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1. Chapter 13 INDUSTRIAL-ORGANIZATIONAL PSYCHOLOGY
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PSYCHOLOGY

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WHAT IS INDUSTRIAL AND ORGANIZATIONAL
PSYCHOLOGY?
1. What is Industrial and Organizational Psychology?
2. Industrial Psychology: Selecting and Evaluating employees
3. Organizational Psychology: The Social Dimension of Work
4. Human Factors Psychology and Workplace Design

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What does an office look like? For people who telecommute, their workspace may be
adapted to fit their lifestyle. (credit: “left”: modification of work by Cory Zanker; credit
“center”: modification of work by “@Saigon”/Flickr; credit “right”: modification of work by
Daniel Lobo)
FIGURE 13.1

4. WHAT IS I-O PSYCHOLOGY?
Industrial-Organizational Psychology is a branch of psychology
that studies how human behavior and psychology affect the work and
how they are affected by the work.
I-O psychologists work in 4 main contexts:
1. Academia
2. Government
3. Consulting firms
4. Business

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(a) Industrial psychology focuses on hiring and maintaining employees. It is concerned
with describing job requirements and assessing individuals for their ability to meet those
requirements
(b) Organizational psychology is interested in employee relationships and organizational
culture. It is interested in how relationships among employees affect those employees and
the performance of business.
(credit a: modification of work by Cory Zanker; credit b: modification of work by Vitor Lima)
FIGURE 13.2

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Human factors psychology is the study of
interactions between humans, tools, and
work systems. It focuses on how workers
interact with tools of work and how to
design those tools to optimize workers’
productivity, safety, and health.
FIGURE 13.3

7. HISTORY OF I-O PSYCHOLOGY
Origins in the early 20th century.
Influential early psychologists included
• James Cattell-
• founded the first psychological consulting company
• Hugo Munsterberg
• Published Psychology and Industrial Efficiency in 1913 which
covered employee selection, training and effective
advertising.
• Walter Dill Scott
• First psychologist to apply psychology to advertising,
management and personnel selection.
• Robert Yerks and Walter Bingham
• During WWI, helped develop methods for screening and
selecting enlisted men and officers.

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Hawthorne Works provided the setting for several early I-O studies.
FIGURE 13.4

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Researchers discovered that employees performed better when researchers or
supervisors observed and interacted with them, a dynamic termed the Hawthorne
effect.
FIGURE 13.5

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(a) Frederick Taylor (1911) strived to engineer workplaces to increase productivity,
based on the ideas he set forth in (b) his book, The Principles of Scientific
Management. (c) Taylor designed this steam hammer at the Midvale Steel Company.
(credit c: modification of work by “Kheel Center, Cornell University”/Flickr)
FIGURE 13.6

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(a) Lillian Gilbreth studied efficiency improvements that were applicable in the workplace,
home, and other areas. She is credited with the idea of (b) putting shelves on the inside of
refrigerator doors and (c) foot-pedal-operated garbage cans. (credit b: modification of work by
“Goedeker’s”/Flickr; credit c: modification of work by Kerry Ceszyk)
FIGURE 13.7

12. 13.2 INDUSTRIAL PSYCHOLOGY: SELECTING AND
EVALUATING EMPLOYEES
Learning Objectives
1. Explain the aspects of employee selection
2. Describe the kinds of job training
3. Describe the approaches to and issues surrounding
performance assessment

13. SELECTING EMPLOYEES
Industrial psychology focuses on
identifying and matching person
to tasks within an organization.
First step is to create a job
analysis or accurately describing
the task or job.
Then identifying characteristics
of applicants for a match to the
job.
This Photo by Unknown Author is licensed under CC BY

14. SELECTING EMPLOYEES
Two ways to create a job analysis
1. Task-oriented
1. Details list of the tasks that will be performed
2. Worker-oriented
1. Describes the characteristics required for the worker to
successfully perform this job
Key terms
KSA’s- knowledge, skills and abilities that a job requires
Researchers have determined that people currently holding the job
actually do not produce the most accurate job analysis.

