13.1.2 From World War II to Today

World War II also drove the expansion of industrial psychology. Bingham was hired as the chief psychologist for the War Department (now the Department of Defense) and developed new systems for job selection, classification, training, and performance review, plus methods for team development, morale change, and attitude change (Katzell & Austin, 1992). Other countries, such as Canada and the United Kingdom, likewise saw growth in I-O psychology during World War II (McMillan, Stevens, & Kelloway, 2009). In the years after the war, both industrial psychology and organizational psychology became areas of significant research effort. Concerns about the fairness of employment tests arose, and the ethnic and gender biases in various tests were evaluated with mixed results. In addition, a great deal of research went into studying job satisfaction and employee motivation (Katzell & Austin, 1992).

The research and work of I-O psychologists in the areas of employee selection, placement, and performance appraisal became increasingly important in the 1960s. When Congress passed the 1964 Civil Rights Act, Title VII covered what is known as equal employment opportunity. This law protects employees against discrimination based on race, color, religion, sex, or national origin, as well as discrimination against an employee for associating with an individual in one of these categories.

Organizations had to adjust to the social, political, and legal climate of the Civil Rights movement, and these issues needed to be addressed by members of I/O in research and practice.

There are many reasons for organizations to be interested in I/O so that they can better understand the psychology of their workers, which in turn helps them understand how their organizations can become more productive and competitive. For example, most large organizations are now competing on a global level, and they need to understand how to motivate workers in order to achieve high productivity and efficiency. Most companies also have a diverse workforce and need to understand the psychological complexity of the people in these diverse backgrounds.

Today, I-O psychology is a diverse and deep field of research and practice, as you will learn about in the rest of this chapter. The Society for Industrial and Organizational Psychology (SIOP), a division of the APA, lists 8,000 members (SIOP, 2014) and the Bureau of Labor Statistics—U.S. Department of Labor (2013) has projected this profession will have the greatest growth of all job classifications in the 20 years following 2012. On average, a person with a master’s degree in industrial-organizational psychology will earn over $80,000 a year, while someone with a doctorate will earn over $110,000 a year (Khanna, Medsker, & Ginter, 2012).