Industrial/Organizational Psychology Chapter

Organizational Theory

• Organizational theory is a set of propositions that explains or predicts how groups and individuals behave in varying organizational structures and circumstances.
• Productivity is achieved through high morale, which is influenced by the amount of individual, personnel, and intimate attention workers receive.

Types of Organization

• Two types of organizations: Neoclassical (focused on the group) and Humanistic (focused on the individual)
• Four types of systems: Exploitative Authoritarian, Benevolent Authoritarian, Consultative, and Participative Group

Motivation Theory

• Employee-centric engagement strategy that focuses on individual motivation and participation
• Modern theory focuses on organization and work psychology, and emphasizes cooperation towards a common goal

Classical Organizational Theories

• Scientific Management (Frederick W. Taylor): focuses on planning, organizing, and controlling to achieve efficiency and productivity
• Ideal Bureaucracy (Maximillian K.E. Weber): characterized by many rules, standardized processes, and clear hierarchies
• Administrative Management (Henri Fayol): focuses on principles of management, including planning, organizing, commanding, coordinating, and controlling

Principles of Ideal Bureaucracy

• Unity of Command: each employee has only one direct supervisor
• Unity of Direction: one head and one plan for activities with the same objective
• Subordination of Individual Interest to General Interest: organizational objectives come before individual objectives
• Remuneration of Personnel: fairness of pay to the organization and the individual
• Centralization: amount of discretion held by the manager compared to that allowed to subordinates
• Scalar Chain: line of authority from lowest to top
• Order: a place for everyone, and everyone in their place
• Equity: emphasis on kindness and justice

Four Systems of Management

• System 1: Exploitative Authorization (Theory X)
• System 2: Benevolent Authority (Theory Y)
• System 3: Consultative System
• System 4: Participative Group System

Contingency Theories

• Fiedler's Contingency Theory: hinges on the match between situational favorability and leadership orientation
• Situational Leadership Theory: proposes that leadership must be adaptive to the situation and the members' willingness and readiness
• Path-Goal Theory: proposes that leader effectiveness depends on the level of knowledge, influence, confidence, and concern from the leader

Decision-Making Models

• Vroom-Yetton-Yago Model of Decision: provides leaders with guidelines for decision making, taking into account the level of participation and problem sharing

Motivational Theories

• Need Base Theories of Motivation: explain work motivation in terms of the extent to which employees satisfy important needs in the workplace
• Need Hierarchy Theory (Abraham Harold Maslow): proposes that individuals have different levels of needs, ranging from basic physiological needs to self-actualization### Motivation Theories
• Leader-Member Exchange (LMX) Model: Leaders develop unique relationships with subordinates based on social exchange, leading to constructive feedback and praise.
• ERG Theory: Clayton Aldefer's theory, which simplifies Maslow's theory, focuses on three needs: Existence, Relatedness, and Growth.
• Three Needs Theory: David McClelland's theory focuses on the Need for Achievement, Power, and Affiliation in explaining differences in goal-directed behavior.

Job Characteristics Theory

• Job Redesign Process: involves changing the content of a job to motivate employees, including Job Rotation, Job Enlargement, and Job Enrichment.
• Core Job Characteristics: Skill Variety, Task Identity, Task Significance, Autonomy, and Feedback.

Cognitive Process Theories

• Expectancy Theory: Victor Vroom's theory, which states that motivation is based on the belief that one's efforts will lead to good performance, which will be rewarded.
• Equity Theory: John Stacy Adams' theory, which states that humans tend to view social interactions as economic transactions, leading to a desire for fairness and equity.

Organizational Behavior Modification

• Reinforcement: any stimulus that increases the probability of a target behavior, including Positive Reinforcement, Negative Reinforcement, Punishment, and Extinction.
• Schedules of Reinforcement: describe various strategies for administering reinforcement, including Fixed-Interval, Variable-Interval, Fixed-Ratio, and Variable-Ratio schedules.

Applying Theories of Motivation

• Goal Setting Theory: Edwin Locke and Gary Latham's theory, which states that motivation is influenced by specific, challenging, and attainable goals.
• Types of Incentives: Financial Rewards, Recognition Rewards, and Travel Rewards.

Organizational Systems

• Open System Theory: Daniel Katz and Robert L. Kahn's theory, which views organizations as dynamic systems that interact with their environments.
• Centralization vs. Decentralization: the degree to which decision-making authority is held by a small group of people or dispersed throughout the organization.

Organizational Structures

• Departmentalization: specifies how employees and their activities are grouped together, including Functional, Product, Geographic, and Customer departmentalization.
• Simple Structure: a minimal hierarchy, usually found in start-up businesses, where employees perform broadly defined roles.
• Mechanistic vs. Organic Structure: mechanistic structures are characterized by a narrow span of control, high formalization, and centralization, while organic structures are more flexible and decentralized.### Organizational Structure
• Companies with an organic structure have a wide span of control, decentralized decision making, and little formalization.
• Functional structure organizes employees around specific knowledge or resources, with high specialization and decentralization.
• Divisional structure organizes employees around distinct products, services, or clients, with high formalization and narrow span of control.
• Matrix structure combines at least two structures, with narrow span of control.
• Network structure divides the organization into multiple divisions or regions, with outsourcing and high formalization.

Organizational Design

• Companies with an organic structure are suitable for dynamic environments, while those with mechanistic structures are suitable for stable environments.
• Rate of change, complexity, and resources affect the choice of organizational design.
• IVDA (Identify, Visualize, Develop, and Apply) is a framework for analyzing organizational design.

Industrial/Organizational Psychology

• Industrial/Organizational Psychology is a field that focuses on human behavior in the workplace.
• It includes branches such as Human Resource Development (HRD), Human Resource Management (HRM), and Organizational Development (OD).

Human Resource Development (HRD)

• HRD focuses on the growth and development of an organization's human resources.
• It includes areas such as talent management, employee training, performance management, and career development.

Human Resource Management (HRM)

• HRM is concerned with the recruitment, selection, and employment of employees.
• It includes areas such as staffing, job analysis, and performance appraisal.

Organizational Development (OD)

• OD focuses on improving the organization's overall health and effectiveness.
• It includes areas such as organizational culture change, process re-engineering, and strategic planning.

Selection Methods

• Recruitment involves attracting and selecting candidates to fill job openings.
• Types of recruitment include internal, external, and contingency recruitment.
• Selection methods include employment interviews, written tests, and assessment centers.

Employment Interviews

• Types of employment interviews include structured, unstructured, and semi-structured interviews.
• Approaches to scoring interviews include right/wrong, behavioral, and situational.

Performance Appraisal

• Performance appraisal is a process of evaluating employee performance to improve performance and provide feedback.
• Approaches to performance appraisal include trait-based, behavioral-based, and results-based.
• Focuses of performance appraisal include rating, ranking, and critical incident methods.

This quiz covers organizational theory, including the behavioral theory of organization, human relations, and new classical theory of management.