What Is Business Psychology?
You’ve heard of business studies; you know what psychology stands for – but you’re still wondering what exactly business psychology is. Don’t worry, we’re here to help you figure out exactly what this is and why it’s an excellent area of study for busy professionals. There are plenty of things you can do with a graduate certificate in business psychology or a degree, but you can’t study it without knowing exactly what’s expected of you! So, without further ado, let’s get right into answering this all-important question.
What is Business Psychology?
The definition of business psychology is the study of human behaviour within business practices to analyse and improve productivity, efficiency and the business environment as a whole.
Businesses rely on humans to operate, and the way the workers feel about their jobs can significantly alter productivity. There’s a reason why morale and team spirit are so important in businesses, and business psychology can go a long way in showing you the best way to improve this.
Business psychologists are not prevalent in every industry, but many who adopt this approach often see a rise in productivity and team morale, as well as a reduction in employee turnover, absences, and disgruntled employees.
How Does Business Psychology Differ From Business Psychology?
Psychology is an umbrella term and has plenty of branches that you can follow, but many people who aren’t studying psychology often associate it with one thing: clinical psychology. This is the study of mental health and the diagnosis of disorders such as anxiety and depression, and it could not be further from business psychology if it tried. However, if you tell someone you’re studying business psychology, you still might get the classic questions like “Are you going to ask me about my childhood?”
In reality, business psychology has very little to do with mental health. Instead, you’ll focus on businesses and how their processes affect their employees rather than their numbers. While the business majors are looking to see how they can improve the company’s profits and efficiency, you’ll be looking at how the employees are reacting to the current workplace conditions.
What Exactly Do Business Psychologists Do?
As a business psychologist, you’ll be responsible for examining employees and how they work in their current environment to increase productivity within the workplace. This isn’t designed as a way to scare workers into performing better while you’re watching them, as this will only decrease morale in the long run. Instead, you’re looking for ways to improve the workplace so that they can effectively improve productivity with long-term solutions.
Before determining what tools will best serve your aims, you’ll need to consider the workplace environment, goals and strategies, and individual employees.
Business psychologists take their time analysing the business before being able to implement a solution, as this gives you the best chance of effectively turning the business around for years to come. Some even work as a company’s last point of action before declaring bankruptcy or liquidation, so it’s a vital job!
How Business Psychology Can Be Used In Organisations
There are many ways a business psychologist can influence a business, and you’ll often find that this subject can be used in every facet of the organisation. We’ve included just a few of the ways business psychology can be used in most companies below:
- Marketing
- Business professionals can use psychology and its principles when developing a new marketing strategy for certain plans or services. Business psychology can help them understand consumer behaviour to create the best possible marketing materials, which can hopefully improve sales and consumer interest.
- Talent recruiting
- Business psychology is often used in human resource management to help separate the best job applicants from the rest. They can do this by seeking out behavioural science methods to indicate who will be the best fit for the job, as well as using motivational coaching techniques to hopefully improve the new employee’s performance.
- Managing change
- Businesses will always react to change, but it’s down to the individual organisation as to whether they react positively or negatively. Understanding human behaviour can help leadership forecast what’s about to happen within the company, so they’re not so blind sighted when it comes to the changes occurring. Business psychology can help to mitigate employee issues before they even begin.
Final Thoughts
Business psychology is an interesting field to go into when it comes to choosing your area of study, and it’s often one of the most misunderstood ones. Instead of learning about clinical mental health disorders, you’ll be learning about how businesses work while observing employee human behaviour. It gives you the opportunity to learn the best of both fields, bringing them together to improve businesses for the better. Good luck!
