Industrial/Organizational Psychology Midterm PDF

INDUSTRIAL/ORGANIZATIONAL PSYCHOLOGY MIDTERM Performance Evaluation accurate measure of performance must be available for use in...

INDUSTRIAL/ORGANIZATIONAL PSYCHOLOGY MIDTERM Performance Evaluation accurate measure of performance must be available for use in determining whether performance Step 1. Determine the Reason for Evaluating increases as a result of training. Employee Performance Step 2: Identify Environmental and Cultural Performance Appraisal – A meeting between a Limitations supervisor and a subordinate for the purpose of discussing performance appraisal results ➔ The second step in the performance appraisal process is to identify the Peter Principle – the promotion of employees environmental and cultural factors that until they reach their highest level of could affect the system. incompetence. ➔ For example, if supervisors are highly ➔ Providing employee training and overworked, an elaborate, time-consuming feedback performance appraisal system will not be ◆ the most important use of successful. performance evaluation is to ➔ In an environment in which there is no improve employee performance by money available for merit pay, developing providing feedback about what a numerically complex system will become employees are doing right and frustrating, and the results of the wrong. evaluation may not be taken seriously. ◆ Even though employee training ➔ In an environment in which employees are should be an ongoing process, the very cohesive, the use of peer ratings semiannual performance appraisal might reduce the cohesiveness. review is an excellent time to meet ➔ The work environment must be in line with with employees to discuss their the nature of the workforce. strengths and weaknesses. ➔ Determining salary increases Step 3: Determine Who Will Evaluate ➔ Making promotion decisions Performance ◆ Another reason for evaluating performance is to determine which ➔ Traditionally, employee performance has employees will be promoted. been evaluated solely by supervisors. ◆ Although it would seem only fair to Recently, however, organizations have promote the best employee, this realized that supervisors see only certain often does not occur. aspects of an employee’s behavior. ◆ For example, the policy in some ➔ For example, as shown, a branch manager organizations is to promote might observe only % of a teller’s work employees with the most seniority. behavior; the rest is observed by ➔ Making termination decisions customers, peers, and support staff in ◆ Unfortunately, providing feedback, other parts of the bank. counseling, and training to ➔ Furthermore, the teller might behave very employees does not always differently around her supervisor than increase performance or reduce around other people. discipline problems. ➔ Consequently, to obtain an accurate view ◆ When performance management of the teller’s performance, these other techniques are not successful, the sources should provide feedback. results of a performance review ➔ The buzzwords for using multiple sources might suggest that the best course to appraise performance are 360-degree of action is to terminate the feedback and multiple-source feedback. employee. ➔ It is a performance appraisal system in ➔ Conducting personnel research which feedback is obtained from multiple ◆ A final reason for evaluating sources. employees is for personnel ◆ Supervisor research. ◆ Peers ◆ Employment tests must be ◆ Subordinates validated, and one way this can be ◆ Customers done is by correlating test scores ◆ self-appraisal with some measure of job Step 4: Select the Best Appraisal Methods to performance. To do this, however, Accomplish Your Goals an accurate and reliable measure of job performance must be available. Prior to developing the actual ◆ The same is true in evaluating the performance appraisal instrument, two effectiveness of training programs. important decisions must be made: the To determine effectiveness, an focus of the performance appraisal 1  dimensions and whether to use rankings or excellent and poor employee performance ratings. that were observed by the supervisor. Decision 1: Focus of the appraisal Critical incidents, a method of dimensions (Competency, task, goal, and performance appraisal in which the trait) supervisor records employee behaviors Decision 2: Should dimensions be that were observed on the job and rates weighted? the employee on the basis of that record. Decision 3: Use of employee comparisons, objective measures, or ratings. Step 7: Evaluate Performance Employee Comparison Obtain and review first the objective data Rank order or straight rankings, relevant to the employee’s behavior to employees are ranked from best to worst. avoid errors of evaluation. Paired comparison, each employee is compared to every other employee in Errors in Evaluation pairs. Forced distribution, predetermined percentage of employees are placed into a Instrument Errors number of performance categories. Deficiency, involve excluding important aspects of the job from evaluations. Contamination, rating an employee on Objective Measure non-important aspects of the job. Common types of objective measures include quantity of work (number of relevant job behaviors), quality of work a. Strictness Set, the rater is overly strict and (errors), attendance (absences), and safety gives everyone low ratings. (success). b. Leniency Set, the rater is overly lenient and gives everyone high ratings. c. Central Tendency Set, the rater tends to Rating of Performance rate everyone as