CHAPTER 1 ● Hawthorne studies.

a series of studies that

Industrial Psychology have come to represent any change in
behavior when people react to a change in
(PSY 10) SEM 1 environment.
○ The Hawthorne Effect is when
employees change their behavior due
solely to the fact that they are being
WHAT IS I/O PSYCHOLOGY? observed.
● Industrial Psychology is also called ● 1990s. Landmark civil rights legislation in
Organizational Psychology. the US, sensitivity trainings, laboratory
training groups.
● It is a branch of Psychology that applies the
principles of psychology in the workplace. ● 1970s. Employee satisfaction and motivation
use of behavior modification techniques
● The purpose of I/O Psychology is to enhance
inspired by BF Skinner (eg. rewards and
the dignity and performance of human
consequences).
beings, and the organizations they work in.
● 1980s - 1990s. Use of statistical techniques,
● It also has a positive impact on the lives of
Cognitive Psychology, effects of work on
other people as their jobs are an essential
family life, and developing methods for
part of their every day.
selection of employees.
● I/O psychologists can improve the
● 2000s. Rapid advances in technology,
employees’ quality of life, in ways such as
changing demographic make up of the
implementing appropriate wages and
workforce (to be more diverse and less
benefits, better communication, stress
discriminatory), and the global economy.
management, or work/life balance.

COMPARED TO BUSINESS COURSES WHY CONDUCT RESEARCH?

● I/O focuses more on application of
psychological principles 1. Answering questions and making decisions.
2. Research and everyday life.
● It examines factors that affect the people in
3. Common sense is often wrong.
an organization rather than the broader
aspects.
● It relies on research.
CONSIDERATIONS IN CONDUCTING RESEARCH
OTHER INFO 1. Idea or question
2. Hypothesis or prediction (What will happen?).
● I/O Psychologists are not clinical It is an educated prediction about the answer
psychologists who happen to be in the to a question.
industry. 3. Theory or explanation (Why will it happen?). It
is a systematic set of assumptions.

MAJOR FIELDS OF I/O LITERATURE REVIEWS

1. Personnel Psychology. This field focuses all 1. Journals are written collections articles
about the employees in an individual sense. describing the methods and results of new
This can include analyzing jobs; recruitment, research. This is the highest level of literature
selection, and training employees; and review.
evaluating employee performance. 2. Trade Magazines are a collection of articles
for those in the “biz” about related
2. Organizational Psychology. This focuses on professional topic, seldom directly reposting
the entirety of the organization. It includes the methods and results of new research. The
issues of leadership, organizational target audience for this type are practitioners
communication, or group processes. in the field.
3. Magazines are an unscientific collection of
3. Human Factors/Ergonomics. This focuses articles about a wide range of topics.
on workplace design. It includes ergonomics
which considers physical fatigue and stress. LOCATION OF THE STUDY
1. Laboratory research is where researchers
will create an artificial environment to carry
BRIEF HISTORY OF I/O PSYCHOLOGY out the experiment.
● First big impact during WWI a. External validity/ generalizability is
● Thomas Edison’s knowledge test which the extent to which research results
were used to test an applicant’s knowledge can be expected to hold true outside
about the job. the specific setting in which they
● The Gilbreths’ on productivity and fatigue were obtained.
reduction. b. In a lab research, the external validity
is at risk because the results in the
 artificial environment might be RUNNING THE STUDY
different in a naturalistic setting. Debrief is the process of Informing the subject in an
experiment about the purpose of the study in which
2. Field research is research conducted in a he or she was a participant and providing any other
natural setting. relevant information.
a. Informed consent is the formal
process by which subjects give
permission to be include in the ETHICAL DILEMMA
study. 1. Type A means that there is a high level of
b. Institution review boards are a uncertainty as to what is right or wrong, there
committee designated to ensure appears to be no best solution, and there are
ethical treatment of research both positive and negative consequences to
subjects. a decision.
2. Type B means that the difference between
RESEARCH METHOD TO BE USED right and wrong is much clearer but
1. Experiment individuals choose the solution that is most
a. An independent variable is advantageous to themselves.
manipulated by the experimenter in
order to observe a cause-and-effect
relationship
b. Manipulation is the alteration of a CHAPTER 2: Job Analysis
variable by an experimenter in
expectation that this will result in a
and Evaluation
change in the dependent variable Industrial Psychology
2. Quasi-Experiment is a research method in (PSY 10) SEM 1
which the experimenter either does not
manipulate the independent variable or in
which subjects are not randomly assigned to
conditions.
JOB ANALYSIS
3. Archival research is research that involves
the use of previously collected data. ● Job Analysis is the process of gathering and
4. Survey is asking people about their opinion analyzing information about:
on some topic. ○ the work an employee performs,
5. Meta-analysis is a statistical method of ○ the conditions in which the work is
reaching conclusions based on previous performed, and
research. ○ the worker characteristics under the
a. Effect size indicates the amount of identified conditions.
change cause by an experimental
manipulation.
b. Mean effect size the average of the
effect sizes for all studies included in IMPORTANCE/PURPOSE OF JOB ANALYSIS
the analysis.
c. Correlation coefficient indicates the RECRUITMENT AND SELECTION
magnitude and direction of a ● Job analysis helps in determining what kind
relationship. of person is required to perform a particular
d. Difference score indicates how many job. It points out the educational
standard deviations separate the qualifications; level of experience; and
mean score for the experimental technical, physical, emotional, and personal
group from the control group. skills required to carry out a job in a desired
e. Practical significance is the extent to fashion. The objective is to fit a right person
which the results of a study have an at a right place.
actual impact on human behavior. ● Recruitment is the process of gathering
applicants, while selection is the process of
PARTICIPANT SAMPLES choosing the applicants.
1. Random sample. Every participant has an
equal chance to be included in the sample. PERFORMANCE ANALYSIS
2. Convenience sample. Participants are ● Job analysis is done to check if goals and
recruited for the convenience of the objectives of a particular job are met or not. It
researchers. helps in deciding the performance
3. Random Assignment. standards, evaluation criteria, and
individual’s output. On this bases, the overall
performance of an employee is measured
and they are appraised accordingly.
 TRAINING AND DEVELOPMENT TRAINING OF JOB ANALYST
● Job analysis can be used to assess the ● This includes training the job analyst how to
training and development needs of conduct the process and use selected
employees. The difference between the methods for collection and recoding of job
expected and actual output determines the data.
level of training that need to be imparted to
employees. PREPARATION OF JOB ANALYSIS PROCESS
● It also helps in deciding the training content, ● HR managers need to communicate properly
tools, and equipments to be used to conduct so that employees offer their full support to
training. the job analyst.
● Training focuses on the method for the ● This also involves preparation of documents,
current job role, while development is more questionnaires, interviews, and feedback
on long-term. forms.
● The results of the job analysis is the job
description. Job descriptions can serve as a DATA COLLECTION
criteria for training programs. ● Collect job-related data including
educational qualifications; skills and
COMPENSATION MANAGEMENT abilities; working conditions; job activities;
● Job analysis plays a vital role in deciding the reporting hierarchy; human traits, and duties.
pay packages and extra perks and benefits
and incentives of the employees. DOCUMENTATION, VERIFICATION, AND REVIEW
● These things depend on the position, job ● Proper documentation is done to verify the
title, and duties involved in a job. The process authenticity of collected data and then
guides HR managers in deciding the worth of review it.
an employee in a job opening. ● This is the final information that is used to
describe a specific job.
JOB DESIGNING AND REDESIGNING
● The main purpose is to streamline the DEVELOPING JOB DESCRIPTION AND JOB
human efforts and get the best possible SPECIFICATION
output. It helps in designing, redesigning, ● Segregate the collected data to useful
enriching, evaluating, and also cutting back information.
and adding extra responsibilities in a ● Job Description describes the roles,
particular job. activities, duties, and responsibilities of the
job.
JOB ANALYSIS PREPARATION ● Job Specification is a statement of
education qualification, experience, personal
traits, and skills required to perform the job.
IDENTIFICATION OF JOB ANALYSIS PURPOSE
● The first step in the process is to determine
the job analysis’ need and desired output. CONDUCTING A JOB ANALYSIS

