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Industrial and organizational psychology
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Industrial and Organizational Psychology (also known as I/O psychology, work psychology, work and organizational psychology, occupational psychology, personnel psychology or talent assessment) is a branch of psychology devoted to organizations and the workplace. "Industrial-organizational psychologists contribute to an organization's success by improving the performance and well-being of its people.

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Industrial and Organizational Psychology (also known as I/O psychology, work psychology, work and organizational psychology, occupational psychology, personnel psychology or talent assessment) is a branch of psychology devoted to organizations and the workplace. "Industrial-organizational psychologists contribute to an organization's success by improving the performance and well-being of its people. An I-O psychologist researches and identifies how behaviors and attitudes can be improved through hiring practices, training programs, and feedback systems."
Overview
Industrial and Organizational (I/O) Psychology (Division 14 of the American Psychological Association) as a specialty area, has a more restricted definition than Psychology as a whole. Guion (1965) defines I/O Psychology as "the scientific study of the relationship between man and the world of work:... in the process of making a living" (p. 817). Blum and Naylor (1968) define it as "simply the application or extension of psychological facts and principles to the problems concerning human beings operating within the context of business and industry" (p 4).
I/O psychology can has historically subsumed two broad areas of study, as evident in its name, although this distinction is largely artificial and many topics cut across both areas.
Organizational psychology has its roots in social psychology, and in general, examines the commonalities in human behavior and the role of the work environment/context on performance and other outcomes (e.g., satisfation, health).
Common research and practice ares for I/O psychologists include:
- Job analysis,
- Personnel recruitment and selection,
- Performance appraisal/management,
- Individual assessment (knowledge, skills, and ability testing, personality assessment, work sample tests, assessment centers) and psychometrics,
- Compensation,
- Training and training evaluation,
- Employment law,
- Work motivation,
- Job attitudes and emotions (e.g., satsfaction, commitment, citizenship and retaliation),
- Occupational health and safety,
- Work/life balance,
- Human factors and decision Making,
- Organizational culture/climate,
- Organizational surveys,
- Leadership and executive coaching,
- Ethics,
- Diversity issues,
- Job design,
- Gloabal/Multicultural human resouces (HR) issues,
- Organizational Development (OD),
- Person-Environment (PE) fit,
- Organizational research methods,
- Technology in the workplace, and
- Group/Team performance.
I/O psychologists are trained using the “scientist-practitioner” model, which means that I/O psychologists use scientific principles and research-based designs to generate knowledge, and can use what they have learned in applied settings to help their clients address their needs. I/O psychologists work as professors, researchers, consultants, or within organizations. Within organizations, I/O psychologists typically work with or as part of an organization's HR department to coordinate hiring and organizational development initiatives from an evidence-based perspective.
History
In the United States, the origins of industrial and organizational psychology origins are those of applied psychology in the late 19th century, when the nation was experiencing tremendous industrialization, corporatization, unionization, immigration, urbanization and physical expansion.
The "industrial" side of I/O psychology has its historical origins in individual differences, assessment, and the prediction of performance. This branch of the field crystalized during and immediately after World War I, in response to the need to rapidly assign new troops to duty stations, and was then adopted by the growing industrial base in the U.S. Walter Dill Scott, who was elected President of the American Psychological Association (APA) in 1919, was arguably the most prominent I/O psychologist of his time, although James McKeen Cattell (elected APA President in 1895) and Hugo Münsterberg (1898) were also very influential in the early stages of the field..
Organizational psychology grew to prominence after World War II, influenced by early work of researchers such as Kurt Lewin, Muzafer Sherif, and the Hawthorne studies. Significant contributions in social psychology by such influential researchers as Leon Festinger, Fritz Heider, Stanley Milgram, and Daniel Katz.
Research methods in I/O psychology
As described above, I/O psychologists are trained to use the scientist-practitioner model. In research, I/O psychologists rely on the scientific method to design and evaluate research within organizations. Studies may be experiments, quasi-experiments (e.g., field studies), or observational studies. I/O psychologists rely on data obtained from human judgments, historical databases, objective measures of work performance (i.e., sales volume or efficiency metrics), and questionnaires/organizational surveys.
