Psychology Study and Its Application in Business

One of the main challenges in business is successful human resource management. Entrepreneurs and executives must find the balance between employees’ needs and organizational performance, thus selecting appropriate strategies and tactics of human resource management. Understanding human psychology in greater depth could assist me in becoming an agent of change related to solving the identified challenge.

First of all, psychology is essential for understanding the differences between individuals and the factors shaping them. For instance, various developmental theories have been developed over the years to highlight how people’s personalities, values, and motivations change throughout their lifespan (Cherry). Understanding the forces that can influence individuals can help to learn more about the differences between employees that could affect their responses to specific management practices and strategies.

Differences between individuals are also essential prior to employment when selecting between two or more candidates. Business owners and managers often need to hire employees with specific traits and characteristics that would help them to be more effective in a particular position. Technical workers usually need to be diligent and detail-oriented, whereas customer service workers need to have excellent communication skills and be open and friendly towards everyone. Still, it is often difficult to identify these qualities during interviews and based on CVs because applications might exaggerate their achievements or past experience to make themselves more attractive to the employer. Psychology could help me to look beyond appearances and to understand what people’s past experiences and achievements actually mean. This, in turn, will help me to hire applicants who are best suited for the job, which would contribute to resolving the challenge of human resource management.

Secondly, psychology is at the foundation of human resource management because various theories of motivation draw on psychological knowledge. For example, Maslow’s hierarchy of needs is widely applied in business management, but it stemmed from research into human psychology (Güss et al. 2). Knowing the foundations of psychology is helpful to business owners who wish to develop and enhance their workers’ performance by applying relevant strategies and techniques. Furthermore, research in management often applies psychological theory to explain or examine certain phenomena. In this context, the knowledge gained from the course will help me to understand research reports better, thus improving my approach to management through evidence-based techniques.

Thirdly, psychology is useful for establishing and maintaining relationships with various people, which is crucial to solving the challenge of human resource management. On the one hand, individuals who understand psychology have a better grasp of people’s feelings can recognize when a person’s needs are not fully met. This can support managers in forming better relationships with employees, solving workplace issues, and improving the work environment. On the other hand, the field of psychology includes various theories that can assist in addressing specific issues that damage relationships between employees and reflect poorly on performance. For example, psychology can assist in mediating conflicts and reaching common ground, which is vital to maintaining a healthy workplace environment.

On the whole, human resource management is a major challenge in a business that necessitates understanding diverse individuals and interacting with them. The knowledge obtained from the course will help me to balance individual and organizational needs in my future management role. Some examples of where psychology might be particularly useful are evidence-based management, motivation, and conflict management. Applying psychological theories and techniques will assist me in leveraging human resource management practices and creating a happier and more productive workforce.

Works Cited

  1. Cherry, Kendra. “Child Development Theories and Examples.” VeryWell Mind, 2020. Web.
  2. Güss, C. Dominik, et al. “The Role of Motivation in Complex Problem Solving.” Frontiers in Psychology, vol. 8, no. 851, 2017, pp. 1-5.

Reference

PsychologyWriting. (2022, February 6). Psychology Study and Its Application in Business. Retrieved from https://psychologywriting.com/psychology-study-and-its-application-in-business/

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