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Benefits of using of organizational psychology in business

by Mary Tyrer

Created on: December 15, 2010

Although the field industrial and organizational (I/O) psychology is a part of the study of psychology from its inception, I/O psychology is a form of psychology that is not well-known outside of the psychological field by name. Many companies who use the services of the I/O psychologist are aware of the methods, yet the I/O psychology rarely known by name (Spector, 2008). In the beginning of I/O psychology, the practice was exclusive to the industrial field. Concentrating on managerial features of business and the main emphasis put solely on human wealth. Early within the practice of I/O concerned itself more with the organizational side. Believing doing this would improve working conditions for people in the workplace. However, the field of I/O psychology is changing and growing over time consistently changing the industry and organization. Industrial Organizational psychology is the field of psychology that works to develop, and applying, the development and application of scientific values in the workplace (Spector, 2008). The goal of I/O psychology is to, “…improve the quality of the environment for employees as well as to increase the effectiveness and efficiency of employee behavior in that environment” (Barnes-Holmes et. al., 2006, p. 56). Therefore, the role of I/O psychology has evolved from its origin to modern times.

Evolution of Industrial/Organizational Psychology

Industrial/Organizational psychology became important in the late 1800s, early 1900s. During this period, psychologists were doing their best to apply psychological theories the organization of business (Spector, 2008). Huge Munsterberg and Walter Dill Scott university professors with a common interest believed that selecting employee’s property and requesting special psychological testing of industry that attributed to help both employer and prospective employee would be helpful to productivity and an enjoyable work atmosphere. The two books written by Munsterberg and Scott The Theory of Advertising (1903), Psychology, and Industrial Efficiency (1913). The procedural step came  together for Scott and Munsterberg, in 1911 when Frederick Winslow Taylor established his theory of “Scientific Management.” This is putting a scientific technique in place for managing an assembly of workers on the factory line.

Industrial/Organizational psychology became technological relevant when Lillian Gilbreth, a psychologists, and Frank Gilbreth, an engineer,

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