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Chapter 1

Introduction: Definitions and History

Learning Objectives


After reading and studying Chapter 1, students should be able to:

Define industrial/organizational psychology and discuss its various areas of interest.

Describe the scientist-practitioner model as it is utilized in I/O psychology.

Generally describe the history and development of I/O psychology, including the work of Taylor and scientific management, and the work of Mayo and the human relations movement.

Describe the current and future research and application trends in I/O psychology.

Chapter Summary


Industrial/organizational psychology is the branch of psychology that deals with the study of work behavior. I/O psychologists are concerned with both the science and practice of industrial/organizational psychology. The scientific goal is to increase our knowledge and understanding of work behavior, whereas the practical goal is to use that knowledge to improve the psychological well-being of workers. The study of work behavior is a multidisciplinary, cooperative venture. Because I/O psychologists are not the only professionals who study work behavior, they combine their research with that of other social sciences.

Important historical contributions that led to the development of the field of I/O psychology include the work of Frederick Taylor, who founded the school of scientific management, which held that work behavior could be studied by systematically breaking down a job into its components and recording the time needed to perform each. The application of such time-and-motion studies increased the efficiency of many manual labor jobs. During both World War I and World War II, psychologists became involved in the psychological testing of military recruits to determine work assignments. This first large-scale testing program was the beginning of formalized personnel testing, which is still an important part of I/O psychology. Elton Mayo and his human relations movement emphasized the role that social factors play in determining worker behavior. Through a series of studies, he demonstrated the importance of worker morale or satisfaction in determining performance. Mayo also discovered the Hawthorne effect, or the notion that subjects’ behavior could be affected by the mere fact that they knew they were being observed and by the expectations they associated with being participants in an experiment. Following World War II, there was tremendous growth and specialization in I/O psychology, including specialties within the field that focus on how work groups and organizations function and on how technology and workers interface.

Today, industrial/organizational psychology is a rapidly growing field. Several important trends present challenges to I/O psychology and represent cutting-edge areas of research in the field. These include the changing nature of work and the rapidly expanding nature of jobs, partly caused by a reduction in workforce due to organizational downsizing and outsourcing for efficiency; an expanding focus on human resources; and increasing diversity in the workforce that presents both challenges and opportunities, including the increasing globalization of business. Finally, I/O psychologists are having a bigger impact on shaping policies and practices

Chapter 2

Research Methods in I/O Psychology

Learning Objectives


After reading and studying Chapter 2, students should be able to:

Explain why social scientific research methods are important, and describe the four goals of this method in I/O psychology.

Describe the six steps in the research process.

Explain the role of a dependent variable in I/O research, and give examples of dependent variables commonly examined in I/O.

Explain and distinguish between the major research designs, and give examples of when each is appropriate or desirable.

Explain the usefulness of meta-analysis in social science research.

Define operationalization of variables, and describe various ways to measure variables.

Explain why external validity is important in the interpretation and use of research results.

After reading and studying the Appendix in Chapter 2, students should be able to:

Understand the difference between descriptive and inferential statistics and be able to give examples of each.

Understand the different statistical analyses involved in the experimental and correlational methods.

Chapter Summary


The goals of I/O psychology are to describe, explain, predict, and then alter work behavior. Research methods are important tools for I/O psychologists because they provide a systematic means for investigating and changing work behavior. Objectivity isthe overriding theme of the social scientific method used to study work behavior.

The first step in conducting research involves the formulation of the problem or issue. The second step is the generation of hypotheses, which are simply statements about the supposed relationships among variables. It is through the systematic collection of observations of behavior that a researcher may develop a set of hypotheses into a more general theory, or model, which are ways of representing the complex relationships among a number of variables related to actual work behavior. The third step in conducting research is choosing a particular design to guide the actual collection of data (the fourth step). The data collection stage includes sampling—the methods by which participants are selected for study. The final steps in the process are the analyses of research data and the interpretation of research results.

I/O psychologists use two basic types of research designs. In the experimental method, the researcher manipulates one variable, labeled the independent variable, and measures its effect on the dependent vari­able. In an experimental design, any change in the dependent variable is presumed to be caused by the manipulation of the independent variable. Typically, the experimental method involves the use of a treatment group and a control group. The treatment group is subjected to the manipulation of the independent variable, whereas the control group serves as a comparison by not receiving the treatment. Variables that are not of principal concern to the researchers, but which may affect the results of the research are termed extraneous variables. In the experimental method, the researcher attempts to control for extraneous variables through the random assignment of participants to the treatment and control groups in order to ensure that any extraneous variables will be distributed evenly between the groups. The strength of the experimental method is the high level of control that the researcher has over the setting, which allows the investigator to determine cause‑and‑effect relationships. The weakness of the method is that the controlled conditions may be artificial and may not generalize to actual, uncontrolled work settings. Quasi-experiments are often conducted when the researcher does not have the ability to randomly assign participants to different conditions. The other type of research method, the correlational method (sometimes called the observational method), looks at the relationships among measured variables as they naturally occur, without the interven­tion of the experimenter and without strict experimental controls. The strength of this design is that it may be more easily conducted in actual settings. However, the correlational method does not allow the specification of cause‑and‑effect relationships.

Meta-analysis is a method that allows the results of a number of studies to be combined and analyzed together to draw an overall summary or conclusion. Meta-analysis may also be used to determine if the results of different studies of the same factors are significantly different from each other.

The case study isa commonly used descriptive investigation that lacks the controls and repeated observations of the experimental and correlational methodologies. The case study can provide important information, but does not allow the testing of hypotheses.

An important part of the research process involves the measurement of variables. The term operationalization refers to the process of defining variables so that they can be measured for research purposes. A variety of measurement techniques are used by I/O psychology researchers. Re­searchers may measure variables through the direct obtrusive or unobtrusive observation of behavior. In obtrusive observation, the researcher is visible to the research participants, who know that they are being studied. Unobtrusive observation involves observing participants’ behavior without their knowledge. Another measurement strategy is self‑report techniques, which yield information about participants’ behavior from their own reports. One of the most widely used self‑report techniques is the survey.

