IOP1501 LEARNING UNIT 3: INDUSTRIAL AND ORGANISATIONAL PSYCHOLOGY

Learning Unit 3
Industrial and Organisational Psychology

LEARNING OUTCOMES

Learning Unit 3 describes the field and application of Industrial and Organisational
Psychology and its professional training. After completing this Learning Unit, you
should be able to

• describe the purpose of Industrial and Organisation Psychology.

• describe the history of Industrial and Organisational Psychology.
• differentiate between Industrial and Organisational Psychology and Human
Resource Management.
• describe the fields of practice in Industrial and Organisational Psychology.
• understand all the professional aspects that distinguish Industrial and
Organisational Psychology as a profession.

PRESCRIBED RESOURCE FOR LEARNING UNIT 3

This study guide contains a basic layout and explanation of Industrial and
Organisational Psychology. To reach the learning outcomes of this
Learning Unit, you need to study the following book chapter together
with this study guide. Download the book chapter from the library at
http://oasis.unisa.ac.za/search/r

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De Kock, F. (2018). Industrial, work, and organisational psychology in Africa. In D.O.

Anderson & H. K. Sinangil (Eds.), The sage handbook of industrial, work, and
organisational psychology (pp. 1–36). SAGE Publications Ltd.
https://doi.org/10.4135/9781473914964.n6

KEY CONCEPTS
The key concepts for Learning Unit 3, Industrial and Organisational
Psychology, will be uploaded to this module site as they become available.

INTRODUCTION
This Learning Unit introduces you to theory and research, subfields, and professional
practices within Industrial and Organisational (IO) Psychology. We explain how IO
Psychology applies psychological knowledge in the world of work and the self-
employed context. Industrial and Organisational Psychology has been broadly defined
as applying principles, theories, values, and ethics across different workplaces from
individuals, groups/teams, and organisations. It deals with scientific knowledge
through concrete research and engaging in scientific methods.

3.1 THE PURPOSE OF INDUSTRIAL AND ORGANISATIONAL PSYCHOLOGY

The term “industrial and organisational psychology” describes the field where human
behaviour and mental processes are studied in the work context. Although other terms
(such as “occupational psychology” and “work and organisational psychology”) are
used in different countries, the content and implications are the same.

The ambit of Industrial and Organisational Psychology (IOP) as a science (Veldsman,

2021) is an applied field and subfield of psychology. In IOP, the principles and
assumptions from psychology are also used in the work context to assess, utilise,
develop, and influence employees, groups, and organisational processes. It embraces
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the psychology of work in both the formal and informal labour force and the place of
work. As a scientific field of study, IOP applies its own knowledge foundation of work
theories and work-related research. It is also a unique application aimed at achieving
the best fit between employees and workplaces and optimising employee and
organisational performance. According to Veldsman (2021), humane workplaces of
both the present and future must be built on the premise that humans are complex,
multidimensional, holistic beings whose basic needs must be satisfied, allowing them
to mature in such a way that they will flourish, thrive, and feel fulfilled in the chosen
place of work. This concept originated in the early 20th century.

3.2 THE HISTORY OF INDUSTRIAL AND ORGANISATIONAL PSYCHOLOGY

Industrial and Organisational Psychology had its origins in the early 20th century.
Several influential early psychologists studied issues that today would be categorised
as industrial psychology: James Cattell (1860–1944), Hugo Munsterberg (1863–
1916), Walter Dill Scott (1869–1955), Robert Yerkes (1876–1956), Walter Bingham
(1880–1952), and Lillian Gilbreth (1878–1972). Cattell, Munsterberg, and Scott had
been students of Wilhelm Wundt, the father of experimental psychology. Some of
these researchers had worked in industrial psychology before World War I. The
Second World War further impacted how IOP evolved to where it is today. The history
of IOP is discussed here, as it evolved before and after World War II.

3.2.1 Before World War II

Cattell’s contribution to industrial psychology is primarily reflected in his founding of a
psychological consulting company, which is still operating today and is called the
Psychological Corporation, and in the accomplishments of students in industrial
psychology at Columbia. In 1913, Münsterberg published Psychology and Industrial
Efficiency, which covered employee selection, training, and effective advertising.

