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Theme 1:
Systems approach to personnel psychology in the changing work environment:
Discuss personnel psychology from a systems thinking perspective and explain how
personnel psychology fits into the organisation as an open system:
A system is a collection of interrelated parts, unified by design and created to attain one or more
objectives. There is a need to be aware of all the variables involved in executing managerial functions
so that decisions will be made in light of the overall effect on the organisation and its objectives.
These decisions must consider not only the organisation itself but also the larger system within which
the organisation operates, e.g. industry and environment.
Classical management theories viewed organisations as closed systems. Problems were contained
and could be divided into their component parts and solved. The closed system approach focussed
on the internal operation of the organisation and ignored the outside environment.
Criticism to this approach:
• By focussing solely on the conditions inside the firm, management is slow to respond to the
demands of the marketplace.
• Does not describe organisational reality.
A systemic perspective requires managers to integrate inputs from multiple perspectives and
environments to coordinate the various components.
The modern view is that of open systems in continuous interaction with multiple, dynamic
environments, providing for a continuous import of inputs (people, capital, raw material and
information) and a transformation of these into outputs, which are then exported back into the various
environments to be consumed by the client/customer.
Subsequently the environments (economic, legal, social and political) provide feedback on the entire
process.
System thinking is a discipline of seeing wholes. Sees interrelationships rather than things, patterns of
change rather than snapshots of current functioning.
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Emphasis should be placed on the hierarchy of systems. A system is comprised of lower order
subsystems. There is a concentric way of organising each subsystem into the larger system or
supersystem. This is needed to coordinate activities or processes. This provides the macro-view from
which to visualise events or actions in one system and their effects on other related systems or the
organisation as a whole.
Implications of systems thinking:
• Ability to scan and sense changes in the outside environment.
• Ability to bridge and manage critical boundaries and areas of interdependence.
• Ability to develop appropriate strategic responses.
Organisations must be sensitive to what is happening in the world outside the organisation.
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DISCUSS AN OPEN-SYSTEM, DECISION THEORETIC VIEW OF THE
EMPLOYMENT PROCESS IN PERSONNEL PSYCHOLOGY
Use Figure 1 on page 30 of Tutorial 101/0/2016 to learn all the different steps in an
employment process which all form part of the open-system, decision theoretic view
of the employment process. Diagram can also be found in prescribed book (Cascio
and Aguinis) Figure 2 on page 44.
- Employment process consists of various phases conducted in a particular
sequence
- Each decision attempt to discover what to do with one or more individual (to
hire or reject, whom to train and whom not to train)
- The decisions typically form a chain
- The strategies are sequential and information gathered at one point in
procedure determine what (if any) information will be gathered next.
- Important to know that different recruitment, selection and training strategies
are used for different jobs
- Various phases in the process are highly interdependent.
JOB ANALYSIS AND EVALUATION
- Building block in employment process
- Has 3 outcomes: job description, job specification and performance standard
- The process of matching individual and the job begins
- Detailed specification by org. of work to be performed, skills needed, training
required to perform job satisfactory
- Job analysis support organizational activities - job evaluation – most important
- Job evaluation requires methods and replicable procedures to apply to all jobs
- Methods used should be acceptable, understandable to employees, board of
directors and other concerned groups.
- Job analysis and evaluation performed independently of ind currently
performing the jobs
- Jobs and wages stay the same even though people come and go
WORKFORCE PLANNING
- Ensure that there is enough qualified ind to meet specific staffing needs in
future
- Org. give inventory of available knowledge, abilities, skills and experiences of
present employees
- Forecasts of internal and external human resource supply and demand must
be undertaken
- Action plans and programs can be formulated in order to meet predicted
staffing needs – training, transfers, promotions or recruitment
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