The Basics of Industrial-Organizational Psychology

Industrial-organizational psychology is the branch of psychology that applies psychological theories and principles to organizations. Often referred to as I-O psychology, this combination of industrial psychology and organizational psychology focuses on understanding workplace productivity factors and issues related to the physical and mental well-being of employees.

Industrial-organizational psychologists perform a wide variety of tasks, including studying worker attitudes and behavior, evaluating companies, and conducting leadership training. The main goal of this field is to study and understand human behavior in the workplace, and it can be utilized across a variety of industries.

What Is Industrial-Organizational Psychology?

You can think of industrial-organizational psychology as having two major sides: industrial psychology and organizational psychology.

Industrial Psychology

The main role of the industrial side of industrial-organizational psychology is to learn how to best match individuals to specific job roles. This segment of I-O psychology is also sometimes referred to as personnel psychology.

People who work in this area might assess employee characteristics, then match these individuals to jobs in which they are likely to perform well. Other main focuses that fall on the industrial side of I-O psychology include training employees, developing job performance standards, and measuring job performance.

Organizational Psychology

The organizational side of I-O psychology is more focused on understanding how organizations affect individual behavior. Organizational structures, social norms, management styles, and role expectations are all factors that can influence how people behave within an organization.

By understanding such factors, I-O psychologists hope to improve individual performance and health while at the same time benefiting the organization as a whole.

Key Subject Areas in I-O Psychology

According to Muchinsky's book, Psychology Applied to Work: An Introduction to Industrial and Organizational Psychology, most industrial-organizational psychologists work in one of six major subject areas:

• 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.
• Organizational development: I-O psychologists who work in this area help improve organizations, often through increasing profits, redesigning products, and improving the organizational structure.
• Performance management: I-O psychologists who work in this area develop assessments and techniques to determine if employees are doing their jobs well.
• Training and development: Professionals in this area often determine what type of skills are necessary to perform specific jobs as well as develop and evaluate employee training programs.
• 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.

Industrial-Organizational Psychology Topics

Here are some of the specific topics addressed by industrial-organizational psychology experts:

• Employee motivation: Professionals in this field may also use psychological principles to help keep workers motivated.
• Employee testing: Psychological principles and tests are often used by I-O psychologists to help businesses select candidates that are best suited to specific job roles.
• Leadership: I-O psychologists may work to help leaders develop better strategies or train managers to utilize different leadership skills to manage team members more effectively.
• Product design: Some I-O psychologists are involved in the development of consumer or workplace products.
• Workplace diversity: Within the area of organizational psychology, professionals in this field may help businesses develop hiring practices that foster greater diversity as well as train employees on diversity and inclusion.
• Workplace performance: I-O psychologists often study behavior in the workplace in order to design environments and procedures that maximize employee performance.

Important People in I-O Psychology History

There have been several prominent figures in the field of I-O psychology, including:

• Frederick W. Taylor: Taylor was a mechanical engineer who published an influential book on improving industrial efficiency.
• Hugo Münsterberg: Munsterberg was an applied psychologist who wrote an early text on how psychology could be used for industrial, occupational, and organizational purposes. His work had an important impact on the early development of the field. 
• James McKeen Cattell: Cattell was an early proponent of looking at how individual differences influence human behavior. 
• Kurt Lewin: Lewin was an influential applied psychologist who described a number of leadership styles that people may exhibit. His work also focused on looking at all of the forces that influence a situation rather than just taking individual behavior into account.
• Robert Yerkes: Yerkes was a psychologist known for his work in the field of intelligence testing. He developed the Alpha and Beta Intelligence Tests for the U.S. Army, which were used to evaluate military recruits during WWI. Scores on the tests were used to determine respondents' capabilities, including the ability to serve and leadership potential.

Careers in I-O Psychology

Interest in industrial-organizational psychology careers has grown.

According to employment statistics from the Bureau of Labor Statistics, the mean annual wage for I-O psychologists as of May 2016 was $109,030. The bottom 10% of I-O psychologists earned around $51,350 and the top 10% earned an average of $184,380, with a median annual wage of $192,150.

As with other specialty areas, wages vary depending upon a variety of factors including geographic location, educational background, area of employment, and years of experience in the field. Individuals with a master's or doctorate degree also command higher yearly salaries.

In general, those in large urban areas will find more employment opportunities as well as higher wages, although such benefits are often accompanied by a higher cost of living.

States employing the most I-O psychologists include Virginia, Massachusetts, Pennsylvania, Missouri, and New Jersey. Professionals working in Virginia earned an average of $126,220, while those employed in Massachusetts earned an average of $75,660.

The U.S. Department of Labor reports that wages also vary considerably depending upon the industry in which industrial-organizational psychologists are employed. The mean annual wage for various industries is as follows:

• Colleges, universities, and professional schools: $70,360
• Management, scientific, and technical consulting services: $95,470
• Scientific research and development services: $149,780
• State government: $66,600

Who Should Study Industrial-Organizational Psychology?

Students who are interested in applying psychological principles to real-world settings should consider industrial-organizational psychology. If you have a strong interest in psychology as well as related subjects such as product design, computers, statistics, and engineering, this may be the ideal field for you.