PSYCHOLOGY 10A: INDUSTRIAL PSYCHOLOGY

Module I: The Nature and Scope of Industrial Psychology

Scope of the Module:

This module consists of three lessons namely:
Lesson 1 A Brief History of Industrial Psychology
Lesson 2 Areas of Industrial Psychology
Lesson 3 The Importance and Practical Value of Industrial Psychology

Overview of the Module:

This module is an introduction to the subject matter, Industrial Psychology, how and
when it began, its scope, importance and practical value in the area of work.

Objectives of the Module:

At the end of this module, the student should be able to:
1. trace the beginnings of industrial psychology, its founder and the role of
Hawthorne studies;
2. give the different areas of industrial psychology; and
3. explain the importance and practical value of industrial psychology.

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Psychology 10A
Module I, Lesson 1:
A BRIEF HISTORY OF INDUSTRIAL PSYCHOLOGY

Lesson Objectives:
At the end of the lesson, the student should be able to:
1. trace the beginnings of industrial psychology; and
2. list down some important events in the history of industrial psychology.

Professor Walter Dill Scott: Founder

Industrial Psychology is one of the fields of psychology that deals with the
application of the methods, facts and principles of the science of behavior and mental
processes of people at work. It formally began in the early twentieth century. Although it
is hard to determine the precise origin and founder, nevertheless many accord the
honor to Professor Walter Dill Scott, who in 1901 stated the potential use of psychology
in advertising.
In 1903 a book on The Theory of Advertising was published. This book is generally
considered as the first that deals with psychology as an aspect of the world of work. In
the same year a second book came out by Hugo Munsterberg, The Psychology of
Individual Efficiency. This book deals more broadly with industrial psychology.

The Influence of Industrial Psychology during World War I

In World War I, Industrial Psychology emerged as an important and useful discipline
when the US army made a request for help. The US army was faced with the necessity
of screening and classifying millions of recruits. The army commissioned a number of
psychologists to devise a general intelligence quotient (I. Q.). This endeavor led to the
development of additional tests for the use of selecting candidates for officer and pilot
training and for other military classifications that required special activities. This military
experience provided the basis for a dynamic proliferation of industrial psychology. The
tests used by the army were adapted for civilian use and new ones were designed for a
variety of situations.

The Hawthorne Studies

In 1924, the scope of the field broadened. The Hawthorne studies, a famous series
of studies were conducted in industrial psychology. This study was conducted in
Hawthorne, Illinois, the plant of the Western Electric Company (WEC). This study began
as an investigation of the effects of the physical aspects of the work environment on

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worker efficiency. The study found out that the social and psychological conditions of
the work environment were of potentially greater importance than the physical work
condition. This research program brought industrial psychology beyond the selection
and placement of workers to the more complex problems of human relations, morale
and motivation. It opened up whole new areas of exploration into such factors as the
quality and nature of supervision, informal groups among workers, employee attitude
toward their jobs, communication and a host of other social - psychological forces now
recognized as capable of influencing even determining a worker's efficiency, motivation
and job satisfaction. Although the Hawthorne studies have been criticized for lack of
scientific rigor, nevertheless, it had an impact on the way in which the nature of work
came to be viewed and on the direction of industrial psychology itself.

World War II as a Factor in the Development of Engineering Psychology

During World War II in 1945, more than 2,000 psychologists were involved in the US
war effort. More complex human skills were required to operate new sophisticated
weapons like: planes, tanks and ships. This also led to the development of an entirely
new area of industrial psychology called engineering psychology or human engineering.
This supplies information on human capacities and limitations for operating
sophisticated equipment.
As a result, industrial psychology gained stature for its successful contribution to the
war effort. Psychologists who used to work in isolation in laboratories realized there
were more important and challenging problems in the real world and that they could
effectively contribute to finding solutions to them. Government and industry leaders
were made aware of the significant role of psychologists.
In 1970, the Division of Industrial Psychology was changed to Division of Industrial
Organizational Psychology. In 1982, it became the Society for Industrial and
Organizational Psychology. The field is often referred to as Industrial or Organizational
Psychology.

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Psychology 10A
Module I, Lesson 2:
AREAS OF INDUSTRIAL PSYCHOLOGY

Lesson Objectives:
At the end of the lesson, the student should be able to:
1. describe the different areas of Industrial Psychology; and
2. give the functions of each area.

Industrial psychology as defined in Lesson 1 deals with the world of work. It

influences all levels and phases of relationship between people and their work.
The use of techniques, tools and tactics is an area of industrial psychology that
deals with measurement through the use of testing materials like: IQ test, Aptitude tests,
Personality tests and others.
Employee selection is another area of industrial psychology. Perhaps this is the
most important problem faced by any organization. To select qualified persons to
perform the various jobs required is not simple. The job to be done must match with the
qualities, skills and abilities of the workers. Once there is a mismatch, trouble arises and
job performance is affected.
Another is performance appraisal. This is an activity that will continue throughout
one's working career. It is a continuous evaluation and upgrading on the quality of the
services rendered by a worker.
Training and development is also an important area in industrial psychology. A
poorly- selected individual can cause frustration for himself and his employer, so can
poorly- trained workers. The development of specific skills, attitudes and capacities
contribute in maximizing the individuals' potentials for better job performance. The
individual worker under training and development is being prepared and equipped as
updated with necessary skills required for the job.
Leadership in the workplace is another area in industrial psychology, which is key
aspect in the worth of any organization. The best kind of leadership inspires and
motivates workers to produce at optimal level in diverse work situations. It is necessary
for the continued growth and survival of any organization that the most competent
people be placed in positions of leaderships and that, once there, they exercise their
influence in the most effective manner.
Motivation, job satisfaction and job involvement are additional factors to be
considered so that workers are efficient and contented in their jobs. It is vital to discover
and correct factors like: inefficiency, ineffectiveness and uncooperativeness in the work
place that can impair the quality of working life before they have serious economic

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consequences on the organization.
Organizational psychology studies the impact of structural aspects on productivity,
motivation and morale. The organization for which we work fosters a certain climate that
includes the formal chain of command and the centralization and decentralization of
power. Aside from formal structural characteristics, informal climates also develop and
reflect the nature and characteristics of cliques or small group workers. Sometimes
these informal groups set norms and standards of behavior that vary with those
imposed by the organization, a situation that obviously affects production.
Conditions of work is another area to look into since the physical aspects of work
like: lighting, temperature, humidity, noise level, location of equipment(s) and working
hours affect production level.
Engineering psychology or human engineering is one area that provides the best
functional relationship between the person and the machine. This is accomplished
through proper design of the machine to compensate for the human operator's
weaknesses and to capitalize on their strengths. Moreover, it determines the most
efficient and satisfying ways in which employees and the new technology can interact.
Employee safety and health are also considered. Accidents in the workplace and
ailments can result in economic losses for the company. Serious efforts are made to
identify job-related factors and individual personality as significant to employees’ safety
and health that may contribute to ailments or accidents. Installation of safety devices on
potentially dangerous equipment, selection and training of employees for safety
awareness and information programs are designed to help maintain safety measures.
Assistance programs are made to assist those workers who have the habit of excessive
smoking, drinking and drug use that are hazardous to health.
Stress at work is also given serious attention as it has harmful effects to the physical
and mental health of employees. Stress can interfere with production particularly on the
quality of products. Prolonged stress in the workplace can lead to serious and fatal
ailments such as nervous breakdown or at worst suicide.
Psychology and the consumer or the consuming public is another area of study. By
developing a pool of information on the psychology of consumers such as: the size and
nature of the potential market for a product, the effectiveness of various advertising
appeals and campaigns, customer reaction to different products, and the motivation and
needs of the buying public, can ascertain producers on how to handle product growth
and development.

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Psychology 10A
Module I, Lesson 3:
THE IMPORTANCE AND PRACTICAL VALUE
OF INDUSTRIAL PSYCHOLOGY

Lesson Objectives:
At the end of the lesson, the student should be able to:
1. list down the four importance and practical values of industrial psychology;
and
2. demonstrate its applicability in four areas.

