Module 1A: Introduction to Industrial-Organizational Psychology
Learning Objectives:
1. Recall and list key historical events and figures that have contributed to the
development of Industrial-Organizational (I-O) Psychology as a field.
2. Explain the historical context and factors that led to the emergence of Industrial
Organizational Psychology as a distinct branch of psychology.
I.
DEFINITION OF TERMS
INDUSTRIAL/ ORGANIZATIONAL
PSYCHOLOGY
Branch of psychology that applies the
principles of psychology to the workplace;
to enhance the dignity and performance of
human beings and the organization they
work in by advancing the science and
knowledge of human behavior
II. DIFFERENCE OF INDUSTRIAL
ORGANIZATIONAL PSYCHOLOGY
a. Industrial Psychology
-focuses on determining the
competencies needed to perform a
job, staffing the organization with
employees who have those
competencies, and increasing those
competencies through training
b. Organizational Psychology
-creates an organizational structure
and culture that will motivate
employees to perform well, give
them the necessary information to do their jobs,
and provide working conditions that are safe and result
in an enjoyable and satisfying work/ life environment.
III. Major Fields of I/O Psychology
a. Personnel Psychology
-study and practice in such areas as analyzing jobs, recruiting, applicants, selecting
employees, determining salary levels, training employees, and evaluating employee
performance.
-analyze jobs to obtain a complete picture of what each employee does, often
assigning monetary values to each position.
-training department of an organization and are involved in such activities as identifying
the organization’s training needs, developing training programs, and evaluating success.
b. Organizational Psychology
-concerned with the issues of leadership, job satisfaction, employee motivation,
organizational communication, conflict management, organizational change, and
group processes within an organization.
-create and conduct surveys of employee attitudes to get ideas about what employees
believe is an organization’s strengths and weaknesses.
c. Human Factors/ Ergonomics
-human factors concentrate on workplace design, human-machine interaction,
ergonomics, and physical fatigue and stress.Prepared by: Jasmine K. Evasco
-work with engineers and other technical professionals to make the workplace safer and
more efficient
IV. HISTORY OF INDUSTRIAL ORGANIZATION
The Early Years (1880–1920)
Before 1880, business owners managed workers with little concern for hiring, training, motivation,
or evaluation.
❖ No systematic management theories,
task organization, or reporting structures.
❖ No modern business schools; psychology was philosophical, not empirical.
❖ Late 1800s brought significant changes:
•
I/O psychology emerged as a subdiscipline leading early applications.
• Owners hired specialists for managing tasks and employees.
• Psychology emerged as a distinct discipline.
• Psychologists started applying behavioral insights to management problems.
What Were the Major Forces Shaping Work during the Early Years?
Industrial and Organizational Psychology emerged at the time of the transition of the U. S.
economy from an agrarian society to an industrial society. Mass production, the rise of the
corporation, consumerism, and massive immigration to the United States marked these early
years.
1. Industrialization and Mass Production
Late 1700s to early 1900s, marked by technological advancements like cotton gin, steam
engine, telephone, sewing machine, automobile, incandescent light bulb, and airplane.
a. Adam Smith's Influence: "Wealth of Nations" attributed prosperity to task division
principles.
b. Henry Ford's Impact: Introduced moving assembly line in 1913, boosting
productivity and reducing costs.
2. Massive Waves of Immigration
Factories in the booming cities of the United States needed workers. The demand for
labor led to a huge wave of immigration of Europeans to the United States (27.5 million
immigrants between 1865 and 1918, 89% from Europe) and a movement of farmworkers
within the United States to the cities to work in the mills. Throughout the world, but
especially in the United States, technological innovation transformed what had been a
predominately rural and agricultural existence into societies dominated by large cities
and manufacturing.
3. Rise of the Corporation
As important as technological innovation, the assembly line, and urbanization was the
rise of the large corporation. Prior to the industrial revolution, the dominant work
organization was a small entrepreneurial firm in which the owners were the managers. A
new organizational entity emerged to deal more efficiently with the larger scale of
operation that characterized industry in the mid- to late 1800s.
