OrganizationalPsychology
We discover what psychologists know about the experience of working in an organization, from starting to leaving. This journey through the levels of work organizations and over the lifespan of an individual’s experience can cover only a relatively few topics, but in the process it should provide an insight into a rich and increasingly important sub-discipline. Almost all studies in this area are conducted in the organizations themselves, from three perspectives:
1. individual – selection, socialization, training, leadership, job satisfaction and organizational commitment, and the causes and consequences of stress;
2. group – work group effectiveness and decision making; and
3. organizational – design and culture of the organization, the exercise of power and the experience of women at work. We end by analysing the powerful effects of redundancy and unemployment. But the first step is recruitment. How do organizations achieve a fit between an individual, the job and the organization?
INDIVIDUALS AT WORK
When we consider some of the major factors affecting individuals at work, how they are selected, socialized, developed through training and affected by the behaviour of their bosses and peers, we begin to see how pervasive the effects of our work experience can be in our lives. The jobs we do shape us by offering us a sense of growth, commitment and satisfaction, or they can alienate us, creating chronic feelings of anxiety and directly affecting our health and wellbeing. The influence of work in colouring every aspect of our lives is profound.
MATCHING THE PERSON TO THE JOB
Selection is based on the premise that there are stable individual differences between people, which can be identified, and that these differences have an impact on how effective people are in a particular job (Robertson, 1995). Not surprisingly, psychologists have been at the forefront of developing and using personnel selection methods. One of the aims of selection is to ensure a fit, i.e. a good match, between the person and the organization. Failure to achieve this can not only result in poor job performance, but the well being of the employee also suffers, and ultimately the employment relationship is likely to end.
Common selection procedures
The typical process for designing a selection system begins with a job analysis to identify the essential requirements.
This information is used to create a job description, which forms the basis of a person specification. This specification translates the demands of the job into human terms and lists criteria that an applicant must satisfy if they are to perform the job successfully (Arnold, Robertson & Cooper, 1991). Selection methods determine whether the applicant’s skills, knowledge and abilities meet these criteria. For example, if the person specification states that good verbal reasoning skills are required, a psychological test of verbal reasoning may well be used in the selection procedure. Common selection procedures (from Arnold, Robertson & Cooper 1991) are:
Interviews – often involving more than one interviewer. At a panel interview, the applicant will be questioned by several interviewers. The most important features of a job interview are the extent to which a pre-planned structure is followed, and the proportion of questions that are directly related to the job.
Psychometric tests – including tests of cognitive ability (e.g. general intelligence, verbal ability, numerical ability) and selfreport measures which are designed to evaluate personality. References – usually obtained from current or previous employers, often in the final stages of the selection process. The information requested may be specific or general and open-minded.
Biodata – biographical information about the candidate’s life history. Some biodata inventories contain several questions, including objective questions (such as professional qualifications held) and more subjective ones (such as preferences for different job features). Work-sample tests – using samples of the job (e.g. the contents of an intray for an executive position, or specific kinds of typing for a secretarial post). The applicant is given instructions and a specific amount of time to complete the tasks.
Handwriting analysis – making inferences about the candidate’s characteristics by examining specific features of his/her handwriting, such as slant and letter shapes. Assessment centres – a combination of some of the above techniques. Candidates are usually processed in groups, and some of the techniques require them to interact (e.g. simulated group decision-making exercises).
Although the usefulness of psychometric tests in selection has been hotly debated by psychologists, their validity has been found to be relatively good (Robertson & Kinder, 1993). The drawback from the perspective of employers is that training is required for those who wish to administer and interpret these tests. Even though the financial costs of ineffective selection are potentially large, organizations still rely on techniques such as personal references, graphology (handwriting analysis) and even astrology. These techniques are demonstrably and largely invalid as selection devices (Rafaeli & Klimoski, 1983).
Selection methods need to have good criterion validity. This is the relationship between scores on the selection method and scores on the ultimate performance measures, such as number of sales made, commission earned or other types of outcomes required by the organization (Landy & Farr, 1980). Psychological tests show good criterion validity. For example, one of the best predictors of job performance (for all but very simple jobs) is general intelligence (Hunter & Hunter, 1984). And yet the most frequently used selection method for many jobs is the unstructured interview, which has poor criterion validity. Here, interviewers ask a wide variety of questions, but without planning what questions will elicit the information that best predicts job performance. Structured interviews, involving two or more interviewers asking standard job-related questions of all candidates, are much better selection methods, but they are rarely used (Huffcutt & Arthur, 1994; Wiesner & Cronshaw, 1988). These interviewers are likely to ask targeted questions, such as: ‘Have you ever been in a situation at work where a customer was very angry about a service you had provided? Describe the situation and how you handled it.’ This kind of question will usually elicit clearer information about the likely future performance of the candidate, because one thing we know for sure is that one of the best predictors of future behaviour is past behaviour .
