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6/9/2015 1 Introducing INDUSTRIAL / ORGANIZATIONAL PSYCHOLOGY Gerald B. Peñaranda, M.Sc., CSIOP Certified Industrial/Organizational Psychologist HR Consultant Faculty: De La Salle University-Manila [email protected] IO PSYCH/HUMAREM Why I/O Psychology? People spend more time at their jobs than any other activity in life. If people are happy and productive at their work, this can have a spill-over effect on their lives I/O psychologists can also improve the quality of life of everyone in society by increasing employee effectiveness, which reduces the cost of goods sold by improving product quality The Two Divisions in I/O Psych. Industrial Psychology (the original name) tends to make a management perspective of organizational efficiency through the appropriate use of human resources. It is concerned with issues of efficient job design, employee selection and training, and performance appraisal. It may help you to remember Industrial Psychology as the “practical” side of I/O The Two Divisions in I/O Psych. Organizational Psychology developed from the human relations movement in organizations and focuses more on the individual employee. Examples are employee attitudes, employee behavior, job stress, and supervisory practices. It may help you to remember Organizational Psychology as the “soft” side of I/O I/O Psychology is… An applied field of psychology that is concerned with the development and application of scientific principles to the workplace. “What factors can motivate employees to perform well?” Objective: To help organizations function more effectively. Major I/O Fields: 1. PERSONNEL PSYCHOLOGY: Includes such areas as analysing jobs, recruiting applicants, selecting employees, determining salary levels, training employees, and evaluating employee performance 2. ORGANIZATIONAL PSYCHOLOGY: Concerned with the issues of leadership, job satisfaction, employee motivation, organizational communication, conflict management, organizational change, and group processes within an organization

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  • 6/9/2015




    Gerald B. Pearanda, M.Sc., CSIOPCertified Industrial/Organizational Psychologist

    HR Consultant Faculty: De La Salle University-Manila

    [email protected]


    Why I/O Psychology?

    People spend more time at their jobs than any other activity in life. If people are happy and productive at their work, this can have a spill-over effect on their lives

    I/O psychologists can also improve the quality of life of everyone in society by increasing employee effectiveness, which reduces the cost of goods sold by improving product quality

    The Two Divisions in I/O Psych.

    Industrial Psychology (the original name) tends to make a management perspective of organizational efficiency through the appropriate use of human resources. It is concerned with issues of efficient job design, employee selection and training, and performance appraisal.

    It may help you to remember Industrial Psychology as the practical side of I/O

    The Two Divisions in I/O Psych.

    Organizational Psychology developed from the human relations movement in organizations and focuses more on the individual employee. Examples are employee attitudes, employee behavior, job stress, and supervisory practices.

    It may help you to remember Organizational Psychology as the soft side of I/O

    I/O Psychology is

    An applied field of

    psychology that is

    concerned with the

    development and

    application of

    scientific principles to

    the workplace.

    What factors can motivate employees to perform


    Objective: To help organizations function more effectively.

    Major I/O Fields:

    1. PERSONNEL PSYCHOLOGY: Includes such areas as analysing jobs, recruiting applicants, selecting employees, determining salary levels, training employees, and evaluating employee performance

    2. ORGANIZATIONAL PSYCHOLOGY: Concerned with the issues of leadership, job satisfaction, employee motivation, organizational communication, conflict management, organizational change, and group processes within an organization

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    Major I/O Fields:

    3. HUMAN FACTORS/ ERGONOMICS: The area of human factors concentrate on workplace design, human-machine interaction, ergonomics, and physical fatigue and stress.

    These psychologists frequently work

    with engineers and other technical

    professionals to make the workplace

    safer and more efficient.

    Scientist-Practitioner Model

    SCIENCE: I/O psychologists pose questions to guide their investigations and then use the scientific method to obtain answers. In this respect, I/O psychology is an academic discipline

    PRACTICE: The professional side is concerned with the application of knowledge to real problems in the world of work. I/O psychologists can use research findings to hire better employees, reduce absenteeism, improve communication, increase job satisfaction, and solve countless other problems

    I/O Psychology as a Profession

    I/O Psychologists belong to professional/scientific organizations. In the U.S. they have the S.I.O.P. with about 6,000 members. In the Philippines, the PAP provides a certification program for I/O practitioners.

    I/O Psychology as a Science

    Often, research is conducted in specific organizations to solve a particular problem while others focuses on understanding some organizational phenomenon.

    Examples of scientific journals: Journal of Applied Psychology, Journal of Occupational and Organizational Psychology, Personnel Psychology, Academy of Management Journal, Journal of Occupational Health Psychology

    Founders of the Field

    Considered by many as "the father of industrial psychology, Hugo Mnsterberg (1863-1916) was particularly interested in the selection of employees and the use of new psychological tests.

    In 1913 his book Psychology and Industrial Efficiency addressed such things as personnel selection and equipment design

    Two experimental psychologists are credited for being the main founders of the field:

    Founders of the Field

    Walter Dill Scott (1869-1955) pioneered the use of psychological principles to produce more effective advertisements. His book, The Theory and Practice of Advertising (1903) was the first of its kind

    Two experimental psychologists are credited for being the main founders of the field:

    In WW1, he classified and placed enlistees, conducted performance evaluations of officers, and developed and prepared job duties and qualifications for over 500 jobs. He received the Distinguished Service Medal from U.S. Army.

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    Pioneers of I/OJames McKeen Cattell (1860-1944). He created the Psychological Corporation in 1921, still in existence today. The main purpose was to advance psychology and promote its usefulness to industry. It also served as a place for companies to get reference checks on prospective psychologists.

    Pioneers of I/O

    Walter Bingham. He started the Division of Applied Psychology for Carnegie Institute of Technology the first academic program in industrial psychology (Krumm, 2001). He headed the Personal Research Federation and directed The Psychological Corporation.

    Pioneers of I/O

    Lilian (1876-1972) and Frank (1868-1924) Gilbreth. A wife and husband team who combined

    engineering and psychology to study

    efficient ways of performing tasks.

    Their best contribution was the time

    and motion study. Lilian is one of the

    first working female engineers

    holding a Ph.D., she is held to be the

    first true industrial/organizational


    Pioneers of I/ORobert Mearns Yerkes (1876-1956). During WW1, Robert Yerkes and others offered their

    services to the Army. Their newly invented

    psychological tests led to the identification of

    Army Alpha and Army Beta.

    Pioneers of I/O

    Mary Parker Follett (1866-1933). A social philosopher, she advocated people-oriented

    organizations. Her writings

    focused on groups, as opposed

    to individuals, in the

    organization. Thus, Follets

    theory was a forerunner of

    todays teamwork concept and

    group cohesiveness.

    Pioneers of I/O

    Frederick Winslow

    Taylor (1856-1915). An engineer who studied

    employee productivity, he

    developed an approach to

    handling production

    workers in factories.

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    Pioneers of I/OElton Mayo (18801949). His Human Relations approach countered scientific management. He recognized the "inadequacies of existing scientific management approaches" to industrial organizations, and underlined the importance of relationships among people who work for such organizations.

    The Hawthorne Studies

    A series of studies conducted for 10 years in

    Western Electric Company that ultimately led to

    the launching of the O of I/O. The

    investigation of the lighting level effects led to

    what is now known as the Hawthorne Effect,

    i.e. the increase in productivity really had nothing

    to do with the amount of light but because the

    employees were conscious that they were being


    Pioneers of I/O

    Kurt Zadek Lewin (1890-1947). In 1939, he led the first publication of an empirical study of the effects of leadership styles which initiated arguments for the use of participative management techniques. In 1945 he formed the Research Center for Group Dynamics at MIT to perform experiments in group behavior


    1. Competence: A psychologist only does work that he or she is competent to perform.

    2. Integrity. Psychologists are fair and honest in their professional dealings with others.

    3. Professional and Scientific Responsibility: Psychologists maintain a high standard of professional behavior.


    4. Respect for Peoples Rights and Dignity: Psychologists respect the rights of confidentiality and privacy of others.

    5. Concern for Others Welfare. Psychologists attempt to help others through their professional work.

    6. Social Responsibility: Psychologists have a responsibility to use their skills to benefit society.

    Research Methods in I/O Psychology

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    Research Methods in I/O Psychology


    1. Explain the major concepts of design.

    2. Describe the major types of designs and list their advantages and limitations.

    3. Discuss the types of reliability and validity?

    4. Explain how inferential statistics can be used to make conclusions about data.

    5. State the major principles of research ethics.

    What is research?

