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Most people think of a psychologist as someone sitting at a table with a pad and pen, staring down at a distressed patient laying on a couch. To be fair, this only reflects a very narrow subset of the broader discipline of psychology. Industrial-organizational psychology is a subfield of organizational psychology that is relatively unknown but increasingly important. In this article, I will define organizational psychology, its jobs, salary, and degree.


Organizational psychology is the subfield of psychology that studies how workers interact with one another in the workplace. Industrial and organizational psychologists use psychological ideas and strategies to address problems and boost morale in the workplace, both between managers and employees and amongst themselves. They help HR personnel select qualified candidates and handle terminated workers fairly. They’re useful for managers and supervisors because:

  • They incentivize their workers to best place their workforce
  • They generate productive environments in the workplace
  • By providing structure and researching what customers want, they aid companies in their pursuit of success.

Is Organizational Psychology a Good Career?

You will, without a doubt, be able to achieve remarkable financial success. You may count on a comfortable salary if you pursue a career as an industrial and organizational psychologist. One of the main benefits of working as an industrial and organizational psychologist is the high compensation that is typically associated with this field.

Where Within the Organization Does Organizational Psychology Intervene?

Organizational psychologists are responsible for several things, including hiring new employees. Their primary goal is to supply the firm with the best possible candidates for open positions, which is becoming an increasingly pressing issue for all companies because of the high cost of finding, training, and keeping new employees.

In addition, an organizational psychologist frequently plays the role of mediator when employees have disagreements, helping them come to terms with one another through the provision of guidance and support. Their goal is to identify common ground between the warring parties and broker peace that safeguards both the business and the people involved.

Last but not least, an organizational psychologist’s goal is to foster employee growth and development by inspiring and empowering team members to focus on achieving tangible outcomes.

Industrial Organizational Psychology

The field of psychology known as “organizational psychology” focuses on the practical application of psychological concepts and theories to business settings. This branch of psychology is concerned with boosting workplace efficiency and addressing issues including the emotional and physical well-being of workers. The work of industrial-organizational psychologists is diverse and includes, among other things, the analysis of workplace cultures and the development of future leaders. The overarching purpose of this area of study is to gain an understanding of how people act in professional settings.

In addition, this branch of psychology can be thought of from two perspectives. For starters, there’s the business end, which involves exploring ways to optimally pair people with their jobs. The field of study is known variously as personnel psychology and I-O psychology. Professionals in this field may evaluate workers’ personalities and skills to place them in suitable positions. Training personnel, creating job performance standards, and evaluating performance are all tasks that fall under the purview of industrial and organizational psychology. The study of how people are influenced by their affiliation with a group is the primary concern of organizational psychologists. People’s actions inside an organization may be affected by its structure, social conventions, leadership style, and expected performance of assigned tasks.

Furthermore, I-O psychologists seek to improve both individual and organizational outcomes by gaining a deeper understanding of these kinds of issues. Even though basic theoretical research is also important in this branch of psychology, as the area is an applied one. Originating in the field of experimental psychology, I-O psychology now encompasses several specialized fields, including but not limited to interpersonal interactions, and personnel psychology.

Educational Program for Industrial Organizational Psychology

People who find this content motivating for a career change can consider getting a bachelor’s degree in industrial organizational psychology. After that, more education in industrial and organizational psychology may be warranted at the master’s or doctoral level, depending on market needs and professional aspirations. A bachelor’s degree may be sufficient for someone whose only goal is to advance within their existing organization. Some people hope to advance their education to the doctoral level so they can:

  • Conduct a personal practice
  • Research
  • Lecture at the college level

You may also want to see: INDUSTRIAL PSYCHOLOGY: Meaning, What They Do and Salary

Organizational Psychology Jobs

Jobs in the subject of industrial and organizational psychology are one of the fastest-growing areas of the discipline. As a result of assisting others in becoming more efficient and inspired at work, they can enhance their own professional and personal lives. However, we have compiled a list of organizational psychology jobs. They include:

#1. Human Resources Management

One possible job for an organizational psychologist is in human resources management. The field of human resources is a popular destination for many organizational psychologists. Careers in this area place greater emphasis on the individuals within an organization than on the mechanics of running one.

An HR manager’s responsibilities might range from recruiting and interviewing candidates to providing onboarding and ongoing training for new employees and even mediating disputes between staff members. Managers in this field may also be responsible for coordinating employee benefits, representing workers’ interests, and mediating conflicts between workers and upper management.

#2. Research Analyst

This is one of the organizational psychology jobs. Research analysts plan and manage research initiatives, and they collaborate with project personnel. They examine the statistics to figure out what to do next and then give their advice. They might publish articles in scholarly periodicals or industry periodicals.

#3. Cognitive and Behavioural Analyst

This is one of the organizational psychology jobs that entails assessing workplace conduct. A behavioral analyst may examine a global behavioral pattern like employee tardiness. Sometimes they help employees change bad habits. Behavior analysts search for more than simply bad habits. They’re often asked to recognize a company’s employees’ capabilities and promote positive conduct. They also focus on measurable behaviors. 

