discussion
Industrial/Organizational Psychology Michelle Rosser-Majors, PhD— Ashford University
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Learning Objectives
After reading this chapter, you should be able to
· Define industrial/organizational psychology.
· Understand the evolution of industrial/organizational psychology and the major theories that have shaped it.
· Explain the importance of accurate and effective selection, assessment, and training.
· Discuss the importance of employee motivation and its relationship to organizational performance.
· Apply ethics to the field of industrial/organizational psychology.
· Apply the skills developed within the domain of industrial/organizational psychology to one's own career goals.
Sabrina Willis has just been promoted to lead a team of highly skilled, but poorly motivated pharmaceutical representatives. For over 10 months, this team has experienced many challenges in meeting its quotas, and thus Sabrina has been asked by her new supervisor to develop a 6-month improvement plan to get the team meeting the target sales goals set by the company.
Specific areas associated with industrial/organizational (I/O) psychology that support Sabrina in her efforts include an understanding of performance assessment, strategies for improving individual and team performance, the importance of effective training, and strategies for motivating individuals and teams.
Sabrina considers the following questions to guide her in developing an improvement plan for her new team:
· What are some of the organizational changes that have occurred over the past year?
· What events and resources could hinder or help the team’s strategy?
· What strengths do each of the team members have?
· What are the global trends in pharmaceutical sales in the past year?
· How long has each team member been a part of the company? This team?
· What personal goals does each team member have for being in pharmaceutical sales as a career?
· What does the team believe has affected their difficult past 10 months?
Using her knowledge, and taking her team members’ feedback into account, she designs a 6-month plan that includes monthly one-on-one meetings with each team member to review goals and discuss challenges and an incentive program to keep team members motivated and focused.
Sabrina’s challenge reminds us of how I/O psychology can support us in our professional careers by developing skills associated with workplace issues facing individuals, teams, and organizations.
8.1 Introduction to I/O Psychology
Industrial/organizational (I/O) psychology is the study of human behavior associated with workplaces and organizations. I/O psychology is a combination of two areas of psychology: industrial and organizational. Industrial psychology studies the individual-level phenomena in the workplace, while organizational psychology studies group and organizational-level phenomena, which may occur in both work and non-work settings.
Areas that industrial psychology focus on include:
· Individuals’ assessments that measure
. personality
. attitudes
. emotions
. knowledge, skills, and abilities
· Management of
. employee motivation
. working conditions (safety)
. reward systems
. work–life balance strategies
· Training and development
Areas that organizational psychology focus on include:
· Communications
· Negotiations
· Conflict resolution
· Team processes
· Facilitation of organizational goal achievement
When we put these two areas of psychology together, the result is a profession that looks at organizations/groups, individual stakeholders, and organizational goals in a more holistic manner. I/O psychology is unique, as it can support each phase of the employee life cycle (see Figure 8.1).
Figure 8.1 The employee life cycle
I/O psychology addresses all stages of the employee lifecycle.
Source: Used by permission of SIOP
Each area provides growth opportunities for both the individual and the organization. The Society for Industrial and Organizational Psychology (SIOP) suggests that psychologists in this field can support progress in diverse areas such as the following:
Strategy and measurement. I/O psychologists can support by facilitating communication, helping to identify organizational strategies and goals, identifying knowledge, skills, abilities and other characteristics (KSAOs) that are advantageous to an organization, and developing assessment tools (SIOP, 2017d).
Staffing. I/O psychologists can support organizations by addressing assessment needs in the areas of performance, employment qualifications, and hiring outcomes. In addition, I/O professionals offer a unique and neutral perspective that enables them to explain scientific or other principles relevant to the organization’s hiring practices in a court of law (SIOP, 2017c).
Employee and talent development. I/O psychologists can support organizations by working with leadership to create effective culturally intuitive messaging and training opportunities that support business goals. Types of opportunities may include employee skill-gap support, leadership development, and executive coaching, which consists of development focused on specific skill sets, performance improvement issues, transition facilitation, as well as supporting overarching changes identified with individual and group leadership (SIOP, 2017b).
Performance management. I/O psychologists can support organizations by developing effective and appropriate appraisal procedures, increasing rater reliability, and lessening the chance of unintended bias (as well as providing suitable training that supports this area; SIOP, 2017e).
Lastly, it is important to remember that I/O psychology, like other areas of psychology, is empirical; it is studied through verifiable observation and experimentation. Thus, the strategies performed in association with organizations by I/O psychologists are rigorous.
To read more specific guidelines from SIOP visit: http://www.siop.org/tab_default/ professionals_default.aspx
Career Spotlight: Melinda C.
Name: Melinda C.
Primary job title: Industrial and Organizational Psychology Intern
Type of employer: National Security Agency (NSA)
How long have you been employed in your present position? 6 weeks
Describe your major job duties and responsibilities. Interns apply scientific and quantitative methods to address a lot of different human capital issues. I've been working with a team of I/O psychologists and getting real job experience in the field. We do research and development work to support assessments that the NSA uses to pick job applicants. We study organizational design and development and also human capital systems design. We also get the opportunity to design organizational assessments and workforce surveys. Basically, we’re working to better understand people, organizations, and the impact of management practices.
What elements of your undergraduate training in psychology do you use in your work? Surprisingly, we actually use the scientific and quantitative methods I learned in statistics and research methods every day. Luckily, I remember most of it because I worked really hard in those classes. I also use a lot of what I learned in my I/O course, obviously. I’ve been doing a lot with developing assessments that support employee development and training. My I/O course really helped me better understand the problem-solving skills that are necessary to do these kinds of things well.
What do you like most about your job? I love that I am getting paid to learn. I work with some really successful organizational psychologists, and they encourage me every day to keep developing my skills. They remind me that it takes time to become an expert in any area.
What do you like least about your job? Probably that the internship is only 18 weeks. I really like working here. Luckily, once I complete my master’s degree in three months, I can apply for a full-time job with the NSA.
Beyond your bachelor’s degree, what additional education or specialized training have you received? I’m currently working on my master’s degree in I/O psychology.
Thinking back to your undergraduate career, can you think of outside class activities (e.g., psychology club, Tau Upsilon Alpha, etc.) that were key to success in your type of career? The online psychology club was a great way to learn how to market myself, especially in the online arena.
