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.