All businesses have an internal culture that is unique to their company. Each employee contributes not only a certain skill set but also a personality with inherent values and beliefs, and those values and beliefs will determine how they interact in work groups, with other employees and toward management.
The study of organizational behavior focuses on workplace culture, interactions and behavior, on the part of both individuals and groups. Exploring organizational behavior is an essential component of advanced leadership studies, such as the online Master of Business Administration (MBA) with a concentration in Human Resources program from the University of Southern Indiana (USI). Gaining a deep understanding of complex behaviors and interactions in the workplace is critical for effective leaders and managers.
How to Define Organizational Behavior
Organizational behavior (OB) is the multidisciplinary study of employee interactions and the organizational processes that seek to create more efficient and cohesive organizations. The purpose of organizational behavior study is to leverage insight it offers to optimize employee and group performance.
In the field of organizational behavior, researchers apply scientific approaches to personnel management to bring out the best in employees and improve the overall success of an organization. Professionals in wide-ranging disciplinary fields like psychology, sociology, social psychology, anthropology, political science and economics all contribute to the research of organizational behavior.
Why Is Organizational Behavior Important?
At some point in their lives, most people will work in an environment where employees and teammates interact in unhealthy or negative ways. For example, people may not be aware of the behavioral expectations, or the boss might fail to promote teamwork and open communication. Negative workplace interactions and culture can be commonplace in organizations that lack a strong OB model.
Studying organizational behavior helps organizations understand how and why employees behave and interact in both positive and negative ways. By identifying the drivers of employee behavior, leaders can target areas for improvement and proactively work to foster a more positive culture and work environment. In turn, the application of organizational behavior study helps employees navigate a business’s culture while giving managers insight into how that culture helps or hinders employee engagement, productivity and retention.
OB can also help managers evaluate a potential job candidate’s skills and personality during the hiring process, allowing human resources to find the best fit for an employee within the company. While there is never one exact way to assess these things, OB theory offers a set of guidelines to help organizations create a positive and vibrant internal culture.
What Are the Goals of Organizational Behavior and Management?
One of the main goals of OB is to understand what motivates employees. How organizations measure job satisfaction varies, but the most common metrics include a fair and equitable reward system, compelling work, clear expectations, enjoyable working conditions, and good supervisors. By understanding what motivates employees, managers can adjust their policies to increase job satisfaction, thereby increasing productivity.
While fostering intrinsic motivation is an important goal of OB, the area of study also helps employees understand themselves and others better, promoting more open communication and participation. In fact, the study of OB offers a roadmap for managers to enhance many aspects of their organizations, such as:
- Boosting job performance
- Increasing job satisfaction
- Fostering innovation and creativity
- Encouraging leadership
- Improving customer service
- Promoting ethical behavior
- Creating a positive work environment
Organizational Behavior Examples in Practice
Depending on the challenges and desired outcomes, managers may use different tactics such as reorganizing workgroups, changing performance evaluations or modifying compensation structures. Understanding what motivates employees also plays a large part in how managers adjust company procedures or policies.
Not only does organizational behavior provide a roadmap for human resources and supervisors to manage more effectively, but it also helps employees navigate an organization’s culture. When a strong model of OB is in place, employees can better understand themselves and their roles, helping them understand how to best flourish in an organization.
Additionally, focusing on organizational behavior helps managers better predict how employees might react under differing circumstances. Effective leaders will adjust practices and policies according to the insight OB offers, thereby increasing managerial effectiveness.
Creating a culture where relationships are cooperative, employees feel valued and companies flourish is at the heart of organizational behavior. Through studying organizational behavior in USI’s online MBA in Human Resources, aspiring leaders can gain the tools to optimize workplace culture and improve outcomes for employees and organizations alike.
Learn more about USI’s online MBA in Human Resources program.
