Detailed Notes Org
Detailed Notes Org
Psychology and
Organisations
Notes
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Part A — Motivation to Work:
This section considers the need hierarchies, cognitive theories and motivators at work.
Part A: Need Theories:
Maslow’s Hierarchy of Needs
• Maslow (1970) suggested that there is a hierarchy of needs, made up of 5 discrete levels. The
top level represents self-actualisation, which is the innate tendency to aspire to achieve one’s
full potential, and was considered by Maslow as the core of being human. This ‘growth’ need
can only be met when the four, lower deficiency needs have been met. These include:
physiological needs, safety and security, love and belongingess and self-esteem. Failure to meet
any one of these deficiency needs results in incongruence, where our perception of ourselves is
not in accordance with our ideal selves, resulting in feelings of worthlessness, and thus a
decreased motivation to work!
• More recent changes to Maslow’s theory include the additions of cognitive needs, aesthetic
needs, self-actualisation and trascendence needs.
1
Collins, J., Hanges, J. and Locke, E.A., The Relationship of Achievement Motivation to
Entrepreneurial Behavior: A Meta-Analysis, Cornell University ILR School, 2004.
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quantitatively measured, and so may have little predictive value of employees’ motivations in
real-life organisations.
3. A strength of the use of need hierarchies is the improved understanding of the organisation
about the conditions that they need to provide in order for the employees to thrive. For
example, according to the ERG theory, existence and relatedness levels must be achieved first
and foremost before the growth needs can be achieved and the employee can realise their
potential.
Expectancy Theory
• Vroom (1964) suggested that workers are motivated based on their individual perceptions of
expectancy. This includes the effort required to reach a certain level of performance, and also
includes the idea of self-efficacy i.e. the worker’s perception of how able they are to complete
the task.
• This links in with Vroom’s assumption that workers are essentially logical, and that the key to
altering their motivation to work is changing their expectancies. This is enabled through
providing extra help, materials, machinery etc.
• The basic assumption of expectancy theory is that ‘Motivation = expectancy x instrumentality x
valence’, where valence is the perception of the value of a reward, whilst instrumentality relies
on the belief of whether the worker will receive the reward.
Equity Theory
• Adams (1963) suggested that workers will find their work satisfying and motivating if their input
into the work roughly equates to the output or rewards of the work, and that this value is similar
across employees. These inputs or outputs may be perceived or actual.
• According to equity theory, feelings of dissatisfaction occur when employees begin to compare
their equity perceptions with that of other employees. Inequity therefore results in feelings of
being either over or underbenefitted.
2
Lunenberg, F.C (2011), Goal-Setting Theory of Motivation, International Journal of Management,
Business, and Administration, 15(1).
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4. Testing the theories above in real-life, natural or field experiments will increase the ecological
validity of the findings because it increases the likelihood that these findings will be
representative of the general population and not simply limited to a specific workplace or
organisation. [This idea is particularly linked with Research Methods].
Reward Systems
• Monetary reward systems can include salaries, bonuses and the sharing of profits. Bonuses
increases the extrinsic motivation of an employee, but may also increase their intrinsic
motivation due to the sense of prestige and fulfillment associated with a large bonus. Profit
sharing creates a strong ‘community spirit’ within the organisation, where collective efforts
towards increasing productivity are valued.
• However, the evidence for the effectiveness of such reward systems is mixed. For example,
Belfield and Marsden (2005), as well as Hollowell (2005) found that high rates of pay was
associated with increased performance, particularly within the financial and stock market
sectors. On the other hand, inequality in pay seems to be detrimental to performance, as
suggested by Bloom (1999) in their case study of basketball players with large pay
discrepancies between individual players.
Non-Monetary Rewards
• Recognition is very different to rewards - recognition is not promised at the start of employment,
whereas rewards are e.g. clarifying the employee’s salary and any potential bonus schemes.
• Recognition may be in the form of verbal praise from an authoritative figure within the
organisation, or gaining a feeling of empowerment from saving the company from a potentially
large loss. Shared profits, in particular, increase a sense of belonging for employees.
• The main types of non-monetary rewards include: Praise, respect, recognition, empowerment
and a sense of belonging.
