1. INDUSTRIAL AND
ORGANIZATIONAL
PSYCHOLOGY
I/O

2. Where do you see its
implementation in Pakistan?

3. What is I/O Psychology?
• Scientific study of human side of an organization
• Research and practice oriented
• Evidence-based field (difference from other discipline)
• Applied psychology
• Eclectic in nature
– Experimental psychology
– Psychological testing
– Engineering
– Management
– Social psychology
– Sociology

4. Industrial (personnel) Psychology
Management perspective of organizational
efficiency through appropriate use of human
resources or people.
Concerned with
– Efficient job design
– Employee selection
– Training
– Performance appraisal

5. Organizational Psychology
• Developed from human relations movement in
organizations
• Focus on individual employee
– Employee behaviour
– Employee attitudes
– Job stress
– Supervisory practices
– Enhancing well-being in work-place
• Much overlapping in two forms exist
e.g., motivation is topic of interest for both

6. Settings of I/O
• Research and practice
• Efficient working of organizations
• Causes of work related behaviour
• Problem-solving approach
• College and university based researches implemented in
organizations
• Firms, government, military, private corporations
• Consulting firms
• Academics

7. Historical Background
• Roots in 1800s and early 1900s
• Roots based in experimental psychology
– Early work on job performance and organizational
efficiency
– Hugo Munsterberg (German) --- personnel selection
and use of psychological tests
– Walter Dill Scott --- Psychology of advertising

8. Cont…
• Fredrick Winslow Taylor (engineer) --- (1911)
employee productivity, Scientific Management,
for handling production workers in factories,
guide organizational practices
– Job analysis (optimal way of doing tasks)
– Selection as per employees characteristics --- for
this existing employees’ characteristics should be
studied
– Training
– Rewarded for productivity

9. Cont…
• Frank and Lillian Gilberth (engineer and
psychologist) --- (1915) how people perform
task
– Time and motion study
– Roots for field of human factor --- how best to
design technology for people.
– Designing consumer products

10. Cont…
• World War I --- US military
– Robert Yerkes (1917) led psychologists in offering
services
– Army Alpha and Army Beta tests for mental ability
– For recruitment and placement
– Mass-testing then in educational and employment
setting like SAT

11. Cont…
• 1921 Penn State University --- Bruce V. Moore
• Consultants
• Psychological Corporation (Harcourt
Assessment; 1921) --- James McKeen Cattell
• Hawthorne Studies --- Western Electric
Company
• World War II
• APA --- 1944 (14 Division Industrial and
Business Psychology)

12. Cont…
• Arthur Kornhauser --- effect of work condition
on employee’s mental health
– Occupational health psychology
• 1970 APA changed name as Division of
Industrial and Organizational Psychology
– Society of Industrial and Organizational Psychology
(SIOP)
– Civil Rights Act (1964)
– American with Disabilities Act (1990)

13. HUMAN RESOURCE MANAGEMENT

14. JOB ANALYSIS
• “An accurate picture of details of job and
characteristics of the people who will do that
job”.
e.g., what police officer do in the whole day job?
– Systematic by specifying the procedure
– Job is broken into small units
– Written report (of job description)

15. Approaches
Job-oriented approach
Defining tasks and SOPs in hierrarchical order defining
(Brannick et al., 2007)
1. Position
2. Duty
3. Task
4. Activity
5. Element
Person-oriented approach
(KSAOs)
Knowledge
skills
Ability
Other characteristics

16. Need of Job analysis
• Career development
– Career ladder
– Competency system
• Legal issues
– Defining essential functions
• Performance appraisal
– e.g., Critical incidents (poor to outstanding)
• Selection (Assessment)
• Training
– Evaluating required KSAOs and KSAOs of applicants
– Target deficiencies
• Vocational counseling (assessment based)
• Research

17. Managing steady flow of new people in organization
• On newly created positions
• To replace those who have left organization
– Planning the need for new employees
– Getting appropriate people to apply for job (Recruitment )
– Deciding whom to hire (selection)
– Making selected people to take the job (hiring and training)
– Legal issues
I/O Psychologist may be involved in
– Application form
– Testing (is it reasonable?)
– Assessment should be relevant and predictive

