Reviewer IndPsych 2015finals

INDUSTRIAL PSYCHOLOGY
FINAL EXAMINATION REVIEWER

Chapter and web page excerpts from the following References:
Mathis, R. & Jackson, J. (2011). Human Resources Management, 13th ed., USA: South-Western Cengage Learning
McShane, Von Glinow (2012). Organizational Behavior. Philippines: McGraw-Hill
Torrington, D., Hall, L. & Taylor, S. (2008). Human Resources Management, 7th ed., England: Pearson Education Limited
http://www.ifrei.asia/2014/05/11/dimensions-of-corporate-family-responsibility/
http://www.siop.org/tip/Apr13/19_TipTopics.aspx
ORGANIZATIONAL BEHAVIOUR, STRUCTURES AND SYSTEMS

MARS (MOTIVATION, ABILITY, ROLE PERCEPTION, SITUATIONAL FACTORS) MODEL
One of the earliest formulas was Performance= Person X Situation
o Person includes individual characteristics and situation represents external influences on the
individuals behaviour.
Another frequently mentioned formula isPerformance X Ability = Motivation.
o Sometimes known as the skill-and-will model
Motivation. The forces within a person (employee) that affect his or her direction, intensity, and
persistence of voluntary behaviour.
o Elements of Motivation:
o Direction - path along which people engage their effort.
o Intensity - amount of effort allocated to the goal; about how much people push
themselves to complete a task.
o Persistence of voluntary behavior - continuing the effort for a certain amount of time
Abilities. These are the natural aptitudes and the learned capabilities required to successfullycomplete
a task.
Aptitudes - natural talents that help employees learn specifictasks more quickly and perform
them better.
Learned capabilities - skills and knowledge that you currentlypossess; include the physical and
mental skills and knowledge youhave acquired; tend to wane over time when not in use.
Competencies - characteristics of a person that result in superior performance; described as
personal traits (i.e., knowledge, skills, aptitudes, personality, self-concept, values).
Role perceptions. The extent to whichpeople understandthe job duties (roles)assigned to or
expectedof them.It has three (3) components:
o Accurate role perceptions when employees understand the specific tasks assigned to
them, that is, when they know the specific duties or consequences for which they are
accountable.
o People have accurate role perceptions when they understand the priority of their various
tasks and performance expectations; includes the quantity versus quality dilemma,
properly allocating time and resources to various tasks
o Understanding the preferred behaviors or procedures for accomplishing the assigned
tasks; refers to situations in which more than one method could be followed to perform
the work. Employees with clear role perceptions know which of these methods is
preferred by the organization.
Situational factors. Include conditions beyond the employees immediate control that constrain or
facilitate behavior and performance.
o Consumer preferences and economic conditionsoriginate from the external
environment and, consequently, are beyond the employees and organizations control.
o Time, people, budget, and physical work facilitiesare controlled by peoplewithin the
organization.
Industrial Psychology Reviwer @ercmateo2015 Page 1 of 24
o Corporate leaders need to carefully arrange these conditions so that employees can
achieve their performance potential.
PERSONALITY.The relatively enduring pattern of thoughts, emotions, and behaviors that characterize a
person, along with the psychological processes behind those characteristics.
Five-factor model (FFM) of personality (five abstract dimensions) representing most personality
traits: OCEAN: Openness to experience, Conscientiousness, Extroversion, Agreeableness, and
Neuroticism.
o Conscientiousness, agreeableness, and low neuroticism (high emotional stability) : getting

along peoplewho are aware of and more likely to abide by rules andnorms of society.
o People with high scores on extroversion and openness to experience are more of the getting
ahead type; exhibit more behaviors aimed at achieving goals, managing their environment,
and advancing themselves in teams
Jungian personalitytheory, measured through the Myers-Briggs Type Indicator (MBTI).
o Swiss psychiatrist Carl Jung proposed that personality is primarily represented by the
individuals preferences regarding perceiving and judging information.
Perceiving - involves how people prefer to gather information or perceive the world
around them, occurs through two competing orientations: sensing (S) and intuition (N).
Sensing perceiving information directly through the five senses; it relies on an
organized structure to acquire factual and preferably quantitative details, focus
on the here and now.
Intuition - relies more on insight and subjective experience to see relationships
among variables; focus more on future possibilities.
Judginghow people process information or make decisions based on what they have
perceivedconsists of two competing processes: thinking (T) and feeling (F).
Thinking - rely on rational cause-effect logic and systematic data collection to
make decisions.
Feeling - rely on their emotional responses to the options presented,as well as to
how those choices affect others.
o MBTI - one of the most widely used personality tests in work settings as well as in career
counseling and executive coaching.
SELF-CONCEPT.An individuals self-beliefsand self-evaluations.

o Three structural dimensions: complexity, consistency, andclarity: influence an individuals adaptability
and well-being.
o Higher complexity - consists of many categories.
o High consistency - similar personality traits and values are required across all aspects of self-
concept.
o Low consistency - some aspects of self require personal characteristics that conflict with the
characteristics required for other aspectsof self.
o Clarity - degree to which a persons self-conceptions are clearly and confidently described,
internally consistent, and stable across time.
o Generally, people develop a clearer self-concept as they get older.
o People function better when their self-concept has many elements (high complexity) that are
compatible with each other (high consistency) and are relatively clear.
o In contrast, people are more rigid and inflexible, and therefore less adaptable, when their self-
view consists of only a few similar characteristics (low complexity).
o People also have poorer psychological adjustmentwhen their self-concept is less clear and
includes conflicting elements.
o Self-Enhancement. How much a person is motivated by self-interestincludes the value categories of
achievement (pursuit of personal success) and power (dominance over others). T

o Positive consequences: Research has found that individuals have better personal adjustment
and experience better mental and physical health when they view their self-concept in a positive
light.
o Negative consequence: It can result in bad decisions. For example, studies report that self-
enhancement causes managers to overestimate the probability of success in investment
decisions.
o Self-Verification. Stabilizes an individuals self-concept,which, in turn, provides an important anchor
that guides his or her thoughtsand actions.
o Hasseveral implications for organizational behavior.
It affects the perceptual process because employees are more likely to
rememberinformation that is consistent with their self-concept.
The more confidentemployees are in their self-concept, the less they will accept
feedbackpositive ornegativethat is at odds with their self-concept.
Employees are motivated tointeract with others who affirm their self-concept, and this
affects how well they getalong with their boss and with co-workers in teams.
o Self-Evaluation
o Mostly definedby three concepts: self-esteem, self-efficacy, and locus of control.
Self-Esteem - the extent to which people like, respect, and are satisfiedwith
themselvesrepresents a global self-evaluation.
People with high self-esteem: less influenced by others, tend to persist in spite of
failure, and think more rationally.
Self-efficacy - A persons belief that he or she has the ability, motivation, correct role
perceptions, and favorable situation to complete a task successfully.
Locus of control - A persons general belief about the amount of control he or she has
over personal life events.
o Social identity theory. A theory that explainsself-concept in termsof the persons uniquecharacteristics
(personalidentity) andmembership in varioussocial groups (socialidentity).
VALUES.Stable,evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of
situations; perceptions about what is good or bad, right or wrong.
o Two lists of values, distinguishing means (instrumental values) from end goals (terminal values)
developed by social psychologist Milton Rokeach.
o Most respected and widely studied set of values is the model developed and tested by social
psychologist Shalom Schwartz and his colleagues.
o Schwartzs list of 57 values builds on Rokeachs earlier work but does not distinguish
o Human values are organized into the circular model (circumplex) shown below.
o The model organizes values into 10 broad categories, each representing several specific values.
o
o
Sources: S. H. Schwartz, Universals in the Content and Structure of Values: Theoretical Advances and Empirical Tests in 20 Countries, Advances
in Experimental Social Psychology, 25 (1992), pp. 165; S. H. Schwartz and G. Sagie, Value Consensus and Importance: A Cross-National Study,
Journal of Cross-Cultural Psychology, 31 (July 2000), pp. 465497.
o Values across culture

o Individualism - degree to which people in a culture emphasize independence and personal
uniqueness.
o Collectivism - degree to which people in a culture emphasize duty to groups to which people
belong and to group harmony.

