Many people have a basic familiarity with psychology and a few of its most famous minds, like Freud. However, few are aware of just how useful it can be to a business. Psychology is about more than just experiments and facts about the brain- it can tell us how to motivate people, how work groups cooperate or fail to do so, and other information about management and organization. In fact, psychology is possibly the most useful science for understanding how to manage people while minimizing conflict.

Organizational Behavior
To be an efficient business, a company needs to ensure that its employees are happy, motivated, and work well together. Getting all of these things to happen takes a continuous investment of time on the part of the management team. The task becomes much easier with a strong background in psychology, because that field teaches its students about motivation and personality types. Being a manager is not just about passing along tasks to employees. It's about getting them to work together in an efficient way.

Conflict Resolution
It is inevitable that problems will arise in a work group. People's personalities clash, or they don't agree on how to complete a task, or something else occurs to create division. Not only is this a problem because of the effect it has on productivity, but it can also pose a risk to the company in the form of potential lawsuits or human resources issues. Heading off such problems before they can become damaging is the mark of a good manager. The skills and training that psychology provides are perfect for developing strong conflict resolution skills. That is a major asset to any company.

Motivation and Inspiration
At an individual level, being a good manager is about motivating employees to do their best work. A happy and fulfilled employee is a productive one. But getting them to that state requires- you guessed it! - psychology. Only someone with psychological training can do well at bringing out the best in their workers. If you want some specific tips, click here for more information.

Psychology is the study of people and behavior, so, in a way, it is the theoretical basis for management itself. Having great management will attract great employees and produce great work, so it's a key way to differentiate your business from your competitors, who lack your management ability.