The rapidly growing global market conditions and the corresponding expansion of various market and economic variables and the global stage dramas played by various world powers to accumulate capital and establish their economic control over other countries (i.e. economic imperialism) and widening growth of the income disparity of the developing world, sets a perfect platform to initiate a broad discussion about the “human factor” which works in industries who generate the necessary capital to make countries rich and poor. When some selected businesses get richer and richer marginalised workers continuously are confronted with the grave issue of Alienation. It is the author’s contention here to highlight the inadequacy of Industrial Psychology, the capitalist framework designed to deal with Alienation through a comprehensive discussion of Marxist principles and Industrial Psychology-proper. The paper will argue showing the evolution of Industrial Psychology as a distinct academic discipline that the persisting problem of alienation will continue to exist until political solutions are provided for wider class issues.