REVIEWER

INDUSTRIAL
ORGANIZATIONAL
PSYCHOLOGY
PREPARED BY :

MHAE ANG CRUZ

INDUSTRIAL ORGANIZATIONAL PSYCHOLOGY

2 MAJOR DOMAINS

1. I / INDUSTRIAL PSYCHOLOGY side concerned with PERSONNEL matters

-with the “I” side more concerned with
maximizing effi ciency, safety, and
cost effectiveness,

2. O / ORGANIATIONAL PSYCHOLOGY including the topic of management

styles , worker's attitude & behavior & leadership .
- the “O” side more targeted at the human relations processes that contribute to feelings of fulfillment

1 .ORIGINS OF I/O PSYCHOLOGY

3 IMPORTANT INFLUENCES IN THE DEVELOPMENT OF I/O

1. The advent of Scietific Management

2. Ergonomics
3. and Human Relation approch to Management

1. THE ADVENT OF SCIENTIFIC MANAGEMENT : The managerial philosophy that

emphasizes the worker as a welloiled machine and the determination of the most efficient
methods for performing any workrelated task.
 Frederick Winslow Taylor, the mastermind of the idea of scientific management. Taylor (1911)
suggested the following guidelines,which have continuing influence today:
 Jobs should be carefully analyzed to identify the optimal way to perform them.
 Employees should be hired according to the characteristics associated with success at
a task. These characteristics should be identifi ed by examining people who are already
successful at a job.
 Employees should be trained at the job they will perform.
 Employees should be rewarded for productivity to encourage high levels of performance.

2. ERGONOMICS ( HUMAN FACTORS ) : A field that combines engineering and psychology

and that focuses on understanding and enhancing the safety and effi ciency of the human–machine
interaction.

 Ergonomics was born during World War II, when the military became occupied with
designing jets with controls that were both effi cient and safe.

 The field of ergonomics is the origin of the term applied psychology, as those who conducted
this work during the war were the fi rst to apply the principles of psychological research to the
workplace setting.

 ergonomics specialists represent a range of expertise, from perception, attention, and cognition
(individuals who might have good ideas about the placement of buttons on a control panel or
the preferred coloring of those buttons), to learning (individuals who might design training
programs for the use of machines), to social and environmental psychologists
(individuals who might address issues such as living in a constrained environment like that of the space
shuttle).


3. The Hawthorne Studies and the Human Relations Approach to Management :

Hawthorne effect : The tendency of individuals to perform better simply because of being
out and made to feel important.

human relations approach : A management approach emphasizing the psychological

characteristics of workers and managers, stressing the importance
of such factors as morale, attitudes, values, and humane treatment
of workers.

 Human relations approaches to management stress positive interpersonal relations among co-
workers, teamwork, leadership, job attitudes, and the social skills of managers. These methods
emphasize that fulfilling work meets other important human needs beyond purely economic
considerations (Latham & Budworth, 2007)

2 Industrial Psychology

Describe the perspectives and emphases of industrial psychology.

Industrial psychology is the older of the two sides of I/O psychology. Industrial psychology
takes a company-oriented perspective and focuses on increasing effi ciency and productivity
through the appropriate use of a fi rm’s personnel, or employees—its human resources (Koppes,
2007; Spector, 2006). The fi eld of industrial psychology has a four-pronged emphasis:

1. Job analysis and job evaluation: Organizing and describing the tasks involved in a job
and determining the position’s monetary value.

2. Employee selection: Matching the best person to each job.

3. Training : Bringing new employees up to speed on the details of the position.

4. Performance appraisal: Evaluating whether the person is doing a good job.

JOB ANALYSIS AND JOB EVALUATION

Job analysis is the process of generating a description of what a job involves, including the
knowledge and skills that are necessary to carry out the job’s functions (Wilson, 2007).

THREE ESSENTIAL ELEMENTS OF AN EFFECTIVE JOB ANALYSIS

1. First, the analysis must follow a systematic procedure that is set up in advance
2. Second, it must break the job down into small units so that each aspect of the job can be easily
understood.
3. Third, the analysis should lead to an employee manual that accurately characterizes
the job.

A job analysis can focus on the job itself or on the characteristics of the person who is suited for the job
(Peterson & Jeanneret, 2007). A job-oriented description outlines what the job entails (say, analyzing
scientifi c data) and what it requires (say, expertise with both basic computer programs and statistics
software). A person-oriented job analysis involves what are sometimes called

KSAOs (or KSAs ) Common elements in a person-oriented job analysis;

K- NOWLEDGE
S- KILLS
A- BILITIES
O- THER CHARACTERISTICS

 Knowledge, of course, refers to what the person needs to know to function in the job.
 Skills are what the individual must be able to do.
 Abilities include the person’s capacity to learn the job and to gain new skills.
  Other characteristics may also be important. For the job of professional landscaper, enjoying
outside work may be an essential “O,” and for a child-care worker the ability to handle frequent diaper
changes and to chase energetic toddlers may be required.

FUNCTION OF A JOB

Essential functions are the fundamental, necessary tasks and duties of a job as defined by the
employer, usually in writing.
For example,:
a day-care worker must be capable of being physically active, and a data analyst must be
able to utilize and apply advanced statistical techniques.

Nonessential functions are aspects of the job that may not be necessary, although they are desirable.
For example,:
a pizza delivery person must be able to drive and must have a valid driver’s license, but
for a kitchen worker at the pizza shop or the health inspector who evaluates the
restaurant for health hazards, driving may be a nonessential function.

Job analysis plays an integral role in all HR functions and activities. Job analysis is the foundation on
which all HR practices are built. Without a thorough understanding of how jobs are performed,
effective HR practices would be impossible.

HR planning: It is critical to identify the skills needed to accomplish the work that will help achieve
organizational goals. The organization’s structure relies on an understanding of what jobs are done,
how they are done, how jobs are interconnected, and what tools and equipment will be needed.
Staffing: Without a detailed job description and a list of required qualifications, it would be impossible
to recruit and select highly qualified employees. Every step of the staffing process depends on a
thorough understanding of what people are being hired to do and what knowledge, skills, abilities and
other attributes (KSAOs) they must have to effectively fulfill their roles.

Training: The tasks identified by job analysis pinpoint the knowledge, skills and abilities required to
perform the duties. Training must be assessed in the context of helping employees perform their job
duties effectively.

Performance management: Job analysis leads to identification of performance standards. Job

performance must be evaluated with an understanding of the assigned duties and at the prescribed level.
The job description and performance standards that flow from job analysis provide a common
framework for employees and supervisors to assess work performance.

Safety and health: Job analysis helps identify work hazards inherent in the job, any required personal
protective equipment and training needs. Further, ADA compliance requires understanding of essential
and non-essential job functions so that reasonable accommodations can be made when needed.

Rewards: Proper evaluation of a job’s value or worth relies on codifying tasks, duties and
qualifications for successful job performance. Pay rates should not be established without a sound job
evaluation process. The exempt/nonexempt status of each job can only be determined through job
analysis.

JOB EVALUATION

Job evaluation Scientifi c determination of the monetary value of a particular occupation, which
relies on experts’ decisions as to the standing of an occupation in terms of compensable factors.

COMPESABLE FACTORS These factors might include the consequences of error on the job, the
amount of education required, and the level of responsibility and skill required. Each occupation is
assigned a number of points depending on its compensable factors. Total points are then compared
with salaries.

