Industrial/Organizational Psychology PDF

Intro to Industrial/Organizational Psychology Industrial/Organizational (I/O) Psychology is the branch of psychology that is concerned with the study of behavior in work settings and the application of psychology principles to change work behavior. Meaning, psychological theories and principles will...

Intro to Industrial/Organizational Psychology Industrial/Organizational (I/O) Psychology is the branch of psychology that is concerned with the study of behavior in work settings and the application of psychology principles to change work behavior. Meaning, psychological theories and principles will be applied for the betterment of a workplace or organization.  The goal of I/O psychology is to increase the productivity and well-being of employees  Focuses almost exclusively on issues involving the people in an organization You may wonder why it included both the industrial and the organizational approaches. What is the difference between the two, Industrial Approach It focuses on determining the competencies needed to perform a job, staffing the organization with employees who have those competencies, and increasing those competencies through training. Organizational Approach It creates an organizational structure and culture that will motivate employees to perform well, give them the necessary information to do their jobs, and provide working conditions that are safe and result in an enjoyable and satisfying work/life environment. The Field of Industrial/Organizational Psychology 1. Personnel Psychology- The field of study that concentrates on the selection and evaluation of employees. This involves analyzing jobs, recruiting applicants, selecting employees, determining salary levels, training employees, and evaluating employee performance. Mainly, this involves creating qualifications and skills for a specific job position, choose existing tests or create new ones that can be used to select and promote employees., assigning salary to a certain position, evaluation of employee performance, training needs of the employee. 2. Organizational Psychology- The field of study that investigates the behavior of employees within the context of an organization. This is concerned with the issues of leadership, job satisfaction, employee motivation, organizational communication, conflict management, organizational change, and group processes within an organization. Organizational psychologists often conduct surveys of employee attitudes to get ideas about what employees believe are an organization’s strengths and weaknesses. Usually serving in the role of a consultant, an organizational psychologist makes recommendations on ways problem areas can be improved. 3. Human Factors/Ergonomics- A field of study concentrating on the interaction between humans and machines. This concentrates on workplace design, human-machine interaction, ergonomics, and physical fatigue and stress. These psychologists frequently work with engineers and other technical professionals to make the work place safer and more efficient. Sample activities in this subfield have included designing the optimal way to draw a map, designing the most comfortable chair, and investigating the optimal work schedule. Historical Background of IOP  Regardless of the official starting date, I/O psychology was born in the early 1900s. In addition to Scott and Munsterburg, pioneers in the field include James Cattell, Walter Bingham, John Watson, Marion Bills, and Lillian Gilbreth.  “industrial psychology” was seldom used prior to World War I. Instead, the common terms for the field were “economic psychology,” “business psychology,” and “employment psychology”  In WW1, because of the large number of soldiers who had to be assigned to various units within the armed forces, I/O psychologists were employed to test recruits and then place them in appropriate positions. TESTS OF MENTAL ABILITY were used for this purpose. Army Alpha was used for recruits who could read while Army Beta was for those who could not. The more intelligent recruits were assigned to officer training, and the less intelligent to the infantry.  Though certainly not an I/O psychologist, inventor Thomas A. Edison under stood the importance of selecting the right employees. In 1920, Edison created a 163-item knowledge test that he administered to over 900 applicants. The test and passing score were so difficult that only 5% of the applicants passed!  Two of the most interesting figures in the early years of I/O psychology were the husband and wife team of Frank Gilbreth and Lillian Moller Gilbreth. The Gilbreths were among the first, if not the first, scientists to improve productivity and reduce fatigue by studying the motions used by workers.  Hawthorne studies- a series of studies, conducted at the Western Electric plant in Hawthorne, Illinois, that have come to represent any change in behavior when people react to a change in the environment. The Hawthorne studies were initially designed to investigate such issues as the effects of lighting levels, work schedules, wages, temperature, and rest breaks on employee performance.  Much to the surprise of the researchers, the actual work conditions did not affect productivity in the predicted manner. That is, there were times when productivity improved after work conditions were made worse, and times when productivity decreased after work conditions were made better. After interviewing employees and studying the matter further, the researchers realized that employees changed their behavior and became more productive because they were being studied and received attention from their managers, a condition that is now commonly referred to as the Hawthorne effect.   