The Concept of Organizational Psychology

Definition & Introduction

The study of human behavior in organizations is known as Organisational Psychology. As individuals differ from each other, so does individual psychology in the different organizational milieu and under different corporate circumstances.

However, under corporate environments, individuals need to respect and adhere to its values and determinants, and this, by and large, forms the subject matter of organizational psychology. Organizational psychology depends upon the intrapersonal, interpersonal, and group behavior of individuals, and has been defined thus:

“Organisational Psychology is the study of the structure of an organization and of how the people in it interact, usually undertaken to improve the organization.”

Research on human behavior plays a vital role in the study of organizational psychology. Just like any other natural sciences, psychology also relies on empirical and scientific methods based on observations and experiments. Thus psychometric studies do play an important role in identifying how harmonious interrelations between employees could be fostered and cultivated, leading to enhanced productivity and meeting goals and objectives of the corporate.

Similarly, if organizational psychology is not granted the importance it deserves, it is quite possible that negative aspects of it would surface that could detriment and vitiate possibly the entire workings of the company, both internally and externally.

Research & Statistics in Organizational Psychology

The research programs involved in organizations to analyze and improve behavior include experimental research, research in development (individual & organizations), counseling, personality analysis, cognitive analysis, etc.

Statistical methods and techniques like correlation, sampling, regression, ANOVA methods, could also be used to analyze data and draw conclusions on the conducted research.

Research has substantiated the increased use of “virtual reality” to aid in assessing organizations’ situations and examine the “individual reactions to them.”

Besides, there is greater usage of intranet and internet applications for conducting organizational psychology programs.

Organizational Psychology in organizations

Organizational psychologists need to work in staff selection, performance evaluation, training, motivation, work attitudes, occupational stress and burnout, leadership, organizational culture, organizational development, and human factors to help make organizations more effective and improve the well-being of their employees.

An elaborate analysis should be carried out regarding ethics, values, attitudes, perceptions, personality, egoism, etc.

Fundamentally, organizational psychology would be dealing with how people behave as individuals and in groups. There are a lot of motivational factors that could lead to better performance like motivation, incentives, encouragement, and praise, rewards, etc that go to enhances individual performance and do form a part of organizational psychology. Without understanding how people think individually, it would be difficult to have effective man-management or communication systems. Thus for recruitment, promotions, disciplinary action, and job assessment, it is necessary to understand employee psychology, and in effect, corporate thinking.

Coming to group psychology, the effects of group dynamics, positive or negative, are palpable. Management needs to keep in mind that individual thinking may differ conspicuously from group behavior; thus for channelizing and moving group performance in a positive direction, organizational psychology must be used and the services of industrial psychologists are retained for better and enhanced employee performance and motivation.

Organizational changes and interventions

Organizational effectiveness depends upon methods for changes and development, which are often known as interventions. These involvements can be individually focused and group focused. The former focuses interventions are coaching, counseling, delegating, leading, morale-boosting, mentoring, motivating, etc. The group-focused methods are conflict management, dialoguing, group learning, group facilitation, self–directed work teams, team building, virtual teams, etc.

To boost up the human resource techniques in employee performance management, employee development, employee wellness programs, and strategic interventions like business planning, cultural change, etc. may be incorporated.


It would be an understatement to state that corporate or organizational psychology does not play a vital role in rejuvenating and reviving the positive principles that guide companies in their quest for fulfillment of the goals and objectives of the company. It would also be presumptuous to believe that companies could function without a strong influence of positive organizational psychology since both individual and group conduct need to be closely observed and monitored in the organizational context for promoting performance and better and more harmonious interaction between employees among themselves, and with the management.

Only the empirical and practical utilization of the benefits of organizational psychology strategies in terms of collective bargaining, selection and promotion, group and individual rewarding system, and the use of motivational workshops and programs could ensure better management-employee relations, free of attrition, for the long term benefit of the company. Again, OP is needed during critical stages of the company’s progress, like takeover, acquisitions, mergers, or amalgamations, where the need to protect human assets and the jobs of the workforce become predominant issues, which could be compromised if necessary psychological assessments are not carried out to determine the overall situation.

Reference list

  1. Organizational psychology. Definition. Web.
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