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The use of Organizational Psychology in Business

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Organizational psychology benefits business in many ways. This form of psychology studies behavior in business to find solutions to problems and discover important information about an organization. Organizational psychology has been developing over many years, and the use of it is invaluable to an organization. This article will define organizational psychology and describe how organizational psychology can be used in organizations. There are many benefits of organizational psychology in business and it is important to understand and apply this form of psychology in business.

Defining Organizational Psychology

Organizational psychology refers to "the scientific study of individual and group behavior in formal organizational settings" (Britt & Jex, 2008, Ch. 1). This form of psychology falls in the category of industrial/organizational psychology and organizations use this type of study to benefit their businesses in several ways. Organizational psychology deals with formal organizations, and historical influences impact this type of study since the early 1900's (Britt & Jex, 2008). Organizational psychology scientifically studies the behavior of employees in business settings by using scientific methods.

The Use of Organizational Psychology in Organizations

Organizations use organizational psychology to become more successful and efficient. Determining solutions to common problems can be made easier using organizational psychology. Changes and transitions benefit from this type of research because information and knowledge gained through organizational psychology can ease transition and make changes occur smoothly. Organizational psychology also helps companies save money and increase stakeholder value because the information provided through these studies can help an organization run effectively and efficiently. This is beneficial because it increases employee morale and security; which, in turn, increases efficiency of employees and the organization. This impact will allow an organization to also provide better customer service and increase the organization's success financially (Britt & Jex, 2008). Understanding how individuals and groups behave in an organizational setting can help predict outcomes of situations as well as provide valuable information about influencing the workforce. Organizational psychology benefits organizations by providing information on how to make the organization more successful.


The scientific study of organizational psychology helps an organization understand the behavior of individuals and groups in an organization. An organization can use organizational psychology to increase efficiency and effectiveness, and this will increase the success of an organization. Organizational psychology can benefit an organization in many ways, and its many benefits should not be overlooked.


Britt, T. W., & Jex, S. M. (2008). Organizational Psychology: A Scientist-Practitioner Approach (2 ed.). New York, NY: Wiley.

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