Chapter One

1. Introduction to Industrial
Psychology and Human relation
Brain storming

1. What is industry?
2. What is psychology?
3. What is industrial psychology?
4. What is it industrial psychology concerned
about?
1.1. Definition
The term 'Industrial Psychology' is a combination of two
words 'Industrial' and 'Psychology'.
Industrial life:-
 is part of social life
 Gives the civilized man with the material goals. I.e,
productivity, technology, comfort, etc.
Psychology :-is the science of human behavior in
relation to environment. Thus,
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 the people at
work.
Major characteristics of industrial
psychology

 It is concerned with people's work-related

values, attitudes and behaviors, and how these
are influenced by the conditions in which they
work.
 It is a branch of applied psychology that is
concerned with efficient management of an
industrial labor force
 It is especially concerned with problems
encountered by workers in a mechanized
environment.
Conti…
 Long ago workers had been treated
as:
Machine and
Employers always think about
the higher production at any cost
There was no consideration of
workers' value, feeling and
attitude.
But Industrial psychology has made
significant contribution in framing the
techniques of leadership, worker
participation, communication,. etc.
 1.2. Scope of industrial psychology
1.Scientific selection of workers:-
Industrial psychology uses tests such as:-
 Systematic depth interviews
 Psychological tests of:-
 Intelligence,
 Aptitude, Skills, Abilities,

 Interest and the personnel characteristic.

 Candidates are measured, properly selected and

placed on the job. I.e, personal characteristic-job
matching was the achievement.

2.Proper division of work:-
Division of work requires an appropriate:-
 Labeling &
 Categorizing of work with respect to the pertaining
abilities, skills and aptitude of the workers
Division of work helps to raise:
 Workers’ job satisfaction, and
Workers’ productivity.
3. Minimizing the wastage of human efforts:-
It is also known as effort maximization.
Availing adequate working environment together with
incentive helps to bring:-
 Workers’ job satisfaction,
 Increment in workers’ efficiency
 Increased workers’ motivation and
morale
4.Promoting labor welfare:-
This area is concerned with welfare of
the labor.
Welfare of labor can be ensured by:-
 Reducing fatigue or accident and
 Providing feasible suggestions to
prevent such risks.
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 problems arise in the industries are
connected to human relation.
 If workers' feel ease with the surrounding
then automatically they get motivated
 As a result, productivity will be higher.
6.Developing industrial relations:- Issues of study
here refer to:-
 Attitude of the employer and employees.
 Individuals differ from each others in their
thoughts, thinking, behaviour and other
parameters.
 Problems of individuals like transfers,
promotions, grievances etc.
 Relationship among workers' and management.
7.Increase production:-
With this area it studies about:-
 Organizational attainment and how to get the best
output from the existing resources.
 proper selection of workers,
 Fair distribution of work,
 Safety measures and accident prevention
strategies.
 improvement of industrial relations
1.2. The human factors in industrial
relations
 The modern industrial psychologists treated people in
industry as human being and have made significant
contribution to industrial management by developing
concepts and techniques of effective leadership.
 Industrial relations Include the following
relations:
 Labor-union relations
 Employee/employer relations
 Cooperation & conflict resolution
 Arbitration, negotiation & bargaining
 Findings
of Hawthorne Studies /known
as Hawthorne effect/:
• Physical environment at work place (i.e.,
working conditions) do not have any
material effect on the efficiency of work.
• Social or human relationship influenced
productivity more directly than changes in
working conditions.
• Favorable attitudes of workers and work-
teams towards their work were more
important factors determining efficiency.
• Fulfillment of workers social and
psychological needs have a beneficial
effect on the morale and efficiency of
workers.
• Employee groups formed on the basis of
social interactions and common interest
exercised a strong influence on workers,
performance.
 Chapter Two
2. Understanding and Managing Individuals
2.1. Diversity and Individual Difference
2.1. Diversity and individual difference