Personnel Selection

Once a position is defi ned, the task for hiring managers is to select the best from among the pool of
recruits. That pool can be huge.

Industrial psychologists have played a signifi cant role in developing techniques for selecting
individuals and placing them in positions that match their strengths (Bernardin, 2007; Guion &
Highhouse, 2006). Based on a job analysis, the KSAOs necessary for a particular job should be clear.
The next step is to measure the knowledge, skills, and abilities (as well as other characteristics) of the
recruits in order to evaluate their appropriateness for a position. These measuresinclude testing and
interviews, as well as work samples and exercises.

A. Testing Managers or human resource personnel may administer tests to prospective

 candidates to ascertain whether they are a good match for the position. Some organizations use
tests that assess such factors as personality traits and motivation.Other firms employ cognitive
ability tests, such as intelligence tests .despite some controversy, these tests are related to later
performance According to one survey, most I/O psychologists consider such tests reliable, fair,
and valid .

A1.integrity test A type of job-screening examination that is designed to assess

whether a candidate will likely be dishonest on the job.

A2. biographical inventory A type of job-screening test that involves asking the
candidate about life experiences that seem verifi able.

B. InterviewsPerhaps the most common way that job candidates are

evaluated is through an interview (Huffcutt & Youngcourt, 2007). As soon as
a candidate enters the room, the interviewer probably has a sense of how
outgoing, warm, and friendly the person is.

Interviewer illusion is a term referring to interviewers’ mistaken tendency to believe in

their own ability to discern the truth from an interview (Nisbett, 1987). Of course, any
objective observer might note that job candidates try to make a good impression, put
their best foot forward, and hold back from being completely revealing in discussing
their failings

structured interview - A kind of interview in which candidates are asked specifi c

questions that methodically seek to get truly useful information for the interviewer.

It shall be an unlawful employment practice for an employer:

1. to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against
any individual with respect to his compensation, terms, conditions, or privileges of employment,
because of such individual’s race, color, religion, sex, or national origin; or
2. to limit, segregate, or classify his employees or applicants for employment in any way
which would deprive or tend to deprive any individual of employment opportunities or
otherwise adversely affect his status as an employee, because of such individual’s race,
color, religion, sex, or national origin.
It shall be an unlawful employment practice for an employment agency to fail or refuse to
refer for employment, or otherwise to discriminate against, any individual because of his
race, color, religion, sex, or national origin, or to classify or refer for employment any
individual on the basis of his race, color, religion, sex, or national origin.
It shall be an unlawful employment practice for any employer, labor organization, or joint
labor-management committee controlling apprenticeship or other training or retraining,
including on-the-job training programs, to discriminate against any individual because of his
race, color, religion, sex, or national origin in admission to, or employment in, any program
established to provide apprenticeship or other training.

C. Work Samples and Exercises

In addition to testing and interviewing, I/O psychologists have developed various other techniques for
pinpointing the best-suited candidate for a particular job. One such technique is the requirement that a
job seeker must submit work sample

Another evaluation method devised by I/O psychologists is to require candidates to

complete mock job-Related tasks that allow the direct assessment of their skills. These
 activities might include an “in-basket” exercise in which candidates must organize and
prioritize a pile of potential assignments and a “leaderless group” exercise in which each
prospective employee is observed in a group problem-solving task.

Training

You got the job! Now, what was that job again? Once a new employee is hired, the challenge
facing the organization (and the new recruit) is to learn all that is necessary to carry out the job
effectively.

Three key phases of training are orientation

1. ORIENTATION- A program by which an organization introduces newly hired

employees to the organization’s goals, familiarizes them with its rules and
regulations, and lets them know how to get things done.

2. FORMAL TRAINING - Training involves teaching the new employee the essential
requirements to do the job well. Training needs vary by occupation.

2.1 Overlearning A key goal of training by which trainees practice after

they have achieved a level of acceptable skill at some ask so that the skill
has become automatic.

3. MENTORING - is a relationship between an experienced employee and a novice in which

the more experienced employee serves as an advisor, a sounding board, and a source of
support for the newer employee (Day & Allen, 2004).

Performance Appraisal

 the evaluation of a person’s success at his or her job.

 Performance appraisal is important for a variety of reasons.
 It allows employees to get feedback and make appropriate changes in their work habits.
 It also helps guide decisions about promotions and raises, as well as terminations and fi
ring (Bennett, Lance, & Woehr, 2006).

Sources of Bias in Performance Rating

A. Halo effect A common error in performance ratings that occurs when the rater gives the
person the same rating on overall items, even though there is actual variability.

B. Distributional error A common error in performance ratings, so called because it refers to

ratings that fail to use the entire rating scale.

***360-degree feedback A method of performance appraisal whereby an employee’s

performance is rated by a variety of individuals, including himself or herself, a peer, a supervisor, a
subordinate, and Perhaps a customer or client.
 Other Performance Measures: Thinking Outside the Box and Organizational
Citizenship Behavior

A. Thinking outside the box Exploring new ways of approaching tasks and
challenges and fi nding solutions.
B. Organizational citizenship behavior (OCB) Discretionary actions on the part of
an employee that promote organizational
effectiveness but are not part of the person’s formal
responsibilities.

3 Organizational Psychology

Organizational psychology emphasizes the psychological experience of the worker, examining how the
relationships among people at work infl uence their job satisfaction and commitment, as well as their
efficiency and productivity

IMPORTANT FACTORS IN ORGANIZATIONAL PSYCHOLOGY

A.Approaches to Management

A manager’s approach to this role can have a widespread impact on organizational success as well as
employees’ lives (Gomez-Mejia, Balkin, & Cardy, 2008; McShane & vonGlinow, 2007). So it is
appropriate that we examine how and why management styles matter to organizations and employees.

DIFFERENT MANAGEMENT STYLE

A.1Theory X managers Managers who assume that work is innately unpleasant and that people
have a strong desire to avoid it; such managers believe that employees need direction, dislike
responsibility, and must be “kept in line.”

A.2Theory Y managers Managers who assume that engaging in effortful behavior is natural to
human beings, and who recognize that people seek out responsibility and that motivation can
come from allowing them to suggest creative and meaningful solutions.
A.3 waigawa system A management system dedicated to the idea that when the corporation
faces a diffi cult problem, all rank-related concerns are temporarily set aside so that anyone from any
level of the organization can have input.

A.4 strengths-based management A management style emphasizing that maximizing an employee’s

existing strengths is much easier than trying to build such attributes from the ground up.
Job Satisfaction

 Job satisfaction is the extent to which a person is content in his or her job.
 Job satisfaction is a relatively recent term, because in the past, the choice of occupation
was not so much up to the individual.
 The most common way to measure job satisfaction is to ask employees to report their
reactions to their jobs using rating scales. Job satisfaction can be assessed globally, as with
an item such as “How happy are you with your job, overall?” or in terms of more specifi c
factors such as pay, work responsibilities, variety of tasks, promotional opportunities, the
work itself, and co-workers.

