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.