2.1.1 Workforce Diversity

What is Diversity?
How do people differ?
 Any perceived difference among people:
E.g, skill, qualification, age, ability, race functional
specialty, profession, gender, geographic origin, life
style, tenure with the organization, or position.
 Unless effectively managed, diversity among
employees may have a negative impact on
productive teamwork.
Competitive advantage of Workforce
Diversity
1. Marketing: Companies are realizing that consumers,
like the workforce, are changing demographically.
 A multicultural workforce provides a company
with greater knowledge of the preferences and
consuming habits of the market place.
 This knowledge can assist companies in
designing products and developing market
campaigns to meet those consumer needs.
 A diverse workforce can also give company
competitive edge in a global economy by
facilitating understanding of other customers,
cultures, and market place needs.
2. Creativity, innovation, and problem Solving
 Work team diversity promotes creativity and
innovation, because people from different
backgrounds hold different perspective on issues.
 Diverse groups have a broader base of experience
from which to approach problem
 They invent more options and create more solutions
than homogeneous groups do.
 In addition, diverse workgroups are freer to deviate
from traditional approaches and practices.
3. Flexibility:-
 A diverse workforce can enhance industrial
flexibility because successfully managing
diversity requires a corporate culture that tolerates
many different styles and approaches.
 Less restrictive policies and procedures and less
standardized operating methods enables an
organization to become more flexible and thus
better able to respond quickly to environmental
changes.
How an industry Cultivates a Diverse Workforce

1. Securing top management support and

commitment:
 Obtaining top-level commitment and support
is critical for diversity programs to succeed.
 Incorporating the organization’s attitudes
toward diversity into the corporate mission
statement and into strategic plans and
objectives.
 Managerial compensation can be directly
linked to accomplishing diversity objectives.
 Adequate funding must be allocated to
diversity effort to ensure its success.
2. Making an Organizational Assessment
 The objective of organizational assessment
is to
identify problem areas and make
recommendations where changes are needed.
 To manage diversity assessing the
organization’s workforce, culture, policies, and
practices in areas such as recruitment,
promotions, benefits, and compensation is
necessary.
 In
addition, the demographics of the labor pool
and the customer base should be evaluated.
3. Attracting Employees:
Companies can attract a diverse, qualified
workforce through:-
 using effective recruiting process,
 accommodating employees’ work and
family needs, and
 offering alternative work arrangements.
4.Developing Employees:
Employees can be developed in a variety of ways.
Amongst are:
 Focus on skills training and
 diversity training
5.Retaining Employees:
 Replacing qualified and experienced workers
becomes more difficult and costly,
 Retaining good workers will become much
more important.
 A number of policies and strategy will
increase retention of all employees, especially
those who are “different” from the norm
Challenges in Managing Employee
Diversity
a. Resistance to Change:
 Change induces anxiety that initiates inertia
b. Segmented Communication Networks:
 Most communication between members of the same
sex and race. Implying prevalence of segmented
communication networks.
c. Resentment:
 Equal employment opportunity that is free from all
sort of discrimination in majority of organizations was
a forced change rather than a voluntary one.
 d. Backlash: negative reaction to members of
previously underrepresented groups gaining power and
influence
 While minorities may view a “cultural diversity
policy” as a commitment to improving their chances
for advancement, others may see it as a threat.
e. Retention:
 The job satisfaction levels of women and minorities
are often lower than those of majority men.
f. Competition for Opportunities:
 As minority populations grow, competition for jobs
and opportunities is likely to become much stronger.
g. Lower Cohesiveness:
Cohesiveness’ refers to:-
 The degree to which group members
perceive, interpret and act on their
environment in similar or mutually agreed
upon ways.
 Cohesiveness creates homogenous
group
But lack of similarities in language, culture,
and/ or experience, etc. creates
heterogeneous group.
 Diverse workforce typically are less
cohesive than homogeneous groups.
 Often mistrust, miscommunication,
stress and attitudinal differences can
diminish productivity.
h. Communication problem:
 The most common negative effect of
diversity is communication problems.
These difficulties include:
 misunderstanding,
 inaccuracies, and
 slowness.
 Speed is lost when additional time is
required to explain things
i. Mistrust and tension:
People prefer to associate with others who
are like themselves.
This tendency often leads to mistrust and
misunderstanding of those who are different
because of lack of contact and low
familiarity.
 it also causes stress and tension ,and
reaching agreement on problems can be
difficult.
j. Stereotyping:
 We learn to see the world based on our
backgrounds and experiences.
 Our interests, values and cultures act as filters
and distort, block and select what we see and
hear
 We see and hear what we expect to see and
hear and judge persons by what we imagine
 stereotyped workers develop low
commitment, higher turnover, and are
underused
Discussion(10 minutes)