about average. a. Graphic Rating Scales, involves ratings on d. Halo Error, a rater allows either a single several aspects of a job. attribute or an overall impression of an b. BARS, based on critical incidents. individual to affect the ratings that she c. BOS (Behavioral Observation Scale), makes on each relevant job dimension. rating to the extent to which a person e. Proximity Error, occurs when a rating engages in every behavior. made on one dimension affects the rating d. Forced choice, the rater must choose made on the dimension that immediately between two equally desirable or follows it. undesirable. It controls halo effect as well f. Contrast Errors, the performance rating as leniency and strictness. one person receives can be influenced by e. Behavioral Checklist, a rater checks off the performance of a previously evaluated all the adjectives or descriptors that apply person. to the employee being rated Step 8: Communicate Appraisal Results to Step 5: Train Raters Employees The effectiveness of rater training also is a Allocating Time function of training format. Scheduling the Interview Raters who receive frame-of-reference Preparing for the Interview training make fewer rating errors and recall more training information than do Step 9: Make Personnel Decision untrained raters or raters receiving information about only job-related Step 10: Monitor the Legality and Fairness of behaviors. the Process Frame-of-reference training, a method of training in which rater is provided with Strategies to Improve Ratings job-related information, a chance to practice ratings. Training raters with instruments to be used Multiple raters Step 6: Observe and Document Performance Rates on ongoing basis rather than once or twice a year The next step in the performance appraisal Basing performance on clear and specific process is for supervisors to observe performance standards. employee behavior and document critical incidents as they occur. Critical incidents are examples of excellent and poor employee performance. Such documentation is usually written in a critical incident log—formal accounts of 2  Training Economic Performance Interviews analysis appraisals Skill and Personpower Observation knowledge Outline analysis and testing Determining Training Needs planning Job Establishing Goals and Objectives descriptions Critical Choosing the Best Training Method Climate and incidents Delivering Training Program attitude Motivating Employees to Learn surveys During Training Resource Ensuring Transfer of Training analysis Evaluation of Training Results Training and Development Training Need Analysis It is the "systematic acquisition of skills, rules, Organizational Analysis, the purpose of this is to concepts, or attitudes that result in improved determine those organizational factors that either performance." facilitate or inhibit training effectiveness. Purpose of Training Task Analysis, the purpose of a task analysis is to use the job analysis methods (will discuss later). Fulfills high service standards = high job performance Person Analysis, it is based on the recognition Provides information/orientation for newly that not every employee needs further training for hired employees every task performed. It serves as a refresher Reduces mistakes - minimizing costs Task Analysis Opportunity for staffs to give feedback / suggest improvements Tasks performed by each employee, the Improves communication & relationships - conditions under which these tasks are performed better teamwork and the competencies (Knowledge, Skills, Reduces turnover Abilities) needed to perform the tasks. Employee satisfaction Reduce customer complaint Person Analysis Training Need Analysis Which employees need training and in which areas. Need Analysis - process of determining the Based on the recognition that not every training needs of an organization. employee needs further training for every task performed. - To determine the types of training that are Performance appraisal scores needed in an organization as well as the Surveys extent to which training is a practical Interviews means of achieving an organization’s Skill and Knowledge Tests goals. Critical Incidents Establishing Goals and Objectives TRAINING Workshop Determine what the organization wants to Development accomplish Skills Training goals and objectives should Coaching concretely state the ff: Knowledge ○ What learners are expected to do Teaching ○ The conditions under which they Learn are expected to do it ○ The level at which they are expected to do it Training Needs Assessment Process Organizational Task Person Choosing the Best Training Methods Analysis Analysis Analysis Lectures To provide knowledge Establish Task Performance goals and inventories appraisals Case study – objectives employees, usually in To apply knowledge Interviews Surveys a group are presented 3  ○ feedback with real or hypothetical workplace problem Ensuring Transfer of Training and are asked to propose the best Transfer of training – the extent to which solution behavior learned in training will be performed on Simulation – an the job. exercise designed to Opportunities to practice work-related place an applicant in a Behavior during the training situation that is similar To practice new skills Provide employees with the opportunity to to the one that will be apply their training encountered on Ensure management is supportive of the the job training Have employees set goals Role Play – a training Practicing technique in which interpersonal skills employees act out through