    The systematic study of phenomena according to scientific principles

    A formal process by which knowledge is produced and understood

    Goals of Science: It has been suggested that science has three goals: (1)

    Description, (2) Explanation, (3) Prediction

    DESCRIPTION: Describing the levels of productivity, numbers of employees who quit during the year, average levels of job satisfaction

    EXPLANATION: This is the statement of why events occur as they dowhy employees quit, why they are dissatisfied, and so forth

    PREDICTION: Researchers try to predict which employees will be productive, which ones are likely to quit, and which ones will be dissatisfied; data can be used in selecting applicants who can be better employees

    The Empirical Research Process

    1. What question or problem need to be answered?

    2. How do you design a study to answer a question?

    3. How do you measure the variables and collect the necessary data?

    4. How do you apply statistical procedures to analyse the data?

    5. How do you draw conclusions from analysing the data?


    Imagine that you are a practicing I/O psychologist working for a company. You are assigned the task of determining if a new training program is effective in producing better performance in employees. Employees are being trained in the use of a new computer system that is supposed to increase employee productivity. How would you go about finding out if the training works?

    The Research Question

    Every study begins with a research

    question which defines the purpose

    of the study. For I/O psychologists,

    the research question usually aims to

    address an immediate issue for the


    What causes people to like or dislike their jobs?

    Does level of pay affect how much people like their jobs?

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    Hypothesis. Rather than merely raising the question, the

    hypothesis is a theoretical answer.

    A hypothesis is the researchers best

    guess (or hunch) about what the results

    of a study will be.

    e.g. People who are fairly paid will like their jobs more than people who are not.

    The hypothesis is usually based on a

    theory, previous research, or logic.

    Research Design Concepts

    Variables. A variable is an attribute or characteristic of

    people or things that can vary (take on different values). Peoples abilities (e.g. intelligence), attitudes (e.g. job

    satisfaction), behavior (e.g. absence from work) and

    job performance (e.g. weekly sales) are examples of

    common variables in I/O research.

    Each subjects standing on each variable is quantified (converted to numbers) so that statistical methods can be applied.

    Independent Variables. Those that the researcher

    manipulate. They are assumed to be the cause of

    the dependent variables.

    Dependent Variables. Those that are assessed in

    response to the independent variables. It is most often

    the object of the researchers interest and is

    usually some aspect of behaviour

    Does a training program on the use of computer system increase employee productivity?

    The Research SettingLaboratory settings are artificial environments in which phenomena of interest do not normally occur, such as in a university. Disadvantages include external validity, or generalizability of results to organizations to real world.

    A field setting is one in which the phenomenon of interest

    occurs naturally, such as the

    assembly line of an automotive.

    Losing control of extraneous

    variables that are not of interest

    to the researcher (internal

    validity) is its disadvantage.


    Generalizability of results means that

    the conclusions of a study can be

    extended to other groups of people,

    organizations, settings, or situations.

    Findings for studies done laboratory setting might not be true for organizational settings

    Findings in one organization might not have the same results in other organizations

    The results of studies done in Western countries might not be applicable to the Philippines

    Control Control refers to procedures that

    allow researchers to rule out

    certain explanations for results

    other than the hypothesis.

    Holding constant or systematically varying the levels of one or more variable.

    Having a control group in experiments. A control group is a collection of people who receive a condition or manipulation different from the one of interest.

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    Random Assignment andRandom Selection

    The term random refers to a process that eliminates systematic influences on

    how subjects are treated in study.

    Random assignment occurs when people are assigned to various treatment conditions of levels of an independent

    variable in a non-systematic way. Every subject has an equal

    chance of being assigned to every condition.

    Random selection means choosing the subjects of the study by a non-systematic method: Every possible subject

    has an equal chance of being chosen as participant.

    Research Design

    An research design is the basic structure of the study. An

    experiment is a design in which there are one or more independent variables and one or more dependent variables, as well as random assignment of subjects.

    IV examples: length of daily work (in hours), pay

    categories (in local currency), availability or non-

    availability of training, setting or non-setting of job goals.

    DV examples: frequency of absences from work,

    satisfaction with the job, job performance, turnover

    Research Design

    Survey Designs use a series of questions compiled to study one or more variables of interest. This is one of the simplest and easiest to conduct.

    Cross-sectional survey design is one in which all the data were collected at a single point in time.

    Longitudinal survey design is when data are

    collected at more than one point in time.

    Research Design

    Observational Design happens when the researcher

    observes employees in their organizational settings.

    In obtrusive methods, the researcher might watch individual employees conducting their jobs for a period of time. Employees would know that the observer was conducting research.

    In unobtrusive methods, the subject of the study might be aware of researchers presence, but they would not know that they are being studied.

    Research Design

    Qualitative Studies offer an alternate to the highly

    quantitative approach of I/O psychologists. In pure form, the

    qualitative approach involves observing behavior in an

    organization and recording those observations in narrative form.

    Ethical Issues in Research

    Participants in psychological research are granted five rights that are specified in the code of ethics:

    1. Right to Informed Consent: to know the purpose and risks of the research, to decline or withdraw participation anytime without negative consequences

    2. Right to Privacy: participants limit to the amount of information they reveal about themselves

    2. Right to Confidentiality: Who will have access to research data? How will records be maintained? Will participants remain anonymous?

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    Ethical Issues in Research

    Participants in psychological research are granted five rights that are specified in the code of ethics:

    4. Right to Protection from Deception: Intentionally misleading a participant about the real purpose of the research can produce fake beliefs and assumptions. It should be used only as a last resort.

    5. Right to Debriefing: debriefing must answer the participants questions about the research, to remove any harmful effects brought on by the study, and to leave the participants with a sense of dignity.


    De La Salle UniversityIOPSYCH/HUMAREM

    Gerald B. Pearanda, M.Sc., CSIOPIndustrial-Organizational Psychologist

    HR [email protected]


    1. LIST the uses of job analysis information.

    2. DESCRIBE the sources and ways of collecting job analysis information

    3. DISCUSS the different job analysis methods.

    4. DESCRIBE the evidence for reliability and validity of job analysis methods.

    5. EXPLAIN how job evaluation is used to set salary levels for jobs.

    Job Analysis is a method for describing jobs and/or

    the human attributes necessary to perform them;

    gathering, analysing, and structuring information

    about a jobs components, characteristics, and


    3 elements that comprise a formal job analysis:

    1. The procedure must be systematic. The analyst needs to specify the procedures in advance.

    2. A job is broken into smaller units. We describe components of jobs rather than the overall job.

    3. The analysis results in some written product, either electronic or on paper.

    Job-Oriented Approach: Provides information

    about the nature of tasks done on the job.

    TASK: Completes report after arresting an accused

    CHARACTERISTIC: Uses pencils and pens.


    o Level of specificity answers the question: Should the job analysis break a job down into very minute, specific behaviours (e.g., tilts arm at a 90-degree angle or moves foot forward three inches), or should the job be analysed at a more general level (makes financial decisions, speaks to clients)

    o Informal requirements (such as picking mail, making coffee, or picking up the boss children from school) may need to be made formal to reduce potential confusion regarding who is responsible for the task

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    FIVE LEVELS OF SPECIFITY1. POSITION: A collection of duties that can be performed by

    a single individual.

    e.g. Patrol Officer, Desk Officer

    2. DUTY: A major component of a job.

    e.g. Enforce the law

    3. TASK: A complete piece of work that accomplishes some particular objective.

    e.g. Arrest suspects who violate the law.

    4. ACTIVITY: Individual parts that make up the task.

    e.g. Driving to a suspects house to perform an arrest.

    5. ELEMENT: Very specific actions to perform an activity.

    e.g. Place handcuffs on a suspect.

    Person-Oriented Approach: Provides a description

    of the characteristics, or KSAOs necessary for a

    person to successfully perform a particular job.

    Knowledge: what a person needs to know to do a particular job.

    Skill: what a person is able to do on the job.

    Ability: a persons aptitude or capability to do job tasks or learn to do job tasks.

    Other personal characteristics: anything relevant to the job that is not covered by the other three.

    Examples of KSAOs and Associated Tasks


    Knowledge of legal arrest procedures

    Arrest suspects

    Skill in using a firearm Practice shooting firearm on firing range

    Ability to communicate with others

    Mediate a dispute between two people to prevent violent incident

    Courage (as the personal characteristic)

    Enter dark alley to apprehend suspect.


    1. Verbal Comprehension

    The ability to understand what words mean and to readily comprehend what is read.

