Industrial/Organizational Psychology

In today's society we have a formalized version of the group that works together, as if one body, under the control of a powerful leader. It is called a corporation. At its worst, a business might resemble a sinister charismatic movement, with goals and firings at the whim of its leader, demonization and dirty tricks aimed at enemies, and fanatical devotion to a cause even if it harms innocent people. The history of American business is littered with such sinister cult-like corporations, especially in the 1800s and early 1900s.

In the most recent 100 years, corporations have been tamed in key respects. Partly because of earlier abuses under laissez faire (unregulated) conditions, corporations were effectively regulated and brought under control of democratic governments in the early 20th Century. This allowed them to become more efficient and larger than ever, sometimes truly global in scope. Wal-mart, for example, has a budget that would place it among the top ten nations in the world. Today businesses and corporations have the power to transform nations—and political strategies. Nations with interdependent economies generally do not make war on each other.

Several branches of psychology deal directly with businesses and corporations. Industrial/Organizational psychology specializes in the analysis of leadership, decision-making, and control of organizations. Human factors and engineering psychology examine the interface between humans and technology. Consumer psychology is devoted to analyzing the needs and desires of consumers, and personnel psychology aims to keep employees healthy, happy and productive.

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