This document provides an overview of corporate/industrial psychology and organizational behavior topics. It discusses how industrial-organizational psychology applies psychological principles to improve workplace performance and interactions. Conflict in organizations is examined, outlining potential causes of conflict and different conflict management styles. Negotiation processes are also summarized, distinguishing between distributive and integrative bargaining approaches.

1. CORPORATE/
INDUSTRIAL PSYCHOLOGY
BY- Unnati Shah

3. • Organization psychology involves the
application of various psychological
principles in the work arena.
• It deals with human interaction in the
workplace and how interaction can be done
in a better manner to increase work
efficiency, communication and overall
functioning of any organization.

4. • Industrial and organizational psychology (also known
as I–O psychology, occupational psychology, work
psychology or IWO psychology) is the scientific study
of human behaviour in the workplace and
organizations.
• Industrial and organizational psychologists contribute
to an organization's success by improving the
performance, satisfaction, safety, health and well-
being of its employees.
• An I–O psychologist conducts research on employee
behaviours and attitudes, and how these can be
improved through hiring practices, training programs,
feedback, and management systems.
• I–O psychologists also help organizations transition
among periods of change and development.

5. • As of 2012, the field of industrial and organizational
psychology covers a huge range of workplace issues,
including employee recruitment, hiring, training and
retention, as well as workplace diversity, reducing
absenteeism, eliminating harassment and discrimination,
encouraging teamwork, and increasing worker motivation.

6. Role of Corporate Psychologists
• Design activities and develop schedules that enable better
social interaction between people inside the organization.
• Develop training principles and procedures, Procedures for
selection, also design appraisal systems through which
interaction inside the organization can be enhanced.
• Tackling problems related to employee turnover and morale.
• Teach management about how to select the right person for a
particular job requirement and also set out the criteria
through which they can be promoted.
• Conduct a lot of research.

7. • Develop tests which assess employee skills and ascertain their
problem solving abilities for the purpose of improving office
efficiency.
• These tests will not just ascertain an employees skills, but also
their mental abilities and emotional strengths.
• The aim in using these tests is not just to hire the right
personnel, but to also ensure that those who are hired are not
ones who are likely to quit in the future.
• Develop coaching tolls that will help to improve relationships
between co-workers and also to help them cope with
situations that are stressful.

8. SKILLS
• Active Listening .
• Reading Comprehension .
• Complex Problem Solving .
• Judgment and Decision Making .
• Speaking.
• Critical Thinking.
• Systems Analysis.
• Systems Evaluation.
• Writing.
• Monitoring.

10. • Conflict is the psychological and behavioral
reaction to a perception that another person is
either keeping you from reaching a goal,
taking away your right to behave in a
particular way, or violating the expectancies
of a relationship.

11. • Traditional View of Conflict
–The belief that all conflict is harmful
and must be avoided
–Prevalent view in the 1930s-1940s

12. • One of the key important component of conflict is
perception.
• Conflict is often the result of one persons
misperception of another’s goals, intensions, or
behavior.
• Example- If two people may share the same goals,
but 1 person perceives that their goals are different,
the possibility of conflict increases.

13. • The dysfunctional conflict keeps people from working
together, lessen productivity, spreads to other areas, and
increases turnover.
• Dysfunctional conflict usually occurs when one or both
parties feel a loss of control due to the actions of the other
party and has its greatest effect on team performance.
• Though all conflicts are dysfunctional, there are times when a
moderate degree of conflict arises called as functional
conflict.
• Functional conflict, moderate levels of conflict can stimulate
new ideas, increase friendly competition and increase team
effectiveness.
• Moderate conflicts reduce the risk of much larger conflicts.

14. Conflict Process

16. STAGE 1- Potential Opposition or
Incompatibility
• Communication
– Semantic difficulties, misunderstandings, over communication and
“noise”
• Structure
– Size and specialization of jobs
– Jurisdictional clarity/ambiguity
– Member/goal incompatibility
– Leadership styles (close or participative)
– Reward systems (win-lose)
– Dependence/interdependence of groups
• Personal Variables
– Differing individual value systems
– Personality types

17. STAGE 2- Cognition and
Personalization
• Important stage for two reasons:
1. Conflict is defined
• Perceived Conflict
– Awareness by one or more parties of the existence of
conditions that create opportunities for conflict to arise
2. Emotions are expressed that have a strong
impact on the eventual outcome
• Felt Conflict
– Emotional involvement in a conflict creating anxiety,
tenseness, frustration, or hostility

18. STAGE 3- Intentions
• Intentions
– Decisions to act in a given way
– Note: behavior does not always accurately reflect
intent
• Dimensions of conflict-handling intentions:
– Cooperativeness
• Attempting to satisfy
the other party’s
concerns
– Assertiveness
• Attempting to satisfy
one’s own concerns

20. Stage 4- Behavior
• Conflict Management
– The use of resolution and stimulation techniques
to achieve the desired level of conflict
• Conflict-Intensity Continuum

