Why is industrial psychology important in organizational development?

The study of human behaviour in the workplace is referred to as industrial psychology, sometimes known as industrial-organizational psychology or I-O psychology. Industrial psychologists examine and assess a company’s culture, employee behaviour, and work procedures, and then develop or recommend programmes and practises to boost employee productivity and overall performance.

Industrial psychologists collaborate with a company’s human resources department to observe employees’ behaviour in the workplace, evaluate organisational procedures and practises, and recommend areas for development.

Employee training and development

Job analyses are conducted by industrial psychologists to identify the skills and abilities required to do a certain job effectively. These studies provide information and insights that are utilised to build and assess employee skill development and training programmes.

Organizational development and management.

This branch of industrial psychology is concerned with the structure and performance of organisations. An industrial psychologist would be hired by a company to determine how efficient, productive, and profitable the company is, as well as to aid with issues such as corporate culture and structural modifications.


Employers might hire an industrial psychologist to help them solve specific workplace difficulties or concerns, create and maintain a healthy work environment, and improve employee and organisational performance. While most mid-to-large firms benefit from having an in-house psychologist, small businesses with five to ten staff are better served by hiring a consultant.

In the absence of an on-staff industrial psychologist, employers can adopt and implement industrial psychology principles, but a professional consultant should be hired to perform, analyse, and deliver feedback on employee assessments.

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