Schultz10e ch01 (1)

Schultz & Schultz 10e 1
Copyright © 2010 Pearson Education, Inc.,
Upper Saddle River, NJ 07458. All rights reserved
Psychology and Work Today
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Learning Objectives
After reading this chapter, you should be able to:
• Describe Industrial-Organizational (I-O) psychology, what I-O
psychologists do, and where they work
• Outline the scope and history of I-O psychology
• Understand how I-O psychologists conduct research
• Identify the major areas of I-O psychology
• Explain the contemporary challenges facing I-O psychologists
• Know what they can do with an I-O major
• Describe the problems faced by I-O psychologists

What are the top jobs in America?
• Study reported in Money magazine
• Criteria:
• Salary
• Stress level
• Flexible hours
• Working conditions
• Opportunities for creativity
• Ease of entry and advancement

Top Ten Jobs in America according
to the Money study:
1. Software engineer
2. College professor
3. Financial adviser
4. Human resource manager
5. Physician’s assistant
6. Market research analyst
7. Computer/IT analyst
8. Real estate appraiser
9. Pharmacist
10. Psychologist

Relevance of I-O Psychology
• I-O Psychology is all about the world of
work. Healthy adults:
• Love: extending one’s self (i.e., working) for
the benefit of others or one’s self
• Work: putting forth effort and energy to
accomplish a goal
• Work that engages one’s skills  happiness

Why Do We Work?
• Is it just about the money?
• What else is there?
• Personal satisfaction, fulfillment, and pride
of accomplishment
• Emotional security, self-esteem, and
contentment
• Identity and status, friendships, and
belonging

Is Work a Four-Letter Word?
• Quote from a very famous man
• Apparently had everything
• Confided to his first cousin the night before he died
• “I’d give all this up to lead a normal life and have my
wife and family and a good job I could take pride in
and provide for my family. I miss ‘Cilla. I miss what
we could have had if things handn’t gotten out of
hand. I don’t know if I could have done any
differently. I’m so tired of being ________
______________” (Leasman, 2000, p. 89).

What is I-O Psychology?
• The application of the methods, facts,
and principles of psychology to people at
work.
• It is PSYCHOLOGY: The science of
behavior and mental processes
• It is APPLIED psychology: practical; used to
solve real world problems

What Is I-O Psychology
• It is a SCIENCE
• Deals with observable behavior
• Behaviors; what people do
• Behaviors reflect underlying psychological
processes
• Behaviors can also influence psychological
processes
• Empirical in its approach to research
• Objective in its methods and results

What is Science?
• Assumption: Order in nature
• Cause and effect
• Nature follows laws
• Events happen for reasons
• Behavior is lawful and understandable
• E.g., After 18 weeks of selling, my weekly sales jumped
from M = $600 to $1500
• The Law of Social Proof
• Science has two rules
• There are no sacred truths
• Whatever is inconsistent with the facts must be discarded
or revised

What is Science?
• The hallmark of science is empiricism,
knowledge based on observable, measurable
events.
• Observables
• Movements
• Speech
• Facial expressions
• Job production
• Un-observables
• Motivation
• Thoughts
• Wishes
• Emotions

Open Mouth…

I-O Psychology Is Strongly
Rooted in Free Market Capitalism
• An individual who “intends only his own gain”
is “led by an invisible hand to promote an end
which was no part of his intention. Nor is it
always the worse for society that it was no
part of it. By pursuing his own end, he
frequently promotes that of society more
effectually than when he intends to promote it.
I have never known much good done by those
who affect trade for the public good.”
Adam Smith (1776), The Wealth of Nations

Types of Spending (from Friedman
& Friedman, 1979, 1990)
Spent on:
You
Spent on:
Others
Your Money
Type I
Spending
Type II
Spending
Someone
Else’s
Money
Type III
Spending
Type IV
Spending

I-O Topics
I-O
Psychology
Human Resources
Development
Organizational
Psychology
Workplace
Characteristics
Engineering
Psychology
Consumer
Psychology
Selection
Testing
Performance appraisal
Training &
development
Leadership
Motivation, satisfaction,
involvement
Organization
Working conditions
Safety, violence, &
health
Stress

Psychology
Applied
Basic, Academic,
or Scientific
Learning
Physiological
Personality
Social
Quantitative
Counseling/Clinical
Health
School
Forensic
I-O
Applied vs. Basic Psychology

I-O Research Methods
• Observe the behavior of employees on
the job under well-controlled and
systematic conditions
• Record behavioral responses
• Vary the conditions and measure
resulting changes
• Look, listen, measure, and record
according to scientific method

