Industrial/Organizational Psychology

Question 1

Absolute Techniques (Critical Incident Technique, Forced Choice Rating Scale, BARS

Answer 1

Absolute techniques are methods of subjective performance assessment that indicate a ratee’s performance in absolute terms (i.e. not in terms of the performance of other employees).

The critical incident technique involves using a checklist of critical incidents (descriptions of successful and unsuccessful job behaviors) to rate each employee.

Each item in a forced-choice rating scale consists of two to four alternatives that are considered to be about equal in terms of desirability, and the rater selects the alternative that best or least describes the ratee. BARS is a graphic rating scale that requires the rater to choose the one behavior for each dimension of job performance that best describes the employee.

Question 2

Adverse Impact/80% Rule

Answer 2

Adverse impact occurs when the use of a selection test or other employment procedure results in substantially higher rejection rates for members of a legally protected minority group than for the majority group. The 80% rule can be used to determine if adverse impact is occurring. When using this rule, the hiring rate for the majority group is multiplied by 80% to determine the minimum hiring rate for the minority group

Question 3

Americans with Disabilities Act (ADA)

Answer 3

The ADA requires companies with 15 or more employees to avoid using procedures that discriminate against people with physical or mental disabilities. It also requires that, when a disabled person is able to perform the essential functions of a job, an employer must consider the person qualified and make “reasonable accommodations” that help the person perform the job as long as the accommodations do not result in undue hardship for the employer

Question 4

Big Five Personality Traits

Answer 4

Factor analyses have identified five basic personality traits (neuroticism, extraversion, openness to experience, agreeableness, and conscientiousness. Of these, conscientiousness has been found to be the best predictor of job performance across different jobs, job settings, and criterion measures

Question 5

Brainstorming

Answer 5

Brainstorming is a method of generating creative ideas that requires individuals or group members to freely suggest any idea or thought without criticism, evaluation, or censorship. Research suggests that individuals brainstorming alone do better than the same number brainstorming together.

Question 6

Centralized and decentralized networks

Answer 6

Centralized communication networks are best for simple tasks; while decentralized communication networks are better for complex tasks and are associated with greater overall satisfaction

Question 7

Comparable worth

Answer 7

Comparable worth is also known as pay equity and refers to the principle that jobs that require the same education, experience, skills, and other qualifications should pay the same wage/salary regardless of the employee’s age, gender, race/ethnicity, etc.

Question 8

Compressed Workweek

Answer 8

The compressed workweek is an alternative work schedule that involves decreasing the number of work days by increasing the number of hours worked each day. It is associated with better supervisor ratings of employee performance, employee overall job satisfaction, and employee satisfaction with the work schedule, with the effects being strongest for employee attitudes

Question 9

Consideration and initiating structure

Answer 9

The Ohio State University studies found that the behavior of leaders can be described in terms of two independent dimensions: consideration (person centered style) and initiating structure (task-oriented style)

Question 10

Contingency theory (Fiedler)

Answer 10

Fiedler’s contingency theory proposes that a leader’s effectiveness is related to an interaction between the leader’s style and the nature (favorableness) of the situation. Low LPC leaders (leaders who describe their least preferred coworker in negative terms) are most effective in very unfavorable or very favorable terms; while high LPC leaders (leaders who describe their least preferred coworker in positive terms) are better in moderately favorable situations

Question 11

Criterion contamination

Answer 11

Criterion contamination occurs when a criterion measure assesses factors other than those it was designed to measure. For example, contamination is occurring when a rater’s knowledge of a ratee’s performance on a predictor affects how the rater rates the ratee on the criterion. It can artificially inflate the criterion-related validity coefficient

Question 12

Dawis and Lofquist’s Theory of Work Adjustment

Answer 12

The theory of work adjustment describes satisfaction, tenure, and other job outcomes as the result of the correspondence between the worker and his/her work environment on two dimensions- satisfaction and satisfactoriness:

