I_O Psychology.pdf

Introduction and History of I/O Difference Between I/O and Human Resource Management I/O Psychology Human Resource Management Study of behavior in work settings Policies, practices and systems Application of Psychological...

Introduction and History of I/O Difference Between I/O and Human Resource Management I/O Psychology Human Resource Management Study of behavior in work settings Policies, practices and systems Application of Psychological that influence employees’ Principles in the workplace Relies extensively on research behavior, attitude and methods performance Mostly applied in the HR Field HRM Practices Extremely reliant on quantitative Focused on all HR functions and models, metrics and statistics its administration More in line with strategies and Deals more with law compliance analytics Inclined to develop metric tools History of I/O Psychology 1881 first school of professional management was started at University of Pennsylvania ○ Joseph Wharton donated $100,000 to establish it W.L Bryan (1903) gave an address to APA to encourage Psychologists to study “concrete activities and functions as they appear in everyday life” Walter Dill Scott Applied psychological principles in advertising “Theory and Practice of Advertising” first book with that topic First to found a psychological consultancy company Applied Psychologist Hugo Munsterberg Head of Harvard Psychology Laboratory “Psychology and Industrial Efficiency” Encouraged to apply experimental methods to solve practical business problems Integrate I/O into coherent system 3 models for I/O analysis ○ Identified mental qualities of the best worker for a job ○ Defined mental conditions influencing best performance ○ Described how business could best use psychology to increase economic efficiency Frederick W. Taylor Realized the value of redesigning work to achieve both higher output for the company and higher wages for the workers “The principles of Scientific Management” ○ Scientifically design work methods for efficiency ○ Select best workers and training them with the best methods Walter Van Dyke Bingham Responsible for entrance tests, vocational training and execution of courses in psychology and education Applied his methods of personnel selection and vocational training outside of Carnegie Institute Developed the Bureau of Salesmanship Research to train salespeople Lillian Moller Gilbreth Contributed the time-and-motion analysis, a technique to improve efficiency in job performance. Recognized the effects of fatigue and stress on time management Work with her husband helped create job standardization and incentive wage-plans World War I Rise of the need of military to select and train thousands of recruits Provided opportunity for I/O Lewis Terman and Robert Mearns Yerkes Contributed to war efforts by designing quick-to-administer intelligence tests Designed the Army Alpha and Army Beta testing Alpha tests were used for recruits who could read while Beta for those could not Alpha tests have become common on IQ Tests Between the Wars Most of global economies were in decline Recession in US led to unemployment Decreased need for military and industrial training I/O focus shifted to investigating the effects of unemployment and impact on human cognition I/O was criticized during the great depression for overstating I/O capabilities James Cattell Started the Psychological Corporation in 1921 Purpose was to advance psychology and promote usefulness in the industry Maintain quality reputation of field through referrals Now serves as the largest publishers of psychological tests Elton Mayo Conducted the Hawthorne Studies First investigated physical work conditions such as lighting and temperature on productivity of employees Because of the interview of employees, realized that psychological and social aspects are far more important than physical conditions Broadened I/O from personnel selection and mental testing ○ Social relationships ○ Employee attitudes ○ Team development ○ Supervision to employee productivity Kurt Lewin Main contribution was the study of group dynamics, job satisfaction and leadership effectiveness Defined three leadership styles ○ Authoritarian ○ Democratic ○ Laissez-faire Originated the term “action research” which is now known as “action learning” or “collaborative learning” American Association of Applied Psychology Established in 1937 through collaboration of I/O Psychologists and Academic Psychologists Still exists and merged with the APA Main responsibilities in I/O are: ○ Promotion of research of I/O ○ Promotion of applied psychology in the industry, business and vocational fields World War II through 1960 Mental testing and screening were then utilized by the US army to select officers, pilots and submarine crews Development of high-speed aircrafts demanded skilled pilots “Aircrew Classification Test Battery” and “Army General Classification Test” Effects of war resulted on expectation of democracy in the workplace Focus shifted from manufacturing to customer oriented Metamorphosis of I/O Civil rights movement, feminist movement and Vietnam war contributed to changes in I/O Diversity issues such as race and gender Discrimination in the workplace Illegal employment / promotional discrimination