Applying Psychology In Business

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Psychologists have been studying human behavior and mental processes to gain better understanding on human kinds. Psychology subject is an ambiguous; there are several specialty areas in psychology, which focus on specific areas, such as, biological, clinical, and forensic psychology. In a business setting, the specialty area of psychology is in industrial/organizational which study the relationship between people and work (Hockenbury, 2010, p.15).
Applying Psychology in Business
There are two areas of psychology for business are industrial/organizational and business psychology. Industrial/organizational psychology is the branch of psychology that focuses on the study of human behavior in the workplace (Hockenbury, 2010, p. B-2). This area
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Since psychology study human behavior, business uses psychology factors in the workplace, hiring process, sales and marketing, innovations, leadership and teamwork to operate a safe business effectively. It promotes productivity, team building, recruiting, and resolving conflicts(Johnson). Once organizations satisfy production employees’ needs, the change of increase in production elevate and it build a stronger relationship between team members. It also helps in the process of recruiting employees by matching their skills and experiences to certain tasks, so they can fit to do the job. As long as the use of psychology in organizations ethically and no bias influences, it helps create a effective …show more content…
When conducting an experience, there are cognitive biases that effects on research. According to the article, “Cognitive Bias is bad for Business,” people tend to make decisions and take actions based on self-interest, overconfidence, or from a past experience (Taylor, 2013.) Cognitive bias can result in a irrationality, imprecise judgement and fault decision. Cognitive bias can be divided into two categories: information and ego bias. Information bias is taking a little amount of information to make a decision when there are other possibilities to consider. Ego bias focuses on emotional gain, such as peer pressure that leads to a wrong decision. If a cognitive bias is present in a problem solving for a business, the decision is imprecise and causes more problem rather than to solve the problem. Since more information is still expecting for further analyzing or peer pressure in the group has decided fast into a solution which will cause a bad impact on the business. Moreover, groupthink occurs when a group makes a decision because of peer pressure leads to foul judgements and they don’t consider alternative actions. In order to have a successful business, decision makers need to analyze all the information and always open to alternative actions before executing a

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