# Industrial-Organizational Psychology

## Organizational Psychology: The Social Dimension of Work

Organizational psychology is the second major branch of study and practice within the discipline of industrial and organizational psychology. In organizational psychology, the focus is on social interactions and their effect on the individual and on the functioning of the organization. In this section, you will learn about the work organizational psychologists have done to understand job satisfaction, different styles of management, different styles of leadership, organizational culture, and teamwork.

### Job Satisfaction

Some people love their jobs, some people tolerate their jobs, and some people cannot stand their jobs. Job satisfaction describes the degree to which individuals enjoy their job. It was described by Edwin Locke (1976) as the state of feeling resulting from appraising one’s job experiences. While job satisfaction results from both how we think about our work (our cognition) and how we feel about our work (our affect) (Saari & Judge, 2004), it is described in terms of affect. Job satisfaction is impacted by the work itself, our personality, and the culture we come from and live in (Saari & Judge, 2004).
Job satisfaction is typically measured after a change in an organization, such as a shift in the management model, to assess how the change affects employees. It may also be routinely measured by an organization to assess one of many factors expected to affect the organization’s performance. In addition, polling companies like Gallup regularly measure job satisfaction on a national scale to gather broad information on the state of the economy and the workforce (Saad, 2012).
Job satisfaction is measured using questionnaires that employees complete. Sometimes a single question might be asked in a very straightforward way to which employees respond using a rating scale, such as a Likert scale, which was discussed in the chapter on personality. A Likert scale (typically) provides five possible answers to a statement or question that allows respondents to indicate their positive-to-negative strength of agreement or strength of feeling regarding the question or statement. Thus the possible responses to a question such as “How satisfied are you with your job today?” might be “Very satisfied,” “Somewhat satisfied,” “Neither satisfied, nor dissatisfied,” “Somewhat dissatisfied,” and “Very dissatisfied.” More commonly the survey will ask a number of questions about the employee’s satisfaction to determine more precisely why they are satisfied or dissatisfied. Sometimes these surveys are created for specific jobs; at other times, they are designed to apply to any job. Job satisfaction can be measured at a global level, meaning how satisfied in general the employee is with work, or at the level of specific factors intended to measure which aspects of the job lead to satisfaction ().
Research has suggested that the work-content factor, which includes variety, difficulty level, and role clarity of the job, is the most strongly predictive factor of overall job satisfaction (Saari & Judge, 2004). In contrast, there is only a weak correlation between pay level and job satisfaction (Judge, Piccolo, Podsakoff, Shaw, & Rich, 2010). Judge et al. (2010) suggest that individuals adjust or adapt to higher pay levels: Higher pay no longer provides the satisfaction the individual may have initially felt when their salary increased.
Why should we care about job satisfaction? Or more specifically, why should an employer care about job satisfaction? Measures of job satisfaction are somewhat correlated with job performance; in particular, they appear to relate to organizational citizenship or discretionary behaviors on the part of an employee that further the goals of the organization (Judge & Kammeyer-Mueller, 2012). Job satisfaction is related to general life satisfaction, although there has been limited research on how the two influence each other or whether personality and cultural factors affect both job and general life satisfaction. One carefully controlled study suggested that the relationship is reciprocal: Job satisfaction affects life satisfaction positively, and vice versa (Judge & Watanabe, 1993). Of course, organizations cannot control life satisfaction’s influence on job satisfaction. Job satisfaction, specifically low job satisfaction, is also related to withdrawal behaviors, such as leaving a job or absenteeism (Judge & Kammeyer-Mueller, 2012). The relationship with turnover itself, however, is weak (Judge & Kammeyer-Mueller, 2012). Finally, it appears that job satisfaction is related to organizational performance, which suggests that implementing organizational changes to improve employee job satisfaction will improve organizational performance (Judge & Kammeyer-Mueller, 2012).
There is opportunity for more research in the area of job satisfaction. For example, Weiss (2002) suggests that the concept of job satisfaction measurements have combined both emotional and cognitive concepts, and measurements would be more reliable and show better relationships with outcomes like performance if the measurement of job satisfaction separated these two possible elements of job satisfaction.
Job stress affects job satisfaction. Job stress, or job strain, is caused by specific stressors in an occupation. Stress can be an ambiguous term as it is used in common language. Stress is the perception and response of an individual to events judged as overwhelming or threatening to the individual’s well-being (Gyllensten & Palmer, 2005). The events themselves are the stressors. Stress is a result of an employee’s perception that the demands placed on them exceed their ability to meet them (Gyllensten & Palmer, 2005), such as having to fill multiple roles in a job or life in general, workplace role ambiguity, lack of career progress, lack of job security, lack of control over work outcomes, isolation, work overload, discrimination, harassment, and bullying (Colligan & Higgins, 2005). The stressors are different for women than men and these differences are a significant area of research (Gyllensten & Palmer, 2005). Job stress leads to poor employee health, job performance, and family life (Colligan & Higgins, 2005).
As already mentioned, job insecurity contributes significantly to job stress. Two increasing threats to job security are downsizing events and corporate mergers. Businesses typically involve I-O psychologists in planning for, implementing, and managing these types of organizational change.
Downsizing is an increasingly common response to a business’s pronounced failure to achieve profit goals, and it involves laying off a significant percentage of the company’s employees. Industrial-organizational psychologists may be involved in all aspects of downsizing: how the news is delivered to employees (both those being let go and those staying), how laid-off employees are supported (e.g., separation packages), and how retained employees are supported. The latter is important for the organization because downsizing events affect the retained employee’s intent to quit, organizational commitment, and job insecurity (Ugboro, 2006).
In addition to downsizing as a way of responding to outside strains on a business, corporations often grow larger by combining with other businesses. This can be accomplished through a merger (i.e., the joining of two organizations of equal power and status) or an acquisition (i.e., one organization purchases the other). In an acquisition, the purchasing organization is usually the more powerful or dominant partner. In both cases, there is usually a duplication of services between the two companies, such as two accounting departments and two sales forces. Both departments must be merged, which commonly involves a reduction of staff (). This leads to organizational processes and stresses similar to those that occur in downsizing events. Mergers require determining how the organizational culture will change, to which employees also must adjust (van Knippenberg, van Knippenberg, Monden, & de Lima, 2002). There can be additional stress on workers as they lose their connection to the old organization and try to make connections with the new combined group (Amiot, Terry, Jimmieson, & Callan, 2006). Research in this area focuses on understanding employee reactions and making practical recommendations for managing these organizational changes.