Development of I/O tests which could be transport, valid and fair  Opened up new scopes such as cognitive abilities, job performance and job analysis Motivation and goal-setting was another theme that was investigated Edwin Locke’s research on goal-setting and motivation SMART goals were researched by I/O Psychologists and confirmed to be effective Present times I/O is still as effective as it were. Modern application includes assessments, job analysis, leadership, diversity management and development Work-life balance, Organizational culture and motivation are common themes Productivity enhancement strategies in modern times Four Trends in Industrial Psychology Changing nature of work Expanding focus on human resources Increasing diversity in the workforce Increasing globalization of businesses Job Analysis Use of Job Analysis Writing Job Description - Document all relevant information about the job Employee Selection - Selecting the best candidate for the job Training - Identifying the training needs for the job Personpower Planning - Worker mobility (career growth, increase in job responsibilities etc.) ○ Can lead to Peter Principle (Promoting employees to their highest level of incompetence) Job Classification - Categorizing jobs into groups (useful for determining pay levels, transfers and promotions) Job Evaluation - Determining the worth of the job Job Design - Optimizing the job Performance Evaluation - Rating the actual performance of the employee Organizational Analysis - Identifying possible problems / strengths of the organization Legal Issues - Assurance that job is within agreement of the state law  Steps in Job Analysis Identify tasks Write Task Rate Task Selection strategies Determine KSAO performed Statements Statements to tap KSAO Determine human Identifying best qualities needed to methodologies to tap perform the job the KSAO needed for Gather Existing Identify all the tasks that Determine each task’s the job Information the position will do and hierarchy of Knowledge develop a Task importance and its Information needed to Interview SME (Subject- Inventory perform the job Methodologies can frequency Matter Experts) range from A quality Task *List of tasks came from Skills Achievement Tests, Job Participation Statement is written in the Task Inventory Learned task Psychological Tests, detail Work Participation, Abilities Interviews, etc. Innate capacity Others Personality, Motivation, License, Degree etc. Write Task Statements (Developing Task Inventory) Position: Technical Recruiter 1 Attend Business Meetings with managers 2 Source for candidates using job portals (JobStreet, LinkedIn, Monster) Perform Phone Interviews using the corporation provided telephone tool 3 (Avaya) 4 Create Applicant Summary Rate task statement (Task Analysis) SME 1 # Task Frequency Importance 1 Attend Business Meetings with managers 1 2 2 Source for candidates using job portals 4 3 3 Perform Phone Interviews 2 4 4 Create Applicant Summary 2 4 SME 2 # Task Frequency Importance 1 Attend Business Meetings with managers 1 1 2 Source for candidates using job portals 5 2 3 Perform Phone Interviews 1 5 4 Create Applicant Summary 1 4 Task Analysis Results # Task Frequency Ave Importance Ave 1 Attend Business Meetings with managers 1 1.5 2 Source for candidates using job portals 4.5 2.5 3 Perform Phone Interviews 1.5 4.5 4 Create Applicant Summary 1.5 4 Check if the Task Analysis results align with the Job Title  Determine KSAO Attend Business Meetings with Create Applicant Source for candidates using job portals Perform Phone Interviews managers Summary Listening Comprehension Using Job portals Using Telephonic tool Using MS word Business Acumen Knowledge on Boolean search strings English Grammar Writing skills Knowledge on terminologies related to English Grammar Listening Comprehension English Grammar requisition Knowledge on Knowledge on terminologies terminologies related to related to requisition requisition Business Acumen Business Acumen  Select test to tap KSAO Attend Business Meetings with Create Applicant Source for candidates using job portals Perform Phone Interviews managers Summary Comprehension Test Achievement test Grammar Test Essay Writing Mock Sourcing Test Achievement test Grammar Test Mock Interview Job Design Designing for efficiency - Ensure that the job is optimized Designing for motivation - Ensure that the job taps the human motivational factors ○ Job simplification - Removing tasks and complexities from the job ○ Job rotation - Tasks are rotated among the team / colleagues ○ Job enlargement - Inclusion of new tasks ○ Job enrichment - Providing control over the job (Empowerment) Designing for ergonomics - Ensure that the tools required for the job are optimized Designing for meeting mental capabilities and limitations - Identify the mental capabilities and limitations needed for the job and ensure that the job and it’s growth will align. Job Evaluation Determining Equity in Pay among Determining Internal Pay Equity Determining External Pay Equity different identity groups Identifying a job’s worth through the Comparison with the job’s external Assurance of comparable worth compensable factors market among the different identity groups (gender, race, ethnic group etc.) Done through the following