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HR Glossary

Industrial psychology

What is industrial psychology?

Industrial psychology, or industrial-organizational (I-O) psychology, is a distinct field of applied psychology designed to explore and examine the behavior of employees in the workplace. It tests various methods to ensure workers are satisfied, engaged, and productive.

What are industrial psychology's main objectives?

The main objectives of industrial psychology include:

  • Improving employee performance:

    Applying the power of motivation and goal-setting theories to boost productivity

  • Building a positive work culture:

    Encouraging teamwork, respect, and job satisfaction

  • Optimizing the process of onboarding:

    Thoroughly integrating and aligning new hires with organizational values

  • Enabling employee development:

    Creating training schedules and career tracks that stimulate growth

  • Gaining engagement:

    Determining components of improved focus, morale, and overall engagement

  • Aiding change management:

    Assisting teams in adjusting to changes like mergers, restructuring, or cultural changes

What are the advantages of applying industrial psychology in a work environment?

  • Improved productivity: 

    Simplified processes and engaged employees result in enhanced performance.

  • Enhanced job satisfaction: 

    When employees' needs are understood and met, it boosts overall morale.

  • Smarter hiring practices: 

    Psych testing and behavior checks enhance the quality of hires.

  • Improved team dynamics: 

    Psychology-driven strategies can promote open communication and quality team collaboration.

  • Better training programs: 

    Training is based on individual learning methods as well as organizational objectives.

  • Work-life balance support: 

    A clear approach assists companies in designing policies and systems that minimize burnout and turnover.

How does industrial psychology work?

It begins with examining workplace issues such as turnover or morale problems via employee surveys, performance metrics, interviews, and psychological testing. Using this information, psychologists design specific interventions, training, or policy adjustments. It involves assessments, implementation, and evaluation, all based on psychological science.

What is the role of industrial psychology in organizational development?

Industrial psychology is a critical driver of an organization's future. It aids in change efforts, develops leadership pipelines, enhances corporate culture, and ensures that development initiatives are employee-focused. From succession planning to feedback systems, its impact is both structural and strategic.

What is the place of industrial psychology within HR?

Psychology not only assists in comprehending the candidate's point of view but also helps determine what qualities the company should look for in a candidate.

For HR professionals, industrial psychology is an invaluable toolbox. It assists in developing behavior-based interviewing, creating performance appraisals, determining skill deficiencies, and establishing inclusive workplaces. Psychologists also advise HR departments on which personality traits and competencies to emphasize in the hiring and development process.

Is every organization staffed with industrial psychologists?

Not necessarily. Small companies may not have in-house psychologists, but they can outsource this role to consultants or rely on HR professionals with a background in psychology. With the increasing importance of employee experience, more businesses are investing in their own in-house industrial psychology talent.

How do industrial psychologists minimize employee turnover?

By identifying what motivates employees, contributes to job satisfaction, and creates pain points, psychologists can recommend measures to enhance engagement and retention. This could entail improved work environments, better career growth opportunities, and job positions that align with personal strengths and values.

Is industrial psychology the same as organizational psychology?

Industrial psychology focuses on the individual within the workplace. This can include areas from hiring and training to job performance and employee evaluation. Organizational psychology, on the other hand, considers the broader view, dealing with group behavior, leadership, corporate culture, and group dynamics. Both combined create the larger discipline of industrial-organizational (I-O) psychology, which aims to enhance both employee experience and organizational effectiveness.