### Work–Family Balance

Many people juggle the demands of work life with the demands of their home life, whether it be caring for children or taking care of an elderly parent; this is known as work-family balance. We might commonly think about work interfering with family, but it is also the case that family responsibilities may conflict with work obligations (Carlson, Kacmar, & Williams, 2000). Greenhaus and Beutell (1985) first identified three sources of work–family conflicts:



Women often have greater responsibility for family demands, including home care, child care, and caring for aging parents, yet men in the United States are increasingly assuming a greater share of domestic responsibilities. However, research has documented that women report greater levels of stress from work–family conflict (Gyllensten & Palmer, 2005).
There are many ways to decrease work–family conflict and improve people’s job satisfaction (Posig & Kickul, 2004). These include support in the home, which can take various forms: emotional (listening), practical (help with chores). Workplace support can include understanding supervisors, flextime, leave with pay, and telecommuting. Flextime usually involves a requirement of core hours spent in the workplace around which the employee may schedule their arrival and departure from work to meet family demands. Telecommuting involves employees working at home and setting their own hours, which allows them to work during different parts of the day, and to spend part of the day with their family; this may also be known as ecommuting, working remotely, flexible workspace, or simply working from home. Recall that Yahoo! had a policy of allowing employees to telecommute and then rescinded the policy. There are also organizations that have onsite daycare centers, and some companies even have onsite fitness centers and health clinics. In a study of the effectiveness of different coping methods, Lapierre & Allen (2006) found practical support from home more important than emotional support. They also found that immediate-supervisor support for a worker significantly reduced work–family conflict through such mechanisms as allowing an employee the flexibility needed to fulfill family obligations. In contrast, flextime did not help with coping and telecommuting actually made things worse, perhaps reflecting the fact that being at home intensifies the conflict between work and family because with the employee in the home, the demands of family are more evident.
Posig & Kickul (2004) identify exemplar corporations with policies designed to reduce work–family conflict. Examples include IBM’s policy of three years of job-guaranteed leave after the birth of a child, Lucent Technologies offer of one year’s childbirth leave at half pay, and SC Johnson’s program of concierge services for daytime errands.

