chapter thirteen business. copyright © houghton mifflin company. all rights reserved.13-2...
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Copyright © Houghton Mifflin Company. All rights reserved. 13-2
Industrial/Organizational Psychology
• The study of human behavior in the workplace.
• Hawthorne plant studies found that simply observing workers increased their productivity.• “Hawthorne effect”
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Putting Common Sense to the Test…
Although flawed, job interviews consistently make for better hiring
decisions.
Answer: False…Let’s see why!
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Traditional Employment Interviews
• Do interviews promote sound hiring?
• Research suggests interviewing has mixed effects.• Live interviews may actually diminish the
tendency to make simple stereotyped judgments.
• But one source of bias may be physical attractiveness.
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Figure 13.1: The Bias for Beauty in Hiring
From C.M. Marlowe, S.L. Schenider, and C.E. Nelson (1996) "Gender and Attractiveness Biases in Hiring Decisions: Are More Experienced Managers Less Biased?" Journal of Applied Psychology, 81, 11-21. Copyright (c) 1996 by the American Psychological Association. Adapted with permission.
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Figure 13.2: Job Interviews: A Self-Fulfilling Prophecy?
Phillips & Dipboye, 1989.
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“Scientific”Alternatives to Traditional Interviews
• Polygraph or lie-detector test as a screening device
• Standardized tests measuring:• Intellectual and cognitive abilities• Job specific knowledge and skills• Relevant personality traits• Integrity
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Figure 13.3: Can Integrity Tests Be Faked?
From G.M. Alliger, S.O. Lillienfield and K.E. Mitchell, "The Susceptibility of Overt and Covert Integrity Tests to Coaching and Faking," Psychological Science, Vol. 7, 32-39, 1996. Reprinted with permission of Blackwell Publishing Ltd.
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Structured Interviews
• Structured Interview: Each applicant is asked a standard set of questions and evaluated on the same criteria.
• Assessment Center: Structured setting in which job applicants are exhaustively tested and judged by multiple evaluators.
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Personnel Selection as a Two-Way Street
• Concrete, job-specific tests and interview situations seen as most fair.
• Dislike for more general standardized tests of intelligence, personality, and honesty.
• Preference for in-person interviews.
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Affirmative Action
• The policy whereby preferences in recruiting, hiring, admissions, and promotion are given to women and underrepresented minority groups.
• The debate:• Preferential treatment is necessary to
overcome past inequities.• Policy results in unfair reverse discrimination.
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Figure 13.4: American Attitudes Toward Affirmative Action
USA Today Gallup Poll, 6/23/03
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Why Can Preferential Selection Policies Have Negative Effects?
• People perceive a procedure as unjust to the extent that it excludes those who are qualified simply because of their nonmembership in a group.
• Recipients become less able to attribute success on the job to their own abilities and efforts.
• Seen as a form of assistance.
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Figure 13.6: Varying Effects of Affirmative Action on Women
Heilman et al., 1998.
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Table 13.1: Managing Affirmative Action
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Performance Appraisals
• The process of evaluating an employee’s work within the organization.
• Objective, quantifiable measures are often not available for assessing a worker’s performance.• So, performance appraisals are usually based
on subjective measures.
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Supervisor Ratings
• How accurate and fair are supervisors’ ratings of subordinates’ performances?
• Appraisal-related problems:• Halo effect• Contrast effect• Restriction of range problem
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Putting Common Sense to the Test…
A problem with having workers evaluate their own job performance
is that self-ratings are overly positive.
Answer: True…Let’s see why!
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Self-Evaluations
• Workers are sometimes asked to evaluate their supervisors (“upward feedback”).
• Self-evaluations are subject to many biases because people like to present themselves favorably to others.
• Self-evaluations put both subordinates and female employees at a disadvantage.
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New and Improved Methods of Appraisal
• Make evaluations right after performance.
• Increase the number of evaluators used.
• Teach evaluators some of the skills necessary for making accurate appraisals.
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Due Process Considerations
• Principle #1: There should be adequate notice of expected performance standards.
• Principle #2: Employees should receive a fair hearing.
• Principle #3: Appraisals should be based on evidence of job performance.
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Putting Common Sense to the Test…
The most effective type of leader is one who knows how to win
support through the use of reward.
Answer: False…Let’s see why!
