See what's new

Testlify
Back to HR Glossary
HR Glossary

Industrial Psychology

Industrial psychology is the scientific study of human behavior in the workplace to improve employee performance and organizational effectiveness.

Summarise this term with:ChatGPTGeminiClaudeGrokPerplexity

What is industrial psychology?

Industrial psychology is a subfield of psychology that focuses on the study of human behavior in the workplace. It encompasses various topics such as employee selection and recruitment, training and development, performance appraisal, job analysis, motivation, and organizational development. Practitioners in industrial psychology use their knowledge to improve the efficiency and productivity of organizations and the well-being of employees. It is also known as I-O psychology or work psychology.

Image showing the meaning of industrial psychology
Image showing the meaning of industrial psychology

What are the aims of industrial psychology?

The aims of industrial psychology include:

  1. Improving employee performance and productivity: One of the main goals of industrial psychology is to design and implement effective training programs and management techniques that can improve employee performance and productivity.
  2. Enhancing employee well-being and job satisfaction: Industrial psychologists aim to improve employee well-being and job satisfaction by identifying and addressing factors that contribute to work-related stress and burnout.
  3. Improving organizational effectiveness: Industrial psychologists study how to design and structure organizations to improve performance and efficiency, and how to create a positive organizational culture that can lead to better employee engagement and retention.
  4. Improving the selection and recruitment process: Industrial psychologists aim to design and implement effective selection and recruitment processes that can help organizations identify and hire the best candidates for the job.
  5. Improving the design of work: Industrial psychologists aim to design jobs and work environments that are safe, efficient, and motivating for employees.
  6. Improving legal compliance: Industrial psychologists can help organizations understand and adhere to laws and regulations related to employment and workplace issues, such as equal opportunity and affirmative action.
  7. Addressing the challenges of the changing work environment: Industrial psychology can help organizations adapt to the changing work environment such as the emergence of new technologies and the increased focus on work-life balance.
  8. Improving the relationship between management and employees: Industrial psychologists aim to improve the relationship between management and employees by identifying the factors that contribute to good or poor relationships, and by designing interventions to improve communication and collaboration.

Industrial vs organizational psychology

Industrial psychology and organizational psychology are both subfields of psychology that focus on the study of human behavior in the workplace. However, they have different areas of focus and application. HBR’s organizational development research

Industrial psychology, also known as I-O psychology or work psychology, primarily focuses on the individual employee and their behavior in the workplace. It includes topics such as employee selection and recruitment, training and development, performance appraisal, job analysis, motivation, and organizational development. Practitioners in industrial psychology use their knowledge to improve the efficiency and productivity of organizations and the well-being of employees.

On the other hand, organizational psychology focuses on the organization as a whole and its structure, culture, and processes. It encompasses topics such as organizational development, change management, leadership, team dynamics, and communication. Practitioners in organizational psychology use their knowledge to improve the effectiveness of organizations and the well-being of employees.

Both industrial and organizational psychology share the same goal of improving the performance and well-being of employees, as well as the overall effectiveness of organizations. SHRM’s employee development guidance

Industrial psychology helps HR teams design better selection tools, training programs, and work environments. Organizations using pre-employment assessments ensure every hire is grounded in verified skills. A data-driven hiring plan reduces mis-hire risk, while strong talent acquisition practices focused on skills-based hiring help organizations attract and retain top talent.

Frequently asked questions

Industrial psychology, also called industrial-organizational (I/O) psychology, applies psychological principles to the workplace to improve employee performance, well-being, and organizational effectiveness. It covers areas such as personnel selection, training design, motivation, leadership, and work environment.

Get started.

Hire on proof, not resumes.

Run your first skills-based assessment free — no credit card required.

We use cookies to enhance your browsing experience, serve personalised ads or content, and analyse our traffic. By clicking "Accept All", you consent to our use of cookies.