organizational behaivour whats its meaning and importance
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What Is Organizational Behaviour? - Meaning & Importance

Isha Adhikari Sep 27, 2024 1K Reads

Organizational behaviour is the foundation of any organization that helps in the main execution of projects or any tasks. It plays a vital role in the success and functionality of any organization or business firm. It studies how an employee works or behaves in an organization as an individual or within a team.  

It covers different aspects of an individual, including behavior, communication, decision-making ability, leadership quality, problem-solving skills, organizational management techniques, work management, motivation, etc. In this blog, we will explore the true meaning of organizational behaivour, its importance, and other aspects of it. So! Let’s get started. 

Meaning of Organizational Behaivour

The true meaning of an organizational behaivour is how an individual behaves within the organization. It is something that impacts the overall organization and its overall work management or efficiency. Let’s explore how an organizational behaivour can affect an organization’s effectiveness positively.  

1) Helps to Boost the Organization’s Productivity

Organizational behaivour is the key that leads to the enhancement of the overall organization's productivity. As mentioned above, it is a study that involves the observation of the employees’ overall behaivour within the organization. Employees must have an idea about the main agenda of the organization. This will not only help them to enhance their work efficiency. 

Also, building trust within the team leads to great work productivity and collaboration among the team members. Hence, this thing builds an environment of motivation, leadership, and communication in the organization. And in the end, all these factors can contribute to the efficiency of the organization. 

2) Effective Leadership

Organizational behaivour is one of the greatest mantras for effective leadership. Leaders who know the value of the organizational behaivour and have an in-depth understanding of it can contribute to the success of the company. It can also lead to a positive behaivour among the employees, resulting in a positive work environment. 

And to motivate the team members and helping them to guide in achieving their goals is the key responsibility of a team leader. In short, a deep knowledge of organizational behaviour is crucial for a superior to inspire and motivate them to achieve common goals.  

3) Improved Communication

Improved communication is the cornerstone of organizational behaivour. Open & clear communication channels result in better relationships among team members. It also helps to build trust within the team. Helping in creating a cohesive work environment in the organization.  

All the team members, including the team leaders, must know the importance of clear communication. The impact of open and clear communication can lead to more clarity and fewer conflicts & misunderstandings among the team members, leading towards a harmonious workplace.   

4) Organizational Conflict Resolution

Conflicts are something that can naturally occur within the team. However, if the team members keep the organizational behavior in mind, then they can easily resolve any conflict among the team.   

For resolving any conflict among the team, it is very important to understand the reason behind the conflicts. Then to understand the perspective of all the team members and provide them with the required resources and strategies to solve the conflicts. This technique of organizational conflict resolution can minimize the disputes within the organization and maintain a positive workspace.   

5) Boosts the Employee Morale & Rate of Satisfaction

Organizational behaivour is all depends on the overall performance and productivity of the employees. Hence, in order to boost the efficiency of the employees, you must make them valued, reputed, understood, and supported within the organization. Remember, as long as the employee feels valued, they are likely to be satisfied and happy with their jobs. 

It is important to understand the factors that influence job satisfaction, such as motivation, leadership, and organizational culture, which can lead towards a great level of employee engagement that can help in the overall organizational growth.  

6) Adaptability & Change Management

You are living and working in a frantic and fast-paced world. Hence, keeping an eye on adaptability and change management has become an essential task for organizational overall success. Organizational behaivour helps to give an insight into how the organization and its employees deal with sudden and drastic changes, such as the latest technology, new teams, new policies, etc., and how they search for an effective and quick solution to deal with changes. Organizations can manage transitions more skillfully and reduce resistance to change by taking a human-centered approach to change.

7) Organizational Culture Management 

The culture of an organization says a lot about its behaivour. What is the company’s culture? What norms, rules, and regulations are followed by the company, and how effective is the organization’s performance? These are all the main elements of any organization’s culture. By understanding these elements, organizations can improve the work efficiency, productivity, and quality of decisions and minimize the biases and conflicts within the organization. 

8) Decision Making & Problem Solving 

Decision-making and problem-solving are the two aspects that lie under the organizational behaivour. It helps in building the decision-making & problem-solving attitude among the employees.  

And it is very crucial to understand the individual and group decision-making dynamics. Organizations can improve the quality of decisions, minimize biases, and enhance problem-solving capabilities.

