UNIT - I
INTRODUCTION TO BUSINESS
PSYCHOLOGY
PSYCHOLOGY
•The American Psychological Association
• Psychology is the scientific study of the mind and
behavior
•Crow and Crow
• Psychology is the only study of human behavior and
human relationship.
•B.F.Skinner,
• Science of behavior and experiences of human
beings.
BUSINESS PSYCHOLOGY
•Business Psychology is an applied
science that investigates how to make
people and organisations more effective
BUSINESS PSYCHOLOGY
• Business psychology combines advanced
business practices with the study of human
behavior to improve the productivity, efficiency
and culture of workplaces.
• Modern day business psychology finds its roots
in industrial psychology, which originated in the
United States in the early 1900s. Its practical
application took off in the wake of World War I
and World War II.
Scope Of Business Psychology
Marketing
Talent
Personnel
Recruiting &
Development
Management
Human Executive
Engineering Leadership
Productivity
SCOPE Personnel
Study Selection
Organizational
Management
Culture
Change
Management
• Marketing: Marketing professionals apply psychological principles in new product or service
marketing. Business psychology helps them understand consumer behavior, develop motivational
messaging and create compelling marketing campaigns to convert customers.
• Talent Recruiting & Management: Business psychology helps human resource professionals
differentiate job applicants using behavioral science methods. It also teaches them motivational
coaching techniques to improve employee performance.
• Executive Leadership: Business leaders can use psychology tools to assess the business
intelligence of an organization and create processes that stimulate innovation and productivity.
• Change Management: Change can be a difficult process at any organization. Whether moving to
a remote workforce or addressing ethical challenges, understanding human behavior can help
managers anticipate and mitigate workforce issues.
• Organizational Culture: Defining a corporate culture helps organizations develop long-term
strategies, hire the right people and grow their brand. Understanding the value of neuroscience
tools in the workplace can build a long-lasting and powerful corporate culture.
• Personnel Selection-Selection of employees, executives, for various jobs. Developing the
instruments of personnel selection by conducting relevant research.
• Personnel Development - Developing the methods and means of the appraisal of the
performance of employees, executives, etc. Developing the methods and procedures of measuring
attitudes of employees. Developing the methods of effective management and management of
personnel, Employee counseling - helping employees to better adjustment with themselves or their
environment.
• Human Engineering-Suggesting changes, innovations in the designs of machines, and equipment
and operations with a view to achieving greater ease in operation, with least possible expenditure of
human energy.
• Productivity Study - Activities concerned with lessening worker fatigue, improving environmental
conditions such as lighting, ventilation, working arrangements, etc., with a view to maximizing
efficiency.
• Management- Activities involving development of management skills and other activities related to
management.
RESEARCH IN BUSINESS PSYCHOLOGY
Statement of the problem
Design of the research study
Measurement of variables
Analysis of data
Conclusions from research
CONTEMPORARY ISSUES AND CHALLENGES
Digital
Work World Work Life
Force Balance of the
Diversity Employees
Improving Skills Change
Management
ISSUES AND
Quality CHALLENGES
Improvement Ethical
and Total Dilemma
Quality
Management
Gender
Discriminati Employee
on and Empowerment
Sexual
Harassment Globalization