1. Define and identify type and chxs. of the

following concepts that are associated with human
behavior.
A. Ability
B. Aptitude,
C. Value
D. Personality.
2. Write atleast five jobs that require specific
abilities.
 2.2. Aptitude, Ability, Value, and Personality of
individuals in industrial psychology
1. Aptitude
It represents a person’s capability of learning something.
 Designed to measure your competence and potential for
achievement
 Aptitudes are natural abilities, Whereas,
 Abilities are the knowledge and skills that an individual currently
possesses.
 Many tests show a mixture of both ability and aptitude – ability to
understand what the test requires and aptitude to perform at
something for which a person may not as yet have any prior
experience.
Aptitudes and abilities are important
considerations for a manager when initially hiring
or selecting candidates for a job.
various tests are used to measure mental
aptitudes and abilities.
 E.g.,(IQ) score (e.g., the Stanford-Binet IQ Test).
SAT college entrance tests.
Screening and selection of applicants for
educational programs or jobs.(Interviews,
exams,etc.,)
2. ABILITY
 Ability reflects a person’s existing capacity
to perform the various tasks for a job
 It includes knowledge, skills& attitude.
 It is a current assessment of what one can
do.
 Individual overall abilities are made up of two
sets of factors: Intellectual abilities & Physical
abilities
I. Intellectual abilities

i. Intellectual Abilities :-
 Are those abilities needed to perform mental
activities.
 IQ tests for example are designed to ascertain
one’s general intellectual abilities.
 For instance, college admission tests (SAT),
graduation admission test in business (GMAT),
law (LSAT), are also example of IQ test.
 II. Physical ability

 Is the capacity to do tasks demanding

stamina, dexterity (swiftness or
precision), strength, flexibility, body
coordination, balance and similar
characteristics.
 some jobs, such as fire-fighter and police,
require tests for physical abilities.
 Muscular strength and cardiovascular
endurance are two of many physical ability
dimensions.
The Ability – Job Fit
 Ability-job fit can be defined as the “fit
between the abilities of a person and the
demands of a job, or the desires of a person
and the attributes of a job.
 Three approaches to matching individual
abilities with job requirements.
1. Select applicants whose existing ability best
fit the required tasks.
2. Provide training so employees develop
required skills and knowledge.
3. Redesign jobs so employees are given only
tasks within their abilities.
 So, for example:
Airline pilots need strong spatial –
visualization abilities
Senior executives need verbal abilities
High-rise construction workers need
balance and
Journalists with weak reasoning
abilities would likely have difficulty
meeting minimum job requirement
standards.
 3. Values
Definition of Values
 Values are concepts or beliefs.
 values reflect a person’s sense of right and
wrong or what “ought” to be.
 For instance, “Equal rights for all” and
“People should be treated with respect and
dignity” are representative of values.
 Values tend to influence attitudes and
behavior.
 Types of values

In the view of development values can be

classified into two broad categories:
(1) Individual values:
 These are the values which are related with the
development of human personality or individual
norms of recognition and protection of the human
personality such as honesty, loyalty, genuineness
and honor.
(2) Collective values:
 These are values connected with the solidarity of
the community or collective norms of equality,
justice, solidarity and sociable ness are known as
collective values.
 Types of values
 With respect to hierarchy of desire to achievement
or goal attainment values are classified into two
kinds:-
I. Terminal Values(ends):-
 Terminal value (intrinsic values) refers to desirable
end states of existence (the goals that a person
would like to achieve during his or her lifetime)
II.Instrumental Values(means):-
Instrumental value refers to one’s preferable modes
of behavior or means of achieving terminal values.
 Terminal Values Instrumental Values
A comfortable life (and prosperous) Ambitious (hardworking)

An exciting life (stimulating) Broad-minded (open-minded)

A sense of accomplishment (lasting Capable (competent, effective)

contribution)
A world of beauty (beauty of nature and Clean (neat, tidy)
the arts)
Equality (brotherhood, equal Courageous (standing up for beliefs)
opportunity)
Family security (taking care of loved Forgiving (willing to pardon)
ones)
Freedom (independence, free choice) Helpful (working for others' welfare)

Happiness (contentedness) Honest (sincere, truthful)

Self-respect (self-esteem) Obedient (dutiful, respectful)

True friendship (close companionship) Responsible (reliable, dependable)

Wisdom (mature understanding of life) Self-controlled( self-disciplined)

 Characteristics of Values:
 Values may be specific, such as honoring one’s parents
or owning a home or they may be more general, such as
health, love and democracy.
 Value systems can be different from culture to culture.
 Values influence attitudes perceptions and behaviour.
Eg Suppose that you enter an organization with the view
that allocating pay on the basis of performance is right,
while allocating pay on the basis of seniority is wrong.
You're likely to be disappointed-and this can lead to job
dissatisfaction and the decision not to exert a high level
of effort since "it's probably not going to lead to more
money
Importance of Values
 Values are general principles to regulate our day-to-day
behavior.
 They not only give direction to our behavior but are also
our ideals and objectives in themselves.
 Values deal not so much with what is, but with what
ought to be; in other words, they express moral
imperatives.
 They are the expression of the ultimate ends, goals or
purposes of social action.
 Our values are the basis of our judgments about what is
desirable, beautiful, proper, correct, important,
worthwhile and good
 Our values are the basis of what is undesirable, ugly,
incorrect, improper and bad.
 4. Personality

