CHAPTER 1: INTRODUCTION TO THE WORLD OF WORK

DIFFERENCES BETWEEN I/O AND BUSINESS WHAT IS I/O PSYCHOLOGY

PROGRAM
Psychology
I/O PSYCHOLOGY
- is the science of human behavior
- applies the principles of psychology to the - I/O psychology is the science of human behavior
workplace at work
- to enhance the dignity and performance of human - Dual Focus
beings, and the organizations they work in, by o Efficiency/productivity of organizations
advancing the science and knowledge of human o Health/well-being of employee
behavior' (Rucci, 2008) - Dual Nature
- application of psychological principles is what o Application of the science of psychology
best distinguishes I/O psychology from related to the workplace
fields typically taught in business colleges o Development/discovery of scientific
- differences in techniques psychological principles at work
o example: the use of unstructured
SCIENTIST/PRACTITIONER MODEL
interview SCIENTIST PRACTITIONER
- I/O psychology examines factors that affect the LOYALTIES Publishers Managers
Academic CEOs
people in an organization as opposed to the
Departments
broader aspects of running an organization such GOALS Rigorous science Solutions to
as marketing channels, transportation networks, immediate
and cost accounting problems

- I/O psychology relies extensively on research, “Publish or Perish” Increase profits

quantitative methods, and testing techniques. JARGON/LANGUAGE Scientific Bottom line
- reliance on the scientist-practitioner model “I” VERSUS “O”

I/O PSYCHOLOGY:SCIENCE AND PRACTICE

- As a SCIENCE, I/O psychology uses scientific

methodology to research and advance knowledge
about people at work
- And as a PRACTICE, I/O psychology is a
profession concerned with the application of
psychological knowledge to solve real-life
problems in the world of work WHAT IS I/O PSYCHOLOGY

SCIENCE AND PRACTICE - The application of psychological principles to the

workplace (anywhere people work)
Scientist-Practitioner Model
- Help people do their jobs
- Interaction of scientific knowledge and o Help employers treat employees fairly
application ▪ Select people for jobs
▪ Provide training
▪ Reward promotions/raises
▪ Address harassment
o Help make jobs more interesting and
satisfying
▪ Design jobs people will find
satisfying
• Rewarding work
• Safe, efficient work areas
(human factors)

