Business Psychology

Topics: Decision making, Conflict, Decision theory Pages: 6 (1586 words) Published: January 14, 2013
Business Psychology Summary - Class of 2011

Atma Jaya Catholic University of Indonesia

Executive Summary Written by :

Suhaila Daud / 2011-004-003

In this era of globalization, every organization must design its own strategy in terms of running its business at excellent level to survive and stay in competition. Trigger factors of higher demands that addressed to organizations are; emergence of free market which means that competitors are not only from the local market but also come from organizations all over the world, technological advances that developed rapidly over time also has role in higher demands that has been exposed to organizations in determining that everyone inside the organization must be compatible with the rapid development of technological advances at their workplace. Intense competition environment as already mentioned above certainly lead to tendencies for organizations in emerging innovations, creativities, enhancement of added value, service excellences, competitive prices and acceleration of process business plot as an objective to be “the winner” in competing with other organizations.

A paradigm shifting in the design of the organizational strategies is necessary to be developed by organizations in order to survive in spite of the free market enforcement. One of the strategies that can be applied is building an effective team in the organization, the transformation in working method from individual to team work as the main focus must bring psychological effects for every individual in the organization. Every member in the organization is forced to be part of their team, regardless to their preference to work as individual or as a team. This phenomenon also brings the “domino effect”; each member in the organization will be evaluated not only for their field competencies related to their job performance, but also personal competencies related to perform effectively as a team member (team work competencies) will be evaluated by the organization. In the realization of forming an effective team, more than one strategy related to competencies in team building, which are parts of the business psychology area, must be combined in a synchronous way.

Business psychology can be use as a source in designing and implementing an organizational strategy, especially for the accentuation in understanding individual behavior and self improvement basis when they are put and work together in a team. There some business psychology focuses that can be used in designing a strategy which at the end also can be used as references in building personal competencies needed in order to perform as an effective team. These are the beneficial focuses:

1. Perception and personal reality

Every individual has cognitive limitation in responding to information that they received, as a result of that phenomenon, they are forced to pick information selectively regarding to which received information associated as valuable and which is invaluable, which data that will be taken to the next level of information process. Related to selectivity process, individual tend to use heuristic process, an information processing which characterized by incomplete usage of given data, only based on general issues and experiences, and all those information processed quickly. This information processing form has potential in bringing biases, misunderstanding, and inaccurate result in processing information.

Based on the implementation of information processing above, in interacting with other individual, stereotypes and expectations emerged. Stereotyping is a judgment processing of someone that made only based on perceptions to the group where they can be categorized. Expectations from each individual not always positively responded by the other party where they are interacting with each other. Expectations also correlate with communication styles that will be used in interactions....
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