Business and Psychology

Business and Psychology
Modern psychology is divided into several sub disciplines, each based on differing models of behavior and mental processes. Psychologists work in a number of different settings, including universities and colleges, primary and secondary schools, government agencies, private industry, hospitals, clinics, and private practices. Recent years have seen a rise in the significance of applied psychology—as can be seen from the areas contemporary psychologists concern themselves with—with an attendant decline in the importance of psychology in academia. Businesses are increasingly recognizing the valuable contribution psychologists can make to their organizations. Psychologists primarily focus on helping businesses deal with people issues. They use particular tools and techniques to improve how businesses select their staff; design and shape the culture of their organizations; design jobs; help develop employee satisfaction and motivation; implement and evaluate leadership and training programs; provide career development
At present , psychology are directly impact on business and related issues . In every sector and sub-sector of business psychology played a vital role in overall aspect. There are some specialized sector of psychology, among them industrial psychology and social psychology are directly engaged and involved with business related activities. There are two equally important aspects of industrial psychology field . First it involves the study of human side of organization and second it includes application of the principles and findings of the related research works.
Industrial and organizational psychology (I/O) is among the newest fields in psychology. Industrial Psychology focuses on improving, evaluating, and predicting job performance while Organizational Psychology focuses on how organizations impact and interact with individuals. In 1910, through the works and experiments of Hugo Munsterberg and Walter Dill Scott, Industrial Psychology became recognized as a legitimate part of the social science.[21] Organizational Psychology was not officially added until the 1970s and since then, the field has flourished. The Society for Industrial Organizational Psychology has approximately 3400 professional members and 1900 student members. These two numbers combine to make up only about four percent of the members in the American Psychological Association but the number has been rising since 1939 when there were only one hundred professional I/O psychologists.[21]
I/O psychologists are employed by academic institutions, consulting firms, internal human resources in industries, and governmental institutions. Various universities across the United States are beginning to strengthen their I/O Psychology programs due to the increase of interest and job demand in the field.[21]
Industrial organizational psychologists look at questions regarding things such as who to hire, how to define and measure successful job performance, how to prepare people to be more successful in their jobs, how to create and change jobs so that they are safer and make people happier, and how to structure the organization to allow people to achieve their potential.
Some key issues related to Business and Psychology

Psychology for Business Success: examines key aspects of business activity and how business psychology can be applied to give a competitive advantage. There is also an element of Consumer Psychology included here. Consultants visiting from the Association of Business Psychologists give the majority of the lectures.
Organizational Learning, Innovation and Creativity: this module explores the concept of what is meant by learning at individual, group and organizational levels and how this relates to developing innovation. You also explore new approaches to product innovation.
Selection and Development for Business Success: analyses the elements that constitute a successful selection procedure. You also examine assessment and development programmes and how these can influence the performance of businesses.
Organizational Culture and Change: analyses organizations from an anthropological and psychoanalytical viewpoint. The metaphors of culture and Freudian theory will be used to examine how individuals experience groups and organizations.
Decision Making, Leadership and Motivation: looks at the elements of leadership and what differentiates it from management. Different leadership styles are examined and their relationship with commitment and motivation explored.
Research Methods and Consultancy Skills: you acquire skills in a variety of research methodologies and develop skills in data collection, analysis and interpretation. Mini-projects are undertaken in organizational settings in order to develop the negotiation and intervention skills essential for the consultant.
Overall I can stay on tune that Psychology has a bond relationship with business and has great impact on it’s affairs and related issues . If we can understand and apply the knowledge of psychology in business it will provide more fruitful output.