A worker’s satisfaction with the job depends on the degree to which the characteristics of the job correspond to his or her needs and values

The worker’s satisfactoriness depends on the extent to which the worker’s skills correspond to the skill demands on the job

Question 13

Demand-Control Model (Karasek)

Answer 13

Karasek’s demand-control model predicts that job demand and job control are the primary contributions to job stress. Jobs associated with the highest levels of stress are characterized by a combination of high job demand and low job control and include machine-paced jobs and service jobs

Question 14

Differential Validity and Unfairness

Answer 14

Differential validity exists when the validity coefficient of a predictor is significantly different for one subgroup than for another subgroup (e.g. lower for African American job applicants than for White applicants). Unfairness occurs when members of the minority group consistently score lower on a predictor but perform approximately the same on the criterion as members of the majority group. Differential validity and unfairness are potential causes of adverse impact.

Question 15

Downsizing/Survivor Syndrome

Answer 15

Downsizing occurs when an organization attempts to reduce its cost by reducing the size of the work force and/or by eliminating entire divisions or businesses. Workers who are not “downsized” may exhibit survivor syndrome, which is characterized by depression, anxiety, guilt, stress-related illnesses, and decreased job satisfaction and organizational commitment

Question 16

Equity Theory

Answer 16

proposes that an employee’s motivation is related to the employee’s comparison of his/her input/outcome ratio to the input/outcome ratios of others performing the same or similar jobs. A perception of inequity leads to attempts to restore equity, with the perception of underpayment inequity (the belief that one is putting more into the job than one is getting form it) leading to more adverse outcomes than overpayment inequity does (the belief that one is putting less into the job than one is getting from it)

Question 17

Expectancy Theory

Answer 17

Expectancy theory regards job motivation as the result of three elements:

• expectancy
• instrumentality
• valence

The highest levels of motivation occur when an employee believes that high job effort results in high task success (high expectancy), that high success leads to the attainment of certain outcomes (high instrumentality) , and that the outcomes are desirable (positive valence)

Question 18

Flextime

Answer 18

Flextime is an alternative work schedule that allows workers to choose the times they will begin and end work. It is associated with increased employee productivity, overall job satisfaction, and satisfaction with the work schedule and decreased absenteeism

Question 19

Force Field Analysis (Lewin)

Answer 19

According to Lewin’s force field analysis model of planned change, organizational change involves three changes- unfreezing, changing, and refreezing

Question 20

Formative and Summative Evaluation

Answer 20

Formative evaluations are conducted while a training program is being developed, and their results are used to make necessary modifications to the program.

A summative evaluation is conducted after a program has been implemented in order to assess its outcomes

Question 21

Four Levels of Criteria (Kirkpatrick)

Answer 21

Kirkpatrick identified four levels of criteria for evaluating the effects of a training program- reaction, learning, behavioral, and results

Question 22

Frame-of-reference training

Answer 22

Frame-of-reference training is a type of rater training that emphasizes the multidimensional nature of job performance and focuses on the ability to distinguish between the good and poor work-related behaviors. It is useful for eliminating rater biases.

Question 23

Gender differences in leadership

Answer 23

Eagly and Johnson’s (1990) meta-analysis of the research found that male and female leaders do not consistently differ in terms of consideration or initiating structure. However, female leaders are more likely than male leaders to rely on a democratic (participative) decision-making style

Question 24

Goal-setting theory

Answer 24

Goal-setting theory proposes that employees will be more motivated to achieve goals when they have explicitly accepted those goals and are committed to them. It also proposes that assigning specific, moderately difficult goals and providing employees with feedback about their progress toward achieving goals increases productivity

Question 25

Group norms/idiosyncrasy credits

Answer 25

Group norms are the standard rules of conduct that maintain uniformity of behavior among group members. Idiosyncrasy credits are positive sentiments within a group toward a member that allow that member to occasionally deviate from group norms. A person accumulates idiosyncrasy credits when he/she has a history of conforming to norms, has contributed in some special way to the group, or has served as the group leader

Question 26

Group polarization

Answer 26

Group polarization is the tendency of groups to make more extreme decisions (either more conservative or more risky) than individual members would have made alone

Question 27

Groupthink

Answer 27

Groupthink occurs when the desire of group members for unanimity and cohesiveness overrides their ability to realistically appraise or determine alternative courses or action. It can be alleviated when the group leader encourages dissent, has someone play devil’s advocate, and refrains from stating his/her decision or solution too quickly.

