Chapter 1 Notes: Introduction to I/O Psychology

Industrial/Organizational Psychology is a branch of psychology that applies psychological principles to the workplace.
It examines factors that affect the people in an organization, as opposed to broader organizational aspects like marketing channels, transportation networks, and cost accounting.
It relies extensively on research, quantitative methods, and testing techniques.

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.
Organizational Psychology – creates an organizational structure and culture that will motivate employees to perform well, gives them the necessary information to do their jobs, and provides working conditions that are safe and result in an enjoyable and satisfying work/life environment.
1) Personnel Psychology – field concentrating on the selection and evaluation of employees; areas include analyzing jobs, recruiting applicants, selecting employees, determining salary levels, training employees, and evaluating employee performance.
2) Organizational Psychology – field investigating the behavior of employees within the context of an organization; concerns include leadership, job satisfaction, employee motivation, organizational communication, conflict management, organizational change, and group processes.
3) Human Factors/Ergonomics – field concentrating on the interaction between humans and machines, workplace design, and physical fatigue and stress; works with engineers and other technical professionals to make the workplace safer and more efficient; sample activities include designing the optimal way to draw a map, designing the most comfortable chair, and investigating the optimal work schedule.

1903 — Walter Dill Scott wrote The Theory of Advertising, in which psychology was first applied to business.
1910 — Hugo Munsterberg wrote Psychology and Industrial Efficiency; first published in English in 1913.
1911 — Scott wrote Increasing Human Efficiency in Business.
The term “industrial psychology” was seldom used prior to World War I; common terms included employment psychology, economic psychology, and business psychology.

John Watson – pioneer in behaviorism; served as a major in the U.S. Army in World War I and developed perceptual and motor tests for potential pilots.
Thomas Edison – emphasized the importance of selecting the right employees; in 1920 he created a 163-item knowledge test administered to over 900 employees; the test and passing score were so difficult that only 5% passed.
Frank Gilbreth & Lillian Mollet Gilbreth – improved productivity and reduced fatigue by studying the motions used by workers; they had 12 children and were the inspiration for the book and the movie “Cheaper by the Dozen.”

Hawthorne studies were conducted at the Hawthorne plant of the Western Electric Company in the Chicago area.
They demonstrated that employee behavior was complex and that interpersonal interactions between managers and employees played a tremendous role in employee behavior.
Initially designed to investigate factors such as lighting levels, work schedules, wages, temperature, and rest breaks on employee performance.
Hawthorne Effect – when employees change their behavior due solely to the fact that they are receiving attention or are being observed.

Increased use of fairly sophisticated statistical techniques and methods of analysis.
New interest in the application of cognitive psychology to industry.
Increased interest in the effects of work on family life and leisure activities.
Renewed interest in developing methods to select employees.

The 2000s saw rapid technological advances that impacted I/O psychology practices (e.g., data collection, analytics, online assessments, simulations).

As of 2009, the median salary was $74{,}500$ for Master’s level positions and $105{,}000$ for doctoral-level positions; the top 10% of I/O psychologists with doctoral degrees earned more than $200{,}000$ .

Graduate Record Exam (GRE) – a standardized admission test required by most psychology graduate schools.
Admission requirements vary, but typical minimums include an undergraduate GPA of at least $3.0$ and a GRE score of $1{,}000$ .

Terminal Master’s Degree Programs – programs that offer a master’s degree but not a PhD; best suited for students wanting an applied HR position in an organization.
Master’s Program – requires $40$ hours of graduate coursework; includes a Thesis to be completed in the second year; requires a comprehensive oral and/or written examination prior to graduation.
Doctoral Program – typically $5$ years to complete; common entrance requirements include a GPA of $3.5$ and a GRE score of $1{,}200$ ; the first two years focus on academic subjects.
Internship – a situation in which a student works for an organization (paid or volunteer) to gain practical work experience.
Practicum – a paid or unpaid position with an organization that provides practical work experience.
Dissertation – a formal research paper required of most doctoral students to graduate.