Chapter I.

Practical aspect of management psychology

1.1 Case study about the conflict situation at the workplace

Conflict is inevitable in workplace settings, and conflicts can arise between co-workers,
supervisors and subordinates or between employees and external stakeholders, such as
customers, suppliers and regulatory agencies. Managing conflict is a key management
competency and all small business owners should study and practice effective conflict
management skills to maintain a positive workplace environment.

Conflict Between Managers and Subordinates based on lack of communication or personality

clashes between managers and subordinates can cause a range of interpersonal conflicts to arise.
Employees may feel bullied or pushed by more authoritarian managers, or may perceive a lack
of guidance from more hands-off managers. Managers with type-A personalities may set goals
that are too ambitious for their subordinates, setting them up without communicating correctly.

Case study : So, a worker was complaining about his manager who had taken 5 minutes to
run his eyes over his report, that he had spent 3 days to write. And then the manager immediately
started pointing out to him things that he hadn’t got just right, but not really explaining how to do
it correctly. He was really angry:

“ How dare he glance over 5 minutes and then provide an opinion on it, without even explaining
what wasn’t good like a manager should. It’s impossible to work with this person, he never does
explain the task and correct ways of doing it. ” That’s what the employee said after all that
situation.

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Chapter II. Theoretical aspects of management psychology

2.1 General information about managerial psychology

Managerial psychology is the study of people and their behavior during working process and
the study of the company as well. There are some psychological theories and methods developed
within managerial psychology which are applied to those companies and human activities inside
them in order to better understand the meaning of personal, group and company effectiveness
and satisfaction of people inside the company.

Managerial Psychology is understanding the individual that is seen more than ever before as
vital to understanding work behavior. This perception is accompanied by a growing demand
among managers and management thinkers for the insights offered by psychology. Interpersonal
effectiveness is about understanding and managing behavior. It is important to understand
relationships in the working environment for the success of individuals and for the ultimate
contributions to the business bottom line. Managerial Psychology’s aim: Managerial Psychology
focus on mastering the understanding of human relations.

Objectives:
 To understand how to manage stress, change and personal problems.
 To understand how to work with diverse groups of people.
 To understand how to conduct conflict resolution and the importance of effective
confrontation skills.
 To understand the importance of ethics in the work environment.
 To identify effective leadership styles and the importance of leadership and
what makes someone a successful leader.
 To understand the difference between leadership and management.
 To learn how to identify skills, motivate, develop and persuade others.

Success of any organization is a direct reflection of its managerial efficiency and effectiveness.
A well managed organization can survive and prosper during the difficult economic times.
Management operates through five basic functions: Planning, organizing, coordinating,
commanding, and controlling. Planning: Deciding what needs to happen in the future and
generating plans for action (deciding in advance). Organizing: Making sure the human and
nonhuman resources are put into place. Coordinating: Creating a structure through which an

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organization's goals can be accomplished. Commanding: Determining what must be done in a
situation and getting people to do it. Controlling: Checking progress against plans.

2.2 Managing psychology at small enterprises: the importance of mental health and
wellbeing at workplace

When most people think about starting a business, psychology doesn’t normally come to
mind. Most business owners get started knowing nothing about psychology, and many of them
do well. However, learning more about psychology can have some surprising benefits for
business owners—benefits that can sometimes make it worth taking a few psychology courses,
or even going back to school for a psychology degree. Here is some important information about
mental health and the importance of wellbeing of the employees.

Mental health is a state of wellbeing that is characterized by feeling well, having fulfilling
relationships, as well as having the ability to cope. Mental health influences how people think,
communicate, learn and grow. Perceived wellbeing strengthens resilience and self-esteem. These
are the ingredients for successful involvement in the community, in society, in professional life
and in relationships. Mental health and mental illness have often been described as points on a
continuum. However, research suggests that there are two continuums to be considered and that
the absence of mental illness may not always be reflective of genuine mental health.

Mental health problems , as compared to mental illness, are fairly common and are often
experienced during periods of high stress or following upsetting events. Nevertheless,
bereavement can become debilitating if the individual receives no support during this period and
it may also be necessary for the bereaved person to attend counselling during this time.

Active efforts in mental health promotion, prevention, and treatment can significantly reduce an
individual's risk of developing a mental illness. Mental health issues in the workplace concern
the individual, organizations and society at large and they can impact on health and wellbeing,
behavior, organizational performance and social wellbeing.

Factors affecting mental health may be found both inside and outside of the workplace. Outside
of the workplace these include factors related to the individual and their behavior, and the
general psychosocial environment. These also exist within the workplace, but psychosocial
hazards such as inappropriate workload, poor management style, poor communications at work,
as well as many others. However, the impacts of poor mental health in the workplace are not
confined to individual health effects. They also include impacts on organizational performance in
terms of lost productivity, the costs of absenteeism, presenteeism and more intangible but
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nonetheless important issues such as poor workforce morale and unfavorable organizational
reputation.

