Glossary of KEY TERMS: Industrial Organizational

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Adverse Impact vs. Unfairness vs. Differential Validity
ADVERSE IMPACT: states that the % of minorities must be at least 4/5ths of non-minorities selected; UNFAIRNESS: occurs when there are differences on predictor test scores for minorities and non-minorities that don't correspond w/criterion scores; DIFFERENTIAL VALIDITY: occurs when ther are substantively different criterion-related validity coeifficients for different ethnic groups (rarely occurs--past findings due to low sample size)
Job Analysis vs. Job Evaluation
JOB ANALYSIS: describes what must be done on a job; JOB EVALUATION: process for determining the financial worth of a job
1. Standard Application, 2. Weighted Application Blank (assigns weights to certain variables), 3. Biographical Inventory (BIB), covers applicant's life in greater detail, very good predictors of job success and of turnover, time-consuming and costly
Holland's Occupational Themes
Personality-Job Fit Theory: individuals and job traits can be matched: RIASEC (realistic-hands-on, investigative, artistic, social, enterprising, conventional-office)
Assessment Centers; In-Basket Techniques
Simulated job setting; very good criterion related validity: in-basket technique and leaderless group discussion (managerial applicants)
Contrast vs. Halo Effect
CONTRAST EFFECT: ratings of candidate affected by relative strength or weakness of previous candidate; HALO EFFECT: generalizing from one characteristic to the entire person in +/- direction
Cognitive Ability vs. Interest vs. Personality Tests
COGNITIVE ABILITY TESTS: commonly used and good predictors of job success; INTEREST TESTS: poor predictors of job success; PERSONALITY TESTS: poor predictors of job success
Comparative vs. Individual or Absolute Methods of Appraisal
COMPARATIVE: one employee's performance compared with other employees (Straight rankings, forced distribution, paired comparison); INDIVIDUAL/ABSOLUTE: employee rated on different aspects of a job (graphic rating scales, BARS, BOS, forced choice, behavioral checklist)
BARS: based on critical incidents related to successful job performance, expensive and time-consuming, hypothetical rather than actual activities; BOS: rates extent to which person engages in everyday behavior (real life)
Forced Choice vs. Paired Comparisons vs. Forced Distribution
FORCED CHOICE (individual): rater must choose between two seemingly equally desirable choices; PAIRED COMPARISONS (comparative): each employee is compared to every other in pairs; FORCED DISTRIBUTION (comparative): people are ranked to fit a distribution (few at top and bottom, most in middle)
Effects of Training
Pretraining expectations, motivation, active vs. passive practice, massed vs. spaced practice, whole and part learning, transfer of training, feedback, reinforcement
Job Rotation and Japanese Management
JOB ROTATION: exposing trainees (usually managers) to different jobs and departments (typical of Japanese management)
Scientific Management vs. Human Relations Approach
SCIENTIFIC MANAGEMENT (Theory X): workers=extensions of machines; HUMAN RELATIONS APPROACH (Theory Y): attention on workers rather than production
Theory X vs. Theory Y vs. Theory Z
THEORY X: workers are lazy and must be coerced and directed (typical bureaucracy); THEORY Y: workers are industrious and creative & seek challenge and responsibility, participative leadership style; THEORY Z: Japanese employement style: lifelong employment w/emphasis on loyalty, slow promotion w/emphaisis on non-specialized career paths, high levels of group decision making
LPC Theory
HIGH LPC: (relationship-oriented) best in moderately favorable situations; LOW LPC: (task-oriented) bets in highly favorable or unfavorable situations
Transactional vs. Transformational Leader
TRANSACTIONAL LEADER: more traditional; influences through daily, emotionless exchanges; uses rewards, management by objectives, etc.; TRANSFORMATIONAL LEADER: aims to broaden and elevate subordinate goals; utilizes charisma, inspiration, intellectual stimulation, individualized consideration
Five Types of Power
REWARD (ability to provide reward); COERCIVE( ability to punish); LEGITIMATE (based on hierarchy of organization); REFERENT (based on identifying with,admiring, liking person in power); EXPERT (comes from having expertise and skills in relevant area)
Rational Economic vs. Administrative
RATIONAL-ECONOMIC: aka Classical Approach, decisions based on clear definition of problem, nowing all possible alternative and consequences, and choosing optimal solution; ADMINSTRATIVE: aka Satisficing Style (Herbert Simon) problems are ambiguous, one has only partial knowledge and chooses 1st satisfactory alternative