o Power distance degree to which people in a culture accept unequal distribution of power in a
society.
o Uncertainty avoidance degree to which people in a culture tolerate ambiguity (low
uncertainty avoidance) or feel threatened by ambiguity and uncertainty (high uncertainty
avoidance).
o Achievement-nurturing orientation degree to which people in a culture emphasize
competitive versus cooperative relations with other people.
DRIVES VS. NEEDS

o Drives (also called primary needs or innate motives ) - hardwired characteristics of the brain that
correct deficiencies or maintain an internal equilibrium by producing emotions to energize individuals.
o prime movers of behavior because they generate emotions, which put people in a state of
readiness to act on their environment
o Needs - goal-directed forces that people experience; motivational forces of emotions channeled toward
particular goals to correct deficiencies or imbalances; are essentially the emotional experience
channeled toward goals believed to address the source of emotion.
o Maslows contribution to the field of human motivation
o Abraham Maslows needs hierarchy theory - people are motivated to fulfill a higher need as a
lower one becomes gratified; represents drives (primary needs) because they are described as
innate and universal.
Physiological. The need for food, air, water, shelter, and the like.
Safety. The need for a secure and stable environment and the absence of pain, threat,
or illness.
Belongingness/love. The need for love, affection, and interaction with other people.
Esteem. The need for self-esteem through personal achievement as well as social
esteem through recognition and respect from others.
Self-actualization. The need for self-fulfillment, realization of ones potential.
o ERG theory - A needs hierarchy theory consisting of three fundamental needsexistence,
relatedness, and growth.
o explained how people progress up the hierarchy and also describes how people regress down
the hierarchy when they fail to fulfill higher needs.
o Why have Maslows needs hierarchy theory, ERG theory, and other needs hierarchies largely
failed to explain the dynamics of employee needs?
o People dont fit into a single needs hierarchy.
o Increasing evidence that needs hierarchies are unique to each person, not universal, because
needs are strongly influenced by each individuals self-concept, including personal values and
social identity.
o Learned Needs Theory
o Psychologist David McClelland further investigated the idea that need strength can be altered
through social influences; recognized that a persons needs can be strengthened through
reinforcement, learning, and social conditions.
o Three learned needs: achievement, power, and affiliation
Need for achievement (nAch) - people want to accomplish reasonably challenging
goals and desire unambiguous feedback and recognition for their success.
Need for affiliation (nAff)- people seek approval from others, conform to their wishes
and expectations, and avoid conflict and confrontation.
Need for power (nPow) people want to control their environment, including people
and material resources, to benefit either themselves (personalized power) or others
(socializedpower).
o Four-drive theory- A motivation theory that is based on the innate drives to acquire, bond, learn, and
defend and that incorporates both emotions and rationality; developed by Harvard Business School
professors Paul Lawrence and NitinNohria.
o Drive to acquire . This is the drive to seek, take, control, and retain objects and personal
experiences; extends beyond basic food and water; it includes enhancing ones self-concept
through relative status and recognition in society.
Foundation of competition and the basis of our need for esteem.
o Drive to bond. This is the drive to form social relationships and develop mutual caring
commitments with others; explains why people form social identities by aligning their self-
concept with various social groups; may also explain why people who lack social contact are
more prone to serious health problems.
motivates people to cooperate and, consequently, is a fundamental ingredient in the
success of organizations and the development of societies.
o Drive to learn. This is the drive to satisfy our curiosity, to know and understandourselves and
the environment around us
o Drive to defend. This is the drive to protect ourselves physically and socially; probably the first
drive to develop, it creates a fight-or-flight response in theface of personal danger; goes
beyond protecting our physicalself; includes defending our relationships, our acquisitions, and
our beliefsystems.
o Practical Implications
Its main recommendation is to ensure that individual jobs and workplaces provide a
balanced opportunity to fulfill the drives to acquire, bond, learn, and defend.
The best workplaces for employee motivation and well-being offer conditions that
help employees fulfill all four drives.
Fulfillment of the four drives must be kept in balance; that is, organizations
should avoid too much or too little opportunity to fulfill each drive.
o The reason for this advice is that the four drives counterbalance each
other.
The drive to bond counterbalances the drive to acquire
The drive to defend counterbalances the drive to learn
o Expectancy theory. A motivation theory based on the idea that work effort is directed toward
behaviors that people believe will lead to desired outcomes.
o E-to-P expectancy. This is the individuals perception that his or her effort will result in a
particular level of performance.
o P-to-O expectancy. This is the perceived probability that a specific behavior or performance
level will lead to a particular outcome.
o Outcome valences. A valence is the anticipated satisfaction or dissatisfaction that an individual
feels toward an outcome; ranges from negative to positive
Have a positive valence when they are consistent with our values and satisfy our needs.
Have negative valence when they oppose our values and inhibit need fulfillment.

GOAL SETTING.The process of motivatingemployees andclarifying their role perceptionsby establishing
performance objectives.
improves employee performance in two ways: (1) by amplifying the intensity and persistence of effort
and (2) by giving employees clearer role perceptions so that their effort is channelled toward
behaviours that will improve work performance.
Characteristics generally summarized by the acronym SMART (Specific, Measurable, Attainable,
Realistic, Time-bound)
Key ingredients identified by goal-setting research
o Specific goals. Employees put more effort into a task when they work toward specific goals
rather than do your best targets; have measurable levels of change over a specific and
relatively short time frame; communicate more precise performance expectations, so employees
can direct their effort more efficiently and reliably.
o Relevant goals. Relevant to the individuals job and be within his or her control.
o Challenging goals. Challenging goals (rather than easy ones) cause people to raise the
intensity and persistence of their work effort and to think through information more actively; also
fulfill a persons achievement or growth needs when the goal is achieved.
o Goal commitment. Ideally, goals should be challenging without being so difficult that
employees lose their motivation to achieve them; same as the E-to-P expectancy wherein the
lower the E-to-P expectancy that the goal can been accomplished, the less committed
(motivated) the employee is to the goal.
o Goal participation (sometimes). Goal setting is usually (but not always) more effective when
employees participate in setting the goals; participation potentially creates a higher level of goal
commitment than is found when goals are set alone by the supervisor and may also improve
goal quality, because employees have valuable information and knowledge that may not be
known to those who initially formed the goal.
o Goal feedback.Feedback is any information that lets us know whether we have achieved the
goal or are properly directing our effort toward it; redirects our effort, but it potentially also fulfills
our growth needs.
Necessary characteristics for feedback to be effective.
Specific and relevant; should refer to specific metrics (e.g., sales increased by
5 percent last month) and to the individuals behavior oroutcomes within his or
her control.
Timely informationshould be available soon after the behavior or results occur
so that employees see aclear association between their actions and the
consequences.
Sufficiently frequent.
o One consideration is the employees knowledgeand experience with the
task. Feedback is a form of reinforcement, so employeesworking on new
tasks should receive more frequent corrective feedbackbecause they
require more behavior guidance and reinforcement.Employees who
perform repetitive or familiar tasks can receive less frequent feedback.
o The second factor is how long it takes to complete the task. Feedback
isnecessarily less frequent in jobs with a long cycle time (e.g., executives
and scientists)than in jobs with a short cycle time (e.g., grocery store
cashiers).
Credible. Employees are morelikely to accept feedback (particularly corrective
feedback) from trustworthy andcredible sources.
Sources of feedback
Multisource (360-degree) feedback. Information about an employees
performance collected from a full circle of people, including subordinates, peers,
supervisors, and customers.
Strengths-based feedback. A positive organizational behavior approach to coaching
and feedback that focuses on building and leveraging the employees strengths rather
than trying to correct his or her weaknesses; also known as appreciative coaching.
Balanced scorecard (BSC) - A goal-setting and reward system that translates the organizations vision
and mission into specific, measurable performance goals related to financial, customer, internal, and
learning/growth (i.e., human capital) processes.
o The objective of BSC is to ensure that the full range of organizational performance is captured
in the goal settingprocess.