steps: Important for attracting and retaining employees Assures that salary is based on 1) Determine Compensable Factors objective basis Done through Salary Surveys, 2) Determine level of each Research on Job Postings, Trade Done through internal research Compensable Factors Groups and Organizational Associations 3) Determine each factor’s weights Determine Compensable Job Factors Compensable Factor Level of responsibility Physical demands Mental demands Education requirements Training and experience requirements Working conditions Determine Levels of Each Compensable Factors Level of responsibility Educational Requirements No Decision No educational requirements Decisions for self Bachelor's Degree Decisions for 1 - 5 people Master's Degree Decisions for more than 5 employees PhD Physical demands Training and experience requirements Shift Regular Shift Entry level Mid Shift Senior level Night Shift Subject-matter Expert Calls No calls Supervisory Makes 5 - 10 calls per day Managerial Makes more than 10 calls per day Determine Factor Weights Level of responsibility (MAX: 300) Points Educational Requirements (MAX: 200) Points No Decision 75 No educational requirements 50 Decisions for self 150 Bachelor's Degree 100 Decisions for 1 - 5 people 225 Master's Degree 150 Decisions for more than 5 employees 300 PhD 200 Physical demands (MAX: 150 ea) Points Training and experience requirements (MAX: 200) Points Shift Regular Shift 50 Entry level 50 Mid Shift 100 Night Shift 150 Senior level 100 Calls Supervisory 150 No calls 50 Makes 5 - 10 calls per day 100 Managerial 200 Makes more than 10 calls per day 150 Job Description Job title - Title of the Job Job summary - Overview of the job Job relationships - Position in the Organizational Chart and the Organizational Process Responsibilities and duties - Tasks, scopes and liabilities of the job Standards of performance - Expectation from the job holder Work Context - Work environment, schedule etc. Job specification - Needed KSAO to perform the job Compensation - Based Job Evaluation Problems with Job Description Poorly written Not updated Violation of the law Limit the scope of activities of the job holder Problems with Job Analysis Top management support is missing Only a single means and source are used for gathering data The supervisor and jobholder do not participate in the design of the job analysis procedure No training or motivation exists for job holders Employees are not allowed sufficient time Activities may be distorted Failure in critique of the job Activity 2 (Group-work) Identify different roles needed on your group in order to complete all the course requirements for this class Conduct a Job Analysis for each role for your group Develop a Job Description for each role Deadline of Submission: September 24, 11:59 PM Submit to: [email protected] RECRUITMENT AND SELECTION Recruitment Internal Recruitment - seeking candidates through the use of organizational resources and network External Recruitment - seeking candidates through outside channels Internal Recruitment Employee Database - HR Systems that keeps track of all the employee data within an organization Job posting - Utilizing organizational systems to look for candidates within the organization seeking lateral movements Promotions - Expanding the responsibilities of current role of employees who are candidate for promotion Transfers - Organizational initiative to move employees from one position to another Current-Employee referrals - Sourcing through employee’s network External Recruitment Media sources ○ Newspaper ○ Electronic media (Television, Radio, Social Media) ○ Apply-in-person ads (Fliers, Brochures, Billboards etc.) ○ Blind box (Advertisement without source) Internet recruiting ○ Employer websites (Organizational presence in the internet) Employment agencies and Headhunters (Specialized Professionals Referrals (Referrals from external candidates) School / Campus Recruitment ○ Job fair Employment Interviews Structure ○ Structured (Interview directly taps the necessary KSAO) ○ Unstructured (Interview is laid-back and utilized to identify the quality of the person rather than KSAO) Style ○ One-on-one interviews ○ Serial Interviews ○ Return Interviews ○ Panel Interviews ○ Group Interviews Medium ○ Face to face ○ Telephone ○ Videoconference ○ Written Structured Interview Determine KSAO to Tap Create Interview questions ○ Clarifier (Designed to clarify information) ○ Disqualifier (Has an appropriate answer) ○ Skill-level determiner (Determine the candidate’s skill level) ○ Past-focused (Identify patterned behaviors) ○ Future-focused (Situational questions) ○ Organizational fit (Questions to determine culture fit) Create scoring key for interview answers ○ Right/wrong approach ○ Typical Answer approach ○ Key-issues approach Realistic Job Previews Recruitment method that provides an applicant an honest assessment of a job Expectation-lowering-procedure – lowers an applicants expectation about work and expectations in general Testing To confirm details provided during the interview Checking for discipline problems Discovering new information Predicting future performance Characteristics of a good Test Validity - Inferences from tests are justified by evidences ○ Content Validity ○ Criterion Validity