Hawthorne effect- When employees change their behavior due solely to the fact that they are receiving attention or are being observed. Employment of I/O Psychologist:  EDUCATION- They teach and conduct research, and sometimes perform administrative works.  CONSULTING FIRMS- They help variety of organizations to become productive such as designing systems to motivate employees, selecting high quality workforce, training them, among others.  PRIVATE SECTOR- They work in various industries such as manufacturing, digital, logistics companies.  PUBLIC SECTOR- They are assigned in government offices. Research in I/O Psychology Why Conduct Research? 1. Research ultimately saves organization’s money. Keep in mind that for most organizations, the most important thing is the profit. If I/O psychologists are not able to save the company considerably more money than it pays for their salary and expenses, they will be without a job. These monetary savings can result from many factors, including increased employee satisfaction, increased productivity, and fewer accidents. 2. Research helps in making more intelligent decisions. Understanding research helps you to critically listen and analyze results of these studies to make more intelligent decisions. 3. Research helps in clarifying “Common Sense Is Often Wrong.” Often, there is a temptation not to conduct research because the answer to a question is “common sense.” Unfortunately, common sense is not so common and is often wrong. Steps in Conducting Research in I/O Psychology 1. Decide what to research. Though the majority of I/O psychology research is conducted to test the accuracy of theories, many research ideas stem from a person starting a sentence with “I wonder.…” For example, a manager might say, “I wonder why some of my employees can’t get to work on time”; an employee might say, “I wonder if I could assemble more parts if my chair were  higher”; or a supervisor might say, “I wonder which of my employees is the best to promote.” All three seem to be ordinary questions, but each is just as valid and important in research as those asked by a professor in a university. Thus, everyone is a researcher at heart, and conducting some form of research to answer a question will undoubtedly lead to a better answer than could be obtained by guesswork alone. 2. Form a hypothesis. Once a question has been asked, the next step is to form a hypothesis—an educated prediction about the answer to a question. This prediction is usually based on a theory, previous research, or logic. If the results support the hypothesis, it becomes important to test the theory. In psychology, there are often competing theories that predict the same outcome, but for different reasons. 3. Support from literature and studies. Once a research idea has been created, the next step is to search the literature for similar research. This search is important because if the question you are interested in answering has already been researched in 20 studies, it is probably not necessary for you to conduct a new study. On the other hand, even if your specific question has not been researched before, the probability is high that similar research has been conducted. This research is useful even though it does not directly answer your question, because it can provide some good ideas on how to conduct your study. 4. Decide the location of the study. Once a research idea has been created and a hypothesis formed, you must decide whether to conduct the study in the laboratory or in the field.  Laboratory setting –not in the real world or actual setting  Field setting– Research conducted in a natural setting as opposed to a laboratory (However, it might interfere the actual production} 5. Determine the research method. After deciding the location for the research, the researcher must determine which type of research method to use. The choices include experiments, quasi- experiments, archival research, observations, surveys, and meta-analyses.  Experimental method is the most powerful of all research methods because it is the only one that can determine cause-and-effect relationships. Thus, if it is important to know whether one variable produces or causes another variable to change, then the experiment is the only method that should be used. Two characteristics define an experiment: (1) manipulation of one or more independent variables and (2) random assignment of subjects to experimental and control conditions. If either of these characteristics is missing, a research project cannot be called an experiment; instead, it is called a quasi-experiment, a study, a survey, or an investigation. In an experiment, the researcher intentionally manipulates one or more aspects of the question of interest, called the independent variable, and measures the changes that occur as a result of that manipulation, called the dependent variable. o Experimental group- the group of subjects that receives the experimental treatment of interest to the experimenter. o Control group- group of employees who do not receive a particular type of treatment so that their performance can be compared with that of employees who do receive them.  Quasi-experiments Research method in which the experimenter either does not manipulate the independent variable or in which subjects are not randomly assigned to conditions. Quasi- experiments are often used to evaluate the results of a new program implemented by an organization. For example, an organization that had instituted a child care center wanted to see whether the center had any effect on employee absenteeism. To find the answer, the organization compared absenteeism levels from the year before the center was introduced with the absenteeism levels for the year following the implementation; the organization found that both absenteeism and turnover had decreased.   