I/O researchers employ both quantitative and qualitative research methods. In terms of quantitative methods, I/O psychologists are typically expected to know basic statistical methods, such as descriptive statistics, correlation, multiple regression, and analysis of variance. Beyond those topics, some I/O psychologists a further comptetent in the application of more advanced techniques, such as logistic regression, multivariate analysis, structural equation models, and hierarchical linear models. Some I/O psychologists are highly trained in psychometric methods, such as classical test theory (CTT), generalizability theory, and item response theory (IRT). In the 1990s, a growing body of empirical research in I/O psychology was influential in the application of meta-analysis, ostensibly to examine the potential stability of research findings aross contexts. The most well-known meta-analytic approaches are those of Hunter & Schmidt (1990, 2004), Rosenthal (1991), and Hedges & Olkin (1985). Hunter & Schmidt proposed a special approach to meta-analysis, known as validity generalization, which argues that some performance predictors (specifically, cognitive ability tests), have a relatively stable relationship to job performance across all jobs. This concept is somewhat controversial, although there is broad acceptance that many selection instruments (e.g., cognitive ability tests, job knowledge tests, work samples, and structured interviews) are generally predictive of performance across a broad range of jobs.
In terms of qualitative methods, I/O psychologists frequently use content analysis, focus groups, interviews, case studies, and observational techniques. Some I/O research, such as organizational culture research, uses techniques such as ethnography and participant observation to collect data. One well known qualitative technique employed in I/O psychology is John Flanagan's (1954) Critical Incident Technique, which requires subject matter experts (SMEs) to describe a previous work situation that resulted in a good or bad outcome. Later, the SMEs are asked to provide information about what the actor in the situation could have done differently to influence the outcome. This technique is then used to describe the critical elements of performance on certain jobs and how worker behavior relates to outcomes. Most notably, this technique has been employed to improve performance among aircraft crews surgical teams, literally saving thousands of lives since its introduction.
I/O psychologists often use quantitative and qualitative methods in concert. For example, when constructing Behaviorally anchored rating scales (BARS), a job analyst might use qualitative methods, such as interviews, focus groups, and critical incidents to collect performance examples, then have SMEs rate those examples on a Likert scale and apply quantitative criteria, such as average ratings and inter-rater agreement as a criterion to retain performance examples on the final BARS metric.
Topics in industrial/organizational psychology
Job analysis
Job analysis is often described as the cornerstone of any good employee selection or performance management initiative. Job analysis is the systematic collection of information about the job. Job analysis methods are often described as being one of two approaches. A task-oriented job analysis examines the duties, tasks, or competencies comprising a job, whereas a worker-oriented job analysis examines the knowledge, skills, abilities, and other characteristics (KSAOs) required to successfully perform the work. These approaches are not mutually exclusive. Various adaptations of job analysis are competency modeling, which examines large groups of duties and tasks related to a common goal or process, and practice analysis, which examines the way work is performed in an occupation across jobs.
Job-analytic data are often collected using a variety of quantitative and qualitative methods. The inform from the job analysis is then used to create job-relevant selection procedures, performance appraisals and criteria, or training programs. Additional uses of job-analytic information are to evaluate jobs to determine compensation levels or to redesign jobs.
Personnel recruitment and selection
Personnel recruitment is the process of identifying qualified candidates in the workforce and getting them to apply for jobs within an organization. Personnel selection is the systematic process of hiring and promoting personnel. I/O psychologists trypically work with HR specialists to design recruitment processes (e.g., developing job announcements, placing ads, defining key qualifications to applicants, screening out unqualified applciants), and design personnel selection systems. Personnel selection systems define the processes used to determine the most qualified candidates using evidence-based practices. Personnel selection includes both new hires and promotions. Common selection tools include ability tests (cognitive, physical, psychomotor), knowledge tests, personality tests, structured interviews, biographical data (or "application blanks"), work samples, and other methods that can be linked to job performance through the job analysis.
