Human Capital Management using Applied Psychology

Prior to beginning work on this discussion,Read Chapter 1 in Applied Psychology in Talent Management.
Read the articles The Impact of Psychology on Talent Management and Talent Management: The End of the Era or the Dawn of the New Age?
Search the Internet for three examples where applied psychology is used. Reviewing current events is a good place to begin. How does this method of management contribute to organizational goals?Your initial response should be a minimum of 300 words. Support your response with at least one scholarly resource in addition to the text.

Human Capital Management using Applied Psychology

There are significant transformations globally in human capital management due to the change in information technology. This change has created the necessity for more research-based application of social science, expected to increase over the coming years. Companies are now relying on psychologists to understand the dynamics of their human resources and use them for competitive advantage. Today, numerous problems in the business world require a psychological solution; it massively contributes towards achieving organizational goals. Applied psychology is crucial in various aspects, including conflict resolution, managing group dynamics, understanding behavior, and human development.

There are several real-world examples of applied psychology:

Netflix learns consumers’ past, the type of content they prefer, and who they are to create the recommendation system. Thus, the consumers are more likely to watch and like the recommended videos because it matches their needs. Many studies indicate that a significant percent of Netflix users watch a show because of the recommendation engine.

Microsoft uses psychology to develop interface technologies, employee compensation and reward systems, manage performance and create effective leadership strategies. Microsoft’s annual hackathon offers employees the chance to step outside their day jobs and develop leadership skills like collaborating across disciplines. Sometimes team members are taken to leadership roles even if they are not ready for that path.

Uber uses a psychological principle called idleness aversion to keep customers busy while waiting for the drive. Uber introduced a gamified view to show how the ride is and how it is approaching the expected time. That simple view and map have helped people get over the boredom of waiting.

On understanding human behavior, an organization can use applied psychology to assess consumer needs and their purchasing patterns. For instance, what do consumers think when they realize prices are rising? Are they likely to increase demand, or what would be their expectations? These are questions that applied psychology would help solve and craft a strategy to harness such opportunities. Psychology is a vital link between HRM strategy and organizational performance, in that employee perceptions, attitudes, and attributions are considered principal mediators of the HRM-performance relationship (Dries, 2013). It integrates psychological theory with methods that can aid human resource managers in solving organizational problems.

As humans continue to evolve, making informed decisions in hiring and analyzing jobs could be the key to defining sustainability and profitability. The recruiting personnel must ensure the applicants have the required job elements. Cascio and Aguinis (2018) explain that different jobs require particular traits and skills. Identifying the right candidate could help improve performance and productivity.

Organizations can also use applied psychology to make crucial conclusions from a population or market. For instance, an entity can get data from the American Community Survey and use it to address questions about family structure and income that may affect the operations. Furthermore, it can also identify specific motivational tools for employees to achieve the set goals.


Cascio, W. F., & Aguinis, H. (2018). Applied psychology in talent management. SAGE Publications.

Dries, N. (2013). The psychology of talent management: A review and research agenda. Human Resource Management Review23(4), 272-285.

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