Unproctored watson glaser critical thinking appraisal

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Learning Outcomes

After reading this chapter, you should be able to

De�ine I/O psychology.

Explain the history and evolution of I/O psychology.

Understand how positive psychology can in�luence I/O psychology practices.

Identify ways in which I/O psychology can lead to quanti�iable return on investment in human capital.

Describe the different roles I/O psychologists play in organizations.

Identify the major opportunities and challenges that I/O psychology can help organizations navigate.

1What Is Industrial/OrganizationalPsychology?

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1.1 De�ining I/O Psychology

According to the Society for Industrial and Organizational Psychology (SIOP), industrial/organizational (I/O) psychology can be de�ined as the scienti�ic study of working and the application of that science to workplace issues facing individuals, teams, and organizations. I/O psychology uses rigorous scienti�ic methods to investigate issues of critical relevance to individuals, businesses, and society, including talent management, coaching, assessment, selection, training, organizational development, performance, and work–life balance. In other words, I/O psychology is a branch of psychology that uses methods, facts, and principles of psychology to enhance employee productivity.

I/O psychology originates from two distinct but related areas of study: industrial and organizational psychology. Industrial psychology focuses on individual-level phenomena in the workplace. This includes assessing workers’ personalities, knowledge, skills, abilities, and other characteristics (KSAOs) in order to match them with the right jobs; measuring and managing employee attitudes and emotions; using the right working conditions and reward systems to motivate employees; training and developing employees for their current and future roles; and ensuring that workers have healthy, safe, and balanced jobs and lives. Organizational psychology focuses on group- and organizational-level phenomena, which may occur in both work and nonwork settings. Examples include communication, negotiation, con�lict resolution, and team processes. The purpose of organizational psychology is to facilitate the understanding of interactions and relationships among individuals and collectives in order to achieve common goals.

I/O psychology is also related to several other �ields, especially in the organizational sciences. For example, business scholars in the �ield of organizational behavior are interested in similar topics—especially at the individual and group levels—such as personality traits, motivation, and group dynamics. However, their approach tends to be more conceptual or theoretical. On the other hand, scholars and practitioners in the �ield of human resources (HR) are more interested in the practical applications of I/O psychologists’ and organizational behavior specialists’ methods and tools in organizational contexts. They apply these when making quality selection decisions; designing and administering effective compensation, bene�its, training, development, and succession programs; and complying with labor laws and regulations.

The Importance of People

What is an organization’s most important asset? As you can imagine, chief executive of�icers (CEOs) and organizational leaders are asked this question all the time. Many factors in�luence an organization’s overall performance, including �inancial resources, technology, customer service, creative organizational strategies, innovative products, and superior logistics. However, there is one factor that ultimately in�luences all others and is consistently identi�ied by organizational leaders as most important: people. For example, Mary Kay Ash, founder of Mary Kay Inc., once stated, “People are de�initely a company’s greatest asset. It doesn’t make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps.” Herb Kelleher, former CEO of Southwest Airlines, echoed this sentiment when he said: