Industrial Psychology

Presented By
SKEP VICTOR R. TENORIO, LPT, MS,DP,DS
 Definition
 The branch of applied psychology that is concerned with efficient
management of an industrial labor force and especially with
problems encountered by workers in a mechanized environment.

 Industrial psychology looks at behavior that occurs within the

workplace. Also called industrial-organizational (I/O) psychology,
people who work in this field might study worker personalities
and performances, or the interactions between the individuals
within a business or organization.
The Basics
 The Society for Industrial and Organizational
Psychology (SIOP) as "the scientific study of the workplace.“

 When employed to advise a company, the psychologist will

draw on his or her knowledge about psychological areas and
theories particularly important in the workplace.

 study of employees, workplaces, and organizations. Industrial

and organizational psychologists contribute to an
organization's success by improving the workplace and the
performance, satisfaction and well-being of its people.
Importance of Industrial Psychology
 It looks about the biological side of behavior (which means it
really discovers what chemicals aren't at proper levels in a
person with a chemical imbalance).
 Psychology plays major role in improving human relations and
also in solving industrial dispute.
 Psychology also helps in explaining difference in individuals
relating to interests, aptitudes, specialties, intelligence etc.
 Psychological also helps an individual in dealing with particular
conditions or environment while working and so helps in better
adjustment and so relief of tension. Psychology also helps in
personal adjustment for prevailing environment
History of Industrial Psychology
 Industrial Psychology is almost as old as Psychology itself.
Psychology came about in 1879 in the laboratory of Wilhelm
Wundt in Germany and William James at Harvard.

 Both of them were philosophers and physicians fascinated with

the mind-body debate.

 The older discipline of philosophy could not alone deal with

this debate, more room and new tools were needed, giving way
to Psychology. Texts applying psychology to business first
appeared in 1903; the first Industrial-Organizational (I/O)
psychology text appeared in 1910 (Landy, 1997).
Scope of Industrial Psychology
 Personnel Selection: Selection of employees, executives.
Developing instruments of personnel selection.
 Personnel Development: Developing means of appraisal of
performance for all, measurement of attitudes, employee
counseling for better adjustment with the environment.
 Human Engineering: Suggesting changes, innovations in
machines/ technology / operations/equipment for greater ease
in operation in least possible human energy.
 Productivity Study: Activities of lessening worker fatigue,
improving work environmental conditions, Light, ventilation,
work arrangements etc to maximize efficiency.
 Management:Activities involving development of managerial
skills.
 Accident Prevention and Safety Measures
 Labour Relations
Work Behavior
 The psychology of work behavior is one form of industrial
psychology. Attitudes of employees as related to their
performance is a main theme.
 Variables in employee personalities and abilities are listed and
situational and background differences are studied.
 The industrial psychologist also studies human mental and
physical abilities, administering tests and assessing values and
establishing job-related criteria.
 Human-error factors also are monitored, as are costs and
causes of accidents.
Management
 Many management skills fall under the umbrella of industrial
psychology. Managers must be educated concerning the area
of employee supervision.
 Motivational tactics are imperative to the success of industry,
thus the industrial psychologist also may devise financial or
other incentives.
 Determination of training needs and abilities to resolve conflict
are skills that managers would learn in their study of industrial
psychology.
Workplace Interactions
 Industrial psychology often focuses on worker interaction and
satisfaction.
 Employees who work together well and are happy in their jobs
can significantly strengthen a business or organization.
 Common workplace issues might include disruptive employee
behavior, lack of teamwork, or personality clashes between
employees.
Motivation
Motivation is an area of psychology that has gotten a great deal
of attention, especially in the recent years.