Employee Commitment

By the time an employee has completed training, the organization has already dedicated a great
deal of resources to the person. Clearly, it becomes important to keep the employee around. Especially
during times of organizational change, understanding the factors that might maintain employee
commitment has become important to industry and psychologists (Amiot & others, 2006). I/O
psychologists have examined work commitment as an important determinant of work-related outcomes
(Cooper-Hakim & Viswesvaran, 2005)

THREE TYPES OF COMMIYMENT

>>>Affective commitment - refers to the person’s emotional attachment to the workplace. A

person with a strong affective commitment identifi es closely with the
goals of the organization and wants to be a part of it.

- Affective commitment is associated with feelings of “weness,” of

identifying with the group that is one’s workplace (Johnson & Chang,
2006). The individual with strong affective commitment commits to the
organization because he or she wants to.

-Affective commitment is thought to result in more favorable job

 performance because those high in affective commitment are likely to
work harder

>>>Continuance commitment - derives from the employee’s perception that leaving the
organization would be too costly, both economically and socially.
The person may dread the notion of relocation or the thought of
the effort that a new job search would require. Such an individual
might remain with an organization because of the feeling that he
or she “has to.”

For example, a police officer may remain on the job longer than
she genuinely wants because of concerns about keeping her
pension or because of her deep relationship with her professional
partner.
Continuance commitment has been shown to be either unrelated or
negatively related to job performance or citizenship behaviors
(Meyer & others, 2002).
In contrast to affective commitment, continuance commitment is
related to a more individualistic sense, rather than a group sense,
of identity (Johnson & Chang, 2006).

>>>Normative commitment - is the sense of obligation an employee feels toward the organization
because of the investment the organization has made in the
person’s personal and professional development. If an
organization has subsidized a person’s education, for example, the
employee might feel that she owes it to her boss to stick around.
- Normative commitment means being committed because one feels
one “ought to.”

The Meaning of Work

Occupations defi ne people in fundamental ways .Work is an important infl uence on their
financial standing, leisure activities, home location, friendships, and health.

A. Some described the occupation as a “job,” one that involved no training and allowed
no personal control and little freedom.

B.Some identified their occupation as a “career.” They saw their occupation as a

steppingstone to greater advancement and accordingly focused on the attainment
of better pay, promotions, and moving up the organizational ladder

C. Some viewed their occupation in terms of a “calling.” They perceived the

occupation as requiring a great deal of training and as involving personal control
and freedom.
 Job crafting The physical and cognitive changes individuals can make within
the constraints of a task to make the work “their own.”
- means taking advantage of the freedom one has to bring
fulfillment to an occupation, whatever it may be.
-opens up new avenues for meaning on the job by allowing the
individual to reshape the task and relational boundaries of a job.

Leadership

 I/O psychologists are especially interested in understanding what makes an

effective leader and what effect leadership characteristics have on organizations
 Leaders are not necessarily the same as managers
 Not all managers are effective leaders.
 A leader is a person who infl uences others, motivates them, and enables them to
succeed (House, 2004). Research has shown that what leaders do, for better or worse,
matters a great deal to organizational outcomes (Dutton & others, 2002; Hess &
Cameron, 2006).

TWO MAJOR TYPES OF LEADERSHIP

1.TRANSACTIONAL LEADER An individual in a leadership capacity who emphasizes

the exchange relationship between the worker and the leader and who applies the principle that a good
job should be rewarded.

***applying the principle “You do a good job and I will reward you.”

2. TRANSFORMATIONAL LEADER An individual in a leadership capacity who is

concerned not with enforcing the rules but with changing them.

FOUR ELEMENTS OF TRANSFORMATIONAL LEADERSHIP

2.1 First, transformational leaders exert what has been referred to as

idealized infl uence.This quality means that transformational leaders act
as they do because they believe it is the right thing to do

2.2 Second, transformational leaders motivate by inspiring others to do

their very best.

2.3 Third, transformational leaders are devoted to intellectually

stimulating their employees. They make it clear that they need input
from employees because they themselves do not have all the answers.

2.4 Fourth, transformational leaders provide individualized consideration

to their employees, showing a concern for each person’s well-being.
4 Organizational Culture

Organizational culture - refers to an organization’s shared values, beliefs, norms, and customs.
How do people dress? Do they socialize? Are decorated cubicles acceptable? Can the employees talk to
the CEO? These are the kinds of questions a new employee might ask, and the answers can reveal how
formal, warm, and status conscious the workplace culture is. Organizational culture describes the
fl avor” of an organization—the “way we get things done around here” (Deal & Kennedy, 1982).

Types of Organizational Culture

Researchers have proposed a variety of theoretical approaches to organizational culture
(Schein, 2005). One approach describes four types of organizational culture (Handy, 1985):

A. Power culture:
Power is centralized to only a few people. Control is enforced from the center of the
organization outward. A power culture typically has few rules and little bureaucracy and
is haracterized by quick decision making.

B. Role culture:
Structure is clearly defi ned and authority is delegated. Typically such a
culture is hierarchical in structure, with authority fl owing from the top down.

C. Task culture:
Teams are used to solve particular problems, with expertise driving the status of embers. The person
who knows the most about the problem at hand takes charge until some other problem comes along.

D. Person culture:
Everyone believes that he or she is above the organization itself. An organization with this type of
culture has diffi culty surviving because the members have not “bought into” a shared mission.

Factors Contributing to Positive Organizational Culture

1. Compassion means empathizing with the suffering of another and doing something to
alleviate that suffering.
2. downsizing A dramatic cutting of the workforce that is an increasingly popular business
strategy to enhance profi tability
3.virtuousness, or moral goodness Doing the right thing can have a broad array of benefi ts.
4. active leadership, explicit policies, and less tangible aspects such as the “feel” of an
organization
5.a positive climate can be nurtured by leaders who incorporate fairness and safety into the
cultural climate as part of a well-functioning workplace, rather than treating these concerns as hassles
that must be endured

Toxic Factors in the Workplace

Workplace incivility refers to rude or disrespectful behaviors that reveal a lack

of regard for others, such as spreading rumors, sending inflammatory e-mails, and
sabotaging the work of fellow employees.

A. Sexual Harassment - Sexual harassment is unwelcome behavior or conduct of a

sexual nature that offends, humiliates, or intimidates another person. In the workplace, sexual
harassment includes unwanted sexual advances,requests for sexual favors , and other verbal or
physical conduct of a sexual nature against an employee’s
wishes.

**Quid pro quo sexual harassment refers to unwelcome sexual advances, requests for
sexual favors, and verbal or physical conduct of a sexual nature in which submission is made either
explicitly or implicitly a condition of the
victim’s employment

***Hostile work environment sexual harassment refers to unwelcome sexual

behavior when this conduct has the purpose or effect of interfering with an individual’s work
performance or creating an intimidating or offensive work environment. Behaviors that might produce
a hostile environment include sexually graphic humor, suggestive remarks, making fun of someone’s
body, or touching individuals inappropriately.

B. Workplace Violence - Another severe negative aspect of the work environment is

workplace violence. Violence in the workplace may range from verbal abusiveness to intimidating
behavior to physical aggression and even homicide.

Workplace violence may occur between co-workers, but it also includes violence
perpetrated by outsiders such as customers, clients, or patient.

5. I/O Psychology and Health and Wellness

Given the signifi cant place of work in human life, it is no surprise that work is important to health and
wellness (Hahn, Payne, & Lucas, 2007; Insel & Roth, 2008). Indeed, job satisfaction is strongly related
to life satisfaction overall,and work can be a source of fulfillment and meaning. Work can also be a
source of considerable stress and conflict, however, as we now consider.