LEADERSHIP.Influencing, motivating,and enabling othersto contribute towardthe effectivenessand success of
theorganizations of whichthey are members.
Shared leadership. The view that leadership is broadly distributed, rather than assigned to one
person, such that people within the team and organization lead each other.
Choosing Task- versus People-Oriented Leadership
o People-oriented Leadership
Includes behaviors such as showing mutual trust and respect for subordinates,
demonstrating a genuine concern for their needs, and having a desire to look out for
their welfare.
Leaders with a strong people-oriented style listen to employee suggestions, do personal
favorsfor employees, support their interests when required, and treat employees as
equals.
o Task-oriented leadership style
Leaders assign employees to specific tasks, clarify their work duties and procedures,
ensure that they follow company rules, and push them to reach their performance
capacity. They establish stretch goals and challenge employees to push beyond those
high standards.
o Path-goal leadershiptheory
A contingency theory of leadership based on the expectancy theory of motivation that
relates several leadership styles to specific employee and situational contingencies.
This model specifically highlights four leadership styles and several contingency factors
leading to three indicators of leader effectiveness. The four leadershipstyles are:
Directive. This leadership style consists of clarifying behaviors that provide a
psychological structure for subordinates. The leader clarifies performance goals,
the means to reach those goals, and the standards against which performance
will be judged. It also includes judicious use of rewards and disciplinary actions.
Supportive.The leaders behaviors provide psychological support
forsubordinates. The leader is friendly and approachable; makes the work
morepleasant; treats employees with equal respect; and shows concern for the
status,needs, and well-being of employees.
o Same as people-orientedleadership, described earlier, and reflects the
benefits of social supportto help employees cope with stressful situations.
Participative. Participative leadership behaviors encourage and
facilitatesubordinateinvolvement in decisions beyond their normal work activities.
The leaderconsults with employees, asks for their suggestions, and takes these
ideas intoserious consideration before making a decision. Participative
leadership relatesto involving employees in decisions.
Achievement-oriented. This leadership style emphasizes behaviors that
encourageemployees to reach their peak performance. The leader sets
challenging goals,expects employees to perform at their highest level,
continuously seeks improvementin employee performance, and shows a high
degree of confidencethat employees will assume responsibility and accomplish
challenging goals.Achievement-oriented leadership applies goal-setting theory
as well as positiveexpectations in self-fulfilling prophecy.
o Servant leadership
The view that leaders serve followers, rather than vice versa; leaders help employees
fulfil their needs and are coaches, stewards, and facilitators of employee performance.
Situational leadership theory (SLT) also called the life-cycle theory of leadership
o Developed by Paul Hersey and Ken Blanchard
o Commercially popular but poorly supported leadership model stating that effective leaders vary
their style (telling, selling, participating, delegating) with the readiness of followers.
o Readiness, previously termed as maturity, refers to the employees or work teams ability and
willingness to accomplish a specific task.
o Ability refers to the extent to which the follower has the skills and knowledge to perform the
task without the leaders guidance.
o Willingness refers to the followers motivation and commitment to perform the assigned task.
The model compresses these distinct concepts into a single situational condition.
Fiedlers contingency model
o An early contingency leadership model developed by Fred Fiedler that suggests that leader
effectiveness depends on whether the persons natural leadership style is appropriatelymatched
to the situation.
Leadership substitutes
o A theory identifying contingencies that either limit a leaders ability to influence subordinates or
make a particular leadership style unnecessary.
Transformational leadership
o A leadership perspective that explains how leaders change teams or organizations by creating,
communicating, and modelling a vision for the organization or work unit and inspiring employees
to strive for that vision.
ELEMENTS OF TRANSFORMATIONAL LEADERSHIP
Transactional leadership .Leadership that helps organizations achieve their current objectives more
efficiently, such as by linking job performance to valued rewards and ensuring that employees have the
resources needed to get the job done.
Implicit leadership. A theory stating that people evaluate a leaders effectiveness in terms of how well
that person fits preconceived beliefs about the features and behaviors of effective leaders (leadership
prototypes) and that people tend to inflate the influence of leaders on organizational events. Implicit
leadership
Competency perspective of leadership has been rewritten
o Leadership competencies - skills, knowledge, aptitudes, and other personal characteristics
that lead to superior leadership performance.
o Chinese philosopher Lao-tzu described effective leaders as selfless, honest, fair, and
hardworking.
o Greek philosopher Plato claimed thatgreat leaders have wisdom and a superior capacity for
logical thinking.

Decision making.The conscious processof making choicesamong alternatives withthe intention of moving
toward some desiredstate of affairs.
Rational choice paradigm.The view in decisionmaking that peopleshouldand typicallydouse logic and
allavailable information tochoose the alternativewith the highest value.
Subjective expected utility. The probability (expectation)of satisfaction(utility) resulting fromchoosing a

specificalternative in a decision.
SIX STAGES IN THE RATIONAL CHOICE DECISION PROCESS.
Decision heuristics
Amos Tversky and Daniel Kahnemandiscovered that these are built-in in human beings
These are unstructured and often nonconscious modes of reasoning or rules of thumbthat bias an
individuals perceived probabilities that specific outcomes will occur.
Anchoring and adjustment heuristic. A natural tendency forpeople to be influencedby an initial
anchor pointsuch that they do notsufficiently move awayfrom that point as newinformation is provided.
availability heuristic
Availability heuristic. A natural tendency to assign higher probabilities to objects or events that are
easier to recall from memory, even though ease of recall is also affected by nonprobability factors (e.g.,
emotional response, recent events).
Representativeness heuristic. A natural tendency to evaluate probabilities of events or objects by the
degree to which they resemble (are representative of) other events or objects rather than on objective
probability information.
Escalation of commitment.The tendency to repeat an apparently bad decision or allocate more resources to
a failing course of action.
Causes of Escalating Commitment
Self-justification. Individuals are motivated to maintain their course of action when they have a
high need to justify their decision. This self-justification is particularly evident when decision
makers are personally identified with the project and have staked their reputations to some
extent on the projects success.
Prospect theory. A natural tendency to feel more dissatisfaction from losing a particular
amount than satisfaction from gaining an equal amount.
Perceptual blinders. Escalation of commitment sometimes occurs because decision makers
do not see the problems soon enough. They nonconsciously screen out or explain away
negative information to protect self-esteem. Even when decision makers see that something is
wrong, the information is sufficiently ambiguous that it can be misinterpreted or justified.
Closing costs. Even when a projects success is in doubt, decision makers will persist because
the costs of ending the project are high or unknown. Terminating a major project may involve
large financial penalties, a bad public image, or personal political costs.
Four benefits of employee involvement in decision making

Involved employees can help improve decision quality by recognizing problems more quickly and
defining them more accurately. Employees are, in many respects, the sensors of the organizations
environment.
Employee involvement ensures that everyone in the organization is quickly alerted to such problems.
Employee involvement can also potentially improve the number and quality of solutions
generated.Under specific conditions, it improves the evaluation of alternatives.
Employee involvement tends to strengthen employee commitment to the decision. Rather than viewing
themselves as agents of someone elses decision, staff members feel personally responsible for its
success.
Creativity.The development oforiginal ideas that makea socially recognizedcontribution.
The Creative Process Model
Characteristics of Creative People

