Jahan University

Vice Chancellor office

Economic faculty
HR Department

Psychology
Semester: 5th

Lecture: 5

Prepare by: Curriculum Committee

year: 1402

1
Industrial and organizational psychology
 

• Much of I-O psychology deals with issues of measurement and

evaluation. Appraising the performance of employees receives a great
deal of attention from I-O psychologists.
• Performance evaluations tend to be a process that neither employees
nor managers enjoy. Although I-O psychologists don’t necessarily
make the process fun, they design systems to make the process as fair
and efficient as possible.

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• The Two Side of I/O Psychology
• You can think of industrial organizational psychology as having two
major sides. First, there is the industrial side, which involves looking at
how to best match individuals to specific job roles. This segment of I/O
psychology is also sometimes referred to as personnel psychology.
• People who work in this area might assess employee characteristics and
then match these individuals to jobs in which they are likely to perform
well. Other functions that fall on the industrial side of I/O psychology
include training employees, developing job performance standards, and
measuring job performance.

3
• While industrial organizational psychology is an applied field, basic theoretical
research is also essential. With roots in experimental psychology, I/O psychology
has a number of different sub-areas such as human-computer interaction,
personnel psychology, and human factors.
• 
• Six Key Areas of I/O Psychology
• According to Muchinsky (2000), most industrial organizational psychologists work
in one of six major subject areas
• Munchinsky, P. M. (2000). Psychology applied to work: An introduction to
industrial and organizational psychology(6th ed.). Belmont, CA: Wadsworth
4
Cont…
• Training and development: Professional in this area often determine what type of skills are necessary
to perform specific jobs as well as develop and evaluate employee training programs.
• Employee Selection: This area involves developing employee selection assessments, such as screening
tests to determine if job applicants are qualified for a particular position.
• Ergonomics: The field of ergonomics involves designing procedures and equipment designed to
maximize performance and minimize injury.
• 
• Performance Management: I/O psychologists who work in this area develop assessments and
techniques to determine if employees are doing their jobs well.
• Work Life: This area focuses on improving employee satisfaction and maximizing the productivity of
the workforce. I/O psychologists in this area might work to find ways to make jobs more rewarding or
design programs that improve the quality of life in the workplace.
• Organizational Development: I/O psychologists who work in this area help improve organizations,
often through increasing profits, redesigning products, and improving the organizational structure.

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Who Should Study Industrial Organizational
Psychology?
• Students who are interested in applying psychological principles to real-world setting
should consider industrial organizational psychology. If you have a strong interest in
psychology as well as related subjects such as product design, computers, statistics,
engineering and business this may be the ideal field for you.
• Major Topics in Industrial Organizational Psychology
• Product design
• Employee testing
• Leadership
• Workplace diversity
• Workplace performance
• Employee motivation
• Job analysis
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• Consumer Psychology
• Are you interested in why and how people buy some products and
not others? Have you ever wondered how media messages influence
a shopper’s buying choices? If so, then you might be interested in the
growing field known as consumer psychology.

• Consumer psychology is a specialty area that studies how our

thoughts, beliefs, feelings and perceptions influence how people buy
and relate to goods and services

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• An Overview of Consumer Psychology
• According to the Society for Consumer Psychology, division 23 of the American Psychological
Association, consumer psychology “employs theoretical psychological approaches to understanding
consumers.” This field is often considered a sub-specialty of industrial-organizational psychology
 and is also known as the psychology of consumer behavior or the psychology of marketing.
• Consumer psychologists study a variety of topics including:
• How consumers choose businesses, products and services
• The thought processes and emotions behind consumer decisions
• How environmental variables such as friends, family, media and culture influence buying decisions
• What motivates people to choose one product over another
• How personal factors and individual difference affect people’s buying choices
• What marketers can do to effectively reach out to their target customers

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• What Do Consumer Psychologists Do?
• Because businesses need to understand their consumers in order to
develop products and marketing campaigns that appeal to their target
audience, consumer psychologists often spend a great deal of time
learning more about what makes shoppers tick.
• This often involves first figuring out the target audience for a particular
product including the gender, age and socioeconomic status of the
typical shopper.
• Next, the consumer psychologist might begin researching the types of
products and marketing messages that appeal to these types of buyers.
9
• How to Set Employee Performance Standards
•  To create employee work performance standards, first determine the average
performance levels. Use this as a minimum standard. Make long-term goals and
establish a mentoring system. How to Set Employee Performance Standards
• Employment
• 
• Employment is a relationship between two parties, usually based on a contract,
one being the employer and the other being the employee. An employee
contributes labor and expertise.
• Online resources indicate that the overall national base salary for U.S. citizens
was projected to rise from 2.38 percent to 2.86 percent in 2010 and 2011.
10
• What Is Business Psychology?
•  The main thing about Business Psychology is how managers can have a productive team in a
productive environment. It is helping managers know how to make this happen in a positive
way. “Business Psychology is the study and practice of improving working life.
• It combines an understanding of the science of human behavior with experience of the world
of work to attain effective and sustainable performance for both individuals and
organizations”
• Applied Science
• Business Psychology is an applied science that investigates how to make people and
organisations more effective.
•  It uses social scientific research methods to study people, workplaces and organizations in
order to better align their multiple and sometimes competing needs. Its goal is to create
healthy and productive relationships between people and organisations for mutual benefit.

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• Areas of Business Psychology
• Business Psychology can be applied to almost any people issue at work. Nonetheless,
there are several well established domains of Business Psychology. These include:
• Selection and Assessment
• Organisational development
• Coaching
• OD
• Leadership development
• Learning and development
• Talent management
• Employee engagement
• Safe and user-friendly work environments
• Performance management and appraisal
• Cultur
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Understanding Social Psychology?

• What is normal behavior? Normal behavior differs from one person to the next. It may be normal
for one person to talk to themselves while another person finds this abnormal.   To me, normal
behavior is dealing with each day as it comes.
• Most people have a routine they follow.   This could be going to work and being productive, staying
home doing chores, or in school learning new things. Normality is an individual preference. 
• If a person does not agree with something it does not make it wrong. Society, on the other hand,
has its own idea of normal behavior. It was once considered abnormal for people of color to marry
Caucasians, or two people of the same gender getting married. Over time things and ideas change,
what was once considered abnormal is now accepted.

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• Why is Social Psychology Important to us?
• In studying how people act in certain situations, we can better
understand how stereotypes are formed, why racism and sexism exist,
how a person can seem like an entirely different person in different
situations, and even how people fall in love.
• (Social psychology can't explain all of our social problems, of course.
There are always different ways to explain a social phenomenon.)

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• Self-perception
• There are many important factors in how one perceives oneself. One
is self-esteem,a person's positive and negative evaluations of his or
her self. People who have low self-esteem can get caught in cycles of
self-defeating behavior, leading to depression or other mental
disorders.

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• Social Influences
• Aggression
• Aside from unjust court verdicts, hot weather can contribute to aggression, as well as
lack of personal space (crowded cities), and smog. Other more significant factors include
viewing aggressive behavior or pornographic material, frustration, and highly arousing
stimuli.
• Altruism: So when do people help? Aside from self-interest, empathy has been found to
be a major factor in influencing altruistic behavior in people.
• Social Interaction
•  Processes: When in a group discussion or debate with similar but not identical opinions,
people's beliefs, whether they are moderate or not, become more extreme. (Ever had a
discussion with an extremely conservative person and felt like you were a radical liberal?)

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 Practical Work
• Case Study

• Cases will distribute for students