Industrial psychology (also known as organizational psychology) was created to address issues in the workplace. Industrial psychologists seek to improve the workplace in many different organizations including factories and hospitals. One of their main goals is to seek ways to make employees happier. They are very successful in working with human resources in hiring qualified, well suited candidates for specific jobs. They also appraise employee work in order to develop appropriate compensation for different areas of work. In addition, they believe in keeping the work force motivated and happy. This is very important in team effectiveness. Industrial psychologists are very important because organizations that hire these professionals have lower absenteeism rates and lower employee turnover.
As the name suggests, industrial psychology is study of human behavior in the context of industrial environment and industrial work. This application of psychology started with the attempt to improve the productivity of people working in industries and business. And it has made significant contribution in that direction. In addition it has also helped to make the the life of industrial labour force more satisfactory and fulfilling.
Though the the industrial started with focus on industrial worker, its scope now includes work of all kind carried out in variety of organizations including service companies and not for profit organizations.