PSY FPX 8740 Assessment 1 Psychological Foundations

Student Name

Capella University

PSY FPX 8740 Industrial/Organizational Psychology Practices in Human Resource Management

Prof. Name:

Date

Introduction

An organization in the manufacturing sector is experiencing growth and aims to transition from a small to a medium-sized entity. This shift to a medium-sized organization will enable them to secure contracts from the government. To qualify for these government contracts, the organization must demonstrate that it has a diverse workforce. Consequently, discussions regarding the hiring of an I/O Psychologist consultant will be necessary to highlight the benefits they bring to the organization, as well as to illustrate the differences in knowledge gained compared to traditional human resource management (HRM) practices.

What Are I/O Psychologists and HRM Professionals?

I/O Psychologist: An I/O Psychologist is a trained professional who applies their understanding of human behavior to address issues and challenges that arise within an organization or workplace (Industrial and Organizational Psychology: Science for a smarter workplace, 2021).

Human Resource Management (HRM) Professional: An HRM professional is responsible for managing individuals within an organization by adhering to established organizational policies and procedures (Paauwe, Jaap, & Farndale, 2018).

Human Resource Challenges

Promoting diversity in the workplace offers several benefits to the organization’s bottom line. Additionally, it will facilitate the organization’s growth from small to medium size through the transition to federal contracting. Given this change, it is crucial to take appropriate steps in the hiring process. The following steps should be undertaken to address these needs:

Learn, Assess, and Sense Patterns
Identify and Gather Appropriate Data
Analyze and Identify Key Messages
Design Summaries and Prescriptions

Human Resource Challenges Continued

Utility theory is appealing as it necessitates consideration of costs and the consequences of decisions. For instance, if a new employee requires training and is assigned to three available classes, the following training strategies can be implemented:

Strategy 1: The total training cost for one employee will be $80,000. Each employee must complete 2 of the 3 training classes to achieve a 75 percent success rate.

Strategy 2: The total training cost for one employee is $65,000. Each employee needs to take 1 training class to achieve a 50 percent success rate. The total payoff for Program Strategy 2 would be $15,000+, with fewer than 25 employees failing to complete the training successfully.

ROI = Gains – Investment Costs

Investment Costs

What Are the Differences Between I/O Psychologists and HRM Professionals?

I/O Psychologist Education and Training	HRM Professional Education and Training
Requires a bachelor’s degree in Psychology	Requires some level of education or related work experience, or both (Human Resource Managers, 2021)
Advanced degrees, such as a Master’s or Doctorate, are required for most positions (Industrial and Organizational Psychology, 2008)	Education can be a bachelor’s degree in any business-related field, such as: Human Resources, Business Management, Business Administration, Labor Relations, Education, or Finance
Master’s programs require completion of a thesis or capstone project	A required master’s degree in human resources, business administration, or labor relations may be needed depending on the position
Doctoral programs require completion of a dissertation and passing a comprehensive exam	There is no licensure requirement; however, certifications are beneficial. Certified candidates are preferred by employers during the hiring process. Certifications can be obtained through organizations like the Society for Human Resource Management (SHRM) (Human Resource Managers, 2021)
There is no licensure requirement; however, some states have licensing requirements for specific areas of I/O practice (Guidelines for education and training in industrial/organizational psychology, 2017)

What Is the Difference?

I/O Psychologist Skill Sets	HRM Professional Skill Sets
Communication (verbal and written)	Communication (verbal and written)
Project management skills	Interpersonal skills
Critical thinking	Decision-making skills
Problem-solving	Conflict management and problem-solving
Strategic thinking	Organization
Interpersonal skills	Attention to detail
Ethical	Negotiation
Adaptability and tolerance for ambiguity	Change management
Initiative	Ethics and discretion
Attention to detail	Adaptability and tolerance for ambiguity
Presentation skills
Consultation skills
Time management

What Is the Difference?