As an undergraduate, do you wish you had done anything differently? If so, what? If I changed one thing, it would have been to research the differing areas of the field of psychology to help determine what might be the best fit for me earlier in the program. With the many activities in all of the courses, I could have better applied my interests in I/O psychology, which would have helped me learn even more before I graduated.
What advice would you give to someone who was thinking about entering the field you are in? If you are interested in digging into how and what makes organizations suc-cessful, consider I/O psychology. So many students think that psychology is just counseling, but there are so many other opportunities in this field.
Careers in this field have been growing over the past several years (Bureau of Labor Statistics, 2018d). The Bureau of Labor Statistics (BLS) reports that I/O psychology is one of the fastest growing occupations in the United States (2018d). I/O offers diverse career opportunities that include private consulting, human resources and training, military and government agencies, and educational institutions (SIOP, 2017a).
8.2 A Brief History of I/O Psychology
I/O psychology was given life in the late 19th century due to industry growth across the world. As companies grew larger, the awareness that safety and performance were important variables in productivity and profitability grew as well. In 1913, Hugo Munsterberg (1863–1916) published the first book about industrial psychology: The Psychology of Industrial Efficiency. Munsterberg is considered the founder of I/O psychology. His work focused on employee selection, social influences within the workplace, and training development.
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The idea that workers become more productive when given more attention from management is called the Hawthorne effect.
In 1915, Walter Van Dyke Bingham (1880–1952) founded a learning organization focused on researching the effects of psychology in the workplace called the Bureau of Salesmanship Research. This research center was established at the Carnegie Institute of Technology and focused on the selection and development of salespeople.
This area of psychology became very useful to the United States and German (Koppes, 2014) militaries during World War I (1914–1918). I/O psychologists developed aptitude and leadership-potential assessments to support placement of soldiers. These types of assessments have evolved over the past 100 years, but are still utilized to identify essential skills needed by organizations today.
As interest in the field grew, so did the amount of research taking place. The results of I/O psychologist Elton Mayo’s research in the 1920s and 1930s are still applied in today’s organizations. In a series of experiments conducted at a plant in Hawthorne, Illinois, Mayo determined that the physical context (e.g., the lighting and established rest times) of the workers did not affect their productivity, but rather that the workers became increasingly productive the more attention they received from the researchers (Gillespie, 1991; Roethlisberger & Dickson, 1939). In further studies at the electric plant, it was also noted that additional variables were affecting the increased productivity, such as the supervisor’s style and the team’s morale (Gillespie, 1991; Roethlisberger & Dickson, 1939). These conclusions, which are known as the Hawthorne effect, are important to I/O psychology, as the idea that being observed increases productivity is a management strategy that is still used today.
In the 1940’s, Kurt Lewin, a German scholar and social psychologist, further advanced the field of I/O psychology. Lewin approached I/O through action research—finding practical applications to problems within the field of study. His focus on social psychology supported his research about group dynamics within organizations and about the change process. Lewin suggests that change is a three-fold process consisting of unfreezing, where the inertia of resisting change must be overcome and existing mind-sets challenged; actual change; and refreezing, where new mind-sets are established and the new status quo becomes the norm. Although his research has been built upon and elaborated over time, his models remain foundational in I/O psychology.
For the next eighty years, and still to this day, scholars add differing perspectives to the body of research in I/O psychology. Research has often been guided by societal changes. Some major advancements in the field are listed here. You should recognize many of these names and theories from your previous I/O psychology course.
· The 1950s
. Abraham Maslow’s and Carl Rogers’ theories on motivation supported the human relations movement and the study of group dynamics in the workplace.
. Peter F. Drucker outlined his management by objectives (MBO) approach.
. John C. Flanigan outlined his critical incidents technique.
. Douglas McGregor released his Theory X and Theory Y assumptions about the relations between employees and their organizations.
· The 1960s
. Numerous new theories were published, including Fred Fiedler’s contingency model of leadership; Vroom’s valence, instrumentality, expectancy (VIE) theory of motivation; David McClelland’s need for achievement theory; Frederick Herzberg’s two-factor theory of motivation; and Edwin Locke’s goal-setting theory.
. The Civil Rights Act of 1964 passed, making it unlawful to discriminate in any employment practice on the basis of race, color, religion, sex, or national origin.
. Katz and Kahn published a text that outlined theories and research about organizational behavior (1966).
· The 1970s
. B. F. Skinner suggested that classical conditioning and behavior modification could be applied within organizations as a tool for increasing productivity (1971).
. Cognitive psychology began to influence I/O psychology (Carpintero, 2017).
. Increased civil rights laws and supreme court cases related to biases and prejudice lead to a surge in research on biases in organizations (Carpintero, 2017).
· The 1980s
. Suggested by some to be inspired by Mayo’s and Lewin’s research from the 1930s and 40s (Cotton, Vollrath, Froggatt, Lengnick-Hall, & Jennings, 1988), participatory management strategies, which include a more active role of employees in the business, were being more widely explored (Kaufman, 2001).
. Stress in the workplace became a new topic for discussion and research in I/O psychology (Chandola, 2010).
. The Occupational Information Network (O*NET) was established, which is now also accessible on the internet: https://www.onetonline.org/ .
· The 1990s to present
. The Americans with Disabilities Act (1990) increased the importance of clearly identified job functions/purposes and physical requirements.
. Increased attention and research has been given to harassment, work–life balance, workplace violence, and employee well-being in organizations.
Today, I/O psychology is a growing profession that offers individuals multifaceted opportunities to apply their skills. As previously mentioned, with a foundation in I/O, a person can consider diverse career opportunities that include private consulting, human resources and training, the military and government agencies, as well as educational institutions.
8.3 Assessment, Selection, and Training
Like other areas of psychology, I/O psychology studies human behavior. However, I/O psychology applies this learning to the dynamics that occur within a workplace and between an organization’s many stakeholders. Stakeholders can include customers, board members, loan officers, salespeople, line-workers, customer service representatives, CEOs, CFFs, and anyone else who has an interest in a company. How each of these individuals looks at the organization can differ. It is the responsibility of the I/O psychologist to understand these multifaceted viewpoints, bring them all together to create a common goal, and create strategies to achieve these goals.
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Assessments help place people in positions that are appropriate for their skill set.
