UNIT 1 INTRODUCTION TO INDUSTRIAL PSYCHOLOGY
Oct 24, 2014
UNIT 1INTRODUCTION TO INDUSTRIAL PSYCHOLOGY
INDUSTRY
Group of productive organizations that produce or supply goods, services, or sources of income.
Manufacturing of goods or services within a category.
Refers to the production of an economic good (either material or a service) within an economy.
Commercial production and sale of goods.
WHAT IS PSYCHOLOGY The word Psychology developed from Greek word:
psyche + logos in which psyche = mind or Soul and logos = Science.
The Science of Human mind or it is the study of Human Behavior.
The Science of behavior & mental processes. Its both an academic & applied field. Goal is to benefit the society. Incorporates research from the social sciences,
natural sciences & humanities such as philosophy.
INDUSTRIAL PSYCHOLOGY
The study of people at work in industry or in business. The application of the knowledge of psychology to the
industrial situations. Study of principles & practices that affect the behavior
of human beings. Concerned with the entire spectrum of human
behavior. In the words of BLUM M.L,
“Industrial Psychology is simply the application or extension of psychological facts and principles to the problems concerning human relations in Business and Industry.”
INDUSTRIAL PSYCHOLOGY
Father of Industrial Psychology – Hugo Munsterberg
Emphasis on how to use human resources to increase efficiency and productivity
ASPECTS OF INDUSTRIAL PSYCHOLOGY
INDIVIDUALS GROUPS
INDUSTRY/ORGANIZATI
ON
Three Aspects ofIndustrial
Psychology
PRINCIPLES/ KEY PILLARS OF INDUSTRIAL PSYCHOLOGY
Individual Differences Causation of human behavior
SCOPE OF INDUSTRIAL PSYCHOLOGY
Study of human behavior in industrial organizations. Study of people as individuals and in groups and of their
relationships. Also concerned with the physical aspects of the work
environments. Aims at removing every negative factors which hamper
workers. Aims to give the worker greater physical & mental ease
at work. Study of behavior in work settings and the application of
psychological principles to change work behavior. Development/ discovery of scientific psychological
principles at work.
It suggests techniques of motivating the individual employees.
It helps in taking personnel decisions like selection, training, performance appraisal, and counseling.
It also studies man-machine system so as to design layout of equipment for the convenience of employees.
Helping people do their jobs○ helping employers treat employees fairly○ helping make jobs more interesting and satisfying○ helping workers be more productive
Treating people from diverse backgrounds fairly○ selecting people for jobs○ providing training○ rewarding promotions/raises○ assessing performance accurately
SCOPE OF INDUSTRIAL PSYCHOLOGY (cont.)
AIM OF INDUSTRIAL PSYCHOLOGY
To investigate in an unbiased manner the ways in which psychological problems are handled at present.
To develop new method and to modify the methods which have been tried out and evaluated.
To formulate certain principles which will help in the solution of human relation problems
APPLICATIONS OF INDUSTRIAL PSYCHOLOGY
Employment Testing Designing T & D programmes Job Evaluation Performance Appraisal Motivation of Personnel Vocational Guidance & Counseling Improvement of Morale Human Engineering
Major Influences on Industrial Psychology
Scientific Management
Human Relations Movement/ Approach
Hawthorne Experiments
SCIENTIFIC MANAGEMENT Also called Taylorism Theory of management that analyze and synthesize
workflow. Application of principles & methods of science in the field
of management to manage business or industry. It’s the art of knowing best & cheapest way. The use of scientific methods to determine the “one best
way” for a job to be done. Finding the most efficient methods of production,
scientific selection and training of workers. Use of scientific methods in decision-making for solving
management problems. Objective was to improve economic efficiency, especially
labor productivity.
DEFINITION OF SCIENTIFIC MANAGEMENT
“Scientific Management means knowing exactly what you want men to do & seeing that they do it in the best & cheapest way.”
- Fredrick Winslow Taylor
“Scientific Management characterizes that form of organization & procedure which rests on principles or laws derived by the process of scientific investigation & analysis, instead of tradition or on policies determined empirically & casually by the process of trial & error.”