CHRISTIAN PRIME D. CALO INDUSTRIAL ORGANIZATION LECTURES 1|Page

 ▪ Motivate employee to perform - "Economic Psychology, Business Psychology, and
▪ Create teams that work well Employment Psychology'
together
Walter Bingham
• Combine diverse talents and
perspectives - Founded 1st university department of Applied
o Help workers be more productive Psychology (Carnegie Institute of Technology.
▪ Design work patterns that design 1915)
proficiency - Helped to develop the Army Alpha and Beta tests
▪ Provide skills training and in 1917
development - Helped to popularize intelligence and aptitude
▪ Help to meet the challenges of testing in industry
competition
Other pioneers
▪ Move past downsizing
- 1920 Thomas Edison
Philippine example: Call center industry
o Created a 150-item knowledge test that
- Use of aptitude and personality tests in BPO he administered to over 900 applicants
hiring o The test and passing score were so
- Training programs for communication and stress difficult that only 5% of the applicants
management passed
- Shift work research on fatigue and well- being - James Cattell
- Employee engagement surveys to reduce attrition o Psychological corporation in 1912
- John Watson
A BRIEF HISTORY OF I/O PSYCHOLOGY
o Served as a major in US army in WW1 and
Late 1800s developed perceptual and motor tests for
potential pilots
- Roots in experimental psychology
- Marion Bills
Hugo Münsterberg o Research on employee retention was
published in the journal of Applied
- psychology and industrial efficiency
Psychology
World War I ▪ Very active professional societies
▪ 7th president of SSOP, the first
- Army Alpha and Beta tests
women to hold this position
World War II - Lilian Gilbreth
o Psychologist and industrial engineer
- training and human factors
o One of the first working female engineers
Post-war holding a - Ph.D.
o Motion study and human factors (improve
- motivation, leadership, and OB
productivity and reduce fatigue)
Began early 1900s o With husband Frank, reduced bricklaying
- 1903 Walter Dill Scot motions from 18 to 4 1/2.
o The theory of Advertising o "Cheaper by the Dozen and Belles on their
- 1911 Walter Dill Scot Toes"
o Increasing Hurban Efficiency in Business o First woman professor of management &
- 1913 Hugo Munsterberg engineering at Purdue University
o Psychology and Industrial Efficiency Outside the US
- 1917 Journal of Applied Psychology
- Jules Suter (Switzerland)
- 1918 World War I provides I/O psychologists
- Bernard Muscio (Australia)
with the first opportunity for large-scale
- Franziska Baumgarten-Tramer, Walter Moede,
employee testing and selection.
William Stern, Otto Lipmann, and Emil Kraepelin
(Germany)
CHRISTIAN PRIME D. CALO INDUSTRIAL ORGANIZATION LECTURES 2|Page
 - Jean-Marie Lahy (France) • Growth of HR and organizational research
- Edward Webster (Canada) • Use in government agencies and civil service
- Cyril Burt, Charles Myers, and Sir Frederick exams
Bartlett (Great Brittan) • Expansion in corporate HR, BPO’s, and
manufacturing
1930’s Hawthorne studies
• Relevance to labor laws and organizational justice
- Hawthorne plant, Western Electric Company,
FIELDS OF I/O PSYCHOLOGY
Chicago
- Effects of lighting levels, work schedules, wages, FIELD PRIMARY FOCUS
temperature, and rest breaks on employee Personnel Selection, testing,
performance performance appraisal
- Result: working conditions did not affect Organizational Motivation, leadership,
productivity culture
Human factors Workplace design, safety,
Hawthorne effect ergonomics
- When employee changed their behavior and Training and development Skill acquisition,
evaluation
became more productive because they were being
Philippine Employment Examples
studied and received attention from their
managers - HR analysis in multinational firms
- Human relations in the workplace and effects of - Consultants for organizational development
employee attitudes - Trainers in government agencies 9e.g., CSC,
DepEd)
1960’s civil rights legislation
- Researchers in universities and think tasks
- Developing fair selection techniques
IMPORTANCE OF I/O PSYCHOLOGY
▪ Use of sensitivity training and T-
groups for managers

1970’s employee satisfaction and motivation

- B.F. Skinner’s Beyond Freedom and Dignity

o Increased use of behavior-modification
techniques in organization

1980’s and 1990’s

- Sophisticated statistical techniques and methods

of analysis
- application of cognitive psychology to industry
- increased interest in the effects of work on RESEARCH IN I/O PSYCHOLOGY
family life and leisure activities
- Answering questions and making decisions
- renewed interest in developing methods to select
- Research and everyday life
employees.
- Common sense is often wrong
2000’s
RESEARCH METHODS IN I/O OSYCHOLOGY
- rapid advance in technology
- Experimental and quasi-experimental designs
- recruitment and screening online
- Survey research and questionnaires
- E-learning and distance orientation
- Interviews and focus group
- Cyberspace meetings
- Observational studies
- Meta-analysis

• Changing demographic make-up of the workplace

• Global economy
• Flexible work schedules
CHRISTIAN PRIME D. CALO INDUSTRIAL ORGANIZATION LECTURES 3|Page
CASE VIGNETTE: EMPLOYEE TURNOVER 3. Justice: It likely disproportionately affects non-
dominant groups whose public discourse may be unfairly
A manufacturing company in Mindanao experiences high
flagged as "disloyal."
employee turnover.
4. Fidelity & Responsibility: I/0 psychologists have a
An IO psychologist:
responsibility to protect employee welfare and challenge
- Conducts surveys and exit interviews unsound practices, even if technologically feasible.
- Analyzes job satisfaction and leadership style
Key methodological insights:
- Recommends changes in supervision and rewards
- Evaluates outcomes after implementation Correlational vs. Experimental: Loyalty is best studied
through correlational field methods (surveys,
THE I/O DILEMMA
interviews) to identify linked factors. A social media
- A tech company, "StableTech," proposes a new score is a flawed, distal correlate with Jow validity.
initiative: using Al to analyze employees' public
Direct vs. Indirect Measurement: Always prefer
social media activity (posts, likes, network
direct measurement (asking about intent) over
sentiment) to create a "Loyalty Risk Score." The
unreliable indirect proxies (social media sentiment).
goal is to identify employees likely to leave or who
are disengaged, allowing managers to intervene. Field Study Best Practices: The most appropriate
The data is "publicly available," so the company research would be a confidential longitudinal field study
argues no formal consent is needed within the organization, tracking voluntary self-reports
and actual turnover over time to identify true
StableTech Dilemma:
predictors, while guaranteeing anonymity and data
Ethical issues: aggregation to protect individuals.

