WHAT  

IS  ORGANIZATIONAL  PSYCHOLOGY.
Organizational psychology utilizes scientifically-based psychological principles and research methods to
study a variety of topics important to understanding human behavior in many different types of
organizations. As such, organizational psychology is an applied field relevant to virtually all work settings
(and many non-work settings). As you'll see from the list of topics we cover, this stuff is not only
interesting, it's crucial to individual and organizational performance . . . and it directly affects the quality of
people's lives! 

ORGANIZATIONAL   PSYCHOLOGY   helps  to  study  the  human  behavior.

HUMAN BEHAVIOR   is  the  base  of   the  individual  performance.

WHEN   AN  INDIVIDUAL  PERFORMANCE  IS  EXCELLENT,

PERFORMANCE   APPRAISAL   REVEALS   HOW/  WHY   THIS
PERFORMANCE   HAS  TAKEN  PLAN.
WHAT   HUMAN BEHAVIORS  CAUSED  THIS  EXCELLENT  PERFORMANCE.

WHEN   AN  INDIVIDUAL  PERFORMANCE  IS  POOR ,

PERFORMANCE   APPRAISAL   REVEALS   HOW/  WHY   THIS
PERFORMANCE   HAS  TAKEN  PLAN.
WHAT    HUMAN BEHAVIORS  CAUSED  THIS  POOR   PERFORMANCE.
===========================================================

"Organizational psychologists contribute to an organization's success by improving the performance and

well-being of its people. An 
Organizational   psychologist researches and identifies how behaviors and attitudes can be improved
through hiring practices, training programs, and feedback systems.

COMMON  RESEARCH  AND PRACTICE  AREAS  INCLUDE

-job  analysis
-job performance
-recruitment / selection
-performance  appraisal/ management

-individual  assessment [ knowledge /skills/ability / personalty  assessment/assessment  centres]

-training //evaluation
-work motivation.
-job  attitudes
-organization culture
-organization  climate
-organizational  development
etc

ORGANIZATIONAL  PSYCHOLOGISTS  STUDY  INCLUDE

-surveys, experiments,quasi-experiments,  and  observational studies.

Topics in industrial-organizational psychology

Job analysis
Job analysis is often described as the cornerstone of successful employee selection efforts and
performance management initiatives. A job analysis involves the systematic collection of information
about a job. Job-analytic methods are often described as belonging to one of two approaches. One
approach, the task-oriented job analysis, involves an examination of the duties, tasks, and/or
competencies required by a job. The second approach, a worker-oriented job analysis, involves an
examination of the knowledge, skills, abilities, and other characteristics (KSAOs) required to successfully
perform the work. These two approaches are not mutually exclusive. Various adaptations of job-analytic
methods include competency modeling, which examines large groups of duties and tasks related to a
common goal or process, and practice analysis, which examines the way work is performed in an
occupation across jobs.
Job-analytic data are often collected using a variety of quantitative and qualitative methods. The
information obtained from a job analysis is then used to create job-relevant selection procedures,
performance appraisals and criteria, or training programs. Additional uses of job-analytic information
include job evaluations for the purpose of determining compensation levels and job redesign.

Performance appraisal/management
PERFORMANCE   APPRAISAL  or PERFORMANCE  EVALUATION  is the process of measuring an
individual's work behaviors and outcomes against the expectations of the job. Performance appraisal is
frequently used in promotion and compensation decisions, to help design and validate personnel
selection procedures, and for PERFORMANCE  MANAGEMENT . Performance management is the
process of providing performance feedback relative to expectations and improvement information (e.g.,
coaching, mentoring). Performance management may also include documenting and tracking
performance information for organization-level evaluation purposes.
An O. psychologist would typically use information from the job analysis to determine a job's performance
dimensions, and then construct a rating scale to describe each level of performance for the job. Often, the
O. psychologist would be responsible for training organizational personnel how to use the performance
appraisal instrument, including ways to minimize bias when using the rating scale, and how to provide
effective performance feedback. Additionally, the O. psychologist may consult with the organization on
ways to use the performance appraisal information for broader performance management initiatives.