### Management and Organizational Structure 

A significant portion of I-O research focuses on management and human relations. Douglas McGregor (1960) combined scientific management (a theory of management that analyzes and synthesizes workflows with the main objective of improving economic efficiency, especially labor productivity) and human relations into the notion of leadership behavior. His theory lays out two different styles called Theory X and Theory Y. In the Theory X approach to management, managers assume that most people dislike work and are not innately self-directed. Theory X managers perceive employees as people who prefer to be led and told which tasks to perform and when. Their employees have to be watched carefully to be sure that they work hard enough to fulfill the organization’s goals. Theory X workplaces will often have employees punch a clock when arriving and leaving the workplace: Tardiness is punished. Supervisors, not employees, determine whether an employee needs to stay late, and even this decision would require someone higher up in the command chain to approve the extra hours. Theory X supervisors will ignore employees’ suggestions for improved efficiency and reprimand employees for speaking out of order. These supervisors blame efficiency failures on individual employees rather than the systems or policies in place. Managerial goals are achieved through a system of punishments and threats rather than enticements and rewards. Managers are suspicious of employees’ motivations and always suspect selfish motivations for their behavior at work (e.g., being paid is their sole motivation for working).
In the Theory Y approach, on the other hand, managers assume that most people seek inner satisfaction and fulfillment from their work. Employees function better under leadership that allows them to participate in, and provide input about, setting their personal and work goals. In Theory Y workplaces, employees participate in decisions about prioritizing tasks; they may belong to teams that, once given a goal, decide themselves how it will be accomplished. In such a workplace, employees are able to provide input on matters of efficiency and safety. One example of Theory Y in action is the policy of Toyota production lines that allows any employee to stop the entire line if a defect or other issue appears, so that the defect can be fixed and its cause remedied (Toyota Motor Manufacturing, 2013). A Theory Y workplace will also meaningfully consult employees on any changes to the work process or management system. In addition, the organization will encourage employees to contribute their own ideas. McGregor (1960) characterized Theory X as the traditional method of management used in the United States. He argued that a Theory Y approach was needed to improve organizational output and the wellbeing of individuals.  summarizes how these two management approaches differ.
Another management style was described by Donald Clifton, who focused his research on how an organization can best use an individual’s strengths, an approach he called strengths-based management. He and his colleagues interviewed 8,000 managers and concluded that it is important to focus on a person’s strengths, not their weaknesses. A strength is a particular enduring talent possessed by an individual that allows them to provide consistent, near-perfect performance in tasks involving that talent. Clifton argued that our strengths provide the greatest opportunity for growth (Buckingham & Clifton, 2001). An example of a strength is public speaking or the ability to plan a successful event. The strengths-based approach is very popular although its effect on organization performance is not well-studied. However, Kaiser & Overfield (2011) found that managers often neglected improving their weaknesses and overused their strengths, both of which interfered with performance.
Leadership is an important element of management. Leadership styles have been of major interest within I-O research, and researchers have proposed numerous theories of leadership. Bass (1985) popularized and developed the concepts of transactional leadership versus transformational leadership styles. In transactional leadership, the focus is on supervision and organizational goals, which are achieved through a system of rewards and punishments (i.e., transactions). Transactional leaders maintain the status quo: They are managers. This is in contrast to the transformational leader. People who have transformational leadership possess four attributes to varying degrees: They are charismatic (highly liked role models), inspirational (optimistic about goal attainment), intellectually stimulating (encourage critical thinking and problem solving), and considerate (Bass, Avolio, & Atwater, 1996).
