Psychological Theories

If you’ve ever snoozed your alarm and then been late to work or school, you may look back and ask yourself: why did I do that? Maybe your bus driver saw you running for the bus and chose to keep on driving, and you ask yourself: what was going through his mind? Or maybe the day turned out okay, because you came home to your loving partner, and you thought to yourself: why am I so compatible with this person but not others? To begin unpacking these questions and more, we can turn to psychological theories to help us understand ourselves and the people around us.

Psychological theories are systematic frameworks for understanding, predicting, and explaining human behavior and mental processes. These theories include everything from cognitive theories, which focus on mental processes such as perception and memory, to behavioral theories, which examine the relationship between stimuli and responses. Although there are many ways to explain how and why we are the way we are, it is the constant testing and refining of different psychological theories that guides research and helps us to consistently improve our understanding of humans—both within academia and beyond. 

Most Influential Psychological Theories: 

• Psychoanalytic Theory (Sigmund Freud): Focuses on the influence of the unconscious mind on behavior and uses concepts like the id, ego, superego, and psychosexual stages of development.
• Behaviorism (John B. Watson, B.F. Skinner): Emphasizes the study of observable behaviors and the role of environmental stimuli in shaping behavior, including classical conditioning and operant conditioning.
• Cognitive Development Theory (Jean Piaget): Explains how children's thinking evolves as they grow, identifying four stages of cognitive development (sensorimotor, preoperational, concrete operational, and formal operational).
• Humanistic Psychology (Carl Rogers, Abraham Maslow): Emphasizes individual potential, self-actualization, and the importance of personal growth and free will. This also includes Maslow's hierarchy of needs and Rogers' client-centered therapy.
• Social Learning Theory (Albert Bandura): Proposes that people learn behaviors through observation, imitation, and modeling, rather than solely through direct reinforcement and uses reciprocal determinism, where behavior, personal factors, and the environment interact and influence each other.

Cognition: Mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Psychoanalysis: A therapy developed aimed at exploring the unconscious mind to understand and treat psychological disorders.

Positive Reinforcement: In behaviorism, the process of encouraging or establishing a pattern of behavior by offering a reward when the desired behavior is exhibited.

Montessori Method: An educational approach developed by Dr. Maria Montessori that emphasizes self-directed learning, hands-on activities, creativity, and a love for learning and collaborative play in a child-centered environment.

Herzberg's Motivation Theory: Also known as the two-factor theory, this theory proposes that job satisfaction is influenced by two distinct sets of factors: hygiene factors and motivator factors. Hygiene factors pertain to external conditions such as the workplace environment and salary, while motivator factors are typically intangible elements like receiving recognition or opportunities for personal growth.

As long as there have been humans, there have been questions about why we think and act the way we do. There have likely been countless theories developed throughout time that we have no written record of, such as those developed by native peoples. For many, the known history of psychological theories goes back to ancient philosophical inquiries about the human mind and behavior. Early thinkers like Plato and Aristotle laid the groundwork for understanding the mind's complexities, focusing on issues of perception, memory, and motivation. Hundreds of years later, the 17th century marked a significant shift with the rise of empiricism, championed by philosophers like John Locke who proposed that knowledge is derived from sensory experience. This idea laid the foundation for later psychological theories that emphasize the role of the environment in shaping behavior.¹

The formal birth of psychology as a scientific discipline is often credited to Wilhelm Wundt, who established the first psychology laboratory in Leipzig, Germany, in 1879. Wundt's work marked the beginning of experimental psychology, where he used introspection to explore the structure of the conscious mind. His approach, known as structuralism, aimed to break down mental processes into their most basic components. Around the same time, William James in the United States was developing his own approach called functionalism, which focused on the purpose of consciousness and behavior in helping individuals adapt to their environment. These early schools of thought laid the groundwork for more complex psychological theories.¹

The early 20th century saw the emergence of several influential psychological theories that have shaped the field as we know it today. Sigmund Freud's psychoanalytic theory introduced the idea of the unconscious mind and the role of early childhood experiences in shaping personality (he’s the guy who you usually picture talking to a patient while they lay on a couch, discovering a repressed memory). While Freud's ideas were revolutionary, they were (and still are) controversial, spurring the development of alternative theories. Behaviorism, led by John Watson and later B.F. Skinner, rejected the introspective methods of the past and focused instead on observable behavior, emphasizing the role of environmental stimuli in shaping actions. Behaviorism dominated psychology from the 1920s to the 1950s, particularly in the United States, influencing everything from education to advertising.¹