Personality tests (used for assessing traits such as conscientiousness, confidence and sociability) are increasingly popular tools in employee selection. Tests that assess specific personality traits relevant to a particular job are reasonably valid predictors of job performance (Hogan & Roberts, 1996), whereas general-purpose personality tests have lower validity (Salgado, 1997).
FITTING INTO THE ORGANIZATION
Once you have started work for an organization, it will seek to shape you to fit in and to contribute to achieving its goals. This is done through socialization and training. The stages of socialization Socialization is the process by which members of a society (be it a country, organization or even a family) are taught how to behave and feel by influential members of that society. In the past, theory and research has concentrated on the development of children and adolescents. But more recently it has become clear that we are socialized and resocialized throughout our lives (Wanous, Reichers & Malik, 1984).
When employees start work, they learn about their new jobs, the work environment and how they are required to behave – attending meetings on time, dressing according to certain standards, using particular styles of speech. They learn to align their work values with those of the organization. For example, army recruits are socialized, or indoctrinated, into the ‘army way’, learning not only the rules and regulations but also the values and behaviours that match the army’s distinctive culture. Many commercial organizations emphasize customer service as vital, and require employees to adopt the values, attitudes and behaviours that support such a service strategy.
Socialization has all or some of the following stages (Wanous, 1992):
1 confronting and accepting organizational reality – Wanous (1978) suggested that organizations can make this ‘reality shock’ stage smoother by providing applicants with a realistic job preview describing negative as well as positive aspects of the job;
2 achieving role clarity by discovering what is expected in terms of job requirements and performance;
We discover what psychologists know about the experience of working in an organization, from starting to leaving. This journey through the levels of work organizations and over the lifespan of an individual’s experience can cover only a relatively few topics, but in the process it should provide an insight into a rich and increasingly important sub-discipline. Almost all studies in this area are conducted in the organizations themselves, from three perspectives:
1. individual – selection, socialization, training, leadership, job satisfaction and organizational commitment, and the causes and consequences of stress;
2. group – work group effectiveness and decision making; and
3. organizational – design and culture of the organization, the exercise of power and the experience of women at work. We end by analysing the powerful effects of redundancy and unemployment. But the first step is recruitment. How do organizations achieve a fit between an individual, the job and the organization?
INDIVIDUALS AT WORK
When we consider some of the major factors affecting individuals at work, how they are selected, socialized, developed through training and affected by the behaviour of their bosses and peers, we begin to see how pervasive the effects of our work experience can be in our lives. The jobs we do shape us by offering us a sense of growth, commitment and satisfaction, or they can alienate us, creating chronic feelings of anxiety and directly affecting our health and wellbeing. The influence of work in colouring every aspect of our lives is profound.
MATCHING THE PERSON TO THE JOB
Selection is based on the premise that there are stable individual differences between people, which can be identified, and that these differences have an impact on how effective people are in a particular job (Robertson, 1995). Not surprisingly, psychologists have been at the forefront of developing and using personnel selection methods. One of the aims of selection is to ensure a fit, i.e. a good match, between the person and the organization. Failure to achieve this can not only result in poor job performance, but the well being of the employee also suffers, and ultimately the employment relationship is likely to end.
Common selection procedures
The typical process for designing a selection system begins with a job analysis to identify the essential requirements.
This information is used to create a job description, which forms the basis of a person specification. This specification translates the demands of the job into human terms and lists criteria that an applicant must satisfy if they are to perform the job successfully (Arnold, Robertson & Cooper, 1991). Selection methods determine whether the applicant’s skills, knowledge and abilities meet these criteria. For example, if the person specification states that good verbal reasoning skills are required, a psychological test of verbal reasoning may well be used in the selection procedure. Common selection procedures (from Arnold, Robertson & Cooper 1991) are:
Interviews – often involving more than one interviewer. At a panel interview, the applicant will be questioned by several interviewers. The most important features of a job interview are the extent to which a pre-planned structure is followed, and the proportion of questions that are directly related to the job.
Psychometric tests – including tests of cognitive ability (e.g. general intelligence, verbal ability, numerical ability) and selfreport measures which are designed to evaluate personality. References – usually obtained from current or previous employers, often in the final stages of the selection process. The information requested may be specific or general and open-minded.
