History of Industrial Psychology

EMERGENCE OF INDUSTRIAL PSYCHOLOGY INTRODUCTION Industrial psychology is that branch of applied psychology that is concerned with efficient management of an industrial labor force and especially with problems encountered by workers in a mechanized environment. In the past, workers were treat...

EMERGENCE OF INDUSTRIAL PSYCHOLOGY INTRODUCTION Industrial psychology is that branch of applied psychology that is concerned with efficient management of an industrial labor force and especially with problems encountered by workers in a mechanized environment. In the past, workers were treated like cogs in a machine—just gears in the grand scheme of production. But times have changed, and employers have finally realized that happy workers aren't just productive—they're unstoppable! Sure, a paycheck is nice, but it's not the only fuel in the tank. Imagine the magic when you combine decent working conditions, fair workloads, competitive pay, and leaders who actually know what they're doing. It's like giving your team a double shot of espresso. Get all that right, and your company will be cruising to success faster than a coffee-fueled Monday morning. CONCEPT AND MEANING Industrial psychology is concerned with people's work-related values, attitudes and behaviors, and how these are influenced by the conditions in which they work. The term 'Industrial Psychology' is a combination of two words 'Industrial' and 'Psychology'. - Industrial is that part of social life whose function is to provide civilized man with the material goals that his condition of life demands. Psychology is the science of behavior in relation to the environment. Thus industrial psychology is the systematic study of the behavior of the people at work. - It studies how the social, industrial, economic, political and other factors affect the behavior of the people at work. According to C.S. Myres, ‘The aim of industrial psychology is primarily not to obtain greater production or output but to give the worker greater ease at his work’. According to Thomas W. Harrell, ‘Industrial psychology may be defined as the study of people as individuals and in groups and of the relationship between individual and group’. According to Blum and Naylor is simply the application or extension of psychology facts and principles to the problem concerning human beings operating within the context of business and industry’. According to Tiffin and McCormick, 'Industrial psychology is concerned with the study of human behavior in those aspects of life that are related to production, distribution and use of goods and services of our civilization’. Guion ‘The scientific study of the relationship between man and the world at work: The study of adjustment people make to the place they go, the people they meet and the things they do in the process of making a living’ SIMPLY: Industrial psychology plays an important role in establishing and maintaining a conducive work environment and optimizing human and organizational efficiency. Key benefits include better workplace cooperation, higher levels of job satisfaction, and increased productivity. Known Before as : “economic psychology,” “business psychology,” and “employment psychology” (Koppes & Pickren, ). 1.3 CHARACTERISTICS OF INDUSTRIAL PSYCHOLOGY A.Systematic study—Industrial psychology is the systematic study of human behavior concerned with collecting the information regarding human behavior at work. What are the different factors which affect the work of an individual either they are personal or related to working conditions. B.Research—Industrial psychology is not concerned with administration;they are the part of the research. - Whatever information gathered from the work should be implemented and the personnel administration is the application of such research. C.Functional/Applied—It is concerned with the application of information about human behavior to the various problems of industrial human life. D.Human engineering—It studies the varied methods of performing manual operations for the better utilization and the least waste of effort through human engineering. 1.4 SCOPES OF INDUSTRIAL PSYCHOLOGY A.Scientific selection of workers’—Industrial psychology offers a whole arrangement of tests such as systematic depth interviews and psychological tests of intelligence, aptitude, skills, abilities and interest the personnel characteristic etc.  - By these tests candidates are measured and properly selected and placed on the job. B.Proper division of work—One of the scopes of industrial psychology is the work should be properly divided according to the abilities, skills and aptitude of the workers so they may feel comfortable and satisfied. - It may also lead to higher production. C. Minimizing the wastage of human efforts—Industrial psychology tries to minimize the wastage of human power. It studies psychological factors causing fatigue or accident and give feasible suggestions to prevent them. - The techniques of motivation and morale are used for this purpose D.Promoting labor welfare—It promotes the welfare of the labor by introducing an adequate working environment through which job satisfaction, work efficiency increases and also states the provisions of higher incentives. E.Enhancement of human relations—Human relations are the relation among individuals in an organization and the group behavior that emerges from their relations. - Most of the problems that arise in the industries are connected to human relations. - If workers' feel at ease with the surroundings then automatically they get motivated and productivity will be higher. - Industrial psychology has made significant contributions in framing the techniques of leadership, worker participation, communication etc. F. Developing industrial relations—Industrial psychology studies the attitude of the employer and employees. Individuals differ from each other in their thoughts, thinking, behavior and other parameters. - Therefore, different measures may be adopted in solving the problem relating to each individual like transfers, promotions, grievances etc. - This helps in developing industrial relationships among workers' and management. G.Increase production—It helps in attaining the major objective of the organization to get the best output from the existing resources. - The production is automatically increased if proper selection is made, the work will be properly distributed, accident prevention and safety measures suggested. - This will improve and promote individual as well as industrial relations. Like it or not, you and I will spend a big part of our waking  lives working. Not only does work take up a large chunk of the day, it also often governs where we live, how we live, and the kinds of people with whom we associate. And it only makes sense, then, that we should want to learn more about the world of work and our own work behavior. Don’t you agree? Here’s another thought , have you ever wondered what motivates people to work, what makes someone a good manager or leader, or why some people are competent, loyal workers, whereas others are untrustworthy and unreliable? Have you ever even considered that particular job might be redesigned to make it more efficient or the processes by which large organizations make decisions? Have you noticed that work can sometimes be very engaging and a great source of satisfaction, but it can also be terribly stressful at times? THE ROOTS AND EARLY HISTORY OF INDUSTRIAL PSYCHOLOGY To understand the impact that Industrial psychology has had on the world of work, it is important to know a little bit about the history of the field. We will examine historical periods in Industrial psychology’s past and focus on a significant event or important phenomenon in each time period. We will later look at the present and future of Industrial psychology. THE BEGINNINGS Around the turn of the 20th century, when the field of psychology was still in its infancy, a few early psychologists dabbled in the study of work behavior. 1900’s Walter Dill Scott - 1903 Another experimental psychologist who pioneered the field of industrial psychology published Theory of Advertising ( Sales persons and Psychology of Advertising ) 1911- Increasing Human Efficiency in Business - Scott went on to become the first professor in this new field and started a consulting company to practice what was being learned from research. Hugo Munsterberg was an experimental psychologist who became interested in the design of work and personnel selection for jobs such as streetcar operator (Munsterberg, 1913). 1913- Psychology and Industrial Efficiency Frederick W. Taylor and The Scientific Management Frederick Winslow Taylor was one of the earliest theorists in the field of management. He initiated the Scientific Management movement and, along with his associates, was among the first to study the work process scientifically. They analyzed how work was performed and examined its impact on worker productivity. Taylor's philosophy emphasized that optimizing the work process was more efficient than merely pushing people to work as hard as possible. Taylor believed that scientific principles could be applied to the study of work behavior to help increase worker efficiency and productivity. ➔ He felt that there was “one best method” for performing a particular job. ➔ By breaking the job down scientifically into movements and recording the time needed to perform each movement ➔ He believed that he could develop the fastest, most efficient way of performing any task. ➔ He incorporated into his system of scientific management other considerations, such as selection of workers based on abilities and the use of proper tools (Taylor, 1911). In 1909, Taylor published "The Principles of Scientific Management," proposing that optimizing and simplifying jobs would boost productivity. He also emphasized the need for cooperation between workers and managers, which contrasted sharply with the existing practices where factory managers had minimal contact with workers, leaving them to produce products independently. During