IOP-History-of-IO-Organization-Theories.pdf

Industrial /Organizational Psychology Prepared by: Lance Cary D. Fuentes, RPm, CHRP, CHRA  Chapter 1: History of Industrial- Organizational Psychology Prepared by: Lance Cary D. Fuentes, RPm, CHRP, CHRA What is I/O Psychology? The application of methods, facts, principles of...

Industrial /Organizational Psychology Prepared by: Lance Cary D. Fuentes, RPm, CHRP, CHRA  Chapter 1: History of Industrial- Organizational Psychology Prepared by: Lance Cary D. Fuentes, RPm, CHRP, CHRA What is I/O Psychology? The application of methods, facts, principles of the science of psychology to people at work. I/O psychologists observe behavior of employees at their workplace under well-controlled conditions. The purpose of I/O Psychology is “to enhance the dignity and performance of human beings, and the organizations they work in.”  Industrial Organizational The Industrial The Organizational Approach focuses Approach creates on determining the an organizational competencies needed to perform What is “I” and “O” structure and culture that will for a job, staffing in motivate employees to I/O Psychology? the organization with those perform well and competencies, and provide safe increasing those working conditions competencies that will results in through training a satisfying work- life-environment.  Characteristics of I/O Psychology Systematic study Research I/O Psychology is the systematic All interventions implemented in study of human behavior the workplace must be based on concerned with collecting data science and research plays a about human behavior at work major role in I/O Psychology. Functional/Applied Ergonomics I/O Psychology must be I/O Psychology includes various applicable to the industrial- methods to better utilize organization human life. human effort at work.  Scientist-PractitionerModel A model or framework for education in an academic discipline based on understanding the scientific principles and findings evidenced in the discipline and how they provide the basis for the professional practice. I/O Psychology adheres to this model.  Scopes of I/O Psychology Scientific Selection I/O Psychology of workers Work should be properly helps workers divided according to become efficient Proper Production abilities, skills, aptitude, at work division of increase work etc. I/O Psychology I/O Psychology offers a range I/O Psychology studies develops industrial of tests to psychological factors relations among choose the employees, Developing Minimizing causing fatigue or employers, and the Industrial best fit wastage of accident. law Relations employees human efforts Promotes labor welfare by I/O Psychology promotes introducing adequate working enhancement of human relations Enhancement of Promoting environment through job which is vital to every human relations Labor Welfare satisfaction, work efficiency, and organization just compensation.  History of I/O Psychology 1904 1910 1914&1939 1946-present IO Psychology The two world wars were W.L. Bryan major catalysts for I/O APA created the Division of became legitimate Psychology. Tests were Industrial Psychology. address the need specialty area of used to screen recruits to study concrete psychology. for mental deficiency. Later, more focus was given on the “O” or the activities and Psychologists organization. Army Alpha – functions as they demonstrated the screening test used for value of psychology literate. Civil Rights Act was passed appear in in solving problems in Army Beta – screening to address issue of everyday life. helping society. test used for illiterate. discrimination Hawthorne Studies Time & Motion Studies Founding Figures of IO Psychology A study conducted to - Studies that 1. Technology Take Over determine the relationship prescribe the most 2. Work-Life-Balance W.D. Scott between lighting and 3. More women in the efficient body motions F.W. Taylor efficiency but revealed workplace per unit of time to L.M. Gilbreth that having people 4. Fast-pace perform a particular H. Munsterberg observe them affects how 5. Post-Pandemic work task they work, termed as the Economic Crisis observer effect or the Hawthorne Effect. FoundingfiguresofI/OPsychology Walter Dill Scott, a psychologist, was persuaded to give a talk to some Chicago business leaders on the need for applying psychology to advertising. His talk was well received and led to the publication of two books: The Theory of Advertising (1903) and The Psychology of Advertising (1908). The first book dealt with suggestion and argument as means of influencing people. The second book was aimed at improving human efficiency with such tactics as imitation, competition, loyalty, and concentration. By 1911, Scott had expanded his areas of interest and published two more books: Influencing Men in Business and Increasing Human Efficiency in Business. FoundingfiguresofI/OPsychology Lillian Moller Gilbreth was one of several female psychologists who made substantial contributions in the early era of I /O psychology. Along with her husband, Frank, she pioneered industrial management techniques that are still used. She was more concerned with the human aspects of time management. Lillian Gilbreth was among the first to recognize the effects of stress and fatigue on workers. Gilbreth remarked that the human being, of course, was the most important element in industry, and that it seemed to her this element had not been receiving the attention it warranted. FoundingfiguresofI/OPsychology Hugo Münsterberg was a German psychologist with traditional academic training. He was interested in applying traditional psychological methods to practical industrial