Biodata – biographical information about the candidate’s life history. Some biodata inventories contain several questions, including objective questions (such as professional qualifications held) and more subjective ones (such as preferences for different job features). Work-sample tests – using samples of the job (e.g. the contents of an intray for an executive position, or specific kinds of typing for a secretarial post). The applicant is given instructions and a specific amount of time to complete the tasks.
Handwriting analysis – making inferences about the candidate’s characteristics by examining specific features of his/her handwriting, such as slant and letter shapes. Assessment centres – a combination of some of the above techniques. Candidates are usually processed in groups, and some of the techniques require them to interact (e.g. simulated group decision-making exercises).
Although the usefulness of psychometric tests in selection has been hotly debated by psychologists, their validity has been found to be relatively good (Robertson & Kinder, 1993). The drawback from the perspective of employers is that training is required for those who wish to administer and interpret these tests. Even though the financial costs of ineffective selection are potentially large, organizations still rely on techniques such as personal references, graphology (handwriting analysis) and even astrology. These techniques are demonstrably and largely invalid as selection devices (Rafaeli & Klimoski, 1983).
Selection methods need to have good criterion validity. This is the relationship between scores on the selection method and scores on the ultimate performance measures, such as number of sales made, commission earned or other types of outcomes required by the organization (Landy & Farr, 1980). Psychological tests show good criterion validity. For example, one of the best predictors of job performance (for all but very simple jobs) is general intelligence (Hunter & Hunter, 1984). And yet the most frequently used selection method for many jobs is the unstructured interview, which has poor criterion validity. Here, interviewers ask a wide variety of questions, but without planning what questions will elicit the information that best predicts job performance. Structured interviews, involving two or more interviewers asking standard job-related questions of all candidates, are much better selection methods, but they are rarely used (Huffcutt & Arthur, 1994; Wiesner & Cronshaw, 1988). These interviewers are likely to ask targeted questions, such as: ‘Have you ever been in a situation at work where a customer was very angry about a service you had provided? Describe the situation and how you handled it.’ This kind of question will usually elicit clearer information about the likely future performance of the candidate, because one thing we know for sure is that one of the best predictors of future behaviour is past behaviour .
Personality tests (used for assessing traits such as conscientiousness, confidence and sociability) are increasingly popular tools in employee selection. Tests that assess specific personality traits relevant to a particular job are reasonably valid predictors of job performance (Hogan & Roberts, 1996), whereas general-purpose personality tests have lower validity (Salgado, 1997).
FITTING INTO THE ORGANIZATION
Once you have started work for an organization, it will seek to shape you to fit in and to contribute to achieving its goals. This is done through socialization and training. The stages of socialization Socialization is the process by which members of a society (be it a country, organization or even a family) are taught how to behave and feel by influential members of that society. In the past, theory and research has concentrated on the development of children and adolescents. But more recently it has become clear that we are socialized and resocialized throughout our lives (Wanous, Reichers & Malik, 1984).
When employees start work, they learn about their new jobs, the work environment and how they are required to behave – attending meetings on time, dressing according to certain standards, using particular styles of speech. They learn to align their work values with those of the organization. For example, army recruits are socialized, or indoctrinated, into the ‘army way’, learning not only the rules and regulations but also the values and behaviours that match the army’s distinctive culture. Many commercial organizations emphasize customer service as vital, and require employees to adopt the values, attitudes and behaviours that support such a service strategy.
Socialization has all or some of the following stages (Wanous, 1992):
1 confronting and accepting organizational reality – Wanous (1978) suggested that organizations can make this ‘reality shock’ stage smoother by providing applicants with a realistic job preview describing negative as well as positive aspects of the job;
2 achieving role clarity by discovering what is expected in terms of job requirements and performance;
3 becoming situated within the organizational context – settling in and getting used to how things are done; and n detecting signposts of successful socialization – e.g. feeling accepted by colleagues, confidence in completing the job successfully, understanding the formal and informal aspects of the job, and knowing the criteria used to assess job performance.
This process of ‘learning the ropes’ has at least three elements (Van Maanen & Schein, 1979, pp. 226–7):
This process of ‘learning the ropes’ has at least three elements (Van Maanen & Schein, 1979, pp. 226–7):
4 acquiring the knowledge required for both job performance and general functioning in the organization (e.g. how to make a grievance, what quality standards need to be met); n acquiring a strategic base, i.e. a set of decision rules for solving problems and making decisions (e.g. building good relationships with colleagues in your and other departments, knowing whether it is acceptable to question a senior manager’s decision); and
5 learning the organization’s purpose, which may be different from what is publicly stated (e.g. employee welfare may, in practice, be rated much lower than maximizing profits). How your job can change you There is evidence that, over the longer term, an individual’s personality, values and cognitive functioning are changed by their job. Kohn and Schooler (1983) found that jobs high in complexity can enhance intellectual functioning.