When interpreting research results, a researcher should consider the limitations of the findings. One concern is the extent to which the researcher is confident that changes in the dependent variable were actually caused by the independent variable, as opposed to extraneous variables. This is called internal validity. Attention must also be given to the external validity of the findings, that is, whether they will generalize to other settings. A critical concern to I/O psychologists is the interrelation of the science and practice of industrial/organizational psychology.

The American Psychological Association lists several core principles that should guide the ethical conduct of research in psychology, including I/O psychology. One key element in working with human participants is obtaining informed consent. With informed consent, a research participant is fully informed of the nature of the experiment and has the right to not participate in the research.

Chapter 3

Job Analysis: Understanding Work and Work Tasks

Learning Objectives


After reading and studying Chapter 3, students should be able to:

Define job analysis, the personnel products it yields, and its importance in work organizations.

Describe the various job analysis methods, including specific methods, and their respective advantages and disadvantages.

Discuss the use of job analyses in job evaluations and the concepts of comparable worth and exceptioning.

Discuss the influence of civil rights legislation on the structure and use of job analyses.

Chapter Summary


Personnel psychology, a specialty area of I/O psychology, is concerned with the creation, care, and maintenance of a workforce. I/O psychologists who specialize in personnel psychology are involved in several activities, such as employee recruitment and selection, the measurement of employee performance and the establishment of good performance review procedures, the development of employee training programs, and the formulation of criteria for promotion, firing, and disciplinary action.

Job analysis is the systematic study of a job’s tasks, duties, and responsibilities, and the knowledge, skills, and abilities needed to perform the job. The job analysis, which is the important starting point for many personnel functions, yields several products: a job description, which is a detailed accounting of job tasks, procedures, responsibilities, and output; a job specification, which consists of information about the physical, educational, and experiential qualities required to perform the job; a job evaluation, which is an assessment of the relative value of jobs for determining compensation; and performance criteria, which serve as a basis for appraising successful job performance.

Job analysis methods include observation, the use of existing data, interviews, surveys, and job diaries. In addition to these general methods for conducting job analysis, there are a number of specific, standardized techniques. One structured job analysis technique is the job element method, a broad approach to job analysis that focuses on the knowledge, skills, abilities, and other characteristics (KSAOs) required to perform a particular job. The critical incidents technique of job analysis involves the collection of particularly successful or unsuccessful instances of job performance. Through the collection of hundreds of these incidents, a detailed profile of a job emerges. Another structured job analysis technique, the Position Analysis Questionnaire (PAQ), uses a questionnaire that analyzes jobs in terms of 187 job elements arranged into six categories. Functional job analysis (FJA) isa method that has been used to classify jobs in terms of the worker’s interaction with data, people, and things. FJA uses the Dictionary of Occupational Titles (DOT), a reference book listing general job descriptions for thousands of jobs (since replaced by the U.S. Labor Department’s O*NET database) and examines the sequence of tasks required to complete the job as well as the process by which the job is completed. Research has determined that all of these specific, standardized methods are effective.

Job analysis yields a job evaluation, or an assessment of the relative value of jobs used to determine appropriate compensation. These evaluations usually examine jobs on dimensions that are called compensable factors,which are given values that signify the relative worth of the job and translate into levels of compensation.

An important topic in the area of job evaluation concerns the "gender gap" in wages. Evidence indicates that women are paid far less than men for comparable work. This inequity has recently given rise to the comparable worth movement, which argues for equal pay for equal work. This issue is controversial because of the difficulty and costs of making compensation for comparable jobs equitable. Research has also suggested that women and ethnic minorities are affected by a glass ceiling or labyrinth,which creates difficulties for members of minority groups in rising to the highest-level positions in organizations.

Chapter 4

Job Analysis: Understanding Work and Work Tasks

Learning Objectives


After reading and studying Chapter 4, students should be able to:

Understand the processes involved in human resources planning.

Discuss the steps in the employee selection process, including recruitment, selection, and placement.

Describe methods of employee recruitment and the use of realistic job previews.

Describe different models of employee selection, including multiple regression, multiple cutoff, and multiple hurdle models.

Discuss the influence of civil rights legislation on employee screening and selection procedures and practices.

Chapter Summary


Human resource planning is the process of hiring and staffing an organization. It involves thinking forward to the positions that need to be filled, the talent needed to fill them, and the process of how the organization will fill these positions.

Employee recruitment isthe process of attracting potential workers to apply for jobs. There are a variety of employee recruitment methods, such as advertisements, college recruitment programs, employment agencies, and employee referrals. An important element of the recruitment process is to present applicants with an accurate picture of the job through the use of realistic job previews (RJPs),which help increase satisfaction and decrease turnover of new employees. Employee screening isthe process of reviewing information about job applicants to select individuals for jobs, and will be covered in depth in Chapter 5.

Once the screening information has been obtained, a selection decision must be made. All too often, subjective decision-making processes are used. Statistical models of decision making include the multiple regression model,an approach that allows predictors to be combined statistically; the multiple cutoff strategy, a method of setting minimum cutoff scores for each predictor; and the multiple hurdle approach, a stringent method that uses an ordered sequence of screening devices. Employee placement involves assigning selected employees to jobs to which they are best suited.

Regardless of the screening and selection procedures used, an overriding concern in all personnel decisions is to protect against discrimination in employment. The federal Equal Employment Opportunity Commission (EEOC) has established guidelines to ensure against discrimination against ethnic minorities and other protected groups. To take preventive steps to avoid employment discrimination, many organiza­tions have adopted affirmative action plans to ensure that jobs are made available to members of protected groups.

