Organisational Psychology

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PSYCHOLOGY AND ORGANISATIONS
ALL YOU NEED TO KNOW
HUMAN RESOURCE PRACTICES

Human resource management (HRM) is the strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of the objectives of the business.

HRM looks at performance appraisal, reward systems and personnel selection processes. There are many aspects to performance appraisal such as job analysis. More detail to be added as appropriate.

Three aspects:

* Job analysis techniques:
1. FJA [functional job analysis] technique examining sequence of tasks in a job. 2. PAQ [positional analysis questionnaire] uses structured questionnaire to analyse jobs. 3. CIT [critical incidents technique] uses examples of successful or unsuccessful job performance.

{ Job analysis is the systematic study of the tasks, duties and responsibilities of a job. It results in a job description and a job specification (information about the human characteristics needed) }

* Performance appraisal:
The process of assessing or evaluating workers/employees on various work related dimensions OR ‘the formalised means of assessing worker performance in comparison with established organizational standards’.

* Reward systems:
e.g. wages or salary; employee benefits administration, etc.

EVALUATION:
* issues concerning reliability and validity
* assumptions made by appraisal techniques
* implications of HRM practices for leader-worker relationships * the usefulness of HRM practices

WHY PERFORMANCE NEEDS TO BE APPRAISED?

Apprasals are important to both employer and employee.

For organization:
* Assessing productivity
* Decide on promotions, demotions, bonuses and firing
* Gives information on training needs
* Validates employee selection
* Evaluate effectiveness of organisational change.

For individual:
* Basis of career advancement
* Feedback on improving performance
* Recognising weaknesses.

PERFORMANCE APPRAISAL TECHNIQUES

Most likely - Specific job analysis techniques:
* FJA [functional job analysis]
* PAQ [positional analysis questionnaire]
* CIT [critical incidents technique]

PROBLEMS / WEAKNESSES ASSOCIATED WITH THESE TECHNIQUES

Most likely – Biases:
1. Ratings may vary according to expectation (e.g. study by Hogan on bank managers). ^Focus on methods of rating, e.g. comparisons, checklists or rating scales. 2. Weakness could be with assessor - being too lenient/severe; halo or recency effect. 3. The ‘similar-to-me’ effect – people perceive people similar to them as better (e.g. Wayne & Liden)

4. Attribution theory also relevant
5. Problem of bias of person administering test; test being inappropriate for task being assessed.

IF YOU OWNED A COMPANY, HOW WOULD YOU APPRAISE THE PERFORMANCE OF YOUR EMPLOYEES?

Most likely:
* 'hard' performance criteria (number of items produced per hour) * 'soft' performance involves subjective judgements by a line manager. Could involve some comparison with another worker, could use a checklist, a graphical rating scale, a behaviourally anchored rating scale, a behavioural observation.

IF YOU OWNED A COMPANY, HOW WOULD YOU REWARD THE GOOD PERFORMANCE OF YOUR EMPLOYEES?

Any appropriate answer acceptable, such as:
a] additional responsibility and enhanced conditions;
b] material reward: salary, commission, bonuses, promotions and competitions/incentive schemes could be used against sales objectives such as volume, profitability, new account development. c] material reward: merchandise incentives, company car etc.

SELECTION OF PEOPLE FOR WORK

PROCEDURE:
(a) personnel recruitment (the means by which companies attract job applicants) (b) personnel screening (the process of reviewing information about job applicants to select workers) (c) personnel selection (via interviewing)....
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