Stress at Work

 JOB STRESS The experience of stress on the job and in the workplace setting.

 ROLE CONFLICT The kind of stress that arises when a person tries to meet the demands
of more than one important life role, such as worker and mother

 BURN OUT An extremely distressed psychologicalstate in which a person experiences

emotional exhaustion and little motivation for work.

Managing Job Stress

LEISURE - The pleasant times before or after work when individuals are free to pursue
activities and interests of their own choosing, such as hobbies, sports, and reading.

FLOW - The optimal experience of a match between our skills and the challenge of a task.
 TERMINOLOGIES
waigawa system A management system dedicated to the idea that when the corporation
faces a difficult problem, all rank-related concerns are temporarily set
aside so that anyone from any level of the organization can have input.

360-degree feedback A method of performance appraisal whereby employee's performance is

rated by a variety of individuals, including himself or herself, a peer, a
supervisor, a subordinate, and perhaps a customer or client.

affective The employee's emotional attachment to his or her place of work.

commitment

biographical A type of job-screening test that involves asking the candidate about life
inventory experiences that seem verifiable.

Burnout An extremely distressed psychological state in which a person

experiences emotional exhaustion and little motivation for work.

continuance A kind of job commitment that derives from the employee's perception
commitment that leaving the organization would be too costly, both economically and
socially.

distributional error A common error in performance ratings, so called because it refers to

ratings that fail to use the entire rating scale.

Downsizing A dramatic cutting of the workforce that is an increasingly popular

business strategy to enhance profitability.

ergonomics (human A field that combines engineering and psychology and that focuses on
factors) understanding and enhancing the safety and efficiency of the human–
machine interaction.
Flow The optimal experience of a match between our skills and the challenge
of a task.

halo effect A common error in performance ratings that occurs when the rater gives
the person the same rating on overall items, even though there is actual
variability.

Hawthorne effect The tendency of individuals to perform better simply because of being
singled out and made to feel important.

human relations Emphasizes the psychological characteristics of workers and managers,

approach stressing the importance of such factors as morale, attitudes, values, and
humane treatment of workers.

integrity test A type of job-screening examination that is designed to assess whether a

candidate will likely be dishonest on the job.

job analysis The process of generating a description of what a job involves, including
the knowledge and skills that are necessary to carry out the job's
functions.

job crafting The physical and cognitive changes individuals can make within the
constraints of a task to make the work their own.

job evaluation Scientific determination of the monetary value of a particular occupation,

which relies on experts' decisions as to the standing of an occupation in
terms of compensable factors.

job satisfaction The extent to which a person is content in his or her job.
job stress The experience of stress on the job and in the workplace setting.

KSAOs (KSAs) Common elements in a person-oriented job analysis; an abbreviation for

knowledge, skills, abilities, and other characteristics.

Leisure The pleasant times before or after work when individuals are free to
pursue activities and interests of their own choosing, such as hobbies,
sports, and reading.

Mentoring A relationship between an experienced employee and a novice in which

the more experienced employee serves as an advisor, a sounding board,
and a source of support for the newer employee. p

normative The sense of obligation an employee feels toward the organization

commitment because of the investment the organization has made in the person’s
personal and professional development.

organizational Discretionary actions on the part of an employee that promote

citizenship behavior organizational effectiveness but are not part of the person's formal
(OCB) responsibilities.

organizational An organization's shared values, beliefs, norms, and customs.

culture

organizational Employees' feelings of oneness with the organization and its goals
identity

Orientation A program by which an organization introduces newly hired employees to

the organization's goals, familiarizes them with its rules and regulations,
and lets them know how to get things done.
Overlearning A key goal of training by which trainees practice after they have achieved
a level of acceptable skill at some task so that the skill has become
automatic.

performance The evaluation of a person's success at his or her job.

appraisal

role conflict The kind of stress that arises when a person tries to meet the demands of
more than one important life role, such as worker and mother.

scientific The managerial philosophy that emphasizes the worker as a well-oiled

management machine and the determination of the most efficient methods for
performing any work-related task.

sexual harassment Unwelcome behavior or conduct of a sexual nature that offends,

humiliates, or intimidates another person.

strengths-based A management style emphasizing that maximizing an employee's existing

management strengths is much easier than trying to build such attributes from the
ground up.

structured interview A kind of interview in which candidates are asked specific questions that
methodically seek to get truly useful information for the interviewer.

Theory X managers Managers who assume that work is innately unpleasant and that people
have a strong desire to avoid it; such managers believe that employees
need direction, dislike responsibility, and must be "kept in line."

Theory Y managers Managers who assume that engaging in effortful behavior is natural to
human beings, and who recognize that people seek out responsibility and
that motivation can come from allowing them to suggest creative and
meaningful solutions.
thinking outside the Exploring new ways of approaching tasks and challenges and finding
box solutions.

Training Teaching a new employee the essential requirements to do the job well.

transactional leader An individual in a leadership capacity who emphasizes the exchange

relationship between the worker and the leader and who applies the
principle that a good job should be rewarded

transformational An individual in a leadership capacity who is concerned not with

leader enforcing the rules but with changing them.
Brief description of the specialty
Industrial/Organizational (I/O) psychology is both the study of behavior in organizational and work
settings and the application of the methods, facts, and principles of psychology to individuals and
groups in organizational and work settings. I/O psychologists are versatile behavioral scientists
specializing in human behavior in the workplace. I/O psychologists recognize the interdependence of
individuals, organizations, and society, and they recognize the impact of factors such as increasing
government influences, growing consumer awareness, skill shortages, and the changing nature of the
workforce. I/O psychologists facilitate responses to issues and problems involving people at work by
serving as advisors and catalysts for business, industry, labor, public, academic, community, and health
organizations. They are:

·Scientists who derive principles of individual, group, and organizational behavior through
research;

·Consultants and staff psychologists who develop scientific knowledge and apply it to the solution
of problems at work; and

·Teachers who train students in the research and application of Industrial-Organizational

Psychology

The following parameters differentiate the I/O specialty from others.

a. Populations: The distinct focus of I/O psychology is on human behavior in work settings.
Therefore, the populations affected by the practice of I/O psychology include individuals in and
applicants to business, industry, labor, public (including non-profit), academic, community, and health
organizations.

b. Problems: I/O psychologists deal with problems or issues that can be classified as both applied
and basic in nature. Basic problems are quite variable, following the investigator's interests. Examples
include research on methods of behavioral measurement, communication, motivation, social
interaction, and leadership. Applied problems and activities are oriented around scientific solutions to
human problems at work. These latter problems and activities include but are not limited to:

Recruitment, Selection and Placement: Analyzing jobs and work, developing recruitment procedures,
developing selection procedures, validating tests, optimizing placement of personnel, and identifying
management potential

Training and Development: Identifying training and development needs, formulating and implementing
training programs, coaching employees, evaluating the effectiveness of training and development
programs, and planning careers.

Performance Measurement: Developing criteria, determining the economic utility of performance, and
evaluating organizational effectiveness.
Motivation and Reward Systems: Developing, implementing, and evaluating motivation and reward
programs such as goal setting programs or pay-for-performance plans.

