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PROJECT REPORT ON

INDUSTRIAL PYSCHOLOGY IN INDIA

IN FULFILLMENT OF THE REQUIREMENTFOR

POST GRADUATION DIPLOMA IN BUSINESS ADMINISTRATION (H.R)

SUBMITTED BY

MS. ROMALJIT KAUR NAGPAL

ROLL NO.: DPGD/JL09/1064

SPECIALISATION : -- HUMAN RESOURCES--

WELINGKARS INSTITUTE OF MANAGEMENT & RESEARCHMUMBAI.

2011

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INDUSTRIAL PSYCHOLOGY IN INDIA

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ACKNOWLEDGEMENT

I would like to extent my sincere gratitude to all those people who have helped me in the successful

completion of my project entitled INDUSTRIAL PSYCHOLOGY IN INDIA . First and foremost I would

like to thank my guide____________ for her/his constant guidance and support.

My special thanks to my parents and friends for their constant support and assistance, to make this project

worth presenting before you.

Lastly, I acknowledge my sincere thanks to our Director Dr Uday Salunkhe for his vision and constant

moral support.

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APPENDIX- I

CERTIFICATE FROM THE GUIDE

This is to certify that the Project work titled Industrial Psychology in India is a bonafide work

carried out by Ms. Romaljit Kaur Naagpal , (Roll No DPGD/JL09/1064), a candidate for the

Post Graduate Diploma examination of the Welingkar Institute of Management under my

guidance and direction.

SIGNATURE OF GUIDE :

NAME :

DESIGNATION :

ADDRESS :

STAMP OF THE ORGANIZATION :

DATE : 30/06/2011

PLACE : Mumbai

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INDEX

Topic Page Nos.

INTRODUCTION

Definitions 9

Ethics 10

History 10

Scope of Industrial Psychology 11

Significance 12

Sub fields on Industrial Psychology 13

Personnel Psychology 14

Organisational Psychology 14

Human Engineering Psychology 14Consumer Psychology 14

Managerial Psychology 15

Work Environment Psychology 15

Organisational Behaviour 16

Market Research on Industrial Psychology 17

Benefits of the research 17

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Industrial Psychologists

18

Role of Industrial Psychologists 18

Jobs of Industrial Psychologists 19

Areas of interest of Industrial Psychologists 21

Main topics in Industrial Psychology 22

Job Analysis 22

Personnel Selection & Recruitment 23Performance Appraisal 23

Individual Assessment & Psychometrics 24

Remuneration & Compenstaion 24

Training & Training evaluation 24

Motivation in the workplace 25

Organisational Culture 25

Group behaviour 25

Job Satisfaction & Commitment, & few more 26,27,28,29

Objectives of Industrial Psychology 30

BACKGROUND 31

Case Studies 31,32,33

Problems studied in Case study 34

METHODOLOGY

Objectives of the study 34

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CONCLUSIONS & RECOMMENDATIONS 35

Limitations of the study / Problems 35

Importance of Industrial Psychology 38

Industrial Psychology in India 39

Functions of Industrial Psychology 41

Employment / Selection Tests in Indias Industrial Psychology 42

Assessment Centres 42

Biographical Data 43

Cognitive Ability Tests 44

Integrity Tests 45

Interviews 46

Job Acknowledge Tests 47

Personality Tests 47

Physical Ability Tests

48

Concluding Remarks for Selection Tests 57

Industrial Psychology In India with respect to Team Work and Environment 58

Employee Motivational theories 63

Benefits of Industrial Psychology 64

CONCLUSIONS & RECOMMENDATIONS 65

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BIBLIOGRAPHY 66

INTRODUCTION

M eaning

Definitions

3 . Industrial psychology, currently also known as industrial-organizational psychology is defined by the Society for Industrial and Organizational Psychology (SIOP) as "the scientific study of theworkplace." As a type of applied psychology, Industrial psychology assists organizations inselecting personnel with a focus toward how to maximize human capital.