    2. Word fluency The ability to produce isolated words that fulfil specific symbolic or structural requirements (such as all words that begin with the letter b and have two vowels).

    3. Numerical The ability to make quick and accurate arithmetic computations such as adding and subtracting.

    4. Spatial Being able to perceive spatial patterns and to visualize how geometric shapes would look if transformed in shape or position.

    5. Memory Having good rote memory for paired words, symbols, lists of numbers, or other associated terms.

    6. Perceptualspeed

    The ability to perceive figures, identify similarities and differences, and carry out tasks involving visual perception.

    7. Inductive reasoning

    The ability to reason from specifics to general conclusions.

    Who provides the information?

    They actually do the job or spend time observing employees doing the job and translate these experiences into a job analysis.

    They are considered subject matter experts (SMEs) because they have detailed knowledge about the content and requirements of their own jobs or the jobs that they supervise.

    USE Description

    Career development Define KSAOs necessary for advancement

    Legal issues Show job relevance of KSAOs

    Performance appraisal Set criteria to evaluate performance

    Recruitment and selection of employees

    Delineate applicant characteristics to be used as basis for hiring

    Training Suggest areas for training

    Setting salaries Determine salary levels for jobs

    Efficiency/safety Design jobs for efficiency and safety

    Job classification Place similar jobs in groupings

    Job design Design content of jobs

    Planning Forecast future need for employees with specific KSAOs

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    Approaches to Collecting Job Analysis Information

    Job Analyst Performs the Job

    ADVANTAGES: o Provides context in which job is done.o Provides extensive detail about the job.

    DISADVANTAGESo Fails to show differences among jobs with

    same title. o Expensive and time consumingo Can take extensive training of analyst.o Can be dangerous to analyst.

    Approaches to Collecting Job Analysis Information


    ADVANTAGES: o Provides multiple perspectives on a job. o Can show differences among incumbents

    with same job.

    DISADVANTAGESo Time consuming as compared to

    questionnaires. o Fails to show context in which tasks are


    Approaches to Collecting Job Analysis Information

    Observe Employees Doing the Job

    ADVANTAGES: o Provides relatively objective view of the job. o Provides context in which job is done.

    DISADVANTAGESo Time-consumingo Employees might change their behavior

    because they know they are being observed.

    Approaches to Collecting Job Analysis Information


    ADVANTAGES: o Efficient and inexpensive.o Shows differences among incumbents in same job. o Easy to quantify and analyse statisticallyo Easy to compare jobs on common job dimensions.

    DISADVANTAGESo Ignores context in which job is doneo Limits respondents to question asked.o Requires knowledge of job to design questionnaireo Easy for job incumbents to distort to make their

    jobs seem more important.

    1. Job Components Inventory (JCI) Developed in Great Britain to address the need to

    match job requirements to worker characteristics (Banks, Jackson, Stafford, and Warr, 1983)


    1. Use of tools and equipment2. Perceptual and physical

    requirements3. Mathematics4. Communication5. Decision making and


    Examples of Frequently Needed Skills for Clerical Jobs


    Use of tools and equipment

    Use of pensUse of telephone

    Perceptual and physical requirements

    Selective attentionWrist/finger/hand speed

    Mathematics Use decimalsUse whole numbers

    Decision-making and responsibility

    Decide on sequencing of workDecide on standards of work

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    2. Functional Job Analysis (FJA)

    Uses both observation and interviews to provide a description of a job and scores on several dimensions concerning the job and potential workers.

    O*NET ( is a computer-based resource for job related information on approximately 1,100 groups of jobs sharing common characteristics, a very extensive undertaking.

    3. Position Analysis Questionnaire (PAQ) This questionnaire (McCormick, Jeanneret, & Mecham,

    1972) contains 189 items dealing with the task requirement or elements of jobs.


    1. Information input2. Mediation processes3. Work output4. Interpersonal activities5. Work situation and job content6. Miscellaneous aspect

    Major Categories of the PAQ


    Information input Collecting or observing information

    Mediation processes Decision-making and information processing

    Work output Manipulating objects

    Interpersonal activities Communicating with people

    Work situation and job context

    Physical and psychological working conditions

    Miscellaneous aspects Work schedule

    4. Task Inventories A questionnaire that contains a list of specific tasks

    that might be done on a job that is being analysed and rating scales for each task


    1. Amount of time spent doing the task

    2. Criticality of the task for doing a good job

    3. Difficulty of learning the task4. Importance of the task

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    Gerald B. Pearanda, M.Sc., CSIOP

    [email protected]

    IOPSYCH./HUMAREM Recruitment, Selection, and Placement

    Recruitment: Attracting people with the right qualifications (as determined in the job analysis) to apply for the job

    Selection: Process of choosing individuals with qualifications needed to fill jobs

    Placement: Fitting a person to the right job


    When there are vacant jobs, companies can either do internal recruitment by promoting someone from within the organization, or do external recruitment by hiring someone from outside the organization

    Advantage of internal recruitment include enhancing employee morale and motivation

    Disadvantage of internal recruitment include running the risk of a stale workforce devoid of new ideas from new employees

    Recruitment Methods NEWSPAPER ADS: A common method for recruiting

    employees although considered least effective (SHRM, 2007)

    Applicants can be asked to call, apply in person, or send a resume directly or through a blind box

    ELECTRONIC MEDIA: The effectiveness of using television and radio , although promising, still needs empirical investigation

    Different TV channels and radio stations can be used to reach different types of audiences

    Recruitment Methods

    SITUATION-WANTED ADS: These ads are placed by the applicant rather than by organization providing encouraging results for people looking for jobs

    Advantageous to the organization because this method dont cause the organization any money

    POINT-OF-PURCHASE METHODS: Job vacancy notices are posted in places where customers or current employees can see them: store windows, bulletin boards, restaurant placemats, and the side of trucks

    It is targeted toward people who frequent the business

    Recruitment Methods

    CAMPUS RECRUITERS: Organizations send recruiters to college campuses to interview students for available positions

    VIRTUAL JOB FAIRS: College students and alumni can use the Web to visit many organizations at one time, and where they talk to or instant-message the recruiter

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    Recruitment Methods: Outside Recruiters

    Employment Agencies: Charges either the company or the applicant when the applicant takes the job (10 to 30% of the applicants first year salary)

    Executive Search Firms: Better known as head hunters, the jobs they represent tend to be higher-paying, non-entry level positions; they charge their fees to organizations rather than to applicants, fees charged tend to be 30% of applicants first year salary

    Public Employment Agencies: State and local employment agencies designed primarily to help the unemployed find work; of great value in filling blue collar and clerical positions

    Recruitment Methods: Employee Referrals

    In employee referral, current employees recommend family members and friends for specific job openings

    Rated by many HR professionals as the most effective recruitment method

    Can result to unintended discrimination if companies do not ensure that referral pool is representative of the ethnic and racial make-up of the qualified workforce

    Recruitment Methods: Direct Mail

    With direct-mail recruitment, an employer typically obtains a mailing list and sends help-wanted letters or brochures to people through the mail

    Especially useful for positions with specialized skills

    Recruitment Methods: Internet

    Employer-Based Websites: An organization lists job openings and provides information about itself and the minimum requirements needed to apply

    Applicants can upload their resumes, answer questions designed to screen out unqualified applicants, take employment tests that are typically scored instantly, and interviews are scheduled electronically

    Major employer-search websites are now using the .jobs domain to make the process easier

    Recruitment Methods: Internet

    An internet recruiter is a private company whose website lists job openings for hundreds of organizations and resumes for thousands of applicants

    Advantages include the cost because it is 10 times cheaper than advertising in major city newspapers, and it can reach more people

    Blogging is also used to more informally discuss an organizations career opportunities and corporate culture

    Recruitment Methods: Job Fairs

    Job fairs are designed to provide information in a personal fashion to as many applicants as possible

    Organizations can have booths at the same location, representatives hand out company literature and souvenirs

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    Recruitment Methods: Incentives

    Incentives are offered for employees to accept jobs with an organization

    It can take the form of financial signing bonus, employee discounts on company products and services, mortgage assistance, etc.

