By Keshav Mishra

1. Industrial & Organizational
Psychology:
(I-O Psychology)
Keshav Raj Mishra,
Lecturer of I-O Psychology
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2. Definition:
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I-O Psychology is the branch of applied
psychology which studies about the
behavior of people at work through the
effective application of the methods, facts,
theories and principles of psychology in the
industrial and organizational job setting.

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If Job is Good: Compatible with
ones interest, knowledge and
skills.
• Relationship between Job & Overall life :
If Job is not Good: Not
compatible with ones interest,
knowledge and skills.

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If Job is Good: Compatible with
ones interest, knowledge and
skills.
• Relationship between Job & Overall life :
If Job is not Good: Not
compatible with ones interest,
knowledge and skills.
Economic wellbeing.
Emotional security.
Self-esteem, status & identity.
Personal and job satisfaction.
Physical dangers and stress.
Anxiety and boredom.
Job dissatisfaction.
Discontent at home.

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• Industrial & Organizational Psychology
also known as :
oI-O Psychology.
oWork psychology.
oOrganizational psychology.
oIndustrial psychology.
oConsumer psychology.
oOccupational psychology.
oPersonnel psychology .
oTalent assessment.

6.  Importance of I-O Psychology :
A. For Employees:
•Choosing a job.
•Adjustment in the job.
•Career development.
•Improve efficiency and morale.
•Employee wellbeing.
•Job satisfaction.
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B. For Employer:
• Understanding the job.
• Planning of human capital for the job.
• Choosing employees.
• Appraising, training and motivating employees.
• Job re-design.
• Foster positive job behavior.
• Eradicate negative job behavior.
• To enhance productivity and ensure profits

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C. For Consumers: We all are consumers.
• It affects consumer attitudes and behaviors.
• It determines psychological image of products.
• It helps consumers through better goods and
services.
• Consumer satisfaction.

9. Historical Development of I-O Psychology:
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Emerging
Phase.
• The major
contributers
were Walter
Dill Scott,
Hugo
Munsterberg
and James
Mckeen
Cattell.
World War First
Phase.
• The army
alpha and
army beta
tests were
developed.
• Hawthorne
studies
explored the
importance of
psycho-social
factors in job
setting.
World War
Second Phase.
• Army general
classification
test and
assessment
center were
developed.
• Engineering
psychology
was
developed.
Post War and
Modern Phase.
• Position
analysis test,
BARS and
MSQ were
developed.
• I-O
psychology
enrolled as
the division
14 of APA.
• Personnel
psychology
was
developed
and SIOP
established.

10. A. Emerging Phase:
• Walter Dill Scott:
- Father of I-O Psychology.
- An early advocate of the use of
psychology in the job setting. (1869-1955)
- Established first consulting
company of I-O Psychology in 1899.
- Published a book entitled "The theory and
practice of advertising" in 1903.
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11. • Hugo Munsterberg:
(1863-1916)
- An early advocate of the use of psychological
testing during personnel selection.
-Published a book entitled "psychology of
industrial efficiency" in 1913.
-Conducted considerable research in real world of
job life with the goal of betterment for job
setting.
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12. • James McKeen Cattell:
(1860- 1944)
-Published mental tests and measurements in
1890.
-Founded the psychological corporation for the
purpose of research in applied psychology to
solve problems in business and industry.
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13. B. World War First Phase:
• Testing Developments: Testing movements
by experts in this phase resulted following
tests:
-Army Alpha Test: It was designed for literate
individuals who could read and write. It involves
verbal and numerical reasoning.
-Army Beta Test: It was designed for un-
educated individuals who could not read and
write. It involves mazes, pictures, symbols. It is
the non-verbal measurement of ability. It was
also suitable for immigrants.
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14. • The Hawthorne studies and motivational
issues:
-Series of studies conducted on the job in
Howthorne, Illinois, western electric company
plant 1924.
- It documented the influence of Social and
psychological factors on work motivation in
job setting.
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15. C. World war Second Phase:
• More than 2000 psychologists directly into the
war effort.
• The Army general classification test was
developed.
• The assessment center techniques for selection
and appraisal were developed.
• Development of Engineering Psychology.
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16. D. Post War and Modern Phase:
• Development of Personnel Psychology in 1948.
• The position analysis questionnaire and behaviorally
anchored rating scales were developed.
• In 1973 Industrial and organizational psychology was
officially born with the division 14 of APA.
• Minnesota satisfaction questionnaire was developed.
• In 1982 Society for Industrial and Organizational
Psychologists established.
• In 1998, the ethical practice of psychology in
organizations was published. It helps to guide I-O
psychologists.
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17. Challenges for I-O Psychology:
1. Globalization.
2. The virtual workplaces & employees.
3. Employee participation.
4. Changing technology and skills.
5. Diversity issues:
– Cultures and backgrounds.
– Immigrants.
– Gender.
– Language.
– Age etc.
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18. Problems for I-O Psychologists:
1. Pseudo-psychologists.
2. Certification.
3. Communication.
4. Research versus application.
5. Resistance to Change: I-O research reveals
that employees sometimes view the change
as:
– Threat.
– Company is trying to get them to work harder for
the same pay.
– Management is criticizing their past job
performance. (Schultz & Schultz, 2006) 18

19. Areas of I-O psychology:
1. Job Analysis.
2. Human Capital Planning.
3. Recruitment and Selection.
4. Performance Appraisal.
5. Training and Development.
6. Work Motivation.
7. Organizational Leadership.
8. Quality of Work Life.
9. Health & Safety.
10.Retirement programs.
11.Engineering and Consumer Psychology.
12.Research in I-O Psychology. (Mishra, 2018) 19

20. Society for Industrial & Organizational
Psychologists: (SIOP)
• In 1982, APA Division 14 incorporated as the Society for
Industrial and Organizational Psychology. The major purpose of
SIOP are following:
• To promote human welfare through the various applications of
psychology to all types of organizations (SIOP).
• To ensure the better goods or services, such as manufacturing
concerns, commercial enterprises, labor unions or trade
associations, and public agencies (SIOP)
• To determine the ethics of I-O psychologists and regulate
them.
• To determine the areas of I-O psychology.
I-O psychology is the science for the smarter workplaces (SIOP).
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21. References:
• Mishra, K.R. (2018). Industrial & Organizational
Psychology. Asmita Publication.
• Schultz, D. P. & Schultz, S. E. (2006).
Psychology & Work Today. (Eighth edition).
Pearson education, Inc. & Dorling Kindersley
Publishing Inc., New Delhi.
• www.siop.org/
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