COLEGIO DE STA. ANA DE VICTORIAS, INC.

Osmeña Avenue, Victorias City, Negros Occidental, 6119

LEARNING MODULE 1
Descriptive Title: INDUSTRIAL PSYCHOLOGY
Subject Code: PSYC 423

This course provides an overview of psychological concepts, theories, and research findings for
effective human interaction and performance in the workplace. Topics include personnel
psychology, ergonomics, motivation, leadership, customer service and occupational stress
among others.

Unit 1 INTRODUCTION TO I/O PSYCHOLOGY

A brief overview of the field of I/O psychology will be discussed in this module. Research
methods will also be discussed.
LEARNING OUTCOMES

After this unit, the students will be able to:

1. describe I/O psychology and what I/O psychologists do.
2. recall the history of I/O psychology
3. appreciate the importance of conducting research
LEARNING RESOURCES/ REFERENCES

Aamodt, M. ((2016). Industrial and Organizational Psychology, 8th ed., Cengage Learning

Ciccarelli, S. & White, J. (2015). Psychology, 4th ed., Philippines: Pearson Education
South Asia Pte. LTD.

Feist, J.,et al. (2013). Theories of Personality, 8th ed.,Theories of Personality, McGraw-
Hill Inc.

Zarate, C. (2017). Fundamentals of Industrial Psychology. C & E. Publishing, Inc.

LEARNING INPUTS (LESSONS)

Industrial-organizational psychology – A branch of psychology that applies the principles

of psychology to the workplace.

Major Fields of I/O Psychology

Personnel Psychology – concentrates on the selection and evaluation of employees.
Organizational Psychology – investigates the behavior of employees within the context
of an organization.
Human Factors/Ergonomics – concentrates on the interaction between humans and
machines.

Major Areas of Industrial Psychology

1. Training and development
2. Employee selection
3. ergonomics
4. Performance management
5. work life
6. Organizational development

Areas of Specialization (under the six major areas)

1. Research methods
2. Statistical methods/data analysis
3. Attitude theory, measurement, and change
4. Career Development
5. Criterion theory and development
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6. Health and stress in organizations

7. Human performance/human factors
8. Individual assessment
9. Job evaluation and compensation
10. Consumer behavior
11. Job/task analysis and classification
12. Judgment and decision-making
13. Leadership and management
14. Organization development
15. Organization theory
16. Performance appraisal and feedback
17. Personnel recruitment, selection, and placement.
18. Small group theory and team processes
19. Training: Theory, program design, and evaluation
20. Work motivation

Core Domains of Industrial Psychology

1. Assessment
2. Intervention
3. Consultation
4. Supervision
5. Research and Inquiry
6. Consumer protection
7. Professional development

How Do We Define Industrial and Organizational Psychology?

Industrial and organizational psychology is defined as the study of people working and
the application of the principles of psychology to the organizational and work
environment (Spector, 2008; Jex, 2002). Industrial and organizational psychology is a
field of psychology which is concerned with both the study of psychological principles as
a science and the application of those principles (Spector, 2008; Jex, 2002).
The Industrial Side
Industrial and organizational psychology is like a coin with two sides. Industrial
psychology is the first side of that coin. The main focus of the industrial side of the coin
 COLEGIO DE STA. ANA DE VICTORIAS, INC.
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is understanding human behavior in order to improve organizational efficiency,