Chapter 5

Methods for Assessing and Selecting Employees

Learning Objectives


After reading and studying Chapter 5, students should be able to:

Discuss the development and use of criteria and predictors in employee screening and selection.

Discuss the various methods of employee screening, including the use of various types of employee tests and their effectiveness.

Discuss different hiring interview formats, including traditional, structured behavioral interview, and videoconference interviews.

Chapter Summary


The first step is the evaluation of written materials such as applications and resumes. Basic background information can be translated into numerical values to compare the qualifications of applicants through the use of weighted application forms or biographical information blanks (BIBs). Employee screening also involves methods, such as references and letters of recommendation. However, the use of these methods is on the decline because they tend to be overly positive and are often uninformative.

The second step in screening is employee testing, which typically uses standardized instruments to measure characteristics that are predictive of job performance. Any screening test or method must demonstrate that it is a reliable and valid predictor of job performance. Three methods for establishing reliability are test‑retest reliability, parallel forms,and internal consistency. The two forms of validity that are most important for the development and use of screening tests are content validity,or whether the test content adequately measures the knowledge, skills, and abilities required by the job, and criterion‑related validity,or the relationship between screening test scores and some criterion of job success.

Employee screening tests vary greatly both in their format and in the characteristics that they measure. Categories of such tests include cognitive ability tests, mechanical ability tests, motor and sensory ability tests, job skills and knowledge tests, personality tests, and miscellaneous instruments such as polygraphs. For the most part, the standardized tests are among the best predictors of job performance. Often they are used in combination—in test batteries—to help select the best qualified candidates. An important issue regarding the effectiveness of employee screening tests is validity generalization, or a test’s ability to predict job performance in settings different from the one in which it was validated. Another concern is test utility,an estimate of the dollars gained in increased productivity and efficiency because of the use of screening tests. Faking is trying to beat an employment test by distorting responses. Assessment centers use the test battery approach to offer a detailed, structured assessment of applicants’ employment potential, most often for high‑level managerial positions.

Employment screening for most jobs includes at least one hiring interview. Just like any other selection method, the interview is a measurement tool. Unfortunately, research indicates that the hiring interview, as it is typically used, generally has low levels of reliability and validity. Used correctly, the interview should help supply information that cannot be obtained from applications, resumes, or tests and should present the applicant with a realistic job preview. However, most interviews are not conducted with this in mind. One of the greatest sources of problems with hiring interviews stems from interviewer biases.

Chapter 6

Evaluating Employee Performance

Learning Objectives


After reading and studying Chapter 6, students should be able to:

Define performance appraisals and their purposes in work organizations.

Describe issues involved in the measurement of job performance, including the development of performance criteria.

Discuss various sources of performance ratings and their respective advantages and disadvantages.

Discuss the benefits and costs associated with 360-degree feedback.

Discuss various methods of rating performance and their respective advantages and disadvantages.

Discuss the various problems and pitfalls involved in the performance appraisal process.

Discuss the influence of civil rights legislation on the use of performance appraisals.

Discuss the need for performance appraisals systems that consider work teams.

Chapter Summary


A thorough job analysis is the starting point for measuring and evaluating actual job performance. Performance appraisals involve the assessment of worker performance on the basis of predetermined organizational standards. Performance appraisals serve many important purposes, including being the basis for personnel decisions and a means of assessing performance. One way to categorize performance is in terms of objective and subjective criteria. Objective performance criteria are more quantifiable measurements of performance, such as the number of units produced or dollar sales. Subjective performance criteria typically involve judgments or ratings of performance. Concerns for a performance criterion include whether it is relevant to job success, called criterion relevance; whether the criterion contains elements that detract from the “pure” assessment of performance, termed criterion contamination; the degree to which a criterion falls short of perfect assessment of job performance, called criterion deficiency; and whether the criterion is usable, called criterion usefulness.

Research on ratings of job performance has examined who is making performance ratings. Self-appraisals are ratings or evaluations made by the workers themselves. Peer appraisals involve coworkers rating each other’s performance. In some instances, subordinates may rate the performance of their supervisors. Most common, of course, are supervisory ratings of subordinates’ performance. 360-degree feedback involves getting multiple performance evaluations, from supervisors, peers, subordinates, and customers.

There are a variety of methods for rating performance. Comparative methods of appraisal, such as the paired comparison and forced‑distribution techniques, directly compare one worker’s performance with that of other workers. Individual methods of appraisal do not make direct comparisons with other workers. Individual methods include checklists and forced choice scales and are easy-to-use methods of appraisal that require the evaluator simply to check off statements characteristic or uncharacteristic of a particular worker’s job performance. The most common method of individual performance appraisal involves the use of graphic rating scales,whereby an appraiser uses a standardized rating instrument to make a numerical and/or verbal rating of various dimensions of job performance. A specific type of rating technique, the behaviorally anchored rating scale (BARS),uses examples of good and poor behavioral incidents as substitutes for the scale anchors found in traditional rating instruments.

A major problem in rating job performance is caused by systematic biases and errors. Response tendency errors, such as leniency/severity or central tendency errors,lead to consistently good, bad, or average ratings, respectively. Halo effects occur when appraisers make overall positive (or negative) performance appraisals because of one known outstanding characteristic or action. Errors are also caused by giving greater weight to more recent performance, known as recency effects,and various attribution errors, including the actor–observer bias. The latter may lead an appraiser to place greater emphasis on dispositional factors and lesser emphasis on situational factors that may have affected performance.

A good performance appraisal consists of two parts: the performance assessment and performance feedback. The feedback should occur in a face‑to‑face situation in which the supervisor provides constructive information, encouragement, and guidelines for the improvement of the worker’s future performance.

Because performance appraisals are important to the worker’s livelihood and career advancement, there are considerable legal overtones to the appraisal process. Performance appraisals must be valid procedures, resulting from job analysis, that do not unfairly discriminate against any group of workers.

