• Scientific study of human side of an organization

• Research and practice oriented

• Evidence-based field (difference from other discipline)
• Applied psychology
• Eclectic in nature
– Experimental psychology
– Psychological testing
– Engineering
– Management
– Social psychology
– Sociology
Management perspective of organizational
efficiency through appropriate use of human
resources or people.

Concerned with
– Efficient job design
– Employee selection
– Training
– Performance appraisal
• Developed from human relations movement in
organizations
• Focus on individual employee
– Employee behaviour
– Employee attitudes
– Job stress
– Supervisory practices
– Enhancing well-being in work-place

• Much overlapping in two forms exist

e.g., motivation is topic of interest for both
• Research and practice

• Efficient working of organizations

• Causes of work related behaviour

• Problem-solving approach

• College and university based researches implemented in

organizations

• Firms, government, military, private corporations

• Consulting firms

• Academics
• Roots in 1800s and early 1900s

• Roots based in experimental psychology

– Early work on job performance and organizational
efficiency
– Hugo Munsterberg (German) --- personnel selection
and use of psychological tests
– Walter Dill Scott --- Psychology of advertising
 Cont…
• Fredrick Winslow Taylor (engineer) --- (1911)
employee productivity, Scientific Management,
for handling production workers in factories,
guide organizational practices

– Job analysis (optimal way of doing tasks)

– Selection as per employees characteristics --- for
this existing employees’ characteristics should be
studied
– Training
– Rewarded for productivity
 Cont…
• Frank and Lillian Gilberth (engineer and
psychologist) --- (1915) how people perform
task

– Time and motion study

– Roots for field of human factor --- how best to
design technology for people.
– Designing consumer products
 Cont…
• World War I --- US military

– Robert Yerkes (1917) led psychologists in offering

services
– Army Alpha and Army Beta tests for mental ability
– For recruitment and placement
– Mass-testing then in educational and employment
setting like SAT
 Cont…
• 1921 Penn State University --- Bruce V. Moore
• Consultants
• Psychological Corporation (Harcourt
Assessment; 1921) --- James McKeen Cattell
• Hawthorne Studies --- Western Electric
Company
• World War II
• APA --- 1944 (14 Division Industrial and
Business Psychology)
 Cont…
• Arthur Kornhauser --- effect of work condition
on employee’s mental health
– Occupational health psychology

• 1970 APA changed name as Division of

Industrial and Organizational Psychology
– Society of Industrial and Organizational Psychology
(SIOP)
– Civil Rights Act (1964)
– American with Disabilities Act (1990)
• “An accurate picture of details of job and
characteristics of the people who will do that
job”.
e.g., what police officer do in the whole day job?

– Systematic by specifying the procedure

– Job is broken into small units

– Written report (of job description)

 Approaches
Defining tasks and SOPs in hierrarchical order defining
(Brannick et al., 2007)
1. Position
2. Duty
3. Task
4. Activity
5. Element

(KSAOs)
Knowledge
skills
Ability
Other characteristics
• Career development
– Career ladder
– Competency system
• Legal issues
– Defining essential functions
• Performance appraisal
– e.g., Critical incidents (poor to outstanding)
• Selection (Assessment)
• Training
– Evaluating required KSAOs and KSAOs of applicants
– Target deficiencies
• Vocational counseling (assessment based)
• Research
• On newly created positions
• To replace those who have left organization
– Planning the need for new employees
– Getting appropriate people to apply for job (Recruitment )
– Deciding whom to hire (selection)
– Making selected people to take the job (hiring and training)
– Legal issues

– Application form
– Testing (is it reasonable?)
– Assessment should be relevant and predictive
• Careful planning to fill the vacancies is needed

• Focus on organization’s needs for people and

potential people to hire

• Establishment list
 Cont…
• Organizations change and expand e.g. use of robots
– Reduction in one type of employee and increase in other

– Hire new or give training to old

– Feasibility plan (cost and benefit analysis)

– Selection vs. training approach

– Information about ‘demand and supply’ of people

– Change in demand of jobs with change in needs

• Challenge is to have ample people to apply for job

• In undersupply situation --- attract right people for the

job (e.g., prof. in univ.)
– Ads in newspaper
– Website (25% higher use than others)
– extensive recruiting by going in colleges and universities
(e.g., job fair; Fullbright)
– Employee referrals (help in better performance, remain on
job for longer period, more satisfied and realistic
expectations, prescreen, recommended as fit)
– Agencies
– Walk-in
 Cont…

• Clearly define KSAOs for the job --- help in

where to look for
– e.g., computer skills in univ. and manual
employment in high unemployment zone

• Marketing organization and making it attractive

for applicants e.g.,
– Pay package and rewards
– Career development
– Work environment
– Repute of organization
• Lucky organizations --- good number of
applicants
• I/O Psychologists procedures work best when
there are several applicants
– Mathematical and statistical procedures

• Selection process
– Interviewing applicants and decide subjectively
– Scientific Method
 Cont…
• Scientific Method
– Job analysis --- consider legal issues and hiring
people with KSAOs

– Defining criteria --- def. of good employee based on

job performance

– Define Predictors --- KSAOs

– Validate predictors --- concurrent and predictive

– Cross-validate
• Fair recruitment or treatment in selection

• Salary offers
– Cafeteria benefit program

• Behaviour of recruiters
– Truthfulness and honest
– Realistic job preview (RJP)
For old and new employees
Lifelong process
• (like job analysis)
– Organization level
– Job level
– Person level
•
– What to achieve after training?
– Define criteria of training
 Cont…
•
– Transfer of training --- Expectation for learning to
apply knowledge
– Model of Baldwin and Ford (1988) factors
affecting learning and transfer of training