    A meeting between the job applicant and someone at the employing organization who will have input into the hiring decision.


    o STRUCTURED INTERVIEW: (1) the source of the questions is a job analysis (job-related questions), (2) all applicants are asked the same questions, (3) there is a standardized scoring key to evaluate each answer

    o UNSTRUCTURED INTERVIEW: (1) interviewers are free to ask anything they want, (2) not required to have consistency in what they ask of each applicant, and (3) may assign numbers of points at their own discretion

    o Highly structured interviews are more reliable and valid than interviews with less structure (Huffcutt & Arthur, 1994)

    Types of Employment Interviews

    Types of Employment Interviews


    o One-on-one interviews: One interviewer interviewing one applicant

    o Serial interviews: Involves a series of single interviews

    o Return interviews: The applicant is asked to return at a later time for another interview

    o Panel interviews: Multiple interviewers are asking the same questions and evaluating answers of the same applicant at the same time

    o Group interviews: Multiple applicants answering questions during the same interview

    Types of Employment Interviews


    o Face-to-face interviews: Both the interviewer and the applicant are in the same room

    o Telephone interviews: Often used to screen applicants but do not allow the use of visual cues

    o Videoconference interviews: Conducted at remote sites

    o Written interviews: The applicant answers a series of written questions and then sends the answers back

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    Advantages of Structured Interviews (+) More valid than unstructured interviews

    even over the phone

    (+) Can add predictive power to the use of cognitive ability tests

    (+) Viewed more favourably by the courts because it has job analysis as the basis

    (+) Results in less adverse impact because it taps on job knowledge, job skills, applied mental skills, and interpersonal skills

    (-) Is perceived by applicants to be more difficult than unstructured interviews

    (-) Applicants may feel they did not have the chance to tell the interviewer everything they wanted to

    Problems with Unstructured Interviews 1. Poor Intuitive Ability: Human intuition and

    judgment are inaccurate predictors of future employee success

    2. Lack of Job Relatedness: Information that is used to select employees must be job related if it is to have any chance of predicting future employee performance

    3. Primacy Effects: To prevent judgments from getting influenced by first impressions, interviewers need to rate the applicants response after each question

    4. Contrast Effects: The interview performance of one applicant may affect the interview score given to the next applicant. An applicant's performance is judged in relation to the performance of previous interviewees.

    Problems with Unstructured Interviews 5. Negative-Information Bias: Negative

    information apparently weighs more heavily than positive information

    6. Interviewer-Interviewee Similarity: Research suggest that an interviewee will receive a higher score if he is similar to the interviewer in terms of personality, attitude, gender, race

    7. Interviewee Appearance: Research indicate that, in general, physically attractive applicants receive higher scores

    8. Nonverbal Cues: The use of appropriate nonverbal communication is highly correlated with interview scores. Structured interviews are not as affected by nonverbal cues as are unstructured interviews

    Creating a Structured Interview

    Determining the KSAOs to Tap

    1. Conduct a thorough job analysis and write a detailed job description

    2. Determine the best way (i.e., interview, psychological tests, job samples, background checks, etc.) to measure an applicants ability to perform each of the tasks identified in the job analysis. Not every KSAO can and should be tapped during the interview.

    Creating a Structured Interview

    Creating Interview Questions

    1. Clarifiers: Allow the interviewer to clarify information in the resume, cover letter, and application, fill in gaps, and obtain other necessary information. Example: I noticed a three-year gap between two of your jobs. Could you tell me about that?

    2. Disqualifiers: Questions that must be answered a particular way or the applicant is disqualified. Example: Do you have a drivers license?

    3. Skill-Level Determiners: Tap an interviewers level of expertise. Example: Several months after installing a computer network, the client calls and says that nothing will print on the printer. What could be going wrong?

    Creating a Structured Interview

    Creating Interview Questions

    4. Future-Focused Questions: Also called situational questions, ask an applicant what she would do in a particular situation. This is done by collecting critical incidents. Example: Imagine that you told a client that you would be there at 10:00 a.m. It is now 10:30 and there is no way you will be finished with your current job until 11:30. You are supposed to meet with another client for lunch at noon and then be at another job at 1:15 p.m. How you handle this situation?

    5. Past-Focused Questions: Also referred to as patterned behaviour description interviews (PBDIs), applicants are asked to provide specific examples of how they demonstrated job-related skills in previous jobs. Example: When you are dealing with customers, it is inevitable that you are going to get someone angry. Tell us about a time when a customer was angry with you. What did you do to fix the situation?

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    Creating a Structured Interview

    Creating Interview Questions

    6. Organizational-Fit Questions: Tap the extent to which an applicant will fit into the culture of an organization or with the leadership style of a particular supervisor. The idea is to make sure that the applicants personality and goals are consistent with those of the organization. Example: What type of work pace is best for you?

    Creating a Scoring Key for Interview Answers

    Three Main Methods

    1. Right/Wrong Approach: Can be scored simply on the basis of whether the answer was correct or incorrect. Example: As a server, can you serve a glass of wine to a 16-year-old if his parents are present and give permission?

    2. Typical-Answer Approach: Done by creating a list of all possible answers to each question, having subject-matter experts rate the favourableness of each answer, and then use these ratings to serve as benchmark answer for each point on the scale.

    3. Key-Issues Approach: SMEs create a list of key issues they think should be included in the perfect answer. For each key issue that is included, the interviewee gets a point. The key issues can also be weighted so that the most important issues get more points.

    Conducting the Structured Interview

    1. BUILDING RAPPORT: Let the applicant settle themselves so that they can feel more positive about the interview

    2. SET THE AGENDA: Explain the process by telling applicants the types of questions that will be asked and point out that each interviewer will be taking notes and scoring the answers immediately after the interviewee has responded

    3. ASK THE INTERVIEW QUESTIONS: A one-trained interviewer may ask the questions, or have each panel member ask some questions. Each answer needs to be scored after it has been given.

    4. PROVIDE INFORMATION ABOUT THE JOB AND THE ORGANIZATION: Might include salary and benefits, the job duties, opportunities for advancement, a history of the organization, etc.

    5. END THE INTERVIEWEE: Compliment the interviewee and let her know when you will be contacting her about job offers.

    Sources of Background Information Reasons for Using References and Recommendations

    Confirming Details on a Resume. Resume fraud is not uncommon. Organizations need to confirm the truthfulness of information provided by the applicant.

    Checking for Discipline Problems. An applicants history of discipline problems can include: poor attendance, sexual harassment, and violence. Protects the organization from charges of negligent hiring.

    Discovering new information about the applicant. Other information can include work habits, character, personality, and skills. Reference checkers should always obtain specific behavioural examples and try to get consensus from several references.

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    Reasons for Using References and Recommendations

    Predicting Future Performance. References and letters of recommendation are ways of looking at past performance to try to predict future performance. Low validity shown in research may be due to four main problems:

    - Leniency. Because applicants choose their own references, it is not surprising that most letters of recommendation are positive. Fear of legal ramifications (slander or libel) may prevent organizations from giving negative recommendations.

    - Knowledge of the Applicant. The person writing the letter often does not know the applicant well, and/or has not observed all aspects of an applicants behaviour.

    - Reliability. The lack of agreement between two people who provide references for the same person.

    - Extraneous Factors. More specific rather than general, longer letters are more positively perceived.

    Meta-analyses indicate that a students GPA can predict job performance, training performance, salary, and graduate school performance

    GPA is most predictive of the first few years after graduation

    In the police academy, education was a good predictor of job performance

    Consists of a standard set of items or tasks that a person completes under controlled conditions. Most involve paper-and-pencil tasks, such as answering questions or solving problems, although some involve manipulation of physical objects to assess such characteristics as manual dexterity or eye-hand coordination.

    Are used to assess ability, interests, knowledge, personality, and skill

    Characteristics of Tests

    Group versus Individually Administered Tests.

    A group test can be administered to several people at once. The test itself is in printed form (e.g., booklet) that can be given to hundreds or thousands of people at one time.

    An individual test, in contrast, is one that a test administrator gives to a single test taker at a time rather than to a group of individuals. This is necessary because the administrator has to score the items as the test proceeds or because an apparatus is involved that only one person can use at a time.

    Characteristics of Tests

    Closed-Ended versus Open-Ended Tests

    With a closed-ended test, the test taker must choose one from several possible responses, such as multiple-choice exams test for ability and knowledge. The advantage is its greater ease in scoring.

    An open-ended test is like an essay exam where the test taker must generate a response rather than choose a correct response. For example, writing ability is best assessed by asking a person to write an essay.

    Characteristics of Tests

    Paper-and-Pencil versus Performance Tests

    With a paper-and-pencil test, the test is on a piece of paper or other printed (or electronic) medium, and the responses are made in written form, often with a pencil. Examples are multiple-choice course exams and open ended tests.

