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Industrial-Organisational Psychology is one of many branches that highlight how the understanding of human psychology—though still evolving—offers significant insights into human behaviour, explaining how and why people think, act, and react the way they do. This growing body of knowledge has allowed psychology to intersect with a variety of other fields beyond healthcare and medical science. Notable examples include industrial psychology, consumer psychology, corporate psychology, and educational psychology, among others, highlighting the discipline’s wide-ranging relevance and impact.
Explain Industrial-Organizational Psychology
This discipline brings together two key areas of psychology — Industrial Psychology and Organisational Psychology. It focuses on applying psychological theories and principles within workplace settings to understand the behaviour and grievances of employees better, enhancing the overall work environment. The ultimate goal is to improve productivity, job satisfaction, and organisational effectiveness.
The field of Industrial-Organisational Psychology has witnessed a recorded growth of over 26% in 2018, and it is still in demand. As the awareness of mental health in office spaces increases, more and more corporations and organisations are bound to create room for psychological evaluation and the well-being of all employees and staff. Let’s begin by exploring Industrial Psychology and Organisational Psychology separately to better understand how they function individually and how they complement each other.
Theories of Industrial Psychology
Industrial psychology focuses on creating a work environment where employees can thrive holistically, while also enhancing their productivity and contribution to the organisation. To achieve this goal, Industrial Psychology uses 6 Theories, explained below.
- A motivated employee is more likely to meet deadlines and achieve goals. According to the Self-Regulation Theory, such employees actively monitor their progress and stay focused.
- Employee motivation is one of the key areas a company should invest in. Expectancy Theory suggests that the more employees believe their efforts will lead to success, the more motivated they will be.
- The Equity Theory is directed toward employees who expect fair treatment and believe in equal behaviour from all, motivating them to do their best.
- Job satisfaction also plays a crucial role in both Industrial and Organisational Psychology. The Individual Difference Theory explains how people differ in their willingness and ability to take on new tasks, which impacts their job satisfaction.
- Every employee desires to be valued, which is directly tied to job satisfaction. If they are not satisfied, they are likely to quit or stall the progress of the team.
- A healthy work environment can help employees feel valued and content. According to the Social Learning Theory, employees can observe other satisfied employees and learn to appreciate their role and contribution to the company.
These theories barely scratch the surface of Industrial Psychology, but provide a suitable guide to the study of industrial psychology.
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Industrial-Organizational (I-O) Psychology

What is Organisational Psychology?
While Industrial psychology deals with the logistical parts like employee motivation and job satisfaction, Organisational psychology is more focused on the evaluation of individuals, understanding the organisational dynamics, and suggesting solutions that ensure employee wellbeing and productive growth. In order to improve the workplace culture and environment, Organisational psychology emphasises 5 main areas that must be paid attention to.
- The recruitment process in a company significantly draws on Organisational Psychology, from crafting job advertisements and defining role qualifications to developing effective selection and evaluation methods.
- Industrial psychology analyses the skills and abilities of candidates for a specific job role, organisational psychology is utilised in developing a training and skill development programme for the selected candidates.
- In the case of employee well-being, work-life balance, and job satisfaction, industrial and organisational psychology offers similar insights.
- Organisational psychologists are appointed to evaluate employee performance and try to offer effective suggestions to improve their productivity and job satisfaction ratio.
- While employee well-being is at the forefront of organisational psychology, the organisational structure, management and performance are equally important for the organisation to improve its working.
Organisational psychology deals with human behaviour in a workplace environment and its evaluation. Combined with Industrial Psychology, these two forces are of great value to corporations and companies.
Key Topics & Subjects Included in Industrial-Organizational Psychology
Industrial-Organisational (I-O) Psychology is a popular psychological discipline for individuals interested in applying psychological evaluation and behaviourism in workplaces. It is aimed at improving the organisational environment, its culture and helping the company prosper. The following topics and subjects are the main areas of highlight in this study programme.
- The recruitment process is one of the primary objectives under the I-O Psychology.
- An I-O Psychologist is responsible for improving the work experience of employees through various exercises, tools and techniques.
- From the employee performance to the overall company performance, I-O Psychology oversees and analyses all managerial decisions.
- Designing skill development workshops and activities for recruited candidates is also done by an I-O psychologist.
- Ensuring job satisfaction among employees by overseeing their productivity and a healthy work-life balance also falls under the purview of I-O psychologists.
In short, Industrial-Organisational Psychology covers everything related to the working of the company and its employees’ well-being.
Pursuing a Career in Industrial-Organizational Psychology
Building a career in Industrial Psychology requires several years of dedicated study, practical training, and academic qualifications. Here’s a step-by-step guide to becoming an Industrial-Organisational Psychologist.
- Obtaining a bachelor’s degree in Industrial-Organisational Psychology is the preliminary and most crucial step to entering the domain.
- A Master’s degree further advances the knowledge and training, and provides a scope for acquiring advanced job roles.
- Internships, along with the study, allow for a hands-on, practical experience of being an I-O psychologist.
- A degree or diploma in the domain helps in acquiring a license to be an I-O psychologist.
The study of Industrial-Organisational Psychology focuses on understanding the relationship between a company and its employees. It aims to develop effective strategies that enhance both the organization’s performance and employee productivity, while prioritising the well-being of the workforce and making the work environment more supportive and inclusive.