Problems & Limitations of Industrial Psychology

cia l & in du st rial
so
p sy ch ol og y
ja Khopkar
with Rutu
Lesson For The Day
Problems & limitations

of industrial psychology
today's
learning
objectives
Problems & limitations of
industrial psychology
What are the functions of
Functions of Industrial psychology
understanding employee objectives

encouraging coordination among employees
imparting training for self development
channeling organisational objectives with employee
needs to motivate them
communicating organisational objectives to
employees
introducing new ideas
What are the limitations of
responding to globalization
Globalization has led to the growth of multinational corporations
(MNCs) making products and services available all over the world.
Business nowadays is strictly driven by the market demand

irrespective of the boundaries, distances created between
countries.
Organisations are no longer restricted to trade in a particular
region.
An organisation’s products or services are traded across nations
using technologies, such as mass communication, Internet, e-
commerce, etc.
responding to globalization
For example, Tata International is a leading distributor of Tata
Motor vehicles in 11 countries of Africa.
However, globalisation presents several issues for the organisation

such as human resource scarcity in underdeveloped nations,
increased levels of competition, scarcity of resources, etc.
Organisations need to overcome these issues to benefit from the

process of globalisation. For example, providing incentives and
fringe benefits to employees can help managers to retain the
human resource in the organisations.
managing workforce diversity
Globalization has resulted in human force from different

countries to work jointly together resulting in workforce diversity.
This has offered organizations the opportunity to recruit

employees from different regions, gender and ethnic
backgrounds.
managing workforce diversity
Organizations are becoming more heterogeneous in their human

resource, however, the managers are confronted with the
challenge to pacify the differences, retain employees and
promote harmony at workplaces.
For example, managers prefer hiring bilingual employees who

can mediate and reduce language and communication barriers
among employees from different cultural backgrounds.
improving quality and productivity
Increased competition has enhanced the focus on quality and

productivity in organizations.
Managers are aware that improvement in quality and

productivity cannot be achieved without the involvement of
the employees.
OB stresses on the importance of motivating employees to

accept changes and accomplish organizational objectives.
developing employee skills
Changes in the external environment, organisational structure
and increasing competition require that the knowledge and skill
base of employees is constantly upgraded.
Unless employees and executives are equipped to possess the

required knowledge and skills, organisational objectives cannot
be achieved.
Development of skills and knowledge of employees can be

achieved through training and development programmes, career
development programmes, induction and socialisation, etc.
promoting innovation & change
In order to overcome competition, organizations constantly
improve their quality, and develop innovative products and
services.
For example, Compaq offers powerful personal computers, which
are more affordable than those offered by Apple. Similarly, Tata
Nano brought about a revolution in the automobile sector by
creating the cheapest car for the Indian middle class.
I/O is important to offer employees, the freedom to showcase

their knowledge and skills and present new ideas for innovation
and change.
coping with temporariness
Various external forces, such as technological factors, political

and economic factors, introduction of e-commerce, etc, result in
constant organizational change.
Earlier, organizations saw long periods of stability, interrupted by

a short period of change.
However, existing organizations observe continuous changes in

their processes. Organizations face the problem of temporariness
in all areas. The challenge lies in updating the knowledge and
skills of employees to face the changes.
empowering people
Empowerment refers to delegate powers and responsibilities to

employees by eliciting some degree of ownership among them.
OB stresses on the fact that encouraging employees to

participate in decision making enhances their commitment to
working, significantly.
empowering people
Therefore, many organizations are promoting self-managed

teams, where employees operate largely without seniors.
This reshapes the relationship between managers and the

employees.
Managers mainly act as coaches, advisors and facilitators to help

employees in completing their assignments with minimal
guidance.
encouraging ethical behavior
Employees face ethical dilemmas at workplace with increasing
complexity in the completion of the assigned activities.
For example, discovering the discharge of untreated effluents into

the river poses an ethical dilemma to a chemical industry worker
of whether to whistle blow or not. This may lead to demotivated
employees and dissatisfaction.
Managers need to encourage an ethically healthy climate for the

employees to avoid ambiguity regarding what constitutes right or
wrong behaviour.
see you in the next class !

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cia l & in du st rial

Problems & limitations

understanding employee objectives

Business nowadays is strictly driven by the market demand

However, globalisation presents several issues for the organisation

Organisations need to overcome these issues to benefit from the

Globalization has resulted in human force from different

This has offered organizations the opportunity to recruit

Organizations are becoming more heterogeneous in their human

For example, managers prefer hiring bilingual employees who

Increased competition has enhanced the focus on quality and

Managers are aware that improvement in quality and

OB stresses on the importance of motivating employees to

Unless employees and executives are equipped to possess the

Development of skills and knowledge of employees can be

I/O is important to offer employees, the freedom to showcase

Various external forces, such as technological factors, political

Earlier, organizations saw long periods of stability, interrupted by

However, existing organizations observe continuous changes in

Empowerment refers to delegate powers and responsibilities to

OB stresses on the fact that encouraging employees to

Therefore, many organizations are promoting self-managed

This reshapes the relationship between managers and the

Managers mainly act as coaches, advisors and facilitators to help

For example, discovering the discharge of untreated effluents into

Managers need to encourage an ethically healthy climate for the

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