employee selection, employee training and to more efficiently design jobs (Spector,
2008; Jex, 2002).The industrial side of industrial and organizational psychology is a top
down perspective which views human behavior to assess ways in which the organization
can benefit from the application of psychological principles (Spector, 2008; Jex, 2002).
The Organizational Side
The organizational side of the coin is the inverse of this. The organizational side focuses
on understanding behavior in order to enhance employee satisfaction and well-being
within the work place (Spector, 2008; Jex, 2002). Spector (2008) explains that
“organizational topics include employee attitudes, employee behavior, job stress, and
supervisory practices” (p. 5). Judging by the focus of organizational topics it can be
stated that the organizational side of the field is a bottom up perspective which focuses
on behavior in order to improve the quality and satisfaction of the individuals within an
organization rather than the organization as a whole.
The Two Sides Together
Though each of these two sides is focused from a different perspective they are not
mutually exclusive in their goals, their applications or their topics of interest. Spector
(2008) uses the example of motivation to explain the dual nature of subjects studied by
industrial and organizational psychologists, stating that motivation “is relevant to the
[industrial] concerns of employee efficiency and performance, but it is also relevant to
the [organizational] concern with the happiness and well-being of employees” (p. 5).
The Early Years Of I/O Psychology
The field of industrial and organizational psychology was spawned in the 1800s out of
experimental psychology (Spector, 2008; Koppes, 2007). Hugo Münsterberg, Walter Dill
Scott and James Mckeen Cattel were early pioneers of the field of industrial and
organizational psychology (Spector, 2008; Koppes, 2007). Münsterberg and Cattel both
trained under Wilhelm Wundt graduating from his doctoral program in Germany before
relocating to the United States (Koppes, 2007). These pioneers brought the study and
application of psychological principles into the world of business and industry (Spector,
2008; Koppes, 2007). According to Koppes (2007) “In the beginning the objective of an
industrial psychology was to improve organizational goals (productivity and efficiency)
primarily by applying psychology with an emphasis on individual differences, through
selection and training” (p. 314). The early years of this branch of psychology focused on
the industrial side of the field (Spector, 2008; Koppes, 2007). During this time there was
a marriage within the field of industrial psychology between the principles of psychology
and the field of engineering (Spector, 2008; Koppes, 2007). Many of the individuals who
helped to influence the field of industrial psychology had backgrounds in engineering,
some had backgrounds in history and law (Spector, 2008; Koppes, 2007; Jex, 2002).
Industrial Psychology and the First World War
Industrial psychology prospered due to World War I (Spector, 2008; Koppes, 2007).
When the United States entered the first World War psychologist were called upon to
develop a program for psychological evaluation or recruits as well as a means for
selecting personnel for specific jobs within the military (Spector, 2008; Koppes, 2007).
The group of psychologist working with the military were led by Robert Yerkes (Spector,
2008; Koppes, 2007). According to Spector (2008) “the best-known accomplishment of
the group was the development of the Army Alpha and Army Beta group tests for
mental ability” (p. 12). Koppes (2007) explains that these mental ability test “paved the
way for large-scale intelligence testing and for later expansion of psychological testing
into government, industry, and education” (p. 315). Between the first and second World
War the field of industrial and organizational psychology expanded rapidly (Spector,
2008; Koppes, 2007; Jex, 2002).
The Hawthorne Studies
According to Spector (2008) “One of the most important events of this period was the
Hawthorne studies, which continued for more than 10 years at the Western Electric
Company” (p. 12). The Hawthorne studies became a pivotal point in the evolution of
industrial and organizational psychology because it was primarily responsible for the
development of the organizational side of the field (Spector, 2008; Koppes, 2007; Jex,
 COLEGIO DE STA. ANA DE VICTORIAS, INC.
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2002). The Hawthorne studies inadvertently revealed the human side of organizations.
In another attempt to study methods of increasing efficiency and productivity it was
learned that social aspects of an organization, such as work groups and the worker's
knowledge that they are being watched, affected the workers behavior and
performance (Spector, 2008; Koppes, 2007; Jex, 2002). The understanding that social
aspects of the work environment had an effect on behavior led to psychologists
examining the work environment from the perspective of the individual employees
(Spector, 2008; Koppes, 2007; Jex, 2002).
World War II and Division 14 of the APA
The emergence of World War II again allowed the field of industrial and organizational
psychology to expand due to the growing demands of the military (Spector, 2008;
Koppes, 2007; Jex, 2002). World War II not only widened the scope of the field of
industrial and organizational psychology, it also opened doors professionally for
industrial and organizational psychologists. Before the second World War the American
Psychological Association was not concerned with experimental or applied fields within
psychology (Spector, 2008; Koppes, 2007). In response to the changes occurring in
psychology at the time the APA created Division 14, Industrial and Business Psychology
(Spector, 2008; Koppes, 2007; Jex, 2002). This arm of the APA went through a couple of
changes and eventually evolved into the Society for Industrial and Organizational
Psychology (Spector, 2008; Koppes, 2007; Jex, 2002).
https://owlcation.com/social-sciences/History-of-Industrial-and-Organizational-
Psychology

Things to remember:
Army Alpha - an intelligence test developed during World War I and used by the army
for soldiers who can read.

Army Beta – an intelligence test developed during World War I and used by the army for
soldiers who cannot read.

Hawthorne effect – when employees change their behavior due solely to the fact that
they are receiving attention or are being observed.

Internship – a situation in which a student works for an organization, either for pay or as
a volunteer, to receive practical work experience.

Practicum – a paid or unpaid position with an organization that gives a student practical
work experience.

