Advanced information technology, globalisation and managing diversity are unquestionnably major issues facing the management of today’s organisations, but the management of “people”- the human resources of an organisation – have been, are and will continue to be, the major challenge. Trying to better understand, managing, training, developing and satisfying the people resouces of organisations will be the differentiting factor for successful and unsuccessful organisations by providing the critical competitive advantage.
Industrial psychology is a subfield of psychology in which psychological principles are applied to practical practical problems that people face at work and commerce. The first application of psychology to the problems of industries and organisations started with psychological testing for hiring and placement programs. Today, private and public organisations use assistance from psychologists to deal with problems of management, employee training, supervision of personnel, improving communication within the organisation, counselling employees, alleviating industrial strife and developing engagement and wellness programs for their employees.