Back

The Psychology of Understanding People

Getting your Trinity Audio player ready...

You’re catching up with a group of friends for dinner. Everyone’s likeable and interesting. Individually, you’d swear they’re the best company you could ask for. But something’s off. Instead of great conversation, there’s awkward silences, misunderstood jokes and a vibe that feels just a little mismatched.

Now, take that same feeling and bring it to the workplace. You’ve assembled a team of talented colleagues. Each with impeccable resumes, glowing recommendations, and proven track records. On paper, they’re an unstoppable force. Yet in practice, meetings drag on, collaboration feels stilted, and the results are underwhelming. Why?

The truth is, the dynamics of human behavior don’t always align neatly with logic. Or qualifications for that matter. People aren’t just resumes or portfolios. Every interaction is layered with unseen psychological forces. Personality clashes, biases, communication styles. All of which can make or break the effectiveness of a group.

This is where the science of psychology goes from theoretical to practical. To applied psychology. It’s not just about understanding people on a surface level. It’s about diving into what drives us, how we perceive the world, and why we interact the way we do. To understand how to bring out the best in us and others we need to go deeper. Into the nuances of human behavior and personality.

But before we dive deep into its applications in business and leadership, let’s take a step back. Let’s first explore where these ideas first began.

The study of personality and behavior has a fascinating history. While psychology’s early days focused on dysfunction and disorders, it was Carl Jung who shifted the lens to understanding individual differences and how they shape our interactions. Jung’s groundbreaking work on personality types laid the foundation for tools like the Myers-Briggs Type Indicator (MBTI). And in hindsight to all the personality quizzes that popup now and then on your phone while scrolling the web.

But even before Jung, there were whispers of this in philosophy. Thinkers like Hippocrates categorized human temperaments, and later, Immanuel Kant explored character traits in his works. Jung, however, brought rigor and depth to the field. Introducing archetypes, cognitive functions, and the now-famous dichotomy of introversion and extroversion.

Fast forward to today, and these ideas have merged with modern behavioral psychology. Creating practical tools for understanding the human psyche. Books like The Psychology of Human Behavior by David W. Martin offer actionable insights into what drives people, while the original work, Jung’s book titled Psychological Types provides a more in-depth exploration of personality. Together, they form a guide for navigating the messy, beautiful complexity of human interaction in business and private life.

The Psychology of Human Behavior: Insights from David W. Martin

David W. Martin’s The Psychology of Human Behavior doesn’t just skim the surface of why people act the way they do. He dives into the root causes, exploring motivation, perception, social influence, and action in detail. Imagine trying to solve a puzzle without knowing what the pieces are supposed to create. That’s what navigating human behavior feels like without a guide. Martin’s work is that guide.

For entrepreneurs, it’s not just an academic read. It’s a goldmine. Understanding people and the psychological drivers behind why customers buy (or don’t). Why teams thrive (or implode), and why you might second-guess a major decision after a sleepless night could be the edge you need. His insights transform abstract concepts like cognitive biases and social dynamics into practical tools. That you can apply to marketing strategies, leadership styles, and personal development. Think of trying to decode a customer’s objections, figure out how to get your team on the same page, or simply make better decisions under pressure, Martin’s work gives you the playbook.

1 Motivation: The Why Behind Actions

He emphasizes that behavior is rooted in two main drivers: extrinsic motivations (external rewards like money or recognition) and intrinsic motivations (internal rewards like personal growth or fulfillment). Imagine a marketing campaign for a fitness app. If your audience is motivated by extrinsic factors, you’d highlight discounts or reward points. But for intrinsically motivated users, you’d focus on how the app helps them achieve long-term health goals or build confidence.

2 Perception: The Lens Through Which We See the World

Perception isn’t just about what’s real—it’s about how we interpret it. Cognitive biases play a massive role here, from confirmation bias (favoring information that supports existing beliefs) to availability bias (overestimating the importance of easily recalled information). If you’re introducing a groundbreaking product, don’t assume your audience will immediately see its value. They’re likely anchored to what they already know. Martin’s advice? Frame your message in a way that aligns with their current worldview, then gently guide them toward your perspective.