Individual assessment and psychometrics

Individual assessment involves the measurement of  INDIVIDUAL  DIFFERENCES . O psychologists
perform individual assessments in order to evaluate differences among candidates for employment as
well as differences among employees. The constructs measured pertain to job performance. With
candidates for employment, individual assessment is often part of the personnel selection process. These
assessments can include written tests, physical tests, psychomotor tests, personality tests, work samples,
and assessment centers.

Training and training evaluation

Most people hired for a job are not already versed in all the tasks required to perform the job effectively.
Similar to performance management , an O psychologist would employ a JOB ANALYSIS  in concert with
principles of  INSTRUCTIONAL  DESIGN  to create an effective training program. A training program is
likely to include a SUMMATIVE  EVALUATION  at its conclusion in order to ensure that trainees have met
the training objectives and can perform the target work tasks at an acceptable level. 
Training programs often include FORMATIVE  EVALUATIONS  to assess the impact of the training as the
training proceeds. Formative evaluations can be used to locate problems in training procedures and help
O psychologist make corrective adjustments in the while the training is ongoing.
 Take Those Numeric Ratings and - Make Them Motivational

Numeric ratings are one of the most abused components of any measurement and assessment system. They make people angry,
destroy fragile working relationships, make one employee judge another, and create an artificial, thoroughly uncomfortable
situation for both the rater and the person whose work is being rated.

The wonder to me, the way most numeric rating systems are designed, is why you would expect anything different from their use.
If an organization takes unsubstantiated, undocumented, uncommunicated, secret numbers and springs a numeric rating on
employees periodically, expect the worst.

Do numeric ratings make a contribution in the workplace? Done well, I believe numeric ratings can motivate excellent work
performance; done poorly, numeric ratings undermine your positive work environment. Can you use your performance ratings
system as part of a process to promote a culture of organizational excellence?

Yes, in fact, according to Dick Grote, in The Secrets of Performance Appraisal: Best Practices from the Masters, in a landmark
performance-management benchmarking study conducted by the American Productivity and Quality Center (APQC) and
Linkage Inc., rigorous assessments of talent and potential are helping companies make major progress in developing cultures of
performance.

In Current Legal Issues in Performance Appraisal, Stanley B. Malos, J.D., Ph.D. makes six Substantive Recommendations for
Legally Sound Performance Appraisals. Even if legalities are not your concern, these six recommendations set the stage for what
makes an appraisal rating system, for employees or non-employees, sound, and potentially - motivational.

According to Malos, "appraisal criteria:

1. should be objective rather than subjective;

2. should be job-related or based on job analysis;
3. should be based on behaviors rather than traits;
4. should be within the control of the ratee;
5. should relate to specific functions, not global assessments,
6. should be communicated to the employee."

Malos cites procedural recommendations for legally sound performance appraisals as well. His recommendations include:
procedures should be standardized for all people within a job group; they: "should provide notice of performance deficiencies,
and opportunities to correct them; should provide written instructions and training for raters; should require thorough and
consistent documentation across raters that includes specific examples of performance based on personal knowledge."

Performance Measurement and Numeric Ratings System Guidelines

The following ten guidelines, examples, and ideas will assist you to develop a performance measurement and rating system
which is motivational rather than confrontational.

 Take great care in establishing what it is that you want to measure. Jack Zigon, an expert in performance management
and measurement, inPerformance Appraisal Lessons from Thirteen Years in the Trenches, states that, "the hardest part of
creating performance standards is deciding which accomplishments to measure." Once you decide, my experience is that
people will focus the majority of their energies on those aspects of their work for which they believe they are "receiving
credit."
 Develop effective measurements that tell people how they are doing. To the degree these numbers measure what is
actually important in the person’s work, they are effective in molding performance. Don’t pick the outcomes to measure just
because they are easy to assign a numerical target. Some of the most important outcomes from any job, and especially as
more jobs become information based, are not easily measurable.
 As an example, during my consulting engagements, organizations often suggest we measure our success in working together
by the number of training classes they offered and the number of people who attended the training sessions. I always
countered by stating that I wanted to have an impact on their productivity, customer delivery performance, and staff morale;
these measurements were worth their time, even if the impact of training was harder to isolate.

