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Business psychology:

Business psychology is the application of clinical psychologys traditional knowledge and skill base to people working in business settings. Business psychology is about people who do the work for corporations of all sizes including one persons corporations.
Industrial and Organizational Psychology is a branch of psychology devoted to organizations and the workplace. "Industrial-organizational psychologists contribute to an organizations success by improving the performance and well-being of its people. An Industrial organization psychologist researches and identifies how behaviors and attitudes can be improved through hiring practices, training programs, and feedback systems. Business psychology has two paradigms, as evident in its name. Organizational psychology is commonly associated with interactions between workgroup members, leadership, management, and other aspects of task-oriented group mentality and behavior. Industrial psychology focuses more on individual differences, such as the use of personality or intelligence tests for personnel selection. Business psychologists are interested in making organizations more productive while ensuring physically and psychologically productive and healthy lives for workers. Business psychology is all about maximizing the prime asset of any organization - its people. Thesis achieved by
recognizing the impact behavioral issues have on the bottom line of any enterprise and creating the most synergistic balance through education, information and teamwork. Business psychology operates at four different levels.

Organization effectiveness 1. Team 2. Inter personal 3. Inner personal

Use of Business Psychology in industrial organization:


1. When we want more understanding of our behavior, of strengths and weaknesses,
of future development, of optimal career chooses.

2.When we 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.

3. When we 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.

Importance of Business Psychology in industrial organization: Psychology is in essence the science of our personalities, and therefore
encompasses important information perception, emotion, cognition, behavior and the individual and collective unconscious. These aspects are directly tied to understanding how people react in business situations, with regard to how they perceive, interpret, and are likely to proceed to point of sale when interested in a product. Professionals in any field can take advantage of certain aspects of the science of psychology. It is smart to have an interactive marketing firm standing behind your business who understands the different personality types and how they correlate to your type of business. A good content and copywriter can incorporate writing techniques that entice the four personality types simultaneously, generating more business for your company. A talented web designer can design web pages tailored to grab the attention of the four different personality types, also driving more business to your company. It is always an additional talent to have a basic understanding of how the subconscious plays a role in human interaction and sales as well.

Methodologies in Organizational Psychology Industrial organizational researchers have increasingly employed a


technique known as meta-analysis. Meta-analysis is a methodology for averaging results across studies. It has been used to address research questions involving various levels of analysis (i.e., individual, group, organizational, and/or vocational). Although the use of meta-analytic methods is not without controversy, its more frequent appearance in the industrial organizational research literature has profoundly impacted the field. The most well-known meta-analytic approaches are those of Hunter & Schmidt (1990, 2004), Rosenthal (1991), Hedges & Olkin (1985).

Job analysis:

O ne of the tools industrial organizational psychologists commonly utilize in the


field is called a job analysis. Job analyses identify essential characteristics associated with any particular position through interviews of job incumbents, subject matter experts, supervisors and/or past job descriptions. Job analyses measure both worker facets necessary to perform the job adequately knowledge, skills, abilities, and other characteristics as well as unique facets of the job itself. Once a job analysis is complete, industrial organizational psychologists will typically utilize this information to design and validate systems to select new applicants, restructure employee performance appraisals, uncover training needs, and analyze fairness in employee compensation. Though a thorough job analysis takes time, resources and money, its benefits tend to outweigh the costs.

Psychologists are professionals seeking to address real-world issues or problems in the workplace. o As scientists, they derive principles of individual, group, and organizational behavior through research. o As consultants and staff psychologists, they develop scientific knowledge and apply it to the solution of problems at work. o As teachers, they train in the research and application of I/O Psychology

Organizational psychologists also may employ psychometric tests to measure the abilities
and personality traits of prospective and current employees. These tests are commonly used for

employee selection and other employment decisions. Employee attitudes such as morale, job satisfaction, or feelings towards management or customers are other commonly measured workrelated person variables.

Job Design
Two factors surface in the research of industrial psychologists as critical factors for eliciting the strengths of an employee: Adequate control and A challenging work environment. The most difficult situation for workers is one in which there is a high level of challenge but little control. When an employee is expected to perform at a high level but does not have much say about how the work is completed, is given too little time to complete it, or is not given the necessary material and support, the result is a very high level of stress. Placing workers under this kind of stress in the workplace is very expensive to the organization. These jobs also have high turnover rates. Employees who work for an extended time in these environments tend to develop attitudes of helplessness. The goal arising from Business psychology for employers is to match the employee with a job that allows them to be challenged without being overwhelmed, and to give them the support and flexibility they need to reach their goals and the goals of the organization. Not all employees will be challenged in the same way or at the same level. It is essential for the employer to be accurate in assessing the workforce if these benefits are to be realized. Psychological assessments are a powerful tool available to business for the task of matching the right individual with the right job. They can be useful during the hiring process but also are effective when considering promotions or forming teams.

Character, Common Sense and Intellect Three Individual Achievement Traits or learned behaviors if not traits,
according to The American Engineer in American Management and Organizational Development Science and founding father of Industrial and Organizational Psychology in the United States Of America -- Frederick W. Taylor--are: Character, Common Sense, and Intellect. Intellect without character Taylor pointed out makes many people end up in the jail/prison. And character without common sense or without intellect, it can become Puritanism or in other words just opinions without factual rational backing. It can become expecting people to believe anything just because somebody says it. It can become de-individuation a concept in Group Psychology which leads to cults where the individual loses his or her individuality.

Occupational health psychology

Occupational health psychology (OHP) is a relatively new discipline allied with both industrial/organizational psychology and health psychology. The ancestry of OHP includes industrial/organizational psychology, health psychology, and occupational health.
OHP has doctoral programs, journals, and professional organizations. OHP researchers and practitioners identify psychosocial characteristics of workplaces that give rise to health-related problems in workers. The problems OHP addresses are not limited to physical health (e.g., cardiovascular disease but also include mental health problems such as depression. OHP is also concerned with the development and implementation of interventions that can prevent or ameliorate work-related health problems. Another aim of OHP research that goes along with ensuring healthy workplaces is the economic success of organizations. OHP is also concerned with workplace incivility and violence, workhome carryover, unemployment and downsizing, and workplace safety and accident prevention.

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