Scott was one of the first psychologists to apply psychology to advertising,

management, and personnel selection. In 1903, Scott published two books: The
Theory of Advertising and Psychology of Advertising. They are the first books to

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describe the use of psychology in the business world. By 1911, he published two more
books, Influencing Men in Business and Increasing Human Efficiency in Business. In
1916, a newly formed division in the Carnegie Institute of Technology hired Scott to
conduct applied research on employee selection (Katzell & Austin, 1992). All this
research focused on what we now know as industrial psychology; it was only later in
the century that organisational psychology developed as an experimental science
(Katzell & Austin, 1992). In addition to their academic positions, these researchers
also worked directly for businesses as consultants.

When the United States entered World War I in April 1917, the work of psychologists
working in this discipline expanded to include their contributions to military efforts. At
the time, Yerkes was the president of the 25-year-old American Psychological
Association (APA). The APA is a professional association for clinical and research
psychologists in the United States. Today, the APA performs several functions,
including holding conferences, accrediting university degree programmes, and
publishing scientific journals. Yerkes organised a group under the Surgeon General’s
Office (SGO) that developed methods for screening and selecting enlisted men. They
developed the Army Alpha test to measure mental abilities. The Army Beta test was a
non-verbal form of the test that was administered to illiterate and non-English-speaking
draftees. Scott and Bingham organised a group under the Adjutant General’s Office
(AGO) to develop officer selection methods. They created a catalogue of occupational
needs for the Army, essentially a job-description system and a system of performance
ratings and occupational skill tests for officers (Katzell & Austin, 1992). After the war,
work on personnel selection continued. For example, Millicent Pond researched the
selection of factory workers, comparing the results of pre-employment tests with
various indicators of job performance (Vinchur & Koppes, 2014).

From 1929 to 1932, Elton Mayo (1880–1949) and his colleagues began a series of
studies at a plant near Chicago, Western Electric’s Hawthorne Works (Figure 1).

Figure 1
Hawthorne Works provided the setting for several early I-O studies.

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This long-term project took industrial psychology beyond just employee selection and
placement to a study of more complex problems of interpersonal relations, motivation,
and organisational dynamics. These studies marked the origin of organisational
psychology. They began as research into the effects of the physical work environment
(e.g., factory lighting level). However, the researchers found the factory's
psychological and social factors more interesting than the physical ones. These
studies also examined how human interaction factors, such as supervisorial style,
increased or decreased productivity.

Analysis of the findings by later researchers led to coining the term the Hawthorne
effect, which describes the increase in performance of individuals who are aware
researchers or supervisors are observing them. The original researchers found that
any change in a variable, such as lighting levels, led to an improvement in productivity;
this was true even when the change was negative, such as a return to poor lighting.
The effect faded when the attention faded (Roethlisberger & Dickson, 1939). Today's
Hawthorne effect concept is an essential experimental consideration in many fields
and a factor that must be controlled for in an experiment. In other words, an
experimental treatment of some kind may produce an effect simply because it involves
greater attention of the researchers on the participants (McCarney et al., 2007).

In the 1930s, researchers began to study employees’ feelings about their jobs. Kurt
Lewin also researched the effects of various leadership styles, team structure, and
team dynamics (Katzell & Austin, 1992). Lewin is considered the founder of social
psychology, and much of his work and that of his students produced results that had

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essential influences on organisational psychology. Lewin and his students’ research

included a crucial early study that used children to study the effect of leadership style
on aggression, group dynamics, and satisfaction (Lewin et al., 1939). Lewin was also
responsible for coining the term group dynamics, and he was involved in studies of
group interactions, cooperation, competition, and communication that bear on
organisational psychology.

Between 1927 and 1932, there was a shift in ideas about how to study groups in the
United Kingdom and Europe (Fraher, 2004). Several theorists, such as Sigmund Freud
(1925/1955) and Wilfred Bion (1961/2004), studied group relations in this period.
Bion’s (1961/2004) focus was on group attitudes to itself based on his theory of the
will of the group. Observing the tensions in groups, Bion acknowledged the primitive
state of an individual in a group who wished for everything to revert to the status quo
as being a barrier to learning but an opportunity for an onlooker to gain insight into
groups (Bion, 1961/2004; Sher, 2003).

Parallel to these studies in IOP, human factors psychology was also developing.
Frederick Taylor was an engineer who saw that if one could redesign the workplace,
there would be an increase in both output for the company and wages for the workers.
In 1911, he put forward his theory in The Principles of Scientific Management. His
book uses time and motion studies to examine management theories, personnel
selection, training, and work. Taylor (1911) argued that the principal goal of
management should be to make the most money for the employer, along with the best
outcome for the employee. He believed that the best outcome for the employee and
management would be achieved through training and development so that each
employee could provide the best work. Personnel selection is a process used by
recruiting personnel within the company to recruit and select the best candidates for
the job. Training may need to be conducted depending on the hired candidate's skills.
Often, companies will hire someone with a personality that fits in with others but may
lack skills. Skills can be taught, but personality cannot be easily changed.