Different tools that may be utilized by an I/O psychologist include employee assessments, hiring assessments, training opportunities, leadership development, communications, and mediation. The goals of an I/O psychologist often include reducing absenteeism, ensuring safety and wellness, reducing employee attrition, increasing employee motivation, and ensuring human rights and dignity within an organization (Harris, 2016).
Workplace assessments are used to identify the multifaceted needs of an organization related to that organization’s goals. They have been a useful tool of the workplace for almost 100 years. Assessments are commonly assigned to two broad categories: competence and behavioral. Competence assessments evaluate potential or current employees’ skills, experiences, physical abilities, cognitive abilities, or knowledge base. Behavioral assessments evaluate behavior such as self-management, change adaptability, and teamwork. Assessments have evolved over time to cover multifaceted areas of organizations and employees. Effective assessments can help align a person’s skills to the best job for that person, reduce attrition, increase satisfaction, and increase loyalty. In addition, valid assessments help employers to measure three elements that are crucial to job/performance success: competence, work ethic, and emotional intelligence (Chamorro-Premuzic, 2015).
Research has found numerous characteristics that support job and organizational success. For example, the ability to learn, adaptability, interpersonal skills, level of positivity, and integrity are all important areas for organizations to consider when hiring employees (Rogelberg, 2017). The assessments used by I/O psychologists offer employers real data and evidence regarding who would be the best fit for a certain position. This prevents the hiring of a person based solely on how well they may have interviewed, and (if used correctly) helps to avoid bias in the hiring process. Some of the assessments designed by I/O psychologists are expensive and time-consuming, so it is important for an organization to clearly identify the desired outcomes before beginning the assessment process. When effectively utilized, assessments can provide employers with additional knowledge about what a candidate brings to the table, as well as crucial knowledge about training needs and performance. The following sections will discuss the major areas for which employee assessments are utilized and the importance of training, development, and motivation.
Employee Selection
Hiring the right person for the right job can be difficult. This process should be bidirectional, as the job must be a good fit for the candidate and the candidate must be a good fit for the job. Employers hire I/O psychologists to research and document the knowledge and skill sets needed for various positions. The job analysis is an important part of this process. A job analysis considers variables such as the specific tasks of a job, the requirements of the employee, and the contextual factors (e.g., location of work, days per week, full-time verses part-time). Purposeful identification of the KSAOs is crucial in determining what exactly will be needed to perform the job. Employers use this analysis to create a concise job description prior to posting or recruiting. For example, an ad for a public relations manager with a gas and electric company in the San Diego area might include the following requirements in their job description:
· Knowledge:
. Knowledge of local regulatory initiatives including policy, political, and community trends
. Knowledge of non-profit, private sector, government agency, and other local stakeholders
· Skills:
. Requires a minimum of five years of private or public-sector experience in public relations
. Requires advanced and comprehensive writing skills, listening skills, verbal communication skills, and the ability to articulate complex concepts to diverse stakeholders
· Abilities:
. Ability to lead others successfully
. Ability to work as a team member
. Ability to complete projects under demanding time constraints
· Other characteristics:
. Requires ownership of a personal vehicle
. Requires ability to travel with limited notification
Once the job description is posted and people begin to apply, the candidate selection process begins. Adding a new person to a team and to an organization is an important choice that can have far-reaching effects. Some of the data collected during the initial selection process may include:
· Biographical information
· Educational experiences
· Past work experiences
· Goal statements
· Available online information
· Available social networking information
In addition, some candidates may be required to complete competence or behavioral assessments either before or after the interview stage. I/O psychologists assist with this process by designing, administering, and evaluating these assessments. Effective assessment in the hiring process can be a vital component of whether an organization is successful. Assessments can help discover the actual, as opposed to the perceived, qualifications of the people who apply for a position.
After a person is chosen as a potential candidate, the next step is often an interview. This may be approached as an unstructured, semi-structured, or structured interview with a human resources (HR) professional or relevant employee. The key difference between these types of interviews is the method used (see Table 8.1). Each method has its merits and drawbacks. Structured interviews may help reduce bias, as every candidate answers the same set of questions, often in the same order. Meanwhile, semi-structured and unstructured interviews leave more room for an interview to go off topic or for an interviewer to make a subjective decision based on a candidate’s personality instead of aptitude and job-fit. However, the other side of this is that semi-structured and unstructured interviews allow the interviewer to test a candidate’s communication and conversation skills, which in some jobs is more important than aptitude or subject knowledge. Finally, it can be difficult to make assessments based on unstructured interview results. Structured interview results are easier to compare, as every candidate receives the same questions.
|
Table 8.1: Interview types |
|||
|
Basis for comparison |
Structured interview |
Semi-structured interview |
Unstructured interview |
|
Definition |
Uses a predetermined set of questions that are asked to the employee candidate. The questions are often presented to each candidate in the same order. |
Uses a predetermined set of questions that are asked to the employee candidate. The questions are formulated to be open-ended and allow the interviewer to investigate responses in more depth. |
Does not use any predetermined interview questions. |
|
Type of questions |
Closed-ended questions. May include experience-based, situational, or job knowledge questions. May also have predetermined possible answers. |
Open-ended questions. May include experience-based, situational, or job knowledge questions. Allows the interviewer to explore the responses from potential candidates more deeply. |
Open-ended questions that are not predetermined. Types of questions to be asked may vary. Enables the interviewee to manipulate the interview and bring in unexpected information. |
|
Application |
To more accurately assess the candidates when the candidate pool is large. |
To evaluate the potential of a candidate’s fit to a job. Data gathered from responses to open-ended questions make this evaluation more robust (compared to a structured interview). |
To evaluate characteristics and responses of the candidate to determine whether he or she is the right person for the job. |
Once the employer decides on a candidate, it is important that the candidate accept the job offer in writing, as well-qualified candidates can receive multiple offers. When crafting an employment offer, companies should consider the factors that research has found have the greatest influence on offer acceptance: Nature of work (37.6%), location (37.6%), company culture (36.5%), and advancement opportunities (25.8%) (Boswell, Roehling, LePine, & Moynihan, 2003).
Person–Environment Fit
Hiring the right person for a job is the end goal of the hiring process. Although the job description, with its list of KSAOs, can help narrow down the search, it is also important to consider the way each candidate, as a person, would fit the open position and the organization as a whole (Boon & Biron, 2016). This is known as person–environment fit, and there are many variables to consider when evaluating this measure for a job candidate.
