Industrial psychology, Hawthorne experiment, X and Y theory

1. INDUSTRIAL AND ORGANIZATIONAL
PSYCHOLOGY
By: Mudit M. Saxena
Dept. of Mech. Engg.
ITE, Indus University

2. INDUSTRIAL AND ORGANIZATIONAL
PSYCHOLOGY
 Industrial-organizational psychology (also called I/O
psychology) is the scientific study of human behavior
in organizations and the work place.
 The specialty focuses on deriving principles of
individual, group and organizational behavior and
applying this knowledge to the solution of problems at
work.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

3. SPECIALIZED KNOWLEDGE
 Specialized knowledge and training in the science of
behavior in the workplace requires in-depth
knowledge of organizational development, attitudes,
career development, decision theory, human
performance and human factors, consumer behavior,
small group theory and process, criterion theory and
development, job and task analysis and individual
assessment.
 In addition, the specialty of industrial-organizational
psychology requires knowledge of ethical
considerations as well as statutory, administrative,
and case law and executive orders as related to
activities in the workplace.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

4. SCOPE
 The specialty of Industrial Organizational Psychology
addresses issues of recruitment, selection and
placement, training and development, performance
measurement, workplace motivation and reward
systems, quality of work life, structure of work and
human factors, organizational development and
consumer behavior.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

5. SKILLS AND PROCEDURES
UTILIZED
 I/O Psychologists are scientist-practitioners who have
expertise in the design, execution and interpretation of
research in psychology and who apply their findings to help
address human and organizational problems in the context
of organized work.
 Work of I/O psychologists:
 Identify training and development needs;
 Design and optimize job and work and quality of work life;
 Formulate and implement training programs and evaluate their
effectiveness;
 Train employees;
 Develop criteria to evaluate performance of individuals and
organizations; and
 Assess consumer preferences, customer satisfaction and
market strategies.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

6. POPULATION SERVED
 The distinct focus of I/O psychology is on human
behavior in work settings. Therefore, the populations
affected by the practice of I/O psychology include
individuals in and applicants to business, industry, labor,
public (including non-profit), academic, community and
health organizations.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

7. THE OBJECTIVES OF
INDUSTRIAL PSYCHOLOGY
 The main aim of Industrial Psychology is to study the human
behaviour and to suggest various ways and means lo improve the
efficiency of workers in industries.
The important objectives of industrial psychology are as under:
 (1) Selection of proper man—By the use of systematic depth
interviews and psychological tests such as intelligence, aptitude,
skills, abilities and interest tests, the personnel characteristics of the
persons are measured and proper man is selected for and placed on
the job.
 (2) Proper distribution of work—Another aim of industrial psychology
is the proper distribution of work, according to the ability and
aptitude of the employees so that they feel themselves satisfied and
the employer may also get higher production at minimum cost.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

8. THE OBJECTIVES OF
INDUSTRIAL PSYCHOLOGY
 (3) Minimising the wastage of human force—
Industrial psychology aims at minimising the wastage of
human power due to fatigue, illness, accidents etc. It
studies several psychological factors causing fatigue or
accidents and suggests measures for preventing the
accidents or minimising fatigue. The techniques of
motivation and morale are used for this purpose.
 (4) Promoting labour welfare—Industrial Psychology
promotes labour welfare through job satisfaction,
increase in labour efficiency, health and incentive
provisions.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

9. THE OBJECTIVES OF
INDUSTRIAL PSYCHOLOGY
 (5) Improvement in human relations—The main aim of
Industrial Psychology is to improve the human relations in
industry.
 It is believed that if the individual employee is taken care of
problems of motivation, productivity will be automatically
settled.
 Human relation may be described as the relations or
contracts among individuals in an organisation and the
group behaviour that emerges from these relationships and
 Industrial Psychology has made significant contribution to
the sphere of industrial management by developing
concepts and techniques of leadership, supervision,
communication and employee participation in management.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

10. THE OBJECTIVES OF INDUSTRIAL
PSYCHOLOGY
 (6) Improvement in Industrial Relations—
Industrial Psychology studies the attitude of
employers and employees and offers suggestion
to improve the labour relations in industries.
 It assumes that all individuals differ from each
other in degree though not in kind and,
therefore, different measures are adopted in
solving the problems like bringing promotions,
transfers etc. relating to each individual.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

11. THE OBJECTIVES OF INDUSTRIAL
PSYCHOLOGY
 (7) Maximum production—The chief aim of an
organisation is to get the best results from the available
resources.
 Industrial Psychology helps in achieving the target. The
production is automatically increased if proper selection
is made; the work is distributed properly; industrial
relations are improved and human relations are
promoted.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