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Taylor further believed that the best interests of both the organisation and the
employee were addressed by conducting time and motion studies for both the
organisation and the employee. Time-motion studies were methods aimed at
improving work by dividing different types of operations into sections that could be
measured. These analyses were used to standardise work and check people and
equipment's efficiency.

One of the examples of Taylor’s theory in action involved workers handling heavy iron
ingots. Taylor showed that the workers could be more productive by taking work rests.
This rest method increased worker productivity from 12.5 to 47.0 tons moved per day
with less reported fatigue and increased wages for the workers paid by the ton. At the
same time, the company’s cost was reduced from 9.2 cents to 3.9 cents per ton.
Despite these productivity increases, Taylor’s theory received much criticism at the
time because it was believed to exploit workers and reduce the number of workers
needed. Also controversial was the underlying concept that only a manager could
determine the most efficient method of working and that a worker was incapable of
this while at work. Taylor’s theory was underpinned by the notion that a worker was
fundamentally lazy, and Taylor’s scientific management approach aimed to maximise
productivity without much concern for the worker’s well-being. His approach was
criticised by unions and those sympathetic to workers (Van De Water, 1997).

Gilbreth was another influential Industrial and Organisational (IO) psychologist who
strove to find ways to increase productivity. Using time and motion studies, Gilbreth
and her husband, Frank, worked to make workers more efficient by reducing the
number of motions required to perform a task. She applied these methods to industry,
the home, office, shops, and other areas. She investigated employee fatigue and time
management stress and found that many employees were motivated by money and
job satisfaction. In 1914, Gilbreth wrote the book The Psychology of Management: The
Function of the Mind in Determining, Teaching, and Installing Methods of Least Waste,
and she is known as the mother of modern management. Some of Gilbreth’s
contributions are still in use today: You can thank her for the idea to put shelves inside
refrigerator doors, and she also came up with the concept of using a foot pedal to

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operate the lid of a trash can (Gilbreth, 1914, 1998; Koppes, 1997; Lancaster, 2004).
Gilbreth was the first woman to join the American Society of Mechanical Engineers in
1926, and in 1966, she was awarded the Hoover Medal of the American Society of
Civil Engineers.

Taylor and Gilbreth’s work improved productivity, but these innovations also improved
the fit between technology and the humans using it. The study of machine-human fit
is known as ergonomics or human factors psychology.

3.2.2 From World War II to Today

World War II also drove the expansion of industrial psychology. Bingham was hired as
the chief psychologist for the War Department (now the Department of Defense) and
developed new systems for job selection, classification, training, and performance
review, plus methods for team development, morale change, and attitude change
(Katzell & Austin, 1992). Other countries, such as Canada and the United Kingdom,
likewise saw growth in IOP during World War II (McMillan et al., 2009). In the years
after the war, industrial and organisational psychology became areas of significant
research effort. Concerns about the fairness of employment tests arose, and the ethnic
and gender biases in various tests were evaluated with mixed results. In addition,
much research has studied job satisfaction and employee motivation (Katzell & Austin,
1992).

The research and work of IO psychologists in employee selection, placement, and

performance appraisal became increasingly important in the 1960s. Organisations had
to adjust to the social, political, and legal climates of Civil Rights movements, and
these issues needed to be addressed by members of IOP in research and practice.

There are many reasons for organisations to be interested in IOP, such as so that they
can better understand the psychology of their workers, which in turn helps them
understand how their organisations can become more productive and competitive. For
example, most large organisations are now competing globally and need to
understand how to motivate workers to achieve high productivity and efficiency. Most

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companies also have a diverse workforce and need to understand the psychological
complexity of the people in these diverse backgrounds. Today, IOP is a diverse and
deep field of research and practice.

3.3 THE DEVELOPMENT OF INDUSTRIAL AND ORGANISATIONAL

PSYCHOLOGY ON THE AFRICAN CONTINENT

Open the learning material you downloaded from the library for this
Learning Unit. Study the content under the headings “IWO psychology in
South Africa” and “Historical development of Industrial and Organisational
Psychology in Africa” in De Kock (2018) to gain an understanding of how IOP
developed on the African continent. The learning material written by De Kock (2018)
describes IOP as Industrial, Work and Organisational Psychology (IWO). While the
terms differ, the concept is the same as IOP.

