Organizational Behavior Explained: Definition,
Importance, Nature
Organizational Behavior (OB) is the study of human behavior in organizational settings, the
interface between human behavior and the organization, and the organization itself.
Organizational Behavior researchers study the behavior of individuals primarily in their
organizational roles.
One of the main goals of organizational behavior is to revitalize organizational theory and
develop a better conceptualization of organizational life.
Organizational Behavior is the study and application of knowledge about how people,
individuals, and groups act in organizations. It does this by taking a system approach.
That is, it interprets people-organization relationships in terms of the whole person, whole group,
the whole organization, and whole social system.
Its purpose is to build better relationships by achieving human objectives, organizational
objectives, and social objectives.
Organizational Behavior is;
A Separate Field of Study and not a Discipline Only.
An Interdisciplinary Approach.
An Applied Science.
A Normative Science.
A Humanistic and Optimistic Approach.
A Total System Approach.
A Separate Field of Study and not a Discipline Only
By definition, a discipline is an accepted science that is based on a theoretical foundation. But, OB has a
multi- interdisciplinary orientation and is, thus, not based on a specific theoretical background.
An Applied Science
The very nature of OB is applied. What OB basically does is the application of various research
to solve the organizational problems related to human behavior.
The basic line of difference between pure science and OB is that while the former concentrates
of fundamental research, the latter concentrates on applied research.
OB involves both applied research and its application in organizational analysis. Hence, OB can
be called both science as well as art.
A Normative Science
Organizational Behavior is a normative science also. While the positive science discusses only
cause effect relationship, OB prescribes how the findings of applied research can be applied to
socially accepted organizational goals.
Thus, OB deals with what is accepted by individuals and society engaged in an organization.
Yes, it is not that OB is not normative at all.
In fact, OB is normative as well that is well underscored by the proliferation of management
theories.
A Humanistic and Optimistic Approach
Organizational Behavior applies humanistic approach towards people working in the
organization. It deals with the thinking and feeling of human beings. OB is based on the belief
that people have an innate desire to be independent, creative and productive.
It also realizes that people working in the organization can and will actualize these potentials if they are
given proper conditions and environment. Environment affects performance or workers working in an
organization.
A Total System Approach
The system approach is one that integrates all the variables, affecting organizational functioning.
The systems approach has been developed by the behavioral scientists to analyze human
behavior in view of his/her socio-psychological framework.
Man’s socio-psychological framework makes the man a complex one and the systems approach
tries to study his/her complexity and find a solution to it.
Objectives of Organizational Behavior
The organizations in which people work have an effect on their thoughts, feelings, and actions.
These thoughts, feelings, and actions, in turn, affect the organization itself.
Organizational behavior studies the mechanisms governing these interactions, seeking to identify
and foster behaviors conducive to the survival and effectiveness of the organization.
1. Job Satisfaction.
2. Finding the Right People.
3. Organizational Culture.
4. Leadership and Conflict Resolution.
5. Understanding the Employees Better.
6. Understand how to Develop Good Leaders.
7. Develop a Good Team.
8. Higher Productivity.
Job Satisfaction
Understanding organizational behavior can shed light on the factors that can foster or hamper job
satisfaction, such as physical settings, organizational rewards and punishments or work-group
characteristics.Job satisfaction, in turn, can foster higher productivity and reduced turnover, while
providing more leverage for the recruitment of top talent.
Finding the Right People
A ship with all sails and no anchors would flounder, one with all anchors and no sails would not
get anywhere.
Organizational behavior can be helpful for finding the right mix of talents and working styles
required for achievement of the task at hand.
This can assist in deciding who to include in a team or task force, as well as in deciding who to
promote to a leadership position or even the ideal profile for new hires.
Organizational Culture
As organizations grow larger, it may become difficult to keep a sense of common purpose and
unity of direction.
Organizational behavior is useful for understanding and designing the communication channels
and leadership structures that can reinforce organizational culture.
As rapidly evolving business environments force organizations to adapt, entering, for example,
into global markets or utilizing virtual workforce, organizational behavior can assist in
maintaining a clear identity without losing flexibility and adaptability.