9)  Ethical Behaivour & Social Responsibility

The organizational behaivour depends on the ethical behaivour and social responsibility of that company. How the employees of the company follow the code of conduct and ethics of the organization. Also, the organizational behaivour of any company is dependent on how socially responsible it is. Hence, it is important to establish a trustworthy and positive behaivour among the stakeholders.  Also, taking care of your

surroundings and environment are very crucial to succeeding in an organization.

What is Organizational Behaivour Perception?

Perception is something that plays an important role in shaping how an employee acts in an organization as an individual or within a team or group. It is also the understanding level of the employee that means how an employee perceives and is serious about achieving the organizational goals or objectives. 

Your past work experiences, office culture, and team environment can influence the perceptions. For example, an employee from a positive and good working environment would perceive the tasks positively, which may lead to positive outcomes and the company's success. On the other hand, a negative perception may result in conflicts, misunderstandings, and a toxic work environment that may lead to business loss or an organizational downfall. 

Therefore, it is the primary responsibility of the team leader to observe each employee’s perception of the organization and try to resolve any obstacles they may encounter while working in the team or in the organization. This practice may not only lead to better performance and stronger bonds but also lead to long-term organizational success. 

Concepts of Organizational Behaivour

An organizational behaivour may depend on certain concepts, which are listed as follows: 

  • Leadership:Leaders are one of the most important bodies of an organization. They are not only there to assign tasks but also have a responsibility to motivate and inspire the employees or subordinates so that they can work cheerfully and effectively. Effective leadership consists of helping the employees understand the work culture or assigned tasks so that the organizational goals or objectives can be achieved effectively and efficiently.  
  • Motivation:Motivation is a positive push by the leaders to the employees, and sometimes an employee may be motivated by the external or internal factors of the organization. An employee can be motivated by many rewards, such as monetary rewards like a good salary hike or non-monetary ones such as holiday packages or movie tickets by the organization. Motivated employees are more likely to be engaged in the organization and work more efficiently and positively toward the organization's objectives.  
  • Communication:Effective communication is one of the key concepts of the organizational behaivour. It is the process of communicating or sharing information within the organization. An organization with effective communication ensures that all the workers are on the same page, and this also reduces the chances of miscommunication or misunderstanding. Clear and effective communication may lead to a healthy and positive work environment. 
  • Organizational Culture:Organizational culture is the group of shared beliefs, norms, values, and more that define the operations done in a particular organization. It also influences the team’s work performance, organizational interaction, decision-making process, and how the organization deals with external and sudden dynamic changes. A robust and disciplined work culture may lead to a strong organizational culture and team building; it may also lead to long-term and positive business success.  
  • Group Dynamics:Group dynamics are all related to how the work is assigned or takes place within a group or organization. It consists of the decision-making process and work assignment conflict resolutions. It is crucial to understand group dynamics as it can lead to building a cohesive team that effectively collaborates, works, and effectively achieves organizational goals and achievements. 

What are the Organizational Behaivour Challenges? 

An organization may face a lot of challenges while running a business, which may lead to major conflicts if not resolved properly. Here is a list of a few challenges that an organization may face:

Every organization may consist of a diverse range of employees. And every employee has a different perspective on doing a certain task, which may lead to conflicts which may lead to a negative impact on the overall team’s performance. Hence, it is important to manage this diversity among the employees. Another important task is to maintain a motivated environment among the employees in this ever-changing and challenging work environment.

Maintaining effective communication between the employees and the supervisors or higher management is also a challenge, as the lack of communication may lead to misunderstandings and major conflicts, which may impact the organization’s overall performance scale.

  

Organizational Behaivour Theories

Organizational behavior theories are made for a better understanding of an organization.  Many organizations implement these theories in order to maintain the decorum in the organization. 

Fredrick Taylor: Scientific Management Theory

The organizational behaivour is associated with the scientific management theory by Fredrick Taylor. It is a method through which organizations can improve their overall work efficiency, which will result in high productivity.

According to Taylor’s scientific management theory, there should be a strict and disciplined environment within an organization. Superiors must have an eye on the performance of their subordinates and juniors. Workers should be paid based on their overall work performance. 