problems. One of Munsterberg’s most renowned studies involved determining what makes a safe trolley car operator. He systematically studied all aspects of the job, developed an ingenious laboratory simulation of a trolley car, and concluded that a good operator could comprehend simultaneously all of the influences that bear on the car’s progress Munsterberg’s influence in the history of the field is well evidenced by the coterie of I /O psychologists who were guided by his teachings. The primary emphasis of the early work in I /O psychology was on the economic gains that could be accrued by applying the ideas and methods of psychology to problems in business and industry. Business leaders began to employ psychologists, and some psychologists entered applied research. FoundingfiguresofI/OPsychology Frederick W. Taylor. Taylor was an engineer by profession. As he worked himself up through one company as a worker, supervisor, and finally plant manager, Taylor realized the value of redesigning the work situation to achieve both higher output for the company and a higher wage for the worker. His best known work is his book The Principles of Scientific Management (1911). Van De Water (1997) reported these principles as: (1) science over rule of thumb, (2) scientific selection and training, (3) cooperation over individualism, and (4) equal division of work best suited to management and employees. FoundingfiguresofI/OPsychology In perhaps the most famous example of his methods, Taylor showed that workers who handled heavy iron ingots (pig iron) could be more productive if they had work rests. Training employees when to work and when to rest increased average worker productivity from 12.5 to 47.0 tons moved per day (with less reported fatigue), which resulted in increased wages for them. The company also drastically increased efficiency by reducing costs from 9.2 cents to 3.9 cents per ton. FoundingfiguresofI/OPsychology As a consequence of this method, it was charged that Taylor inhumanely exploited workers for a higher wage and that great numbers of workers would be unemployed because fewer were needed. Because unemployment was rampant at this time, the attacks on Taylor were virulent. His methods were eventually investigated by the Interstate Commerce Commission (ICC) and the U.S. House of Representatives. Taylor replied that increased efficiency led to greater, not less, prosperity and that workers not hired for one job would be placed in another that would better use their potential. The arguments were never really resolved; World War I broke out and the controversy faded.  Chapter 2: Organization Theories Prepared by: Lance Cary D. Fuentes, RPm, CHRP, CHRA  WhatisanOrganization? Collective of parts that cannot accomplish their goals effectively if they operated separately. Social entity, made up of people that agree on, and work towards goals Organizations create value, or else they “die” How do organizations create value? Environment (Customers, Suppliers) Input (Raw Materials, IT, HR) Process (Machines, Computers, KSAOs) Output (Products, Services)  OrganizationTheory o set of propositions that explains or predicts how group and individuals behave in varying organizational structures and circumstances Classical Neoclassical Systems Theory Theory Theory  Classical Organizational Theory o Organizations exists for economic reasons and to accomplish productivity goals o The basic ingredient of any organization and then addresses how organizations should best structured to accomplish its objectives. o Four Basic Components to any organization: ✓ System of differentiated activities – activities that are linked to each other ✓ People – perform tasks and exercise authority ✓ Cooperation toward a goal – unity of purpose in pursuit of their common goals ✓ Authority – ensures cooperation among people pursuing their goals  Principles of Classical Theory Functional Principle – is the concept behind division of labor; that is organizations should be divided into unit that perform similar functions into areas of specialization. Scalar Principle – deals with the organization’s vertical growth and refers to the chain of command that grows with levels added to the organization. Unity of Command - Each subordinate should be accountable to only one superior  Principles of Classical Theory Line/Staff Principle Line Function – have primary responsibilities for meeting the major goals of the organization Staff Function – support the line’s activities but are regarded as subsidiary in overall importance to line functions. Span-of-Control Principle – refers to the number of subordinates a manager is responsible for supervising. Small Span is 2 subordinates, Large Span is 15 subordinates Small Spans can create tall organization, Large Spans can create flat organization. Scientific Management by Frederick Taylor ▪ The organization is a machine, a pragmatic machine whose focus is to simply run more effectively ▪ Taylor believed that scientific principles could be applied to the study of work behavior to help increase worker efficiency and productivity ▪ The advantages of productivity improvement should go to workers ▪ Conducted time and motion studies and analyzed temperature, illumination, and other conditions of work, all while looking at the effects of these conditions on productivity and efficiency ▪ Scientific selection, data collection, and training are combined to enhance efficiency Principles of Scientific Management Approach 1. Structure – hierarchy, top-down, and uses legitimate power 2. Specialization – functional basis, separated according to specialization 3. Predictability and Stability – there