18. PLANNING HUMAN RESOURCE
NEEDS
• Careful planning to fill the vacancies is needed
• Focus on organization’s needs for people and
potential people to hire
• Establishment list

19. Cont…
• Organizations change and expand e.g. use of robots
– Reduction in one type of employee and increase in other
– Hire new or give training to old
– Feasibility plan (cost and benefit analysis)
– Selection vs. training approach
– Information about ‘demand and supply’ of people
– Change in demand of jobs with change in needs

20. Recruitment
• Challenge is to have ample people to apply for job
• In undersupply situation --- attract right people for the
job (e.g., prof. in univ.)
– Ads in newspaper
– Website (25% higher use than others)
– extensive recruiting by going in colleges and universities
(e.g., job fair; Fullbright)
– Employee referrals (help in better performance, remain on
job for longer period, more satisfied and realistic
expectations, prescreen, recommended as fit)
– Agencies
– Walk-in

21. Cont…
• Clearly define KSAOs for the job --- help in
where to look for
– e.g., computer skills in univ. and manual
employment in high unemployment zone
• Marketing organization and making it attractive
for applicants e.g.,
– Pay package and rewards
– Career development
– Work environment
– Repute of organization

22. Selection of Employees
• Lucky organizations --- good number of
applicants
• I/O Psychologists procedures work best when
there are several applicants
– Mathematical and statistical procedures
• Selection process
– Interviewing applicants and decide subjectively
– Scientific Method

23. Cont…
• Scientific Method
– Job analysis --- consider legal issues and hiring
people with KSAOs
– Defining criteria --- def. of good employee based on
job performance
– Define Predictors --- KSAOs
– Validate predictors --- concurrent and predictive
– Cross-validate

24. Getting employees to accept job
• Fair recruitment or treatment in selection
• Salary offers
– Cafeteria benefit program
• Behaviour of recruiters
– Truthfulness and honest
– Realistic job preview (RJP)

25. Training
For old and new employees
Lifelong process
• Need assessment (like job analysis)
– Organization level
– Job level
– Person level
• Objectives
– What to achieve after training?
– Define criteria of training

26. Cont…
• Training design
– Transfer of training --- Expectation for learning to
apply knowledge
– Model of Baldwin and Ford (1988) factors
affecting learning and transfer of training
1. Trainee characteristics
– Ability and motivation
– Effect training outcome
– Varied time required to learn

27. Cont…
2. Design Factors
– Feedback
– General principles
– Identical elements
– Over-learning --- automaticity
– Sequence of training --- massed or spaced,
Distributed or whole
2. Work environment
– Support and supervisory attitude
– Opportunity for applying new learning

28. Cont…
4. Training methods
– Audiovisual instructions
– Auto-instructions
– Conference
– Lecture
– Modeling
– On job training --- apprenticeship
– Role-playing
– Simulation
– Electronic training
– Mentoring
– Executive coaching

29. Cont…
• Delivery of training
– Subject matter experts
• Evaluation of training program
– A type of research
– Define criteria --- training level vs. performance
level, reaction criteria, learning criteria, behaviour
criteria, result criteria
– Choose design – pre and posttest, control group
– Choose measures for criteria
– Collect data
– Analyze and interpret

30. Work Environment

31. Work environment
Positive and negative effects on performance
Structured or unstructured
Job characteristics
• Job Characteristic Theory (Hackman & Oldham, 1980)
– Interesting and enjoyable tasks maintain motivation and
high performance
– Job characteristics lead to three psychological states
(motivating level of job)
1. Skill variety, task identity, and task significance (meaningfulness of
task)
2. Autonomy --- leads to responsibility
3. Feedback --- leads to knowledge of result

32. Cont…
• Motivation Potential Score (MPS) for a job
Skill variety + task identity + task significance / 3 X
Autonomy X Feedback
• High MPS --- better job performance and satisfaction (mixed
results)
• Moderating role of personality trait of employee
– Growth Need Strength (GNS)
– More GNS --- More impact of motivating job on performance and
psychological states
– Certain type of people respond to high MPS jobs

