Psychology 206 Spring Semester 2011 icon

Psychology 206 Spring Semester 2011

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Psychology 206 Spring Semester 2011

Industrial Psychology Charles Peyser

[Prerequisite: Psyc 100 -or- junior standing]

[This course does not satisfy any of the College’s core distribution requirements.]

[This course may be used as one of the two elective courses in the Managerial Track of the Business Minor.]

The course has two semi-independent yet parallel components: the textbook and the class. Classes will be conducted in a wide variety of styles, partly as a demonstration of different training techniques used in business and industry.


Landy, F.J., & Conte, J.M. (2010). Work in the 21st Century: an introduction to industrial and organizational psychology, 3rd ed. Hoboken NJ: John Wiley & Sons.

[You are responsible for mastering the material in the basic text; there is no attempt to “cover” text material in class. Mastery includes being able to provide a brief paragraph describing each of the key terms at the end of each assigned module as well as using appropriate material in a broader context both on Briefings and in essay responses. If you have difficulty with material, stop by my office to discuss the module.]

[Unless otherwise indicated, assignments refer to modules (including their Figures, Tables, and Boxes), not to Case Studies (several of which are explicitly assigned).]

TOPIC OUTLINE (class & text)

In the following pages I offer nothing more than simple facts, plain arguments and common sense; and have no other preliminaries to settle with the reader, other than that he will divest him­self of prejudice and prepossession, and suffer his reason and his feelings to determine for them­selves; that he will put on, or rather that he will not put off, the true character of a man, and gener­ously enlarge his views beyond the present day. --Thomas Paine, Common Sense

Whether bending tin, frying hamburgers, or providing rooms for rent, virtually all of the excellent compa­nies had defined themselves as de facto service businesses. Customers reign supreme. Quality and ser­vice were invariable hallmarks. The findings from the ex­cellent companies amount to an upbeat message. There is good news from America. Good management practice today is not resident only in Japan. But, more important, the good news comes from treating people decently and asking them to shine, and from pro­ducing things that work. --Peters & Waterman, In Search of Excellence, 1982

Hammers are great for pounding nails. You could also use a hammer to cut a two by four, but it would leave a lot of rough edges. For that particular task there is probably a better tool. But to a man who has only a hammer, everything looks like a nail.

^ A. Perspectives on I–O Psychology

{read Landy Preface xx-xxiv, Case Study 1.1 p.47ff}

1. Work … as a component of personality … as a societal component primarily class

Hewlett-Packard founders Bill Hewlett and Dave Packard set out from the very beginning to create a firm which trusted and respected its employees. The goals, policies, and principles of the company—known as the “hp Way”—reflect this trust and concern for people.

To reinforce a sense of unity and shared vision for the company, hp has kept levels of hierarchy at a minimum and tolerates few status symbols. Executive dining rooms, fancy offices, or reserved parking spaces, for exam­ple, have never existed at Hewlett-Packard.

hp also pioneered flexible time and other benefits that demonstrated its faith in the abilities and motives of its employees

It launched “management by walking around” to help maintain a dialogue between hp leadership and employees.

Finally, each hp division creates its own reward and recognition system, which can include cash bonuses, time off, team celebrations, special awards or ceremonies, and stock options --Robert B. Shaw, ^ Trust in the Balance … Building

successful organizations on results, integrity, and concern, 1997

{read Landy 1.1}

2. the scope of Industrial–Organizational Psychology primarily class

change technology … change people … change process/structure

[in the Black & White division—250 product families including X-ray film, micro­film, graphic-arts films] August 1989. Waste problems—can’t sell one-third of all we make; we load up a thousand five-ton dump trucks with wasted prod­uct every year. Cycle time—it takes us forty-two days to run a batch of prod­uct, but we’re only adding value to it 1% of the time, only ten hours productive over 42 days. Deliveries—how often we get the right amount of product to the right place at the right time: 66%.

