to stay consistent and successful in a project, the feedback loop must occur

continuously during input, processes and output.

Team processes are essential to the success of teams. LePine, Piccolo, Jackson, Mathieu

and Saul (2008) meta-analysis identified there is a positive correlation between team

performance and member satisfaction. Enhancing the I-P-O model to include team process

norms, communications and coordination, cohesion and decision making will provide the

conduit to successful team performance output. It is important for management consulting

organizations to effectively manage these team processes as they lead to higher performance,

better decisions and more positive work experiences (Landy & Conte, 2010).


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Issues facing I-O psychologists and management consulting firms are the diversity teams

introduce in the workplace. Challenges can arise from the diverse teams required to be self-

forming in order to coordinate initial communication and form cohesion to perform work

activities. Landy and Conte (2010) indicate research has begun to investigate how cohesive

teams may be able to resolve inter-team conflict and perceived boundaries.

Organizations

An organization is a group of individuals with common goals that follow sets of policies

and legislature delivering both products and services (Landy & Conte, 2010). Furthermore,

organizations can be characterized as social entities that take on characteristics of climate,

culture and expectation of roles (Landy & Conte, 2010).Within the social context the

organizational socialization becomes pivotal to dealing with change in an organization.

According to Landy & Conte (2010), organizations represent concrete examples of strategic

thinking and planning. In order to achieve strategic organizational change, socialization

practices need to be adopted whereby the values and procedures of the organization (Landy &

Conte, 2010) are carried through organizational communication process.

In the 21st century, to develop a strategic organization in order to remain competitive,

Head (2006) identifies the development occurs over time and is most effective when well-timed

and executed smaller scale interventions. A cyclical approach to developing a strategic

organization is based on identifying the failures and learning incrementally from such large

transformative changes that include leadership charged with transformation; new emerging

technologies; and change in the competitive model (Head, 2006).

I-O psychologists and management consultants recognize resistance to change is

becoming the most significant barrier to success in an organization. Resistance to change exists


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in both individuals and organizations (Landy & Conte, 2010). Management consultants deal in

the strategic development efforts of total quality improvement (TQM), lean six sigma (LSS) and

management by objectives (MBOs). Landy and Conte (2010) identify common elements

objectives across these improvement activities such as they are strategic, quality focused and

team centered. In order to achieve those common objectives and support strategic organizational

development change barriers organizations must remove are economic, fear of the unknown and

fear of change in the team structure.

Conclusion

Organizational psychology principles are inter-related. Understanding individuals

motivations allow leaders to understand behaviors, and with those behaviors what attitude and

emotions are related. Job satisfaction and performance are intrinsically linked to the individuals

personal and professional feelings, attitudes, emotions and motivations. Job satisfaction and job

performance can be impacted by perceived fairness and the stressors experience in the

workplace. Leadership transformational approaches must include leveraging team and

organizational effectively in order to achieve common goals for the individuals and the

organizational as a whole.


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