Defining Psychological Disorders. Psychological Disorder is a psychological dysfunction with in an individual that is associated with distress or. impairment in functioning and a response that is not typical or culturally expected.Psychological dysfunction refers to a breakdown in cognitive, emotional, or behavioral functioning of the. individual.sychological Disorder is a psychological dysfunction with in an individual that is associated with distress or. impairment in functioning and a response that is not typical or culturally expected.