What’s the Difference Between I/O Psychology and Business Psychology?

Psychology has so many areas of study: clinical psychology, forensic psychology, and educational psychology, and the list goes on.

We’ve highlighted some of the key differences between the two along with I/O and Business Psychology degree program options. The Chicago School offers industrial organization psychology programs and business psychology programs, providing options and opportunities for prospective students looking to enter the psychology world.

What Is Industrial and Organizational Psychology?

Industrial and organizational psychology, also known as I/O psychology, is the study of the workplace.

According to the American Psychological Association, I/O psychology pulls from ideas about decision theory, small group theory, and criterion theory, and applies them to real-world workplace situations.

This field focuses on analyzing employee engagement, company culture, retention, productivity, morale, and team building.

Industrial and organizational psychologists can work with individual employees, groups, management teams, and consultants on improving workplace processes.

For Dr. Jeremy Nicholson, a professor of behavioral economics at The Chicago School, I/O psychology is “a standardized skillset” that includes personnel selection, workplace training, business development, human resources, and consulting.

The I/O psychology programs available at The Chicago School prepares students for today’s complex business environment by learning organizational behavior, organizational culture and design, management, and leadership skills. This helps graduates develop organizational assessment, research-based intervention, and evaluation strategies.

• Industrial and Organizational Psychology
  • Industrial and Organizational Psychology Generalist Certificate
  • M.A. Industrial and Organizational Psychology

What is Business Psychology?

While I/O psychology focuses on more individual and personal workplace issues such as engagement and morale, business psychology applies psychological practices to big-picture areas.

These areas include corporate strategy, stakeholder relationships, market performance, and broader business operations. Professionals who are knowledgeable of this intersection between psychology and business use assessment and intervention skills to analyze high-level issues and provide recommendations to a business leadership team.

Business Psychology careers include consultants, program directors, and organizational development specialists. Often, business psychologists work with senior leadership teams, business owners, and board members.

The Chicago School offers different types of business psychology degrees and certificates either online or at our campuses, including:

• Business Psychology
  • B.S. Business Psychology
  • Ph.D. Business Psychology
    • Industrial and Organizational Track
    • Consulting Track

These programs prepare graduates to assume leadership roles in today’s global and multicultural business environment through the application of psychological principles. Students will learn to address complex workplace problems with their knowledge of business structure, human resource management, and behavioral sciences.

How Does I/O Psychology Overlap With Business Psychology?

Of course, I/O psychology and business psychology are clearly linked. Both work to improve the overall function, performance, and efficiency of businesses.

The merging of these two disciplines creates the possibility for professionals to establish themselves as authorities with multiple psychological foundations that are rooted in business-minded practices.  Professionals in I/O and business psychology are not only able to navigate business fields but also understand and describe the psychological nuance that drives individual behavior—and this makes them more versatile.

According to Dr. Jay Finkelman, a professor at The Chicago School in I/O business psychology and the department chair of the Southern California campuses, “they all fit under the same umbrella.”

This overlap is clear even in The Chicago School’s degree tracks. For example, you can pursue a business psychology degree with an industrial and organizational focus.

Finally, many I/O psychologists cover corporate strategy, and business psychologists analyze issues such as employee retention and productivity. All aspects of a business are intertwined, so it’s inevitable that two psychology fields that specialize in helping businesses succeed are intertwined.

Pursue an Education in Business Psychology

The Chicago School offers online and on-campus options for both Business Psychology and Industrial Organization Psychology programs. Both types of psychology degrees teach graduates skills that will prepare them to be professionally competent through science-based applications of behavioral sciences and a strong understanding of business structures and resources. Begin your business career with a comprehensive education from The Chicago School psychology programs.

Learn more about The Chicago School

Are you interested in learning more about The Chicago School’s Business Psychology Degree Programs? Fill out the form below to request more information, or visit our programs page. You can also apply today through our application portal.