--Frangos, ^ Team Zebra, 1993

breadth in functioning: Hugo Münsterberg (1863-1916)

There are no excellent companies. The old saw “If it ain’t broke, don’t fix it” needs revision. I propose: “If it ain’t broke, you just haven’t looked hard enough.” Fix it anyway. --Peters, ^ Thriving on Chaos, 1987

importance of context in using research

{read Landy pp.61-62}

meta-analysis … micro- macro- meso-research

{read Landy pp.75-78}


{read Landy pp.54-67}

3. origins:- one history or three? both class & text … two sources, two views

The United States has been terrible as it applies to customer service. When the history of American business is written, I think that’s going to be the most incredible part of the historian’s view of what we did during the sixties and seventies. I mean, we killed the goose that laid the golden egg. ... Somehow, management let employees believe the customers weren’t important. --Fred Smith, founder of Federal Express

{read Landy 1.2, end-sheets: environment, I-O Psyc overview}

a. Engineering [design of equipment and tasks]

In the winter of 1862, General Robert E. Lee took away his troops’ cannons and melted them down to make bigger ones. Lee gambled that it was better to leave his troops without guns in the winter—when attack was less likely—in order to better equip them in the spring. Tomorrow, Lee had decided, was more important than today. --Sullivan & Harper, Hope Is Not A Method, 1996

b. Personnel [WW I army classification program use of psychology’s intelligence researchers]

Why is it that I always get the whole person, when what I really want is a pair of hands? --Henry Ford

c. Systems [WW II military use of psychology’s sensory & learning researchers]

Claas, a leading manufacturer of harvesting combines, owns at least one retail outlet in each major market it sells in. Employees in various internal functions use them as labs to acquire essential first-hand experience in understanding farmers’ needs. --Simon, Hidden Champions:

Lessons from 500 of the World’s Best Unknown Companies, 1996

d. Advertising [separate from I-O until late 20th century: dates to Walter Dill Scott’s 1903 book]

4. multicultural context of the 21st century text only

• theory of cultural determination (Hofstede, 1980)(Triandis, 1995)

{read Landy 1.3}

B. Matching the Worker to the Job [“Industrial”] [“H–R–D” Human–Resource–Development]

You can dream, create, design, and build the most wonderful place in the world ... but it requires people to make the dream a reality. --Walt Disney

1. Individual Differences (basic research area) overall view: text; “a few points” in class

a. KSAOs:- Knowledge, Skills, Abilities, Other characteristics of the person … the potential

Organization doesn’t really accomplish anything. Plans don’t accomplish any­thing, either. Theories of management don’t much matter. Endeavors succeed or fail because of the people involved. Only by attracting the best people will you accom­plish great deeds. --Colin Powell, My American Journey, 1996

{read Landy 3.1, 3.2}

• basic measurement (“assessment”)

{read Landy 3.3, 3.4, 3.5}

b. Performance … the actual

Meetings are indispensable when you don’t want to do anything. One either meets or one works. One cannot do both at the same time. --Peter Drucker

• Campbell’s eight components

• typical vs. peak (maximum)

• exceeding expectations

• counterproductive behaviors

{read Landy 4.1, 4.2}

2. Job Analysis [narrowly construed] somewhat more class

The institutions of the new pluralism have no purpose except outside of them­selves. They exist in contemplation of a “customer” or a “market”. Achievement in the hospital is not a satisfied nurse, but a cured former pa­tient. Achievement in busi­ness is not a happy work force, however desirable it may be; it is a satisfied cus­tomer who reorders the product. --Drucker, The Frontiers of Management, 1986

{read Landy 4.3, 4.4}

a. job-(task) –vs.– worker-(trait) oriented

b. FJA – Functional Job Analysis (Fine, 1951)
developed for mid-code of DOT Dictionary of Occupational titles of the U.S. Employment Services (USES)
now replaced by O*NET Occupational Information Network (Dye & Silver, 1999)

c. PAQ – Position Analysis Questionnaire (McCormick, Jeanneret, & Mecham, 1969)

d. TTA – Threshold traits Analysis (Lopez, Kesselman, & Lopez, 1981)

e. AET – Arbeitswissenschaftliches Erhebungsverfahren zur Tatigkeitsanalyse (Rohmert & Landau, 1983)

f. ARS – Ability Requirement Scales (Fleishman & Mumford, 1991)

g. CIT – Critical Incident Technique (Flanagan, 1954)

h. PPRF – Personality-Relation Position Requirements Form (Guion, 1998)

i. WPS – Work Profiling System (Saville & Holdsworth, 2001)

