THE SIGNIFICANCE OF PSYCHOLOGY IN BUSINESS ADMINISTRATION

The modern businesses are multifaceted in not just their operations but also in the myriad kinds of people working in them. The role of psychology becomes evident when you think of the existence of such diverse and varied minds working under one roof. Psychology helps us in understanding human behavior and reasoning to derive plausible explanations behind their actions, goals, and thoughts. For a business manager, a keen understanding of the minds of people that he/she works with is crucial to an effective administration. It helps in smoothening out his/her line of work and get more efficiency out of the people that he/she is managing.

One of the finest utilization of psychology is seen in the human resources management department of any company. This is the department that is entrusted with fine-tuning the hiring procedure and it is, in fact, a part of the job of any recruiter to gauge the mental strength of a candidate in order to understand whether he/she suits the role that is on offer. Apart from hiring new employees, it is also the responsibility of HRM to overview the productivity and wellness of the present employees. You will frequently notice the HRM department organizing motivational sessions, group discussions, and many recreational activities. The aim for all these initiatives is to stimulate the minds of the employees and to keep them invested in the job.

A manager who comprehends the psyche of all the rungs of business is nothing short of an asset for the company. This is because a manager is held as the link between the strategy makers at the top rung and the skilled workers of the other rungs. A manager holds the responsibility of understanding the strategies well and then delegating the necessary sections of the job among the employees. His or her knowledge of human mind determines how well he or she is able to put the message through so that the employees are brought to dedicated action.

You will see that the most successful business administrators are tactful even in their commands and they tend to bring in the employees together to see the vision of the company, instead of merely ordering them to do the needful. This is the best possible example of understanding the minds of the employees to get the maximum efficiency out of them.

There is no business in the world that does not have to deal with its fair share of conflicts and disagreements. It is a common occurrence when people of such diverse mentality work together and more often than not, it is not about which side is wrong; it is more about the different point of views clashing with each other. The knowledge of human psychology helps the administration in seeing the views of both sides clearly and then hitting a middle ground with the solution such that the issue is nipped in the bud before the disturbance spreads to the different levels of the company.

Psychology also comes into play in taking the major financial decisions of a company. These decisions can be as major as the allocation of funds for the new projects and the rate of increment for the employees to something like redecorating or shifting the office. If you take the example of the increments, it is something that makes the employees feel that their efforts are appreciated and noticed. When the rates of increment and salary structure are not up to the expectation of the employees, it becomes difficult to retain them. In terms of redecorating the office, the current trend is towards turning the office space to be more creative by incorporating the colors and designs that have a positive impact on the minds of the workers. The companies are ready to shell out the bucks to create comfortable workplaces that bring out the best from the expert professionals.

We, at the K.R. Mangalam University, one of the top private universities in Gurgaon, very well understand what role and significance do psychology holds in shaping and transforming the modern business spaces. We, as one of the premier MBA colleges in Haryana, believe that a comprehensive study of business administration is never complete without the incorporation of the relevant facets of psychology in the courses. We have successfully ensured that pertinent aspects of management psychology are imbibed by our students through our updated curriculum which is imparted under the expertise of our highly experienced and expert mentors. We know that the keen learners of today are the able business administrators of tomorrow, and hence, we, at the K.R. Mangalam University, always remain committed to gifting the country with the best of the management professionals every single year.