HRMG 4081 Psychology in Human Resource Management

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1.1 Importance of I-O Psychology

CLO1: Discuss the philosophical roots of Industrial-Organizational psychology

CSLO 1.1 Discuss the importance of Industrial Organization Psychology in contemporary HR

1.1 Importance of I-O Psychology


•Why is it important to study I-O Psychology?
•How I-O Psychology is related to HR functions?
•What is the role of I-O Psychologist?
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 field focuses on increasing workplace productivity and related issues such as the physical and mental well-being of employees.

What Is Industrial-Organizational Psychology?

§First, there is the industrial side, which involves looking at how to best match individuals to specific job roles. This segment of I-O psychology is also sometimes referred to as personnel psychology.
§Other functions that fall on the industrial side of I-O psychology include training employees, developing job performance standards, and measuring job performance.


ØThe organizational side of 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.

HR and I-O Similarities

How HR Managers and IO Psychologists are Similar


How are they different?

´The simplest way to describe the main difference between the two is that I/O psychologists study the employee behavior to determine what benefits will make them as satisfied and productive as possible, whereas, human resources managers have the task of putting together, implementing and providing the benefits and packages to the employees.
´The projected job growth, according to the U.S. Bureau of Labor Statistics (BLS), is similar for both of these professionals. Industrial-organizational psychologists are expected to see a job growth of 8% between 2016 and 2026 while human resource managers should see a 9% increase.
´Role of organizational psychology in HR 
´What a typical company is more interested in is profit. Investors won’t invest in a firm for being too classy or popular; they invest because of returns and dividends. Every single establishment is profit driven. 
´Understanding human psychology is a requirement to helping employees get maximum result, stay motivated, and also achieve their goals. This will help get a good result.
´Industrial-organizational psychology must be seen as a better half of human management where one cannot do without the other. The aim of industrial-organizational psychology is to increase and maintain work productivity. Psychologists do not only counsel, but observe employees and sometimes, employers’ interaction and reaction to determine where the issue lies. 
On the job, an Industrial Psychologist can expect to:
• Use psychological research in the workplace
•        Help businesses hire qualified employees
•        Train and motivate the labor force
•        Collaborate with the Human Resources Department
•        Provide a consultative role in the organization
•        Assess employee job performance
•        Improve organizational structure
•        Increase business efficiency
•        Aid with corporate transitions, such as mergers and staff realignment
•        Research consumer behavior
•        Provide ergonomic consultation to maximize performance and improve comfort
•        Enhance the quality of life for employers and employees

Price: £120

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