WHO WILL CONDUCT JOB ANALYSIS STEP 1: IDENTIFY A TASK PERFORMED

● Job analysis are often conducted by the HR ● Identify the major dimensions and tasks
department or job analysis consultants. performed for each dimension, the tools and
equipments, and conditions.
HOW TO CONDUCT PROCESS ● Techniques.
● A planned approach about how to carry the ○ Interview subject-matter experts
whole process is required in order to (SMEs) using either a one-on-one
investigate a specific job. session, or Ammerman Technique,
which includes a group of job experts
STRATEGIC DECISION MAKING who will identify the objectives and
● It is about deciding the extent of employee standards to be met by the ideal
involvement in the process, the level of worker.
details to be collected and recorded, and ○ Observe or watch job incumbents
sources from where data is to be collected, perform their jobs. Observations
data collection methods, processing advantages include naturalistic
information and segregation of collected settings and less bias, while
data. disadvantages include subjective
interpretations.
○ Job participation or actually performing
the job. This is appropriate to use if the
job is easy enough to do.
 STEP 2: WRITE TASK STATEMENTS ● Knowledge is the body of information needed
● Task inventory is a questionnaire containing to perform a task.
a list of tasks each of which the job ● Skill is the proficiency to perform a learned
incumbent rates on a series of scales such task.
as importance and time spent. ● Ability is the basic capacity for performing a
● It must contain an action (what is done) and wide range of tasks, acquiring a knowledge,
an object (for which the action is done). It or developing a skill.
can also include where, how, why, and when ● Other characteristics are factors that are not
the task is done. included above, such as personality, interest,
● For example, a task statement for a call and degrees.
center representative is to handle (action) ○
outbound calls (object). STEP 5: SELECTING TEST TO TAP KSAOs
○ ● Determine the test methods to tap the KSAOs
STEP 3: RATE TASK STATEMENTS needed at the time of hire.
● Task analysis is identifying the task for ● For example, writing minutes as a skill can
which employees need to be trained. be assessed by providing a work
○ sample/portfolio. Rapport building can be
STEP 4: DETERMINE ESSENTIAL KSAOs assessed by previous experience. Integrity
● KSAOs stand for knowledge, skills, abilities, can be assessed by background checks.
and other characteristics.
 MIDTERMS

Topic 1: Employee ● In writing recruitment ads, include the

Selection - Recruiting following:
and Reviewing ○ Realistic information about the job
○ Detailed description of the job and
Industrial Psychology organization
(PSY 10) SEM 1 ○ Information on the selection process
○ “Making fun” of the job openings

ELECTRONIC MEDIA
● This includes TV and radio.
STEPS IN SELECTING EMPLOYEES
1. Job Analysis POINT-OF-PURCHASE METHODS
2. Selection of Testing Methods ● It follows the advertising principles used to
3. Test Validation market products to consumers.
4. Recruitment ○ Job vacancy notices are posted in
5. Screening places where customers or current
6. Testing employees care likely to see them.
7. Selecting ● In this source, customers are targeted for
8. Hiring/Rejecting marketing, as customers are familiar with
the company which increases the probability
of recruitment.
EMPLOYEE RECRUITMENT
● Recruitment is the process of attracting RECRUITERS
employees to an organization.
CAMPUS RECRUITERS
INTERNAL RECRUITMENT ● Sending recruiters to campuses
● Internal recruitment refers to recruiting ● Virtual job fair
employees already within the organization
(eg. promotion) OUTSIDE RECRUITERS
● In internal recruitment, there are different ● Employment agencies or Private
types, such as lateral, and vertical recruitment and placement agencies
recruitment. (PRPA) source and endorse applicants to the
● In a lateral recruitment, employees are client company
recruited in a similar position they currently ● Executive search firms or head hunters
have. specializes in finding jobs for applicants and
● In a vertical recruitment, employees are finding applicants for organizations looking
promoted to a higher position. for employees; tend to represent
higher-paying, non-entry level positions
EXTERNAL RECRUITMENT ● Public employment agencies are
● External recruitment is recruiting from employment service operated by local
outside the organization. government, designed to match applicants
with job openings
RECRUITMENT SOURCES
EMPLOYEE REFERRALS
● Employee referral is a method of
MEDIA ADVERTISEMENT recruitment in which a current employee
refers a friend or a family member for a job
NEWSPAPER ADS ● Some companies provide incentives for
● Four ways to respond: referrals
○ Respond by calling - applicants are ● According to research, they are an excellent
instructed to call than apply recruitment source as employees referred by
in-person. successful employees had a longer tenure.
○ Apply-in-person
○ Send-resume DIRECT MAIL
○ Blind Box - some companies use ● Direct Mail is a method of recruitment in
blind box for anonymity. which an organization sends out mass
 mailings of information about job openings
EVALUATING THE EFFECTIVENESS OF
to potential applicants
RECRUITMENT STRATEGIES
● It may be particularly useful for tapping
passive job seekers and positions involving 1. Cost per applicant refers to the amount of
specialized skills money spent on a recruitment campaign
● Recruiters should provide details on how to divided by the number of people that
contact them. subsequently apply for jobs as a result of the
recruitment campaign.
INTERNET 2. Cost per qualified applicant refers to the
amount of money spent on a recruitment
EMPLOYER-BASED WEBSITES campaign divided by the number of qualified
● Applicants can view advertisements, upload people that subsequently apply for jobs as a
their resumes, answer questions or take result of the recruitment campaign.
tests
● Web-based job postings are most effective
when they are aesthetically pleasing and REALISTIC JOB PREVIEWS
contained customized information about the
job and the company ● Realistic Job Previews are a method of
recruitment in which job applicants are told
JOB BOARD both the positive and the negative aspects of
● Job boards are private company whose a job.
website lists job openings for hundreds or ● Expectation-Lowering Procedure is a form of
thousands of organization and resumes for RJP that lowers an applicant’s expectations
millions of applicants. about the various aspects of the job.

SOCIAL MEDIA EFFECTIVE SELECTION TECHNIQUES

● Social media includes outlets such as
● The three characteristics of an effective
LinkedIn, Facebook, Twitter.
selection technique is:
○ Valid
JOB FAIR
○ Reliable
● Job Fair is a recruitment method in which ○ Cost-Efficient
several employees are available at one
○ Legal
location so that many applicants can obtain
information at one time
● Multi-employer job fair allows applicants to EMPLOYEE INTERVIEW
apply for different employers and companies
in the same location.
STRUCTURE
● Field-specific job fair caters to a specific
field of profession.
● Open-house/ job fair of a single company STRUCTURED INTERVIEW
opens to company exclusively for applicants. ● Structured interviews are interviews in
which questions are based on a job analysis.
OTHER RECRUITMENT SOURCES Every applicant is asked the same questions,
and there is a standardized scoring system
● Special recruit populations: increasing
so that identical answers are given identical
applicant diversity
scores.
○ The key to recruiting minority
● Advantages of structured interview include:
applicants is how they perceive the
○ It is the job relatedness and
diversity of the organization during a
standardized scoring that most
site visit
distinguish the structured from the
● Use of non-traditional populations
unstructured interview.
○ Examples: partnerships with local
○ These are based on a job analysis.
churches, prison inmates, people
with intellectual disabilities
● Recruiting passive applicants UNSTRUCTURED INTERVIEW
○ Build relationships with professional ● Unstructured interview is an interview in
associations for each fields in which which applicants are not asked the same
they recruit. questions and in which there is no standard
scoring system to score applicant answers.

STYLE
● The style of an interview is determined by the
number of interviewees and number of
interviewers.
● One-on-one interviews involves one Topic 2: Employee
interviewer interviewing one applicant. Selection - References
● Serial interviews involve a series of single
interviews.
and Testing
● Return interviews are similar to serial Industrial Psychology
interviews with the difference being a (PSY 10) SEM 1
passing of time between the first and
subsequent interview.
● Panel interviews have multiple interviewers
asking questions and evaluating answers of
the same applicant at the same time USING REFERENCES AND LETTERS OF
● Group interviews have multiple applicants RECOMMENDATION
answering questions during the same
interview. REFERENCE
● Problems with unstructured interviews ● Reference is the expression of an opinion,
include: either orally or through a written checklist,
○ Poor intuitive ability regarding an applicant’s ability, previous
○ Lack of job relatedness performance, work habits, character, or
○ Primacy effects potential for future success.
○ Contrast effects
○ Negative-information bias REFERENCE CHECK
○ Interviewer-interviewee similarity ● Reference Check is the process of
○ Interviewee appearance confirming the accuracy of résumé and job
○ Nonverbal cues application information.