    A performance test involves the manipulation of apparatus, equipment, materials, or tools. The widely used performance test is the typing test.

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    Characteristics of Tests

    Power versus Speed Tests

    A power test gives the test taker almost unlimited time to complete the test.

    A speed test has a strict time limit. It is designed so that almost no one could finish all the items in the allotted time. First, a speed test can contain challenging items that must be completed under time pressure. The second use is with a test that is designed to assess a persons speed in doing a particular task.

    A test that asks a person to perform a simulated job under standardized conditions. It is designed to measure the extent to which an applicant already has a job-related skill

    The person is given the necessary materials and tools and must perform a particular task, such as assembling a motor, under controlled conditions.

    Examples: an applicant as automotive mechanic might be asked to fix a torn fan belt, a secretarial applicant might be asked to type a letter, and a truck-driver applicant might be asked to back a truck up to a loading dock

    (+) Excellent selection method: directly related to the job, predictive of actual performance, less challenged in courts

    (-) Expensive to construct and administer

    A selection technique characterized by the use of multiple assessment methods that allow assessors to actually observe applicants perform simulated job tasks

    Measures how well a person is able to perform the tasks of a specific job; commonly used to assess potential for managerial or other white-collar jobs.

    Common exercises include the in-basket technique, simulations, work samples, leaderless group discussions, structured interviews, personality and ability tests, and business games

    Assessors typically hold positions two levels higher than the assesses and spend one day being trained. They rate the applicants going through the assessment centre.

    In an in-basket exercise, the assessesare asked to pretend that is the first day of a new job and they have found a series of items in their in-basket (e-mails, letters, memos, and phone messages). The applicant is asked to go through the items and respond as if he were actually on the job.

    In a leaderless group exercise, several assesses are given a problem to solve together, with no leader appointed. The problem might be competitive (e.g., dividing a scarce resource) or cooperative (e.g., generating a solution to an organizational problem). Applicants are rated on dimensions such as cooperativeness, leadership, and analytical skills.

    In a problem-solving simulation, the assessee is given a problem and asked to come up with a solution, perhaps by producing a report

    In a role-play exercise, the assessee is asked to pretend to be a particular person in a specific organizational role. The task is to handle a problem or situation, such as counselling a troubled employee or dealing with an irate customer.

    Business Games are exercises that allow the applicant to demonstrate such attributes as creativity, decision making, and ability to work with others Ability tests tap the extent to which an applicant can learn or perform a

    job-related skill. Ability tests are primarily used for occupations in which applicants are not expected to know how to perform the job at the time of hire, but would be taught the necessary job skills and knowledge.

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    A ability or an aptitude is the capacity to do or learn to do a particular task.

    Cognitive abilities, such as intelligence, are relevant to tasks that involve information processing and learning.

    Psychomotor abilities, such as manual dexterity, involve bodily movements and manipulation of objects.

    Some job tasks require mostly cognitive abilities (e.g., programming a computer), whereas others rely mainly on psychomotor abilities (e.g., sweeping a floor). Many tasks require both types of abilities (e.g., repairing a computer or a complex piece of equipment)

    Cognitive Ability Tests

    Dimensions can include oral and written comprehension, oral and written expression, numerical facility, originality, memorization, reasoning (mathematical, deductive, inductive), and general learning

    An intelligence, or IQ, test of general cognitive ability is the best known cognitive ability test.

    There are also tests of individual cognitive abilities, such as mathematical or verbal ability.

    Some tests have been developed that do not rely on reading ability such as non-verbal intelligence test where the items involve problem solving without words

    Research has consistently shown that cognitive ability tests are valid predictors of job performance across a large number of different kinds of jobs.

    Psychomotor Ability Tests

    Assess such things as ability to manipulate objects and use tools.

    Involve both the coordination between senses and movement (e.g., eye-hand coordination) and accuracy of movements.

    Psychomotor abilities include finger dexterity, manual dexterity, control precision, multilimb coordination, response control, reaction time, arm-hand steadiness, wrist-finger speed, and speed-of-limb movement

    Useful for jobs as carpenter, police officer, sewing-machine operator, post office clerk, and truck driver

    People are scored on their ability to perform motor tasks, such as putting pegs in holes or using simple tools to manipulate objects.

    The Hand-Tool Dexterity Test

    Assesses the ability to use simple tools to manipulate small objects. This test involves removing and reassembling several fasteners using wrenches and a screwdriver. The score is based on the time it takes to complete a task.

    The Stromberg Dexterity Test

    Assesses arm and hand movement accuracy and speed. The person must place the coloured disks into the correct color-coded holes. Again, scores are based on the speed with which the person can accomplish the task.

    Physical Ability Tests

    Used for jobs that require physical strength and stamina, such as police officer, firefighter, and lifeguard

    Through job simulations, physical strength is measured by asking the applicant to demonstrate job-related physical behaviours such as when a firefighter climbs a ladder while dragging a 48-pound hose 75 feet across a street.

    Through tests, basic abilities needed to perform certain behaviours have also been developed such as push-ups, sit-ups, and grip strength

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    Critical Physical Abilities (Fleishman & Quaintance, 1984)

    1. STATIC STRENGTH: the ability to use muscle force to lift, push, pull, or carry objects

    2. EXPLOSIVE STRENGTH: the ability to use short bursts of muscle force to propel oneself or an object

    3. GROSS BODY COORDINATION: the ability to coordinate the movement of the arms, legs, and torso in activities where the whole body is in motion

    4. STAMINA: the ability of the lungs and circulatory (blood) systems of the body to perform efficiently over time

    A knowledge and skill test, often called an achievement test, is designed to assess a persons level of proficiency.

    A knowledge test assesses what one knows, whereas a skill test assesses what one is able to do. The emphasis is on prior knowledge.

    Some tests focus on general skills, such as math and reading. Others are useful in assessing skills for a particular job tasks, such as typing.

    An example is the Bennett Mechanical Comprehension Test which assesses a combination of mechanical ability and knowledge about tools.

    A personality trait is the predisposition or tendency to behave in a particular way across different situations.

    Personality traits can be important because certain classes of behavior can be relevant for job performance in organizations.

    For instance, sociability and conscientiousness can be an important trait for a salesperson, while conscientiousness and dominance can be an important trait for a supervisor

    Some personality tests are designed to assess a single personality trait, while others assesses multiple dimensions and are sometimes used to provide profiles across several personality traits.

    TESTS OF NORMAL PERSONALITY measures traits exhibited by normal individuals in everyday life. The most widely used is the Myers-Briggs Type Indicator (MBTI) which is based on Carl Jungs theory. Other good tests include the NEO-PI-R, 16 PF, Minnesota Multiphasic Personality Inventory.

    TESTS OF PSYCHOPATHOLOGY determine whether individuals have serious psychological problems such as depression, bipolar disorder, and schizophrenia. Projective tests include the Rorschach Inkblot Test and the Thematic Apperception Test. Objective test include the MMPI-2, Millon Clinical Multiaxial Inventory (MMCI-III), and the Personality Assessment Inventory (PAI)

    Conscientiousness and emotional stability are the best predictors of individual performance in almost every job

    Conscientious employees set higher personal goals for themselves, are more motivated, and have higher performance expectations

    Extroversion is associated with performance in sales and management jobs

    Agreeableness is associated with performance in jobs where employees are expected to be cooperative and helpful

    People high on the openness-to-experience dimension tend to be more creative and adaptable to change.

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    Emotional intelligence (EI) can be defined as the ability to control and recognize emotions in oneself and in others

    In theory, this ability makes people more socially skilled, enabling them to be aware of and to control their impact on others

    In a work setting, this means being able to work smoothly with colleagues, and in supervisory positions, the ability to exert leadership

    Currently, the construct validity of EI is still in dispute among researchers

    Social Awareness


    Empathy; understanding the emotions of others and their impact on relationships.

    Self-regulation; thinking before acting and staying in control of ones emotions.

    Self-awarenessUnderstanding own emotions and their impact on oneself and others.

    Relationship Management

    Rapport; making use of emotions to build and maintain good relationships



    Emotional Intelligence Competencies

    An integrity test is designed to predict whether an employee will engage in counterproductive or dishonest behavior on the job.

    Such tests have been used to predict such behaviours as cheating, sabotage, theft, unethical behaviours, and sometimes absence and turnover.

    Overt integrity test assesses attitudes and prior behavior (It is all right to lie if you know you wont get caught.). They measure attitudes by asking the test-taker to estimate the frequency of theft in society, how harsh penalties against thieves should be, etc.