Concurrent Validity Predictive Validity ○ Construct Validity Convergent Validity Discriminant Validity Reliability - Extent where test results are stable ○ Test-Retest Reliability ○ Alternate-Forms Reliability ○ Internal Reliability Other selection methods Work samples Assessment Centers ○ In-basket exercises ○ Leaderless group discussions ○ Role playing ○ Management games ○ Individual presentations Predicting performance through applicant ability Cognitive Ability (Language comprehension, numerical capability, creativity etc.) Perceptual Ability (Vision, color discrimination etc.) Psychomotor Ability (Dexterity, control precision etc.) Physical Ability (Physical strength, stamina etc.) Predicting performance using experience Experience ratings (Years of experience, level of knowledge etc.) Biodata (Relatedness of education and training) Predicting performance using personality, interest and character Personality Inventories Interest Inventories Integrity tests Conditional Reasoning Tests (Applicants are provided with statements and they give reasons to justify the statement) Credit History Predicting performance limitations due to medical and psychological problems Drug testing Psychological Exams Medical Exams Factors affecting the decision making process Social/Interpersonal Factors ○ Verbal and nonverbal cues Cognitive Factors ○ Pre-interview impressions and confirmation bias ○ First impression ○ Prototypes and stereotypes ○ Contrast effects ○ Information recall Individual Differences ○ Applicant appearance and other personal characteristics Effects of Structure (Nepotism) Activity 3 Develop a structured interview for each of the roles you provided during Activity 2 Utilize the structured interview to identify which group member fits the best for the role Output is: ○ The structured interview (Word or PDF) ○ List of group members and their designated position ○ Justification of why the members are put into their position TRAINING AND DEVELOPMENT Difference between Training and Development Training Development Designed for non managers and Involves only managerial personnel managers Short-term process Long-term in nature Learn technical knowledge and Learn conceptual and theoretical skills knowledge Specific Broad Concerned with immediate Process to make employee efficient improvement in handling critical situations in the future Learning new things and refreshing Implementing the learned sessions old ones and finding new ones Strategic approach to training and development 1. Training Needs Analysis 2. Training Program Design 3. Implementation of the Training 4. Evaluation of Training 1. Training Needs Analysis Organizational Analysis Task Analysis Person Analysis Organizational Analysis Focus on Organizational Goals How training can be used to achieve those goals Organization’s ability to conduct training Extent which employees are willing to be trained Organizational Support Task Analysis Based on Job Analysis Identify tasks performed by each employee Identify conditions needed for tasks to be performed Identify needed competencies Identify how employees learn to perform these tasks Methods: ○ Interviews ○ Observation ○ Task Inventories Person Analysis Based on assumption that not all employees have the necessary skills Focused on the KSAO of a person and the competencies needed for the job Methods: ○ Performance Appraisal Scores ○ Surveys ○ Interviews ○ Skills and Knowledge Tests ○ Interviews 2. Training Program Design Establish goals and objectives Motivating Employees Choosing the best training method Establish goals and objectives What learners are expected to do The conditions under which they are expected to do it The levels in which they are expected to do it Motivating Employees Motivating employees to attend training Motivating employees to perform well in training Motivating employees to use their training on the job Choosing the best training method Classroom Training Case Studies to apply knowledge Simulation Exercises Role Playing Behavior Modeling Distance Learning OJT Classroom Training Also known as lectures or seminars Most common form of training Can be conducted by a member of the training staff or a training outfit Case Studies to apply knowledge Effective in applying knowledge and learning problem solving skills Similar to leaderless group discussions and situational interviews Cases should be taken from actual situations Use of living cases are superior than typical cases Good sources for developing analysis, synthesis, and evaluation skills Simulation Exercises Allows the trainee to practice newly learned skills Allows the trainee to work with equipment under actual working conditions without the consequences of mistakes. Use of technology Role-playing Allows the trainee to perform necessary interpersonal skills Used in many types of training situations, from performance appraisal to sales talk Behavior Modeling Trainees role-play ideal behavior rather than the behavior they might normally perform Steps: ○ Discussion of a problem ○ Why it occurred ○ Identify employee behaviors necessary to correct the problem (learning points) ○ View videos or actual situations where other employees correctly and incorrectly solve the problem ○ Trainees mentally rehearse the solution ○ Roleplay