• The effectiveness of non-monetary rewards was assessed by Brown and Armstrong (1999), who
found that recognition was perceived as a significantly more important factor in determining job
satisfaction, compared to an individual’s salary. This suggests the findings associated with the
effectiveness of non-monetary rewards may be surprising for some organisations!
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• Universalist theories suggest that an individual’s leadership qualities are innate, so they are
biologically destined to become a great leader. This is contrast with behavioural theories, which
suggest that leadership qualities are learned through experience, and so adopts an empiricist
approach. Therefore, universalist and behavioural theories are on opposite ends of the nature-
nurture debate!
• ‘Visionaires’ are individuals who do not take traditional approaches towards leadership, and is a
universalist idea.
• In terms of behaviourist theories of leadership, Stogdill and Coons (1957) suggest that there are
4 qualities which are characteristic of an effective leader: Initiating structure, showing
consideration, displaying task-orientated behaviours and relationship-orientated behaviours.
Adaptive Leadership:
• According to Heifetz et al (2007), adaptive leadership means that companies and organisations
should accept that conventional methods of leadership may not always be applicable in modern
times and in changing circumstances, and so adaptation is necessary to maintain productivity
and success!
• Adaptive leadership suggests that the employer or company need not always take responsibility
for managing and adapting to changing circumstances - instead, it is up to the employees to do
so. This may involve employees channelling their ‘inner authority’ and taking up new
responsibilities, as well as contributing to the formation of new solutions. This is particularly
useful when an organisation is experiencing profound changes.
• Adaptive leadership features the idea of regulating distress, maintaining disciplined attention,
being able to step back and view the whole scenario, being able to make realistic and specific
decisions as to what changes are necessary, as well as taking into account opposing views,
identify which people are best suited to which roles and protect their point of view too.
Leadership Effectiveness:
• Fiedler (1967), in line with his Theory of Leadership Effectiveness, suggested that leadership
strategies will inevitably change according to the type and main goals of the organisation (i.e. a
charity has very different goals compared to a hedge fund) and the amount of power and
influence that each leader is given.
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• In an effort to objectively measure this, the LPC was designed for co-workers to assess each
other on a rating scale, in terms of several key characteristics. These include boring, supporting,
cold, tense, rejecting, friendly and pleasant.
Evaluation:
1. In line with the individual-situational debate, both Fielder’s theory of leadership effectiveness
and Hersey and Blanchard’s situational theory of leadership suggest that a ‘static’ approach to
leadership style is counterintuitive, and so leaders must be prepared to adapt their styles to
suit the demands of the situation.
2. This means that an increased understanding of these two theories may result in improved
leadership and management techniques/strategies across organisations, as well as taking a
new approach towards leadership styles.
3. The distinction made by Muczyk and Reinmann about making a decision, and that ensuring
that that decision has been carried out, is crucial in understanding roles of responsibility within
an organisation, as well as ensuring that the correct individuals have the right amount of
power/influence.
Followership:
• Kelley (1988) suggests that followership describes an individual’s role within an organisation,
and that an effective follower must display self-management, commitment, competence and
courage. These qualities can be measured along the two dimensions of critical thinking and the
activity (active/passive) level of the individual.
• The 5 types of followers are: star followers, the alienated, the pragmatics, the yes-people and
the sheep. All display varying values along the two dimensions described above.
Measuring Leadership
• According to Kouzes and Posner’s (1987) Leadership Practice Inventory, the effectiveness of a
leader and the qualities that they possess can be measured in terms of how they model
desirable behaviours, how they inspire others and challenge the current way of working, how
they mobilise others to work and finally, the personal connections they make with employees
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(i.e. ‘encouraging the heart’). This can be measured along a self-report measure scale, and
values will also depend upon the dispositional traits of the leader e.g. introverts vs extroverts.
Evaluation:
1. Kouzes and Posner adopt an empiricist approach towards explaining leadership qualities,
whilst Kelley adopts a more nativist approach, by suggesting that some leadership types are
innate. Therefore, these theories are on opposite sides of the nature vs nurture debate.