Pioneers in I-O
• Wilhelm Wundt (1832-1920)
• First psychology lab, 1879
• University of Leipzig
• Walter Dill Scott (1869-1955)
• 1919, first consulting firm (> 40 clients/corps.;
advertising, employee selection, & management)
• The Theory and Practice of Advertising (1903)

Pioneers in I-O
• Hugo Münsterberg (1863-1916)
• The Psychology of Industrial Efficiency (1913)
• Goal of improving worker efficiency
• Used tests to measure skills and match workers to
jobs
• Conducted research in the workplace
• Wrongfully accused of being a German spy in WWI
• Bruce V. Moore (1921), first Ph.D. in industrial
psychology

The Pioneers of I-O
• Roser Reeves (1930s), Ted Bates & Co.
• The blind beggar and the beautiful spring day
• ______ ______ ______“I am blind”
• Principles engaged: 1. The contrast principle;
• 2. the sympathy  compensation principle
• Reeves’ Unique Selling Approach (USA)
• Proposition; must be unique and strong (i.e., tapping into
psychological principles)
• The Mars and Murrie Co. M & M’s: “The chocolate that melts
in your mouth, not in your hand”
• Apple’s IPhone, i Tunes, i Messages, and i Pads, gave rise
to i Shares by Blackrock, i Comfort Sleep System by Serta.

The Roots of I-O Psychology
• Roots of modern I-O in traditional
experimental psychology
• Different experimental cells
• Ps randomly assigned to cells
• Average determined for each cell
• Which treatment works best in general?
• Individual differences not considered
• Implementation in I-O: Which one production
method works best, in general?

Reaction Time Experiment
0
0.2
0.4
0.6
0.8
1
1.2
Simple Choice Complex
Reaction
Time

Roots: Differential Psychology
• Roots also in differential psychology:
• the identification, description, and
measurement of the ways in which people
vary in abilities, traits, intelligence, interests,
etc.
• Personality psychology is one example
• Differential psychology, came to prominence
• Darwin (1859)
• Binet (1900)
• WWI (1914 - 1918), USA entered in 1918

Roots: Psychological
Testing in WWI (1918)
• WWI marked the emergence of I-O
psychology as an important discipline
• Testing
• Army Alpha
• For recruits who could read & write
• Army Beta
• For recruits who couldn’t read or speak English

Roots: Psychological
Testing in WWI (1918)
• Testing
• Personal Data Sheet
• To detect neurotic tendencies
• Precursor to the MMPI
• Officer & pilot selection tests
• After war, returning vets fostered testing
programs for business and industry

Roots: Industrial Engineering
(1900)
• Time-and-motion studies: An analysis of
the units of work in industrial production
• Design and arrangement of tools,
machines, and the work space
• Brick laying
• Surgery
• Efficiency experts
• Cheaper by the Dozen
• Frank B. Gilbreth and Ernestine Gilbreth
Carey (1949)

Roots: Summary
• About 1900 until about 1930
• Industrial Psychology (alias, Economic
Psychology, Münsterberg, 1913)
• Experimental psychology—What work space
layout works best in general?
• Differential psychology—What type of person
might be best for the job we have?
• Industrial engineering—How can this job be
done most efficiently?

Roots: The Hawthorne Studies
• Western Electric Co. Hawthorne Works
• Long-term, 12-year study begun in 1924
(Roethlisberger & Dickson, 1939)
• Studied effects of work environment on employee
efficiency
• Initial question: What is the effect of illumination on
production?
• Study 1: Pre-post design, no clear results (Within-
Subjects)
• Study 2: Ss were matched regarding experience and base-
rate production (Between-Subjects Design)
• Randomly assigned to experimental and control groups
• Results: Both groups increased production equally

• Study 3: Controls were tightened even more
• Illumination was increased, decreased, or left
unchanged
• One group maintained production despite a decrease
in illumination of 70%!
• Study 4: Researchers only pretended to change
the bulbs/illumination
• Workers expressed thanks
• Continued to increase production.

• Other early studies investigated variables
like temperature, humidity, and rest periods.
• Conclusions:
• Physical aspects are not as important as initially
supposed (perceptions > objective reality)
• Workers’ feelings and attitudes affect their work
behavior
• Social-psychological factors:
• Leadership
• Informal work groups (norms)
• Lines of Communication

• The Hawthorne Effect: The tendency to
work harder when participating in
something new and special, a novelty
effect.
• The Social Facilitation Effect: The
tendency for behavior to be energized
when one is aware of being observed.