o Intelligence. Have above-average intelligence to synthesize information, analyze ideas, and
apply their ideas.
o Persistence. Persistence to seek out these ideas through trial and error in the face of
resistance, includes the persistence of trying out more ideas, whereas less creative people give
up sooner, due to a higher need for achievement, a strong motivation.
o Knowledge and experience.Discovering new ideas requires knowledge of the fundamentals.
o Independent imagination personality traits and values.
High openness to experience. This Big Five personality dimension represents the extent
to which a person is imaginative, curious, sensitive, open-minded, and original
Moderately low need for affiliation. People are more creative when they have less need
for social approval and have a somewhat high (but not necessarily very high) degree of
nonconformity. Because of these characteristics, creative people are less embarrassed
when they make mistakes, and they remain motivated to explore ideas even when
others criticize them for their persistence.
High self-direction and stimulation values. Self-direction includes the values of
creativityand independent thought; stimulation includes the values of excitement and
challenge. Together, these values form openness to changerepresenting the
motivation to pursue innovative ways.
Job design.The process of assigningtasks to a job, includingthe interdependency ofthose tasks with other
jobs.
o Job Design Practices That Motivate
o Job rotationis the practice of moving employees from one job to another.
o Job enlargement adds tasks to an existing job. This might involve combining two or more
complete jobs into one or just adding one or two more tasks to an existing job. Either way, skill
variety increases because there are more tasks to perform.
o Job enrichment occurs when employees are given more responsibility for scheduling,
coordinating, and planning their own work. Generally, people in enriched jobs experience higher
job satisfaction and work motivation, along with lower absenteeism and turnover. Productivity is
also higher when task identity and job feedback are improved. Product and service quality tend
to improve because job enrichment increases the jobholders felt responsibility and sense of
ownership over the product or service.
Types of job enrichment
Natural grouping approach naturally groups tasks together to complete an
entire product. By forming natural work units, jobholders have stronger feelings of
responsibility for an identifiable body of work. They feel a sense of ownership
and, therefore, tend to increase job quality. Forming natural work units increases
task identity and task significance because employees perform a complete
product or service and can more readily see how their work affects others.
Establishing client relationships, involves putting employees in direct contact
with their clients rather than using the supervisor as a go-between. By being
directly responsible for specific clients, employees have more information and
can make decisions affecting those clients. Establishing client relationships also
increases task significance because employees see a line-of-sight connection
between their work and consequences for customers.
o Job specialization. The result of division oflabor in which work issubdivided into separatejobs
assigned to differentpeople.
o Each resulting job includes a narrow subset of tasks, usually completed in a short cycle time.
Cycle time is the time required to complete the task before starting overwith a new work
unit.
o Motivator-hygiene theory (credited to Frederick Herzberg) proposes that employees
experience job satisfaction when they fulfill growth and esteem needs (called motivators ) and
they experience dissatisfaction when they have poor working conditions, job security, and other
factors categorized as lower-order needs (called hygienes ).
o has been soundly rejected due to lack of research support, but Herzbergs ideas generated new
thinking about the motivational potential of the job itself, like thejob characteristics model
o Job characteristics model. A job design model that relates the motivational properties of jobs
to specific personal and organizational consequences of those properties.
Identifies five core job characteristics.
Skill variety refers to the use of different skills and talents to complete a variety
of work activities.
Task identity is the degree to which a job requires completion of a whole or
identifiable piece of work, such as assembling an entire broadband modem
rather than just soldering in the circuitry.
Task significance is the degree to which the job affects the organization and/or
larger society.
Autonomy. Jobs with high levels of autonomy provide freedom, independence,
and discretion in scheduling the work and determining the procedures to be used
to complete the work. In autonomous jobs, employees make their own decisions
rather than relying on detailed instructions from supervisors or procedure
manuals.
Job feedback is the degree to which employees can tell how well they are doing
on the basis of direct sensory information from the job itself.
Empowerment.A psychological conceptin which peopleexperience moreself-determination,meaning,

competence,and impact regardingtheir role in theorganization.
Self-determination. Empowered employees feel that they have freedom, independence,and discretion
over their work activities.
Meaning. Employees who feel empowered care about their work and believethat what they do is
important.
Competence. Empowered people are confident about their ability to perform thework well and have a
capacity to grow with new challenges.
Impact. Empowered employees view themselves as active participants in the organization; that is, their
decisions and actions have an influence on the companys success.
Self-leadership refers to the process of influencing oneself to establish the self-directionand self-motivation
needed to perform a task.
Includes a toolkit of behavioral activities borrowed from social learning theory and goal setting.
Also takes the view that individuals mostly regulate their own actions through these behavioral and
cognitive (thought) activities.
The five main activities, which generally follow each other in a sequence, are:
1. Personal Goal Setting. The first step in self-leadership is to set goals for your own work effort.
This applies the ideas on goal setting, such as identifying goals that are specific, relevant, and
challenging. The main difference is that self-leadership involves setting goals alone, rather than
having them assigned by or jointly decided with a supervisor.
2. Constructive Thought Patterns. Before beginning a task and while performing it, employees
should engage in positive (constructive) thoughts about that work and its accomplishment. In
particular, employees are more motivated and better prepared to accomplish a task after they
have engaged in positive self-talk and mental imagery.
Self-talk refers to any situation in which we talk to ourselves about our own thoughts or
actions. Some of this internal communication assists the decision-making process, such
as weighing the advantages of a particularchoice.
Mental imagery. The process of mentallypracticing a task andvisualizing its
successfulcompletion.
One part involves mentally practicing thetask, anticipating obstacles to goal
accomplishment, and working out solutions tothose obstacles before they occur.
The other part involves visualizing successful completion of the task.
3. Designing Natural Rewards. Self-leadership recognizes that employees activelycraft their
jobs. To varying degrees, they can alter tasks and work relationships to make the work more
motivating.
One way to build natural rewards into the job is toalter the way a task is
accomplished.
4. Self-monitoring is the process of keeping track at regular intervalsof ones progress toward a
goal by using naturally occurring feedback. Somepeople can receive feedback from the job
itself. Research suggests that people who have control overthe timing of performance feedback
perform their tasks better than do those withfeedback assigned by others
5. Self-reinforcement occurs whenever an employeehas control over a reinforcer but doesnt
take the reinforcer until completing a selfsetgoal.

ORGANIZATIONAL CHANGE AND DEVELOPMENT
POWER.The capacity of aperson, team, or organizationto influenceothers.

o Countervailing power. The capacity of a person, team, or organization to keep a more powerful
person orgroup in the exchange relationship.
o Sources of power
o Legitimate power is an agreement among organizational members that people in certain roles
can request certain behaviors of others.
o Reward power is derived from the persons ability to control the allocation of rewards valued by
others and to remove negative sanctions (i.e., negative reinforcement).
o Coercive power is the ability to apply punishment.
o Expert power originates from within the person. It is an individuals or work units capacity to
influence others by possessing knowledge or skills that others value.
o Referent power is the capacity to influence others on the basis of an identification with and
respect for the power holder.
o Contingencies of Power. Sources of power generate power only under certain conditions.
o Substitutability refers to the availability of alternatives.
o Centrality refers to the degree and nature of interdependence between the powerholder and
others.
o Discretion refers to the freedom to exercise judgment, to make decisions without referring to a
specific rule or receiving permission from someone else.
o Visibility. Those who control valued resources or knowledge will yield power only when
othersare aware of these sources of power, in other words, when they are visible. One way to
increase visibility is to take people-oriented jobs and work on projects that require frequent
interaction with senior executives
INFLUENCE.Any behavior that attemptsto alter someonesattitudes orbehavior.