4. Rise of Consumerism
Consumerism is an economic and social phenomenon in which people are
driven to purchase more than they need. Consumerism has had critics (e.g., thePrepared by: Jasmine K. Evasco
sociologist Thorstein Veblen (1934/1899) coined the term conspicuous
consumption to refer to irrational buying behavior of people seeking status by
means of possessions). Despite the critics, there is no doubt that consumerism
fueled the economic growth and increasing prosperity of the late 1800s and
early 1900s. Supporters of consumerism argued that the creative waste of money
on goods that were luxuries fueled economic progress and raised the living
standard of all socioeconomic classes. The practice of purchasing on installment
plans became a popular form of buying. To create the demand that would lead
people to go beyond their means in making purchases, advertising and
marketing emerged as professions. Advertising changed from merely informing
consumers of the existence of various products to creating the need for these
products. Psychology became the source of ideas for advertising, and early
psychologists such as Walter Dill Scott and John B. Watson were pioneers in the
study of consumer behavior.
The Founders of I/O Psychology in 1900’s
1. Walter Dill Scott
-Student of Wilhem Wundt
-Theory of Advertising: a book considered to be the first dealing with Psychology and
aspect of work.
- He turned his attention to this area and composed the book The Psychology of
Advertising in Theory and Practice in 1903
2. Hugo Munsterberg
-Father of Industrial Psychology
- Psychology and Industrial Efficiency in 1913.
3. Robert Mearns Yerkes
Robert Mearns Yerkes made significant contributions to the field of
IndustrialOrganizational (I/O) psychology, particularly in the area of psychological testing
and assessment. He played a crucial role in the development and administration of
intelligence tests for the U.S. military during World War I, leading to the creation of the
Army Alpha and Beta tests that assessed cognitive abilities of army recruits. His work in
psychological testing laid the foundation for the use of standardized assessments in
various fields, including selection and placement of personnel in organizations.
-World War 1 marks the emergence of Industrial Psychology
•
Alfred Binet: French psychologist, designed first mental ability test, created IQ
concept.
-IQ Calculation: Mental age / chronological age (obsolete), but cognitive ability
testing remains.
-Objective Assessment: Binet aimed to provide fairer assessments than biased
teacher judgments.
-Cognitive Test Prototype: Binet's test prototype for mental testing, aimed to
avoid stigmatization.
•
WWI Application: Large-scale psychology application during WWI, processing
soldiers.
•
Psychological Examination of Recruits Committee: Formed by President Woodrow
Wilson in 1917.
•
Army Alpha and Beta Tests: Developed by committee for literate and illiterate
recruits.
•
Post-WWI: Cognitive ability testing became vital in hiring and college admissions.
•
Eugenics Movement: Used cognitive ability data for discrimination, racial
differences.
•
Racial Stereotypes: Eugenics claimed racial differences in cognitive ability and
attributes.
•
Transnational Phenomenon: Eugenics movement spread globally, influenced
many countries.
4. James Mckeen Catell (1921)
-created PSYHCOLOGICAL CORPORATION to advance psychology and promote its
usefulness to industry
-served as a place for companies to get reference check on prospective psychologists
5. Walter Bingham
-started the DIVISION of APPLIED PSYCHOLOGY for CARNEGIE INSTITUTE OF TECHNOLOGY
the first academic program in Industrial Psychology
6. Mary Parker Follett
-her theory was a forerunner of today’s teamwork concept and group cohesiveness
-her work focused on groups and advocated people oriented organizations
7. Frederick Winslow Taylor
-The mastermind of the idea scientific management
-Taylor (1910 suggested the following guidelines, which continuing influence today.
-Jobs should be carefully analyzed to identify the optimal way to perform them -
Employees should be hired according to the characteristics associated with success at a
task
-Employees should be trained at the job they will perform
-Employees should be rewarded for productivity to encourage high levels of
performance.
8. Kurt Zadek Lwein (1939)
-led the first publication of an empirical study of the effects of leadership syles which
initiated arguments for the use of participative management techniques.
-ECONOMIC PSYCHOLOGY/ EMPLOYMENT PSYCHOLOGY
Consumer Psychology
-is the study of why people buy things
-Consumer Panel: A consumer panel is a group of individuals selected by a business or
organization to provide input and opinion on products and services for research on
consumer behavior. Panel members are chosen to be representative of the general
population or a target group.