Archival research- Research that involves the use of previously collected data. Archival research involves using previously collected data or records to answer a research question. For example, if we want to know what distinguishes good workers from poor workers, we could look in the personnel files to see whether the backgrounds of good workers have common characteristics not shared by poor workers.  Survey- Another method of conducting research is to ask people their opinion on some topic. Surveys might ask employees about their attitudes toward the organization, HR directors about their opinions regarding the best recruitment method, or managers about the success of their child-care centers. Surveys can be conducted via a variety of methods such as mail, personal interviews, phone, email, and the Internet.  Meta-analysis- Meta-analysis is a statistical method of reaching conclusions based on previous research. Prior to meta-analysis, a researcher interested in reviewing the literature on a topic would read all of the available research and then make a rather subjective conclusion based on the articles. With meta-analysis, the researcher goes through each article, determines the effect size for each article, and then finds a statistical average of effect sizes across all articles. A meta-analysis results in one number, called the mean effect size, which indicates the effectiveness of some variable. Correlation coefficients (r) are used as the effect size when researchers are interested in the relationship between two variables, and the majority of studies use correlation as their statistical test. Examples include studies looking at the relationship between personality and job performance, integrity test scores and employee theft, and the relationship between job satisfaction and performance. 6. Determine the subject samples. Decisions also must be made regarding the size, composition, and method of selecting the subjects who will serve as the sample in a study. Although it is nice to have a large sample for any research study, a large sample size is not necessary if the experimenter can choose a random sample and control for many of the extraneous variables. In fact, properly conducted surveys need only about 1,000 participants to generalize survey results. The method of selecting the sample is certainly dependent on the nature of the organization. A small organization will probably be forced to use all of its employees, which means that the sample will be small but highly representative of the intended population. For economical and practical reasons, a large organization will select only certain employees to participate in a study rather than use the entire workforce. 7. Run the study and collect data. When all of these decisions have been made, it is finally time to run the study and collect data. To ensure that data are collected in an unbiased fashion, it is important that all instructions to the subjects be stated in a standardized fashion and at a level that is understandable. Once the subject is finished with her participation, she should be debriefed, or told the purpose of the experiment and be given a chance to ask questions about her participation.  Debriefing- Informing the subject in an experiment about the purpose of the study in which he or she was a participant and providing any other relevant information. 8. Results will be statistically analyzed. After all data have been collected, the results are statistically analyzed. It is important to understand why statistics are used. Statistical analysis helps us determine how confident we are that our results are real and did not occur by chance alone. ETHICS IN I/O  Organizations and employees are faced with ethical dilemmas every day. Ethical dilemmas are ambiguous situations that require a personal judgment of what is right or wrong because there are no rules, policies, or laws guiding such decisions. Individuals often rely on their morals and personal values, which often leads to different decisions by different people in similar situations. Because people have different back grounds that impact their personal values and how they define a particular situation, the decision that one person makes may be very different than what another one makes.  In life, we often encounter two types of ethical dilemmas: Type A and Type B.  In a Type A dilemma, there is a high level of uncertainty as to what is right or wrong, there appears to be no best solution, and there are both positive and negative consequences to a decision. For example, many people would say that drug research that uses animals to test new drugs is unethical, because it is morally wrong to hurt any living creature. Others would say that new drugs could save millions of lives and that it would be morally wrong not to make and test drugs that could potentially save human lives. As you can see, there seems to be no one best answer, as there are both negative and positive consequences in making this decision.  