Because of the proliferation of work teams, organizations are developing team appraisals—evaluating an interdependent group of workers as a unit. The changing nature of work means that performance appraisal systems need to be constantly reviewed and revised to keep up with changes in jobs.

Chapter 7

Employee Training and Development

Learning Objectives


After reading and studying Chapter 7, students should be able to:

Describe the various areas of employee training.

Describe social learning theory and cognitive theories of learning.

Discuss the key issues in the development of employee training programs, including transfer of training, trainee readiness, and training program structure.

Discuss the assessment of training needs.

Describe the various employee training methods, including management training   techniques, and their respective advantages and disadvantages.

Describe the specific focuses of employee training programs.

Discuss the evaluation of employee training programs.

Discuss the influence of equal opportunity employment issues in the development of training programs.

Chapter Summary


Employee training is a planned effort by an organization to facilitate the learning, retention, and transfer of job‑related behavior. Training is not limited to new employees, but often involves various types of training and development programs offered throughout an employee’s career. Specific areas of employee training include new employee orientation, employee retraining and continuing education, retirement planning and career development, and training workers for international business.

An understanding of learning theories is fundamental in the design of employee training programs. For example, the concept of modeling, which is imitative of learning, is expressed in social learning theory. If training programs are to be successful, a number of key issues will affect their effectiveness. For example, transfer of training, or how the learning translates into use of the newly learned behaviors, and the job characteristics of the trainees, such as trainee readiness, must be taken into account. Finally, concern must be given to how training programs are structured and how they are conducted.

The first step in a successful employee training program is assessing training needs, which occurs on several levels. Organizational analysis considers the organization’s goals, resources, and the climate for training; task analysis evaluates the specific knowledge, skills, and abilities that a job requires; and person analysis examines the capabilities and deficiencies of the workers themselves. Training needs may also have to be conducted through demographic analysis, which is targeted toward assessing the training needs of specific groups, such as males versus females or the old versus the young. The second step involves establishing training objectives, and the third step focuses on employee training methods. The various training methods can be broken down into two general categories: on‑site methods and off‑site methods. Of on‑site methods, on-the‑job training isthe most widely used, consisting of putting inexperienced workers into the work site under the direction of an experienced teacher‑worker. Apprenticeship isa much more long‑term on‑site method, combining classroom training with supervised on‑the-job training. Vestibule training sets up a model training area adjacent to the actual work site, using professional trainers and hands‑on experience. Job rotation isa training technique designed to broaden workers’ experience by rotating employees among various jobs.

Off‑site methods include the common seminar method and audiovisual instruction that provides graphic depictions of work activities. A technique that uses aspects of both audiovisual technology and concepts of social learning theory is behavior modeling training,a method of exposing trainees to videotapes of models engaged in appropriate work behaviors and then having them practice the observed behaviors. Simulation techniques involve classroom replications of actual work stations. Programmed instruction isa form of self‑paced training in which workers can learn at their own pace. A modern, sophisticated version of programmed instruction is computer-assisted instruction (CAI).

Several specific methods and techniques used in management training include problem-solving case studies, role-playing, and management games, which all involve simulations of actual management situations. Action learning is a complicated form of training in which teams are formed to perform a special project or assignment that benefits the organization, while the team members learn and develop managerial skills. 360-degree feedback is also used as a management development tool. Mentoring is a management training program in which an inexperienced worker is assigned to an experienced mentor who serves as a role model.

Once training programs have been implemented, the evaluation of their effectiveness is very important. The first step in evaluation is to determine criteria of training effectiveness; four types are typically used: reaction criteria, learning criteria, behavioral criteria, and results criteria. Once the criteria are established, basic research methods and design should be used to evaluate the training programs. The pretest–posttest design isa common but inadequate means of assessing a program in which measures of criteria are collected both before and after a training intervention, allowing for a comparison of changes in learning or work behaviors. However, this method is inadequate because of the lack of a good comparison group. Better evaluation designs use both a training group and a comparison, or control, group that is not subjected to the training program. A highly complex and sophisticated evaluation design is the Solomon four‑group design,which uses two training groups and two control groups.

Finally, employee diversity and certain legal issues must be considered in the design and implementation of training programs. Training or educational prerequisites and the training programs themselves must not unfairly discriminate on the basis of ethnicity, age, sex, or disability.

Chapter 8


Learning Objectives


After reading and studying Chapter 8, students should be able to:

Define motivation and discuss its importance to workers and work organizations.

Discuss the basic need theories of motivation and their respective strengths and weaknesses.

Discuss the various behavior-based theories of motivation and their respective strengths and weaknesses.

Discuss the various job design theories of motivation and their respective strengths and weaknesses.

Discuss cognitive theories of motivation and their strengths and weaknesses.

Compare and contrast the various types of theories of worker motivation.

Discuss the relationship between worker motivation and job performance, including the influence of various individual and situational characteristics.

Chapter Summary


Motivation isthe force that energizes, directs, and sustains behavior. The many theories of work motivation can be classified as need theories, behavior-based theories, job design theories, and cognitive theories. Maslow’s and Alderfer’s basic need theories propose that needsare arranged in a hierarchy from the lowest, most basic needs to higher‑order needs, such as the need for esteem or self-actualization. McClelland’s achievement motivation theory proposes that the three needs important in work motivation are needs for achievement, power, and affiliation, which can be measured with a projective test known as the Thematic Apperception Test. Unlike Maslow’s and Alderfer’s need theories, McClelland’s theory has been used extensively in work settings to encourage worker motivation.

Behavior-based theories include both reinforcement and goal-setting approaches to motivation. Reinforcement theory stresses the role that reinforcers and punishments play in motivation. Reinforcement theory is evident in the various schedules used to reward workers. The theory is applied to increase motivation through organizational behavior modification programs. Goal‑setting theory emphasizes setting challenging goals for workers and getting workers committed to those goals as the keys to motivation.

