Business Psychology and/or Psychology of Business are words used as synonyms. Yet the difference is becoming distinct when renewed awareness about the way Business is conceived by different cultures is discussed in professional circles.

For India, like other similar Countries, Business and Trade has been the way of engineering Society, leveraging upon tradition, cultural roots, caste system and ways of the Monsoon winds. Business is not a proving point or the bone of contention. Keeping the village or the region in tact and take everyone along was the common desideratum of Business transactions and Business Goals.

Give and take, barter, mutual exchange of resources, valuing common, community property and jointly protecting the natural resources and such self managing ethics governed the overarching goal of all business across the country.

However History has to happen and it started happening, when the silk route, and the carpet route and the spice route accommodated foreign traders to set foot into our shores and rare products from other countries found place in Palaces and Festivals of the multitude of Rajas and Princely States. Self worth was motivated by comparison than competitive spirit.

Then ‘need ethics’ gave room to ‘greed ethics' and in turn ethics gave room to ’ethnicity ethics’ thus Business became a way to level and claim for sanctioned privileges of the business class. The other route to leveling was religion, the institution of marriage and later on politics.

The entrepreneurship movement witnessed three compartments of psychology influencing the way businesses were to be done, thus offering new choices and business models to emerge.

Of importance are the three distinct psychological stances that drove Business to start, stay and Grow.

Creed Psychology / Need Psychology and Greed Psychology.

What made the difference is the way bargaining took place. These became trade secrets with Business families and till date has not been researched and published as knowledge.

Investment patterns also was trade specific, but source of business funding was by and large from savings of the matriarch or patriarch and sale of own resources. Shame being the significant deterrent; to become a debtor was anathema and joint families will step in bale out a failing business to protect the family name or the Icon from public shame and abuse.

So began the roots of Family Business. However…..

There was scope and room for new generation business; at any point in time in history. The active gene that takes risk, looks at old things with new light, discovers opportunities in problems, driven by the desire and fire of daring and scaling new heights has manifested in many ways like the Vasco da gamas and the Hillary’s or the Ambanis and the Naryanmurthys or Steve Jobs.

The thrill of challenging oneself to the limits of inquiry, action, forgiveness and deception are seen in epical characters in the Bible, Mahabharat and the saintly traditions across the globe.

Closing narrower, the India specific Business psychology is opening doors of inquiry into the different ways of doing business by/in the various states in retail, manufacturing and public transportation and hospitality Industries. Do not we say in passing – the Punjabi way of business, the Gujarati businessman, the Chettiar business, the Marwari approach, the Islamic code for business the Kerala courtesy for tourism - and so on?

The question then is what governs the psychology of doing and starting businesses of tomorrow to which the teaming professionals are going to claim their berths? What is the purpose of business for each of these different ways? Who sets the boundary conditions to choose the product or service, the territory to sway, the price code, the credit code that rules competition, the building of assets, the sharing of profits, the handing over the mantle etc? Do they have to follow the tenets of scientific strategic management propounded by the theorists and transnational models or discover the new wave hybrid entrepreneurs to emerge? It is time for learning networks and communities of practices to cross fertilize the ‘topical’ with the ‘typical’ and facilitate deeper understanding of ‘native’ psychologies that can give a renewed spirit to the ways Businesses are done in the future.

Paradigm shifts:

Personality of a Business enterprise is shaped by the Psychology of running the enterprise Institution or Business - of the founding fathers; be it an University college, the PSUs, Research Institutions, Hospital or Hotel chain, or airlines etc. Over years of experience of series of trade cycles the psychology matures to become the mainstay for everyone to emulate and build on; every one meaning all stake holders. What brings sustainability to Business is the entrenchment of a ‘UBP’ like the USP – Unique Business psychology.

Research following the 16PF era is the Kets de Vries and Millers (1984) attempt to conceptualize 5 neurotic styles that drive and manifest ‘Leaders’ styles.
1. Paranoid: Suspicious of others and extremely vigilant to hidden threats, susceptible to suggestibility and being set up by informants.
2. Compulsive: Tend to be perfectionist in what they do and always concerned with the right way of doing things. Depend on structures and predictability of results and efforts.
3. Dramatic: Frequently draws attention to themselves and show a desire for activity and excitement.
4. Depressive: Display feeling of guilt/shame/inadequacy and hopelessness and use pity to motivate others in Organisation to feel powerful and contribute.
5. Schizoid: Symptoms of withdrawal, lack of involvement, sulking and lack of excitement – can collude with informants and internal manipulators.

To understand the Business do we have to understand the psychology of Business or the Business Leader? (Refer Eyesink’s typology of extraversion; what is called as second order factor)

Also the psychographic profile including the personal and social constructs of specific segments of the customers who matter influence the Business Psychology of a Trade or Organisation.

The Psychology of Business is also different for the first generation start up Business leader and the Iconic Founder’s progeny who get into Business.

There are four levels of attention that draws the time and energy of the Business leader that shapes and suits the psychology of the individual who runs the business.

The basic level are the ‘ Micro determinants’ the nitty grittys of routines, follow-ups, planning etc.

The second level is the ‘Macro determinants’ like the market scenario, government legislations, cost of finance etc

The third level are the ‘Mega determinants’ like the scope for and opportunities for expansion, mergers acquisitions, exports , moving from pan region to pan India to pan Asia etc

The fourth level are the “Meta determinants’ like the hidden intentions of doing Business – to enter politics, to amass disproportionate wealth, to enter philanthropic domain, to become a megalomaniac or find berths for every member of the Joint family or ethnic group etc

[ Fourth level conversations happen with well wishers, elders of community, experts and professional researchers, loyalists, and the inner circle ]

The fourth level is the level of influencing future Business houses to become environment friendly, support work life balance in every thing they do, stakeholders sharing the surplus, innovate and encourage intelligent employment, and align to nation building.