In a Type B dilemma, also called rationalizing dilemmas, the difference between right and wrong is much clearer than in a Type A dilemma. Usually, individuals know what is right but choose the solution that is most advantageous to themselves. For example, choosing not to tell a prospective buyer about any past damage that occurred with a car for sale would have the most advantages for the seller. Type B dilemmas are called rationalizing dilemmas because individuals “rationalize” they are right because “everyone else does it.” For example, many students will say that they have cheated at least one time on a test. Most of those students would agree that it is morally wrong to cheat. So, why have so many done it? They rationalize that “for just this one time” it is okay and that it is not hurting anyone. And they convince themselves that because everyone else is doing it, it must be okay. ETHICAL CLIMATE The term ethical climate was introduced by Victor and Cullen in 1987 and they defined it as “the shared perception of what is correct behavior and how ethical situations should be handled in an organization” (Victor & Cullen, 1987). A year later they defined ethical climate as the “prevailing perceptions of typical organizational practices and procedures that have ethical content” (Victor & Cullen, 1988). Ethical climate theory argues that the types of ethical climates observed in organizations depend on the nature of the organizational units and their contexts. Thus, organizations develop their own norms and which serve as building blocks of the ethical climates that emerge. One principle of ethical climate theory is that there is no single ethical climate for an organization. Instead, there is a mix of multiple climates perceived by the organization’s employees. They derived five different types of ethical climate. 1) instrumental, an ethical climate that encourages serving the organization's interests; 2) caring, a climate that encourages concern for and consideration of others; 3) independence, a climate that encourages decisions according to personal moral beliefs; 4) rules, a climate that emphasizes decisions guided by internal rules and regulations; 5) law and codes, a climate that supports decisions based on external codes such as the law or professional codes of conduct. JOB ANALYSIS  Job analysis is primary tool in personnel management. The process of gathering, analyzing, and structuring information about a job’s components, characteristics, and requirements.  Job analysis is the process of studying a job to determine which activities and responsibilities it includes, its relative importance to other jobs, the qualifications necessary for performance of the job and the conditions under which the work is performed. An important concept in job analysis is that the job, not the person doing the job, is assessed, even though human resources (HR) may collect some job analysis data from incumbents.  In this method, a personnel manager tries to gather, synthesize and implement the information available regarding the workforce in the concern. A personnel manager has to undertake job analysis so as to put right man on right job.  Job analysis is often confused with job evaluation, but the two activities are quite different. Job evaluation is the process of comparing a job to other jobs within the organization to determine the appropriate pay rate. Importance of Job Analysis 1. To be able to write job description 2. To select employees- To determine whether a particular applicant possesses the necessary knowledge, skills, and abilities to carry out the requirements of the job. 3. To conduct training- Job analyses yield lists of job activities that can be systematically used to create training programs. 4. For worker mobility- This is also called succession plan, to determine what position can an employee be promoted next. One important but seldom employed use of job analysis is to determine worker mobility within an organization. That is, if individuals are hired for a particular job, to what other jobs can they expect to eventually be promoted and become successful? Many organizations have a policy of promoting the person who performs the best in the job immediately below the one in question. Although this approach has its advantages, it can result in the so-called Peter Principle.  Peter Principle: promoting employees until they eventually reach their highest level of incompetence 5. To conduct performance appraisal- Another important use of job analysis is the construction of a performance appraisal instrument (Roch & Williams, 2012). As in employee selection, the evaluation of employee performance must be job related. Employees are often evaluated with forms that use such vague categories as “dependability,” “knowledge,” and “initiative.” The use of specific, job-related categories leads to more accurate performance appraisals that are better accepted. 6. For job classification- This is to be able to classify jobs into groups based on similarities in requirements and duties. Job classification is useful for determining pay levels, transfers, and promotions. 7. To conduct job evaluation- Job analysis information can also be used to determine the worth of a job. 8. To create job design- This can be used to determine the optimal way in which a job should be performed.  9. To comply to legal guidelines- Any employment decision must be based on job-related information. One legally acceptable way to directly determine job relatedness is by job analysis. No law specifically requires a job analysis, but several important guidelines and court cases mandate job analysis for all practical purposes. Job analysis helps establish job relatedness. 10. For organizational analysis- To become aware of certain problems within an organization through JA interview. Uses of Job Analysis Data  Job descriptions and specifications HR uses the job analysis output to develop a job description and job specifications. The job description summarizes and organizes the information for the organization's job-related actions. Generally, the job description and specifications are combined but compartmentalized to enable independent updating as needed.  