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Lesson 3
Industrial and Organisational Psychology
LEARNING OUTCOMES
KEY CONCEPTS
The key concepts for Lesson 3, Industrial and Organisational
Psychology, will be uploaded to this module site as they become available.
INTRODUCTION
This lesson introduces you to theory and research, subfields, and professional
practices within Industrial and Organisational (IO) Psychology. We explain how IO
Psychology applies psychological knowledge in the world of work and the self-
employed context. Industrial and Organisational Psychology has been broadly defined
as applying principles, theories, values, and ethics across different workplaces from
individuals, groups/teams, and organisations. It deals with scientific knowledge
through concrete research and engaging in scientific methods.
The term “industrial and organisational psychology” describes the field where human
behaviour and mental processes are studied in the work context. Although other terms
(such as “occupational psychology” and “work and organisational psychology”) are
used in different countries, the content and implications are the same.
the psychology of work in both the formal and informal labour force and the place of
work. As a scientific field of study, IOP applies its own knowledge foundation of work
theories and work-related research. It is also a unique application aimed at achieving
the best fit between employees and workplaces and optimising employee and
organisational performance. According to Veldsman (2021), humane workplaces of
both the present and future must be built on the premise that humans are complex,
multidimensional, holistic beings whose basic needs must be satisfied, allowing them
to mature in such a way that they will flourish, thrive, and feel fulfilled in the chosen
place of work. A concept that has its origins in the early 20th century.
Industrial and Organisational Psychology had its origins in the early 20th century.
Several influential early psychologists studied issues that today would be categorised
as industrial psychology: James Cattell (1860–1944), Hugo Munsterberg (1863–
1916), Walter Dill Scott (1869–1955), Robert Yerkes (1876–1956), Walter Bingham
(1880–1952), and Lillian Gilbreth (1878–1972). Cattell, Munsterberg, and Scott had
been students of Wilhelm Wundt, the father of experimental psychology. Some of
these researchers had worked in industrial psychology before World War I. The
Second World War further impacted how IOP evolved to where it is today. The history
of IOP is discussed here, as it evolved before and after World War II.
Theory of Advertising and Psychology of Advertising. They are the first books to
describe the use of psychology in the business world. By 1911, he published two more
books, Influencing Men in Business and Increasing Human Efficiency in Business. In
1916, a newly formed division in the Carnegie Institute of Technology hired Scott to
conduct applied research on employee selection (Katzell & Austin, 1992). All this
research focused on what we now know as industrial psychology; it was only later in
the century that organisational psychology developed as an experimental science
(Katzell & Austin, 1992). In addition to their academic positions, these researchers
also worked directly for businesses as consultants.
When the United States entered World War I in April 1917, the work of psychologists
working in this discipline expanded to include their contributions to military efforts. At
the time, Yerkes was the president of the 25-year-old American Psychological
Association (APA). The APA is a professional association for clinical and research
psychologists in the United States. Today, the APA performs several functions,
including holding conferences, accrediting university degree programmes, and
publishing scientific journals. Yerkes organised a group under the Surgeon General’s
Office (SGO) that developed methods for screening and selecting enlisted men. They
developed the Army Alpha test to measure mental abilities. The Army Beta test was a
non-verbal form of the test that was administered to illiterate and non-English-speaking
draftees. Scott and Bingham organised a group under the Adjutant General’s Office
(AGO) to develop officer selection methods. They created a catalogue of occupational
needs for the Army, essentially a job-description system and a system of performance
ratings and occupational skill tests for officers (Katzell & Austin, 1992). After the war,
work on personnel selection continued. For example, Millicent Pond researched the
selection of factory workers, comparing the results of pre-employment tests with
various indicators of job performance (Vinchur & Koppes, 2014).
From 1929 to 1932, Elton Mayo (1880–1949) and his colleagues began a series of
studies at a plant near Chicago, Western Electric’s Hawthorne Works (Figure 1).
Figure 1
Hawthorne Works provided the setting for several early I-O studies.
This long-term project took industrial psychology beyond just employee selection and
placement to a study of more complex problems of interpersonal relations, motivation,
and organisational dynamics. These studies marked the origin of organisational
psychology. They began as research into the effects of the physical work environment
(e.g., factory lighting level). However, the researchers found that the factory's
psychological and social factors were more interesting than the physical ones. These
studies also examined how human interaction factors, such as supervisorial style,
increased or decreased productivity.
Analysis of the findings by later researchers led to coining the term the Hawthorne
effect, which describes the increase in performance of individuals who are aware
researchers or supervisors are observing them. The original researchers found that
any change in a variable, such as lighting levels, led to an improvement in productivity;
this was true even when the change was negative, such as a return to poor lighting.
The effect faded when the attention faded (Roethlisberger & Dickson, 1939). Today's
Hawthorne effect concept is an essential experimental consideration in many fields
and a factor that must be controlled for in an experiment. In other words, an
experimental treatment of some kind may produce an effect simply because it involves
greater attention of the researchers on the participants (McCarney et al., 2007).