I/O Psychologist Competencies	HRM Professional Competencies
Test development and psychometrics knowledge
Statistical methods, including data analysis
Research methods
Organizational development
Coaching
Mentoring
Career development
Leadership
Management theory

Key Areas of Focus

Ethical
Diverse
Legalities
International issues
Human performance
Motivation in the workplace
People recruitment, selection, and placement
Strategic business management
Workforce planning
Employment
Benefits and Compensation
Talent management
Change management
Succession planning
Transformational leadership
Functional leadership
Global perspective
Awareness and knowledge of government and regulatory guidelines
HR metrics/analytics/business indicators
Organizational metrics/analytics/business indicators

I/O Psychologist and HRM Professional Associations

I/O Psychologist: The Society for Industrial and Organizational Psychology (SIOP) is the most recognized association in this field. This organization supports the role of I/O psychologists by providing research and resources that keep professionals informed about advancements in I/O psychology (Industrial and Organizational Psychology, 2016).

HRM Professional: The Society for Human Resource Management (SHRM) is the leading association for HRM professionals. This organization offers resources and products, including research, certifications, and networking opportunities (Human Resource Managers, 2021).

Benefits of an I/O Psychologist Consultation

Provide analysis of I/O psychology tools utilized in the industry, which may include recruiting, candidate selection, employee evaluations, succession planning, job analysis/classification, performance reviews, training, and human performance factors.
Advise on strategies that enhance the critical connections between work and organizational success (Boudreau, 2012).
Offer diversity training in accordance with government standards. I/O psychology is strategic and extends beyond traditional HR strategies.
Facilitate the connection between the use of instruments and the workforce by providing reliable and valid data. It is essential to understand the workforce’s purpose to make recommendations that enhance diversity.

Organizational Assessment

Social-Organizational Theories are employed to address issues from a psychological perspective.
Gather and analyze data for forecasting.
Establish objectives for human resources.
Design and implement programs.
Monitor and evaluate the implemented programs.
Human resource planning is primarily used by organizations to ensure the right person is selected for open positions.
Short-term programs are designed and implemented.
Supply and demand forecasting is conducted.

Organization’s HRM Compliance

The organization must implement four planning phases:

The initial phase should involve forecasting supply and demand.
Future projections of demand are influenced by short-term assessments.
Business plans may be affected by new programs being implemented.
To assist with recruitment and employee training/development, I/O psychologists work on creating program designs that include activities that the organization will find easy to adopt and implement. The goal is to achieve the organization’s growth and diversity objectives.

References

Boudreau, J. W. (2012). Talent management: A strategic approach. Retrieved from [source link].

Guidelines for education and training in industrial/organizational psychology. (2017). Retrieved from Society for Industrial and Organizational Psychology: https://www.apa.org/about/policy/industrial-organizational-guidelines.pdf

Human Resource Managers. (2021, September 8). Retrieved from U.S. Bureau of Labor Statistics: https://www.bls.gov/ooh/management/human-resources-managers.htm

Industrial and Organizational Psychology. (2008). Retrieved from American Psychological Association: https://www.apa.org/ed/graduate/specialize/industrial

Industrial and Organizational Psychology: Science for a smarter workplace. (2021). Retrieved from The Society for Industrial and Organizational Psychology (SIOP): http://www.siop.org/Portals/84/SIOPgeneralbrochure.pdf?ver=2019-05-14-141936-670

Jackson, S. E., & Schuler, R. S. (1990). Human resource planning: Challenges for industrial/organizational psychologists. American Psychologist, 45(2), 223-239. https://doi.org/10.1037/0003-066X.45.2.223

Kaminski, K., & Lopes, T. (2009). Return on investment: Training and development. Retrieved from Society for Human Resource Management (SHRM): https://www.shrm.org/certification/educators/Documents/09-0168%20Kaminski%20ROI%20TnD%20IM_FINAL.pdf

Licensure information for I/O Psychologists: Membership. (2021). Retrieved from Society for Industrial and Organizational Psychology: https://www.siop.org/Membership/Licensure-Policy-by-