MODULE 1- INTRODUCTION TO I/O PSYCHOLOGY- DEFINITION, AND BRIEF
HISTORY
DEFINITIONS
Psychology is the study of behavior and mental processes
Industrial psychology may be defined as “simply the application or extension of psychological
facts and principles to the problems concerning human beings operating within the context of
business and industry” (Blum & Naylor, 1968, p. 4).
Industrial psychology grew out of psychology’s initial success in describing and measuring
differences among people.
Traditionally, industrial psychologists were concerned with the following:
• Selection and testing
• Personnel development: training, performance appraisal, attitude measurement, employee
counseling, career planning;
• Human engineering: Equipment and product design;
• Productivity study: worker fatigue, monotony, absenteeism, physical aspects of work
environment, e.g. lighting and temperature;
• Human relations: relations between supervisor and subordinates, and of labor union to
management
Organizational psychology may be defined as “the study of the structure of an organization
and of the ways in which the people in it interact, usually undertaken in order to improve the
organization” (Collins Dictionary). The focus of organizational psychologists has changed from
the individual per se to the individual as a member of a group or to larger units like groups and
organizations. Organizational psychology examines the effect of work environments and
management styles on workers motivation, job satisfaction, and productivity. Psychologists
involved in organizational psychology are concerned with the issues of leadership, job satisfaction,
employee motivation, organizational communication, conflict management, organizational
change, and group processes within an organization.
Table 1: Differences between Industrial and Organizational Psychology
Industrial Psychology Organizational Psychology
Scope Focused more on matching Interested in modifying jobs,
individuals with existing jobs interpersonal and
Fitting the man to the job. organizational conditions.
Fitting the job to the man.
Orientation Individual oriented System oriented
Research tradition Largely experimental, Uses less rigorous, humanistic
empirical and objective. and clinical methods in order to
obtain data.
Industrial/Organizational (I/O) Psychology is the branch of psychology that is
concerned with the study of behavior in work settings and the application of psychology principles
to change work behavior. Thus, Industrial/Organizational Psychology encompasses both industrial
and organizational psychology. It is important to note that “industrial/organizational psychology”
is the U.S. term; in Europe and in other parts of the world, this same area of specialization is
referred to as “work and organizational psychology”.
I/O psychology has two objectives: first, to conduct research in an effort to increase our
knowledge and understanding of human work behavior; and second, to apply that knowledge to
improve the work behavior, the work environment, and the psychological conditions of workers.
Thus, I/O psychologists are trained to be both scientists and practitioners, in what is referred to as
the scientist–practitioner model. Thus I/O psychologists are involved in both the application of the
science of psychology to the workplace and development/discovery of scientific psychological
principles at work. To illustrate how the scientist-practitioner model works, let’s say the branch
manager of a bank is frustrated by high turnover among tellers. Fortunately, this individual may
draw on the findings of many scientific investigations of turnover to guide his or her efforts to
reduce it. Conversely, scientific investigations of organizational phenomena are often motivated
by the practical concerns of organizations. For example, the past decade has indicated a
considerable rise in research on how organizations can assist employees in balancing the demands
of both work and family domains. Although certainly useful from a purely scientific standpoint,
another important factor motivating this research is that organizations want to avoid losing
valuable employees because of difficulties in balancing work and family demand.
Within the general field of I/O psychology, the scientist-practitioner model has become so
important that it serves as the underlying philosophy for many if not most graduate training
programs in the field. Graduate training guided by the scientist practitioner model suggests that,
first and foremost, students need the skills necessary to conduct scientific research. This explains
why virtually all graduate programs in I/O psychology require training in statistics, research
methodology, and psychological measurement. The other important implication of the scientist-
practitioner model in graduate training is that students are typically provided with some
opportunity, through internships or other field experience, to apply what they have learned in real
world settings
The major goal of I/O Psychology is to enhance the dignity and performance of human
beings, and the organizations they work in, by advancing the science and knowledge of human
behavior. Though the goal of I/O psychology is to increase the productivity and well- being of
employees, there are two approaches to how this can be accomplished. The industrial approach
(the “I” in I/O psychology) focuses on determining the competencies needed to perform a job,
staffing the organization with employees who have those competencies, and increasing those
competencies through training. The organizational approach (the “O” in I/O psychology) creates
an organizational structure and culture that will motivate employees to perform well, give them
with the necessary information to do their jobs, and provide working conditions that are safe and
result in an enjoyable and satisfying work environment.
MAJOR FIELDS OF I/O PSYCHOLOGY
Personnel Psychology: The thrust of personnel psychology is to study a job and the traits of
individuals who hold the job, and then use this information to predict what kinds of individuals
would do well in the future. It is the oldest and most traditional activities of I/O psychologists.