Organizational Development: Analyzing organizational structures and climates, maximizing the

satisfaction and effectiveness of individuals and work groups, and facilitating organizational change.

Quality of Work Life: Identifying factors associated with job attitudes, designing and implementing
programs to reduce work stress and strain, developing programs that promote safe work behavior and
the prevention of accidents, illnesses, and injuries, and designing programs that enhance work/family
life.

Consumer Behavior: Assessing consumer preferences, evaluating customer satisfaction with products
and services, and developing market segmentation strategies.

The Structure of Work and Human Factors: Designing jobs and work, optimizing person-machine
effectiveness, and developing systems technologies.

c. Procedures and techniques: A variety of procedures, tools, techniques and guidance documents
have been developed to assist I/O psychologists in effectively addressing the above types of issues and
problems. Notably, I/O psychologists have rigorously developed both standardized and more
situationally-specific procedures and techniques for assessing the three primary elements in a work
system the worker, the work itself, and the work context. In regard to the assessment of worker
characteristics, these procedures would include tests and other means for evaluating more stable
individual differences such as cognitive abilities, personality characteristics, values, and physical
abilities and more transient characteristics or work behaviors. In addition, numerous procedures have
been developed for analyzing the content and human requirements of work, collectively referred to as
job analysis procedures. With respect to the evaluation of work context variables, procedures have
been developed to assess and effectively manage organizational culture and climate, organizational
reward systems, and the design of organizations.

In addition, I/O psychologists have focused on the development of procedures for addressing important
statistical/methodological issues and problems such as the extent to which employment test validity
coefficients generalize across situations, procedures for aggregating individual-level data to the group-
and organization-level, and procedures for translating the effectiveness of behavioral interventions into
estimates of economic utility.

Finally, the Society for Industrial and Organizational Psychology (SIOP) has produced guidelines and
white papers, which serve to promote good practice such as the Principles for the Validation and Use of
Personnel Selection Procedures (Society for Industrial and Organizational Psychology, 1987), Ethical
Practice of Psychology in Organizations (Lowman, 1998), and Affirmative Action: A Review of
Psychological and Behavioral Research (Kravitz, Harrison, Turner, Levine, Chaves, Brannick,
Denning, Russell, & Conard, 1997). For instance, the former document specifies the principles of good
practice in the choice, development, evaluation, and use of personnel selection procedures.

Theoretical and scientific knowledge required for the specialty

I/O psychologists should acquire knowledge of research and theory on the social bases of behavior,
cognitive-affective bases of behavior, and individual differences theory. Social, cognitive,
developmental, learning, and individual difference theories continue to play important roles in theory
development and research in I/O psychology. Although knowledge of research and theory on the
biological bases of behavior is important for I/O psychologists dealing with specific practice issues or
more specific research issues (e.g., the role of cortical regulatory systems in experienced affect at
work), practice and research in I/O psychology is much less focused than some other specialties on the
biological bases of behavior.

I/O psychologists require distinctive knowledge of ethical and legal issues associated with practice in
organizations. To this end, SIOP and APA have produced a book to educate I/O psychologists about the
unique ethical dilemmas faced in applying psychology in work settings. This volume provides
guidance with respect to ethical issues in personnel selection, organizational diagnosis and intervention,
managing consulting relationships, research, professional certification and training, and professional
behavior. In regard to legal issues, I/O psychologists need to be knowledgeable of statutory (e.g., Title
VII of the Civil Rights Act of 1991) and administrative laws (e.g., Equal Employment Opportunity Act
of 1972), executive orders (e.g., Executive Order 11246), and court decisions (e.g., Griggs v. Duke
Power, Wards Cove Packing Company v. Atonio) as they apply to the practice of psychology in
organizations.
Overview Of The Required Knowledge And Practice Activities For Seven Core Professional
Practice Domains

a. Assessment: I/O psychologists must have knowledge and skills to assess jobs and work,
performance, and people. For assessing jobs and work, knowledge of alternative methods for
describing work and the human attributes necessary to perform the work is needed. For instance, I/O
psychologists should be knowledgeable of the numerous inventories used to describe work and worker
characteristics (e.g., O*NET, Position Analysis Questionnaire, Occupational Analysis Inventory,
Functional Job Analysis). In regard to assessing performance, knowledge of subjective and objective
measures of job performance is required. For instance, I/O psychologists should be knowledgeable and
skillful in the development of behavior-focused rating forms such Behaviorally Anchored Ratings
Scales (BARS) and Behavior Observation Scales (BOS). For assessing individuals, I/O psychologists
need to be knowledgeable of a variety of procedures for assessing individuals including psychological
tests, biographical information, interviews, work samples, assessment centers, surveys, and the use of
computers in assessment.

Representative practice activities:

1. Assessing the content of work via job analysis procedures for the purpose of developing
performance appraisal procedures.

2. Assessing the human requirements of work via job analysis procedures for the purpose of
developing or identifying personnel selection procedures.

3. Assessing individual characteristics via psychological tests, interviews, work samples, and other
means for selecting individuals into jobs and career development.

4. Assessing employee knowledge, skill or work performance via a host of evaluation procedures for
the purpose of identifying training needs.

5. Assessing employee perceptions of work environment characteristics via survey procedures for the
purpose of managing an organizations climate.

b. Intervention: I/O psychologists design and evaluate the effectiveness of many types of
interventions directed at individuals in groups such as goal setting and feedback interventions,
personnel training programs, and workplace interventions to prevent stress-related illness. I/O
psychologists may or may not be experts in the content of the intervention or training program, but they
must possess knowledge of program design and evaluation. For instance, with respect to personnel
training, I/O psychologists need to know how to conduct a needs assessment, how to design a training
program taking into account trainee characteristics and other factors that are likely to affect the transfer
of training, and how to evaluate a training program including structuring a study that specifies how data
are to be collected and choosing or developing measures of the criteria. In addition, I/O psychologists
must be knowledgeable of organizational change techniques and the relative effectiveness of
organizational development interventions.

Representative practice activities:

1. Implementing a form of programmed instruction, ranging from printed booklets to interactive

videotapes to computer-assisted instruction programs, designed to develop employees declarative and
procedural knowledge.

2. Conducting simulation training for the development of technical skills in controlled and safe
environments.

3. Conducting frame of reference training for raters who appraise others, where the raters are given a
common and consistent frame of reference on which to make judgments.

4. Implementing process improvements and job enrichment, efforts to expand a workers role in
planning, improving, and performing their work.

5. Implementing team building and organizational development interventions with groups or teams.
These interventions are designed to enhance team member morale, problem-solving skills, and team
effectiveness.

c. Consultation: I/O psychologists must be knowledgeable of the roles and functions of others with
whom they will interact on a professional basis. Given that organizations are open systems in continual
interaction with multiple, dynamic environments, the form and level of consultation that an I/O
psychologist has will vary from one setting to another and over time within any particular setting.
Although primary consultation is with management personnel, the type of work and work context may
necessitate consultation with other organizational stakeholder groups such as union personnel, those
involved in our legal system, organizational suppliers, and consumer/client groups. Broad knowledge
of the above content areas as well as knowledge of strategic decision-making and organizational
stakeholder groups are helpful in consultation with others.

