Self Learning Material INDUSTRIAL PSYCHOLOGY (MBA-963) Course: Master Business Administration Semester-II] Distance Education Programme LK. Gujral Punjab Technical University Jalandhar Sw Scanned with CamScanner ~~,Syllabus INDUSTRIAL PSYCHOLOGY (MB 963) Objective: The objective of the course is to acquaint the students about the psychology of the executives in the organization and then to use it to enhance the product Unit Introduction: Nature, Scope, and Problems; Brief history of industrial and organizational psychology. Individual differences and their evaluation, Role of heredity and environment, Types wlividual differences, Unit Psychological testing: Utility, Reliability, and Validity. Attitudes: Meaning, Characteristics, Methods of measuring attitudes, Implication for organization. Unit 1 Hawthome Studies: The studies and their implications Industrial Morale: Meaning, Characteristics, Factors that influence morale, Measures of improving morale. Unit IV Motivation: Meaning, Types, Applications; Job redesign, Work on incentives. Characteristics of the workplace: Physical working conditions: Noise, Illumination, Colour, Music, Miscellaneous tors; Work Schedules: Working Hours, Permanent Part-Time Employment, Flexible Work Schedules, Rest Pauses, and Shift Work; Psychological and Social Issues: Job Simplification, Boredom & Monotony, Fatigue, and Telecommuting. Note : Relevant Case Studies should be discussed in class, Suggested Readings: ‘Theoretical & Social Foundations) CBS 1. M.L, Blum &J, C, Naylor Industrial Psychology (ts 2. Ghosh, P. K. & Ghorpade, M.B. “Industrial Psychology Himalaya Publi 3. Miner, J.B. “Industrial-Organisation Psychology’ - Tata McGraw Hill ¢ Hall India 5. Dubrin “Applying Psychology: Industrial & Organisation Effectiveness’ Sth Prentice Hall India 4, Riggio ‘Industrial/Organisational Psychology’ 4th Prentis Scanned with CamScannerTable of Contents LesonNo[ Title — ~ 1 Introduction to Industrial Psychology: Nature, Scope & Problems 1 2 Organizational Psychology Brief History of Industrial and Organizational 4 Psychology "3° | Individual Differences, Heredity and Environment 32 4 Psychological Testing: Utility, Reliability and Vali SI 3 ‘Autitude: Meaning, Charaeteristies, Methods and Implication Ti 6 Hawthorne Studies 85 7 Industrial Morale: Meaning, Characteristics, Factors that Influence — 101 Morale, Measures of improving Morale oe Motivation: Meaning. Type, Application, Job Redesign & Work on ns) Incentives 9 Characteristies of the Workplace, Physical Working Conditions: Noise, 133 {Mlumination, Colour, Musie, Miscellaneous Factors 10 ‘Work Schedule: Working Hours, Permanent & Part Time Employment. 148) Flexible work Schedules, Rest pauses and shift work ul Psychological and Social Issues ~ 160 Dr. Rajesh Jhamb, Lecturer Government Polytechnic for Women, Sec-10D, Chandigarh Reviwed by: Dr. Ramandecp Kaur, Principal, Golden Institute of Management & Technology, Gurdaspur © IK Gujral Punjab Technical University Jalandhar All rights reserved with IK Gujral Punjab Technical University Jalandhar Scanned with CamScannerON 1 Introduction to Industrial Peychology: Nature, Scope & Problems Structure 1.1 Objectives 1.2 Introduction 1.3. Meaning of Industria Psychology 14 Nature of Industrial Psychology 15 Scope of Industrial Psychology 16 Challenges of Industral Psychology 1.7 Problems of Industrial Psychology 18 Summary 1.9 Glossary 1.10 Answer to Check Your Progress LIL References 1.12 Suggested Readings 1.13 Terminal and Model Question Ll OBJECTIVE! Afier reading this lesson, you will be able to: + understand the meaning of Industrial Psychology ‘Bring out the nature of Industrial Psychology * Explore the Scope of Industrial Psychology * Know the Problems occurs in Industrial Psychology 12 INTRODUCTION Psychology is to know and measures the change behavior of humans and other by learning, Motivation, Perceptions, Training, Emotions, effective leadership, Job satisfaction, work stress, work design ete, Industrial-Organizational Psychology includes various applications of methods, Principles, process as well as facts relating to the people in an organization. The Industrial/ Organization psychology assumed greater importance in the current scenario, Most of the great thinkers believe that Industrial/ Organization Psychologist are contribute a significant in solving the practical problems of the industry. The Industial/ Organization Psychologist stimulating Page 1 of 175 Scanned with CamScannerecting the res si es as well a Ky mecting he responsibilities as well as intellectual growth in the organization, Industral” nization Psychology is very much apply in business, industry, agencies, NGO's, firm ing with services and in the educational institutes Industrial Psychology began in the rly twenty century and growunder the impetus of World War | and II, but with the passage of time, A major change in industrial psychology came with the recognition of the influence of social and psychology factors on the behavior of the worker as demonstrated by Hawthome Studies of the 1920s and 1930s. Industrial Psychology is basically the applications of the methods, fa s, principles of the science of behavior and mental stress to people at work place. In the today scenario, where are the develop countries of the world, India also need to develop th industries on the modem ways and at global levels. The good employee-employer relations, democratic and participative leadership practices, less strike and lock-out leads to an atmosphere of positive working in the industrial process. The top ‘management and the other stakeholders of the industry are required to be best judge of the psychology of the manpower and required to at as a best in the industry. In