Personnel selection procedures are usually validated (i.e., shown to be job relevant) using one or more of the following methods: content validity, construct validity, and/or criterion-related validity. I/O psychologists follow professional standards, such as the Society for Industrial and Organizational Psychology's (SIOP) Principles for Validation and Use of Personnel Selection Procedures (the SIOP Principles), and the Standards for Educational and Psychological Testing (the Standards, jointly published by the American Educational Research). The Equal Employment Opportunity Commission's Uniform Guidelines on Employee Selection Procedures are also an influential document, although they are often criticized as outdated when compared to the current state of knowledge in I/O psychology.
Performance appraisal/management
Performance appraisal or performance evaluation is the process of measuring an individual's work behaviors and outcomes (performance) against the expectations of the job. Performance appraisal information is commonly used to investigate performance issues within organizations, as a basis for promotion and compensation decisions, to help design and validate personnel selection procedures, and for performance management. Performance management is the process of providing performance feedback relative to expectations and improvement information (e.g., coaching, mentoring). Performance management may also include documenting and tracking the information for organization-wide measurement.
An I/O psychologist would typically use information from the job analysis to determine the performance dimensions for a job, and then construct a rating scale to describe each level performance for the job. Often, the I/O psychologist would be responsible for training organizational personnel how to use the performance appraisal instrument, including ways to minimize cognitive bias when using the rating scale, and how to provide effective performance feedback. Additionally, the I/O psychologist might consult with the organization on ways to use the performance appraisal information for broader performance management initiatives, in addition to conducting any statistical analyses to validate the organization's selection procedures.
Inidividual assessment and psychometrics
Individual assessment is the measurement of individual differences. Individual assessment is used within I/O psychology to measure differences between employees that relate to performance on the job, typically as part of the personnel selection process. These assessments include written tests, physical tests, psychomotor tests, personality tests, work samples, and assessment centers.
Psychometrics is the science of measuring psychological variables, such as knowledge, skills, and abilities.
Compensation
Compensation includes wages or salary, bonuses, pension/retirement contributions, and other perks that can be converted to cash or replace living expenses. I/O psychologists may be brought in to conduct a job evaluation or other study as a procedure to determine compensation levels and ranges. I/O psychologists might also serve as expert witnesses in pay discrimination cases with respect to the relative value of work performed among various protected groups.
Training and training evaluation
Most people hired for a job are not already versed in the tasks required to perform the job effectively. Similar to performance management, an I/O psychologist would use the job analysis in concert with principles of instructional design to design an effective training program. The training program might include an evaluation at its conclusion to ensure trainees have met the training objectives and can perform the work at an acceptable level. Traning evaluation can also be done at the program level, for example using Donald Kirkpatrick's model.
Occupational health psychology
Occupational health psychology (OHP) is a relatively new discipline allied with both industrial/organizational psychology and health psychology. The ancestry of OHP includes industrial/organizational psychology, health psychology, and occupational health. OHP has doctoral programs, journals, and professional organizations. OHP researchers and practitioners identify psychosocial characteristics of workplaces that give rise to health-related problems in workers. The problems OHP addresses are not limited to physical health (e.g., cardiovascular disease) but also include mental health problems such as depression. Two examples of workplace psychosocial characteristics that OHP has investigated are (a) the extent to which a worker possesses decision latitude and (b) the supportiveness of supervisors. OHP is also concerned with the development and implementation of interventions that can prevent or ameliorate work-related health problems. Another aim of OHP is to ensure that steps taken to promote healthy workplaces also have a beneficial impact on the economic success of organizations. OHP is also concerned with workplace incivility and violence, work-home carryover, unemployment and downsizing, and workplace safety and accident prevention. Two important OHP journals are the Journal of Occupational Health Psychology and Work & Stress. Organizations closely associated with OHP include the Society for Occupational Health Psychology and the European Academy of Occupational Health Psychology.
Practicioners
Graduate programs
In many countries it is possible to obtain a bachelor's degree, master's degree, Psy.D., and/or a Ph.D. in industrial and organizational psychology. The types of degrees offered vary by educational institution. There are both advantages and disadvantages to obtaining a specific type of degree (e.g., master's degree) in lieu of another type of degree (e.g., Ph.D.). Some helpful ways to learn more about graduate programs and their fit to one's needs and goals include talking or sitting in on an industrial and organizational psychology course or class; speaking to industrial and organizational psychology faculty, students, and practitioners; consulting with a career counselor; taking a reputable vocational interest survey; and visiting program websites. Regardless of one's needs or goals, admission into industrial and organizational psychology programs can be highly competitive, especially given that many programs accept only a small number of students each year.