MEDIUM LETTER OF RECOMMENDATION

● In face-to-face interviews, both the ● A letter of recommendation is a letter
interviewer and the applicant are in the same expressing an opinion regarding an
room. Face-to-face interviews provide a applicant’s ability, previous performance,
personal setting and allow the participants work habits, character, or potential for
to use both visual and vocal cues to evaluate success.
information.
● Telephone interviews are often used to
screen applicants but do not allow the use of REASONS FOR USING REFERENCES AND LETTERS
visual cues (not always a bad thing). OF RECOMMENDATION
● Videoconference interviews are conducted
at remote sites. The applicant and the CONFIRMING DETAILS OF RESUME
interviewer can hear and see each other, but ● One reason to check references or ask for
the setting is not as personal, nor is the letters of recommendation is simply to
image and vocal quality of the interview as confirm the truthfulness of information
sharp as in face-to-face interviews. provided by the applicant, or to prevent
● Written interviews involve the applicant resume fraud.
answering a series of written questions and
then sending the answers back through CHECKING FOR DISCIPLINE PROBLEMS
regular mail or through email.
● A second reason to check references or
obtain letters of recommendation is to deter-
mine whether the applicant has a history of
such discipline problems as poor
attendance, sexual harassment, and
violence.
● Negligent hiring is a situation in which an
employee with a previous criminal record
commits a crime as part of his/her
employment. When the employee commits a
crime, the employer or organization will be
held liable.