For behavior modeling to be successful, the videos must represent commonly encountered problems and situations An important and related issue is whether employees should be trained on specific situational skills or on generic skills that will cover any situation. Distance Learning A way of learning remotely Advantage of allowing trainees to learn at their own pace Can result in increased working hours Use of Programmed Instructions (step-by-step) ○ Use of books, videos or interactive videos ○ Use of web-based programmed instructions Computer-based Training E-Learning Webinars Webcasts Blogs Wikis On-the-Job Training Learning by modeling others (social learning) Characteristics of the Model Characteristics of the Observer Job rotation (cross-training) Apprentice training Coaching and Mentoring ○ Coaching Experienced employees as coaches Pass-through programs Professional Coaches ○ Mentoring 3. Implementation of Training Initial Decisions Preparing for Classroom Training Delivering the Training Initial Decisions Who will conduct Where will the training be held How long is the training Preparing for Classroom Training Adjusting for audience Developing Training Curriculum Creating Handouts Delivering the Training Introduction of trainer and training session Using Icebreakers and Energizers Creating the presentation 4. Evaluation of Training Research design for evaluation Evaluation criteria Research design for evaluation Pretest – Posttest Introduction of control group Solomon four-group designs Evaluation Criteria Content validity Employee reactions Employee learning Transfer of Training Business Impact Return of Investment Content Validity Comparing training content with the knowledge, skills, and abilities required to perform a job. Ensures the effectiveness of the training Done by utilizing documented previous training successes Employee Reactions Done by asking employees if they enjoyed the training and learned from it ○ Surveys Important to motivate employees to attend training programs and transfer of training Lowest form of training evaluation Employee Learning Use of metrics to determine learning Used in research designs for evaluation Tests must be reliable and valid Application of Training (Transfer of Training) Extent which employees apply their training to their job Often measured by supervisor appraisals or “secret-shoppers” Business Impact Evaluating whether the goals for training were met. Return on Investment (ROI) Did the company save money from the training? How much is the cost of training and how much revenue is brought? PERFORMANCE APPRAISAL Performance Appraisal 1. Determine purpose of appraisal 2. Identify environmental and cultural limitations 3. Determine who will evaluate the performance 4. Select the best appraisal methods to accomplish goals 5. Train raters 6. Observe and document performance 7. Evaluate performance 8. Communicate appraisal results to employees 9. Make personnel decisions 1. Determine purpose of appraisal Providing Employee Feedback Determining Salary Increase Making Promotion Decisions Making Termination Decisions Conducting Personnel Research 2. Identify environmental and cultural limitations Environmental factors such as time constraints Financial budget for developing metrics Organizational culture 3. Determine who will evaluate the performance Source of appraisal People who will appraise Source of appraisal Traditionally, only supervisors are doing the appraisal 360 Feedback (Multi-source feedback) People who will appraise Manager/Supervisor Appraisal Peer Appraisal Self-Appraisal Subordinate Appraisal Team Appraisal Customer-Supplier Appraisal 4. Select the best appraisal methods to accomplish goals Select performance criteria and appraisal methods Methods of measuring criteria are chosen and created Decision on appraisal dimension and whether to use ranking or rating Appraisal Dimensions Trait-focused Competency-focused Task-focused Goal-focused Contextual performance Should Dimensions be weighted? Used to establish importance of some dimensions compared to others Has huge advantages and benefits but harder to compute and explain to employees Use of employee comparisons, objective measures and ratings Employee Comparisons Objective Measures Ratings of performance Employee Comparisons Rank Order Paired Comparisons Forced Distribution (done using the bell curve) Objective Measures Quantity of work Quality of work Attendance Safety Ratings of performance Graphic Rating Scale Behavioral Checklists Comparison with other employees Frequency of desired behaviors Extent to which organizational expectations are met 5. Train Raters Training supervisors to evaluate performance It increases the validity of the performance appraisal Frame-of-reference training 6. Observe and Document Performance Observe employee behaviors and critical incidents Documentation of behaviors and critical incidents Forces a supervisor to focus on employee behaviors rather than traits Helps supervisors recall behaviors Supervisor’s usually recall ○ First impressions ○ Recent behaviors ○ Unusual or extreme behaviors ○ Behavior consistent with supervisor’s opinion ○ Provides examples to use when reviewing performance ratings ○ Helps an organization defend against legal actions ○ A Logbook of