Case Study Jose's Authentic Restaurant

Industrial / Organizational Psychology in Management

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Institution

Industrial / Organizational Psychology in Management

Fundamentally, industrial/organizational (I/O) psychology is a field that uses psychology principles to study behavior in both organizations and work settings. The fields apply facts, methods, and psychology principles in to determine aspects related to human behavior. It is mainly used in the hiring and training of new employees by major organizations such as Telco, MacDonald’s, 3M, and Target Corp.  The practices have helped many organizations to select the suitable candidates and work efficiently. For those companies, which have adopted the practice, they have hired trained Industrial/ Organizational psychologists that are purposely used during the recruitment process.

Practically, when an organization receives several applications for a particular position, the names are given to the I/O psychologist who designs practical tests for the potential employees. For example, Psychologists can prepare a typing test to ascertain a candidate’s  typing speed per minute without error. Such tests can seek out candidates in a fast and efficient way, thus, saving resources. For instance, time is not wasted on voluminous unqualified applicants. Besides the recruitment process, the Industrial/ Organizational psychology is adopted in the training process, with an aim of perfecting programs in an institution. Some of the renowned organization using the I/O psychology process in its recruitment and training system are 3M Co., Target Corp, and Best Buy Co. Inc. However,   the practice is facing both legal and ethical concerns that it fails to meet.

According to 3M Co., its selection process is subdivided into four crucial stages before an individual is absorbed into its workforce. The first phase is the CV submission process, where candidates are expected to sell their credentials in a concise manner by elaborating on their capabilities and qualifications. Secondly, the candidate is taken through psychometric tests that are aimed at testing the verbal and numeracy reasoning of a candidate.  The 3M recruitment team usually does the process online with another physical follow up. If one is successful in the psychometric tests, a competency interview based on a  phone interview is conducted (3M).  The competency test assesses a candidate's planning and organization, innovation, communication, motivation, and results oriented skills. If one is successful again, they are invited to physical assessment in the 3M assessment center.

         Best buy is another organization that has incorporated O/I psychology in its human resource management system. Its hiring process is similar to those of 3M. However instead of a psychometric test Best Buy uses Candidate Suitability test. Apart from the tailor made recruitment approach used by 3M and Best Buy, both companies have  set employees training programs. Employees are trained in leadership and development programs in selected universities. The programs are customized for the company’s interest and are offered in phases.  Employee training starts during recruitment and is continuous depending on the position held by an individual. For instance, human resource managers receive unique training compared to other members of staff. The training must be able to fulfill organizational goals and capacity building.

Measuring Training programs

There are numerous ways of measuring the success of training programs in an institution, which include calculating return on investment, measuring benefits, and forecasting and measuring costs. To begin with, forecasting and estimating costs are calculated using eight indicators in the company that includes promotional, development, administration, Student, material, facilities, and evaluation costs (Bayleym, 2012). On the development and design context, designers, in-house, external developers, copyright expenses and traveling cost.  Other costs are administrations and material used for training costs.

Secondly, the forecasting and measuring benefits method takes into consideration four main areas that include savings, labor, miscellaneous cost and income savings, and improved  productivity.  The method measures the amount of savings that a company has saved through adding skills to employees who can now work more efficiently. Besides optimal performance, training employees make them more efficient.  

Finally, the returning investment technique is used to measure the payback period that an individual program will offer to a company. The outcome of the return on investment is in percentage form that compares time span and its associated benefits. The conventional formulae are    (Bayley, 2012). Payback period is the duration that it takes before the program pays its full cost. The period is calculated using costs and the monthly benefits. Fortunately, ROI calculators have been invented to help in the evaluating the process. [pic 1]

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