Job design theories of motivation stress the structure and design of jobs as key factors in motivating workers. Herzberg’s two‑factor theory focuses on job satisfaction and dissatisfaction as two independent dimensions important in determining motivation. Motivators are factors related to job content that, when present, lead to job satisfaction. Hygienes are elements related to job context that, when absent, cause job dissatisfaction. According to Herzberg, the presence of hygienes will prevent job dissatisfaction, but motivators are needed for employee job satisfaction and hence motivation. Hackman and Oldham have proposed the job characteristics model, another job design theory of motivation, which states that five core job characteristics influence three critical psychological states that in turn lead to motivation. This model can be affected by certain moderators, including growth need strength, the notion that certain workers feel a need to grow in their jobs. Workers must be high in growth need strength if programs such as job enrichment are indeed going to produce motivation. Job enrichment, which involves redesigning jobs in order to give workers greater responsibility in the planning, execution, and evaluation of their work, is the application that grew out of the job design models of motivation.

Cognitive theories of motivation emphasize the role that cognition plays in determining worker motivation. Equity theory states that workers are motivated to keep their work inputs in proportion to their outcomes. According to equity theory, workers are motivated to reduce perceived inequities. This perception of equity/inequity is determined by comparing the worker’s input–outcome ratio to similar comparison others. Expectancy theory (with its three core components of valence, instrumentality, and expectancy) is a complex model, which states that motivation is dependent on expectations concerning effort–performance–outcome relationships.  

Motivation is indeed a complex construct.  Yet despite the importance given to worker motivation in determining work performance, numerous variables related to systems/technology, individual differences, group dynamics, and organizational factors may all affect work performance directly, without regard to worker motivation. Thus, although motivation is important, it is only one determinant of work behavior.

Chapter 9

Positive Employee Attitudes and Behaviors

Learning Objectives


After reading and studying Chapter 9, students should be able to:

Understand employee engagement as a construct of interest to industrial/organizational psychology.

Understand the numerous positive outcomes of employee engagement for the worker, the organization, and society as a whole.

Define job satisfaction, including the different approaches to its definition.

Discuss the measurement of job satisfaction and the difficulties involved, as well as the various standardized measures of job satisfaction.

Discuss the relationship between job satisfaction and job performance.

Define organizational commitment and its relationship to job satisfaction and performance.

Define employee absenteeism and turnover and how they are influenced by job satisfaction and organizational commitment.

Discuss the various ways to increase worker job satisfaction.

Discuss positive employee affect and behaviors and how they relate to work performance.

Discuss how positive employee affect and behaviors may influence the well-being of society as a whole.

Chapter Summary


Employee engagement, a psychological state marked by vigor, dedication, and absorption in one’s work and work organization, is linked with many positive outcomes for workers and organizations. Engaged employees have positive attitudes toward work and the organization, engage in positive work behaviors, and are motivated and productive. Employee engagement is positively related to job satisfaction and organizational commitment, and isnegatively related to intentions to leave a work organization.

Job satisfaction, which involves the positive feelings and attitudes one has about a job, can be conceptualized in overall, or global, terms or in terms of specific com­ponents or facets and can be measured through interviews or with self‑report instruments. The most widely used self‑report measures are the Minnesota Satisfaction Questionnaire (MSQ) and the Job Descriptive Index (JDI). Research indicates that there is a slight positive relationship between job satisfaction and job performance, although the link may be moderated by a third variable, such as the receipt of work rewards. Job satisfaction is positively correlated with organizational commitment, or employees’ feelings and attitudes about the entire work organization.

Both job satisfaction and organizational commitment tend to be negatively correlated with voluntary employee absenteeism; however, the relationships are complex and difficult to decipher, partly due to the difficulty involved in distinguishing voluntary absenteeism from involuntary absenteeism. Job satisfaction and organizational commitment are also related to voluntary employee turnover.

Programs designed to increase job satisfaction include changes in job structure through techniques such as job rotation, job enlargement, and job enrichment. Other satisfaction‑enhancing techniques suggest changing the pay structure by using methods such as skill‑based pay, pay‑for‑performance programs like merit pay, gainsharing, or profit sharing, which are sometimes contingent on effective group performance. Flexible work schedules, such as compressed work weeks, and flextime improve satisfaction by giving workers greater control over their jobs. Still other methods of improving satisfaction involve increasing job‑related benefits.

Positive employee behaviors beyond the normal job routine are termed organizational citizenship behaviors,and these are positively related to desirable work outcomes. Most recently, research has focused on the role of positive affect in employee behavior, with job satisfaction mediating the relationship between affect and work outcomes. This emphasis on positive employee attitudes, emotions, and behaviors reflects I/O psychology’s concern with both organizational functioning and employee well-being.

Chapter 10

Worker Stress and Negative Employee Attitudes & Behaviors

Learning Objectives


After reading and studying Chapter 10, students should be able to:

Define worker stress and discuss the various sources.

Define and identify examples of different sources of stress.

Discuss how different sources of stress are related to important work outcomes.

Describe specific situational and dispositional sources of stress, including the type A behavior pattern, work–family conflict, self-efficacy, susceptibility to stress, and organizational sources of stress.

Discuss the measurement of worker stress.

Discuss job burnout, its symptoms and pattern, and its effects on work outcomes.

Discuss the various strategies used to cope with stress and their respective strengths and weaknesses.

Describe counterproductive work behaviors and the possible causes.

Describe the types of programs available for employees with substance abuse problems.

Chapter Summary


Although there is a great deal of disagreement over definitions of stress, worker stress can be defined as physiological or psychological reactions to an event that is perceived to be threatening or taxing. Stress is actually a perception, so there is tremendous individual variation in what one perceives to be stressful. Negative stress, or distress, can cause stress-related illness, and it can affect absenteeism, turnover, and work performance.

