ASCS EMA1312 Introduction to Psychology in Business and Public Life Notes PDF

EMA1312 Introduction to Psychology in Business and Public Life B.COM 1ST YEAR NOTES  DISCLAIMER ASCS does not claim to have authored these past papers, and in no way are they assuring their quality. ASCS is therefore not responsible for any misuse of these past papers, as they are only intended as...

EMA1312 Introduction to Psychology in Business and Public Life B.COM 1ST YEAR NOTES  DISCLAIMER ASCS does not claim to have authored these past papers, and in no way are they assuring their quality. ASCS is therefore not responsible for any misuse of these past papers, as they are only intended as extra material which may be referred to if required. These past papers are a useful study resource meant to supplement the content provided during lectures, yet they are in no way intended to replace lecture notes or lecturer’s guidance. It is imperative to note that there may have been changes in some study-units, syllabi, and methods of examination over the years, rendering sections of these past examination papers outdated. ASCS does not guarantee that the most recent past paper is available to students due to factors out of their control. These past papers are available to ASCS members only and sharing to third parties is strictly prohibited. Always check relevance with the class notes, lecturer notes, and syllabus available on www.um.edu.mt.  EMA1312 Short Notes 1. Organisational Behaviour De nition of psychology - The scienti c study of behavioural and mental process - The science of behaviour and mental processes - Seeks to describe and explain aspects of human thought, feeling, perceptions and actions Fields of applied psychology - Industrial / organisational psychology - Counselling psychology - Clinical psychology - Educational psychology - Health psychology - Sports psychology - Forensic psychology Organisational behaviour - Organisation: an entity comprising of multiple people that has a collective goal and is linked to an external environment. - Organisational behaviour: the study and understanding of individual and group behaviour, and patterns of structure in order to help improve organisational performance and e ectiveness. Psychological contract - The unwritten, intangible agreement between an employee and their employer that describes the informal commitments, expectations and understandings arising from their relationship. - Not a written document - Implies a series of mutual expectations and satisfaction of needs - Covers a range of expectations of rights and privileges, duties and obligations - which do not form part of a formal agreement but still have an important in uence on people’s behaviour. Individuality - The individual is a central feature of organisational behaviour - When the needs of the individual and the demands of the organisation are incompatible, this can result in frustration and con ict. - Creativity and individuality may be encouraged in one business but undermined by bureaucracy in another. fl fi fi ff fl 2. The Analysis of Work in the 20th and 21st Centuries from a psycho-socio Perspective - Descriptive theories: explain how existing organisations work - Prescriptive theories: explain how organisations should operate The 2 distinct models of Job Design 1. The Job Characteristics Model (JCM) - Developed by Hackman and Oldham - The model is concerned with developing jobs which are motivating, satisfying and performed well - It focuses on 5 key features: 1. Skill variety (using a wide range of skills) 2. Task identify (worker produces an identi able, complete outcome - ex: surgeon 3. Task signi cance (having an impact on other people) 4. Autonomy (worker makes their own decisions) 5. Feedback from the job (indication of performance) - These characteristics produce 3 critical psychological states Experienced meaningfulness of work Experienced responsibility of the outcome knowledge of the results of work activities Knowledge of the results of work activities - The tendency for high levels of job characteristics to lead to positive outcomes can be formulated by the Motivating Potential Score (MPS) fi fi  2. The Vitamin Model - Peter Warr (was motivates by mass unemployment) - Just like any organism, every organisation needs di erent vitamins to support their growth - It explains the most common job characteristics that impact employee well being and development Supportive supervision Opportunity for personal control (autonomy) Opportunity for interpersonal contact Externally generated goals (job demand, task demands, role responsibility) Availability of nancial reward Variety (task/job variety) Opportunity for skill use Environmental clarity (the use of policy and consistent procedures) Valued social position (task signi cance) Physical security - The above job characteristics may be seen as ‘psychological work vitamins’ - Warr’s ndings indicate that some job characteristics can be harmful if present at levels that are too high or too low. fi fi fi ff  3. The Nature and Context of Organisations Classical Theories Taylorism - Frederick W. Taylor - Originated in scienti c management - In his days, there were no work standards or identi ed responsibilities - There was continual con ict between workers and managers - His work provided clear guidelines for improved production e ciency - His principles were as follows: 1. De ne a science for each element of an individual's work to replace the old 'rule of thumb' method 2. Scienti cally select, train, teach and develop the worker (previously the worker tended to select their own work and train themselves as best they could) 3. Heartily co-operate with the workers so as to ensure that all work is done in accordance with the principles of the science that he was developing 4. Divide work and responsibilities