Industrial/organizational (I/O) psychology aims to enhance workplace performance and employee well-being by applying psychological principles. I/O psychology focuses on selecting and training employees, as well as creating motivating work environments and organizational structures. The field began in the early 20th century and grew with studies like the Hawthorne experiments. I/O psychology now addresses diverse, global, aging, and technologically-changing workforces.
Industrial/organizational (I/O) psychology aims to enhance workplace performance and employee well-being by applying psychological principles. I/O psychology focuses on selecting and training employees, as well as creating motivating work environments and organizational structures. The field began in the early 20th century and grew with studies like the Hawthorne experiments. I/O psychology now addresses diverse, global, aging, and technologically-changing workforces.
Industrial/organizational (I/O) psychology aims to enhance workplace performance and employee well-being by applying psychological principles. I/O psychology focuses on selecting and training employees, as well as creating motivating work environments and organizational structures. The field began in the early 20th century and grew with studies like the Hawthorne experiments. I/O psychology now addresses diverse, global, aging, and technologically-changing workforces.
Industrial/organizational (I/O) psychology aims to enhance workplace performance and employee well-being by applying psychological principles. I/O psychology focuses on selecting and training employees, as well as creating motivating work environments and organizational structures. The field began in the early 20th century and grew with studies like the Hawthorne experiments. I/O psychology now addresses diverse, global, aging, and technologically-changing workforces.
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Business Psychology
Dr. Md. Nasim Adnan
Introduction • Wouldn’t it be wonderful if all employees loved their jobs so much that they couldn’t wait to get to work and were so well suited and trained that their performances were outstanding? • This is one of the main goals of business (industrial) psychology. • Unfortunately, not every employee will enjoy his or her job, and not every employee will do well on a job. • Here, you will learn the techniques developed by Industrial/ Organizational (I/O) psychologists that show the way toward the goal of a happy and productive workforce. The Field of I/O Psychology • Industrial/organizational psychology is a branch of psychology that applies the principles of psychology to the workplace. • The purpose of I/O psychology is “to enhance the dignity and performance of human beings, and the organizations they work in, by advancing the science and knowledge of human behavior” (Rucci, 2008). • I/O psychology relies extensively on research, quantitative methods, and testing techniques. I/O psychologists are trained to use empirical data and statistics rather than clinical judgment to make decisions. The Field of I/O Psychology • I/O psychologists are not clinical psychologists who happen to be in industry, and they do not conduct therapy for workers. • There are psychologists who work for organizations and help employees with such problems as drug and alcohol abuse, but these are counselors rather than I/O psychologists. • A factor that helps differentiate I/O psychology from other fields of psychology is the reliance on the scientist-practitioner model. That is, I/O psychologists act as scientists when they conduct research and as practitioners when they work with actual organizations. • In addition, I/O psychologists act as scientist-practitioners when they apply research findings so that the work they perform with organizations will be of high quality and enhance an organization’s effectiveness. The Field of I/O Psychology • One reason that I/O psychology continually increases in popularity is that, perhaps more than any other field, professionals in the field can have a positive impact on the lives of other people. To support this last statement, let us look at a typical day in the life of a typical person: The Field of I/O Psychology • With the possible exception of sleeping, people spend more time at their jobs than at any other activity in life (and sometimes these two activities overlap!). • Thus, it makes sense that people who are happy with and productive at their jobs will lead more fulfilling lives than people unhappy with their jobs. • If a person is unhappy at work for 8 hours a day, the residual effects of this unhappiness will affect the quality of that person’s family and leisure life as well. Major Fields of I/O Psychology • Though the goal of I/O psychology is to increase the productivity and well- being of employees, there are two approaches to how this can be accomplished. • The industrial approach (the “I” in I/O psychology) 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. • The organizational approach (the “O” in I/O psychology) 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. Brief History of I/O Psychology • Although various experts disagree about the precise beginning of I/O psychology, it is generally thought to have started in 1903 when Walter Dill Scott wrote The Theory of Advertising, in which psychology was first applied to business. • I/O psychology made its first big impact during World War I. Because of the large number of soldiers who had to be assigned to various units within the armed forces, I/O psychologists were employed to test recruits and then place them in appropriate