critical incidents beneficial to supervisors aside from observed documents 7. Evaluate Performance Obtaining and reviewing Object Data Reading Critical Incidents Log Complete rating form ○ Avoid Rating Errors Rating Error Distribution Error ○ Leniency Error ○ Central Tendency Error ○ Strictness Error Halo Error Proximity Error Contrast Error ○ Assimilation  Low Reliability across raters (From multiple sources) Sampling Problems ○ Recency Effect ○ Infrequent Observations Cognitive Processing of Observed Behavior ○ Emotional State ○ Bias 8. Communicating Appraisal Results Prior the Interview ○ Allocation of time ○ Scheduling the interview ○ Preparing the Interview During the interview ○ Initial Rapport Role of performance appraisal How the performance appraisal was conducted How evaluation process ○ Discuss the reasons an employee’s performance fundamental attribution error ○ Find solutions 9. Make Personnel Decisions Probationary Period Violation of Company Rules Inability to Perform Reduction of force (layoff) EMPLOYEE MOTIVATION Factors that affect employee motivation Employee Predisposition Meeting of Employee Values and Expectations Employee’s Goals Equal distribution of rewards and resources Motivation of Colleagues Employee Predisposition Self-Esteem Intrinsic Motivation Needs for Achievement and Power Self-Esteem Consistency Theory - People perform based on their self-esteem ○ Chronic Self Esteem ○ Situational Self Esteem ○ Socially Influenced Self-Esteem Addressing Self Esteem Issues Self-Esteem Workshops Experience with Success ○ Self-fulfilling prophecy Galatea Effect (Expectations on one’s own capability) Pygmalion Effect (Positive expectation towards self from others) Golem Effect (Negative expectation towards self from others) Intrinsic Motivation Intrinsic Motivation ○ Motivation is based on internal rewards Extrinsic Motivation ○ Motivation is based on external rewards Needs for Achievement and Power Need for Achievement ○ Motivation is based on accomplishments and overcoming challenges Need for Affiliation ○ Motivation is based on a person’s need to be connected with people Need for Power ○ Motivation is based on the wanting to influence others or outcomes Meeting of Employee Values and Expectations Job Expectations Job Characteristics Needs Values and Wants ○ Motivational Theories job characteristics theory. According to Richard Hackman and Greg Oldham's Job Characteristics Theory (1976), employees desire meaningful jobs, opportunities to be responsible for the results of their work and feedback of the outcomes of their efforts. Needs, Values and Wants Discrepancy between an employee’s needs values and wants can lead to demotivation Motivational theories focuses on these aspects to address issues Motivational Theories Maslow’s Hierarchy of Needs ERG Theory Two-Factor Theory Maslow’s Heirarchy of Needs Basic Biological Needs Safety Needs Social Needs Ego Needs Self-Actualization Needs Transcendental Needs ERG Theory Adelfer’s Theory Three levels of satisfaction (ERG) ○ Existence ○ Relatedness ○ Growth Can skip levels Two-Factor Theory Hygiene Factors (Necessities) Motivators self determination theory. emphasizes the relevance of intrinsic motivation for persistence and task enjoyment Employee’s Goals Achievable Goals (SMART goals) Feedback on their goal progress Rewards for achieving goals Feedback on their goal progress Feedback on goals increases effectiveness of goal-setting Can be done: ○ Verbally ○ Charts ○ Non-verbal communication Self-Regulation Theory Employees monitor their own progress Management of impulses Rewards for achieving goals Providing incentives to employees for achieving goals ○ Operant Conditioning Timing of the incentive Contingency of Consequences Type of Incentive Used Individual Vs Group Incentives Rewards Vs. Punishment Timing of the Incentive When will the incentive / punishment take place Reinforcement or Punishment of behavior is most effective if it occurs soon after the behavior Contingency of Consequences Understanding the reason for rewards and punishments ○ If you do x then y happens Reward and punishment must be made contingent upon performance, and this contingency of consequence must be clear to employees if we want them to be motivated Type of Incentives Used Premack Principle Financial Rewards Recognition Travel Premack Principle Reinforcement is relative Reinforcement Hierarchy Individual-based VS group-based incentives Individual Incentive Plans ○ Pay for Performance Merit Increase Sales Commissions Group Incentive Plans ○ Profit Sharing ○ Gainsharing ○ Stock Options Rewards Vs. Punishment Substitution of reward programs with punishment programs is also viable An employee must understand why he is being punished and be shown alternative ways of behaving that will result in some type of desired reinforcement. Punishment must “fit the crime” Must be done Privately Equal distribution of rewards and resources Equity Theory ○ Employees will be satisfied if their ratio of effort to reward is similar to that of other employees ○ Inputs ○ Outputs ○ Input / Output Ratio Motivation of Colleagues Employees are affected by co-workers motivation Veteran employee’s opinion has great effect on new hires Can be controlled by promoting a healthy working environment