    Personality integrity test assesses personality characteristics that have been found to predict counterproductive behavior

    A vocational interest test matches either the interests or the personality of the test taker to those of people in a variety of different occupations and occupational categories.

    Interests are assessed by asking the test taker to indicate preferences for engaging in various activities, such as attending a sporting event or visiting a museum.

    Data from vocational interest tests are available about the answers of people in many different occupations. The test takers answers are matched to those of people in different occupations to see how well they fit each occupation.

    One of the most popular vocational interest tests is the Self-Directed Search (Holland, 1994)

    Asks more detailed background questions than a typical application form. Whereas application forms about level of education and work experience, the biographical inventory asks about specific experiences at school and work, or even other areas in life.


    When you were in grade school and people were being picked for teams, when were you usually picked?

    Did you attend your high school person?

    In high school, what grades did you get in chemistry class?

    In your first full-time job, how often did you initiate conservation with your immediate supervisor?

    Sample Items

    Enjoyed very muchEnjoyed somewhat Enjoyed a littleDidnt enjoy at all

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    Organizations have turned to drug testing of applicants and employees as a means of controlling drug use at work

    Various research have demonstrated that drug users are more likely to miss work and use health care benefits, to get fired and quit their jobs, and cause many accidents on the job

    Such testing is of popular importance in jobs that are safety-sensitive, meaning that impaired performance could lead to accidents or injury (e.g., air traffic controller and bus driver)

    Drug testing is very accurate in detecting the presence of drugs. Stage 1: urine or hair sample is submitted for enzyme multiplied immunoassay technique (EMIT) and radioimmunoassay (RIA). If positive, second stage: thin-layer chromatography or gas chromatography/mass spectometryanalysis.

    Also known as handwriting analysis, the idea behind it is that the way people write reveals their personality, which in turn should indicate work performance

    Popular selection method in France

    Looks at the size, slant, width, regularity, and pressure of a writing sample

    Predictive of affective states such as stress (Keinan & Eilat-Greenberg, 1993) but not job performance

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    Gerald B. Pearanda, M.Sc., CSIOPIndustrial-Organizational Psychologist/HR


    Performance Appraisal, Development, and Management Performance Appraisal: The

    process of assessing performance

    to make administrative decisions

    Performance Development: Assessment of performance with

    the goal of providing feedback to

    facilitate improved performance

    Performance Management: Process that incorporate appraisal and development to make performance-based administrative decisions and help employee improve

    Why do we appraise employees?

    1. Administrative Decisions:

    Basis for punishments (demotion and termination) and rewards (retention, promotion and pay raises)

    2. Employee Development and Feedback

    Supervisors need to inform their subordinates about expectations and how well the expectations are being met; identify T&D needs

    On top of the annual appraisal, companies can include semiannual goal setting, periodic coaching and feedback sessions between employee and supervisor

    Why do we appraise employees?

    3. Criteria for Research:

    Job performance data can serve as the criterion against which many of the efforts of I/O

    psychologists are evaluated, such as: designing

    better equipment, hiring better people, motivating

    employees, and training employees.

    Who will evaluate performance? 1. Supervisors:

    Most common source; they are responsible for that persons performance

    See end results (such daily sales), but may not see every minute of an employees behavior; danger of bias for or


    2. Peers:

    They see actual behaviour of employee; can result to open communication, cohesion, and reduced social loafing

    Employees tend to react worse to negative feedback from peers than from experts (Albright & Levy, 1995)

    3. Subordinates:

    Usually for developmental rather than for pay purposes, can improve the managers performance

    Also called upward feedback, honest subordinates rating can be difficult to obtain if employees fear a backlash if

    they unfavourably rate their supervisor

    Subordinates prefer giving anonymous responses (not surprisingly), and those who must identify themselves

    tend to give inflated ratings

    Who will evaluate performance?

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    4. Customers:

    Informally, customers can provide feedback on employee performance by complimenting or filing


    Formally, customers can be asked to complete evaluation cards

    Secret shoppers - organizations can also seek customer feedback from customers who have been enlisted by a

    company to periodically evaluate the service they receive

    Who will evaluate performance? Who will evaluate performance?

    5. Self-Appraisal:

    An employee evaluates his/her own behaviour and performance;

    Tend to suffer from leniency errors for certain countries such as in the U.S., mainland China,

    India, and Singapore

    Self-ratings in countries such as Japan, Korea, and Taiwan suffer from modesty (Barren & Sackett,


    May be more accurate if not used for administrative purposes

    What is the focus of the appraisal?

    1. Trait-Focused Performance Dimensions:

    Concentrates on such employee attributes such as honesty,

    dependability, courtesy

    Provide poor feedback and thus will not result in employee

    development and growth

    Because traits are personal, the employee is likely to become


    What is the focus of the appraisal?

    2. Competency-Focused Performance Dimensions:

    Concentrates on the employees knowledge,

    skills, and abilities

    Makes it easy to provide feedback and suggest steps

    necessary to correct


    What is the focus of the appraisal?

    3. Task-Focused Performance Dimensions:

    Organized by the similarity of tasks that are performed and includes several competencies

    Because supervisors are concentrating on tasks that

    occur together, evaluating

    performance in other

    dimensions becomes easier to


    Difficult to offer suggestions to correct deficiencies

    What is the focus of the appraisal?

    4. Goal-Focused Performance Dimensions:

    The appraisal is organized on the basis of goals to be accomplished by the employee

    Makes it easier for an employee

    to understand

    why certain

    behaviours are


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    Characteristics of Performance CriteriaActual versus Theoretical Criteria:

    A theoretical criterion is a theoretical construct

    (definition) of what good

    performance is

    An actual criterion is the way in which the theoretical

    criterion is assessed or


    Characteristics of Performance Criteria

    Contamination, Deficiency, and Relevance:

    Criterion contamination refers to that part of the actual criterion that reflects something other than what it was designed to measure. It can arise from biases in the criterion and from unreliability.

    Criterion deficiency means that the actual criterion does not adequately cover the entire theoretical criterion, an incomplete representation of what we are trying to assess (insufficient content validity)

    Criterion relevance refers to the extent to which the actual criterion assesses the theoretical criterion it is designed to measure, or its construct validity

    Characteristics of Performance Criteria

    Criterion Complexity:

    Criteria can become quite complex because jobs involve

    multiple tasks that can be

    evaluated from several perspectives

    For instance, quality dimension (how well the

    worker does the job) versus

    quantity dimension (how

    much or how quickly the

    worker does the job)

    Characteristics of Performance Criteria

    Two Ways to Deal with Criterion Complexity:

    1. Composite criteria approach: combining individual criteria into a single score

    2. Multidimensional approach: when the individual criterion measures are not combined

    Attendance 5

    Professional appearance 4

    Work quality 4

    Work quantity 5

    Characteristics of Performance Criteria

    Dynamic Criteria:

    This refers to the variability of performance over time which would make the assessment difficult

    because the performance would not have been the same

    throughout the entire measurement time period.

    Contextual Performance:

    Consists of extra, voluntary things employees do to benefit their coworkers and organizations that must be

    considered in developing criteria for jobs.


    When a rater tends to rate everyone

    the same on a rating scale regardless

    of actual performance

    Leniency Errors: When the rater rates everyone at the favourable end of the performance scale.

    Severity Errors: Also known as strictness error, it happens when the rater rates everyone at the

    unfavourable end of the performance scale

    Central Tendency Errors: When the rater rates everyone in the middle of the performance scale.

