psychology applied to business

1. Psychology Applied to Business

3. First Areas of Interest Social changes made Applied Psychology very appealing Immigration, industrialization, growth of cities Psychology entering business shifted the focus of attention

4. Old focus New large corporations created management problems Efficiency Product development Getting cheap materials Keeping labor costs down

5. -1920s-New Focus Attention shifted toward the worker Selection (testing) Training Employee satisfaction

6. Toward a New Psychology of Business Hugo Munsterberg Not the first to be interested in psychology and business Earlier efforts have to do with testing, advertising, etc. Wrote �Psychology and Industrial Efficiency� Focused on the promise of psychology to fulfill greater efficiency

7. What can Psychology offer? More effective advertising Better trained workers Improved management techniques Better performing workers Higher quality output A more scientific approach to all of this!

8. 1920s and 1930s � a more Psychological approach Frederick Winslow Taylor�s scientific management Frank Gilbreath (and Lillian) � engineer who used photography to help improve efficiency

9. The Down Side Workers and labor groups didn�t greet this with total enthusiasm Quacks like Dr. Katherine Blackford gave psychologists a bad name with pseudo-scientific approaches like �character analysis systems� Phrenology Graphology

10. After World War II Industrial psychology had focused on the individual level (changing one worker or a department There was growing awareness that a much broader approach was needed Industrial/Organizational psychology was born! APA Division 14 � Industrial Psychology

11. Personnel Types vs. Organizational Types Personnel types Job analysis Matching people to jobs Organizational types Overall working conditions Leadership Job satisfaction Employee motivation