• comparable worth primarily class

{read Landy 4.5}

3. (re)design for efficiency … the man-machine interface

the following opportunities for improvement were documented with examples from 130 factories:

75-90% Manufacturing lead time

75-80% Setup/changeover time and cost

75-90% Work-in-process inventory

30-40% Indirect labor

20-30% Quality defects --Harmon, ^ Reinventing the Factory II, 1992

a. sensory ability: visual, auditory, minor senses (very brief: class only

b. The Engineering of a Human (Lenihan, 1974) (if done: class only

While capital and machines either are or can be managed toward sameness, peo­ple are individuals. They must be managed that way. When companies dispirit indi­viduals they defeat their ability to change. When companies encourage individual expression, it is difficult for them not to renew. --Waterman, The Renewal Factor, 1987

c. classic approaches:- micromotion class only

Henry Ford made great contributions, but his Model T was not a quality car.

--W. Edwards Deming

• time study Frederick W. Taylor (1856-1915)

good, orthodox, business sense:

hiring the best people . . .

managing the process . . .

economies of scale . . .

moving up the learning curve . . .

volume discounts . . .

designing the Quality in.

[yet] in the final analysis, we have just one resource. Our time. It’s not just that we can get done with a new product development sooner. It’s that we can start on it later. It’s amazing how much smarter you can be when you’re trying to anticipate what customers might want tomorrow instead of what they’ll want next year.

^ Quality is the answer to What.

Customer is the answer to Why.

Time is the answer to How. --Guaspari, It’s About Time, 1992

• motion study Frank and Lillian M. Gilbreth (1868-1924) (1878-1972)

first-pass yield is the most important internal measurement of quality and competitiveness. ... Unless interim rework and product on hold are taken into account, the yield figure will be vastly higher than reality. Suppose the measured yield is 95%; however, 4% of the units in pro­cess must be reworked at each of three rework points. In addition, there are two quality checkpoints at which 20% of the product is held at any one time. ... true first-pass yield is 54% and there is something funda­mentally amiss with the process itself. ... A jewelry company that pro­duces gold rings was convinced its yields were high because there was no scrap on the line. Gold costing what it does, defective rings were melted down and reworked. Although the rings leaving the line were de­fect-free, almost 60% had been reworked ... true first-pass yield turned out to be 43%, a rude awaken­ing indeed for management. --Thomas & Gallace, Quality Alone Is Not Enough, 1992

d. contemporary ergonomics primarily class

Almost all quality improvement comes via simplification of design, manu­facturing, layout, processes and procedures. --Peters, ^ Thriving on Chaos, 1987

{explore the web site}

• kaizen

e. scheduling work primarily class

{read Landy pp. 439-443, 460-465}

• shift work (this one: text only

• flexitime

• compressed workweek

• permanent part-time / job sharing

• telecommuting

f. decision techniques that overcome human limitations class only

If you always agree with your boss, one of you is not necessary.

--Blanchard, Oncken & Burrows,

^ The One Minute Manager Meets the Monkey, 1989

• sampling

• replacement / maintenance models

• linear programming

• queuing theory (just-in-time manufacturing) (just-in-time retailing)

Wal-Mart, ranked No. 1 in Fortune’s 1992 list of the best-managed compa­nies in America, owes much of its profitability to a streamlined inventory management sys­tem in which all vendors are on-line via electronic data interchange. The sys­tem places replenishment orders on a consumption basis. The results: inven­tory turns running furlongs ahead of any other retailer in the nation, just-in-time replenishment, and lower overall costs.