    Rater Bias and Error

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    Rater Bias and Error

    HALO ERRORS When a rater gives an individual the same rating across all

    rating dimensions despite differences in performance across


    Happens when the rater allows either a single attribute or an overall impression of an individual to affect the ratings that

    she makes on specific qualities

    Dimension Emp. 1 Emp. 2 Emp. 3 Emp.4

    Attendance 5 3 1 4

    Communication 5 3 1 4

    Following directions 5 3 1 4

    Work quality 5 3 1 4

    Work quantity 5 3 1 4

    Rater Bias and Error

    PROXIMITY ERRORS Occur when a rating made on one dimension affects the

    rating made on the dimension that immediately follows it on

    the rating scale

    For example, because second dimension is physically located on the rating form next to the first, there is a tendency to

    provide the same rating on both dimensions

    Dimension Emp. 1 Emp. 2 Emp. 3 Emp.4

    Attendance 5 3 1 4

    Communication 5 3 1 4

    Following directions 5 3 1 4

    Work quality 5 3 1 4

    Work quantity 5 3 1 4

    Rater Bias and Error

    CONTRAST ERRORS Happens when the

    performance rating one

    person receives is influenced

    by the performance of a

    previously evaluated person

    For example, the employee who is evaluated after the best

    employee might receive lower

    ratings because her

    performance is contrasted to

    the other employee

    Rater Bias and Error

    Low Reliability across Raters Two people rating the same employee seldom agree with each


    Happens because (1) raters often commit in rating errors, (2) raters have

    very different standards and ideas about

    the ideal employee, (3) different raters

    may actually see very different

    behaviours by the same employee

    Rater Bias and Error

    Sampling Problems Recency Effect: Recent behaviours are given more weight in

    the performance evaluation than behaviours that occurred

    during the first few months of the evaluation period

    Infrequent Observation: Occurs because many managers and supervisors do not have the opportunity to observe a

    representative sample of employee behaviour

    Cognitive Processing of Observed Behaviour Observation of Behaviour: Memory accuracy decreases

    over timeneed for immediate rating after behaviour

    Emotional State: The amount of stress under which a supervisor operates also affects her performance

    Rater Bias and Error

    Cognitive Processing of Observed Behaviour Bias: Raters who like the employee being rated may be

    more lenient and less accurate in their ratings than would

    raters who neither like nor dislike their employees (Cardy

    & Dobbins, 1986)

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    Rater Bias and Error



    o Rater Error Training (RET): Raters are

    familiarized with rater errors and taught to avoid

    these rating patterns.

    o Frame-of-Reference Training: Attempts to provide

    a common understanding of the rating task

    o 360 Degree Feedback: Using multiple perspective

    for manager feedback. Managers evaluate

    themselves, then evaluated by peers, subordinates,

    and supervisors


    o Usually composed

    of the employee s


    supervisor and

    three or four other


    o Multiple raters often see different facets of an

    employees performance, helping cancel out

    problems such as bias on the part of individual


    Six Points of a Legally Defensible

    Performance Appraisal System

    1. Perform job analysis to define dimensions

    of performance.

    2. Develop rating form to assess dimensions

    from prior point.

    3. Train raters in how to assess performance.

    4. Have higher management review ratings and

    allow employees to appeal their evaluations.

    5. Document performance and maintain

    detailed records.

    6. Provide assistance and counselling to poor-

    performing employees prior to actions

    against them.

    Methods for Assessing Job Performance

    Objective Measures

    Counts of various behaviours (e.g., number of days absent from work) or the results of job behaviours (e.g., total monthly sales).

    Subjective Measures

    Ratings of people who should be knowledgeable about the

    persons job performance,

    usually by supervisors


    1. Graphic Rating Scales

    2. Employee Comparison Methods

    a) Rank Order

    b) Paired Comparison

    c) Forced Distribution

    3. Behaviour-Focused Rating Forms

    a) Critical Incidents

    b) Behaviourally Anchored Rating

    Scales (BARS)

    c) Behavioural-Observation Scale


    d) Mixed Standard Scales (MSS)

    Graphic Rating Scales The most commonly used rating scale Assesses individuals on several dimensions of performance; Focuses on the persons performance (e.g., work quality &

    quantity), or his/her characteristics or traits (e.g., appearance,

    attitude, dependability, and motivation)

    Consists of multi-point scale that represents a continuum of performance from low to high and usually contains from four

    to seven values.

    A supervisor checks off a rating scale for each of the dimensions

    (+) Easy to construct and use (-) Susceptible to rating errors such as halo and leniency

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    In these methods, individuals are compared with one another

    The concentration of ratings at one part of the scale caused by rating error is avoided

    (+) Eliminates central tendency and leniency errors because raters are compelled to differentiate among the

    people being rated

    (-) Halo error is still possible because it manifests itself across multiple evaluations of the same person

    (-) Performance is not compared with a defined standardthey do not provide information about how an

    employee is actually performing

    Employee-Comparison Methods

    The rater ranks employees from high to low on a given performance dimension

    The person ranked first is regarded as the best and the person ranked last as the worst

    (+) Easily used when there are only a few employees to rank (-) Becomes tedious and even meaningless to rank order

    large numbers of people

    (-) We still do not know how good the best is and how bad the worst is. We do not know the level of performance

    Employee-Comparison Methods


    Involves comparing each possible pair of employees and choosing which one of each pair is the better employee

    Typically used to evaluate employees on a single dimension: overall ability to perform the job

    At the conclusion of the evaluation, the number of times each person was selected as the better of the two is tallied: people

    are then ranked by the number of tallies they receive

    (+) Best for relatively small samples (-) Becomes prohibitive with large number of people:

    evaluating 100 employees would result in 4,950 separate


    Employee-Comparison Methods


    Also called the rank and yank, this procedure is based on the normal distribution and assumes that employee

    performance is normally distributed

    Using predetermined percentages based on the normal distribution, the rater evaluates an employee by placing him

    or her into one of the categories

    (+) Increases levels of organizational productivity (+) Employee-comparison method of choice for large

    number of employee

    (-) Considered by employees as harsh and least fair (-) Assumes that employee performance is normally

    distributed, although it can also be not normally distributed

    Employee-Comparison Methods


    Concentrates on specific instances of behavior that a person has done or could be expected to do.

    Behaviours are chosen to represent different levels of performance

    Example for attendance: (a) Good behavior: Can be counted to be at work every day on time. (b) Poor

    behaviour: Comes to work late several times per week

    The raters job is to indicate which behaviours are characteristic of the person being rated

    Reflects the most recent advancement in performance appraisal

    Behaviour-Focused Rating Forms

    Critical incidents are behaviours that result in good or poor performance

    Usually written in a critical incident logformal accounts of employee performance that were observed by the supervisor

    Should be communicated to the concerned employee at the time they occur

    (+) Helps supervisors recall behaviours when they are evaluating performance, and helps an organization defend

    against legal actions

    (-) Not having numerical ratings makes it not as useful for comparing employees or for salary decisions

    Behaviour-Focused Rating Forms


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    Are a combination of the critical incidents and rating-scale methods: performance is rated on a

    scale, but the scale points are anchored with

    behavioural incidents

    The rater chooses the behaviour that comes closest to describing the performance of the person in


    Time-consuming to develop but the benefits make it worthwhile

    Behaviour-Focused Rating Forms


    SCALE Contains items that are also based on critical


    The rater must rate the employee on the frequency of critical incidents

    The final step is to do item analysis to detect the critical incidents that most influence overall


    (+) Content valid: the aspects of performance are derived directly from the job

    Behaviour-Focused Rating Forms


    Example of a Mixed Standard Scale to Assess the Dimension of Relations with Other People

    For each item on the scale, indicate if the employee is:

    A. Better than the item

    B. As good as the item

    C. Worse than the item

    ___ Good Performance: Is in good terms with everyone. Can get

    along with people when he or she doesnt agree with them.

    ___ Satisfactory Performance: Gets along with most people.

    Only very occasionally does he or she have conflicts with others

    on the job, and these are likely to be minor.

    ___ Poor Performance: Has the tendency to get into unnecessary

    conflicts with other people.

    Developed by having employees rate job behaviours and critical incidents on the extent to which they

    represent various levels of job performance

    For each job dimension, a behaviour or incident is chosen to represent excellent performance (+),

    average performance (0), and poor performance (-)

    1. The ratee is better than the statement

    2. The statement fits the ratee

    3. The ratee is worse than the statement

    Behaviour-Focused Rating Forms


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    The systematic acquisition of attitudes, concepts, knowledge, roles, or skills, that result in improved performance at work.