33. Cont…
Incentives
• piece-rate system (reinforcement theory)
e.g., sales people or factory workers, or for attendance
– Peer pressure negative plays role
– Effective if employees capability to produce.
– Incentives will not work if employees are working at their
limits
– Something that people want
– Will not work if there are physical or psychological

34. Cont…
Design of technology
• Physical features of job setting
• Field of human factor (ergonomics, engineering
psychology)
• Make job safer and easy to accomplish
– Displays and controls
• Presentation of information (auditory or visual; quick and
accurate)
• Manipulation of tools/machine (controls based on purpose
and situation; fine movement or force; logical placement;
kinesthetic based or touch for vital knobs; feedback for a
function done; logical direction of movement)

35. Cont…
• Computer-human interaction
– Communication with computer --- mental model
– Training and appropriate system design
• Computer-supported cooperative work (CSCW) ---
meeting electronically
– Email
– videoconferencing
Hawthorne studies --- Highlighted social factors
Counter-effects of technology making the job easier
– Boredom and stress
– Passive than active
– Loss of control

36. Cont…
• Organizational constraints
• Effect performance negatively
– physical environment
– Supervisory practices
– Lack of needed training, tools, equipment, and time

37. Cont…
Physical Conditions
Occupational health Psychology (new emerging
field)
• Accidents and safety
• Infectious diseases
• Repetitive actions or lifting
• Toxic substances
• Loud noise
• Workplace violence
• Work Schedules (shifts and hours)

38. Cont…
• Occupational stress
• Work-family conflict
• Burnout

39. CONSUMER BEHAVIOUR AND
MARKETING

40. ?
What do you purchase?
How and where you spend your money?
How you spend your time and resources?

41. Consumer behaviour
• Activities that people undertake when obtaining,
consuming, and disposing of products and services.
• A study of “why people buy?”
• Now consumption analysis --- even after purchase
• Help marketers to devise strategies to attract
consumers

42. Decision what you want to buy
Other products to buy
From where to buy
What you pay
Transportation of product to home
Get rid of left over
How much you throw
Recycling
reselling
How you use product
Storing
Who use
How much you consume
Coming upto expectations
obtaining consuming disposing
Motivation
Past experiences
Opinion/ attitudes
Personality
Emotions
Resources
knowledge
Services
Convenience
Brand/ loyalty
Advertising
Packaging
Product/quality/availability
Price
Store ambience
Consumer influences Organizational influences

43. Marketing
Process of planning and executing the conception,
pricing, and distribution of ideas, goods, and services
to create exchanges that satisfy individual (consumer)
and organizational objectives.
Organization must understand consumer needs and how
they consume products
A product must serve what it’s intended use
Chasing precious consumer

44. Which ad do you like and how it effected your
purchasing decision?
Why you have voted for a particular party?

45. Increased consumers’ influence
• Customer is center piece
• Consumer rules
– Electing through vote (money) for any retailer and
organization
– Revenue generation
– New jobs created
– Marketers focus how to please ruler
• Marketing is transforming or changing the organization to have what
people will buy.
• “Consumer can fire us” (Sam Walton; Wal Mart world’s
largest retail organization)
– Recruit and keep customer

46. Educate and protect consumer
• Buying wisely --- Deception
• Money saving strategies
• Create awareness --- health and policy
– Methods to give information and assistance (e.g. eating,
tobacco consumption, products causing cancer)
• Problems of over and under consumption
– Research in motivation and behaviour

47. Formulate public and personal
policy
• Public policy is based on needs
– E.g., family planning, energy conservation
• Personal policy
– Effect on life-style
– How you behave, your values and beliefs, how you
live life
– Effects economic quality of life
– Consumer differences in spending and saving

48. Evolution of consumer behaviour
Supply Chain
Wholesaler
manufacturer
retailer
consumer
Manufacturing orientation
Till W W 2
Marketing orientation
Sellers orientation
1970-2000
consumer orientation
2000+
Watson’s Unique
Selling Proposition
Behaviourism
motivation
positivism
post-modernism

49. Underlying Principles
• Consumer rules
• Consumer is global (needs are global, culture)
• Consumers are different and alike
• Consumer rights (Consumer Bill of Rights)
– Fraud and manipulation
• Understand consumer
• Marketing strategy