Scope of Industrial Psycholo gy

Industrial psychology is a branch of behavioral science that directs itsresearch and courses of study to business . It is not a new science. In fact one of the earlier books on the subject, HugoMunsterberg's "The Psychology of Industrial Efficiency" was published by Houghton Mifflin in1913. Departments of management, design, production, pricing, marketing and distribution all

benefitfrom knowledge of industrial psychology.

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Management

Many management skills fall under the umbrella of industrial psychology.

Managers must be educated concerning the area of employee supervision.Expertise in perceptionand assessment is required in order to make proper decisions as to whether to promote or admonish. Determination of training needsand abilities to resolve conflict are skills thatmanagers would learn in their study of industrial psychology. Motivational tactics are imperativeto the success of industry, thus the industrial psychologist also may devise financial or other incentives.

The Significance of Industrial Psycholo gy

The Society for Industrial and Organizational Psychology (SIOP), a division of the AmericanPsychological Association, defines industrial psychology as thescientific study of the workplace.Industrial psychology helps employers improveworking conditions for the benefit of employeesand for heightened organizational productivity.

Growth

The Bureau of Labor Statistics predicts 26 percent growth in employment for Industrial-organizational psychologists.

Significance

Industrial psychologists perform research as practitioners or academics in the application of psychology to the workplace. Their combined research is used byemployers to improve theworkplace.

According to the SIOP, this field provides advice that benefits workers. Areas include testing,selection and promotion, training and development and employee attitudes and motivation.TheSIOP also notes benefits for organizations. Industrial psychologists provide strong leadership inchange management, strategic planning, surveys, job design and evaluation, restructuring andworkforce planning and cross-cultural understanding.

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Fields on Industrial Psychology

Just as psychology as a discipline is divided into various branches so is Industrial Psychologywhich is one of the branches broken into so many sub-branches namely;

i. Personnel Psychology

ii. Organizational Psychology

iii. Human Psychology

iv. Consumer Psychology

v. Managerial Psychology

vi. Work-Environment or Environmental Psychology

1. Personnel Psychology

Organisational Behaviour

For any organization to function properly people who made up the organization must performtheir assigned duties effectively, that is, they must behave in certain ways such that the corporategoals of the organization will be accomplished. Organizational behavior is therefore aspecialized field of study concerned with understanding and describing human behavior in anorganization. It is the study of why people behave as they do in organizations.

As a field of study, organizational behavior is broadly inter-disciplinary in scope. Several other fields, all of which are interdisciplinary themselves, provide the knowledge base for OB. Areasof study such as Psychology, Sociology and Anthropology which constitute the subject areaknown as Behavioral Sciences jointly with other subject areas such as Organization Theory,Micro-Economics and Industrial Engineering are areas of interest of Organizational Behaviour.

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Organizational Behaviour is, therefore, the application of the knowledge of behavioural sciencesand other related academic disciplines to organizational setting.

Market Research on Industrial Psychology

Marketing Research is essential for strategic market planning and decision making. It helps afirm in identifying what are the market opportunities and constraints, in developing andimplementing market strategies, and in evaluating the effectiveness of marketing plans.

The research performed by industrial psychologists on industrial psychology is wide, variedand focused on many different issues. For example, research may be done on the humanfactors of safety management compared to factors contributed by the workplace environment.Other topics of research can involve workplace culture and mergers, sexual harassment and

stigmas in a workplace organization such as sex, religion and race. Industrial psychologistsrely on a variety of methods to conduct organizational research. Study designs employed byIndustrial psychologists include surveys, experiments, quasi-experiments and observsationalstudies. Industrial psychologists rely on diverse data sources including human judgments,historical databases, objective measures of work performance (e.g., sales volume), andquestionnaires and surveys.