almost equally between management and workers, with management taking over the work for which it was better tted (previously most of the work and responsibilities were thrown on the workers). Bureaucratic Management - Max Weber - Contained 2 essential elements 1. Structuring an organisation into a hierarchy 2. Having clearly de ned rules to help govern an organisation and its members - His theory involves important elements Clearly de ned job roles A hierarchy of authority Standardised procedures Meticulous record-keeping Hiring employees only if they meet the speci c quali cations for a job Neoclassical Theories - They emerged as a bold attempt at incorporating the behavioural sciences into management - in order to solve the problems caused by classical theory practices - Neoclassical theorists concentrated on answering questions related to the best way to motivate, structure, and support employees within the organisation. fi fi fi fi fi fi fl fi fi fi ffi  Hawthorne Studies - Managers at Hawthorne Works asked themselves if employees are more productive in a well-lit environment. To nd this out, they conducted a study - They found that well-lit lighting increased productivity (as well as having a clean work station, teamwork and regular breaks) - However, after a relatively short time, those productivity gains disappeared and began drifting back to the previous level: The Hawthorne e ect The Human Relations Movement - Elton Mayo and Fritz J Roethlisberger - An approach to management based on the idea that employees are motivated not only by nancial reward but also by a range of social factors (appraisals, belonging, pride in ones work) - Completely contradicts the traditional views of Taylorism. - Mayo stressed the following: i) The power of of natural groups, in which social aspects take precedence over functional organisational structures. ii) The need for reciprocal communication, in which communication is two way, from worker to chief executive, as well as vice versa. iii) The development of high quality leadership to communicate goals and to ensure e ective and coherent decision making. The Systems Approach - Ludwig von Bertalan y - The analysis of organisations as ‘systems’ with a number of interrelated sub- systems. - Classical approach: organisations without people - Human relations approach: people without organisations - Systems approach: Seeks to reconcile these two approaches - Attention is focused on the total work organisation and the inter-relationships of structure and behaviour, and the range of variables within the organisation. - NOT a theory of management Contingency Approach - Gareth Morgan - Showed renewed concern with the importance of structure as a signi cant in uence on organisational performance - Highlights possible means of di erentiating among alternative forms of organisation structures and systems of management - There is not one optimum state. One size does not t all. fl ff fi ff ff fi fi ff fi 4. Personnel Selection Competency - The speci c characteristics and behaviour patterns a job holder is required to demonstrate, in order to perform the relevant job tasks with competence - The main aim of competency analysis is to derive a competency model for the target role - Competencies are derived through job analysis Job Analysis - Used to de ne the necessary knowledge, skills, attitudes and abilities for performance in their target job role. - Job analysis techniques must be Reliable Valid Legal General Cost Practical Jon Analysis Methods Interviews - Main job selection technique - Structured / semi-structured / unstructured - Situational / competency based - Group / one-to-one Biodata - Used to discover aspects of personal history which are indicative of psychological variables - Assumes the best predictor of future behaviour, is past behaviour - Hard data: ‘studied at …, bachelor of …, worked at …’ - Soft data: ‘enjoys reading and knitting’ Psychometrics - Cronbach de nes psychometrics as ‘a standardised sample of behaviour which can be described by a numerical scale or category system’ - They measure: Maximal performance (such as achievement and ability) Typical performance (such as personality associated values, attitudes and interests) Cognitive Ability Tests (CAT’s) - Also known as aptitude tests - Evaluate the mental abilities of individuals - Measure critical thinking, logical reasoning, verbal ability, problem solving - Show good predictive validity - Job complexity may moderate predictive validity fi fi fi Situational Judgement Tests (SJTs) - Used to assess someone’s decision making and judgement - Candidate will be presented with a work-like situation and possible actions they could take - Technically no correct or incorrect answers (although employer will always have preferred answers) - Always multiple choice Value-based Recruitment - Based on people’s views on how they ought to behave - An approach to recruitment which will help you nd people whose personal values match with the organisation - Beliefs to align with the values of a company Ability tests - Might tap into verbal, numerical, mechanical, spatial, clerical abilities Personality approaches - The Big 5 Personality Factors: Openness (ideas) Conscientiousness (competence) Extraversion (warmth) Agreeableness (compliance) Neuroticism (anxiety + depression) - Personal measures have low predictive validity, but may o er incremental validity Work Sample Tests - States that past behaviour is the best predictor of future behaviour - These tests require applicants to perform tasks which mirror tasks that would be performed on the job - Work samples may be in the form of: a) Psychomotor (using tools, typing) b) Decision making exercises c) Job related information tests d) Group discussions fi ff  6. Assertiveness - Standing up for what you believe in