Dr. I. D.

Koroma

Organizational Behavior: Definition, Importance

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.

As a multidisciplinary field, organizational behavior has been influenced by

developments in a number of allied disciplines including sociology, psychology,
economics, and engineering as well as by the experience of practitioners.
History and Evolution of Organisational Behavior Studies

Origin of Organisational Behaviour: OB can trace its roots back to Max Weber and
earlier organizational studies.

The Industrial Revolution is the period from approximately 1760 when new
technologies resulted in the adoption of new manufacturing techniques, including
increased mechanization.

The industrial revolution led to significant social and cultural change, including
new forms of organization.

Analyzing these new organizational forms, sociologist Max Weber described

bureaucracy as an ideal type of organization that rested on rational-legal
principles and maximized technical efficiency.

In the 1890’s; with the arrival of scientific management and Taylorism,

Organizational Behavior Studies was forming it as an academic discipline.
 Organizational Behavior: Definition, Importance

Failure of scientific management gave birth to the human relations movement

which is characterized by a heavy emphasis on employee cooperation and morale.
Human Relations Movement from the 1930’s to 1950’s contributed to shaping the
Organizational Behavior studies.

Works of scholars like Elton Mayo, Chester Barnard, Henri Fayol, Mary Parker
Follett, Frederick Herzberg, Abraham Mas low, David Mc Cellan and Victor Vroom
contributed to the growth of Organisational Behaviour as a discipline.

Works of scholars like Elton Mayo, Chester Barnard, Henri Fayol, Mary Parker
Follett, Frederick Herzberg, Abraham Maslow, David Mc Cellan and Victor Vroom
contributed to the growth of Organisational Behaviour as a discipline.

Herbert Simon’s Administrative Behavior analyst introduced a number of

important concepts to the study of organizational behavior, most notably decision
making.

Simon along with Chester Barnard; argued that people make decisions differently
in organizations than outside of them. Simon was awarded the Nobel Prize in
Economics for his work on organizational decision making.

In the 1960s and 1970s, the field became more quantitative and produced such
ideas as the informal organization, and resource dependence. Contingency
theory, institutional theory, and organizational ecology also enraged.

Starting in the 1980s, cultural explanations of organizations and organizational

change became areas of study.

Informed by anthropology, psychology, and sociology, qualitative research

became more acceptable in OB.

Organizational Behaviour Definition

“Organizational behavior is directly concerned with the understanding, prediction,

and control of human behavior in organizations.” — Fred Luthans.
 Organizational Behavior: Definition, Importance

Organizational behavior is the study of both group and individual performance

and activity within an organization. This area of study examines human behavior
in a work environment and determines its impact on job structure, performance,
communication, motivation, leadership, etc.

It is the systematic study and application of knowledge about how individuals and
groups act within the organizations where they work. OB draws from other
disciplines to create a unique field.

For example, when we review topics such as personality and motivation, we will
again review studies from the field of psychology. The topic of team processes
relies heavily on the field of sociology.

When we study power and influence in organizations, we borrow heavily from

political sciences.

Even medical science contributes to the field of Organizational Behavior,

particularly in the study of stress and its effects on individuals.
There is increasing agreement as to the components or topics that constitute the
subject area of OB.

Although there is still considerable debate as to the relative importance of

change, there appears to be general agreement that OB includes the core topics
of motivation, leader behavior, and power, interpersonal communication, group
structure and processes, learning, attitude development, and perception, change
processes, conflict, work design, and work stress.

Features of Organizational Behavior

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, the whole group, the whole organization, and the whole social system.
Organizational Behavior: Definition, Importance
Its purpose is to build better relationships by achieving human objectives,
organizational objectives, and social objectives.
Organizational Behavior is;

1. A Separate Field of Study and not a only a Discipline.

2. An Interdisciplinary Approach.
3. Applied Science.
4. Normative Science.
5. A Humanistic and Optimistic Approach.
6. A Total System Approach.

These 6 features or characteristics show the nature of Organizational

Behavior that is the study of understanding and control behavior of people within
the organization.
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. The eight objectives are:

1. Job Satisfaction.
2. Finding the Right People.
3. Organizational Culture.
4. Leadership and Conflict Resolution.
5. Understanding Employees Better.
6. Understand how to Develop Good Leaders.
7. Develop a Good Team.
8. Higher Productivity.
 Organizational Behavior: Definition, Importance
These 8 objectives of organizational behavior show that OB is concerned with
people within the organization, how they are interacting, what is the level of their
satisfaction, the level of motivation, and find ways to improve it in a way the
organization yields most productivity.
Fundamental Concepts of Organizational Behavior
Organization Behavior is based on a few fundamental concepts which revolve
around the nature of people and organizations.

