According to Grant (2005) business psychology is defined as a branch of psychology that deals with emotions of various characters within a business society circle or organization which includes employers, customers as well as producers. This branch of psychology is concerned with the practical application of research methods, intervention strategies, and psychological theories to workplace issues. It is usual that business psychologists are always interested in enhancing increased productivity in organizations by ensuring employees are able to lead psychologically and physically healthy lives. Business psychologists in an organization have got the highest probability to work in the human resource department. A business psychologist contributes to the selection and placement which is an area within business world since this is usually dealt with in the human resource department (Grant, 2005).
Selection and placement is concerned with the collection of information meant to evaluating as well as making a decision regarding who should be selected for employment either in the short-term or long-term basis (Mathis & Jackson, 2008). Through selection and placement a business psychologist ensures that an organization obtains the most appropriate individuals to satisfy its job needs. According to Mathis & Jackson (2008) selection and placement is important in the following ways: the exercise fairly evaluates job applicants as it considers individual capabilities and differences; it ensures that competent and qualified personnel are employed to meet an organization’s job requirements; it ensures that job applicants are placed in the best interest of the individual as well as the organization; it helps the human resources to plan well in an organization; and it helps in reducing recruitment costs that may go higher due to inappropriate selection and placement exercises. In the human resources department, both business psychologists and human resource managers take part in the selection and placement exercise. Contrary to the human resource managers, who in most cases train as M.B.A, the business psychologists are only concerned with the psychological and physical welfare of the job applicants.
Organization development is another business area where business psychologists can offer their contribution in terms of increasing efficiency and productivity in an organization. Organization development can be defined as a planned, organization-wide attempt that is meant to increase the viability and effectiveness of an organization. This business area involves interventions in the processes of an organization by employing organizational reflection as well as behavioral science knowledge, self-analysis, system improvement, and planning. Since organization development involves behavioral science as one of the interventions, a business psychologist therefore directly contributes into developing this business area. Business psychologists study the behavioral science knowledge which involves systematic investigation and analysis of human behavior by the use of naturalistic and controlled experimental observations. Business psychologists therefore contribute positively into an organization’s development since they make sure that all employees have got desirable behaviors which can lead into increased productivity. By the help of business psychologists, varied talents of employees are distinguished and therefore facilitating appropriate task allocation to different employees according to their capabilities. Those employees who are best at innovation are assigned those tasks which deal with creativity, for example in an organization that deals with photo production; creative individuals are assigned the task of photo designing.