Module-I
Introduction to
Industrial Psychology
• Industrial/Organizational (I/O) Psychology the branch of psychology that is
concerned with the study of behaviour in work settings and the application of
psychology principles to change work behaviour.
• I/O psychologists study the basic personnel functions within organizations,
such as the way workers are recruited and selected, how employees are trained
and developed, and the measurement of employee job performance.
• I/O psychologists study the psychological processes underlying work
behaviour, such as the motivation to work, and worker feelings of job
satisfaction and stress.
• I/O psychologists focus on group processes in the workplace, including the
relationships between workplace supervisors and subordinates, and how
groups of workers coordinate to get the job done.
• The purpose 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 behaviour” (Rucci, 2008).
• The main difference between I/O psychology and business fields is that I/O
psychology examines factors that affect the people in an organization as
opposed to the broader aspects of running an organization such as marketing
channels, transportation networks, and cost accounting (Kimbrough, Durley,
& Muñoz, 2005).
• I/O psychology relies extensively on research, quantitative methods, and
testing techniques. I/O psychologists are trained to use empirical data and
statistics rather than intuition to make decisions.
• Though the goal of I/O psychology is to increase the productivity and well-
being of employees, there are two approaches as 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 the necessary information to do their jobs, and provide
working conditions that are safe and result in an enjoyable and satisfying
work/life environment.
Historical Development of I/O psychology
• Frederick W. Taylor was the founder of the scientific management
movement.
• When the field of psychology was still in its infancy, a few early
psychologists dabbled in the study of work behaviour.
• Hugo Munsterberg was an experimental psychologist who became
interested in the design of work and personnel selection for jobs such
as streetcar operator (Munsterberg, 1913).
• Walter Dill Scott, who was interested in studying salespersons and the
psychology of advertising (Scott,1908).
• Another early spark that helped ignite the field of I/O psychology was
provided not by a psychologist, but by an engineer named Frederick W. Taylor.
Taylor believed that scientific principles could be applied to the study of work
behaviour to help increase worker efficiency and productivity.
• Time-and-Motion Studies procedures in which work tasks are broken down
into simple component movements and the movements timed to develop a
more efficient method for performing the tasks
• Scientific Management begun by Frederick Taylor, a method of using
scientific principles to improve the efficiency and productivity of jobs.
• Unfortunately, Taylor’s philosophy was quite narrow and limited. Today,
jobs are much more complex and often require sophisticated problem-solving
skills or the use of creative thinking.
• Following World War I, psychologists began to be involved in the screening
and placement of personnel in industry.
• The 1960s through the early 1990s was a time when research and practice in
I/O psychology flourished. Many of the topics currently associated with I/O
psychology were developed and explored in depth during this period.
• One historical event during this time period that had a major impact on I/O
psychology was civil rights legislation. One portion of the sweeping Civil
Rights Act of 1964, Title VII, banned discrimination in employment practices.
• Subsequent civil rights legislation protected other groups from discrimination,
including older people (Age Discrimination in Employment Act, 1967 and
1978) and people with disabilities (Americans with Disabilities Act, 1990).
Present status & future prospects
• Today, industrial/organizational psychology is one of the fastest-growing areas
of psychology.
• They are involved in nearly every aspect of business and industry.
• key trends in the world of work that are important today and in the future of
I/O psychology.
• Jobs and organizations are rapidly changing and evolving. Organizations are
becoming flatter, with fewer levels in the hierarchy, and they are being broken up
into smaller subunits with greater emphasis on work teams.
• In addition, I/O psychologists will assist organizations in redesigning jobs for
greater efficiency; in creating new and more flexible organizational structures
and work teams; and in helping workers become more engaged, motivated, and
better able to deal with stresses that result from all the changes.
• Many jobs are becoming increasingly complex due to technological
advancements, and they are more demanding, requiring workers to process
more and more information and to make more decisions (Ones &
Viswesvaran, 1998a).
• Organizational downsizing is a strategy of reducing an organization’s
workforce to improve organizational efficiency, productivity, and/or
competitiveness (Mentzer, 2005; Molinsky & Margolis, 2006).
• Research evidence shows that some of the changes in the nature of work,
such as telecommuting, increased mobility of workers, and organizational
downsizing, have led to decreased levels of worker loyalty and
commitment to organizations (e.g., Allen, Freeman, Russell, Reizenstein, &
Rentz, 2001).
• Outsourcing of work—contracting with an external organization to
accomplish tasks that were previously done, or could be done, within the
organization.
• Outsourcing is used to increase output and can reduce overhead costs
associated with the personnel needed to do the tasks in house.
• Organizations have become more and more concerned about and responsive
to the needs of workers. At the same time, organizations are realizing that
skilled and creative workers are the keys to success.
• The term “talent management” is a frequent buzzword heard in organizations
—important because it reflects the emphasis on the value of the worker and
the need to select, care for, and develop workers’ talents (Sparrow & Makram,
2015).
• Immigration, the increase in global organizations, and the increasing number
of women entering the organizational workforce has led to greater and greater
workplace diversity.
• The diversity of cultures in workplaces will also increase as workers become
more internationally mobile.
• Although increased diversity presents challenges to organizations and
managers, this increased workforce diversity also represents a tremendous
strength and opportunity.
• Increased workforce diversity can also help an organization in understanding
and reaching new markets for products or services.
• I/O psychologists are having a bigger impact on shaping policies and
practices regarding the workplace and issues regarding workers and the
workforce.
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