-Diary Panel: A diary panel is a research method used in market research and consumer
behavior studies, where participants regularly record their daily activities, thoughts, or
experiences in a diary or journal. This method provides insights into individuals' behaviors,
preferences, and trends over time.
9. Frank and Lilian Gilbreth
- pioneers in the field of Industrial-Organizational (I/O) psychology, focusing on time and
motion studies and the principles of scientific management. They made significant
contributions to improving work efficiency and productivity by analyzing and optimizing
work processes. Their pioneering work laid the foundation for modern ergonomic design
and workplace efficiency, influencing the development of techniques for improving
worker performance and organizational efficiency.
10. Henry Ford
- made a notable contribution to Industrial-Organizational (I/O) psychology through his
innovations in manufacturing and management practices. He introduced the moving
assembly line to automobile production, significantly increasing productivity and
revolutionizing mass production. Ford's emphasis on standardized processes, division of
labor, and efficient workflow greatly impacted industrial practices, leading to increased
efficiency, lower costs, and higher output. His approaches to production and
management influenced the development of organizational efficiency principles and
practices within the field of I/O psychology.11. Elton Mayo
-is known for his significant contributions to the field of Industrial-Organizational (I/O)
psychology, particularly through his involvement in the Hawthorne Studies. These studies,
conducted at the Western Electric Hawthorne Works in Chicago, explored the effects of
various workplace conditions on employee productivity and behavior. Mayo and his
colleagues found that social and psychological factors, such as attention from
supervisors and the sense of being part of a group, played a crucial role in influencing
employee performance and satisfaction. This led to a shift in focus within I/O psychology,
highlighting the importance of human factors, motivation, and social dynamics in
organizational settings.
Hawthorne Studies
-a series of studies at the western electric hawthorne works, a plant outside Chicago,
conducted from 1927 to 1932 under the leadership of psychologist and sociologist
-Workers’ feeling affect their work behavior
-It was a field experiment, demonstrated the value of research
-Worker perceptions of reality more important than objective reality
-Hawthorne effect, refers to the tendency of individuals to perform better because of
being singled out and made feel important.
Module 1A: Introduction to Industrial-Organizational Psychology
Learning Objectives:
1. Recall and list key historical events and figures that have contributed to the
development of Industrial-Organizational (I-O) Psychology as a field.
2. Explain the historical context and factors that led to the emergence of Industrial
Organizational Psychology as a distinct branch of psychology.
I.
DEFINITION OF TERMS
INDUSTRIAL/ ORGANIZATIONAL
PSYCHOLOGY
Branch of psychology that applies the
principles of psychology to the workplace;
to enhance the dignity and performance of
human beings and the organization they
work in by advancing the science and
knowledge of human behavior
II. DIFFERENCE OF INDUSTRIAL
ORGANIZATIONAL PSYCHOLOGY
a. Industrial Psychology
-focuses on determining the
competencies needed to perform a
job, staffing the organization with
employees who have those
competencies, and increasing those
competencies through training
b. Organizational Psychology
-creates an organizational structure
and culture that will motivate
employees to perform well, give
them the necessary information to do their jobs,
and provide working conditions that are safe and result
in an enjoyable and satisfying work/ life environment.
III. Major Fields of I/O Psychology
a. Personnel Psychology
-study and practice in such areas as analyzing jobs, recruiting, applicants, selecting
employees, determining salary levels, training employees, and evaluating employee
performance.
-analyze jobs to obtain a complete picture of what each employee does, often
assigning monetary values to each position.
-training department of an organization and are involved in such activities as identifying
the organization’s training needs, developing training programs, and evaluating success.
b. Organizational Psychology
-concerned with the issues of leadership, job satisfaction, employee motivation,
organizational communication, conflict management, organizational change, and
group processes within an organization.
-create and conduct surveys of employee attitudes to get ideas about what employees
believe is an organization’s strengths and weaknesses.
c. Human Factors/ Ergonomics
-human factors concentrate on workplace design, human-machine interaction,
ergonomics, and physical fatigue and stress.Prepared by: Jasmine K. Evasco
-work with engineers and other technical professionals to make the workplace safer and
more efficient
IV. HISTORY OF INDUSTRIAL ORGANIZATION
The Early Years (1880–1920)
Before 1880, business owners managed workers with little concern for hiring, training, motivation,
or evaluation.
