How psychology helps in business

1. Business Psychology:
Business psychology is booming. It is becoming more common for leaders in the
business world to consult psychologists in order to improve the ability of organizations to
function effectively, grow and solve complex problems.
A career in business psychology offers a great deal of opportunities, and
somebody with a background in this field will have many different options to choose
from in a career. Some of the fields related to business psychology include consulting,
human resources, management solutions and organizational development.
Students who pursue a degree in business psychology will find themselves being
educated in several different fields. They will learn about the theory of human
organizations, as well as some of the research that is currently underway in the field. This
will give them the ability to select personnel, perform interventions and assess and
develop organizations. They will also gain knowledge of research and statistical analysis.
This will give them the ability to approach problems from a rational perspective in order
to devise solutions that are more likely to work based on previous research.
Furthermore, students of business psychology will learn how to create and
properly administer surveys in such a way that minimizes bias. They will gain an
understanding of performance management systems and selection systems. In addition to
this, many of the programs will also expose students to communication and interpersonal
skills so that they can operate more effectively in a business environment. This includes
the ability to resolve conflicts, communicate effectively, network, strategize, train others
and develop ideas with coworkers.
How Psychology Helps in Business:
Job Analysis
This is when a job is analyzed from a psychological angle. It can either be used to
identify workers who are best suited to a job or to identify ways of changing a job so that
workers can perform it more efficiently. The two are not mutually exclusive.

2. Personnel Recruitment and Selection
Business psychologists may work with the HR department to find and identify
individuals who are best suited for particular jobs. They may also work together to
determine where those who are best suited for the job are likely to be found.
Psychologists can prevent organizations from making costly recruitment mistakes
by identifying top talent who will not only help the organization through leaner times but
also enable it to come out of the downturn in a stronger position. Business psychologists
offer organizations a layer of information that often goes beyond standard interviewing
processes.
Acute understanding of different types of intelligence and the affect of personality
on corporate and leadership behavior can be fed back to employers. Furthermore, an
understanding of the effect of corporate culture on staff enables expert advice to be given
on the best ‘fit’ of your prospective candidates.
Organizational culture
Whilst many organizations will be focused on immediate challenges, such as
short-term budgeting and restructuring for survival, it is also important to maintain a
long-term perspective. At a time when many organizations are looking to cut costs
through redundancies and pay rises that are below inflation, it is vital that you protect the
culture that has been created and make the organization an attractive place to work.
Development
Investing in staff through personal, managerial and leadership development will
not only help organizations to retain their top performers but also attract talent in the
market. Such provision provides a competitive advantage to attracting these people, who
increasingly expect such organizational support as part of their package. Furthermore,
succession planning and maintenance and development of future leaders can be
addressed.
Pain points
Several recent London surveys have confirmed that the majority of us are scared
of losing our jobs, and employees are often stretched to capacity, working long hours and
doing the jobs of two or three people. The fear of an unstable economic climate can
severely reduce core leadership skills and at worst can create a paralysis and lack of
productivity.

3. Business psychologists have the knowledge to deal with and tackle the ‘pain
points’ within a business to significantly reduce levels of stress and tension.
Consequently, the organization can be in a better state to innovate and formulate
solutions to its current challenges. Executive coaching offers senior leaders the
opportunity to develop the ‘soft skills’ that are required to engage and re-motivate
employees, as well as build their own resilience to lead others through times of change.
Downsizing
Many organizations may also be forced to consider a downsizing strategy. In
redundancy situations it is important to make informed and timely decisions,
communicate clearly, and treat people respectfully. Psychologists are well placed to offer
career transition coaching to exiting staff who may be distressed and needing support in
their job search.
Offering such services can facilitate the job termination process and result in a
mutually beneficial outcome. Negative feedback from exiting staff can be minimized,
legal complications avoided, and the opportunity made available to collect valuable exit
interview data.
Performance Management
This is when an individual’s behavior is weighed against what would be most
effective for a job. Performance management is implemented by using feedback in order
to improve productivity.
Individual Assessment
This is used to assess differences between individuals that can be used to select
employees for particular jobs.
Compensation
Business psychologists may analyze a job to determine the appropriate level of
compensation in order to attract the most effective employees.
Training Applications
Job analysis and structural design can be used to determine how best to train
individuals for a given job.

4. Group Behavior
This is the study of how individuals function as a collective, and it can be applied
in order for teams to operate more effectively.
After all Psychology helps business and which helps can make a
business successful one.
Thank You