Industrial researchers employ both quantitative and qualitative research methods

The role played by Research and Statistics in Industrial Psychology is at the heart of Industrial psychology in the scientist-practitioner perspective. The use of evidence-based

practices lies in the integrity of using correctly the techniques to systematically collect data,and analysing them in a meaningful way. Interventions on leadership, job performance,employee stress, and selection techniques are all based on the reliability and validity of measurements as constructs.

Benefits of Market Research

The benefits that come from this research is important to maintaining a workplace that is ableto run smoothly and efficiently as well as to improving the morale and productivity of employees. In particular, research has improved safety in many industries by making changes

to safety codes and standards as well as implementing new safety procedures. The value of

industrial psychology is also in the way it helps employees understand and work well witheach other and with their employers, both individually and as a team.

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Help people do their jobs effectively Treat employees fairly Make jobs more interesting and satisfying

Industrial Psychology Careers & Degrees

Training Programs in Industrial Psychology

An increasing number of schools offer bachelor and master dregrees in industrial psychology .In order to become a qualified industrial psychologist, you will need to pursue graduate leveleducation. A master degree in industrial psychology or an associated field such as humanresources or organizational development takes approximately two years, after which you will bea qualified industrial psychologist. A doctoral degree will require five to seven years of graduate-level study.

An industrial psychologist has several responsibilities within an organization, including:

Working to ensure that employees are treated fairly Addressing harassment issues Creating systems that reward performance Making jobs more interesting/satisfying Motivating employees and teams to work effectively

Helping people and teams become more productive Offering training and development Helping the workforce meet competitive challenges

Industrial psychologists also help develop work processes that are flexible, while maintaining productivity and worker well-being. Industrial psychology consultants thoroughly study anorganization and help management create training modules and motivational programs for employees. They may also address issues such as a discrimination and diversity.

Jobs of Industrial PsychologistsMany industrial and organizational psychologists specialize in aspects (e.g., psychometrics; timeand motion studies; labor law; personnel selection; training) aspects (e.g., leadership selection,coaching and development; organizational design and change). Some I/O psychologists areacademic (working in both business and psychology departments) or non-academic researchers,while many others are engaged in practice, holding positions such as:

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executive coach diversity consultant legislative compliance officer labor relations specialist human resources specialist process improvement consultant

Skills Needed in Industrial Psychology

Communication is a vital skill for industrial psychologists. They not only need to be able toeffectively communicate with employers and employees in order to gain understanding about theissues they face, but also to present their strategies for solving problems effectively.

Training and Development

Industrial psychologists also implement training programs. How to design a high-qualitytraining program and determining what factors increase information retention are of interest toindustrial-organizational psychologists. They also identify areas in which employees coulddevelop skills to improve efficiency and become a stronger asset for the company.

Satisfaction in the Workplace

A large field of interest to many businesses is increasing job satisfaction. Industrial psychologists research the characteristics of a workplace that lead to greater happiness andemployee morale. Workers with high job satisfaction are more efficient and likely to stay witha company. Many businesses are keenly interested in maintaining worker satisfaction to

prevent the considerable costs of rehiring and training new workers. Industrial psychologistsidentify ways in which employees achieve work-life balance and design programs to improve

job satisfaction and employees concern.

Topics included in Industrial Psychology

Job analysis

Job analysis is often described as the cornerstone of successful employee selection efforts and performance management initiatives. A job analysis involves the systematic collection of information about a job. Job-analytic methods are often described as belonging to one of two

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approaches. One approach, the task-oriented job analysis, involves an examination of the duties,tasks, and/or competencies required by a job. The second approach, a worker-oriented jobanalysis, involves an examination of the knowledge, skills, abilities, and other characteristics(KSAOs) required to successfully perform the work. These two approaches are not mutuallyexclusive. Various adaptations of job-analytic methods include competency modeling, whichexamines large groups of duties and tasks related to a common goal or process, and practiceanalysis, which examines the way work is performed in an occupation across jobs.