Boon and Biron suggest that “person–environment (PE) fit . . . is positively related to several desirable outcomes for employees and organizations, such as greater job satisfaction, stronger commitment, higher engagement in in-role and extra-role behaviors, and lower turnover” (2016, para. 1). All of these outcomes affect both the organization and the individual, so hiring people with good person–environment fit benefits all stakeholders.
As you may remember from your previous I/O psych class, two specific areas to consider when evaluating person–environment fit are person–organization (PO) fit and person–job (PJ) fit. Person–organization fit is a measurement of an organization’s ability to support an employees’ values and beliefs. Person–job fit considers how the characteristics of the employee match the specific job being assigned.
Outcomes that can be associated with poor person–environment fit:
· Frequent resignations (Schneider, Goldstein, & Smith, 1995): This is costly for an organization and can create financial concerns for employees.
· Increased stress (Deniza, Noyanb, & Ertosun, 2015): This can negatively affect satisfaction, well-being, and productivity.
· Decreased feelings of competence and autonomy: These variables are associated with motivation, as will be further explored later in the chapter.
· Decreased commitment to the company and its goals (Kristof-Brown, Zimmerman, & Johnson, 2005): This can also affect turnover rates and employee performance.
Since person–environment fit is such an important consideration in the hiring process, I/O professionals should stay up-to-date with the evolving research on this topic, as it could impact their practices. For example, Shipp and Jansen (2011) suggest that person–environment fit changes during one’s time with an organization. This suggests that when leadership notices that an employee’s behavior has changed (in an undesirable way), an intervention designed to support an employee by improving their perceived environmental fit could be helpful.
Other research suggests that person–environment fit is not immediate, but takes time to construct, and thus development and assessment become even more vital tools during the entire employee life cycle (Shipp & Jansen, 2011). As we discuss assessments and development in the next sections, consider how each of these could provide valuable support for solidifying person–environment fit in an organization.
TEST YOUR KNOWLEDGE
As you embark on your graduation and consider career changes, how can the area of I/O psychology support your goals? Try making a list of the numerous skills you have gained and the knowledge you have developed. Once your list is complete, consider how these can be successfully added to a résumé or within a conversational interview to support your career decisions.
For ideas about how to include skills on your résumé, see “What to Include in a Resume Skills Section” here: https://www.thebalance.com/what-to-include-in-a-resume-skills-section-2063321 .
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Objective performance measures rely on quantifiable data, whereas subjective measures require human judgement.
Performance Assessments
Performance appraisals are an effective way for I/O psychologists and human resources professionals to identify areas in need of development, both in an organization and in individual employees. Goals of performance appraisal include discovering areas for future training, increasing employee well-being, and increasing or maintaining motivation. Organizations can use objective and subjective measures to evaluate employees. Objective performance measures include employment records that can be quantified and are less biased (given that they include no personal information). These are most commonly used to assess clear objectives, such as sales volume history, recorded customer complaints, or attendance records. Subjective performance measures are often designed by I/O psychologists and rely on human judgement; therefore, they may include a level of subjectivity or bias. These are more commonly used in jobs that require a variety of skills. For example, evaluations for a nurse would include numerous variables, such as communication, accuracy of documentation, and efficiency. It is important to use objective and subjective measures together to effectively evaluate the performance and development potential of an employee. For example, a nurse’s evaluation might also include objective measures such as a record of the timeliness of the administration of patient medications. If the results of the objective assessment are distinguished, but results of the subjective test are poor, that knowledge could be used to create more effective development opportunities for the future success of that employee.
Areas that psychologists assess often include:
· Cognitive abilities: Often used to assess training outcomes.
· Physical abilities: Often used to assess fitness for manual labor or physically demanding tasks. Can also be used to assess the efficiency of a task.
· Personality: Can help an organization identify variables that may need additional development or a better job for an employee (e.g., extrovert- verses introvert-supporting positions).
· Honesty and integrity: Measures one’s tendency to be honest, dependable, and responsible. A lack of integrity has been associated with behaviors such as “theft, violence, sabotage, disciplinary problems, and absenteeism” (Cullen & Sackett, 2004, para. 1).
· Vocational interests: Can help to identify areas within an organization that may be more conducive to an employee’s interests, increasing motivation and performance.
· Positivity: Can identify an employee’s level of job satisfaction, organizational commitment, and overall well-being.
These assessments can be given in a multitude of formats:
· Computer-adaptive test: Tailors the test to each person’s individual ability. An example would be a scenario-based team-ability assessment that seeks to discover the role that an individual is most comfortable in within a team.
· Speed test: A limited-time, standardized content assessment. For example, a data-entry test.
· Power test: Designed to be difficult but without time limitations. Allows the test-taker to focus on accuracy rather than speed and is most concerned about the person’s depth of knowledge. For example, a difficult vocabulary test.
· Situational judgement test: Questions ask what the test-taker would do in a certain scenario. Like a structured interview, there are predetermined responses so that the test taker can identify what he or she believes to be the best response. An example would be to determine the potential for management promotions.
· Work-sample test: Often evaluates skills needed for the job the test taker has. For example, a teacher may deliver a sample lesson in an assessment of teaching skill level.
Other strategies to measure employee performance include the following:
· Rank ordering: Although not useful for determining training strategies, ranking employees can show a valuable differentiation between employees’ performances. This might be used in a management appraisal to show which managers are the most and least successful.
· Written narratives: These often include specific examples of an employee’s performance during an assessment time frame. A written narrative can offer the employee a better understanding of the areas in which they may need improvement or reinforce high markings that are given by the evaluator.
· Graphic rating scale: This includes predetermined dimensions and ratings. The employer/manager may rate the employee in numerous areas such as leadership ability, communication, and work quality (see Figure 8.2). This process can help to identify high and low performance areas.
· Forced distribution: Most often used when there are a large number of employees. The evaluator places 10% of the employees in a “superior” range, 20% in “above average,” 40% in the “average” category, 20% in “below average,” and 10% in “poor” (see Figure 8.2). This practice can decrease the time that it takes to evaluate large employee populations.
· Behavioral observation scale (BOS): Rates the frequency of predetermined behaviors (see Figure 8.2). This method can reduce bias that may be associated with the evaluator noticing only the limited occasions of low performance.