21.  Conflict Resolution
Techniques
– Problem solving
– Superordinate goals
– Expansion of resources
– Avoidance
– Smoothing
– Compromise
– Authoritative command
– Altering the human
variable
– Altering the structural
variables
 Conflict Stimulation
Techniques
– Bringing in outsiders
– Communication
– Restructuring the
organization
– Appointing a devil’s
advocate

22. Stage 5- Outcomes
• Functional
– Increased group performance
– Improved quality of decisions
– Stimulation of creativity and
innovation
– Encouragement of interest
and curiosity
– Provision of a medium for
problem solving
– Creation of an environment
for self-evaluation and
change
• Dysfunctional
– Development of discontent
– Reduced group effectiveness
– Retarded communication
– Reduced group cohesiveness
– Infighting among group
members overcomes group
goals
• Managing Functional
Conflict
– Reward dissent and punish
conflict avoiders

23. Types of conflicts

24. 1. Interpersonal Conflict-
• Occurs between 2 individuals.
• Example- In the work place interpersonal conflict
may occur between two coworkers, a supervisor
and a subordinate, an employee and customer, or
an employee and a vendor.

25. 2. Individual-Group Conflict
• Occurs between an individual and a group.
• It occurs when the individuals needs are different
from the groups needs, goals or norms.
• Example – basketball, football etc.

26. 3. Group-Group Conflict-
Occurs between two or more groups.
Example- Banks.
They compete not only with other banks but
also with their branches for getting more
customers.

27. Causes of conflict

28. CAUSES
1. Competition for resources.
2. Task Interdependence.
3. Jurisdictional Ambiguity.
4. Communication Barriers.
5. Beliefs.
6. Personality.

29. 1. Competition for resources-
• When demand for a resource exceeds its supply,
conflict occurs.
• Example- in college students and faculty fight over
parking space. Once resolved, juniors and seniors
fight over the same.

30. 2. Task interdependence-
• When performance of one small group members
depends on the performance of other group
members.
• When 2 groups who rely on each other have
conflicting goals.
• Examples- The production department in a
company wants to make high volume of goods,
where as the quality department wants only good
quality goods. Neither departments can work
without the help of each other.

31. 3. Jurisdictional Ambiguity-
• Found when geographical boundaries or lines or
authority are unclear.
• Example- 2 employees might argue about who’s
job is it to receive emails, 2 supervisors might fight
over who is in charge when the vice- president is
out of town, etc.

32. 4. Communication Barriers-
• Barriers to inter-personal communication can be
physical, such as separate locations on different
floors or in different buildings, cultural, such a
different languages, or different customs, or
psychological, such as different styles or
personalities.

33. 5. Beliefs-
• Conflicts occur when individuals or groups believe
that they are:
1. Superior to other ppl or groups
2. Have been mistreated by others
3. Are vulnerable to others
4. Cannot trust themselves
5. Are helpless or powerless

34. 6. Personality-
• Conflict is the result of ppl with incompatible
personalities working together.
• Example- It has been suggested that ppl who are
dogmatic and authoritarian and have low self-
esteem are involved in more conflicts than open
minded ppl who feel good about themselves.

35. • Ppl with high needs for perfection are obsessed with
completing task correctly.
• They agree with anyone or any idea.
• These personality types include:
• Whiner- constantly complains about the situations
but never tries to change it.
• No person- believe that nothing will ever work and
thus disagrees with ever situation or idea.
• Nothing person- responds to difficult situation by
not doing or saying nothing. Simply gives up.

36. • Ppl with high needs for approval are obsessed with
being liked.
• Their behavior is centered on gaining approval.
• Yes people- agrees to everything. Often agrees to so
much that they cannot keep up the commitments.
• Maybe person- avoids conflict by never taking a
stand on any issues. Takes decisions, offers opinions,
and commits to any course of action.

37. • Ppl with high needs for attention are obsessed with
being appreciated.
• They behave in a manner that will get them noticed.
• Grenade- throws tantrum when they feel they aren’t
appreciated. Yells, swears, rants and raves.
• Friendly sniper- gets attention by poking fun at
others.
• Think-they-know-it-all- exaggerates, lies and gives
unwanted advice to gain attention.

38. Conflicting Styles

39. • Most ppl have a particular style they use when faced
with conflicts.
1. Avoiding Style-
• Ppl using this choose to ignore the conflict and
hope it will resolve itself.
• Not the best way to handle every type of situation.
• Withdrawal from the situation is one of the easiest
ways to handle it.

40. Triangl-ing- interesting form of avoidance.
• Occurs when the situation is discussed with
the third party hoping that they will talk to
the second party and resolve the conflict.

41. 2. Accommodating Style-
When a person is so intent on
settling a conflict that he gives
in and risks hurting himself.
• Ppl who use this are considered
cooperative but weak.