Thus, I/O psychologists and HRM professionals involved in personnel psychology study and
practice in such areas as analyzing jobs, recruiting applicants, selecting employees, determining
salary levels, training employees, and evaluating employee performance.
Organizational Behaviour: The study of organization behavior involves looking at the attitudes,
interpersonal relationships, performance, productivity, job satisfaction, and commitment of
employees, as well as leader’s behavior, organizational commitment, and even the relationship of
the organization with its environment, culture and processes. This field of study investigates the
impact that individuals, groups and structure have on behavior within organizations, and to apply
that knowledge towards improving the organization’s effectiveness (Robbins, 1991). In contrast to
personnel psychology that focuses more on individual-level issues; organizational behavior is
more concerned with social and group influences.
Vocational and Career counselling: A link between counseling and I/O psychology, career
counseling is a branch that assists individuals in making decisions about their lifelong roles in the
world of work and in solving problems that arise in the course of this choice process (Crites, 1969).
Ergonomics: Psychologists in the area of human factors concentrate on workplace design, human-
machine interaction, ergonomics, and physical fatigue and stress. These psychologists frequently
work with engineers and other technical professionals to make the workplace safer and more
efficient. Sample activities in this subfield have included designing the optimal way to draw a map,
designing the most comfortable chair, and investigating the optimal work schedule.
Organizational Development: Organization development is a long-range, systematic effort,
usually supported by management, to improve an organization’s problem-solving and renewal
processes in an organization, with the assistance of a change agent or catalyst and the use of the
theory and technology of applied behavioral science (French & Bell, 1984). Psychologists in this
area are focused on understanding and managing organizational change; the change may involve
people, work procedures, or technology.
Industrial Relations: The term industrial relations is made up of two components–industry and
relations, and hence addresses the relationship between management and employees, particularly
groups of workers represented by a union. Traditionally, industrial relations was used to cover
such aspects of industrial life as trade unionism, collective bargaining, workers’ participation in
management, discipline and grievance handling, industrial disputes and interpretation of labour
laws and rules and code of conduct.
WHAT DOES AN I/O PSYCHOLOGIST DO?
Examples
1. Dr. C received his PhD in I/O psychology in the 1970s. His first job was conducting research
for the General Telephone and Electronics Laboratories on the organizational processes in
some of the company’s operational units, including assessing job satisfaction, facilitating
communication, and helping to resolve conflicts. Some years later, Dr. C joined a large
consulting firm, and he currently is employed by an international consulting company where
he conducts survey feedback and other organizational development programs for a variety of
businesses and organizations.
2. Dr. H was originally an I/O psychologist in the U.S. Navy. His responsibilities there included
developing and researching placement systems for certain Navy personnel. He currently works
for the U.S. government as a grant officer helping to determine funding decisions for
psychological research projects.
3. Ms. O received a master’s degree in industrial/organizational psychology just a few years ago.
She is an assistant director of marketing research for a national chain of fast-food restaurants.
Her duties include researching the sites for new restaurants and designing and organizing
customer satisfaction surveys. Ms. O also teaches I/O psychology and marketing courses at a
local community college.
Professional associations
The major professional organization for psychologists of all kinds in the United States is the
American Psychological Association (APA), founded in 1892. Nearly a century later, the
Association for Psychological Science (APS) was formed to serve the needs of the more
experimental and theoretical areas of psychology. Clinical, counseling, and school psychologists
make up over 50 percent of the more than 96,000 APA members, while the remaining members
are active in a wide range of specialties ranging from I-O psychology to forensic psychology, sport
psychology, and adult development and aging. The APA has more than 50 divisions that represent
different types of psychologists; Division 14 of APA represents SIOP. Academics and practitioners
who work in I/O psychology or related fields are often members of the Society for Industrial and
Organizational Psychology (SIOP). SIOP is an independent organization but also a subdivision
of American Psychological Association (APA), which is the scientific organization that represents
psychologists in the United States. SIOP is also known as Division 14 of the American
Psychological Association (APA) was started in 1945. The division's name was changed in 1962
to the Industrial Psychology Division. In 1973 Division 14 of the American Psychological
Association (APA) changed its name from Division of Industrial Psychology to Division of
Industrial and Organizational Psychology. Different regions of the world have their own
associations for I/O psychologists. For example, the European Association for Work and
Organizational Psychology (EAWOP) is the premiere organization for I/O psychologists in
Europe, where I/O psychology is typically referred to as work and organizational psychology.
A global federation of I/O psychology organizations, named the Alliance for Organizational
Psychology, was recently established in 2009. It currently has three member organizations (SIOP,
EAWOP, and the Organizational Psychology Division of the International Association for Applied
Psychology, or Division 1), with plans to expand in the future.