  • Bureaucracy Theory:This bureaucracy theory was developed in the late 1800s by Max Weber. It was made for the proper and effective management of the large organizations. According to Max Weber, bureaucracies play an important role in the management of business firms; however, they can be criticized by others due to their rigid and inflexible nature.  
  • Hybrid Organization Theory:Hybrid organization theory is a mixture of different management theories, including scientific management theory, bureaucratic, human relations, and process management theories. This theory is made for creating a flexible and adaptable organizational structure that can face any challenge effectively.  
  • Informal Organizational Theory:The informal organizational theory acknowledges the informal networks and relationships that exist in organizations. It can impact employee behaivour and work performance within the organization.  
  • Power Theory:Power theory is basically a study that observes how an individual with power and authority deals, understands, and practices within the team members and organizations. There are five bases of power theory that are as follows:
  • Five Bases of Power Theory:The 5 bases of Power Theory came into existence in 1959 by the French and Raven. It refers to the framework of power sources the higher authority possesses within an organization.  The primary bases of power theory are Legitimate, Reward, Coercive, Expert, and Referent. 
  • Legitimate Power:Individuals at higher levels of authority, such as managers, team leaders, and supervisors, have the right to assign tasks and give orders to subordinates or workers at the lower level. They have the authority to allocate the tasks to the employees.  
  • Reward Power :The high-authority individuals or superiors with the power of reward must give rewards to the low-level employees or subordinates who perform well. Superiors can provide monetary rewards, such as incentives, bonuses, etc., or non-monetary rewards, such as vacations.  
  • Coercive Power:Any superior or higher authority individual with coercive power has the right to reassign or terminate the employees who are continuously not performing their jobs well or those who have been underperforming for a long period of time or violate the company’s norms or policies. 
  • Expert Power:Expert power depends on the individual’s specialized knowledge, skills, or expertise. It refers to the influence held by an employee due to their specialization or expertise in a particular field. Companies need to build strong trust, credibility, and leadership without any formal authority. 
  • Referent Power:When an employee or individual influences others due to their likability or charisma, the respect they inspire is known as the referent power. It arises when individuals admire or identify with a leader, leading them to adopt their behaivour, values, or decisions.  Leaders with strong referent power help maintain a positive work environment, encouraging collaboration and unity, and enhancing organizational culture and overall performance.  
  • Human Relations Management Theory:The human relations management theory focuses on the satisfaction and needs of the employees. It's a leadership approach that emphasizes the significance of making interpersonal relationships and well-mannered communication between employees and superiors across the organization. This theory aims at boosting the overall performance and productivity of the organization by focusing on the emotional and social requirements of the employees. 
  • Process Management Theory:Process management theory emphasizes improving the overall processes of the organization to boost the overall workflow and productivity of the organization. Analyze, design, or continuously refine the tasks and processes within the organization. 
  • X & Y Management Theory:The X and Y management theory is developed by Douglas McGregor. It describes two contrasting views of employee motivation and behavior in the workplace. Theory X has an assumption that the employees are very lazy & idle and they need to be supervised by the higher authority. On the other hand, Theory Y has an assumption that the employees are dedicated to their work and they need to be motivated and given a positive work environment for the accomplishment of the company’s objectives.  

Organizational Behaviour Leadership Theories

The organizational behaviour leadership theories explain how a leader in an organization influences, motivates, and leads the individuals or the team members. These theories explore various leadership styles, behaviors, and traits that impact organizational effectiveness.

Here are some key organizational behavior leadership theories:

  • Trait Theory:The trait theory states that leaders have some inherent qualities that make them good leaders. According to this theory, leaders are not made but born. They have distant personalities across the organization due to their few traits, such as charisma, adaptability, persistence, emotional intelligence, etc. However, these leaders might overlook the role of learning and context in leadership development.  
  • Behaivoural Theory:The behaivoural theory is quite the opposite of the trait theory. It states that anyone can be a leader if he/she follows a certain behaivour or theory. There are majorly two behaviours that help any individual to be a good leader.  
  • Task-Oriented: If an individual focuses on achieving the targets or goals of an organization and works accordingly, then this quality makes him/her a good leader.   
  • People-Oriented: If an individual focuses on strong relationship-building and employee welfare, then this quality also makes him/her a good leader. 

