What Is Business Psychology? A Deep Dive into This Thriving Field

In recent years, business schools have received a lot of criticism related to their lack of relevance, impracticality, growing costs, and use of outdated teaching methods.

Business Psychology combines advanced business practices with the study of human behavior to improve the productivity, efficiency and culture of workplaces.

At its core, every business is a human enterprise. Business success relies on positive human interactions, strong relationships and understanding individual motivations. From creating an internal culture and motivating employees to reaching and converting customers, understanding psychological principles can make or break a business.

It sounds straightforward, but what does this inter-sectional field look like in practice? Why is there a need for business psychology experts in everyday workplaces? We are here to help you better understand the field of business psychology and the career opportunities it offers.

Psychology vs. Business Psychology

At first, many people do not have a clear idea of what business psychology is.; you will usually hear the following reaction: "What? You are studying psychology. I will have to watch out for that! Can you look into my soul now? Do you want to treat me now and are you interested in my childhood?" The reason: Commonly, many people automatically understand 'psychology' to mean 'clinical psychology,' which actually deals with the diagnosis and treatment of mental illnesses, such as anxiety disorders or depression. However, business psychology has little to do with this. In a completely different way, the latter focuses on organizations and economies and all the processes there that have to do with people and not with numbers. Let us look at the exact meaning of business psychology.

Defining Business Psychology as a Field

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.

Today, the science of psychology is helping to redefine what makes a successful workplace.

Business psychology combines multi-disciplinary business study with the latest psychological and neuroscience research. Business psychology degrees explore traditional business and psychology disciplines in non-traditional ways, focusing on the qualitative and human aspects of marketing, economics, finance, management, and human resources.

What are business psychologists and what do they do?

A business psychologist examines employees and organizations with one goal in mind, which is improving the environment at work and increasing the productivity of employees. A business psychologist evaluates the company’s goals, work strategies, and employees in order to assess areas and tools for improvement.

Business psychologists use the aspects of business psychology first to analyses the issues within the company and then implement solutions accordingly. They use different ways and methods to collect information on employee behaviors, such as interviews, surveys, and polls.

They may also help human resource employees by assessing future candidates to ensure that they are the right fit for the role and the company and to pick the ones that share the same values, mission, and goals with the organization. Depending on the company or the specific position, business psychologists may also support in developing leadership and training programs, to help utilize the skills in the best possible way.

How Is Business Psychology Used In Organizations?

Human relationships are core to the success of any business. From employee to consumer interactions, no one understands this crucial aspect of business better than leaders of top companies who use business psychology to their competitive advantage.

Business psychology can be used in every facet of business. Let us look at the influential ways business psychology is used in organizations in every industry.

• 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.

The Role of Business Psychologists: What They Do

Business psychologists have a variety of responsibilities within their organization. Due to their influential role in employee management, emotional intelligence and dedication are leading traits in this career choice.

Day-to-day responsibilities may vary by role or department, however, all business psychologists need to be equipped to complete the following tasks:

• Increase business efficiency and employee productivity.
• Establish employee training and development programs.
• Provide motivational leadership and coaching for employees.
• Perform employee evaluations.
• Improve organizational structure to meet business goals.
• Enhance workplace safety and employee well being.

As a business psychologist, you can expect any of the following tasks:

• Assist with employee hiring process
• Increase business efficiency.
• Create a positive work environments.
• Establish employee training and motivation.
• Perform employee appraisals and evaluations.
• Provide employee counseling.
• Improve employee morale.
• Organize and manage initiatives for the overall health and well-being of employees.
• Improve organizational structure.
• Provide leadership development.

Here are 15 careers to consider in business psychology:

• Human Factors Specialist.
• Industrial Counselor.
• College Professor.
• Human Resources Executive.
• Market Research Analyst.
• Marketing Executive.
• Corporate Consultant.
• Industrial-Organizational Psychologist.
• Recruitment or Training Specialist.
• Sales Representative.
• Employee Retention Consultant.
• Customer Relationship Specialist.
• Professional Development Coach.
• Customer Service Manager.
• Change Management Specialist.

Check out our courses for organizational behavior, for more Studying business psychology, which allows you to broaden your horizons.