DISCOVERING NEW INFORMATION ABOUT THE

APPLICATION
● Former employers and professors can provide
information about an applicant’s work
habits, character, personality, and skills.
 PREDICTING FUTURE PERFORMANCE
● References and letters of recommendation ETHICAL GUIDELINES FOR REFERENCE
are ways to try to predict future performance PROVIDERS
by looking at past performance.
● However, references have been proven have a
low validity because of several reasons: EXPLICITLY STATE YOUR RELATIONSHIP WITH THE
PERSON YOU ARE RECOMMENDING
LENIENCY ● This is important because people often have
● References are typically so positive. dual roles: A person may be a supervisor as
● Applicants can choose their own references, well as a good friend.
which give them control on which references
would favor them the most. BE HONEST IN PROVIDING DETAILS
● The reference person may have a fear of legal ● A referee has both an ethical and a legal
ramifications where the person providing obligation to provide relevant information
references can be charged with defamation about an applicant. A good rule of thumb is
of character if the content of the reference is to ask, “If I were in the reference seeker’s
both untrue and made with malicious intent. shoes, what would I need to know?”
● People providing references are granted what
is called a conditional privilege, which LET THE APPLICANT SEE YOUR REFERENCE
means that they have the right to express ● This gives the applicant the chance to
their opinion provided they believe what they decline the reference. Such a procedure is fair
say is true and have reasonable grounds for to the applicant and reduces the referee’s
this belief. liability for any defamation charge.
● Negligent reference is an organization’s
failure to meet its legal duty to supply
relevant information to a prospective PREDICTING PERFORMANCE USING APPLICANT
employer about a former employee’s KNOWLEDGE
potential for legal trouble. In other words, a
former employer can be guilty of negligent USE OF JOB KNOWLEDGE TESTS
reference if it doesn’t provide relevant ● Job knowledge tests are designed to
information. measure how much a person knows about a
job.
KNOWLEDGE OF THE APPLICANT ● These are tests that measure the amount of
● The person writing the letter often does not job-related knowledge an applicant
know the applicant well, has not observed all possesses
aspects of an applicant’s behavior, or both. ● They are good predictors of both training
● Eg. Professors are asked to be references of performance and on-the-job performance
students they only had for one class. ● Eg. an HR applicant being asked how to
conduct a job analysis.
RELIABILITY
● References and letters of recommendation
PREDICTING PERFORMANCE USING APPLICANT
involves the lack of agreement between two
ABILITY
people who provide references for the same
person. Ability tests tap the extent to which an applicant can
● Eg. A reference provided by a professor who learn or perform a job-related skill. These are used
has observed an applicant in a classroom primarily for occupations in which applicants are not
may not agree with a reference provided by a expected to know how to perform the job at the time
supervisor who has observed the same of hire, such as new employees.
applicant in a work setting.
COGNITIVE ABILITY
EXTRANEOUS FACTORS ● Cognitive abilities are abilities involving the
● This concerns extraneous factors that affect knowledge and use of information such as
the letter of recommendation’s writing and math and grammar.
evaluation. ● It includes such dimensions as oral and
● Eg. letters written by references who like written comprehension, oral and written
applicants are longer than those written by expression, numerical facility, originality,
references who do not. memorization, reasoning (mathematical),
and general reasoning.
OTHER INFO ● Disadvantages include:
○ High levels of adverse impact and often
● References and letters of recommendation often lack face validity.
are not great predictors of performance. ○ Difficulty of setting a passing score.
 PERCEPTUAL ABILITY ○ gross body coordination (coordination
● Perceptual ability is a measure of facility when body is in motion)
with such processes as spatial relations and ○ stamina (ability to exert effort over long
form perception. periods of time)
● It consists of vision (near, far, night,
peripheral), color discrimination, depth THREE CONCERNS
perception, glare sensitivity, speech (clarity, ● Because physical ability tests have
recognition), and hearing (sensitivity, tremendous adverse impact against women
auditory attention, sound localization) ● (Hough, Oswald, & Ployhart, 2001), they have
● Example of jobs include interior design, been criticized on three major points:
construction, etc. ○ Job Relatedness. Critics of physical
agility testing cite two reasons for
PSYCHOMOTOR ABILITY questioning the necessity of physical
● Psychomotor ability includes finger agility: current out-of-shape cops and
dexterity, manual dexterity, control precision, technological alternatives.
multilimb coordination, response control, ○ Passing Scores. Passing scores for
reaction time, arm-hand steadiness, physical ability tests are set based on
wrist-finger speed, and speed-of-limb one of two types of standards: relative
movement or absolute. Relative standards
● Example of jobs include carpenter, police indicate how well an individual scores
officer, dancer compared with others in a group such
as women, police applicants, or current
PHYSICAL ABILITY police officers. Absolute passing scores
● Physical ability measure an applicant’s level are set at the minimum level needed to
of physical ability required for a job. perform a job.
● It is measured in one of two ways: job ○ When the Ability Must Be Present. A third
simulations and physical agility tests. problem with physical ability
● Example of jobs include firefighty, soldier, requirements is the point at which the
police officer, etc. ability must be present. Most police
departments require applicants to
TWO CATEGORIES pass physical ability tests on the same
● The physical requirements of police officers day other tests are being completed.
can be divided into two categories: athletic
and defensive. PREDICTING PERFORMANCE USING APPLICANT
○ Athletic requirements are easy to SKILL
simulate because they involve such
behaviors as running, crawling, and Some selection techniques measure the extent to
pulling. which an applicant already has a job-related skill.
The two most common methods for doing this are
○ Defensive requirements, however, are
the work sample and the assessment center.
difficult to safely and accurately
simulate because they involve such
behaviors as applying restraining WORK SAMPLES
holds, kicking, and fending off ● With a work sample, the applicant performs
attackers. actual job-related tasks.
● Work samples are excellent selection tools
BASIC PHYSICAL ABILITIES for several reasons.
● Research has shown that there are nine ○ First, because they are directly related
basic physical abilities: to job tasks, they have excellent
○ dynamic strength (strength requiring content validity.
repetitions) ○ Second, scores from work samples tend
○ trunk strength (stooping or bending to predict actual work performance and
over) thus have excellent criterion validity.
○ explosive strength (jumping or throwing ○ Third, because job applicants are able
objects) to see the connection between the job
sample and the work performed on the
○ static strength (strength not requiring
job, the samples have excellent face
repetitions)
validity and thus are challenged less
○ dynamic flexibility (speed of bending,
often in civil service appeals or in court
stretching, twisting)
cases.
○ extent flexibility (degree of bending,
○ Finally, work samples have lower racial
stretching, twisting)
differences in test scores than do
○ gross body equilibrium (balance)
written cognitive ability tests.
 ASSESSMENT CENTERS ● Business Game. An exercise that is
● Assessment center is a selection technique designed to simulate the business and
characterized by the use of multiple marketing activities that take place in an
assessment methods that allow multiple organization.
assessors to actually observe applicants
perform simulated job tasks.
● A method of selecting employees in which PREDICTING PERFORMANCE USING PRIOR
applicants participate in several job-related EXPERIENCE
activities, at least one of which must be a
simulation, and are rated by several trained Applicant experience is typically measured in one of
evaluators. four ways: experience ratings of application/résumé
information, biodata, reference checks, and
REQUIREMENTS FOR ASSESSMENT CENTERS interviews. (Interviews and reference checks were already
● The assessment center activities must be discusses in previously).
based on the results of a thorough job
analysis. EXPERIENCE RATINGS
● Behaviors displayed by participants must be ● The basis for experience ratings is the idea
classified into meaningful and relevant that past experience will predict future
categories such as behavioral dimensions, experience.
attributes, characteristics, aptitudes, ● In giving credit for experience, one must
qualities, skills, abilities, competencies, or consider the amount of experience, the level
knowledge. of performance demonstrated during the
● Multiple assessment techniques must be previous experience, and how related the
used and the assessments must provide experience is to the current job.
information about the applicant that was
determined as being important in the job BIODATA
analysis. ● Biodata is a method of selection involving
● At least one of the assessment techniques application blanks that contain questions
must be a job simulation. that research has shown will predict job
● Multiple trained assessors must be used. performance.
● Behavioral observations must be ● A biodata instrument is an application blank
documented at the time the applicant or questionnaire containing questions that
behavior is observed. research has shown measure the difference
● Assessors must prepare a report of their between successful and unsuccessful
observations. performers on a job.
● The overall judgment of an applicant must be
based on a combination of information from DEVELOPMENT OF BIODATA
the multiple assessors and multiple 1. In the first step, information about
techniques. employees is obtained in one of two ways:
the file approach or the questionnaire approach.
COMMON EXERCISES ○ File approach. We obtain information
● In-basket technique An assessment center from personnel files on employees’
exercise designed to simulate the types of previous employment, education,
daily information that come across a interests, and demographics. It is the
manager’s or employee’s desk in order to gathering of biodata from employee
observe the applicant’s responses to such files rather than by questionnaire.
information. These baskets have two levels: ○ Questionnaire approach. It is the method
the “in” level, which holds paperwork that of obtaining biodata from
must be handled, and the “out” level, which questionnaires rather than from
contains completed paperwork. employee files. We can create a
● Simulation. An exercise designed to place an biographical questionnaire that is
applicant in a situation that is similar to the administered to all employees and
one that will be encountered on the job. This applicants.
can include role-play activities or work 2. After the necessary information has been
samples. obtained, an appropriate criterion is chosen.
● Work sample. A method of selecting 3. Once a criterion has been chosen, employees
employees in which an applicant is asked to are split into two criterion groups based on
perform samples of actual job-related tasks. their criterion scores. Selection of criterion
● Leaderless Group Discussions. Applicants group is ideally, upper and lower 27%
meet in small groups and are given a 4. Once employee data have been obtained and
job-related problem to solve or a job-related the criterion and criterion groups chosen,
issue to discuss. each piece of employee information is
compared with criterion group membership.
 ○ Traditionally, vertical percentage method ● These fall into one of two categories based on
is used for scoring biodata in which the their intended purpose: measurement of
percentage of unsuccessful employees types of normal personality or measurement
responding in a particular way is of psychopathology
subtracted from the percentage of
successful employees responding in TESTS OF NORMAL PERSONALITY
the same way. ● Tests of normal personality measure the
5. A problem with creating a biodata traits exhibited by normal individuals in
instrument is sample size. To create a everyday life.
reliable and valid biodata instrument, it is ● Determination of the number and type of
desirable to have data from hundreds of personality dimensions measured by an
employees. inventory can usually be (1) based on a theory
○ Derivation sample. A group of employees (MBTI) (2) statistically-based (16 PF) or (3)
who were used in creating the initial empirically-based (MMPI)
weights for a biodata instrument.
○ Hold-out sample. A group of employees TESTS OF PSYCHOPATHOLOGY
who are not used in creating the initial ● Tests of psychopathology (abnormal
weights for a biodata instrument but behavior) determine whether individuals
instead are used to double-check the have serious psychological problems such as
accuracy of the initial weights. depression, bipolar disorder, and
schizophrenia.
CRITICISMS OF BIODATA ● These tests are seldom used by I/O
● Validity of biodata may not be stable—that psychologists except in the selection of law
is, its ability to predict employee behavior enforcement officers.
decreases with time. It may not be particular ● Tests of psychopathology are generally
to any organization. scored in one of two ways: objectively or
● Some biodata items may not meet the legal projectively.
requirements stated in the federal Uniform ○ Projective tests are subjective tests in
Guidelines, which establish fair hiring which a subject is asked to perform
methods. These are the standards for each relatively unstructured tasks, such
biodata item: as drawing pictures, and in which a
○ The item must deal with events under a psychologist analyzes his or her
person’s control (e.g., a person would have responses. Eg. Rorschach Inkblot Test
no control over birth order but would and Thematic Apperception Test.
have control over the number of speeding ○ Objective tests are a type of
tickets she received). personality test that is structured to
○ The item must be job-related. limit the respondent to a few
○ The answer to the item must be verifiable answers that will be scored by
(e.g., a question about how many jobs an standardized keys. Eg. MMPI-2,
applicant has had is verifiable, but a MCMI-III, PAI.
question about the applicant’s favorite
type of book is not). INTEREST INVENTORY
○ The item must not invade an applicant’s ● Interest inventory is a psychological test
privacy (asking why an applicant quit a designed to identify vocational areas in
job is permissible; asking about an which an individual might be interested.
applicant’s sex life is usually not). ● The most commonly used interest inventory
● Some biodata items can be faked, which can is the Strong Interest Inventory (SII), which asks
be reduced in a few ways: individuals to indicate whether they like or
○ Warning applicants of the presence dislike 325 items such as bargaining,
of a lie scale repairing electrical wiring, and taking
○ Using objective, verifiable items responsibility.
○ Asking applicants to elaborate on ● Interest inventories can also be used in
their answers or to provide examples vocational counseling, which is the process of
helping an individual choose and prepare for
PREDICTING PERFORMANCE USING PERSONALITY, the most suitable career.
INTEREST, AND CHARACTER
INTEGRITY TESTS (CHARACTER)
● Integrity tests (also called honesty tests)
PERSONALITY INVENTORY tell an employer the probability that an
● Personality Inventories are psychological applicant would steal money or merchandise.
assessments designed to measure various ● Employers used both electronic and
aspects of an applicant’s personality. paper-and-pencil integrity tests to screen
applicants,
 ELECTRONIC INTEGRITY TESTS ○ All employees or randomly selected
● Polygraph. An electronic test intended to employees are tested at predetermined
determine honesty by measuring an times.
individual’s physiological changes after ○ All employees or randomly selected
being asked questions. employees are tested at random times.
● Voice Stress Analyzer. An electronic test to ○ Employees who have been involved in
determine honesty by measuring an an accident or disciplinary action are
individual’s voice changes after being asked tested following the incident.
questions.
PSYCHOLOGICAL EXAMS
PAPER-AND-PENCIL INTEGRITY TESTS ● In jobs involving public safety (e.g., law
● Overt integrity test. A type of honesty test enforcement, nuclear power, transportation),
that asks questions about applicants’ it is common for employers to give
attitudes toward theft and their previous psychological exams to applicants after a
theft history. conditional offer of hire has been made.
● Personality-based integrity test. A type of ● Psychological exams usually consist of an
honesty test that measures personality traits interview by a clinical psychologist, an
thought to be related to antisocial behavior examination of the applicant’s life history,
and the administration of one or more of the
CONDITIONAL REASONING TESTS psychological tests discussed earlier in this
● Conditional reasoning tests were initially chapter.
developed by James (1998) to reduce these ● Psychological exams should only be used to
inaccurate responses and get a more determine if a potential employee is a danger
accurate picture of a person’s tendency to to himself or others.
engage in aggressive or counterproductive
behavior. MEDICAL EXAMS
● Conditional reasoning tests provide test ● In jobs requiring physical exertion, many
takers with a series of statements and then employers require that a medical exam be
ask the respondent to select the reason that taken after a conditional offer of hire has
best justifies or explains each of the been made. In these exams, the physician is
statements. given a copy of the job description and asked
to determine if there are any medical
CREDIT HISTORY conditions that will keep the employee from
● These credit checks are conducted for two safely performing the job.
reasons:
○ (1) Employers believe that people who COMPARISON OF TECHNIQUES
owe money might be more likely to
steal or accept bribes, and
○ (2) employees with good credit are VALIDITY
more responsible and conscientious ● The unstructured interview, education,
and thus will be better employees. interest inventories, and some personality
traits are not good predictors of future
GRAPHOLOGY employee performance for most jobs.
● Graphology is also called handwriting ● Ability, work samples, biodata, and
analysis, a method of measuring personality structured interviews do a fairly good job of
by looking at the way in which a person predicting future employee performance.
writes. ● The most valid selection battery includes a
cognitive ability test and either a work
sample, an integrity test, or a structured
PREDICTING PERFORMANCE LIMITATIONS DUE TO interview
MEDICAL AND PSYCHOLOGICAL PROBLEMS
LEGAL ISSUES
DRUG TESTING ● Cognitive ability and GPA will result in the
● Drug testing. These are tests that indicate highest levels of adverse impact, whereas
whether an applicant has recently used a integrity tests, references, and personality
drug. inventories will result in the lowest levels.
● Research indicates that compared with ● In terms of face validity, applicants perceive
non–drug users, illegal drug users are more interviews, work samples/simulations, and
likely to miss work. résumés as being the most job-related/fair,
● Testing of employees usually takes one of and they view graphology, integrity tests, and
three forms: personality tests as being the least job-
related/fair.
 METHODS OF DETERMINING RELIABILITY
REJECTING APPLICANTS
● Test-Retest Reliability.
● Rejected applicants should be treated well ○ Measures temporal stability
because they are potential customers and ○ Administration: same applicants, same
potential applicants for other positions that test, two testing periods
might become available in the organization ○ Scores at time one are correlated with
● A rejection letter is a letter from an scores at time two
organization to an applicant informing the ○ Correlation should be above .70
applicant that he or she will not receive a job ○ Problems include: Characteristic or
offer. The following are guidelines for attribute being measured may change
rejection letters: over time; Reactivity; Carry over effects
○ Send rejection letters or emails to ○ Practical Problems include: Time
applicants consuming; Expensive; Inappropriate for
○ Don’t send the rejection letter some types of tests
immediately ● Alternate Forms Reliability.
○ Be as personable and specific as ○ Measures form stability
possible in the letter ○ Administration: Same applicants; Two
○ Include a statement about the testing periods; ‘Different’ test
individual who received the job ○ Two forms of the same test are
○ Do not include the name of a contact developed, and to the highest degree
person possible, are equivalent in terms of
○ Be honest content, response process, and
statistical characteristics
○ Scores from the first form of test are
correlated with scores from the second
Topic 3: Evaluating form and must be highly correlated
Selection Techniques ○ Disadvantages include: Difficult to develop;
Content sampling errors; Time sampling
Industrial Psychology errors
(PSY 10) SEM 1 ● Internal Reliability.
○ Defines measurement error strictly in
terms of consistency or inconsistency in
the content of the test.
○ Used when it is impractical to administer
MODEL OF SELECTION DECISIONS
two separate forms of a test.
○ With this form of reliability the test is
administered only once and measures
item stability.
○ It may be measured through: Split-Half
method (dividing the test into two);
Cronbach’s Coefficient Alpha (ratio and
interval data); Kuder-Richardson Formula
20 (for dichotomous items)
● Interrater Reliability.
○ Used when human judgment of
performance is involved in the selection
process
○ Refers to the degree of agreement
between 2 or more raters