15. CANDIDATE ANALYSIS AND TESTING
Now that we have a job advertisement, how do we select the
best candidate?
Industrial Psychologists can help companies determine these
factors.
May companies use tests, interviews and work sample or
exercises.
These test must be correlated with good performance for the
specific job with cutoff scores.

16. INTERVIEWS
Many things impact interviews
including social factors and body
language.
Biases in the interviewer can
influence the outcome of an
interview in an unstructured
interview.
Structure interviews, which have a
set of questions to be asked and a
standardized rating system for
responses, are more effective in
predicting subsequent job
performance of the job candidate
This Photo by Unknown Author is licensed under CC BY-NC-ND

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BIASES AND PROTECTIONS IN HIRING
As mentioned earlier, biases of the interviewer can impact hiring
decisions. Many studies have shown that physical attractiveness
benefitted individuals in hiring, promotion, and job review (Hosoda,Stone-
Romero, & Coats, 2003).
To avoid discrimination in hiring, the United States government create the
Equal Employment Opportunity Commission to enforce federal anti-
discrimination laws.
• Additional legislation that protects
• Americans with Disabilities Act
• Title VII of the Civil Rights Act
• the Pregnancy Discrimination Act
• These protect applicants from discrimination based on race, color,
religion, sex, pregnancy, national origin, age (40 or older), disability, or
genetic informtion

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(a) Pregnancy, (b) religion, and (c) age are some of the criteria on which hiring
decisions cannot legally be made. (credit a: modification of work by Sean McGrath;
credit b: modification of work by Ze’ev Barkan; credit c: modification of work by David
Hodgson)
FIGURE 13.10

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Training usually begins with an orientation period during which a new employee learns
about company policies, practices, and culture. (credit: Cory Zanker)
Mentoring is a form of informal training which research has shown to be effective in
increasing performance, motivation and satisfaction and actual career outcomes for
both mentors and proteges.
TRAINING FIGURE 13.8

20. EVALUATING EMPLOYEES
One area that I-O psychologists are involved is designing
performance-appraisal system for organizations
Researching and studying ways to implement ways to make work
evaluations as fair and positive as possible removing subjectivity.
Performance appraisals are often a dreaded process for people BUT
done well, it helps employees do their jobs better, find a job that fits
their talents, maintains fairness and identifies company and
individuals training needs.

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In a 360-degree performance appraisal, supervisors, customers, direct reports, peers,
and the employee himself rate an employee’s performance.
FIGURE 13.9

22. 13.3 ORGANIZATIONAL PSYCHOLOGY: THE
SOCIAL DIMENSION OF WORK
Learning objectives
1. Define organizational psychology
2. Explain the measurement and determinants of job satisfaction
3. Describe the key elements of managements and leadership
4. Explain the significance of organizational culture

23. 13.3 ORGANIZATIONAL PSYCHOLOGY: THE
SOCIAL DIMENSION OF WORK
Organizational Psychology focuses on the social interactions and
their effect on the individual and on the functioning of the
organization.
Key topics include
• Job satisfaction
• Styles of management
• Styles of leadership
• Organizational culture
• teamwork

24. 13.3 JOB SATISFACTION
Job satisfaction- why does it matter?
Often measured after a change in the culture, management style or
even by outside groups to gauge strength of economy
Predicts job performance
Associated with life satisfaction

25. JOB SATISFACTION
Table 13.1 Factors Involved in Job Satisfaction- Dissatisfaction
Factor Description
Autonomy Individual responsibility, control over
decisions
Work content Variety, challenge, role clarity
Communication Feedback
Financial rewards Salary and benefits
Growth and development Personal growth, training, education
Promotion Career advancement opportunity
Coworkers Professional relations or adequacy
Supervision and feedback Support, recognition, fairness
Workload Time pressure, tedium
Work demands Extra work requirements, insecurity of
position