--Thomas & Gallace, ^ Quality Alone Is Not Enough, 1992

• the garbage-can model (Cohen, March, & Olsen, 1972)

4. evaluation of performance on the job somewhat more text

“Your problem, Jill, is that you never make mistakes. Because you don’t make mistakes, I can’t even begin to promote you. If you want to get ahead in this organi­zation, you’d better start making mistakes, and making them now.” [Mistakes aren’t valuable in and of themselves, of course, but the only way to avoid making mistakes is to do nothing new.] “Go ahead, take a few risks; make us different and better. If you make a few mistakes along the way, so be it. We’ll pay for your mistakes be­cause we know it’s a lot more costly to do nothing and never improve.”

--Eigen, How to Think Like a Boss, 1990

{read Landy 5.1, 5.2, 5.3, 5.4}

{read Jaschik summary of Weinberg, Fleisher, & Hashimoto plus comments}

• 360° feedback on job performance

at one of Marriott’s vacation resorts … each week three guests are randomly selected and asked to identify the Marriott employee who has been most helpful dur­ing their stay. Beach towels are given to guests who agree to participate. The employees they choose receive a monetary award and gold stars to wear on their uniforms.

Each of those three employees, in turn, is asked to identify the co-worker who has been most helpful during the week. These co-workers must be members of what is called the heart of the house: the behind-the-scenes staff who are largely invisible to the public. They also receive a cash prize and gold stars.

--J.W. Marriott Jr. & Kathi Ann Brown, ^ Marriott’s Way—The Spirit to Serve, 1997

5. selection and placement (including promotion) of employees (perspective: text only

Finding a good place to work is not easy.

--The 100 Best Companies to Work For in America, 1985

The employer generally gets the employees he deserves.

--Sir Walter Bibley, 19th century economist

{read Landy 6.1,6.2}

a. recruiting Workforce 2000 (very brief: class & text

What HR should not do is illustrated by the actions of a banking business that attempted to cut costs by moving to a part-time teller staffing model. When the com­pany let go its full-time tellers and hired part-time ones, it looked as if it was saving money. But after a short time, it became obvious that something was wrong. When full-time management positions opened, there were few interested tellers … those attracted to part-time positions aren’t interested in management positions; by cutting its full-time staff, the company lost its most promising pool of promotion candidates.

--Becker, Huselid, & Ulrich, ^ The HR Scorecard: linking people, strategy, and performance, 2001

b. combining information text; “a few points” in class

At Cypress Semiconductor (CA) it takes ten telephone interviews, each lasting about fifteen minutes, to find one person with the attitude and skills to enter into the formal process of evaluation. Of those who make it to this stage, only 25% receive an offer. Of these, 85% accept. Thus, it takes about a hundred telephone calls to find two great people. At Cypress, no one—including factory workers—gets a job without at least four interviews. Most potential employees have at least one interview with a vice-president. Candidates then go through a “pack-of-wolves” session. For forty-five minutes the candidate stands at a blackboard to diagram answers to diffi­cult questions thrown out by senior technical people. Next come two in-depth refer­ence checks. --Rodgers, Taylor, & Foreman, No-Excuses Management, 1993

{read Landy 6.3}

c. legal decisions: illegal discrimination primarily class

Most hierarchies were established by men who now monopolize the upper levels, thus depriving women of their rightful share of opportunities for incompetence.

--Laurence J. Peter, The Peter Principle, 1969

{read Landy 6.4, Case Study 6.1 p.310ff, Box 2.2 p.89}

6. training

This training starts with a week of classes for new hires to steep them in company history and customer service techniques. Once on board, everyone, including man­agers, must undergo an hour of training each week—an expensive commitment for Home Depot, given its 150,000 employees. --Roush, Inside Home Depot (1999)

a. learning principles class & text

We should be careful to get out of an experience only the wisdom that is in it—and stop there; lest we be like the cat that sits down on a hot stove-lid. She will never sit down on a hot stove-lid again—and that is well; but also she will never sit down on a cold one anymore. --Mark Twain, Following the Equator

{read Landy 7.1}

b. selecting the trainers primarily class

Knowledge and timber shouldn’t be much used until they are seasoned.

--Yankee proverb

c. basic techniques class & text

{read Landy 7.2, 7.4}

• cross-training and job rotation

In Mehoopany, Pennsylvania, high school students can apprentice at Procter & Gamble’s paper plant. Students learn technical skills and teamwork on site two days a week and attend school the remaining three days. The program begins the last two years of high school and continues through two years of technical or community college.

