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Concept Of Organizational Behavior

Updated on August 5, 2012

Organizational Behavior is the study and application of knowledge about how people behave individually and in groups.

The main purpose of OB is to build better relationships by

· Achieving Individual objectives

· Achieving group objectives

· Achieving Organizational Objectives

· Achieving Social Objectives

Talcott Parsons defines organization as a social unit which is deliberately constructed or reconstructed to seek specific goals


1. Division Of Labor

Equal distribution of work according to an individual’s qualifications, capacities, interests etc.

2. Presence of one or more power centers

There must be some people who control and coordinate the various functions and activities aiming for the smooth functioning of the organization

3. Substitution of Personnel

There should be a provision for the Substitution of people by new employees in case of poor performance, retirement, accidents etc.

The Study OB is done on two platforms

1. Micro: Deals with the individuals and groups

2. Macro: Deals with organizations at large

Importance of Organizational Behavior

OB helps managers to understand and manage human behavior at their workplace

1. Understanding Self and Other

Various aspects touched under OB like values, attitudes, perception, communication, leadership. Transactional analysis, power and conflict etc. help managers in grooming their personality and managing others effectively.

2. Motivation of Human Resource

Ob helps managers identify the needs of various employees which helps in motivating them with the right kind of rewards.

3. Effective Communication

Communication is important at various levels in the organization for its proper functioning. Good communication can create wonders while poor communication can lead to blunders.

OB helps in learning how to communicate formally and informally with individuals and groups.

4. Effective Organizational Climate

OB stresses upon creating a healthy climate comprising harmonious inter-personal relations, hygienic working conditions, fair and adequate compensation, better and safe operation equipment, effective leadership, employee participation etc.

5. Good Human Relations

OB strives to make and maintain harmonious interpersonal relationships

It provides directions over how to deal with employee relations and problems in various situations. It helps understand different motives of different individuals and ways to control them.

6. Introduction to Change in Organization

Change is the law of nature and is inevitable. Dealing with human resistance is the toughest job for a manager. Ob guides them on how to cope with such resistance by adopting different techniques for timely and smooth introduction of change.

Have You Come across the subject OB?

See results

The study of OB can benefit an individual in becoming a more efficient and productive manager, leader and innovator. Therefore it must not be neglected in management studies. It helps in analyzing and studying the psychology of management.


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    • profile image

      divya 23 months ago

      It is really very informative and provide depth knowledge at a glance.

      thanks for this.

    • profile image

      ccdd 3 years ago

      pls add more about ob

    • rahul0324 profile image

      Jessee R 5 years ago from Gurgaon, India

      Thanks Audrey... I am glad you found it useful :)

    • AudreyHowitt profile image

      Audrey Howitt 5 years ago from California

      Very useful Rahul! This is a subject that I know little about actually---

    • rahul0324 profile image

      Jessee R 5 years ago from Gurgaon, India

      thank you so much Terrye

    • TToombs08 profile image

      Terrye Toombs 5 years ago from Somewhere between Heaven and Hell without a road map.

      Wonderful hub on the concepts behind organizational behavior, Rahul. nice job!

    • rahul0324 profile image

      Jessee R 5 years ago from Gurgaon, India

      Team work is indeed an important aspect covered in OB... thanks for the visit Martin :)

    • rahul0324 profile image

      Jessee R 5 years ago from Gurgaon, India

      Hello Michael... Nice to meet you :)

      The strategic element is an important part of OB studies... In an organization the various strategies have to be made keeping in mind the culture and the nature of the organization and its employees, the basic internal and external environment of the organization ( like customers, suppliers, distributors, work forces, unions etc. ) .

      OB helps in analising and understanding these aspects clearly which aides the formation of apt and just strategic elements.

      Thank you for visiting Michael

    • rahul0324 profile image

      Jessee R 5 years ago from Gurgaon, India

      Hello Patty... your professor I must say was correct... many institutions need to take up the subject and its studies seriously.. it helps one understand the the functioning of an organization from various approaches and leads to increased efficiency and productivity :)

    • rahul0324 profile image

      Jessee R 5 years ago from Gurgaon, India

      Thank you so much Polly :)

    • rahul0324 profile image

      Jessee R 5 years ago from Gurgaon, India

      Hey Josh!

      I am glad you found it useful bud :)

    • rahul0324 profile image

      Jessee R 5 years ago from Gurgaon, India

      You are correct Pooja... transparency indeed is an important aspect towards maintaining a strong organization culture...

      I will elaborate on the various points... this was an introduction ... more in the series will come out :)

      Thank you for the kind visit and reviews

    • rahul0324 profile image

      Jessee R 5 years ago from Gurgaon, India

      Hello Rema! So glad to see you :)

      Thanks for the share... in the future I will be doing more hubs on the subject...

    • rahul0324 profile image

      Jessee R 5 years ago from Gurgaon, India

      hello Mbyl... Thanks for the share and votes...

      As for the copyright... first.. I created the image in MS paint... and then saved it as a JPG image... and then uploaded it on the hub editor tool as an image... it is simple ....

    • Mhatter99 profile image

      Martin Kloess 5 years ago from San Francisco

      At the company I worked at; we all had to go through a 2 week indoctrination. Our goal... work together to make money

    • charmike4 profile image

      Michael Kromwyk 5 years ago from Adelaide, South Australia

      Nice information for those trying to understand organisational behaviour. With any OD team there is also the strategic element. What role do you think does the OD professional have in shaping the organisations strategic intent, especially if they are not on the top team of the organisation? Cheers Michael

    • Patty Kenyon profile image

      Patty Kenyon 5 years ago from Ledyard, Connecticut

      Useful and Interesting!!! While in school, I took a psychology class and OB was covered. The professor told us that there is a much higher need for those that specialize in it more than ever.

      Awesome Job!!!

    • Pollyannalana profile image

      Pollyannalana 5 years ago from US

      Very attractive, informative and organized hub.

    • josh3418 profile image

      Joshua Zerbini 5 years ago from Pennsylvania


      Very informative hub buddy! Thanks for sharing Rahul!

    • poojasd7 profile image

      poojasd7 5 years ago from India

      Along with the Effective Communication, OB needs to take care of Transparency as it is crucial in the smooth working of any organization. Also, you talked about Power center: I guess it is nothing but decentralization of various sectors of an organization.

      The last point: 'Introduction to Change in Organization', do elaborate on it. Because, it will be clear with the examples.

      Good work, though I would have liked it more if there was further elaboration and examples. You can always come up with the next part. :-)

    • remaniki profile image

      Rema T V 5 years ago from Chennai, India

      Hi Rahul,

      I had to do a writing assignment on organizational behavior recently. You have presented the facts in an organized manner. Great! Sharing it across to enhance the value of your content. Cheers, Rema.

    • mbyL profile image

      Slaven Cvijetic 5 years ago from Switzerland, Zurich

      an interesting read! Shared Interesting and Up!

      BTW how did you put the copyright thing at the end of your hub?