Examining the outcomes of a program helps in simulated roles. role-play evaluating its effectiveness. These outcomes should be in lined to the program objectives in Behavior Modeling – order for the trainees to understand the program. employees observe correct behavior, Increasing practice that behavior, Interpersonal Skills Training outcomes can be categorized as then receive feedback cognitive outcomes, skill-based outcomes, about their affective outcomes, results, and return on performance investment. Motivating Employees to Attend Training Three Levels of Evaluation Require them to attend Immediate Feedback Make the training interesting - Survey or interview directly after training Increase employee buy-in Post-Training Test Provide incentives - Trainee applying learned tasks in Provide food workplace Reduce stress associated with attending Post-Training Appraisals Provide feedback - Conducted by immediate supervisors of trainees Delivering the Training Program Methods 1. Classroom Setting/Training - Trainer In-house or outside trainer - Venue - Duration Preparing for Classroom Training - audience Delivering Training Program - The trainer and the training session - Icebreakers and energizer - Presentation 2. Distance Learning - Asynchronous distance learning - Synchronous distance learning 3. On-the-Job Training - Modeling - Learning through job rotation - Apprentice Training - Coaching and mentoring Motivating Employees to Learn During Training Providing Incentives for learning ○ Interest 4  Motivation Needs For Achievement and Power A theory developed by McClelland. An internal force that drives a worker to action as Need for achievement are motivated by well as the external factors that encourage that jobs that are challenging and over which action. they have some control Need for affiliation are motivated by jobs Three individual difference traits that are in which they can work with and help other related to work: people. Self-esteem Need for power are motivated by a desire Intrinsic motivation tendency to influence others rather than simply to Need for achievement be successful Self-esteem The extent to which a person views himself as valuable and worthy. Consistency theory takes the relationship between self-esteem and motivation one step further by stating that employees with high self-esteem actually desire to perform at high levels and employees with low self-esteem desire to perform at low levels. Three Types of Self-Esteem Needs – based - a "need" indicates some deficient state within an individual. Chronic self-esteem is a person’s overall feeling about himself. Situational self-esteem (also called self-efficacy) is a person’s feeling about himself in a particular situation such as operating a machine or talking to other people. Socially influenced self-esteem is how a person feels about himself on the basis of the expectations of others. Enhancing Performance Conduct self-esteem workshops - in Job-Based Theories which they are given insights with their strengths. Show them that they have Place the source of motivation primarily in several strengths and are good people. the content of jobs that employees Outdoor Experiential Learning - another perform. Explain work motivation in terms approach to increase self-esteem such as of the extent to which employees satisfy “ropes course” wherein they will show that important needs in the workplace. they are physically and emotionally strong. Experience with Success Self-fulfilling prophecy - the idea that people behave in ways consistent with self-image. Galatea effect - relationship between self-expectations and performance. Supervisor Behavior Pygmalion effect - the idea if people believe that something is true, they will act Cognitive Process Theories in a manner consistent with that belief. Golem effect - when negative expectations of an individual cause a decrease in that individual’s performance. Intrinsic motivation - They either enjoy performing the actual tasks or enjoy the challenge of successfully completing the task. Extrinsic motivation - arises from such non personal factors as pay, coworkers, and opportunities for advancement. 5 Cognitive Process Theories Employee Satisfaction and Commitment Emphasize the decisions and choices that employees make when they allocate their Job Satisfaction efforts. The attitude an employee has toward her job. The Behavioral Approach Organizational Commitment Approach applies the tenets of behaviorism developed by B.F. Skinner to The extent to which an employee identifies with promote employee behaviors that an and involved with an organization. employer deems beneficial and discourage Why should we care about employee attitudes? those that are not helpful. Motivation is that behavior is largely a It is important to note that there are many other function of its consequences factors affecting work behavior. Theories: Reinforcement, Punishment, Feedback Satisfied employee and committed Likely to attend to work Stay with an organization Arrive at work on time Perform well Engage in a behavior helpful in organization Engage in ethical behaviors What causes employees to be satisfied with and attend to their jobs? Facets Pay Supervision Co-workers Organizational Assumptions to Motivation Work Promotion opportunities An organization has the right to influence the behavior of its employees. Others Employees have at least some freedom of choice as to whether they will engage in Equipment behaviors that positively or negatively Work facility impact the organization. Worksite There are no