Representative practice activities:

1. Working with compensation specialists to establish organizational reward systems.

2. Participating with engineers in the planning, design, and testing of person-machine systems.

3. Obtaining the advice of legal professionals concerning the implications of court decisions for the
validation and use of personnel selection procedures.

4. Consulting with mental health, public health, and medical personnel on the design and evaluation
of workplace interventions intended to reduce work stress and strain.

5. Interacting with union personnel concerning the protection of union member rights when planning
assessments and interventions.

d. Supervision: Knowledge required for supervision in Industrial/Organizational psychology

includes not only knowledge that is generic to all professional supervision, but also knowledge of
general standards (e.g., APA, 1992; AERA, APA, & NCME, 1999; Code of Fair Testing Practices,
2000) and knowledge and skills specific to the practice of I/O psychology.

American Eductional Research Association, American Psychological Association, & National Council
on Measurement in Education. (1999). Standards for educational and psychological testing.
Washington, D.C.: AERA Publications.

American Psychological Association. (1992). Ethical principles of psychologists and code of conduct.
Washington, D.C.: Author.

Code of Fair Testing Practices in Education. (2000) Washington, D.C.: Joint Committee on Testing
Practices. (Mailing Address: Joint Committee on Testing Practices, American Psychological
Association, 750 First Street, NE, Washington, DC, 20002-4242.)

Representative practice activities:

1. Supervising the development of psychological tests.

2. Managing the administration of an employee survey.

3. Supervising the design of an employee performance appraisal system.

4. Leading an analysis to determine the solution to an organizational problem.

5. Managing the implementation of an organizational change effort, such as a new reward system for
high performing employees or process improvements.

6. Supervising student research

e. Research and Inquiry: I/O psychologists must have extensive knowledge of research strategies
and research methodology as well as knowledge of psychometrics and statistics.

Representative practice activities:

1. Evaluating the effectiveness of an organizational intervention, such as job redesign intervention or

process improvements.

2. Studying the transfer of training to the job.

3. Conducting a criterion-related validity study to determine the predictive effectiveness of a

personnel selection procedure.

4. Estimating the economic impact of a personnel selection or training program.

5. Studying the relation between organizational commitment and turnover.

6. Conducting laboratory experiments, field experiments, or field studies

f. Consumer Protection: I/O psychologists should acquire knowledge of ethical principles of
psychologists and the ethical practice of psychology in organizations. In addition, SIOP operates a web
site and consultant locator service designed to help those interested in finding an individual or firm
with experience and expertise in particular practice areas.

Representative practice activities:

1. Communicating to clients the relevant legal and technical aspects of a selection program or some
other I/O-psychology related program in terms the organizational representatives can understand.

2. Indicating to potential client organizations that assessment procedures will be developed only
according to professionally acceptable standards.

3. Establishing clear rules as to how sensitive data (e.g., pre-employment drug test results) will be
maintained and how results will be communicated to all parties.

4. Examining promotional materials for I/O psychology-related products and services and requesting
the right of approval prior to distribution to the public.

5. Obtaining permission from a client organization prior to discussing consulting work in a public
forum.

g. Professional Development: I/O psychologists have opportunities to update their knowledge and
skills on a regular basis through participation in SIOP sponsored workshops and conferences. A
sampling of workshops held at the most recent Annual Conference is presented below. In addition,
many I/O psychologists belong to other APA Divisions (e.g., Division 5, Evaluation, Measurement and
Statistics; Division 19, Military Psychology), professional societies such as the Academy of
Management, and local associations (e.g., Personnel Testing Council of Metropolitan Washington D.C.)
that provide further professional development opportunities.

Representative practice activities:

1. Attending conferences to learn about research and practice developments.

2. Participating in professional development workshops such as those conducted at SIOPs Annual

Conference.

3. Reading APA and SIOP task force reports, journals, and books concerning research and practice
developments (such as the books published in SIOPs Frontiers Series and SIOPs Professional Practice
Series).

4. Reading SIOPs quarterly journal TIP (The Industrial/Organizational Psychologist) to update

knowledge concerning the latest I/O psychology-relevant information on a variety of topics.

5. Participating in professional, scientific, and educational organizations whose mission is (in whole
or part) to advance the knowledge and practice of industrial and organizational psychology.

Other Areas of I/O Specific Scientific Knowledge

There are a variety of other specific specialty areas within I/O psychology that build upon a basic
scientific core. Twenty of these areas are discussed below:

1. Research Methods

The domain of research methods includes the methods, procedures, techniques, and tools useful in the
conduct of empirical research on phenomena of interest in I/O psychology. At a general level, the
areas encompassed by research methods include the scientific method (with attention to issues in the
philosophy of science), inductive and deductive reasoning, problem statements and research
questions, hypotheses, the nature and definition of constructs, and study designs (experimental,
quasi-experimental, and non-experimental). At a more operational level, research methods includes,
but is not limited to, the manipulation of variables (in experimental research), the concepts
underlying and methods used for the assessment of the reliability and validity of measures, the
administration of various specific types of measures (questionnaires, interviews, observations of
behavior, projective measures, etc.), the use of various sampling procedures (probability and non-
probability type) especially as applied to survey research, the conduct of research with various
specific strategies (field study, laboratory experiments, field experiment, sample survey, simulation,
case study, etc.), the use of statistical methods to establish relationships between variables, and the
formulation of research-based conclusions. Specific knowledge about relative strengths and
weaknesses of different research strategies, an understanding of qualitative research methods, as well
as a tolerant appreciation of the benefits of alternative strategies must be developed. Computer
literacy has become increasingly important, and programming skills may be particularly useful.
Finally, an understanding of the ethical standards that govern the conduct of all research involving
human participants is essential.

2. Statistical Methods/Data Analysis

This domain has to do with the various statistical techniques that are used in the analysis of data
generated by empirical research. The domain includes both descriptive and inferential statistical
methods; it spans both parametric and nonparametric statistical methods. Among the specific
competencies, issues and techniques encompassed by the domain are: estimates of central tendency;
estimates of variability; sampling distributions; point and interval estimates; inferences about
differences between means, proportions, and so forth; univariate and multivariate analyses of
variance (fixed, random, and mixed effects models); linear and non-linear regression and correlation;
path analysis; multiple discriminant function analysis; multiple and canonical regression; factor
analysis; components analysis; cluster analysis; pattern analysis; and structural equation modeling.
Knowledge of this domain implies a basic understanding of the statistical foundation of such
methods, asymptotic sampling variances of different statistics, the assumptions underlying the
proper use of the same methods, and the generalizations, inferences, and interpretations that can
legitimately be made on the basis of statistical evidence.

3. Attitude Theory, Measurement, and Change

Attitudes, opinions and beliefs are extremely important in organizational settings. They are
important in their own right because of humanitarian concerns for the quality of working life of
those who are employed in organizations. They are also important for diagnosing problems in
organizations. Finally, they are important because they relate to the behavioral intentions and the
behaviors of individuals at work. Some of the job attitudes typically studied by I/O psychologists
include, but are not limited to, job satisfaction (general and various facets), job involvement,
organizational commitment, and perceptions of fairness.

4. Career Development

Theory and research regarding career development are concerned with the interplay between
individuals and environments and attempt to describe the nature of the patterns of positions held and
resultant experiences during an individual's lifespan. Included in this domain are models and
explanations of the origin and measurement of individual aptitudes and interests, how individual,
social, chance, and environmental factors shape educational and training experiences, specific skill
training and development, early work history, occupational choice, organizational/job choice and
switching, the sequence of jobs taken after organizational entry, work/family issues, midcareer
plateaus, and retirement planning.