this time there was no standardization, and workers were primarily motivated by the desire to keep their jobs, offering little incentive for working efficiently or quickly. Taylor believed that monetary motivation was key for all workers, advocating the concept of "a fair day's pay for a fair day's work." This meant that less productive workers shouldn't be paid as much as their more productive counterparts. With his background in mechanical engineering, Taylor was deeply interested in efficiency. While progressing in his career at a U.S. steel manufacturer, he conducted workplace experiments to find optimal performance levels. One such experiment involved refining shovel design to allow workers to shovel continuously for several hours. He also studied bricklaying motions and developed a more efficient method. Applying the scientific method, Taylor sought to identify the best way to perform any workplace task by calculating the time required for each task element.  He then concluded that hiring the right people for the job was crucial for maximizing workplace efficiency. From his experiments, Taylor formulated four principles of scientific management, collectively known as "Taylorism." SCIENTIFIC MANAGEMENT began by Frederick Taylor, a method of using scientific principles to improve the efficiency and productivity of jobs. Four Principles of Scientific Management Taylor's four principles are as follows: 1. Replace working by "rule of thumb," or simple habit and common sense, and instead use the scientific method to study work and determine the most efficient way to perform specific tasks. 2. Rather than simply assign workers to just any job, match workers to their jobs based on capability and motivation, and train them to work at maximum efficiency. 3. Monitor worker performance, and provide instructions and supervision to ensure that they're using the most efficient ways of working. 4. Allocate the work between managers and workers so that the managers spend their time planning and training, allowing the workers to perform their tasks efficiently. * Though refined over the years, these same ideas are still considered valuable today The principles of Taylor's Scientific Management Theory became widely adopted, and the collaboration between workers and managers it promoted eventually evolved into the teamwork practices we have today. Although pure Taylorism is not commonly used now, scientific management made several important contributions to management practices. It introduced systematic methods for selecting and training employees, provided a framework for studying workplace efficiency, and encouraged systematic organizational design. Online Source: https://www.mindtools.com/anx8725/frederick-taylor-and-scientific-management Engineer Lillian Gilbreth added efficiency and humanity to the  workplace Coffee breaks, ergonomics, and other business mainstays exist due to Lillian Gilbreth, a pioneer who shaped the field of workplace efficiency. Let’s show our gratitude for these innovations. The husband and wife team prioritized regulation and consistency in the workplace. - They placed efficiency above all else, favoring a streamlined approach over a system with many moving parts. The couple believed that there is a single best way to accomplish any task, and that this process should be standardized throughout the manufacturing process. Their goal was to eliminate unnecessary steps and achieve the most efficient outcomes. Frank and Lillian Gilbreth - husband-and-wife team - Improve productivity and reduce fatigue by studying motions used by workers and implementing the principles of scientific management and revolutionized several physical labor jobs by making the accepted work procedures more efficient and productive (Gilbreth, 1916). ➔ Motion study by the Gilbreths focused on improving work methods by analyzing movements ➔ They expanded on scientific management, addressing the major flaw in Taylorism, which critics said ignored the human element and focused solely on profits. ➔ They considered factors like health, skills, habits, temperament, and nutrition to increase efficiency and examined worker fatigue and suggested solutions such as rest-recovery periods, chairs, and workbenches. Their work marked one of the first times process improvement and management were treated as a scientific problem. Frank, a bricklayer, noticed that each worker had a unique method for laying bricks and by studying these individual techniques, he identified the most efficient way to complete the task. - He believed that increased efficiency would benefit both employers and workers—employers would see higher  productivity, while workers would experience less stress and fatigue. His insights led to a new bricklaying method that more than doubled daily output. Another of Frank's studies contributed to the creation of the surgical assistant role in modern operating rooms. Instead of the surgeon having to locate each needed instrument, a nurse would stand by and hand the appropriate tool to the