describing the individual differences that influence organizational performance and effectiveness, using utility theory as a framework for the discussion.
First, provide a brief background of an organization with which you currently work or have previously worked. Then, you will describe utility theory and provide an example of its use at your organization and an example at one other organization of your choice. You can change the name of the organization for which you work, if necessary. You will also provide benefits and limitations to using utility theory in human resources processes at the organization for which you work.
Then, review the following case and answer the questions:
ABC Manufacturing, Inc.
You are a new I-O consultant at ABC Manufacturing, Inc. While reviewing a six-month rolling turnover report, you notice that the previous six months’ rolling turnover rate increased from 10% to 25%. You also observe that decision-making is focused within the organization, and internal processes and decisions are contained within leadership. After surveying the staff, the data indicates changes in psychological contract is a reason for the increased turnover.
Based on this information, answer the following:
Does ABC Manufacturing, Inc. function as an open or closed system? Describe what you found in the case study that indicates the system approach.
Describe how systems approach and utility theory interact.
Compare and contrast two utility approaches that influence organizational performance and effectiveness.
Explain how utility theory can provide a framework for correcting the turnover issues at ABC Manufacturing, Inc.
Recommend changes to the organization’s approach. Use utility theory as a framework for your recommendation(s).
Discuss how the recommended changes will influence organizational effectiveness and performance.
Identify how your recommended approach addresses changes in psychological contracts.
