Industrial & Organizational Psychology

Dr. Subhash Meena

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.

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• 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.’’

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• 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.

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• 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. �

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

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Personnel Selection

Selection

• What is selection?
• Using scientific methodology to choose one alternative (job candidate) over another.
• Job Analysis
• Measurement
• Statistics
• Why is selection important?
• Decreases the likelihood of hiring “bad” employees
• Increases the likelihood that people will be treated fairly when hiring decisions are made
• Reduces discrimination
• Reduces likelihood of discrimination lawsuits
• What do I/O psychologists need to know about selection?
• How to select predictors of job performance (criteria problem)
• How to accurately indentify and validate predictors for specific jobs (job analysis)
• Rely on cognitive and personality variables
• How to reliably and validly measure these predictors
• How to use these predictors to make selection decisions

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Selection Problem: Choose the Best Person For the Job

• 1. Best performer
•  2. Best social fit (team player)
•  3. Best person‑job fit (worker adjustment/well-being)

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•  Empirical process: Data based and objective
•  Legal process: Government regulation and law
•  Utility: Benefit of using a selection procedure

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Hiring Process

Planning and Recruitment

• Planning: Anticipating needs for human resources
• Expansion vs. replacements
• Labor markets
• Recruitment
• Advertising
• Employee referral
• Employment agencies
• School recruiters
• Walk-ins
• Web (Monster website)

Making Selection Decisions

• Human judgment: Hire whoever seems best
•  I/O approach: Use empirically (research-based) proven assessment methods
• Steps involved in I/O method
•  1. Analyze job
•  2. Define criteria
•  3. Define abilities needed
•  4. Choose potential predictors
•  5. Validate (determine equation)
•  6. Cross‑validate
•  Multiple cutoff option: Must meet each selection requirement
• Multiple regression: Must achieve a certain total score regardless of performance on each requirement
•  Validity generalization: Effective selection devices work in all settings

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Criteria

Actual

Criterion

Conceptual

Criterion

Criterion relevance

Abstract concept or idea

Measures that act as “proxies”

Criterion contamination

Criterion deficiency

Criteria

• Criteria - standards used to judge the quality of (discriminate among) alternatives.

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• For I/O psychologists, this means judging the quality of employees, programs, and units in the organization.

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Illegal Criteria

• Title VII of the 1964 Civil Rights Act prohibits using selection practices that have an unequal impact on members of a different:
• Race
• Color
• Sex
• Religion
• National Origin

Choosing Predictors of Job Performance

• When selecting new employees, I/O psychologists use criteria that will identify effective on-the-job performance

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• Performance is a function of the following:
• Knowledge
• Skills
• Abilities
• Motivation
• Situational Constraints

Performance = (KSA)*Motivation – Situational Constraints

Selection

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• Issues
• Quality (Reliability & Validity)
• Types
• Psychological Tests & Inventories
• Interviews
• Assessment Centers
• Work Samples & Situational Exercises
• Biodata
• Peer Assessment
• Letters of Recommendation

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Types of Selection Methods

Peer Assessment

Work Samples

Personality

Inventories

Cognitive Ability Tests

Physical Ability

Tests

References and

Biographical Data

Interviews

JOBS

HR

Utility

• Value of selection system to the organization

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• Cost/benefit ratio

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• Utility is maximized by
• 1. Validity of selection device—should be high
• 2. Selection ratio (hired/applicants)—should be low
• 3. Baseline for success—should be 50%
• 4. Cost of selection program—should be low

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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.

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Thank You