surgeon. therbligs,” a term derived by reversing the sounds in their last name, to describe the fundamental motions required for workplace tasks. Frank and Lillian introduced the concept of “therbligs,” a term derived by reversing the sounds in their last name, to describe the fundamental motions required for workplace tasks. - These 18 units were used to analyze how tasks were carried out— such as : ➔ searching for an object with the eyes or hands ➔ grasping an object with the hands, ➔ assembling and disassembling parts, and so on. They would then determine which motions were essential and eliminate any that were unnecessary to enhance efficiency. Interesting Fact: The book "Cheaper by the Dozen" was written by Frank and Lillian's children Frank Jr. and Ernestine. There were 12  children in the family, and the book (and subsequent movies) highlighted the efficiencies that were introduced into their household as a result of their parents' methods. They also invented a microchronometer, a clock capable of recording time to the 1/2000th of a second, to study work motion. By placing this clock within the field of a picture, they could break movements down into extremely small time units. The Gilbreths' contributions to workplace efficiency extended beyond increasing output. - They were also concerned with reducing worker fatigue. From an industrial psychology perspective, they developed ideas on optimal ways to train and develop workers. - Techniques such as job rotation and identifying work that best matched a worker's natural skills and abilities emerged from the Gilbreths' extensive experiments. Online Source : MindTools | Home. (n.d.-c). https://www.mindtools.com/afg3mtv/frank-and-lillian-gilbreth Peek, S. (2023, February 21). The Management Theory of Frank and Lillian Gilbreth. business.com. ttps://www.business.com/articles/management-theory-of-frank-and-lillian-gilbreth/ The Gilbreths introduced a technical language to analyze labor processes within a scientific framework. They utilized scientific principles to develop a method for studying work motions, which included filming workers' activities while simultaneously recording the time. The films had two primary functions. they provided a visual record of how work was performed, highlighting areas for improvement. they were used to train workers in the most efficient ways to complete their tasks. This approach enabled the Gilbreths to refine and standardize best practices by building on the most effective aspects of these workflows.  “The goal of motion studies is to reduce all types of waste. “ Online Source : Gilbreth Motion Studies. (2012, July 11). Trade Practices. https://tradepractices.wordpress.com/2012/06/18/gilbreth-motion-studies/ https://www.youtube.com/watch?v=dVKTX_Sbwzw&t=27s https://www.youtube.com/watch?v=cJMvzH0uvPA&t=133s TIME AND MOTION TOGETHER: This approach has been successfully implemented in various fields, including factories, hospitals, department stores, housework, banks, cafeterias, libraries, and music. Example : Factories use it to minimize wasted time and enhance task completion Banks leverage it to help team members meet sales targets. However, the objective of a time and motion study extends beyond mere efficiency. These studies establish a baseline for assessing future changes in procedures, equipment, or personnel. They aim to comprehend the skills required for tasks and offer suitable training. Additionally, a goal might be to reduce discomfort during surgical procedures, even if it results in less efficiency.. Other Prominent Psychologist During its early years, industrial psychology thrived beyond the United States. Notable psychologists who applied their expertise to industry-related problems included Jules Suter in Switzerland, Bernard Muscio in Australia, Franziska Baumgarten-Tramer, Walter Moede, William Stern, Otto Lipmann, and Emil Kraepelin in Germany, Jean Marie Lahy in France, Edward Webster in Canada, and Cyril Burt, Charles Myers, and Sir Frederick Bartlett in Great Britain (Vinchur & Koppes, 2007; Warr, 2007). WORLD WAR I AND THE 1920’s At the outbreak of World War I, Robert Yerkes, who was president of the American Psychological Association, and a group of psychologists worked with the U.S. Army to create intelligence tests for the placement of Army recruits. The ARMY ALPHA AND BETA TESTS (the Alpha test was used for those who could read; the Beta test for non-literate recruits) represented the first mass testing efforts and set the stage for future testing efforts. Even today, employee testing and selection is an important area of Industrial Psychology A. Following World War I, psychologists began to be involved in the screening and placement of personnel in industry. - Throughout the 1920s, while the U.S. was experiencing tremendous industrial growth, industrial psychology began to take hold: - The first doctoral degree in industrial psychology was awarded in 1921, and psychologists worked directly with industries as consultants and researchers (Katzell & Austin, 1992). B. It was also in