LEARNING ACTIVITIES

BY THREE’S: Research the contribution of the following individuals to the history of

Industrial Psychology
Group A
1. Joseph Wharton
2. Walter Dill Scott
3. Hugo Munsterberg

Group B
4. Frederick Winslow Taylor
5. Frank and Lilian Gilbreth
6. Robert Yerkes

Group C
7. James McKeen Cattell
8. Walter Bingham
9. Elton Mayo
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Group D.
10. Rensis Likert
11. Louis Leon Thurstone
12. Morris Viteles
13. Kurt Lewin

*Submit written output to sharon.medez@csav.edu.ph

TRENDS IN INDUSTRIAL PSYCHOLOGY

1. temporary and part-time work
2. telework
3. social media
4. work-life balance
ASSESSMENT TASK:
Answer the following and email to sharon.medez@csav.edu.ph

1. Explain the nature and scope of Industrial Psychology in your own words.
2. Which do you think among the trends in Industrial Psychology will greatly affect the
lifestyle of employees?

RESEARCH IN I/O PSYCHOLOGY

Industrial and organizational (I/O) psychologists study and assess individual, group and
organizational dynamics in the workplace. They apply that research to identify solutions
to problems that improve the well-being and performance of organizations and their
employees.

Literature reviews
Journals
Trade magazines
magazines

Location of the study: laboratory or field research

Research Methods:
Experiments
Quasi-experiments
Archival research
Meta-analysis

Ethics in Industrial/Organizational Practice

Ethics has to do with defining what is meant by right and wrong or good and bad, and
with justifying according to some rational system what one ought to do or what sort of
person one should be. As applied to the practice of industrial-organizational psychology,
professional ethics concerns the moral appropriateness of our work activities and the
proper treatment of all those with and for whom we work, including employees, clients,
client organizations and their various stakeholders, interns, students, and professional
colleagues. Many of the moral standards that guide such ethical practice are
deontological, or rule-based in nature, having to do with principles such as the
fulfillment of duties and obligations, keeping one’s promises, respecting people’s dignity
and autonomy, maintaining their trust, and striving for fairness or justice. In some
instances, determining the proper thing to do seems better understood from a
consequentialist or utilitarian perspective, choosing the action that maximizes the
aggregate good or minimizes the net harm resulting from a particular situation.
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Most secular ethicists believe neither that there are objectively verifiable moral facts to
guide us nor that ethics is merely a matter of one person’s subjective judgment versus
someone else’s. Ethical reasoning suggests that the correct ethical choice is the one that
is justified by the best arguments. Because it is not possible to specify in advance or to
anticipate all of the potential ethical dilemmas one might face, it is advisable to be
familiar with some general principles from moral philosophy as well as applicable ethical
standards, such as the American Psychological Association’s (APA) Code of Conduct, that
can provide guidance when needed.
The Domain of Moral Action
A problem is generally thought to represent an ethical dilemma if it involves the
potential violation of one or more fundamental moral or ethical principles such as those
enshrined in formal ethical codes such as the APA’s. They are as follows:
Respect for people. Deontological moral theories emphasize people’s right to be
treated with dignity and their rights to privacy or confidentiality, autonomy, freedom,
and self-expression. Such rights are universalizable (applicable to all) and so do not
extend to the point of infringing on the rights of others.
Beneficence. According to this principle, derived from the empathy-based “ethics of
care” in moral philosophy, one is expected to do good and promote human welfare
when it is reasonably possible to do so. This concept is especially apt when applied to
those to whom one has some special obligation or responsibility or who help further
one’s own interests, such as employees, students, clients, and research participants. It is
also especially appropriate for professionals who—by virtue of the authority, influence,
and rights society bestows on their profession—are assumed to have societal
responsibilities that go beyond serving only their paying clients.
Nonmaleficence. Refraining from unjustifiably doing harm is the principle about which
there is most agreement among moral philosophers. It is especially fitting with respect
to those in vulnerable positions and extends to guarding against the possible misuse of
one’s work by others (e.g., misuse of personnel assessments or survey findings). The
APA code directs that conflicts among competing obligations be resolved “in a
responsible fashion that avoids or minimizes harm” (Principle A).
Fairness and justice. Justice may be defined in a Kantian manner as a balance of rights
and obligations. Social justice is generally defined in terms of the fairness by which the
benefits and burdens of a social system, such as an organization, are distributed among
its members. Industrial/organizational psychology has been more concerned with the
empirical microlevel question of perceived justice than with explicating normative
standards of distributive social justice.
Moral virtue or character. This subdomain calls attention to the role of personal
qualities in the expression of ethical behavior. It concerns issues such as being sensitive
to potential ethical dilemmas and being motivated to avoid or resolve them fairly, being