Question 28

Hawthorne Effect

Answer 28

refers to an improvement in job performance resulting from participation in a research study (i.e. due to the novelty of the situation, increased attention etc.

Question 29

Holland (RIASEC, Differentiation)

Answer 29

Holland’s career theory emphasizes the importance of a good personality/work environment match and distinguishes between six personality and environment types (RIASEC)- realistic, investigative, artistic, social, enterprising, and conventional. A personality-environment match is most accurate as a predictor of job outcome when the individual exhibits a high degree of differentiation (i.e. has clear interests as evidenced by a high score on one of Holland’s six types and low scores on all others

Question 30

Identical elements

Answer 30

Providing identical elements (i.e. ensuring that training and performance environments are similar in terms of materials, conditions, etc. - maximizes transfer of training

Question 31

Incremental Validity (Selection ratio, base rate)

Answer 31

Incremental validity refers to the increase in decision-making accuracy resulting from the use of a new predictor. It is maximized when the predictor’s validity coefficient is high, the selection ratio is low, and the base rate is moderate. (The selection ratio is the ratio of number of jobs to job applicants; the base rate is the proportion of successful decisions without the new predictor

Question 32

Internal and External Change Agents

Answer 32

A change agent is a person who is responsible for guiding a change effort. An internal change agent is a member of the organization, is already familiar with the company’s culture, norms, and power structure, and has a personal interest in the change effort. An external change agent (consultant) is often able to see the situation more objectively to bring in a new perspective, and to be better received by the members of the organization because of his/her impartiality

Question 33

Job Analysis vs. Job Evaluation

Answer 33

A job analysis is a systematic process of determining how a job differs from other jobs in terms of required responsibilities, activities, and skills. It is often the first step in the development of a predictor or criterion and is used for other purposes including identifying training needs and determining the causes of accidents. Job analysis must not be confused with job evaluation, which may begin with a job analysis but is conducted for the purpose of setting wages and salaries

Question 34

Job burnout

Answer 34

Job burnout is caused by accumulated stress associated with overwork. Its primary symptoms are a feeling of low personal accomplishment, depersonalization, and emotional exhaustion. An early sign of burnout is a sudden increase in work effort without an increase in productivity.

Question 35

Job enrichment and job enlargement

Answer 35

Job enrichment is a method of job redesign that is based on Herzberg’s two-factor theory and involves making a job more challenging and rewarding in order to increase job motivation and satisfaction. It must not be confused with job enlargement, which involves increasing the number and variety of tasks included in a job without increasing the worker’s autonomy, responsibility, etc.

Question 36

Job Satisfaction (Disposition, age, pay, turnover)

Answer 36

High levels of satisfaction are associated with certain worker and job characteristics (e.g. older employees, higher-level employees, and employees whose jobs allow them to use their skills and abilities tend to be the most satisfied. In addition, twin studies suggest that there is a genetic component to job satisfaction. The relationship between pay and satisfaction is complex and seems to be related more to the perception that one is being paid fairly than to the actual amount of pay. In terms of job outcomes, the strongest relationship is between satisfaction and turnover (r= -.40)

Question 37

Krumboltz’s Social Learning Theory

Answer 37

Krumboltz’s social learning theory focuses on career decision-making and proposes that a person’s decisions are influenced by four factors (i.e. genetic endowment and special abilities, environmental conditions and events, learning experiences, and task approach skills

Question 38

Levels of organization culture (Schein)

Answer 38

According to Schein, organizational culture can be described in terms of three basic levels- artifacts, espoused values and beliefs, and basic underlying assumptions

Question 39

Mediation and Arbitration

Answer 39

Mediation and arbitration are methods of alternative dispute resolution that involve the use of a neutral third-party. However, a mediator cannot dictate an agreement between disputants, but instead, helps clarify the issues, facilitates communication, and offers alternatives and a recommended solution. In contrast, an arbitrator has more authority than a mediator and controls both the process and outcome of conflict resolution.