However, the behaivoural theory doesn’t consider the impact of situational factors on leadership behavior:

  • Contingency Theory:As per the contingency theory, there is no one such way to lead an organization. A leader must be ready to work in any situation. The leader's effectiveness is contingent upon factors such as task structure, group dynamics, and the external environment. According to Fiedler’s Contingency Model, the leader’s effectiveness is dependent on their leadership style, whether it is task-oriented or relationship-oriented. However, this can be complicated to determine the right combination of the factors for effective leadership.  
  • Situational Leadership Theory:The situational leadership theory pioneered by Hersey and Blanchard states that a leader makes the team rules and regulations according to the maturity and working conditions of the team members. Hence, different situations call for different leadership styles, and those styles consist of following leadership styles.  
  • Directing: This style generally applies to inexperienced employees. In which the employee is expected to have a high degree of focus on task learning rather than relationship building.  
  •  Coaching: This style generally applies to moderately experienced employees. In which the employee is expected to have an optimal degree of focus on task learning and relationship building. 
  • Supporting: This style generally applies to experienced employees. In which the employee is expected to have a high degree of focus on relationship building rather than work and task learning.  
  • Delegating: This style generally applies to highly experienced employees. In which the employee is expected to have a low degree of focus on relationship building and work & task learning.

However, the situational leadership theory can make it difficult to assess the maturity level of employees accurately.

  • Transformational Leadership Theory :The transformational leadership theory states that a transformational leader inspires and motivates employees by giving them a vision for the future. They focus on transforming the organization by fostering creativity, innovation, and positive change.

The key components of the transformational leadership theory are as follows: 

  • The leader should act as a source of inspiration to the employees.  
  • The working environment should be inspiring and motivating.  
  • The leaders should encourage the creativity of the employees.  
  • Personal attention and support must be provided by the employees by the superiors or by the organization.  

However, the transformational leadership theory may be too idealistic and difficult to implement in all organizations.

  • Transactional Leadership Theory:The transactional theory depends on a regular basis in the form of rewards and punishment in order to track the employees' performance. This style is based on a clear structure of roles, tasks, and goals.

The key components of the transactional leadership theory are as follows: 

  • The leader must offer the rewards to the employees for meeting the goals. 
  • The leader must intervene when a problem arises across the team. 

However, the transactional leadership theory lacks focus on innovation, employee growth, and long-term development.

  • Leader-Member Exchange (LMX) Theory:LMX theory focuses on the relationship between the leader and the individual employee. Leaders form unique relationships with each team member, which can result in different levels of trust, respect, and support. In-group members tend to receive more attention and resources than out-group members.

The key components of the leader-member exchange theory are as follows: 

The leader-member exchange theory directly influences the overall work performance, job satisfaction, work retention, etc.  

However, the leader-member exchange theory can lead to favoritism or perceived bias within teams.

  • Servant Leadership Theory:The servant leadership theory focuses on emphasizing the needs of the employees over the organization. It will help to boost the confidence and work dedication across the team and help them to grow as well as the organization.  

The key components of the servant leadership theory are as follows: 

  • Empathy
  • Humility 
  • Listening
  • Stewardship
  • Commitment to the community

However, the servant leadership theory may find it difficult to balance serving others with achieving organizational goals.

  • Path-Goal Theory:The path-goal theory pioneered by Robert House states that a leader is fully responsible for creating a path for accomplishing the goals. They must adopt an effective leadership style to guide and motivate their employees in order to make them serious about the organizational target achievement and overcome obstacles. 

Here are the listed leadership styles every leader should implement to achieve excellent outcomes.  

  • Directive: The leader must explain everything to the team and give clear instructions and expectations to the employees.  
  • Supportive: The leader must focus on fulfilling the needs of the employees and give them support to overcome any obstacles. 
  • Participative: The leader should encourage the employees to be participative and involve them in the decision-making process.  
  • Achievement-Oriented: The leader should set some goals and targets for the team and must have some high expectations from them to accomplish the organizational goals. 

However, the path-goal theory may make it difficult for leaders to continuously adapt their style to each situation.

  • Charismatic Leadership Theory :The charismatic leadership theory states that leaders must use their charismatic skills, such as communication skills, vision, etc., to motivate and inspire their followers. They are often seen as transformational leaders who create emotional connections and inspire loyalty.