Job-analytic data are often collected using a variety of quantitative and qualitative methods. Theinformation obtained from a job analysis is then used to create job-relevant selection procedures,

performance appraisals and criteria, or training programs. Additional uses of job-analyticinformation include job evaluations for the purpose of determining compensation levels and jobredesign.

Personnel recruitment and selection

Industrial psychologists typically work with HR specialists to design (a) recruitment processesand (b) personnel selection systems. Personnel recruitment is the process of identifying qualifiedcandidates in the workforce and getting them to apply for jobs within an organization. Personnelrecruitment processes include developing job announcements, placing ads, defining keyqualifications for applicants, and screening out unqualified applicants.

Personnel perSelection is the systematic process of hiring and promoting personnel. Personnelselection systems employ evidence-based practices to determine the most qualified candidates.Personnel selection involves both new hires and individuals who can be promoted from withinthe organization. Common selection tools include ability tests (e.g., cognitive, physical, or

psychomotor), knowledge tests, personality tests , structured interviews, the systematic collectionof biographical data, and work samples. Industrial psychologists must evaluate evidenceregarding the extent to which selection tools predict job performance, evidence that bears on thevalidity of selection tools.

Personnel selection procedures are usually validated, i.e., shown to be job relevant, using one or more of the following types of validity: content validity , construct validity, and/or criterion-related validity . Industrial psychologists adhere to professional standards, such as the Society for Industrial and Organizational Psychology's (SIOP) Principles for Validation and Use of Personnel Selection Procedures [19] and the Standards for Educational and Psychological Testing .[20] The Equal Employment Opportunity Commission' s Uniform Guidelines [21] are also influentialin guiding personnel selection although they have been criticized as outdated when compared tothe current state of knowledge in Industrial psychology.

Industrial psychologists not only help in the selection and assessment of personnel for jobs.Industrial psychologists also assist in the selection of students for admission to colleges,

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universities, and graduate and professional schools as well as the assessment of studentachievement, student aptitude, and the performance of teachers and K-12 schools. Increasingly,Industrial psychologists are working for educational assessment and testing organizations anddivisions.

Performance Appraisal / Management

Performance appraisal or performance evaluation is the process of measuring an individual'swork behaviors and outcomes against the expectations of the job. Performance appraisal isfrequently used in promotion and compensation decisions, to help design and validate personnelselection procedures, and for performance management . Performance management is the processof providing performance feedback relative to expectations and improvement information (e.g.,coaching, mentoring). Performance management may also include documenting and tracking

performance information for organization-level evaluation purposes.

An Industrial psychologist would typically use information from the job analysis to determine a job's performance dimensions, and then construct a rating scale to describe each level of performance for the job. Often, the Industrial psychologist would be responsible for trainingorganizational personnel how to use the performance appraisal instrument, including ways tominimize bias when using the rating scale, and how to provide effective performance feedback.Additionally, the Industrial psychologist may consult with the organization on ways to use the

performance appraisal information for broader performance management initiatives.

Individual Assessment and Psychometrics

Individual assessment involves the measurement of individual differences. Industrial psychologists perform individual assessments in order to evaluate differences among candidatesfor employment as well as differences among employees. The constructs measured pertain to job

performance. With candidates for employment, individual assessment is often part of the personnel selection process. These assessments can include written tests, physical tests, psychomotor tests, personality tests, work samples, and assessment centers.

Psychometrics is the science of measuring psychological variables, such as knowledge, skills,and abilities. Industrial psychologists are generally well-trained in psychometric psychology.

Remuneration And Compensation

Compensation includes wages or salary, bonuses, pension/retirement contributions, and perquisites that can be converted to cash or replace living expenses. Industrial psychologists may be asked to conduct a job evaluation for the purpose of determining compensation levels and

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ranges. Industrial psychologists may also serve as expert witnesses in pay discrimination caseswhen disparities in pay for similar work are alleged.

