The Application of Exploratory Factor Analysis in Applied Psychology: A Critical Review and Analysis

Although factor analysis has been a major contributing factor in advancing psychological research, a systematic assessment of how it has been applied is lacking. For this review we examined the Journal of Applied Psychology, Organizational Behavior and Human Performance , and Personnel Psychology over a ten‐year period (1975–1984) and located 152 studies that employed factor analysis. We then analyzed the choices made by the researchers concerning factor model, retention criteria, rotation, interpretation of factors and other issues relevant to factor analysis. The results indicate that choices made by researchers have generally been poor and that reporting practices have not allowed for informed review, cumulation of results, or replicability. A comparison of results by time interval (1975–1979; 1980–1984) revealed minimal differences in choices made or the quality of reporting practices. Suggestions for improving the use of factor analysis and the reporting of results are presented.