Introduction to Organizational Behavior || Fundamentals of Organizational Behavior

Introduction to Organizational Behavior || Fundamentals of Organizational Behavior

Introduction to Organizational Behavior

Organizational Behavior is the study and application of the human side of management by which employee and company both succeeds. It is concerned with the study of human behavior at workplace. It only shows about the behavioral management but not the whole management. So, it is specific about understanding and predicting human behavior for balanced focus of individual and the system’s overall growth.

It is heavily concerned with people’s thoughts, feelings, emotions, and actions in a work setting. Organizational behavior actually is the concept of process of applying the principles by which employee are respected and the company’s objectives are fulfilled.


An Organization is purposeful combination of two or more number of people who are interdependent with each other to achieve specific goal(s). It is composed of people both individuals and groups.
S.P. Robbins opines “An Organization is a consciously coordinated with social unit, composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals.”


Behavior includes any thing a person or animal does that can be observed in some way.  The behaviors unlike minds or thoughts or feelings can be observed, recorded and studied. No one ever saw or heard a mind but we can see and hear behavior. We can see and measure what a person does and hear and record what a person says (this is vocal behavior).

In this page we will learn topics like:

  1. Organizational Behavior System
  2. Importance of OB
  3. Key elements of OB

Organizational Behavior System

OB system is the foundations of basic four components: inputs, processes, outputs, and feedback.


They are independent variables like. They are uncontrollable and the inputs are very influential in company as they determines productivity, absenteeism, turnover, job satisfaction, etc.

Individual level variables: biological characteristics, ability, values, attitudes, personality,
Group level variables: Task characteristics, Group communication, Group size, etc.
Organization level variables: Organization structure, culture, and Leadership, etc.


The inputs received by the individuals, groups and organization as a whole are processed together to bring the output.

Individual level Processes: Motivation, perception, learning, decision making, etc.
Group level Processes: Group dynamics, Communication, Leadership, Power & politics, Conflict process, etc.
Organization level Processes: Design of formal organization, HR policies and practices, Interaction with external environment, etc.


They are the result of the overall processes which are dependent of other processes. The key factors that OB wants to explain and predict are output variables. They are

  1. Productivity
  2. Absenteeism
  3. Turnover
  4. Job satisfaction:
  5. Organizational citizenship behavior(OCB)

1. Productivity:

Productivity is the major part of output variable which measures the performance. It is an indicator or an index which shows how much the company produces the final product in a certain period of time.

2. Absenteeism:

Absenteeism is the checklist of the employees presence in the workplace. It shows how much an employee is punctual and dedicated.

3. Turnover:

It is the rate of changing jobs from one to another company. A high level of turnover will directly hampers in the productivity rate.

4. Job satisfaction:

It is the amount of overall positive feelings that individual have towards their job.

5. Organizational citizenship behavior(OCB):

OCB is the extent to which an individual’s behavior makes a positive overall contribution to the organization.

Importance of Organizational Behavior:

  • Understand organization and employees in a better way
  • Motivate employee
  • Improve industrial work relations
  • Prediction and control of human resource
  • Effective utilization of human resources

a. Understand organization and employees in a better way:

In the company, the organization should only recruit employee if they find the compatible employees in relation with the need of individual and organization. Because if the individual needs are not maintained, there is a chance of turnover, and low productivity. Also this concepts is same from the organization’s point of view. As, if the company doesn’t see the employee productiveness, and growth surely, the company will fire the employee.

b. Motivate employee:

This point defines the concept that when you are with the people, who will appreciate on your growth, and helps you in your lows, you will be more motivated. So, the old concept of giving punishments in time of failure has phased out. It is the time of encouraging and accepting that employees are not machine and they can always be 100% efficient. So, they need motivations and care in the process of work.

c. Improve industrial work relations:

OB always helps understand the root cause of the problem, and control its negative impact. OB is a tool for human benefit. It takes human problems humanly. Also, when the relations between workers and managers are mutually understood, the problem will be half solved. Thus, OB focuses on improving work relations.

d. Prediction and control of human resource:

OB studies about human behavior and human actions to predict and have the control of human resources, so the organization can meet the objectives and bring organizational effectiveness.

e. Effective utilization of human resources:

OB gives the handbook of knowledge to managers about the proper and the most efficient ways to utilize resources. So, the managers can get the best out of them.

Key elements of OB:

  1. People
  2. Structure
  3. Technology
  4. External Environment

1. People:

Without people, we cannot imagine organization. They make up the internal social system of the organization. People consist of individuals, and groups. People are dynamic in nature, but groups may not be. Organizations are established to serve the people.

In an organization people work as an individual in a group with a synergy concept to achieve the proposed goal in the future.

 2. Structure:

When people join together in an organization to accomplish an objective, some kind of structure is required. Everything has a structure. Example: tree, house, pen and even the gadgets you are with have a certain structure.

In an organization, structure defines the roles and responsibilities of an employee. It includes division of work. Some may be executives, operating managers, human resource, technical managers, staffs, etc.

3. Technology:

Technology has been a boon in the running centuries. With the help of technology, organizations have got the opportunities and challenges. It provides the economic and physical resources to make the employee convenient. The nature of technology is ever changing so, the company must abide the new upgrading trends of technology as a challenge in the business world.

4. External Environment:

Organizations are influenced by external environments like political, social, economic, cultural, etc. the organizations should be able to cope with these to withstand as a company. An organization operates in a larger social system where the system runs in their own social norms, values, culture, beliefs, etc.

Company should be able to understand and maintain the external variables for not getting into troubles and blunders in business.

The reasons for studying OB are as follows:

  • understand organizational organizational events,
  • predict organizational events, and
  • influence organizational events.

You may also like Individual Behavior.

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