the industrial environment, psychology is mainly practiced by the operational and middle level managers, but also by the psychologist employed by the management for the advice for the various level of employees, The development of industrial psychology others a great deal to Hugo Munsterberg's book, “Psychology and Industrial Efficiency’, which was published in 1913. He is regarded as the “Father of Industrial Psychology”. Industrial Psychology introduce the “Matching of employees to Jobs, for different job require different skills and abilities”. The behavior of the human being in an organization is very much important in the production and consumption of goods and rendering services to the various stakeholders of the society and industry, Industrial psychology is not only related with the manpower working in an industry or office but also with the marketing staff&other staff providing various kinds of services etc. Basically, it is the study of the pcople associated with manufacturing, services, trading, consultancy, formal and informal, large, medium and small level organization of govt. semi- xovt, private, domestic and global ete 1.3. MEANING OF INDUSTRIAL PSYCHOLOGY is a combination of two words ‘Industrial’ and The term ‘Industrial Psychology ‘Psychology’. Industrial is that part of social life whose function is to provide civilized people with the material goal that condition of life demand with the passive of time, Psychology is the science of behavior in relation to environment Page 2 of 175 Scanned with CamScannerIndustrial Psychology is a branch of psychology tha cess by improving the performan contributed an organizational and well beings of its employee, Its provide a foundation anderstanding the human elements of the workplace, Industrial Psychology Profession as well as science also. It is profession because it emphasis on the application of knowledge and insight and science because of emphasis on research, It is coneemed with the effective management of an industrial manpower working at different level and problems faced by ind rial manpower in a mechanized environment. Industrial Psychology is a specialist area t plies Psychology knowledge and skills to the workplace, with the proving organizational effectiveness and the quality of work life. According to Thomas W. Harrell Industrial “psychology may be defined as the study of people as individuals and in groups and of the relationship between individual and groups. Industrial Psychology currently known as Industrial ~ Organisational Psychology and basically assists organization in selecting manpower with a emphasis on how to maximize human capital. The honour for sparking the development of the field is usually given to walter Dill Scott, who was the first to apply psychology to advertising, employee selection and various roviding services to more than 40 major American Corporation specially in area of manpower election Phlum & Naylor (1968) define industrial Psychology as “The application or extension of Psychological facts and principles to the problems concerning human beings, operating within the context of business and industry”. Klive (1997) “Industrial ~ Organisational Psychologists are able to apply psychological 4 theories to explain and enhance the effectiveness of human behavior and cognition in the workplace.” 7 bee ars ae! 14 NATURE OF INDUSTRIAL PSYCHOLOGY eet we Industrial Psychology covers a large field of interest in va mei Work Psychology applies the findings and concept of physiological psychology, cognitive psychology and social psychology industrial psychology gained importance in India only after independence. Due to the development of large scale industries and need of maintaining good relations with the ‘employees, industrial psychology research was encouraged by the industrial houses. Industrial Psychology is related work the scientific structure of the organization and analyzing the features and conditions leads 10 wrease in productivity and quality of life of People at work. The focus of industrial psychology is basically on understanding the individual Page 3 of 175 Scanned with CamScannerior, experience 1M organization, It also take into account the development of team based pganization & strategies for designing and modifying the organizational structure in a flexible nner 90 that it will nt afi by the unfavorable work environment, ‘The workplace design, physical fatigue, stress, boredom, behavior, ergonomics as well as snteraction of man and machine is also done by Industrial/ Organization Psychologist up to a arcat extent. Industrial Psychology is basically use of the human resource for achieving greater industrial productivity. The industrial productivity is depends upon overall productivity of industry in spite of high quality material and inefYicient labour force Industrial’ Organization Psychology relies totally on qualitative as well as quantitative method of research which can be validate as well as stressed by different testing techniques. Most ofthe practicing Industrial/ Organization Psychologists are trained to use a large number of ical judgment to take empirical data as well as statistical techniques rather than based on cli certain crucial decisions in the organization. They are also involved in studying the various theories and practices in Human Resource Development i.e, Recruitment, Selection, Induction, Placement, Performance appraisal, Training & Development, Promotions & Transfers, Fringe benefits and so many other issues related with Human Resource. The Industrial/ Organization Psychologist also examine the various methods of developing the manpower in the organization by analyzing their job and obtained a complete picture of each and every