major internal or external Company policy constraints on employees' behavior Affective commitment – an employee wants to Behavior is at least somewhat malleable. remain with an organization and cares about the Application of Motivational Theories organization. Attraction Continuance commitment – employees believe Productive behavior they must remain with an organization due to the Counterproductive behavior time, expense, and effort they have already put Retention into the organization. Increase work performance Normative commitment – employees feel an Organizational commitment obligation to remain with an organization. Premack Principle What individual differences affect job It states that reinforcement is relative and satisfaction? that a supervisor can reinforce an Antecedents employee with something that on the surface does not appear to be reinforcer. Individual predisposition Satisfaction with life Job expectations Organizational fit Perceptions of fairness Coworkers Stressors The job itself Consequences Performance Turnover Absenteeism Tardiness Organizational citizenship Counterproductive behavior 6 People who are satisfied with their jobs tend to be Organizational Communication satisfied with life. (e.g. marriage, friends, job, family and geographic location. Types of Organizational Communication People who are happy in life tend to be happy in Upward communication- communication of their jobs and vice versa. subordinates to superiors or of employees to Are Rewards and Resources given equitability? managers. “open door” policy. One factor related to both job satisfaction Serial communication – the message is and employee motivation is the extent to relayed from an employee to her which employees perceive that they are supervisor, who relays it to her supervisor, being treated fairly who in turn, relays it to her supervisor and so until the message reaches the top. Equity Theory –employees will be satisfied if their ratio of effort to reward is similar to that of other Upward Communication Drawbacks employees. Content and tone of message Difficult to implement for several reasons: MUM Effect (Minimize unpleasant Practicality message) Employee’s perception of inputs and Informal communication channels outputs vs actual inputs and outputs Things That Facilitate Upward Communication Access salaries of other employees Comparison from other organizations Attitude surveys Is there a chance for growth and challenge? Focus Groups and Exit Interviews Suggestion box Job satisfaction is affected by opportunities for Third-Part facilitator challenge and growth Upward Communication Job Rotation – employees are given the ⬆️ Production Manager ⬆️ Assistant Production Manager opportunity to perform several different jobs in an - organization. ⬆️ Production Supervisor - ⬆️ Worker - Job enlargement – employees are given more - tasks to perform at the same time Ways —- knowledge used and tasks performed Downward communication - is that of superior to subordinate or management to employees. Knowledge enlargement – employees are allowed to make more complex decisions Things That Facilitate Downward Task enlargement – given more tasks of Communication the same difficulty level to perform. Bulletin Boards Consequences of dissatisfaction and other In-house message networks negative work attitudes Policy Manual Employee Handbook Absenteeism Newsletters Linking attendance to consequences Intranet Rewards for attending o Financial incentives Downward Communication o Time off ⬇️ Production Manager ⬇️ Assistant Production Manager - o Recognition programs ⬇️ Production Supervisor - Turnover ⬇️ Worker - - Cost of turnover Reducing turnover Business Communication - the transmission of Unavoidable reasons business related information among employees, Advancement management and customers. Unmet needs and expectations Memos Counterproductive behaviors Phone calls Aimed at organization Email and voicemail ○ Theft and sabotage Business meeting Aimed at individuals Office design ○ Gossip ○ Playing negative politics Informal Communication ○ Harassment It is a term that can be traced back to the Civil ○ Incivility ○ Workplace violence War, when loosely hung telegraph wiresresembled ○ Bullying grapevines. The communication across these lines was often distorted. Organizational Citizenship Behavior It is common because they provide employees These are the extras people do to go the extra with information, power, and entertainment. mile in their work (can be interpersonal and organizational OCB). 7 Not directly related to the completion of an Predicting Performance Using Personality, organizational task. Interest and Character Grapevine - an unofficial informal communication Personality Inventories. A psychological network. assessment designed to measure various aspects of an applicant’s personality. Single-strand – message is passed in a chain-like fashion from one person to the Tests of Normal Personality. Measure the traits next until the chain is broken. exhibited by normal individuals in everyday life. Gossip – a message is passed to only a Ex. Extraversion, shyness, assertiveness and select group of individuals. friendliness. Probability – a message is passed Tests of Psychopathology (abnormal behavior). randomly among all employees. Determine whether the individuals have serious Cluster – a message is passed to a select psychological problems such as depression, group of people who each in turn pass the bipolar disorder and schizophrenia. message to a few select others. MMPI-2 – the most widely used objective