17.1 What Is Industrial/Organizational Psychology?

Industrial/organizational (I/O) psychology is the branch of psychology that focuses on the study of human behavior in the workplace. The “industrial,” or “I,” side of I/O psychology focuses on measuring human characteristics and matching those characteristics to particular jobs. This process involves applying psychological research findings to personnel functions such as pre-employment testing, placement, training and development, and performance management. This specialty, often called personnel psychology, helps companies attract, recruit, select, and train the best employees for the organization.

industrial/organizational (I/O) psychology

The branch of psychology that focuses on the study of human behavior in the workplace.

personnel psychology

A subarea of I/O psychology that focuses on matching people’s characteristics to job requirements, accurately measuring job performance, and assessing employee training needs.

In contrast, the “organizational,” or “O,” side focuses on the workplace culture and its influence on employee behavior. Organizational psychology helps companies develop a culture that fulfills organizational goals while addressing employee needs. Organizational psychologists, then, apply psychological findings to areas such as leadership development, team building, motivation, ethics training, and wellness planning. The “O” side of I/O psychology is also called organizational behavior. In their research and work, I/O psychologists generally concentrate on the content areas described below:

  1. JOB ANALYSIS. Job analysts must determine the duties of a particular position, as well as the personal characteristics that best match those duties.

  2. SELECTION AND PLACEMENT. This area includes the development of assessment techniques to help select job applicants most likely to be successful in a given job or organization.

  3. TRAINING AND DEVELOPMENT. Psychologists in this field may design customized training programs and evaluate the effectiveness of those programs.

  4. PERFORMANCE MANAGEMENT AND EVALUATION. Companies are often concerned with ways to improve their performance evaluation systems. Performance management systems include teaching managers how to collect evaluation data, how to avoid evaluation errors, and how to communicate the results.

  5. ORGANIZATIONAL DEVELOPMENT. The goal of organizational development (OD) is to bring about positive change in an organization, through assessment of the organizational social environment and culture.

  6. LEADERSHIP DEVELOPMENT. Leadership research strives to identify the traits, behaviors, and skills that great leaders have in common. One goal is matching an organization’s mission with the optimal leadership profile.

  7. TEAM BUILDING. Team membership and successful team design are critical to the needs of today’s organizations.

  8. QUALITY OF WORK LIFE. Psychologists in this area study the factors that contribute to a productive and healthy workforce, such as perk packages and employee-centered policies.

  9. ERGONOMICS. The focus of ergonomics is the design of equipment and the development of work procedures based on human capabilities and limitations. Ergonomics helps employers provide healthier and safer workplaces.

organizational behavior

A subarea of I/O psychology that focuses on the workplace culture and its influence on employee behavior.

Designing for People One subarea of industrial/organizational psychology is concerned with the human factors involved in the use of workplace procedures and equipment. For example, this factory’s procedure for tightening bolts on the wheel of a log skidder requires the mechanic to kneel and heft a heavy wrench—a tiring, painful position. The employer installed a counterbalanced tool that allows the operator to sit level with the wheel and work with his legs and back relaxed.