Certain occupations, such as air traffic controllers and health care providers, are stereotypically associated with high levels of stress. Worker stress can also come from organizational sources or individual sources, which are commonly classified as situational or dispositional sources, respectively. Organizational sources may include having too much to do, work overload, or too little to do, underutilization. Job ambiguity, which occurs when job tasks and responsibilities are not clearly defined; job uncertainty, which occurs from inadequate performance feedback or job insecurity; and interpersonal stress, which arises from relations with coworkers, are other organizational sources of stress, as are workers’ sense of a lack of control over their jobs, organizational change, and work–family conflict. Individual sources of work stress include the worker’s experience of traumatic life events and susceptibility to stress, such as the lack of hardiness, or resistance to stress‑related illnesses; certain personality characteristics such as the type A behavior pattern, which is the coronary-prone personality; and self-efficacy, workers’ beliefs in their own competence and abilities on the job.

Attempts to measure stress have included physiological measures, self-report assessments, the measurement of stressful life events, and the match between worker characteristics and the demands of the work situation, referred to as the person–environment fit approach. Stress has been shown to be related to certain physical illnesses such as ulcers, high blood pressure, and heart disease. These stress‑related illnesses as well as stress itself are tied to rates of employee absenteeism and turnover and to job performance, although the relationship between stress and performance is complex. Long‑term stress can lead to job burnout, a multidimensional construct that relates to one’s tendency to withdraw from work.

Strategies for coping with work stress can be divided into individual coping strategies and organizational coping strategies. Individual strategies include programs of exercise, diet, systematic relaxation training, meditation, biofeedback, time management, work planning, and cognitive coping strategies. Organizational strategies include improving the person–job fit, offering better training and orientation programs, giving workers a sense of control over their jobs, eliminating punitive management styles, removing hazardous work conditions, and improving organizational communication.

Counterproductive work behaviors, which can result from stress, frustration, feelings of inequality, or personality differences, such as trait negative affectivity, are destructive behaviors designed to harm employers or fellow employees. An important concern of management is reducing counterproductive work behaviors and dealing with alcohol and drug use in the workplace. One strategy is to offer employee assistance programs to help workers deal with alcohol and drug problems, as well as personal issues and workplace stress.

Chapter 11

Communication in the Workplace

Learning Objectives


After reading and studying Chapter 11, students should be able to:

Describe the communication process and define its various components.

Discuss the various factors that influence the effectiveness of communication.

Discuss the occurrence of nonverbal communication in work settings.

Describe the flow of communication in work settings and the influence of the amount of communication in different directions on worker job satisfaction.

Discuss barriers to the effective flow of organizational communication.

Describe the various communication networks, including the effects of centralization on work outcomes.

Discuss the formal and informal lines of communication as they occur in work organizations.

Generally discuss the influence of organizational communication on work outcomes, including in terms of the individual worker and the organization as a whole.

After reading and studying Chapter 11, students should be able to:

Describe the communication process and define its various components.

Discuss the various factors that influence the effectiveness of communication.

Discuss the occurrence of nonverbal communication in work settings.

Describe the flow of communication in work settings and the influence of the amount of communication in different directions on worker job satisfaction.

Discuss barriers to the effective flow of organizational communication.

Describe the various communication networks, including the effects of centralization on work outcomes.

Discuss the formal and informal lines of communication as they occur in work organizations.

Generally discuss the influence of organizational communication on work outcomes, including in terms of the individual worker and the organization as a whole.

Chapter Summary


Communication iscrucial for effective organizational performance. The basic communication model begins with the sender, who is responsible for encoding the message, which involves choosing some mutually understood code for transmitting the message to another person. The sender also selects a vehicle for communication, or the channel. The task of the receiver isto decode the message in an effort to understand its original meaning. The receiver also sends feedback to indicate that the message was received and understood. Any factors that disrupt the effective flow of communication from sender to receiver are referred to as noise.

Research on the communication process has examined the factors that can influence communication effectiveness. Source factors are variables related to the sender, such as status, credibility, and communication skills, which can influence the effectiveness of communication. Channel factors are variables related to the actual communication vehicle that can enhance or detract from the flow of communication from sender to receiver. In verbal communication, semantic problems, or the use of technical language termed jargon, can sometimes disrupt the communication flow. Audience factors, such as the decoding skills and attention span of the receiver, can also play a role in the communication process.

Nonverbal communication has a subtle but important effect on com­munication in work settings. It can be used as a substitute for verbal communication, to enhance verbal messages, or to send true feelings. Receivers may also use nonverbal cues as an additional information source or as a means of forming impressions about people. A Pygmalion effect can occur if a sender holds positive expectations about a worker’s performance and subtly influences that worker’s performance via nonverbal communication.

Communication can flow in three directions through the organizational hierarchy: upward, downward, or laterally. Downward communication typically involves messages sent from superiors to subordinates, upward communication flows from the lower levels of the organization, and lateral communication occurs between persons at the same status level. Filtering, censoring, and exaggeration are three types of distortion that often disrupt the effective flow of organizational communication.

Much of our knowledge of organizational communication patterns comes from research conducted on communication networks, which can be grouped into two types: centralized, in which messages move through central members, and decentralized, in which communication paths are not directed through specific network members. The formal communication patterns in organizations are represented in the organizational chart, or organigram. The informal lines of communication, or grapevine, are illustrated in a sociogram. The formal lines of communication carry messages that are sanctioned by the organization, whereas the grapevine is an informal network through which messages are passed from worker to worker. Managers are sometimes wary of the grapevine because they see it as a source of rumors, although research indicates that the grapevine can be a highly accurate and important information network.

Research suggests that greater and more effective organizational communication is linked to improved levels of performance and job satisfaction. Moreover, there may be links between open, flowing organizational communication and rates of employee absenteeism and turnover.

Chapter 12

Group Processes in Work Organizations

Learning Objectives


After reading and studying Chapter 12, students should be able to:

Define work groups and teams, discuss the development of roles and norms, and define organizational socialization.