Training And Training Evaluation

Most people hired for a job are not already versed in all the tasks required to perform the jobeffectively. Similar to performance management, an Industrial psychologist would employ a job analysis in concert with principles of instructional design to create an effective training program.A training program is likely to include a summative evaluation at its conclusion in order toensure that trainees have met the training objectives and can perform the target work tasks at anacceptable level. Training programs often include formative evaluations to assess the impact of the training as the training proceeds. Formative evaluations can be used to locate problems intraining procedures and help Industrial psychologist make corrective adjustments in the whilethe training is ongoing.

Motivation in the Workplace

Motivation is a positive drive that enables a person to reach a set goal. In a workplace, themanager or supervisor has to know the needs or drive of an individual, and motivate according toit. In an organization, when an employee is doing good job or production is increased by him, hemust be rewarded with respect to his needs.

Organizational Culture

Organizational culture can be described as a set of assumptions shared by the individuals in anorganization that directs interpretation and action by defining appropriate behavior for varioussituations. There are three levels of organizational culture: artifacts, shared values, and basic

beliefs and assumptions. Artifacts comprise the physical components of the organization thatrelay cultural meaning. Shared values are individuals' preferences regarding certain aspects of the organization's culture (e.g. loyalty, customer service). Basic beliefs and assumptions include

individuals' impressions about the trustworthiness and supportiveness of an organization, and areoften deeply ingrained within the organization's culture.

In addition to an overall culture, organizations also have subcultures. Examples of subculturesinclude corporate culture, departmental culture, local culture, and issue-related culture. Whilethere is no single "type" of organizational culture, some researchers have developed models todescribe different organizational cultures.

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Organizational culture has been shown to have an impact on important organizational outcomessuch as performance, attraction, recruitment, retention, employee satisfaction, and employeewell-being. Also, organizations with an adaptive culture tend to perform better thanorganizations with an unadaptive culture.

.

Training and Development

Industrial psychologists also implement training programs. How to design a high-quality training program and determining what factors increase information retention are of interest to industrial-organizational psychologists. They also identify areas in which employees could develop skills toimprove efficiency and become a stronger asset for the company.

Satisfaction in the Workplace

A large field of interest to many businesses is increasing job satisfaction. Industrial- psychologists research the characteristics of a workplace that lead to greater happiness andemployee morale. Workers with high job satisfaction are more efficient and likely to stay with acompany. Many businesses are keenly interested in maintaining worker satisfaction to preventthe considerable costs of rehiring and training new workers. Industrial-organizational

psychologists identify ways in which employees achieve work-life balance and design programsto improve job satisfaction and address employees' concerns.

Innovation

Innovation is a form of productive behavior that employees exhibit when they come up withnovel ideas that further the goals of the organization. Innovation at an individual level isdependent on task-relevant skills (general mental ability and job specific knowledge ), creativity -relevant skills (ability to concentrate on a problem for long periods of time, to abandonunproductive searches, and to temporarily put aside stubborn problems), and task motivation

(internal desire to perform task and level of enjoyment).

There are things that organizations can do in order to breed innovation in the workplace. Some of these items include providing creativity training, having leaders encourage and modelinnovation, allowing employees to question current procedures and rules, seeing that theimplementation of innovations had real consequences, documenting innovations in a professionalmanner, allowing employees to have autonomy and freedom in their job roles, reducing thenumber of obstacles that may be in the way of innovation, and giving employees access to

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resources (whether these are monetary, informational, or access to key people inside or outsideof the organization).

L eadership

Leadership is a process of influencing and supporting and motivating others to work enthusiastically or effectively towards achieving the objectives or goal. A leader acts as acatalyst , who identifies the potential of a worker and tries to put that into reality. A leader can bea positive leader or a negative leader.

Objectives of Industrial Psychology

The objectives of a study taken on Industrial Psychology state:

1. To improve the situation on the job.2. To affect high morale and enthusiasm at work.3. To restore the mental health of upset and confused individuals.4. To remove risks to healths or threats to safety.5. To increase efficiency of people at work.6. To increase productivity and hence the profits.