 Establish straightforward, honest criteria that tell people exactly what they must do to achieve a particular numeric
rating. Too often organizations fail to establish criteria beyond the judgment of a manager. If they have criteria, they fail to
share them with employees. Both of these make up a recipe for disaster in employee performance. While organizations are
unlikely to eliminate the judgment of the manager as part of the criteria mix anytime soon, the impact of her opinion should
be minimized, where possible.
Numeric ratings can have a positive impact on your company. Here are more guidelines and ideas that will help you make sure
your numeric ratings are motivational.

Here are more ideas for effective numeric ratings.

 In the APQC/Linkage study cited earlier, the best practice companies placed a significantly greater emphasis on the
identification and assessment of competencies. These differ from goals in that they are formulated company-wide, usually by
the executive group. They form an unchanging communication of what is most important for success in your organization.

Grote found the best practice organizations identified competencies, and then "defined mastery descriptions-narrative
portraits of the behavior that one who mastered the area would likely engage in. While they are much more challenging to
create, mastery descriptions give the appraiser a benchmark against which to compare the actual activities of the individual
she is assessing. Even better, they provide the appraisee with a clear picture of exactly what the organization expects."

 Communicate the established criteria to the people who need the information to perform effectively. If the information
translates poorly to a number, communicate a picture of outcomes expected that is vivid and understandable.

In an example, from a university student center, criteria for the manager’s appraisal and success included measurements such
as the following. You will receive the highest numeric rating if you increase customer satisfaction by 50 percent as measured
by customer comment cards; increase the profitability of the snack shop by 20 percent; and present an environment of
cleanliness and efficiency in which no paper litters the floor, tables are wiped clean and cleared as soon as customers leave,
trash is emptied prior to trash exceeding the containers, and so on.

Criteria were also established and communicated for a mid-range numeric rating, and a poor numeric rating in the same
categories. This manager had absolutely no questions about what was expected and how the expectations would be measured.
She was free to devote her energies to obtaining the most positive numeric ratings.

 Obtain employee input when establishing the criteria and the measurements for the numeric ratings. The above
manager, in the university student center, helped to establish the numeric ratings criteria based upon what she thought would
improve the student experience of her center. She helped create the picture of what would constitute success for her function.
The manager of the catering department, as an example, had different, but no less challenging criteria, based on the needs of
his customers.
 Review the employee’s progress on the defined criteria, goals, and competencies regularly. Quarterly is minimally
sufficient to discuss the staff member’s progress. Monthly is better. Annually is not often enough to impact the culture and
performance. Ideally, each employee knows how they are performing every day.
 Avoid the "horns," or "halo" effect. If an individual meets all established criteria for two months and then misses the
target for the third month in a quarterly reporting period, take into consideration all three months. Too may times, the
person’s performance is assessed based on the down month. While you want to help the employee problem solve and look at
opportunities for improvement, the one down month should not define the person’s performance for that quarter. You will
want to watch for a trend and address it as soon as the trend is apparent.
 The employee needs to see and read his performance ratings, rankings, the judgment calls, and the previously
established criteria that came together to form his ratings.
 Jack Zigon also recommends having the employee collect their own performance feedback data as often as possible.
This can save the time and energy of the manager and allows the employee, who is most familiar with his data, to present it.
This helps the employee take ownership of the data and reduces disagreement and suspicion over reported results.
 Done well, performance criteria and ratings can contribute to a positive, powerfully motivating experience for organization
members. The presence of numeric ratings and performance criteria in your performance management system can help you
formulate the culture you need for success as an organization. Employees know what is expected of them, and they
experience few surprises. People know what to work toward, and they know the rewards and recognition they will achieve
with their success.