o Types of Influence Tactics
o Consequences of Hard and Soft Influence Tactics

ORGANIZATIONAL POLITICS.Behaviors that othersperceive as self-servingtactics for personal gainat the
expense of otherpeople and possibly theorganization.
o Conditions Supporting Organizational Politics
o Scarce resources. When budgets are slashed, people rely on political tactics to safeguard their
resources and maintain the status quo.
o When resource allocation decisions are ambiguous or complex or lack formal rules. This is
because decision makers are given more discretion over resource allocation, so potential recipients
of the resources use political tactics to influence the factors that should be considered in the
decision.
o Organizational change encourages political behaviors for this reason. Change creates uncertainty
and ambiguity as the company moves from an old set of rules and practices to a new set. During
such times, employees apply political strategies to protect their valued resources, position, and self-
concept.
ORGANIZATIONAL JUSTICE.
o Distributive justice. Perceived fairness in the individuals ratio of outcomes to contributions compared
with a comparison others ratio of outcomes to contributions.
o Procedural justice. Perceived fairness of the procedures used to decide the distribution of resources.
CONFLICT.A process in which oneparty perceives thathis or her interests arebeing opposed ornegatively
affectedby another party.
o Constructive conflict occurs when people focus their discussion on the issue while showing respect
for people with other points of view. This conflict is called constructive because different positions are
encouraged so that ideas and recommendations can be clarified, redesigned, and tested for logical
soundness.
o Relationship conflict focuses on people, rather than the issues, as the source of conflict. The parties
refer to interpersonal incompatibilities such as personality clashes rather than legitimate differences of
opinion regarding tasks or decisions.
o Structural Sources of Conflict in Organizations
o Incompatible goals. The goals of one person or department seem to interfere with another
persons or departments goals.
o Differentiation. Includes differences among people, departments, and other entities regarding
their training, values, beliefs, and experiences. Differentiation can be distinguished from goal
incompatibility because two people or departments may agree on a common goal but have
profound differences in how to achieve that goal.
o Interdependence. Exists when team members must share common inputs to their individual
tasks, need to interact in the process of executing their work, or receive outcomes (such as
rewards) that are partly determined by the performance of others.
o Scarce resources. Resource scarcity generates conflict because each person or unit requiring
the same resource necessarily undermines others who also need that resource to fulfill their
goals.
o Ambiguous rules. Or the complete lack of rulesbreed conflict. This occurs because
uncertainty increases the risk that one party intends to interfere with the other partys goals.
o Communication problems. Conflict often occurs due to the lack of opportunity, ability, or
motivation to communicate effectively.
TEAM DYNAMICS: Check your previous hand-out
WORKLIFE BALANCE AND WELL-BEING IN THE WORKPLACE
Work-life balance. This initiative minimizes conflict between the employeeswork and nonwork demands.
o Five of the most common worklife balance initiatives
o Flexible and limited work time. Limiting the number of hours that employees are expected to work and
giving them flexibility in scheduling those hours.
o Job sharing . Job sharing splits a career position between two people so that they experience less time-
based stress between work and family. They typically work different parts of the week, with some
overlapping work time in the weekly schedule to coordinate activities. This strategy gives employees
the ability to work part-time in jobs that are naturally designed for full-time responsibilities.
o Telecommuting . Reduces time and stress of commuting to work and makes it easier to fulfill family
obligations, such as temporarily leaving the home office to pick the kids up from school.
o Personal leave . Employers with strong worklife values offer extended maternity, paternity, and
personal leave for employees to care for a new family or take advantage of a personal experience.
o Child care support . Reduces reduces stress because employees are less rushed to drop off children
and less worried during the day about how well their children are doing.
STRESS.An adaptive response toa situation that is perceivedas challengingor threatening to apersons well-
being.
o Distress. The degree of physiological, psychological, and behavioral deviation from healthy
functioning.
o Consequences of distress
Physical discomfort and/or illness such as, but is not limited to, tension
headaches,muscle pain, and related problems mainly due to muscle contractions from
the stress response, cardiovascular disease, including heart attacks and strokes.
Psychological consequences, such as job dissatisfaction, moodiness, depression, and
lower organizational commitment
Job burnout is a particular stress consequence that refers to the process of emotional
exhaustion, cynicism, and reduced feelings of personal accomplishment.
Stages of job burnout
o Emotional exhaustion. Characterized by a lack of energy, tiredness, and
a feeling that ones emotional resources are depleted.
o Cynicism (also called depersonalization ). Characterized by an
indifferent attitude toward work, emotional detachment from clients, a
cynical view of the organizationand a tendency to strictly follow rules and
regulations rather than adapt to the needs of others.
o Reduced personal accomplishment. Entails feelings of diminished
confidence in ones ability to perform the job well. In such situations,
employees develop a sense of learned helplessness as they no longer
believe that their efforts make a difference.
o Causes of stress: STRESSORS
Psychological harassment. Includes repeated and hostile or unwanted conduct, verbal
comments, actions, and gestures that affect an employees dignity or psychological or
physical integrity and that result in a harmful work environment for the employee.
Sexual harassment . Type of harassment in which a persons employment or job
performance is conditional and depends on unwanted sexual relations (called quid pro
quo harassment) and/or the person experiences sexual conduct from others (such as
posting pornographic material) that unreasonably interferes with work performance or
creates an intimidating, hostile, or offensive working environment (called hostile work
environment harassment).
Work overload. Working more hours, and more intensely during those hours, than they
can reasonably manage.
o Eustress. A necessary part of life because it activates and motivates people to achieve goals, change
their environments, and succeed in lifes challenges.
o General Adaptation Syndrome. A model of the stress experience, documented by Hans
Selye,consisting of three stages: alarm reaction, resistance, and exhaustion.
HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT: RECRUITMENT AND SELECTION
RECRUITMENT.The process of generating a pool of qualified applicants for organizational jobs; the process of
generating a pool of capable people to apply for employment to an organization.
o If the number of available candidates only equals the number of people to be hired, there is no real
selectionthe choice has already been made. The organization must either leave some openings
unfilled or take all the candidates.
o A key role for HR is to align performance within roles with the strategy, so recruiting for the right
people for a role depends on how it is defined in terms relating to performance to achieve the strategy.
Labor markets. The external sources fromwhich organizations attractemployees.

o COMPONENTS
o Labor force population. All individuals who areavailable for selection if allpossible
recruitmentstrategies are used.
o Applicant population. A subset of the labor force population that is available for selection
using a particular recruiting approach.
CONSIDERATIONS FOR DETERMINING APPLICANT POPULATIONS
Number and type of recruits needed
Timing of recruiting to ensure timely placement
External and internal messages on job details
Qualifications of competent applicants to be considered
Sources for obtaining qualified applicants
Outside and inside recruiting means to be used
Administrative recruiting and application review activities
o Applicant pool. All persons who areactually evaluated forselection.
o Individuals selected
The main approaches to attracting applicants:
o Walk-ins
o Employee referrals
o Advertising
o Websites
o Professional associations
o Educational associations
o Professional agencies
o E-recruitment (general recruitment agents/ companies own sites)
o Word-of-mouth
Headhunters.Employment agencies that focus their effortson executive, managerial, and professional
positions. Theexecutive search firms are split into two groups
o Contingency firms that charge a fee only after a candidate has been hired by a client company.
o Retainer firms that charge a client a set fee whether or not the contracted search is successful.
Advantages and Disadvantages of Internal and External Recruiting Sources
Typical Recruiting Responsibilities
Job posting and bidding. A system in which theemployer provides noticesof job openings withinthe
organization andemployees respond byapplying for specificopenings.
o What to include:
o INFORMATION ON THE CANDIDATE
Years of experience
Three to five key characteristics of the successful candidate
Special useful work capabilities
o INFORMATION ON THE JOB AND PROCESS OF APPLICATION
Job title and responsibilities
Geographic/flexible location of job
Starting pay range
Acceptance of online applications
Where/how to submit application or rsum details
Closing date of application
o INFORMATION ON THE ORGANIZATION
Organizational values and culture
Primary business capabilities
Unique characteristics and recognition
Employee-Focused Recruiting.
o Current-Employee Referrals. A reliable source of people to fill vacancies is composed of
acquaintances, friends, and family members of current employees.
o Rerecruiting of Former Employees and Applicants. Former employees and applicants represent
another source for recruitment. Both groups offer a time-saving advantage because something is
already known about them. Seeking them out as candidates is known as rerecruiting because they
were successfully recruited previously.
General Recruiting Process Metrics

o Costs and benefits associated with recruitment should be analyzed. A costbenefit analysis of
recruiting efforts may include both direct costs (advertising, recruiters salaries, travel, agency fees,
etc.) and indirect costs (involvement of operating managers, public relations, image, etc.).
o Costbenefit information on each recruiting source can be calculated.
o Comparing the length of time that applicants hired from each source stay in the organization
with the cost of hiring from that source also offers a useful perspective.
o Yield ratio. Comparison of the number of applicants at one stage of the recruiting process with
the number at the next stage.
Sample Yield Ratio
o Selection rate. Percentage hired from a given group of candidates.It equals the number hired divided
by the number of applicants; for example, a rate of 30% indicates that 3 out of 10 applicants were hired.
o Acceptance rate. Percent of applicants hired divided by total number of applicants offered jobs.
Increasing Recruiting Effectiveness

o Evaluation of recruiting should be used to make recruiting activities more effective. Some common
activities that are reviewed during evaluation are:
Rsum mininga software approach to getting the best rsums for a fit from a big
database.
Applicant trackingan approach that takes an applicant all the way from a job listing to
performance appraisal results
Employer career websitea convenient recruiting place on an employers website
where applicants can see what jobs are available and apply
Internal mobilitya system that tracks prospects in the company and matches them with
jobs as they come open
Realistic job previewsa process that persons can use to get details on the employer
and the jobs
Responsive recruitmentwhereby applicants receive timely responses

