Industrial/Organizational

Psychology
Objectives : At the end of the class, students
will be able to:

1. Define I/O Psychology

2. Describe the major activities of I/O
Psychologists
3. Summarize the history of the I/O field
4.Identify the educational requirements,
types of programs and future direction of
I/O
What is I/O psychology?

Is a branch of psychology
that applies the principles of
psychology to the
workplace.

Purpose: To enhance the

dignity and performance of
human beings and the
organizations they work in,
by advancing the science
and knowledge of human
behavior.
Examples:

Principles of learning – used to develop training

programs and incentive plans.
Principles of social psychology – used to form
work groups and understand employee conflict
Principles of motivation and emotion – used to
motivate and satisfy employees
 The application of
psychological principles is
what distinguishes I/O
Psychology from related
fields which are taught in
business colleges.
 Though many topics of I/O
are similar to those found in
Human Resource
Management (HRM) or
organizational behavior text,
the techniques and the
reasons behind them are
often different.
 Differences between I/O and
Management/Business Programs
1. Focus:
I/O – focus on people . Uses psychological
theories to better understand groups and
people in organization with conflict,
motivation, emotions and other issues.
Management – focuses on the running or
managing as aspect of the organization
such as marketing, advertising, costing,
etc.
2. Approach:

For example:

Management uses unstructured interviews for

example as their best way to size-up and
understand applicants or people.

I/O uses standardized tests and structured

interviews are just part and parcel of the
process of hiring/placement program.
3. Methodology:

I/O: Relies extensively in Research,

Quantitative Methods, and Testing
techniques.
− Uses empirical data and statistics to
make decisions.
− Scientist-Practitioner Model. Scientist
when conducting research, practitioner
when working in actual organization.
 Major fields in I/O Psychology
Two approaches:
 Industrial Approach – 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.
Organizational Approach – 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.
 Industrial vs Organizational Psychology
• Industrial Psychology (personnel psychology):
− Personnel selection--individual differences of employees
− Prediction of job performance.
− Covers job analysis : distinguish what a successful worker from
unsuccessful
− Selection, training, performance appraisal : Job performance =
company “bottom line”
− Traditionally, correlational approach used for research
(motivation, interview test)

• Organizational Psychology (social life aspects applied to

work):
− Leadership
− Not only job performance, but satisfaction, motivation, etc.
− Traditionally, experimental research method
 Subareas within I/O
Personnel Psychology
• I/O psychologists and HRM Professionals
involved in this area study and practice the
following:
Analyzing jobs, recruiting applicants,
selecting employees, determining salary
levels, training employees and evaluating
employee performance.
Organizational Psychology

• Micro: motivation, leadership, teams, worker

attitudes, safety & well-being, work-family
• Macro: org theory, culture, org development
& change

Human Factors & Ergonomics

• Concentrate on workplace design, human
interaction, ergonomics and physical fatigue
and stress
• Modifying equipment & environment to fit
workers
 Who are I/O psychologists?
• Two general groups
1. Academics
• Professors in research- and teaching- oriented
universities and colleges
− Example departments: psychology,
management, industrial relations, quantitative
sciences, occupational health & safety
• Major activities − Teaching courses, conducting
research, writing and presenting research papers,
attending conferences, mentoring students,
performing university and professional service.
2. Practitioners
• HR and organizational specialists in
consulting, private, and public organizations
• Major activities − Job analysis, diagnosis,
surveying employees, designing and
administering selection & performance
appraisal systems, training, developing
psychological tests, implementing and
evaluating OD & change, data analysis
3.“Other” category
• Research institutes, think tanks (SIOP –
Society for Industrial and Organizational
Psychology)
 What do I/O Psychologists DO?

• Careers emphasize science and research or

practice.
• 39% are professors employed by universities
• 15% work in private organizations (Human
Resources)
• 15% work in public organizations
• 33% work in consulting firms
 The science and practice of I/O Psychology
• Primary work areas for I/O work:
1. Selection − Develop, validate, and administer
psychological tests to assess (measure) skills, abilities
and interests as aids in selection and placement and
promotion.
2. Training : (a) Analyze: First thing I/O personnel does,
is try to understand nature of job--knowledge & task
requirements . (b) Conduct training programs, and
evaluate the effectiveness of training.
3. Organizational Development − Analyze
organizations’ culture/climate, develop interventions
--> increase in efficiency. E.g. user interface
productivity
 More functions of the I/O Psychologist

Performance Appraisal − Develop rating scales, and

other measures of individual/organizational
performance to improve employee performance.

Quality of Work-life
− Previously, human workers were not viewed as
human
− Develop surveys that assess employees’
satisfaction with their jobs and
commitment to the organization.
Satisfaction: one of most common surveys.
 Job Titles of I/O Psychologist

• I/O Psychologist
• Consultant
• Psychology Professor
• HR Recruiter
• Research psychologist / analyst / scientist
• Staffing Manager
• Trainer, Training Coordinator
• VP – Human Resource
• VP – Organizational Development
• HR Director, Generalist, Representative, Specialist,
Supervisor, Manager
 History of I/O Psychology:(1900-1916)

 • I/O Psych was nameless at first.