employee. The monetary value of each employee is also calculated by the Industrial! Organization Psychologist. The another important factors that impart industrial psychology is the changing demographic make-up of the workforce, women are increasingly entering the workforce and nin the organization, The use of technology on-line taking the managerial and top level po: recruitment test, training by using e-leaming, etc. also emphasized the change in the nature of industrial psychology. The human relations approach is also emerging and controlled by social and physical factors & co-ordinate the factors of production for the maximum output at ‘minimum price. Activity 1 | Highlight the importance of following arcas of Industrial Psychology 1. Employment Psychology 2. Engineering Psychology Page 4 of 175 Scanned with CamScanner= 15 SCOPE OF INDUSTRIAL PSYCHOLOGY The Industrial Psychology focuses n the field of personnel testing, interviewing, attitude ‘management, learning theory, trai feature and monetary study, safety. job analysis and human engineering, The major applications of the knowledge and techniques of industrial psychology have been in the field of recruitment, testing for employment, Job replacement, promotion and training, The top management realized that “human resources are the most valuable assets that any organization possess and that, without there, other resources are useless”. The human relations movement was mainly coneemed with the informal, spontaneous bchavior of work groups and the sentiments and attitudes of employces. It also studies the mental health on the job and ways of helping back to mental health close people who have become upset and confused. The Industrial/ Organization Psychologist observe the different behavior of the employees working at a different positions in the different departments in a very exhaustive manner. They observe the behavior in a systematic conditions as well as well controlled manner ina department or a unit, They objectively record the performance of each and every concerned n be test and compare with the other employee working at different levels so that their ability persons to know the degree of intelligence among them. The scope of industrial psychology related with the entire process of management's dealing with the manpower of the industrial organization. It also emphasizes the scientific and research aspects of people at work. The areas of Industry Psychology are as follows: 1.5.1 Employment Psychology (a) Recruitment and Selection: The industrial psychology is very much helpful in recruiting & selecting the manpower in the industry. Psychologist can casily judge the proposed applicants by the way they handshake, with their eye-contacts, way of dressing, ete. The selection process is very compl the psychologist should understand the process in a detailed manner because deficiencies in abilities ofa person in comparison to his job specification leads toa complex problem of dissatisfaction both for the employer and employee. (b) Placement and Induction: To place the right person at the right place is one of the major concem in the organization. The Industrial’ Organization Page 5 of 175 Scanned with CamScannerPsychologists helps in this area and thus leads to greater degree of satisfaction for the new employees and also helps in the induction process of the new employees at the right time. (©) Promotion and Transfer: The drafting of proposal of promotion and transfer of the employees can be done in a very transparent manner by psychologist. The can easily understand the various issues and problems of the employees, Which can be taken into account for the transfer of the employees t0 the different locations, The Industrial/ Organization Psychologist also encourage promotion by taking into account the attitude. behavior. ego states as well as level of bearing stress among the employees. (d) Absenteeism and Turnover: The main and critical reasons of absentecism and turnover can only be know by the Industrial/ Organization Psychologist in Psychologist can reduce the rate cant level by taking into \e absenteeism and a deep manner. The Industrial/ Organization of absenteeism and rate of tumover up (0 si farious reasons. The reduction in th job satisfaction, etc. consideration the v tumover thus leads to more good organizational culture, (©) Employees ‘Training & Development: The Industrial’ Organization wolve the various employees in the training programmes, Psychologist try toi \ hich are based on certain inputs and parameters. The various parameters of ides, Training and Development programmes are very much based on the a thinking behavior, vision as well as dedication towards the organizat n. (0 Employee Performance: The continuous and periodic evaluation of the employees at the different level and in different department throughout the working carcer of the employces. The fixation of wage and salary incentives, job promotion, etc. is mainly done on the performance of the employees. The Industrial’ Organization Psychologist helps in understanding the various aspects in a very transparent and objectives manner, (g) Job Analysis: The Industrial/ Organization Psychologists also play an important role in job specitication, job enlargement, job design as well as job description, The whole of the job analysis is not only based on quantitative inputs of the different departments but also on the basis of requ ement, ate, psychology of the employees as Page 6 of 175 Scanned with CamScannerwell as of the top management, The Industrial’ Organization Psychologist, thus perform a critical role in job analysis in an organization. (h) Organizational Leadership: One of the greatest challenge in the Industrial manpower in