2. Kelley’s theory of followership is refreshing because it focuses on the leader-member
relationship, as opposed to solely focusing on the leadership style (as Denserau has done).
This takes on a more ‘interactionist’ approach towards explaining leadership effectiveness.
Group Development
• Tuckman (1965) suggests that groups develop through the same, universal and set 5 stages of
forming, storming, norming, performing and adjourning.
• On the other hand, instead of taking on a ‘static’ approach where each member is assigned and
exclusive to a certain role, Belbin (1981) emphasised the importance of flexibility in terms of
which tasks each employee can take on, in line with his Theory of Team Roles. This
distinguished between thought-orientated roles, people-orientated roles and action-orientated
roles.
• In an effort to quantify and objectify his theory, Belbin developed the ‘Belbin Test’, which
measures each individual’s skills and assigns them to one of the three roles described above.
Evaluation:
1. An improved understanding of Tuckman’s theory of group development has real-life
applications in terms of informing organisations how groups develop and therefore can
suggest the steps needed to improve group cohesion, leading to improved productivity.
2. The model has limited ecological validity because the original research on which it was based
upon studied small groups, meaning that the model and findings may not be generalisable to
larger groups. This is a particular limitation of using the model in national or global companies,
where task forces are significant.
3. Belbin takes the refreshing approach of assigning individuals to tasks as a way of describing
group development, instead of trying to reduce such a complex process to a mere 5 steps.
This means that Belbin’s approach may be more favoured by larger organisations.
4. A second strength of Belbin’s theory is that, according to Arnold et al (2005), it may explain
the lack of creativity and imagination in several companies, according to the number of
implementers and shapers that an organisation has. This may have a practical application in
terms of informing such organisations which roles are more important, in order to meet their
objectives.
Groupthink
• Janis (1971) suggested that a group of people are almost ‘greedy’ for a certain outcome and
whilst being affected by this phenomenon, can make illogical or irrational decisions.
• Such a process can be characterised by the illusion of invulnerability, a lack of questioning,
rationalising, reinforcing/failing to challenge stereotypes, self-censorship, having concrete mind
guards, adopting illusions of unanimity and feeling the pressure to conform to the majority’s
attitudes or decisions (a similar idea was demonstrated in Asch’s line-judgement task, as part of
research into social influence).
• Stress and dispositional factors have a particularly large influence on groupthink. These can be
combatted by allowing each member to freely discuss their own and each other’s views.
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Cognitive Limitations and Errors
• According to Forsyth (2006), there are three types of cognitive biases which may result in
irrational/illogical decisions. These include the ‘Sins of Commission’ (where information is
incorrectly used to misinform decisions), the ‘Sins of Omission’ (where important pieces of
information may be overlooked) and the ‘Sins of Imprecision’ (where a reductionist approach
towards simplifying difficult decisions may be counterintuitive).
Evaluation
1. Wedley and Field’s strategies to combatting poor decision-making has a significant real-life
application in improving the productivity of organisations, as well as economical implications
in terms of reducing the number of costly mistakes/decisions made.
2. In the same way, an explanation of the groupthink phenomenon can be used to reduce the
influence of conformity to the majority view in large groups, which sometimes may be
incorrect and is a frequent occurrence in particularly large organisations.
3. The acknowledgement of cognitive biases by Forsyth can further improve the techniques used
by organisations to improve decision-making processes.
Evaluation
1. An improved understanding of the ways in which conflicts can be resolved increases the
profitability and community atmosphere of the company, as well as reducing stress caused by
interpersonal differences. This helps to maintain strong working relationships.
2. However, in order to improve the effectiveness of such strategies, it has been suggested that
prejudice and discrimination within the work place should be directly addressed!
Bullying at Work
• According to Einarsen (1999), bullying involves repetitive abuse which can be verbal or physical,
causing humiliation, distress, anxiety and even depression for the victims.
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• This was summarised by Zapf who suggested that there are 5 types of bullying behaviour:
physical violence or threats, personal attacks, verbal threats, social isolation and work-related
bullying (e.g. intentionally increasing the difficulty of a task).