Compensation decisions. in relation to employee pay practices, job analysis has two critical uses: It establishes similarities and differences in job content, and it helps determine the internal equity and relative worth of like jobs. If jobs have equal content, then the pay established for them will likely be equal. If, on the other hand, job content is perceptibly different, then those differences, along with the market rates, will become part of the rationale for paying certain jobs differently.  Selection assessments. Job analysis information can also be used as a basis for selecting or developing employment assessments that measure the most critical tasks or KSAs. Some assessments involve work samples that simulate job tasks and require candidates to demonstrate that they can perform these tasks effectively. HR uses job-oriented or task-based job analysis data as a basis for developing these types of assessments because they focus directly on assessing how well job candidates can perform critical work tasks. Other assessment methods focus on measuring KSAs that are required to perform job tasks effectively, such as various mental abilities, physical abilities or personality traits, depending on the job's requirements. The information collected under job analysis are: 1. Nature of jobs required. 2. Nature/ size of organizational structure. 3. Type of people required to fit that structure. 4. The relationship of the job with other jobs. 5. Kind of qualifications and academic background required for jobs. 6. Provision of physical condition to support the activities of the concern. For example- separate cabins for managers, special cabins for the supervisors, healthy condition for workers, adequate store room for store keeper. Information Collection Job analysis involves collecting information on characteristics that differentiate jobs. The following factors help make distinctions between jobs:  Knowledge, skills and abilities (KSAs) needed.  Work activities and behaviors.   Interactions with others (internal and external).  Performance standards.  Financial budgeting and impact.  Machines and equipment used.  Working conditions.  Supervision provided and received. Advantages of Job Analysis Job analysis helps the personnel manager at the time of recruitment and selection. It helps to understand the extent and scope of training required in that field. It helps in evaluating the job in which the worth of the job has to be evaluated It helps in instances where smooth work force is required. It helps to avoid overlapping of authority- responsibility relationship so that distortion in chain of command will not happen. It also helps to chalk out the compensation plans for the employees. It helps the personnel manager to undertake performance appraisal effectively. Job Analysis Methods Determining which tasks employees perform is not easy. The most effective technique when collecting information for a job analysis is to obtain information through direct observation as well as from the most qualified incumbent(s) via questionnaires or interviews. The following describes the most common job analysis methods.  Open-ended questionnaire Job incumbents and/or managers fill out questionnaires about the KSAs necessary for the job. HR compiles the answers and publishes a composite statement of job requirements. This method produces reasonable job requirements with input from employees and managers and helps analyze many jobs with limited resources.  Highly structured questionnaire These questionnaires allow only specific responses aimed at determining the frequency with which specific tasks are performed, their relative importance and the skills required. The structured questionnaire is helpful to define a job objectively, which also enables analysis with computer models.  Interview In a face-to-face interview, the interviewer obtains the necessary information from the employee about the KSAs needed to perform the job. The interviewer uses predetermined questions, with additional follow-up questions based on the employee's response. This method works well for professional jobs.  Observation Employees are directly observed performing job tasks, and observations are translated into the necessary KSAs for the job. Observation provides a realistic view of the job's daily tasks and activities and works best for short-cycle production jobs.  Work diary or log A work diary or log is a record maintained by the employee and includes the frequency and timing of tasks. The employee keeps logs over a period of days or weeks. HR analyzes the logs, identifies patterns and translates them into duties and responsibilities. This method provides an enormous amount of data, but much of it is difficult to interpret, may not be job-related and is difficult to keep up-to-date.  Behavioral event interview Behavioral event interviewing, a competency-based job analysis, differs from the traditional job analysis, which focuses solely on the evaluation of tasks, duties and responsibilities. In behavioral event interviewing:  o A team of senior managers identifies future performance areas critical to the organization's business and strategic plans. o HR assembles panels composed of individuals who are knowledgeable about the organization's jobs (i.e., subject matter experts). These groups may be employees, managers, supervisors, trainers and others. o A facilitator interviews panel members to obtain examples of job behaviors and actual occurrences on the jobs. o The facilitator develops detailed descriptions of each identified competency, including descriptive phrases for clarity. o HR rates the competencies, and panel members identify KSAs required to meet them. o HR identifies performance standards for each job. The organization must develop and implement selection, screening, training and compensation instruments, or processes that focus on competencies. There are two outcomes of job analysis: 1. Job description 2. Job specification  JOB DESCRIPTION is an organized factual statement of job contents in the form of duties and responsibilities of a specific job. The preparation of job description is very important before a vacancy is advertised. It tells in brief the nature and type of job. This type of document is descriptive in nature and it constitutes all those facts which are related to a job such as: 1. Title/ Designation of job. - An accurate title describes the nature of the job and serves as identity. 