Toward the mid-20th century emerged a cognitive revolution, as cognitive psychologists began challenging the behaviorist movement by reintroducing the importance of mental processes. Pioneers like Jean Piaget and Noam Chomsky argued that studying internal cognitive processes (like thinking, memory, and language) was crucial for a complete understanding of behavior. This shift led to the development of cognitive psychology, which remains one of the most prominent areas of the field today. Additionally, humanistic psychology, which was considered more of a ‘counter-movement’ to behaviorism, emerged during this time, with figures like Carl Rogers and Abraham Maslow emphasizing personal growth, self-actualization, and the inherent goodness of people. All of these diverse perspectives have contributed to a more comprehensive and multifaceted understanding of human behavior, continuing to influence psychological research and practice today.²

Plato (c. 427-347 BCE): Greek philosopher from Athens known for his works on philosophy and the mind, including the theory of forms and the allegory of the cave.

Aristotle (384-322 BCE): Greek philosopher from Stagira who studied under Plato and is renowned for his contributions to logic, metaphysics, and psychology, particularly his theory of the soul.

John Locke (1632-1704): English philosopher, often called the "father of liberalism," known for his theory of empiricism, which posits that knowledge is derived from sensory experience.

Wilhelm Wundt (1832-1920): German psychologist, often regarded as the "father of modern psychology," who established the first psychology laboratory and developed the theory of structuralism.

William James (1842-1910): American philosopher and psychologist, known as the "father of American psychology," who founded the school of functionalism and authored the first psychology textbook, The Principles of Psychology.

Sigmund Freud (1856-1939): Austrian neurologist and the founder of psychoanalysis, known for his theories on the unconscious mind, psychosexual development, and defense mechanisms.

John B. Watson (1878-1958): American psychologist, best known for founding behaviorism, which focuses on the study of observable behavior rather than internal mental processes.

B.F. Skinner (1904-1990): American psychologist and behaviorist, known for developing the theory of operant conditioning and his work on reinforcement and punishment.

Jean Piaget (1896-1980): Swiss psychologist, famous for his theory of cognitive development, which outlines how children's thinking evolves through distinct stages.

Noam Chomsky (b. 1928): American linguist, philosopher, and cognitive scientist, known for his theory of universal grammar and his critique of behaviorism in language acquisition.

Carl Rogers (1902-1987): American psychologist, one of the founders of humanistic psychology, known for his client-centered therapy and emphasis on self-actualization.

Abraham Maslow (1908-1970): American psychologist, best known for creating Maslow's hierarchy of needs, a theory that outlines the stages of human motivation from basic needs to self-actualization.

The impact of psychological theories extends far beyond academic research; scientifically understanding our own thoughts and behavior has influenced almost all aspects of modern life, shaping practices in education, marketing, public policy, and business.

Education

In the realm of education, psychological theories have revolutionized teaching and learning methodologies. For example, certain developmental theories have provided educators with insights into how children think and learn at different stages. Jean Piaget’s theory of cognitive development suggests that children progress through specific stages of cognitive growth, with each stage characterized by distinct thinking patterns.³ Understanding these stages allows teachers to adjust their teaching strategies to better match the cognitive capacity of their students. 

Meanwhile, Lev Vygotsky’s concept of the zone of proximal development explains the gap between what a student can learn on their own versus with help. This theory posits that the role of education is to provide children with experiences that are in their proximal development stage, encouraging and advancing individual learning through social interaction. Students can solve problems independently, applying knowledge from conversations with peers and teachers to gradually develop the skills to perform tasks without direct help.⁴ Understanding this theory has helped shape the role of teachers in the classroom; sometimes, it’s more about putting students in a situation where they can teach themselves to succeed rather than being explicitly taught. 

Marketing

For better or worse, psychological theories have also left a huge mark on the field of marketing and consumer behavior. Behaviorism, with its focus on conditioning and reinforcement, has been particularly influential in understanding and shaping consumer habits. Marketers have applied principles of operant conditioning to design reward systems—like loyalty programs or memberships—that encourage repeat purchases by reinforcing desired behaviors. The understanding of cognitive biases, such as the availability heuristic and the framing effect, has also allowed many marketers to craft persuasive messages that influence buyer decision-making. All of these psychological insights have helped businesses increase sales and foster brand loyalty—potentially misleading or even taking advantage of customers. 

