Final answer:
Companies use behavioral science to increase understanding of employee and customer behavior, improve performance-appraisal systems, and predict decision-making considering emotional states, therefore enhancing productivity and efficiency.
Step-by-step explanation:
Companies employ behavioral science to better understand and predict the behavior of their employees and customers, leading to increased productivity and strategic competitive advantages. This discipline integrates insights from psychology into economics and management, affecting areas such as motivation, efficiency, and decision-making. Industrial and organizational psychology is a significant aspect of behavioral science in businesses where it helps in designing performance-appraisal systems to evaluate and improve employee performance. Behavioral economics is another vital component that takes into account the emotional and psychological state of individuals, affecting their perception of value and decision-making, especially in financial contexts.
By understanding psychological diversity in a global and diverse workforce, companies can create fair and positivity-focused work evaluations, tailor motivation strategies, and predict decisions based on ranges of emotional states, making actions predictable even under what may seem like irrational conditions. This deepened understanding of decision-making helps companies tailor their strategies to the nuanced behavior of individuals, thereby enhancing overall efficiency and performance.