2. Brief summary of the job The brief summary is usually in one-paragraph but should briefly describe the nature and purpose of the job. Example: JOB TITLE: HR ASSISTANT BRIEF SUMMARY: To be assigned in selection and recruitment and directly reporting to HR Supervisor. 3. WORK ACTIVITIES- The nature of duties and operations to be performed in that job. The lists of the tasks and activities in which the worker is involved. Example: Work Activities: Selection – contact applicants, performs initial interview Endorsement – coordinate with different offices Report – submit monthly turn-over report 4. TOOLS AND EQUIPMENT USED Example: Tools and Equipment used Computer, printer, photocopying machine 5. JOB CONTEXT- This describes the environment in which the employee works and should mention stress level, work schedule, physical demands, level of responsibility, temperature, number of co-workers, degree of danger, and any other relevant information.  Example: Job Context The bookkeeper spends the majority of time making entries in and balancing journals and ledgers. The work day is spent in a climate-controlled office with four co-workers. Physical demands are minimal and sitting is required for most of the day. Work hours are Monday-Friday from 8:00 a.m. to 5:00 p.m., with an unpaid hour for lunch. No weekend or holiday work is required and overtime seldom occurs. Psychological stress is usually low but becomes moderate when dealing with an angry customer. 6. WORK PERFORMANCE- This shows brief description of how an employee’s performance is evaluated and what work standards are expected of the employee. Example: Work Performance The bookkeeper is evaluated annually by the office manager using the credit union’s standard performance appraisal system. To receive an excellent performance appraisal, the bookkeeper should: - Maintain neat and accurate records - Meet all deadlines - Maintain an orderly office - Make sure all ledgers and journals balance - Perform duties of other jobs when the need arises - Have a good attendance record 7. COMPENSATION INFORMATION- This contains information on the salary grade. The actual salary should not be indicated. Example: Compensation: Salary Grade 15 with government-mandated benefits 8. JOB COMPETENCIES- These are commonly called job specifications or competencies. These are the knowledge, skills, abilities, and other characteristics (KSAOs) (such as interest, personality, and training) that are necessary to be successful on the job. This should be divided into two subsections. a. The first contains KSAOs that an employee must have at the time of hiring. b. The second subsection contains the KSAOs that are an important part of the job but can be obtained after being hired. Example JOB COMPETENCIES Upon hire, the HR personnel must: - Have bachelor’s degree in Psychology, Office Mngt., or any related fields - Knowledgeable in various HR functions After hire, the HR personnel must: - Learn general HR procedures - Learn how to complete various forms Advantages of Job Description 1. It helps the supervisors in assigning work to the subordinates so that he can guide and monitor their performances. 2. It helps in recruitment and selection procedures. 3. It assists in manpower planning. 4. It is also helpful in performance appraisal. 5. It is helpful in job evaluation in order to decide about rate of remuneration for a specific job. 6. It also helps in chalking out training and development programs. JOB SPECIFICATION is a statement which tells us minimum acceptable human qualities which helps to perform a job. Job specification translates the job description into human qualifications so that a job can be performed in a better manner. Job specification helps in hiring an appropriate person for an appropriate position. The contents of Job Specification are: 1. Job title and designation 2. Educational qualifications for that title 3. Physical and other related attributes 4. Physique and mental health 5. Special attributes and abilities 6. Maturity and dependability 7. Relationship of that job with other jobs in a concern. Advantages of Job Specification 1. It is helpful in preliminary screening in the selection procedure. 2. It helps in giving due justification to each job. 3. It also helps in designing training and development programs. 4. It helps the supervisors for counseling and monitoring performance of employees. 5. It helps in job evaluation. 