Organisations are by far a congregation of individuals and the tasks they accomplish are resultant from teamwork. Humans, whether they pursue a task individually or in teams, carry their psyche to the workplace too. If the leader exactly comprehends with the psychology of his team members, he can facilitate them work better (Gilbreth, 1921).
Efficiency and quality of work are functions of a person’s mental make-up and a clear interpretation of principles of psychology and human attitudes are important in achieving these at work. When the manager carries enough knowledge of the principles of management as well as psychology to his work, it is advantageous in assessing the minds and thoughts of the employees and devising strategies to tackle them and direct their skills towards getting the work done effectively.
Principles of management rest on the foundations of behavioural sciences and the study of the human mind. Further, psychology transgresses and transpires through every step of management, be it employee safety, welfare, designing remuneration package, total rewards system, collective bargaining, employee retention, performance management etc. Training needs assessment, need for promotion, assessing the correct decision alternatives etc are better evaluated by managers familiar with psychology. The managers, especially those involved in functions related to performance appraisal, assessment centres, counselling etc find it imperative to be aware of psychology, which explains human behaviours, thoughts and ideas in detail (Schein, 1988).
Managers being the initiators and agents of change, need to get a clue of how the employees would react to the intended changes so that they are enough prepared to tackle such situations. Science of the mind aids in this regard.
Psychology is also helpful in arbitration, conflict resolution, and also in implementing reward and punishment systems, which would properly reinforce the good and bad behaviours of the employees respectively.