Public policy

Public policy is another major area where psychological theories have had significant consequences. Understanding human behavior has helped policymakers create more effective campaigns to improve public health, environmental protection, education systems, and programs that better address social issues such as poverty and crime. The application of small interventions that capitalize on our biases in a nonrestrictive way (often referred to as “nudging”), has gained prominence in recent years. This approach, popularized by Richard Thaler and Cass Sunstein, is based on the idea that small changes in the way choices are presented can have a substantial impact on behavior, like automatically enrolling employees in retirement savings plans, with the option to opt-out. A change as simple as this has been shown to dramatically increase participation rates in retirement plans. 

Organizations

If you’re in a traditional workplace, you may have experienced the influence of psychological theories in your office without realizing it. Organizational behavior and human resource management have been hugely shaped by Maslow’s hierarchy of needs and Herzberg’s two-factor theory. Both of these theories have changed how companies understand and manage employee motivation and satisfaction. Maslow’s theory suggests that employees (and all humans) are motivated by a hierarchy of needs, starting with basic physiological needs like food and water and progressing to self-actualization. Thus, companies that recognize and address these needs by providing a safe working environment, opportunities for social interaction, and chances for personal growth, are more likely to foster a motivated and productive workforce (perhaps this is why having free coffee and snacks in the office is so motivating?). Herzberg’s two-factor theory, which distinguishes between hygiene factors (e.g., salary, work conditions) and motivators (e.g., recognition, achievement), has also guided organizations in designing jobs and work environments to maximize employee satisfaction. 

Psychological theories, while important to our understanding of human behavior, are theories, not facts. We can still only speculate and make educated guesses as to how and why our brains function the way they do. Many of the theories we’ve previously developed haven’t withstood the test of time, or at least not without serious criticism.

Psychoanalytic Theory

One of the most contentious figures in psychology is Freud, whose psychoanalytic theory has faced huge criticism. Although Freud's focus on the unconscious mind and his theories of psychosexual development were groundbreaking at the time, they were also largely unscientific and overly deterministic. Critics argue that many of Freud’s ideas, such as the Oedipus complex (briefly, that boys are repressing attraction to their moms and jealousy of their fathers’ genitals) and the emphasis on sexual drives, lack empirical support and are difficult if not impossible to test systematically. His theories have also been accused of being culturally biased, reflecting the patriarchal and sexually repressive values of his time, which are largely not applicable (or at least hopefully less so) today. 

Behaviorism 

Behaviorism, another major psychological theory, has also faced significant criticism, particularly for its reductionist approach. Watson and Skinner’s theory focuses exclusively on observable external behaviors and their environmental conditioning, largely ignoring the importance of internal mental processes like emotion. To no surprise, humans have a lot going on under the surface, and not taking this into account can be problematic. That’s because we are much more than machines reacting directly to the environment around us, and internal or unobservable processes (like our preferences, hunger, hormones, and social upbringing) can have dramatic influences on the way we react to stimuli. This critique helped propel the cognitive revolution to take into account the other missing piece of the puzzle: the mind. 

Cognitive Theory

Enter cognitive psychology, which has also been criticized for its heavy reliance on computational models of the mind, which can oversimplify the complexities of human cognition—after all, the brain is not a computer. Since these models usually compare the mind to a computer processing information, they’ve also been accused of neglecting the emotional, social, and cultural factors that influence thought and behavior. Thus, cognitive psychology, just like behaviorism before it, tends to focus on “universal” principles—when, of course, there are huge individual differences among people, places, and cultures. 

Humanistic Psychology

Humanistic psychology emerged as a response to both behaviorism and psychoanalysis to introduce a more optimistic view of human nature—but hasn’t escaped its share of criticisms. While prominent figures like Rogers and Maslow emphasized the potential for personal growth and self-actualization, proposing that people are inherently good and capable of achieving their full potential, many critics argue that this perspective is overly idealistic. Much like Freud’s psychoanalysis, it can be incredibly hard to test humanistic psychology empirically which can make it even harder to find acceptance from the scientific community. Also, due to the focus on the individual’s growth and self-fulfillment, it can be easy to overlook the social and structural factors that limit personal development; essentially, the individual is responsible for their own shortcomings or inadequacies, ignoring systemic issues like poverty, discrimination, and lack of access to education.

