Is psychology of any relevance to business administrators or managers? If yes justify your answer and if no justify your answer. Yes, psychology is of relevance to business administrators or managers. Psychology was coined in the 16th century from 2 Greek words. Psukhe/psyche which means “breath” or “soul” and logos which means “word” or “reason” and its initial meaning was “study of the soul”. Later the definition changed to “science of mental life” when it became a science in 1879. Also in the 1920s it was commonly defined as “the scientific study of behavior”. From the 1960s till date it has taken a broader definition “the science of behavior and mental processes. Psychology also refers to the application or usage of understanding knowledge and skills to a number of areas of human activity, involving issues concerning with daily activities such as education, events, people and their task, employment, association, relationship as well as the treatment of mental-health problems. Importance of psychology Psychology is important as it is concerned with the study of behavior and mental processes and at the same time, it is also applied to many different areas of human life. Everything we do is very much related to psychology. Psychology primarily studies who and what we are, why we are like that, why we act and think like that and finally how we can improve ourselves. Psychology is important in many different ways. For example, there have been a large number of studies conducted on various illnesses. With the help of psychology, the psychologist can help in the diagnosis of different diseases such as Parkinson’s disease; Alzheimer’s disease and some other neurological diseases. By making use of psychological research, doctors have now developed medicines and even able to alleviate the impact of different illnesses.