BRIEF HISTORY
Two other pioneers may be regarded as vital to the formation and development to the field
of I/O psychology in the early years. The first was W. D. Scott. On December 20, 1901, Walter
Dill Scott, a psychology professor at Northwestern University, addressed a group of advertising
professionals. In his talk, he proposed an interesting idea: Using psychological principles in the
field of advertising. Instead of merely exhibiting a product and hoping that customers would realize
their need for it, he thought advertisers could aggressively influence customers by suggesting they
buy it or by arguing and debating the undeniable merits of the purchase. In other words, use
persuasion and argumentation to sell. This talk led to books on the topic published in 1903 and
1908. By 1911 he had written two more books (‘Influencing Men in Business’ and ‘Increasing
Human Efficiency in Business’). He also became the first to apply the principles of psychology to
motivation and productivity in the workplace and was instrumental in the application of personnel
procedures within the army during World War I.
The second person, Hugo Munsterberg, considered by many as ‘the father of industrial
psychology’, pioneered the application of psychological findings from laboratory experiments to
practical matters. In 1913 his book ‘Psychology and Industrial Efficiency’ addressed issues of
personnel selection, equipment design and using psychology in sales. His 1913 book
on Psychology and Industrial Efficiency, is considered to be the first textbook in I/O psychology.
The book is the first to discuss topics such as how to find the best person for the job and how to
design jobs to maintain efficiency by dealing with fatigue. His book Psychology and Industrial
Efficiency (1913) covered three topics: (1) selecting workers, (2) designing work situations, and
(3) using psychology in sales. Munsterberg was most influential in the area of personnel selection
and training, and his best-known research was a study of streetcar operators, where he created
laboratory simulation of an actual streetcar. This research allowed Munsterberg to develop
personnel selection criteria and training procedures that eventually led to better street car operators.
Interestingly, the term “industrial psychology” was seldom used prior to World War I.
Instead, the common terms for the field were “economic psychology,” “business psychology,” and
“employment psychology” (Koppes & Pickren,2007). World War I was a turning point for the field
of I/O psychology, as it popularized the notion of testing for placement purposes. During and after
the war, more than 1 million Americans were tested, which exposed a generation of men to the
idea of using tests as part of selection and placement. At the beginning of the war, the American
Psychological Association, led by President Robert Yerkes, approached Army officials and
proposed that psychological testing be used to evaluate the mental ability of recruits. The results
could then help establish criteria for assigning recruits to appropriate military jobs. The Army
agreed and Yerkes and a group of psychologists were assigned to develop the first group
intelligence test, the Army Alpha. Finding that approximately 30 percent of the World War I
recruits were functionally illiterate, they later developed the first nonverbal intelligence test, the
Army Beta. The testing was accomplished mainly through the Army Alpha and Army Beta tests
of mental ability. The Alpha test was used for r ecruits who could read and the Beta test for recruits
who could not read. The more intelligent recruits were assigned to officer training, and the less
intelligent to the infantry. Interestingly, John Watson, who is better known as a pioneer in
behaviorism, served as a major in the U.S. Army in World War I and developed perceptual and
motor tests for potential pilots (DiClemente & Hantula, 2000). I/O psychologists, especially Henry
Gantt, were responsible for increasing the efficiency with which cargo ships were built, repaired,
and loaded (Van De Water, 1997). Thomas A. Edison understood the importance of selecting the
right employees. In 1920, Edison created a 150-item knowledge test that he administered to over
900 applicants. The test and passing score were so difficult that only 5% of the applicants
[Link], Münsterberg, and Scott had been students of Wilhelm Wundt, the father of
experimental psychology.
An unfortunate consequence of cognitive ability testing during the first few decades of the
twentieth century was in providing data on racial differences in cognitive ability that the Eugenics
Movement used to encourage discrimination against ethnic minorities and immigrants (Gould,
1981; Helms, 2012). The Eugenics Movement believed there were distinct human races differing
on their innate cognitive ability and a host of other attributes, such as health and personal character.
Italians, Jews, Eastern Europeans, Asians, Irish, and Africans were all considered mentally inferior
to persons of AngloSaxon and Germanic stock. Moreover, members of these ethnic minorities
were believed to possess weak moral characters and to carry disease. The cognitive ability test
became a primary tool in eugenics research. In a typical study, immigrants coming to the United
States took cognitive ability tests, and researchers interpreted lower scores as evidence of the
genetic inferiority of entire groups. Ignored were language differences and the fact that most of
the immigrants had never taken a paper-and-pencil test of cognitive ability. Legislators used work
such as this to justify laws against interracial marriage and forced sterilization of those judged as
mentally and morally inferior.