As women increasingly take on leadership roles in corporations, questions have arisen as to whether there are differences in leadership styles between men and women (Eagly, Johannesen-Schmidt, & van Engen, 2003). Eagly & Johnson (1990) conducted a meta-analysis to examine gender and leadership style. They found, to a slight but significant degree, that women tend to practice an interpersonal style of leadership (i.e., she focuses on the morale and welfare of the employees) and men practice a task-oriented style (i.e., he focuses on accomplishing tasks). However, the differences were less pronounced when one looked only at organizational studies and excluded laboratory experiments or surveys that did not involve actual organizational leaders. Larger gender-related differences were observed when leadership style was categorized as democratic or autocratic, and these differences were consistent across all types of studies. The authors suggest that similarities between genders in leadership styles are attributable to different genders needing to conform to the organization’s culture; additionally, they propose that gender-related differences reflect inherent differences in the strengths each gender brings to bear on leadership practice. In another meta-analysis of leadership style, Eagly, Johannesen-Schmidt, & van Engen (2003) found that women tended to exhibit the characteristics of transformational leaders, while men were more likely to be transactional leaders. However, the differences are not absolute; for example, women were found to use methods of reward for performance more often than men, which is a component of transactional leadership. The differences they found were relatively small. As Eagly, Johannesen-Schmidt, & van Engen (2003) point out, research shows that transformational leadership approaches are more effective than transactional approaches, although individual leaders typically exhibit elements of both approaches.
A new and emerging area of research within psychology focuses on leadership and the relationship with leaders from the perspective of a follower. This “followership” research suggests that studies need to examine the leader-follower relationship in both directions—instead of focusing only on leadership—to better understand the dynamics of the relationship. Put differently, people are individuals, and because they are different, there probably is no single best leadership-follower dynamic between leaders and followers. For instance, think about the differences between yourself and someone you know well. Do you respond the same way to criticism? Maybe one of you likes a lot of structure and other seems to work best with less structure. Perhaps, one of you is ready to try a new restaurant at any time and the other prefers to go to the tried-and-true place that you’ve visited so many times the servers know your order before you place it.
Some early research has discovered that the characteristics of individual followers will result in different types of relationships with a leader depending on the leadership style. It appears that not all leadership styles work well with all follower types. One characteristic of followers, for example, is their degree of extroversion. Previous research suggests that individuals with a high degree of extroversion would need a larger amount of interaction with their leaders in order to function well; however, other research suggests this may not necessarily be the case and instead other factors may be at work (Phillips & Bedeian; Bauer et al, 2006).
Another characteristic of followers is their individual need for growth. For followers who have a strong desire to learn and grow within their organization, a leader who provides developmental opportunities might be better received than one who does not. In addition, for those followers who are low on growth and need strength, leaders who push them to grow may make them less satisfied followers as they feel forced into further development and training, possibly signaling a lower level of achievement from their supervisor. Training for leaders in both helping employees who have a strong drive for growth and those who do not appears to be helpful in improving the relationship between both types of followers and their leaders (Schyns, Kroon, & Moors, 2008).
Finally, an employee’s need for leadership is an important component of the leader-follower relationship. Some individuals are significantly more autonomous than others and as a result do not respond as well to leaders who provide a lot of structure and rigidity of processes, in turn reducing the quality of their relationship with their leader. Other employees who are high in need for leadership have a better relationship with their leader if they are provided with a well-structured environment with clear responsibilities and little ambiguity in their work. These followers work best in situations where they feel they can comfortably perform the work with little requirement to think outside of the guidelines that have been provided. For these individuals, having a leader who is able to set a clear path forward for the employee with little need for deviation promotes a strong positive leader-follower relationship (Felfe & Schyns, 2006).