− W. L. Bryan:
• Stressed importance of studying
“concrete activities and functions as they
appear in daily life.”
• But not really considered father of
I/O Psych because he was a precursor,
before the field was established.
 When was the nameless named?

• Frank and Lillian Gilbreth

 Interested in improving productivity and efficiency of
industrial engineers.
Argued for the use of psychology in the work lives of
industrial engineers.
− Led to the merger of psychology with
applied interests.
− The nameless was crowned industrial
psychology in 1910.
• (The “organizational” bit came in the
1970s).
 The 3 Founding Fathers

1. Walter Dill Scott (American

Psychologist)
2. Hugo Munsterberg (German
Psychologist)
3. Frederick Taylor (American
Engineer)
1.Walter Dill Scott (American
Psychologist)

− First to apply the principles of

psychology to motivation and
productivity in the workplace.
− Would later become instrumental in the
application of personnel procedures
within the army during World War I.
• Boosted Industrial Psychology
2. Hugo Munsterberg (American-German Psychologist)

• Father of industrial psychology

1. Applied psychological method to practical
industrial problems.
2. Psychology and Industrial Efficiency (1913)
3. View of I/O psychology:
• People need to fit the organization – training
• Applied behavioral sciences should help
organizations to shape people to serve as
replacement parts for organizational machines.
Mechanistic.
3. Frederick Taylor (American Engineer)
• Principles of Scientific Management (1911).
 Science over intuition
 The best workers should be selected and trained in the
established “one best method”
 Management and workers should cooperatively share
responsibility for the design and conduct of work.
− Motivation and monetary gain
 Motivation results from monetary gain.
 E.g.: Showed that workers who handle heavy iron ingots were
more productive when allowed work rests.
• Training when to work and when to rest raised
productivity from 12.5 to 47.0 tons moved per day.
• Company increase efficiency. Costs dropped from 9.2 to
3.9 cents per ton.
 World War I - I/O field catalyst

• Robert Yerkes and Walter Dill Scott:

− Screening recruits for mental deficiency—Army Alpha
and Beta intelligence tests developed.
− Classification of selected recruits into jobs
− Performance evaluations of officers
− Job Analysis
− soldier motivation and morale
− Discipline
• *(1917): Journal of Applied Psychology began
publication
 Between the Wars (1916-1940)
The Hawthorne Studies

• Collaboration between Harvard researchers and Western

Electric Co.
− Studied the relation between lighting and productivity.
• Productivity went up when lighting was
increased…and when light was decreased
• Hawthorne Effect
− Employees knew they were being watched
• Following onset of novel treatment (new or
increased attention usually) − If you don’t want more work given
to you, purposely perform poorly.

• Human Relations Movement – social factors boost worker

morale.
 World War II and shortly thereafter

• Selection and classification work continued in the Army:

− Development of Army General Classification Test (AGCT).
• Sorted army recruits into categories based on their
abilities to learn duties of a soldier
− The Office of Strategic Services came about
• Assessed candidates’ ability to deal with stressful
situations
− Build a cube with one passive helper and one
frustrating ‘helper’
− Pilots trained to fly warplanes.
• Good candidates were selected; also equipment’s HF.

• Henceforth, use of employment tests increased in industry.

− Industrial psychologists proved useful for selection, training
and machine design.
− Industrial leaders interested in applying social psychology.
• Measures of attitudes and morale, now used in
industry
 History of the Field of I/O Psychology (I)

• I/O Psychology is a 20-century invention, with roots in the late

1800s and early 1900s

− First psychologists to do I/O work were experimental

psychologists who applied the new principles of psychology to
problems in organizations
− Two main founders of the field were Hugo Munsterberg
and Walter Dill Scott
• Munsterberg interested in the selection of
employees and the use of the new psychological tests, wrote the
first I/O textbook , Psychology and Industrial Efficiency (1913)
• Scott interested in advertising, Scott’s The
Theory of Advertising (1930)
 History of the Field of I/O Psychology (II)

− The major influence on the I/O field was the work of Frederick Winslow
Taylor
• Developed the Scientific Management
− Each job should be carefully analyzed so that the optimal way of
doing tasks can be specified − Employees should be selected
hired) that related to job performance
− Employees should be carefully trained to do their job tasks
− Employees should be rewarded for their productivity to encourage
high levels of performance

− Frank and Lillian Gilberth, who were combined the fields of engineering and
psychology
• Their best-known contribution was the time and motion study
− Measuring and timing people’s motions as they did tasks with the
goal of developing more efficient ways of working
− Lillian was the first to receive an I/O Ph.D. in 1915
 History of the Field of I/O Psychology (III)

− Robert Yerkes offered their services to the army

• Development of the Army Alpha and Army Beta group tests for
mental ability
• This is the first large-scale application of psychological testing to place
individuals in jobs

− Hawthorne studies (Hawthorne effect)

• The investigation of lighting-level effects
− Determine the lighting level that would produce optimal performance
on a factory task
− Productivity increased and seemed to have little to do with lighting
levels
− Social factors can be more important than physical factors in people’s
job performance

• APA applied psychology, and Division of Industrial and Business Psychology

was formed in 1944.
 History of the Field of I/O Psychology (IV)

• In 1970, the Division of Industrial and

Organizational Psychology and today called the
Society for Industrial and Organizational
Psychology (SIOP)

• I/O Psychology was the passage of the Civil

Rights Act of 1964
− Help develop procedures that would
eliminate discrimination in the workplace.
 I/O Psychology Around the World

• US has had a long tradition of paying somewhat

greater attention to the I side than the O side of the
field
− Canada and Europe focus somewhat more
on the organizational direction
− Scandinavian countries concerned with
employee health and stress
− US , employee selection was the most popular
topic

• Began the 21 century, the practice is spreading as I/O

techniques gain acceptance in more and more places
 Ethics of The I/O Field

• Ethical code
− Psychologists should do their best to avoid harming other
people through their professional work
− Psychologists have a social responsibility to use their talents to
help other people
− Helping to improve organizations so that they function better
and helping to improve the well-being of employees
− Contains 6 principles
• Competence, integrity, professional and scientific
responsibility, respect for people’s rights and dignity,
concerns for others welfare and social responsibility
• Honesty, integrity, respect for others, and responsibility
 Current Trends Affecting the Field (I)

1. Linked to the realities of day-to-day organizational life

− Workplace affect both the practice and the research field
− Deal with contemporary challenges and problems

2. Technology
− Advances in communication and transportation changed the
way in which organizations functioned
− The World Wide Web is responsible for much of this changed
− Organizations are simply posting their old ads on-line

3. Internationalization
− In the practice side, DDI and PDI changed the meaning of the I
in their names from “incorporated” to “international”
 Current Trends Affecting the Field (II)

− The research side, collaboration among scholars in different

countries has grown
− Providing cross-fertilization of the field through the
introduction of new ideas

4. Skilled Labor Shortages

− Jobs have become more complex, requiring higher levels of
skills, the supply of employees has been dwindling
− How best to attract applications in the first place
− How to find and train people who have potential
− How to retain the employees they have

5. Occupational Health Psychology

− Focus on the health, safety and well-being of employees in the
workplace
 A Look Into the Crystal Ball: The Future

• Changing nature of employees:

− Fewer young people entering workforce (baby boom)
− More women (2/3 of entry-level)
− More minorities (1/3 of entry-level)
− More temporary workers

• Changing nature of organizations:

− Mergers and acquisitions; failures and downsizing--layoffs--
more work, less manpower.
− Smaller organizations, employing fewer people. Cynical
workers/job security.
− Greater focus on work teams (flatter management hierarchy)
• Growing importance of technology:
− Technology-mediated communication
1. Workers can work anywhere (from home, etc)
2. Loss of direct human contact--impact on social
relationships, mental health, etc.
− Human-technology interaction
• New jobs in maintenance of technology
− Replace manufacturing operatives as “worker
elite”
• Greater focus on decision-making and
coordination of activities by humans − Because
jobs are becoming more technologically complex
• Redefinition of “job”:
− less emphasis on job as a fixed bundle of tasks
− emphasis on constantly changing tasks
1. Requires constant learning
2. More higher-order thinking
3. Less “9 to 5”

• Changing nature of pay:

− 1. *Tied less to position or tenure in organization
− 2. Tied more to market value of person’s KSAOs
(Knowledge, Skills, Abilities and Other characteristics)
 Where do you go to become an I/O
psychologist?

• Grad school: MA and PhD programs

• Lots of course work in years 1 and 2
• MA thesis completed in year 2 or 3
− Varies in formality by program
• Internship
• Comprehensive exams in year 3
• Dissertation in years 4 and 5 − Proposal
and defense meetings
 When should you begin thinking about grad school in I/O
psychology?

The sooner the better!

− Stuff to think about early on

• Relevant coursework − I/O, stats, research methods, tests

& measures, social, personality, motivation, cognitive, OB/HR

• Research experience
− Honor’s thesis
− Experience is more important than topic

• Interact with faculty, grad students

− Be active (not passive)
− Attend brown bags
− Involvement in professional societies
 Why should you consider getting a degree in I/O
psychology?

• Applied field
− There will always be practical problems to solve.
• Company restructuring & downsizing
• Workplace diversity

• Variety of job possibilities

− Academic positions in multiple departments
− Internal and external consulting
− Private and public organizations
− Any combination of the above
 Why should you consider getting a degree in I/O
psychology?

• Variety of research topics

− Attitudes, emotions, behavior (social)
− Learning, memory, heuristics (cognitive)
− Employee aging, retirement (developmental)
− Employee counseling, coaching (clinical)
− Data analysis, test development (quantitative)

• Field is growing
− More and more I/O and management department’s
− Out with the old, in with the new
References:
Aamodt, Michael G. Industrial and Organizational
Psychology Philippines (reprint), CENGAGE Learning
Asia Pte. Ltd., 2012.

Muchinsky, Paul M. Psychology Applied to Work (An

Introduction to Industrial/Organizational Psychology).
8th ed. Thomson/Wadsworth. University of North
Carolina, 2007