CONCLUSIONS ON RELIABILITY
● The higher the reliability of a selection test
the better. Reliability should be .70 or higher.
CHARACTERISTICS OF EFFECTIVE SELECTION Compare for similar tests.
TECHNIQUES ● Carefully consider the sample
● If a selection test is not reliable, it is useless
as a tool for selecting individuals.
RELIABILITY
● The extent to which a score from a test is
VALIDITY
consistent and free from errors of
measurement ● The degree to which inferences from scores
on tests or assessments are justified by the
evidence.
 COMMON WAYS TO MEASURE VALIDITY
Content Validity
● The extent to which test items sample the
content that they are supposed to measure
● In industry the appropriate content of a test
of test battery is determined by a job
analysis; SME Readability
Criterion Validity
● Criterion validity refers to the extent to which
a test score is related to some measure of job COST-EFFECTIVENESS
performance called a criterion ● If two tests have equivalent validities then
● Established using one of the following costs should be considered
research designs: ● Wonderlic Personnel Test vs Wechsler Adult
○ Concurrent Validity (Uses current Intelligence Scale
employees based on available PA); ○ Both tests have similar reliabilities and
○ Predictive Validity (Correlates test scores validities, yet the Wonderlic costs only a
with future behavior) ; few dollars per applicant and can be
○ Validity Generalization (the extent to which administered to groups of people in only
a test found valid for a job in one location 12 minutes.
is valid for the same job in a different ○ WAIS must be administered individually
location at a time cost of at least an hour per
Construct Validity applicant and a financial cost of more
● The extent to which a test actually measures than $100 per applicant.
the construct that it purports to measure ○ Wonderlic is more cost-effective.
● Is concerned with inferences about test ● Group Testing vs Individual Testing
scores ○ Group testing is usually less expensive
● Determined by correlating scores on a test and more efficient than individual
with scores from other test testing,
○ Known group Validity. (A form of validity in ● Virtual Vs Real Time Testing
which test scores from two contrasting ○ Online testing can lower testing costs,
groups “known” to differ on a construct decrease feedback time, and yield results
are compared) in which the test takers can have great
○ Convergent Validity. (refers to how closely a confidence,
test is related to other tests that measure ● Computer-Adaptive Testing (CAT)
the same (or similar) constructs) ○ A type of test taken on a computer in
○ Discriminant Validity (refers to the extent which the computer adapts the difficulty
to which a test is not related to other level of questions asked to the test
tests that measure different taker’s success in answering previous
constructs.ich a test is not related to questions.
other tests that measure different
constructs.) ESTABLISHING THE UTILITY OF SELECTION
Face Validity SYSTEMS
● The extent to which a test appears to be job
related
UTILITY
○ Enhances perceptions of fairness
○ Motivation of the applicants ● The degree to which a selection device
● Reduces the chance of legal challenge improves the quality of a personnel system,
● Increasing face validity above and beyond what would have occurred
had the instrument not been used.
● Example job knowledge tests and work
samples
● Applicants might fake tests of Individual COMMON SELECTION UTILITY METHODS
differences
TAYLOR-RUSSELL TABLES
CONCLUSIONS ON VALIDITY ● Estimates the percentage of future
● Validity is a correlation of the test with an employees that will be successful (impact of
independent criteria whereas reliability is the overall testing procedure)
self correlation of the test. ● Three components
● Reliability is sufficient but not necessary ○ Validity of the test: from the test
condition for Validity. manual
○ A test cannot be Valid without being ○ Base rate: % of employees successful;
Reliable. successful employees ÷ total
○ A test can be Reliable without being Valid. employees (If unknown, use 50%)
○ Selection ratio: hired ÷ qualified
● Example. ○ Points in quadrants II and IV ÷ Total
points in all quadrants

