A guide to business psychology

Published on by Randy Nicholas

Business psychology, also known as work psychology or organisational psychology, is concerned with the human factor in business. Organisational psychologists study the ways that human behaviour impacts the function and profitability of a business. The study of occupational psychology can be broken down into four broad categories that give companies a framework for addressing behavioural issues in the workplace. Read on to learn more on business psychology.


Clear mission and values

The organisation dimension of business psychology describes the type of organisation that an individual is working with. For practical purposes, it makes the best sense for companies to be clear about their mission and values so that employees can better relate and contribute to these goals and ideals.

In practice

Psychologists have found that employees who more closely share their employer's goals are more successful in their roles. Many businesses, therefore, devote a great deal of attention to team building in order to increase employee loyalty.


What is teamwork?

Teamwork is a way to unite a group of people to work toward a common goal, and it is a very common model in business psychology. Teams of people can be more effective because each team member contributes a unique set of experiences and skills, increasing the efficiency and cost-effectiveness of completing projects.

Conflict resolution

In order for teams to work together effectively, there must be a solid and fair conflict resolution system in place. People will not always agree, and stress and emotions tend to result in conflicts in the workplace. Employers often invest in conflict resolution training to give employees the tools to properly deal in these types of situations.

Decision making

Effective decisions require examining an issue from all possible angles, considering future impacts on revenue, employee morale, competitiveness, and so on. Most issues confronting business today require the specialised knowledge of a team of professionals to solve.

Inter-personal awareness


The inter-personal dimension is mostly about communication between employees, including colleagues and supervisors. This area answers questions that go to how people most effectively communicate, and the best methods with which to communicate with them.

Personality dimensions

Many programs exist that help employees to build inter-personal awareness, such as "Personality Dimensions" that is based on the Myers-Briggs assessment. It assigns colours to the various personality types, and gives participants insights into improving their communication skills.



It is important for employees to know their strengths, weaknesses, talents, and limitations. Recognising one's own behaviour is the first step to improving it.


One of the biggest problems in the workplace is stress and how people deal with it. For this reason, many companies invest in stress management training for workers.

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