42. 3. Forcing Style-
A person who handles conflict in a win-lose fashion
and does what it takes to win, with little regard for
the other person.
• Appropriate in times of emergencies, when there is
violation of rules, ethics and policies.
• Winning at all costs strategy occurs especially when
a person regards his side as correct and other person
is regarded as an enemy.

43. 4. Collaborating Style-
• Individual wants to win but also wants to see the
other person win.
• These ppl seek win-win solutions.
• Best style to use.
• Time consuming and may not be appropriate during
emergencies.

44. 5. Compromising style
• User tries to adopt give-and-take tactics that enables
each side to get some of what it wants but not every-
thing it wants.
• This compromising involves negotiation and
bargaining.
• Negotiation begins with each side making an offer
that is much more than what it really wants.

45. • According to Schatzki, a settlement range is between
LAR Least Acceptable Result and MSP Maximum
Supportable Position for each side.
• LAR is the lowest settlement that a person is willing
to make. Must be realistic and must satisfy a person
real needs.
• MSP is the best possible settlement. Reasonably
supported with logic and facts.

46. • An important influence on the outcome of a negotiation is
called best alternative to a negotiated agreement. BATNA)
• BATNA is the best alternative that negotiators have if they
cant reach an agreement.
• Example- If I’m buying a car and I already have an offer of
$26,000 from one dealer (my BATNA) my least acceptable
result when I negotiate with a new dealer will be less than
$26,000. If the dealer wont go lower, I can walk away knowing
I already have a better offer. If the dealer is aware of BATNA,
he will reduce the initial offer because he knows that an initial
offer greater than my BATNA will not be effective.

47. • Seitz and Modica (1980) suggested 4 indicators that tell when
the negotiations are coming to an end so that each side can
prepare its final offer:
1. Number of counterarguments reduce.
2. Positions of the two sides appear closer together.
3. Other side talks about final agreement.
4. Other side appears willing to begin putting things in writing.

48. Determining Conflict Styles
• A persons method of dealing with conflict at work
can be measured by the Rahim Organizational
Conflict Inventory 2- ROCI 2 or the Cohen Conflict
Response Inventory- CCRI.

50. Prior to conflict occurring-
• Organizations should have set policies to handle
conflicts.
• Employees should first try to resolve their own
conflicts and if not successful can utilize third-party
intervention.
• Employees should receive training- causes, ways to
prevent, handling, and resolving the conflicts.

51. When conflict first occurs-
• The 2 parties should be encouraged to use the conflict
resolution skills they learned in training to resolve the
conflict on their own.
• A key to resolving conflict is to reduce tension and increase
trust between the 2 parties.
• The 2 parties meet in private to address the problem. The 2
parties sit down and the employee who arranged the meeting
explains his perception of the problem. The second party then
responds. If he agrees, he might apologize and stop the
behavior. If he disagrees, he would explain his perception of
the problem.
• The 2 parties then exchange views till they come to a mutual
agreement. If the 2 don’t agree, its called a dispute and the
parties need a 3rd person for intervention this is called
cooperative problem solving.

52. Third-party Intervention-
• If conflict cannot be resolved by the 2
parties involved, it is often a good idea to
seek help, third party intervention. This is
usually provided through mediation or
arbitration.

53. • Four Basic Third-Party Roles
– Mediator
• A neutral third party who facilitates a negotiated solution by using
reasoning, persuasion, and suggestions for alternatives
– Arbitrator
• A third party to a negotiation who has the authority to dictate an
agreement.
– Conciliator
• A trusted third party who provides an informal communication link
between the negotiator and the opponent
– Consultant
• An impartial third party, skilled in conflict management, who
attempts to facilitate creative problem solving through
communication and analysis

54. Negotiation
• A process in which two or
more parties exchange
goods or services and
attempt to agree on the
exchange rate on them.
• The terms bargaining and
negotiation is used
interchangeably.

55. • Two General Approaches:
– Distributive Bargaining
• Negotiation that seeks to divide up a fixed amount of
resources; a win-lose situation
– Integrative Bargaining
• Negotiation that seeks one or more settlements that can
create a win-win solution

56. Distributive versus Integrative
Bargaining

57. NEGOTIATION PROCESS

58. Individual Differences in Negotiation
Effectiveness
• Personality Traits
– Extroverts and agreeable people are weaker at
distributive negotiation; disagreeable introverts are
best
– Intelligence is a weak indicator of effectiveness
• Mood and Emotion
– Ability to show anger helps in distributive bargaining
– Positive moods and emotions help integrative
bargaining
• Gender
– Men and women negotiate the same way, but may
experience different outcomes

59. References
• Industrial/Organizational Psychology- Michael G.
Aamodt.
• Organizational Behavior- Stepjen P. , Timothya A. ,
& Seema Sanghi.
• http://ezinearticles.com/?The-Nature-and-Scope-
of-Organizational-Psychology&id=5295782
• http://work.chron.com/scope-industrial-
psychology-10303.html
• http://www.onetonline.org/link/summary/19-
3032.00