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BACKGROUND

Lets take 2 case studies to understand this study of Industrial Psychology.

Case 1 :

.

.

Problems noted / studied in the _____ organisation:::

METHODOLOGY :

Obejctives of the above case studies a r e :

1. To increase efficiency of the people at work.

2. Because the workplace is a social system, the application of industrial psychology isuseful in understanding its complexity.

CONCLUSIONS & RECOMMENDATIONS

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By motivating and evaluating workers and working conditions, organizations are able to thrive.The practices performed by psychologists help keep productivity and morale in the workplacehigh and that is highly valuable in a world that is fueled mostly by competitive business.

LIMITATIONS OF THE STUDY / INDUSTRIAL PSYCHOLOGY

.

Importance of Industrial Psychology

INDUSTRIAL PSYCHOLOGY IN INDIA

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The emergence of industrial psychology In India is linked to the beginning of the scientificorganization of labor. At first, the most important problem faced by industrial psychology inIndia was that of vocational selection. An analysis of differences in the productivity of workers

who had received approximately the same training led to the thought that more or less stableindividual differences existed with regard to vocational aptitude. Special tests were created toevaluate this aptitude quantitatively and carry out vocational selection. It became necessary tostudy thoroughly the psychology of various occupations. This led to the discovery thatdifferences in dispositions, interests, and motivations impel individuals to prefer a given

profession. Special career guidance bureaus were organized to assist adolescents in choosing a profession. A special branch in industrial psychology was created: vocational guidance andconsultation. Specialized research was conducted on the development of the professional skillsand qualities that are important for various types of work. This branch of industrial psychologyseeks to provide recommendations for improving teaching methods and implementing varioustraining and exercise programs.

In view of the contemporary scientific and technological revolution, industrial psychology iscalled on to study the new conditions and forms of human labor, as well as possible stimulatingfactors. It is also called on to study new professions and the requirements of labor employingadvanced technology. Industrial psychology is closely linked to the sociology of labor, social

psychology, engineering psychology, organizational and economic psychology, economics,industrial ethics, biotechnology, the physiology and hygiene of labor, cybernetics, administrativedisciplines, applied mathematics, qualimetry, and technical aesthetics.

advertisement, to creating a process that will excite potential employees and make them want towork for you, and to create a workplace that will facilitate and promote retention of theseemployees. The hard work involved in hiring someone is all for naught if that person quits sixmonths later because the workplace is undesirable.

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Employment Tests/ Selection Tests

Introduction

\In this section, general types of tests are described and their general pros and cons related.Tests discussed in this section are ones for which some general evidence of validity has been provided. A test is valid if the inferences made based on the test score are accurate (e.g., if weare correct in concluding that how well the individual does on the test tells us how well he/shewill perform on the job). Some tests, such as graphology and polygraphs, have little evidence of validity for employment decision-making purposes and thus are not discussed here. All of thetests discussed here have been demonstrated to relate to one or more critical employmentoutcomes.

Before deciding that a particular type of test is what you want, however, you should firstestablish a) does testing make sense and b) what it is you want to assess. The determination of what it is you want to measure with the test should precede the determination of how you aregoing to measure it.

1. Assessment Centers

Assessment centers can be designed to measure many different types of job related skills andabilities, but are often used to assess interpersonal skills, communication skills, planning andorganizing, and analytical skills. The assessment center typically consists of exercises thatreflect job content and types of problems faced on the job. For example, individuals might beevaluated on their ability to make a sales presentation or on their behavior in a simulated

meeting. In addition to these simulation exercises, assessment centers often include other kindsof tests such as cognitive ability tests, personality inventories, and job knowledge tests. Theassessment center typically uses multiple raters who are trained to observe, classify, and evaluate

behaviors. At the end of the assessment center, the raters meet to make overall judgments about peoples performance in the center.