SELECTION.The process by which managers and others use specific instruments to choose from a pool of
applicants a person or persons most likely to succeed in the job(s), given management goals and legal
requirements.
o Underlying the process of selection and the choice of techniques are two key principles:
o Individual differences: Attracting a wide choice of applicants will be of little use unless there is
a way of measuring how people differ, i.e. intelligence, attitudes, social skills, psychological and
physical characteristics, experience etc.
o Prediction: A recognition of the way in which people differ must be extended to a prediction of
performance in the workplace.
o Shortlisting: most suitable candidates selected
o Selection Interviews
o Information elicited interviews have a specific focus, i.e. facts, subjective information,
underlying attitudes.
o Structure ranging from the completely structured to the unstructured. A compromise between
the two enables the interviewer to maintain control yet allowing the interviewee free expression.
o Order and involvement the need to obtain different kinds of information may mean the
involvement of more than one interviewer. Applicants may be interviewed serially or in a panel.
o Presentation or Demonstration: looking for different skills as well as the ideas of the candidate
o In-Tray Exercises: activity based around what the applicant will be doing, e.g. writing a letter to a
disgruntled customer
o Psychometric Testing
o Personality research has lent support to the use of sophisticated selection techniques such as
psychometric tests that have a good record of reliability and validity.
o Ability tests: these focus on mental abilities (verbal/numerical) and physical skills testing.
Right/wrong answers allow applicants to be placed in ranked order.
o Inventories: self-report questionnaires indicating traits, intelligence, values, interests, attitudes
and preferences. No right/wrong answers but a range of choices between possible answers.
o On-line testing, or e-assessment, is also used for selection and other HR purposes.
o Benefits:
Online testing enables organizations to test at anytime and anywhere in the world.
It enables the quick processing of applicants.
o Drawback:
Loss of control over the administration of the tests anyone can be called on to help
HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT: BENEFITS AND COMPENSATION
EMPLOYEE BENEFITS - indirect and non-cash compensation paid to an employee, some of which are
mandated by law (such as social security and workers compensation), others vary from firm to firm or industry
to industry; hidden paychecks .
Basic Benefits for Employees covered by the Philippine Labor Code:

Government Service Insurance System (GSIS) under the Commonwealth Act 186
o Aimed at promoting the efficiency and welfare of the employees of the Government of the
Philippines, administers the laws that grant to its members social security and insurance
benefits.
o Created to provide government employees and their families with protection against disability,
sickness, old age, and death.
Social Security Systems (SSS)
o Republic Act No. 8282, otherwise known as the Social Security Act of 1997
o Aimed at providing protection for the private employee who is an SSS member against socially
recognized hazard conditions, such as sickness, disability, maternity, old age and death, or
other such contingencies not stated but resulted in loss of income or results to a financial
burden.
National Health Insurance Program (NHIP) thru Philippine Health Insurance Corporation
(Philhealth).
o Designed to provide employees with a practical means of paying for adequate medical care in
the Philippines.
o The employee and his/her employer(s) are to contribute for the medical insurance of the said
employee in accordance to the Republic Act 7835 on Medicare Program.
o Monthly employee contribution depends on the employee's actual monthly salary. The
contribution schedule is provided by Philhealth.
Home Development and Mutual Fund (HDMF) thru Pagtutulungan sa Kinabukasan: Ikaw,
Bangko, Industria at Gobyerno (Pag-IBIG) Fund
o A provident savings system providing housing loans to private and Philippine government
employees, and to self-employed persons who elect to join the Fund.

o The employer(s) is required to contribute per month not less than P100.00 to the employee's
Home Development and Mutual Fund. In accordance to the periodic remittance schedule
provided by HDMF, the employer(s) will remit this contribution, in addition to that of the
employee's, which is to be deducted from his/her payroll.
The 13th Month Pay

o As mandated by the Presidential Decree No. 851, the employee shall receive a bonus salary
equivalent to one (1) month, regardless of the nature of his/her employment, not later than
December 24 of every year.
Leave Incentives
o 5 days service incentive leave with pay for employee who has rendered at least 1 year of
service. (Article 95 of the Labor Code, as amended)
o Maternity Leave of 60 days for normal delivery and 78 days for caesarian section delivery
for every pregnant employee in the private sector, whether married or unmarried. A female
employee should be an SSS/GSIS member and must have paid at least 3 monthly contributions
within the 12-month period. (RA 1161, as amended by RA 8282)
o 7 days Paternity Leave for all married male employees in the private sector regardless of
status of employment. The purpose of this benefit is to allow the husband to lend support to his
wife during her period of recovery and/or in nursing her newborn child. (RA 8187)
o Special Leave for Women of 2 months with full pay who have rendered continuous aggregate
employment service of 6 months for the last 12 months, following surgery caused by
gynecological disorders. (RA 9710 Magna Carta for Women)
o Solo Parent Leave: Seven (7) working days parental leave for solo parents certified by the
DSWD
o Calamity Leave: Two (2) days leave for employees who were affected by flood, fire and
typhoon (mustbe supported by a Government proclamation)
Meal and Rest Periods
o Under Article 83, the employee is provided a one-hour employee benefit for regular meals,
when working on an eight (8 hour) stretch. Employees are also provided adequate rest periods
in the morning and afternoon which shall be counted as hours worked.
Other benefits offered at many organizations

Wellness programs
o Wellness initiatives into the work place such as disease management, health risk assessments,
fitness programs (Zumba, gym privileges, etc.), On-site clinics and pharmacies
o Advantage: Improve productivity/reduce absenteeism/presenteeism
o Disadvantage: Difficult to measure the Return on Investment (ROI) of wellness programs
Other Health Insurance Options
o Health Maintenance Organizations (HMOs)
an organization that provides or arranges managed care for health insurance, self-
funded health care benefit plans, individuals, and other entities and acts as a liaison with
health care providers (hospitals, doctors, dentists, etc.) on a prepaid basis.
Examples of HMOs in the Philippines: Maxicare, Intellicare, Blue Cross, Medicard, etc.
Professional and Career Development Benefits
o A variety of benefits designed to help employees advance in their careers. These types of
benefits provide a dual advantageemployees feel the organization cares about their
professional development, and the organization gains a richer, better-prepared workforce.
o Examples are: Professional memberships, On-site and off-site Professional development
opportunities (Training and seminar, continuing education), Cross-training to develop skills not
directly related to the job, Mentoring program, Career counseling
COMPENSATION - any reward or payment given to a person for services performed. It includes, but is not
limited to, direct or indirect financial rewards; narrowly defined, this is the wage or salary received from an
organization for the work performed.
Salary vs. Wage
o Wage is the amount of money the employee receives from one pay period to the next, as the
amount paid is directly dependent on the amount of hours worked
o Salary refers to an agreed and fixed annual amount of money the employee receives
regardless of the hours worked.
o Wage rate in the Philippines is set by the Department of Labor and Employment
Varies according to geographical region and industry sector.
Basic forms
o Basic compensation that an employee receives, usually as a wage or salary, is called base pay.
Base pay categories
Hourly pay is the most common means of payment based on time; employees
who are paid hourly are said to receive wages, whichare payments directly
calculated on the amount of time worked.
o In contrast, people who are paid salaries receive payments that are
consistent from period to period.
Variable pay
o Employee compensation that changes as compared to salary which is
paid in equal proportions throughout the year.
o Used generally to recognize and reward employee contribution toward
company productivity, profitability, team work, safety, quality, or some
other metric deemed important.
o Given when the employee has gone above and beyond his or her job
description to contribute to organization success.
o Formats include profit sharing, bonuses, holiday bonus, cash, and goods
and services such as gift certificates or a company-paid trip.
HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT: TRAINING AND DEVELOPMENT
Training.Process wherebypeople acquire capabilities toperform jobs.
TYPES OF TRAINING
o Required and regular training: Complies with various mandated legal requirements (e.g., OSHA) and
is given to all employees (e.g., new employee orientation)
o Job/technical training: Enables employees to perform their jobs well (e.g., product knowledge,
technical processes and procedures, customer relations)
o Developmental and career training: Provides longer-term focus to enhance individual and
organizational capabilities for the future (e.g., business practices, executive development,
organizational change, leadership)
o Interpersonal and problem-solving training: Addresses both operational and interpersonal problems
and seeks to improve organizational working relationships (e.g., interpersonal communication,
managerial/supervisory skills, conflict resolution)
Training Needs Analysis (TNA)