test of People in Informal Communication psychopathology. Isolates were employees who received less Projective tests – A subjective test in which a than half of the information subject is asked to perform relatively unstructured Liaisons were employees who both tasks, such as drawing pictures and in which a received most of the information and psychologist analyzes his or her responses. passed it on to others Dead-enders were those who heard most Rorschach Inkblot Test – A projective personality of the information but seldom passed it on test. to other employees. Thematic Apperception Test (TAT) – A projective personality test in which test-takers are shown Employee Selection: References and Testing (2) pictures and asked to tell stories. It is designed to measure various need levels. Predicting Performance Using Applicant Skill Integrity Tests - “honesty test” a psychological test designed to predict an applicant’s tendency The two most common methods for doing to steal. this are the work sample and assessment center. Predicting Performance Limitations Due to Medical and Psychological Problems Work Samples. The applicant performs actual job-related tasks. Drug Testing - Most controversial testing method used by HR professionals. HR professionals believe An excellent selection tool. not only that illegal drug use is dangerous but also 1st, directly related to job tasks and have that many employees are under the influence of an excellent content validity. drugs at work. 2nd, scores tend to predict actual work performance and have an excellent tests that indicate whether an applicant criterion validity. has recently used a drug. 3rd, job applicants are able to see the one of the most controversial testing connection between the job sample and methods used by HR professionals. the work performed on the job, the Psychological Exams - Usually consist of an samples have an excellent face validity. interview by a clinical psychologist, an Assessment Centers. A method of selecting examination of the applicant’s life history and the employees in which applicants participate in administration of one or more of the psychological several job-related activities, at least one of which tests. must be a simulation and are rated by several It is important to keep in mind that trained evaluators. psychological exams are not designed to Predicting Performance Using Prior Experience predict employee performance. They should only be used to determine if a Experience Ratings. The basis for experience potential employee is a danger to himself ratings is the idea that past experience will or others. predict future experience. Medical Exams - The physician is given a copy of In giving credit for experience, consider the job description and asked to determine if the amount of experience and how related there are any medical conditions that will keep the the experience is to the current job. employee from safely performing the job. Biodata. A method of selection involving Rejecting Applicants application blanks that contain questions that research has shown will predict job performance. Once a decision has been made regarding which applicants will be hired, those who will not be hired must be notified. Rejected applicants should be treated well because they are potential customers and 8  potential applicants for other positions Discovering New Information About the that might become available in the Applicant organization. References and letter of recommendation Rejection letter – A letter from an organization to can be two methods to understand the an applicant informing the applicant that he or personality and skills of job applicants. she will not receive a job offer. Former employers and professors can provide information about an applicant’s The following guidelines identified to write a work habits, character, personality and rejection letter: skills. Send rejection letters or emails to Care must be taken , however, when using applicants. these methods because the opinion Don’t send the rejection letter immediately. provided by any particular reference Be as personable and as specific as maybe inaccurate or purposefully untrue. possible in the letter. Rejected applicants should be treated well Including a statement about the individual because they are potential customers and who received the job can increase potential applicants for other positions applicant satisfaction with both the that might become available in the selection process and the organization. organization. Do not include the name of a contact Send rejection letters or emails to person. applicants. Perhaps the most important thing to Be as personable and as specific as consider when writing a letter of rejection possible in the letter. is to be honest. Be honest when writing a rejection letter, don’t beat around the bush. Ethical Issues Employee Selection: References Testing (1) Ethical guidelines that reference providers should follow: Reference Check – the process of confirming the ○ Explicitly state your relationship accuracy of resume and job application with the person you are information. recommending. Reference – the expression of an opinion, either ○ Be honest in providing details. orally or through written checklist, regarding an ○ Let the applicant see your applicant’s ability, previous performance, work reference before sending it and habits, character, or potential for future success. give him the chance to decline to use it. Letter of Recommendation – A letter expressing an opinion regarding an applicant’s ability, Predicting