● (Baseline of Correct Decisions) The resulting

number represents the percentage of time
that we expect to be accurate in making a
selection decision in the future. To determine
whether this is an improvement, we use the
following formula:
○ Points in quadrants I and II ÷ Total
● Suppose we have points in all quadrants
○ a test validity of .40
○ a selection ratio of .30
○ a base rate of .50
● Using the Taylor-Russell Tables what
percentage of future employees would be
successful? ● If the percentage from the first formula is
● This number indicates that if the higher than that from the second, our
organization uses that particular selection proposed test should increase selection
test, 69% of future employees are likely to be accuracy.
considered successful.
● This figure is compared to the .50 base rate, BROGDEN-CRONBACH-GLESER MODEL
indicating a 38% increase in successful ● Gives an estimate of utility by estimating the
employees. amount of money an organization would save
if it used the test to select employees.
PROPORTION OF CORRECT DECISIONS ● Utility formula. Method of ascertaining the
● A utility method that compares the extent to which an organization will benefit
percentage of times a selection decision was from the use of a particular selection system.
accurate with the percentage of successful ○ (n) = Number of employees hired per year
employees. ○ (t) = Average tenure
● Less accurate than the Taylor-Russell tables. ○ (r ) = Test validity
● Create a chart with four quadrants: ○ (SDy) = standard deviation of
○ Q1 - employees who scored poorly on the performance in dollars (40%; if the
test but performed well on the job. performance is normally distributed;
○ Q2 - employees who scored well on the test dollars difference in good worker and
and were successful on the job. average worker)
○ Q3 - employees who scored high on the ○ (m) = mean standardized predictor score
test, yet did poorly on the job. of selected applicants; the average test
○ Q4 - employees who scored low on the test score of the non-hire applicants is
and did poorly on the job. subtracted form the average test score of
the hired applicants. This difference is
divided by the standard deviation of all
the test scores.
● Example. Suppose:
○ We hire 10 auditors per year
○ The average person in this position stays
2 years
○ The validity coefficient is .40
○ The average annual salary for the
position is $30,000
○ We have 50 applicants for ten openings.
○ $10 testing fee per applicant

● (Proportion of Correct Decisions With Test) To

estimate the test’s effectiveness, the number
of points in each quadrant is totaled, and the
following formula is used:
 but have a high undergraduate grade point
DETERMINING THE FAIRNESS OF A TEST
average (GPA). If the GPA is high enough, it
would compensate for the low GRE score.
TEST BIAS
● Technical aspects of the test RULE OF THREE
● A test is biased if there are group differences ● Rule of three is variation on top-down
in test scores (e.g., race, gender) that are selection in which the names of the top three
unrelated to the construct being measured applicants are given to a hiring authority who
(e.g., integrity) can then select any of the three.
● This person can then choose any of the three
TEST FAIRNESS based on the immediate needs of the
● Includes bias as well a political and social employer.
issues
● A test is fair if people of equal probability of PASSING SCORES
success on a job have an equal chance of ● A passing score is the minimum test score
being hired that an applicant must achieve to be
considered for hire.
ADVERSE IMPACT ● Advantages include: Increased flexibility in
● Occurs when the selection rate for one group decision making; Less adverse impact
is less than 80% of the rate for the highest against protected groups
scoring group ● Disadvantages include: Lowered utility; Can
● An employment practice that results in be difficult to set
members of a protected class being ● With top-down selection, the question is,
negatively affected at a higher rate than “Who will perform the best in the future?”
members of the majority class. With passing scores, the question becomes,
● Adverse impact is usually determined by the “Who will be able to perform at an acceptable
four-fifths rule. level in the future?”
● Multiple Cut-Off. A selection strategy in
which applicants must meet or exceed the
passing score on more than one selection
test.
● Multiple-Hurdle. Selection practice of
administering one test at a time so that
applicants must pass that test before being
allowed to take the next test.

MAKING THE HIRING DECISION BANDING

● Banding is a statistical technique based on
the standard error of measurement that
LINEAR APPROACHES TO MAKING THE SELECTING allows similar test scores to be grouped. It
DECISION attempts to hire the top test scorers while
still allowing some flexibility for affirmative
UNADJUSTED TOP-DOWN SELECTION action
● With top-down selection, applicants are ● Standard error of measurement (SEM) is
rank-ordered on the basis of their test scores. the number of points that a test score could
Selection is then made by starting with the be off due to test unreliability.
highest score and moving down until all ○ Band is established by multiplying 1.96
openings have been filled. times the standard error
○ The advantage to top-down selection is
that by hiring the top scorers on a valid
test, an organization will gain the most ○ Example: For example, suppose we have a
utility (Schmidt, 1991). test with a reliability of .90 and a
○ The disadvantages are that this approach standard deviation of 13.60. The
can result in high levels of adverse impact calculation of the standard error would is
and it reduces an organization’s flexibility
to use nontest factors such as references
or organizational fit.
● In a compensatory approach, if multiple
test scores are used, the relationship
between a low score on one test can be
compensated for by a high score on another.
● For example, a student applying to a
graduate school might have a low GRE score
Topic 4: Effective and
Legal Performance
STEP 3: DETERMINE WHO WILL EVALUATE
PERFORMANCE
Appraisal Systems ● Typically organizations rely solely on
Industrial Psychology supervisors to conduct performance
(PSY 10) SEM 1 appraisals
● Organizations, however, have realized that
supervisors see only certain aspects of an
employee’s behavior.
● The 360-degree feedback is a performance
OVERVIEW OF THE 10-STEP PROCESS appraisal system in which feedback is
1. Step 1: Determine the reason for evaluating obtained from multiple sources such as:
employee performance ○ Supervisors. More than 90% of
2. Step 2: Identify Environmental and Cultural organizations use some form of
Limitations supervisor’s rating for performance.
3. Step 3: Determine who will Evaluate They see results
Performance ○ Subordinates. Subordinate ratings can
4. Step 4: Select the Best Appraisal Methods to be difficult to obtain because
Accomplish Your Goals employees fear a backlash if they
a. Determining the Focus of the unfavorably rate their supervisor,
Appraisal Dimensions especially when a supervisor has only
b. Should Dimensions Be Weighted? one or two subordinates.
c. Determine How to Rate Employees ○ Peers. Successful in predicting the
5. Step 5: Train Raters future success of promoted
6. Step 6: Observe and Document Performance employees. They see the behavior.
7. Step 7: Evaluate Performance ○ Customers. They provide feedback on
8. Step 8: Communicate appraisal results to employee performance by filing
employees complaints or complimenting a
9. Step 9: Make personnel decisions: manager about one of her employees.
termination ○ Self-appraisal. Employee
10. Step 10: Monitor the legality and fairness of self-appraisals tend to suffer from
the appraisal process leniency
● A multiple-source feedback is a
performance appraisal strategy in which an
STEP 1: DETERMINE THE REASON FOR
employee receives feedback from sources
EVALUATING EMPLOYEE PERFORMANCE
(e.g., clients, subordinates, peers) other than
● This determination is important because the just his or her supervisor.
various performance appraisal techniques
are appropriate for some purposes but not for
STEP 4: SELECT THE BEST APPRAISAL METHODS
others.
TO ACCOMPLISH YOUR GOALS
● Though there are many uses and goals for
performance appraisal, the most common
include DETERMINE THE FOCUS OF THE APPRAISAL
○ providing employee feedback and training DIMENSIONS
(65%)
○ determining salary increases, making TRAIT-FOCUSED PERFORMANCE DIMENSIONS
promotion decisions (86%) ● A trait-focused system concentrates on
○ making termination decisions (30%) such employee attributes as dependability,
○ and conducting personnel research (20%) honesty, and courtesy.
● Peter Principle. The idea that organizations ● They provide poor feedback and thus will not
tend to promote good employees until they result in employee development and growth.
reach the level at which they are not
competent—in other words, their highest COMPETENCY-FOCUSED PERFORMANCE
level of incompetence. DIMENSIONS
● Competency-focused dimensions
STEP 2: IDENTIFY ENVIRONMENTAL AND concentrate on the employee’s knowledge,
CULTURAL LIMITATIONS skills, and abilities.
● The advantage to organizing dimensions by
● Identify and consider the type of environment competencies is that it is easy to provide
and culture the company has. feedback and suggest the steps necessary to
● For example, if supervisors are highly correct deficiencies.
overworked, a time-consuming performance
appraisal system will not be successful.
TASK-FOCUSED PERFORMANCE DIMENSIONS ● Rank Order. It is the easiest and most
● Task-focused dimensions are organized by common, where employees are ranked from
the similarity of tasks that are performed. best to worst.
● The advantage of this approach is that
because supervisors are concentrating on
tasks that occur together and can thus
visualize an employee’s performance, it is
often easier to evaluate performance than
with the other dimensions.

GOAL-FOCUSED PERFORMANCE DIMENSIONS

● Organize the appraisal on the basis of goals
to be accomplished by the employee. ● Paired Comparisons. It is a form of ranking
● The advantage of a goal-focused approach is in which a group of employees to be ranked
that it makes it easier for an employee to are compared one pair at a time.
understand why certain behaviors are
expected.

