Contribution of Occupational Psychology Theories in the Management - Essay Example

Introduction: Occupational psychology theories have played a great role in the management, development and formation of innovative teams in an organization. Occupational psychology is a branch of psychology, responsible for the study of relationships that exists between people and work. Occupational psychology normally tries to develop and improve on the levels of job satisfaction that employees get (Christie, 2011). This is by coming up with motivational methods or policies that an organization should adopt. Occupational psychology also helps in increasing the levels of productivity within an institution. This is because it helps in promoting innovation, which is an essential requirement for any organization to increase the levels of its performance. Without innovation, it is very difficult for an organization to satisfy the various needs of its target customers. This is because through innovation, a company or an organization would manage to develop products that satisfy the various needs of its customers. Other issues of concern by occupational theories regard the physical and mental health of these employees (Myers, 2004). For any organization to get the best from its workers, it must ensure that these people are physically and mentally health. An organization would achieve this objective by creating good working conditions, and seeking methods of eliminating stress at the work place (Warren, 2013). This paper is a critical evaluation of the contributions of occupational psychology theories in the management and formation of innovative teams in a modern day organization. This paper takes a stand that occupational psychology plays a role in the development of innovative teams in an organization. Five Important Organizational Psychology Theories and their Contribution to Innovative Teams: One of the important theories of occupational psychology is the theory of population ecology. The occupational psychology theory of population ecology focuses on the impact of dynamic changes in an organization, which are brought about by the emergence or collapse of the organization under consideration. This theoretical framework denotes that population ecology is studied over a very long period of time (Lewis, 2013). Most organizations normally have static structures, and these static structures play a role in hindering their adaptation to changes. Based on these facts, these organizations have a high chance of failing to achieve their objectives and aims. However, new business organizations that have emerged would flourish because of their flexibility, and their desires to adapt to changes. Based on these facts, the theory of population ecology denotes that business organizations that are flexible and readily adaptable to changes will flourish and succeed in their initiatives. A good example on how the principles of population ecology work is by analyzing the performance of Marks and Spencer (Lewis, 2013). Marks and Spencer is one of the oldest and largest retailing organizations in the United Kingdom. Before the year 2000, Marks and Spencer was the first company in the United Kingdom to attain a more than 1 billion pounds, in terms of profits. However, after the year 2000, Marks and Spencer began performing poorly, and there was a great slide in its profitability (Millward, 2005). One of the major reasons for the downward trend in the performance of Marks and Spencer was its unwillingness to adopt the use of credit cards, in its stores. Marks and Spencer was unwilling to allow customers to use credit cards in its stores, leading to a loss of customers. This was the trend that was facing retail consumers and Marks and Spencer was unable to adapt to this trend. According to the population ecology theory, Marks and Spencer was an inflexible company, as a result, it had to lose its consumers to competitors (Lewis, 2013). However, in the year 2000, in a bid to change its policies, the company was able to carry out some market research, and come up with a set of innovative ideas on how to increase its profitability. This included the use of credit cards, after sale services, proper and attractive packaging, etc (Christie, 2011). Because of the constant changes in the need of customers, population ecology advocates for innovation, as the best method of developing solutions that can carter for those needs. An innovative company is a sign that the company is flexible, hence it can survive in the fierce competitive environment. The resource dependence theory gives an examination of the influence that the company or an organization has, regarding the use of its resources (Lewis, 2013). Under this theoretical framework, the success of an organization would occur, when it gains the capability of maximizing its influences and power in order to get the resources that it needs for purposes of ensuring its survival. Under this theoretical model, organizations which do not have sufficient resources will look for allies, who have more resources, so that they may cooperate with each other. This theoretical model also applies to different groups within an organization (Lewis, 2013). Resource innovation theory promotes innovation in the sense that most organizations would spend money for purposes of training their employees on how to be innovative, in order to meet the needs of their customers. A good example is Samsung, which has established a training institution, where its engineers are trained on the current needs of customers, and the innovations needed for purposes of catering for those needs. Apple, one of the leading mobile technological companies, has invested heavily in research and development (Warren, 2013). This has enabled the company to be one of the leading innovators in the mobile and telecommunications industry. It is important to explain that without resources, it is impossible for an organization to invest in research, which in turn can lead to the development of innovative products. Another important theoretical model that explains the management of innovation in contemporary organizations is the contingency model (Warren, 2013). This theoretical framework denotes that, there isn’t any best way of managing an organization. However, the internal and the external environment plays a great role in influencing the manner which the management of an organization would manage it (Christie, 2011). Under this model, innovation is the most important factor, responsible for ensuring that an organization achieves success in its initiatives (Warren, 2013). For instance, one of the major elements of contingency theory is that the design of an organization must be able to fit with the environment of its operations. There are some environments that discourage innovation, while other environments highly encourage innovation. This theoretical framework denotes that, for innovation to occur, the system, of leadership within an organization must be democratic (Warren, 2013). A democratic culture, would encourage the contributions of employees in the decision making process. A company such as Google is highly innovative because of its flexible and has a democratic type of management. Employees are encouraged to give their views regarding the company, and some of these suggestions are acted upon, by the company. Other theoretical models include transaction costs and institutional models. The transaction costs on the other hand, are a social-psychological dimension that does not factor in the costing of services and production (Christie, 2011). It is difficult to identify how these costs are able to impact on innovation, mainly because it is difficult to measure them. Institutional model advocates for the development of institutions, which can encourage an innovative culture (Warren, 2013). This theoretical framework studies global institutions of governance such as World Bank, IMF, and United Nations etc. According to this theoretical framework, institutions of governance have to be innovative in their structures, as this would ensure efficient delivery of services. Conclusion: In conclusion, the five theories of occupational psychology can be used to explain the best methods of managing an innovative team in a contemporary organization. In the current business world, innovation is an important element that can lead to the growth of a business organization. However, it is impossible to cultivate the culture of innovation if an organization is flexible, and does not value change. These theories are only applicable in organizations that are flexible, and constantly initiate changes aimed at catering for the needs of its customers. Bibliography: Christie, D. (2011). The encyclopedia of peace psychology. Malden, MA: Wiley- Blackwell. Top of Form Bottom of Form R. (2013). Work and occupational psychology: Integrating theory and practice. London: SAGE. Top of Form Bottom of Form Millward, L. (2005). Understanding occupational and organizational Lewis, psychology. London: SAGE. Top of Form Bottom of Form Myers, D. (2004). Psychology (7th ed.). New York: Worth. Top of Form Bottom of Form Warren, G. (2013). Occupational psychology: An applied approach. Harlow: Pearson. Read More