The Advantage of Psychology in Business Management

Psychology and business management are closely entwined. So much so that business managers with a background in psychology have inherent advantages over those who don’t. This is because the skills that studying psychology improves and teaches, are the same ones a great business manager needs.

What do Business Managers Do?

Worldwide there is a growing demand for business managers. This is because businesses increasingly see the advantage of having a professional who understands both technical principles and business. It is therefore a specialist position. As a business manager is responsible for overseeing business operations, their role extends across all company departments.

5 Responsibilities of a Business Manager

1. Supervision of clerical and administrative staff.
2. Maintaining business supplies.
3. Ensure health and safety compliance.
4. Designing and implementing work schedules and employee training.
5. Drafting and carrying out strategies to increase profitability.

In order to effectively fulfil these roles and responsibilities a business manager needs to have a toolkit of skills. Accordingly, there are 7 skill areas that an aspiring good business manager should master.

7 Top Business Management Skills

1. Good verbal and non-verbal communication skills.
2. Capable of planning, organising, overseeing, assessing resources and managing organisational change.
3. Ability to lead teams and manage people.
4. Foresee, identify and then critically assess and analyse situations.
5. Have an agile mind.
6. Able to grasp financial concepts so as to be able to formulate helpful business decisions.
7. Capacity to come up with innovative approaches and creative solutions.

What does Psychology Teach You?

Those that study psychology develops an in-depth understanding of the human psyche and behaviours. They also become skilled at understanding and interpreting research. This enables them to be effective and efficient in many different roles across various industries. For example, business and market analysts, business managers, human resource personnel, corporate administrators, community project leaders, recruitment consultants and teachers.

10 Skills Psychology Teaches

1. Critical thinking.
2. Innovative and creative problem-solving.
3. Effective collaboration.
4. Good communication.
5. Ability to gather and analyse information and then organise it in a coherent manner.
6. Agile thinking.
7. Ability to put theoretical concepts into practice.
8. Good ethics.
9. Understand the complexities of diversity and cultural differences.
10. Recognise and understand the whys and hows of human behaviour.

Benefits of Studying Psychology

Beyond developing these ten skills, here are three additional benefits to studying psychology. Firstly, it improves and increases your understanding of yourself. This enables you to have good insight into your rationale and reactions to others. Self-awareness is beneficial when working alongside others, managing teams and responding appropriately when under pressure. Additionally, understanding yourself better can lead to improved communication skills. For example, as your awareness of others increases and your non-verbal communication skills improve.

Secondly, you will have a deeper and better understanding as well as knowledge of issues that affect society. This will increase your empathy and thus your ability to see things from other’s perspectives. When you manage a group of people, there will inevitably be various types of diversity. Therefore, effectively putting yourself in each person’s shoes will assist you in fostering a cohesive, productive team. And thirdly, you will expand your ability to think critically as well as creatively. Thereby being able to accurately assess different situations, find viable solutions and implement them.

“The better you know yourself, the better your relationship with those around you.”

How can Psychology be an Advantage to a Business Manager?

The inherent learnings and honing of skills that studying psychology provide are a great advantage to any budding or practising business manager. Good business managers can think on their feet. They are good strategists and agile thinkers, thus able to come up with innovative solutions. Because they understand what makes people tick, a good business manager is apt at motivating those around them. This also makes them good at connecting with others.

Psychology sheds light on human behaviours. A good business manager has an in-depth understanding of why people do what they do. As well as how to get people to do what’s needed to be done. Thus, having a psychology background advantages a business manager.

Essentially, psychology and business management work hand-in-hand. The skills learnt through studying psychology are the same ones that enable a business manager to be great at their job.

Where to Study Psychology?

Are you an aspiring or practising business manager who wants to upskill yourself to advance your career path? SACAP’s Management and Leadership Courses are embedded in an Applied Social Science framework. This means that SACAP graduates are equipped with an understanding of both psychology and business practices. Choose between a Business Management Higher Certificate or Degree grounded in Applied Psychology. For further information contact SACAP directly to set up an appointment.