the organization, which can only, be done by the effective leadership. The easily be catered by environment is recruitment & selection of the requisite xy as well as satisfaction of employees ca efficie n organization. The Industrial! Organization Psychologist in effective leaders concem in a great manner with the abilities, competencies of the leaders who The Industrial/ Organization believe in different leadership styles an appropriate style of Psychologist carefully choose as well as recommend organization. leadership for the partic 1 includes the study of the working environment of an includes scientific 1.5.2 Managerial Psychology organization both physical environment which also motion study, improvement in management, It cover all the aspeets of time study the existing work methods, reduction in fatigue, prevention of accidents at work place, The Hawthome studies are the perfect examples of a favourable psychological environment, group behavior, motivation and team work, :ngineering Psychology is the science of designing 1.5.3 Engineering Psychology and equipments for human use of engineering human engineering. machines hhines. In the today environments behavior for the efficient operation of the m: people work in modem industries and technolog; perfection and discipline. The people at work ensure that they carried out the work in a standard way for achieving the goals ofthe organization by design work which require a high degree of to achieving those goals, Tools equipment and work stations must be compatible with the workers who arc them, so that each make use of strengths of the other and if require, compensate for the shortcoming / weaknesses of others. Adapting the workers to the machine was accomplished through true and motion study part in which various activities and jobs are analyzed to of engineering psychology, ion of the tasks. determine the simpliti Consumer behavior has been interest to the industrial 154 Consumer Psychol psychologist since the beginning of the field. Consumer Psychology studies wioural_ observations, focus group, consumer behavior through surveys, bel Page 7 of 175 Scanned with CamScannerg the effectiveness of advertisement is done by questionnaire ete. and for knowi recognition, aided recall, physiological measures, sales tests, coupon retains Basically i was the study of consumer behavior that launched industrial psychology. John B. Watson, founder of the behaviorist school of psycholog; began to apply has idea about human bahaviour to problems of business world, arious fasters influence the consumer i.e. consumer psychology also study the Market place, advertising, a store atmosphere, parking space, ete. the personal factors that affect consumer behavior includes age, sex, education, socio- economic states ete are also part of the consumer psychology, also take into account the buying habits of the consumers. their brand the loyalty product pricing, product image, product packaging, trademarks etc. for analyzing and concerned decision relating to various marking policies consumer psychology consumer and organization, with the interaction betw Check your Progress A 1 Fillin the blanks (a) The perfect example of group behavior, motivation and team work is (o) is the science of designing engineering machines and equipments. (c) Absenteeism and tumover is part of Psychology (d) Consumer Psychology study consumer behavior through ete, o) \was the founder of behavior school of Psycholo; OF INDUSTRIAL! ORGANIZATION PSYCHOLOGY: The 1.6 CHALI rapidly changing conditions in the today’s scenario at the workplace has seems to be assumed greater importance in the organizations, The Technological advances. political environment, economic & business conditions, global factors, environmental issues, cultural & social impacts, religious factors, foreign relations, policy of the top management and nature of the competition also one of the important challenges for the Industrial’ Organization Psychologist for iplementing their practices and programs in the organization, Most of the organizations have large number of employees who prefer to work from home in the IT industry and basically work With the help of latest technology for gadgets and with teleconferencing, They are rarely meet with their counterparts in the organization, So, this is one of the most crucial challenge of the Industrial/ Organization Psychologist in the today era's, Page 8 of 175 Scanned with CamScannerThe long term loyalty & commitment is also fading day by day or only relevant with the story of 20" century. Most of the people in the organization try to become more flexible, free lancer, believe in independence and shifling one to another job in a very frequent manner, On the sa the management is also believe in part time and seasonal labor, frequent lay off. vice-v 1 manner, shutdown as well as plants closures is a downsizing the employee ratio in signifi challenge which required lot of efforts, mental exercise and strategies to convince both the parties to work ina cordial manner. ‘The another challenge for Industrial/ Organization Psychologist is involvement of the workers atthe different levels inthe organization. The nature of ercation of new jobs as well as in the today’s environment. Employees of different existing jobs is changing drastically i lenges in their work environment, So the x revolutionary and difficult chal categories are fac Industrial/ Organization Psychologist should create the various master of their task in the different scenario’s and also able to perform th avenues so that workers should 1e various duties in the challenging conditions. The changing workplace conditions as well ‘a another challenge for the Industrial’ Organization Psychologist