Job outlook
According to the Bureau of Labor Statistics (2007), the job outlook for industrial-organizational psychologists looks promising. Businesses will enlist the services of these psychologists in order to retain employees and maintain good work ethic. Industrial-organizational psychologists specializing in research will conduct studies within companies to aid in marketing research.
In 2006, the median annual salary for industrial-organizational psychologists was $86,420.
See also
Further reading
- Anderson, N., Ones, D. S., Sinangil, H. K., & Viswesvaran, C. (Eds.). (2002). Handbook of industrial, work and organizational psychology, Volume 1: Personnel psychology. Thousand Oaks, CA: Sage Publications Ltd.
- Anderson, N., Ones, D. S., Sinangil, H. K., & Viswesvaran, C. (Eds.). (2002). Handbook of industrial, work and organizational psychology, Volume 2: Organizational psychology. Thousand Oaks, CA: Sage Publications Ltd.
- Borman, W. C., Ilgen, D., R., & Klimoski, R., J. (Eds.). (2003). Handbook of Psychology: Vol 12 Industrial and Organizational Psychology. Hoboken, NJ: John Wiley & Sons.
- Borman, W. C., & Motowidlo, S. J. (1993). Expanding the criterion domain to include elements of contextual performance. Chapter in N. Schmitt and W. C. Borman (Eds.), Personnel Selection. San Francisco: Josey-Bass (pp. 71-98).
- Campbell, J. P., Gasser, M. B., & Oswald, F. L. (1996). The substantive nature of job performance variability. In K. R. Murphy (Ed.), Individual differences and behavior in organizations (pp. 258–299). San Francisco: Jossey-Bass.
- Dunnette, M. D. (Ed.). (1976). Handbook of Industrial and Organizational Psychology. Chicago: Rand McNally.
- Dunnette, M. D., & Hough, L. M. (Eds.). (1991). Handbook of Industrial/Organizational Psychology (4 Volumes). Palo Alto, CA: Consulting Psychologists Press.
- Greenberg, Jerald . Managing Behavior in Organizations, Prentice Hall, 2005.
- Guion, R. M. (1998). Assessment, measurement and prediction for personnel decisions. Mahwah, NJ: Lawrence Erlbaum Associates.
- Hunter, J. E., & Schmidt, F. L. (1990). Methods of meta-analysis: Correcting error and bias in research findings. Newbury Park, CA: Sage.
- Hunter, J. E., & Schmidt, F. L. (2004). Methods of meta-analysis: Correcting error and bias in research findings. Newbury Park, CA: Sage.
- Koppes, L. L. (Ed.). (2007). Historical perspectives in industrial and organizational psychology. Mahwah, New Jersey: Lawrence Erlbaum.
- Lowman, R. L. (Ed.). (2002). The California School of Organizational Studies handbook of organizational consulting psychology: A comprehensive guide to theory, skills and techniques. San Francisco, CA: Jossey-Bass.
- Muchinsky, P. M. (Ed.). (2002). Psychology Applied to Work. Wadsworth Publishing Company.
- Rogelberg, S., G. (Ed.). (2002). Handbook of research methods in industrial and organizational psychology. Malden, MA: Blackwell.
- Sackett, P. R., & Wilk, S. L. (1994). Within group norming and other forms of score adjustment in pre-employment testing. American Psychologist, 49, 929-954.
- Schmidt, F. L., & Hunter, J. E. (1998). The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research findings. Psychological Bulletin, 124, 262-274.
- Muchinsky, Paul M., (199). Psychology Applied to Work: An Introduction to Industrial and Organizational Psychology, Third Edition.
- Frederick W. Taylor Father of Scientific Management, Vol. I and II, First edition 1923, reprinted 1969
Key journals in industrial and organizational psychology
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