PSYCHOLOGY OF INDUSTRY

Industrial psychology applies psychology to organizations and workplaces. These organizations and workplaces include for-profit businesses, non-profits, government agencies, and colleges and universities. Industrial-organizational psychologists contribute to an organization's success by improving the performance and well-being of its people. An I-O psychologist researches and identifies how behaviors and attitudes can be improved through hiring practices, training programs, and feedback systems.

In 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 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 job analysis, involves an examination of the knowledge, skills, abilities, and other characteristics (KSAOs) required to successfully perform the work. These two approaches are not mutually exclusive. Various adaptations of job-analytic methods include competency modeling, which examines large groups of duties and tasks related to a common goal or process, and practice analysis, which examines the way work is performed in an occupation across jobs.

Performance  appraisal or performance evaluation is the process of measuring an individual's work behaviors and outcomes against the expectations of the job. Performance appraisal is frequently used in promotion and compensation decisions, to help design and validate personnel selection procedures, and for performance  management. Performance management is the process of 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 I-O 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 I-O psychologist would be responsible for training organizational personnel how to use the performance appraisal instrument, including ways to minimize bias when using the rating scale, and how to provide effective performance feedback. Additionally, the I-O psychologist may consult with the organization on ways to use the performance appraisal information for broader performance management initiatives.


Job peformance represents behaviors employees engage in while at work which contribute to organizational goals. These behaviors are formally evaluated by an organization as part of an employee’s responsibilities. In order to understand and ultimately predict job performance, it is important to be precise when defining the term. Job performance is about behaviors that are within the control of the employee and not about results (effectiveness), the costs involved in achieving results (productivity), the results that can be achieved in a period of time (efficiency), or the value an organization places on a given level of performance, effectiveness, productivity, or efficiency (utility).

To model job performance, researchers have attempted to define a set of dimensions that are common to all jobs. Using a common set of dimensions provides a consistent basis for assessing performance and enables the comparison of performance across jobs. While there is disagreement about the exact dimensions of job performance, there is agreement on two major categories of job performance: in-role (technical aspects of a job) and extra-role (non-technical abilities such as communication skills and being a good team member).

To assess job performance, reliable and valid measures must be established. The most commonly used measures are ratings of employee performance on specific tasks and on overall job performance. While there are many sources of error with performance ratings, error can be reduced through rater training and through the use of behaviorally anchored ratings scales. Such scales can be used to clearly define the behaviors that constitute poor, average, and superior performance. Additional factors that complicate the measurement of job performance include the instability of job performance over time and the restriction of variation in individual performance by organizational forces.