trustworthy with those with whom one works, accepting responsibility for one’s actions,
honoring one’s commitments, and promoting the accuracy, validity, and integrity of
professional work.
An ethical dilemma is a problem that implicates one or more of those moral issues and
involves having to make a choice that will have a significant impact on the well-being of
others.
Types of Ethical Dilemmas
Despite the multitude of potential ethical dilemmas with which one might be faced,
most of them can be characterized as falling in one of the following categories—or as a
combination of more than one (the categories are not mutually exclusive, in any event).
Foreknowledge of someone to be harmed by a third party. For example, an
industrial/organizational psychologist is asked to participate in a process of developing
plans for a major reduction in force (RIF) and learns that management does not plan to
announce the RIF to employees who may be terminated until the last minute. Senior
managers are concerned about possible adverse effects on productivity if it is
announced with too much lead time, and the industrial/ organizational psychologist is
expected to comply with this timetable—which will exacerbate the RIF’s harmful effects
on those let go.
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A self-serving act that will wrong or harm another. The behavior may even be self-
serving by proxy— that is, serving the needs of one’s employer—and communicated as
company policy. Although most managers want to behave ethically, research has
indicated that the threshold for unethical behavior is lower when it is perceived as being
on behalf of the organization’s goals and objectives rather than for personal gain only.
For example, it might be tempting to allow management to direct employees’
mandatory cooperation with one’s data collection efforts even though it should be
presented clearly as voluntary, with no consequences for nonparticipation. One might
also be tempted to take on a project that is outside one’s boundaries of professional
competence, as determined by one’s education, training, study, and supervised or
professional experience.
Competing obligations to two or more entities. Every good supervisor or manager has
encountered situations in which it may not be easy to be fair and impartial to all
employees in the distribution of organizational rewards or with respect to other
personnel decisions affecting subordinates. Industrial/ organizational psychologists
often face analogous conflicts by virtue of our simultaneous obligations to both the
client organization (or employer) and the individual employees and managers with
whom we work. A review by Carolyn Wiley of the codes of conduct of five professional
human resources organizations revealed uniform acknowledgment of multiple
obligations to the public or society at large, the employer or client organization,
employees, and colleagues and to one’s profession and professional association. When
working with individuals or teams (e.g., in executive coaching, conducting focus groups,
individual assessment, or organizational diagnosis), it is advisable to clarify beforehand
and explain to those individuals or groups one’s obligations to the organization, such as
any necessary limitations on anonymity or confidentiality.
A situation in which two or more equally important ethical values conflict. For
example, if an anonymous survey respondent alleges some serious wrongdoing by a
senior manager who is putatively damaging the company, the industrial/organizational
psychologist has to choose from among courses of action (which include doing nothing)
that balance conflicting obligations to respect employee anonymity, to avoid harming a
potential victim of mere gossip, and to prevent possible further damage to the
organization. The most appropriate response is likely to be determined by details of the
situation.
Pressure to violate ethical principles. Business corporations, and the managers who run
them, are not subject to all of the ethical standards that characterize the professional
responsibilities of psychologists, who are obliged by the preamble of our ethical (APA)
code to use knowledge to better people and organizations. The managers are, in fact,
subject to pressures for productivity, efficiency, speed, and profitability, and these aims
may at times be at odds with some ethical standards. For example, a senior manager
might wish to use, for purposes of making personnel decisions, assessment or survey
data that had been obtained confidentially after explaining to all participants that it
would be used only for personal development or organizational improvement. Standard
1.03 of the APA code also indicates that if there is conflict between the ethical code and
organizational demands, the psychologist must resolve the conflict in accordance with
the code.
Determinants of Ethical and Unethical Behavior
The expression of ethical behavior (i.e., its incidence and form) can be explained by four
general categories of antecedents:
Cultural influences. These include social, economic, and political factors that influence
the development of ethical norms and practices through the institutions of a society. For
example, in Western (especially American) free-enterprise capitalist society, social
justice or fairness is generally understood in terms of merit, which is defined by the
distributive justice criterion of equity, as opposed to equality or need. Moreover, equity
itself is conceived within an individualistic perspective, whereas in many other parts of
the world a communitarian standard is viewed as right. These ideas consequently shape