- Harlow Person
15
Taylor’s Theory of Scientific Management
Frederick W. Taylor (1856-1915) “The Father of Scientific Management” Maximize worker capacity and profits PROBLEM: Get employees to work at their maximum capacity PRIMARY FOCUS: TASKS
Elements of Scientific Management Scientific design of every aspect of every task
○ Time and Motion Studies Careful selection and training of every task Proper remuneration for fast and high-quality work
○ Maximize output - increase pay Equal division of work and responsibility between worker and manager
Underlying Themes Managers are intelligent; workers are and should be ignorant Provide opportunities for workers to achieve greater financial rewards Workers are motivated almost solely by wages Maximum effort = Higher wages Manager is responsible for planning, training, and evaluating
CHARACTERISTICS/ FEATURES OF SCIENTIFIC MANAGEMENT
Use of scientific method Replacement of obsolete production and
management techniques Based on Experimentation and Research in
production and management Concerned with joint efforts of management and
workers Based on rational approach to motivation of workers
PRINCIPLES OF SCIENTIFIC MANAGEMENT
Science, not rule of thumb Harmony, not discord Co-operation, not individualism Maximum output, not restricted output Development of workers to their greatest
efficiency and prosperity Equal division of responsibility
TECHNIQUES OF SCIENTIFIC MANAGEMENT
Scientific task – setting of a fair day’s work Work study
○ Methods study○ Motion study○ Time study○ Fatigue study
Separation of planning from doing Standardization Selection and training Differential piece-rate plan
BENEFITS OF SCIENTIFIC MANAGEMENT
To Employers/ Workers Replacement of traditional thumb rule method by scientific
investigation Proper training and selection of workers Establishment of harmonious relationship Equal division of responsibilities Standardization Utilization of resources Scientific determination of fair day’s work a worker can do Constant guidance and detailed instruction Opportunity for training and development Incentive wages to the workers Better working conditions Less fatigue in work
BENEFITS – To Society Better quality products at lower costs Higher standard of living of people Increased productivity Industrial peace Technological development
CRITICISM – Workers/ Employers Viewpoint
Speeding up of workers Boredom No scope for initiative Unemployment Exploitation of workers Weakening of trade unions Expensive process Reorganization Lack of control Mechanical approach Monotony Lack of proper motivation
HUMAN RELATIONS APPROACH
Human relations era: 1927 –1932 Also known as Neo-Classical Approach Represents a distinct break from the classical approach. Suggests the workers are more than just output
producing machines. Workers were distinguished from non-human factors
such as capital, machine, building, etc. Feelings, sentiments & ambitions of workers were duly
recognized. Workers were involved in decision-making process. Focus on human aspect Emphasize on the role of communication, participation
and leadership.
HAWTHORNE EXPERIMENTS
George Elton Mayo & other researchers from Harward Business School of U.S.A. investigated into the human aspects of work & working conditions at Hawthorne Works of Western Electric Company, Chicago.
Study of different aspects of human behavior Examination of productivity, work conditions
and their effect on the organization.
HAWTHORNE EXPERIMENTS
Illumination Experiments Relay Assembly Test Room Experiment Bank Wiring Observation Room
Experiment Personnel Counseling Programme Mass Interview Programme
Illumination Experiment
Purpose – to find out the effect of illumination on employee output or workers productivity.
Studying the relationship between physiological variables and employee productivity
Relay Assembly Test Room Experiment
Purpose – To study the effect of socio-psychological factors on workers.
To find out the effects or changes in no. of work hours & related working conditions on worker productivity.
Conclusion – considerable increase in the employee productivity and morale.
It was suspected that employee attitude & sentiments were critically important variables.
Bank Wiring Observation Room Experiment
Purpose – To find out the importance of group influence on workers behavior & productivity.
The pay of every member of group was made dependent on the group as a whole.
Group had developed its own norms of performance.
Output could not increase despite group incentive scheme.
Mass Interview Programme
An approach to know workers opinion on work, working conditions & supervision.
This approach results in a positive effect on the workers morale & productivity.
Findings of Hawthorne Experiments
An organization is a psycho-social system. Human factor is the most important element in the
social system. The behavior of an individual is dominated by the
informed group of which he is a member. Workers are not merely rational economic beings
motivated simply by money. Social & psychological factors exercise a greater
influence on employee behavior & performance than physical conditions of work.
Workers act or react not as individuals but as members of a group.
Contributions of Human Relations Approach
Social System Social Environment Informal Organisation Group Dynamics Leadership Communication Role of Money Conflict
Criticism of Human Relations Approach
Invalid Assumption Lack of Scientific Validity Limited Application Limited Focus on work Over-concern with happiness Fragmented Approach