The only psychological part is when everyone laughs at you because you arrived for work an hour early or they are mad at you because you are an hour late.

The whole idea is to utilize as much of the daylight in area where the leingth of the day changes radically from summer to winter.
Stolen Shamelessly from
Wikipedia (
http://en.wikipedia.org/wiki/Daylight_saving_time)
"Modern DST was first proposed by the New Zealand entomologist George Vernon Hudson, whose shift-work job gave him leisure time to collect insects, and led him to value after-hours daylight.[2] In 1895 he presented a paper to the Wellington Philosophical Society proposing a two-hour daylight-saving shift,[18] and after considerable interest was expressed in Christchurch, New Zealand he followed up in an 1898 paper.[19] Many publications incorrectly credit DST's invention to the prominent English builder and outdoorsman William Willett,[20] who independently conceived DST in 1905 during a pre-breakfast ride, when he observed with dismay how many Londoners slept through a large part of a summer's day.[21] An avid golfer, he also disliked cutting short his round at dusk.[22] His solution was to advance the clock during the summer months, a proposal he published two years later.[23] The proposal was taken up by the Liberal Member of Parliament (MP) Robert Pearce, who introduced the first Daylight Saving Bill to the House of Commons on 12 February 1908.[24] A select committee was set up to examine the issue, but Pearce's bill did not become law, and several other bills failed in the following years. Willett lobbied for the proposal in the UK until his death in 1915.
Starting on 30 April 1916, Germany and its World War I allies were the first to use DST (ger.: Sommerzeit) as a way to conserve coal during wartime. Britain, most of its allies, and many European neutrals soon followed suit. Russia and a few other countries waited until the next year and the United States adopted it in 1918. Since then, the world has seen many enactments, adjustments, and repeals.[25]"
Ok so that explains the when and who, the how is to come (
Stolen from the same Wiki):
"
In a typical case where a one-hour shift occurs at 02:00 local time, in spring the clock jumps forward from 01:59 standard time to 03:00 DST and that day has 23 hours, whereas in autumn the clock jumps backward from 01:59 DST to 01:00 standard time, repeating that hour, and that day has 25 hours. A digital display of local time does not read 02:00 exactly at the shift, but instead jumps from 01:59:59.9 either forward to 03:00:00.0 or backward to 01:00:00.0. In this example, a location observing UTC+10 during standard time is at UTC+11 during DST; conversely, a location at UTC−10 during standard time is at UTC−9 during DST."
I'll let you digest that, then when you are suitably full of useless information, you can read the rest of the Wikipedia article