First step in the process of training wherein it is engaged in to discover the training and development
needs of people so that they can carry out their job effectively and efficiently, and also to continue to
grow and develop their careers.
Used to identify whether training is the correct intervention for a performance problem.
When it is not conducted or conducted improperly, a training program may fail to clearly meet the
performance need, thus resulting in diminishing returns on what is likely a costly investment.
Training might be appropriate when the performance issue is a cant do issue:
o Poor performance (resulting from a knowledge or skill deficiency).
o Lack of basic skills (reading, writing, technology, math skills).
o Legislation or policies requiring new knowledge or skills.
o New technology.
o A customer request for new products or services.
o Higher performance standards.
o New jobs.
Training is not the best intervention when the performance issue is a result of:
o Recruiting, selection or compensation problems.
o Policies and procedures issues.
o A lack of coaching and feedback.
o Insufficient tools, equipment or resources.
o Physical setting problems.
o A lack of motivation (job-person fit; person-org fit); a wont do issue.
TNA assessment involves:
o Organizational Analysis
To align training with business strategy and to ensure there are resources and
managerial support for training.
o Job/Task Analysis
To identify the important work-related tasks and knowledge, skills, behaviors, abilities
(KSBAs); determine if the content and activities are consistent with trainee on-the-job
experience; and to develop measurable and relevant content, objectives and methods.
o Person Analysis
To ensure that trainees have the basic skills, motivation, prerequisite skills or
confidence.
TNA Data-gathering Methods
o Observation: Observe a learner complete a job task. Use a checklist or other rating sheet to
identify specific tasks. Can also be used for a learner analysis to observe if the learner has
basic skills.
o Questionnaire: A series of questions that can be administered during an organization, task or
learner analysis. Best when assessing ability (cognitive or intellectual) or attitudes.
o Interviews: One-on-one interviews to assess attitudes or reactions to a situation. Can also be
used to follow-up on questionnaire items that require additional explanation.
o Focus groups: An interview with more than one person. Best to use when the feedback and
interaction from multiple persons is needed to understand an issue.
o Document review: Reviewing documents such as personnel, training and performance records
and other files that may be useful to understand the issue. Particularly useful for assessing
learner readiness.
HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT: PERFORMANCE MANAGEMENT AND

EVALUATION/APPRAISAL
Performance management - an ongoing process of communication between a supervisor and an employee

that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. The
communication process includes clarifying expectations, setting objectives, identifying goals, providing
feedback, and reviewing results.
Possible Outcomes from Effective Performance Management
o Clarifying job responsibilities and expectations.
o Enhancing individual and group productivity.
o Developing employee capabilities to their fullest extent through effective feedback and
coaching.
o Driving behavior to align with the organizations core values, goals and strategy.
o Providing a basis for making operational human capital decisions (e.g., pay).
o Improving communication between employees and managers.
The cycle includes Planning, Checking-In, and Review.
o To begin the planning process, you and your employee review overall expectations, which
includes collaborating on the development of performance objectives. Individual development
goals are also updated. You then develop a performance plan that directs the employee's
efforts toward achieving specific results to support organizational excellence and employee
success.
Performance Expectations = Results + Actions & Behaviors
Results (The goods and services produced by an employee often measured by
objectives or standards)
Actions & Behaviors (The methods and means used to make a product and the
behaviors and values demonstrated during the process. Actions and Behaviors
can be measured through performance dimensions.)
Written, verifiable mutually understood performance expectations:
Serve as an objective basis for communicating about performance
Enable the employee to differentiate between acceptable and unacceptable
results
Increase job satisfaction because employees know when tasks are performed
well
Inform new employees of your expectations about job performance
Encourage an open and trusting relationship with employees
o Goals and objectives are discussed throughout the year, during check-in meetings. This
provides a framework to ensure employees achieve results through coaching and mutual
feedback.

o At the end of the performance period, you review the employee's performance against
expected objectives, as well as the means used and behaviors demonstrated in achieving those
objectives. Together, you establish new objectives for the next performance period.
PERFORMANCE EVALUATION/APPRAISAL
The process by which a manager or consultant (1) examines and evaluates an employee's work
behavior by comparing it with preset standards, (2) documents the results of the comparison, and (3)
uses the results to provide feedback to the employee to show where improvements are needed and
why; employed to determine who needs what training, and who will be promoted, demoted, retained, or
fired.
Sources of Information
o Supervisors (most common)
the employees responsibilities and actual performance is rated by the superior.
o Co-Workers (Peers)
Peer nominations: (Identifying those with highest and lowest KSAs)
*Peer ratings: For providing feedback
Peer rankings: For discriminating highest to lowest performance on various dimensions
Friendship bias
Leniency
High level of accuracy
Best used as a source of feedback
o Self: gives a chance to the employee to look at his/her strengths and weaknesses, his
achievements, and judge his own performance; Good preparation for performance appraisal
meeting (conducive for dialogue)
o Subordinates
Gives a chance to judge the employee on the parameters like communication and
motivating abilities, superiors ability to delegate the work, leadership qualities etc.
Biases (e.g., # of subordinates, type of job, expected evaluation from supervisor)
Best if ratings are anonymous -- if not, leniency in ratings occur
Can add information above and beyond other sources
o Clients
Good source of feedback
Negativity bias
Customer ratings on the web (usage/role, accuracy, verification issues)
Types of Evaluation/Appraisal Methods
o Subjective Appraisal Methods
Ranking : 1st _____ ; 2nd_____ ; 3rd _____
Pair Comparison: Employee-1 _____ versus Employee-2 _____
Narrative essays
Unstructured (e.g., content, length)
Affected by the writing ability of supervisors and time availability
Cannot validate selection devices (no numbers)
Graphic Rating Scale (most common)
_____ _____ _____ _____ _____
Very Average Excellent
Poor
Behavioral Methods (use of critical incidents; examples of good and poor job behavior
collected by job experts over time)
Rate the frequency in which critical incidents are performed by employees
Sum the ratings for a total performance score
E.g. 1) Assists others in job duties.
_____ _____ _____ _____ _____
Never Usually Always
o Objective Appraisal Methods
Production Data (e.g., sales volume, units produced)
When observation occurs (timing), and how data is collected
Fairness and relevancy issue
Potential limited variability
Limitations regarding supervisory personnel
Personnel Data
Absenteeism (excused versus unexcused)
Tardiness
Accidents (fault issue)
o 360-degree appraisal or multi-source appraisal is an appraisal or performance assessment
tool that incorporates feedback from all who observe and are affected by the performance of a
candidate; usually, this tool is used for employees at middle and senior level.
Four integral components (see Sources of information): Self appraisal, Superiors
appraisal, Subordinates appraisal and Peer appraisal.
o 720-Degree appraisal by Rick Gal
Focuses on what matter most, which is the customer or investor perception of their work
360-degree appraisal method is practiced twice.
When the 360-Degree appraisal is done, then the performance of the employee
is evaluated and having a good feedback mechanism, the boss sits down with
the employee again a second time and gives him feedback and tips on achieving
the set targets.
Basic Performance Appraisal Process
o Conduct a Job Analysis (e.g., specify tasks and KSAs)
o Develop Performance Standards (e.g., define what is superior, acceptable, and poor job
performance)
o Develop or Choose a Performance Appraisal Approach
Performance Appraisal Training: Best Practices
o Frequent observation of performance and feedback (both positive and negative)
o Recordkeeping (ongoing if possible)
o Encourage self-assessment of employees
o Focus on behaviors (not traits)
o Use specific behavioral criteria and standards
o Set goals for employees (specific and challenging ones)
o Focus on how to observe job behaviors and provide incentives to do so
HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT: REWARDS AND INCENTIVES
Financial Reward Practices.