Motivated employees are happy, productive and loyal, and

that's what companies want. Motivation at work can be
used as a basis for creating practices, procedures and
processes to affect employee motivation.
Theories
Expectancy Theory
 The Expectancy theory states that employee’s motivation is an
outcome of how much an individual wants a reward (Valence),
the assessment that the likelihood that the effort will lead to
expected performance (Expectancy) and the belief that the
performance will lead to reward (Instrumentality).
 In short, Valence is the significance associated by an individual
about the expected outcome. It is an expected and not the
actual satisfaction that an employee expects to receive after
achieving the goals.
Expectancy Theory
Instrumentality
Instrumentality is a personality trait associated with the ability
to be focused in a competitive way, objective and to make
decisions easily.
The instrumentality is the belief that if one does meet
performance expectations, he or she will receive a greater
reward. This reward may come in the form of a pay increase,
promotion, recognition or sense of accomplishment. It is
important to note that when it is perceived that valued rewards
follow all levels of performance, then instrumentality is low. For
example, if a professor is known to give everyone in the class
an "A" regardless of performance level, then instrumentality is
low.
Expectancy Theory
Valance
The valance refers the value the individual personally places on
the rewards. This is a function of his or her needs, goals,
values and Sources of Motivation.
Expectancy Theory

Video 2
Expectancy Flow
Goal Settings Theory
 Goal-setting theory refers to the effects of setting goals on
subsequent performance.
 Researcher Edwin Locke found that individuals who set
specific, difficult goals performed better than those who set
general, easy goals.
 Locke proposed five basic principles of goal-setting: clarity,
challenge, commitment, feedback, and task complexity.
 One of the most effective ways to stay motivated is to set goals
for yourself. However, the type and quality of goals you set
affects how well they will work.
Goal Settings Theory

Video 3
Effective goal-setting principles
 Clarity: A clear, measurable goal is more achievable than one
that is poorly defined. In other words, be specific! The most
effective goals have a specific timeline for completion.
 Challenge: The goal must have a decent level of difficulty in
order to motivate you to strive toward the goal.
 Commitment: Put deliberate effort into meeting this goal. Share
your goal with someone else in order to increase your
accountability to meet that goal.
Effective goal-setting principles
Conti…
 Feedback: Set up a method to receive information on your
progress toward a goal. If losing 30 pounds in four months
turns out to be too hard, it is better to adjust the difficulty of
your goal mid-way through the timeline than to give up entirely.
 Task complexity: If a goal is especially complex, make sure you
give yourself enough time to overcome the learning curve
involved in completing the task. In other words, if a goal is
really tough, make sure you give yourself some padding to give
you the best chance at succeeding.
S.M.A.R.T. Method
The S.M.A.R.T. method assumes that if you set a goal that is:
 Specific
 Measurable
 Attainable
 Relevant
 Time bound
Equity theory
 Equity theory is a theory that attempts to explain relational
satisfaction in terms of perceptions of fair/unfair distributions
of resources within interpersonal relationships.

 The core of the equity theory is the principle of balance or

equity. As per this motivation theory, an individual’s motivation
level is correlated to his perception of equity, fairness and
justice practiced by the management. Higher is individual’s
perception of fairness, greater is the motivation level and vice
versa.
Equity theory Conti…
 People are happiest in relationships where the give and take
are about equal. If one person is getting too little from the
relationship, then not only are they going to be unhappy with
this—the person getting the lion’s share will also be feeling
rather guilty about this imbalance. This is reinforced by strong
social norms about fairness.
 In short-term relationships we tend to trade in things, such as
loaning small sums or buying beers. In longer-term
relationships the trade is more emotional.
 Overall, though, it is still better to be getting more than less—
although you could feel better about the relationship, the
benefits you get from it can buy you compensatory happiness
elsewhere.
 Equity Theory is also called Inequity Theory as it is the unequal
difference that is often the area of interest.
Industries and Organizations
Psychology of Workplace
 Positive psychology in the workplace is about shifting attention
away from negative aspects such as work violence, stress,
burnout, and job insecurity.
 Positive psychology can help create a working environment
goal of promoting positive affect in its employees.
 Employers who understand the link between employee well-
being and organizational performance strived to maintain a
work environment characterized by openness, fairness, trust,
and respect, even when difficult actions were required.
 These employers are positioned for success in the economic
recovery and will have a distinct competitive advantage in their
ability to attract and retain the very best employees.
Psychology of Workplace Conti…
 Employee Involvement