- Privacy and context

- Lack of informed consent Ethical I/O practice requires transparent, consensual,
- Bias and accuracy and direct methods that respect employee privacy and
- Power imbalance dignity while seeking to improve organizational health.

Appropriate research methods to study Type A Dilemma (genuine ethical dilemma)

loyalty/engagement
- high level of uncertainty as to what is right or
- Anonymous surveys wrong, there appears to be no best solution, and
- Structured interviews/focus group there are both positive and negative
- Observational/archival field studies consequences to a decision
- Exit interviews o example: Situation: An I/O psychologist is
designing a performance management
ETHICS IN I/O PSYCHOLOGY
system for a sales team. They must decide
- Informed consent in research and assessment whether to implement a forced ranking
- Confidentiality of employee data system (also known as "rank and yank"),
- Fairness and non-discrimination where managers must categorize a fixed
- Responsible test use percentage of employees as top, average,
- Professional competence and integrity and low performers, with the bottom
group potentially facing termination or no
Key ethics (APA Guidelines)
bonuses.
1. Respect for Persons: This plan violates autonomy
Why type A?
through deception and lack of consent.
- High Uncertainty & No Clear Best Solution:
2. Beneficence: It risks significant harm (increased
There is no objective "right" answer. Strong
stress, discrimination, reputational damage) with
arguments exist on both sides.
unclear benefits.
- Positive Consequences (Pros):

CHRISTIAN PRIME D. CALO INDUSTRIAL ORGANIZATION LECTURES 4|Page

 o Differentiates Performance: Clearly o “he company can't afford to lose him." He
identifies high and low performers, which doesn't mean any harm; it's just his old-
can be difficult in lenient rating cultures. school sense of humor. Everyone likes him
o Rewards Top Talent: Ensures the highest o "The women on his team haven't officially
rewards go to the top contributors, which complained, so maybe it's not a big deal."
may help retain star employees. o "If l escalate this, I'll be seen as
o Promotes a Performance Culture: Can disruptive and damage my relationship
signal a commitment to excellence and with the leadership team."
accountability. o "Addressing this will cause more drama
- Negative Consequences (Cons): and hurt team morale in the short term."
o Damages Collaboration: Creates a hyper-
competitive, zero-sum environment where
employees may sabotage peers.
o Potential for Bias: Can exacerbate
existing biases if not managed flawlessly;
low ratings may reflect manager dislike
more than actual performance.
o Destroys Morale: Can be devastating for
team cohesion and the psychological
safety of employees who are constantly at
risk.
o May Lose Good Employees: Forces out
potentially good employees who are in a
high-performing team.

Type B dilemma (rationalizing dilemma)

- the difference between right and wrong is much

clearer than in a Type A dilemma.
o individuals know what is right but choose
the solution that is most advantageous to
themselves.
- Example Situation: An I/O psychologist is
conducting a workplace culture assessment and
discovers through confidential interviews that a
well-liked, high-performing senior manager
frequently makes sexist "jokes" and uses mildly
demeaning nicknames for female staff. The
behavior is against clear company policy and the
psychologist knows it's wrong, but they face
pressure to rationalize ignoring it.
- Clearer Right vs. Wrong: The company has a
strict harassment and respect policy. The
behavior is unprofessional, creates a hostile
environment, and is clearly against the rules.
Ethically, the psychologist knows it should be
reported and addressed.
- The rationalization (The “Yes, but…”)
o "He's a top performer and brings in
critical revenue.

CHRISTIAN PRIME D. CALO INDUSTRIAL ORGANIZATION LECTURES 5|Page