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When companies are combined through a merger (or acquisition), there are often cuts
due to duplication of core functions, like sales and accounting, at each company.
These cuts are called down-sizing and can create job insecurity for individuals during
the merger. This then impacts job satisfaction
FIGURE 13.13

27. 13.3 JOB SATISFACTION
Work-Family Balance
Juggling the demands of home life and
work life.
3 sources of work-family conflicts
1. Time devoted to work makes it
difficult to fulfill requirements to
family, & vice versa
2. Strain from participation at work
makes it difficult to fulfill
requirements of family, & vice
versa
3. Specific behaviors required by
work make it difficult to fulfill the
requirements of family, & vice
versa
This Photo by Unknown Author is licensed under CC BY

28. MANAGEMENT AND ORGANIZATION STRUCTURE
Lots of research conducted on
management and leadership
McGregor (1960) combined
scientific management and
human relations.
Created theory with 2 different
styles.
Theory X and Theory Y.
This Photo by Unknown Author is licensed under CC BY

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MANAGEMENT STYLES
Table 13.2 Theory X and theory Y Management styles
Theory X Theory Y
People dislike work and avoid it People enjoy work and find it
natural
People avoid responsibility People are more satisfied when
given responsibility
People want to be told what to
do
People want to take park in
setting their own work goals
Goals are achieved through
rules and punishments
Goals are achieve through
enticements and rewards

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LEADERSHIP STYLES
Transactional leadership Transformational leadership
Focus on supervision and
organizational goals
charismatic
Uses system of rewards and
punishments
inspirational
Maintains the status quo Intellectually stimulating
considerate

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GOALS, TEAMWORK AND WORK TEAMS
More companies are shifting to work teams-
groups of diverse individuals that together have
the skills, experience and expertise to handle
to the project.
3 basic types of teams: problem resolution,
creative, and tactical
Pros and Cons of the team-based approach
Popular – team halo effect
BUT not always as productive
May experience social loafing
Inefficient due to poor communication
This Photo by Unknown Author is licensed
under CC BY-SA-NC

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ORGANIZATION CULTURE
Organizational culture- the values, visions, hierarchies, norms and
interactions among employees. How to runs, operates and makes
decisions
Three layers in organizational culture
1. observable artifacts
2. Espoused values
3. Basic assumptions

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Human factors psychology or Ergonomics is
concerned with the integration of the human-machine
interface in the workplace, through design, and specifically
with researching and designing machines that fit human
requirements
Human Factors psychologists are involved in various stages
of design and are important in developing regulations and
principles of best design.
Often work focuses on workplace safety working to prevent
job related injuries as well as ensuring all equipment is
working properly in fields such as aviation, space exploration
and even surgery.
They also research and help implement limits on how long an
pilot, truck driver or even a doctor should work to improve
safety.
13.3 HUMAN FACTORS PSYCHOLOGY AND
WORKPLACE DESIGN

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Checklists, such as the WHO surgical checklist shown here, help reduce workplace
accidents.
FIGURE 13.14

35. AREAS OF STUDY IN HUMAN FACTORS
PSYCHOLOGY
Areas of study in Human Factors Psychology
Area Description I-O Questions
Attention Includes vigilance and monitoring,
recognizing signals in noise, mental
resources, and divided attention
How is attention
maintained? What about
tasks maintains attention?
How to design systems to
support attention?
Cognitive
engineering
Includes human software interactions
in complex automated systems,
especially the decision-making
processes of workers as they are
supported by software
How do workers use and
obtain information provided
by software?
Task analysis Breaking down the elements of a
task
How can a task be
performed more efficiently?
How can a task be
performed more safely?
Cognitive task
analysis
Breaking down the elements of a
cognitive task
How are decisions made?

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HUMAN FACTORS PSYCHOLOGY AND WORKPLACE
DESIGN
Companies currently hiring for positions Human Factors research