Part 1 Business Psychology

7/28/2019 Part 1 Business Psychology

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Management 203

Business Psychology (Part 1)


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Fundamentals of Business PsychologyChapter 1

Learning Objectives:

1. Define the term Business Psychology andexplain what it means;

2. Describe several branches of Psychology;3. Describe the different Schools of Thought

within Psychology;

4. Explain the importance of research inPsychology;

5. Understand why it is helpful to studyBusiness Psychology even if you have a highdegree of common sense.


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What is Business Psychology

Business Psychology - refers to theapplication of organized knowledge abouthuman behavior to improve personalsatisfaction and productivity on the job.

Psychology deals with emotions of differentcharacters of an organization or business

society circle which includes producers,employers as well as customers


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Business Psychology which is also known as Organizational or Industrial Psychology concerns theapplication ofpsychological theories, research methods, andintervention strategies to workplace issues. Businesspsychologists are interested in making organizations

more productive while ensuring workers are ableto lead physically and psychologically healthy lives.


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Different Branches of Psychology

1. CLINICAL AND COUNSELING PSYCHOLOGY Work with individuals or small groups to help them

overcome personal problems.

Diagnose mental illness.

2. EDUCATIONAL PSYCHOLOGY Involved in developing effective methods of teaching,

test construction and the use of educationaltechnology.

3. CHILD AND DEVELOPMENT PSYCHOLOGY Study the behavior and growth patterns of people

from pre-natal period through maturity and old age.


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4. EXPERIMENTAL PSYCHOLOGY

Can be considered the most scientific of allpsychology

5. ERGONOMICS (OR HUMAN ENGINEERING/FACTORS)

A combination of engineering and psychology Attempts to design machinery, equipment and thework environment to fit human characteristics, bothphysical and mental.

6. INDUSTRIAL AND ORGANIZATIONL PSYCHOLOGY

Designs employee selection method (such as test andinterviews)

Training and developing employees at all job levels Improving teamwork and cooperation in organizations.



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7. POLICE PSYCHOLOGY

Provide counseling services, teaching, researchand management consultation in regard to crimesituations.

8. SPORTS PSYCHOLOGY

Helps athletes achieve peak level performanceon the field.

Provides relaxation, game enhancement andvisual imagery techniques to players to build self-

confidence, control and concentration. It involves the study of how psychological factors

affect performance and how participation in sportand exercise affect psychological and physicalfactors



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SCHOOLS OF THOUGHT IN PSYCHOLOGY

1. STRUCTURALISM AND FUNCTIONALISM

Structuralism (Wilheim M. Wundt). Aimed todiscover the structure of the mind by analyzingconscious experiences of the senses andreducing it to its basic elements.

Introspection - the method of looking into onesconscious experience .

Functionalism (William James). To understandthe functioning of the mind, he extended thenarrow limits of structuralism to the study of many

topics that are still of current interest, includinglearning, motivation and emotions.

Your mind is like an iceberg, the part with thegreater impact is the hidden part (thesubconscious).


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2. BEHAVIORISM

Behaviorism (John B. Watson). The key tounderstanding human beings is to study actualbehavior, not inner states.

Everything we do is determined by our pastexperiences, and not by an ability to control ourown destiny. It studied the conditioning processes

that produce behavior.

Modern Day Behaviorism (Burrhus F. Skinner).Behavior is shaped by environmental influences,not internal ones.

Law of effect rewarded behavior tends to berepeated, while behavior that is ignored orpunished tends not to be repeated.


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3. PSYCHOANALYSIS (Sigmund Freud & Carl Jung)

People are born with powerful biological appetites andpassions that demand constant satisfaction despite theneeds of others or themselves. We must learn to controlour inborn desires and achieve their fulfillment in waysthat are harmonious with others.

According to Freud, the structure of the human personality wasconsisted of three major forces interacting with each other:

1. Id - unconscious instincts such as sex and aggression.

2. Ego the conscious, rational self, or intellect.

3. Superego the social rules and values of society that govern ourbehavior.

The healthy personality has an ego that does an effective job orcoping with the urges of the id and the restrictions of the superego.


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Psychoanalysis was focused on understandingthe unconscious motivations that drive behavior


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4. COGNITIVE PSYCHOLOGY

The mind processes information by producing newthoughts, making comparisons and makingdecisions. Our perception of events influences our

actions.

5. HUMANISTIC PSYCHOLOGY (Abraham Maslow)

Emphasizes the dignity and worth of people, alongwith their many other positive, but intangible or softattributes. Humanistic psychology was instead focusedon each individual's potential and stressed the importanceof growth and self-actualization. The fundamental belief ofhumanistic psychology is that people are innately goodand that mental and social problems result from

deviations from this natural tendency.


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THE HUMAN RELATIONS MOVEMENT

A concentrated effort by some managers and their advisors to

become more sensitive to the needs of employees or treat themin a more humanistic manner.

Itis defined as a movement in management thinking andpractice that emphasized satisfaction of employees basic

needs as the key to increased worker productivity.


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1. The Threat of Unionization The Wagner Act of 1935 legalized union-management

collective bargaining, promoting the growth of unionsand union avoidance by firms. Early human relationsthinking presented this possibility: Satisfied employeeswould be less inclined to join labor unions.

2. The Hawthorne Studies (1924)

The studys results that productivity was stronglyaffected by workers attitudes turned managementtoward the humanistic and realistic viewpoint of the

social man model.



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3. The Philosophy of Industrial Humanism

Elton Mayo - emotional factors (such as a desirefor recognition) were more important contributor toproductivity than were physical and logical factors.

Mary Parker Follett - The key to increasedproductivity was to motivate employees, ratherthan simply ordering better job performance.

http://www.brad.ac.uk/university/newsand%20views/95-06/Mary_a_prophet_of_management.html


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1. Case studies. Case information is usually collected by

an observer recording impressions in his mind or on anotepad. Cases provide a wealth of informational thatcan be used to explain what is happening in a givensituation.

2. Laboratory experiments. The most rigorous research

method. The essence of conducting an experiment ismaking sure that the variable being modified (theindependent variable) is influencing the results. Theindependent variable (such as a motivational technique)is thought to influence the dependent variable (such asproductivity).

3. Field experiments or studies. Attempts to apply theexperimental method to real life situations. Informationobtain in the field is often more relevant than thelaboratory.

METHODS OF PSYCHOLOGICAL RESEARCH

Part 1 Business Psychology

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Transcript of Part 1 Business Psychology