Industrial-Organizational (I-O) Psychology 

 

Glossary of HR Terms What is Industrial-Organizational (I-O) Psychology

What is I-O Psychology?

Industrial-Organizational (I-O) Psychology is the scientific study of human behavior in the workplace. It applies psychological principles and research methods to improve employee performance, well-being, and organizational effectiveness. I-O psychology covers a wide range of HR-related areas, including recruitment, training, motivation, leadership, performance management, and organizational culture.

Why it matters

I-O psychology bridges the gap between people and business strategy. By applying evidence-based methods, organizations can design fairer hiring processes, increase employee engagement, enhance leadership effectiveness, and improve overall productivity. It also ensures HR practices are grounded in science, reducing bias and supporting compliance with employment laws.

How it affects HR

I-O psychology gives HR an evidence-based foundation for designing people practices that are fair, predictive, and effective. It guides recruitment through valid selection tools, informs training and leadership programs in learning and development, and shapes performance management systems that balance objectivity with growth. It also strengthens engagement and retention by providing frameworks to measure and improve motivation, well-being, and commitment. By grounding decisions in research rather than intuition, HR can create workplaces that are both high-performing and people-centered.

Bring I-O psychology to every people decision

Industrial-Organizational psychology should not stay in textbooks. Plum makes it practical and scalable by measuring the soft skills that predict performance and growth. With science-backed insights, you can hire smarter, develop talent with purpose, and build stronger teams.

See I-O psychology in action with Plum

Common use cases/Examples

  • Designing valid and reliable pre-employment assessments.
  • Conducting job analyses to define role competencies.
  • Applying leadership development frameworks based on psychological research.
  • Using employee surveys to measure engagement and satisfaction.
  • Developing change management strategies rooted in behavioral science.

Examples of companies that use it

  • Enterprises like IBM, Deloitte, and Procter & Gamble, which employ I-O psychologists to design global talent strategies.
  • Tech companies such as Google and Microsoft, which integrate behavioral science into hiring and people analytics.
  • SMBs and startups adopting I-O principles through tools like Plum, Hogan Assessments, or Korn Ferry.

FAQ

HR is a business function, while I-O psychology is a scientific discipline. I-O psychology provides the evidence-based tools and frameworks that inform HR practices.

Recruitment, selection, training, leadership, motivation, job design, employee well-being, performance management, and organizational development.

While not all have in-house psychologists, most apply I-O principles indirectly through validated assessments, structured interviews, and employee engagement tools.

By using job-relevant assessments, structured interviews, and validated selection methods that predict performance and reduce bias.

No. It also improves leadership effectiveness, employee engagement, organizational culture, and change management initiatives.