1. Trainee characteristics
– Ability and motivation
– Effect training outcome
– Varied time required to learn
 Cont…
2. Design Factors
– Feedback
– General principles
– Identical elements
– Over-learning --- automaticity
– Sequence of training --- massed or spaced,
Distributed or whole

2. Work environment
– Support and supervisory attitude
– Opportunity for applying new learning
 Cont…
4. Training methods
– Audiovisual instructions
– Auto-instructions
– Conference
– Lecture
– Modeling
– On job training --- apprenticeship
– Role-playing
– Simulation
– Electronic training
– Mentoring
– Executive coaching
 Cont…
•
– Subject matter experts

•
– A type of research
– Define criteria --- training level vs. performance
level, reaction criteria, learning criteria, behaviour
criteria, result criteria
– Choose design – pre and posttest, control group
– Choose measures for criteria
– Collect data
– Analyze and interpret
Positive and negative effects on performance
Structured or unstructured

• Job Characteristic Theory (Hackman & Oldham, 1980)

– Interesting and enjoyable tasks maintain motivation and
high performance
– Job characteristics lead to three psychological states
(motivating level of job)

1. Skill variety, task identity, and task significance (meaningfulness of

task)

2. Autonomy --- leads to responsibility

3. Feedback --- leads to knowledge of result

 Cont…
• Motivation Potential Score (MPS) for a job
Skill variety + task identity + task significance / 3 X
Autonomy X Feedback

• High MPS --- better job performance and satisfaction (mixed

results)

• Moderating role of personality trait of employee

– Growth Need Strength (GNS)

– More GNS --- More impact of motivating job on performance and

psychological states

– Certain type of people respond to high MPS jobs

 Cont…
I
• piece-rate system (reinforcement theory)
e.g., sales people or factory workers, or for attendance

– Peer pressure negative plays role

– Effective if employees capability to produce.

– Incentives will not work if employees are working at their

limits

– Something that people want

– Will not work if there are physical or psychological

 Cont…

• Physical features of job setting

• Field of human factor (ergonomics, engineering
psychology)
• Make job safer and easy to accomplish
– Displays and controls
• Presentation of information (auditory or visual; quick and
accurate)
• Manipulation of tools/machine (controls based on purpose
and situation; fine movement or force; logical placement;
kinesthetic based or touch for vital knobs; feedback for a
function done; logical direction of movement)
 Cont…
• Computer-human interaction
– Communication with computer --- mental model
– Training and appropriate system design

• Computer-supported cooperative work (CSCW) ---

meeting electronically
– Email
– videoconferencing

Hawthorne studies --- Highlighted social factors

Counter-effects of technology making the job easier

– Boredom and stress
– Passive than active
– Loss of control
 Cont…
•

• Effect performance negatively

– physical environment
– Supervisory practices
– Lack of needed training, tools, equipment, and time
 Cont…

Occupational health Psychology (new emerging

field)
• Accidents and safety
• Infectious diseases
• Repetitive actions or lifting
• Toxic substances
• Loud noise
• Workplace violence
• Work Schedules (shifts and hours)
 Cont…
• Occupational stress
• Work-family conflict
• Burnout
 ?
What do you purchase?

How and where you spend your money?

How you spend your time and resources?

 Consumer behaviour
• Activities that people undertake when obtaining,
consuming, and disposing of products and services.

• A study of “why people buy?”

• Now consumption analysis --- even after purchase

• Help marketers to devise strategies to attract

consumers
 Consumer influences Organizational influences
Services
Motivation Convenience
Past experiences Brand/ loyalty
Opinion/ attitudes Advertising
Personality Packaging
Emotions Product/quality/availability
Resources Price
knowledge Store ambience

obtaining consuming disposing

Decision what you want to buy How you use product

Get rid of left over
Other products to buy Storing
How much you throw
From where to buy Who use
Recycling
What you pay How much you consume
reselling
Transportation of product to home Coming upto expectations
 Marketing
Process of planning and executing the conception,
pricing, and distribution of ideas, goods, and services
to create exchanges that satisfy individual (consumer)
and organizational objectives.

Organization must understand consumer needs and how

they consume products

A product must serve what it’s intended use

Chasing precious consumer

Which ad do you like and how it effected your
purchasing decision?

Why you have voted for a particular party?

 Increased consumers’ influence
• Customer is center piece
• Consumer rules
– Electing through vote (money) for any retailer and
organization
– Revenue generation
– New jobs created
– Marketers focus how to please ruler
• Marketing is transforming or changing the organization to have what
people will buy.

• “Consumer can fire us” (Sam Walton; Wal Mart world’s

largest retail organization)

– Recruit and keep customer

 Educate and protect consumer
• Buying wisely --- Deception

• Money saving strategies

• Create awareness --- health and policy

– Methods to give information and assistance (e.g. eating,
tobacco consumption, products causing cancer)

• Problems of over and under consumption

– Research in motivation and behaviour
 Formulate public and personal
policy
• Public policy is based on needs
– E.g., family planning, energy conservation

• Personal policy
– Effect on life-style
– How you behave, your values and beliefs, how you
live life
– Effects economic quality of life
– Consumer differences in spending and saving
 Evolution of consumer behaviour
Supply Chain
Wholesaler

manufacturer Manufacturing orientation

Till W W 2

Watson’s Unique
Selling Proposition
retailer Sellers orientation
1970-2000

Marketing orientation Behaviourism

motivation

consumer consumer orientation positivism

2000+ post-modernism
 Underlying Principles
• Consumer rules

• Consumer is global (needs are global, culture)

• Consumers are different and alike

• Consumer rights (Consumer Bill of Rights)

– Fraud and manipulation

• Understand consumer

• Marketing strategy