· Behavioral anchored rating scale (BARS): Measures the quality of specific predetermined behaviors. Rather than the number of times the employee performs a duty, this scale is more reflective of the quality of the work being accomplished. For example, in a manufacturing plant, one employee may have more output than all of the other employees, yet their product is of lesser quality, which can affect the bottom line of an organization negatively.
Figure 8.2: Examples of different methods for evaluating performance
Different evaluation methods should be considered based on the desired outcome.
Each of these types of performance assessments may be completed not only by the manager but also by peers and subordinates, increasing the amount of information available for the performance evaluation.
Effective Training and Development
Research has shown that effective training and professional development can improve employee performance, and hence, organizational success, making the assessment of employee development essential to success (Bulut & Culha, 2010; Delery & Doty, 1996; Vinesh, 2014). Remember, training and development are separate and distinct. Training of an employee focuses on the knowledge needed to perform the job, whereas development offers the expansion of an employee’s skills and knowledge as applied to his or her profession. For example, training for teachers might involve a series of modules to help them develop how they provide students with feedback. This is directly related to their ability to teach students effectively. Development for teachers might include attendance at a conference that develops the area of the teacher’s field of expertise (e.g., math, English, psychology).
The success of training and development opportunities are a factor in a successful organization (Bulut & Culha, 2010; Delery & Doty, 1996; Vinesh, 2014). Formal training opportunities have been shown to support identified training outcomes (Delery & Doty, 1996). Bulut and Culha (2010) found that effective organizational training also increased organizational commitment. Vinesh (2014) found that effective employee development can have a positive impact on worker performance, consistency, and satisfaction. In addition, research has found that after employee development, the quality of an organization’s product or services increased while the need for employee supervision and the cost of the product can be reduced (Vinesh, 2014). Appropriate training and development should follow best practices that will assure successful knowledge acquisition by the employees, management, and leadership of an organization. Due to the importance of successful training and development opportunities, companies often hire professionals with expertise in learning and educational training to design their training and development programs. Even without an advanced degree, having a background in I/O psychology will give you an advantage when looking for jobs in human resources or in talent development departments.
Leadership Development
Although training and developing all employees is crucial, leadership can have a significant impact on employee performance, engagement, productivity, and satisfaction, as they oversee the choices and actions of their employees and the initiatives that drive development (Kraus & Wilson, 2014). Krauss and Wilson found that in 2014, more than 40 billion dollars was spent by organizations within the United States in attempts to develop effective leaders (2014). I/O psychologists and professionals can help leaders develop more positive cultures, as well as improve the financial bottom-lines, within organizations.
The KSAOs required to be an effective leader at an organization should reflect the overall values and goals of the organization (Kraus & Wilson, 2014). For example, while a job requirement might be knowing how to perform oral presentations to large groups, the corresponding leadership skill might be the ability to work effectively as a team motivator. Although the framework differs, KSAOs are still applicable and a successful means to analyze an organization’s needs.
Through an analysis, an I/O professional can also identify what types of leaders exist within an organization to better identify if those leadership styles meets the organization’s cultural needs. The following is a summary of some types of leadership, though not an exhaustive list:
· Transactional leadership: Associated with leaders who utilize rewards and punishment to develop and motivate employees.
. Example: Nina often rewards her employees with an extra hour of time off each week when they meet their goals.
· Transformational leadership: Associated with leaders who approach development and motivation as strategies to develop employees’ potential. These leaders utilize individually-based strategies that inspire, motivate, and intellectually stimulate employees.
. Example: Kade spends one-on-one time with each of his employees talking about their roles, asking what they need to succeed, and challenging them to exceed expectations.
· Charismatic leadership: These leaders tend to challenge existing beliefs and values. They project an empowering vision and gain followers through their excellent powers of communication. In addition, this leader tends to be willing to take personal risks for the sake of success.
. Example: Steve Jobs has been cited as a charismatic leader by numerous resources due to his “his rhetorical impression-management skills such as exemplification, promotion and facework” (Sharma & Grant, 2011, pp. 11–12).
· Ethical leadership: These leaders are best known for their dedication to integrity and collective motivation practices. They lead by example, focus on teamwork, and are driven by values.
. Example: Some consider Melinda Gates to be an example of an ethical leader due to her dedication to giving away 95 percent of the Gates’ considerable wealth.
· Authentic leadership: Associated with individuals who are dedicated to self-awareness and growth. Authentic leaders use what they have learned to increase transparency and engage in practices that encourage balance. They encourage innovative thinking and ideas, including those that succeed and those that may fail.
. Example: Hans, the manager of a supply manufacturing company, often encourages departments to engage with one another to increase transparency and develop horizontal and vertical understanding within the company.
· Supportive leadership: This leader displays concern for employees by focusing on individual needs and potential development that can improve employees as individuals.
. Example: Mrs. Franks, who teaches an 8th grade Algebra course, often guides her students individually through lessons, making sure they have a clear understanding prior to attempting the activity.
· Participative leadership: This kind of leader involves employees in decisions that affect their work.
. Example: When faced with a merger, the director of sales meets frequently with his team to address concerns, questions, and ideas about creating a positive transition.
As suggested by this list, successful leadership is dynamic and responds to the needs of employees and the organization. Often, successful leaders use numerous strategies based on the situation that embody many styles included on this list. If you become an I/O professional or psychologist, this further emphasizes the importance of keeping up with research and trends. Perspectives on leadership and leadership development are always evolving. For example, Nick Petrie with the Center for Creative Leadership suggested in 2014 that leadership development should no longer be viewed as an individual framework but instead as a holistic one:
There is a transition occurring from the old paradigm in which leadership resided in a person or role, to a new one in which leadership is a collective process that is spread throughout networks of people. The question will change from, “Who are the leaders?” to “What conditions do we need for leadership to flourish in the network?” How do we spread leadership capacity throughout the organization and democratize leadership? (2014, p. 6)
While it was previously thought that leaders must be in positions of power, the perspective is shifting toward the idea that people in all levels of an organization can exhibit leadership skills daily and in many different ways. When exploring career options, consider how your knowledge has developed in this area and ways in which you have been a leader for those around you.