P&G chose to participate because it makes fiscal sense. At $5 an hour, it costs just $15,000 to employ and train a youth apprentice compared with $34,800 for an adult technician.

The long-term investment offers even greater savings. P&G invests $100,000 over ten years to train the average technician. Typically that hire is thirty years old and stays with the firm approximately seventeen years. Apprentices provide a work force already familiar with the company culture and trained in critical skills. If they are hired at age twenty and work ’till age forty-seven, P&G’s investment costs drop dramatically. --Lynn Olson, The School-to-Work Revolution, 1997

d. pre- and post-training environment class & text

“Why would companies be interested in the training programs of a travel agency?” The answer is that much of our training is philosophical, attitudinal, and cultural. .... Consider training an essential part of your company. It means the difference between success and failure in the service industry, and more and more manufacturing com­panies are finding the competitive battleground is becoming one of service.

--Rosenbluth, ^ The Customer Comes Second, 1992

• evaluation of the training program

We’ve documented the savings from the statistical process control methods and problem-solving methods we’ve trained our people in. We’re running a rate of return of about 30 times the dollars invested.

--Bill Wiggenhorn, Director of Training at Motorola; June 1987

{read Landy 7.3}

e. at Walt Disney World class only

Not markets, not marketing. Not strategic positioning. Customers.

--Peters & Austin, A Passion for Excellence, 1985

^ C. Corporate Culture and Climate [“Organizational”]

One of the reasons Dana works is that trust is a given: You don’t have to earn it; you start with it. --Waterman, The Renewal Factor, 1987

The Ten Commandments and The Sermon on the Mount are all the ethical codes anybody needs. --Harry S Truman

1. motivation to work

Employees are intelligent, curious, and responsible.

--James O’Toole, Vanguard Management, 1986

{read Landy 8.1, 8.2, 8.3, 8.4}

a. “person as machine”

• need hierarchy (Maslow “pyramid”; Alderfer’s ERG; Herzberg’s two-factor] primarily text

Once again, no support was provided for the Maslow model [Lawler & Suttle, 1972]. A review of tests of the Maslow need hierarchy theory concluded that there is no longitudinal support for the theory and only weak support from cross-sectional studies. Wahba and Bridwell [1976] suggest that the need hierarchy theory suffers from both conceptual and operational shortcomings. ... Criticisms such as these are more than bothersome—they are terminal. ... The integrity of a “need” construct of any kind is dubious. --Landy, Psychology of Work Behavior, 1989

• reinforcement (behavior modification) primarily class

People don’t change their behavior unless it makes a difference to them to do so.

--Fran Tarkenton, ^ How to Motivate People, 1986

The One Minute Manager (Blanchard & Johnson, 1982) and The 59-Second Employee (André & Ward, 1984)

The dominant theory of motivation is the carrot-and-stick method (reward and punishment). But close your eyes and imagine what lies between the carrot and the stick. That’s right—a jackass. --Harry Levinson, 1990

^ You Really Oughta Wanna (Mager & Pipe, 1970)

Revel in thoughtful failures that result from fast action-taking. If you haven’t yet cheered at least one interesting failure today, applauded an act of defiance, and removed one tiny hurdle from a champion’s path, you are not foursquare behind fast innovation. --Peters, Thriving on Chaos, 1987

^ Performance Management (Aubrey Daniels, 1980)

Entitlement is the name I have given to an attitude, a way of looking at life: people not really contributing, but still expecting to get their regular raise, their scheduled promotion. When this rich nation stopped requiring performance as a condition for keeping a job or getting a raise, it created a widespread attitude of Entitlement. Entitlement destroys motivation. It lowers productivity. In the long run it crushes self-esteem. And despite the layoffs of recent years, it is epidemic in this country. It’s our legacy of the boom times that followed World War II.

--Bardwick, ^ Danger in the Comfort Zone, 1991

• Theory X (McGregor, 1960) class only

To John Beard

Who taught us the paradox that

A poorly managed business

Finds it easier to satisfy itself

Than to satisfy a customer,

While a well-managed business

Finds it hard to satisfy a customer

And is never satisfied itself.