 Individual Differences.
 Perception.
 A Whole Person.
 Motivated Behavior.
 The desire for Involvement.
 The value of the Person.
 Human Dignity.
 Organizations are Social System.
 Mutuality of Interest.
 Holistic Concept.

Main Challenges and Opportunities of Organizational Behavior. Challenges and

opportunities of organizational behavior are massive and rapidly changing for
improving productivity and meeting business goals.

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. Coping with Temporariness.
8. Stimulating Innovation and Change.
9. Emergence of E-Organisation & E-Commerce.
10.Improving Ethical Behavior.
 Organizational Behavior: Definition, Importance

11.Improving Customer Service.

12.Helping Employees Balance Work-Life Conflicts.
13.Flattening World.

Recognize the limitations of organizational behavior:

 Organizational Behavior will not abolish conflict and frustration;
 It can only reduce them.
 It is a way to improve, not an absolute answer to problems.
 Furthermore, it is but part of the whole cloth of an organization.

We can discuss organizational behavior as a separate subject, but to apply it, we

must tie it to the whole reality. Improved organizational behavior will not solve
unemployment.
Organizational Behavior will not make up for our deficiencies, cannot substitute
for poor planning, inept organizing, or inadequate controls. It is only one of the
many systems operating within a larger social system.

3 major limitations of OB including:

1. Behavioral Bias.
2. The Law of Diminishing Returns.
3. Unethical Manipulation of People.

Learn how these organizational behavior limitations work.

Organizational Behavior Model

The OB model Shows the 3 levels, Individual-level, Group level, and Organization
System-level and how they impact the elements of human output.
 Organizational Behavior: Definition, Importance
The above figure presents the skeleton on which constructed the OB model.
It proposes that there are three levels of analysis in OB and that, as we move from
the individual level to the organization systems level, we add systematically to our
understanding of behavior in organizations.
The three basic levels are analogous to building blocks; each level is constructed
on the previous level.
Group concepts grow out of the foundation laid in the individual section; we
overlay constraints on the individual and group in order to arrive at organizational
behavior.

Key Forces Affecting Organizational Behavior

There is a complex set of key forces that affect organizational behavior today.
These key forces are classified into four areas;

 People.
 Structure.
 Technology.
 Environment.

There is an interaction between people, structure, and technology and these

elements are influenced by the environment.

4 key forces affecting Organizational Behavior

Contributing Disciplines to the Organizational Behavior field

 Psychology.
 Sociology.
 Social Psychology.
 Anthropology.
 Political Sciences.
 Economics.

 Organizational Behavior: Definition, Importance
4 Approaches to Organizational Behavior studies

These experts studied and attempted to quantify research done about the
actions and reactions of employees, with regard to their work environments.

1. Human resources approach.

2. Contingency approach.
3. Productivity approach.
4. Systems approach.

Learn how the 4 Approaches to Organizational Behavior studies work.

 Organizational Behavior: Definition, Importance
Research Methodology of Organizational Behavior

The understanding and effective application of organizational behavior

depend on a rigorous research methodology.

The search for the truth of why people behave the way they do is a very
delicate and complicated process.

In fact, the problems are so great that many scholars, Chiefly from the
physical and engineering sciences, argue that there can be no precise
science of behavior of people at work.

The research method of organizational behavior starts with Theory, use of

research designs, and checking the validity of studies etc.

Reasons for Studying Organizational Behavior

Organizational Behavior is concerned with the study of what people do in an

organization and how that behavior affects the performance of the
organization.

OB studies put the focus on motivation, leader behavior and power, interpersonal
communication, group structure and processes, learning, attitude development
and perception, change processes, conflict, work design, and work stress.

OB draws heavily from behavioral and social sciences, most importantly from
psychology. There are several practical reasons, why we study Organizational
Behavior;

1. OB is the study of learning how to predict human behavior and, then,

apply it in some useful way to make the organization more effective. It
helps in the effective utilization of people working in the organization
guarantees the success of the organization.
 Organizational Behavior: Definition, Importance

2. OB helps the managers to understand the basis of motivation and what

he should do to motivate his subordinates.
3. OB helps to maintain cordial industrial relations which help to increase
the overall productivity of the industry.
4. It helps greatly in improving bur inter-personal relations in the
organizations.
5. It helps managers apply appropriate motivational techniques in
accordance with the nature of individual employees who exhibit a
learning difference in many respects.

Conclusion
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, the whole group, the whole organization, and the whole social system.
Its purpose is to build better relationships by achieving human objectives,
organizational objectives, and social objectives. OB encompasses a wide range of
topics, such as human behavior, change, leadership, teams, etc.
Organizational behavior has a great impact on individuals and also in
organizations that cannot be ignored. In order to run the businesses effectively
and efficiently, the study of organizational behavior is very essential.

Organizational behavior has a great impact on individuals and also in

organizations that cannot be ignored. In order to run the businesses
effectively and efficiently, the study of organizational behavior is very
essential.