2.3 The importance of communication in business

Communication, as a management function is the process of creating, communicating and

interpreting ideas, facts, opinions and feelings about work performance, organizational
effectiveness and efficiency as well as goals attainment in organization. A manager must be an
effective communicator and no organization can succeed or progress, build up reputation without
effective communication skills. Poor communication system may result in mismanagement and
bad business results.

Communication threrefore is the process of transmitting, diseminating or passing information

from one person to the other or from one place to the other. In other words, communication is the
process of creating, transmitting and interpreting ideas, facts, opinions and feelings. It is a
process that is essentially a sharing one, a mutual interchange between two or more persons.In
addition ,communication is the exchange of information between managers.

The most effective managers are those who understand communication and its use in the
organization setting. Communication is the vehicle that allows managers to fulfil each
management function. To plan successfully, managers must be able of effectively communicate
their vision to the rest of the organization (Radovic Markovic ,M. and Omolaja M ,2009). To
organize successfully, managers must allow for and encourage free-flowing communication both
up and down the hierarchy, as well as between departments and colleagues. To lead successfully,
managers must clearly communicate organizational goals to employees and through that
communication, inspire employees to trust in their leadership and to perform at the highest levels
possible. To control successfully, managers must effectively communicate with employees to
monitor progress to reemphasize organizational goals, and to correct on-going processes.

Consequently, communication is more than simply talking, writing, reading and listening.
Effective communication is the key to successful management. Communication allows managers
to share goals with shareholders both inside and outside the organization. It permits managers to
stimulate behavior changes in employees and suppliers. It enable managers to inspire loyalty
from employees and customers. It allows managers to convince employees and unions to
abandon counter productive practices. It enables managers to persuade leaders to provide
financing and it permits managers to calm angry customers and to impress new ones. Hence,
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managers must be effective communicators to function. First, they must understand what
communication is. Next, they must understand how communication works, on both an
interpersonal and an organizational level and finally, they must understand what barriers can
impede communication so that they can overcome such impediments and improve
communication through the organization. In the modern day organizations, communication is
popularly considered in terms of; the media of communication such as internal memoranda,
reports of various forms. The skills of communication such as giving instructions, interviewing,
charing meetings, etc and the organization of communication like chain of command, briefing
groups, work committees, etc.

If people are good communicators, they listen well and don't overreact. This helps reduce and
prevent conflict in the workplace, which otherwise, could create problems. Co-workers can work
out a disagreement and still be respectful, and potentially could remain friends. Preventing
conflict escalation goes beyond your co-workers. Employees who are able to listen to customer
issues and communicate solutions without becoming defensive, accusatory or otherwise
negative, are good ambassadors for the company. When consumer conflicts are positively
resolved, consumer loyalty goes up.

For a team to deliver high performance across cultures and remote teams, trust and
communication are key principles. Conflict arises and/or creeps into the team without these
fundamental aspects. These conflicts may involve team members, projects, departments,
organizations or even clients, and a conflict is often the result of perception. Therefore it is
crucial to understand and apply various conflict resolution techniques and communication styles
to resolve issues before they become damaging to individuals or the company.

Individuals have different communication styles, especially when they come from different
cultural backgrounds – some are more expressive and direct, others prefer to have their team
members or managers speak for them, rather than voicing their opinion themselves. Problems
occur when judgments are made on the basis of different communication styles. Some cultures
are very direct and cut to the chase, and as a result get frustrated with someone who beats around
the bush. Indirect cultures tend to prefer to deal with relational aspects first before addressing
substantive issues. By showing empathy, understanding cultural differences, and communicating
effectively, many conflicts can be solved before they ever become an issue.

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Chapter III. Solving methods of management psychology

3.1 Methods used for solving the conflict situation

Workplace conflicts happen everywhere, and ignoring them can be costly. Every unaddressed
conflict wastes about eight hours of company time in gossip and other unproductive activities.
Understanding the reasons behind workplace conflicts can help HR professionals tackle
problems before—or after—a conflict turns into a face-off between departments that refuse to
work together or a screaming match between colleagues and managers.

The most important aspect in conflict resolution is recognizing that there is a conflict, and
having the willingness and ability to deal with it in a structured and constructive manner,
focusing on professional behavior rather than making a conflict a personal issue. Individuals
involved in the conflict need to commit themselves to resolving disputes efficiently and learning
from experience. When teams resolve a conflict successfully, they are able to increase their
levels of engagement and commitment, whereas unsuccessful conflict management or even
ignoring the issues at hand will lead to unhealthy performances for the team and its individuals.

A good place to start is by realizing that, even though people may shy away from it, conflict is
actually normal and healthy. In fact, many believe it’s a vital ingredient to organizational
success. Experts have found that the most effective teams are those in which members feel safe
enough to disagree with one another. A culture where dissent is allowed, or even encouraged,
can spur innovation, diversity of thought and better decision-making.