Leadership and Conflict Resolution
Playing by the book and not making waves may be fine for some organizations, but the command-and-
control mentality of the manufacturing age may become counterproductive in the knowledge market.
Organizational behavior can assist in fostering leadership, pro-activity and creative problem-
solving.
When creativity is allowed, the divergence of opinions is unavoidable, but- organizational
behavior can provide the leadership and the arbitrage dynamics required for turning conflicts into
constructive idea exchanges.
Understanding the Employees Better
Organizational behavior studies help us understand why employees behave the way they do, and
also thereby predict how they are going to behave m the future.
Understand how to Develop Good Leaders
Organizational behavior patterns help in predicting who among the employees have the potential
to become leaders.
They also teach us how to mold these employees so that their leadership potential is utilized to
its fullest.
Develop a Good Team
An organization is only as good as the weakest member of its team.
It is essential that all members of the team work in coordination and are motivated to work
together to achieve the best results.
The teamwork theories of organizational behavior are an essential tool in the hands of any
manager.
Higher Productivity
All this leads us to the most important goal of achieving the highest productivity in realizing the
visions and goals of any organization.
If implemented well, the organizational behavior principles help in motivating all the members to
do their best. The levels of motivation can be the difference between a good and a bad result.
Really organizational Behavior has so many objectives by which it serves the organizations,
individuals, groups and in a word all the stake holders.
Main Challenges and Opportunities of Organizational Behavior
1. Improving Peoples’ Skills.
2. Improving Quality and Productivity.
3. Total Quality Management (TQM).
4. Managing Workforce Diversity.
5. Responding to Globalization.
6. Empowering People.
7. Stimulating Innovation and Change.
8. Emergence of E-Organisation & E-Commerce.
9. Improving Ethical Behavior.
10. Improving Customer Service.
11. Helping Employees Balance Work-Life Conflicts.
Improving People’s Skills:
Technological changes, structural changes, environmental changes are accelerated at a faster rate
in the business field.
Unless employees and executives are equipped to possess the required skills to adapt those
changes, the targeted goals cannot be achieved in time. These two different categories of skills –
managerial skills and technical skills.
Some of the managerial skills include listening skills, motivating skills, planning and organizing
skills, leading skills, problem-solving skill, decision-making skills etc.
These skills can be enhanced by organizing a series of training and development programs,
career development programs, induction, and socialization etc.
Improving Quality and Productivity
Quality is the extent to which the customers or users believe the product or service surpasses
their needs and expectations.
For example, a customer who purchases an automobile has a certain expectation, one of which is
that the automobile engine will start when it is turned on.
If the engine fails to start, the customer’s expectations will not have been met and the customer
will perceive the quality of the car as poor. The key dimensions of quality as follows.
Performance: Primary rating characteristics of a product such as signal coverage, audio
quality, display quality etc.
Features: Secondary characteristics, added features, such as calculators, and alarm clock
features in hand phone
Conformance: Meeting specifications or industry standards, workmanship of the degree
to which a product’s design or operating characteristics match pre- established standards
Reliability: The probability of a product’s falling within t a specified period of time
Durability: It is a measure of product’s life having both economic and technical
dimension
Services: Resolution of problem and complaints, ease of repair
Response: Human to human interfaces, such as the courtesy of the dealer « Aesthetics:
Sensory characteristics such exterior finish
Reputations: Past performance and other intangibles, such as being ranked first.
More and more managers are confronting to meet the challenges to fulfill the specific
requirements of customers.
In order to improve quality and productivity, they are implementing programs like total quality
management and reengineering programs that require extensive employee involvement.
Total Quality Management (TQM)
It is a philosophy of management that is driven by the constant attainment of customer
satisfaction through the continuous improvement of all organizational process.
The components of TQM are;
(a) An intense focus on the customer,
(b) Concern for continual improvement,
(c) Improvement in the quality of everything the organization does,
(d) Accurate measurement and,
(e) Empowerment of employees.
Managing Workforce Diversity
This refers to employing different categories of employees who are heterogeneous in terms of
gender, race, ethnicity, relation, community, physically disadvantaged, elderly people etc.