In the 1930s, researchers began to study employees’ feelings about their jobs. Kurt
Lewin also researched the effects of various leadership styles, team structure, and
team dynamics (Katzell & Austin, 1992). Lewin is considered the founder of social
psychology, and much of his work and that of his students produced results that had
essential influences on organisational psychology. Lewin and his students’ research
included a crucial early study that used children to study the effect of leadership style
on aggression, group dynamics, and satisfaction (Lewin et al., 1939). Lewin was also
responsible for coining the term group dynamics, and he was involved in studies of
group interactions, cooperation, competition, and communication that bear on
organisational psychology.
Between 1927 and 1932, there was a shift in ideas about how to study groups in the
United Kingdom and Europe (Fraher, 2004). Several theorists, such as Sigmund Freud
(1925/1955) and Wilfred Bion (1961/2004), studied group relations in this period.
Bion’s (1961/2004) focus was on group attitudes to itself based on his theory of the
will of the group. Observing the tensions in groups, Bion acknowledged the primitive
state of an individual in a group who wished for everything to revert to the status quo
as being a barrier to learning but an opportunity for an onlooker to gain insight into
groups (Bion, 1961/2004; Sher, 2003).
Parallel to these studies in IOP, human factors psychology was also developing.
Frederick Taylor was an engineer who saw that if one could redesign the workplace,
there would be an increase in both output for the company and wages for the workers.
In 1911, he put forward his theory in The Principles of Scientific Management. His
book uses time and motion studies to examine management theories, personnel
selection, training, and the work itself. Taylor (1911) argued that the principal goal of
management should be to make the most money for the employer, along with the best
outcome for the employee. He believed that the best outcome for the employee and
management would be achieved through training and development so that each
employee could provide the best work. Personnel selection is a process used by
recruiting personnel within the company to recruit and select the best candidates for
the job. Training may need to be conducted depending on the hired candidate's skills.
Often, companies will hire someone with a personality that fits in with others but may
lack skills. Skills can be taught, but personality cannot be easily changed.
Taylor further believed that the best interests of both the organisation and the
employee were addressed by conducting time and motion studies for both the
organisation and the employee. Time-motion studies were methods aimed at
improving work by dividing different types of operations into sections that could be
measured. These analyses were used to standardise work and check people and
equipment's efficiency.
One of the examples of Taylor’s theory in action involved workers handling heavy iron
ingots. Taylor showed that the workers could be more productive by taking work rests.
This rest method increased worker productivity from 12.5 to 47.0 tons moved per day
with less reported fatigue and increased wages for the workers paid by the ton. At the
same time, the company’s cost was reduced from 9.2 cents to 3.9 cents per ton.
Despite these productivity increases, Taylor’s theory received much criticism at the
time because it was believed to exploit workers and reduce the number of workers
needed. Also controversial was the underlying concept that only a manager could
determine the most efficient method of working and that a worker was incapable of
this while at work. Taylor’s theory was underpinned by the notion that a worker was
fundamentally lazy, and Taylor’s scientific management approach aimed to maximise
productivity without much concern for the worker’s well-being. His approach was
criticised by unions and those sympathetic to workers (Van De Water, 1997).
Gilbreth was another influential Industrial and Organisational (IO) psychologist who
strove to find ways to increase productivity. Using time and motion studies, Gilbreth
and her husband, Frank, worked to make workers more efficient by reducing the
number of motions required to perform a task. She applied these methods to industry
and the home, office, shops, and other areas. She investigated employee fatigue and
time management stress and found that many employees were motivated by money
and job satisfaction. In 1914, Gilbreth wrote the book The Psychology of Management:
The Function of the Mind in Determining, Teaching, and Installing Methods of Least
Waste, and she is known as the mother of modern management. Some of Gilbreth’s
contributions are still in use today: You can thank her for the idea to put shelves inside
refrigerator doors, and she also came up with the concept of using a foot pedal to
operate the lid of a trash can (Gilbreth, 1914, 1998; Koppes, 1997; Lancaster, 2004).
Gilbreth was the first woman to join the American Society of Mechanical Engineers in
1926, and in 1966, she was awarded the Hoover Medal of the American Society of
Civil Engineers.
Taylor and Gilbreth’s work improved productivity, but these innovations also improved
the fit between technology and the humans using it. The study of machine-human fit
is known as ergonomics or human factors psychology.
There are many reasons for organisations to be interested in IOP so that they can
better understand the psychology of their workers, which in turn helps them
understand how their organisations can become more productive and competitive. For
example, most large organisations are now competing globally and need to
understand how to motivate workers to achieve high productivity and efficiency. Most
companies also have a diverse workforce and need to understand the psychological
complexity of the people in these diverse backgrounds. Today, IOP is a diverse and
deep field of research and practice.
Open the learning material you downloaded from the library for this lesson.
Study the content under the headings “IWO psychology in South Africa”
and “Historical development of Industrial and Organisational Psychology
in Africa” in De Kock (2018) to gain an understanding of how IOP developed on the
African continent. The learning material written by De Kock (2018) describes IOP as
Industrial, Work and Organisational Psychology (IWO). While the terms differ, the
concept is the same as IOP.