• Einarsen also suggested that bullying develops through the processes of aggressive behaviour,
bullying, stigmatisation and severe trauma: the causes of such processes can be categorized as
either being due to the victim’s or bully’s disposition/personality or situational factors. This in
line with Bjorkqvist et al’s research of Finnish university students in 1994. Such behaviours may
result in overly-sensitive victims, who are exceptionally anxious and have feelings of low self-
worth within the work place.
• Situational factors may include low departamental morale, the victim being easily exposed
within the work place (and so draws a lot of attention to themselves), poor leadership behaviour
(synoptic links with Leadership and Management) and poorly-designed work tasks.
• The different types of bullying, according to Einarsen, include predatory bullying (where there is
seemingly no cause for the bullying, and so may lead to institutional harassment) and bullying
provoked by stress. Both types are examples of displacement mechanisms where the bully
displaces their frustration onto a ‘weaker’ peer, through the process of scapegoating.
Evaluation
1. There are real-life applications associated with an improved understanding of the impacts of
changing working conditions, and that changes in these can change the productivity and
profitability of organisations (in line with the individual-situational debate).
2. The Hawthorne Studies are examples of field experiments, a major advantage of which is that
they have high levels of ecological validity because the studies were carried out in the
conditions where the employees would usually work. This lack of artificial laboratory
conditions decreased the likelihood of demand characteristics, such as social desirability bias,
reducing the reliability of the findings.
3. On the other hand, due to the lack of strictly controlled experimental conditions, extraneous
and confounding variables may have biased the findings of the study, and so reduced its
reliability and validity as an explanation for decreasing job satisfaction.
Shiftwork
• This is an example of a temporal condition which features in jobs where employees do not work
for a regular period of time each week or calendar year e.g. in health and social care.
• According to Pheasant (1991), shift work can be categorized as either rapid rotation (the pattern
of shifts are quickly changed over a short time period) or slow rotation (the pattern of shifts are
slowly changed over a longer time period).
• The negative effects of shift work on health have been demonstrated by Knutsson (2003), who
found that shift workers were at a significantly higher risk of developing gastrointestinal disease,
cardiovascular disease, cancer, diabetes (although findings from studies of the BMI of shift
workers have been mixed), pregnancy (a decreased likelihood of conception and a healthy
pregnancy) and an increased severity of pre-existing eating disorders (due to the disruption of
circadian rhythms, such as the sleep-wake cycle, which are involved in regulating healthy eating
patterns).
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night-time (shift work) nurses. The day-time nurses also reported 30.3% lower rates of nodding
off during their shifts, compared to the night-time nurses.
• Therefore, there is significant evidence to suggest that disruptions of circadian rhythms, as a
result of shift work (and especially the rapid rotation kind), can result in an increased tendency
to ‘nod-off’ and make potentially costly mistakes!
Evaluation
1. Knutsson and Gold’s research suggests that an interactionist approach is best adopted when
explaining the effects of shift work on physiological functioning: changes in environmental
working conditions (nurture), combined with pre-existing genetic vulnerabilities towards
certain physiological disorders (nature), can result in the aggravation of such disorders.
Therefore, the ‘middle-ground’ of the nature versus nurture debate can best explain these
effects.
2. By reducing the intensity and frequency of work which shift workers carry out during the
‘circadian trough’ (at 6AM, there is a dip in productivity and wakefulness due to circadian
sleep-wake patterns), the number of costly mistakes carried out by workers can be reduced.
In addition, reducing shift work has positive economical implications because companies will
have to pay less to treat the sleep-related illnesses of their employees and also see a
decrease in days taken off sick.
3. Most of the research in this area is correlational. This means that causal conclusions cannot
be reached because a ‘cause and effect’ relationship cannot be established between two
variables as part of a correlation. The second consideration is the ‘third variable problem’,
where a third unstudied (confounding) variable may affect both outcomes/variables at the
same time.
4. The lack of a control group within Knutsson’s study (e.g. a control group comprised of those
who do not work shifts) means that it is not possible to conduct statistical tests or make
comparisons between groups, to determine whether or not shift work has a significant effect
on health.
Evaluation
1. Token economies are heavily based on behaviourism, and so have particularly useful real-life
applications in terms of being able to predict and control behaviour/accidents, due to the
emphasis of scientific rigour and objectivity which is featured in behaviourism.