❖ No systematic management theories,
task organization, or reporting structures.
❖ No modern business schools; psychology was philosophical, not empirical.
❖ Late 1800s brought significant changes:
•
I/O psychology emerged as a subdiscipline leading early applications.
• Owners hired specialists for managing tasks and employees.
• Psychology emerged as a distinct discipline.
• Psychologists started applying behavioral insights to management problems.
What Were the Major Forces Shaping Work during the Early Years?
Industrial and Organizational Psychology emerged at the time of the transition of the U. S.
economy from an agrarian society to an industrial society. Mass production, the rise of the
corporation, consumerism, and massive immigration to the United States marked these early
years.
1. Industrialization and Mass Production
Late 1700s to early 1900s, marked by technological advancements like cotton gin, steam
engine, telephone, sewing machine, automobile, incandescent light bulb, and airplane.
a. Adam Smith's Influence: "Wealth of Nations" attributed prosperity to task division
principles.
b. Henry Ford's Impact: Introduced moving assembly line in 1913, boosting
productivity and reducing costs.
2. Massive Waves of Immigration
Factories in the booming cities of the United States needed workers. The demand for
labor led to a huge wave of immigration of Europeans to the United States (27.5 million
immigrants between 1865 and 1918, 89% from Europe) and a movement of farmworkers
within the United States to the cities to work in the mills. Throughout the world, but
especially in the United States, technological innovation transformed what had been a
predominately rural and agricultural existence into societies dominated by large cities
and manufacturing.
3. Rise of the Corporation
As important as technological innovation, the assembly line, and urbanization was the
rise of the large corporation. Prior to the industrial revolution, the dominant work
organization was a small entrepreneurial firm in which the owners were the managers. A
new organizational entity emerged to deal more efficiently with the larger scale of
operation that characterized industry in the mid- to late 1800s.
4. Rise of Consumerism
Consumerism is an economic and social phenomenon in which people are
driven to purchase more than they need. Consumerism has had critics (e.g., thePrepared by: Jasmine K. Evasco
sociologist Thorstein Veblen (1934/1899) coined the term conspicuous
consumption to refer to irrational buying behavior of people seeking status by
means of possessions). Despite the critics, there is no doubt that consumerism
fueled the economic growth and increasing prosperity of the late 1800s and
early 1900s. Supporters of consumerism argued that the creative waste of money
on goods that were luxuries fueled economic progress and raised the living
standard of all socioeconomic classes. The practice of purchasing on installment
plans became a popular form of buying. To create the demand that would lead
people to go beyond their means in making purchases, advertising and
marketing emerged as professions. Advertising changed from merely informing
consumers of the existence of various products to creating the need for these
products. Psychology became the source of ideas for advertising, and early
psychologists such as Walter Dill Scott and John B. Watson were pioneers in the
study of consumer behavior.
The Founders of I/O Psychology in 1900’s
1. Walter Dill Scott
-Student of Wilhem Wundt
-Theory of Advertising: a book considered to be the first dealing with Psychology and
aspect of work.
- He turned his attention to this area and composed the book The Psychology of
Advertising in Theory and Practice in 1903
2. Hugo Munsterberg
-Father of Industrial Psychology
- Psychology and Industrial Efficiency in 1913.
3. Robert Mearns Yerkes
Robert Mearns Yerkes made significant contributions to the field of
IndustrialOrganizational (I/O) psychology, particularly in the area of psychological testing
and assessment. He played a crucial role in the development and administration of
intelligence tests for the U.S. military during World War I, leading to the creation of the
Army Alpha and Beta tests that assessed cognitive abilities of army recruits. His work in
psychological testing laid the foundation for the use of standardized assessments in
various fields, including selection and placement of personnel in organizations.
-World War 1 marks the emergence of Industrial Psychology
•
Alfred Binet: French psychologist, designed first mental ability test, created IQ
concept.
-IQ Calculation: Mental age / chronological age (obsolete), but cognitive ability
testing remains.
-Objective Assessment: Binet aimed to provide fairer assessments than biased
teacher judgments.