the 1920s that the first psychological consulting organizations began. Walter Dill Scott opened a short-lived personnel consulting firm in 1919, and the Psychological Corporation was founded by James McKeen Cattell in 1921 (Vinchur & Koppes, 2011). ➔ Today, consulting organizations offer their services to business and industry. ➔ In fact, the difficult economic times in the early part of the 21st century led to organizational downsizing, and many larger organizations that employed I/O psychologists in house eliminated those positions and now outsource their work to consulting firms. ➔ As a result, consulting firms are thriving and are a major place of employment for I/O psychologists. THE GREAT DEPRESSION YEARS AND WORLD WAR II As the U.S. economy slumped during the 1930s, there was less opportunity for industrial psychologists to work with industries and businesses. - Although industrial psychology continued to grow at a slower pace, an important development came out of this period from a group of Harvard psychologists who were conducting a series of experiments Hawthorne plant of the Western Electric Company in the Chicago area Hawthorne studies were published, psychologists became more involved in the quality of the work environment, as well as the attitudes of employees. The Hawthorne studies, conducted at the, demonstrated that employee behavior was complex and that the interpersonal interactions between managers and employees played a tremendous role in employee behavior. The Hawthorne studies were initially designed to investigate such issues as the effects of lighting levels, work schedules, wages, temperature, and rest breaks on employee performance. Much to the surprise of the researchers, the actual work conditions did not affect productivity in the predicted manner. That is, there were times when productivity improved after work conditions were made worse, and times when productivity decreased after work conditions were made better. After interviewing employees and studying the matter further, the researchers realized that employees changed their behavior and became more productive because they were being studied and received attention from their managers, a condition that is now commonly referred to as the Hawthorne effect. *Perhaps the major contribution of the Hawthorne studies was that it inspired psychologists to increase their focus on human relations in the workplace and to explore the effects of employee attitudes (Olson, Verley, Santos, & Salas,2004) Researcher Elton Mayo and his colleagues wanted to study the effects of the physical work environment on worker productivity. ➔ In the most famous of the experiments, Mayo explored the effects of lighting on worker productivity. ➔ Focusing on a group of women who were assembling electrical relay-switching devices, he systematically varied the level of illumination in the room. ➔ He expected to be able to determine the optimal level of lighting for performing the task. However, the results were surprising and dramatically changed psychologists’ views of the worker from then on. ➔ No matter what level the lighting was set at, productivity increased! ➔ When lighting was increased, worker output went up. ➔ Further increase to very bright illumination resulted in further improvement. ➔ Turning the lights down (even to such low levels that it appeared that the women were working in moonlight) also led to increases in productivity. ➔ There was a steady increase in workers’ output following any change in lighting. In other studies, Mayo systematically varied the length and timing of work breaks. - Longer breaks, shorter breaks, and more or fewer breaks all resulted in a steady increase in worker output (Mayo, 1933). Mayo knew that every change in the work environment could not possibly be causing the steady rises in worker productivity. Something else had to be affecting output. Upon closer examination, he concluded that the workers were being affected not by the changes in the physical environment but by the simple fact that they knew they were being observed. According to Mayo, these workers believed that the studies were being conducted in an effort to improve work procedures, and their positive expectations, coupled with their knowledge of the observations, seemed to Mayo to determine their consistent increases in productivity, a phenomenon that has been labeled the Hawthorne effect. Although in the first example discovered by Mayo the “Hawthorne effect” was positive, resulting in increased productivity, this was not always the case. - In another of his studies, work group productivity fell following the introduction of changes in the work environment. Because these workers believed that the results of the studies would lead to more demanding production quotas, they restricted output whenever they were being observed, thus producing a “negative” Hawthorne effect (Roethlisberger & Dickson, 1939). Hawthorne Effect changes in behavior occurring as a function of participants’ knowledge that they are being observed and their