3 Social Influence: The Power of the Group

Martin explains how social contexts shape behavior, whether it’s peer pressure, conformity, or social proof. For businesses, this means leveraging group dynamics to build trust and influence. Customer testimonials or case studies from relatable peers can be far more convincing than abstract claims about your product.

Psychological Types: Jung’s Masterwork on Personality

Jung’s Psychological Types digs into the core of why people see the world the way they do. It feels like a manual to the human operating system. Jung wasn’t content to just observe that people are different. He wanted to map out those differences, creating a framework to explain how we perceive, decide, and interact. And the results? Groundbreaking.

At the heart is Jung’s belief that personality isn’t random chaos. It’s a structured dance between how we process information and how we make choices. He introduced the foundational concepts of introversion and extroversion. Showing how some people draw energy from within while others thrive on external engagement. But he didn’t stop there. Jung’s cognitive functions (thinking, feeling, sensation, and intuition) paint a vivid picture of the mental mechanics behind our actions.

This wasn’t just about self-awareness for Jung. It was a way to make life less of a mystery. When navigating a friendship, leading a team, or pitching an investor, understanding these personality dynamics means fewer misunderstandings, less frustration, and a whole lot more clarity.

You’re at a brainstorming session with your team. One person is firing off rapid, big-picture ideas about where the company could be in five years, while another keeps asking practical, detail-oriented questions about the next step for today. Sound familiar? This isn’t just a difference in focus. It’s the clash of intuition versus sensation, two of Jung’s cognitive functions. Recognizing these patterns can turn a chaotic meeting into a powerhouse of collaboration, where each perspective is harnessed instead of ignored.

What makes Jung’s work so timeless is its relevance in every facet of life. It’s why his ideas are the foundation of tools like the Myers-Briggs Type Indicator (MBTI). But you don’t have to take a personality test to see his insights in action. Jung’s framework helps decode everything from your colleague’s insistence on planning every detail to your partner’s tendency to make decisions based on gut feelings rather than spreadsheets. In essence, he gives you the blueprint for navigating human interactions with more empathy and precision.

For entrepreneurs and leaders, Psychological Types is a game-changer. It’s not just about understanding the people you work with. It’s about building bridges. The extroverted sales rep, the introverted developer, the detail-obsessed strategist, and the big-picture dreamer all bring something unique to the table. Jung’s insights offer a way to align these differences, turning them into strengths rather than friction points.

Jung also believed these dynamics weren’t fixed. Personalities aren’t immovable objects. They’re dynamic and evolving. That’s not just liberating. It’s empowering. It means that by understanding these psychological tendencies, you’re not boxed in. You’re set free to grow and adapt.

So, if you’ve ever wondered why a team full of talented individuals somehow feels like it’s missing the mark, or why certain clients resonate with your pitch while others leave you scratching your head, Jung has some answers. And they might just change how you see yourself. 

Introversion vs. Extroversion: The Energy Divide

Introverts draw energy from within, preferring reflection and depth, while extroverts thrive on external stimulation and social interaction. An extroverted manager might dominate a brainstorming session, leaving introverted team members sidelined. Knowing this, a leader can create a balanced environment, perhaps by allowing silent idea submissions before open discussions.

Cognitive Functions: The Building Blocks of Thinking

Jung’s model introduces four cognitive functions: thinking, feeling, sensing, and intuition—each oriented inwardly or outwardly.

Here’s a breakdown of Jung’s four cognitive functions with relatable examples for each in the context of sales:

1 Thinking Types: The Spreadsheet Enthusiasts

  • Who they are: Analytical, logical, and big fans of data over drama. They’re the ones who want to know why and how in precise detail.
  • How to pitch: Hit them with the numbers, graphs, and well-organized slides. They won’t be impressed by your enthusiasm alone. They need hard proof.

You’re selling software to a CFO who double-checks your financial projections mid-meeting. Instead of saying, “Our product will save you tons of money!” try, “Based on a 15% reduction in inefficiencies, your ROI should exceed $250,000 within the first 12 months.” Bonus points if you include a spreadsheet so they can fact-check it themselves.

2. Feeling Types: The Heartfelt Believers

  • Who they are: Compassionate, values-driven, and keen on emotional alignment. They want to know how your product impacts people and aligns with their ideals.
  • How to pitch: Share a compelling story about how your product helped someone or emphasize the emotional benefits.

