Most aspects of sociology have some bearing on the way that businesses operate effectively. Studies into human behavior have shown how hierarchies arise, and what roles people take in them, according to their qualities and abilities. Individuals who rise to leadership positions attract followers, who then exert pressure on those above them to ensure they remain loyal. Good bosses are not merely concerned about doing their jobs properly, but understand the psychological processes that occur within groups of people, and try to encourage loyalty among employees.
Human resource management, certainly more than leadership, is dependent upon social psychology principles. Its function includes assuring that individual workers feel that their contribution is valued and appreciated and that external pressures don’t impact their work. Techniques of motivation and an understanding of attitudes or ‘in-groups’ are also essential in industrial relations, to make certain that conflicts might be swiftly and amicably solved.