5 learning the organization’s purpose, which may be different from what is publicly stated (e.g. employee welfare may, in practice, be rated much lower than maximizing profits). How your job can change you There is evidence that, over the longer term, an individual’s personality, values and cognitive functioning are changed by their job. Kohn and Schooler (1983) found that jobs high in complexity can enhance intellectual functioning.
Rosenstiel (1989) showed that people who started without a strong career orientation and who were supportive of environmental protection become less ‘green’ and more career-orientated when they took a company job. Mortimer, Lorence and Kumka (1986) found that people tend to value more, over time, things like money or challenge that are characteristic of their particular type of work, and to devalue things that are not, such as unconventional dress or antipathy to rules (although they may start their career valuing these latter characteristics more).
Not surprisingly, a problem with strong socialization tactics is that they tend to create conformists with little inclination to innovate. Van Maanen and Schein (1979) proposed six dimensions to socialization tactics:
1. collective vs. individual – the degree to which the organization processes recruits in batches (where everyone has the same learning experiences) or individually;
2. formal vs. informal – the degree to which the process is formalized (as in set training programmes), or is handled informally (such as via individual supervision by the immediate supervisor, and through learning on the job);
3. divestiture vs. investiture – the degree to which the process destroys aspects of the self and replaces them (as in an army training camp), or enhances aspects of the self (as in some forms of professional development);
Not surprisingly, a problem with strong socialization tactics is that they tend to create conformists with little inclination to innovate. Van Maanen and Schein (1979) proposed six dimensions to socialization tactics:
1. collective vs. individual – the degree to which the organization processes recruits in batches (where everyone has the same learning experiences) or individually;
2. formal vs. informal – the degree to which the process is formalized (as in set training programmes), or is handled informally (such as via individual supervision by the immediate supervisor, and through learning on the job);
3. divestiture vs. investiture – the degree to which the process destroys aspects of the self and replaces them (as in an army training camp), or enhances aspects of the self (as in some forms of professional development);
4. serial vs. disjunctive – the degree to which role models are provided (as in apprenticeship or mentoring programmes), or are deliberately withheld (as in sink-or-swim initiations, in which the recruit is expected to figure out her own solutions and is not told what to do);
5. sequential vs. random – the degree to which the process consists of guiding the recruit through a series of discrete steps and roles, as opposed to being open-ended (where training is based on the needs of the individual, and there is no set sequence in his/her progression); and 6. fixed vs. variable – the degree to which stages of the training process have fixed timetables or are open-ended (such as in some promotional systems, where the employee is not advanced to the next stage until she is deemed ready).
Van Maanen and Schein argued that the more a newcomer’s experiences are like the first half of each pair given in the listing above (e.g. collective, formal, sequential, etc.), the more likely the recruit is to conform; individual perspectives and attitudes will be stripped away and replaced by standardized behaviours. Socialization into the army relies on strong socialization tactics. New recruits are trained together, segregated from experienced soldiers, and socialization tends to suppress individual aspects of the self (which are then replaced by conformity to army norms).
Edgar H. Schein (1928– ) is the Sloans Fellows Professor of Management (Emeritus) and Senior Lecturer at the MIT Sloan School of Management. He has contributed to the discipline of organizational psychology in the areas of organization development, career development and organizational culture. In Career Survival: Strategic Job and Role Planning, he presented concepts and activities for managers based on research he first reported in Career Dynamics: Matching Individual and Organizational Needs (1978). He is the author of Organizational Culture and Leadership (1992), and is considered the leading international expert on organizational culture.
TRAINING – DOES IT WORK?
Training is a learning process structured in a systematic fashion and designed to raise the performance level of an employee (Goldstein, 1993; Tannenbaum & Yukl, 1992). With the marked change in work environments over the last quarter of the twentieth century (such as new ways of working, cutbacks at managerial level and the devolution of responsibility and accountability to individual staff) has come an urgent need to develop and maintain staff skills through continuous training. Furthermore, with the expanded use of new technology (and information technology in particular) most people at work need continual trainingto update their skills (Ashton & Felstead, 1995; Pfeffer, 1998; Tharenou & Burke, 2002). Yet the approach to training in many organizations is often haphazard and reactive. Psychologists have much to offer organizations in relation to how training can best be used to achieve a fit between the individual and his job. Organizations must undertake a training needs assessment in order to identify who needs to develop more knowledge and skills to successfully complete their present and future tasks. This is usually done through observation, interview, group discussion and work samples. Training methods include on-thejob training (coaching), lectures, simulations (e.g. cockpit simulation), case studies and programmed instruction (via computers). A critical question (given the huge costs involved) is whether training transfers to job performance. Three factors influence the transfer of training:
1 the similarity of training to work tasks – the more similar the better;
2 the employee’s motivation to use newly learned skills or knowledge on the job; and
3 organizational support for the transfer of training, such as supervisory support for the implementation of new ideas.