You’re pitching a sustainable fashion brand to a buyer who loves “saving the planet one stitch at a time.” Instead of just talking about market demand, say, “Each jacket sold prevents 15 plastic bottles from ending up in the ocean. Imagine your customers wearing something that makes them feel good about their impact on the world!” Cue the heartfelt nods.

3. Sensing Types: The Here-and-Now Pragmatists

  • Who they are: Practical, detail-oriented, and focused on the concrete realities of the present. These folks aren’t interested in pie-in-the-sky visions—they want actionable, step-by-step plans.
  • How to pitch: Keep it grounded. Talk about specifics, like delivery timelines, implementation steps, or tangible results.

You’re selling a new CRM system to a team leader who asks, “How fast can we get this running?” Don’t reply with “This could revolutionize your customer experience!” Instead, say, “We’ll onboard your team in three days, integrate your existing data in two weeks, and have you fully operational by the end of the month.” Bam—instant credibility.

4. Intuitive Types: The Visionaries

  • Who they are: Big-picture thinkers who love ideas, possibilities, and a touch of idealism. They’re less interested in the nitty-gritty details and more captivated by the why and what could be.
  • How to pitch: Paint a vivid picture of the future. Talk about long-term potential, trends, and how your product plays a role in the grand scheme of things.

You’re pitching a subscription-based eco-friendly packaging solution to a founder of a fast-growing e-commerce brand who says, “We’re looking to lead the sustainability movement in our industry.” Instead of focusing on the technicalities of material sourcing or recycling stats, say, “With this packaging, your brand won’t just follow the sustainability trend. You’ll define it. Imagine your unboxing experience becoming the gold standard for eco-conscious brands, featured in every green initiative from here on out.” Watch them lean in, envisioning their brand as the next sustainability icon.

The art of persuasion is in tailoring your approach. Thinking types want logic. Feeling types crave connection. Sensing types need details, and intuitive types seek vision. Get it right, and you’ll not just sell a product. You’ll build lasting trust and rapport.

Modern psychology has not only validated but expanded upon Jung’s theories. Bringing them into sharper focus. For instance, neuroscience studies reveal distinct brain activation patterns that align with Jung’s thinking and feeling types, providing a biological basis for these preferences. In team dynamics, research published in Personality and Social Psychology Review  highlights how diverse personality types can significantly enhance problem-solving and creativity. Provided they are effectively managed. Even in branding, a 2019 study from the Journal of Marketing Research shows how aligning brands with Jungian archetypes fosters greater consumer trust and loyalty. Proving that his insights remain profoundly relevant across disciplines.

Integrating personality insights into team dynamics can transform the way you operate you business, making interactions more productive and relationships more harmonious. While Jung’s Personality Types and the resulting MBTI offer an accessible framework for understanding interpersonal styles, the Big Five personality traits provide a robust, research-backed model that delves deeper into individual behaviors and preferences. Together, they present a powerful combination for fostering high-performance teams.

The Big Five traits (Openness to Experience, Conscientiousness, Extraversion, Agreeableness, and Neuroticism) offer clear insights into how people interact, solve problems, and approach challenges. Unlike the categorical MBTI, the Big Five operates on a spectrum, enabling you to identify nuanced differences among team members and tailor their approaches accordingly.

Understanding the Big Five allows you to anticipate how individuals might contribute to or clash within a team. For example, high Openness individuals are likely to suggest innovative solutions but might resist structured processes, while those with high Conscientiousness ensure meticulous planning but may struggle with adaptability.

1. Openness to Experience: The Creative Visionaries

High-Openness folks are your “big idea” people. The ones who dream up ways to reinvent your product line with neon dolphins or build a company TikTok that actually works. But, let’s face it, these visionaries often need someone to say, “Hey, maybe let’s not spend the entire budget on holographic swag bags.”

Enter the low-Openness realists. These are the folks who like their processes predictable and their coffee black. They might resist newfangled ideas, but they’ll also be the first to point out when your brainstorming session has turned into a bad episode of Shark Tank.

The magic happens when these two collide: the creatives push the boundaries, and the pragmatists keep the wheels from falling off. Pair a wild marketer with a grounded project manager, and you’ve got innovation that doesn’t spiral into chaos.