expectations concerning their role as research participants Although researchers have noted a number of serious flaws in the methods Mayo used to conduct the Hawthorne experiments, the general conclusions reached by Mayo and his colleagues resulted in the development of the human relations movement, which recognized the importance of social factors and something called “worker morale” in influencing work productivity. In fact, this movement stated that a harmonious work environment, with good interpersonal relationships among coworkers, should be a productive work environment, particularly when the work itself is boring or monotonous. According to Mayo,workers in repetitive or low-level positions—jobs that do not themselves provide satisfaction—will turn to the social environment of the work setting for motivation. THE EXPERIMENT: In 1927, researchers were trying to determine the optimal amount of lighting, temperature, and humidity for assembling electronic components at Western Electric's Hawthorne plant. The results showed that lighting had no consistent effect on production. Researchers were frustrated to discover that increasing light increased output, but reducing light also increased output. The common factor, it seemed, was that something in the work environment was changed, and that positive effects were then observed. After thoroughly examining the results, Elton Mayo and his fellow researchers determined that workers weren't responding to the change in lighting conditions, but instead were reacting to the fact that they were being observed by the experimenters. This phenomenon became known as the Hawthorne effect; the workers' awareness that researchers were measuring their productivity was sufficient to increase productivity. HUMAN RELATIONS MOVEMENT a movement based on the studies of Elton Mayo that emphasizes the importance of social factors in influencing work performance WORLD WAR II First, the tremendous need for state-of-the-art machinery, and the increasing complexity of that machinery, was an important impetus for human factors psychology and for training soldiers to operate the equipment. Second, to improve selection and placement of military personnel, continuing the work that psychologists had begun during World War I. The Army General Classification Test, a group-administered, pencil-and-paper test, was developed to separate recruits into categories based on their abilities to learn military duties and responsibilities. - Screening tests were also created to select candidates for officer training. - In addition, psychologists helped the U.S. Office of Strategic Services (OSS)—the forerunner of today’s CIA—develop intensive assessment strategies for selecting candidates for dangerous espionage positions. - Some of these techniques included “hands-on” situational tests in which candidates had to perform some tasks under difficult and near-impossible conditions. *The aim was to assess their ability to deal with stressful and frustrating circumstances, which is very important for soldiers involved in military espionage. THE POSTWAR YEARS AND THE MODERN ERA It was after World War II that industrial psychology truly began to blossom and specialty areas began to emerge. A distinct focus on personnel issues, such as testing, selection, and the evaluation of employees, was helped in part by the publication of a new journal, Personnel Psychology, in 1948. During the Cold War years of the 1950s and 1960s, the growth of the defense industry further spurred the development of a specialty area called engineering psychology (today referred to as human factors psychology, or ergonomics;this has become a separate discipline. - Engineering psychologists were called in to help design control systems that were both sensible and easy to operate. - In addition, the contributions of sociologists and social psychologists who began studying and performing extensive research in work organizations helped create a subspecialty area of organizational psychology. The 1960s through the early 1990s was a time when research and practice in I/O psychology flourished topics such as motivation and goal setting, job attitudes, organizational stress, group processes, organizational power and politics, and organizational development. 1960’s CIVIL RIGHTS LEGISLATION. - One portion of the sweeping Civil Rights Act of 1964, Title VII, banned discrimination in employment practices. - Designed to protect underrepresented groups such as ethnic minorities from being unfairly discriminated against in work-related decisions, this legislation forced organizations to take a closer look at the ways people were selected for jobs - Particular attention was given to the fairness of employment selection tests and personnel decisions such as promotions, compensation, and firings. - Subsequent civil rights legislation protected other groups from discrimination, including older people (Age Discrimination in Employment Act, 1967 and 1978) and people with disabilities (Americans with Disabilities Act, 1990). * As a