IO Psychology is a branch of psychology that applies psychological principles to understand people in the workplace
Industrial Focus:
Job analysis
Personal Selection
Performance appraisal
Training & Development or Learning & Development
Organizational Focus:
Workattitudes: work commitment, jobsatisfaction, job engagement, team or group dynamics, leadership
IO Psychology focuses on factors affecting employees in the workplace such as the kind of leaders present, compatibility, team dynamics, motivation, fit with company culture or job, work attitudes, and accuracy of HR procedures
HR Management focuses on the business aspect or operations to ensure productivity and finding the best fit for the job based on competencies
Major Areas of IO Psychology:
A. Psychometrics & Individual Differences:
Employee motivation
Employee selection
B. Social Psychology:
Group processes
Leadership
C. Health Psychology:
Stress
Work-life balance
D. Cognitive Psychology:
Learning, especially adult-learning
Decision-making
E. Performance appraisals:
Biases and how to avoid them
IO Psychology is an interdisciplinary branch of psychology that blends principles from various subtypes of psychology
Early Years of IO Psychology:
Focused on productivity and efficiency
Emphasized on personnel selection
Tension between science and practice
Human Relations Era (1927-1940s):
Theory X and Theory Y by Douglas McGregor
Engineering Psychology during World War II led to advances in safety and efficiency, with a focus on accurate placements
Civil Rights Era (1964-Present) led to the passage of the Civil Rights Act in the U.S. to ensure fairness in hiring practices
High Tech Era (2000-Present) involves the use of computers, the internet, online job applications, computerized test administration, big data in research, and AI in HR activities
Job Analysis is a systematic process of collecting and analyzing job information including tasks, duties, responsibilities (TDRS), knowledge, skills, and other characteristics (KSADS)
Competencies in job analysis can be referred to as TDRS (Tasks, Duties, Responsibilities) and KSADS (Knowledge, Skills, and Other Characteristics)
Steps in Job Analysis:
Identify Tasks Performed
Write Tasks Statements
Rate Tasks Statements
Determine Essential KSAOs
Select tests to tap KSAOs
Methods for gathering existing information in job analysis include:
Interviewing Subject Matter Experts (SME)
Observing Job Incumbents
Job Participation
Questionnaires
Properly written task statements should:
Include 1 action and 1 object
Mention tools or equipment used
Be written at the reading ability of the typical job incumbent
Provide context without being too general
Tasks statements are rated based on frequency and importance:
Accepted scores for combined ratings are 2.0 and above
KSAOs (Knowledge, Skills, Abilities, Other Characteristics) are essential for job performance and rated based on their importance:
Knowledge includes declarative and procedural knowledge
Skills are observable competencies like communication and leadership
Abilities are underlying traits like memory and intelligence
Other Characteristics include personality, willingness to learn, licenses, etc.
KSAOs with average ratings of 2.5 and above are included in the selection process, 1.5 - 2.49 are taught during training, and 0.5 - 1.49 are learned on the job
Job descriptions should include:
Job Title
Brief Summary
Work Activities (TDRs)
Tools & Equipment Used
Work Context
Performance Standards
Compensation Information
Job Competencies (KSAOs)
Job analysis is important for guiding HR and organizational decisions related to:
Employee selection
Training and development
Performance appraisal
Promotion/Transfer decisions
Job Evaluation involves determining the worth of a job for internal and external pay equity:
Internal pay equity compares jobs within the organization
External pay equity compares jobs to the external market
Employee Selection is the process of choosing a qualified person for a job vacancy based on:
Job Performance
Cost
Legal obligations
Validity measurements in selection plans assess the accuracy of measurement and prediction:
Accuracy of Measurement: similarity between the attribute being measured and the actual measure
Accuracy of Prediction: similarity of predictor scores and criterion scores
Practical Significance:
Allows higher accuracy of prediction of the candidate’s job success
Assessed by examining:
Sign: direction of relationship between the predictor and the criterion
Magnitude: size that can range from 0 to 1
0 = least desirable predictor
1 = most desirable or useful predictor
0.15 to 1.29 = considered as moderately useful
.30 & above = highly useful
Statistical Significance:
Assessed by probabilities or the p-values
Accepted level of significance = p<.05
Confidence intervals: "We can be 90% confident that the true validity is no less than .30 and no greater than .40"
Hiring Success:
Proportion of new hires who turn out to be successful in the job
Employees who work correctly and predicted to do well in the job
Hiring Success Gain:
The increase in hiring success is significant because of the utility of the predictor use
Expected increase in the proportion of successful new hires as a result of:
Predictor's validity: Accuracy of measurement, Accuracy of prediction
Selection ratio: # of hired divided by # of applicants
Base rate: # of successful hires divided by # of employees
Selection Plan:
Identifies specific predictors to be used to measure KSAOs required in the job
Selection Sequence:
Applicant → Candidate → Finalist → Employee
Applicant: someone who sends in a resume, part of the initial assessment phase of selection
Candidates: has minimum credentials and is subject to further or substantive assessment
Finalist: meets all the minimum requirements and who is being considered by the company to join them
One decided the candidate will receive a job offer
If the finalist accepts the job offer then the finalist becomes an official employee
Assessment Methods:
1. Initial Assessment:
Useful to eliminate those applicants that do not meet even the minimum requirements
Includes:
Resume
Application blanks
Cover Letters
Biographical information
Reference Checks
Background Checks
Initial Interviews
2. Substantive Assessment:
Applicants who pass the initial assessment (candidates)
Includes:
Personality Tests
Ability Tests
EQ Tests
Performance Tests and work samples
Situational Judgment Test
Integrity Test
Interest Test
Structured Interviews
Discretionary Assessment:
Used to separate those who receive job offers from the list of finalists
Highly subjective
Should never be used without being preceded by initial and substantive methods
Contingent Assessment:
Includes:
Drug Testing
Medical Exams
Assessment Scores:
Single Predictor: The score in the single predictor is the final assessment score
Multiple Predictors Approaches:
Compensatory: Predictor scores are added to yield a total score
Procedures:
Clinical Prediction
Unit Weighing
Rational Weighing
Multiple Regression
Hiring Standards:
Minimum Competency: Cut scores based on the minimum qualification necessary for the job
Top-Down Hiring: Examining the distribution of predictor scores for applicants and then determine which proportion of applicants will be hired
Test Score Banding: Applicants who score within a certain score range or band are considered to have scored equivalently
Staffing Strategies:
Human Capital: Competencies owned by the employees and their motivation to use these successfully on the job
Staffing: Building the workforce, acquiring, deploying, and retaining a workforce of sufficient quantity and quality to create positive impacts on the organization's effectiveness
Staffing Quality:
Person-job Fit & Person-Organization Fit
Organizations Value: Considered the norms of desirable attitudes or behaviors, what is expected of employees to do
Workforce / HR Planning:
First step in recruitment & selection
Identifying employment needs in the next few months: supply and demand
Advantages:
Ensure replacements are available
Provide realistic staffing projections for budgeting purposes
Help prepare for possible restructuring, downsizing, and expanding the workforce
Succession planning:
Who among your employees has leadership potential
Process of identifying, assessing and developing organizational leadership to enhance performance