Question 40

Methods of Training (Job Rotation, Behavioral Modeling, Vestibule Training)

Answer 40

Training in organizations can be on-the-job or off-the-job. Job rotation is an example of the former; behavioral modeling and vestibule training are examples of the latter. Vestibule training takes place in a simulated work environment and is useful when on-the-job training would be too dangerous or disruptive

Question 41

Models of Individual Decision Making (SIMON)

Answer 41

According to the rational-economic model, decision makers attempt to maximize benefits by systematically searching for the best decision or solution.

In contrast, the bounded rationality (Administrative) model proposes that rational decision-making is limited by internal and external constraints so that decision makers often satisfice rather than optimize (they consider decisions or solutions until a fairly good one is encountered and then stop searching due to limited time and resources).

Question 42

Multiple Regression and Multiple Cutoff

Answer 42

Multiple regression and multiple cutoff are methods for using multiple predictor scores. Multiple regression is a compensatory method, while multiple cutoff is noncompensatory

Question 43

National Culture (Hofstede)

Answer 43

According to Hofstede, the culture of nations can be described in terms of five dimensions:

• power distance
• uncertainty avoidance
• individualism
• masculinity
• long-term orientation

Question 44

Need for Achievement (McClelland)

Answer 44

McClelland’s research using the Thematic Apperception Test (TAT) revealed that three basic needs underlie work motivation– need for affiliation, need for power, and need for achievement. Employees with high need for achievement (nACH) usually choose tasks of moderate difficulty and risk, apparently because success on these tasks depends more on effort than on uncontrollable factors. They also prefer frequent, concrete feedback, and although their motivation does not depend on money, they view monetary rewards as a source of feedback and recognition

Question 45

Need Hierarchy Theory (Maslow)

Answer 45

Maslow’s need hierarchy theory proposes that people have five basic needs that are arranged in a hierarchy order such that a need higher in the hierarchy doesn’t serve as a source of motivation until all lower needs have been fulfilled. These needs, in order, are physiological, safety, social, esteem, and self-actualization. The research has not been very supportive of Maslow’s theory.

Question 46

Needs Assessment

Answer 46

Needs assessment is also known as needs analysis and is a systematic process of identifying job performance requirements and employee performance deficits for the purpose of identifying training needs and the content of training programs. It includes organizational, task (job), person, and demographic analyses

Question 47

Normative (Decision Making) Model

Answer 47

The Vroom-Yetton-Jago normative model of leadership distinguishes between five decision making strategies that vary in terms of degree of employee participation in the decision-making process and provides a decision tree to help leaders select the optimal strategy for their situation

Question 48

Organizational Commitment

Answer 48

Organizational commitment refers to the strength of an employee’s identification with the organization. Although commitment seems to have minimal effects on productivity, a high degree of affective commitment is related to higher levels of motivation and satisfaction, lower rates of absenteeism and turnover, and a greater willingness to make sacrifices for the company

Question 49

Organizational Justice

Answer 49

Organizational justice refers to workers’ evaluations of organizational policies and procedures that are paced on their perceived fairness. Three types of organizational justice are distinguished- procedural, distributive, and interactional

Question 50

Overlearning

Answer 50

Overlearning refers to practicing or studying beyond the point of mastery and is associated with enhanced recall

Question 51

Path-Goal Theory

Answer 51

Path-goal theory is based on the assumption that an effective leader is one who can help carve a path for subordinates that allows them to fulfill personal goals through the achievement of group and organizational goals. It proposes that the best leadership style (Directive, supportive, participative, or achievement oriented) depends on certain characteristics of the worker and the work

Question 52

Person-Machine Fit

Answer 52

A distinguishing characteristic of the human factors psychology is its reliance on general systems theory, which is manifested in its emphasis on the person-machine fit (also known as human-machine fit). From this perspective, performance is the result of an interaction between people and machines (or any other non-human element in the work environment), and any failure in performance is due to a person-machine mismatch.

