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

Personality Perception Attitudes Motivation Job Satisfaction Values
INDIVIDUALS GROUPS

Group Dynamics Group Conflicts Communication Leadership Power & Politics

Three Aspects of Industrial Psychology

INDUSTRY/ ORGANIZATION

Structure Culture Change Development

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.

SCOPE OF INDUSTRIAL PSYCHOLOGY (cont.)

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

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 Experiments

Hawthorne

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. Its 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 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.

Scientific Management characterizes that

- Harlow Person

Taylors 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
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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 days 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 days 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 sociopsychological 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