Discuss the basic group processes of conformity, cohesiveness, group efficacy, cooperation, and competition.

Discuss conflict as it occurs in work groups and organizations, the various levels of conflict in work settings, and sources of conflict.

Discuss the various methods of managing and stimulating conflict and their purposes.

Discuss group decision-making processes and their influence on worker satisfaction and other work outcomes.

Discuss the effectiveness of various types of group decision making.

Define and describe brainstorming, groupthink, and group polarization.

Describe teams and the characteristics associated with an effective team.

Chapter Summary


A group istwo or more individuals engaged in social interaction to achieve some goal. Teams consist of interdependent workers with complementary skills working toward a shared goal. Within work groups, members play various roles, which are patterns of behavior adopted based on expectations held about the function of a position. Work groups also develop norms, or rules, to help govern member behavior. The process of organizational socialization refers to the integration of individuals into work groups and organizations through learning work procedures, work roles, and organizational and group norms.

Certain basic processes occur in all work groups. One is conformity, the process of adhering to and following group norms. Another basic process, cohesiveness, isthe degree of attraction among group members. A number of factors, such as group size, member status, member stability, and member similarity can influence group cohesiveness.

Two common yet opposing forces that are evident in all groups are cooperation and competition. Cooperation is critical to coordinating the activities of work group members.  However, social loafing can occur when workers in groups put in less effort than they would when working alone. Competition can lead to conflict, which is behavior by one party that is designed to inhibit the goal attainment of another party. Conflict can occur at a number of levels within work organizations, taking the form of intraindividual, interindividual, intra­group, intergroup, or inter-organizational conflict. It can arise from various sources, most notably from a scarcity of desired resources and from individual and group interdependence. The effect of conflict can be both positive and negative; it is positive when it motivates workers or stimulates them to be creative or innovative, and negative when it disrupts group work activities and social relationships. Managing conflict involves regulating the level of conflict, resolving it when it is negative and stimulating it when it is positive or productive. A number of conflict resolution and conflict stimulation strategies are used in organizations.

An important function in work groups is group decision making, which has several advantages and disadvantages over individual decision making. While group decision making is slow and conflict ridden, it can lead to high‑quality decisions and greater member satisfaction with and commitment to the decision. Brainstorming is a group process generating creative ideas or solutions through a noncritical, nonjudgmental process. A type of breakdown in the effectiveness of decision-making groups is termed groupthink, which is a concurrence-seeking tendency that overrides the ability of a cohesive group to make critical decisions. Group polarization isthe tendency for groups to make more extreme decisions, either more risky or more cautious, than individuals.

For teams to be effective, careful attention must be given to the appropriateness of the task, the characteristics of the team members, and organizational support for the team. The use of self-managed work teams where members work on a complete task, product, or service, are on the rise.

Chapter 13


Learning Objectives


After reading and studying Chapter 13, students should be able to:

Define leadership and describe its role in work groups and organizations.

Discuss the various universalist theories of leadership and their respective strengths and weaknesses.

Discuss the various behavioral theories of leadership and their respective strengths and weaknesses.

Discuss the various contingency theories of leadership and their respective strengths and weaknesses.

Define and evaluate the transformational and charismatic theories of leadership.

Compare and contrast the various types of leadership theories and their applicability to leadership training.

Discuss and evaluate the various strategies used in leadership training.

Discuss the concept of shared leadership and other substitutes for leadership.

Chapter Summary


Leadership is the ability to direct a group toward the attainment of goals. Leadership theories can be divided into three categories: universalist theories, behavioral theories, and contingency theories. The great man/woman theory, a universalist theory, holds that some people are natural, born leaders. The trait theory specifies certain personality traits, or characteristics, that are common to all effective leaders. These universalist theories suffer from the facts that they are simplistic and that they focus on individual leader characteristics.

The behavioral theories of leadership are typified by studies conducted at Ohio State and University of Michigan that looked directly at leader behavior, rather than at inferred leader characteristics. Two dimensions of leader behavior emerged: initiating structure (also called task‑oriented behaviors),which focuses on work task production, and consideration (also known as relationship‑oriented behaviors),which emphasizes interpersonal relationships among workers. The Leadership Grid is an application of the findings from the behavioral theories—a program that stresses both task‑oriented and relationship‑oriented behaviors as the keys to leader success.

Next to emerge were the contingency theories of leadership. Fiedler’s contingency model states that effective leadership depends on a match between the leader’s style and the favorableness of the work situation. Leader style is assessed through the least preferred coworker (LPC) measure. Task‑oriented leaders are most effective in either very favorable or very unfavorable situations, whereas relationship-oriented leaders do better in moderately favorable situations. The favorability of situations in Fiedler’s model is determined by three variables: leader–member relations, task structure, and the leader’s position power. The path–goal theory asserts that the leader is a facilitator who chooses the type of behavior that will most help the work group to achieve their goals. According to the path–goal theory, the leader can adopt four types of leader behavior: directive, achievement‑oriented, supportive, or participative.

The decision-making model sees the lead­er’s main role as making work‑related decisions. This prescriptive model contains a decision tree framework for the leader to follow to decide the appropriate decision‑making strategy (ranging from autocratic to demo­cratic) to use in a particular situation. The leader‑member exchange model examines the quality of the relationship between the leader and each subordinate, which leads to a more precise determination of work outcomes. Finally, transformational and charismatic leadership theories focus on exceptional characteristics or qualities that leaders possess that inspire loyalty in followers and motivate them to achieve extraordinary goals.

The application of leadership theories involves one of two strategies: instituting leadership training programs or redesigning the job to fit the leader. The majority of the theories advocate leadership training, either by teaching specific leader behaviors (for example, task oriented or relationship oriented) or by training leaders to diagnose situations that call for task‑oriented or relationship‑oriented behaviors. Job redesign usually involves changing characteristics of the situation to fit the leader’s typical style or orientation. However, work situations that are amenable to such job redesigns may be limited. In other situations, particularly where roles and procedures are well defined, substitutes for leadership, such as self-managing work teams or shared leadership, may be appropriate.

Chapter 14

Influence, Power, and Politics

Learning Objectives


After reading and studying Chapter 14, students should be able to:

Define influence, power, and politics and differentiate their form and uses in work organizations.

Discuss the various categories of influence tactics and the effect of worker and organizational characteristics on their use.

Discuss the various sources of organizational and individual power.

Discuss differences in power distribution in organizations, the influence of power on work outcomes, and ways to increase power in work situations.

Discuss power and its relationship to leadership.

Define functional and dysfunctional organizational politics and various types of political behaviors.

Discuss the causes of organizational politics and evaluate the methods used in managing organizational politics.

Describe and evaluate contingency approaches to understanding organizational power and politics.

Chapter Summary


Influence, power, and politics are important processes in work groups and organizations. Influence is the use of informal social strategies to get another to perform specific actions. Power is the use of some aspect of a social relationship to compel another to perform an action despite resistance. Organizational politics is the use of power to achieve selfish, or self‑serving, goals. A wide variety of influence tactics are commonly employed in work organizations. One such strategy, ingratiation, occurs when an individual tries to influence others by increasing personal appeal by doing favors or through flattery.

There are five major power bases, or sources of power: coercive power, which involves the use or threat of punishment; reward power, which is the ability to give organizational rewards to others; legitimate power, which involves the formal rights and authorities that accompany a position; expert power, which derives from an individual’s work‑related knowledge, skill, or expertise; and referent power, which comes from the fact that an individual is respected and admired by others. Research indicates that the various power bases have different effects on important organizational outcomes, such as work performance and job satisfaction.

Organizational political behaviors can be divided into two categories. The first, functional politics, is political behavior on the part of an organizational member that helps the organization to attain its goals. The second, dysfunctional politics, inhibits the organization’s goal attainment. Organizational politics arise from a variety of sources, including competition for power and resources, subjective performance appraisals, delay in measurement of work outcomes, compensation for inadequacies, and increased group decision making. Research has attempted to categorize political behaviors and recognize conditions under which they are likely to occur. One goal of management is to try to eliminate dysfunctional political behavior by eliminating conditions that give rise to it.  The most recent approaches to studying organizational power and politics take a contingency approach, examining the interaction of individual power characteristics, the target of the power play, and the situational context.

Chapter 15

Organizational Structure, Culture, and Development

Learning Objectives


After reading and studying Chapter 15, students should be able to:

Define organizational structure and its various dimensions and how organizational structure influences work outcomes.

Describe functional and divisional organizational structures and their respective strengths and weaknesses.

Describe the influence of centralization on organizational structure and its effects on decision making and work outcomes.

Describe the various traditional organizational structures, including their respective strengths and weaknesses.

Describe the various nontraditional organizational structures, including their respective strengths and weaknesses.

Compare and contrast traditional and nontraditional organizational structures, including their influence on work outcomes.

Discuss and evaluate contingency models of organizational structure.

Define organizational culture and its influence on work outcomes.

Discuss the societal influences on organizational culture.

Describe the ways to measure organizational culture.

Define organizational development and evaluate the various organizational development techniques.

Chapter Summary


Organizational structure is the arrangement of positions in an organization and the relationships among them. Organizational structures can be generally classified into traditional and nontraditional forms. Traditional organizational structures tend to be stable and rule driven, whereas nontraditional structures are characterized by their flexibility, adaptability, and lack of formal authority lines. Important dimensions of organizational structure are the number of authority levels in an organization, or chain of command, and the number of workers reporting to a single work supervisor, or the span of control. Organizations can also be divided by the kinds of tasks performed—a functional structure—or by the types of products produced or customers serveda divisional structure. Decision-making power can either be concentrated at the top levels of the organization (centralization) or dispersed throughout the organization (decentralization).

The bureaucracy and the line-staff organization typify the traditional structure. The bureaucracy is a structure based on authority relationships among organizational members that operate through a system of formal rules and procedures. The line‑staff organization is a formal structure in which the line executes organizational objectives and the staff isdesigned to support the line. Nontraditional organizational structures are exemplified by the team organization, a permanent team of competent workers designed for maximizing organizational adaptability, and by the project task force, a more temporary structure. A matrix organization is a combination of both product and functional organizational designs. The most recent approaches to organizational structure are contingency models whereby the most effective type of structure depends on the fit between structure and the external or internal environment of the work organization.

Organizational culture refers to the shared values, beliefs, assumptions, and patterns of behavior in organizations. Organizational culture derives from many sources, it can be stronger in some organizations than in others, and it has important influences on organizational behavior. Societal/national influences on organizational culture can be very strong. Recently, a great deal of attention has been given to developing methods for assessing organizational culture.

Organizational development (OD) isthe process of preparing for and managing change in organizations. OD programs use a consultant who is commonly called a change agent. OD programs usually occur in phases. One model for such a program is action research, which involves collecting data, diagnosing organizational problems, and developing strategies to take action to solve them. A variety of interventions are used in OD programs, including survey feedback, a technique of using data about organizational members’ feelings and concerns as the basis for planned change; t-groups, a process of increasing workers’ awareness of their own and other members’ behavior; team building, the development of teams of workers to focus on ways to improve group performance; process consultation, a long‑term method of helping an organization to develop problem‑solving strategies; management by objectives (MBO), a goal‑setting technique designed to increase worker commitment to the attainment of personal and organizational goals; and quality circles,which are groups of employees who meet regularly to discuss quality-related work problems. Evaluation of OD programs indicates that they can be effective for improving certain aspects of organizational effectiveness, although neither their implementation nor their evaluation is easy.