Question 53

Person-Organization Fit

Answer 53

Person-organization (P-O) fit refers to the degree to which a person’s values and beliefs match those of the organization’s culture. A good fit is associated with a number of benefits including higher levels of job satisfaction, motivation, and organizational commitment and lower levels of stress and voluntary turnover.

Question 54

Predictors (General Mental Ability Tests, Biodata, Interviews, Work Samples, Assessment Center)

Answer 54

General mental ability tests are considered to be the best predictor of job performance across different jobs and job settings.

Biodata are also good predictors of performance, especially when items are empirically derived.

Interviews are the most commonly used predictor in organizations but generally have low levels of reliability and validity.

Work samples require the applicant to perform a task or operation actually required by the job.

Assessment centers are used to evaluate and train applicants and current employees at the management or administrative level and incorporate a variety of techniques (e.g. interviews, objective tests, and situational tests)

Question 55

Process Consultation

Answer 55

Process consultation is an organizational development intervention in which a consultant helps members of the organization perceive, understand, and identify ways of improving the processes that are undermining their interactions and the organization’s effectiveness

Question 56

Quality Circles

Answer 56

A quality circle consists of a small voluntary group of employees who work together on a particular job and meet regularly to discuss job-related problems and solutions. Representatives of the quality circle then present their solutions to management.

Question 57

Rater Biases

Answer 57

Rater biases are contaminating factors in the rating process that are related to the way that the rater assigns ratings. Common biases include the central tendency bias, the leniency/strictness bias, and the halo bias. The best way to reduce rater biases is to provide raters with adequate training, especially training that helps them observe and distinguish between different levels of performance (e.g. frame of reference training)

Question 58

Realistic Job Preview

Answer 58

A realistic job preview is a method of providing accurate and complete information about the job and the organization to job applicants. Its primary goal is to reduce turnover by reducing disillusionment-caused by unrealistic expectations about the job

Question 59

Relative Techniques (Paired Comparison, Forced Distribution)

Answer 59

Relative techniques are subjective measures of job performance that compare an employee’s performance to that of other employees.

When using the paired comparison technique, the rater compares each ratee with every other ratee in pairs on one or more dimension of job performance.

When using the forced distribution technique, the rater assigns ratees to a limited number of categories based on a predefined normal distribution on one or more dimensions of job performance

Question 60

Scientific Management

Answer 60

As described by Taylor, scientific management involves (a) scientifically analyzing jobs into their component parts and then standardizing those parts

(b) scientifically selecting, training, and placing workers in jobs for which they are mentally and physically suited
(c) fostering cooperation between supervisors and workers to minimize deviation from scientific methods of work
(d) Having managers and workers assume responsibility for their own share of their work

Question 61

Self-managed work teams

Answer 61

Self-managed work teams are autonomous work groups whose members are trained in the skills needed to effectively perform the group task. Their function is to make hiring, budget, and other decisions that were previously made by managers

Question 62

Situational leadership

Answer 62

Hersey and Blanchard’s situational leadership model proposes that the best leadership style depends on the job maturity of the workers, which is a function of ability and willingness to assume responsibility. It distinguishes between four leader styles- telling, selling, participating, and delegating

Question 63

Social Cognitive Theory

Answer 63

Bandura’s social cognitive theory of motivation emphasizes the self-regulation of behavior and proposes that self-regulation involves four processes- goal-setting, self-observation, self-evaluation, and self-reaction