8.4 Employee Motivation
Another essential area that I/O psychologists address is motivating employees. Motivation has positive effects on performance and engagement. Numerous theories and models drive I/O psychology in this area and each have a potential place in the workplace. For example, Harter’s motivation theory (1978, 1981) and Deci and Ryan’s self-determination theory (2000, 2017) both suggest that competence is a factor in employee motivation. Harter’s competence motivation theory states that achievement motivation is based on a person’s feelings of personal competence (Harter, 1978; 1981). Self-determination theory (SDT) postulates that three psychological needs support one’s self-motivation and are crucial to psychological health and well-being: competence, relatedness (belonging), and autonomy (Ryan & Deci, 2000, 2017).
In addition, one’s perception of the job, task, or organization have also been found to affect one’s motivation. For example, Adam’s equity theory (1963; 1965) suggests that employees compare their own input and outcomes with others within the organization. If they perceive inequality, whether or not it exists, the employee’s motivation to achieve may decrease. Also, the organismic integration theory (OIT; Deci & Ryan, 2000) suggests that one’s motivation may be affected by the perception of why the task must be achieved or the value of the organizational outcomes. If the task is perceived to be helpful to increasing the employee’s perceived level of competence, then this extrinsic motivation will support their positive motivation to achieve that task.
The list of motivational theories that can be applied to an organization and the employees within it is exhaustive. In addition, numerous theories aligned with other areas of psychology can also be applied to differing circumstances (e.g., learning theory can be applied to development and training). See Table 8.2 for a list of several motivational theories that can be applied to organizations and their people, along with examples of their uses in the workplace.
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Table 8.2: Examples of motivational theories utilized in organizations |
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Theory |
Principles |
Practical application |
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Abram Maslow’s hierarchy of needs (original model developed in 1943) |
Suggests that there are five areas of individual needs that must be met (sequentially) to encourage personal growth and increased motivation: physiological (bottom of the pyramid), safety, love/belonging, esteem, and self-actualization (top of the pyramid). |
Jane, who is a successful geriatric physician, may find that her need to have good working relationships (the need for love/belonging) deteriorates if she is having long-term difficulty with sleeping (physiological need). |
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Frederick Herzberg’s two-factor theory (1959) |
Suggests that variables are either motivational factors (e.g., work achievements, advancement opportunities) or hygiene factors (e.g., salary, coworker relationships) and that hygiene factors do not play a role in job satisfaction and motivation. |
William, who works for a large energy firm, may have increased motivation when he is given the opportunity to be promoted. |
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Victor Vroom’s expectancy theory (1964) |
Suggests that motivation increases when the person believes that the result of an action will be what they expect. Based on three variables: expectancy, instrumentality, and valence. |
If Deena expects that her hard work and dedication to the organization will result in increased autonomy and job stability, and yet continues to feel micromanaged, her motivation to continue at her current level of dedication may decline. |
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John Stacey Adams’ equity theory (1965) |
Suggests that motivation will increase/decrease based on the employee’s perception of how fair (or unfair) a situation is. An employee considers self-inputs (e.g., effort, experience) and outcomes (e.g., pay, recognition) in comparison to the inputs and outcomes of others within the workplace. If there is a perception of inequality, motivation may decrease. |
When Frank learns that his fellow coworkers are doing less work than he is for the same pay, his motivation to perform is at risk. |
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Edwin Locke and Gary Latham’s goal-setting theory (1968) |
Suggests that specific and difficult goals, rather than vague and easy goals, lead to increased performance and motivation. Motivation is driven by goals that include clarity, challenge, commitment, feedback, and task complexity. |
If manager Vince’s team is having difficulty in maintaining effective performance, he should consider if he is communicating with specificity and clarity to his colleagues. |
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Clayton Alderfer’s existence, relatedness, and growth theory (ERG; 1969) |
According to ERG, which builds off of Maslow’s and Herzberg’s theories, the fulfillment of three needs encourages increased motivation: existence (basic survival), relatedness (belonging, support, recognition), and growth (esteem and self-actualization). The theory does not state that any order is required; therefore, the three areas may also be addressed simultaneously. |
David’s boss appreciates his hard work and gives a lot of positive feedback. This purposeful engagement would be classified as relatedness, according to this theory. |
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Hackman and Oldham’s job characteristics model (1976) |
Identifies specific job characteristics (skill variety, task identity, task significance, autonomy, and feedback) that can affect employees’ motivation, suggesting that employers should consider strategies including job crafting, consistent and increased feedback, and empowerment to explore ideas without fear of rejection. |
Zita, the CEO of a large company, encourages her management to be innovative by allowing the freedom to make mistakes, but also by rewarding victories. Each month she reminds those who had success and stresses that what they do is important to the success of the organization. Based on this theory, her team should be highly motivated to perform. |
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Susan Harter’s competence motivation theory (1978) |
Suggests that one’s motivation to achieve is driven by perceived self-competence. As feelings of competence increase for a specific task, new tasks will be more readily welcomed. |
Simon, a new manager, has found great success in improving the financial bottom line for his department. This success has inspired him to explore areas of management that he would like to develop, such as giving more effective performance reviews. |
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Edward L. Deci and Richard M. Ryan’s self-determination theory (SDT; 2000) |
Suggests that feelings of relatedness (work relationships), competency (perceived performance), and autonomy (ability to perform independently) are necessary to increase motivation. This theory has numerous sub-theories. |
Although Tina feels her autonomy is supported and she has healthy work relationships, she struggles with staying motivated. This could be related to the fact that she was recently promoted to a new position within the company and was not properly trained for her new duties; as such, Tina is feeling a lack of self-competence. |
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Edward L. Deci and Richard M. Ryan’s organismic integration theory (OIT; 2000) |
A sub-theory of SDT that identifies differing levels of motivation based on the reasoning behind a person’s actions. The range of motivation is presented as least autonomous (no motivation or varying levels of extrinsic motivation) to most autonomous (intrinsic motivation). Motivation closer to the intrinsic side of the continuum is said to be more positive. |
Although Louis makes less money in his new job helping teens break the cycle of drug use, he has a more positive level of motivation. This integrated level of extrinsic motivation is supported by his passion for helping others. |
Based on this extensive, although not inclusive, list, it is clear that motivating employees can be complex; regardless, it is essential to organizational success (Doshi & McGregor, 2015; Mackey & Sisodia, 2014; Pink, 2009) and employee satisfaction (Deci, Olafsen, & Ryan, 2017). Organizations with highly motivated employees are more successful and perform better. It is important that I/O psychologists and all professionals in the workplace develop skills in all areas of employee motivation enhancement.
