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Organizational psychology is a branch of psychology that works on the principles of psychology in any workplace which helps in improving the effectiveness of the organizations and employee relations within the organization. Hence, it is one of the very popular branches of psychology. The industrial psychology revolves around the study of employer-employee relationship, the causes and prevention of various conflicts that occur, the morale of the employees, problems of employee’s frequent absenteeism and labor strikes, the value of financial and non-financial incentives and last but not the least, all the factors that contributes toward influencing the overall work efficiency of the employees within their organization.
Whereas on the other hand, Organizational psychology helps in determining the various principles in the selection of employees, training, developing and counseling employees, improving the level of their work motivation, managing conflicts between the management and the employees and improving the overall organizational culture. The human assets and its recruitment for improving organizational efficiency represent the major goal of the organizational psychologists . It is a not wise to underestimate the effect of the organizational leadership on the employee’s performance because the quality of relationship between employee and his manager is the most powerful determinant of job satisfaction.
Working for some professional, positive and respectful boss attracts the likelihood that employee will also adopts to a similar work practice and will enjoy and contribute his work and if the boss is not professional, negative and unreasonable then the impact on employee would be very negative. It seems like a trigger down effect, where boss should expect what he is delivering to lower management level in an organization. The relation among leadership performance, leadership strength and happy employees is easily pointed out as happy, energetic and loyal work force and others are most likely to associate their experience with company growth.
Contrary to good leadership, the consequences of poor leadership are very devastated and could cost organization in both a directly and indirectly manner. Besides poor productivity, the greatest cost of poor leadership is group of unhappy employees coupled with lost opportunity costs and time. This is an ultimate waste of resources spent on staff’s improvement and their morale that could lead to negative impact on co-workers across the organization< http://www.leadingforloyalty.com/support-files/howpoorleadershipimpactsemployeemotivation.pdf>. Organizational psychology focuses more on employee satisfaction and motivation, as employees are the main internal customers of any organization.
To measure an employee’s level of satisfaction, it is important to first measure the individual’s work behaviors and results related to job expectations through performance evaluation. Performance evaluation is frequently used in overall analysis of the performance management. Whereas on the other hand, performance management is related to an employee’s performance information which can be analyzed for further improvement through coaching or mentoring to satisfy the employee at the best possible
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