Efforts to increase employee involvement empower workers,

involve them in decision-making and give them increased job
autonomy. Employee involvement programs can increase job
satisfaction, employee morale, and commitment to the
organization as well as increase productivity, reduce turnover
and absenteeism and enhance the quality of products and
services.
Psychology of Workplace Conti…
 Work-Life Balance

Programs and policies that facilitate work-life balance generally

fall into two categories: flexible work arrangements and
resources to help employees manage their non-work demands.
Conflict between work and other life responsibilities can
diminish the quality of both work and home life for employees,
which in turn can affect organizational outcomes such as
productivity, absenteeism and turnover. Efforts to help
employees improve work-life balance can improve morale,
increase job satisfaction and strengthen employees’
commitment to the organization.
Psychology of Workplace Conti…
 Employee Recognition

Employee recognition efforts reward employees both

individually and collectively for their contributions to the
organization. Recognition can take various forms: formal and
informal, monetary and non-monetary. By acknowledging
employee efforts and making them feel valued and appreciated,
organizations can increase employee satisfaction, morale and
self-esteem. Additionally, the organization itself may benefit
from greater employee engagement and productivity, lower
turnover and the ability to attract and retain top-quality
employees.
Psychology of Workplace Conti…
 Human resources
Human resources is the set of individuals who make up
the workforce of an organization, business sector or
an economy. "Human capital" is sometimes used
synonymously with human resources, although human
capital typically refers to a more narrow view; i.e., the
knowledge the individuals embody and can contribute to an
organization.
Prison Psychology
 Prison psychology relates to the application of psychology
within a correctional setting.
 Writing in his article "Ethical Concerns Within the Practice of
Correctional Psychology", Michael Decaire notes that
"The correctional psychologist’s primary mission is to assist in
offender rehabilitation and reintegration. The psychologist
enhances staff and inmate safety by promoting a healthy
institutional environment."
Psychology in Schools
Treatment of children's and adolescents' behavioral and
learning problems, to teachers, politicians and other
responsible persons in the institutionalized education systems
with pedagogic, didactic or systemic-organizational problems,
sometimes also integrating parents of school children to find
common solutions.
Job Satisfaction
 Job satisfaction is how content an individual is with his or her
job.
 Scholars and human resource professionals generally make a
distinction between affective job satisfaction and cognitive job
satisfaction.
 Affective job satisfaction is the extent of pleasurable emotional
feelings individuals have about their jobs overall, and is
different to cognitive job satisfaction which is the extent of
individuals’ satisfaction with particular facets of their jobs,
such as pay, pension arrangements, working hours, and
numerous other aspects of their jobs.
Job Satisfaction
Influence on Employees
 Psychology of industry also play role in promotions by
considers various parameters of an individual that affects his
behaviour and so capability.
 Helps an individual in dealing with particular conditions or
environment while working and so helps in better adjustment
and so relief of tension.
 Helping to give businesses and organizations a more efficient
structure.
 Primitive and sometimes deadly attacks on the strikers would
usually just increase the workers' resolve to struggle.
 Industrial Psychology makes workers interchangeable and
therefore expendable, as a problematic worker may easily be
replaced with a more docile one.
Employee Psychology

Video 1
Muchinsky’s key areas of I/O
Psychology
According to Muchinsky (2000), most industrial organizational
psychologists work in one of six major subject areas:
 Training and development: Professional in this area often
determine what type of skills are necessary to perform specific jobs
as well as develop and evaluate employee training programs.
 Employee Selection: This area involves developing employee
selection assessments, such as screening tests to determine if job
applicants are qualified for a particular position.
 Ergonomics: The field of ergonomics involves designing
procedures and equipment designed to maximize performance and
minimize injury.
Muchinsky’s key areas of I/O
Psychology Conti…
 Performance Management: I/O psychologists who work in this area
develop assessments and techniques to determine if employees are
doing their jobs well.
 Work Life: This area focuses on improving employee satisfaction
and maximizing the productivity of the workforce. I/O psychologists
in this area might work to find ways to make jobs more rewarding or
design programs that improve the quality of life in the workplace.
 Organizational Development: I/O psychologists who work in this
area help improve organizations, often through increasing profits,
redesigning products, and improving the organizational structure.
Thank You