8.5 Ethics
As you have read throughout this text, ethics are of great importance in any career choice. For I/O psychologists there are numerous perspectives to consider, as those in this field must not only abide by professional psychological ethics codes such as the American Psychological Association (APA) Ethical Principles of Psychologists and Code of Conduct, but also by workplace laws. In alignment with the APA Ethics Code, the following is vital for the I/O psychologist to consider (Knapp, 2003):
Standard 3.11 of the code is new and pertains specifically to those psychologists delivering services “to or through organizations.” It requires, among other things, the psychologist to make clear who the client is (e.g., the employer and not employees who will be assessed), limits on confidentiality for any information collected, and how the information will be used.
If you see that your work is being misused, at least try to do something about it (Standard 1.01). I-O psychologists who develop systems (e.g., for applicant screening) that an employer can easily alter after they have left the scene are particularly prone to this problem. (p. 165)
As Knapp (2003) describes, the unique conditions in which I/O psychologists often work create opportunities for non-I/O professionals to use developed materials in ways they were not meant to be utilized. For example, if an organization hires an I/O psychologist to develop a performance assessment for managers and then uses it to assess production line employees, it is likely that the measurements of the production line employees would not be reliable. According to the APA, if an I/O psychologist sees this happening, he or she must attempt to address the issue. Being an ethical professional doesn’t only apply to the work you do; it can also apply to the work others are doing with materials you have provided.
It is also imperative that I/O psychologists and other I/O professionals (e.g., people in human resources and management) know and proactively enforce workplace laws. The laws are a driving force to reduce discriminatory and unethical practices within organizations, and any individuals who engage with organizations in regard to hiring, training, and assessments, must be acutely aware of the changing global workplace and the laws that guide it. For example, Title VII of the Civil Rights Act of 1964 prohibits discrimination in hiring based on religion, sex, race, color, or national origin, and the Age Discrimination in Employment Act of 1968 prohibits discrimination based on age. This means that interviews and assessments must be carefully crafted to avoid any potential bias that may be present in questions. It also limits the types of questions that an employer can ask in an interview, as gathering certain types of information may introduce bias into the decision-making process.
The Fair Labor Standards Act (FLSA) addresses the requirements associated with wages and hiring age requirements in specific industries. If a human resources professional at an organization were to notice, for example, that some employees were illegally being paid below minimum wage, it would be that person’s responsibility to report this violation of the FLSA. The Family and Medical Leave Act (FMLA) guarantees certain employees 12 weeks of job-protected leave from an organization. This means that a new mother (or father), or a person caring for a sick parent, can take 12 weeks off of work and be able to return to their job after those 12 weeks. This is just another example of the numerous laws that I/O professionals must be aware of in their professional lives. For additional guidelines, visit the United States Department of Labor website, which provides a summary of employment laws that are observed in our country’s organizations/workforce: https://www.dol.gov/general/aboutdol/majorlaws .
8.6 Career Applications in the Field of I/O Psychology
I/O psychology offers vast opportunities for those seeking to apply their knowledge to the workplace. To become an actual “psychologist,” one must earn a terminal degree; however, students graduating with bachelor’s and master’s degrees can apply their knowledge to other domains, such as management. According to the Bureau of Labor Statistics (2018d), the median annual salary in the I/O psychology field is $102,530. In addition, the Society for Industrial Organizational Psychology predicts that this field will grow 26% through 2018 (SIOP, 2018).
As discussed, I/O psychologists specialize in a multitude of workplace arenas such as applicant and employee assessment, training and development, communications, employee well-being, workplace diversity, leadership, motivation, workplace safety, and work–life balance. There are also numerous careers that utilize the skills associated with these arenas, and the opportunities are always evolving in our ever-changing economic environment. Whether an advanced degree is required or not will vary based on the specific organization and position. Additional examples and elaboration of potential careers with and without a graduate degree are included in the following sections.
Tomertu/iStock/Thinkstock
There can be multiple career paths for a person who earns a bachelor's degree in I/O psychology, such as a job in human resources.
Bachelor’s Degree in Psychology
An undergraduate degree in general psychology, with some knowledge of I/O psychology, prepares a person to apply knowledge about the workplace in their current and prospective careers. Specific to I/O psychology, as discussed, knowledge that supports effective training and development, assessments in the workplace, and hiring can be advantageous when considering career options that may require only a bachelor’s degree. Whether aligned to the hiring, training, assessment, or development processes, you can support the success of an organization, as well as individual employees’ well-being, with what you have learned about I/O psychology. And with an awareness for the variables that can affect the financial bottom line of an organization, such as employee well-being and leadership styles, you can help to effectively address issues that may not be commonly understood, given that the needs of organizations are multifaceted.
One career field associated with I/O psychology is human resources. The level of education required (bachelor’s versus a master’s) varies from one organization to another. A good entry-level career to help you advance to management might be human resources specialist. This career had a median pay of $60,350 per year ($29.01 per hour) in 2017 according to the BLS (2018d), with a predicted growth rate of 7% between 2016 and 2026. A specialist might handle recruitment, employment screening, candidate interviews, job placement, compensation and benefits, and performance supportive training (BLS, 2018d). Once you have gained some experience, the most common amount asked for being five years (BLS, 2018d), you may be able to qualify for a human resources manager role. According to the Occupational Outlook Handbook (OOH; BLS, 2018d), the median pay for a human resources manager in 2016 was $106,910 per year ($51.40 per hour), and this occupation is projected to grow 9% from 2016 to 2026. Similar to a specialist, duties often include recruiting, interviewing, hiring, strategic planning, and organizational communication. The major difference from the specialist job would be, of course, that you are supervising other people as well as carrying out human resources duties. Knowledge of I/O theories and strategies can help you succeed in a human resources role, as it gives you a knowledge base for hiring the right candidates and motivating employees.
Other areas supported by this knowledge base include almost any area in which you have prior experience, especially at the management level, as I/O psychology teaches you how to communicate and help people succeed. For example, with experience in marketing, an I/O psychology skillset can further help you understand your customer and craft your messages to be as effective as possible. As a sales manager with I/O psychology knowledge, you can set specific, realistic goals and help your team members stay motivated to reach them. The skills associated with your degree (e.g., motivating employees, designing assessments) are often as important as obtaining the degree itself.