in selection, tra ‘as the composition of the work force pose ing, redesigning of the jobs, replacement of the equipments, refining the management policies & programmes, raising the morale of the employees, dealing with the ethical principles in the “organization as well as various health and safety measures in the organization. PROBLEMS OF INDUSTRIAL PSYCHOLOGY 17 as well as circumstances which leads to There is large number of issues, problems disruption in day-to-day life in an organization. The Industrial Psychology up to a great extent succeed in dealing with the various issues but still it has certain problems, the degree of which ion, from time to time and from place to place. The varies from organization to organi following are some of the problems of the Industrial Psychology: Lack of Consistency: Industry Psychology is basically based on some research design & primary as well as secondary data is used for the analysis of data but sometimes inadequate collection of data leads to inconsistency and results may not be accurate as it could be and thus the whole of research is become waste exercise, RIAL/ ORGANIZATIONPsychologist sometimes design the Poor Design: The INDUS remedies inappropriate manner by ignoring certain important aspects. So, Poor design of an object sometimes leads to accident. A disastrous situation occurred at a nuclear power plant at Page 9 of 175 Scanned with CamScannerjert during the wide Island, Pey Ke Island, Pennsylvania, USA during the night shift when operators were less their shift id Leads to disaster, Cannot Applied to all behaviors The invitation of industrial psychology is that research methods cannot be applied to every problem, There is always a limit to what people should be Jblem has to be tackle in a different manner. asked to take in the interest of research, so every pro alt with different solution, which is indeed a So. every issue in the organization should have d very complex task. Artificial Settings:In the industrial psychology, most ofthe studies an done in a artificial low to disrupt the working settings of the situation because management sometimes may not all snment so, sometimes simulated environment thus leads the researcher to simulate the job envi dings of the study or correct solutions to or artificial job environment may not gives the exact fin the problems. Changing Technology: The another major problem ~ of industrial psychology is fast changing technology. The test and analysis which are applied in the today environment are WY soon outdated with the rapid changes in technology so, there is a continuous need of research in the various areas, which is sometimes not possible due to lack of resources or limited resources. ners: The another major issues in the industrial Immature or Fraudulent Practi psychology is availability of immature or fraudulent pra who has little knowledge of psychological issues and problems are providing emotional disturb and titioners in the society. Most of practitioners, unreliable and immature consultancy and services to the people who are sick and require genuine remedies for their problems. Resistance to adopt New Ideas/ Remedies: Most of the Psychologist who are working in the Industrial Organization are remain loyal to their own traditional & comfortable practices. ‘They are unwilling to adopt and practice new ideas which are very much relevant to prevailing situation in the industry. So, the actual problems of the society! industrial is somehow not solve by the industrial psychologist in the full manner. So, if the findings of the industrial psychologist has any positive or negative impact on the workers and organization, they must take into account the workers, managers, owners as well as stakeholders of the organization. Activity 2 'sychology and Managerial Psychology Page 10 of 175 Scanned with CamScanner18 SUMMARY ‘The industrial psychology is working great progress in India but the progress made here cannot be compared with that in Europe and USA. The main aims of industrial psychology is to build the job-related skills and large areas of an individual behavior. Industrial Psychology includes work psychology, cognitive psychology, social psychology, engineering psychology. consumer psychology etc. in the today's changing world, Industrial psychology also encourage research in the universities and the other institutes of higher learning,thus leads to optimum utilization of various resources of the organizations as well as industry. cientifie method to solve the problems in the industry & Individual psychology apply the determine what qualities and skills to search for in the potential employees. They are creating standardize test, conduct tests and interpret their results for the remedy of a problem. The scope of industrial psychology is as wider as scope of human resource development and dealing with sment dealing with the manpower at the various levels. es which leads to increase in 5. process of manag all the questio So, industry psychology is sum total of all the acti productivity, morale of the employer, increasing competencies of employees, continuous performance evaluation and build a positive attitude of employees through motivation and good working conditions in an organization Cheek your Progress B- Ml, True/ False buying habits behavior ete ( ) (1) Consumer Psychology deals (2) Industrial Psychology examine stress at workplace ( ) (3) Solving the practical problems of workplace is known as Industrial Psychology ( ) (4) Interview helps in selected job ini umbents ( ) 1.9 GLOSSARY Industrial Psychology: A. study applying psychological principles for solving the practical problems encountered in working environment, Page 11 of 175 Scanned with CamScanner