must be rules and regulations 4. Rationality – equal treatment, no bias/subjective in selection 5. Democracy – ability to vote  Bureaucracy by Max Weber ▪ Described the structure, organization, and operation of many efficient organization ▪ There is an ideal form of organization ▪ Includes formal hierarchy, division of labor, and a clear set of operating procedures ▪ Well-defined authority hierarchy with strict rules for governing behavior, with few members with highest status on the top ▪ Increase productivity by reducing inefficiencies in organizational operations Characteristics of Bureaucratic Organization ▪ Specialization of Labor ▪ Well-defined Authority Hierarchy ▪ Formal Rules and Procedures  Bureaucracy by Max Weber Division of Labor: each job is a specialized position with its own set of responsibilities and duties; division of tasks performed in an organization ▪ One potential difficulty involves the coordination of various tasks handled by various employees Delegation of Authority: An approach whereby supervisors assign tasks to separate employees and hold them responsible for completing these tasks Tells about which lower-level employees report to higher-level employees Structure: A formal way an organization is designed in terms of division of labor, delegation of authority, and span of control  Administrative Management Theory by Henri Fayol Aims to improve organizational productivity by focusing on methods that managers can use to synchronize internal processes. Managerial practices are the key to driving efficiency in organizations Seeks to heighten managerial performance instead on individual worker efficiency.  Administrative Management Theory by Henri Fayol Principle 1: Division of Specialization – employees can become more proficient in the accomplishment of a limited set of activities – thus, improving their output - Employed: working in the person’s chosen field of specialization - Underemployed: employed in a field that is not under a person’s specialization - Unemployed: no work  Administrative Management Theory by Henri Fayol Principle 2: Authority and Responsibility – managers should have the authority of issue commands, but it comes with responsibility to ensure the work gets done Principle 3: Discipline – subordinates must fully obey instructions from superiors (discipline through management) Principle 4: Unity of Command – only one executive wherein the employees get instructions  Administrative Management Theory by Henri Fayol Principle 5: Unity of Direction – each workgroup or department is working under a singular plan that coordinates effort (guided by one supervisor Principle 6: Subordination of Individual interest – interests of individuals are subordinate to the general interests of the group or department of company Principle 7: Remuneration of Personnel – compensation is used to incentivize worker performance  Administrative Management Theory by Henri Fayol Principle 8: Centralization – decision-making should be either centralized or decentralized, depending upon the characteristics of the organization and worker competency Principle 9: Scalar Chain – there must be a hierarchy of authority that places workers below managers in the reporting structure Principle 10: Order – there must be a designed rules and standards for the work environment and work responsibilities  Administrative Management Theory by Henri Fayol Principle 11: Equity – org must run based upon principles of fairness Principle 12: Stability of tenure of Personnel – low turnover; allows employee to learn their jobs, develop skills, and acquire loyalty - Progressive Discipline: method of discipline that uses graduated steps for dealing with problems related to an employee’s conduct or performance that do not meet clearly defined standards and policies  Administrative Management Theory by Henri Fayol Principle 13: Initiative – must promote initiative by allowing employees to create plans and carry them out Principle 14: Esprit De Corps – establishing a sense of belonging within the organization creates a sense of unity and moral  Structural Theory by Harry Mintzberg Harry Mintzberg proposed how organizations evolve to reach a certain form and shape (structure) which permits the organization to function in its surroundings The structure of an organization is an adaptive mechanism that permits the organization to function in its surroundings.  Seven Basic Parts of an Organization Operating Core – responsible for conducting basic work duties that give the organization its defining purpose; transform raw goods into a sellable products Strategic Apex – responsible for the overall success of the entire organization; associated with executive leadership Middle Line – ensures that overall goals set by strategic apex are being carried out by the operating core Technostructure – possess specific technical expertise that facilitates overall operation of the organization; accounting, HR, IT, law departments Support Staff – aid the basic mission of the organization and typically includes the mailroom, security, and janitorial services  Seven Basic Parts of an Organization Ideology – belief system that compels commitment to a particular value; organizations should have singularly devoted to a particular mission, and all its actions are in pursuit if that mission; employees behave in accordance with their sincere conviction in the ideology of the organization, and can perform their work relatively independent of each other Politics – side effect of ideology, causes divisiveness and conflict; the basis is the use of power that is neither formally authorized or widely accepted in the organization