The key components of the charismatic leadership theory are as follows: 

  • Confidence
  • Vision 
  • Enthusiasm 
  • Strong Communication Skills

However, the charismatic leadership theory can sometimes lead to dependence on the leader rather than empowering employees.

These leadership theories help organizations understand different leadership styles and how to apply them in various contexts to improve employee performance and overall organizational success.

Organizational Behaviour Approach

Organizational behaivour can be studied through a various range of approaches that make it easy to understand how an employee acts as an individual or in groups within an organization. A few key organizational approaches are listed below.

  • Human Resources Approach:The human resources approach focuses on treating employees properly. It emphasizes providing them with a positive working environment, job satisfaction, motivation, etc. This aim is to empower employees by recognizing their strengths and roles & responsibilities towards the company’s growth. This approach also helps in achieving organizational goals more effectively and efficiently.  
  • Contingency Approach:The contingency approach suggests that there is no such thing as a one-size-fits-all solution in the organization. In fact, the organization or business must tailor as per the internal situations or external factors, such as the size of the company, market rates, competitive bodies, etc. Overall, it revolves more around the flexible decision-making based on the changing circumstances.  
  • Systems Approach:The system approach states that there must be a balance between people, structure, and processes as they are all interconnected with each other and the overall operation depends on them. Therefore, there should be no change in any part, as if any change occurs in one part, then it can affect the other part too. This approach emphasizes the need for collaboration and understanding how different elements interact within the organization.        
  •   Scientific Management Approach:The scientific management approach was pioneered by Fredrick Taylor. It emphasizes efficiency and productivity through time-and-motion studies, task specialization, and standardized processes. Focused on optimizing workflows and performance by studying worker activities and improving methods.
  • Cognitive Approach:The cognitive approach focuses on understanding the social and behavioral processes of an employee, such as how he/she acts as an individual or how he/she works in a group or with team members. Basically, it focuses more on examining a particular employee's behavior as it can affect the overall performance and productivity of the organization. 
  • Sociotechnical Systems Approach:The sociotechnical systems approach emphasizes the interaction between people (the social system) and technology (the technical system) in the workplace. It aims to balance technical efficiency with the well-being of employees, ensuring that technological advancements do not negatively impact job satisfaction and social dynamics.
  • Behavioral Science Approach:These approaches are very helpful in understanding the overall behavior of an employee behaving as an individual or behaving in groups within an organization. It focuses on understanding the social behaivourial aspects of human behavior that helps to study the organization more efficiently. It emphasizes research and empirical data to solve organizational issues. 

Models of Organizational Behaviour 

There are 7 models of organizational behavior, and every organization follows different models of organizational behaviour. Here are the listed models of organizational behavior that are practiced by different organizations. 

1) Feudal Model

First, the feudal model states that an employee is an inferior element of the organization. And except for a few employees, none of the employees should be included in every important task. This model usually overlooks the employees and offers less value to them.  

According to this model, the employees or other workers should not be included in the important decision-making process. As per this model, all the decisions are taken by the superiors and leads, and the junior employees or other workers must follow them. Basically, an organization must run in a formal way to maintain an organizational behaivour within the company. 

2) Autocratic Model

The autocratic model focuses on power and authority. Majorly focuses on the higher authority. It says that all the juniors must follow the orders of the higher authority. This model emphasizes more on the higher authorities and their responsibilities towards their subordinates. 

The lower-level workers have less authority in the organization as compared to the upper-level.  All the important decisions are made by the higher authorities only. According to this model, higher authority must have higher knowledge and skills. On the other hand, lower-level workers have fewer knowledge and skills.  

3) Custodial Model

The custodial model primarily focuses on the economic resources available to the employees in the form of salaries, which means providing them with competitive pays as per their ability and performance to ensure their stability in the organization. Medical benefits should be offered to each employee to ensure they have a good health status and other rewards. It is a way to motivate the employees to uplift the organization's overall productivity. 

This model believes that if the employee has the security of their job, then there is a possibility of trust building and honesty among the team. This model is based on rewards and recognition. This custodial model is practiced by vast organizations to boost overall performance.  

4) Supportive Model

The supportive model of organizational behaviour depends on the leadership from the root level. As its name says, “supportive model" means it believes in maintaining a supportive and cordial relationship between superiors and subordinates. There should be friendly and supportive behaviour among the employees and team leaders.  