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3. Cognitive Ability Tests

Cognitive ability tests typically use questions or problems to measure ability to learn quickly,logic, reasoning, reading comprehension and other enduring mental abilities that are fundamentalto success in many different jobs. Cognitive ability tests assess a persons aptitude or potential to

solve job-related problems by providing information about their mental abilities such as verbal or mathematical reasoning and perceptual abilities like speed in recognizing letters of the alphabet.

4 . Integrity Tests

Integrity tests assess attitudes and experiences related to a persons honesty,dependability, trustworthiness, reliability, and pro-social behavior. These tests typically

ask direct questions about previous experiences related to ethics and integrity OR ask questions about preferences and interests from which inferences are drawn about future behavior in these areas. Integrity tests are used to identify individuals who are likely toengage in inappropriate, dishonest, and antisocial behavior at work.

Interviews vary greatly in their content, but are often used to assess such things as interpersonalskills, communication skills, and teamwork skills, and can be used to assess job knowledge.Well-designed interviews typically use a standard set of questions to evaluate knowledge, skills,abilities, and other qualities required for the job. The interview is the most commonly used typeof test. Employers generally conduct interviews either face-to-face or by phone.

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6. Job Knowledge Tests

Job knowledge tests typically use multiple choice questions or essay type items to evaluatetechnical or professional expertise and knowledge required for specific jobs or professions.

Examples of job knowledge tests include tests of basic accounting principles, A+/Net+ programming, and blueprint reading.

7. Personality Tests

Some commonly measured personality traits in work settings are extraversion,conscientiousness, openness to new experiences, optimism, agreeableness, serviceorientation, stress tolerance, emotional stability, and initiative or proactivity. Personality

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tests typically measure traits related to behavior at work, interpersonal interactions, andsatisfaction with different aspects of work. Personality tests are often used to assesswhether individuals have the potential to be successful in jobs where performancerequires a great deal of interpersonal interaction or work in team settings.

8. Physical Ability Tests

Physical ability tests typically use tasks or exercises that require physical ability to perform. These tests typically measure physical attributes and capabilities, such asstrength, balance, and speed.

9. Work Samples and Simulations

These tests typically focus on measuring specific job skills or job knowledge, but can alsoassess more general skills such as organizational skill, analytic skills, and interpersonalskills.

Work samples and simulations typically require performance of tasks that are the same or similar to those performed on the job to assess their level of skill or competence. For example, work samples might involve installing a telephone line, creating a document inWord, or tuning an engine.

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CONCLUDING REMARKS FOR SELECTION TESTS

.

They are highly sophisticated instruments which can make selection a scientific and sound process.

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Industrial Psychology Divisions

Industrial psychology can be divided into six different fields. Some psychologists practice justone of these Industrial fields, or they will branch out and do many. No matter what, though, each

field is distinct and equally important to the entire science.

Selection and Placement

One of the most important jobs of an Industrial psychologist is to help a business or organizationselect the most qualified/well-suited people for the various positions that are offered by thecompany. This process takes time and requires that the psychologist predict the future needs of the organization, establish objectives, and implement programs that ensure that the best people

possible will be available when needed. To find people who will enjoy their job, mesh well withthe company, and be productive, Industrial psychologists use learning and motivational theoriesto test or analyze a person's personality and knowledge. Standardized cognitive tests and other

psychological tests are administered to the prospective employee. By using these systems, or selection procedures, psychologists help companies choose employees that will jive well.

Industrial psychologists focused in selection and placement will also help decide where anemployee should be placed within a company based on their personality or knowledge. They canalso play a part in whether or not employees are promoted.

Training and Development

For an employee to be successful and a valuable asset to the company, they need to know whatthey are doing. Industrial psychologists in this field focus on identifying weaknesses inemployees and seeing that those employees gain the skills they need to improve job performance.Training includes technical skills enhancement and managerial development programs, amongother things. It is also their responsibility to decide which training and development programswork best.