Definition of personality: -
 Personality can be defined as an organized set of
characteristics possessed by a person that uniquely
influences his or her cognitions, motivations, and
behaviors in various situations.
 It is the total quality of an individual’s attitude,
thoughts and behaviors.
The Big Five (Personality Dimensions)
 Fivemajor dimension of personality (called
the “Big Five”). These are:
1. Conscientiousness
2. Agreeableness
3. Neuroticism
4. Openness to experience
5. Extroversion
1. Conscientiousness- represents differences in
organization, productiveness, and responsibility.
It refers to people who are:
 Careful
 Dependable
 Self-disciplined
 Willing to achieve
 Higher personal goals
 More motivated
 Higher performance expectations
People with low conscientiousness tend:
Careless
Less thorough ( lack of attention)
More disorganized
Irresponsible
2. Agreeableness- captures differences in sympathy,
respectfulness, and acceptance of others.
People with high agreeableness show traits:
Being courteous/polite
Good-natured
Empathic and caring
 Friendly compliance- obeyed by the rule
 Handle conflicts and customer relations
People with low agreeableness:
 Hostile
 Noncompliance
 Uncooperative
 Short-tempered
 Irritable
3. Neuroticism- captures differences in the
frequency and intensity of negative emotions.
Neuroticism characterizes people with:
 High levels of anxiety
 Mood swings
Sadness
 Depression
People with low neuroticism:
 High emotional stability
 Are poised/calm and confident/
 secure
 calm
People with high emotional stability tend to work
better than others in high-stress situations.
4. Openness to experience- represents differences in
intellectual curiosity, aesthetic sensitivity, and
imagination
People who are openness show:
 Sensitive
 Flexible
 Creative
 Curious
People who have low openness show:
 More resistant to change
 Less open to new ideas
 More fixed in their ways
 This dimension is the most complex and has the
least agreement among scholars.
5. Extroversion- represents individual differences in social
engagement
Extroversion people are characterized:
 Outgoing

 Talkative

 Sociable

 Assertive

Introversion people are characterized:

 Quiet

 Shy

 Cautious/not taking risk/

 May lack of social skills

 More inclined to direct their interests

 Comfortable being alone

 Exercise: on personality
Directions: Indicate the extent to which you agree or disagree with
each item by entering a number in the space beside it. Enter 5 if
you agree strongly with the item, 4 if you agree, 3 if you neither
agree nor disagree, 2 if you disagree, and 1 if you disagree strongly.
Conscientiousness: ___ I keep my room neat and clean.
___ People generally find me to be extremely reliable.
Extraversion: ___ I like lots of excitement in my life.
___ I usually am very cheerful.
Agreeableness: ___ I generally am quite polite to other people.
___ People never think I am cold and shy.
Emotional Stability: ___ I often worry about things that are out of my
control. ___ I usually feel sad or “down.”
Openness to Experience: ___ I have a lot of curiosity.
___ I enjoy the challenge of change.
There is evidence that factors other than conscientiousness have
applicability for specific job families and occupations.
1. Extraversion –
 Appears to be related to sales performance;
2.Openness to experience-
 Predicts training and expatriate success;
3.Agreeableness-
 Is associated with performance in customer-service and
team-oriented jobs;
4.Emotional stability-
 Contributes to a broad range of jobs including
management positions as well as jobs in the safety/security
sector
2.3 Social perception (impression formation
and impression management )and Attribution
in Workplace
Meaning of social perception:
 Is the process of knowing and understanding
other persons and events.
 It involves inferring the other person’s
characteristics and emotions.
 It describes the ability people have to decode
and encode nonverbal behavior.
 Discussion
1. Reflect how you are perceived by the people in
your organization?
2. Do you believe that you are well-understood by the
people you are working with or living with in the
village or by the more wider community? Why or
why not? List those factors that caused the error?
Factors affecting social perception
1.Halo effect :
understanding someone via a particular action only
2.Physical attractiveness:-
being neat, beauty or unattractiveness influences
social perception
3.Stereotyping :-
Refers to inaccurate beliefs about a member of a group
4.Expressing style:-
The way people express themselves results in liking or disliking
5.Primacy effect :-
A perceptual error in which we quickly form an opinion of
people based on the first information we receive about them
 Skills to improve social perception
a. Getting information: - it involves collecting detailed
information, fact, data and figure
b. Listening and observation:-
 Listening what people say and what they do not say &
observing what people do and see their motives.
c. Make self available. Is being close and expendable in
time, place and action
d. Establish proper climate:- it requires us to use good
rapport for people.
e. Do not jump to conclusion:- It requires to make
informed and evaluated judgement
 Impression formation

What is impression and impression formation?