Industrial psychology influences every aspect of one's life at work and much of one's
life outside of work as well. It helps in the recruitment and selection of employees for
specific job. It identifies factors that can affect work. It provides solutions to problems
that arise in the work place. It develops ways and means in improving the physical and
mental stability of working conditions. It continues to study and research for more
possible services that will answer in-coming needs and problems that may arise due to
rapid change in all areas of the total environment.
Industrial psychology is highly valued in any organization because of its practicality.
It reduces costly expenditures and increases profit margin in any organization.
One psychologist refers to this as "contribution to the bottom line.” He presented four
areas in which industrial psychology can save money for an organization.
Correcting absenteeism is one of the perennial problems of any organization.
Employees who fail to show up for work cost their company money in the sense that the
flow of production slows down due to lack of personnel to do the job.
Reducing the rate of turnover wherein employees quit from their job is another
benefit of industrial psychology. The company loses the money it spends in selecting
and training.
Enhancing job satisfaction is another major concern. An increase in the number of
contented employees can reduce grievances, strikes, absences, tardiness and fast
turnovers.
Personnel solution methods ensure that only the most highly qualified applicants are
hired.
The big influence of industrial psychology inside and outside the work sets the
direction of the company towards shaping its future.

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Psychology 10A
Module I, Lessons 1 to 3
SELF-PROGRESS CHECK TESTS

LESSON 1

I. Matching Type.
Column A Column B
_____ 1. IP a. The Psychology of Industrial
_____ 2. Society of Industrial and Efficiency
Organizational Psychology b. Industrial Psychology
_____ 3. Hawthorne Studies c. Founder
_____ 4. Prof. Walter Dill Scott d. Division of Industrial and
_____ 5. Hugo Munsterberg Organizational Psychology
_____ 6. EP e. Engineering Psychology
_____ 7. Human Engineering f. Illinois
_____ 8. DIOP g. Human Psychology
h. Organizational Psychology

II. Make a structural diagram tracing the development of Industrial

Psychology. (12 points)

LESSON 2

I. Identification.
_____ 1. An area of industrial psychology that deals with matching worker with the
work.
_____ 2. A program that develops specific skills, attitudes and capacities to
maximize the individual's job performance.
_____ 3. The continuous evaluation and upgrading of services rendered.
_____ 4. The three factors that have considerable impact on the efficiency of any
organization.
_____ 5.
_____ 6.
_____ 7. Studies the impact of the structural aspect on productivity.
_____ 8. Another name for human engineering.
_____ 9. Provision of the installation of safety devices and assistance programs.

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_____ 10. Results in harmful effects of the physical and mental health of employees.
_____ 11. Considers the motivation and needs of the buying public.
_____ 12. Relates to the physical aspects of work.

II. Essay: Choose one area of industrial psychology. Describe the area, the
function of the area and how its function contributes to the quality of job
performance. (8 points)

LESSON 3

Enumeration: (2 pts. each)

1. Enumerate any four importance of industrial psychology.
2. What are the two practical values of industrial psychology?
3. Give the four areas in which industrial psychology can help save money for the
organization. Explain each item briefly.

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Psychology 10A
Module I
ANSWERS TO THE SELF-PROGRESS CHECK TESTS

LESSON 1

I. 1. b 2. h 3. f 4. c 5. a 6. e 7. g 8. d
II. The development of Industrial Psychology. (12 points)
Prof. Walter Dill Scott
1901

Theory of Advertising
The Psychology of Industrial Efficiency
Hugo Munsterberg
1903

Hawthorne Studies
1924

World War II
2,000 psychologists
1945

Division of Psychology changed to Division of

Industrial Organizational Psychology
1970

Society of Industrial Psychology

1982

LESSON 2

I.
1. Employee Selection 5. Job Satisfaction
2. Training and Development 6. Job Involvement
3. Performance Appraisal 7. Organizational Psychology
4. Motivation 8. Engineering Psychology

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9. Employee Safety and Health
10. Stress at Work
11. Psychology of Consumer
12. Condition of Work

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II. An example of an area in industrial psychology is safety and health. A safe
and healthy environment will result in employees being relaxed and in good
health hence he contributes to the quality of job performance.

LESSON 3

1. a. It helps in the recruitment and selection of employees for specific job.

b. It identifies factors that can affect work.
c. It provides solutions to problems that arise in the work place.
d. It develops ways and means in maintaining the balance between worker
and work.
2. a. It reduces costly expenditures.
b. It increases profit margin.
3. a. Absenteeism - flow of production slows down
b. Turnover - money for training and development is lost
c. Job Satisfaction - dissatisfaction results in strikes
d. Personnel Selection - chooses only the most highly qualified ones

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