    Conduct TNA

    Set Objectives

    Design Training

    Deliver Training

    Evaluate Training


    The first step in developing an employee training system

    Needs assessment is conducted to determine which employees need training and what the

    content of their training should be (Arthur,

    Bennett, Edens, & Bell, 2003)

    Has three types: (1) organizational analysis, (2) task analysis, and (3) performance analysis

    NEEDS ASSESSMENT: Organizational Analysis

    Purpose: To determine organizational factors that either facilitate or inhibit training effectiveness

    Focus: Goals the organization wants to achieve, the extent to which training will help achieve these goals, the organizations ability to

    conduct training (e.g., finances, physical space, time), and the extent

    to which employees are willing and able to be trained (e.g., ability,

    commitment, motivation, stress)

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    Purpose: To identify the tasks to be performed by each employee, the conditions under which these tasks are performed, and the

    competencies (knowledge, skills, abilities) needed to perform the tasks

    under the identified conditions

    Methods: Interviews, surveys, observations, and task inventories

    Is fairly easy and does not take much time if job descriptions are written in a

    detailed manner

    NEEDS ASSESSMENT: Task Analysis

    Comparing task analysis results with training programs

    Purpose: To verify that there is a performance deficiency and to determine whether the employer

    should correct such deficiencies through training or

    some other means

    (1) Performance appraisal scores may indicate that additional training for identified dimensions may be needed

    (2) Survey can ask employees what knowledge and skills they believe should be included in future training

    NEEDS ASSESSMENT: Performance Analysis

    (3) Interviews can yield more in-depth answers to questions about training needs

    (4) Skill and knowledge tests may indicate that, if employees score poorly on these tests, training is needed

    (5) Critical Incidents will show that dimensions with many examples of poor performance (e.g., productivity, absenteeism and

    tardiness, grievances, waste, late deliveries, product quality,

    downtime, repairs, equipment utilization, and customer complaints)

    NEEDS ASSESSMENT: Performance Analysis

    Designing Training Programs

    Planning the overall training program includes:

    Setting performance objectives

    Creating a detailed training outline

    Choosing a program delivery method

    Verifying the overall program design with management

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    The first step in the design process is to write learning objectives

    Learning objectives should be practical given financial

    (development costs, direct and indirect costs) and time constraints

    They should specify in measurable terms what the trainee should

    be able to accomplish after successfully completing the training


    Example: The technical service representative will be able to adjust

    the color guidelines on this HP Officejet All-in-One printer copier

    within 10 minutes according to the device s specifications.

    Components of a Learning Objective:


    Should describe observable behaviors that the participants will be able to do as a result of the training

    Must use specific action verbs that are not subject to interpretations

    Words such as to understand, know, and learn are NOT ACCEPTABLE because these are not observable

    Example: The technical service representative will be able to adjust the color guidelines on this HP Officejet All-in-One printer copier within 10

    minutes according to the devices specifications.

    Components of a Learning Objective:


    Pertains to the circumstances under which the participant will be performing the activity

    Also describes the equipment, supplies, and job aids; describes the work setting and any given information used to direct the action

    Example: The technical service representative will be able to adjust the color guidelines on this HP Officejet All-in-One printer copier within 10

    minutes according to the devices specifications.

    Components of a Learning Objective:

    3. STANDARD:

    Specifies the level or degree of proficiency that is necessary to perform the task or job successfully

    Indicates the quality of the performance required to achieve objectives

    May involve speed, accuracy with a margin of error, maximum of mistakes permitted, productivity level, or degree of excellence

    Example: The technical service representative will be able to adjust the color guidelines on this HP Officejet All-in-One printer copier within 10

    minutes according to the devices specifications.


    Transfer of Training the expectation that employees apply knowledge and skills learned on the job.

    Trainee Characteristics

    Training Design:Feedback

    General PrinciplesIdentical Elements


    Work Environment

    Trainee Characteristics

    Individual differences in ability and motivation are important factors in learning.

    Abilities: Not everyone has the same ability to learn a given task, and training needs to recognize these differences.

    Attitudes and Motivation: By giving rewards for successful completion, and by making the training interesting to the trainers, participants can be more motivated.

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    Design factors that affect transfer of training:

    Feedback: Should be given to the trainees so that they can tell if they are learning the correct material (e.g., test, asking questions, etc.)

    General Principles: This section should teach why something is done, i.e., the general principles behind the material

    Identical Elements: The responses in training situation are identical to the job situation (e.g., flight simulator)

    Overlearning: Giving the trainees practice beyond what is necessary to reach a criterion and achieve automaticity

    Method Advantages

    Lecture A presentation by a trainer to a group of trainees.Economical; good information-giving method

    Case Study Method

    Presents a trainee with a written description of an organizational problem. Allows diagnosis of realistic cases and presentation of proposed solutions.


    Having a person learn the job by actually doing it; high level of transfer (e.g., apprenticeship); useful in trade occupations

    Training Methods Training Methods

    Method Advantages


    Electronic presentation (e.g. DVD, films, audiotapes). The stop-action, instant replay, and fast- orslow-motion capabilities useful for illustrating how to follow a certain sequence over time.

    Conference Meeting of trainees and a trainer. Allows for free flow of ideas; high level of trainee involvement

    Programmed Learning

    Step-by-step, self-learning method (e.g., programmed instruction trough textbook, PC, or Internet). Gives immediate feedback to trainees; allows individualized pacing, reduces training time

    Method Advantages

    Role Playing Having trainees assume roles of specific persons in a realistic situation. Can trigger spirited discussions; may train someone to be more sensitive to others feelings

    Behavior Modelling

    Having trainees watch someone perform a task and then having them model what they have seen. High level of feedback; provides practice of new skills

    Training Methods

    Method Advantages

    Vestibule Training

    Trainees learn on the actual or simulated equipment they will use on the job, but are trained off the job (a separate room or vestibule. Necessary when its too costly or dangerous to train employees on the job

    Training Methods

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    Method Advantages

    Internet-Based Training

    Employing Internet-based learning to deliver programs.Online courses can be done through companys own Intranet or from online training vendors

    Training Methods

    Method Advantages

    Mobile Learning Delivering learning content on demand via mobile devices like cell phones, laptops, and iPads.Employers use mobile learning to deliver corporate training and downloads.

    Training Methods

    Method Advantages

    Computer-Based Training (CBT)

    Uses interactive computer-based systems to increase knowledge or skills.Increasingly interactive and realistic (e.g. virtual reality),reduces learning time

    Training Methods Mentoring

    A special kind of work relationship between two employees in which the more experienced one offers career guidance, counselling, and emotional support, and serves as a role model, to the less experienced one

    (+) Helps employees develop their careers with the company.

    (+) According to research, protgs have better job performance, quicker promotion, better job attitudes, and less turnover

    Executive Coaching

    High level executives are paired with a consultant who serves as executive coach to help them improve performance

    The incumbent has significant performance deficiencies and the cost of finding a replacement is high

    Plans to enhance specific skills can be devised with the coach based on feedbacks from people who interact with the executive

    (+) The coach might work with the executive for an extended period, providing continual advice and feedback

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    1. Adults must recognize the need to learn.

    2. Adults want to apply new learning back on the job.

    3. Adults need to integrate past experience with new material.

    4. Adults prefer the concrete to the abstract.

    Differences Between Children and Adults As Learners


    Rely on others to decide what is important to be learned

    Accept information being presented at face value

    Expect what they are learning to be useful in the long run

    Have little experience upon which to draw; are relatively clean slates

    Rely on others to decide what is important to be learned

    Little ability to serve as knowledgeable resource to teacher or fellow classmates


    Decide for themselves what is important to be learned

    Needs to validate the information based on their beliefs and experience

    Expect what they are learning to be immediately useful

    Have much past experience upon which to draw; may have fixed viewpoints

    Significant ability to serve as knowledgeable resource to the trainer and to fellow learners

    5. Adults need a variety of training methods.

    6. Adults learn better in an informal, comfortable environment.

    7. Adults want to solve realistic problems.

    8. Adults prefer the hands-on method of learning.

    The trainer is not the change agent

    In adult learning, the change agent is not the trainer/facilitator. It is the trainee who must decide that he/she is capable and potentially

    equipped to make the change.

    The TRAINEE isthe change agent!

    Making the Presentation

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    Talkative I appreciate your contribution, but lets hear from some other people. In order to stay on schedule and on track, lets discuss this further during the break or after the session.

    Clueless Something I said must have led you off track. What I was trying to say was. . . .

    Rambling I dont understand. How does this relate to what were talking about?

    Belligerent I understand and appreciate your point of view. What do some of the rest of you think?

    Stubborn I appreciate your position, but for the sake of the activity, Im going to insist that we move on. Ill be happy to discuss this with you later.


    SilentI know you have some experience in this area. Please tell us about it.


    Know-it-all Thats one point of view. However, there are other ways of looking at it.

    Class Clown We all enjoy a little levity. But right now, lets get serious and concentrate on the topic at hand.

    NegativeI understand your point. What suggestions do you have to

    change the situation? For the sake of discussion, what might be some arguments for the opposite point of view?

    Personality Clashes

    I suggest that we keep personalities out of the discussion. Lets get back to the topic at hand.

    Side Talks [Persons names], we were just talking about. . . . What are your thoughts?


    Make eye contact with