Psychology and Business

Introduction to Psychology

Assignment 01 (NN)

Prepared for

Chhanda Karmaker

Senior Lecturer

Prepared by

Rebeka Akter

111103040

PSY 2217 (NN)

March 07, 2012

United International University

Psychology and Business

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Psychology and Business

Business world is changing day by day. Business entrepreneurs and managers are always thinking beyond the classical approach to lead organization to further success. Understanding human behavior, within the organization or outside the organization, for its employees or consumers has never been more important for managers than it is today. For instance, for improving quality of the organization- improving customer service, improving people skill, working with diverse workforce, helping employers to balance work-life conflicts, creating a positive work environment- all these issues are concerning today’s managers to adopt organizational behavior or behavioral management perspective.

If we make a review on past, we will see that, early advocates of the classical management perspective viewed organizations and jobs from an essentially mechanistic point of view: that is, they essentially sought to conceptualize organizations as machines and workers as cogs within those machines. In contrast, behavioral management perspective placed much more emphasis on individual attitudes and behaviors and on group processes, and recognized the importance of behavioral processes in the workplace.

The behavioral management perspective was stimulated by a number of writers and theoretical movements. One of those movements was industrial psychology, the practice of applying psychological concepts to industrial settings. Hugo Munsterberg (1863-1916), a noted German psychologist, is recognized as the father of industrial psychology. He established a psychological laboratory at Harvard in 1982, and his pioneering book, Psychology and Industrial efficiency, was...