result, to establish and implement fair employment standards. TODAY AND IN THE FUTURE It is one of the fastest-growing areas of psychology. forefront of those professionals who are satisfying the huge demand for information leading to greater understanding of the worker, the work environment, and work behavior. They are involved in nearly every aspect of business and industry, and as we will see, the range of topics they research and the varieties of tasks they perform are extensive. First Trend: The Changing Nature of Work Jobs and organizations are rapidly changing and evolving. Organizations are becoming flatter, with fewer levels in the hierarchy, and they are being broken up into smaller subunits with greater emphasis on work teams. ➔ With telecommuting, advanced communication systems, and sophisticated networking, people can work in almost any location, with team members who are quite remote. ➔ helping workers adapt to technological and structural changes (Craiger, 1997; Huber, 2011). ➔ assist organizations in redesigning jobs for greater efficiency; in creating new and more flexible organizational structures and work teams; and in helping workers become more engaged, motivated, and better able to deal with stresses that result from all the changes. ➔ Many jobs are becoming increasingly complex due to technological advancements, and they are more demanding, requiring workers to process more and more information and to make more decisions (Ones & Viswesvaran, 1998a). In addition, organizations worldwide are reducing their workforces. ORGANIZATIONAL DOWNSIZING is a strategy of reducing an organization’s workforce to improve organizational efficiency,productivity, and/or competitiveness (Mentzer, 2005; Molinsky & Margolis, 2006). Organizations are downsizing because of technological advancements such as robotic and computer-assisted manufacturing that eliminate workers’ jobs, because of increased efficiency in jobs and the elimination of overlapping worker functions, and because of a general reduction in middle-level managers (De Meuse, Marks, & Dai, 2011; Murphy, 1998). In addition, economic downturns, such as the economic meltdown in 2007–2008, tend to increase the number of laid-off workers. Moreover, catastrophic events can affect certain industries, such as the September 11, 2001, terrorist hijackings and airliner crashes that caused the immediate downsizing of nearly all U.S. commercial airlines. Downsizing requires organizations to “do more with less” to survive—including the fact that fewer workers are doing more work (Cascio & Wynn, 2004; DeWitt, 1993). - This trend toward “leaner”workforces has negative consequences for workers, who are required to do more, and can create a sense of job insecurity. ORGANIZATIONAL DOWNSIZING a strategy of reducing an organization’s workforce to improve organizational efficiency and/or competitiveness. Research evidence shows that some of the changes in the nature of work, such as telecommuting, increased mobility of U.S. workers, and organizational downsizing, have led to decreased levels of worker loyalty and commitment to organizations (e.g., Allen, Freeman, Russell, Reizenstein, & Rentz, 2001). - Increasing worker engagement and reducing employee turnover OUTSOURCING OF WORK contracting with an external organization to accomplish tasks that were previously done, or could be done, within the organization (Davis-Blake & Broschak, 2009; Gerbi et al., 2015). Outsourcing is used to increase output and can reduce overhead costs associated with the personnel needed to do the tasks in house. - involved in helping to understand the effects that the increased use of outsourcing is having on variables such as the way jobs are conducted, group processes,structure and design of organizations, employee commitment, motivation, and other factors. - Outsourcing contracting with an external organization to accomplish work tasks SECOND TREND: EXPANDING FOCUS ON HUMAN RESOURCES The increasing concern with the management and maintenance of an organization’s human resources that began with Mayo and the human relations movement continues to be important. - Organizations have become more and more concerned about and responsive to the needs of workers. - organizations are realizing that skilled and creative workers are the keys to success. The term “TALENT MANAGEMENT” is a frequent buzzword heard in organizations—important because it reflects the emphasis on the value of the worker and the need to select, care for, and develop workers’ talents (Sparrow & Makram, 2015). This will become even more important in the future (Cascio & Aguinis, 2008; Losey, Ulrich, & Meisinger, 2005). - The technological age of the past few decades has seen a tight labor market for truly skilled workers, particularly in high-tech industries. * This means that organizations will have to compete ferociously to attract and keep the best workers (Cascio, 2014; Goldsmith & Carter, 2010). - Greater emphasis will need to be given to such areas as employee recruitment and selection procedures. *Companies