For instance, a car manufacturer’s behavioral analyst might analyze consumer behavior to determine the most popular vehicle characteristics. Thus, behavioral analysts monitor groups to help comprehend behavior so their organization can achieve its goals.

#4. Consultant

Business managers and other high-ranking personnel meet with a consultant to discuss topics such as the company’s future direction, any necessary changes in personnel or administration, the effectiveness of employee reviews, the search for new talent, and compensation and benefits. One can also work as a consultant for a larger entity or start their own.

#5. Specialist in Student Success

Student success specialists are also an alternative job option. Despite appearances, organizational psychology and education are a good match. Student success specialists work in elementary schools, colleges, and master, and doctoral programs. In other words, organizational psychologists can help students develop into happier, richer, more productive members of society, regardless of their age.

Organizational Psychology Salary

How much do IO psychologists make? is a question you may be asking yourself if you’re considering getting a master’s or doctorate in psychology. Of all things, a significant consideration in picking a profession is the potential salary you’d enjoy once established in that role. Meanwhile, the average salary for an industrial-organizational psychologist in the United States is $112,690 per year, as reported by the BLS. Although the top 10% of earners are predicted to make over $192,000 annually, the bottom 10% are estimated to make less than $57,440.

Factors Affecting the Organizational Psychology Salary

Below are the factors that affect the organizational psychology salary:

#1. Education Level

The level of education you acquire is a significant factor affecting the organizational psychology salary. According to the National Association of Colleges and Employers, a master’s degree holder should expect a starting wage that is roughly 20% greater than a bachelor’s holder. Your current and future income may be greatly impacted by this. The return on investment for educational pursuits can be substantial.

#2. Workplace Environment

Those in the private sector or teaching at colleges and universities can anticipate paying closer to the top of the range. In addition, after gaining expertise, some people opt to work independently or become consultants. As much as $250,000 a year has been reported for such positions.

#3. Level of Experience

This is also another factor affecting the organizational psychology salary. Industrial-organizational psychologists, like professionals in any other industry, can expect pay increases as they get more experience in the field.

#4. Location

When moving to a new company, some workers are paid more despite performing the same duties. This could be due to either a high demand for their services or, more likely, a rise in the cost of living. A person pursuing a career in industrial-organizational psychology may profit from situating themselves in an optimal environment.

Organizational Psychology Degree

An advanced degree in organizational psychology is a subfield of psychology. Courses in organizational psychology focus on how people act in professional settings. Organizational psychology also analyzes how organizations and their people function from a psychological perspective. However, internships are a great way to get your foot in the door of a new field. Students studying organizational psychology can choose from a wide variety of internship opportunities. Internships in the field of organizational psychology are available in a wide range of businesses, both large and small, that recognize the value of a trained professional in this area. Meanwhile, to acquire an organizational psychology degree, you have to obtain:

#1. Bachelor’s Degree Programs

An initial step is to enroll in a four-year bachelor’s program, whether it’s in psychology or something entirely else. The standard educational path for those who wish to work in the subject of industrial and organizational psychology is to first get a bachelor’s degree in psychology, and then either a master’s or Ph.D. However, some students choose to pursue a double major in both business and human resources or industrial organization, or they take electives in the business school that pertains to these fields of study.

#2. Master’s Degree Programs

Over the last quarter of a century, master’s degrees in industrial-organizational psychology have just become extremely popular. Organizational psychologists with a master’s degree might expect annual compensation of about $64,000 at the low end of the salary spectrum.

#3. Doctoral Degree Programs

Earning a doctorate in industrial and organizational psychology typically takes four to five years. Those who go on to get a doctorate in psychology will find that they can command higher salaries and have more work options than their peers without a doctorate. A Ph.D. is very helpful if your career goals include working in academia.

In general, doctoral programs in industrial-organizational psychology go into greater depth than master’s programs, though this is not always the case and may depend on the specific program.

Which Is an Example of Organizational Psychology?

A high employee turnover rate, for example, could cause alarm among a company’s upper management. Hence, to determine the root of the problem, an expert in organizational psychology may conduct a survey, conduct in-depth interviews with key personnel, or utilize other investigative techniques.

What Are the 3 Major Fields of Industrial-Organizational Psychology?

Industrial and organizational psychology (I-O psychology) is divided into three major fields: industrial psychology, organizational psychology, and human factors.

Is Organizational Psychology an HR Discipline?

Yes, human resources and industrial-organizational psychology have a lot in common because both deal with employee satisfaction and retention.

What Is HRM in Organizational Psychology?

Human resource management (HRM) encompasses a wide range of disciplines and functions related to personnel administration. There are several levels of analysis that can be applied to this topic, but ultimately it provides a crucial setting for the study and practice of industrial and organizational psychology.


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