Chapter One

Faculty of Economics
Subject Name:
Industrial/Organizational
Psychology
Prepared by: Arshid Jan

Industrial/Organizational Psychology
Chapter One
Introduction to
Psychology
Industrial/Organizational Psychology
Chapter One
Intro to Ind/Org Psychology
Introduction to Indus/Org
Psychology
By the End of this chapter, you will be able to:
Understand Industrial Psychology and its emergence as an independent field of science.
Know the historical developments which resulted in the present from of industrial psychology.
Appreciate the importance of Industrial Psychology and learn about its scope.
Acquaint yourself with the careers in industrial psychology to pursue it as a career in future.
Chapter One
Psychology Intro to Ind/Org Psychology
What is Industry?
Principles of
“Industry means any systematic activity carried on by cooperation between an employer
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and his workmen for the production, supply or distribution of goods and services with a
view to satisfy human wants or wishes.” Thus, industry is a type of economic activity
producing Goods or Services.
OR
Industry is a group of productive enterprises or organizations that produce or supply

goods, services, or sources of income.
Psychology…?
Psychology is defined as the science of behavior in relation to

environment.
or
Psychology is the science of behavior and mind.
or
 Psychology is the scientific study of human mind and its functions,
especially those affecting behavior in a given context.
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Principles of
Industrial
MarketingPsychology:
Industrial Psychology is a branch of psychology that
applies principles of psychology to the workplace, to
explain and enhance the effectiveness of human behavior
and cognition in the workplace
Chapter One
Industrial Psychology…?
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Industrial Psychology is the systematic study of the behavior of the people at work. It studies how
the social, industrial, economic, political and other factors affect the behavior of people at work.
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 group”
According to C.S. Myres:

“The aim of industrial psychology is primarily not to obtain greater production or output but to
give the worker greater ease at his/her work”
Industrial Versus Organizational Psychology
Industrial Psychology tends to focus on hiring, training
and development, assessing employee performance,
and legal issues associated with those issues.
Organizational Psychology tends to focus on
motivation, team work and leadership
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Chapter One
Concept of Industrial /Organizational Psychology

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Two basic concepts are used in industrial psychology e.g.
i. Individual Difference:
Industrial Psychology assumes that every individual is different. Each individual has his own characteristics such
as intelligence, attitude, physical, strength, skills etc. These differences make the work of industrial psychology
difficult as different behaviors results in different on the job behavior, thus different methods to control it to
direct it towards productivity. Furthermore, it also calls for identifying these factors of individual differences so
that proper selection, placement and training techniques could be developed.
ii. Causation of Behavior:

Industrial Psychology assumes that behind every human behavior there is a cause or a reason. Thus, it strives at
finding the cause for a particular behavior and then changing the cause to change the behavior of the employee
in favor of the organization.
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Chapter One
Characteristics of Industrial/Org Psychology

Principles of
There are four major characteristics of Industrial / Organizational Psychology
1. Systematic Study Marketing
2. Human Engineering
3. Research
4. Applied / Functional
1. Systematic Study:
Industrial psychology is the systematic study of human behavior concerned with collecting the information
regarding human behavior at work. Focusing on the different factors which affect the work of an individual
either they are personal or related to working conditions.
2. Human Engineering:
It studies the varied methods of performing manual operations for the better utilization and the least waste
of efforts through human engineering.
Chapter One
Characteristics of Industrial/Org Psychology…cont.

Principles of
There are four major characteristics of Industrial / Organizational Psychology:
1. Systematic Study Marketing
2. Human Engineering
3. Research
4. Applied / Functional
3. Research:
Industrial psychology is not concerned with administration as administration is a part of the
research. Whatever information gathered from the work should be implemented and the
personnel administration is the application of such research.
4. Functional/Applied:
Industrial Psychology is termed applied and functional because It is concerned with the application
of information about human behavior to the various problems of industrial human life.
Chapter One
Principles of
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Chapter One
ScopePrinciples of
of Industrial Psychology
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1.Scientific Selection of Workers
Industrial psychology offers a whole arrangement of tests such as systematic depth interviews
and psychological tests of intelligence, aptitude, skills, abilities, interests and the personnel
characteristic etc. By these tests candidates are measured and properly selected and placed on
the job.
2. Proper Division of Work

One of the scopes of industrial psychology is the work should be properly divided according
to the abilities, skills and aptitude of the workers so they may feel comfortable and satisfied. It
may also lead to higher production.
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Principles of
Scope of Indus/Org Psychology …cont.
Marketing
3. Minimizing the Wastage of Human Efforts :
Industrial psychology tries to minimize the wastage of human power. It studies psychological factors causing
fatigue or accident and give feasible suggestions to prevent them. The techniques of motivation and morale
are used for this purpose.
4. Promoting labor welfare

It promotes the welfare of the labor by introducing adequate working environment through which job
satisfaction, work efficiency increases and also state the provisions of higher incentives.
Chapter One
Scope of Indus/Org Psychology …cont.