-Cognitive Test Prototype: Binet's test prototype for mental testing, aimed to
avoid stigmatization.
•
WWI Application: Large-scale psychology application during WWI, processing
soldiers.
•
Psychological Examination of Recruits Committee: Formed by President Woodrow
Wilson in 1917.
•
Army Alpha and Beta Tests: Developed by committee for literate and illiterate
recruits.
•
Post-WWI: Cognitive ability testing became vital in hiring and college admissions.
•
Eugenics Movement: Used cognitive ability data for discrimination, racial
differences.
•
Racial Stereotypes: Eugenics claimed racial differences in cognitive ability and
attributes.
•
Transnational Phenomenon: Eugenics movement spread globally, influenced
many countries.
4. James Mckeen Catell (1921)
-created PSYHCOLOGICAL CORPORATION to advance psychology and promote its
usefulness to industry
-served as a place for companies to get reference check on prospective psychologists
5. Walter Bingham
-started the DIVISION of APPLIED PSYCHOLOGY for CARNEGIE INSTITUTE OF TECHNOLOGY
the first academic program in Industrial Psychology
6. Mary Parker Follett
-her theory was a forerunner of today’s teamwork concept and group cohesiveness
-her work focused on groups and advocated people oriented organizations
7. Frederick Winslow Taylor
-The mastermind of the idea scientific management
-Taylor (1910 suggested the following guidelines, which continuing influence today.
-Jobs should be carefully analyzed to identify the optimal way to perform them -
Employees should be hired according to the characteristics associated with success at a
task
-Employees should be trained at the job they will perform
-Employees should be rewarded for productivity to encourage high levels of
performance.
8. Kurt Zadek Lwein (1939)
-led the first publication of an empirical study of the effects of leadership syles which
initiated arguments for the use of participative management techniques.
-ECONOMIC PSYCHOLOGY/ EMPLOYMENT PSYCHOLOGY
Consumer Psychology
-is the study of why people buy things
-Consumer Panel: A consumer panel is a group of individuals selected by a business or
organization to provide input and opinion on products and services for research on
consumer behavior. Panel members are chosen to be representative of the general
population or a target group.
-Diary Panel: A diary panel is a research method used in market research and consumer
behavior studies, where participants regularly record their daily activities, thoughts, or
experiences in a diary or journal. This method provides insights into individuals' behaviors,
preferences, and trends over time.
9. Frank and Lilian Gilbreth
- pioneers in the field of Industrial-Organizational (I/O) psychology, focusing on time and
motion studies and the principles of scientific management. They made significant
contributions to improving work efficiency and productivity by analyzing and optimizing
work processes. Their pioneering work laid the foundation for modern ergonomic design
and workplace efficiency, influencing the development of techniques for improving
worker performance and organizational efficiency.
10. Henry Ford
- made a notable contribution to Industrial-Organizational (I/O) psychology through his
innovations in manufacturing and management practices. He introduced the moving
assembly line to automobile production, significantly increasing productivity and
revolutionizing mass production. Ford's emphasis on standardized processes, division of
labor, and efficient workflow greatly impacted industrial practices, leading to increased
efficiency, lower costs, and higher output. His approaches to production and
management influenced the development of organizational efficiency principles and
practices within the field of I/O psychology.11. Elton Mayo
-is known for his significant contributions to the field of Industrial-Organizational (I/O)
psychology, particularly through his involvement in the Hawthorne Studies. These studies,
conducted at the Western Electric Hawthorne Works in Chicago, explored the effects of
various workplace conditions on employee productivity and behavior. Mayo and his
colleagues found that social and psychological factors, such as attention from
supervisors and the sense of being part of a group, played a crucial role in influencing
employee performance and satisfaction. This led to a shift in focus within I/O psychology,
highlighting the importance of human factors, motivation, and social dynamics in
organizational settings.
Hawthorne Studies
-a series of studies at the western electric hawthorne works, a plant outside Chicago,
conducted from 1927 to 1932 under the leadership of psychologist and sociologist
-Workers’ feeling affect their work behavior
-It was a field experiment, demonstrated the value of research
-Worker perceptions of reality more important than objective reality
-Hawthorne effect, refers to the tendency of individuals to perform better because of
being singled out and made feel important.
