The Importance Of Organizational Behavior For Business Or A Company

organizational behaviour individuals or groups

The behavior of a person determines who they are. You might behave in different ways according to the situation. Similarly, A person needs to act in accordance with the organization when working for it. The OB affects both the employee and employer. For the better management of the company, it’s essential to know about the complex nature of human beings and how to resolve its effect on the other employees working within the firm.

To achieve the desired organizational goal, unity of employees working is essential, and it depends on each individual’s behavior. Therefore, we will look at the why and what of organizational behavior in detail below.

Tackling the ‘what’

Organizational behavior is a study of human behavior within an organization. It is about understanding how the people who make up the organization interact and influence. Studying organizational behavior aims to increase productivity, enhance innovation, and improve performance management.

Hence, we can safely conclude that organizational behavior is not just a study with roots in organizational psychology but is an interdisciplinary field that includes sociology, political science, anthropology, economics, and social psychology.Using the principles of organizational behavior, the company can improve employees’ performance management and productivity, boost employee satisfaction on an individual level, and enhance motivation and team performance while fostering leadership skills and providing long-term benefits to the company.


Tackling the ‘why’

An organization hiring a person is not limited to hiring the employee’s skills; it also includes their personality, inherent qualities, beliefs, and values. The employee has to interact with various people in the organization at every level. Each person has a different personality, behavior, values, and beliefs, which results in diversity at the workplace and different perspectives on various topics. Each person’s organizational behavior would influence the team and the workplace differently, and this is precisely what we are trying to understand here. As a management person, it is necessary to understand this difference in outlook and develop practical ways to manage people while making the workplace a ‘happy place’ for all employees in the organization.

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How OB Helps The Management

To reap the benefits of the study of organizational behavior, the higher-ups must first get to know their employees personally and the way they behave, influence, and interact with each other in their team. This can offer human resource management a roadmap to improve all aspects of the organization, such as job satisfaction, positive work environment, team building, etc. In addition, a robust model of OB can help the employee understand the team and their individual role better, thereby bettering themselves and their team.

Organizational behavior has various theories and studies to increase employee motivation, job satisfaction and improve leadership skills. It also reduces employee turnover ratio, absenteeism, dissatisfaction, and other dysfunctional behaviors. Therefore, OB has a tremendous importance in nurturing strong leadership skills that could help the individual, team, and the company emerge unharmed in times of hardships and seamlessly transition during a change in the established order.


Tackling Business Issues Through Organizational Behavior

Since most organizational behavior is related to human behavior, it can also help understand employee behavior concerning the workplace’s core values and culture. For example, if the manager learns that the workplace culture is interfering/hindering productivity, they can change the culture that could help enhance productivity.

Studying Organizational behavior can help managers identify the root cause of a problem and plan a course of action accordingly. This results in better coordination in the organization, improving the company’s overall health. In addition, it is a vital implementation to understand the correct motivational technique for their employees according to their behavior.

Getting Certain Facts Right Regarding Employee’s Organizational Behavior – Presently

  • 30% of the present employees work with a defined purpose and feel an enhanced connection with their company, while 52% feel disengaged.
  • Not addressing the issues with employees’ organizational behavior may lead to the loss of over $550 billion.
  • It is discovered that 58% of the employees are more willing to trust a stranger than trusting their own boss. In other words, bad managers are the #1 reason for the employees to feel disengaged.
  • More than 59% of the workforce are unsure about what their company stands for.
  • Moreover, by the beginning of 2025, most of the global workforce, i.e., 75%, will comprise millennials. Companies need to be prepared to embrace the new and potential generation at the workplace.

Wrapping It Up

Observing and keeping up organizational behavior is hard; it needs serious effort and should not be neglected. However, solving the root cause of the problem becomes easy if you know your employees’ behavior patterns. Taking the necessary steps and promoting fair behavioral change to nurture your companies growth will be helpful for any company or a businesses’ ethical enhancement.

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