How many people do you know who get up in the morning, and go to work thinking, "Gee, I want to be a 3.0 employee on a
scale of 5.0 today?" Not many. Most people want to do a great job and see their contribution to the success of their
organization. What stops them?

Unformulated and unclear criteria for success. An uncommunicated numeric ratings system tied in to unestablished and
unsubstantiated performance expectations. Infrequent feedback. An environment of "guess how to be great, because we sure
aren’t going to tell you." Get real, managers. We can help our organizations do better than this.

Performance Management is NOT an Annual Appraisal

erformance Management System Defined

Performance management begins when a job is defined. Performance management ends when an employee leaves the company.
Between these points, the following must occur for a working performance management system.

 Develop clear job descriptions. Job descriptions are the first step in selecting the right person for the job, and setting
that person up to succeed. I do not mean traditional job descriptions that ended with "and whatever else you are assigned by
the manager." I believe job descriptions provide a framework so the applicants and new employees understand the
expectations for the position. I much prefer to see these expressed as outcomes.
 Select appropriate people with an appropriate selection process. People have different skills and interests. Jobs
have different requirements.Selection is the process of matching the skills and interests of a person to the requirements of a
job. Finding a good job "fit" is exceptionally important. Use a selection process that maximizes input from potential
coworkers and the person to whom the position will report. See What Great Managers Do Differently for more discussion
about selection.
 Negotiate requirements and accomplishment-based performance standards, outcomes, and measures. Ferdinand
F. Fournies, in his long-lasting book, Why Employees Don’t Do What They’re Supposed to Do and What to Do About It,
clearly states the first reason why people sometimes fail to meet your expectations. He says employees don’t know what
they’re supposed to do.
 Provide effective orientation, education, and training. Before a person can do the best job, he or she must have the
information necessary to perform. This includes job-related, position-related, and company-related information; an excellent
understanding of product and process use and requirements; and complete knowledge about customer needs and
requirements.
 Provide on-going coaching and feedback. People need ongoing, consistent feedback that addresses both their
strengths and the weaker areas of their performance.Effective feedback focuses more intensely on helping people build on
their strengths. Feedback is a two-way process that encourages the employee to seek help. Feedback is usually more effective
when requested. Create a work environment in which people feel comfortable asking, "How do you think I’m doing?"
 Conduct quarterly performance development discussions. If supervisors are giving employees frequent feedback
and coaching, performance reviews can change from negative, evaluative, one-sided presentations to positive, planning
meetings. Held quarterly, employees always know how they are performing and their next goals and challenges.
 Design effective compensation and recognition systems that reward people for their contributions. The power of
an effective compensation system is frequently overlooked and downplayed in some employee motivation-related literature. I
think this is a mistake. It is often not so much about the money as it is about the message any reward or recognition sends to
an individual about their value. Money has become a metaphor for value.
 Provide promotional/career development opportunities for staff. The supervisor plays a key role in helping staff
develop their potential. Growth goals, changing and challenging job assignments and responsibilities, and cross-training
contribute to the development of a more effective staff member. Help to create an environment in which people feel
comfortable to experiment and make mistakes.
 Assist with exit interviews to understand WHY valued employees leave the organization. When a valued person
leaves the company, it is necessary to understand why the person is leaving. This feedback will help the company improve its
work environment for people. An improved work environment for people results in the retention of valued staff. If your
environment truly encourages discussion and feedback, you will learn nothing new in an exit interview.

The impact of the Human Resources professional on this performance management system is powerful.

 You can encourage managers and supervisors to take responsibility for managing performance in their work area and
cooperating for performance improvement across the organization.
 You can promote the understanding that even if one individual’s work area, shift, or department is successful, this will
not result in a well-served customer. Because all components of your organization are part of a system that creates value for
your customer, all components must be successful.

So, too, in your performance management system, all components must be present and working to create value for each employee
and the organization.

Need more information about a performance management system? Find the background thinking about an effective performance
management system.