This type of model is practiced by the public organization, as it depends on the leadership. It also focuses on the employees’ learning and skill enhancement in order to make them work so that their contribution can benefit the organization.  

5) Collegial Model

The collegial model is a level-up of the supportive model. It is based on the teamwork and coordination among the team members. When every level of the organization works together towards a common goal, then they follow a collegial model. In this model, there is job satisfaction among the employees.  

The positive partnership between employees and superiors plays a crucial role in the successful building of an organization. According to this model, there should be a friendly working environment, and it's the responsibility of the team leaders or superiors to create such a working environment. There should be a mutual decision-making process between the subordinate and the team leader. 

This model also raises the thinking abilities of the employees by providing them with a serene working environment that leads to great ideas, technologies, and project generation. This model teaches colleagues to have a serious approach towards the achievements of the company’s common goal.  

6) Human Value Model

This human value model focuses on human values and individual dignity. This human value mode is the opposite of the feudal model. According to this model, when the employees are treated well and have satisfaction and security in their jobs, they are more likely to work more effectively towards the achievements of the company. 

This model believes in creating a trustworthy, respectful, friendly, and positive working environment for the employees by the organization and team leaders. It primarily focuses on the good health of the employees.  It boosts their confidence and motivates them to work more effectively; there will be more chances of the fulfillment of the target efficiently. This model gives more priority to human value and dignity than economic value.  

7) Contingency Model 

The contingency model is considered the complex model, or Model Y, or hybrid model. It covers all the aspects in order to boost the organization's development and target achievement, including the behaivour of individuals, groups, and organizations. 

This model suggests that different situations require different strategies to handle the problems. Basically, this model is very flexible and adaptable, which helps the employees to adapt and work accordingly to the changing environment.  

It also benefits the decision-making process as it will encourage the leaders to make complex yet effective decisions according to the changing internal as well as external environment to meet the goals. 

This model focuses on task-oriented leadership and relationship-oriented leadership that emphasizes the importance of strong relationships and trust building in order to make the workers work and achieve the common target of the organization. 

Process of Organizational Behaivour

The organizational behaivour is a process that helps to study how the employee acts as an individual or in the organization. This process involves understanding, predicting, and managing how people behave in organizational settings. It integrates various elements, such as psychology, sociology, and management, to enhance employee performance, job satisfaction, and organizational effectiveness.

Here are the key steps of the organizational behaivour process: 

  • Individual Behaivour Analysisl:The superior must analyze the behaivour of each individual in their team, which helps them to know them better and to assign the work according to their weaknesses and strengths. This process helps to achieve the goals more efficiently.  
  • Group Behavior and Team Dynamics:The superior must analyze the individual behaivour across the teams or different departments. How an employee acts and works in the groups within the organization and how he/she collaborates in group activities and other processes, including the decision-making process,  leadership, conflict resolution, etc. This process helps in improving team collaboration and addressing group challenges like conflict or groupthink.
  • Organizational Structure and Culture:In this process, the leader should analyze how the organizational policies, structures, rules, and regulations affect the thinking and work process of an individual in an organization. This process will help to create a supportive environment across the organization and promote engagement and productivity.  
  • Leadership and Management Practices:In this process, the leader must analyze how the team is influenced by the different types of leadership and management practices implemented by the organization in different situations. Implementing leadership strategies that motivate and inspire employees, fostering a positive and productive work environment.
  • Motivation and Reward Systems:In this process, the organization must identify how the motivation and reward systems influence the employees. It also helps them to design or amend the reward systems according to the employees’ performance.  
  • Communication Processes:The organization must take some actions to improve the overall communication process of the organization. They should focus on improving the communication channels of the organization so that superiors and employees of any level can easily give their thoughts. This practice will encourage open communication, implement feedback mechanisms, and use technology to improve connectivity and information sharing.
  • Change Management:The leaders also focus on how the organization works under sudden changes and how adaptable they are to work under adverse market conditions. This will help the employees adapt to organizational changes, whether structural, technological, or cultural, while minimizing disruption.
  • Organizational Effectiveness and Development:The leaders must focus on how the employees’ behaivour and activities affect the organizational goals or objectives accomplishment. In order to accomplish the work properly they must access and improve the processes, decision-making and group dynamics. This process will help to improve organizational effectiveness through employee development, continuous learning, and innovation.Overall, the organizational behavior process is a continuous cycle of observing, analyzing, and improving how people interact within an organization. It focuses on understanding individual and group behaviors, leadership dynamics, motivation, and communication processes to foster a healthy and productive work environment. This process helps organizations optimize their human resources and adapt to changes, ensuring long-term success and competitiveness.