6. It helps the management to take decisions regarding promotion, transfers and giving extra benefits to the employees. Steps in Conducting Job Analysis Step 1: Identify Tasks Performed The first step in conducting a job analysis is to identify the major job dimensions and the tasks performed for each dimension, the tools and equipment used to perform the tasks, and the conditions under which the tasks are performed. This information is usually gathered by obtaining previous information on the job, interviewing job incumbents, observing performance, or actually performing the job itself. Step 2: Write Task Statements Once the tasks have been identified, the next step is to write the task statements that will be used in the task inventory and included in the job description. At the minimum, a properly written task statement must contain an action (what is done) and an object (to which the action is done). Often, task statements will also include such components as where the task is done, how it is done, why it is done, and when it is done. Step 3: Rate Task Statements Once the task statements have been written, the next step is to conduct a task analysis—using a group of SMEs (Subject Matter Experts) to rate each task statement on the frequency and the importance or criticality of the task being per formed.  Task analysis- The process of identifying the tasks for which employees need to be trained. Step4: Determine Essential KSAOs Once the task analysis is completed and a job analyst has a list of tasks that are essential for the proper performance of a job, the next step is to identify the KSAOs needed to perform the tasks.  Knowledge-A body of information needed to perform a task.  Skill-The proficiency to perform a learned task.  Ability-The basic capacity for performing a wide range of tasks, acquiring a knowledge, or developing a skill.  Other Characteristics-Factors that are not knowledge, skills, or abilities such as personality, willingness, interest, and degrees. Step 5: Selecting Tests to Tap KSAOs Once the important KSAOs have been identified, the next step is to determine the best methods to tap the KSAOs needed at the time of hire. These methods will be used to select new employees and include such methods as interviews, work samples, ability tests, personality tests, reference checks, integrity tests, biodata, and assessment centers. Specific Job Analysis Techniques a. JOB ELEMENT METHOD- A job analysis method that analyzes jobs in terms of the KSAOs required to perform the jobs. b. POSITION ANALYSIS QUESTIONNAIRE- A structured questionnaire that analyzes various jobs in terms of 187 job elements into 6 categories - information input, mental processes, work output, relationships with other persons, job context, and other job-related variables. c. PERSONALITY-RELATED POSITION REQUIREMENTS FORM- A job analysis method that identify the personality dimensions under the “BIG 5” needed to perform job-related tasks. d. CRITICAL INCIDENTS TECHNIQUE- A job analysis technique that discovers actual incidents of job behavior that make the difference between a job’s successful or unsuccessful. e. FUNCTIONAL JOB ANALYSIS- Experts meets to identify the key functions of a job (what gets done) as well as the tasks performed to complete each function. What makes FJA unique, is that once the SMEs have identified these functions and tasks, they assign a percentage of time the incumbent spends on three functions: data (information and ideas), people (clients, customers, and coworkers), and things (machines, tools, and equipment). Other techniques or applications used: a. O*NET includes information about the occupation (generalized work activities, work context, organizational context) and the worker characteristics (ability, work style, occupational values and interests, knowledge, skills, education) needed for success in the occupation. b. Dictionary of Occupational Titles (DOT)- It was created by U.S. Department of Labor in1991. It was reference guide that classifies and describes over 40,000 jobs. c. Index of Occupational Services- In the Philippine context, this contains job titles with its corresponding salary grade, created by the Department of Budget and Management. JOB EVALUATION  The process of determining how much employees in a position should be paid.  Once a job analysis has been completed and a thorough job description written, it is important to determine how much employees in a position should be paid. This process of determining a job’s worth is called job evaluation. A job evaluation is typically done in two stages: determining internal pay equity and determining external pay equity. STEP 1. Determining Internal Pay Equity COMPENSABLE JOB FACTORS- Factors, such as responsibility and education requirements, that differentiate the relative worth of jobs  1. Level of responsibility 2. Physical demands 3. Mental demands 4. Education requirements 5. Training and experience requirements 6. Working conditions The philosophical perspectives of the job evaluator can affect these factors. Some evaluators argue that the most important compensable factor is responsibility and that physical demands are unimportant. Others argue that education is the most important. The choice of compensable factors thus is often more philosophical than empirical. Step 2: Determining the Levels for Each Compensable Factor Once the compensable factors have been selected, the next step is to determine the levels for each factor. For a factor such as education, the levels are easy to determine (e.g., high school diploma, associate’s degree, bachelor’s degree). For factors such as responsibility, a considerable amount of time and discussion may be required to determine the levels. This also involves comparing the job to the external market (other organizations or companies). This is important to attract and retain employees. Salary surveys or benchmarking can be done. DIRECT COMPENSATION - the amount of money a job is worth  HOLIDAY PAY – Legal Holidays, Sick Leave, Vacation Leave  DEFERRED INCOME – SSS, PAG-IBIG contributions  HEALTH PROTECTION – PhilHealth and/or Health card contributions