5. Enhancement of human relations
Human relations are the relation among individuals in an organization and the group behavior that
emerge from their relations. Most of the problems that arise in the industries are connected to human
relation. If workers' feel at ease with the surrounding then automatically they get motivated and
productivity will be higher. Industrial psychology has made significant contribution in framing the
techniques of leadership, worker participation and communication etc.
6. Developing industrial relations

Industrial psychology studies the attitude of the employer and employees. Individuals differ from each
others in their thoughts, thinking, behavior and other parameters. Therefore, different measures may be
adopted in solving the problem relating to each individual like transfers, promotions, grievances etc. This
helps in developing industrial relationship among workers' and management
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Principles Psychology
Scope of Indus/Org of …cont.
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7. Increase production
It helps in attaining the major objective of the organization that to get the best
output from the existing resources. The production is automatically increased if
proper selection is made, the work will be properly distributed, accident
prevention and safety measures suggested. This will improve and promote
individual as well as industrial relations..
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HISTORICAL DEVELOPMENT OF INDUSTRIAL PSYCHOLOGY…

Principles of
Psychology was formally established as a science in 1879 when William Wundt established the first
psychology
Marketing
laboratory. Soon after the establishment of this laboratory, industrial / organizational
psychology was established.
Hugo Munsterberg, considered by many as “Father of Industrial Psychology”, pioneered the application
of psychological findings form laboratory experiments to practical matters.
In 1911, he cautioned managers to be concerned with all the questions of the mind…like fatigue,
monotony, interest, learning, work satisfaction and rewards.
He was also the first to encourage the government funded research in the area of Industrial Psychology
In 1913, his book Psychology and Industrial Efficiency addressed such things as personnel selection and
equipment design.
Hugo Munsterberg’s early I/O psychology became influential well into the 1950s. It assumed that people
need to fit into the organization, thus applied behavioral sciences largely consisted of helping organizations
shape people to serve as replacement parts for organizational machines.
Fredrick W. Taylor began publishing similar philosophies on management which had a tremendous impact
on organizational management.
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Principles of
HISTORICAL DEVELOPMENT OF INDUSTRIAL PSYCHOLOGY
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Bryan & Harter (1897) published a first paper describing the study and application of
psychology to work activities (Morse code telegraphic) coined the term “industrial psychology”
during the First and Second World War when various industrial organizations and plants faced a
number of problems related to production, efficiency and individual employees, the help of
industrial psychologist are in great demand since then. At this stage, industrial psychology
received a special status, although it began in America in 1901, and England soon after.
Chapter One
Principles of
HISTORICAL DEVELOPMENT OF INDUSTRIAL PSYCHOLOGY…
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The first book, “The Psychology of Industrial Efficiency”, Hugo Munsterberg in 1913 was
dealing with various problems faced by the industries and analysis of such problem from the
psychological point of view. In 1925, social psychology of industry entered into the arena of
industrial psychology therefore, interpersonal and intrapersonal relationships, theories of
motivations, importance of communication and other associated areas were investigated.
Chapter One
Principles
Assignment ofNo 1:
Marketing
Write an article on
‘Characteristics and Scope of Industrial
Psychology’
Make sure to follow the following instructions:
• Minimum words limit is 1000
• Article must be hand written
•The article must be handed over in one week
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Thank you all for your patience…

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Faculty of Economics

Prepared by: Arshid Jan

Industry is a group of productive enterprises or organizations that produce or supply

Psychology is defined as the science of behavior in relation to

According to Thomas W. Harrell:

According to C.S. Myres:

Concept of Industrial /Organizational Psychology

ii. Causation of Behavior:

Characteristics of Industrial/Org Psychology

Characteristics of Industrial/Org Psychology…cont.

2. Proper Division of Work

4. Promoting labor welfare

Scope of Indus/Org Psychology …cont.

6. Developing industrial relations

HISTORICAL DEVELOPMENT OF INDUSTRIAL PSYCHOLOGY…

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