● Force Distribution. It is a performance

appraisal method in which a predetermined
percentage of employees are placed into a
number of performance categories.
SHOULD DIMENSIONS BE WEIGHTED?
● The next decision is whether the dimensions
should be weighted so that some are more
important than others.
● Advantage is that some tasks are more
important than others. For example, it is
more important for a firefighter to be able to USING OBJECTIVE MEASURES
fight a fire than have a clean firefighting suit ● Quantity of Work. A type of objective
● Disadvantage is that it is tough from an criterion used to measure jo performance by
administration standpoint; weighting counting the number of relevant job
dimensions makes ratings more difficult to behaviors that occur. For example, we might
compute ratings and communicate the judge a salesperson’s performance by the
ratings to employees number of units she sells.
● Quality of Work. A type of objective criterion
DETERMINE HOW TO RATE EMPLOYEE used to measure job performance by
● At this point, organizations must decide how comparing a job behavior with a standard.
to rate the employees. For example, a cook’s quality might be
● They must choose whether to: judged by how her food resembles a standard
○ compare them to one another, as measured by size, temperature, and
○ use objective measures, or ingredient amounts.
○ to have supervisor’s rate their performance ● Attendance. Attendance can be separated
on each dimension into three distinct criteria: absenteeism,
tardiness, and tenure.
EMPLOYEE COMPARISONS ● Safety. Employees who follow safety rules
and who have no occupational accidents do
● Employees are compared to one another
not cost an organization as much money as
instead of having their performance
those who break rules, equipment, and
individually rated
possibly their own bodies.
 RATINGS OF PERFORMANCE
STEP 7: EVALUATE PERFORMANCE
● Most commonly used way organizations
evaluate performance is through supervisors
rating employees on established dimensions OBTAINING AND REVIEWING OBJECTIVE DATA
● Graphic Rating Scale. Rating each ● When it is time to appraise an employee’s
dimension on either a 5 or a 10 point scale. performance, a supervisor should first obtain
(poor to excellent). This has been criticized and review the objective data relevant to the
because of their susceptibility to such rating employee’s behavior.
errors as halo and leniency, ● These data, when combined with
● Behavioral Checklist. It consists of a list of critical-incident logs, provide a solid basis on
behaviors, expectations, or results for each which to rate an employee.
dimension. It is also constructed by
converting task statements into behavioral READING CRITICAL-INCIDENT LOGS
statements, indicating the level or ● After obtaining objective data, the supervisor
performance expected should go back and read all of the critical
○ Behaviorally Anchored Rating Scale. A incidents written for an employee.
scale that assesses the performance
of new employees or trainees based COMPLETING THE RATING FORM
on well-defined behavioural patterns. ● Once critical-incident logs have been read
○ Behavioral Observation Scale (BOS). and objective data reviewed, the supervisor is
ready to assign performance appraisal
STEP 5: TRAIN RATERS ratings. While making these ratings, the
supervisor must be careful not to make
● Research has indicated that training common rating errors
supervisors to become aware of the various
rating errors and how to avoid them often COMMON RATING ERRORS
increases accuracy and reduces rating errors; ● Distribution Error. It occurs when the rater
increases the validity of tests validated only uses part of the scale instead of rating
against the ratings; and increases employee using the full range of numbers
satisfaction with the ratings ○ Leniency Error. A type of rating error in
● Frame-of-reference training. A method of which a rater consistently gives all
training raters in which the rater is provided employees high ratings, regardless of
with job-related information, a chance to their actual levels of performance.
practice ratings, examples of rating made by ○ Central Tendency Error. A type of rating error
experts, and the rationale behind the expert in which a rater consistently rates all
ratings. employees in the middle of the scale,
regardless of their actual levels of
STEP 6: OBSERVE AND DOCUMENT performance.
PERFORMANCE ○ Strictness Error. A type of rating error in
which a rater consistently gives all
● Supervisors must observe employee behavior employees low ratings, regardless of their
and document critical incidents as they actual levels of performance.
occur. ● Halo Errors. A halo error occurs when a rater
● Critical incidents. A method of performance allows either a single attribute or an overall
appraisal in which the supervisor records impression of an individual to affect the
employee behaviors that were observed on ratings that she makes on each relevant job
the job and rates the employee on the basis dimension. Moreover, it occurs when a rater
of that record. These are examples of believes the one being rated is high in one
excellent and poor employee performance. attribute which convinces them to rate other
● Supervisors tend to remember the following: attributes high as well
○ First impressions (primacy effects). ● Proximity Error. When the dimension
Supervisors recall behaviors that are immediately following another dimension is
consistent with their first impression of an given the same rating purely because they
employee) are physically next to each other
○ Recent behaviors (recency effects) ● Contrast Error. This occurs when the
○ Unusual behaviors performance rating one employee receives is
○ Extreme behaviors influenced by the employee rated previously.
○ Behavior consistent with supervisor's opinion. ● Low Reliability Across Raters. Two people
If a supervisor likes an employee, she will rating the same employee seldom agree with
probably recall only behaviors consis tent each other.
with that opinion. ● Sampling Problems
● Cognitive Processing of Observed Behavior
STEP 8: COMMUNICATE APPRAISAL RESULTS TO STEP 9: MAKING PERSONNEL DECISIONS
EMPLOYEES
● One of the most important uses of the LEGAL REASONS FOR TERMINATION EMPLOYEES
performance-evaluation data is to provide
feedback to the employee and assess their PROBATIONARY PERIOD
strengths and weaknesses so that further ● Employees are given a probationary period in
training can be implemented which to prove that they can perform well.
● Some research suggests that certain ● Employees can be terminated more easily
techniques can be used to make the during the probationary period than at any
performance appraisal interview more other time.
effective: time, scheduling, and preparation.
VIOLATION OF COMPANY RULES
PRIOR TO THE INTERVIEW ● Courts consider five factors in determining
the legality of a decision to terminate an
ALLOCATING TIME employee for violating company rules.
● Both the supervisor and the employee must ○ A rule against a particular behavior
have time to prepare for the review inter- must actually exist.
view. ○ Ability of the employer to prove that
● Both should be allowed at least an hour to an employee actually violated the
prepare before an interview and at least an rule.
hour for the interview itself. ○ The extent to which the rule has been
equally enforced.
SCHEDULING THE INTERVIEW ○ The extent to which the punishment
● The interview location should be in a neutral fits the crime.
place that ensures privacy and allows the
supervisor and the employee to face one INABILITY TO PERFORM
another. ● An organization will need to prove that the
● Performance appraisal review interviews employee could not perform the job and that
should be scheduled at least once every six progressive discipline was taken to give the
months for most employees and more often employee an opportunity to improve.
for new employees. ● It must first demonstrate that a reasonable
standard of performance was communicated
PREPARING THE INTERVIEW to the employee.
● The supervisor should review the ratings she
has assigned to the employee and the REDUCTION IN FORCE (LAYOFF)
reasons for those ratings. ● Employees can be terminated if it is in the
best economic interests of an organization to
DURING THE INTERVIEW do so
● Begin the interview with some small talk
until the jitters go away. THE TERMINATION MEETING
● The supervisor should communicate the
following: PRIOR TO THE MEETING
○ (1) the role of performance appraisal—that ● The first step is to ensure that the legal
making decisions about salary increases process has been followed.
and terminations is not its only purpose; ● The next step is to determine how much help,
○ (2) how the performance appraisal was if any, the organization wants to offer the
conducted; employee.
○ (3) how the evaluation process was ● The final step is to schedule an appropriate
accomplished; place and time for the meeting to occur.
○ (4) the expectation that the appraisal
interview will be interactive; and DURING TO THE MEETING
○ (5) the goal of understanding and ● During the meeting, the supervisor should
improving performance. get to the point about terminating the
employee.
● The supervisor should rationally state the
reasons for the decision, express gratitude
for the employee’s efforts (if sincere), and
offer whatever assistance the organization
intends to provide.
STEP 10: MONITOR THE LEGALITY AND FAIRNESS
OF THE APPRAISAL SYSTEM
● As such, performance ratings should be
analyzed each rating period to determine if
there are gender, race/ethnicity, or age
differences.
● The personnel decisions that are based on
the performance appraisal ratings should be
analyzed to ensure discrimination does not
occur.
 ● the employees perceive they are being
FINALS ●
treated fairly; and
their coworkers demonstrate a high level of
motivation.