According to Michael Woodward, an organizational psychologist in the New York City area,
the challenge is in figuring out which conflicts are healthy and which ones are harmful.
“Unhealthy conflict is when it becomes personal and emotional. Then your judgment gets
clouded,” Woodward says.

Difference is at the heart of conflict, so it’s important to explore areas where people often
don’t align. Conflicting priorities. Some fights are over resources such as budgets; others erupt
from incompatible goals or reactions to structural change in the company or simply lack of
communication.

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HR professionals and conflict management experts recommend that HR get involved in
workplace conflicts when:

 Employees are threatening to quit over the problem. Recruiting and training are
expensive, it’s often cheaper to work out a solution.
 Disagreements are getting personal, and respect between employees is being lost.
 Conflicts are affecting morale and organizational success.

While it’s better to address workplace conflicts as soon as possible and at a local level,
sometimes you need outside help from a mediator, arbitrator or attorney. Experts say those
situations include the following:

 When potential legal issues are involved, such as allegations of discrimination or

harassment.
 When the HR department doesn’t have the time or training to provide the conflict
resolution assistance needed.
 When there are patterns of recurring issues.
 When the flare-ups are becoming abusive or resemble bullying.
 When a manager needs retraining that can’t be done in-house.
 When the environment is so toxic it’s time to get everyone offsite so the office doesn’t
trigger continuing negative responses.

Following our case study it is clearly understood that it is a conflict caused by lack of
communication between the manager and the worker and the style difference of working.
Workplace communication is very important to companies because it allows companies to be
productive and operate effectively. Employees can experience an increase in morale,
productivity and commitment if they are able to communicate up and down
the communication chain in an organization. But to achieve such a great understanding of
communication between workers, such type of conflicts need to be solved.

In my opinion, in this case would be correct if the HR manager had a discussion with the
employee in order to listen to him, employee satisfaction can be very much dependent on their
having a voice and being listened to, whether it is in regards to an idea they have had or about a
complaint they need to make. Consolidated communication lines should enable everyone to
communicate freely with their colleagues, peers and superiors at any level.

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 And if the manager explains the tasks detailed to the worker, he will not commit errors upon his
tasks. When executives are strong communicators, they can better manage their teams. When
you are a strong communicator, it is much simpler to delegate activities, manage conflicts,
motivate and build relationships (all important responsibilities of an administrator).

Effective communication not only talks to people, but give them the opportunity to talk to each
other. What if for my case study I’ll approach to one of those five styles of communication, and
if being more precise collaborative communication. Effective collaboration cannot take place
without the support of good communications. And successful collaboration goes beyond merely
dividing up tasks and assembling a finished product. It’s more about fostering a genuine
determination to reach a common objective by sharing knowledge, insights and learning to build
a consensus. Unlike its poorer cousins coordination or joint working, real collaboration involves
creating an environment of openness with mutual respect and trust. Providing a range of
communication channels that will support collaborative individuals is, therefore, a critical part of
the process. What’s more, good internal communications will have a positive impact on other
business processes. From enhanced employee engagement to improved productivity and a
superior customer experience, good internal communications are at the heart of successful
businesses. Spending the time and effort on getting internal communications right will, therefore,
not only impact on collaboration, it will also have positive spinoffs in other ways too.

Project management systems or task management software will be another important

weapon in the collaborative arsenal. Whether it’s used to assign specific project tasks and
responsibilities, monitor completion of milestones and deadlines or to generally keep track of
where things are at, project management software makes for a more efficient and effective
process.

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 Conclusion

Managerial psychology can be defined as the field in which an individual or a manager gain a
better understanding of the kind of work, which is done by an employee. There are many
concepts which are an important part of this field. And some of those important concepts include
personality, motivation, stress, job satisfaction, and many other concepts. There have been many
tools which are used by psychologists to understand the employees of an organization in a better
manner and some of those tools are the ten item personality inventory, the job satisfaction scale,
and the work value questionnaire but I have chosen problem solving communication tool by
which the employee can feel safe and supported at the workplace. The purpose of this individual
work was to understand and try to solve a situation that could influence negative the enterprise in
general.

My aim was in this paper to show that the success of any business lies in effective
communication and that the effective communication is essential for the survival and progress of
a business concern. I also pointed out that communication skills need to be developed on an
ongoing basis and especially in a turbulent business environment in order to avoid conflict
situations at the workplace.

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 Bibliography

1. https://www.emeraldinsight.com/journal/jmp

2. https://en.wikipedia.org/wiki/Managerial_psychology

3. EU-Conference, Berlin, 2011 - Promoting mental health and wellbeing in workplaces, article

4. Opinion of the European Economic and Social Committee, 2013 on the European Year of
Mental Health — Better work, better quality of life (2013/C 44/06) , article

5. https://unicafuniversity.com/course/msc-psychology/

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