Two-Factor Theory of Motivation: Hygiene, Motivators, Satisfiers, Dissatisfiers, Content, Context
HERZBERG'S TWO FACTOR THEORY: aka Motivator-Hygiene Theory: UPPER LEVEL NEEDS= hygiene factors/dissatiifiers, CONTEXT, pay, working conditions, supervision, result in dissatisfaction when not met but do NOT produce satisfaction and LOWER LEVEL NEEDS=motivators/satisfiers, CONTENT, include needs for achievement, responsibility, opportunity etc., results in satisfaction when needs are met but will NOT produce dissatisfaction
Job Enrichment vs. Job Enlargement
JOB ENRICHMENT: expanding jobs to give employees greater role in planning and performing their work->increased satisfaction and performance, decreased turnover and absenteeism; JOB ENLARGEMENT: expands variety of tasks w/o increasing responsibility->increases satisfaction and only slightly affects performance
Goals and Feedback
LOCKE'S GOAL SETTING APROACH: goals should be specific, of intermediate to high level of difficulty, workers must receive feedback, a sense of self-efficacy will increase performance, and employees must accept the goals
VIE Theory vs. Equity Theory
VROOM'S VALENCE-INSTRUMENTALITY-EXPECTANCY (VIE) THEORY: aka General Expectancy Theory, people behave in ways based on perceived expectancy that certain rewards will follow; ADAM'S EQUITY THEORY: looks at ratio of self-input/outcome vs others' input/outcome, equity is a motivating state and we adjust our performance based on things appearing fair/unfair
Job Satisfaction: Correlations with age, race, occupational level, productivity, turnover
INCREASED JOB SATISFACTION: increases with age, no effect w/gender, whites more satisfied than other races (esp managers), higher occupational level->higher satisfaction, better physical/mental health, weak (+) correlation with productivity, moderate (-) correlation w/absenteeism and turnover, (+) correlation with pay
Human Factors vs. Psychological Approach
HUMAN FACTORS APPROACH: concerned with physical aspects of the job, focus on "operator-machine system"; PSYCHOLOGICAL APPROACH: allows people to meet self-actualization needs w/belief that efficiency/effectiveness correlated with satisfaction; includes job enlargement horizontal loading) and job enrichment (vertical loading)
QUALITY-OF-WORK-LIFE PROGRAMS (QWL): participative programs to improve quality of work life, workers meet in weekly teams to discuss problems, greater effect on satisfaction than performance; QUALITY CONTROL CIRCLES (QCC): concrend with specific ways to improve finished product and level of production->goal is improved quantity and quality of production, consists of 7-10 employees from one department and typically impacts only the organizational unit (not the whole company), results in increased production and satisfaction and less absenteeism/turnover
Organizational Development (OD)
A focus on total organizational change and on systematic ways to bring about planned change; systems approach w/outside consultants; organization, group and individual level interventions
Centralized vs. Decentralized Communication
CENTRALIZED COMMUNICATION: like wheel/chain w/one person in the middle, best for simple tasks and result in fairly rapid communication; DECENTRALIZED COMMUNICATION: like a pinwheel/star, all members can communicate, best for problem-solving, communication tasks, but slower process, more satisfaction
Risky Shift vs. Response Polarization vs. Groupthink
RISKY SHIFT: tendency for people in groups to make riskier decisions than as individuals; RESPONSE POLARIZATION: aka Group Polarization, tendency for people in groups to become more extreme in their views; GROUPTHINK: highly cohesive groups w/members seeking concurrence, consensus, and unanimity more than they seek the best possible alternative--lose critical evaluative capacities
Compressed Work Week vs. Flextime
COMPRESSED WORK WEEK: utilized by about 20% of workforce, result in decreased anxiety, turnover, and increased satisfaction, drawbacks can include fatigue and customer dissatisfaction, mixed effect on productivity; FLEXTIME: utilized by about 40% of workforce, findings are mixed, may increase morale and productivity and decrease lateness, absenteeism, and turnover
Noise in the Workplace
People can adapt to constant/continuous noises w/intermittent noise being more distracting; perception of ability to control noise may be more important than actual ability to control noise
Most Stressed Workers
Night shift workers--the longer the workday or workweek, the lower the productivity; ROTATING SHIFTS are the most detrimental to health with increased error and decreased output

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