Ideally, training should be evaluated to determine whether it is achieving its desired ends. This can range from whether the individual enjoyed the training and applies it, to whether it affects job performance, customer satisfaction or even organizational productivity and profitability. Does training work in practice? Research shows that training improves individual and organizational performance in a variety of ways, including increased organizational productivity, better product quality and improved customer service. In a review of training research, Tharenou and Burke (2002) report that training is related to:
1 the acquisition and retention of essential employees;
2 employee satisfaction;
3 employee turnover rate (i.e. the percentage of employees quitting their jobs each year);
4 work productivity (e.g. sales per employee);
5 product quality; and
6 customer ratings of service and product quality.
5. sequential vs. random – the degree to which the process consists of guiding the recruit through a series of discrete steps and roles, as opposed to being open-ended (where training is based on the needs of the individual, and there is no set sequence in his/her progression); and 6. fixed vs. variable – the degree to which stages of the training process have fixed timetables or are open-ended (such as in some promotional systems, where the employee is not advanced to the next stage until she is deemed ready).
Van Maanen and Schein argued that the more a newcomer’s experiences are like the first half of each pair given in the listing above (e.g. collective, formal, sequential, etc.), the more likely the recruit is to conform; individual perspectives and attitudes will be stripped away and replaced by standardized behaviours. Socialization into the army relies on strong socialization tactics. New recruits are trained together, segregated from experienced soldiers, and socialization tends to suppress individual aspects of the self (which are then replaced by conformity to army norms).
Edgar H. Schein (1928– ) is the Sloans Fellows Professor of Management (Emeritus) and Senior Lecturer at the MIT Sloan School of Management. He has contributed to the discipline of organizational psychology in the areas of organization development, career development and organizational culture. In Career Survival: Strategic Job and Role Planning, he presented concepts and activities for managers based on research he first reported in Career Dynamics: Matching Individual and Organizational Needs (1978). He is the author of Organizational Culture and Leadership (1992), and is considered the leading international expert on organizational culture.
TRAINING – DOES IT WORK?
Training is a learning process structured in a systematic fashion and designed to raise the performance level of an employee (Goldstein, 1993; Tannenbaum & Yukl, 1992). With the marked change in work environments over the last quarter of the twentieth century (such as new ways of working, cutbacks at managerial level and the devolution of responsibility and accountability to individual staff) has come an urgent need to develop and maintain staff skills through continuous training. Furthermore, with the expanded use of new technology (and information technology in particular) most people at work need continual trainingto update their skills (Ashton & Felstead, 1995; Pfeffer, 1998; Tharenou & Burke, 2002). Yet the approach to training in many organizations is often haphazard and reactive. Psychologists have much to offer organizations in relation to how training can best be used to achieve a fit between the individual and his job. Organizations must undertake a training needs assessment in order to identify who needs to develop more knowledge and skills to successfully complete their present and future tasks. This is usually done through observation, interview, group discussion and work samples. Training methods include on-thejob training (coaching), lectures, simulations (e.g. cockpit simulation), case studies and programmed instruction (via computers). A critical question (given the huge costs involved) is whether training transfers to job performance. Three factors influence the transfer of training:
1 the similarity of training to work tasks – the more similar the better;
2 the employee’s motivation to use newly learned skills or knowledge on the job; and
3 organizational support for the transfer of training, such as supervisory support for the implementation of new ideas.
Ideally, training should be evaluated to determine whether it is achieving its desired ends. This can range from whether the individual enjoyed the training and applies it, to whether it affects job performance, customer satisfaction or even organizational productivity and profitability. Does training work in practice? Research shows that training improves individual and organizational performance in a variety of ways, including increased organizational productivity, better product quality and improved customer service. In a review of training research, Tharenou and Burke (2002) report that training is related to:
1 the acquisition and retention of essential employees;
2 employee satisfaction;
3 employee turnover rate (i.e. the percentage of employees quitting their jobs each year);
4 work productivity (e.g. sales per employee);
5 product quality; and
6 customer ratings of service and product quality.
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