Applications of Psychology > Organisational Area

A psychologist who specialises in industrial problems and industrial relations is called an industrial psychologist.

• Industrial psychology aims to improve efficiency and productivity in organisations.
• The Hawthorne Studies (1927) shifted focus from economic factors to human and social factors in industry.
• Personnel psychology deals with selection, placement, and training of employees.
• Scientific management and time-motion study help in proper planning and efficient work methods.
• Incentives, work environment, and understanding human behaviour are essential for increasing production with low cost.