One aspect of business psychology is the study and practice of improving working life. It can help leverage an understanding of human behaviour within the context of business and the workplace. In turn this can help create effective individual and organisational performance.
In business psychology we use research methods to analyse and report on the needs of everyone within an organisation and help to identify potential challenges facing the workforce and wider organisation. As a result staff can feel better engaged and understood which in turn can help organisational performance.
Business psychology can contribute to what we believe is a key area for organisations to value and which can impact staff engagement immensely – leadership. Leadership within an organisation will always have a defining impact on business success, so taking the time to understand the drivers, limitations and underlying psychology of leadership teams, helps ensure an organisation can reach its full potential. The analysis and development of individuals leaders and leadership teams, will ultimately help shape the culture within an organisation, which will help build effective workforces.
By taking the time to uncover what motivates individuals and how their behaviour is influenced (including those in positions of leadership), organisations can be confident they are well positioned to address future challenges and opportunities.
Any business can get started with leadership development by leveraging research tools such as engagement surveys, focus groups, interviews and other forms of qualitative and quantitative research. But recording the data is only the start of the process. Knowing how to interpret the results within the context of your specific business as well as deciding how to action any required changes is where business psychology can truly add value.
Why Business Psychology is Important
Regardless of whether you refer to it directly as business psychology or not, the efforts to better understand people who work and interact within an organisation is always going to be beneficial for everyone involved. For example, this can help develop leadership teams by knowing where to put who, and in what context. It’s unlikely one leader will be able to do everything, so using research and psychology to create all-star leadership teams that are designed to achieve a specific task, can be a more effective strategy for businesses. The better a business knows it’s employees, the more likely it is to place the right people, in the right role, at the right time. This becomes essential in shaping leadership teams that successfully accomplish goals and objectives and are able to navigate the increasingly volatile business environment.
Business psychology can also help improve employee engagement and wellbeing. Engaged employees are likely to outperform those that are unengaged. Understanding all of the behavioural and psychological motivators that will influence an employee’s engagement, therefore becomes an important process for businesses to consider.
Business psychology also helps create employee-centric businesses and workplaces that feel happy, valued and motivated. This all contributes to employee retention rates, productivity and grater investment in the overall success of the business.
Regardless of the business, understanding the way people are feeling and behaving within the business is going to be of value. Businesses that choose to become people-orientated open themselves up to thriving workplaces whereby employees achieve more as they feel more fulfilled and accomplished within a wider team.
Business Psychology and Leadership
Business psychology can relate to many parts of an organisation but is often most impactful when looking at leadership. It becomes a vital ingredient to creating effective leadership teams. By understanding what is driving individual’s behaviour and desires, organisations can ensure they create environments that get the most out of their teams.
Our leadership assessment can help assess leadership potential and performance in order to help individual leaders, leadership teams and organisations improve performance and realise the return on their leadership. These individuals within an organisation often have the biggest impact so getting the most out of this top-level workforce gives businesses a huge lift in efficiency and success.
Here at Edgecumbe, we combine assessment and performance analytics with leadership coaching and facilitation to maximise the value delivered from leaders within organisations. We study leadership impact, behaviour and performance outcomes, providing insights to inform the formation, composition and development of leadership teams. Our core capabilities are leadership assessment, team dynamics and business analytics.
If you’re looking to learn more, please don’t hesitate to get in touch.