Business Psychology is an applied science that investigates how to make people and organisations more effective. It uses social scientific research methods to study people, workplaces and organisations in order to better align their multiple and sometimes competing needs. Its goal is to create healthy and productive relationships between people and organisations for mutual benefit.
As an applied science, Business Psychology does dictate to organisations what constitutes effective organisational practice. It has a reciprocal relationship with business and draws insights from those with experience of what works at work. This enables psychological research to be applied pragmatically and in a way that is appropriate to the situation. It also allows a cross fertilisation of experience from business into psychology and of academic knowledge and rigour from psychology into business.