The Hawthorne Effect
Behavior
Observed
Behavior Not
Observed
New Conditions
Hawthorne +
Social
Facilitation
Hawthorne
Effect
Old Conditions
Social
Facilitation
Baseline
Production

Roots: WWII and Engineering
Psychology
• More than 2000 psychologists contributed to the war
effort
• Focused on testing, classifying, and training millions of
recruits
• Complex weapons sparked engineering
psychology/human factors psychology
• human abilities and limitations
• equipment design
• work-space design
• Increased stature of I-O to Government and Business

More Contemporary I-O
Psychology
• Circa 1950, three relatively independent
movements
• Experimental psychology  industrial
engineering movement  human
engineering or human factors psychology
• Differential psychology  testing movement
 personnel psychology  human
resources psychology
• Social psychology  human relations
movement  organizational psychology

Contemporary I-O Psychology
• In 1973 Division 14 of APA changed from
• The Division of Industrial Psychology to
• The Division of Industrial and Organizational
Psychology (I-O for short).
• Now Division 14 is called The Society for
Industrial and Organizational Psychology or
SIOP

Challenges for I-O Psychology
• Virtual workplace and virtual workers
• Contingent or temporary workers
• Worker involvement
• Technological advances
• Worker literacy
• Globalization
• Increasing demographic diversity
• Generational differences in values

Generational Differences
• Many different generations with different
expectations and needs occupy same
workplace
• The Silent Generation – 1922 to 1945
• Baby Boomers – 1946 to 1964
• Generation X – 1965 to 1979
• Generation Y – 1980 to around 1995

Marketable I-O Skills
• Psychological testing, and survey
construction and validation
• Human resources selection and
placement
• Performance appraisal
• Fair employment practices
• Employee training

Jobs for I-O Psychologists
• Human Resources Consultant
• Market Research
• Assessment Centers
• Manager of Psychological Services
• Organizational Planning and Development
• Training
• Academics

Essential Courses and Skills for I/O
1. Psychological Tests and Measurements
2. Research Methods and Design
3. Statistics/Computer Packages
4. Psychological Report Writing
5. Clinical/Counseling/Interviewing Skills
6. Theories of Organizational Behavior
7. Human Resource Development & Training
8. Performance Appraisal
9. Legal Issues (EEOC)
10. Job Analysis

Annual Pay for I-O Psychologists
• Masters Degree
• Median: $79,000
• All Starting Masters Degree Psychologists Median: >$55,000
• PhD
• Median: $98,500
• All Starting PhD Psychologists Median: $74,000
• But remember—there is more to job satisfaction than pay.
I-O psychologists are typically high in overall job satisfaction
also because they are in jobs that “make things happen.”
Source: APA Research Office (2007); Khanna & Medsker (2007)

Some Practicing I-O Psychologists
• Amy Powell-Yost, Ph.D., Univ. of South Florida
• Director, Human Resources, Capital One Financial
Corporation, Tampa Bay, FL
• M. Scott Myers Applied Research Award, SIOP, 2012
• Whitney Helton Fauth, Ph.D., Univ. of Oklahoma
• President, Whitney Fauth Consulting, San Diego, CA
• Gina Scott Ligon, Ph.D., Univ. of Oklahoma
• Associate Professor, Villanova University, Villanova, PA
• Katrina Bedell-Avers, Ph.D., Univ. of Oklahoma
• Human Factors Lab, Federal Aviation Administration, OKC

Problems Faced by I-O Psychologists
• Fraudulent practitioners
• Credentials and certification
• Communication with management
• Resistance to new ideas
• Research versus application?

How Is The Text Organized?
Psychology &
Work Today
Practice of
I-O Psychology
Human Resources
Development
Organizational
Psychology
Workplace
Characteristics
Engineering
Psychology (13)
Consumer
Psychology (14)
Tools, tactics &
techniques
of Science (2)
Recruiting & selecting
employees (3 & 4)
Evaluating employee
performance (5)
Employee training
& development (6)
Organizational
leadership (7)
Motivation,
satisfaction, &
job involvement (8)
Organizational
psychology (9)
Working conditions
(10)
Safety, violence,
& health in the
workplace (11)
Stress in the
workplace (12)
Principles, practices
& problems (1)

Key Terms
• Industrial Organizational (I-O) Psychology
• Hawthorne Studies

Schultz10e ch01 (1)

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