Question 64

Social Facilitation and Inhibition

Answer 64

Social facilitation refers to the increase in learning and performance that occurs in the presence of others; it is most likely to occur when the task is simple or well-learned

Social inhibition refers to the decrease in learning and performance that occurs in the presence of others; it is most likely to occur when the task is new or complex

Question 65

Social loafing

Answer 65

Social loafing is the tendency of an individual to exert less effort when acting as a member of a team than when working alone. It can be alleviated by ensuring that the individual’s contribution is identified and rewarded

Question 66

Stages of group development

Answer 66

Tuckman and Jensen distinguish between five stages of group development:

• forming
• storming
• norming
• performing
• adjourning

Question 67

Super (Self-concept, career maturity, life-career rainbow)

Answer 67

According to Super’s life-space, life-span theory, the selection of a job involves finding a job that matches one’s self-concept (which reflects one’s values, personality, interests, etc).

The theory also emphasizes the importance of career maturity, which is the ability to cope with the developmental tasks of one’s life stage.

The Life-Career Rainbow relates an individuals’ major life role to five life stages and is useful for helping a career counselee recognize the impact of current and future roles and stages on career planning

Question 68

Taylor-Russell Tables

Answer 68

The Taylor-Russell tables are used to estimate a predictor’s increment validity when the criterion-related validity coefficient, selection ratio, and base rate are known

Question 69

Theory X and Theory Y

Answer 69

According to McGregor:
Theory X managers believe that employees dislike work and avoid it whenever possible and, as a result, must be directed and controlled.

In contrast, Theory Y managers view work as being “as natural as play” and assume that employees are capable of self-control and self-direction

Question 70

Tiedeman and O’Hara’s Career Decision-Making Model

Answer 70

Tiedeman and O’Hara’s career decision-making model describes vocational identity development as an ongoing process that is tied to ego identity development and distinguishes between two phases of decision-making: anticipation and implementation/adjustment

Question 71

Total Quality Management (TQM)

Answer 71

TQM is a management theory that emphasizes customer service, employee involvement (especially teamwork), and continuous improvement in goods and services

Question 72

Transformational and Transactional Leaders

Answer 72

Transformational leaders are characterized by their ability to recognize the need for change, create a vision for change (including using “framing” to describe the need for change in a way that is meaningful to followers), and effectively executing the change.

They are contrasted with transactional leaders who tend to maintain the status quo and rely on rewards and punishments to motivate behavior

Question 73

Two-Factor Theory (Herzberg)

Answer 73

Herzberg’s two-factor theory is a theory of both motivation and satisfaction that places satisfaction and dissatisfaction on two separate continua:

Motivator factors (increased autonomy, responsibility, control, etc.) control to satisfaction and motivation when they are present;

Hygiene factors (pay, pleasant working conditions) contribute to a dissatisfaction when they are absent

Question 74

Types of Group Tasks

Answer 74

Tasks performed by groups can be classified in terms of five types- additives, compensatory, disjunctive, conjunctive, and discretionary

Question 75

Utility Analysis

Answer 75

Utility analysis is used in organizations to evaluate the effectiveness of training programs and other programs and procedures and involves using a mathematical equation to obtain an estimate of the program’s financial return on investment

Question 76

Work-family conflict

Answer 76

Work family conflict refers to conflicts caused by incompatible work and family role demands. It is associated with a number of negative consequences including reduced job, marital, and life satisfaction, job burnout, job turnover, decreased job productivity, and mental and physical health problems

Question 77

Work shifts

Answer 77

Of the three fixed shifts (Day, swing, and graveyard), the graveyard shift is associated with the most problems; however, these problems may be alleviated if the worker voluntarily chooses the graveyard shift. The rotating shift is associated with even more problems than the graveyard shift (e.g. higher accident rates, lower productivity)

Question 78

Yerkes-Dodson law

Answer 78

The Yerkes-Dodson Law predicts that the highest levels of performance are associated with moderate levels of arousal (i.e. the relationship between arousal and performance takes on the shape of an inverted-U)