2. However, some have criticised Fox’s study as being unethical due to denying participants the
rewards associated with stamps, even if the accidents were genuine and infrequent.
3. Fox et al. used a field experiment. This has high ecological validity because behaviour is
demonstrated in the environment within which it usually occurs, and so there is a smaller
effect of demand characteristics/participant reactivity.
4. However, the lack of control over extraneous and confounding variables in a field experiment
(unlike a lab experiment, in comparison!) means that the results may have lower reliability,
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whilst a ‘cause and effect’ relationship cannot easily be established between the use of token
economy systems and the prevalence of accidents.
Evaluation
1. A practical application of Herzberg’s theory is to restructure the strategies that organisations
and human resource teams use to maintain or increase both job satisfaction and employee
motivation i.e. by increasing the number of motivators and by decreasing the number of
hygiene factors.
2. The large sample exceeding 200 respondents, suggests that the theory has high ecological
validity and can be generalised to a variety of different organisations.
3. In line with the individual-situational debate, both theories show that small changes in
motivators or hygiene factors (Herzberg), alongside job characteristics (Hackman and Oldham)
can significantly affect job satisfaction and motivation. This can have economical implications
for organisations too, in terms of increasing profitability and productivity.
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• Walter (1974) developed the QWL on the theoretical basis of Heskett, Sasser and Sclesinger
(1997), which includes participants expressing their views on the following aspects of work: the
fairness and equity of pay, the quality of working conditions, opportunities for skill development,
the quality of social relationships, the opportunity to maintain a work-life balance, the policies
and procedures specific to the organisation, and the relevance of their work.
Evaluation
1. The use of psychometric testing, as present in the three examples above, are affected
particularly by social desirability bias and acquiscience bias (both types of demand
characteristics). Therefore, this may reduce the reliability of the findings and the validity of the
theories as a method of explaining job satisfaction.
2. The Job Description Index has a practical real-life application because it compares each
participant’s score to a norm, and so can quantitatively establish the extent of their job
satisfaction or dissatisfaction.
3. The number of choices which respondents can choose from to express their opinions may
also affect the accuracy of each psychometric test as a measure of job satisfaction.
4. The quality of working life is a useful general measure for companies wishing to view a
‘snapshot’ of employee satisfaction. This can therefore lend itself to the development of
policies and procedures to improve specific factors associated with job satisfaction.
Work Sabotage
• According to Giacalone and Rosenfeld (1987), in a study of 38 electrical labourers, found that
there was a negative correlation between increasing ‘reason/justification’ scores (for sabotage)
and decreasing work productivity/efficiency. This suggests that those who sabotage their work
feel entitled and justified to do so, meaning that to improve productivity, companies should look
towards addressing these reasons/cognitive factors.
Absenteeism
• Voluntary or involuntary absenteeism is most frequently caused by work-related stresses, and
has serious economical implications on the profitability of an organisation.
• Blau and Boal (1987) investigated this idea, based upon the two dimensions of organisational
commitment and involvement which can both be rated as either high or low, thus producing 4
combinations. Those who scored highly on these two measures were likely to have the lowest
rates of absenteeism, whilst those who scored poorly on these two measures were likely to have
the highest rates of absenteeism.
• This supports the validity of job involvement and organisational commitment being used as
measures of job satisfaction.
Evaluation
1. According to Gicalone and Roseneld, surveys of sabotage suffer from social desirability bias,
as participants are generally reluctant to admit the possibility of sabotaging their work,
especially when it was unclear as to who would see the results. This means that the findings
were affected by demand characteristics.
2. Self-report measures, and specifically Mowday’s test, typically suffer from social desirability
bias, acquiscience bias and demand characteristics. Special attention must be drawn towards
the phrasing of the questions i.e. avoiding leading questions, emotive language, double-
barrels and double-negatives etc.
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3. The predictive value of measures of organisational commitment and involvement, as
demonstrated by Blau and Boal, are particularly useful because this can help organisations
anticipate any potential problems associated with job satisfaction and employee productivity,
thus resulting in more effective policies and procedures.
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