CORPORATE/INDUSTRIAL PSYCHOLOGY

BY- Unnati Shah

• Organization psychology involves the application of various psychological principles in the work arena.

• It deals with human interaction in the workplace and how interaction can be done in a better manner to increase work efficiency, communication and overall functioning of any organization.

• Industrial and organizational psychology (also known as I–O psychology, occupational psychology, work psychology or IWO psychology) is the scientific study of human behaviour in the workplace and organizations.

• Industrial and organizational psychologists contribute to an organization's success by improving the performance, satisfaction, safety, health and well-being of its employees.

• An I–O psychologist conducts research on employee behaviours and attitudes, and how these can be improved through hiring practices, training programs, feedback, and management systems. 

• I–O psychologists also help organizations transition among periods of change and development.

• As of 2012, the field of industrial and organizational psychology covers a huge range of workplace issues, including employee recruitment, hiring, training and retention, as well as workplace diversity, reducing absenteeism, eliminating harassment and discrimination, encouraging teamwork, and increasing worker motivation.

Role of Corporate Psychologists• Design activities and develop schedules that

enable better social interaction between people inside the organization.

• Develop training principles and procedures, Procedures for selection, also design appraisal systems through which interaction inside the organization can be enhanced.

• Tackling problems related to employee turnover and morale.

• Teach management about how to select the right person for a particular job requirement and also set out the criteria through which they can be promoted.

• Conduct a lot of research.

• Develop tests which assess employee skills and ascertain their problem solving abilities for the purpose of improving office efficiency.

• These tests will not just ascertain an employees skills, but also their mental abilities and emotional strengths.

• The aim in using these tests is not just to hire the right personnel, but to also ensure that those who are hired are not ones who are likely to quit in the future.

• Develop coaching tolls that will help to improve relationships between co-workers and also to help them cope with situations that are stressful.

SKILLS

• Active Listening .• Reading Comprehension .• Complex Problem Solving .• Judgment and Decision Making .• Speaking.• Critical Thinking.• Systems Analysis.• Systems Evaluation.• Writing.• Monitoring.

• Conflict is the psychological and behavioral reaction to a perception that another person is either keeping you from reaching a goal, taking away your right to behave in a particular way, or violating the expectancies of a relationship.

• Traditional View of Conflict

–The belief that all conflict is harmful and must be avoided

–Prevalent view in the 1930s-1940s

• One of the key important component of conflict is perception.

• Conflict is often the result of one persons misperception of another’s goals, intensions, or behavior.

• Example- If two people may share the same goals, but 1 person perceives that their goals are different, the possibility of conflict increases.

• The dysfunctional conflict keeps people from working together, lessen productivity, spreads to other areas, and increases turnover.

• Dysfunctional conflict usually occurs when one or both parties feel a loss of control due to the actions of the other party and has its greatest effect on team performance.

• Though all conflicts are dysfunctional, there are times when a moderate degree of conflict arises called as functional conflict.

• Functional conflict, moderate levels of conflict can stimulate new ideas, increase friendly competition and increase team effectiveness.

• Moderate conflicts reduce the risk of much larger conflicts.

Conflict Process

STAGE 1- Potential Opposition or Incompatibility

• Communication– Semantic difficulties, misunderstandings, over

communication and “noise”

• Structure– Size and specialization of jobs– Jurisdictional clarity/ambiguity– Member/goal incompatibility– Leadership styles (close or participative)– Reward systems (win-lose)– Dependence/interdependence of groups

• Personal Variables– Differing individual value systems– Personality types

STAGE 2- Cognition and Personalization

• Important stage for two reasons:

1. Conflict is defined • Perceived Conflict

– Awareness by one or more parties of the existence of conditions that create opportunities for conflict to arise

2. Emotions are expressed that have a strong impact on the eventual outcome• Felt Conflict

– Emotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility

STAGE 3- Intentions 

• Intentions– Decisions to act in a given way– Note: behavior does not always accurately

reflect intent• Dimensions of conflict-handling intentions:– Cooperativeness

• Attempting to satisfy the other party’sconcerns

– Assertiveness• Attempting to satisfy

one’s own concerns

Stage 4- Behavior

• Conflict Management

– The use of resolution and stimulation techniques to achieve the desired level of conflict