will also have to offer more enticing benefit programs to attract and retain the best workers—including “family-friendly” policies such as employer sponsored child-care and extended family leaves (Grandey, 2001; Halpern & Murphy, 2005) AGING WORKFORCE In addition,continuing advancements in work technology and the ever-increasing body of knowledge needed by workers to perform their jobs mean that older workers will be retrained often to remain contributing members of the work-force. - In addition, the U.S. and much of Europe are facing an increasingly aging workforce and relatively fewer young people entering the workforce (Hedge, Borman, & Lammlein, 2006). - All of this suggests the need for greater focus on personnel issues, such as recruiting, screening, and testing potential workers, and on employee training, development, and compensation programs, all of which are specialties of I/O psychologists. THIRD TREND: INCREASING DIVERSITY AND GLOBALIZATION OF THE WORKFORCE Immigration, the increase in global organizations, and the increasing number of women entering the organizational workforce has led to greater and greater workplace diversity. This diversity will only increase in the future. - Women and ethnic minorities—who have been targets of employment discrimination—now make up the majority of the U.S. workforce, and there are similar trends worldwide. - Moreover, the diversity of cultures in workplaces will also increase as workers become more internationally mobile. For example, in one Washington, DC hotel, workers speak 36 languages, are 65% foreign born, and serve an even more diverse clientele (Offermann & Phan, 2002). - Workforces will continue to consist of members from a greater number and variety of cultures. In addition, it has been suggested that there are many different layers or levels examining cultures and cultural differences (Erez & Gati, 2004). Although increased diversity presents challenges to organizations and managers, this increased workforce diversity also represents a tremendous strength and opportunity. ADVANTAGES :  ➔ An opportunity for different viewpoints and perspectives that will lead to organizational creativity and innovation (Jackson & Joshi, 2011). ➔ help an organization in understanding and reaching new markets for products or services. ➔ An organization’s commitment to diversity can also help in recruiting and retaining the best workers. For instance, cutting-edge companies that value workforce diversity not only attract the most qualified workers, but also the valuing of diversity permeates the entire organizational culture, leading to reduced organizational conflict, greater cooperation among workers,and increased flexibility and innovation (Cascio, 2009; Jackson, 1994; Loden & Rosener, 1991). *Although diversity has benefits, demographic and cultural differences can, if not carefully managed, create great difficulties in the functioning of work teams—increasing destructive conflict, inhibiting team cooperation, and impeding performance (van Knippenberg, DeDreu, & Homan, 2004; Williams & O’Reilly, 1998). *The key to dealing successfully with diversity will involve getting beyond the “surface” issues that divide people and getting at the“deeper” benefits that diversity brings (Cascio, 2009; Härtel, 1998). In the past several decades, there has been a rapid, continuing shift toward a more global economy. ➔ Businesses and industries worldwide are focusing more and more on the global marketplace (Erez, 2011). ➔ Companies that were formerly concerned only with domestic markets and competition must now consider the international picture. ➔ As more and more organizations go international, there is an increasing need for workers to be trained for working in or with organizations located in other countries (Stroh, Black, Mendenhall, & Gregersen, 2005). * The successful executive or manager of the future must be globally aware, knowledgeable and respectful of other cultures, and capable of working with people from a wide variety of backgrounds (Teagarden, 2007). FOURTH TREND: INCREASING RELEVANCE IN POLICY AND PRACTICE Cascio and Aguinis (2008) suggest a number of workplace and social issues and questions that should be addressed These include:  ➔ Selecting and developing better organizational leaders—including leaders who are ethical and socially responsible. ➔ Improving the lot of workers through fair compensation, flexible work policies (including work–family issues), and reducing discrimination in the workplace. ➔ Leveraging workforce diversity and globalization in optimal ways. ➔ Improving performance through optimal management and development of talent. ➔ Helping organizations (and the people in them) to embrace positive change and be more innovative Additional Online resources: https://www.youtube.com/watch?v=NxdlM_Iztso https://www.youtube.com/watch?v=bnyNQNTZXF0 TEXTBOOK SOURCES: Bisen, V., & Priya. (2015). Industrial psychology. New Delhi : New Age International Riggio , R.E ( 2018). 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