Importance of Organizational Behaivour

Organizational behaivour has its own importance, as it not only helps to maintain decorum in the organization but also provides the organization with several more benefits.

Those benefits are listed below:

  • Improved Employee Performance:The organizational behaivour helps to track the performance of the employees. The leader must observe the activities of the employees and how they act as individuals or within the groups. The observation also helps the leader to plan new strategies to accomplish the organizational goals. 
  • Better Employee Satisfaction:The organizational behaivour is important for identifying the factors that motivate the employees and satisfy them, such as job design, work environment, and leadership style, leading to happier, more engaged employees.
  • Enhanced Leadership:The organizational behaivour helps to enhance the leadership in the leaders. It provides insights into different leadership styles and their impact on employees, allowing managers to adopt the most effective leadership approach in different situations.
  • Effective Communication:Organizational behavior emphasizes the importance of communication within teams and across departments. It helps in overcoming communication barriers, improving collaboration, and reducing misunderstandings. 
  • Conflict Resolution:An organization consists of various departments and various employees with different thinking that can sometimes lead to clashes. The organizational behaivour helps to identify the root causes of the conflicts and helps the leader to solve the obstacles among the team. 
  • Improved Organizational Culture:The organizational behaivour helps to create an improved organizational culture. It helps the leaders to create a serene and positive working environment among the teams, leading the organization towards long-term success.  
  • Better Decision Making:The organizational behaviour also helps to improve the decision-making process for the leaders. It helps in making informed decisions by understanding the impact of those decisions on individual and group behavior. It allows for data-driven, rational decision-making processes.Overall, organizational behavior is important to create a positive, efficient, and adaptable workplace. By understanding and managing human behavior, companies can improve employee performance, resolve conflicts, make better decisions, and foster a strong organizational culture that supports long-term success.

Note: For a better and detailed understanding of the organizational behaviour, you can download the pdf link for the organizational behaivour notes and organizational behaivour case study

Conclusion 

For any organization’s success, there must be a balanced organizational behaivour among the company.  Always remember that every organization has its own rules and regulations, norms, and objectives, which must be followed by all the employees, from superiors to subordinates to lower levels of employees, so that targeted goals and objectives are completed effectively and within time. 

FAQs (Frequently Asked Questions)

Organizational behavior (OB) is the study of how an employee acts within an organization as an individual or as in a group and how these actions affect an organization's performance. 

Here are the listed top 5 models of organizational behaivour:

1. Autocratic Model

2. Custodial Model

3. Supportive Model

4. Collegial Model

5. Human Value Model

The autocratic model of organizational behaivour is based on the power and authority. It says that all the juniors must follow the orders of the higher authority. This model emphasizes more on the higher authorities and their responsibilities towards their subordinates.

The supportive model of organizational behaviour depends on the leadership from the root level. As its name says, “supportive model" means it believes in maintaining a supportive and cordial relationship between superiors and subordinates. There should be friendly and supportive behaviour among the employees and team leaders. An example of organizational behaivour is as follows:

Example: Google can be a good example of a supportive model. As the managers at Google act as mentors who guide and support the employees, they help foster a culture of trust and collaboration.

The challenges to organizational behaivour are as follows: 

  • Improving quality & productivity 
  • Promoting innovation 
  • Developing skills 
  • Coping with temporariness 
  • Ethical behaviour 
  • Empowering People 
  • Improving customer service
  • Managing workforce diversity 
  • Lack of communication

Here are the listed organizational books by the top authors: 

  • Organizational behaivour by Stephen P. Robbins 
  • The Culture of Code: The Secrets of Highly Successful Groups by Daniel Coyle 
  • Reframing Organizations: Artistry, Choice, and Leadership by Lee G
  • Organizational Behavior: A Skill-Building Approach by Steven McShane 
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By Isha Adhikari

3 Years of Experience / Narrator

With 3 years of experience in content writing and copywriting and keen interest in voiceover and scripting, I, Isha Adhikari, am passionate about content creation and narration.

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