It is the process by which we make judgment about
the motives and behavior of other people.
It Is the process by which someone integrates
various sources of information about another
person in to an overall judgment.
 Impression formation is influenced by primacy effect
and recency effect.
Impression management/Self
presentation/
It is the desire or the effort to
make a favorable impression on
others.
 It is simply the fine art of looking
good.
People usually present
themselves in certain ways in
order to control the impressions
of others on them.
 Techniques of impression management
Are often known as image boosting techniques and most of these techniques
fall in to two broad categories. These are self enhancement and other
enhancement
a. Self enhancement: -
 is the effort to increase one’s appeal to others. E.g., efforts to boost one’s
physical appearance through style of dress, personal grooming and
wearing eyeglasses.
 Efforts to describe oneself in positive terms like overcome obstacles and
resist challenges.
 People use this tactic to increase their appeal to potential dating partner
and job interviewer.
b. Other enhancement: -
 Refers to make the target person feel good in various ways.
 People use many tactics to induce positive moods and reactions in
others.
 Techniques of other enhancement
i. Flattery: -
 Making statements that praise the target person, his/ her trait or
accomplishment or the organization with which the target person
associated.
 It is the most common way of other-enhancement.
 This technique is often highly successful if it is not over done.
ii. Expressing agreement
 To be with the target person’s views
iii. Doing small favor
 Demonstrating concern by making favor for him /her
iv. Respect contribution/Recognition
 Asking for him / her advice and feed back in some manner
v. Attention & seeking/philic intent
 Expressing liking none verbally through high level of eye contact,
smiling , and nodding in agreement
 Attribution
Meaning of attribution:
It is the process of making judgment about what
causes people to behave/ act/ in a certain way.
 It is the process of using information to make
inferences about the causes of behavior.
 Types of attribution
Causal attribution concerns the locus of causality. There are two broad
locus of causality. People attribute causes as either internal state or
external factors.
a. Internal attribution:-Is an attribution that locates the causes of an
action or behavior to factors internal to the person such as
personality traits, moods, attitudes, abilities, or efforts. It is also
called dispositional causes.
You believe Samuel ’s performance is poor because he is lazy.
a. External attribution:-
 Is a form of attribution that locates the cause of a behavior to
factors external to a person such as luck , other people, or
situation. It is also called situational cause.
 You believe Samuel ’s performance is poor because his machine is
old
 Contd.
Three factors influence the internal or external
determination of attribution: distinctiveness, consensus,
and consistency.
 Distinctiveness considers how consistent a person’s
behavior is across different situations.
 Consensus takes into account how likely all those facing
a similar situation are to respond in the same way
 Consistency concerns whether an individual responds
the same way across time
 High Distinctiveness of the entity, High Consensus, and High
Consistency leads to an External attribution
 Low distinctiveness, Low Consensus, Low Consistency leads to
an internal attribution
 Bias in attribution
People are not accurate in making attribution
for the causes of human behavior. This kind of
limitation is called attribution bias or errors.
There are different forms of attribution errors.
Fundamental attribution error:-
 Is the tendency to make internal attribution over
external one for the behavior of others.
 E.g., someone is unemployed based on his
character blame for his plight, when in fact he is
recently laid of due to the sluggish economy.
Confirmation bias: -
 Is the tendency to seek information that supports (verifies) pre-
existing explanation (hypothesis) in us for the cause of human
behavior
Actor-observer bias: -
 Is the tendency for actors to prefer external attribution for
their own behavior. Especially if the outcomes are bad, where
as observers tend to make internal attribution to the same
behavior.
Self serving bias: -
 Is the condition of attributing positive out comes to internal,
dispositional factors and negative result to situational forces.
False consensus bias: -
 Is the tendency to believe that everyone else shares our own
feelings, opinions and behaviors.
 Group discussion
1. Reflect the attribution you make about the
success/failure of your institution.
2. Reflect the failure/success of your individual
goals? Why you did/didn’t achieve your goal?
Who is responsible/needs to be recognized?
 END OF
UNIT TWO