2. Conscientiousness: The Reliable Executors

The high-Conscientiousness types are the ones you want managing your deadlines. They’ll color-code your calendar, double-check your PowerPoint, and probably remind you that your meeting starts in five minutes. These people are productivity incarnate, but give them a situation that demands flexibility, and they might short-circuit.

Meanwhile, low-Conscientiousness types might forget there even is a meeting, but they’ll roll with the punches and come up with something brilliant on the fly. They thrive in chaos and bring spontaneity to the table.

Pair these opposites together, and you’ve got a team that’s both meticulously prepared and adaptable when the plan inevitably goes sideways.

3. Extraversion: The Energizers and Reflectors

Extroverts light up a room. They’re the ones who’ll dominate meetings, pitch your product with gusto, and probably convince someone at the office party to join a karaoke duet. But let’s be honest they can sometimes overshadow the introverts, who are quietly coming up with the ideas that actually make the product worth pitching.

To balance the energy, leaders should give introverts the space to contribute in their own way. Set up asynchronous brainstorming tools or give them a heads-up before meetings so they can prepare their thoughts. The result? A dynamic where extroverts drive the energy, and introverts deliver the depth.

4. Agreeableness: The Peacekeepers and Realists

High-Agreeableness people are the ones who bake cookies for the team meeting. They keep the peace, smooth over conflicts, and make everyone feel heard. But they can struggle with saying no or pushing back on bad ideas. Enter their low-Agreeableness counterparts—those who aren’t afraid to rock the boat, challenge assumptions, or just plain say, “That’s a terrible idea.”

Together, these two create a perfect balance. The peacekeepers make sure the team doesn’t devolve into a shouting match, while the challengers ensure decisions are well-vetted and not just the path of least resistance.

5. Neuroticism: The Empaths and Stabilizers

The high-Neuroticism folks feel everything. They’re the emotional barometers of your team. Quick to notice when morale dips or when a client seems unhappy. But they can also get overwhelmed under pressure.

On the flip side, the low-Neuroticism types are cool as cucumbers. They’re the ones you want around when the proverbial fan is hit because they’ll calmly remind everyone to focus on solutions. Together, these two groups create a team that’s both emotionally aware and emotionally steady.

You can introduce Big Five personality assessments to identify team members’ strengths, weaknesses, and potential synergies. For instance, pairing a high-Openness innovator with a low-Neuroticism stabilizer might create a team dynamic that is both creative and grounded, capable of handling big ideas without losing focus.

Even without formal assessments, paying attention to communication styles and behavior can offer valuable clues about personality traits. For example:

  • Someone who frequently takes initiative and thrives in group discussions is likely high in Extraversion.
  • A team member who meticulously reviews every detail of a project likely scores high on Conscientiousness.

By observing and adapting to these traits, you can foster collaboration, enhance problem-solving, and create a more cohesive, high-performing team.

Combining Martin’s and Jung’s insights offers a roadmap for navigating the human side of business:

  1. Understand Your Customers: Map out their motivations (extrinsic vs. intrinsic) and tailor your messaging accordingly.
  2. Build Balanced Teams: Leverage personality types to ensure diversity in thought and approach. Introverts for depth, extroverts for energy; thinkers for logic, feelers for empathy.
  3. Communicate Effectively: Be mindful of perception and cognitive biases. Frame your ideas in ways that resonate with your audience’s worldview.
  4. Tell a Compelling Story: Use archetypes to create a brand narrative that connects with your audience on a deeper level.

If you’re crafting a marketing campaign, negotiating with partners, or building a team, the principles laid out by Martin and Jung give you the tools to connect, influence, and lead with empathy and precision.

In a world driven by data and technology, the human touch remains irreplaceable. By mastering the art and science of personality types, you’re not just running a business. You’re building relationships, solving problems, and making a lasting impact.

So the next time you’re in that pitch meeting and something feels “off,” remember: the answer lies not in what you’re saying, but in how you’re connecting.

David P. Ban
David P. Ban
With a background in applied and clinical psychology, computer science, and a decade of building startups and brands, I support founders and business builders with psychology-driven insights, actionable strategies, and hands-on agency services to turn their vision into reality.