5. Consumer Behavior

The focus of this area is the systematic study of the relationship between the producers (or
distributors) and consumers (actual or potential recipients) of goods and services. Usually this
involves many of the following concerns: consumer preferences for product features, consumer
attitudes and motivation, buying habits and patterns, brand preferences, media research (including
the effectiveness of advertisements and commercials), estimating demand for products or services,
and the study of the economic expectations of people. Closely allied to those areas of market research
which focus on personal consumption, there is a substantive or content basis to this domain insofar
as there is a body of theory and data amassed dealing with the antecedents and correlates of
consumer behavior which should be learned. There is a skill component to be mastered as well,
inasmuch as the area is built upon the appropriate application of a variety of social science research
methodologies (e.g., sampling theory, questionnaire and survey protocol design and execution,
individual and group interviewing, stimulus scaling, and mathematical model building).

6. Criterion Theory and Development

Almost all applications of I/O psychology (e.g., selection, human resources planning, leadership,
performance appraisal, organization design, organization diagnosis and development, training)
involve measurements against criteria (standards) that indicate effectiveness on the part of
individuals, groups, and/or organizations. The selection of criteria is not a simple issue and
represents a significant area of concern for I/O psychologists.

The knowledge base of this domain incorporates understanding the theoretical issues such as single
versus multiple criteria, criterion dynamics, the characteristics of good and acceptable criteria
(relevance, reliability, practicality), and criteria as a basis for understanding human behavior at work
and in organizations. Knowledge of past research in this area, which is quite extensive, is also
necessary.
Beyond this knowledge, the I/O psychologist should have the skills necessary for developing valid
criteria and methods of measuring them. These necessarily include skills in many of the other
domains identified in the document (e.g., job analysis, psychometrics).

7. Health and Stress in Organizations

Job performance and effective organizational functioning can be affected by health and safety factors
in the work place which result in sub-optimal working conditions and reduced productivity. This
competency area requires the study of interactions between human physical capabilities and
problematic conditions in the work place in an attempt to understand the limits of performance and
negative effects on workers. Among the factors considered are hazardous environmental
conditions induced by toxic substances (e.g., chemical, biological, nuclear), loud noises, blinding
lights, noxious odors. Other factors considered are related to organizational structure and job
design such as shift work, or the requirements of particular tasks. Additional sources of
organizational stress that may affect performance, commitment, and attitudinal variables include
downsizing, harassment, work-family pressures, and outsourcing. There should be some familiarity
with government standards relating to the work place (e.g., Occupational Safety and Health
Administration guidelines).

8. Human Performance/Human Factors

Human Performance is the study of limitations and capabilities in human skilled behavior. Skill is
broadly construed to include perceptual, motor, memory, and cognitive activities, and the integration
of these into more complex behavior. Emphasis is on the interaction of human behavior and tools,
tasks, and environments, ranging from detection and identification of simple events to problem
solving, decision making, human errors, accidents, and control of complex environments. Included
among the variables that affect human performance are individual differences, organismic variables,
task variables, environmental variables, and training variables.

Competency in this area assures awareness of issues of experimental design, a grounding in

perception, cognition, and physiological psychology, some knowledge of computer programming,
and quantitative modeling based on techniques from mathematical psychology, engineering, and
computer science. Familiarity in the subject areas of basic experimental psychology should be
combined with an awareness of applied research in such areas as work station design, workload
measurement, control systems, information display systems, health and safety, and human-computer
interactions.

9. Individual Assessment

This domain refers to a set of skills that are needed for assessing, interpreting, and
communicating distinguishing characteristics of individuals for a variety of work-related purposes.
The two primary purposes of individual assessment can be defined broadly as selection (e.g., hiring,
promotion, placement) and development (e.g., career planning, skill and competency building,
rehabilitation, employee counseling). Individual assessment may help attain multiple goals, many
of which are aimed at achieving some form of person-environment fit, including assessee fit to a
specific job or career track and assessee fit within a specific organizational context (e.g.,
department, work group).

Individual assessment incorporates skill in individual testing, interviewing, and appraisal

techniques for the purpose of evaluating ability, personality, aptitude, and interest characteristics.
Individual assessment also requires identifying, developing, selecting, and/or using the appropriate
means for such assessment, and communicating the results and interpretation of assessment accurately
in both face-to-face and written form.

A knowledge of the fact that individual assessment focuses on the whole person is required. In
addition, a knowledge of the manner in which environmental and contextual factors shape the
purpose and use of the accumulated information of individual assessments is necessary.

10. Job Evaluation and Compensation

This competency area focuses on determining the appropriate compensation level for skills, tasks,
and/or jobs. Job evaluation is a processes by which the relative value of jobs is determined and then
linked to commensurate compensation. Job evaluation is closely tied to and usually predicated upon
sound job/task analyses. In general, job evaluation and compensation involves identifying
compensable factors, attending to perceptions of fairness and equity, and considering issues of
comparable worth. Proficiency in this competency area is demonstrated by a theoretical and
applied understanding of various job evaluation techniques, compensation strategies (e.g., pay for
skills, team-based pay, etc.), and the legal and social issues surrounding compensation.

11. Job/Task Analysis and Classification

This domain encompasses the theory and techniques used to generate information about what is
involved in performing a job or task, the physical and social context of this performance, and the
attributes needed by an incumbent for such performance. Tasks are basic units of activity, the
elements of which highlight the connection between behavior and result. A job is an arbitrary
grouping of tasks designed to achieve an organizational objective. It is common for jobs to be grouped
or classified on the basis of a variety of criteria, depending on the purpose and goals of the
classification system.

The fundamental concern of job and task analysis is to obtain descriptive information to design
training programs, establish performance criteria, develop selection systems, implement job
evaluation systems, redesign machinery or tools, and create career paths for personnel. The specific
steps taken and the type of information gathered will vary depending on the purpose of the job and
task analyses and the classification system. Relevant information includes, but is not limited to: what
worker behaviors are involved; the knowledge, skills, and abilities required; the standards of
performance desired; the tools, machines, and work aids used; the sources of information available to
the incumbent; the social, environmental, and physical working conditions; and the nature of
supervision. Similarly, some of the steps involved in job and task analyses include: identifying the
purpose of the analysis; preparing, designing, or selecting a job analysis system; collecting job or
task information; summarizing the results; and documenting the steps taken for future reference. The
classification of jobs typically entails identifying the purpose and goals of the classification system;
designing a classification scheme; categorizing jobs according to the established scheme; and
documenting the classification process and outcomes.

The individual competent in this domain should have a knowledge of the different approaches to
job/task analysis and classification, as well as skill in applying these techniques to real world
situations. This competency area is likely to continue evolve as the nature of work in our society
continues to change.

12. Judgment and Decision Making

Judgment and decision making encompasses an area of research and knowledge that is both
prescriptive and normative in its emphases. This area is important because judgment and decision
making under conditions of uncertainty probably describes the majority of the decisions
managers, psychologists, market forecasters, and budget/policy planners make during the course of
their work and research. A knowledge of decision theory, judgment, and problem solving research
is important to understanding the critical processes that influence how information is processed and
the quality of the decision outcomes.

