What is Industrial/Organizational Psychology?

"Oh, cool, what is that?"

This is the reaction I get almost every time I tell someone that I studied Industrial/Organizational psychology (if you're an I/O psychologist yourself, you can probably relate). My typical answer goes something like this: "It's the people side of business. Sort of related to HR but more strategic. It focuses on things like employee engagement, learning and development, and motivation. We're focused on making the workplace a better place to be." Once I finish my spiel, recognition dawns in their eyes and they say, "Oh, yeah! I get what you mean." Which is almost always followed by, "We need more of that."

But let's be real - that's not what Industrial/Organizational psychology is. Or rather, that's not all that it is. So, let's delve deeper.

A Brief History

The best way to understand what Industrial/Organizational psychology is is through how it started.

Industrial/Organizational psychology, or I/O Psychology, is often cited as starting in the early 1900s with Frederick Taylor's Scientific Management theory. This was during the time of the Industrial Revolution (hence the name Industrial), when manufacturing was a large part of the labor market and economics and engineering were at the forefront. Thus, it is no surprise that Taylor’s theory mirrored that of a machine. He gathered data on the fastest, most efficient ways to complete tasks, matched workers to the right jobs, and created a clear division between workers (who executed) and management (who planned and improved). It was all about optimization and efficiency.

This was soon followed by the Hawthorne studies during the 1920s-1930s. Unlike Taylor’s work, these studies leaned more towards the psychology and sociology side of things, though that was not the original intention. Researchers at Hawthorne Works in Chicago conducted four categories of experiments focused on how working conditions affected employee productivity and morale. They adjusted conditions like lighting, break times, and supervision. They expected simple cause-and-effect relations: Brighten the lights, productivity goes up. Dim them again, productivity goes down. Except that's not what happened. Productivity continued to increase even when the conditions reverted back to their original state. When they interviewed workers, they learned that non-physical factors such as more freedom on the job, less micromanagement, and the ability to set their own pace, were increasing motivation to work and thus impacting productivity. It wasn't just about the physical environment; it was about attitude, autonomy, and how people felt about their work that drove productivity.

This revelation sparked the evolution of the field. By the 1940s-1950s, surveys became popular for measuring employee morale, with researcher Floyd Mann finding that surveys worked best when managers discussed results with their teams rather than filing them away. Kurt Lewin's sensitivity training workshops on community leadership and interracial relationships revealed that peer feedback was more impactful than the training itself because in reflecting with their peers, participants became more aware of how they were being perceived and the impact their behavior had on the group. Meanwhile, Eric Trist introduced sociotechnical systems theory - the idea that technical and social systems are interdependent, so changing one inevitably affects the other (think: how AI adoption reshapes workplace interactions).

Fast forward through the decades: the 1950s-1960s brought Organizational Development (OD) as a formal discipline, built on the principle that those affected by change should be involved in shaping it. The 1990s introduced conversations about workplace bullying, stereotype threat, and work-life balance. Today, I/O psychology tackles change management, DEI, remote work, employee well-being, and how to integrate AI into the workplace without losing the human element.

The Two Sides of I/O Psychology

So why "Industrial/Organizational" psychology? Well, they are two sides of the same coin.

Industrial Psychology is the "efficiency" side. It's about getting the right people in the right roles and continuously improving processes to maximize output. Think: personnel selection, performance measurement, training design.

Organizational Psychology is the "people" side. It recognizes that productivity isn't just about processes - it's about motivation, leadership, and organizational culture. Think: work motivation, leadership development, organizational change.

Both sides work together to create workplaces that are not only efficient but also human.

What Does This Look Like in Practice?

I/O psychologists are uniquely equipped to address workplace challenges that have to do with people. For instance...

Have you ever had a manager who made you dread Monday mornings or watched someone brilliant at their job get promoted to manager, only to crash and burn?  Technical expertise doesn't automatically translate to people management skills. An I/O psychologist can design leadership training that actually works - not just generic "how to delegate" slides, but programs based on what your organization needs, building those foundational leadership capabilities from the ground up.

Been part of a team that just doesn't click, no matter how hard everyone tries? An I/O psychologist can assess team dynamics, individual strengths, and workflow structures to diagnose what's broken and design interventions that improve collaboration.

Struggled with low morale and wondered why your team seems disengaged? An I/O psychologist can conduct engagement surveys and focus groups to identify the root causes - whether it's lack of recognition, poor leadership, or unclear career paths - and design targeted interventions.

Hired people who look great on paper but aren't the right fit? An I/O psychologist can revamp your selection process with validated assessments, structured interviews, and clear competency models that predict job performance, not just credentials.

Tried implementing performance reviews that feel fair and drive improvement? An I/O psychologists support this by designing performance management systems grounded in clear metrics, regular feedback, and development planning - not just the annual check-the-box exercise that everyone dreads.

Faced pushback every time you try to introduce new processes or technology? An I/O psychologist can help you understand resistance patterns, engage stakeholders early, and design change management strategies that bring people along rather than dragging them through it.

Wondered if your training programs work or just eat your budget? An I/O psychologist can evaluate training effectiveness through pre/post assessments, behavior change metrics, and ROI analysis - then redesign programs based on what sticks.

Wanted to build a stronger company culture, but don't know where to start? An I/O psychologist can help you define your desired culture, assess where you are now, identify gaps, and create a roadmap with measurable milestones so you know when you're making progress.

And so much more!

The Bottom Line

Industrial/Organizational psychology is about making work better - for individuals, for teams, and for entire organizations. It's grounded in research, driven by data, and focused on outcomes that matter like engagement, performance, satisfaction, and growth.

So the next time someone asks what I/O psychology is, you can tell them: It's the science of making work work. And yes, we probably do need more of that.