PGDM Batch

2018-20

Dr. priyanka p. rotey

 Scientific study of human behavior and mental
process and how they are affected by an:

 Organisms
 Physical State
 Mental State
 External environment

Is the science of the human behavior,

cognitions, emotions, and motivation
 Business is a primary social institution in our
society.

 It is defined as the sum total of the organized

efforts by which the people engaged in
commerce and industry provide the goods and
services needed to maintain and improve the
standard of living and quality of life to which
each of us may aspire
The use of psychology in business can allow you
to motivate your employees, hire intelligently,
expand and grow, negotiate contracts
effectively, improve your staff’s performance,
market better, bring in more customers, and
realize your goals.

Psychology is a phenomenon. Its role in

business administration and management is
ever-evolving and growing in importance.
“Business Psychology is the study and
practice of improving working life. It
combines an understanding of the
science of human behavior with
experience of the world of work to
attain effective and sustainable
performance for both individuals and
organizations”
 Business Psychology a relatively branch of
psychology.

 Is the study of the effectiveness of interpersonal

relations in the workplace.

 Some business psychologists set up training

workshop to improve executive’s management
skills. They also evaluate job
applicants and evaluate individuals
being considered for promotions
 The study of human behavior includes a broad area.

 Research on eye, ear or brain functions relates

closely to psychology and neurology.

 Studies of attitudes, opinions and propaganda are a

kin to sociology and other social sciences.

 Between these extremes, the majority of

psychologists work at understanding the abilities,
emotions, motives, memories and whole
personalities of children, adolescents, and adults
both normal and abnormal.
 Because psychology includes such varied material,
several specialized subdivisions have developed.

 In some of these fields emphasis falls on facts,

principles and theories rather than on application.

 Psychologists devote their lives to the study or

application, or both, of findings organized about a
particular field or branch of psychology
 Introspection Method – a subjective method of
observation which was introduced by St. Augustine
The psychologists studies himself,
records his own feelings and experiences and later
interprets them.

 Observation Method - is a visual and oral method

of examining, describing, and interpreting the
reactions of individuals and groups in a laboratory,
classroom, or out-of-school situations
Several kinds of observations:

 Uncontrolled or informal – this method of

observation does not follow any particular scope of
behavior to be observed.

 Naturalistic Observation – an observation of

things as they naturally happened is the naturalistic
observation method.

 Controlled or formal observation – follows

certain rules, in gathering materials in order to
draw the best conclusion.
 Psychology has made great strides in the
development of principles and methods and the
discovery of facts which find useful application in
various aspects of everyday life.

The objectives of psychology are:

 To understand human behavior.

 To predict human behavior by means of observation
and experimenting.
 To influence or alter the behavior of the individual
or group in desirable ways so that he can achieve
the goal he desire.
Business psychology involves applications of
psychological facts and procedures to market
research, advertising, salesmanship, and
selection of employees.
 To help the students use insight more and trial-and-
error less in attempting to discover the solutions to
human problems.

 To apply the knowledge of psychological facts and

principles about human nature to the different aspects of
business and industrial activities such as
correspondence, selling, and advertising.

 To help the students in knowing how to work efficiently

and how to get along with other workers.

 To give the students an idea of the psychological

methods of obtaining data such as the observational,
experimental, and clinical methods.

 Business psychology is regarded as the most practical

and effective instrument in buying, selling, collecting,
and adjusting whenever human element is present
 Understanding Basic Psychological & Scientific
Principles

 Critical thinking

 More Effective in the Workplace

 Understanding of Relationships and Well-Being

 Improves Employability.
Understanding Basic Psychological & Scientific
Principles:-

Psychology as a social science relies on the

scientific method. Although Psychology’s emphasis
on research methods and statistics turns many
Psych majors off (these are the least popular
courses in surveys of psychology graduates), years
later, Psych graduates say that research methods
and ability to interpret statistical results are the
biggest contributors to their career success,
regardless of whether they pursued a career in
psychology or elsewhere.
Critical thinking :-

