Organizational behavior is a field of study that investigates the impact that individuals, groups and structures have on behavior within organizations, along with the impact of group dynamics on performance and decision-making for the purpose of applied research or designing better organizations.
The main goals of organizational behavior are explaining, predicting and influencing behavior. Researchers in this field strive to understand and explain how individual, group and organizational behavior is influenced by environmental factors. Additionally, they work to develop principles and models that can be used to improve organizational effectiveness.
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Companies must monitor organizational behavior within their ranks to identify issues and optimize performance. This allows them to create a better working environment for employees and improve their overall productivity. Organizational behavior emphasizes:
- Enhancing performance
- Improving job satisfaction
- Fostering good leadership qualities
- Promoting innovation
Elements of organizational behavior
Individuals in an organization are influenced by the environment by which they operate, along with their perception of that environment. Two essential resources that have the potential to change behavior within the workplace are commitment and capability.
Elements of organizational behavior govern the way an organization is structured and functions. Here is a look at the four key elements that form the pillars of organizational behavior.
Structure
Structure is defined as how people are categorized and placed in an organization or work group. In other words, it is how employees are assigned to various functional departments and groups within an organization based on their skills, knowledge and experience.
An organization’s management works like the DNA of humans, and the workplace can easily crumble if proper processes and structure are absent. Employees also depend on a company’s management. In its absence, there would be no hierarchy to cater to the requirements and needs of the workforce, nor would there be efficient coordination at the various levels within an organization
People
Peoples are the backbone of any organization, and the entire study of behavioral organization revolves around the people (employees). The human resources department is the heart of an organization and is vital to the success of any organization. It forms an integral part of the management structure adopted by most companies. The HR department plays an important role in defining the work roles and responsibilities of employees, recruiting new players for the company and keeping records of people’s performance.
Most companies in the business world recruit candidates based on their skills, education, and experience, but many companies pay greater attention to their attitude, work ethics and personalities. Leaders invest in their ability to fulfill the needs of the job role, and with proper study, it becomes easy to instill efficiency and work on solutions and identify any factors affecting how work is done
Environment
The environment is defined as all the external factors acting on an organization. It refers to the industry in which the company operates and the products or services it provides. It also encompasses a society in general and factors such as political, social, legal and regulatory environments.
An organization’s performance largely depends on its ability to achieve success within its environment. This is because a good environment enables an organization to survive in the long run. If the environment is not favorable, it will be difficult to conduct business. For example, in the case of an industry that is facing tough competition, the organization might have a difficult time growing and sustaining itself in the market.
Technology
The final pillar of organizational behavior is technology. This refers to the tools and techniques used by an organization to achieve its goals. Technology is one of the most important factors that affect organizational behavior. Predicting and responding to change are two core tasks in the field of technology.
With the advent of artificial intelligence (AI), the use of new technologies is a primary source of improved productivity. An organization needs to consider how it can use technology to boost efficiency, save money, solve problems and improve performance. For example, if a company engaged in manufacturing uses new technologies, it can develop its operations both efficiently and quickly.
Why is organizational behavior important?
When people interact within an organization, they influence its overall performance. Therefore, companies need to understand how people are affecting the productivity of their operations. This knowledge can help organizations create and set objectives that will enable them to achieve optimal performance.
Here are some reasons organizational behavior is an integral part of management:
- Promotes a positive workplace culture – This leads to job satisfaction among employees, which builds motivation and morale within the company. It also promotes good decision-making within an organization and fosters communication among workers.
- Boosts employee motivation – This plays a vital role in boosting productivity, especially when the organization is experiencing financial difficulties.
- Helps skill development – Employees need to learn new skills to keep them relevant in the changing environment. This helps companies stay competitive in their markets.
- Enhances predictive ability – This enables managers to predict how a change in the organizational framework, structure or technology will affect business performance. It also helps them develop an effective strategy to stay ahead of their competitors.
- Promotes higher productivity – This is the key to long-term profitability and growth. If a company does not invest in developing and promoting skills among its employees, it won’t be able to achieve its productivity goals.
- Improves decision-making skills – It provides proficient leaders with the necessary attributes to make sound decisions. This, in turn, enables them to create high-performing teams, which leads to higher productivity and profitability.
The bottom line
Organizational behavior is practiced daily in organizations around the world. Sales staff might use it to influence customers, managers use it to motivate employees, and human resource departments use it to recruit candidates.
Organizational behavior is also a significant component of organizational success that plays an important role in the development of management. It allows for the proper management of employees so they can achieve maximum productivity and profitability.