Topic 1: Employee
Motivation IS AN EMPLOYEE PREDISPOSED TO BEING
MOTIVATED?
Industrial Psychology
(PSY 10) SEM 1 PERSONALITY
● Conscientiousness is the best predictor of
work performance, organizational citizenship
behavior (OCB), and academic performance
MOTIVATION ● Organizational citizenship behavior -
behaviors that are not part of an employee’s
● It is the force that drives an employee to do job but which make the organization a better
well (Aamodt, 2016). place to work
● Work motivation is the internal force that ● Stability is most associated with salary and
drives a worker to action as well as the setting high goals
external factors that encourage that action ● Extraversion is most highly correlated with
(Locke & Latham, 2002) the number of promotions received.
● Ability and skill determine whether a worker
can do the job, but motivation determines SELF-ESTEEM
whether the worker will do it properly. ● Korman’s consistency theory: there is a
positive correlation between self-esteem and
WORK BEHAVIORS THAT IMPLY MOTIVATION performance and people try to perform at
levels consistent with their self-esteem level
● High Performance Level ● Chronic self-esteem – the positive or
○ Excellent supervisor ratings negative way in which a person views himself
○ High productivity as a whole
○ High quality ● Situational self-esteem – the positive or
○ Low levels of wasted materials negative way in which a person views himself
○ Salary in a particular situation
○ Number of promotions ● Socially influenced self-esteem – the
● Exemplary Attendance positive or negative way in which a person
○ Not missing work views himself based on the expectations of
○ Arriving to work early others
○ Staying late at work ● Self-esteem workshop: give insight into
● Organizational Citizenship employee’s strengths Includes: outdoor
○ Volunteering for extra duties experiential training, ropes course
○ Helping coworkers ● Experience with success: give a task that
○ Making suggestions for employees will certainly succeed at
organizational improvement ● Based on self-fulfilling prophecy - people
○ Skipping lunch to complete a project behave in ways consistent with their self
● Self-Improvement Efforts image
○ Attending voluntary training ● Galatea effect: self-expectations predicts
○ Participating during training performance
○ Accepting performance feedback ● Supervisor behavior: to communicate a
feeling of confidence in an employee
EMPLOYEES WILL BE HIGHLY MOTIVATION IF…. ● Pygmalion effect- if people believe
something is true, they will act in a manner
● They have a personality that predisposes consistent with that belief
them to be motivated; ● Golem effect - negative expectations of an
● their expectations have been met; individual cause a decrease in that
● the job and the organization are consistent individual’s performance
with their values;
● the employees have been given achievable INTRINSIC MOTIVATION
goals; ● Intrinsic motivation is work motivation in the
● the employees receive feedback on their goal absence of external factors
attainment; ● Seeks to perform well because they enjoy
● the organization rewards them for achieving performing the actual tasks or enjoy the
their goals; challenge of successfully completing the
task
 ● Extrinsic motivation is work motivation that JOB CHARACTERISTICS
arises from non personal factors
● Seeks to perform well in order to receive JOB CHARACTERISTICS THEORY
some type of reward or to avoid negative ● Employees desire jobs that are meaningful,
consequences provide them with the opportunity to be
● Work Preference Inventory (WPI) is a measure personally responsible for the outcome of
of an individual’s orientation toward intrinsic their work (autonomy), and provide them
versus extrinsic motivation. with feedback of the results of their efforts
● The motivating potential of a job is
NEED FOR ACHIEVEMENT AND POWER influenced by: skill variety, task
● According to David McClelland, employees identification, and task significance.
differ in the extent to which they are
motivated by the NEEDS, VALUES, AND WANTS
○ Need for achievement- the extent to ● A discrepancy between an employee’s needs,
which a person desires to be values, and wants and what a job offers can
successful also lead to low levels of motivation and
○ Employees with a high need for satisfaction.
achievement are motivated by jobs
that are challenging and over which MASLOW’S NEEDS HIERARCHY
they have control ● Lower level needs must be satisfied before an
○ Need for affiliation individual will be concerned with the next
○ Employees with a high need for level of needs
affiliation are motivated by jobs in ○ Basic biological needs- survival
which they can work and help other ○ Safety needs- physical safety and
people psychological safety (job security)
○ Need for power- the extent to which a ○ Social needs- interacting with others
person desires to be in control of ○ Ego needs- recognition and success
other people ○ Self-actualization needs- need to
realize one’s potential
ARE EMPLOYEES EFFECTIVELY INVOLVED IN SELF- ● Evaluation of Maslow’s Theory
REGULATING BEHAVIOR? ○ Too many levels
○ Little research support on the
● Self-regulation: a person’s ability to select, “hierarchy”
set, and modify goals to adapt to changing
conditions.
ALDERFER’S ERG THEORY
○ Choose goals and set levels for each
● Three levels of needs: existence, relatedness
goal.
and growth
○ Plan how they will accomplish those
● A person can skip levels
goals.
● If the path to the next level is blocked, the
○ Take action toward accomplishing
employee becomes frustrated and places
the goals (goal striving).
importance on the previous level
○ Evaluate progress toward goal
attainment and either maintain,
revise, or abandon a goal.

HAVE THE EMPLOYEE’S VALUES AND

EXPECTATIONS BEEN MET?
● The extent to which we apply energy at work
is influenced by the discrepancy between
what we want, value, and expect and what the
job actually provides. HERZBERG’S TWO FACTOR THEORY
● Wants and values may change over time. ● There are two factors involved in job
satisfaction
JOB EXPECTATIONS ○ Hygiene factors
● Job expectations are a discrepancy between ○ Job-related elements that result from
what an employee expected a job to be like but do not involve the job itself
and the reality of the job can affect ○ Hygiene factors are necessary but not
motivation and satisfaction. sufficient for job satisfaction and
● A way to address this is through giving the motivation. If they are low, they result
applicants a realistic job preview (RJP) in dissatisfaction.
○ Motivators
 ○ The elements of a job that concern ● A reinforcer or a punisher is most effective if
the actual duties performed by the it occurs soon after the performance of the
employee behavior
○ Only the presence of both motivators
● Schedule of reinforcement
and hygiene factors can bring job
satisfaction
● Research method used by Herzberg: survey CONTINGENCY OF CONSEQUENCES
● Reward and punishment must be made
DO EMPLOYEES HAVE ACHIEVABLE GOALS? contingent upon performance and this
● Goal Setting- a method of increasing contingency of consequence must be clear to
performance in which employees are given employees if we want them to be motivated.
specific performance goals to aim for ● If the reward or punishment cannot be
○ Specific administered immediately, the employee
○ Measurable
must be told the purpose of the consequence
○ Difficult but Attainable
○ Relevant so the link between behavior and outcomes
○ Time bound is clear
● Employee participation
○ A meta-analysis indicates that TYPE OF INCENTIVE USED
employee participation in goal ● Conduct surveys about what employees want
setting increases the commitment to because supervisors and employees often
reaching a goal have different ideas about what is rewarding
and important.
ARE EMPLOYEES RECEIVING FEEDBACK ON THEIR
● Premack Principle is the idea that
GOAL PROGRESS?
● Feedback can be verbal, non verbal or reinforcement is relative both within an
through the use of charts, etc. individual and between individuals
● Feedback best increases performance when ● Reinforcement hierarchy is a rank-ordered
it is positive and informational rather than list of reinforcers for an individual
negative and controlling ● Financial Rewards
● Supervisors should indicate their willingness ○ Make variable pay an integral part of
to provide feedback and then reinforce
an employee’s compensation
employees who seek it
● Tips package
○ Identify the employee’s behavior and ○ Use financial rewards as a bonus
focus on it rather than on the accomplishing
employee’s personality 0000000000000000000000000000
○ Explain how the behavior is 0000000000000000000000000000
impacting others 0000000000000000000000000000
○ Ask the employee for suggestions on
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how the behavior can be changed
and provide them as needed. 0000000000000000000000000000
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ARE EMPLOYEES REWARDED FOR ACHIEVING 0000000000000000000000000000
GOALS? 0000000000000000000000000000
● Operant conditioning- a type of learning 0000000000000000000000000000
based on the idea that humans learn to 000000000000000certain goals
behave in ways that will result in favorable
●
outcomes and learn not to behave in ways
that result in unfavorable outcomes
● Six factors that determine the effectiveness
of incentive programs
○ Timing of the incentive
○ Contingency of the consequences
○ Type of incentive used
○ Use of individual-based versus
group-based incentives
○ Use of positive incentives versus
negative incentives
○ Fairness of the reward system

TIMING OF THE INCENTIVE