--Hanan & Karp, ^ Customer Satisfaction, 1989

• Theory Z (Ouchi, 1981) class only

It is ironic that we usually argue that Americans are innovators while the Japanese are copycats. There is a good case for the opposite conclusion. To be sure, we Americans love our cowboy entrepreneur heroes, our touted buyers in retailing, our engineers and deal-makers, and our matchless stream of Nobel Prize winners. But we are the ones who treat our workers as rote executors. And our first-line supervi­sors too. We even treat our middle managers as administrators–not creators of a new (or constantly improving) order. The Japanese, on the other hand, have created a corporate capacity for innovation. They are the ones who insist that every person be constantly involved in improvement projects–every boss, every nonboss, every salesperson and researcher and supplier and subcontractor.

--Peters, ^ Thriving on Chaos, 1987

• ProMes Productivity Measurement & Enhancement System (Pritchard, 1995) text only

b. “person as scientist”

• instrumentality (Vroom’s VIE; the Porter-Lawler Model) class & text

The Minneapolis Marriott states:

Our quality commitment to you is to provide:

• A friendly, efficient check-in

• A clean, comfortable room, where everything works

• A friendly, efficient check-out

If we, in your opinion, do not deliver on this commitment, we will give you $20 in cash. No questions asked. It is your interpretation.

We want to do our job right the first time and exceed your expectations.

--Hart, ^ Extraordinary Guarantees, 1993

• balance (cognitive dissonance; Adams’ Equity) primarily class

Man is driven by an essential “dualism”; he needs both to be a part of something and to stick out. He needs at one and the same time to be a con­forming member of a winning team and to be a star in his own right.

--Peters & Waterman, ^ In Search of Excellence, 1982

c. “person as intentional being”

• goal-setting (MBO) text only

At Cypress Semiconductor (CA) employees at all levels log their work goals for the week (or longer) into a database program that can be viewed by anyone anywhere in the company. The goals system is priceless. It helps people identify items requiring action (an extensive to-do list), set priorities, and measure output.

--Rodgers, Taylor, & Foreman, ^ No-Excuses Management, 1993

• control (Locke & Latham’s feedback loop) text only

• self-efficacy text only

• Theory Y (McGregor, 1960) class only

d. cross-cultural aspects text only

e. generational differences text only

f. job enrichment class & text

Job categories at K/P Corp (commercial printer). The Learner is a worker at the lowest pay rate, who is developing the competencies required to do the job. The Applier is a worker who knows the job well enough to fully meet customer expecta­tions. The Expander is a worker who consistently shares knowledge with others. The Developer is a worker who coaches and helps others develop their com­petencies.

--Wilson, ^ Rewards That Drive High Performance, 1999

g. the independent worker: soloists; temps; microbusinesses class only

Through a combination of managed competition (competitive bidding) and perfor­mance management (gainsharing), reformers in Indianapolis linked the quality of gov­ernment’s performance with the economic well-being of government workers. The result: lower cost and better quality services from city agencies.

Competitive bidding. Shortly after becoming mayor of Indianapolis in 1992, Steve Goldsmith announced that, for the first time, the city’s street-repair work would be put out to bid. Goldsmith told the American Federation of State, County, and Municipal Employees union that its workers, who had traditionally done the street-repair work, could bid for the contract. In prepar­ing their bid, the union worked hard to reduce costs without reducing quality. They won the contract.

By 1996, the city held sixty-four public/private competitions, putting up for bid more than $500 million in work on twenty-seven separate services. The competition cut the city’s projected seven-year costs by more than $100 million.

Gainsharing. If a government agency cut its costs below the level it bid, employ­ees received a share of the savings. For example, the Solid Waste Division beat its first-year bid target by $2.1 million, resulting in gainsharing payments of $1,750 for every employee. --David Osborne & Peter Plastrik,

^ Banishing Bureaucracy. The five strategies

for reinventing government, 1997.

h. fairness, justice, and diversity … does it matter? text only

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