Performance Appraisal

Industrial psychologists in this field develop criteria and standards for judging employee's job

performance. They decide whether or not the job performance of an employee is contributing tothe organization, and by how much. They can also measure the performance of entire teams or units within the organization, as well as the organization as a whole. Performance appraisals areimportant because they help organizations determine how much to pay their employees.

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Organization Development

These psychologists analyze organization structure to determine the productivity and happinessof its employees and customers. They determine how the organization could change or grow inorder to thrive, and then help to make those changes happen.

Quality of Worklife

This field involves figuring out the factors that help contribute to a productive organization. Thiscan involve changing aspects of the physical work environment or changing the requirements of a job so that employees are happier. If employees are happier than productivity increases and theentire organization benefits.

Ergonomics/Human Factors

Industrial psychologists are included in the field of ergonomics (also called human factors),which is interested in the design of tools, equipment, and machines that are intuitivelycompatible with humans. Designs in ergonomics relies on knowledge from such fields as

medicine and physiology. Industrial psychologists focused on ergonomics will often work withengineers and designers to see that certain features are implemented into the final design of a

product.

Employee Incentive (Motivation) Theories in Industrial Psychology

A key concept in the field of industrial psychology is the idea that employees work mainly for rewards or incentives. People are usually motivated to do their job because of the compensationor benefits they receive. By designing pay systems that include legal compliance, labor costcontrol, perceived fairness toward employees, and the enhancement of employee performance,organizations are able to reach high levels of productivity and customer satisfaction. The waythese systems are designed is often times derived from theories of motivation.

Equity Theory

People like to believe that they are being treated fairly by their employer. An employee willtherefore compare wages and job requirements with his or her coworker's to see if they are beingadequately compensated for their work. If things seem unbalanced and someone makes moremoney for doing less work then equity is not achieved and the employee feels as though they're

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being cheated. Tensions will arise in such situations and the productivity level of the employeewill most likely decline.

Expectancy (VIE) Theory

Expectancy theory relies on the idea that one's motivation to put effort into their job is directlyrelated to the expectation of reward or outcome for doing that job. If a person believes they arecapable of doing a job and that completion of the job will bring a desirable award then they will

be more likely to put full effort into that job.

Goal - Setting Theory

This theory suggests that specific goals, when accompanied by feedback on a person's performance, will cause that person to perform better. The goal should be clear, challenging, andachievable. Such goals will help motivate the employee by focusing their attention, increasingtheir effort, and strengthening their persistence toward task accomplishment.

Agency Theory

Agency theory connects a principal with an agent. The principal is the person who tells otherswhat work to do and the agent is the person who carries out the work. The theory states thatefficiency in the workplace is correlated with the relationship health of principal and agent

Benefits of Industrial Psychology

Its known that mental and emotional well-being can contribute to productivity and make a person a better worker, and industrial psychologists have careers because of this widely accepted principle. Employers hire industrial psychologists to perform the job of any other psychologist

that is, to ease mental distress and promote well-being but in a workplace setting. Industrial psychologists work at many goals, including but not limited to:

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Improving morale and job performance Providing a job analysis of individual employees Improving group performance and social dynamic analysis Assessing job satisfaction on both an individual and group basis

Many companies have found industrial psychologists to be a worthwhile tool that greatly reducestheir costs while improving the well being of their employees. Companies that decide goodindustrial psychologists often post better profits, and these companies often attribute their successes to the presence of a psychologist or a psychology team.

CONCLUSIONS & RECOMMENDATIONS ON INDUSTRIALPSYCHOLOGY IN INDIA

Motivational tactics are imperative to the success of industry, thus the industrial psychologistalso may devise financial or other incentives.

BIBLIOGRAPGY

Books:

Industrial / Organizational Psychology

- By Michael G. Aamodt

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Magazines: