Module 6.0 Organizational Psychology

1. 6 Module 6.0 Organizational Psychology

2. Introduction • Organizational Psychology (OP) is defined as the application of the methods, facts, and principles of the science of behaviour and mental processes (cognitive) to people at work • As a science, psychology relies on the observation and experimentation, deal with human behaviour that can be observed objectively. • It is about intangibles qualities such as motives, emotions, needs, perceptions, thoughts, and feelings e.g leadership, motivation…… internal drive, mind, action.

3. Introduction/Importance • Began in the early twentieth century and grew under the impetus of the two world wars….selection/placement • Hawthorne studies of the 1920s and 1930s….Elton Mayo • OP developed in 1960s in response to concern about the organizational climate in which work takes place. • Continuing challenges of globalization of work, demand of new multi-skills, ethics, and general diversity of workforce, and the changing nature of work itself. • Work provides a sense of personal identity, defines social status, self esteem, and satisfies the need to belonging to a group.

4. Introduction/Importance • Workforce diversity, multi-cultures, values, beliefs, perceptions, expectation, generational gaps. • Different generation/Different values a) Silent G (1922-1945, loyal, CMCU, cradle to grave), b) Baby Boomers (1946-1964, competitive, workaholic, sacrifice…), c) Gen X (1965-1979, most praised, self-centred, require more attention, constant adulation, feedback, and recognition from bosses, high self esteem, entrepreneurial, enthusiastic, little loyalty to employers, switch jobs or career path every few years), d) Generation Y (job that offer flexible schedule, require creativity, work/coworkers should be fun, any impact to the world)

5. HR Application and Process OP is widely used in HRM mainly: • Employee Selection stage/process • Recruitment and Interview • Training and Talent Development • Performance Appraisal • Leadership • Motivation and Job Satisfaction • Safety and Health • Stress Management • Consumer psychology

6. Performance Appraisal-OPTools and Techniques • Performance appraisal is about past work, present performance and potential of an employee • OP is about human behaviour, mental process, and the intrinsic values such as motivation, leadership, expectation, and perception. • Tools and techniques of performance appraisal utilizing HR psychology are as follows: 1) in-basket test, 2)leadership group discussion, 3) simulated work exercises, 4) role play, 5) presentation 6) Behavioral anchored rating scale (BARS)

7. Performance Appraisal-OPTools and Techniques…cont 7) Performance tests and observation 8) Management by objectives 9) Other psychological appraisals.. In-depth • interview, psychological test, intellectual, • motivational, emotional, discussion with • superiors/peers, other work related characteristics

8. Employee Selection Tools

9. Employees Selection Tools

10. Evaluating Employees • This is an ongoing process and HR psychology is critical • Psychologist are engaged and it is costly/…cost benefit 1) Interest test 2) Aptitude test….measure specific abilities 3) Personality test…. Personal treat and feeling 4) The big five personality factor a) Neuroticism (worried, insecure, nervous), b) Extraversion (sociable, talkative, fun-loving, affectionate), c) Openness (original, independent, creative, daring,), d) Agreeableness (good-nurturedsofthearted, trusting, courteous), e) Conscientiousness (careful, reliable, hardworking, organized) 5) Proactivity .. take action, action oriented 6) Integrity test…. honesty

11. HR Psychological Testing • It is more than a list of questions to be answered. • A proper psychological test is standardized, objective, based on sound norms, reliable, and valid • Standardization refers to the consistency or uniformity of the conditions and procedures for administering a psychological test • Objectivity refers primarily to the scoring of the test results. Free of subjective judgment or biases. • Test Norm refers to the distribution of scores of a large group of people similar in nature to the job applicants being tested.

12. HR Psychological Testing • Reliability refers to the consistency or reliability of response on the test…… the same group of people takes the test today, then again in one week’s time, is the score the same/differ.. .? Reliability coefficient of…. • Validity is the most important requirement for psychological test or any other selection device; that is the test must be shown to measure what it is intended to measure. Validity coefficient of +.30 to +.40 .This is criterion-related validity • Test validation is expensive but proper validation procedures will more than pay for themselves. • Validity generalization…. Once established the validity of a test can be generalized

13. Issues of Organizational Psychology

14. Psychology has been victimized by quackery, that is by illicit and fraudulent practice of psychology by people who have little or no professional training. Untrained pseudo psychologists set themselves as “counselors” and “therapists” has often do great harm to emotionally persons who are seeking help

15. Issues • Particularly apparent in clinical psychology • Unethical behavior, quick money…… the legitimate practitioner psychologist services affected/ what more for those who undergone for the test/exercise • Illegal unless they have met the licensing or certification requirement…… credential and certification • Corporation must exercise due care when engaging or seeking the services of psychologists • Educational and professional qualifications of anyone called psychologist must be examined carefully

16. Communication • Specialized technical jargon not understood by people outside the discipline. • Effort must be made to communicate effectively their facts, activities and research results with users. • Recommendations will be of no value to an organization if they cannot be comprehended. • Psychologists must be able to present their contribution in a way that can be understood by those who are using their services.

17. Employee Selection Utilizing HR Psychology in Shipping Company

18. SELECTION INTERVIEWS AND EXTERNAL, INTERNATIONAL RECRUITMENT PROCESS

19. International Recruitment • Complexities…..immigration barriers, employment laws, cost of living differentials, moving families, logistics, income tax requirement • Employment practices, employment contract different, cultural expectations lead to unforeseen problem. • Cultural conflict. Historical animosities between different factions within the country, whether native tribes, element of formal caste system, or enmity by virtue of long-standing traditions

20. Multi Rating System • Rating scale Excellent Good Acceptable Fair Poor 5 4 3 2 1 1. Dependability 2. Initiative 3. Attitude 5. Cooperation 6. Communication 7. Problem Solving 8. Critical Thinking ……… 20. Quality of work Result Total

21. Multi Rating System…cont b) Behavioral anchored rating scale (BARS) c) Psychological tests.. In-depth interview, psychological test, intellectual, motivational, emotional, other work related characteristics d) Assessment centre…, simulated work exercises, background histories, in-depth interview

22. THANKYOU