There are critical differences between Human Resource Management and IOP. Bergh
and Geldenhuys (2013) describe Human Resource Management as a process that
involves supervision and management of employment systems (i.e. personnel, labour
relations, and administrative content). Industrial and Organisational Psychology,
compared to Human Resource Management, specialises in the application of
principles and theories related to solving and improving workplace behaviour in the
organisation. Mostly, IO psychologists are hired by organisations to administer
assessments and are responsible for organisational development. IO psychologists
are generally responsible for employee productivity, screening and development, and
mental well-being. Bergh and Geldenhuys (2013) indicate that IO psychologists play
a significant role in Human Resource Management, as they are regarded as
behavioural experts on human behaviour. As such, they are often classified under
Human Resource Management. For this reason, some IO psychologists have also
become members of the South African Board for People Practices (SABPP) because
they sometimes work in or with human resources functions in the organisation. The
SABPP endeavours to professionalise the human resource function and work towards
establishing human resources management in the workplace as a recognised and
respected profession. The SABPP published a human resources competency
framework and training guidelines. Registration as a human resources professional
with the SABPP offers a different career route to undergraduate students in IOP who
opted out of the postgraduate studies required for registration as an IOP with the
HPCSA. Should you like to know more about the SABPP, its role, practices and
activities, visit their website: https://www.sabpp.co.za/about-us/index.
Study the De Kock (2018) section about “Key issues in the profession”. De
Kock (2018) states that the profession of IOP in South Africa has
experienced several identity crises. De Kock (2018) states that “less but
better regulation” is required to secure prospects for a more robust IOP profession in
South Africa. In addition, the profession needs to “reach out” to its African
counterparts.
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Openstax (2022) summarises the main fields of IOP, its focus, and jobs within
each field in Table 1.
Table 1
Fields of Industrial Organisational Psychology
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Study the “Key issues in practice” De Kock (2018) mentions because these
pertain to “selection fairness”, a contentious issue in the history of South
Africa. Opportunities and caution around “Social entrepreneurship” seem
hot in business and business education. In the previous section, you learnt that one of
the fields of practice in IOP is that of researcher. De Kock (2018) stated that there are
diverse “research themes” for South African researchers to investigate that are also
commonly studied in the rest of the world. In Figure 5.6, the author indicates IOP
research trends and significant themes in IOP research that you need to note.
However, several “Research challenges” De Kock (2018) identifies exist. As the
author mentions, familiarise yourself with these and the suggestion for “Building
scientific capacity” in South Africa and Africa.
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Should you be following a career in IOP, you may be interested in additional reading
material found below. You will not be assessed on this additional reading material.
• HPCSA web page at
https://www.hpcsa.co.za/?contentId=0&menuSubId=52&actionName=For%20
Professionals
• The scope of practice of the profession
• Minimum standards for the training of Industrial Psychology
• The Master’s degree offered by the Department of Industrial and
Organisational Psychology
https://www.unisa.ac.za/sites/corporate/default/Colleges/Economic-and-
Management-Sciences/Schools,-departments,-bureau,-centres-&-
institutes/School-of-Management-Sciences/Department-of-Industrial-and-
Organisational-Psychology/Masters-degrees
3.7 CONCLUSION
This lesson provided a broad overview of the industrial and organisational psychology
profession, specifically within the South African context. Looking back on the
profession's origins, you understand the purpose of Industrial and Organisational
Psychology after studying this lesson – how the profession developed, the critical
issues in the field and the field of practice. In addition, you will better understand the
scope of practice and the regulatory bodies that govern IO psychologists and the
profession.
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REFERENCES
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American Psychological Association. (2022a). APA dictionary of psychology.
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psychology
American Psychological Association. (2022b). APA dictionary of psychology.
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Ascender is a Ceridian company. (2020, November 15). What is organisational
development? Ascender HCM Pty Ltd. Retrieved September 22, 2022, from
https://www.ascenderhcm.com/what-is-organisational-development/
Bergh, Z., Geldenhuys, D. (2013). Psychology in the work context (5th ed). Oxford.
Bion, W. R. (2004). Experiences in groups and other papers. Taylor & Francis.
(Original work published 1961)
Cherry, K. (2022, March 8). The basics of Human Factors Psychology. Verywell Mind.
Retrieved September 28, 2022, from https://www.verywellmind.com/what-is-
human-factors-psychology-2794905
De Kock, F. (2018). Industrial, work and organizational psychology in Africa. In D. O.
Anderson & H. K. Sinangil (Eds.), The Sage Handbook of Industrial, Work and
Organizational Psychology (pp. 110–125). SAGE Publications Ltd.
https://doi.org/10.4135/9781473914964.n6
Fraher, A. L. (2004). Systems Psychodynamics: The formative years of an
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Freud, S. (1955). Group Psychology and the analysis of the ego. The standard edition
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IBM. (2019). What is training and development? Retrieved September 28, 2022, from
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