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Applied Psychology in Business exam notes

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Power: Target, Agent, Context. Kelman (1958): 3 types of influence process:
Instrumental compliance: Target carries out request to obtain a tangible
reward/avoids a tangible punishment that is controlled by the agent (aka
presenteeism). Motivation for compliance is purely for the benefit of the target.
Minimal effort expended to get the reward. Internalisation: Target becomes
committed to the action because it appears to align with the targets values,
morals/beliefs. Commitment occurs regardless of any punishment/reward. Personal
Identification: Target imitates agents behaviours/adopts a similar values to please
them/become more like them. Often linked to self esteem/acceptance. Hard forms of
power (e.g., coercive, reward, and legitimate) are related to greater burnout,
absenteeism, and lower productivity and self-confidence (Elias, 2008). soft forms of
power (e.g., referent power, expert power) are connected to higher levels of
organizational commitment, job satisfaction, empowerment, intent to remain within
the organization, productivity, and self-confidence.
Culture eats strategy for breakfast – Mullins, 2002.
Recruitment & Retention: Psychometric testing ,maximining effectiveness of
testing: Psychological testing for selection purposes: Carless, 2009 – combination of
test scores & interview, timing of giving scores to manager. Result: combination of a
structured interview with a cognitive ability test/a structured interview with a cognitive
ability & conscientiousness test accrues in better prediction of work performance
compared to just using an interview for selection purposes. Criteria Testing corp:
52% better hiring rate, 48% lower turnover, 25% more from sales turnover. Core
principle of psch test: Objectivity & freedom from bias. Designed to eliminate
subjectivity & correct for bias & ideally sensitive to cultural differences (However
likelihood is they have been developed by white affluent males who have best
access to Higher education & PHD - so chance that they aren’t sensitive to
gender/cultural/class biases. Organisational psychologist: recommendations –
psychologists likely to use test score data better than managers (Vom Hofe and
Levy-Leboyer 1993). Guion (1998) – don’t give the decision to an outsider.
Changes since 1970’s: wellbeing focus, growth in company. Knowledge economy
Stress: Relative vs absolute. Stress diathesis model – Broerman, 2018
psychological disorders impacted by genetic predisposition & experience of
stressors. PESTLE implications. Biopsychosocial Model (Melchert, 2011) –
psychological, social, biological.
Physiological stress system: Tsigos, 2000 hypothalamic-pituitary-adrenal (HPA) axis
& the autonomic nervous system (ANS), which interact with central nervous system
(CNS). Cortisol: partial shut down of immune system & assistance with memory to
help future stress survival.
Stress Bell curve: Yerkes-Dodson Law Performance vs arousal. Also true of conflict:
Positive: new ideas, motivates change, acts as a safety valve by bringing problems
into the open. Negative: threatens psychological wellbeing, wastes resources,
creates a negative climate, reduces organisations capacity to compete in the
marketplace. Acute vs chronic. Stress, satisfaction & productivity – Halkos &
Bousinakis, 2009: Quality work is more related to conscientiousness and personal
satisfaction than work load. increased stress leads to reduced productivity and
increased satisfaction leads to increased productivity. Stress Management
Interventions (Holman, 2018) – Primary: prevent, Secondary: reduce severity and
duration. Tertiary: rehabilitate.
Psychological Resilience: Windle, 2011. Positive effects of training: McCraty,n2012
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