Performance-Based Rewards.
o Individual Rewards. Many employees receive individual bonuses or awards for accomplishing a
specific task or exceeding annual performance goals.
o Real estate agents and other salespeople typically earn commissionsbased on sales volume.
o Piece-rate systems reward employees according to the number of units produced or serviced.
o Team Rewards. Shift of focus from individuals to teams.
o Consequently, employees in these companies are finding that a larger part of their total
paycheck is determined by team performance.
o Rewards teams for higher output and applies financial penalties if their output falls below
satisfactory quality.
o Gainsharing plans are a form of team-based compensation that calculates bonusesfrom the
work units cost savings and productivity improvement; tend to improveteam dynamics,
knowledge sharing, and pay satisfaction. They also create a reasonablystrong link between
effort and performance because much of the cost reductionand labor efficiency is within the
teams control.
o Organizational Rewards. Some firms reward all staff members for achieving challenging sales goals
or other indicators of organizational performance. These rewards are usually financial bonuses, but a
few firms reward employees with travel.
o Employee stock ownership plans (ESOPs) encourage employees to buy company stock,
usually at a discounted price or through a no-interest loan. The financial incentive occurs as
dividends and market appreciation of the stock.
o Stock option. A reward system that gives employees the right to purchase company stock at a
future date at a predetermined price.
o Profit-sharing plan. A reward system that pays bonuses to employees on the basis of the
previous years level of corporate profits.
Improving Reward Effectiveness.
o Link Rewards to Performance.
o Behaviour modification theory and expectancy theory both recommend that employees with
better performance should be rewarded more than those with poorer performance.
o Apply rewards soon after the performance occurs, and in a large-enoughdose (such as a bonus
rather than a pay increase), so that employees experience positive emotions when they receive
the reward.
o Ensure That Rewards Are Relevant
o Companies need to align rewards with performance within the employees control. The more
employees see a line of sight between their daily actions and the reward, the more they are
motivated to improve performance.
Also need to correct for situational factors. Salespeople in one region may have higher
sales because the economy is stronger there than elsewhere, so sales bonuses need to
be adjusted for such economic factors.
o Use Team Rewards for Interdependent Jobs.
o Team rewards should be used rather than individual rewards when employees work in highly
interdependent jobs because it is difficult to measure individual performance in these situations.
o Also encourage cooperation, which is more important when work is highly interdependent.
o Ensure That Rewards Are Valued
o It seems obvious that rewards work best when they are valued. Yet companies sometimes
make false assumptions about what employees want, with unfortunate consequences.
o The solution, of course, is to ask employees what they value.
TRENDS AND ISSUES IN INDUSTRIAL-ORGANIZATIONAL PSYCHOLOGY

Corporate Social Responsibility (CSR): Firms have responsibilities to societies including economic,
legal, ethical and discretionary (or philanthropic).
o Key Issues
Labour rights: child labour, forced labour, right to organise, safety and health
Environmental conditions: water & air emissions, climate change
Human rights: cooperation with paramilitary forces, complicity in extra-judicial killings
Poverty Alleviation: job creation, public revenues, skills and technology (through
scholarships and training)
o CSR Management: Plan, Do, Check, Act method

o Corporate Family Responsibility (CFR): Measure of how well a business supports the
integration of work and family life of its employees.
CFR has come to be regarded as internal Corporate Social Responsibility (CSR)
because it takes care of the families of those who work for the company, and families
are the basic units of society.
Three dimensions of CFR are company policies, supervisor support, and
organizational culture.
Company policies that facilitate work-life balance include options of time
flexibility such as telecommuting, flexible hours, part time hours/job sharing, and
short time/compressed week; also provide professional support services and
family benefits that go beyond economic compensation, including personal and
professional counseling, seminars on work-family reconciliation, in-company
childcare centers, leaves of absence to care for family members, and
maternity/paternity leaves beyond the legal minimum.
Supervisor support lies in managers who know how to listen to professional
and personal problems, build trust to speak and effectively resolve conflicts,
organize the department so that both company and employees benefit, and are
good role models.
Organizational culture refers to how taking advantage of family-related/flexibility
policies is generally perceived within the organization, affecting the employees
inclination to use them. It answers the question of whether or not doing more
overtime is perceived as a step towards career advancement.
Globalization and the Virtual Workplace
Gone are the days where an organizations primary competition was the rival across
town; competitors now exist at the global level. When larger organizations want an
accurate representatio
o Internet-Based Recruitment and Selection
Decreasing likelihood for jobseekers to search for job openings in the newspaper and
travel to organizations in person to complete paper-and-pencil applications.
Many organizations find it in their best interest to enhance their online presence to
attract desired applicants.
Once attracted, job seekers can use the Internet to complete job applications, upload
their resums, and participate in virtual job tryouts.
Organizations transitioning to a greater online presence may want to consider the
implications of that change.
For example, the composition of the selection pool may change if younger adults
are more likely than older adults to possess the access and technological skills
needed for online applications.
Increased Coaching in the Workplace
o Companies are hiring executive coaches to assist in employee development at a growing rate
(DBM, 2012). Large consulting firm DBM projected in 2012 that organizations will use coaches
to (a) help executives achieve higher performance, (b) groom high-potential employees, and (c)
enhance team effectiveness. Moreover, a study conducted by the International Coaching
Federation Global Coaching (2012) found that there is an opportunity to increase the awareness
of coaching benefits and to develop credible data that shows ROI/ROE for hiring an executive
coach. Future issues that need to be explored include figuring out whether coaching should be
regulated, in addition to identifying (and potentially stopping) untrained individuals who call
themselves coaches.
Facilitating WorkLife Merge
o The term worklife merge coined by Facebook executive Emily White is used to describe a life
where work and personal activities are so intertwined that it becomes impossible to neatly
compartmentalize the two.
o Different from work-life balance because the balance approach tends to assume that workthe
hard grindis the opposite of lifea time of pleasure.
o Employees with worklife merge tend to be individuals who enjoy their work and want to
customize it to best fit their lifestyles.
Example: a working parent who wants who wants to fit work responsibilities around
family time, perhaps finishing up the days work after the children have gone to bed.

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INDUSTRIAL PSYCHOLOGY

FINAL EXAMINATION REVIEWER

ORGANIZATIONAL BEHAVIOUR, STRUCTURES AND SYSTEMS

o Conscientiousness, agreeableness, and low neuroticism (high emotional stability) : getting

SELF-CONCEPT.An individuals self-beliefsand self-evaluations.

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o Values across culture

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DRIVES VS. NEEDS

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Industrial Psychology Reviwer @ercmateo2015 Page 6 of 24

Industrial Psychology Reviwer @ercmateo2015 Page 8 of 24

Subjective expected utility. The probability (expectation)of satisfaction(utility) resulting fromchoosing a

SIX STAGES IN THE RATIONAL CHOICE DECISION PROCESS.

Four benefits of employee involvement in decision making

The Creative Process Model

Characteristics of Creative People

Empowerment.A psychological conceptin which peopleexperience moreself-determination,meaning,

Industrial Psychology Reviwer @ercmateo2015 Page 11 of 24

POWER.The capacity of aperson, team, or organizationto influenceothers.

INFLUENCE.Any behavior that attemptsto alter someonesattitudes orbehavior.

o Consequences of Hard and Soft Influence Tactics

Industrial Psychology Reviwer @ercmateo2015 Page 12 of 24

TEAM DYNAMICS: Check your previous hand-out

WORKLIFE BALANCE AND WELL-BEING IN THE WORKPLACE

HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT: RECRUITMENT AND SELECTION

Labor markets. The external sources fromwhich organizations attractemployees.

Advantages and Disadvantages of Internal and External Recruiting Sources

Typical Recruiting Responsibilities

General Recruiting Process Metrics

Increasing Recruiting Effectiveness

Industrial Psychology Reviwer @ercmateo2015 Page 16 of 24

HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT: BENEFITS AND COMPENSATION

Basic Benefits for Employees covered by the Philippine Labor Code:

Industrial Psychology Reviwer @ercmateo2015 Page 17 of 24

The 13th Month Pay

Other benefits offered at many organizations

HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT: TRAINING AND DEVELOPMENT

Training.Process wherebypeople acquire capabilities toperform jobs.

Training Needs Analysis (TNA)

HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT: PERFORMANCE MANAGEMENT AND

Performance management - an ongoing process of communication between a supervisor and an employee

HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT: REWARDS AND INCENTIVES

Financial Reward Practices.

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TRENDS AND ISSUES IN INDUSTRIAL-ORGANIZATIONAL PSYCHOLOGY

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