12. THE HAWTHORNE
STUDIES
Studies of how characteristics of the work setting
affected worker fatigue and performance at the
Hawthorne Works of the Western Electric Company from
1924-1932.
The Hawthorne Studies:
 Worker productivity was measured at various levels of
light illumination.
 Researchers found that regardless of whether the
light levels were raised or lowered, worker
productivity increased
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

13. THE HAWTHORNE STUDIES
Human Relations Implications
Hawthorne effect — workers’ attitudes toward their managers
affect the level of workers’ performance
Human relations movement – advocates that supervisors be
behaviorally trained to manage subordinates in ways that
elicit their cooperation and increase their productivity
Implications
Behavior of managers and workers in the work setting is as
important in explaining the level of performance as the
technical aspects of the task.
Demonstrated the importance of understanding how the
feelings, thoughts, and behavior of work-group members
and managers affect performance
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

14. THEORY X AND THEORY Y
Douglas McGregor proposed the two different sets of
assumptions about workers.
Theory X assumes:
 The average worker is lazy, dislikes work and will do
as little as possible.
 Workers have little ambition and wish to avoid
responsibility
 Managers must closely supervise and control
through reward and punishment.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

15. THEORY X AND THEORY Y
Theory Y assumes:
workers are not lazy, want to do a good job and the job
itself will determine if the worker likes the work.
Managers should allow workers greater latitude, and
create an organization to stimulate the workers.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

16. THEORY X VS. THEORY Y
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

17. MANAGEMENT SCIENCE
THEORY
 Contemporary ( Modern ) approach to
management that focuses on the use of
rigorous quantitative techniques to help
managers make maximum use of organizational
resources to produce goods and services.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

18. MANAGEMENT SCIENCE
THEORY
 Quantitative management — utilizes linear and
nonlinear programming, modeling, simulation, queuing
theory and chaos theory.
 Operations management —techniques used to
analyze any aspect of the organization’s production
system.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

19. MANAGEMENT SCIENCE
THEORY
Total Quality Management (TQM)
 Focuses on analyzing input, conversion, and output
activities to increase product quality.
Management Information Systems
(MIS)
 Provides information vital for effective decision
making.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

20. ORGANIZATIONAL
ENVIRONMENT THEORY
Organizational Environment –
The set of forces and conditions that operate beyond an
organization’s boundaries but affect a manager’s ability
to acquire and utilize resources
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

21. THE OPEN-SYSTEMS VIEW
Open System
 A system that takes resources for its external
environment and transforms them into goods and
services that are then sent back to that environment
where they are bought by customers.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

22. Figure 2.4
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

23. THE OPEN-SYSTEMS VIEW
 Inputs: the acquisition of external resources to produce
goods and services.
 Conversion: transforms the inputs into outputs of
finished goods and services.
 Output: the release of finished goods and services to
its external environment.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

24. CLOSED SYSTEM
 A self-contained system that is not affected
by changes in its external environment.
 Likely to experience entropy and lose its
ability to control itself
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

25. SYSTEMS
 Synergy – the performance gains that result
from the combined actions of individuals and
departments
 Possible only in an organized system
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

26. CONTINGENCY THEORY
 ―There is no one best way to organize‖
 The idea that the organizational structures and
control systems manager choose depend on are
contingent on characteristics of the external
environment in which the organization operates.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

27. CONTINGENCY THEORY
Figure 2.5
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

28. TYPE OF STRUCTURE
Mechanistic Structure
Mechanistic organizational structures thrive in
environments that are stable and predictable. It is
characterized by a highly complex structure, a high
degree of formulation, and a high degree of
centralization. A mechanistic organizational structure is
highly centralized using a top-down approach.
 Authority is centralized at the top.
 Emphasis is on strict discipline and order
 Employees are closely monitored and managed.
 Can be very efficient in a stable environment.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

29. TYPE OF STRUCTURE
Organic Structure
 Authority is decentralized throughout the organization.
 Departments are encouraged to take a cross-departmental or
functional perspective it works best when environment is
unstable and rapidly changing.
 An organic organization is a type of informal organization originally
described by British theorists Tom Burns and George Stalker.
According to Burns and Stalker, an organic organization is one that
is very flexible and is able to adapt well to changes. Its structure is
identified as having little job specialization, few layers of
management, decentralized decision-making, and not much direct
supervision.
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By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University

30. ASSIGNMENT - 15
Q 1. What is industrial /Organizational psychology ?
Q 2. What is the scope of industrial psychology ?
Q 3. What is the work of I/O psychologist ?
Q 4. What are the important objectives of Industrial
Psychology ? Explain in detail.
Q 5. Compare theory ―X‖ and theory ―Y‖
Q 6. Explain the Hawthorne Study.
By: Mudit M. Saxena, Dept. of Mech. Engg., ITE, Indus University
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