Future Performance previous performance, work habits, character, or The best predictor of future performance potential for success. is past performance. References and common belief that the best predictor of letters of recommendation are ways to try future performance is past performance. to predict future performance by looking at past performance. Reasons for Using References and Low validity is largely due to four main Recommendations problems with references and letters of recommendation: leniency, knowledge of Confirming details on the resume. Confirming the applicant, low reliability, and the truthfulness of information provided by the extraneous factors involved in writing and applicant. reading such letters. Resume fraud – the intentional placement Leniency. Research is clear that most letters of of untrue information on a resume. recommendation are positive. Keep in mind that Checking for discipline problems. Determining applicants choose their own references. whether the applicant has a history of such Negligent reference – an organization’s failure to discipline problems as poor attendance, sexual meet its legal duty to supply relevant information harassment and violence. Such a history is to a prospective employer about a former important for an organization to discover to avoid employee’s potential for legal trouble. future problems as well as to protect itself from a potential charge of negligent hiring. Providing references and letters of recommendations can be so difficult. On the one Negligent hiring – a situation in which an hand, a former employer can be charged with employee with a previous criminal record slander or libel if it says something bad about an commits a crime as part of his/her applicant that cannot be proven. On the other employment. hand, an employer can be held liable if it does not provide information about a potentially dangerous applicant. Because of these competing responsibilities many organizations will confirm only employment 9 dates and salary information unless a former Predicting Performance Using Applicant Ability employee has been convicted of a criminal Ability tests - tap the extent to which an offense that resulted in termination. The use of applicant can learn or perform a job-related skill. referencechecking companies can help alleviate this problem. Used primarily for occupations in which applicants are not expected to know how Predicting Performance Using Applicant to perform the job at the time of hire. Training and Education Instead, new employees will be taught the - It is most common that applicants must necessary job skills and knowledge. have a minimum level of education or Cognitive ability – abilities involving the training to be considered. knowledge and use of information such as math Predicting Performance Using Applicant and grammar Knowledge important for professional, clerical and - Job Knowledge Test. A test that measures supervisory jobs, including such the amount of job-related knowledge an occupations as supervisor, accountant and applicant processes. secretary. - Job knowledge tests are used is thought to predict work performance in primarily in the public sector two ways: by allowing employees to especially for promotions. quickly learn job-related knowledge and by processing information resulting in Knowledge of the Applicant better decision making. The person writing the letter does not know the Cognitive ability tests – tests designed to applicant well, has not observed all aspects of an measure the level of intelligence, or the amount of applicant’s behavior or both. knowledge possessed by an applicant Even in a work setting in which supervisor Wonderlic personnel test – the cognitive provides the recommendation, he often does not ability test that is most commonly used in see all aspects of an employee’s behavior. industry. Employees often act very differently around their supervisors than they do around Perceptual ability – measure of facility with such coworkers and customers processes as spatial relations and form perception. Reliability. This is the extent to which a score from a test or from an evaluation is consistent and Consists of vision (near, far, night, free from error. peripheral), color discrimination, depth perception, glare sensitivity, speech Lack of agreement between two people (clarity, recognition), and hearing who provide references for the same (sensitivity, auditory attention, sound person. localization). Extraneous Factors Psychomotor ability - measure of facility with such processes as finger dexterity and motor Research has indicated that the method coordination. used by the letter writer is often more important than the actual content. Physical ability tests – tests that measure an A promising approach to increasing the applicant’s level of physical ability required for a validity of references is to increase the job. structure of the reference check. This can be done by conducting a job analysis Measured in one of two ways: job result. simulations and physical agility tests. Ethical Issues 1st - explicitly state your relationship with the person you are recommending. This is important because people often have dual roles 2nd – be honest in providing details. A referee has both an ethical and a legal obligation to provide relevant information about an applicant. Finally, let the applicant see your reference before sending it and give him the chance to decline to use it. Such a procedure is fair to the applicant and reduces the referee’s liability for any defamation charge. 10