A great deal of psychological content, and the

methods taught and used by psychologists, focus on
how to think critically. Critical thinking is
considered to be essential to being an educated
person, and is often a general education
requirement in colleges. Psychology courses
develop the critical thinking skills that are
important in business, law, and other professions.
More Effective in the Workplace :-

Industrial-Organizational Psychology (one of

the top-10 highest paying professions) focuses on
understanding human dynamics in the workplace. A
knowledge of human behavior is one of the ‘selling
points’ for Psych majors when it comes to gaining
employment, and a knowledge of basic psychology
makes you a more effective supervisor/manager.
Understanding of Relationships and Well-Being:-

Although studying psychology doesn’t

necessarily make you psychologically healthier (any
more than studying medicine makes you physically
healthy), Psych majors do have this knowledge at
their fingertips and should be more aware of the
fact that good interpersonal and family
relationships require attention and work. Psych
majors should, at least, know where to go when
they need counseling or psychotherapy.
Improves Employability:-

Contrary to popular belief, Psychology is a very

good, general major for careers in law, social services,
education, business, and many other occupations. The
trick is knowing how to “sell” your Psychology degree
and background to a potential employer (the employer
may hold to stereotypes that Psychology is an ‘empty’
major without real skills). However, savvy employers
(and savvy job applicants) know that an understanding of
human behavior is essential to success in the workplace,
and this needs to be emphasized as an important, and
employable, competency.
 Practitioners of Business Psychology typically work in
the following ways:

Advise Delivery Evaluation

Diagnosis Design
 Advise - as independent professionals who can be
trusted to offer an unbiased, scientifically credible
perspective, practitioners can advise on a wide range of
people issues at work – from careers to large scale
organizational change.

 Diagnosis – helping organizations to better understand

issues and challenges (e.g. high turnover and low
engagement), using social scientific research methods
to investigate human behavior at work
 Design – creating solutions to organizational
challenges (e.g. designing a psychometric tools or
assessment exercises to improve employee
selection)

 Delivery – implementing solutions to

organizational problems through facilitation rather
than by taking ownership of the problem for the
client

 Evaluation – demonstrating evidence of the

individual and organizational benefits of
interventions is a core principle of Business
Psychology.
 Business Psychology is the great importance to man
since psychological problems are common to group
relations, employer-employee relationships, and
others.

 In the case of businessman, the study of psychology

is of great advantage. It will help much in
determining the consumer’s behavior, motives,
attitudes, and the like. The businessman has to keep
in mind that the success and failure of business
depends greatly on how he deals with the
consumers.

 The facts of psychology are themselves applied, as

in the case of courtroom testimony. Legal
psychology involves applications in crime detection,
in the alleviation of delinquency, and in courtroom
procedure.
 Sole proprietorship (single)

 Partnership

 Corporation

 Cooperative
 When you want more (self)-understanding
of your behavior, of strengths and weaknesses,
of future development, of optimal career
choices.

 When you behave in ways that are self-

defeating over controlling or under
empowering abrasive, self-centered,
disorganized, angry or hostile, poor listener,
perfectionist or rigid, authoritarian too timid in
certain situations, distrustful or easily
threatened.
 When you need to deal with (difficult)
colleagues or employees
working with talented people who are difficult,
dealing with people above in the power
structure, dealing with people who are self-
centered or narcissistic, developing effective
relationships, leading and managing team
members
It is a division in which processing of raw
materials and manufacturing & trade of
goods take place.
 Organization is a group of people
who work interdependently towards
some purpose
 Usage of psychological
principles and theories to
the workplace.

OR

Study of how people get along

at work and are able to
perform effectively
Industrial and Personnel psychology

 HR stuff: recruitment, job analysis, selection,

training, performance appraisal, compensation,
employment law

 KSAOs Knowledge, Skills, Abilities and other

aspects related to job performance
Organizational psychology

 Micro: motivation, leadership, teams,

worker attitudes, safety & well-being,
work-family.

 Macro: organizational theory, culture,

organizational development & change
Human factors & ergonomics

 Modifying equipment

 Environmental Changes

 To fit workers need