Cultural Context

Much of the existing psychology research is on a WEIRD (Western, Educated, Industrialized, Rich, and Democratic) population, which has raised concerns about the generalizability of its findings to non-WEIRD populations. All theories involve some sort of bias, and no population will ever be truly representative. The role of psychological theories in perpetuating or challenging societal norms is a controversial subject because, while the field has contributed to understanding and reducing prejudice, critics argue that some research in social psychology specifically can inadvertently reinforce stereotypes or fail to account for cultural and contextual differences. 

For example, the application of Maslow’s hierarchy of needs discussed earlier posits that individuals prioritize their needs in a specific order, starting with basic physiological needs and moving up through safety, love and belonging, esteem, and self-actualization. This model aligns well with WEIRD cultures, which tend to emphasize individualism and personal achievement since cultural values prioritize personal growth and self-fulfillment. However, in more collectivist cultures, where community, family, and social harmony are often prioritized over individual needs, Maslow’s hierarchy doesn’t fit quite as well. In addition, studies that categorize people into rigid social groups based on race, gender, or socioeconomic status may unintentionally perpetuate the very biases they aim to study. These critiques have led to a growing recognition of the need for more culturally sensitive research and a broader, more inclusive approach to studying behavior.

Behavioral Psychology in Education

Behavioral psychology—particularly the principles of operant conditioning—has been instrumental in shaping modern educational practices. Operant conditioning, a theory developed by Skinner, posits that behavior is influenced by the consequences that follow it. Specifically, reinforcement increases the likelihood of a behavior being repeated, while punishment decreases it. This approach can be applied to classroom management when teachers try to promote positive behavior that leads to academic achievement.

For instance, many schools implement reward systems like tokens or points that use positive reinforcement to encourage good behavior like completing homework on time, participating in class discussions, or staying silent during reading times. Usually, these tokens are traded in for rewards like extra recess time, which can help keep kids motivated. We can also see how punishment systems like detention or extra homework can be used to discourage unwanted or disruptive behavior. All of these systems are designed based on our understanding of different psychological theories, from how we best learn to which tools are appropriate for which ages, and have informed interventions for students with special needs, behavioral disorders, or learning disabilities. 

The Montessori Method is an educational approach that is based on principles from Piaget’s developmental psychology and Vygotsky’s zone of proximal learning principles. Montessori classrooms emphasize self-directed learning, hands-on activities, and collaborative play, giving kids the chance to explore their environment at their own pace and in their own way. Educational materials are designed to support the children’s developmental stages and foster independence, curiosity, and a love of learning: key components of the developmental theory.

Psychological Theories in Therapy 

One of the most direct applications of psychological theories is in the field of clinical psychology, where theories of human behavior and mental processes have informed the development of many therapeutic techniques. For example, many people are familiar with cognitive-behavioral therapy (CBT), as it’s one of the most widely used therapeutic approaches today. This type of therapy is grounded in cognitive theory by helping individuals identify and change distorted thinking patterns that lead to negative emotions and behaviors. This theory-based approach has proven effective in treating a variety of psychological disorders, including depression, anxiety, and PTSD.⁵

Understanding psychological theories is crucial for developing effective therapeutic approaches to provide the foundational knowledge needed to comprehend complex mechanisms underlying mental health issues. These theories can offer structured frameworks that guide therapists in assessing, diagnosing, and treating various psychological conditions and help them address the specific needs of individuals. Since so much of the work is built on tested theory, treatment can be both scientifically grounded and practically effective.

How Might Behavioral Science Transform Education?

With so much discussion about the impact of psychological theories on education, it’s important to understand some of the biggest challenges in education reform and how they can be improved. 

Financial Planning Education That Puts Humans First

Another important application is looking at how we use psychological theory to shape our financial decisions, and how banks use these same understandings for themselves. 

1. Cherry, K. (2023, May 17). A Brief History of Psychology Through the Years. Verywell Mind. https://www.verywellmind.com/a-brief-history-of-psychology-through-the-years-2795245 
2. Wikipedia contributors. (2023, August 7). Cognitive revolution. Wikipedia, The Free Encyclopedia. https://en.wikipedia.org/wiki/Cognitive_revolution
3. Cherry, K. (2023, July 20). Piaget’s Stages of Cognitive Development. Verywell Mind. https://www.verywellmind.com/piagets-stages-of-cognitive-development-2795457
4. McLeod, S. (2023). Zone of Proximal Development. Simply Psychology. https://www.simplypsychology.org/zone-of-proximal-development.html 
5. Gaudiano, B. A. (2008). Cognitive-behavioural therapies: achievements and challenges. Evidence-based mental health, 11(1), 5-7.