### Goals, Teamwork and Work Teams

The workplace today is rapidly changing due to a variety of factors, such as shifts in technology, economics, foreign competition, globalization, and workplace demographics. Organizations need to respond quickly to changes in these factors. Many companies are responding to these changes by structuring their organizations so that work can be delegated to work teams, which bring together diverse skills, experience, and expertise. This is in contrast to organizational structures that have individuals at their base (Naquin & Tynan, 2003). In the team-based approach, teams are brought together and given a specific task or goal to accomplish. Despite their burgeoning popularity, team structures do not always deliver greater productivity—the work of teams is an active area of research (Naquin & Tynan, 2003).
Why do some teams work well while others do not? There are many contributing factors. For example, teams can mask team members that are not working (i.e., social loafing). Teams can be inefficient due to poor communication; they can have poor decision-making skills due to conformity effects; and, they can have conflict within the group. The popularity of teams may in part result from the team halo effect: Teams are given credit for their successes. but individuals within a team are blamed for team failures (Naquin & Tynan, 2003). One aspect of team diversity is their gender mix. Researchers have explored whether gender mix has an effect on team performance. On the one hand, diversity can introduce communication and interpersonal-relationship problems that hinder performance, but on the other hand diversity can also increase the team’s skill set, which may include skills that can actually improve team member interactions. Hoogendoorn, Oosterbeek, & van Praag (2013) studied project teams in a university business school in which the gender mix of the teams was manipulated. They found that gender-balanced teams performed better, as measured by sales and profits, than teams made up mostly by men. The study did not have enough data to determine the relative performance of teams with more women than men. The study was unsuccessful in identifying which mechanism (interpersonal relationships, learning, or skills mixes) accounted for performance improvement.
There are three basic types of teams: problem resolution teams, creative teams, and tactical teams. Problem resolution teams are created for the purpose of solving a particular problem or issue; for example, the diagnostic teams at the Centers for Disease Control. Creative teams are used to develop innovative possibilities or solutions; for example, design teams for car manufacturers create new vehicle models. Tactical teams are used to execute a well-defined plan or objective, such as a police or FBI SWAT team handling a hostage situation (Larson & LaFasto, 1989). One area of active research involves a fourth kind of team—the virtual team; these studies examine how groups of geographically disparate people brought together using digital communications technology function (Powell, Piccoli, & Ives, 2004). Even before the COVID-19 pandemic, virtual teams were more common due to the growing globalization of organizations and the use of consulting and partnerships facilitated by digital communication.

### Organizational Culture

Each company and organization has an organizational culture. Organizational culture encompasses the values, visions, hierarchies, norms, and interactions among its employees. It is how an organization is run, how it operates, and how it makes decisions—the industry in which the organization participates may have an influence. Different departments within one company can develop their own subculture within the organization’s culture. Ostroff, Kinicki, and Tamkins (2003) identify three layers in organizational culture: observable artifacts, espoused values, and basic assumptions. Observable artifacts are the symbols, language (jargon, slang, and humor), narratives (stories and legends), and practices (rituals) that represent the underlying cultural assumptions. Espoused values are concepts or beliefs that the management or the entire organization endorses. They are the rules that allow employees to know which actions they should take in different situations and which information they should adhere to. These basic assumptions generally are unobservable and unquestioned. Researchers have developed survey instruments to measure organizational culture.
With the workforce being a global marketplace, your company may have a supplier in Korea and another in Honduras and have employees in the United States, China, and South Africa. You may have coworkers of different religious, ethnic, or racial backgrounds than yourself. Your coworkers may be from different places around the globe. Many workplaces offer diversity training to help everyone involved bridge and understand cultural differences. Diversity training educates participants about cultural differences with the goal of improving teamwork. There is always the potential for prejudice between members of two groups, but the evidence suggests that simply working together, particularly if the conditions of work are set carefully that such prejudice can be reduced or eliminated. Pettigrew and Tropp (2006) conducted a meta-analysis to examine the question of whether contact between groups reduced prejudice between those groups. They found that there was a moderate but significant effect. They also found that, as previously theorized, the effect was enhanced when the two groups met under conditions in which they have equal standing, common goals, cooperation between the groups, and especially support on the part of the institution or authorities for the contact.
One well-recognized negative aspect of organizational culture is a culture of harassment, including sexual harassment. Most organizations of any size have developed sexual harassment policies that define sexual harassment (or harassment in general) and the procedures the organization has set in place to prevent and address it when it does occur. Thus, in most jobs you have held, you were probably made aware of the company’s sexual harassment policy and procedures, and may have received training related to the policy. The U.S. Equal Employment Opportunity Commission (n.d.) provides the following description of sexual harassment:
One form of sexual harassment is called quid pro quo. Quid pro quo means you give something to get something, and it refers to a situation in which organizational rewards are offered in exchange for sexual favors. Quid pro quo harassment is often between an employee and a person with greater power in the organization. For example, a supervisor might request an action, such as a kiss or a touch, in exchange for a promotion, a positive performance review, or a pay raise. Another form of sexual harassment is the threat of withholding a reward if a sexual request is refused. Hostile environment sexual harassment is another type of workplace harassment. In this situation, an employee experiences conditions in the workplace that are considered hostile or intimidating. For example, a work environment that allows offensive language or jokes or displays sexually explicit images. Isolated occurrences of these events do not constitute harassment, but a pattern of repeated occurrences does. In addition to violating organizational policies against sexual harassment, these forms of harassment are illegal.
Harassment does not have to be sexual; it may be related to any of the protected classes in the statutes regulated by the EEOC: race, national origin, religion, or age.