our values regarding the proper definition and meaning of constructs such as test bias
and test fairness. The socialization experiences that shape one’s standards of conduct
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are initiated and/or mediated by family, schools, peers, religious training, employer
organizations, and other institutions.
Individual difference variables. Interdisciplinary research in moral psychology has
shown that early cognitive and emotional development (e.g., the development of
empathy) underlies moral development. Adults differ in attributes that fall within the
conception of moral character or virtue—traits such as honesty, moral values, moral
sensitivity, moral imagination, moral motivation, and moral self-identity. One’s values
determine, in part, whether one even experiences a particular situation as an ethical
dilemma or choice. For example, some psychologists refuse to work for a cigarette
manufacturer; others see nothing wrong in furthering the fortunes of a legal enterprise;
still others may consider the situation in terms of a balance of benefits and harms.
Attributes of the dilemma. The relative difficulty and upset caused by an ethical
dilemma is a function of its moral complexity, moral intensity, and other factors. Moral
complexity pertains to the number of moral values and principles evoked and the
relations (e.g., conflict) among them. Moral intensity is determined by the degree of
social consensus surrounding the ethical issue, the nature and magnitude of the
decision consequences for those affected, and the likelihood of those consequences
occurring. Also relevant are who is likely to be benefited or harmed and, in the case of
organizational settings, how public the situation is.
Contextual, including organizational, influences. Situational effects on behavior
constitute a long-standing topic in social psychology. In this domain, for example, ethical
judgments have been shown to be influenced by whether one is primed to identify with
the perpetrator or the victim of a moral transgression. In the organizational setting,
ethical norms, behavior, and the perception of unethical behavior have been shown to
be influenced by one’s position and status in the organization and by the organization’s
ethical culture, as reflected in the relative salience of moral standards, its social
sanctions and reward structure, and the modeling of senior managers and supervisors
(the “tone at the top”), as well as the absence of counter-norms that contradict the
ethical culture (e.g., pressure to “do whatever it takes to get the job done”).
Preventing Ethical Problems
Although it is impossible to foresee all the ethical dilemmas one might encounter, some
activities can help one to anticipate likely problems and ready oneself for thinking
through them when they arise.
1. Be familiar with the applicable ethical codes such as those of the APA, the
Canadian Psychological Association, the Academy of Management, the
International Personnel Management Association, and the Society for Human
Resource Management. Also know applied sources and articles such as the
Society for Industrial and Organizational Psychology’s ethical case book, edited
by Rodney Lowman. The introduction of the APA code states explicitly that
ignorance of ethical standards is not a defense against ethics charges.
2. Be familiar with applicable state laws and federal regulations. These include laws
regulating the licensing of psychologists and dealing with issues of
confidentiality, malpractice, and research with human participants. Especially
pertinent are statutes and regulations governing employment practices, such as
the Civil Rights Acts of 1964 and 1991, the Americans With Disabilities Act, the
Age Discrimination in Employment Act, and the Uniform Guidelines on
Employment Selection Procedures.
3. Know the rules and regulations of the institution at which you work. This
knowledge helps assure competent practice in keeping with the organization’s
expectations and can alert one to possible conflicts between organizational
norms and professional ethical standards.
4. Engage in continuing education in ethics by means of attending courses and
workshops, reading books on ethics and ethical practice, and subscribing to
relevant journals such as Ethics and Behavior, Professional Psychology, Journal of
Business Ethics, Business and Society, and Business Ethics Quarterly.
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5. Attempt to identify areas of potential ethical difficulty before a problem arises.

That identification will be aided by information gleaned from the preceding four
activities.
6. Maintain a mind-set of ethical watchfulness. In addition to the previous steps,
one can exercise one’s moral sensitivity to avoid ethically ambiguous situations
or attempt to clarify them before becoming involved.
7. Learn a systematic approach for analyzing ethical problems in complex
situations. Many texts on applied ethics contain decision-making models for this
purpose. The one presented by Joel Lefkowitz is in the context of
industrial/organizational psychology. Perhaps most important, find a trusted and
knowledgeable confidant with whom to share your concerns. Ethical dilemmas
can be very stressful; it is best to not go through the process in isolation.

http://psychology.iresearchnet.com/industrial-organizational-psychology/corporate-
ethics/ethics-in-industrial-organizational-practice/#:~:text=As%20applied%20to%20the
%20practice,stakeholders%2C%20interns%2C%20students%2C%20and

LEARNING ACTIVITY:
Pair Work: Think of a research problems in Industrial Psychology. List down at least 5.
Email to me.

ASSESSMENTS (Quiz / Exam)

Quiz will be announced and scheduled.