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Organizational Psychology: What is it and what are its benefits

Organizational psychologyis an area of ​​psychology focused on helping companies assess the skills, abilities, perceptions and potential of employees to achieve the organization’s goals while contributing to their human and professional development.

In this article, you will find out what it consists of, what its benefits are and what are the most important tools it uses to improve the performance and well-being of the workforce.

What is organizational psychology?

Organizational psychology studies human behaviour in the workplace. It focuses on the evaluation of individual, group, and organizational dynamics, as well as the use of that research to identify solutions to problems that improve the well-being and performance of an organization and its employees.

Organizational psychology is primarily concerned with aligning the interests of the company and the needs of its workforce. Its objective is to improve the quality of life and conditions of employees to achieve greater performance and efficiency. 

Organizational psychologists study questions about how decisions are made, how effective organizational communication is, and how team members interact and collaborate with virtual leadership. Knowing the answers to these questions and many others helps business owners assess where to change systems and dynamics to make their business work better.

Benefits of Organizational Psychology

Here are some of the benefits of organizational psychology for both companies and employees:

For the companies

Implementing an organizational psychology program offers numerous benefits for a company since it is a field of psychology that tries to maintain the interest of the company and its employees jointly and beneficially. In addition, it performs conciliation functions between the two.

The objective of this area is to propose strategies to strengthen the organizational culture. In this way, it contributes to creating a healthy environment, which generates a greater increase in productivity and employee commitment. Therefore, this would imply a reduction in turnover costs and new hiring processes for the company.

For employees

The tasks performed by organizational psychology are responsible for helping to solve problems more efficiently. On many occasions, they even have the help of the employees themselves so that they feel part of the solution.

In addition, this area also reflects an improvement in the quality of life of employees. Psychologists try to know their preferences and promote measures that allow them to opt for a greater reconciliation with their personal life, career plans, relationship with their co-workers, etc. allowing them to be more comfortable with their work.

5 main areas of organizational psychology

The main areas of organizational psychology are:


Organizational psychologists help the human resources department in the development of the hiring and personnel selection processes. This includes the development of job advertisements, the definition of key qualifications and the development of selection evaluations. 

Employee training and development

Industrial psychologists conduct job analyses in which the skills and abilities needed to perform a specific job effectively are determined through innovation management. The information and insights gained from these analyses are used to develop and evaluate employee skills development and training programs. 

Employee satisfaction and work-life

Organizational psychology deals with job satisfaction, work motivation, health, safety, and well-being of employees. 

In this sense, the role of this area of ​​psychology is to assess the well-being and happiness of employees at work and to find ways to improve the work environment, as well as to apply programs to reconcile work and family life, if necessary. if necessary. 

performance evaluation

Organizational psychology helps organizations measure and manage employee performance by developing and conducting performance appraisals, identifying skill gaps, and providing feedback and recommendations. 

The information obtained from these evaluations is often used to inform decisions regarding compensation and promotions.

Organization development and management

Organizational psychology is also concerned with organizational structure and performance. An organization requires this area to determine the degree of efficiency, productivity and profitability and to help make decisions related to the work culture and structural changes within the organization.

Useful tools for organizational psychology

Now that you know what organizational psychology is and what its benefits are, we will present you with 4 key tools to put it into practice in your organization:

DISC Assessment

The DISC methodology assesses an individual’s personality across four behavioural categories: dominance, influence, assertiveness, and conscientiousness. In this way, the DISC assessment helps employers in three ways: during recruitment, training and in the resolution of interpersonal conflicts. 

For example, when interviewing a candidate, his or her personality profile can suggest if he or she is a good fit for a certain job. When training an employee, teaching can be tailored to her learning style. If problems arise between employees, understanding their behavioural dynamics makes it easier to negotiate.

Hogan Personality Inventory (HPI)

The Hogan Personality Inventory (HPI) identifies talented people using two criteria: their bright demeanour and their strengths at work. 

Using the Hogan Personality Inventory interviews are more efficient, matching candidates with roles where their skills can shine. 

By bringing in people who fit the company culture, better teamwork is likely to occur. In addition, training programs can target the needs of staff, furthering their careers.

Occupational Personality Questionnaire

This tool assesses suitability for a specific position, team and work environment. Of the various test versions available, the OPQ32 is the most complete, as the questions are designed to assess 32 personality traits relevant to the work environment. 

The answers reveal the style of work of each one in three areas: thinking, feelings and relationships. Employers use the questionnaire for recruiting, team building, and preparing future leaders. 

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