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Evolution of Organisational Psychology over time
Historical moments which changed the world of work
The rise of Human Relations and HR Management
Predict the impact of the 4th Industrial Revolution
Lesson 2: Changing world of work
Lesson Objectives
• A group of companies that are related based on their primary business activities
• Manufacturers or businesses that produce particular kinds of goods or services
• Economic activity concerned with the processing of raw materials and manufacturing of goods in factories
What does ‘Industry’ mean?
The Industrial Revolution• ‘Industry’ is born in Britain
• Rural societies become urban
• Mass quantity production
• Machines and factories
• Steam power is the game-changer
An industrialised workforce• Need for a ‘factory worker’
• Mechanised factory system
• Rise in population growth rate
• Rise in urbanisation
ChallengeDraw up a list of words (about 5 – 6) that
you think would describe the working
conditions of factory workers during the
Industrial Revolution
Efficiency and productivity• Assembly lines want to improve output
levels
• Goal was profit, therefore employee productivity had to be optimised
• ‘Industrial Psychology’ comes into play
• Very little interest in worker sentiment or satisfaction
• Focus purely on streamlined job design and efficiency
• Landmark research focused on efficiency and job design
• One of the key men who set that tone was Frederick Taylor
Efficiency and productivity
Taylorism
• Mechanical engineer
• Obsession with efficiency and
productivity
• Created the concept of
scientific management using
four key principles
1. Use science to identify how to work efficiently
2. Select workers and train them for efficient working
3. Closely supervise all work and incentivise obedience
4. Planning and thinking is not a job for the worker
Four key principles of
Taylorism
Seeing employees as humans
• Employees have thoughts and feelings
• Not just resources to be productively managed
and replaced
• Shift aligned with profit mindset, not just about
being ‘nice’ to people
• Human capital becomes important
• Treat people more humanely
• Involve them in decision-making
• Improved morale achieves better productivity
A different supervision style
Human Relations emphasised:
Industrial democracy Sense of interest and motivation
Belonging, trust and growth
Hawthorne Experiment
• Elton Mayo was the founder of the Human Relations movement
• Greatly influenced by the Hawthorne experiment
• A study at the Hawthorne electrics factory
• Research to see if light affected worker productivity
• Study produced an unexpected finding
Hawthorne Experiment continued
• Study itself positively impacted worker productivity
• Uncovered that showing interest in employees motivated them to work harder
• “Hawthorn effect”
ChallengeReflect on your own work.
Do you put in more effort and do a better
job, if someone is watching you?
Or if someone shows some interest in what
you are doing?
Psychology and War• War creates greater appetite for the
ideas of Organisational Psychology
• Expertise in industrial fatigue and
the effects of hunger
• Application of scientific
management principles to
streamline military actions
• US joins the war
• Started using aptitude tests to fill key roles
• Birth of Psychometric testing
• Walter Dill Scott is a key advocator of psychometrics in the army
• Personnel classification becomes a key fixture in military management
Psychology and War
What are Psychometrics?• Science of measuring psychological abilities,
attributes and characteristics
• Psychological measurement
• More than just the tests themselves
• Also mathematical, statistical and professional protocols that underpin tests
What can Psychometrics measure?• Intelligence
• Aptitude
• Achievement
• Creativity
• Personality
• Interest inventories
• Behavioural preferences
• Neuropsychological factors
Testing in workplaces
• Testing evolved and improved
• Variety of new techniques and standards have been introduced
• Professionalisation
• Their place in organisations is firmly cemented
Human Resource Management
• People are seen as an input
resource
• This resource can be optimised
• The term ‘Human Resources’
(HR) was coined in the 1960’s
• Belief is that Human Capital is
important and must be managed
Some typical HR responsibilities• Managing job design, recruitment & selection
• Developing employee pay schemes and benefits programmes
• Promoting employee career development and learning
• Providing orientation programs for new hires
• Managing employee grievance issues
Why HRM matters?
• Hiring mistakes are costly
• Extend the ‘time to performance’ curve
• Perceptions of injustice amongst staff
• Skill stagnation
• Inability to deal with under-performance
• Conflict and disciplinary issues
The 4th Industrial revolution• 1st & 2nd Industrial Revolutions powered by
steam and electricity
• 3rd IR underpinned by computing and IT
• Now a 4th IR has started, premised on:
• unparalleled access to technology
• digitisation
• artificial intelligence
• robotics
• the internet of things
What is the 4th
IR?• Sometimes called Industry 4.0
• World is made of up a variety of cyber-physical systems
• World of work will be massively impacted
Implications of the 4th IR on work• Technology advances will change the
landscape of work
• AI, robotics, internet of things
• Autonomous vehicles, 3D printing, nanotechnology and quantum computing
• Organisations will have a different need for human skill
• Businesses will create value in different way
Expansion of automation affects:• Employment prospects
• Employee well-being
• Equality
How will we value ‘human resources’ in the future?
Changing profile of required human skill:• Competence
• Experience
• Knowledge
What are the jobs of the future?
What are the necessary skills for those jobs?