Many different content areas within the broad area of I/O psychology can be studied explicitly as
applications of decision and judgment theory. Such areas as vigilance behavior, employee selection,
choice behavior, and human performance in complex environments can be integrated by principles
of decision theory that may require fewer concepts than are necessary when each content areas is
considered distinct and unique. Applications of decision theory to the policies of decision makers,
judges, and clinicians allow greater understanding of inferential procedures used by individuals.
Approaches for describing and predicting judgment and decision making include Brunswik's lens
model, Bayesian inference, subjective expected utility, prospect theory, and the cognitive information
processing paradigm. A knowledge of these approaches and an ability to integrate across the
different approaches are indicative of breadth as well as depth of training in judgment and decision
theory.

13. Leadership and Management

Management and leadership can be approached at different levels. The study of management and
leadership at the macro level involves the influences senior level individuals have in the larger
organizational context-setting strategy, directing change, influencing values. Theory and research
may focus on characteristics of leaders, leader style, leader-member interactions, behaviors of
leaders, and related phenomena. At a more micro level, leadership and management involves the day-
to-day exchange between leaders and followers. This includes challenges faced by line managers in
their relationships with subordinates in the assignment of tasks, evaluation of performance, coaching
and counseling for improvement, resource planning, and related tasks. Related to many other areas,
effective leadership and management involves task analysis, motivation, decision making, career
planning, selection, performance appraisal, interpersonal communication, listening and related
skills in a supervisor-subordinate context. Increasingly, attention is placed on team leadership
and self-leadership (especially in relation to empowerment), and horizontal leadership (i.e., peer
influence processes).

14. Organization Development

This domain encompasses theory and research relevant to changing individuals, groups, and
organizations to improve their effectiveness. This body of theory and research draws from such
related fields as social psychology, counseling psychology, educational psychology, vocational
psychology, engineering psychology, and organizational theory.

More specifically, this domain concerns theory and research related, but not limited to: individual
change strategies including training, socialization, attitude change, career planning, counseling, and
behavior modification; interpersonal and group change strategies, including team building and group
training, survey feedback, and conflict management; role or task oriented change strategies,
including job redesign, role analysis, management by objectives, and temporary task forces; and
organization system-directed change strategies, including survey feedback, open systems oriented
change programs, human resource accounting, flexible working hours, structural changes, control
system changes, and quality circles.

15. Organization Theory

It is well accepted that the structure, function, processes, and other organizational-level constructs
have an impact upon the behavior of individuals in organizations. Therefore, it is necessary
that I/O psychologists have a thorough understanding of the nature of complex organizations.
This understanding should include, but is not limited to, classical and contemporary theories of
organizations, organizational structure, organizational design, technology, and the process of
organizational policy formation and implementation. Much of this theory and research is generated by
sociologists and those students of organizational behavior who choose as their unit of analysis
constructs not primarily within the individual or within the immediate group environment of the
individual. Integration of organizational and individual constructs is an important area of study within
I/O psychology. Such an integration obviously requires a knowledge of organizational theory.

16. Performance Appraisal and Feedback

Performance appraisal and feedback have both a knowledge and a skill base. This area centers on the
methods of measuring and evaluating individuals as they perform organizational tasks and on taking
action (administrative and/or developmental) with individuals on the basis of such appraisals.

The knowledge base includes a thorough understanding of rating scale construction and use. Also
relevant are the areas of measurement theory, data analysis, criterion theory and development,
motivation theory, and the factors which underlie interpersonal perception and judgment. An
understanding of the similarities, differences, and inconsistencies among the perceptions of
performance and feedback supplied by peers, subordinates, and supervisors is essential. The skill base
includes procedures for communicating performance evaluations to job incumbents and counseling
them in appropriate means of improving their performance. Also, skill in designing a complete
performance appraisal and feedback system which meets organizational needs while maintaining
and/or enhancing worker motivation and/or performance is required.

17. Personnel Recruitment, Selection, and Placement

This domain consists of the theory and techniques involved in the effective matching of individual
needs, preferences, skills, and abilities with the needs and preferences of organizations. An
organization's needs are defined by the jobs assigned to positions in the organization.

More specifically, this domain encompasses theory and research in: human abilities; test theory,
development, and use; job analysis; criterion development and measurement; recruitment; classical
and decision theory models of selection and placement; alternative selection devices (e.g.,
interviews, assessment centers); and legal and societal considerations that impact upon recruitment,
selection, and placement. In particular, the individual must keep current with the legislation and
court decisions related to these issues, as well as with responses of the Society to laws and their
interpretations.

18. Small Group Theory and Team Processes

Much of human activity in organizations takes place in the presence of other people. This is
particularly true of work behavior. The pervasiveness of interpersonal and task interdependence in
organizations demands that I/O psychologists have a good understanding of the behavior of people in
work groups. Though the labels "group" and "team" are often used interchangeably, it is also critical
to have a familiarity with the growing teamwork literature. This requires an understanding that
extends beyond familiarity with research and theory related to interpersonal behavior in small groups.
The body of theory and research concerning groups and teams draws from social psychology,
organizational psychology, sociology, and organizational behavior. A good background in group theory
and team processes includes, but is not limited to, an understanding of leadership, motivation,
interpersonal influence, group effectiveness, conformity, conflict, role behavior, and group decision
making.

19. Training: Theory, Program Design, and Evaluation

This domain includes theory and techniques used to design, conduct, and evaluate instructional
programs. The instructional process begins with a needs assessment, including organizational, job
and task, and person analyses, to determine the goals and constraints of the organization and the
characteristics of the job and trainees. Familiarity with basic phenomena of learning (e.g., modern
learning theory, conditioning principles), as well as knowledge of the different approaches to training
(e.g., computer assisted instruction, simulation, behavior modification) are necessary for designing
programs. An ability to develop meaningful and appropriate training objectives is essential.
Transfer of training to the desired setting is an important consideration. In order for programs to be
conducted as planned, the instructors must have good instructional skills. Thus, training the trainers
is necessary.
Both the process and the outcome of the program may be evaluated to determine if it has been
conducted as planned and whether or not it has had any effect. Knowledge of appropriate training
evaluation criteria and design issues, such as pre- and post-testing and control groups, as well as
organizational constraints is necessary for planning an evaluation strategy.

20. Work Motivation

Work motivation refers to the conditions within the individual and his or her environment that
influence the direction, strength, and persistence of relevant individual behaviors in organizations
when individual abilities and organizational constraints are held constant. Increasingly, work
motivation is a concern at the group level as well.

I/O psychologists need to have a sound background in work motivation in at least three respects. First
they must have a thorough understanding of the theories of human motivation including, but not
limited to, need theories, cognitive theories, and reinforcement theories. In all cases there must be a
thorough understanding of the extensive research and theory that exist outside the domain of work
in the basic psychological literature. At the second level, there must be an understanding of the
research and theory in motivationally relevant domains of I/O psychology that represent general
applications of one or more motivational perspectives. Such general strategies for work
motivation as goal setting, job design, incentive systems, and participative decision making are
relevant here. Finally, there must be an awareness of and ability to apply very specific, motivationally
oriented practices that adapt motivational constructs to specific cases. For example, understanding and
implementing management-by-objectives involves an application of goal setting principles and
participation.