3.4 INDUSTRIAL AND ORGANISATIONAL PSYCHOLOGY VERSUS HUMAN

RESOURCES MANAGEMENT

There are critical differences between Human Resource Management and IOP. Bergh
and Geldenhuys (2013) describe Human Resource Management as a process that
involves supervision and management of employment systems (i.e. personnel, labour
relations, and administrative content). Industrial and Organisational Psychology,
compared to Human Resource Management, specialises in the application of
principles and theories related to solving and improving workplace behaviour in the
organisation. Organisations hire IO psychologists to administer assessments and are
responsible for organisational development. IO psychologists are generally
responsible for employee productivity, screening and development, and mental well-
being. Bergh and Geldenhuys (2013) indicate that IO psychologists play a significant
role in Human Resource Management, as they are regarded as behavioural experts
on human behaviour. As such, they are often classified under Human Resource
Management. For this reason, some IO psychologists have also become members of
the South African Board for People Practices (SABPP) because they sometimes work

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in or with human resources functions in the organisation. The SABPP endeavours to

professionalise human resource functions and work towards establishing human
resources management in the workplace as a recognised and respected profession.
The SABPP published a human resources competency framework and training
guidelines. Registration as a human resources professional with the SABPP offers a
different career route to undergraduate students in IOP who opted out of the
postgraduate studies required for registration as an IOP with the HPCSA. Should you
like to know more about the SABPP, its role, practices, and activities, please visit their
website: https://www.sabpp.co.za/about-us/index.

Study the De Kock (2018) section about “Key issues in the profession”. De
Kock (2018) states that the profession of IOP in South Africa has
experienced several identity crises. De Kock (2018) states that “less but
better regulation” is required to secure prospects for a more robust IOP profession in
South Africa. In addition, the profession needs to “reach out” to its African
counterparts.

3.5 THE FIELDS OF PRACTICE IN INDUSTRIAL AND ORGANISATIONAL

PSYCHOLOGY

Study the section in De Kock (2018) about the “Practice of IWO

Psychology” and “What do IO psychologists do” (De Kock, 2018). The
author states that IOP in South Africa is a popular career choice. Many
IO psychologists operate nationally and internationally in the private sector. Figure
5.5 in De Kock (2018) indicates what the typical activities of IO psychologists entail:

• Selection and assessment explores how organisations choose candidates

who have applied for opportunities and where they may best fit in the
organisation (Institute of Student Employers, 2022).
• Consulting psychology, which provides expert psychological guidance to
business and industry. It offers various services, such as individual
assessment, individual and group process consultation, organisational

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development, management coaching, and change management (American

Psychological Association, 2022).
• Career coaching, which helps people find greater fulfilment in their careers.
Career coaches assist individuals in establishing professional goals and
planning for obstacles in career choice (Noomii the Professional Coach
Directory, 2022).
• Organisational development and change management assist
organisations in building and sustaining a new desired state for the entire
organisation. An objectives-based approach to systems changes (Ascender a
Ceridian company, 2020).
• Training and development is growing employees’ knowledge, skills, and
abilities. In addition, it develops employees into managers and managers into
influential leaders (IBM, 2019).
• Human factors psychology, which “focuses on creating and improving
products, machines and environments to complement human
capabilities and maximise performance and safety”, according to Cherry
(2022).
• A researcher who systematically discovers and confirms facts when
investigating a new problem or topic to describe society and organisational
events to understand relationships and relatedness between individuals,
groups and systems, often by scientific observation methods (American
Psychological Association, 2022).
• Lecturer who is a subject matter expert who instructs students in tertiary
institutions in their fields of interest who is predominantly academic (123test,
2022).

Openstax (2022) summarises the main fields of IOP, its focus, and jobs within
each field in Table 1.

Table 1
Fields of Industrial Organisational Psychology

Field of IO Psychology Description Types of Jobs

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Industrial Psychology Specialises and focuses on Personnel Analyst

the retention of employees Instructional Designer
and hiring practices to ensure Professor
the least number of firings Research Analyst
and the most significant
number of hirings relative to
the organisation’s size.
Organisational Psychology Works with the relationships HR Research Specialist
that employees develop with Professor
their organisations and, Project Consultant
conversely, the relationship Personnel Psychologist
their organisation develops Test Developer
with them. In addition, it Training Developer
studies the relationships that Leadership Developer
develop between co-workers Talent Developer
and how organisational norms
influence that.
Human Factors and Research advances and Professor
Engineering changes in technology to Ergonomist
improve the way technology is Safety Scientist
used by consumers, whether Project Consultant
with consumer products, Inspector
technologies, transportation, Research Scientist
work environments, or Marketer
communications. Seeks to be Product Development
better able to predict how
people can and will utilise
technology and products to
improve safety and reliability.
Humanitarian Work Works to improve the Professor
Psychology conditions of individuals who Instructional Designer
have faced severe disasters Research Scientist
or are part of an underserved Counsellor
population. It focuses on Consultant
labour relations, enhancing Program Manager
public health services, and Senior Response Officer
effects on populations due to
climate change, recession,
and diseases.