• Conflict-Intensity Continuum

Conflict Resolution Techniques

– Problem solving– Superordinate goals– Expansion of

resources– Avoidance– Smoothing– Compromise– Authoritative

command– Altering the human

variable– Altering the structural

variables

Conflict Stimulation Techniques

– Bringing in outsiders– Communication– Restructuring the

organization– Appointing a devil’s

advocate

Stage 5- Outcomes• Functional

– Increased group performance– Improved quality of decisions– Stimulation of creativity and 

innovation– Encouragement of interest 

and curiosity– Provision of a medium for 

problem solving– Creation of an environment 

for self-evaluation and change

• Dysfunctional– Development of discontent– Reduced group effectiveness– Retarded communication– Reduced group cohesiveness– Infighting among group 

members overcomes group goals

• Managing Functional Conflict– Reward dissent and punish 

conflict avoiders

                             

Types of conflicts

1. Interpersonal Conflict- • Occurs between 2 individuals.• Example- In the work place

interpersonal conflict may occur between two coworkers, a supervisor and a subordinate, an employee and customer, or an employee and a vendor.

2. Individual-Group Conflict• Occurs between an individual and a

group.• It occurs when the individuals needs are

different from the groups needs, goals or norms.

• Example – basketball, football etc.

3. Group-Group Conflict- Occurs between two or more groups.Example- Banks.They compete not only with other banks butalso with their branches for getting morecustomers.

        

              Causes of conflict

CAUSES1. Competition for

resources.2. Task Interdependence.3. Jurisdictional

Ambiguity.4. Communication

Barriers.5. Beliefs.6. Personality.

1. Competition for resources-• When demand for a resource exceeds its

supply, conflict occurs.• Example- in college students and faculty

fight over parking space. Once resolved, juniors and seniors fight over the same.

2. Task interdependence-• When performance of one small group

members depends on the performance of other group members.

• When 2 groups who rely on each other have conflicting goals.

• Examples- The production department in a company wants to make high volume of goods, where as the quality department wants only good quality goods. Neither departments can work without the help of each other.

3. Jurisdictional Ambiguity-• Found when geographical boundaries or

lines or authority are unclear.• Example- 2 employees might argue

about who’s job is it to receive emails, 2 supervisors might fight over who is in charge when the vice- president is out of town, etc.

4. Communication Barriers-• Barriers to inter-personal communication

can be physical, such as separate locations on different floors or in different buildings, cultural, such a different languages, or different customs, or psychological, such as different styles or personalities.

5. Beliefs-• Conflicts occur when individuals or groups believe that they are:

1. Superior to other ppl or groups2. Have been mistreated by others3. Are vulnerable to others 4. Cannot trust themselves5. Are helpless or powerless

6. Personality- • Conflict is the result of ppl with incompatible 

personalities working together. • Example- It has been suggested that ppl who are 

dogmatic and authoritarian and have low self-esteem are involved in more conflicts than open minded ppl who feel good about themselves. 

• Ppl with high needs for perfection are obsessed with completing task correctly.

• They agree with anyone or any idea. • These personality types include: • Whiner- constantly complains about the

situations but never tries to change it.• No person- believe that nothing will ever

work and thus disagrees with ever situation or idea.

• Nothing person- responds to difficult situation by not doing or saying nothing. Simply gives up.

• Ppl with high needs for approval are obsessed with being liked.

• Their behavior is centered on gaining approval.• Yes people- agrees to everything. Often agrees to so much that they cannot keep up the commitments. 

• Maybe person- avoids conflict by never taking a stand on any issues. Takes decisions, offers opinions, and commits to any course of action.

• Ppl with high needs for attention are obsessed with being appreciated.

• They behave in a manner that will get them noticed.

• Grenade- throws tantrum when they feel they aren’t appreciated. Yells, swears, rants and raves.

• Friendly sniper- gets attention by poking fun at others.

• Think-they-know-it-all- exaggerates, lies and gives unwanted advice to gain attention.

       

              Conflicting Styles

• Most ppl have a particular style they use when faced with conflicts.

1. Avoiding Style-• Ppl using this choose to ignore the

conflict and hope it will resolve itself. • Not the best way to handle every type of

situation.• Withdrawal from the situation is one of

the easiest ways to handle it.

Triangl-ing- interesting form of avoidance.

• Occurs when the situation is discussed with the third party hoping that they will talk to the second party and resolve the conflict.

2. Accommodating Style-

When a person is so intent on settling a conflict that he gives in and risks hurting himself. 

• Ppl who use this are considered cooperative but weak. 

3. Forcing Style-A person who handles conflict in a win-lose

fashion and does what it takes to win, with little regard for the other person.