while staying calm and positive - Crucial for fostering meaningful workplace relationships - Bene ts: Increased con dence E ective collaboration Respect for authority Lack of interpersonal con ict How to be assertive - Appropriate body language - Start your opinion clearly - Know your audience - Use speci c wording - Be prepared to compromise - Have a positive attitude Passive Assertive Aggressive Being too nice Firm Explosive ff fi fi fi fl  Passive Assertive Aggressive Denial Clear messages Arrogant Subtle manipulation “I” statements Manipulative Low self esteem Self-aware Low consideration of others Latent hostility Powerful Threatening Weak Boundaries Clear boundaries Overbearing The main di erence between assertiveness and aggressiveness is that while expressing assertive behaviour, you remain empathetic and respectful of others. Aggression, on the other hand, is typically one-sided behaviour that makes maintaining positive working relationships impossible. 7. Emotional Intelligence Emotional Intelligence: - A person's ability to identify, understand, manage, and harness their own emotions and those of the people around them - A vital skill for interpersonal communication Intelligence Quotient Emotional Quotient Measures traditional intelligence Measures emotional intelligence Intelligence in terms of numerical and verbal data Intelligence in terms of feelings Ability to think Ability to feel Involves logic, memory and concentration Involves intuition, empathy, creativity, motivation Success with challenging tasks, ability to analyse. Teamwork, leadership, successful relations, Research and development collaboration Peter Salovey and John D. Mayer coined the term ‘emotional intelligence’ Daniel Goleman put forward the 5 pillars of emotional intelligence: 1. Self awareness - being aware of your own abilities 2. Self regulation - regulating emotions and irrational behaviour ff  3. Motivation - intrinsic motivation rather than extrinsic 4. Empathy - listening, understanding, and removing personal bias 5. Social skills - strong social skills to facilitate communication Bene ts: - Greater motivation - Improved productivity - Positive relationships - Better teamwork 8. Job Motivation Job motivation: - The desire or willingness to make an e ort in ones work - Involves inspiring employees to work for the accomplishment of the objectives of the organisation Self-Determination Theory - Deci and Ryan - People are generally determined to satisfy the psychological needs of: 1. Autonomy: when they can self determine aspects of their work 2. Competence: when they experience the feeling of mastery and being e ective in the activity at hand 3. Relatedness: the need to feel connectedness and belonging among colleagues - The above 3 psychological needs heighten intrinsic motivation - the desire to expand e ort based on interest in and enjoyment of work itself Maslow’s Hierarchy of Needs Each need builds on the last, allowing a person to feel more ful lled 1. Physiological needs - regular salaries, 2. Safety - insurance and sick pay 3. Belonging - team building events and teamwork 4. Esteem - motivated by wealth, promotions and reputation 5. Self-actualisation - best use of one’s talents ff fi ff ff fi  Herzberg’s 2 Factor Model An organisation can adjust its in uence on motivation in the workplace by applying 2 factors: 1. Motivators - increases job satisfaction 2. Hygiene factors - decreases job dissatisfaction Motivators Hygiene factors Achievement Company policies Recognition Supervision The work itself Relationships Responsibility Work conditions Advancement Remuneration Growth Salary Security Mc Clelland’s Human Motivation Theory Every person has one of 3 driving motivators: 1. Achievement - has a strong need to accomplish challenging goals 2. A liation - wants to belong to a group 3. Power - wants to control and in uence others These motivators are developed through our culture. Using this theory requires 2 steps: 1. Identi cation of drivers (Determine which of the 3 motivators is dominant for each person) 2. Structure your approach (Structure your leadership style to suit the motivator of an individual) Expectancy Theory Motivation is an outcome of: 1. Valence - how much an individual wants the reward 2. Expectancy - faith that better e orts will result in better performance 3. Instrumentality - the belief that the performance will lead to a reward ffi fi ff fl fl 10. Power Power may be considered as the most priceless possession a person can have. It is the ability to have in uence and impose your will on others. John R.P French and Bertram Raven identi ed 5 fundamental forms of power: 1. Legitimate Power Power achieved by being appointed into a certain position (ex: CEO) Lasts as long as one remains in that position Not ideal to be solely dependant on legitimate power, but combine it with other forms 2. Reward Power Power achieved by having the ability to appreciate the people who work for them and o er rewards Gives one the ability to o er rewards to someone in exchange for completing a given task Rewards typically refer to raises, promotions or public praise Drawback: there may come a time when one is not able to provide reward anymore - therefore, reward power is limited 3. Coercive Power Power excepted in the form of threats and intimidation - which creates a hostile environment Examples: A dictator who holds absolute rule over the public ff fl ff fi  This form of power is often and easily abused 4. Referent Power Most e ective type of power - gives leader a more substantial amount of in uence Someone with this power has great social skills and con dence - they are natural leaders. Power is gained through qualities such as honesty and integrity Examples: A boss who treats employees daily and equally 5. Expert Power Power derived from both experience and