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Occupational Health Concerned with the overall Occupational Therapist

Psychology well-being of both employees Research Scientist
and organisations. Consultant
Human Resources (HR)
Specialist
Professor

As De Kock (2018) states, IO psychologists do not generally limit themselves to a

single role but instead tend to execute a broad range of functions, which may or may
not include the functions described in this section.

Study the “Key issues in practice” De Kock (2018) mentions because these
pertain to “selection fairness”, a contentious issue in the history of South
Africa. Opportunities and caution around “Social entrepreneurship” seem
hot in business and business education. In the previous section, you learned that one
of the fields of practice in IOP is that of a researcher. De Kock (2018) stated that there
are diverse “research themes” for South African researchers to investigate that are
also commonly studied worldwide. In Figure 5.6, the author indicates IOP research
trends and significant themes in IOP research that you need to note. However, several
“Research challenges” De Kock (2018) identified exist. As the author mentions,
familiarise yourself with these and the suggestion for “Building scientific capacity” in
South Africa and Africa.

3.6 INDUSTRIAL AND ORGANISATIONAL PSYCHOLOGY AS A PROFESSION

Study the De Kock (2018) section, “The Profession of Industrial and

Organisational Psychology”. De Kock (2018) defines what professional
work entails. The author further describes the “Professional bodies” to
which professionals in the fields of industrial and organisational psychologies in
South Africa belong, the “Regulatory institutions” that govern the profession, and the
“Professional associations” which were established over the years to promote the IO
psychologists’ interests as psychology professionals. Familiarise yourself with the
regulations in the profession around “certification and training”, the “certification

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categories”, “scope of practice”, and “continuous professional development “for IO

psychologists.

Should you be following a career in IOP, you may be interested in additional reading
material found below. You will not be assessed on this additional reading material.
• HPCSA web page at
https://www.hpcsa.co.za/?contentId=0&menuSubId=52&actionName=For%20
Professionals
• The scope of practice of the profession
• Minimum standards for the training of Industrial Psychology
• The Master’s degree offered by the Department of Industrial and
Organisational Psychology
https://www.unisa.ac.za/sites/corporate/default/Colleges/Economic-and-
Management-Sciences/Schools,-departments,-bureau,-centres-&-
institutes/School-of-Management-Sciences/Department-of-Industrial-and-
Organisational-Psychology/Masters-degrees

3.7 CONCLUSION

This Learning Unit provided a broad overview of the industrial and organisational
psychology profession, specifically in South Africa. Looking back on the profession's
origins, you understand the purpose of Industrial and Organisational Psychology after
studying this Learning Unit – how the profession developed, the critical issues in the
field and the field of practice. In addition, you will better understand the scope of
practice and the regulatory bodies that govern IO psychologists and the profession.

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REFERENCES
123test. (2022). Profession psychology lecturer. Retrieved September 28, 2022, from
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American Psychological Association. (2022a). APA dictionary of psychology.
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psychology
American Psychological Association. (2022b). APA dictionary of psychology.
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Ascender is a Ceridian company. (2020, November 15). What is organisational
development? Ascender HCM Pty Ltd. Retrieved September 22, 2022, from
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Bergh, Z., Geldenhuys, D. (2013). Psychology in the work context (5th ed). Oxford.
Bion, W. R. (2004). Experiences in groups and other papers. Taylor & Francis.
(Original work published 1961)
Cherry, K. (2022, March 8). The basics of Human Factors Psychology. Verywell Mind.
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human-factors-psychology-2794905
De Kock, F. (2018). Industrial, work and organisational psychology in Africa. In D. O.
Anderson & H. K. Sinangil (Eds.), The Sage Handbook of Industrial, Work and
Organizational Psychology (pp. 110–125). SAGE Publications Ltd.
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Fraher, A. L. (2004). Systems Psychodynamics: The formative years of an
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