positions. • The testing was accomplished mainly through the Army Alpha and Army Beta tests of mental ability. The Alpha test was used for recruits who could read and the Beta test for recruits who could not read. • The more intelligent recruits were assigned to officer training, and the less intelligent to the infantry. Brief History of I/O Psychology • In the 1930s, I/O psychology greatly expanded its scope. Until then, it had been involved primarily in personnel issues such as the selection and placement of employees. • However, in the 1930s, when the findings from the famous Hawthorne studies were published, psychologists became more involved in the quality of the work environment, as well as the attitudes of employees. • The Hawthorne studies, conducted at the Hawthorne plant of the Western Electric Company in the Chicago area, demonstrated that employee behavior was complex and that the interpersonal interactions between managers and employees played a tremendous role in employee behavior. • The Hawthorne studies were initially designed to investigate such issues as the effects of lighting levels, work schedules, wages, temperature, and rest breaks on employee performance. Brief History of I/O Psychology • Much to the surprise of the researchers, the actual work conditions did not affect productivity in the predicted manner. That is, there were times when productivity improved after work conditions were made worse, and times when productivity decreased after work conditions were made better. • After interviewing employees and studying the matter further, the researchers realized that employees changed their behavior and became more productive because they were being studied and received attention from their managers, a condition that is now commonly referred to as the Hawthorne effect. • Perhaps the major contribution of the Hawthorne studies was that it inspired psychologists to increase their focus on human relations in the workplace and to explore the effects of employee attitudes. Brief History of I/O Psychology • The 1960s were characterized by the passage of several major pieces of civil rights legislation. • These laws focused the attention of HR professionals on developing fair selection techniques. As a result, the need for I/O psychologists greatly increased. • The 1970s brought great strides in the understanding of many organizational psychology issues that involved employee satisfaction and motivation. The decade also saw the development of many theories about employee behavior in organizations. Brief History of I/O Psychology • The 1980s and 1990s brought four major changes to I/O psychology. The first involved an increased use of fairly sophisticated statistical techniques and methods of analysis. • A second change concerned a new interest in the application of cognitive psychology to industry. • The third change was the increased interest in the effects of work on family life and leisure activities. Though stress had long been of interest to psychologists, it was during the last two decades of the twentieth century that employee stress—especially stress resulting in workplace violence—received attention. Brief History of I/O Psychology • The final major change in the 1980s and 1990s came about when I/O psychologists took a renewed interest in developing methods to select employees. • In the 1980s and 1990s, the courts were still interpreting the major civil rights acts of the early 1960s, with the result that I/O psychologists took a cautious approach in selecting employees. (diversity) • Other changes during the 1980s and 1990s that had significant effects on I/O psychology included massive organizational downsizing, greater concern for gender issues, an aging workforce, increased concern about the effects of stress, and the increased emphasis on organizational development interventions, reengineering, and employee empowerment. Brief History of I/O Psychology • Another important factor that will impact I/O psychology is the changing demographic make-up of the workforce: Women are increasingly entering the workforce and taking on managerial roles; Hispanics and Latinos are now the largest minority group in the United States; Asian Americans are the fastest growing segment of the U.S. population; and an increasing number of workers, vendors, and customers have English as their second language. • Such issues will continue to be an important factor in the workplace. Brief History of I/O Psychology • The global economy will also affect the role of I/O psychology. As many manufacturing jobs are shifted to developing countries with lower wages, there will be an increased emphasis on jobs requiring human relations skills. • As an increasing number of employees work in other countries (as expatriates) and as rates of immigration (both legal and illegal) increase, efforts must keep pace to understand various cultures, and training must be conducted so that employees and managers can successfully work not only in other countries, but at home with expatriates from other countries. Brief History of I/O Psychology • Other factors that will impact I/O psychology include movements toward flexible work schedules, working from home, family-friendly work policies, accommodation of an increasing number of employees with child-care and elder-care responsibilities, flatter organizational structures with fewer management levels, population shifts from urban to suburban locations, and increasing costs of health-care benefits. • In addition, potential changes in the retirement age for Social Security may result in employees working into their late sixties.