Graduate Degree in I/O Psychology
With a graduate degree in I/O psychology, one may be able to establish a more advanced career in the discipline. The American Psychology Association (2017a) reports that the median annual salary for I/O psychologists is $80,000. The following are several career positions that you might see when searching for jobs that require a master’s or doctorate degree in I/O psychology:
· Personnel analyst
. Analyzes hiring strategies, including location-based job hunts and on-boarding
· Research consultant
. Applies research strategies to organizations (e.g., administers surveys to measure employee satisfaction, gives recommendations on research-based practices to improve results)
· Instructional designer
. Uses knowledge of I/O and learning psychology theories to design successful employee training based on organizational goals and performance
· Talent developer
. Creates organizational initiatives that support employee self-development
. May include assessment and analysis of crucial employee training needs
· Industrial-organizational professor/academic
. Teaches and performs research in the field of I/O psychology
Licensing is also another consideration if a person intends to earn a doctorate and practice as an I/O psychologist. This requirement is diverse and is mandated on a state-by-state basis. When working in some private sectors, licensing may not be useful, but for those exploring options aligned to I/O psychology, it should be considered. For those wanting to professionally consult, organizations such as SIOP provide useful tools to market one’s skills to organizations: http://my.siop.org/cls .
Most importantly, when approaching potential career options in the area of I/O psychology, one should clearly identify the skills they have obtained through the process of earning a degree. Clear representation of these skills to prospective employers is essential. In addition, identifying clear goals for yourself can increase the success of your job search and help you make decisions about attending graduate school.
A day in the life of two professionals who work in I/O psychology careers. Answer questions to determine which career you prefer.
Summary
I/O psychology is utilized to assist organizations in more efficient selection, development, and training of employees, as well as in improving performance and productivity overall. The field of study is as vast and ever-changing as our workforce. In our competitive global market, this area of expertise is growing, as previously discussed, as companies and small businesses strive to outlive and outperform the competition. Identifying what knowledge and talents are needed to be successful in job placement reduces retention costs and supports a positive work climate. An understanding of what motivates employees can help the organization develop methods to improve individual performance and workplace satisfaction. Well-designed leadership training can support a positive and supportive engagement between leadership and staff. Assessment of organizational needs can be developed into a productive protocol for actively promoting best practices in any industry. And lastly, with a solid foundation in ethics, I/O professionals can reduce the risk for organizational malfeasance. As a soon-to-be graduate, if you have a passion for business, marketing, manufacturing, or performance, I/O psychology may be the subfield that drives your next decisions about education and career choices.
Concept Check
1. Industrial/organizational psychology originated based on an increased concern for __________ within the workplace.
a. safety and productivity
a. disability-assessing procedures
a. civil and governmental legal battles instigated
a. personality job alignments
2. Industrial/organizational psychology is the study of two specific overarching areas:
b. leadership and management.
b. individual-level based phenomena and organizational-level based phenomena.
b. motivation and disability rates within the workplace.
b. personality characteristics and abnormal behaviors.
3. To define organizational needs, an industrial/organizational psychologist, or someone with specialty skills in I/O psychology, would utilize a
c. top-tier approach.
c. workplace assessment.
c. personality assessment.
c. bottom-up approach.
4. KSAOs ____________the requirements needed to perform a task.
d. measure
d. quantify
d. identify
d. enumerate
5. ___________ theories can be utilized to identify individual needs and increase workplace satisfaction.
e. Motivation
e. Development
e. Assessment
e. On-boarding
Answers
1. a. The answer can be found in Section 8.2
2. b. The answer can be found in Section 8.1
3. b. The answer can be found in Section 8.3.
4. c. The answer can be found in Section 8.3.
5. a. The answer can be found in Section 8.4.
Questions for Critical Thinking
1. Saga, LLC is a large recording studio. Over the past year, they have experienced much employee turnover, which was not common in the company’s past. The human resources manager has discussed the situation with the CEO and they have decided that hiring a consultant to assess the organization would be ideal. If you were the consultant, what three strategies would you employ to determine potential causations for this change in company retention?
2. Cindy manages a team of highly qualified journalists. She is aware that recently there has been an escalation of negative feedback in the public about journalism practices and has witnessed her team’s deflation in levels of competency and attitude, which seems to be affecting their productivity. What motivation theory could best explain the scenario and what are some motivational methods that Cindy could apply to increase motivation within her team, based on theory?
3. Kally Farms, LLC is in need of a new employee to address some of the crop production reductions that they have been experiencing over the past couple of years that have severely affected their financial bottom-line. Since this will be a new position, they are not certain what all of the tasks should be or what knowledge will be required of the new employee. They have decided to hire a farm production consultant who also specializes in I/O organizational psychology, as they feel his knowledge in both production and workplace hiring practices will be of much benefit to their organization. In terms of designing a job description, who would be some of the most important stakeholders to include in the information gathering phase to be applied to the KSAO analysis? What other considerations should be addressed?
Key Terms
Click on each key term to see the definition.
Harter’s competence motivation theory
industrial/organizational (I/O) psychology
objective performance measures
subjective performance measures
Professional Resources
American Psychological Association (APA): Industrial/Organizational Psychology: http://www.apa.org/ed/graduate/specialize/industrial.aspx
Pursuing a Career in I/O Psychology: http://www.apa.org/action/science/organizational/education-training.aspx
Bureau of Labor Statistics (BLS): Occupational Employment and Wages: https://www.bls.gov/oes/current/oes193032.htm
Society for Industrial and Organization Psychology (SIOP): Main webpage: https://www.siop.org/
Graduate Training Programs in Industrial-Organizational Psychology and Related Fields: http://www.siop.org/gtp/
Fun Facts
Did you know that . . .
· I/O psychology is being utilized to prepare for NASA’s 2030 planned trip to Mars (Novotney, 2013).
· I/O psychologists will have to expand their research about effective productivity as more jobs are being offered remotely than ever before.
· Missouri University of Science and Technology researchers found that teamwork success may be able to be translated from gamers who have success playing World of Warcraft (WoW) during team raids (Katski, 2017).