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The Classic Trait Approach
• What traits characterize “natural-born” leaders?
• Some traits have been found to be characteristic of people who become leaders.
• More situationally-oriented theories posit that the emergence of a given leader depends on time, place, and circumstances.
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Fiedler’s Contingency Model of Leadership
• Leaders are either primarily task oriented or relations oriented.
• Task oriented leaders are most effective in clear-cut situations that are either low or high in control.
• Relations oriented leaders perform better in situations that afford a moderate degree of control.
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Vroom & Yetton’s Normative Model of Leadership
• Leadership effectiveness is determined by the amount of feedback and participation leaders invite from workers.
• Effective long-term leadership depends on the having the right amount of worker participation.• The “right amount” depends on situational
factors.
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Transactional Leadership
• Compliance and support from followers is gained primarily through goal setting and the use of rewards.
• Depends on the leader’s willingness and ability to reward subordinates who perform as expected.• As well as the willingness and ability to correct
those who do not.
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Transformational Leadership
• Motivates followers to transcend personal needs in the interest of a common cause.• Particularly in times of growth, change, and
crisis.
• Articulates a clear vision of the future and then mobilizes others to join in that vision.
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Table 13.3: Characteristics of Transformational Leaders
Reprinted by permission from Mind Garden, www.mindgarden.com.
Based on Bass & Avolio, 1990.
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Leadership Among Women and Minorities
• Women and minorities are extremely underrepresented in top leadership positions.
• Are there gender differences with respect to leadership?• Only difference seems to be that men are
more controlling and women more democratic in their approaches.
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Why Are There So Few Women in Top Leadership Positions?
• Conflicted about having to juggle career and family responsibilities.
• Some shy away from competitive hierarchical positions that offer the potential for leadership.
• Societal stereotypes of women as followers, not as leaders.
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Vroom’s (1964) Expectancy Theory
• Workers become motivated and exert effort when they believe that:• Their effort will result in an improved
performance.• Their performance will be recognized and
rewarded.• The money and symbolic rewards that are
offered are valuable and desirable.
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Figure 13.7: Goal-Setting and Performance Cycle
Locke & Latham, 2002.
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Figure 13.8: The Effect of Payment on Intrinsic Motivation
From E.L. Deci (1971) "Effects of Externally Mediated Rewards on Intrinsic Motivation," Journal of Personality and Social Psychology, 18, 105-115. Copyright (c) 1971 by the American Psychological Association. Adapted with permission.
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Bonuses, Bribes, and Intrinsic Motivation
• How a reward is interpreted determines its effect on motivation.• Controlling rewards such as bribes can lower
intrinsic motivation.• Informational rewards such as bonuses can
have a positive effect on intrinsic motivation.
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Putting Common Sense to the Test…
People who feel “overpaid” work harder on the job than those who
see their pay as appropriate.
Answer: True…Let’s see why!
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Equity Considerations
• According to equity theory, people want rewards to be equitable.
• Being overpaid or underpaid should cause distress.
• To relieve the distress from inequity, a person can:• Restore actual equity • Convince oneself that equity already exists.
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Figure 13.9: Equity in the Workplace
From J. Greenberg (1988) "Equity and Workplace Status: A Field Experiment," Journal of Applied Psychology, 73, 606-613. Copyright (c) 1988 by the American Psychological Association. Adapted with permission.
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Equity Considerations (cont.)
• Satisfaction may depend not only on equity outcomes but also on the perceived fairness of how the outcomes were determined.
• Equity in the workplace may be more important for men than for women.
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Social Influences in the Stock Market
• The stock market is influenced by social psychological factors as much as by rational economic factors.• Social comparison and conformity revisited.
• Misperceptions of random events, misattributions, and even unpublished rumors can influence decisions of investors.
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Putting Common Sense to the Test…
People losing money on an investment tend to cut their losses
rather than hang tough.
Answer: False… Let’s see why!
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Commitment, Entrapment, and Escalation
• People can become entrapped by own initial commitments.
• Explanations for the escalation effect• Loss aversion• Feelings of personal responsibility
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Sunk Cost Principle
• People often violate the sunk cost principle of economics.• The principle that only future costs and
benefits, not past commitments, should be considered in making a decision.
• Economic decisions are biased by past investments of time, money, and effort.