Introduction to I/O Psychology:

The field of I/O psychology - a branch of psychology that applies the principles of psychology in the
workplace.

1. Principles of learning - used to develop training programs and incentive plans

2. Principles of social psychology - form work groups and understand employee conflict

3. Principles of motivation and emotion- motivate and satisfy employees

Purpose: “to enhance the dignity and performance of human beings, and the organizations they work in,
by advancing the science and knowledge of human behavior”

Examines factors that affect the people in an organization

Relies extensively on research, quantitative methods, and testing techniques

• Main difference between IO Psychology and business fields is that IO psych focus almost
exclusively on issues involving the people in the organization. Business (MBA) programs examine
such

• Areas as accounting, economics, and marketing. The most efficient way to make profit in the
company

• - I/O psychologists are trained to use empirical data and statistics rather than intuition to make
decisions.

Major Fields of I/O Psychology:

There are two approaches that can be used to meet the goal of I/O psychology in increasing the
productivity and well-being of the employees - (I/O)

The “I” in I/O Psychology (Industrial Approach)

• focuses on determining the competencies needed to perform a job

• staffing the organization with employees who have those competencies
• increasing those competencies through training

The “O” in I/O Psychology (Organizational Approach)

• Creates an organizational structure and culture that will motivate employees to perform well,
• Give them with the necessary information to do their jobs
• Provide working conditions that are safe and result in an enjoyable and satisfying work
• Social Identity Theory In Psychology (Tajfel & Turner, 1979) Individuals derive a portion of their
self-concept from their membership in social groups.
The theory seeks to explain the cognitive processes and social conditions underlying intergroup
behaviors
Social identity groups can give you a sense of:

• Belonging: Being part of a group can instill feelings of connection and unity, giving individuals
the comforting sense that they’re not alone in their experiences or perspectives.
• Purpose: Group affiliations often come with shared goals or missions, which can provide
direction and purpose to individual members.
• Self-worth: Affiliating with a group can boost self-esteem as individuals derive pride from group
achievements and a positive group image.
• Identity: Groups provide a framework to understand oneself in the context of a larger
community. They can help define who you are based on shared attributes, values, or goals.

PERSONNEL PSYCHOLOGY: Concentrates on the selection and evaluation of employees

Professionals working in these areas choose existing tests or create new ones that can be used to select
and promote employees. These tests are then constantly evaluated to ensure that they are both fair and
valid.

Areas:

• Analyzing jobs - analyze jobs to obtain a complete picture of what each employee does, often
assigning monetary values to each position
• Selecting employees - involves the process of identifying, assessing, and choosing the most
suitable candidates for specific job positions. (The right person for the right job)
• Training employees - Involved in activities such as identifying the organization’s training needs,
developing training programs, and evaluating training success.
• Recruiting applicants - actively seeking and attracting potential candidates to apply for job
openings within the organization.
• Determining salary levels - involves establishing the compensation structure for different
positions within the organization. This process includes conducting salary surveys, considering
market trends, and aligning compensation with the skills, experience, and responsibilities
associated with each position.
• Evaluating employee performance - After obtaining complete job descriptions, professionals in
personnel psychology construct performance-appraisal instruments to evaluate employee
performance.

Organizational Psychology: Investigates the behavior of employees within the context of an

organization

PSYCHOLOGISTS:

• Concerned with the issues of leadership, job satisfaction, employee motivation, organizational
communication, conflict management, organizational change, and group processes within an
organization.
• Organizational psychologists often conduct surveys of employee attitudes to get ideas about
what employees believe are an organization’s strengths and weaknesses. Usually serving in the
role of a consultant. They are the one who makes recommendations on ways problem areas can
be improved.
HUMAN FACTORS/ERGONOMICS: Concentrate on workplace design, human machine interaction,
ergonomics, and physical fatigue and stress

These psychologists frequently work with engineers and other technical professionals to make the
workplace safer and more efficient.

example activities: designing the most comfortable chair.

BRIEF HISTORY OF I/O PSYCHOLOGY

• 1903: Walter Dill Scott wrote The Theory of Advertising

The psychology was first applied in business; focuses on building empathy towards a product or
service to help you become more inclined to buy or use it.
• 1910: Hugo Münsterberg wrote Psychology and Industrial Efficiency; published in 1913
• Seldom used the term "industrial psychology" prior to WWI the following terms were most
common used "economic psychology", "business psychology", "employment psychology"
• World War I: Army Alpha and Army Beta: Large number of soldier who had to be assigned in
various units. Alpha test: used for recruits who could read Beta Test: for recruits who could not
read
• I/O psychologists were employed to test recruits and then place them in appropriate positions.
• Early 1900S: Frank Gilbreth and Lillian Moller Gilbreth - most interesting figures
• 1930s: Hawthorne studies at the Hawthorne plant of the Western Electric Company; initially
designed to investigate such issues as the effects of lighting levels, work schedules, wages,
temperature, and rest breaks on employee performance.\

Hugo Munsterberg: Psychology and Industrial Efficiency

Münsterberg’s research was summarized in “Psychology and Industrial Efficiency” (1913). In the book,
he suggests that hiring workers with personalities and mental abilities that are best suited to certain
types of work would be the best way to increase motivation, performance, and retention in the
workplace.

Frank and Lillian Gilbreth Time and Motion Studies

The management theory of Frank and Lillian Gilbreth: They prioritized finding a method of optimization
that would boost profits without sacrificing the health, safety or well-being of workers.

1. Reduce the number of motions in a task.

When working as a bricklayer, Frank would find the “one best way” to do each task required for his work

2. Focus on the incremental study of motions and time.

As engineers, Frank and Lillian closely studied motion and time to calculate the most efficient way to
complete a given task.

3. Increase efficiency to increase profit and worker satisfaction.

fundamentally that happy, healthy workers were vital to an efficient, successful workplace.
Hawthorne Effect:

Employees changed their behavior and became more productive because they were being studied and
received attention from their managers.

WHAT IS ETHICS?

Refers to the rules provided by an external source, such as a code of conduct in the workplace.

ETHICAL DILEMMAS

Are ambiguous situations that require personal judgment of what is right and wrong because there are
no rules, policies, or laws guiding such decisions.

Examples:

Whistleblowing: Discovering unethical practices within your organization and deciding whether to
report them, knowing it may jeopardize your career.

Honesty in Business: Facing a situation where disclosing the complete truth may harm your business,
and deciding how much information to reveal to stakeholders.

Employee Treatment: Balancing the need to terminate an underperforming employee for the sake of
the company against the ethical considerations of the employee's livelihood.

ETHICS IN INDUSTRIAL/ORGANIIZATIONAL PSYCHOLOGY

Two types of ethical dilemmas:

Type A – there is high level of uncertainty as to what is right or wrong; appears to be no best solution;
both positive and negative consequences to a decision.

Type B – “rationalizing dilemmas” know what is right but choose the solution that is most advantageous
to themselves.

Examples:

Type A: many people would say that drug research that uses animals to test new drugs is unethical,
because it is morally wrong but others would say that new drugs could save millions of lives.

Type B: Example: many students will say that they have cheated atleast one time on a test. Though they
will say that it is morally wrong to cheat, many have done it (cheat) and they rationalize that “for just
this one time” it is okay and that it is not hurting anyone.