Excerpt from careersinpsychology.org

HOW FORTUNE 500 COMPANIES USE PSYCHOLOGY TO INCREASE SUCCESS

Fortune 500 Psychology

Once a year Forbes magazine publishes a list of 500 public and private companies that have successfully ranked in an extensive revenue-based research study. While it might appear to the disinterested or casual observer that the revenue ratings are merely talking points for the corporate-minded; the list is in fact, one of the tools used to assess the nation’s economic health and predicted outlook. For example, the 61st publication of the list (the latest as of 2015) reveals how Fortune 500 companies account for 12.5 trillion in revenues; almost 100 billion in profits; an aggregated market value of 17 trillion and a yield of 26.8 million jobs. While membership in the Fortune 500 club is prestigious as well as something to talk about; what it represents is, in reality, serious business.

This is where psychology comes into stark focus.

Without the infusion and intervention of highly trained psychologists into the lifeblood of Fortune 500 companies, the above numbers would not exist. Historically and economically speaking, the psychologists responsible for inspiring, developing and maintaining corporate leadership and healthy work environments have been the silent strength reinforcing the backbone of the world’s economy for decades. The field itself is vast, highly diverse, and in a state of perpetual progress; making it one of the most dynamic of the psychology career fields.

How Do Psychologists Help Fortune 500 Companies Succeed?

According to Dr. Paul M. Muchinsky (1947-2015); author of “Psychology Applied to Work”, there are 6 general ways which psychologists help companies succeed:

  1. Selection and Placement
  2. Training and Development
  3. Performance Appraisal
  4. Organization Development
  5. Quality of Work Life
  6. Ergonomics

The following descriptions of these categories are basic at best. In reality, each specialty is a world unto itself, highly diversified and supplemented by other specialties.

Selection and Placement

Psychologists who utilize their talents in this specialty area design and develop processes and techniques that assess employees in terms of strengths, weaknesses, skills and interests. Applying scientific psychological methodologies, the psychologist can then create effective systems for hiring, placing, transferring and promoting workers within the company.

These psychologists must have the dual capability to determine both the needs of a company in terms of human resources; as well as comprehensively take into consideration the needs and natures of individuals found in that particular industry’s available workforce.

Training and Development

Psychologists working in training and development are experts at identifying the skills and talents of employees and subsequently creating ways to enhance them; thus transmogrifying the human asset component of an organization. This process effectuates invaluable improvement in organizations: its workforce improves both internally (by boosting self-esteem and morale) and externally (by increasing the quality and possibly quantity of output).

These psychologists are the key to change at the managerial level as well. Armed with scientific data and objective insights, they look at the big picture and assess how groups of employees and work processes might benefit from maximizing interactive roles and systems in which managers are integrated in revamped fashion both personally and productively.

Performance Appraisal

As the title suggests, psychologists involved in performance appraisal within organizations develop ways of assessing exactly “what is” maximum or good performance and what is not. The company as a whole is analyzed as to its role as a hindrance to or support system for workers individually, in groups, divisions, sections, and the like. They also look at the dynamics of the groups or units and interpret scientifically whether their performance is being maximized; and if not, what can be done to improve both the quality and quantity of job performance.

Within “performance appraisal psychology” comes a myriad of factors that can and do influence the performance of the workforce. Psychologists in this field must be able to look not just at employee and output components, but at all elements present in the industry of the particular company’s work world.

Organization Development

Psychologists involved in organization development look at how a company is structured; if the structure serves the business in the best way possible and how the existing business construct affects all levels of employees as well as the end users of products and/or services. This specialty is sensitive to a plethora of factors which affect human behavior and how that behavior is defined in the workplace. Organization development can draw in other areas of psychology, such as consulting psychologists; who might for example, work with a company’s top level leadership.

Quality of Work Life

Psychologists practicing in this area operate from this premise: the healthier and happier people are at their jobs, the better their work product can and will be from both a production and quality standpoint. Quality of worklife applications can include issues of great diversity; from safety and physical considerations to emotional and relational components within an organization.

Ergonomics

Dr. Muchinsky probably describes this area best; he says,

“Ergonomics is a multidisciplinary field. It is concerned with designing tools, equipment, and machines that are compatible with human skills. Psychologists who work in this field draw upon knowledge derived from physiology, industrial medicine, and perception to design work systems that humans can operate effectively.”