It is also known as industrial-organizational psychology, I-O psychology, work psychology, organizational psychology, work and organizational psychology, occupational psychology, personnel psychology or talent assessment) applies psychology to organizations and the workplace. It is concerned with people at work. Traditionally, industrial psychologists have assessed differences among individual workers and have evaluated individual jobs. Organizational psychologists generally seek to understand how workers function in an organization, and how the organization functions in society.
Guion (1965) defines I-O psychology as "the scientific study of the relationship between man and the world of work in the process of making a living". Blum and Naylor (1968) define it as "simply the application or extension of psychological facts and principles to the problems concerning human beings operating within the context of business and industry"
The distinctions between industrial psychology and organizational psychology are not always clear. Thus, the two areas are often referred to jointly as industrial/organizational psychology, or I/O psychology. I/O psychologists work for businesses, consulting firms, government departments, and colleges and universities.
Both industrial and organizational psychologists help determine fair pay scales, generally based on the levels of skill and education a job requires and any hazards it poses. I/O psychologists also research causes of and ways of reducing industrial accidents.
Industrial psychologists typically help employers find the best person for a job, evaluate job performance, and train employees. In developing a system for matching an individual to a job, an industrial psychologist must first determine what special knowledge, skills, and abilities the job demands. The psychologist then designs a selection system to judge an applicant's qualifications for the job. The objective of such a system...