knowledge in their line of expertise People respect someone with expert power as they believe they have an increased amount of knowledge Example: senior surgeons who demonstrate their expert knowledge to gain their subordinates’ trust 6. Informational Power Power which comes from being in passion of certain information that others may need or want, in order to reach their goals Used to in uence another person’s behaviour By giving away information you are giving away power Example: a lawyer using evidence found to win a court case This 6th form was later introduced by Raven. E ects of having strong relationships with superiors 1. Increased acknowledgement of your success 2. Constructive criticism 3. Feeling valued at the workplace 4. Increased productivity 5. The opportunity to climb the corporate ladder - higher status and reputation How to build strong relationships Expressing sincere appreciation with subordinates by: - Developing good habits (Ex: Thank you) - Try to build personal relationships - Give o good energy - Basic complimenting and communication Owning up to mistakes, errors or misjudgements Making your opinions heard Be willing to work harder - go out of your way to help out Respect boundaries set by superiors Do not speak negatively behind coworkers or superiors backs In summary: 1. Legitimate - achieved from being appointed into a position of power (ex: CEO) ff fl ff ff fl fi  2. Reward - achieved from being able to o er a reward to someone (however rewards are limited so not ideal) 3. Referent - achieved from being a natural leader with good values 4. Expert - achieved from having experience and knowledge (ex: surgeon) 5. Coercive - power in the form of threats and intimidation (ex: dictator) 6. Informational - power by having information that others need to or want to reach their own goals 11. Work-Life Balance - The ability to experience a sense of control and to stay productive and competitive at work, while maintaining a happy and healthy home life with su cient leisure. - Does not necessarily mean an equal balance between work and life - Rather - the ability to manage ones time in order to stay productive and also prioritise leisure - Lack of balance symptoms: Physical (fatigue, headaches, sleep disturbance, appetite changes) Emotional (depression, anxiety, bad tempered, poor decision making) Personal (missing opportunities to be with family, job burnout, resorting to drugs and alcohol) There are 6 components of work life balance: 1. Self management (proper sleep, exercise, nutrients) 2. Time management (scheduling, planning) 3. Stress management (worrying less about things you cannot control) 4. Change management (evolving) 5. Technology management (don’t abuse technology use) 6. Leisure management (relaxation and rest) Work-life balance bene ts: - Improved relationships (on and o the job) - Self satisfaction - Improvements in health and well being - Increased productivity ffi fi ff ff  - Less absenteeism - Better teamwork 12. Performance Management Tools - A process which continuously identi es, measures and develops performance of the workforce in the business The Performance Management Cycle 1. Planning (using SMART (speci c, measurable, achievable, relevant, timely) goals) 2. Monitoring (tracking progress) 3. Reviewing (evaluating results) 4. Rewarding (rewarding good performance) Performance Management Tools 1. Key Performance Indicators (KPIs) - A quanti able metric - Help businesses understand whether they are being e cient - Must be directly aligned with the organisation’s goals - Show how e ective one is at achieving business goals - KPIs may be high (measuring overall business performance) or low (measuring performance of di erent departments) - Ex: business objective is to provide superior customer service -> relevant KPI is the number of customers who were not satis ed 2. Performance Appraisals - The systematic evaluation of the performance of employees - Used to understand the capabilities of a person fi ff ff fi fi fi ffi  - Employer provides feedback to employees regarding their performance - Advantages: Allows improved communication Maximise productivity Opportunity for promotions/bonuses - Disadvantages: Negative perceptions Needs to be done regularly 3. 360-Degree Feedback - Worker receive feedback on their work anonymously by other employees in the same company - Advantages: Uncovers blind spots Increased self awareness - Disadvantages: Insu cient information Con icting feedback Time consuming 4. Management by Objectives - Management and employees agree on goals and work out a plan to reach them - The MBO cycle has 5 steps: 1. Determine objectives 2. De ne employee objectives 3. Monitor performance 4. Provide feedback 5. Evaluation - Advantages: Improve motivation and commitment Better communication Better understanding of duties - Disadvantages: Focuses on performance only Ignores relevant parts of company culture (ex: work ethos) Pressure to reach goals - causes stress 5. Personal Development Plans - Self evaluation and self re ection - Used to achieve professional and personal goals - They boost motivation, improve employability, and help to identify ones strengths and weaknesses fi fl ffi fl 6. Balance Scorecard - A BSC has 4 perspectives Customer perspective (how do customers see us?) Internal perspective (what must we excel at?) Innovation and learning perspective (how can we improve?) Financial perspective (how do we look to shareholders) - Advantages: Communicate what they are trying to accomplish Align the day to day work Prioritise projects Measure progress 7. Strategy Mapping - Enable employees to understand the company’s strategy and translate it into actions they can take - A diagram which shows your organisation’s strategy on a single page - Great for quickly communicating big-picture objectives