The primary reason to employ heterogeneous category of employees is to tap the talents and
potentialities, harnessing the innovativeness, obtaining synergetic effect among the divorce
workforce.
In general, employees wanted to retain their individual and cultural identity, values and life
styles even though they are working in the same organization with common rules and
regulations.
The major challenge for organizations is to become more accommodating to diverse groups of
people by addressing their different life styles, family needs, and work styles.
Responding to Globalization
Today’s business is mostly market driven; wherever the demands exist irrespective of distance,
locations, climatic Conditions, the business
operations are expanded to gain their market share and to remain in the top rank etc. Business
operations are no longer restricted to a particular locality or region.
Company’s products or services are spreading across the nations using mass communication, the
internet, faster transportation etc.
More than 95% of Nokia (Now Microsoft) hand phones are being sold outside of their home
country Finland.
Japanese cars are being sold in different parts of the globe. Sri Lankan tea is exported to many
cities around the globe.
Garment products of Bangladesh are exporting in USA and EU countries. Executives of
Multinational Corporation are very mobile and move from one subsidiary to another more
frequently.
Empowering People
The main issue is delegating more power and responsibility to the lower level cadre of
employees and assigning more freedom to make choices about their schedules, operations,
procedures and the method of solving their work-related problems.
Encouraging the employees to participate in work related decision will sizable enhance their
commitment to work.
Empowerment is defined as putting employees in charge of what they do by eliciting some sort
of ownership in them. Managers are doing considerably further by allowing employees full
control of their work. Movement implies constant change An increasing number of organizations
are using self-managed teams, where workers operate largely without a boss.
Due to the implementation of empowerment concepts across all the levels, the relationship
between managers and the employees is reshaped.
Managers will act as coaches, advisors, sponsors, facilitators and help their subordinates to do
their task with minimal guidance.
Stimulating Innovation and Change
Today’s successful organizations must foster innovation and be proficient in the art of change;
otherwise, they will become candidates for extinction in due course of time and vanished from
their field of business.
Victory will go to those organizations that maintain flexibility, continually improve their quality,
and beat the competition to the market place with a constant stream of innovative products and
services.
For example, Compaq succeeded by creating more powerful personal computers for the same or
less money than EBNM or Apple, and by putting their products to market quicker than the bigger
competitors.Amazon.com is putting a lot of independent bookstores out of business as it proves
you can successfully sell books from an Internet website.
Emergence of E-Organisation & E-Commerce
It refers to the business operations involving the electronic mode of transactions. It encompasses
presenting products on websites and filling the order.
The vast majority of articles and media attention given to using the Internet in business are
directed at online shopping.
In this process, the marketing and selling of goods and services are being carried out over the
Internet.
n e- commerce, the following activities are being taken place quite often – the tremendous
numbers of people who are shopping on the Internet, business houses are setting up websites
where they can sell goods, conducting the following transactions such as getting paid and
fulfilling orders.
It is a dramatic change in the way a company relates to its customers. At present e-commerce is
exploding. Globally, e-commerce spending was increasing at a tremendous rate.
Improving Ethical Behavior
The complexity in business operations is forcing the workforce to face ethical dilemmas, where
they are required to define right and wrong conduct in order to complete their assigned activities.
For example,
Should the employees of chemical company blow the whistle if they uncover the discharging its
untreated effluents into the river are polluting its water resources?
Do managers give an inflated performance evaluation to an employee they like, knowing that
such an evaluation could save that employee’s job?
Improving Customer Service
OB can contribute to improving an organizational performance by showing drat how employees’
attitude and behavior are associated with customer satisfaction.
In that case, service should be the first production oriented by using technological opportunities
like a computer, the internet etc.
To improve the customer service need to provide sales service and also the after sales service.
Helping Employees Balance Work-Life Conflicts
The typical employee in the 1960s or 1970s showed up at the work place Monday through Friday
and did his or her job 8 or 9-hour chunk of time.
The workplace and hours were clearly specified. That’s no longer true for a large segment of
today’s workforce.
Employees are increasingly complaining that the line between work and non-work time has
become blurred, creating personal conflict and stress.
A number of forces have contributed to blurring the lines between employees’ work life and
personal life.
