- Describe the factors that contribute to job satisfaction
- Describe key theories about management
- Describe leadership styles
- Explain why organizational culture is important
Organizational Psychology
Organizational psychology is the second major branch of industrial and organizational psychology.
While industrial psychology focuses on job analysis, selection, and training, organizational psychology addresses the social and psychological context of the workplace. It examines multiple levels of workplace phenomena: micro-level experiences like attitudes and emotions; meso-level dynamics like teamwork and interpersonal relationships; and macro-level factors like leadership and organizational culture. Overall, organizational psychology helps us understand the experience and consequences of working life in modern organizations.
Employee Attitudes
Some people love their jobs, some tolerate them, and some cannot stand them.
job satisfaction
Job satisfaction describes the degree to which individuals enjoy their job. Edwin Locke (1976) defined it as the emotional state resulting from appraising one’s job experiences. Job satisfaction involves both how we think about our work (cognition) and how we feel about it (affect), and is influenced by the work itself, our personality, and our cultural context (Saari & Judge, 2004).
Organizations typically measure job satisfaction after changes (such as shifts in management) to assess employee responses, or routinely to monitor factors affecting organizational performance. Polling organizations like Gallup also measure job satisfaction nationally to gauge the state of the workforce.
Job satisfaction is commonly measured using questionnaires. Sometimes a single question is asked, with employees responding on a Likert scale (e.g., “Very satisfied” to “Very dissatisfied”). More often, surveys ask multiple questions to identify specific sources of satisfaction or dissatisfaction (Table 1).
| Factor | Description |
|---|---|
| Autonomy | Individual responsibility, control over decisions |
| Work content | Variety, challenge, role clarity |
| Communication | Feedback |
| Financial rewards | Salary and benefits |
| Growth and development | Personal growth, training, education |
| Promotion | Career advancement opportunity |
| Coworkers | Professional relations or adequacy |
| Supervision and feedback | Support, recognition, fairness |
| Workload | Time pressure, tedium |
| Work demands | Extra work requirements, insecurity of position |
Research suggests that work content—including variety, difficulty level, and role clarity—is the strongest predictor of overall job satisfaction (Saari & Judge, 2004).
In contrast, pay level shows only a weak correlation with job satisfaction; individuals tend to adapt to higher pay, so salary increases provide diminishing returns over time (Judge, Piccolo, Podsakoff, Shaw, & Rich, 2010).
Why Job Satisfaction Matters
Job satisfaction matters because it relates to important organizational outcomes. Satisfied employees demonstrate more organizational citizenship behaviors—discretionary actions that further organizational goals beyond their formal job requirements (Judge & Kammeyer-Mueller, 2012). Job satisfaction is also related to general life satisfaction, with research suggesting the relationship is reciprocal (Judge & Watanabe, 1993). Low job satisfaction is associated with withdrawal behaviors such as absenteeism and intention to leave. Finally, job satisfaction appears to relate to organizational performance, suggesting that improving employee satisfaction may improve organizational outcomes.
Measuring Job Satisfaction
Recent data paint a complex picture of employee attitudes. According to a Conference Board survey, 62.7% of U.S. employees reported being satisfied with their jobs in 2023—the highest level since the survey began, though growth has plateaued. However, satisfaction with specific components like bonuses, health plans, promotions, and wages showed declines, likely reflecting concerns about inflation and cost of living.
Employee engagement—a related but distinct construct measuring emotional investment in work—has declined since the pandemic. Gallup’s 2024 data show that only 31% of U.S. employees are engaged at work, down from a peak of 36% in 2020. This represents approximately 8 million fewer engaged employees. Key drivers of this decline include decreased clarity of expectations (only 46% of employees clearly know what is expected of them), reduced feelings that someone at work cares about them as a person, and fewer employees feeling that someone encourages their development.
Job Satisfaction in Federal Government Agencies
The Partnership for Public Service, a nonprofit, nonpartisan organization, has conducted research on federal employee job satisfaction since 2003. Its primary goal is to improve the federal government’s management. However, the results also provide information to those interested in obtaining employment with the federal government.
Among large agencies in 2022, the highest job satisfaction ranking went to NASA, followed by the Department of Health and Human Services and the intelligence community. The lowest scores went to the Social Security Administration.
The data used to derive the job satisfaction score come from three questions on the Federal Employee Viewpoint Survey. The questions are:
- I recommend my organization as a good place to work.
- Considering everything, how satisfied are you with your job?
- Considering everything, how satisfied are you with your organization?
The questions have a range of six possible answers, spanning a range of strong agreement or satisfaction to strong disagreement or dissatisfaction. How would you answer these questions with regard to your own job? Would these questions adequately assess your job satisfaction?
