Applying Psychology in Business

Description

Managers are typically well versed in the principles that have served them well: finance, accounting, and economics. Finance and accounting in particular have contributed to the efficient management of financial, material, energy, and technological resources. But managers typically are not as well versed in the principles and practices related to the management of human resources. Although they carefully parent nonhuman resources, managers often do not appreciate the economic payoff of personnel practices and policies based on psychological principles. Just as plant facilities, machinery, materials, and monies possess an asset value that can be cultivated, so too do employees have an asset value than can be increased through the application of psychological principles and practices.

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