• Appropriate in times of emergencies, when there is violation of rules, ethics and policies.

• Winning at all costs strategy occurs especially when a person regards his side as correct and other person is regarded as an enemy.

4. Collaborating Style- • Individual wants to win but also wants to

see the other person win.• These ppl seek win-win solutions. • Best style to use.• Time consuming and may not be

appropriate during emergencies.

5. Compromising style• User tries to adopt give-and-take tactics

that enables each side to get some of what it wants but not every-thing it wants.

• This compromising involves negotiation and bargaining.

• Negotiation begins with each side making an offer that is much more than what it really wants.

• According to Schatzki, a settlement range is between LAR Least Acceptable Result and MSP Maximum Supportable Position for each side.

• LAR is the lowest settlement that a person is willing to make. Must be realistic and must satisfy a person real needs.

• MSP is the best possible settlement. Reasonably supported with logic and facts.

• An important influence on the outcome of a negotiation is called best alternative to a negotiated agreement. BATNA)

• BATNA is the best alternative that negotiators have if they cant reach an agreement.

• Example- If I’m buying a car and I already have an offer of $26,000 from one dealer (my BATNA) my least acceptable result when I negotiate with a new dealer will be less than $26,000. If the dealer wont go lower, I can walk away knowing I already have a better offer. If the dealer is aware of BATNA, he will reduce the initial offer because he knows that an initial offer greater than my BATNA will not be effective.  

• Seitz and Modica (1980) suggested 4 indicators that tell when the negotiations are coming to an end so that each side can prepare its final offer:

1. Number of counterarguments reduce.2. Positions of the two sides appear closer together.3. Other side talks about final agreement.4. Other side appears willing to begin putting things in writing.

Determining Conflict Styles

• A persons method of dealing with conflict at work can be measured by the Rahim Organizational Conflict Inventory 2- ROCI 2 or the Cohen Conflict Response Inventory- CCRI.

Prior to conflict occurring-• Organizations should have set policies to

handle conflicts.• Employees should first try to resolve their

own conflicts and if not successful can utilize third-party intervention.

• Employees should receive training- causes, ways to prevent, handling, and resolving the conflicts.

When conflict first occurs-• The 2 parties should be encouraged to use the

conflict resolution skills they learned in training to resolve the conflict on their own.

• A key to resolving conflict is to reduce tension and increase trust between the 2 parties.

• The 2 parties meet in private to address the problem. The 2 parties sit down and the employee who arranged the meeting explains his perception of the problem. The second party then responds. If he agrees, he might apologize and stop the behavior. If he disagrees, he would explain his perception of the problem.

• The 2 parties then exchange views till they come to a mutual agreement. If the 2 don’t agree, its called a dispute and the parties need a 3rd person for intervention this is called cooperative problem solving.

Third-party Intervention-• If conflict cannot be resolved by the 2 parties involved, it is often a good idea to seek help, third party intervention. This is usually provided through mediation or arbitration.

• Four Basic Third-Party Roles– Mediator

• A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives

– Arbitrator• A third party to a negotiation who has the authority to dictate an agreement.

– Conciliator• A trusted third party who provides an informal communication link between the negotiator and the opponent

– Consultant• An impartial third party, skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis

Negotiation• A process in which two

or more parties exchange goods or services and attempt to agree on the exchange rate on them.

• The terms bargaining and negotiation is used interchangeably.

• Two General Approaches:– Distributive Bargaining• Negotiation that seeks to divide up a fixed

amount of resources; a win-lose situation

– Integrative Bargaining• Negotiation that seeks one or more

settlements that can create a win-win solution

Distributive versus Integrative Bargaining

NEGOTIATION PROCESS

Individual Differences in Negotiation Effectiveness

• Personality Traits– Extroverts and agreeable people are weaker at

distributive negotiation; disagreeable introverts are best

– Intelligence is a weak indicator of effectiveness• Mood and Emotion– Ability to show anger helps in distributive

bargaining– Positive moods and emotions help integrative

bargaining• Gender– Men and women negotiate the same way, but may

experience different outcomes

References

• Industrial/Organizational Psychology- Michael G. Aamodt.

• Organizational Behavior- Stepjen P. , Timothya A. , & Seema Sanghi.

• http://ezinearticles.com/?The-Nature-and-Scope-of-Organizational-Psychology&id=5295782

• http://work.chron.com/scope-industrial-psychology-10303.html

• http://www.onetonline.org/link/summary/19-3032.00