You can explore the Best Places To Work In The Federal Government study at their website. The Office of Personnel Management also produces a report based on their survey.
Job Stress
job stress
Job stress (or job strain) results when employees perceive that demands placed on them exceed their ability to cope (Gyllensten & Palmer, 2005). Common stressors include role conflicts, role ambiguity, lack of career progress, lack of job security, lack of control over work outcomes, isolation, work overload, and workplace discrimination, harassment, or bullying (Colligan & Higgins, 2005). Job stress leads to poor employee health, reduced job performance, and family strain.
Recent surveys indicate that workplace stress remains prevalent. According to Mercer’s 2024 Global Talent Trend Report, 82% of workers report feeling stressed by work. Long hours, key person dependencies, and high sick leave rates serve as warning signs of workforce strain. Workers report that designing work with their well-being in mind, implementing employee wellness programs, and offering better benefits would make a meaningful difference.
job insecurity
Job insecurity contributes significantly to job stress. Two increasing threats to job security are downsizing events and corporate mergers. Businesses typically involve I-O psychologists in planning for, implementing, and managing these types of organizational change.
Common changes in the workplace that lead to job insecurity
Downsizing involves laying off a significant percentage of employees, typically in response to financial pressures. I-O psychologists may be involved in how the news is delivered, how laid-off employees are supported through separation packages, and how retained employees are supported—the latter being crucial because downsizing affects survivors’ commitment, job security perceptions, and intention to quit (Ugboro, 2006).
Mergers (joining of two organizations of equal status) and acquisitions (one organization purchases another) also create job insecurity through service duplication and staff reductions. Employees must adjust to changed organizational cultures and may lose connection to their former organization while trying to integrate into the new one (Amiot, Terry, Jimmieson, & Callan, 2006).
Work-Life-Balance
Many people juggle the demands of work with responsibilities at home—caring for children, supporting elderly parents, or managing other personal obligations. This challenge is known as work-family balance. Work can interfere with family, and family responsibilities can conflict with work obligations (Carlson, Kacmar, & Williams, 2000).
work-family conflicts
Greenhaus and Beutell (1985) first identified three sources of work-family conflicts:
- time devoted to work makes it difficult to fulfill the requirements of the family, or vice versa,
- strain from participation in work makes it difficult to fulfill the requirements of the family, or vice versa, and
- specific behaviors required by work make it difficult to fulfill the requirements of the family, or vice versa.
Strategies for Managing Work-Life Conflict
Various strategies can help reduce work-family conflict. Support at home—whether emotional (empathetic listening) or practical (help with household tasks)—makes a difference. Workplace supports include empathetic supervisors, flexible scheduling, paid leave, and remote work options. Research shows that practical support from home and supervisor support at work are particularly effective.
Flexible work schedules typically require employees to be present during core business hours while allowing them to adjust start and end times to accommodate family needs. However, flexible hours alone may not be sufficient, and remote work can sometimes intensify conflict by blurring boundaries between work and home.
Some organizations offer additional supports such as onsite childcare, fitness centers, or health clinics. Companies like Netflix, Adobe, Bank of America, and Amazon have expanded parental leave policies, often including adoptive and non-birthing parents.
Remote and Hybrid Work
Remote work expanded dramatically following the COVID-19 pandemic. As of 2024, approximately 27% of U.S. employees work in hybrid arrangements and 11% work fully remotely. Research on these arrangements has produced several important findings:
Productivity and performance. A landmark 2024 study published in Nature (Bloom et al.) examined over 1,600 employees at a large technology company and found that hybrid workers (two days remote per week) showed no difference in performance or promotion rates compared to fully in-office peers. Notably, managers who initially expected productivity declines revised their views after experiencing hybrid work firsthand.
Retention. The same study found that resignations dropped by 33% among employees who shifted to hybrid schedules, with women, non-managers, and employees with long commutes showing the greatest retention benefits.
Engagement and well-being. Gallup research reveals a nuanced picture: fully remote workers report the highest engagement (31%) compared to hybrid (23%) and on-site workers (19%), but also report lower overall well-being and higher rates of stress and loneliness. This suggests that while autonomy boosts engagement, it may increase emotional strain without adequate social support.
Employee preferences. Surveys consistently show strong preferences for flexibility—research indicates that 40% of workers would consider switching jobs if denied remote or hybrid options. At the same time, some findings suggest employees would benefit from more in-office time than they currently spend, particularly for collaboration and connection.ompared to hybrid (23%) and on-site workers (19%), but also report lower well-being and higher rates of stress and loneliness. This suggests that while autonomy boosts engagement, it may also increase emotional strain without adequate social support.