### Violence in the Workplace

Workplace violence is any act or threat of physical violence, harassment, intimidation, or other threatening, disruptive behavior that occurs at the workplace. It ranges from threats and verbal abuse to physical assaults and even homicide (Occupational Safety & Health Administration, 2014).
There are different targets of workplace violence: a person could commit violence against coworkers, supervisors, or property. Warning signs often precede such actions: intimidating behavior, threats, sabotaging equipment, or radical changes in a coworker’s behavior. Often there is intimidation and then escalation that leads to even further escalation. It is important for employees to involve their immediate supervisor if they ever feel intimidated or unsafe.
Murder is the second leading cause of death in the workplace. It is also the primary cause of death for women in the workplace. Every year there are nearly two million workers who are physically assaulted or threatened with assault. Many are murdered in domestic violence situations by boyfriends or husbands who chose the woman’s workplace to commit their crimes.
There are many triggers for workplace violence. A significant trigger is the feeling of being treated unfairly, unjustly, or disrespectfully. In a research experiment, Greenberg (1993) examined the reactions of students who were given pay for a task. In one group, the students were given extensive explanations for the pay rate. In the second group, the students were given a curt uninformative explanation. The students were made to believe the supervisor would not know how much money the student withdrew for payment. The rate of stealing (taking more pay than they were told they deserved) was higher in the group who had been given the limited explanation. This is a demonstration of the importance of procedural justice in organizations. Procedural justice refers to the fairness of the processes by which outcomes are determined in conflicts with or among employees.
In another study by Greenberg & Barling (1999), they found a history of aggression and amount of alcohol consumed to be accurate predictors of workplace violence against a coworker. Aggression against a supervisor was predicted if a worker felt unfairly treated or untrusted. Job security and alcohol consumption predicted aggression against a subordinate. To understand and predict workplace violence, Greenberg & Barling (1999) emphasize the importance of considering the employee target of aggression or violence and characteristics of both the workplace characteristics and the aggressive or violent person.

### Summary

Organizational psychology is concerned with the effects of interactions among people in the workplace on the employees themselves and on organizational productivity. Job satisfaction and its determinants and outcomes are a major focus of organizational psychology research and practice. Organizational psychologists have also studied the effects of management styles and leadership styles on productivity. In addition to the employees and management, organizational psychology also looks at the organizational culture and how that might affect productivity. One aspect of organization culture is the prevention and addressing of sexual and other forms of harassment in the workplace. Sexual harassment includes language, behavior, or displays that create a hostile environment; it also includes sexual favors requested in exchange for workplace rewards (i.e., quid pro quo). Industrial-organizational psychology has conducted extensive research on the triggers and causes of workplace violence and safety. This enables the organization to establish procedures that can identify these triggers before they become a problem.

### Review Questions


### Critical Thinking Questions


### Personal Application Questions
